2016-02-02 TBD Minutes3.1.a
CITY OF EDMONDS
TRANSPORTATION BENEFIT DISTRICT BOAR I)
DRAFT MINUTES
February 2, 2016
The Edmonds Transportation Benefit District meeting was called to order at 6:31 p.m. by Board Member
Fraley-Monillas in the Council Chambers, 250 5`b Avenue North, Edmonds.
OFFICIALS PRESENT
Kristiana Johnson, Board Member
Michael Nelson, Board Member
Adrienne Fraley-Monillas, Member
Diane Buckshnis, Board Member
Dave Teitzel, Board Member
Tom Mesaros, Board Member
Neil Tibbott, Board Member
1. ROLL CALL
STAFF PRESENT
Phil Williams, Public Works Director
Scott Passey, City Clerk
Jerrie Bevington, Camera Operator
Jeannie Dines, Recorder
City Clerk Scott Passey called the roll. All Board Members were present.
2. APPROVAL OF AGENDA Q
BOARD MEMBER TEITZEL MOVED, SECONDED BY BOARD MEMBER MESAROS, TO N
APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. r,
3. CONSENT AGENDA ITEMS
BOARD MEMBER BUCKSHNIS MOVED, SECONDED BY BOARD MEMBER TEITZEL, TO
APPROVE THE CONSENT AGENDA. MOTION CARRIED UNANIMOUSLY. The agenda items
approved are as follows:
A. APPROVAL OF TRANSPORTATION BENEFIT DISTRICT MINUTES OF AUGUST 18,
2015
4. ELECTION OF TRANSPORTATION BENEFIT DISTRICT BOARD PRESIDENT AND VICE
PRESIDENT FOR 2016
Board Member Fraley-Monillas described the procedures for the election and opened nominations.
BOARD MEMBER BUCKSHNIS NOMINATED BOARD MEMBER JOHNSON AS PRESIDENT
OF THE TRANSPORTATION BENEFIT DISTRICT BOARD.
BOARD MEMBER TEITZEL NOMINATED BOARD MEMBER MESAROS AS PRESIDENT OF
THE TRANSPORTATION BENEFIT DISTRICT BOARD.
There were no further nominations and Board Member Fraley-Monillas closed nominations for President.
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NOMINATION FOR BOARD MEMBER JOHNSON AS PRESIDENT OF THE
TRANSPORTATION BENEFIT DISTRICT BOARD CARRIED (5-1-1), COUNCILMEMBER
TEITZEL VOTING NO AND COUNCILMEMBER MESAROS ABSTAINING.
Board Member Fraley-Monillas opened nominations for Vice President of the Transportation Benefit
District Board.
BOARD MEMBER BUCKSHNIS NOMINATED BOARD MEMBER MESAROS AS VICE
PRESIDENT OF THE TRANSPORTATION BENEFIT DISTRICT BOARD.
There were no further nominations and Board Member Fraley-Monillas closed nominations for Vice
President.
BOARD MEMBER FRALEY-MONILLAS ANNOUNCED BOARD MEMBER MESAROS WAS
ELECTED VICE PRESIDENT OF THE TRANSPORTATION BENEFIT DISTRICT BY
ACCLAMATION.
The gavel was passed to Board President Johnson.
5. AUDIENCE COMMENTS - None
6. 2015 ANNUAL REPORT PER RCW 36.73.160 2
Public Works Director Phil Williams provided a link to this information: www.edmondswa/transportation
—benefit-district.html
■ Edmonds City Council forms TBD on November 18, 2008.
• TBD Board enacts $20/year fee with Ordinance No. 1 on February 17, 2009 limiting the uses of
funds collected to maintenance and preservation of streets and related traffic control assets.
• Revenue Collected:
0 2012 - $640,944
0 2013 - $670,435
0 2014 - $623,111
0 2015 - $687,421
• 2015 expenses charged - $715,356
o ($27,923) taken from TBD Fund balance
o Remaining $83,097 in Fund balance transferred to Fund I I I — Street Fund
Mr. Williams presented a Schedule of Revenues, Expenditures and Changes in Fund Balance January 1
through December 31. 2015:
Revenues
$20 Vehicle Registration Fee $687,421
Total Revenues $687, 421
Ex enditures
Professional Services
$ 3,828
Insurance
2,500
Road Maintenance
Labor & Benefits
Supplies
143,680
23,533
Traffic Control
Labor & Benefits
Supplies
220,212
103,387
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Vehicle Charges
135,118
Excess Transfer to Street Fund
83,097
Total Expenditures
$715,356
Net Change in Fund Balances
27,935)
Fund Balances — Be innin
27,935
Fund Balances — Ending
$ 0
Mr. Williams said the City currently does not use TBD revenue to pave streets but it could. He reviewed
2016 paving projects and utility paving projects:
2016 Paving Projects
Road
From
To
Lane Miles
100th
238th
23930
0.18
100th
241 st
244th
0.32
102nd
238th
END
0.24
104th
238th
244th
0.76
174th St SW
72nd Ave W
OVD
0.60
Meadowdale Bch
7035
OVD
0.71
185th St
88th Ave
186th St
0.27
186th St
185th St
84th Ave
0.29
191 st St
80th Ave
Dellwood
Dr
0.44
82nd Ave
204th St
208 Ih St
0.57
205th St
82°d Ave
End
0.08
95th Ave
220
228th
1.00
224
95
92"
0.33
96` Ave
220`
224`
0.51
72" Ave
210t
208'h
0.16
Driftwood Loop, Driftwood Ln, 8h Ave, Pu et Dr
0.45
Soundview
Cherry
Wharf
0.31
Lindsay
Soundview
END
0.08
Water
Soundview
Ocean
0.16
Talbot
OVD
171"
2.15
Total
9.85
2016 Utility PavingProjects
Walnut
9h Ave
96 Ave
0.50
9 Ave
Walnut
Alder
0.00
Railroad
Dayton
Main
0.49
Brookmere
Casper
8`
0.43
Edmond St
Hummingbird Hill
Olympic
0.16
Total
1.58
Grand Total
11.43
He displayed and reviewed a map of the 2016 Pavement Preservation Program, paving projects in 2016
with funds the Council included in budget specifically for street paving, utility paving projects, and grant
funds via a contract with Snohomish County.
Mr. Williams reviewed the 2016 Paving Program
• Total general governmental Funds - $1,557,190
o 2016 New appropriation - $1.03 million
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■ $150,000 REET 2
■ $880,000 REET 1
o 2015 preservation project carry-over - $527,190
■ $419,550 General Fund
■ $107,640 REET 2
o The GF carryforward in the Council packet has $469,550, but it is over by $50,000 because $1.3
million was used as a 2015 budget instead of $1.25 million
Mr. Williams relayed other TBD Issues:
• The 2015 Legislature passed two bills relating to TBDs
o Created the opportunity to fold the operation and governance of the TBD into the existing
City government system — staff recommends proceeding with this option and seeks Board
direction
o Added an additional $20 to the authorized local license fee option — staff is seeking guidance
from Council whether to pursue this in 2016
Board Member Fraley-Monillas observed on 228`h, one side of the road is in Edmonds and the other side
is in Snohomish County; she asked whether Snohomish County pays a portion of paving in that area. Mr.
Williams referred to the map of paving projects, advising that project is grant funded. The map does not
show paving done outside the City, for example, paving being done by Mountlake Terrace. There is a
project in the CIP to connect that project to SR-104. He assured for any project on 841h or 228th through
Esperance staff would work with Snohomish County on a partnership.
Board Member Buckshnis expressed interested in staff s recommendation regarding the $20 increase and
consolidation of the operation and governance of the TBD into the existing City government system. She
asked why it was originally separated and why the two could now be consolidated. Mr. Williams
answered the statute regarding TBDs has existed for over 20 years; it was established to allow the
creation of a district for a specific project whereby only the people in the benefit district were taxed.
When the legislature modified the statute, it allowed cities to establish a citywide TBD as well as
provided councilmanic authority for a $20 local license fee that did not require a vote of the district to
enact. There are now 40-50 TBDs in Washington as a result where previously there were only 2-3. Before
the legislation was enacted, some legislators were concerned the funds would not be used for "bread and
butter" transportation projects but trail, walkways, etc. that were not central to maintaining the existing
infrastructure. To address that concern, language was included in the statute. Everybody now realizes that
is unnecessary because most TBDs are entire cities.
If the Council increased the TBD fee to $40, Board Member Buckshnis asked whether its use was still
limited. Mr. Williams answered the City could do more with its TBD revenue than the existing ordinance
allows. If the City Council takes over operation and governance of the TBD, the City can use the funds
for any purpose that meets the statutory requirements such as street lights, paving, etc.
Board Member Buckshnis asked if staff was seeking direction from the Board tonight. Mr. Williams
answered if the Council wants to proceed with changing the organizational structure, he will work with
City Attorney to prepare the appropriate ordinance for the Council and TBD Board. City administration
supports the additional $20 local license fee and is seeking Council direction. If the Council takes over
operation and governance of the TBD, the Council could enact the additional $20 local license fee.
Board Member Teitzel referred to the approximately 11 miles of repaving projects in 2016. He asked
whether that was full grind and repave or did it include chip seal and slurry seal. Mr. Williams answered
the map does not include about 4 street segments that staff would like to chip seal in 2016 as the locations
have not yet been finalized.
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Board Member Nelson relayed his interest in changing the structure of the TBD but he was not interested
in enacting an additional $20 local license fee.
Board Member Tibbott inquired about the cost of annual paving maintenance and the amount the
additional $20 fee would raise. Mr. Williams explained staff has said $1.5 million/year in a street
preservation program would assist with a sustainable street condition index. The first $20 local fee raises
$625,000; for planning purposes, he estimated a $40 fee would generate double that amount.
Board Member Fraley-Monillas said she was okay with combing the organization and governance of the
TBD and City Council, especially if it saved money by not duplicating services. She was not interested in
raising the local license fee. She considered it a regressive tax; someone who lives at the poverty level
earning $10,000/year pays the same as someone making $100,000/year. She hoped if the Council was
interested in raising the license fee, public hearings would be held so that citizens can weigh in.
Board Member Mesaros expressed interest in consolidating the TBD and City Council. He asked whether
the increase in the local license fee had to be $20 or could there be a smaller increase. Mr. Williams
answered $40 is the new maximum. Board Member Mesaros asked about the amount necessary for
paving, not just doing an incremental amount each year. Mr. Williams said $1.5 million is a great
planning number. The $500,000 carried over from last year increased the amount available this year to
$1.5 million. Governmental revenue streams are good now; it has only been during the last three years
that general governmental dollars have been allocated for paving. In the past, the City did no paving for
seven years.
To address Councilmember Fraley-Monillas' concern, Board Member Mesaros asked whether the TBD
can establish a fee structure based on the vehicle's value. He agreed it was a regressive fee; someone
owning a $3,000 car pays the same tax as someone owning a $60,000 car. Mr. Williams said he did not
believe that was possible but he would confirm. He noted there were other schemes that were not in the
TBD legislation such as vehicle weight, vehicle mileage, etc.
It was agreed to extend the TBD Board meeting five minutes
BOARD MEMBER BUCKSHNIS MOVED, SECONDED BY BOARD MEMBER TEITZEL TO
CONSOLIDATE THE TRANSPORTATION BENEFIT DISTRICT INTO THE CITY COUNCIL.
MOTION CARRIED UNANIMOUSLY.
Mr. Williams advised he will work with the City Attorney to make that happen.
BOARD COMMENTS
Board Member Johnson advised the next meeting is the first Tuesday in August. Consolidation will
require a vote of the City Council.
8. ADJOURN
With no further business, the TBD Board meeting was adjourned at 6:59 p.m.
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