HomeMy WebLinkAboutTBD Agenda Packet 04/18/2017
A. CALL TO ORDER - SPECIAL MEETING AT 5:00 P.M. – The Port Angeles City Council, acting as the
Transportation Benefit District Board, will meet for the purpose of considering a .2% sales tax ballot measure to be placed on the
August 1, 2017 ballot. The meeting is open to the public. The agenda includes:
1. Transportation Benefit District Sales Tax Ballot Measure / Approve .............................................................................. A-1
The Transportation Benefit District Board will meet until approximately 5:30 p.m. (the TBD Board Meeting will continue until the
business concludes; following which the Port Angeles City Council Executive Session will convene).
ADJOURNMENT –
TRANSPORTATION BENEFIT
DISTRICT BOARD
321 East 5th Street
April 18, 2017
SPECIAL MEETING – 5:00 p.m.
April 18, 2017 Transportation Benefit District Board Page - 1
• ORTNGELES
WF=amw W A S H I N G T O N, U. S. A.
04OWA CITY COUNCIL MEMO
DATE: April 18, 2017
To: Transportation Benefit District Board
FROM: CRAIG FULTON,P.E.,DIRECTOR OF PUBLIC WORKS&UTILITIES
SUBJECT: Transportation Benefit District- Sales Tax Ballot Measure
Summary: On April 4, 2017, the City Council approved the establishment of a Transportation Benefit
District (TBD)which created an independent taxing district solely for the maintenance, repair and
construction of City transportation improvements. The Board now must approve a funding mechanism
for the district. The recommended funding mechanism is the establishment of a 0.2% sales tax
Funding Overview: If approved by voters on the August 1 ballot, establish a 0.2% sales tax to
commence January 1, 2018, as part of the Transportation Benefit District.
Recommendation: That the Transportation Benefit District Board approve the ballot measure
resolution for a 0.2% sales tax to be placed on the August 1, 2017 ballot.
Background/Analysis: On April 4, 2017, the City Council approved the establishment of a
Transportation Benefit District which created an independent taxing district solely for the maintenance,
repair, and construction of City transportation improvements. The Board now must approve a funding
mechanism for the District. The recommended funding mechanism is the establishment of a 0.2% sales
tax. It is expected that between$650,000 - $700,000 will be raised annually for transportation
improvements.
The General Fund has reached a financial position where it can no longer support the proper
maintenance and repair of City streets through substantial capital repair projects. As a General Fund
expense, the Street Fund must compete against Police, Fire, and Parks & Recreation for yearly
financing, both for operations and capital projects. Though the priority setting process has rated street
maintenance as a high priority, financial reality dictates that it will never receive proper funding for the
most minimum required maintenance and repair.
The City has approximately 120 miles of road and 40 miles of alleys. Currently, the City's street
Pavement Condition Index (PCI) is rated as a 43, on a 0-100 scale (zero being a failed street and 100
being newly paved). A PCI of 43 is considered"Poor"condition. The City's alleys are rated with a
PCI of 5, which is considered"Very Poor." At current funding levels, there is no street restoration
program to begin improving street conditions, or even minimally slowing street degradation. The
Street Fund is currently funded at a level which only makes spot repairs to "failed" sections of road.
04/18/2017
April 18,2017 Transportation Benefit District Board
Re: Ballot Measure-Transportation Benefit District
Page 2
There is no sustainable street maintenance solution without a TBD.
The TBD is an independent taxing district created for the sole purpose to provide and fund
transportation improvements in the district. The establishment of a TBD will create a restricted source
of funds specifically designated for street maintenance and repair. Though a TBD alone will not
generate enough money to fully fund the Street program, a TBD can augment the limited funds
provided by the General Fund to allow increased road preventive maintenance and limited road
restoration.
While there are numerous funding mechanisms allowed by the State of Washington in a TBD, the Port
Angeles City Council requested staff develop a plan and timeline for bringing a 0.2% TBD sales tax to
the voters on an upcoming ballot (2 cents for every $10). A sales tax would ensure that all users of
City streets contribute to their maintenance, including tourists, and all County residents who shop in
Port Angeles.
The procedure to establish and fund a TBD flows in several distinct steps as outlined below. After the
district is established, as occurred on May 4, 2017, then the governing board of the district, the council,
determines a funding method. In the event that the Council elects a funding method that must be
approved by the voters, the Council then passes a resolution placing the question on an election ballot.
9 MAR 2017 - Publish a Notice of Public Hearing - Complete
21 MAR 2017 - First reading of TBD ordinance and open public hearing - Complete
04 APR 2017 - Second reading of TBD ordinance; continue and close public hearing; Council
adopts ordinance - Complete
18 APR 2017 - Council (acting as Board of TBD)passes Resolution establishing a TBD ballot
measure for 0.2% sales tax
12 May 2017 - Filing Deadline
1 Aug 2017 - Ballot measure on Primary election
15 Aug 2017 - Election is certified
17 Oct 2017 - Deadline to provide notice to Department of Revenue
1 Jan 2018 - State commences 0.2% sales tax collection (if voter approved)
Attachment:
Ballot Measure establishing a 0.2% sales tax for the Transportation Benefit District
04/18/2017
RESOLUTION NO.
A RESOLUTION of the Governing Board of the Port Angeles Transportation
Benefit District of the City of Port Angeles, Washington, providing for a
ballot proposition to be submitted to the qualified electors of the District
on August 1, 2017, to authorize a sales and use tax to be imposed within
the boundaries of the District upon all taxable retail sales and uses in the
amount of two-tenths of one percent (0.2%) for the purpose of financing
all or a portion of the costs associated with transportation improvements in
the District identified herein for a period of ten(10) years.
WHEREAS, the City of Port Angeles (the "City") approved Ordinance No. 3578 on
April 4, 2017, establishing the Port Angeles Transportation Benefit District ("TBD") of the
City of Port Angeles (the "District")pursuant to Chapter 36.73 RCW; and
WHEREAS, the City does not currently have sufficient funds with which to pay for
transportation capital improvements, including, but not limited to, improvements that are
identified as necessary in the City's Six-Year(2017-2022) Transportation Improvement Plan;
and
WHEREAS, the District is authorized pursuant to RCW 36.73.040(3)(a) to impose a
sales and use tax in accordance with RCW 82.14.0455 in an amount not exceeding two-tenths
of one percent (0.2%) for a period of ten years upon a favorable vote of the qualified electors
within the District for the purpose of financing certain transportation improvements; and
WHEREAS, the City has identified a sales and use tax imposed in accordance with
RCW 82.14.0455 as a funding source available to the District, as well as any other lawful
funding sources available to the District pursuant to RCW 36.73.040; and
WHEREAS, if approved by the voters,the sales and use tax will apply to persons who
shop and thereby use the roads in the City and not just to City residents; and
WHEREAS, if approved by the voters, revenues from a sales and use tax will be used
to fund transportation improvements in the District as identified in the City's Six-Year(2017-
2022) Transportation Improvement Plan which include the preservation, maintenance, and
operation of existing transportation infrastructure of the City; and
04/18/2017
WHEREAS, if approved by the voters, the revenues from a sales and use tax will
supplement, not supplant, existing funds committed to transportation improvements that are
paid through the City's General Fund.
NOW,THEREFORE,BE IT RESOLVED by the Governing Board of the Port Angeles
Transportation Benefit District as follows:
Section 1 —Findings. The Governing Board of the District(the `Board") hereby finds
that the best interests of the inhabitants of the District require the District to submit to the
qualified voters of the District,at a special election to be held on August 1,2017,a proposition
authorizing the District to impose a sales and use tax in the amount of two-tenths of one percent
(0.2%) pursuant to RCW 36.73.040(3)(a), RCW 36.73.065(1), and RCW 82.14.0455 for the
purpose of providing a portion of the funds necessary to finance transportation improvements
in the District, and to impose such sales and use tax if approved by an affirmative vote of a
majority of the District voters voting at the election.
Section 2 — Description of transportation improvements. The transportation
improvements carried out with the sales and use tax revenues must be projects or programs
contained in the City's Six-Year(2017-2022) Transportation Improvement Plan, including all
associated maintenance, operation, labor, material, and equipment required for these projects
and programs. The specific projects within the City's Six-Year (2017-2022) Transportation
Improvement Plan include:
• 10th Street reconstruction;
• 10th Street overlay(M Street—I Street);
• Chip seal preservation projects on: Park Avenue,Peabody Street, Chase Street,
N Street, 8th Street, and Golf Course Road;
• Liberty Street reconstruction;
• ADA improvements on Francis Street and Peabody Street;
• Various alley paving repairs;
• School walking route improvements; and
• Other projects as identified in the City's Transportation Improvement Plan, as
adopted or hereafter amended.
The cost of all necessary design, engineering, financial, legal and other consulting
services, inspection and testing, administrative and relocation expenses, and other costs
04/18/2017
incurred in connection with the foregoing TBD projects shall be deemed a part of the costs of
the TBD projects.
The Board shall determine the application of moneys available for the TBD projects
so as to accomplish, as nearly as may be practical, all of the TBD projects. In the event that
the proceeds of sales and use taxes authorized herein, plus any other money of the District
legally available, are insufficient to accomplish all of the TBD projects, the Board shall use
the available funds for paying the cost of those portions of the TBD projects deemed by the
Board most necessary and in the best interests of the District.
The Board shall determine the exact locations and specifications for the elements of
the TBD projects as well as the timing, order, and manner of implementing or completing the
TBD projects. The Board may alter, make substitutions to, and amend the TBD project
descriptions as it determines is in the best interests of the District consistent with the general
descriptions provided above and in accordance with the material change policy adopted by the
Board and the notice, hearing, and other procedures described in Chapter 36.73 RCW,
including RCW 36.73.050(2)(b), as the same may be amended.
If the Board shall determine that it has become impractical to acquire, construct, or
implement all or any portion of the TBD projects by reason of changed conditions,
incompatible development, costs substantially in excess of the amount of sales and use tax
proceeds estimated to be available, or acquisition by a superior governmental authority, the
Board shall not be required to acquire, construct,or implement such portions. If all of the TBD
projects have been acquired, constructed, implemented or duly provided for, or found to be
impractical, the Board may apply the sales and use tax proceeds (including earnings thereon)
or any portion thereof to other transportation improvements then identified in the City's Six-
Year (2017-2022) Transportation Improvement Plan in accordance with the material change
policy adopted by the Board and the notice,hearing,and other procedures described in Chapter
36.73 RCW, including RCW 36.73.050(2)(b), as the same may be amended.
Section 3 —Ballot Proposition.
It is hereby found and declared that the best interests of the District require the
submission to the qualified electors of the District a proposition whether the District shall
impose a sales and use tax within the limitations established in RCW 82.14.0455 for their
approval or rejection at a special election to be held on August 1, 2017. For the purpose of
04/18/2017
providing funds necessary to pay or finance a portion of the costs of the TBD Projects, the
Clallam County Auditor, as ex officio supervisor of elections in Clallam County, Washington,
is hereby requested to call and conduct such election to be held within the District on such day
and to submit to the qualified electors of the District for their approval or rejection, a
proposition to impose a sales and use tax in the amount of two-tenths of one percent(0.2%) of
the selling price in the case of a sales tax, or value of the article used in the case of the use tax.
The sales and use tax authorized by this section is in addition to any other taxes authorized by
law, shall be collected from those persons who are taxable by the State of Washington under
Chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the
boundaries of the District, and shall be imposed for a period of ten years from its first date of
collection.
Upon approval of the voters of the proposition hereinafter set forth, the District may
use proceeds of such sales and use tax for the purpose of paying or financing a portion of the
costs of TBD projects. The Clerk of the Board is hereby authorized and directed to certify said
proposition to said official in the following form:
PORT ANGELES TRANSPORTATION BENEFIT DISTRICT
PORT ANGELES,WASHINGTON
SALES AND USE TAX FOR
TRANSPORTATION IMPROVEMENTS
The Governing Board of the Port Angeles Transportation Benefit District adopted
Resolution concerning a sales and use tax to fund transportation
improvements. This proposition would authorize a sales and use tax of two-tenths of
one percent (0.2%) to be collected from all taxable retail sales within the District in
accordance with RCW 82.14.0455 for a term of ten years for the purpose of paying for
or financing the costs of the following transportation improvement projects: street and
sidewalk preservation,maintenance, and repair, including transportation improvement
projects identified in the City's Six-Year (2017-2022) Transportation Improvement
Plan.
Should this proposition be approved?
YES ................................... ❑
NO .................................... ❑
04/18/2017
Section 4 — Corrections. The Clerk of the District and the codifiers of this resolution
are authorized by the Port Angeles Transportation Benefit District Board to make necessary
clerical corrections to this resolution including, but not limited to, the correction of
scrivener's/clerical errors, references, resolution numbering, section/subsection numbers and
any references thereto, and to make corrections or revisions consistent with the requirements
of the Clallam County Prosecuting Attorney or County Auditor which do not change the
substantive meaning of the resolution.
Section 5 — Severability. If any section, sentence, clause, or phrase of this resolution
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or constitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause, or phrase of this resolution.
PASSED by the Board of the Port Angeles Transportation Benefit District, Port
Angeles, Washington, at a regular open public meeting thereof on the day of
2017.
Chairperson
ATTEST:
Jennifer Veneklasen, Clerk of the Board
APPROVED AS TO FORM:
William E. Bloor, City Attorney
04/18/2017
RESOLUTION NO.
A RESOLUTION of the Governing Board of the Port Angeles Transportation
Benefit District of the City of Port Angeles, Washington, providing for a
ballot proposition to be submitted to the qualified electors of the District
on August 1, 2017, to authorize a sales and use tax to be imposed within
the boundaries of the District upon all taxable retail sales and uses in the
amount of two-tenths of one percent (0.2%) for the purpose of financing
all or a portion of the costs associated with transportation improvements in
the District identified herein for a period of ten(10) years.
WHEREAS, the City of Port Angeles (the "City") approved Ordinance No. 3578 on
April 4, 2017, establishing the Port Angeles Transportation Benefit District ("TBD") of the
City of Port Angeles (the "District")pursuant to Chapter 36.73 RCW; and
WHEREAS, the City does not currently have sufficient funds with which to pay for
transportation capital improvements, including, but not limited to, improvements that are
identified as necessary in the City's Six-Year(2017-2022) Transportation Improvement Plan;
and
WHEREAS, the District is authorized pursuant to RCW 36.73.040(3)(a) to impose a
sales and use tax in accordance with RCW 82.14.0455 in an amount not exceeding two-tenths
of one percent (0.2%) for a period of ten (10) years upon a favorable vote of the qualified
electors within the District for the purpose of financing certain transportation improvements;
and
WHEREAS, the City has identified a sales and use tax imposed in accordance with
RCW 82.14.0455 as a funding source available to the District, as well as any other lawful
funding sources available to the District pursuant to RCW 36.73.040; and
WHEREAS, if approved by the voters,the sales and use tax will apply to persons who
shop and thereby use the roads in the City and not just to City residents; and
WHEREAS, if approved by the voters, revenues from a sales and use tax will be used
to fund transportation improvements in the District as identified in the City's Six-Year(2017-
2022) Transportation Improvement Plan which include the preservation, maintenance, and
operation of existing transportation infrastructure of the City; and
04/18/2017
WHEREAS, if approved by the voters, the revenues from a sales and use tax will
supplement, not supplant, existing funds committed to transportation improvements that are
paid through the City's General Fund.
NOW,THEREFORE,BE IT RESOLVED by the Governing Board of the Port Angeles
Transportation Benefit District as follows:
Section 1 —Findings. The Governing Board of the District(the `Board") hereby finds
that it is in the best interests of the District to submit to the qualified voters of the District, at
a special election to be held on August 1,2017,a proposition authorizing the District to impose
a sales and use tax in the amount of two-tenths of one percent (0.2%) pursuant to RCW
36.73.040(3)(a), RCW 36.73.065(1), and RCW 82.14.0455 for the purpose of providing a
portion of the funds necessary to finance transportation improvements in the District, and to
impose such sales and use tax if approved by an affirmative vote of a majority of the District
voters voting at the election.
Section 2 — Description of transportation improvements. The transportation
improvements carried out with the sales and use tax revenues must be projects or programs
contained in the City's Six-Year(2017-2022) Transportation Improvement Plan, including all
associated maintenance, operation, labor, material, and equipment required for these projects
and programs. The specific projects within the City's Six-Year (2017-2022) Transportation
Improvement Plan include:
• 10th Street reconstruction;
• 10th Street overlay(M Street—I Street);
• Chip seal preservation projects on: Park Avenue,Peabody Street, Chase Street,
N Street, 8th Street, and Golf Course Road;
• Liberty Street reconstruction;
• ADA improvements on Francis Street and Peabody Street;
• Various alley paving repairs;
• School walking route improvements; and
• Other projects as identified in the City's Transportation Improvement Plan, as
adopted or hereafter amended.
The cost of all necessary design, engineering, financial, legal and other consulting
services, inspection and testing, administrative and relocation expenses, and other costs
04/18/2017
incurred in connection with the foregoing TBD projects shall be deemed a part of the costs of
the TBD projects.
The Board shall determine the application of moneys available for the TBD projects
so as to accomplish, as nearly as may be practical, all of the TBD projects. In the event that
the proceeds of sales and use taxes authorized herein, plus any other money of the District
legally available, are insufficient to accomplish all of the TBD projects, the Board shall use
the available funds for paying the cost of those portions of the TBD projects deemed by the
Board most necessary and in the best interests of the District.
The Board shall determine the exact locations and specifications for the elements of
the TBD projects as well as the timing, order, and manner of implementing or completing the
TBD projects. The Board may alter, make substitutions to, and amend the TBD project
descriptions as it determines is in the best interests of the District consistent with the general
descriptions provided above and in accordance with the material change policy adopted by the
Board and the notice, hearing, and other procedures described in Chapter 36.73 RCW,
including RCW 36.73.050(2)(b), as the same may be amended.
If the Board shall determine that it has become impractical to acquire, construct, or
implement all or any portion of the TBD projects by reason of changed conditions,
incompatible development, costs substantially in excess of the amount of sales and use tax
proceeds estimated to be available, or acquisition by a superior governmental authority, the
Board shall not be required to acquire,construct,or implement such portions. If all of the TBD
projects have been acquired, constructed, implemented or duly provided for, or found to be
impractical, the Board may apply the sales and use tax proceeds (including earnings thereon)
or any portion thereof to other transportation improvements then identified in the City's Six-
Year (2017-2022) Transportation Improvement Plan in accordance with the material change
policy adopted by the Board and the notice,hearing,and other procedures described in Chapter
36.73 RCW, including RCW 36.73.050(2)(b), as the same may be amended.
Section 3 —Ballot Proposition.
It is hereby found and declared that the best interests of the District require the
submission to the qualified electors of the District a proposition whether the District shall
impose a sales and use tax within the limitations established in RCW 82.14.0455 for their
approval or rejection at a special election to be held on August 1, 2017. For the purpose of
04/18/2017
providing funds necessary to pay or finance a portion of the costs of the TBD Projects, the
Clallam County Auditor, as ex officio supervisor of elections in Clallam County, Washington,
is hereby requested to call and conduct such election to be held within the District on such day
and to submit to the qualified electors of the District for their approval or rejection, a
proposition to impose a sales and use tax in the amount of two-tenths of one percent(0.2%) of
the selling price in the case of a sales tax, or value of the article used in the case of the use tax.
The sales and use tax authorized by this section is in addition to any other taxes authorized by
law, shall be collected from those persons who are taxable by the State of Washington under
Chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the
boundaries of the District,and shall be imposed for a period of ten(10)years from its first date
of collection.
Upon approval of the voters of the proposition hereinafter set forth, the District may
use proceeds of such sales and use tax for the purpose of paying or financing a portion of the
costs of TBD projects. The Clerk of the Board is hereby authorized and directed to certify said
proposition to said official in the following form:
PORT ANGELES TRANSPORTATION BENEFIT DISTRICT
PORT ANGELES,WASHINGTON
SALES AND USE TAX FOR
TRANSPORTATION IMPROVEMENTS
The Governing Board of the Port Angeles Transportation Benefit District adopted
Resolution concerning a sales and use tax to fund transportation
improvements. This proposition would authorize a sales and use tax of two-tenths of
one percent (0.2%) to be collected from all taxable retail sales within the District in
accordance with RCW 82.14.0455 for a term of ten(10)years for the purpose of paying
for or financing the costs of the following transportation improvement projects: street
and sidewalk preservation, maintenance, and repair, including transportation
improvement projects identified in the City's Six-Year (2017-2022) Transportation
Improvement Plan.
Should this proposition be approved?
YES ................................... ❑
NO .................................... ❑
04/18/2017
Section 4 — Corrections. The Clerk of the District and the codifiers of this resolution
are authorized by the Port Angeles Transportation Benefit District Board to make necessary
clerical corrections to this resolution including, but not limited to, the correction of
scrivener's/clerical errors, references, resolution numbering, section/subsection numbers and
any references thereto, and to make corrections or revisions consistent with the requirements
of the Clallam County Prosecuting Attorney or County Auditor which do not change the
substantive meaning of the resolution.
Section 5 — Severability. If any section, sentence, clause, or phrase of this resolution
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or constitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause, or phrase of this resolution.
PASSED by the Board of the Port Angeles Transportation Benefit District, Port
Angeles, Washington, at a regular open public meeting thereof on the 18th day of April 2017.
Chairperson
ATTEST:
Jennifer Veneklasen, Clerk of the Board
APPROVED AS TO FORM:
William E. Bloor, City Attorney
04/18/2017