1. Douglas County Road Maintenance Funding June 27, 2011

2. Overview Roads in Douglas County Recap road maintenance challenges Funding options and Board direction Next Steps Questions and comments

3. Roads in Douglas County Douglas County (231 miles) –Johnson Lane –Stephanie Way –Buckeye Road –Waterloo Lane State of Nevada (102 miles) –Highway 395 –Highway 88 –Highway 207 Towns (40 miles) –Lucerne –Esmeralda –Chichester GIDs (138 miles) –South Sunridge (IHGID) –Blue Rock (GRGID) –Tramway (KGID) Private/HOAs (106 miles)

4. Pavement Condition Index Douglas County PCI = 62

5. Visual Example of PCI Scale PCI = 98, Jacks Valley Road

6. Visual Example of PCI Scale PCI = 60, Hermosa Court

7. Visual Example of PCI Scale PCI = 9, Waterloo Lane

8. Pavement Condition Results Network Area-Weighted PCI = 62 (Fair)

9. Pavement Condition vs. Cost of Repair

10. PCI vs. Level of Maintenance PCIMaintenance ActivityTypical Work 86-100Preventive Maintenance Crack Sealing, Patching, Grade Shoulders 56-85 Preventive/Corrective Maintenance Chip Seals, Slurry Seals, Overlays 0-55 Major Rehabilitation, Reconstruction Thick Overlays, Reconstruction, Stop Gap Maintenance (Safety)

11. Priority Matrix PCIArterialCollectorLocalBudget Category 86-100 456 Localized Preventive Maintenance 0.0%5.2%11.9% 56-85 123 Global Preventive M&R 0.7%21.2%25.3% 0-55 789 Major M&R 0.0%12.3%23.4% 1 = Highest Priority, 9 = Lowest Priority % Network Pavement Area

12. Budget Analysis

14. Funding Comparisons Agency Miles Maintained Approximate Annual Preventive Maintenance Funding (not including routine maintenance) Total Spent Per Mile Paved/ Chip SealGrindingsGravel/DirtTotal Douglas County1714317231$300,000 to $350,000$1,515 Lyon County28510248543$1,400,000 to $1,800,000$3,315 Town of Minden14.500 $300,000 to $500,000$34,482 Town of Gardnerville2000 $300,000 to $500,000$25,000 Gardnerville Ranchos GID4300 $500,000 to $900,000$20,930 Kingsbury GID2200 $600,000 to $750,000$34,090 Round Hill GID4.400 $200,000 to $250,000$56,818

15. Potential Funding Options Utility Operator Fee –NRS 354.59881 –1% = $800,000 per year Gas Tax –NRS 373.030 –$0.05 per gallon = $900,000 per year Infrastructure Tax –NRS 377B.100 –0.25% sales tax = $1,300,000 per year

16. Gas Tax History –State law allows up to $0.09 per gallon on all motor vehicle fuel sold within a county –Douglas County implemented $0.02 in 1970 and increased to $0.04 in 1986 –Attempted to increase by $0.05 in 1993 and 2002, but was denied by voters –Current $0.04 per gallon is used for road maintenance and repair How is it assessed? –Per gallon of motor vehicle fuel sold within Douglas County

17. Gas Tax How much would it generate? –$0.05 per gallon = approximately $900,000 per year How could new revenue be used? –Road maintenance and repair (overlays, chip seals, slurry seals) –Construction of new roads

18. Gas Tax What would be the impact on consumers? –Motor vehicle fuel prices are driven largely by market, supply and regional competition dynamics –Fuel prices in surrounding counties are comparable to Douglas County – most have higher local gas taxes Comparable data –10 of 17 counties in Nevada have implemented the full $0.09 per gallon –Douglas County: collects $0.04 per gallon –Carson City: collects $0.09 per gallon –Lyon County: collects $0.09 per gallon –Washoe County: collects $0.1072 per gallon (higher due to indexing)

19. Gas Tax Board direction –Board of County Commissioners has directed staff to develop an ordinance to increase motor vehicle fuel tax by $0.05 –Could be implemented in phases over time

20. Next Steps Introduce ordinance for $0.05 per gallon gas tax in July Business Notification Letter 15-day response period for businesses to submit comments Business Impact Statement 2 nd reading to adopt ordinance in August

21. Comments and Questions?

22. Current Road Funding Road Operating Fund –$0.0635 mandatory gas tax –1% of Carson Valley room tax collections Regional Transportation Fund –$0.04 local option gas tax –$500 per unit Road Residential Construction tax –$0.50 per square foot Commercial Construction tax