The URL can be used to link to this page

2014.08.04 Transportation Benefit District Board A AGENDA CITY OF EDMONDS TRANSPORTATION BENEFIT DISTRICT BOARD Council Chambers, Public Safety Complex 250 5th Avenue North, Edmonds ______________________________________________________________ MONDAY, AUGUST 4, 2014 6:00 P.M. - CALL TO ORDER / FLAG SALUTE 1.(5 Minutes)Roll Call 2.(5 Minutes)Approval of Agenda 3.AM-7027 Approval of Transportation Benefit District Minutes of February 18, 2014. 4.Audience Comments (3 minute limit per person) 5.(15 Minutes) AM-7024 Edmonds TBD Semi-Annual Update 6.(15 Minutes)Board Comments ADJOURN Packet Page 1 of 20 AM-7027 3. Transportation Benefit District Board Meeting Date:08/04/2014 Time: Submitted By:Scott Passey Department:City Clerk's Office Type: Action Information Subject Title Approval of Transportation Benefit District Minutes of February 18, 2014. Recommendation Review and approve draft TBD minutes. Previous TBD Action N/A Narrative Attached are the draft TBD minutes. Attachments 02-18-14 Draft TBD Board Meeting minutes Form Review Form Started By: Scott Passey Started On: 07/29/2014 01:14 PM Final Approval Date: 07/29/2014 Packet Page 2 of 20 CITY OF EDMONDS TRANSPORTATION BENEFIT DISTRICT BOARD DRAFT MINUTES February 18, 2014 The Edmonds Transportation Benefit District meeting was called to order at 6:45 p.m. by Board Member Kristina Johnson in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. OFFICIALS PRESENT Kristiana Johnson, Board Member Strom Peterson, Board Member Lora Petso, Board Member Joan Bloom, Board Member Adrienne Fraley-Monillas, Board Member Diane Buckshnis, Board Member STAFF PRESENT Stephen Clifton, Community Services/Economic Development Director Phil Williams, Public Works Director Rob English, City Engineer Sharon Cates, City Attorney Scott Passey, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder 1. ROLL CALL City Clerk Scott Passey called the roll. All board members were present. 2. APPROVAL OF AGENDA BOARD MEMBER BUCKSHNIS MOVED, SECONDED BY BOARD MEMBER PETERSON TO APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY. 3. APPROVAL OF TRANSPORTATION BENEFIT DISTRICT MINUTES OF AUGUST 6, 2013 BOARD MEMBER BUCKSHNISH MOVED, SECONDED BY BOARD MEMBER PETERSON, TO APPROVE THE TRANSPORTATION BENEFIT DISTRICT MINUTES OF AUGUST 6, 2013. MOTION CARRIED UNANIMOUSLY. 4. ELECTION OF TRANSPORTATION BENEFIT DISTRICT BOARD PRESIDENT AND VICE PRESIDENT FOR 2014 Board Member Johnson read the procedures for the election of Transportation Benefit District Board President and Vice President and opened nominations for President of the City of Edmonds Transportation Benefit District Board. BOARD MEMBER BUCKSHNIS NOMINATED KRISTIANA JOHNSON AS PRESIDENT OF THE TRANSPORTATION BENEFIT DISTRICT BOARD. Packet Page 3 of 20 Hearing no further nominations, Board Member Johnson closed nominations for President of the Transportation Benefit District Board. Board Member Johnson opened nominations for Vice President of the City of Edmonds Transportation Benefit District Board. BOARD MEMBER BUCKSHNIS NOMINATED STROM PETERSON AS VICE PRESIDENT OF THE TRANSPORTATION BENEFIT DISTRICT BOARD. Hearing no further nominations, Board Member Johnson closed nominations for Vice President of the Transportation Benefit District Board. By acclamation, Kristina Johnson was elected President of the Transportation Benefit District Board and Strom Peterson was elected Vice President. 5. AUDIENCE COMMENTS There was no one present in the audience who wished to provide comment. 6. ANNUAL REPORT PER RCW 36.73.160(2) Public Works Director Phil Williams • Edmonds City Council forms ET BD on November 18, 2008 • TBD Board enacts $20/year fee with Ord. No. 1 on February 17th, 2009 limiting the uses of funds collected to the operation, maintenance, and preservation of streets and related traffic control assets • $640,944 was collected in 2012. All of which, and more, was spent on maintenance, preservation, and operations of City streets, including pavement repair & maintenance, signage management, markings, crosswalks, and traffic signals • $650,836 collected in 2013 with $607,774 spent on maintenance, preservation, and operations of City streets, including pavement repair & maintenance, signage management, markings (buttons, curb paint, etc.), crosswalks, and traffic signals • Note: No crack sealing was performed in 2013 due to the elimination of temporary summer help to meet street budget reductions. Mr. Williams displayed pictures of activities funded with TBD revenue including asphalt repair, pothole patching, signal maintenance and programming, graffiti removal and paving. He also provided the following information: • $645,000 budgeted for 2014 to come from gas tax for street maintenance, preservation, and operations. • $5,000 less than was estimated in 2013. • $115,000 in gas tax revenues budgeted for 2014 for street capital projects. $5,000 less than was estimated 2013. • Prevailing elevated gas prices combined with a slow-growth economy continue to depress gas tax revenue estimations. • Total gas tax in Washington 55.9 cents/gallon (7th highest)-fixed • $645,000 budgeted for 2014 in TBD revenue. • $400,000 dollars in General Fund transfers to Street Fund budgeted in 2014. Packet Page 4 of 20 • An estimated additional $1.2 million is needed above and beyond current funding levels to provide a sustainable street condition. This does not include capital projects. Board Member Peterson commented the legislature is discussing a transportation package that may include the ability for TBD Boards to increase the fee. Mr. Williams recalled versions were introduced in both the House and Senate and they have survived the legislative process thus far. It is unknown whether that effort will ultimately be successful. Board Member Fraley-Monillas asked about chip sealing. Mr. Williams advised the 2014 Pavement Preservation Program includes chip sealing three street segments; on 72nd and 73rd in northeast Edmonds and on 2nd Avenue in the bowl. The Council’s agenda tonight includes an Interlocal Agreements with Snohomish County to do the chip seal and small paving projects and a second Interlocal Agreement for paving on 100th and funds that will be set aside to match a federal grant to pave 220th in 2015. Once the chip seal projects are completed, whether to expand the use of chip seal in Edmonds can be discussed. Board Member Bloom referred to the minutes of the August 2013 TBD meeting that stated the need to expand the list of eligible expenses such as electricity for streetlights and traffic signals. She observed if the legislature allows TBDs to increase the fee, the Edmonds TBD Board will need to take action to increase the fee. Mr. Williams agreed. Board Member Bloom asked when it would be appropriate to discuss expanding the list of eligible expenses. Mr. Williams explained if the legislature allows TBDs to increase the fee above $20/vehicle; the Edmonds TBD can decide whether where to enact a higher fee. With regard to the list of eligible expenses, when he made that statement last year he believed the City’s had self-limited how the TBD revenue could be spent. However upon further research of both the legislative process and the ordinance establishing the TBD, use of the revenue was not self-limited. The only statement was that the $20 TBD fee would not be sufficient to fund an overlay program and would be used to supplement operations and maintenance activities. He summarized the City’s authorizing legislation did not need to be changed to allow TBD revenues to be spent as all other funds available in Fund 111. Board Member Bloom asked whether payment of electricity for traffic signals and streetlights was already allowed. Mr. Williams answered yes, although TBD funds have not been spent on those items. Board Member Bloom asked where the funds for electricity for traffic signals and streetlights came from. Mr. Williams answered in the past, the only sizable sources of revenue were gas tax and TBD revenue (since 2009). Prior to 2009, the General Fund made very sizable annual subsidizes for street operations and maintenance. When the TBD was formed and the fee enacted, the General Fund ceased making those large contributions to the Street Fund and allowed TBD revenue to replace that contribution. The two sources of revenue in Fund 111 are TBD revenues of approximately $645,000 and gas tax of approximately the same amount. In 2014, the Council prioritized an additional $400,000 for those purposes. Electricity would be paid from those collective funds. Also in 2014, the Council budgeted $1.2 million to restart the pavement preservation program. He noted the $1.2 million will be routed through Fund 112, a Street Capital fund. Board Member Bloom referred to the former Transportation Committee, recalling that all the members had resigned. She asked whether a Transportation Committee would be beneficial in advising the TBD Board how to spend the revenue. Mr. Williams answered the Transportation Committee was very useful in the process of updating the Transportation Plan. When the Plan is being implemented, the Transportation Committee found less to do. The Transportation Committee was also very invested in the unsuccessful 2010 ballot issue. He envisioned the committee could be reenacted when the Transportation Plan is updated. City Engineer Rob English said the Transportation Plan update is due in 2015. Mr. Williams suggested it may be helpful to reenact the Transportation Committee within the next 12 months. Packet Page 5 of 20 Board Member Buckshnis commented gas tax revenue is declining due to electric cars. She inquired about efforts to tax electric car owners. Mr. Williams answered there are disparate opinions about whether to tax electric car owners. During the legislature’s discussion of the transportation package, some felt drivers of electric cars should pay their fair share of the costs and others felt use of electric cars should be encouraged and there should be some benefits. If the use of electric or alternative fuel vehicles expands significantly, the issue will need to be addressed to prevent significant declines in revenue. The discussion currently is about equity rather than loss of revenue. Board Member Buckshnis pointed out the revenue collected from gas tax does not increase when gas prices increase. Mr. Williams agreed. 7. BOARD COMMENTS Board Member Bloom suggested the reformation of the Transportation Committee be scheduled on the Council retreat agenda. Board Vice President Peterson encouraged anyone concerned about the transportation package to contact their legislators in Olympia and urge them to pass a transportation package, especially one that would provide flexibility to local governments. Board President Johnson announced the TBD Board’s next meeting will be in August 2014. 8. ADJOURN With no further business, the TBD Board meeting was adjourned at 7:09 p.m. Packet Page 6 of 20 AM-7024 5. Transportation Benefit District Board Meeting Date:08/04/2014 Time:15 Minutes Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Type: Information Information Subject Title Edmonds TBD Semi-Annual Update Recommendation Previous TBD Action The Edmonds City Council meets semi-annually in an ex-officio capacity as the governing Board of the Edmonds Transportation Benefit District. These meetings occur on the first Tuesdays of February and August immediately preceding the regular City Council meetings. In February, the annual report required under RCW 36.73.160(2) is provided to the Board. In August, a semi-annual update is presented to the Board for information and discussion. Narrative The Department of Public Works & Utilities is presenting its semi-annual update of the City of Edmonds Transportation Benefit District (TBD) operations for the calendar year 2014. The TBD was formed in November 2008 following procedures outlined in Revised Code of Washington 36.73 and in accordance with Edmonds City Code Chapter 3.65. In February 2009 a $20 local license fee was established by its governing Board the Edmonds City Council. During the first six months of 2014 the Edmonds TBD received a total of $340,369 in revenue from local license fees on vehicles registered within the jurisdictional limits of the City of Edmonds. These collected funds were expended for street maintenance, preservation, and operation of the street transportation system within the City’s boundaries. Eligible activities included localized pavement repairs, pothole repairs, signage management, maintenance of pavement markings (buttons, curb paint, etc.), crosswalk painting, and traffic signal maintenance and repair. During the first six months of 2014 the City expended a total of $358,436 against this same list of activities. *An additional $18,067 in expenditures were eligible for reimbursement from this funding source. However, due to funding constraints, these expenditures were absorbed by Fund 111 - Street Fund. Attachments Schedule of Revenue, Expenditures, & Fund Balance Semi-Annual Update Presentation Form Review Inbox Reviewed By Date City Clerk Scott Passey 07/29/2014 01:20 PM Mayor Dave Earling 07/30/2014 11:42 AM Finalize for Agenda Scott Passey 07/30/2014 01:57 PM Form Started By: Kody McConnell Started On: 07/28/2014 02:31 PM Final Approval Date: 07/30/2014 Packet Page 7 of 20 (Unaudited Cash Basis) 340,369$ 340,369 - 2,500 Labor & Benefits 52,348 Supplies 19,433 Labor & Benefits 137,279 Supplies 53,449 75,359 - 340,369 - - -$ Schedule of Revenues, Expenditures and Changes in Fund Balance Transportation Benefit District January 1, 2014 through June 30, 2014 Excess Transferred to Street Fund Revenues $20 Vehicle Registration Fee Total Revenues Expenditures Professional Services Insurance Road Maintenance (includes repairs, patching, crack sealing) Traffic Control Vehicle Charges Total Expenditures Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending (1) An additional $18,067 in expenditures were eligible for reimbursement from this funding source, however, due to funding constraints, these expenditures were absorbed by Fund 111 ‐Street Fund. Packet Page 8 of 20 Edmonds Transportation Benefit District Semi-Annual Update 8/4/2014 Packet Page 9 of 20 Edmonds Transportation Benefit District (TBD) Semi-Annual Update Edmonds City Council forms TBD on November 18, 2008. TBD Board enacts $20/year fee with Ord. No. 1 on February 17th, 2009 limiting the uses of funds collected to maintenance and preservation of streets and related traffic control assets. $340,369 collected in first half of 2014 and $358,436 spent on maintenance and preservation of City streets from January through June, including pavement repair & maintenance, signage management, markings, crosswalks, and traffic signals. The additional $18,067 in expenditures were eligible for reimbursement from this funding source. However, due to funding constraints, these expenditures were absorbed by Fund 111 - Street Fund. 45.4% of $645,000 budgeted revenue received through June. This keeps us on pace to meet 2014 Budget projections Packet Page 10 of 20 Crack Sealing Packet Page 11 of 20 Graffiti Removal Packet Page 12 of 20 Asphalt Repair Packet Page 13 of 20 Pothole Patching Packet Page 14 of 20 Signal Maintenance & Programming Packet Page 15 of 20 Paving Someday Soon? Packet Page 16 of 20 Packet Page 17 of 20 Packet Page 18 of 20 Edmonds Transportation Benefit District (TBD) –$645,000 budgeted for 2014 to come from gas tax for Street maintenance and preservation. –$115,000 budgeted for 2014 to come from gas tax for Street capital projects. $5,000 less than in 2013. –Prevailing elevated gas prices and a lackluster economy continue to restrain motor vehicle fuel tax revenue estimations. –Total gas tax in Washington 55.9 cents/gallon (7th highest) – fixed. –The City has not performed overlays of any of its streets with its own General Fund resources since 2008. This year we will be paving portions of 100th Ave S (from Edmonds Way to 238th St SW and northbound lane down to 244th St SW if funding is available). –In 2014 the City will spend $73,750 on chip seal projects. –We estimate an additional $1.6 million is needed above and beyond current funding levels to provide a sustainable street condition. This does not include capital projects. Packet Page 19 of 20 Questions? Packet Page 20 of 20