BILL REQ. #: H-0213.3
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/10/11. Referred to Committee on Transportation.
AN ACT Relating to the regulation and preservation of urban streets through a local option street maintenance utility and allowing the imposition of a charge; amending RCW 82.80.070; adding a new chapter to Title 35 RCW; repealing RCW 82.80.040, 82.80.050, and 82.80.060; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1
(1) The maintenance, operation, and preservation of the streets and
the provision of street maintenance utility service in urban areas is
essential for the safety, protection, and convenience of residents,
businesses, and governmental entities receiving the service.
Inadequate and poorly maintained streets and poor street maintenance
utility service adversely affect the health, safety, welfare, and
property of residents and businesses located in these areas. Harmful
impacts include traffic congestion, decreased vehicle fuel efficiency,
and a consequent severe adverse impact on air quality. Further adverse
impacts include vehicle damage, increased accident frequency, more
serious accidents, and decreased access to needed services and
businesses.
(2) Residents and businesses in areas with poorly maintained
streets and poor street maintenance utility service experience
decreased access to service and delivery vehicle support, including
decreased access to public transportation and taxi service, the
delivery of goods and services, and slower response times for fire,
police, and emergency medical vehicle services.
(3) Poor street maintenance utility service in urban areas
accelerates deterioration of private vehicles, increases traffic
volumes, and exacerbates peak flow traffic problems for the residents
and businesses in affected areas. Furthermore, it is also the intent
of the legislature to provide credits for demonstrable reductions in
automobile traffic in order to provide incentives to make better land
use decisions and to encourage behaviors that reduce needless wear on
our transportation infrastructures.
(4) The benefits for city residents and businesses in areas with
well-constructed and maintained streets and good street maintenance
utility service include improved air quality, fuel efficiency, travel
speed, travel safety, reduction of damage and deterioration of
vehicles, lower insurance rates, and better public transportation,
fire, police, and emergency medical vehicle response times.
(5) Access to and use of the street system and street maintenance
utility service is necessary to support the use of all developed real
property.
(6) Maintenance, repair, and preservation of the streets and other
street maintenance utility service in urban areas has traditionally
been funded by general taxes without regard to the burdens placed upon
streets by different classes of users or the respective benefits
derived by them.
(7) Objective means are available to assess pavement conditions to
identify distressed areas of urban streets.
(8) Objective measures are available to assess the relative burdens
placed upon streets and street maintenance utility service users in
urban areas by different classes of users and the respective benefits
derived by them.
(9) Maintenance and preservation of streets and street maintenance
utility service in urban areas should be funded by rates charged to
users of the streets consistent with the burden placed on the streets
by various classes of users and the respective benefits derived by them
as maintenance utility supported users of the street system.
(10) A street maintenance utility provides a more equitable and
efficient means to monitor, regulate, and maintain the streets and to
provide street maintenance utility service than general tax funding.
(11) Since 1980, vehicle registration has increased by sixty
percent and vehicle miles traveled on municipal streets have increased
far in excess of the rate of population growth.
(12) Pavement surfaces in urban areas are subjected to much heavier
use and have much higher maintenance needs than pavement in rural
areas. When pavement is not properly maintained, the pavement
deterioration process, amount of work to restore the pavement, and
costs of restoration all accelerate exponentially. This creates a
downward spiral of increasing pavement deterioration and higher costs
to remediate the problem.
(13) The institute of transportation engineers is an international
educational and scientific professional association. It has developed
reports, which fairly measure the relative benefits of streets to
different classes of property use. The institute of transportation
engineers report is a nationally recognized and accredited manual that
provides a reasonable basis to apportion a part of the costs of street
maintenance utility service.
(14) A street maintenance utility created and governed by the
legislative authority of a city consistent with the requirements of
this chapter provides an appropriate and efficient means to monitor,
regulate, and maintain public streets.
(15) The preservation of streets through a maintenance utility
service program will directly serve and benefit those who pay street
maintenance utility rates by allocating street maintenance utility
revenues to those who perform maintenance within the street maintenance
utility service area.
(16) The purpose of this chapter is to authorize the creation of a
street maintenance utility by cities to serve the residents,
businesses, governmental entities, and all other like users in street
maintenance utility service areas through the preservation and
maintenance of streets for areas with an identified street maintenance
utility service. In order to reflect the relative burdens placed upon
the streets by different classes of users, street maintenance utility
rates are determined in proportion to the levels of use of different
classes of residents, businesses, governmental entities, and all other
like users who depend upon access to and use of the street system.
NEW SECTION. Sec. 2
(1) "City" means an incorporated city or town.
(2) "Independent examiner" means an official appointed by a
majority vote of the legislative authority of the city and who is not
subject to discharge except for misfeasance or malfeasance in office.
The independent examiner considers ratepayer appeals of street
maintenance utility matters arising under section 6 of this act.
Alternatively, for cities with an administrative hearings examiner
system, independent examiner duties may be assigned to the hearings
examiner.
(3) "Maintenance" means maintaining or preserving existing public
street facilities, including meeting adopted municipal street
standards.
(4) "Sound engineering principles" means principles or practices
reasonably accepted within the civil engineering or traffic engineering
profession, including, but not limited to, the department of
transportation extended method in determining paving distress ratings,
the department of transportation pavement distress manual, the
department of transportation local agency pavement management guide,
materials developed by the institute of transportation engineers,
including manuals or materials differentiating types of property uses
and correlating property use and the expected number of annual motor
vehicle and pedestrian trips generated by these uses, and other
studies, manuals, or materials that are reliable and based on
engineering practices as may be developed by professional engineering
staff or consultants according to generally accepted professional
standards.
(5) "Street" means a city's public right-of-way within the
boundaries of areas used for motor vehicle, bicycle, or pedestrian
traffic. "Street" includes bridges, gutters, curbs, and sidewalks.
(6) "Street maintenance utility" means a citywide utility service
offered by a city to provide street maintenance services in accordance
with this chapter. Street maintenance utility activities may further
be identified by ordinance consistent with this chapter.
(7) "Street maintenance utility rates" means street maintenance
utility user charges authorized under this chapter for street
maintenance utility services.
(8) "Street maintenance utility service" means actions by a city
established street maintenance utility to own, manage, operate,
maintain, and preserve to adopted municipal standards all or any
described portion of its existing streets and other existing
transportation systems. Street maintenance utility services may also
include (a) repayment of revenue or general obligation bonds repayable
from charges listed in section 5 of this act issued in accordance with
chapter 35.41, 35.92, or 39.46 RCW, or (b) other evidences of
indebtedness issued to pay costs for which street maintenance utility
service revenues may be used.
(9) "Street maintenance utility service area" means a citywide
area, excluding private streets, in which street maintenance utility
services are provided and street maintenance utility rates are charged,
as established under this chapter.
NEW SECTION. Sec. 3
(2) The legislative authority of the city is the governing body of
the street maintenance utility. The legislative authority of the city
may not assess a street maintenance utility user rate outside its
jurisdictional limits.
NEW SECTION. Sec. 4
(2) At the hearing, the city's legislative authority shall review
the proposal and consider comments from any interested party and may
modify the proposal in response to those comments, as well as any
information, opinion polls, or other material relevant to the question
presented. The hearing may be continued if necessary.
(3) Upon the conclusion of the hearing, the city's legislative
authority may submit an authorizing proposition to the voters creating
a street maintenance utility, together with the intended street
maintenance utility rates to support the maintenance utility, which
must be supported by an evidentiary record with findings in accordance
with this section and consistent with the findings and purposes of this
chapter.
(4)(a) The street maintenance utility ordinance must include:
(i) A finding that the creation of a street maintenance utility is
in the interest of the public health and safety as supported by
findings from the hearing and any other basis;
(ii) A finding that the street maintenance utility will allocate
the relative burdens placed on the streets by various classes of users
and the benefits derived by the various classes of users;
(iii) A finding that the street maintenance utility rates are
intended to be adequate to provide revenues sufficient for the street
maintenance utility, including payment of the principal and interest on
such bonds or warrants and payments that the street maintenance utility
is obligated to set aside in any special fund or funds created for such
purposes;
(iv) A description of the street maintenance utility service area
and user rate schedule consistent with section 5 of this act setting
forth the amounts to be charged to residential users, business users,
governmental entities, and other like street users located in the
street maintenance utility service area; and
(v) A provision that a street maintenance utility advisory
committee must be established as a part of utility formation to advise
the city from time to time regarding the street maintenance utility.
The street maintenance utility advisory committee must be appointed by
the mayor or mayor's designee and confirmed by the city's legislative
authority. Committee membership may not exceed seven members, a
majority of which must be city residents or business owners, and must
represent the different user classifications of the street maintenance
utility. Street maintenance utility advisory committee duties may
include, but are not limited to, the review of proposed maintenance
projects, rates, credits, or plan changes, or other matters assigned by
ordinance. Committee members must serve without compensation, but
city-approved committee expenses and staff support must be provided by
the city.
(b)(i) The street maintenance utility ordinance may include a
description or summary of the condition of the pavement in the street
maintenance utility service area, based on field investigations,
pavement condition scores, or other information. The description or
summary may include a proposed timetable for street maintenance utility
services, summary of the services, budget, including projected revenues
from street maintenance utility rates or other sources, and any other
factors deemed relevant.
(ii) In street maintenance utility service areas that include land
owned by port districts, street maintenance activity supporting freight
movement is an allowable use for utility revenue.
(c)(i) The street maintenance utility ordinance must include a
policy to address major plan changes that affect street maintenance
utility project delivery or ability to finance identified projects.
The policy must at least address material changes to cost, scope, and
schedule, and how the city will address those changes. At a minimum,
the city shall consult with the street maintenance utility advisory
committee and publish a public notice regarding how the plan change
should be resolved.
(ii)(A) A street maintenance utility shall issue an annual report
indicating the status of program revenues, annual revenues received,
and portion of revenues that are bonded, a summary of annual
expenditures on identified maintenance and preservation projects, and
programmed projected construction schedules for the next budget year.
The annual report must also provide a means of describing if rates and
revenues are sufficient to obtain and maintain the city's systemwide
pavement condition index standard and a comparison of the systemwide
pavement condition index data available for prior years since formation
of the street maintenance utility, the number of lane miles by street
classification within the utility, and the number of new lane miles by
street classification added or subtracted from the system during the
year.
(B) Where underlying public or private utilities are required by
city policy to make repairs to pavement structures for utility
trenches, the annual report must estimate the amount of contributed
restoration work performed for pavement restoration.
(C) Cities shall make available copies of the annual report to any
ratepayer upon request.
NEW SECTION. Sec. 5
(b) Street maintenance utility rates apply to residents,
businesses, governmental entities, and other users located in the
street maintenance utility service area. Once rates are established
using sound engineering principles and the factors identified in
subsection (2) of this section, rates may be expressed as a designated
dollar amount per trip generated, type of household unit, or type of
business. Rates may be collected no more frequently than monthly and
no less frequently than annually. Rates set for users other than
households may be expressed in equivalents of household units or as
specified by ordinance. A city must phase in rates on a schedule of
not less than four years, as the city may determine.
(2)(a) In establishing street maintenance utility rates, the
following factors must be considered:
(i) The correlation between property uses and the estimated number
of vehicle trips from these uses; and
(ii) The institute of transportation engineers manual or other
resources of comparable acceptance or reliability.
(b) In establishing street maintenance utility rates, the following
factors may be considered:
(i) A cost component for the street maintenance utility's ongoing
base level operations. For the purposes of this subsection (2)(b)(i),
"base level operations" (A) means the threshold costs of operating the
utility per subscriber unit without regard for level of use or
intensity of service, and (B) refer to general systemwide costs. The
estimated number of vehicle trips generated by specific types of
property occupancies or uses may also be considered.
(ii)(A) User location;
(B) Differences in costs of service to different user classes;
(C) User proximity to arterial streets;
(D) Differences in costs or character of the service to users;
(E) Times of use;
(F) Number and type of vehicles associated with household units,
governmental entities, or businesses;
(G) Differences in the cost of maintenance, operation, repair, and
replacement of various parts of the street system, with consideration
to lowest life-cycle costing, by capital contributions made to the
system including, but not limited to, assessments, achievement of
traffic reduction, and air quality improvement goals;
(H) Capital contributions made to the system including, but not
limited to, assessments; and
(I) Special assessments, such as local improvement districts, for
streets and street-related improvements.
(iii) Any other matters that present a reasonable difference as a
grounds for distinction.
(3) Street maintenance utility rates may not:
(a) Include an exemption or credit for the payment of any tax;
(b) Be included for any reason on a user's property tax bill or
notice; or
(c) Be imposed on undeveloped premises.
(4)(a) A city may credit street maintenance utility rates on vacant
premises, provided that the owner produces proof of time of vacancy
under procedures set forth by the city.
(b) A city may reduce or credit rates on residential properties to
the extent of their occupancy by low-income senior citizens and other
low-income citizens as provided in RCW 74.38.070 and consistent with
Article VIII, section 7 of the state Constitution, or to the extent
determined proper for the necessary support of the poor and infirm, as
reasonably determined by the city in the street maintenance utility
ordinance.
(c) A city may reduce or credit rates on business or governmental
entities to the extent such business or governmental entities are
providing for streets, street-related improvements, and street
maintenance utility services within the street maintenance utility
service area, and based on a showing that the reduction or credit
granted is reasonably proportionate to the value contributed or cost
avoided by the street maintenance utility.
(d) A city may reduce or credit rates on residences, business
entities, or other users served by private streets to the extent they
are providing for streets, street-related improvements, and street
maintenance utility services, and based on a showing that the reduction
or credit granted is reasonably proportionate to the value contributed
or cost avoided by the street maintenance utility.
(5) If feasible, the ordinance must provide for mitigation for
incidental trips that are often combined with other trips, as compared
to destination trips that are associated with creating separate trip
burdens on the streets.
(6) The ordinance may provide for user rate reduction if there is
a showing of trip reduction, including reductions for residential users
participating in regular carpool or vanpool arrangements or for
commercial users offering carpool, vanpool, public transit passes, or
a trip reduction program approved under provisions as established by
ordinance.
(7) Street maintenance utility rates must be uniform for the same
class of ratepayers receiving services provided or imposing burdens on
a transportation system. Street maintenance utility rates collected by
a street maintenance utility must not be established in excess of the
amount authorized by the ordinance.
(8) Street maintenance utility rates may supplement any other
available resources for maintaining or preserving streets, but may not
duplicate or replace transportation impact fees authorized under growth
management laws designed to pay for increasing the capacity of the
street system to accommodate the needs for new growth and development
rather than street maintenance or remediation of existing deficiencies
in the street system.
(9) A city may provide or contract to provide billing and
collection services of the street maintenance utility rates as a part
of or separate from other maintenance utility services provided. The
ordinance may use the connection or consumption of other maintenance
utility services as a basis to establish occupancy or use.
(10) Street maintenance utility rates may not be computed based on
the ad valorem value of the underlying real property or its
improvements.
(11) The rates established under this section are not intended to
be regarded as tolls, but to the extent that the rates may be
determined to be tolls by a court of competent jurisdiction,
legislative approval is granted consistent with the requirements of
this chapter. Any amounts regarded as tolls must be computed in a like
manner as provided under this chapter for street maintenance utility
rates, subject to the same ratepayer protections.
(12) The rates established under this section are not intended to
be regarded as taxes, but to the extent that the rates may be
determined to be taxes by a court of competent jurisdiction,
legislative approval is granted consistent with the requirements of
this chapter.
(13) Street maintenance utility rates established under this
section do not constitute taxes or fees as provided under RCW 82.02.050
through 82.02.100 or chapter 39.92 RCW. A street maintenance utility
may be funded by rates or any other lawful revenue source.
(14) Prior to any rate change, the street maintenance utility shall
conduct a public hearing to review the condition of the street
infrastructure and future program needs based upon adopted standards.
(15) In the case of a legal challenge to any rates or rate
classification, it is the burden of the establishing government, by a
preponderance of the evidence, to show that the rates are not in excess
of the burden created by the ratepayer or rate class concerned.
NEW SECTION. Sec. 6
(2) Ratepayer appeals must be considered by an independent
examiner. The examiner shall receive and examine available
information, prepare a record of the information, and enter findings of
fact, conclusions based upon those facts, and a decision. The
jurisdiction of the independent examiner extends to appeals about the
base rate, rate classifications, and rates charged to an individual
user. The independent examiner's jurisdiction does not extend to any
other aspects of street maintenance utility operation, enforcement of
the street maintenance utility ordinance, or any management or control
of the city's streets. Appeals from decisions of the examiner acting
within its jurisdictional duties must be directly made to the superior
court. Additional provisions that govern appeals under this section
must be provided by ordinance.
NEW SECTION. Sec. 7
(2) As a supplemental remedy, a street maintenance utility
ordinance may: (a) Provide that any unpaid rates and applicable
penalties are a lien against the real property for which the street
maintenance utility services were provided, which amounts may be
foreclosed in the manner of a lien for labor and materials furnished on
the subject premises. Each year, a lien may not exceed twelve months
of accrued and unpaid charges, plus any applicable penalties; or (b)
provide that unpaid street maintenance utility rates are a lien against
the property to which the services are provided, which may be enforced
in the same manner as rates and charges for the use of systems of
sewerage and storm drainage under chapter 35.67 RCW.
NEW SECTION. Sec. 8
(2) Permitted purposes include any identified street maintenance
utility service.
NEW SECTION. Sec. 9
NEW SECTION. Sec. 10
NEW SECTION. Sec. 11
NEW SECTION. Sec. 12
NEW SECTION. Sec. 13
(2) This chapter is not intended to create or enhance any duty upon
any city with respect to the maintenance and preservation of its
streets beyond that which now exists under the general law.
NEW SECTION. Sec. 14
NEW SECTION. Sec. 15
(1) RCW 82.80.040 (Street utility -- Establishment) and 1991 c 141 s
1;
(2) RCW 82.80.050 (Street utility -- Charges, credits) and 2006 c 301
s 5, 2000 c 103 s 21, & 1991 c 141 s 2; and
(3) RCW 82.80.060 (Use of other proceeds by utility) and 1991 c 141
s 3.
Sec. 16 RCW 82.80.070 and 2005 c 319 s 139 are each amended to
read as follows:
(1) The proceeds collected pursuant to the exercise of the local
option authority of RCW 82.80.010((,)) and 82.80.030((, and 82.80.050))
(hereafter called "local option transportation revenues") shall be used
for transportation purposes only, including but not limited to the
following: The operation and preservation of roads, streets, and other
transportation improvements; new construction, reconstruction, and
expansion of city streets, county roads, and state highways and other
transportation improvements; development and implementation of public
transportation and high capacity transit improvements and programs; and
planning, design, and acquisition of right-of-way and sites for such
transportation purposes. The proceeds collected from excise taxes on
the sale, distribution, or use of motor vehicle fuel and special fuel
under RCW 82.80.010 shall be used exclusively for "highway purposes" as
that term is construed in Article II, section 40 of the state
Constitution.
(2) The local option transportation revenues shall be expended for
transportation uses consistent with the adopted transportation and land
use plans of the jurisdiction expending the funds and consistent with
any applicable and adopted regional transportation plan for
metropolitan planning areas.
(3) Each local government with a population greater than eight
thousand that levies or expends local option transportation funds, is
also required to develop and adopt a specific transportation program
that contains the following elements:
(a) The program shall identify the geographic boundaries of the
entire area or areas within which local option transportation revenues
will be levied and expended.
(b) The program shall be based on an adopted transportation plan
for the geographic areas covered and shall identify the proposed
operation and construction of transportation improvements and services
in the designated plan area intended to be funded in whole or in part
by local option transportation revenues and shall identify the annual
costs applicable to the program.
(c) The program shall indicate how the local transportation plan is
coordinated with applicable transportation plans for the region and for
adjacent jurisdictions.
(d) The program shall include at least a six-year funding plan,
updated annually, identifying the specific public and private sources
and amounts of revenue necessary to fund the program. The program
shall include a proposed schedule for construction of projects and
expenditure of revenues. The funding plan shall consider the
additional local tax revenue estimated to be generated by new
development within the plan area if all or a portion of the additional
revenue is proposed to be earmarked as future appropriations for
transportation improvements in the program.
(4) Local governments with a population greater than eight thousand
exercising the authority for local option transportation funds shall
periodically review and update their transportation program to ensure
that it is consistent with applicable local and regional transportation
and land use plans and within the means of estimated public and private
revenue available.
(5) In the case of expenditure for new or expanded transportation
facilities, improvements, and services, priorities in the use of local
option transportation revenues shall be identified in the
transportation program and expenditures shall be made based upon the
following criteria, which are stated in descending order of weight to
be attributed:
(a) First, the project serves a multijurisdictional function;
(b) Second, it is necessitated by existing or reasonably
foreseeable congestion;
(c) Third, it has the greatest person-carrying capacity;
(d) Fourth, it is partially funded by other government funds, such
as from the state transportation improvement board, or by private
sector contributions, such as those from the local transportation act,
chapter 39.92 RCW; and
(e) Fifth, it meets such other criteria as the local government
determines is appropriate.
(6) It is the intent of the legislature that as a condition of
levying, receiving, and expending local option transportation revenues,
no local government agency use the revenues to replace, divert, or loan
any revenues currently being used for transportation purposes to
nontransportation purposes.
(7) Local governments are encouraged to enter into interlocal
agreements to jointly develop and adopt with other local governments
the transportation programs required by this section for the purpose of
accomplishing regional transportation planning and development.
(8) Local governments may use all or a part of the local option
transportation revenues for the amortization of local government
general obligation and revenue bonds issued for transportation purposes
consistent with the requirements of this section.
(9) Subsections (1) through (8) of this section do not apply to a
regional transportation investment district imposing a tax or fee under
the local option authority of this chapter. Proceeds collected under
the exercise of local option authority under this chapter by a district
must be used in accordance with chapter 36.120 RCW.
NEW SECTION. Sec. 17 Sections 1 through 14 of this act
constitute a new chapter in Title
NEW SECTION. Sec. 18 This act takes effect August 1, 2011.