2015.02.03 Transportation Benefit District Board A
AGENDA
CITY OF EDMONDS
TRANSPORTATION BENEFIT DISTRICT BOARD
Council Chambers, Public Safety Complex
250 5th Avenue North, Edmonds
______________________________________________________________
FEBRUARY 3, 2015
6:00 P.M. - CALL TO ORDER / FLAG SALUTE
1.(5 Minutes)Roll Call
2.(5 Minutes)Approval of Agenda
3.(5 Minutes)Approval of Consent Agenda Items
A.AM-7448 Approval of Transportation Benefit District Minutes of August 4, 2014
4.(5 Minutes)
AM-7459
Election of Transportation Benefit District Board President and Vice President for 2015.
5.Audience Comments (3 minute limit per person)
6.(15 Minutes)
AM-7447
2014 Annual Report per RCW 36.73.160(2)
7.(15 Minutes)Board Comments
ADJOURN
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AM-7448 3. A.
Transportation Benefit District Board
Meeting Date:02/03/2015
Time:
Submitted By:Scott Passey
Department:City Clerk's Office
Type: Action
Information
Subject Title
Approval of Transportation Benefit District Minutes of August 4, 2014
Recommendation
Review and approve draft TBD minutes.
Previous TBD Action
N/A
Narrative
Attached are the draft TBD minutes of August 4, 2014.
Attachments
08-04-14 Draft TBD Minutes
Form Review
Form Started By: Scott Passey Started On: 01/29/2015 09:03 AM
Final Approval Date: 01/29/2015
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CITY OF EDMONDS
TRANSPORTATION BENEFIT DISTRICT BOARD
DRAFT MINUTES
August 4, 2014
The Edmonds Transportation Benefit District meeting was called to order at 6:01 p.m. by Board President
Kristiana Johnson in the Council Chambers, 250 5th Avenue North, Edmonds.
OFFICIALS PRESENT
Kristiana Johnson, Board President
Strom Peterson, Board Vice President (arrived 6:08 p.m.)
Lora Petso, Board Member (arrived 6:10 p.m.)
Joan Bloom, Board Member
Adrienne Fraley-Monillas, Board Member
Diane Buckshnis, Board Member
OFFICIALS ABSENT
Tom Mesaros, Board Member
STAFF PRESENT
Phil Williams, Public Works Director
Jeff Taraday, City Attorney
Scott Passey, City Clerk
Gerrie Bevington, Camera Operator
Jeannie Dines, Recorder
1. ROLL CALL
City Clerk Scott Passey called the roll. All Board Members were present with the exception of Board
Members Peterson, Petso and Mesaros.
BOARD MEMBER BUCKSHNIS MOVED, SECONDED BY BOARD MEMBER FRALEY-
MONILLAS, TO EXCUSE BOARD MEMBER PETSO. MOTION CARRIED UNAIMOUSLY.
(Board Members Petso and Peterson were not present for the vote.)
2. APPROVAL OF AGENDA
BOARD MEMBER BUCKSHNIS, MOVED, SECONDED BY BOARD MEMBER BLOOM, TO
APPROVE THE AGENDA IN CONTENT AND ORDER. MOTION CARRIED UNANIMOUSLY.
(Board Members Peterson and Petso were not present for the vote.)
3. APPROVAL OF TRANSPORTATION BENEFIT DISTRICT MINUTES OF FEBRUARY 18, 2014
BOARD MEMBER BUCKSHNIS MOVED, SECONDED BY BOARD MEMBER FRALEY-
MONILLAS, TO APPROVE THE TRANSPORTATION BENEFIT DISTRICT MINUTES OF
FEBRUARY 18, 2014. MOTION CARRIED UNANIMOUSLY. (Board Members Peterson and Petso
were not present for the vote.)
4. AUDIENCE COMMENTS
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Al Rutledge, Edmonds, commented next year the City will have a reserve fund of nearly $9 million; he
suggested using $2 million for transportation projects. He also suggested the City inform the public it has
the money now but will not have it in the future and plan to have a $20-40 TBD fee on the ballot in 2016.
He noted the City plans to ask the legislature for $1 million next year for a study; the solution is getting
the people who use ferry who are not local to contribute to transportation funding.
5. EDMONDS TBD SEMI-ANNUAL UPDATE
Public Works Director Phil Williams explained this presentation is similar to last year’s because the
money collected by the TBD for street maintenance and preservation projects does not change much year
to year. He reviewed the following:
• 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.
• Collected $340,369 in first half of 2014 and spent $358,436 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 was eligible for reimbursement from this funding source.
However, due to funding constraints, these expenditures were absorbed by Fund 111 - Street
Fund.
• 52.8% of $645,000 budgeted revenue received through June. On pace to meet 2014 budget
projections.
Mr. Williams displayed photographs and described maintenance activities such as crack sealing, graffiti
removal, asphalt repair, pothole patching, signal maintenance and programing. Funds from the General
Fund were provided this year for pavement preservation; he was hopefully funding for a paving program
would be ongoing. This year’s pavement preservation included chip sealing three streets.
Mr. Williams displayed several photographs of failing pavement throughout the City. He provided the
following information regarding the 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 in U.S.) – fixed.
• The City has not performed overlays of any of its streets with its own General Fund resources
since 2008. This year the City 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 August 2014 the City spent $83,755 on a chip seal pilot program.
• 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.
Board Member Fraley-Monillas asked about applying sealer to the chip sealed streets. Mr. Williams
described the process of applying chip seal: sweep the street, lay tack a lane at a time, equipment lays the
chips on the tack, and it is allowed to set up. Vibratory rollers and pneumatic tire rollers are then used to
push the chips into tack and it is allow to set up for a few hours. A 27-member crew from Snohomish
County completed all three of the streets in one day between 8:00 a.m. and 3:00 p.m.. The fog seal is
applied two weeks later after the street is fully set. City crews have swept the three streets 4 times since
the chips were laid to pick-up any excess chips; 50 cubic yards of chips have been picked up. He
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acknowledged one of the problems with chip seal is loose rocks flying up and hitting windshields; the
goal is to remove as much loose material as possible but a chip sealed road will always shed a few chips.
Another tack layer will be applied to the surface in two weeks.
Board Member Buckshnis asked if the fog sealer was similar to wax on a floor. Mr. Williams explained
the fog sealer helps keep water from entering pavement, helps seal the chips into the chip seal treatment
and makes them less subject to flying around. Council President Buckshnis asked if the chip seal is
deemed to be successful, have other streets have been identified for this less costly treatment. Mr.
Williams answered only the three streets will be chip sealed this year. Whether to continue chip sealing
will be determined based on an evaluation of the performance of these streets, a decision that will involve
the Council.
Board Member Buckshnis relayed her concern with long term funding for streets, noting there is still
potential for funding from REET. She supported doing some pavement preservation every year. Mr.
Williams clarified funding for the pavement preservation program this year was from general
governmental tax dollars which include the General Fund and REET.
6. BOARD COMMENTS
Board President Johnson advised the next meeting of the TBD will be in approximately six months.
7. ADJOURN
With no further business, the TBD Board meeting was adjourned at 6:19 p.m.
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AM-7459 4.
Transportation Benefit District Board
Meeting Date:02/03/2015
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 2015.
Recommendation
Elect a TBD President and Vice President to serve in 2015.
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: 01/30/2015 01:00 PM
Final Approval Date: 01/30/2015
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AM-7447 6.
Transportation Benefit District Board
Meeting Date:02/03/2015
Time:15 Minutes
Submitted For:Phil Williams Submitted By:Kody McConnell
Department:Public Works
Type: Information
Information
Subject Title
2014 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 (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 Board of
Directors, the Edmonds City Council. The publishing of this report is in accordance with RCW 36.73.160(2).
In 2014 the TBD received a total of $670,435 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 City expended a total of $779,503 towards these activities in 2014.
Please see agenda memo attachments for additional detailed information.
Attachments
Chapter 36.73 RCW - TBDs
Council Ordinance 3707 - Enabling TBD
Chapter 3.65 ECC - TBD
Council Ordinance 3804 - Amending TBD
2014 TBD Annual Report Notice
2014 TBD Annual Report Accounting Notes
2014 TBD Annual Report Schedule of Revenues, Expenditures, and Changes in Fund Balance
2014 TBD Annual Report Presentation
Form Review
Inbox Reviewed By Date
City Clerk Scott Passey 01/29/2015 07:15 AM
Mayor Dave Earling 01/29/2015 08:35 AM
Finalize for Agenda Scott Passey 01/29/2015 09:18 AM
Form Started By: Kody McConnell Started On: 01/28/2015 02:53 PM
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Final Approval Date: 01/29/2015
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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.
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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.
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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].
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The City of Edmonds is publishing the results of its 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 Board of
Directors, the Edmonds City Council. The publishing of this report is in accordance with RCW
36.73.160(2).
In 2014 the TBD received a total of $670,435 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 City expended a
total of $779,503 towards these activities in 2014.
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 2014 Annual Report
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Note 1 - Summary of Significant Accounting Policies
The Edmonds Transportation Benefit District reports financial activity using the revenue and expenditure
classifications, statements, and schedules contained in the Cash Basis Budgeting, Accounting and
Reporting System (BARS) manual. This basis of accounting and reporting is another comprehensive
basis of accounting (OCBOA) that is prescribed by the State Auditor’s Office under the authority of
Washington State law, Chapter 43.09 RCW.
The Edmonds Transportation Benefit District was established on November 18, 2008, and operates under
the laws of the state of Washington applicable to Transportation Benefit Districts (TBD). The Edmonds
Transportation Benefit District is a quasi-municipal corporation and independent taxing district created for
the sole purpose of funding preservation and maintenance of local transportation infrastructure. The
Edmonds Transportation Benefit District uses single-entry, cash basis accounting which is a departure
from generally accepted accounting principles (GAAP).
A. Fund Accounting
The accounts of the Edmonds Transportation Benefit District are organized on the basis of funds,
each of which is considered a separate accounting entity. Each fund is accounted for with a
separate set of single-entry accounts that comprises its cash, investments, revenues and
expenditures, as appropriate. The Edmonds Transportation Benefit District resources are
allocated to and accounted for in individual funds depending on their intended purpose. The
following are the fund types used by the Edmonds Transportation Benefit District:
GOVERNMENTAL FUND TYPES
General (Current Expense) Fund
This fund is the primary operating fund of the Edmonds Transportation Benefit District. It accounts
for all financial resources except those required or elected to be accounted for in another fund.
B. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts
and reported in the financial statements. Revenues are recognized only when cash is received
and expenditures are recognized when paid, including those properly chargeable against the
report year(s) budget appropriations as required by state law.
In accordance with state law the District also recognizes expenditures paid during twenty days
after the close of the fiscal year for claims incurred during the previous period.
Purchases of capital assets are expensed during the year of acquisition. There is no capitalization
of capital assets, nor allocation of depreciation expense. Inventory is expensed when purchased.
The basis of accounting described above represents a comprehensive basis of accounting other
than accounting principles generally accepted in the United States of America.
Note 2 – Blended Component Unit
The Edmonds Transportation Benefit District is a blended component unit of the City of Edmonds.
The District is governed by the seven-member Edmonds City Council acting in an ex-officio
capacity as the District’s Board of Directors. The Officers of the District Board of Directors are
determined by peer election among the seven-member Board. The sole purpose of the Edmonds
Transportation Benefit District is to fund the maintenance and preservation of existing City of
Edmonds transportation improvements.
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(Unaudited Cash Basis)
670,435$
670,435
-
2,500
Labor & Benefits 122,183
Supplies 41,240
Labor & Benefits 249,024
Supplies 103,589
151,898
-
670,435
-
-
-$
Schedule of Revenues, Expenditures and
Changes in Fund Balance
Transportation Benefit District
January 1, 2014 through December 31, 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 $109,068 in expenditures were eligible for reimbursement from this funding source,
however, due to funding constraints, these expenditures were absorbed by Fund 111 ‐Street Fund.
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Edmonds Transportation
Benefit District
2014 Annual Report
2/3/2015
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Transportation Benefit District
2014 Annual Report Review
Edmonds City Council forms TBD on November 18, 2008. TBD
jurisdiction is only within the Edmonds city limits.
TBD Board enacts $20/year fee with Ordinance No. 1 on
February 17, 2009. TBD eligible expenditures include operation,
maintenance, and preservation of City streets and eligible traffic
control assets such as signals, markings, and crosswalks.
2014 TBD revenues and transfers to Street Fund 111 exceeded
$645,000 budget estimate by $25,435.
A total of $670,435 in vehicle fees was collected in 2014. All of
which and more was spent on TBD eligible expenditures.
The additional $109,068, the remaining 14% of TBD eligible
expenditures, were absorbed by Street Fund 111 due to revenue
constraints from the TBD funding source.
A total of $779,503 in TBD eligible expenditures was spent in
2014 with 86% of the expenditures funded by TBD license fees.
Capital improvement project costs are not included in totals.
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Asphalt Repair
& Paving
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Signal Maintenance &
Programming
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Graffiti Removal
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2015 Forecast
$650,000 budgeted for 2015 in TBD $20 vehicle fee revenue,
$5,000 more than budgeted in 2014.
$670,000 budgeted for 2015 to come from motor vehicle fuel tax
for funding street maintenance and operations including vegetation
management and lighting. $25,000 more than budgeted in 2014.
$140,000 in motor vehicle fuel tax revenues budgeted for 2015 for
transportation capital improvement projects. $25,000 more than
2014 estimate.
Total motor vehicle fuel tax in WA fixed at 55.9¢/gallon (7th highest)
Recent price collapse in global crude oil market may spur more
consumption by motorists potentially increasing revenues slightly.
$400,000 in 2015 General Fund transfers to Street Fund 111
budgeted for basic operations and maintenance expenses.
$706,000 in 2015 General Fund transfers to Street Fund 112
budgeted for city-wide Pavement Preservation Program.
We estimate an additional $1.5 million is needed above and
beyond current funding levels to provide a sustainable street
condition. This does not include capital improvement projects.
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Questions?
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