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2014.02.18 Transportation Benefit District Board A            AGENDA CITY OF EDMONDS TRANSPORTATION BENEFIT DISTRICT BOARD Council Chambers, Public Safety Complex 250 5th Avenue North, Edmonds ______________________________________________________________ FEBRUARY 18, 2014             6:30 P.M. - CALL TO ORDER / FLAG SALUTE   1.Roll Call   2.Approval of Agenda   3.AM-6598 Approval of Transportation Benefit District Minutes of August 6, 2013   4.(5 Minutes) AM-6599 Election of Transportation Benefit District Board President and Vice President for 2014.   5.Audience Comments (3 minute limit per person)   6.(10 Minutes) AM-6529 2013 Annual Report per RCW 36.73.160(2)   7.(15 Minutes)Board Comments   ADJOURN   Packet Page 1 of 51    AM-6598     3.              Transportation Benefit District Board Meeting Date:02/18/2014 Time:  Submitted By:Scott Passey Department:City Clerk's Office Type: Action  Information Subject Title Approval of Transportation Benefit District Minutes of August 6, 2013 Recommendation Review and approve draft TBD minutes. Previous TBD Action N/A Narrative Attached are the draft TBD minutes of August 6, 2013. Attachments 08-06-13 Draft TBD Minutes Form Review Form Started By: Scott Passey Started On: 02/14/2014 09:43 AM Final Approval Date: 02/14/2014  Packet Page 2 of 51 CITY OF EDMONDS TRANSPORTATION BENEFIT DISTRICT BOARD DRAFT MINUTES August 6, 2013 The Edmonds Transportation Benefit District meeting was called to order at 6:30 p.m. by Board Vice President Kristiana Johnson in the Council Chambers, 250 5th Avenue North, Edmonds. The meeting was opened with the flag salute. OFFICIALS PRESENT Kristiana Johnson, Board Vice President Strom Peterson, Board Member Lora Petso, Board Member Joan Bloom, Board Member Adrienne Fraley-Monillas, Board Member Diane Buckshnis, Board Member OFFICIALS ABSENT Frank Yamamoto, Board President STAFF PRESENT Phil Williams, Public Works Director Roger Neumaier, Finance Director Jeff Taraday, City Attorney Sandy Chase, City Clerk Jana Spellman, Senior Executive Council Asst. Jeannie Dines, Recorder 1. ROLL CALL City Clerk Sandy Chase called the roll. All Board Members were present with the exception of Board Member Yamamoto. 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 BOARD MEETING MINUTES OF FEBRUARY 5, 2013. BOARD MEMBER BUCKSHNIS MOVED, SECONDED BY BOARD MEMBER PETERSON, TO APPROVE THE TRANSPORTATION BENEFIT DISTRICT BOARD MEETING MINUTES OF FEBRUARY 5, 2013. MOTION CARRIED UNANIMOUSLY. 4. AUDIENCE COMMENTS There were no members of the public present who wished to address the TBD Board. 5. EDMONDS TBD SEMI-ANNUAL UPDATE Public Works Director Phil Williams provided the following information: • Edmonds City Council forms TBD on November 18, 2008. Packet Page 3 of 51 • 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. • $640,944 collected in 2012 spent on maintenance and preservation of City streets, including pavement repair & maintenance, signage management, markings (buttons, curb paint, etc.), crosswalks, and traffic signals. • $325,477 collected in first half of 2013 and $282,230 spent on maintenance and preservation of City streets from January through June, including pavement repair & maintenance, signage management, markings, crosswalks, and traffic signals. 50.46% of budgeted revenue received January through June. • Need to address the ordinance to expand the list of eligible expenses such as electricity for street lights and traffic signals. Mr. Williams displayed several photographs of streets in need of repair due to alligator cracking, raveling at the edges, failed utility patches, etc. He also provided the following information: • $650,000 budgeted for 2013 to come from gas tax for street maintenance and preservation. $50,000 less than in 2012. $265,256 received January through May (5 months – on track) • $120,000 budgeted for 2013 to come from gas tax for street capital projects. $40,000 less than in 2012. • Prevailing elevated gas prices and a lackluster (but improving) economy have lowered gas tax revenue estimations. • Total gas tax in Washington 55.9 cents/gallon (7th highest) - fixed • The City has not paved any of its streets with its own general governmental resources since 2008. Deferred street maintenance is costly. • An estimated additional $1.5 million is needed above and beyond current funding levels to provide a sustainable street condition. This does not include capital. Board Member Buckshnis inquired about chip sealing. Mr. Williams answered chip sealing could be a cost effective technique in Edmonds, depending on the street’s condition and location. Chip seal can cover more square footage for less money; it doesn’t last as long as a 2-inch grind and overlay. He summarized the City did not currently have the funds available to spend on any pavement preservation program. Board Member Buckshnis noted Seattle has dedicated approximately $500,000 to chip seal. Mr. Williams advised Shoreline has budgeted $1 million for chip seal. Board Member Buckshnis asked whether more fuel efficient vehicles also impact gas tax revenues. Mr. Williams agreed they do; during the last two legislative sessions bills were proposed (but not approved) to impose an annual fee on all-electric vehicles that use the streets but they do not pay the gas tax. Board Member Buckshnis asked if the legislature approved a Councilmanic increase of the TBD fee to $40. Mr. Williams replied that increase was included in other larger transportation packages that ultimately did not pass. Board Member Peterson referred to Mr. Williams’ suggestion to revise the ordinance to expand the list of eligible expenses and asked whether he preferred to expand the list to include all the items in the RCW or to select specific expenses. Mr. Williams recommended expanding the list to include the items in the RCW. He acknowledged when the TBD was first formed there was a preference to keep the list of eligible expenses short. The current eligible expenses do not include sidewalk maintenance, vegetation management, electricity for street lights, etc. Board Member Peterson suggested the Board consider revising the ordinance at its next meeting. Mr. Williams offered to provide a draft ordinance at the Board’s next meeting. Packet Page 4 of 51 6. BOARD COMMENTS Board Member Peterson commented the additional TBD fee was included in transportation bills that did not pass. Edmonds’ State representatives were supportive of a transportation package. He encouraged the Council and citizens to urge the legislature to pass a transportation package to provide funding for street maintenance. Board Vice President Johnson advised the next TBD Board meeting is February 2014. 7. ADJOURN With no further business, the TBD Board meeting was adjourned at 6:43 p.m. Packet Page 5 of 51    AM-6599     4.              Transportation Benefit District Board Meeting Date:02/18/2014 Time:5 Minutes   Submitted By:Scott Passey Department:City Clerk's Office Type:  Information Subject Title Election of Transportation Benefit District Board President and Vice President for 2014. Recommendation Elect a TBD President and Vice President to serve in 2014. Previous TBD Action N/A Narrative Each year the TBD Board shall elect a President and Vice President to preside at TBD Board meetings. Form Review Form Started By: Scott Passey Started On: 02/14/2014 09:47 AM Final Approval Date: 02/14/2014  Packet Page 6 of 51    AM-6529     6.              Transportation Benefit District Board Meeting Date:02/18/2014 Time:10 Minutes   Submitted For:Phil Williams Submitted By:Kody McConnell Department:Public Works Type: Information  Information Subject Title 2013 Annual Report per RCW 36.73.160(2) Recommendation N/A  Previous TBD Action  N/A Narrative The City of Edmonds is publishing the results of its Transportation Benefit District (ETBD) operations for the calendar year 2013. The ETBD 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 Board of Directors, the Edmonds City Council. The publishing of this report is in accordance with RCW 36.73.160(2). During 2013 the ETBD received a total of $650,836 in revenue from local license fees on vehicles registered within the jurisdictional limits of the City of Edmonds. These collected funds were expended for street maintenance, preservation, and operation of the street transportation system within the City’s boundaries. TBD-funded activities included localized pavement repairs, pothole repairs, signage management, maintenance of pavement markings (buttons, curb paint, etc.), crosswalk painting, and traffic signal maintenance and repair. Attachments 2013 Annual Statement of Revenues, Expenditures, and Changes in Fund Balance 2013 Annual Report Public Notice Chapter 36.73 RCW - TBDs Council Ordinance 3707 - Enabling TBD Chapter 3.65 ECC - TBD Council Ordinance 3804 - Amending TBD 2013 Annual Report Presentation Form Review Inbox Reviewed By Date City Clerk Scott Passey 02/14/2014 09:52 AM Mayor Dave Earling 02/14/2014 10:47 AM Finalize for Agenda Scott Passey 02/14/2014 10:53 AM Form Started By: Kody McConnell Started On: 01/27/2014 12:45 PM Final Approval Date: 02/14/2014  Packet Page 7 of 51 (Unaudited Cash Basis) 650,836$ 650,836 1,756 5,000 Labor & Benefits 99,661 Supplies 26,645 Labor & Benefits 220,437 Supplies 110,691 143,584 43,062 650,836 0 - 0$ Total Expenditures Net Change in Fund Balances Fund Balances - Beginning Fund Balances - Ending 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 Schedule of Revenues, Expenditures and Changes in Fund Balance Transportation Benefit District January 1, 2013 through December 31, 2013 Packet Page 8 of 51 The City of Edmonds is publishing the results of its Transportation Benefit District (ETBD) operations for the calendar year 2013. The ETBD 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 Board of Directors, the Edmonds City Council. The publishing of this report is in accordance with RCW 36.73.160(2). During 2013 the ETBD received a total of $650,836 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. TBD-funded 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. The following link is provided for additional information regarding the Edmonds Transportation Benefit District. http://www.edmondswa.gov/government/districts/transportation.html Edmonds Transportation Benefit District Official Notice of 2013 Annual Report Packet Page 9 of 51 Packet Page 10 of 51 Packet Page 11 of 51 Packet Page 12 of 51 Packet Page 13 of 51 Packet Page 14 of 51 Packet Page 15 of 51 Packet Page 16 of 51 Packet Page 17 of 51 Packet Page 18 of 51 Packet Page 19 of 51 Packet Page 20 of 51 Packet Page 21 of 51 Packet Page 22 of 51 Packet Page 23 of 51 Packet Page 24 of 51 Packet Page 25 of 51 Packet Page 26 of 51 Packet Page 27 of 51 Packet Page 28 of 51 Packet Page 29 of 51 Packet Page 30 of 51 Packet Page 31 of 51 Packet Page 32 of 51 Chapter 3.65 TRANSPORTATION BENEFIT DISTRICT Sections: 3.65.010 Establishing transportation benefit district. 3.65.020 Governing board. 3.65.030 Functions of the district. 3.65.040 Transportation improvements funded. 3.65.050 Dissolution of district. 3.65.010 Establishing transportation benefit district. There is created a transportation benefit district, to be known as the Edmonds transportation benefit district or “district,” with geographical boundaries comprised of the corporate limits of the city as they currently exist or as they may exist following future annexations. [Ord. 3707 § 2, 2008]. 3.65.020 Governing board. A. The governing board of the transportation benefit district shall be the Edmonds city council acting in an ex officio and independent capacity, which shall have the authority to exercise the statutory powers set forth in Chapter 36.73 RCW. B. The treasurer of the transportation benefit district shall be the city finance director. C. The public records officer of the transportation benefit district shall be the city clerk. D. The board shall develop a material change policy to address major plan changes that affect project delivery or the ability to finance the plan, pursuant to the requirements set forth in RCW 36.73.160(1). At a minimum, if a transportation improvement exceeds its original cost by more than 20 percent, as identified in the district’s original plan, a public hearing shall be held to solicit public comment regarding how the cost change should be resolved. E. The board shall issue an annual report, pursuant to the requirements of RCW 36.73.160(2). [Ord. 3872 § 1, 2012; Ord. 3707 § 2, 2008]. 3.65.030 Functions of the district. A. The district board may authorize a vehicle fee of up to $20.00 per vehicle as provided for by RCW 82.80.140. When authorized by the voters pursuant to the requirements of Chapter 36.73 RCW, other taxes, fees, charges and tolls or increases in these revenue sources may be assessed for the purposes provided for in the subsections of this section. 1. Pursuant to the initial authorization of Ordinance 3707, the district board may and has authorized a vehicle fee of up to $20.00 per vehicle as provided for by RCW 82.80.140 for the purpose of the preservation, maintenance and operations of the city streets. Packet Page 33 of 51 2. As authorized by the voters pursuant to the requirements of Chapter 36.73 RCW, additional taxes, fees, charges and tolls or increases in those revenue sources may be assessed for the construction, reconstruction, updating or improvement of public transportation facilities shown on the Edmonds comprehensive plan and transportation improvement plan. This additional function of the district has been authorized by ordinance amendment in compliance with the provisions of Chapter 36.73 RCW. These additional transportation projects authorized pursuant to the vote of the transportation benefit district shall be deemed funded and effective when approved by a vote of the people in accordance with the provisions of state law. The projects authorized shall be limited to those specifically identified in the proposition put to the voters. B. Additional transportation improvements may be added to the functions of the district upon compliance with Chapter 36.73 RCW. C. The board shall have and exercise all powers and functions provided for by Chapter 36.73 RCW in order to fulfill the functions of the district. [Ord. 3804 § 1, 2010; Ord. 3707 § 2, 2008]. 3.65.040 Transportation improvements funded. Two separate sets of functions have been established by ordinance for the transportation benefit district. The funds generated by a vehicle fee of up to $20.00 per vehicle authorized by the board in accordance with RCW 82.80.140 shall be used solely for transportation improvements that preserve, maintain and operate the existing transportation infrastructure of the city, consistent with the requirements of Chapter 36.73 RCW. Upon authorization by the voters, additional funds from other taxes, fees, charges and tolls or increases in these revenue sources may be utilized for the construction of transportation improvements specifically described in the proposition submitted to the voters. Funds raised from either revenue source may be utilized for any lawful purpose under Chapter 36.73 RCW, but all funds raised through the TBD shall be expended only for the purposes specified, i.e.: A. For the preservation, maintenance and operation of the existing city street transportation improvement infrastructure; or B. For projects specifically designated in a ballot proposition approved by the voters and utilizing the funding source approved by the voters. Such improvements are intended to comply with the provisions of the Growth Management Act and the city’s comprehensive plan and reduce the risk of transportation facilities’ failure, improve safety, continue the cost effectiveness of the city’s infrastructure improvements and to encourage the optimum use of the transportation system. Additional transportation improvement projects may be funded only after compliance with the provisions of RCW 36.73.050(B) following notice, public hearing and enactment of an additional authorizing ordinance. [Ord. 3804 § 2, 2010; Ord. 3707 § 2, 2008]. 3.65.050 Dissolution of district. The transportation district has been authorized to fulfill two separate functions. Each function of the district shall expire and be dissolved upon its completion. Packet Page 34 of 51 A. Street preservation, maintenance and operation are ongoing, long-term obligations of the city. In order to comply with the dissolution requirement of RCW 36.73.050, a street resurfacing cycle of 20 years was adopted and the district shall be deemed authentically dissolved with respect to the function of street preservation, maintenance and operation 18 years from the effective date of the original Ordinance 3707, to wit, November 28, 2026. B. Upon authorization by the voters, the additional transportation improvements specifically described in the proposition shall be deemed authorized. In accordance with the dissolution requirements of RCW 36.73.050, the powers, duties and functions of the district shall be deemed dissolved with respect to such voter-approved projects when all indebtedness of the districts with regard to such projects has been retired and all transportation improvements described in such project list have been completed. Upon dissolution with respect to these functions, the voters’ author ization for funding to construct such funding shall be deemed to automatically expire. Nothing herein shall be interpreted to prohibit the Edmonds city council on the recommendation of the Edmonds transportation benefit district to dissolve the district in whole or in part and/or reformulate it in accordance with the provisions of RCW 36.73.050. [Ord. 3804 § 3, 2010; Ord. 3707 § 2, 2008]. Packet Page 35 of 51 Packet Page 36 of 51 Packet Page 37 of 51 Packet Page 38 of 51 Packet Page 39 of 51 Packet Page 40 of 51 Packet Page 41 of 51 Packet Page 42 of 51 Edmonds Transportation Benefit District 2013 Annual Report 2/18/2014 Packet Page 43 of 51 Edmonds Transportation Benefit District (ETBD) Annual Report Edmonds City Council forms ETBD 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. Packet Page 44 of 51 Asphalt Repair Packet Page 45 of 51 Pothole Patching Packet Page 46 of 51 Signal Maintenance & Programming Packet Page 47 of 51 Graffiti Removal Packet Page 48 of 51 Paving Packet Page 49 of 51 Edmonds Transportation Benefit District (ETBD) –$645,000 budgeted for 2014 to come from gas tax for Street maintenance, preservation, and operations. $5,000 less than wast 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. –We estimate an additional $1.2 million is needed above and beyond current funding levels to provide a sustainable street condition. This does not include capital projects. Packet Page 50 of 51 Questions? Packet Page 51 of 51