Infrastructure, Transportation & Economic Development

Work Session on City Transportation

On February 5, both the House and Senate Transportation Committees will hold work sessions on transportation issues for cities, counties and transit agencies. AWC staff and Daryl Grigsby, Public Works Director for the City of Kirkland, will provide an overview of how cities fund and manage their transportation network.

AWC Priority
Transportation Benefit Districts (TBD) (HB 1858/SB 5767)

As introduced, this bill would:

• Allow councilmanic authority to impose the first $20 of the maximum $100 Vehicle License Fee if a TBD is jurisdiction-wide; and
• Allow councilmanic impact fees if a TBD is jurisdiction-wide, including provisions prohibiting a district and a city from imposing the same fee (no double dipping).

Accountability measures are in place as well. Any TBD must have an identified plan (project list) or program affiliated with the use of the funds. In addition, the plan or program must also be adopted within a regional transportation planning organization plan. If enacted, this bill will provide cities with the opportunity to reinstate transportation funds lost due to I-776.

Please click here for more information on Transportation Benefit Districts and your projected losses due to I-776. If a city wishes to estimate potential revenues, assume that there are approximately the same number of vehicles as city residents. Older, more densely populated cities have approximately .8 vehicles per city resident.

HB 1858 is scheduled for public hearing in the House Transportation Committee on February 5 at 3:30 pm.

AWC Priority
Local Infrastructure Financing Tool (LIFT) (SB 5115/HB 1277)

The House version of this bill will be heard in the Community and Economic Development and Trade Committee on February 7 at 8 am. This bill would:

• Increase the competitive portion from $2.5 million to $5.0 million;
• Repeal the one-per-county prohibition on using this authority;
• Eliminate an assessed value per square foot requirement; and
• Provide several technical changes that will make the authority more flexible.

AWC Priority
Funding for Jobs, Economic Development, and Local Capital Projects (SB 5762)

This bill will be heard in the Senate Economic Development, Trade and Management Committee on February 7 at 3:30 pm. Effective, July 1, 2009, the bill would:

• Eliminate the $50 million Public Works Trust Fund Diversion to the Job Development Fund in 2009-2011;
• Provide ongoing funding for the Community Economic Revitalization Board (CERB) at $50 million/biennium;
• Replace the current laundry list of private investment (industries) eligible for CERB assistance with recommendations by the State Economic Development Commission;
• Add as part of the CERB prioritization process that jobs must pay at least the county-wide hourly wage or offer health insurance to employees and identify if investments accomplish projected population and employment growth or other GMA requirements; and
• Eliminate the Job Development Fund program.

The funding source is 3.3% of the state Real Estate Excise Tax (REET), beginning July 1, 2009. In addition, effective this biennium, the bill would harmonize the 1^st and 2nd Quarter REET for cities and counties.

AWC Priority
Changing Alternative Public Works Provisions (HB 1506)

This bill will be heard in the House State Government and Tribal Affairs Committee as this Bulletin goes to print. It is scheduled to pass out of Committee on February 6 with some amendments. This is the renewal and modification of the current General Contractor-Construction Manager (GC-CM) and Design Build (DB) public works authority. The introduced bill that is on the legislative website should be considered a work in progress. The following table outlines some specifics of a proposed substitute (which is not yet available).

AWC will testify in general support of the bill, but will seek to make bridge structures that are under $10 million in cost eligible to use the Design Build authority.

Clarifying the Definition of Development Activity in Respect to Construction by a Regional Transit Authority (HB 1493/SB 5148)

This bill would exempt Sound Transit from impact fees. SEPA mitigation would still remain in effect. The House version is scheduled for public hearing on February 5 at 3:30 pm, while the Senate version will be heard on February 6 at 3:30 pm.

City Hardship Assistance Program Funds for Street Maintenance (HB 1482/SB 5483)

This legislation would change the use of unexpended funds from the City Hardship Assistance Program (CHAP). Current law requires any remaining amounts in the account to be distributed back to all cities based on population. Cities do not anticipate this revenue due to the fact that it is an extremely unpredictable source and a relatively small amount of money. This bill would redirect the unexpended funds to the Small City Pavement Program and would fund approximately eight new small city projects per biennium.

Both bills will be heard in their respective Transportation Committees on February 5 at 3:30 pm.

Modifying the Administration of Fuel Taxes (HB 1426/SB 5272)

This is commonly known as the Tribal Fuel Tax bill. SB 5272 was previously heard in the Senate and HB 1426 will be heard on February 7 in the House Transportation Committee at 3:30 pm. AWC will sign in to support the bill but also seek clarification on the proposed compacting language in the bill. Specifically, AWC will request a mechanism be put in place to allow cities to be involved (or at least notified) of a proposed compact, as well as seek to retain the city share of any proposed gas tax redistribution.

Addressing Transportation Concurrency Under the Growth Management Act (GMA) (SB 5210)

This bill requires jurisdictions planning under GMA to prohibit approval of new development if it causes the level of service on state-owned transportation facilities to fall below congestion standards adopted by the state or by a regional transportation planning organization, unless transportation improvements or strategies to accommodate the impacts are made concurrent with the development.

AWC testified with concerns on this bill last year and will raise similar concerns again. It is scheduled for public hearing in the Senate Transportation Committee on February 6 at 3:30 pm. What is different this year is that two transportation concurrency studies have recently been completed; this bill may simply be a bill title and subject to amendments once a report on the studies is provided to the Committee.

Addressing Transportation Concurrency and Impact Fees Under the Growth Management Act (GMA) (HB 1753)

Scheduled for hearing in the Local Government Committee on February 8 at 8 am, this bill would prohibit local jurisdictions that impose transportation impact fees from denying development approvals based on failure to achieve applicable level of service standards adopted in the transportation element of the comprehensive plan. Several cities have already contacted AWC with concerns on this bill.

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