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Home My WebLink About12/06/2011 10 Pavement Preservation; Transportation Benefit District Establishment• • BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 16 For Meeting of: December 6, 2011 ITEM TITLE: SUBMITTED BY: CONTACT PERSON/TELEPHONE: SUMMARY EXPLANATION: Motion directing staff to proceed with necessary actions required to establish a Transportation Benefit District (TBD) for pavement preservation. Chris Waarvick, Director of Public Works Joseph Rosenlund, Streets & Traffic Operations Manager Chris Waarvick, 576-6411 At the conclusion of the November 29, 2011 Public Hearing concerning additional revenue from a license tab fee for street preservation purposes, Council directed that staff return to Council with an agenda item initiating the development of a Transportation Benefit District and associated funding for street preservation. RCW 35.21.255 authorizes the City to establish a Transportation Benefit District (TBD) to fund local transportation improvements under the provisions of RCW 36.73. Under RCW 36.73 one of the funding options is a councilmanic annual car tab fee of up to $20. The attached program describes a 5 -year effort (not including set-up year) to begin repairing failed arterial streets funded by a $20 per year car tab fee, generating an estimated $1 million per year. The RCW has requirements for a sunset but that time period is largely determined by the scope of work established and approved by City Council in a future implementing ordinance. At the appropriate time, Council may wish to consider establishing the TBD fully encompassing the current City Limits, governed by the City Council, and sunset at the completion of the projects listed (by 2017). Project packages would be put out to bid early each year of the project period. Resolution Ordinance Other (specify) Motion Contract: Mail to: Contract Term: Amount: Expiration Date: Insurance Required? No Funding $1,000,000 per year $20 annual car tab fee Phone: Source: within City Limits APPROVED FOR ,r%�y 0 /.6 �� SUBMITTAL: �1�rGle( City Manager STAFF RECOMMENDATION: Direct staff to proceed with all necessary legislative, legal and technical actions required to establish a TBD in order to fund a pavement preservation program with a $20 per year car tab fee pursuant to RCW 36.73. BOARD/COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ Five Year Failed Arterials Repair Program Chart ❑ Transportation Benefit District Legislation Fact Sheet ❑ TBD Flow Chart ❑ List of Existing TBD locations and Fees E RCW 36.73 Transporation Benefit Districts • • 5 -Year Failed Arterials Repair Program Street From To Sq Ft Treatment Cost/SF Total Cost PCI at Failure Year Maint. Year Year 1 3rd St Arlington Beech 95000 Mill & Overlay $3.42 $324,900.00 13.23 2013 Lincoln Av 56th Ave 66th Ave 68880 Mill & Overlay $3.42 $235,569.60 7.5 2013 Yakima Av 12th Ave 16th Ave 81200 CIR $4.87 $395,444.00 8.91 2013 $955,913.60 Year 2 D St 1st St 5th Ave 122200 CIR $4.87 $595,114.00 14 2014 25th Av Englewood Castlevale 31050 Mill & Overlay $3.42 $106,191.00 15.71 2014 Lincoln Av 40th Ave 46th Ave 77000 CIR $4.87 $374,990.00 14.92 2014 $1,076,295.00 Year 3 Pecks Canyon Rd Scenic Dr City Limit 4620 Mill & Overlay $3.42 $15,800.40 15.21 2015 Viola Av 1st St Fair Ave 35100 Mill & Overlay $3.42 $120,042.00 15.71 2015 24th Av Washington Mead 122500 CIR $4.87 $596,575.00 15.94 2015 G St 3rd St 6th St 38400 Mill & Overlay $3.42 $131,328.00 12.66 2014 G St 1st St 3rd St 22400 Mill & Overlay $3.42 $76,608.00 14.52 2015 Walnut St 3rd Ave 5th Ave 36400 CIR $4.87 $177,268.00 14.71 2015 $1,117,621.40 Year 4 6th St Yakima Pacific 220000 Mill & Overlay $3.42 $752,400.00 14.76 2016 Scenic Dr 4202 Scenic 4615 Scenic 53406 Mill & Overlay $3.42 $182,648.52 14.97 2016 Walnut St 1st St 3rd St 36400 CIR $4.87 $177,268.00 15.11 2016 $1,112,316.52 Year 5 3rd Av Yakima Walnut 68000 CIR $4.87 $331,160.00 15.44. 2017 Lincoln Av 24th Ave 32nd Ave 109000 CIR $4.87 $530,830.00 14.68 2017 $861,990.00 Year 6 - Unfunded 24th Av Mead Nob Hill 127400 CIR $4.87 $620,438.00 14.96 2018 Walnut St 5th Ave 7th Ave 36400 CIR $4.87 $177,268.00 15.13 2018 Pierce Av Summitview Lincoln 40000 Mill & Overlay $3.42 $136,800.00 14.45 2018 $934,506.00 D Street is not an arterial but is critical for emergency response. July 2010. Transportation Benefit District Legislation in Effect I!!!!4 ASSOCIATION OF WASHINGTON Ci l iES Through the cooperative efforts of the Association ofWashington Cities (AWC) and the Washington State Associations of Counties (WSAC), significant legislation went into effect in 2007, which resulted in the most important local transportation tool for cities and counties in sixteen years —Transportation Benefit Districts (TBDs). Newly enacted 2010 legislation enhanced theTBD's authority. . TBDs are independent taxing districts that can impose an array of taxes orfeeseither through a vote of the people or through district board action.TBDs are flexible-- they allow cities and counties to work independently or cooperatively on addressing both local and regional transportation challenges. Frequently Asked Questions Background In 1987, the Legislature created TBDs as an option for local governments to fund transportation improvements. In 2005, the Legislature amended the TBD statute to expand its uses •and revenue authority. In 2007, the Legislature amended the TBD. statute to authorize the imposition of vehicle fees and transportation impact fees without a public vote. In 2010, the Legislature amended the TBD statute again to clarify project eligibility, the use of impact fees, and sales tax expenditures, and make TBD governance more flexible. What is a Transportation Benefit District (TBD)? ATBD is a quasi -municipal corporation and independent taxing district created for the sole purpose of acquiring, constructing, improving, providing, and funding transportation improvements within the district. Who may create aTBD? The legislative authority of a county or city may create aTBD by ordinance following the procedures set forth in Chapter 36.73 RCW.The county or city proposing to create aTBD may include other counties, cities, port districts, or transit districts through interlocal agreements. Who governs the TBD? The members of the legislative authority (county or city) proposing to establish aTBD serves as the governing body 4. of the TBD.The legislative authority is acting ex officio and independently as the TBD governing body. If a TBD includes additional jurisdictions through interlocal agreements, then the governing body must have at least five members,. including at least one elected official from each of the participating jurisdictions, or may be the governing body of a metropolitan planning organization if the TBD boundaries are identical to the boundaries of the metropolitan planning organization serving the district. What are the boundaries of aTBD? The boundaries of aTBD may be less than the boundaries of those jurisdictions participating in the TBD. For example, a county or city may choose to have the TBD boundaries identical with the county or city, or it may choose just to include a portion of the county or city. However, if aTBD chooses to exercise the tax authority that does not require a public vote (e.g. vehicle and impact fees), the boundaries of the TBD must be countywide, citywide, or unincorporated countywide. Why create aTBD if the county or city legislative authority is the governing board? ATBD is an independent legal creature.Although aTBD has many of the powers of a county and city (impose taxes, eminent domain powers, can contract and accept gifts, etc.), - it is a separate taxing district.Additionally, by being a separate legal and taxing entity,TBDs have more flexibility. For example, more than one type of jurisdiction can be part of aTBD and the boundaries can be less than countywide or citywide. continued Association ofWashington Cities • 1076 Franklin St SE • Olympia,WA 98501 • www.awcnet.org Can aTBD be created without imposing fees or proposing voter approved revenue options? Yes.A county or city takes legislative action through the ordinance process to create aTBD.The ordinance must include a finding that the creation of a TBD is in the public's interest, describe the boundaries of the TBD, and specify the activities or functions to be implemented or funded by the district.The county or city ordinance creating the TBD may also specify and authorize what fees or revenues that the TBD may pursue.The TBD, acting in its own official capacity, has the authority to identify proposed fees or revenue options. Are TBD revenues required to be spent as they are collected? No.The governing body which creates aTBD must develop a plan that specifies the transportation improvements to be provided or funded by the TBD.As part of this plan, the TBD's governing board can indicate if the funds will be used immediately, or if they will be collected for a specified period, prior to spending the accumulated funds.Typically, funds that are collected for a specified period before being expended are used to fully fund large projects, when bonding, or serve as a match for state or federal funds that may only become available in a specified time frame. Does aTBD have to meet certain tests? There are three threshold tests for transportation improvements in aTBD: 1) the type of transportation improvement contained within the boundaries of the TBD, 2) whether the improvements are identified in any existing state, regional, county, city or eligible TDB jurisdiction's (port or transit) transportation plan and that the improvements are 3) necessitated by existing or reasonably foreseeable congestion levels. The definition of"congestion" does not have a set standard in law; each TBD has the discretion to tailor and make its own determination of congestion levels when implementing its TBD ordinance. What transportation improvements can be funded by aTBD? The definition of transportation improvements is broad.This can include maintenance and improvements to city streets, county roads, state highways, investments in high capacity transportation, public transportation, transportation demand management and other transportation projects identified in a regional transportation planning organization plan or state plan. In developing criteria for a transportation improvement, it can include one or more of the following: reduced risk of transportation facility failure and improved safety; improved travel time; improved air quality; increases in daily and peak period trip capacity; improved modal connectivity; improved freight mobility; cost-effectiveness of the investment; optimal performance of the system through time; and other criteria, as adopted by the governing body. Note: In 2010, cities within King County are specifically authorized to provide or contract for supplemental public transportation improvements to meet the mobility needs of the city, and may contract for such improvements with private and nonprofit entities and may also form public- private partnerships. If a jurisdiction uses the SEPA process to collect impact fees, would this preclude aTBD from using impact fees? No. However, the law requires the jurisdiction to provide a credit to commercial or industrial developments that are subject to SEPA, or transportation impact fees authorized under GMA.This is commonly called a"no double-dipping" provision. continued • • • • What revenue options do TBD's have? TBD's have several revenue options subject to voter approval: • Property taxes — a I -year excess levy or an excess levy for capital purposes; • Up to 0.2% sales and use tax; • Up to $100 annual vehicle fee per vehicle registered in the district; and • Vehicle tolls. Please Note:There are exemptions or unique requirements when using the vehicle fee or vehicle tolls. TBD's have two revenue options that do not require voter approval, but are subject to additional conditions: 1. Annual vehicle fee up to $20.This fee is collected at the time of vehicle renewal and cannot be used to fund passenger -only ferry service improvements. 2. Transportation impact fees on commercial and industrial buildings. Residential buildings are excluded. In addition, a county or city must provide a credit for a commercial or industrial transportation impact if the respective county or city has already imposed a transportation impact fee. • Please Note: Foregoing a vote is an option only. A county or city still has the option of placing either the annual fee of up to $20 or the impact fees to the vote of the people as an advisory vote or an actual requirement of imposition. What are the additional conditions required to impose revenue options not subject to voter approval? To impose either fee, the TBD's boundaries must be countywide or citywide, or if applicable, in the unincorporated county. Vehicle Fees: When the Legislature revised the TBD authority in 2007 to enable councilmanic vehicle fees, it was intended to ensure a county -wide or regional approach for first consideration of this new option.That is why counties had the exclusive authority of the $20 vehicle fee for the first six months after enactment of the 2007 legislation.Today, a county that creates a countywide TBD (incorporated and unincorporated areas) and proposes to impose up to a $20 non -voted vehicle fee should first attempt to impose a countywide fee to be shared with cities by interlocal agreement. Sixty percent (60%) of the cities representing seventy-five (75%) of the incorporated population must approve the interlocal agreement for it to be effective.The Legislative expectation is that if an interlocal agreement cannot be reached between a county and city or cities, the county is authorized to create a TBD and impose the fee only in the unincorporated area of the county. Credits must be provided for previously imposed TBD vehicle fees. Credits are not required for voter approved vehicle fees. Commercial and Industrial Transportation Impact Fees: ATBD that is either countywide or citywide must provide a credit for a commercial or industrial transportation impact fee if the respective county or city has already imposed a transportation impact fee.This is commonly called a "no double-dipping" provision. If we create a countywide TBD for the up to $20 vehicle fee, how is the revenue distributed to cities? The revenue must be shared according to the interlocal agreement.The law does not prescribe what the interlocal agreement contains. Consequently, the revenue can be shared by population, number of vehicles within each jurisdiction, project list, a combination of these, or whatever the county and cities can reach agreement on. What happens if a city imposes the up to $20 vehicle fee and then the county imposes a countywide fee without voter approval? The law requiresTBDs to provide a credit for vehicle fees previously imposed by aTBD. continued For example, if a city was the first to create aTBD and impose a $20 vehicle fee and subsequently its county creates a countywide TBD imposing a $20 vehicle fee, the county TBD must provide a $20 credit against its fee for vehicles registered within the city.As a result, no fee would be collected by the countyTBD from vehicles registered within the city.Additionally, the city would not be part of the interlocal agreement with the county or be included in the number/percentages needed for the interlocal agreement to be effective. However, if in the same example, the city TBD imposed only $10 of the $20 vehicle fee and the county TBD imposed a countywide $20 vehicle fee, only a $10 credit would be provided for vehicles registered within the city.The county TBD would collect $10 from vehicles registered in the city. Consequently, the county TBD would need to include the city in the interlocal agreement discussions and the city is included in the number/percentages needed for the interlocal agreement to be effective. If a county or city is considering the $20 vehicle fee, how does a county or city estimate revenues? Currently, no TBD has been in effect for an entire year and therefore revenue estimates and histories are incomplete. WhatTBDs around the state have learned to date: vehicles per household calculations vary significantly around the state. Statistical data shows that there tends to be about one vehicle per person in rural areas and 0.8 vehicles per person in urban areas. Another factor to strongly consider is seasonality; vehicles sales are not evenly distributed throughout the year and this will affect monthly receipts. Finally, a city or county must understand and recognize that other factors such as people failing to register their vehicles, and data accuracy can affect actual revenues when compared to forecasted revenues. What other requirements should I be aware of? Revenue rates, once imposed, may not be increased, unless authorized by voter approval. If project costs exceed original costs by more than 20 percent, a public hearing must be held to solicit public comment regarding how the cost change should be resolved. This is typically called a material change policy. The TBD must issue an annual report to include the status of project costs, revenues, expenditures, and construction schedules. The TBD must be dissolved upon completion of the project(s) and the payment of debt service. Who has imposed aTBD? The cities of Lake Forest Park, Edmonds, Des Moines, Olympia, Prosser, and Shoreline imposed the $20 vehicle fee. Ridgefield and Sequim passed the 2/10% sales tax. Point Roberts and Liberty Lake formed TBD's prior to the legislative changes in 2005. Checklist For a checklist that highlights many of the important considerations when creating a Transportation Benefit District (TBD), please see www.awcnet.org/tbd. Eligibility requirements vary. For additional questions on Transportation Districts, please contact AWC staff Ashley Probart at ashleyp@awcnet.org Sheri Sawyer at sheris@awcnet.org. • • • • • Determine TBD Boundary Make Up of Board • Define Transportation Improvements Determine Funding Source(s) Council Decision In -Lieu Utility Tax Car Tab Fee s $20 • Other Sources Public Vote Set Date of Public Hearing by Resolution • Car Tab Fee >$20 • Street Maintenance Bond Adopt Ordinance Tab Fee Only File Notice with Department of Licensing . Collections Begin Six Months after Notice f Amend Municipal Code Develop Material Change Policy Begin Projects • Create Annual Report $10 Edmonds $20 brapdviPW Lake Forest Park Prosser Shoreline 206-241-4647 206-870-7586 425-771-0260 206-368-5440 425-670-5020 December 1, 2011 509-894-4096 60-570-3727 $20 509-786-2332 20622=500 206-801-2302 425-888-1555. Ext. 1135 • • • • City of Spokane Vehicles -Su assen ticks: otoreyc 'I•.1242Ai1 omm"erca_ ombination ruc.. .. ." ..,,. ousermoviri ticks: use xica'" ,' icles wi e":;.ehidles`;wi" $20 ect.to:re vehicle l`at;��weigh �� September 1, 2011 32-10 509-625-6252 '!vehicles sand` weigh 6,000. rue►cs; tnat It )bun ds or ire or s ire ,or;sta 'nvate:use tra eto rcycl e'' fra i raveltraile vehicles orr'es Licensed Aas vel Ezem'pt ve ilers..over seatsor.Ies or more'sea isle Il :fa'rm`'vre ampers' off-roave nowmo1 ?erso'n'al 'use`arailers �ommercial:trailers 'ombination trail'er`s rail'ers;used exclusive orseless.carriage, co` oAnverter: overnment ,vehicles` rivate schoolivehicles ,wry ehicles properlyr`registere ow a` transportation benefit district<work� nce a local transportation benefit district is set, i.. ite to charge' a local rvehicle licensing fee due wr enia'v , ,' j ie transportation benefit district board has the' au 0 per,vehicle,without voter app'roval istnct`s board oft directors n ehicle owner buys new tabs onty:to. irnpo"se as;fee..of.. u ransportation benefit district may impose a vehicle,renewa er ve:),.:,.:..?:.-!,:,,,,,.,,,,,,-....,,,,,,,..N.-.,:,,,,;..,,,..,iclr=sep:',8 hersources of funding . approvec Related vote portation benefit' distnc 0,:.1,64'4 140 Vehicle fee ;!Transportation benefit,;distnct — Exem 0 Chapter 36.73 RCW: Transportation benefit districts Page 1 of 1 Inside the Legislature * Find Your Legislator * Visiting the Legislature * Agendas, Schedules and Calendars * Bill Information * Laws and Agency Rules * Legislative Committees * Legislative Agencies * Legislative Information Center * E-mail Notifications (Listserv) * Civic Education * History of the State Legislature Outside the Legislature * Congress - the Other Washington * TVW * Washington Courts * OFM Fiscal Note Website Access Washington. aricial ,nom c .rnm. m Wae$im RCWs > Title 36 > Chapter 36.73 Chapter 36.73 RCW Transportation benefit districts Complete Chapter RCW Sections 36.73.010 Intent. 36.73.015 Definitions. 36.73.020 Establishment of district by county or city --Participation by other jurisdictions. 36.73.030 Establishment of district by city. 36.73.040 General powers of district. 36.73.050 Establishment of district -- Public hearing -- Ordinance. 36.73.060 Authority to levy property tax. 36.73:065 Taxes, fees, charges, tolls. 36.73.070 Authority to issue general obligation bonds, revenue bonds. 36.73.080 Local improvement districts authorized -- Special assessments -- Bonds. 36.73.090 Printing of bonds. 36.73.100 Use of bond proceeds. 36.73.110 Acceptance and use of gifts and grants. 36.73.120 Imposition of fees on building construction or land development. 36.73.130 Power of eminent domain. 36.73.140 Authority to contract for street and highway improvements. 36.73.150 Department of transportation, counties, cities, and other jurisdictions may fund transportation improvements. 36.73.160 Transportation improvement projects -- Material change policy -- Annual report. 36.73.170 Completion of transportation improvement -- Termination of district operations -- Termination of taxes, fees, charges, and tolls -- Dissolution of district. 36.73.180 Supplemental transportation improvements. 36.73.900 Liberal construction. Notes: Roads and bridges, service districts: Chapter 36.83 RCW. file://\\apollo\users\mskovald\Streets\PTBA 2011 - 2012\TBD Initiation 2011 Council Ite... 11/30/2011