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07/21/2003 - Report Monthly Report July 2003 for Transportation Financing Strategies Task Force 1. Meetings were held on: • July 21, 2003. 2. Current activities: • Review report prepared by staff regarding the OGA proposal submitted at the June 19, 2003 Task Force meeting. 3. Status of long-term projects: • Task force will recommend implementation of the Street Maintenance Fee using the OGA proposal with modifications to City Council on August 12, 2003. 4. Number of volunteer hours contributed this month. • Bev Froude, Paul Owens, Joe Schweitz, Cam Gilmour, Craig Dirksen From 6:30—8:00 PM—5 x 1.5 =7.5 hours 5. Attachments: • Agenda • Minutes • Report on Oregon Grocery Association Proposal • Sign in sheet from meeting • web site www.ci.tigard.or.us to see posted information 6. Any items to be scheduled for on the Council tentative agenda: • Task Force presentation to City Council scheduled for August 12, 2003 7. Status of members—are there any members scheduled to have their terms expire in the next four months? Are any members indicating that they plan to retire,move or resign soon? Please give details. Members of this task force feel this specific task is completed. The Task Force will be reconstituted during the next few months. The reconstituted Task Force will evaluate potential new revenue sources for street improvements. i1eng\dianejtrneetingsVnonthly report Conn-tfstf-july 2003.doc City of Tigard Transportation Financing Strategies Task Force Bev Froude Paul Owen Joe Schweitz Glenn Mores Cam Gilmour Councilor Brian Moore Councilor Craig Dirksen Steve Clark MEETING July 21 , 2003 Thursday - 6:30 — 8:00 PM at Tigard City Hall Town Hall - 13125 SW Hall Blvd. Agenda Items 1. Approve Minutes of June 19, 2003 Meeting 2. Review Results - Oregon Grocery Association Proposal 3. Discussion of the Proposal and Potential Issues 4. Staff Recommendation 5. Task Force Discussion and Consensus (if one can be reached) 6. Develop Task Force Recommendation to Council(Tentatively set for August 12,2003 7. Determine if another meeting is needed 8. Adjournment ilengld1anejlmee6ngsX9genda for ffsff-6.7903.doc Minutes Transportation Financing Strategies Task Force Monday, July 21 , 2003 6:30 — 8:00 PM held at Tigard City Hall Town Hall 13125 SW Hall Blvd. Present: Bev Froude, Paul Owen, Joe Schweitz, Craig Dirksen, and Cam Gilmour. Absent: Glenn Mores, Councilor Moore resigned. Staff: City Engineer Agustin Duenas and Senior Administrative Specialist Diane Jelderks Guest: Gene McAdams (Resident), Robert A. Pierce, Joe Gilliam (OGA), Jack Reardon (Washington Square), Dan Murphy (Chamber of Commerce) John Skourtes (Warehouse owner), Dan Floyd (OGA). Councilor Sydney Sherwood Items Distributed at meeting ■ Report on Oregon Grocery Association Proposal ■ Letter from Robert A. Pierce &Associates ■ Letter from G.E. McAdams ■ Article in Tigard Times. Meeting called to order 6:35 PM by Chairperson Bev Froude. Approval of minutes —N/A 1. Review proposed Street Maintenance Fee by OGA City Engineer reviewed the report submitted on the Oregon Grocery Association Proposal. Question, would program have an ending date? Five years is how far projections are made to determine how much money will be needed. Question, is fee to be extended beyond the five years? Program will be evaluated every three years. Program will continue unless replaced by some other funding method. Staff recommends using the parking spaces method for calculating fee as proposed by the OGA. Residential uses— multi-family one parking space for one unit is being proposed. City staff participated in a meeting with OGA and Mr. McAdams attended. Determined best direction is to develop a three year history. Additional maintenance funding which may come from the state designated strictly for maintenance would be credited to the program and fee would be re-evaluated. Transportation Financing Strategies Task Force Meeting Minutes—July 21,2003 Page 1 of 3 OGA supported staff's presentation. Skourtes —with gas tax revenue — how do you determine which projects will be constructed by which monies. — Five year plan - three sources of money—TIF, Gas Tax, and Street Maintenance Fee. Proposed Street Maintenance Fee will be used only for street maintenance — Existing revenue sources will be used for capital improvements. Adding capacity will paid for by TIF funding on collector or arterial Streets - Gas Tax is used for routine maintenance — Street crews etc. Street Maintenance Fee will be used for overlaying not for expanding. Gene McAdams wanted to know if digging up and reconstructing a street is considered maintenance. He noted that past practice has been that streets are improved to city standards. Street that were improved to City standards were improved with bond money. Street Maintenance Fee will pay for reconstruction of existing pavement; it will not pay for new public improvements such as sidewalk, storm drain, and sanitary sewer. Discussed how rate will be adjusted between three and five years and using state money to offset fee. Task Force Member Cam Gilmour— regarding House Bill — money won't go very far— not a good idea to offset every bit of money you receive. Not a lot of overhead for Street Maintenance Fee program — State Gas Tax dollars purchasing power decreases each year. Discussion followed —set first rate on $800,000 - overhead not being charged to this fund — no inter fund transfers — i.e. transferring SMF money to Street Department to cover cost. Gas Tax Fund is mostly transferred out of the budget to capital outlay and various department's overhead. There is nothing in the material presented to prevent these transfers from happening. Concerned that higher priority will take money from SMF fund to pay for other services beside maintenance on streets. Lengthy discussion on inter fund transfers. Gen McAdams wanted assurance that the entire $800,000 will go to streets and not to pay overhead i.e. lights, vehicles, etc. — Decision will be made by City Council. Discussion of Proposal Council Dirksen - Front page of Gene McAdams submittal — 7-11 trip — Does not account for turnover— Discussion —this an important point— does it make a difference. Discussed smaller business and their impacts and how they should be charged. John Skourtes — Street Maintenance Fee is a political issue and questions is will anyone oppose charge of$2.00. Discussion continued. Suggestion was made to place signs on projects — sign saying this street is being repaired by Street Maintenance Fee dollars. Transportation Financing Strategies Task Force Meeting Minutes—July 21,2003 Page 2 of 3 Jack Reardon —Asked how individual units would be charged — Individual units don't make utility payments to City. Discussed how they will bill individuals who have meter—owner of meter would pass on fee to tenants. Councilor Sherwood - Bob Pierce letter— asked if space is vacant— if no one on the meter then no will be charged. Coordinate with Property Owner/Management Company to pay fee. What if someone wants to appeal the fee, has process been set up? Need to outline an appeals process. Gene McAdams —Asked for justification why method of calculating is being changed from ITE manual to parking spaces. Discussion followed regarding the difference between using the ITE manual and the parking space method proposed by OGA. OGA has refined method for calculating fee — parking spaces are based on who is actually using the roads. STAFF RECOMMENDATION Task force recommendation - report will be presented at the August 12th City Council hearing — recommendation is to implement in January 2004 to cover projects needed for FY2004-2005. Cam Gilmour moved and Joe Schweitz seconded to accept staff report and forward to City Council recommending implementation of the Street Maintenance Fee. Passed unanimously by members present. Gene McAdams stated he is not opposed to the fee if it is managed appropriately. Streetlight portion is not being recommended at this time—will discuss at City Council. Recommendation from task force is just for Street Maintenance Fee. OGA— has been working with different cities and the City of Tigard has been the most cooperative —willing to get something done. Bev Froude, Chairperson — Committee has stuck together— making changes as we moved along —thanks to all for taking the challenge, stepping up to the plate, to come up with another solution. Thanks to everyone who has come to participate in the process. Meeting adjourned 8:00 Submitted by: Diane M. Jelderks Senior Administrative Specialist Engineering Department iAengklianel1-eetingsVninutes july 21 2003.doci:%engtdianellmeetingsVninutes jury 21 2003AM Transportation Financing Strategies Task Force Meeting Minutes—July 21,2003 Page 3 of 3 Transportation Financing Strategies Task Force Report on Oregon Grocery Association Proposal The Oregon Grocery Association Proposal At the Task force meeting on June 19, 2003, the Oregon Grocery Association submitted an alternative proposal for a Street Maintenance Fee. The main concepts in the proposal are as follows: • Ties the street maintenance element of the fee to a 5-year maintenance and reconstruction plan prepared by the City of Tigard ■ Uses actual road repair projects ■ Tailors the fee to the local data ■ Arterial projects would be allocated to the non-residential uses ■ Collectors would be split on a 50-50 basis with residential and non- residential uses sharing the costs ■ Neighborhood routes and local streets would be allocated to residential uses ■ Allocates the non-residential costs based on parking spaces using 5 spaces as a minimum and 200 spaces as a maximum • Expands and contracts with the need on a yearly basis • Takes into account businesses that draw from a larger area than just Tigard • Addresses the lighting issue in a separate formula that results in a flat rate for each billing unit in the City City Review and Adjustments City staff and the City Attorney's office have reviewed the proposal and find it reasonable and workable, but suggest the following adjustments: • Set a target revenue goal of$800,000. The original breakdown for the long-term plan set aside a reserve of approximately$100,000 to cover reconstruction costs as certain streets need that level of maintenance. If reconstruction is to be done as part of the 5-year plan, the amount of$800,000 should provide sufficient revenue to address those streets as they become due in the plan. • Set the rate for the first three years based on a 5-year average of the projects to be implemented.Review after three years and set the rate at that time based on a 5- year plan that adds three more years to the program. • Dedicate the amounts collected strictly to projects with no City overhead, administrative, or engineering costs factored in.Those essential activities and corresponding costs can be covered by gas tax revenues so that the fee amounts can be devoted strictly to the preventative and corrective maintenance work. Report to Task Force on OGA Proposal Page 1 of 3 • Use the parking space recommendation by OGA, use the minimum spaces based on the Tigard Development Code for non-residential uses, and keep the 5-space minimum and 200-space maximum. Allocate the costs for residential uses on a per unit basis for both single family and multifamily units. • City staff concurs with the other recommendations by OGA Other Considerations The 5-year maintenance plan is based on information that is several years old. The City will need to update that information to remove those projects that are already.completed and bring in additional projects based on updated data and observation. The original 5- year plan was not altered during the past two years so that the list could be kept constant. OGA suggested the following in a subsequent meeting with City staff: • That any underruns in the projects be carried forth as credit for the next fiscal year. Staff's adjustment to that is that the underruns could be carried for the first three years and then credited as part of the adjustment in the evaluation of the fee at the end of the three-year period. The fee for the next three-year period would include an adjustment for any carryover funds resulting from surplus funds once the projects are completed. • That maintenance funding received as a result of HB 2041 (the huge transportation funding package which has passed the Senate, but has been referred back to the House because of amendments made)be credited to the program. To the extent that the funding is allocated strictly for maintenance, City staff does not have any problems with it.However,it remains to be seen just how the funding is described in the legislation that is actually passed into law, and whether or not that aspect of the legislation actually makes it through the legislative process. City staff has met with OGA since the meeting on June 19, 2003 and believes OGA does not have any objections to the adjustments proposed. This meeting will provide an opportunity for a discussion of the proposal and proposed adjustments, and to answer any questions that the Task Force members or other interested parties may have regarding the proposal. Staff Recommendation Staff recommends that the Task Force approve the proposal with adjustments for presentation to City Council at the August 12, 2003 meeting. The drafting of the ordinance, the updating of the 5-year plan, and the calculations will all have to follow action by City Council. We anticipate that work will take several months. The ordinance and resolution to set the fees could be brought back to Council within two to three months after positive direction is given. However, actual implementation would probably not take place until January 2004 at the earliest. The incorporation into the budget and Report to Task Force on OGA Proposal Page 2 of 3 implementation of the projects would most likely not commence until July 1, 2004, the beginning of FY 2004-05. Attachment • Calculations of payments to be made by residential and non-residential uses based on the OGA proposal with adjustments recommended by City staff. The non- residential uses do not include most of the schools and some other land uses which need to be obtained later.The addition of those uses missing at this time should reduce the costs to non-residential uses slightly. The current ratio (residential to non-residential)using the projects that are on the 5-year plan but adjusted to produce$800,000 worth of projects each year is approximately 58% residential,42% non-residential. Report to Task Force on OGA Proposal Page 3 of 3 5 Year Project 2003 2004 2005 2006 2007 Total Single/Multi Owner $476,664.57 $324,050.75 $498,470.47 $239,323.61 $418,372.41 $1,956,881.81 57.74% Business $158,990.57 $375,684.66 $215,997.63 $403,082.03 $278,380.05 $1,432,134.94 42.26% $3,389,016.75 $4,000,000.00 $610,983.25 Single/Multi Owner $464,000.00 $464,000.00 $464,000.00 $464,000.00 $464,000.00 Business $336,000.00 $336,000.00 $336,000.00 $336,000.00 $336,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 $800,000.00 Yearly Cost Monthly Cost Spaces Space Total Cost Split per Space per Space Single/Multi Owner 10,422/7,106 17,523 $464,000.00 $26.48 $2.21 58.0% Business 34,080 341080 $336,000.00 $9.86 $0.82 42.0% Est. Addition 35,000 $336,000.00 $9.60 $0.80 Note: Does not include Church Spaces and Schools are Estimated. Parks are not broken up. Price per space for business will drop. l SIGN IN SHEET Street Maintenance (File No. 0452) Meeting Held at: Tigard City Hall — Town Hall 13125 SW Hall Blvd on Monday, July 21 2003 NAME COMPANY ADDRESS CITY/STATE/ZIP PHONE & EMAIL Phone: II '; Fax: — Email 2. Phone: Fax: --------- WEmail 3. Phone: n Fax: per/ --- ---- Email 4 Phone: Fax: -- l. Email 5. Phone: 0 wN Fax Email: 6e Phone: Fax (V( ' documenVdodumenV ---'— Email: SIGN IN SHEET Street Maintenance (File No. 0452) Meeting Held at: Tigard Citv Hall — Town Hall 13125 SW Hall Blvd on Monday, July 21 2003 NAME COMPANY ADDRESS CITY/STATE/ZIP PHONE & EMAIL 1. Phone: Fax: Email 2. Phone: Fax: Email 3. Phone: Fax: Email 4. Phone: Fax: Email 5. Phone: Fax Email: 6. Phone: Fax documenl7documen—a Email: SIGN IN SHEET Street Maintenance (File No. 0452) Meeting Held at: Tigard City Hall — Town Hall, 13125 SW Hall Blvd. on Monday, July 21, 2003 NAME COMPANY ADDRESS CITY/STATE/ZIP PHONE & EMAIL Phone: 1. r Fax: 1,,264'57' ,,264's S�✓/� �tl( /1 Email Phone: 2. Fax: e n (C/ Email Phone: 3. Fax: Email Phone: 4. Fax: Email Phone: 5. Fax Email: Phone: 6. Fax Email: oocumem7oocumenO ---