HomeMy WebLinkAbout11/27/2019 - City Council - City Council Meeting Agenda Packet - Steven C Lacy, MayorIn compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk
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City Council Workshop
East Wenatchee City Hall
271 9th St. NE
East Wenatchee, WA 98802
AGENDA
Wednesday, November 27, 2019, 4:00 PM
____________________________________________________________
1. 2020 Final Budget Discussion – Josh DeLay
2. Initiative Measure No. 976 and Transportation Benefit District
Funding Options – Josh DeLay
3. Prothman Employment Agency Professional Services Proposal –
Councilmember Crawford
4. 2020 Council Meeting Schedule – Councilmember Crawford
5. Misc. Councilmembers
6. Adjournment
CITY OF EAST WENATCHEE
271 9TH STREET NE • EAST WENATCHEE, WA 98802
PHONE (509) 884-9515 • FAX (509) 884-6233
11/27/2019 Council Meeting Workshop Agenda Packet
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Memorandum
To:
Mayor and City Council
From:
Tom Wachholder, Project Development Manager
Date:
November 20, 2019
Subject: Initiative Measure No. 976 and Transportation Benefit District Funding
Options
__________________________________________________________________________________
With the apparent approval of Initiative Measure No. 976 (I-976), vehicle license fees will no longer
be an option to fund Transportation Benefit Districts (TBD). I-976 is designed to do the following:
• Limit annual license fees for vehicles weighing under 10,000 pounds at $30 except voter-
approved charges;
• Base vehicle taxes on the Kelley Blue Book value rather than the manufacturer's suggested
retail price;
• Repeal local TBD vehicle license fees;
• Repeal the $150 fee on electric vehicles;
• Repeal authorization for certain regional transit authorities, such as Sound Transit, to impose
motor vehicle excise taxes; and
• Limit certain taxes and fees related to transportation.
I-976 reverses the 2012 City Council action that implemented a $20 car tab fee that supports the City
of East Wenatchee’s (City) pavement preservation program. In 2019, in total, the City will receive an
estimated $260,000 from TBD revenue. In 2020, the City would receive an estimated $266,000 in
TBD revenue. Exhibit A depicts TBD funded City pavement preservation projects that were completed
from 2014 to 2019 in addition to planned projects from 2020 to 2024.
Other Applicable TBD Funding Sources
The following section outlines other TBD funding sources including sales and use tax, general
obligation bonds, impact fees, vehicle tolls, property tax, and local improvement district. All of which
are applicable to the City. Non-applicable funding sources, for example, include border area fuel taxes,
which are only available to TBDs that include a Canadian border crossing.
CITY OF EAST WENATCHEE
PUBLIC WORKS DEPARTMENT
271 9TH STREET NE • EAST WENATCHEE, WA 98802
PHONE (509) 884-1829 • FAX (509) 886-6113
twachholder@east-wenatchee.com
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1. Sales and Use Tax
Again, I-976 impacts vehicle license fees leaving sales taxes as the primary revenue source. RCW
82.14.0455 and RCW 36.73040(3)(a) allow the use of up to 0.2% of sales and use tax to fund TBDs.
This option must be approved by a simple majority of voters. In addition, this taxing option is limited
to 10 years with the ability to place this same sales tax option back before voters for one additional 10-
year period. The exception to this time limitation is for the repayment of debt.
According to MRSC’s ballot measure database, the following Washington cities have TBDs funded by
the sales tax option, Covington and Gig Harbor do not as a result of failed ballot measures:
Anacortes
TBD sales tax (10 years, 0.2%), replacing existing $20 vehicle license fee.
November 2018 - Passed (59.59% / 40.41%)
Blaine
TBD sales tax (10 years, 0.2%) for transportation improvement program, including streets, sidewalks,
and trail improvements.
April 2017 - Passed (71.70% / 28.30%)
Connell (Eastern WA)
TBD sales tax (10 years, 0.2%).
November 2017 - Passed (64.84% / 35.16%)
Covington
TBD sales tax (10 years, 0.2%).
November 2018 - Failed (47.04% / 52.96%)
Gig Harbor
TBD sales tax (10 years, 0.2%).
November 2018 - Failed (49.28% / 50.72%)
Grand Coulee (Eastern WA)
TBD sales tax (10 years, 0.2%) for arterial resurfacing and adding non-motorized transportation
options.
February 2018 - Passed (72.78% / 27.22%)
Moses Lake (Eastern WA)
TBD sales tax (10 years, 0.2%).
November 2017 - Passed (52.67% / 47.33%)
Mount Vernon
TBD sales tax (10 years, 0.2%) for street preservation and improvements.
November 2016 - Passed (68.19% / 31.81%)
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Ocean Shores
TBD sales tax (10 years, 0.2%) for projects in Transportation Improvement Plan including pavement
preservation.
August 2018 - Passed (51.80% / 48.20%)
Sequim
TBD sales tax renewal (10 years, 0.2%) for transportation improvement projects, sidewalk and street
improvements, and model connectivity projects.
November 2018 - Passed (77.83% / 22.17%)
Shoreline
TBD sales tax (20 years, 0.2%) to repay indebtedness for sidewalk and pedestrian improvements.
November 2018 - Passed (52.17% / 47.83%)
If the City pursues the sales and use tax TBD funding option, contingent upon voter approval by
simple majority, the estimated annual revenue based on 2019 figures would be as follows:
• 0.1% of taxable sales = $410,000
• 0.2% of taxable sales = $820,000
If desired, a special election could take place to solicit voter approval to pursue the sales and use tax
option. For example, the following outlines a timeline for an April 2020 special election, including
associated costs, for pursuing a sales tax ballot measure to fund the City’s TBD:
• January 2020: Pass Resolution committing to a sales and use tax increase ballot measure;
• February 28, 2020: Last day to file ballot measure for the April 2020 special election;
• April 28, 2020: special election day; and
• Cost of special election: $40,000 - $70,000.
If this option is desired by both East Wenatchee and Wenatchee, it could be advantageous to
coordinate outreach efforts to increase effectiveness. Finally, election costs can be reduced by utilizing
a general election cycle rather than pursing a special election.
2. General Obligation Bonds
Per RCW 36.73.070, general obligation bonds can be used to fund capital street projects by way of a
TBD. Auburn, WA attempted to do so in 2012; however, the bond measure failed to receive enough
votes.
3. Impact Fees
Per RCW 36.73.120, a TBD may impose a fee or charge on the construction or reconstruction of
commercial buildings, industrial buildings, or on any other commercial or industrial building or
building space or appurtenance, or on the development, subdivision, classification, or reclassification
of land for commercial purposes. Any fee or charge imposed shall be exclusively for transportation
improvements and must be reasonably necessary as a result of the impact of development,
construction, or classification or reclassification of land on identified transportation needs.
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4. Vehicle Tolls
Per RCW 36.73.040(3)(d), TBDs have the authority to administer and impose vehicle tolls on City
streets in amounts sufficient to implement the TBD’s transportation improvement plan.
5. Excess Property Tax
Per RCW 36.73.060, TBDs have the option to levy an ad valorem property tax in excess of the one
percent limitation upon the property within the TBD for a one-year period whenever authorized by the
voters of the TBD.
6. Local Improvement District (LID)
Per RCW 36.73.080, TBDs may form a local improvement district (LID) to provide any transportation
improvement it has the authority to provide, impose special assessments on all property specially
benefited by the transportation improvements, and issue special assessment bonds or revenue bonds to
fund the costs of the transportation improvement.
Street Preservation Grant Opportunities
There are fewer grant opportunities for street preservation projects (e.g., pavement overlay; chip seal)
compared to reconstruction grant programs (e.g., adding sidewalks, street illumination, etc.). One
negative aspect of grant monies is tied to the fact that funding is not a guarantee. Street preservation
grants, such as the Transportation Improvement Board’s (TIB) Arterial Preservation Program, are
highly competitive and are limited in terms of available funding. Furthermore, these TIB grant funds,
much like most transportation related grants, are limited to federally classified streets (e.g., arterial,
collector); therefore, local access streets (e.g., residential streets) are not eligible to receive funding.
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In 2014, the City completed the following projects with TBD Revenue:
Project Name From To
Clemonts Cir 13th St NE 13th St NE
4th St NE N Colorado Ave Eastmont Ave
S Keller Ave 1st St SE 3rd St SE
2014 Cost $117,377
In 2016, the City completed the following projects with TBD revenue:
In 2017, the City completed the following projects with TBD revenue:
Project Name From To
S Houston Ave 1st Pl SE 4th St SE
S Iowa Ave 2nd St SE 4th St SE
2017 Cost $136,668.46
In 2018, the City completed the following projects with TBD revenue:
Project Name From To
S June Ave Grant Rd 1st St SE
1st St SE S Iowa Ave S June Ave
Tedford St SE S Iowa Ave S June Ave
S Iowa Ave 1st St SE 2nd St SE
4th St NE Eastmont Ave End
2018 TBD Construction Cost $162,855.00
2019 TBD Design Engineering $22,256.75
2018 Total TBD Cost $185,111.75
Project Name From To
9th St NE N Iowa Ave N Jennifer Ave
N Iowa Ave 8th St NE 10th St NE
N Grover Pl 10th St NE France St
2nd St NE Eastmont Ave Dead-End
Rolfs Ct Eastmont Ave Rolfs Pl
Rolfs Pl Eastmont Ave Rolfs Ct
Colby Ct 9th St NE Colorado Ave
Darwood Ave 6th St NE 5th St NE
2016 Cost $393,548.86
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In 2019, the City completed the following projects with TBD revenue:
Project Name From To
12th St NE Baker Ave Ashland Ave
Ashland Ave 12th St NE 13th St NE
Fairview Pl 10th St NE End
Gilbert Ct N Grover Pl End
2019 TBD Construction Cost $242,092.00
2019 TBD Engineering $29,956.14
Pavement Mgmt Plan Update $25,000.00
2019 Total Est TBD Cost $297,048.14
In 2020, the City is planning to complete the following projects with TBD revenue:
Project Name From To
Clemonts Cir 13th St NE 13th St NE
4th St NE N Colorado Ave Eastmont Ave
S Keller Ave 1st St SE 3rd St SE
2020 Total TBD Cost Estimate $374,400
In 2021, the City is planning to complete the following projects with TBD revenue:
Project Name From To
N Colorado Ave Colby Ct 3rd St NE
N Dayton Ave 6th St NE 5th St NE
2021 Total TBD Cost Estimate $286,624
In 2022, the City is planning to complete the following projects with TBD revenue:
Project Name From To
N Harrison Ct 10th St NE Jackson Ave
6th St NE N Colorado Ave Eastmont Ave
Hamilton Ave Standerfer Ave End
Standerfer Ave Hamilton Ave Valley Mall Pkwy
2022 Total TBD Cost Estimate $371,768
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In 2023, the City is planning to complete the following projects with TBD revenue:
Project Name From To
Parkroy Pl Loop S Iowa Ave S Houston Ave
2023 Total TBD Cost Estimate $245,670
In 2024, the City is planning to complete the following projects with TBD revenue:
Project Name From To
Green Pl Grant Rd End
S Georgia Ave Grant Rd End
S Gillmore Ave Grant Rd End
2024 Total TBD Cost Estimate $291,997
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Grant Rd
3rd St NE
5th St NESunset HwyEastmont AveSR 28N Baker Ave4th St SE
8th St NE
11th St
N
E
N Lyle AveSR 285 N James AveN Keller Ave19th St NE
15th St NE
N Grover Ave9th St N
E
Valley
Ma
l
l
Pkwy
3rd St SE N Kentucky AveHighline Dr10th St NE
Tedford St SE
12th St NE
N Iowa AveR
o
c
k
I
s
l
a
n
d
R
d S Mary AveN June AveGlen St NE
P
a
c
e
D
r
S Jarvis AveS Kentucky AveRiverv
iew DrN Kansas AveN Ashland AveSimon St N Jennifer Ln1st St SE
Briarwood Ter
Holly Ln4th St NE
Dale St SEN Jackson Ave7th St N
E
S Houston Ave2nd St SE
Soden St SE
S Iowa Ave2nd St
N
E Bri
a
rw
o
o
d
D
r
13th St NE
Kenroy TerN A
lv
in
C
t
Bel Air Dr
19th St NW
1st Pl SEN Grover PlN Mary AveN Aurora AveN Gale PlKing Pl
14th St NE
Ridgemont DrN Anne AveFairmont Ave10th Pl NEHarrington LnSki View Dr
20th St N
E
N Minor AveManhatta
n
Dr
Hill
s
i
d
e
D
r
N Lander Ct6th St N
E
12th Pl NE
S Lee CtAmy Ct
N Gale AveS M
a
r
y
L
n
Terrace Dr
N Hale AveLinden Pl Stanfield Ln2nd St NE
N Kansas Ave1st St SE
2nd St SE
19th St NE
10th St NE
N Iowa Ave5th St NE
This map is intended for general purposes only. The City of
East Wenatchee makes no representation as to the accuracy
or current condition of the data shown on this map.
2014 - 2019 CompletedTBD Preservation Projects.
0 0.5 10.25 MilesOverlay Year
2014
2016
2017
2018
2019
City Limit
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Grant Rd
3rd St NE
5th St NESunset HwyEastmont AveSR 28N Baker Ave4th St SE
8th St NE
11th St
N
E
N Lyle AveSR 285 N James AveN Keller Ave19th St NE
15th St NE
N Grover Ave9th St N
E
Valley
Ma
l
l
Pkwy
3rd St SE N Kentucky AveHighline Dr10th St NE
Tedford St SE
12th St NE
N Iowa AveR
o
c
k
I
s
l
a
n
d
R
d S Mary AveN June AveGlen St NE
P
a
c
e
D
r
S Jarvis AveS Kentucky AveRiverv
iew DrN Kansas AveN Ashland AveSimon St N Jennifer Ln1st St SE
Briarwood Ter
Holly Ln4th St NE
Dale St SEN Jackson Ave7th St N
E
S Houston Ave2nd St SE
Soden St SE
S Iowa Ave2nd St
N
E Bri
a
rw
o
o
d
D
r
13th St NE
Kenroy TerN A
lv
in
C
t
Bel Air Dr
19th St NW
1st Pl SEN Grover PlN Mary AveN Aurora AveN Gale PlKing Pl
14th St NE
Ridgemont DrN Anne AveFairmont Ave10th Pl NEHarrington LnSki View Dr
20th St N
E
N Minor AveManhatta
n
Dr
Hill
s
i
d
e
D
r
N Lander Ct6th St N
E
12th Pl NE
S Lee CtAmy Ct
N Gale AveS M
a
r
y
L
n
Terrace Dr
N Hale AveLinden Pl Stanfield Ln2nd St NE
N Kansas Ave1st St SE
2nd St SE
19th St NE
10th St NE
N Iowa Ave5th St NE
This map is intended for general purposes only. The City of
East Wenatchee makes no representation as to the accuracy
or current condition of the data shown on this map.
2020 - 2024 PlannedTBD Preservation Projects.
0 0.5 10.25 MilesOverlay Year
2020
2021
2022
2023
2024
City Limit
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