DATE
2/24/09
AGENDA ITEM
2
TRANSPORTATION BENEFIT DISTRICT BOARDOlympia, WashingtonFebruary 24, 2009
Meeting of the Olympia TBD Board to Evaluate Projects and Set Rates for 2009
Craig Ottavelli, PresidentJoe Hyer, Vice President
STAFF CONTACT:
360.753.8499
ORIGINATED BY:
Transportation Benefit District Board
OTHERS NOTIFIED:
N/A
ATTACHMENTS:
Responses to Board questions
1.
Inflation of Projects Costs for Harrison Avenue/Mud Bay Road 500-foot Extension and the Boulevard Road and Log Cabin RoadRoundabout.2.
Email Responses to Councilmembers Machlis and MessmerRegarding Status of the Pavement Management Program.
BUDGET IMPACT/ SOURCE OF FUNDS:
The budget impact of implementing a Transportation Benefit District isdependent on how the district is established and the project(s) fundedwith the revenue. A budget outlining estimated expenses has beenincluded for discussion.
PRIOR BOARD REVIEW:
N/A
BACKGROUND:
In December 2008, the Olympia City Council adopted an ordinancecreating the Olympia Transportation Benefit District. Before establishing afee and project(s) to be funded by the TBD the Board asked severalquestions at the February 10, 2009 board meeting
Analysis and
A proposed budget for the 2009 TBD would include:
Options:
Insurance $5,000Audit 5,000Outside counsel 5,000Admin Support 25,000$40,000
Staff is proposing a contract with the City of Olympia to provide theAdministrative support (prepare agendas, minutes, refunds, publicrecords requests and answer questions about the TBD). Staff would bereimbursed by the TBD for actual expenses later in the year.Other concerns/issues raised about establishing the district:
What is the cost of the 500 foot unfunded gap on Harrison/Mud BayRoad?
The planning level cost estimate for this project is $1,489,765.
What are the anticipated costs if the project were delayed 1 to 5 years?
Attachment 1 provides projected costs if the 500 foot unfundedgap on Harrison/Mud Bay Road is delayed from 1 to 5 years.
What is the current cost for the Log Cabin Roundabout and whatwould the anticipated cost be if the project were delayed 1 to 5 years?
The planning level cost estimate for this project is $8,565,500. Of this amount, the City has $1,600,600 available for this project and iscurrently being used to complete design and purchase ROW. Anadditional
$6,964,900
is needed for construction. Attachment 1 providesprojected costs if the Boulevard Road and Log Cabin Road Roundaboutare delayed from 1 to 5 years.
What is the current status of our pavement management program?What happens to this program is we delay funding this program for2 to 3 years?
Attachment 2 is email responses to CouncilmembersMachlis and Messmer concerning the status of the PavementManagement Program.
What are we currently spending gas tax revenues on? And howmuch do we receive?
The City receives approximately $1 million/year onMotor Vehicle Fuel Tax (aka gas tax). Motor Vehicle Fuel Tax is a StateShared Revenue imposed on each gallon of gas sold and is distributedbased on population. The City of Olympia uses fuel tax for the operatingand capital budget (both for street maintenance). In 2005, the StateLegislature changed the law eliminating the requirement to dedicate aportion of the funds to arterial streets. Fuel tax can now be used for anystreet purpose. The 2009 Capital budget includes $275000 (the historicamount) for capital street projects. The remaining $775,000 is used tosupport the General Fund street maintenance.
What are the pros and cons of capitalizing the TBD revenue stream?
Legally the Board may issue revenue debt with the car tab fees collected.The TBD could issue general obligation debt with voter approved salestax debt (currently limited to a 10 year pay back). From a practical standpoint it would be difficult to issue revenue debt with the car tab feesnow. Revenue debt is always harder (greater risk) to sell than generalobligation debt. There is no experience with this revenue (history of
Page 2 of 5
collection) and Olympia is one of the first cities to implement. There isstill a risk of a state wide initiative to eliminate the legislation or a lawsuit. Currently there is not a big demand in the market for revenue debt.For these reasons it would be difficult and expensive to capitalize therevenue stream.
ACTION(S) TO BETAKEN: SET THE FEE AMOUNT
Without a vote of the people, the revenue option available to the Boardis a fee of up to $20 per vehicle. The Board does not have to charge thefull $20. You may charge $10, $15 or an amount up to $20 per vehicle peryear. (In the future, if the City of Olympia ceases to use transportationimpact fees, the TBD could implement transportation impact fees oncommercial and industrial projects without a vote of the people.)Revenue rates, once imposed, may not be increased without voterapproval. Using information from the Thurston Regional Planning Council(TRPC) the TBD would generate approximately $634,500 per year from aTBD with a $20/vehicle fee (assuming 20,209 households and an averageof 1.57 vhh). Staff is estimating the District will receive 3 months of payments for the calendar year 2009 (approximately $150,000).Revenue rates, once imposed, may not be increased without voterapproval. Using information from the Thurston Regional Planning Council(TRPC) the TBD would generate approximately $634,500 per year from aTBD with a $20/vehicle fee (assuming 20,209 households and an averageof 1.57 vhh). Staff is estimating the District will receive 3 months of payments for the calendar year 2009 (approximately $150,000).There is no time limit on when the funds must be spent. Typically, fundsthat are collected for a specified period before being expended are usedto fully fund large projects or serve as a match for state or federal funds.The public hearing on the use of the funds must estimate when the fundswill be spent.If projects costs exceed original costs by more than 20% a public hearingmust be held to solicit public comment regarding how the cost changeshould be resolved. The TBD must issue an annual report to include thestatus of project costs, revenues, expenditures and constructionschedules. And, a TBD must be dissolved upon completion of theproject(s) or payment of debt service. The board may create a new TBDfollowing the completion of a TBD with the appropriate noticerequirements.
Implications:
•
There is the same amount of administrative expenses for theDistrict regardless of the fee amount.
•
If the fee amount is less than $20/vehicle it would take voterapproval to change.
Page 3 of 5
Search History:
Result 00 of 00
00 results for result for
p.
More From This User
Notes
Load more
