Req.#12464 Exhibit "A" Amended 12-15-09
RESOLUTION NO. 37956
A RESOLUTION relating to the formation of Local Improvement Districts ("LlDs");
2 repealing Resolution No. 32989 and Substitute Resolution No. 35757; and
amending the Tacoma City Council Local Improvement District Policy.
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4 WHEREAS, since fall 2007, a cross-functional team with representatives
5 from the City's Water and Power divisions; Community and Economic
6 Development, Legal, and Public Works departments; and the City Manager's
7 Office has reviewed the current Tacoma City Council Local Improvement
8 District Policy ("Policy") with the purpose of drafting an updated Policy, and
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WHEREAS City staff identified the following six Policy issues that need
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to be clarified or addressed in the proposed updated Policy: (1) Level of
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1 2 neighborhood support necessary to conduct formation hearings, (2) Formation
13 method and remonstrance level, (3) Funding level participation of the City and
1 4 property owners, (4) Contractor bid proposals resulting in increased property
1 5 owner assessments, (5) Project prioritization process, and (6) Process for
16 formation of LIDs outside City limits, and
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WHEREAS the Environment and Public Works Committee reviewed these
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19 proposed changes at its September 10, 2008, October 14, 2009, and
20 November 19, 2009, meetings and issued a "do pass" recommendation; Now,
21 Therefore,
22 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF TACOMA:
23 Section 1. That Resolution No. 32989 and Substitute Resolution No. 35757
24 are repealed in their entirety.
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LEG 004 (11/89)
Section 2. That the Tacoma City Council Local Improvement District
2 Policy ("Policy") is amended, as set forth in the attached Exhibit "A," said
3 document to be substantially in the form of the proposed Policy on file in the
4 office of the City Clerk.
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Adopted' DEC 1 5 2009
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Attest:
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10 City Clerk
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12 Approved as to form:
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LEG 004 (11/89)
EXHIBIT"A"
2 Tacoma City Council
3 Local Improvement District Policy
4 A. References:
5 Revised Code of Washington (RCW) Chapter 35.43
6 Tacoma Municipal Code (TMC) Chapter 10.04
Resolution No. 32989, adopted April 25, 1995 (LID Policy)
7 Resolution No. 35757, adopted February 18, 2003 (Residential Fixed Rates)
Resolution No. 30947
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9 B. Background and Purpose:
10 Since the 1890s, Local Improvement District(s) (LIDs) have been successfully
utilized by the City of Tacoma to finance the construction of public
I I infrastructure.
12 The purpose of this policy is to establish a framework under which proposed
13 LIDs will be considered for formation by the City Council. The adoption of this
policy replaces Resolution No. 32989.
14 C. Definitions:
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1) "Special benefit" is defined as the increase in value of real property
16 derived from the construction of an LID. At times, it may be necessary to
17 ascertain special benefits by a professional appraiser.
18 2) "Complete streets" are defined as roadways designed, constructed
and operated in order provide safe, attractive, and comfortable access and
ig travel for all users, including pedestrians, bicyclists, motorists, and public
transportation. Complete streets create a sense of place and improve social
20 interaction, while generally improving property adjacent land values. The City
21 will include complete streets concepts in our designs of LiDs where practicable.
22 3) "Formation hearing" is a hearing conducted by the Hearing Examiner
set by the City Council for the purpose of providing notice to property owners
23 responsible for the cost of the proposed LID, taking testimony from the affected
property owners, establishing the LID boundaries, and to determine the level of
24 Remonstrance against the proposed project prior to LID formation by the City
25 Council.
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LEG 004 (11/89)
4) "LID" is an acronym for Local Improvement District, and both shall
I refer to those taxing districts formed pursuant to the authority granted by state
law.
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3 5) "LID Assistance Program" is the program established by the City
Council, funded by federal Community Development Block Grants, for the
4 purpose of assisting low-income homeowners to offset all or a portion of their
LID assessments.
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6 6) "Neighborhood Advisory Survey" is a nonbinding document provided
by the City to a property owner(s) or citizen(s) who are interested in having a
7 public improvement constructed through an LID.
8 7) "Opinion Survey" is a City-sponsored direct mailing sent to property
owners within a defined area to determine if there is sufficient support for a
9 proposed improvement that the City is interested in constructing. The results of
10 the survey may then be used by the City Council as a guide to determine if
there is enough public support to proceed to an LID formation hearing.
8) "Property owner" is the owner or reputed owner of record of real
12 property as listed on the tax rolls of the Pierce County Assessor-Treasurer.
13 9) "Remonstrance" is the action of property owners who file timely
14 written protests with the City Clerks Office against the formation of an LID.
15 1 0) "Level of support" is determined by the sum total of the estimated
assessments indicating interest and dividing that sum total by the sum total of
16 the assessments for the requested improvement and is generally shown, but is
not limited to, by property owners signing and returning a Neighborhood
17 Advisory Survey or an Opinion Survey to the City.
18 1 1) "Total cost of the improvement" is the sum total of all costs related,
19 but not limited, to engineering, construction management, financing,
administration and construction of the LID.
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12) "Total assessment" is the sum total of those costs that will be borne
21 directly by the property owners.
22 D. Staff Recommendations for Preformation:
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City staff will assess the level of support of the property owners for the
24 improvement prior to recommending a formation hearing to the City Council
25 consistent with the intent of this policy. Staff recognizes that support for the
improvement is subject to change during the formation process due to changes
26 such things as ownership, duration of formation process, and the economy.
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LEG 004 (11/89)
I Staff will evaluate and consider opportunities to coordinate construction of the
improvement with other public infrastructure projects or if other funding sources
2 exist for the improvement, such as grants.
3 Staff will work closely with property owners to review design standards,
4 including Complete Street elements, and discuss the financial impacts of the
project to the property owners.
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6 Staff will notify the City Council prior to the preformation process if the LID is
any one of the following: (1) A comprehensive/streetscape project, (2) located
7 in a mixed-use center, (3) located in an economically distressed area, or
(4) where the City has identified that significant development will occur as a
8 result of the LID. If the City Council determines that the project serves the best
interest of the City, the City Council may provide additional funding for the
9 project by adopting a resolution declaring its intent.
10 E. LID Formation:
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The preferred method of LID formation in the City of Tacoma is by resolution.
12 State law (RCW 35.43) outlines requirements for the resolution method.
13 The City Council may form an LID under emergency circumstances, such as
14 when the Health Officer of a city, town, county or state files a report with the
appropriate legislative authority, showing the necessity for sanitary sewer mains
15 or water mains to be constructed, citing health and/or safety issues; OR when
the Chief of the Fire Department files a report showing the necessity for fire
16 hydrants to be installed.
17 In order for the City Council to form an LID under an emergency, the ordinance
18 must be passed by unanimous vote of the City Council.
19 The formation of an LID is a legislative act by the City Council. Except for LIDs
determined by the City Council, prior to remonstrance, to be in the best interest
20 of the City, the City Council shall not pass an LID formation ordinance when
21 property owners representing 50 percent or more of the total assessment file
remonstrance with the City Clerk's office. For LIDs that have been determined
22 by the City Council to be in the best interest of the City, in accordance with
section D of this policy, the City Council may revise the remonstrance level
23 requirement up to the limit allowed under RCW 35.43.180, which divests the
City Council of authority to form an LID by resolution when property owners
24 representing 60 percent or more of the total assessment file remonstrance with
25 the City Clerk's office. Regardless of the level of support, the City Council
reserves the right to not form a proposed LID if it determines that the project is
26 not in the best interest of the City.
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LEG 004 (11/89)
I F. Funding:
2 Property owners, unless otherwise identified in Table 1, shall be responsible for
3 all costs of the improvements as deemed appropriate. The total assessment of
the property owners will be determined by the total cost of the improvement and
4 will vary depending upon the proximity of the property to the improvement and
on the amount of special benefit the improvements) adds to the property.
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6 Provided that City funding is available, the City may participate financially in the
types of LIDs at the percentage rates identified in Table 1.
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The City's participation shall generally be made available only to residential
8 (single-family dwellings) street and alley paving projects that are in established
neighborhoods where a majority of either the lineal footage of property or the
9 total assessments for the proposed district predominantly consists of
10 single-family dwellings and they will incorporate some aspects of complete
streets. The City may also provide financial assistance to property owners who
I 1 qualify for the LID Assistance Program.
1 2 The City may participate financially in other types of LIDs that are not identified
13 in Table 1 if they receive grants, there are other sources of funding, or it is
deemed to be in the best interest of the City. The City Council reserves the
14 right to allocate LID funding to these types of improvements.
1 5 TABLE 1
Percentage of Cost Participation
1 6
17 Description Property Owner City Participation
Assessments
18 Residential alley paving (single-family 85% 15%
dwellings)"'
19 Residential street paving (single-family
dwellings) incorporating concepts of complete 60% 40%
20 streets )
Sanitary Sewers (2) Variable Variable
21 Water Mains (3) Variable Variable
Undergrounding Overhead Primary Electrical 70% 30%
22 Distribution Systems (4)
23 Projects identified by City Council resolution to Variable Variable
be in the City's best interest
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Note: The adoption of this policy replaces Resolution No. 35757; the existing
25 City participation policy for fixed rate LIDs
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LEG 004 (11/89)
(1) P r Public Works Policy-Storm Sewer costs are 1 00 percent City funded
1 (2) Per TIVIC 12.08 and Public Works Policies
(3) Per Tacoma Water Customer Service Policies
2 (4) Per Tacoma Power Customer Service Policies
3 If the cost of the improvement and property owner assessments increases after
4 LID formation and the increased costs do not exceed the special benefit of the
improvement, City staff will notify the property owners of the increase to their
5 preliminary assessment increase and will construct the improvement.
6 If the cost of the improvement exceeds the special benefit of the improvement,
7 City staff will notify the property owners and will ask the City Council to dissolve
the LID in a separate ordinance. If the City Council determines that the
8 construction of the improvements serves a public interest, it may elect to
construct the improvements and the costs in excess of the special benefit will
9 be the responsibility of the City as determined by the City Manager and
10 Tacoma Public Utilities Director, as appropriate.
I I LID projects, other than emergency LIDs, will be formed on a first-come,
first-served basis. The City, subject to the availability of City resources, will
12 form LID projects in the chronological order in which the Neighborhood
Advisory Surveys or Opinion Surveys are returned to the City.
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14 Once an LID is formed by ordinance and if it subsequently fails to move forward
to construction, the LID remains established until it is dissolved by City Council
15 in a separate ordinance.
16 G. Formation of LIDs outside the City Limits:
17 The City Council, for the purpose of extending or upgrading public utility
services or undergrounding overhead utility lines outside the corporate
18 boundaries of the City and within unincorporated Pierce County, may pass
19 LID formation ordinances provided the requirements of Resolution No. 30947
are met. A copy of Resolution No. 30947 is attached as Exhibit "A" for
20 reference.
21 The City Council may pass LID formation ordinances within the Tacoma Public
22 Utility Service areas and in the boundaries of another municipality where it has
been determined to be in the best interests of both parties. An interlocal
23 agreement may be executed between the jurisdictions describing the nature of
the intended improvement, as well as identifying the responsibilities of the
24 respective staff of the municipalities.
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LEG 004 (11/89)
CITY CLERK USE ONLY
REQUEST FOR Plequest
Tacoma
El ORDINANCE E RESOLUTION b@d./Res.
1. DATE: November 17, 2009
2. SPONSORED BY: COUNCIL MEMBER(s) N/A
3a. REQUESTING 4a. CONTACT (for questions): PHONE:
DEPARTMENT/DiVISION/PROGRAM Rae Bailey 591-5488
Public Works/Construction
3b. "Do PASS" FROM Env. & PW
Committee 4b. Person Presenting: PHONE:
E Yes Rae Bailey 591-5488
nNo
n To Committee as information only
n Did not go before a Committee 4c. ATTORNEY: PHONE:
3c. DID THIS ITEM GO BEFORE THE Elizabeth Pauli 591-5627
PUBLIC UTILITY BOARD?
0 Yes, on
ZNot required
N/A
)@Richard E. McKinle3 hrector Robert K Biles, Finance Director Rey Deputy C
5. REQUESTED COUNCIL DATE: December 15, 2009
6. SUMMARY AGENDA TITLE: (A concise sentence, as it will appear on the Council agenda.)
Repealing Resolution No. 32989 and 35757 and amending the Tacoma City Council policy with respect
to the formation of Local Improvement Districts (LIDs).
7. BACKGROUND INFORMATIoN/GENERAL DISCUSSION: (Why is this request necessary? Are there legal
requirements? What are the viable alternatives? Who has been involved in the process?)
Since the fall of 2007, a cross-functional team with representatives from Tacoma Water, Tacoma Power,
Community and Economic Development, Legal, Public Works, and the City Manager's Office reviewed
the current policy with the purpose of drafting an updated policy. Staff identified six (6) City Council
policy issues that needed to be clarified or addressed in the updated policy. The policy issues were:
1. Level of Neighborhood Support Necessary to conduct Formation Hearings
2. Formation Method and Remonstrance Level
3. Funding Level participation of the City and Property Owners
4. Contractor bid proposals result in increased Property Owner assessments
5. Project Prioritization Process
6. Process for Formation of LIDs outside City Limits
Staff, working closely with the Environment and Public Works Committee, crafted a new policy that
addressed the above referenced policy issues.
8.LiST ALL MATERIAL AVAILABLE AS BACKUP INFORMATION FOR THE REQUEST AND INDICATE WHERE FILED:
Source Documents/Backup Material Location of Document
Resolution No. 32989 City Clerk's Office
Resolution No. 35757 City Clerk's Office
Updated LID Formation Policy City Clerk's Office 91
cotclerk\forins\ RequestResoliitionOrdinance.do-c Office of tlw City Clerk (03/23/12009)
CITY CLERK USE ONLY
REQUEST (CONT) Request
Ord/Res
9. WHICH OF THE CITY'S STRATEGIC GOALS DOES THIS ITEM SUPPORT? (CHECK THE GOAL THAT BEST APPLIES)
A. D A SAFE, CLEAN AND ATTRACTIVE COMMUNITY
B. F-1 A DIVERSE, PRODUCTIVE AND SUSTAINABLE ECONOMY
C. E A HIGH-PERFORMING, OPEN AND ENGAGED GOVERNMENT
10. IFTMSCONTRACTISFORANAMOUNTOF$200,OOOORLESS,EXPLAINWHYITNEEDSLEGISLATIVEAPPROVAL:
N/A
11. FINANCIAL IMPACT: REXPENDITURE REVENUE
A. No IMPACT (NO FISCAL NOTE)
B. YES, OVER $ 1 00,000, Fiscal Note Attached
C. YES, UNDER $ 1 00,000, (NO FISCAL NOTE)
Provide funding source information below:
FUNDING SOURCE: (Enter amount of funding from each source)
Fund Number & Name: State $ City $ Other $ Total Amount
If an expenditure, is it budgeted? El Yes R No Where? Cost Center:
Acct
cotc @,,k @fonns \ RequestResolutionOrdinance.doc Office of the Cihj Clerk (03/23/2009)
Resolution No. 3 7 9 5 6
Adopted: DEC 1 5 2009
Maker of Motion: @51:x
Seconded:
Voice Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Ms. Strickland
Mr. Talbert
Ms. Walker
Mayor Baarsma C=::-<
Roll Call Vote:
MEMBERS AYES NAYS ABSTAIN ABSENT
Ms. Anderson
Mr. Fey
Ms. Ladenburg
Mr. Lonergan
Mr. Manthou
Ms. Strickland
Mr. Talbert
Ms. Walker
Mayor Baarsma
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