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Ordinance 23-018 Formation of a Transportation Benefit DistrictCITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO.23-OI8 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, AMENDING THE SPOKANE VALLEY MUNICIPAL CODE TO ENACT A NEW CHAPTER 3.85, SPOKANE VALLEY TRANSPORTATION BENEFIT DISTRICT; ESTABLISHING A TRANSPORTATION BENEFIT DISTRICT; ESTABLISHING THE BOUNDARIES OF THE TRANSPORTATION BENEFIT DISTRICT; AND SPECIFYING THE IMPROVEMENT, MAINTENANCE AND PRESERVATION OF THE CITY TRANSPORTATION SYSTEM. WHEREAS, the City Council (the "City Council" or "Council") of the City of Spokane Valley, Spokane County, Washington (the "City") has the responsibility under the Constitution of the State of Washington for the construction, improvement, maintenance, protection and operation of public ways within the corporate limits of the City; and WHEREAS, the improvement, maintenance, protection and operation of public ways requires maintaining and preserving existing transportation improvements to avoid gradual deterioration or catastrophic failure of the improvements which would require significant additional funds to reconstruct; and WHEREAS, the City has limited transportation funding to pay for necessary transportation improvement, preservation, maintenance, and reduction of congestion on its streets; and WHEREAS, while the City has limited funding, ongoing annual costs to preserve and maintain the City's transportation system infrastructure continue to rise leaving the City unable to continue to adequately preserve and maintain the City's transportation system infrastructure; and WHEREAS, chapter 36.73 RCW provides for the establishment of transportation benefit districts and for the levying of additional revenue sources for transportation improvements within the district that are consistent with state, regional, and local transportation plans and necessitated by existing or reasonably foreseeable congestion levels; and WHEREAS, RCW 35.21.225 authorizes the City Council to establish a transportation benefit district subject to the provisions of chapter 36.73 RCW; and WHEREAS, prior to establishing a transportation benefit district, the City Council shall conduct a public hearing upon proper notice, which shall describe the functions and purposes of the proposed transportation benefit district; and WHEREAS, the City Council desires to form a transportation benefit district which includes the entire jurisdictional boundaries of the City of Spokane Valley (the "Spokane Valley Transportation Benefit District"), as the boundaries currently exist or as they may exist following future annexations; and WHEREAS, the City provided notice of and conducted the public hearing on October 17, 2023, regarding the proposed establishment of the Spokane Valley Transportation Benefit District in accordance with RCW 36.73.050. All persons desiring to comment were given a full and complete opportunity to be heard; and WHEREAS, the City Council hereby finds it to be in the best interests of the City to establish the Spokane Valley Transportation Benefit District for the preservation and maintenance of the City's transportation system infrastructure consistent with chapter 36.73 RCW to protect the City's long-term investments in that infrastructure, to reduce the risk of transportation facility failures and improve safety, to continue optimal performance of the infrastructure over time, and to avoid more expensive infrastructure replacements in the future; NOW, THEREFORE, the City Council of the City of Spokane Valley ordains as follows: Section 1. Purpose; Findings. The purpose of this Ordinance is to establish a transportation benefit district pursuant to RCW 35.21.225 and chapter 36.73 RCW. The City Council hereby finds it is in the public interest to provide adequate levels of funding for the purposes of ongoing transportation improvements that preserve, maintain and as appropriate construct or reconstruct the transportation infrastructure of the City, by forming a transportation benefit district consistent with chapter 36.73 RCW. Section 2. Adoption of Chapter. Spokane Valley Municipal Code Chapter 3.85 is hereby enacted to be entitled "Spokane Valley Transportation Benefit District", to read as follows: Chapter 3.85 SPOKANE VALLEY TRANSPORTATION BENEFIT DISTRICT 3.85.010 Establishing Transportation Benefit District. There is hereby created a transportation benefit district to be known as the "Spokane Valley Transportation Benefit District" (hereinafter referred to as the "district") with geographical boundaries comprised of the corporate limits of the City as they currently exist or as they may exist following future annexations. 3.85.020 Governing Board. A. The governing board or "board" of the district shall be the Spokane Valley City Council acting in an ex officio and independent capacity, which shall have the authority to exercise the statutory powers set forth in chapter 36.73 RCW. B. The treasurer of the district shall be the City Finance Director. C. The district board shall develop a material change policy to address major plan changes that affect project delivery or the ability to finance the plan, pursuant to the requirements set forth in RCW 36.73.160(1). The policy will, at a minimurn, address material changes to cost, scope, and schedule, the level of change that will require board involvement, and how the board will address those changes. In the event that a transportation improvement cost exceeds its original cost by more than twenty percent as identified in the district's original finance plan, the board shall hold a public hearing to solicit comment from the public regarding how the cost change should be resolved. D. The district shall issue an annual report, pursuant to the requirements of RCW 36.73.160(2). 3.85.030 Functions of the District. A. The district board shall have the authority to establish fees, taxes and other revenue sources in accordance with chapter 36.73 RCW, including but not limited to RCW 36.73.040, RCW 36.73.060 and RCW 36.73.065, B. The district board may authorize an annual vehicle fee as provided for by RCW 82.80.140. C. Any expansion of the authorized purposes of the district shall be undertaken only after notice, hearing and adoption of an ordinance in accordance with RCW 36.73.050. ra D. When authorized by the voters pursuant to the requirements of chapter 36.73 RCW, other taxes, fees, charges and tolls or increases in these revenue services may be assessed for the construction, preservation, maintenance and operations of City streets. E. The district board shall have all powers and functions provided for by state law, including but not limited to chapter 36.73 RCW, as it now exists or is hereafter amended, to fulfill the purposes of the district. 3.85.040 Transportation Improvements Funded. The funds generated by the district shall be used for any purpose allowed by law including to make transportation improvements that are consistent with state, regional and local transportation plans and transportation improvements that construct, preserve, maintain and operate the existing and future transportation infrastructure of the City, consistent with the requirements of chapter 36.73 RCW, as it now exists or is hereinafter amended. The funds may be utilized for any lawful purpose under this chapter; but all fiends raised through the district shall be expended only for such construction, preservation, maintenance, and operation in accordance with the provisions of chapter 36.73 RCW, as the same exists or is hereafter amended. The funds expended by the district shall preserve, maintain, and operate the City's transportation infrastructure, reduce the risk of transportation facility failure, improve safety, continue the cost- effectiveness of the City's infrastructure investments, and continue the optimal performance of the transportation system. Additional transportation improvement projects may be funded only after compliance with the provisions of RCW 36.73.050(b) following notice, public hearing, and enactment of an authorizing ordinance. 3.85.050 Dissolution of District. The district shall be dissolved when all transportation improvements associated with the construction, operation, preservation, and maintenance of the City's transportation improvements, facilities, functions, and activities have been completed; all indebtedness of the district created to accomplish the improvements has been retired; and when all of the district's anticipated responsibilities have been satisfied. In addition to the automatic dissolution of the district as set forth above, the board reserves the right to cause the dissolution of the district for any legal reason, including if a regional transportation benefit district with a funding mechanism is formed pursuant to an interlocal agreement as permitted in chapter 36.73 RCW. Section 3. Severability. Should any section, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this Ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this Ordinance or its application to other persons or circumstances. 3 Section 4. Effective Date, This Ordinance shall be in frill force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. PASSED by the City Council this 24"' day of October, 2023. A'TES T: Marci .. Piterson, .. City . . Clerk APPROVED AS TO FORM: 6f '�ec of the City Attorney Date Of PUblica is 11: 2-1 Effective C 4,0 4-o CITY OF SPOKANE VALLEY, WASHINGTON ............. ...................... Pain Haley, Mayor 4