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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 AUBURN * MORE THAN YOU IMAGINEDACT.B Page 7 of 13 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 AUBURN * MORE THAN YOU IMAGINEDACT.C Page 9 of 13 AUBURN * MORE THAN YOU IMAGINEDACT.C Page 10 of 13 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