HomeMy WebLinkAbout02-01-2016 Transportation Benefit DistrictAuburn Transportation Benefit
District
February 1, 2016 - 5:00 PM
Council Chambers
AGENDA
I. CALL TO ORDER
A. Roll Call
II. ACTION
A. Minutes of the March 23, 2015 Special Meeting*
(RECOMMENDED ACTION: Board approve the March 23, 2015 minutes.)
B. 2015 Annual Report* (Snyder)
Auburn Transportation Benefit District to review for possible adoption the 2015
Annual Report
(RECOMMENDED ACTION: Board approve and accept the 2015 Annual
Report.)
C. Resolution No. 2016-01* (Snyder)
A Resolution of the Auburn Transportation Benefit District approving a $20.00
vehicle license fee pursuant to RCW 26.73.065
(RECOMMENDED ACTION: Board adopt Resolution No. 2016-01.)
III. DISCUSSION ITEMS
A. Revenue Options (Snyder)
Transportation Benefit District Board to discuss potential revenue options and
associated strategies and actions for the raising of funds for transportation
improvements within the boundaries of the District
IV. ADJOURNMENT
Agendas and minutes are available to the public at the City Clerk's Office, on the City
website (http://www.auburnwa.gov), and via e-mail. Complete agenda packets are
available for review at the City Clerk's Office.
*Denotes attachments included in the agenda packet.
Page 1 of 13
AGENDA BILL APPROVAL FORM
Agenda Subject:
Minutes of the March 23, 2015 Special Meeting
Date:
January 26, 2016
Department:
Administration
Attachments:
Minutes
Budget Impact:
$0
Administrative Recommendation:
Background Summary:
Reviewed by Council Committees:
Councilmember:Staff:
Meeting Date:February 1, 2016 Item Number:ACT.A
AUBURN * MORE THAN YOU IMAGINEDACT.A Page 2 of 13
Auburn Transportation Benefit
District
March 23, 2015 - 4:00 PM
Council Chambers
MINUTES
I. CALL TO ORDER
Board Chairperson Nancy Backus called the meeting to order at 4:00 p.m. in the
Council Chambers of Auburn City Hall, 25 West Main Street in Auburn.
Board Chairperson Nancy Backus and the following Board Members were
present: Claude DaCorsi, John Holman, Wayne Osborne, Bill Peloza, Yolanda
Trout, Rich Wagner and Largo Wales.
City of Auburn staff members present included: City Attorney Dan
Heid, Community Development and Public Works Director Kevin Snyder,
Finance Director Shelley Coleman, City Engineer/Assistant Director of
Engineering Services Ingrid Gaub, and City Clerk Danielle Daskam.
II. ACTION
A. 2014 Annual Report (Snyder)
Transportation Benefit District Board to approve the 2014 Annual Report
Director Snyder presented the Auburn Transportation Benefit District's
2014 Annual Report. Pursuant to RCW 36.73.120, the Auburn
Transportation Benefit District shall issue an annual report, indicating the
status of transportation costs, transportation improvement expenditures,
revenues and construction schedules, to the public and to the newspapers
of record in the district.
Since the formation of the Transportation Benefit District, the Board has not
enacted any funding mechanisms which would be reported via the annual
report. Therefore, at this time, the Auburn Transportation Benefit District
does not have any substantive report for the status of transportation
improvement costs, transportation improvement expenditures, revenues
and construction schedules.
Once accepted by the Board, the annual report will be made available to
the public.
Board Member Wagner inquired how the governing boards would operate
where two Transportation Benefit Districts overlap. Director Snyder offered
to research the question and provide an informed answer at a later date.
Board Member Osborne moved and Board Member Holman seconded to
approve the 2014 Annual Report of the Auburn Transportation Benefit
District.
MOTION CARRIED UNANIMOUSLY. 7-0 Page 1 of 4
ACT.A Page 3 of 13
III. DISCUSSION ITEMS
A. Discussion and Possible Direction on Board Preference(s) for Funding
Alternatives Authorized under Chapter 36.73 RCW (Transportation Benefit
Districts) and Chapter 3.23 (Transportation Benefit Districts) of the Auburn
City Code (Snyder)
Transportation Benefit District (TBD) Treasurer and Auburn Finance
Director Shelley Coleman reviewed her March 18, 2015 memorandum
addressed to the TBD Board of Directors regarding TBD funding options.
The City formed the TBD in September 2011. To date, there have been no
revenues collected. There are several revenue options available under the
law, most requiring voter approval:
1. Excess property tax levy for one year to fund operations or multiple
years to repay long term bonds issued to fund capital projects;
2. Sales and Use Tax levy - up to two-tenths of one percent (.002) or
$.002 on the selling price of taxable items within the TBD;
3. Vehicle license fees may be increased from a maximum of $20.00 to
$100.00 with voter approval; and
4. Tolls may be imposed with voter approval on streets within the TBD
boundaries, subject to approval by the tolling authority, the State
Transportation Commission, for city streets.
There are a few revenue options that do not require voter approval:
1. Vehicle license fees up to a maximum of $20.00 per vehicle.
2. Impact fees; however, they must be credited against any impact fees
imposed by the City.
3. Local Improvement District (LID) assessments. The City may impose a
special benefit assessment for LID's via the petition method.
Funds can only be used on "transportation improvements" per RCW
36.75.015 and the improvements must be included in the regional plan. To
meet the regional plan requirement, the City files its Six Year
Transportation Improvement Plan (TIP) with Puget Sound Regional Council
(PSRC) who incorporates the City's TIP with their regional plan.
Also, the improvements must be performed on arterial streets or streets of
major significance.
Treasurer/Director Coleman pointed out the funding matrix in the agenda
materials which shows that the .2% sales and use tax generates the most
revenue.
In response to questions from Board Member Holman, City
Engineer/Assistant Director Gaub stated approximately $5 million is Page 2 of 4
ACT.A Page 4 of 13
needed annually for street preservation. TBD revenue can also be used for
any project on the City's Transportation Improvement Plan. Director
Snyder stated TBD revenue has been targeted for
preservation/maintenance activities. Approximately $5-$6 million dollars
are needed annually to achieve a sustaining level of preservation.
Currently, the City allocates approximately $2 million to preservation.
Prompted by a question from Councilmember Peloza, Director Snyder and
Treasurer/Director Coleman recommended the Board move forward with
a .2% sales and use tax. Treasurer/Director Coleman added that a sales
and use tax would be more flexible and could be used for capital and
preservation.
Director Snyder presented the following using PowerPoint slides:
Sixty TBD's have been established statewide between 2005 and 2014; 57
cities and 3 counties. Between 2005 and 2008, 35 TBD's have imposed a
$20.00 vehicle license fee, one TBD imposed a $10.00 vehicle license fee
and 14 TBD's have obtained voter approval of a sales tax.
Director Snyder provided the statutory overview of a Transportation Benefit
District.
Board Member Wales suggested the Board enact a $20.00 vehicle license
fee and then undertake a two year voter education effort and implement
a sales and use tax.
Board Members Wagner and Peloza spoke in favor of a plan described by
Board Member Wales.
Board Member DaCorsi acknowledged the need for a revenue stream
to fund street preservation, but expressed concern with implementing a
vehicle license fee due to the impact on the poor. Board Chairperson
Backus added that an option for a rebate for low-income could be included
in the vehicle license fee.
Board Member Osborne recommended the Board pursue funding options
immediately.
Board Member Wagner recommended beginning the planning process for
implementing a sales and use tax.
Director Snyder reported the cities of Kent and Renton have not created a
Transportation Benefit District but have used the business and occupation
tax and utility tax to fund street preservation.
It was consensus of the Board to have staff develop a work plan for
adopting a $20.00 vehicle license fee and implementing up to a .2% sales
and use tax (voter approved).
IV. ADJOURNMENT
Page 3 of 4
ACT.A Page 5 of 13
There being no further business to come before the Board, the meeting adjourned
at 4:44 p.m.
APPROVED this ______ day of ________________, 20____.
_______________________________ ____________________________
BOARD CHAIRPERSON Clerk of the Board
Page 4 of 4
ACT.A Page 6 of 13
AGENDA BILL APPROVAL FORM
Agenda Subject:
2015 Annual Report
Date:
January 27, 2016
Department:
Community Development
and Public Works
Attachments:
2015 Annual Report
Budget Impact:
$0
Administrative Recommendation:
Transportation Benefit District Board to adopt the 2015 Annual Report.
Background Summary:
Subsection 2 of RCW 36.73.160 (Transportation improvement projects—Material
change policy—Annual report) specifies that a district shall issue an annual report,
indicating the status of transportation improvement costs, transportation improvement
expenditures, revenues, and construction schedules, to the public and to newspapers
of record in the district.
Reviewed by Council Committees:
Councilmember:Staff:Snyder
Meeting Date:February 1, 2016 Item Number:ACT.B
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AUBURN TRANSPORTATION BENEFIT DISTRICT
2015 ANNUAL REPORT
(RCW 36.73.160.2)
DATED FEBRUARY 1, 2016
Pursuant to RCW 36.73.120, the Auburn Transportation Benefit District shall issue an annual
report, indicating the status of transportation improvement costs, transportation improvement
expenditures, revenues, and construction schedules, to the public and to newspapers of record in
the district.
The Auburn Transportation Benefit District was formed on September 19, 2011 with the passage
of Ordinance No. 6377 by the Auburn City Council. The Auburn Transportation Benefit District
was established in accordance with the statutory provisions of RCW 36.73 (Transportation
Benefit Districts). Subsequent to its formation the Auburn Transportation Benefit District Board
has not, through its own authority or through voter approval, implemented a funding
mechanism(s) to make or fund transportation improvements necessitated by economic
development and to improve the performance of the transportation system within the geographic
boundaries of the District.
Therefore, at this time, the Auburn Transportation Benefit District does not have any substantive
report for the calendar year 2015 for the status of transportation improvement costs,
transportation improvement expenditures, revenues and construction schedules.
Following Board acceptance of this Annual Report, it shall be made available to the public and
to newspapers of record within the District.
ACT.B Page 8 of 13
AGENDA BILL APPROVAL FORM
Agenda Subject:
Resolution No. 2016-01
Date:
January 27, 2016
Department:
Community Development
and Public Works
Attachments:
Resolution No. 2016-01
Budget Impact:
$0
Administrative Recommendation:
Transportation Benefit District Board adopt Resolution No. 2016-01.
Background Summary:
The City of Auburn previously established a transportation benefit district as
authorized by RCW 35.21.225 and subject to the provisions of RCW 36.73. RCW
36.73.065 authorizes a transportation benefit district to impose by majority vote of the
district’s governing board, up to a $20.00 vehicle license fee authorized in RCW
82.80.140. Pursuant to RCW 82.80.140, the new vehicle license fee may not be
collected until six (6) months after approval of this action by the governing board.
ACC 3.23.040 (Use of Funds) specify that the funds generated by the transportation
benefit district may be used for any purpose allowed by law including to operate the
district and to make transportation improvements that are consistent with existing
state, regional, and local transportation plans and necessitated by existing or
reasonably foreseeable congestion levels pursuant to Chapter 36.73 RCW. The
transportation improvements funded by the district shall be made in an effort to protect
the city’s long-term investments in its infrastructure, to reduce the risk of transportation
facility failure, to improve safety, to continue optimal performance of the infrastructure
over time, to avoid more expensive infrastructure replacements in the future and to
improve modal connectivity within the city of Auburn. Additional transportation
improvement projects of the district may be funded only after compliance with the
provisions of RCW 36.73.050(2).
Reviewed by Council Committees:
Councilmember:Staff:Snyder
Meeting Date:February 1, 2016 Item Number:ACT.C
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RESOLUTION NO. 2016-01
A RESOLUTION OF THE AUBURN TRANSPORTATION
BENEFIT DISTRICT APPROVING A $20.00 VEHICLE
LICENSE FEE PURSUANT TO RCW 36.73.065
WHEREAS, the City of Auburn established a transportation benefit district as
authorized by RCW 35.21.225 and subject to the provisions of RCW 36.73; and
WHEREAS, RCW 36.73.065 authorizes a transportafion benefit district to impose
by majority vote of the districYs governing board, up to a $20.00 vehicle license fee
authorized in RCW 82.80.140; and
WHEREAS, in accordance with RCW 82.80.140, the new vehicle license fee may
not be collected until six (6) months after approval of this action by the governing board;
and
WHEREAS, Board of the Auburn Transportation Benefit District finds it to be in
4he best interest of the District to establish an annual vehicle license fee in the amount
of $20.00 for the purpose of preserving, maintaining, operating, constructing or
reconstructing the transportation infrastructure of the City and funding transportation
improvements that are consistent with existing state, regional or local transportation
plans necessitated by existing or reasonably foreseeable congestion levels.
NOW, THEREFORE, THE BOARD OF THE AUBURN TRANSPORTATION
BENEFIT DISTRICT DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. An annual vehicle license fee in the amount of $20.00 is hereby
established consistent with RCW 36.73.065(4)(a)(i) to be collected by the Washington
State Department of Licensing on qualifying vehicles as set forth in RCW 82.80.140 and
Chapters 36.73 and 46.16 RCW.
Section 2. The annual vehicle license fee shall take effect for notices mailed in
YEAR for vehicle license renewals due as soon thereafter as the Washington State
Department of Licensing is reasonably able to incorporate collection of the $20.00 fee.
Vehicle license fees shall not be collected sooner than six (6) months after approval as
provided in RCW 82.80.140(4).
Resolu4ion No. 2016-01
January 27, 2016
Page 1ACT.C Page 11 of 13
Section 3. The revenues received from the $20.00 vehicle license fee shall
only be expended on transportation projects approved by the Board for the District. The
transportation projects fo be funded wi4h the revenues from the vehicle license fee shall
be established by separate resolution of the Board of District.
Section 4. The Board of the District may by separate Resolution terminate the
collection of the $20.00 vehicle license fee if an alternate funding source authorized by
Washington State statute is approved by the 6oard or by the City Council of 4he City of
Auburn.
Section 5. This Resolution shall be in full force and effect upon passage and
signature.s hereon.
SIGNED and DATED this day of 2016
AUBURN TRANSPORTATION BENEFIT DISTRICT
NANCY BACKUS, Chairperson
ATTEST:
Danielle E. Daskam, Clerk of the Board
APPROV AS TO FORM:
D ' I B. Hei , istrict Legal el
Resolution No. 2016-01
January 27, 2016
Page 2ACT.C Page 12 of 13
AGENDA BILL APPROVAL FORM
Agenda Subject:
Revenue Options
Date:
January 27, 2016
Department:
Community Development
and Public Works
Attachments:
No Attachments Available
Budget Impact:
$0
Administrative Recommendation:
Background Summary:
Staff to present to the Transportation Benefit District Board on potential revenue
options, associated strategies, and actions for the raising of funds for transportation
improvements within the boundaries of the District.
Reviewed by Council Committees:
Councilmember:Staff:Snyder
Meeting Date:February 1, 2016 Item Number:DI.A
AUBURN * MORE THAN YOU IMAGINEDDI.A Page 13 of 13