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HomeMy WebLinkAboutITEM VIII-A-1~ ~ CITYOF a ~ AGENDA BILL APPROVAL FORM ~ R1 V WASHINCTON Agenda Subject: Date: Ordinance No. 6217 March 10, 2009 Department: Attachments: Budget Impact: Public Works Ordinance No. 6217, Letter from $0 Chamber of Commerce Administrative Recommendation: City Council introduce and adopt Ordinance No. 6217 Background Summary: In June 2007, the Mayor convened a Citizens' Arterial Task Force to study an emerging problem with the maintenance of Auburn's streets. Specifically, the City's arterial streets are breaking down because of the high volume of truck and other heavy vehicle traffic. The Task Force was asked to study this issue along with the maintenance and preservation of our overall arterial street system, document the problem and identify the scope and financial scale of a solution; then propose a reasonable program to be implemented. The Task Force was charged with identifying attainable funding sources to finance the $25 million needed for rebuilding some 16 miles of truck routes over a five year period in addition to an estimated $60 million package to the overall arterial system over the next ten years. The Task Force considered the question of who should bear the burden of paying for arterial truck route improvements and determined it is a shared responsibility among: Fright haulers, who must have safe and convenient access from their place of business or Delivery destinations to the State highway system. Local retail businesses, which rely on freight delivery to sustain operations. The Ports of Seattle and Tacoma, who must be able to rely on warehousing districts in Auburn and other cities to support port operations. State government, which, as a collector of taxes from multiple transportation sources, has a duty to local government to assist in the maintenance of local arterials supporting state highways and interstate commerce. Local residents, who use our arterial street system and want the assurance of safety and convenience in their daily travels. W0316-7 F6.6.10, 07.1 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&O ❑ Airport ❑ Finance ❑ Cemetery ❑ Mayor ❑ Hearing Examiner p Municipal Serv. ❑ Finance ❑ Parks ❑ Human Services ❑ Planning & CD p Fire ❑ Planning ❑ Park Board OPublic Works ❑ Legal ❑ Police ❑ Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources ❑ Information Services Action: Committee Approval: ❑Yes ❑No Council Approval: ❑Yes ❑No Call for Public Hearing Referred to Until Tabled Until Councilmember: Wa ner Staff: Dowd Meetin Date: March 16, 2009 Item Number: VIII.A.1 ,Aj.j$URN * MORE THAN YOU IMAGINED Agenda Subject: Ordinance No. 6217 Date: March 10, 2009 Each of these users has everything to gain from a well-operating truck route system; each could suffer significant effects if our system breaks down. Thus we believe that each should absorb some share of the $25 million solution. Staff Recommendation: Since the acceptance of the Citizens' Task Force's Final Report, the City has pursued other sources of funds to rebuild the 16 miles of future truck routes which remain deficient to serve the long term needs of the freight industry. As of present time, the only revenue source that we have identified that appears to meet the findings of the Task Force is the potential Door Tax, which several Valley Cities have been recently considering. While other cities and counties have also been pursuing legislative action to provide for establishment of the Street Utility, this legislation is not gaining serious support during the ongoing legislative session. With the receipt of the letter from the Chamber, stating support for a city-wide tax for streets, staff recommends tabling the door tax issue pending Chamber action. 2of2 AUBURN AREA CHAMBER of COMMERCE "Connecting Peaple f'or Success" To: Honorable Mayor and City Counciimembers From: Auburn Area Chamber of Commerce Re: Ordinance No. 6217 Date: March 5, 2009 CC: Auburn Area Chamber of Commerce Board of Directors Dear Honorable Mayor and City Councilmembers, The Auburn Area Chamber of Commerce does not support the City's proposed Ordinance No. 6217 for the following reasons: 1. In the Whereas section immediately following item (e); "WHEREAS, in order to act on these recommendations of the Citizen's Arterial Task Force the proposed Door Tax is not an option that was reviewed by the Arterial Task Force. In fact, the Task Force in their final report to the City Council, "Report of the Citizens' Arterial Task Force", on Page 3, item 2.; "The burden of paying for truck and arterial street improvements should not be placed on one specific user, but should be a shared responsibility between freight haulers, local businesses, the Ports, the State and Federal governments, and local residents." a. The proposed Door Tax specifically targets one industry alone, and places an undue burden, once again, on business. b. The proposed funding from monies collected under the Door Tax comes nowhere near the funding necessary to repair the arterial streets, the approximately $25 million needed to facilitate arterial street repair. In fact, once a business comes to understand the total dollar amount their company will need to pay for "open" doors, they will immediately close and lock all unnecessary doors, which will further deplete the city's expectation of revenues from a Door Tax. The Auburn Area Chamber of Commerce would support the City in an effort to take a vote to the people along the line of the "Save Our Streets", which has been a very successful program for the City of Auburn; to have a"Save Our Arterial Streets" program that would spread the burden of a tax on all businesses and citizens to preserve truck routes in the City of Auburn. The Chamber recognizes the need to fix the arterials, as this is the route for all our goods to and from our city. Each citizen benefits from the commerce generated in our city from the businesses and industries that support our goods and services, and provide good wages for our citizens. Sincerely, Nancy E. Wyatt, I.O.M. President & C00 Auburn Area Chamber of Commerce 10$ S. DIVISiON ST., SUITF., f3 • AUI3URN, WA 98001-5316 • 253-833-0700 • Fax 253-735-4091 e-muil: AubzrrnCG;i'i,AuGtrrn~1reaWA.org • http:i%www.Aubur~f?AreaWA.org ORDINANCE NO. 6 2 1 7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, CREATING A NEW CHAPTER 3.96 OF THE AUBURN CITY CODE, IMPOSING AN EXCISE ON THE OPERATION OF LOADING DOCK DOORS WITHIN THE CITY, FOR THE PURPOSE OF RAISING REVENUE TO IMPROVE FREIGHT MOBILITY; AND PROVIDING FOR MATTERS PROPERLY RELATED THERETO WHEREAS, the December 20, 2007, Final Report of the Auburn Citizen's Arterial Task Force found that: (a) The strength of Auburn's economic base is highly dependent on the heavy vehicles that travel along its arterials to Highway 18 and State Route 167 to our ports and other communities; (b) The condition and durability of these arterials must be maintained; (c) The Auburn community has historically been a regional center for this branch of commerce, and is currently one of the nine Valley Cities that comprise the second largest Industrial Center on the West Coast; (d) Auburn's ability to retain these businesses has been harmed by tax policy changes such as the Streamlined Sales Tax, and will be further harmed if its arterial system cannot be relied upon; and, (e) Funding for this program will have to come from mostly local sources, including increases in some taxes, creation of some new funding sources and allocation of General Fund monies currently dedicated to other, unspecified uses until such time as the State secures adequate funding to help Cities and Counties meet this regional and interstate burden; and WHEREAS, in order to act on these recommendations of the Citizen's Arterial Task Force and to help the City contend with the costs to the City and its taxpayers caused by significant truck traffic from warehousing businesses, it is appropriate for the City Council to impose an excise that compensates the City for its investment in warehousing infrastructure; and Ordinance No. 6217 March 10, 2009 Page 1 WHEREAS, Section 35A.82.020 of the Revised Code of Washington (RCW) authorizes the city councils of code city to impose excises for regulation or revenue applicable to various kinds of business. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. NEW CHAPTER CREATED TO CITY CODE. That a new Chapter 3.96 of the Auburn City Code is created to read as follows: CHAPTER 3.96 EXCISE ON OPERATION OF LOADING DOCK DOORS Sections: 3.96.010 3.96.020 3.96.030 3.96.040 3.96.050 3.96.060 3.96.070 3.96.080 Findings. Chapter Purpose and Scope. Definitions. Loading Dock Door License Required. Loading Dock Door License Excise. Use of Revenues. Penalties and Remedies for Violation. Expiration of Chapter. 3.96.010 Findings. A. The City Council finds that certain City freight corridors are in critical need of repair, restoration, and enhancement. The City's economy, the ability to move goods to market, and the overall mobility and safety of the citizens of the City rely on these key links in the transportation system. B. The City Council finds that the shipping of freight over certain City streets causes extraordinary wear and tear on those routes within the city. Many studies have demonstrated that: 1. Most of the City's freight routes were never designed or constructed with a structural base support that can support routine frequent heavy loads, and 2. Freight truck traffic causes considerably more damage to streets than passenger vehicles - sample calculations using the methodology prescribed in the Washington State Department of Transportation (WSDOT) Pavement Guide, published in 1995, of the relative impact that compares a typical passenger vehicle to various legally loaded freight vehicles show 60% to over 90% of pavement impacts on a freight route is a direct result of freight traffic; and 3. Depending on the size and load of the freight vehicle, the impact of a typical 3 axle freight vehicles on street surfaces is approximately 4300 times more damaging Ordinance No. 6217 March 10, 2009 Page 2 than a passenger vehicle. (Reference: WSDOT Pavement Guide calculation methodology), and 4 Correspondence received from the State Secretary of Treasury indicates that historically and currently cities and counties have never received any of the special fees or taxes collected by the State that have a nexus to freight impacts on street infrastructure, and 5 Without action from the State Legislature that recognizes this unfunded mandate that interstate freight places on local jurisdictions Cities and counties will not be receiving any of the weight related revenues collected by the State. C. The City Council finds that the significant impacts to certain freight corridors relating directly to business operations containing loading dock doors far outpaces the potential for recovery of those costs through current taxing mechanisms of such operations. D. Accordingly, the City Council concludes that it is in the best interests of the City to impose a business license excise for the purpose of raising revenue, as authorized by RCW 35A.82.020, upon businesses engaged in the business of operating a loading dock door as a means to assist in addressing the need to maintain and improve the City's street infrastructure and to enhance freight and passenger mobility within the City. 3.96.020 Chapter purpose and scope. This Chapter provides for an excise for regulation and revenue under RCW 35A.82.020, which shall be referred to as a licensing excise or "excise." This Chapter does not repeal, abrogate, annul or in any way impair or interfere with the existing provision of other laws or ordinances. 3.96.030 Definitions. In addition to the definitions provided in Auburn Municipal Code, Section 5.20.020, the following words shall have the following meanings unless the context clearly requires otherwise. A. "Commercial vehicle" means every device designed or regularly used for carrying freight that is capable of being moved upon a public highway and in, upon, or by which any property is or may be transported or drawn upon a public highway, except devices moved by human or animal power or used exclusively upon stationary rail or tracks. B. "Freight" means goods transported by a person for commercial purposes. C. "Freight mobility purposes" means the construction, reconstruction, maintenance, operation, preservation of arterials streets related to truck routes within the City intended to provide for the movement of freight. D. "Loading dock" means an elevated architectural fixture or platForm designed to permit the transfer of freight to or from a commercial vehicle. E. "Loading dock door" means a movable structure accessing and adjacent to a loading dock. For the purposes of this Chapter, the term "loading dock door" shall not include any door that has been clearly posted and marked as closed, locked and not for access, in conformity with the requirements of Section 504 of the International Fire Code, which posting and marking must be visible from both the inside and outside of the building on which the door is located. Ordinance No. 6217 March 10, 2009 Page 3 3.96.040 Loading Dock Door License Required A. In addition to any other required licenses, each person engaged in the business of operating a loading dock door within the City shall apply for a license under this ordinance and shall pay the license excise provided for in Section 3.96.050 of this Chapter. B. Upon payment of the appropriate excise amount, the applicant shall be issued a loading dock door license which the applicant shall post prominently outside each loading dock door that it operates within the City. C. Each loading dock door license shall be renewed annually and such renewal shall coincide with the renewal date of the business' annual City business license. D. The City shall, in a form and manner prescribed by the City, update the business license application to accommodate this license excise. E. Federal, tribal, state and local governmental entities and entities exempt from licensing requirements under Chapter 5.10 of the City Code shall be exempt from the requirements of this Chapter. 3.96.050 Loading Dock Door License Excise A. In addition to any other taxes or fees that may be imposed from time to time, the City hereby imposes a business license excise for the privilege of operating a loading dock door within the City. B. The excise provided in this section shall be paid by the operators of businesses licensed pursuant to this Chapter, the amount of the excise set forth herein for each loading dock door that is available for operation by the business during the succeeding twelve month period. However, each business operating loading dock doors within the City shall, upon application, receive two loading dock door certificates at no charge. C. The initial rate of the excise collected under this section is hereby set at One Hundred Twenty-five Dollars ($125.00) per door per year for excises collectable in the year 2009. D. The rate of the excise collected under this section shall be revised periodically and shall be levied at a rate that, when fully collected on all loading dock doors within the City, will not exceed 50% of the City's anticipated annual expenditures for freight load impact and pavement infrastructure improvement purposes. 3.96.060 Use Of Revenues. The proceeds of the business license excise imposed under this ordinance shall be deposited into the Freight Mobility Fund, which is created within the office of the City Finance Director. Amounts in the Freight Mobility Fund shall be used solely for load impact and pavement infrastructure improvement purposes consistent with the recommendations of the Citizen's Task Force with the goal of bringing all City freight routes up to a system average of Pavement Condition Index (PCI) of 70. To the extent possible, these freight mobility purposes should be consistent with the adopted transportation and land use plans of the City or any applicable and adopted regional transportation plan for the metropolitan planning area. Ordinance No. 6217 March 10, 2009 Page 4 3.96.070 Penalties and Remedies for Violation. A. Civil Penalties. A violation of the provisions of Sections 3.96.040(A), 3.96.040(C) and 3.96.050(B) of this Chapter shall be civil infractions, punishable by a maximum penalty of $250.00. Each day of such violation constitutes a separate infraction under this Chapter. B. Additional Relief. The city may seek legal or equitable relief to enjoin any acts or practices and abate any condition which constitutes or will constitute a violation of the applicable provisions of this Chapter when penalties provided herein are inadequate to effect compliance. Furthermore, violation of the terms of this Chapter shall be grounds for revocation of any public ways agreement, franchise, or lease issued or granted pursuant to Title 20 of the City Code. C. Other Remedies. Nothing in this Chapter shall be construed as limiting any judicial remedies that the city may have, at law or in equity, for enforcement of this Chapter. 3.96.080 Expiration of Chapter. This Chapter and its provisions shall automatically expire and be of no further effect or validity upon the event that an equivalent on-going state or federal funding source is provided to the City that is directed to and earmarked for the City's freight mobility purposes to which the revenue derived from this excise is to be used pursuant to Section 3.96.060 of the Chapter. Section 2. Captions. Captions used in this act are not any part of the law. Section 3. Severability. If any provision of this Ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected. Section 4. Effective Date. This Ordinance shall take effect and be in force five days from and after its passage, approval and publication as provided by law. INTRODUCED: PASSED: ATTEST: Danielle E. Daskam, City Clerk Ordinance No. 6217 March 10, 2009 Page 5 APPROVED: PETER B. LEWIS, MAYOR FORM iel B. H64_,_q4 Attorney PUBLISHED: Ordinance No. 6217 March 10, 2009 Page 6