Traffic Impact Fee topic of discussion, once again

Published 9:58 pm Monday, June 22, 2009

Traffic Impact Fees were again a topic of discussion for the Bonney Lake City Council during a June 16 workshop.

Public Works Director Dan Grigsby said his department is proposing to use the fees for design work.

“If we spend some of our TIF money for the 30-percent design, we get the after-scope of work statement on how many lanes are needed and what kind of traffic signals,” he said. “We have after-cost estimates instead of planning-level cost estimates, we get Department of Transportation approval because with the 30-percent design with rechannelization plans and that’s what DOT approves.”

Grigsby said once the city has the 30-percent design, a large project can be broken into smaller mitigation fees. He said by spending the TIF money up front, the city can help developers see what their costs truly are.

Mayor Neil Johnson said the top 10 projects in the city’s six-year transportation play have a big impact on traffic impact fees.

Johnson said there are two projects – one widening 214th Avenue to five lanes to 96th Street East and another widening 214th to five lanes to the southern city limits – he believes are not needed.

City Engineer John Woodcook said the intersection of 214th and state Route 410 needs a new signal and additional turn lanes. He said the intersection needs a double-left turn to the north, because the single lane is backing up at times.

Woodcock said the two projects are needed because of increased traffic.

Johnson said the project may not happen for another 10 years.

“Do you have these in a different category, collect TIFs on the projects that are going to be done within the six years, then after you re-evaluate every year redo the six-year plan, eliminate the projects done and then readjust the TIF?” Johnson asked.

Johnson suggested having a low TIF rate now and higher rate later.

Councilman Mark Hamilton believes eliminating some projects would effect the city infrastructure.

Councilman Dave King thinks the problem is there are two competing visions.

“Taking projects off the list, takes them off the radar for the state and every other planning agency,” King said. “The effort to bring the project back on the list will create a huge amount of problems.”

Woodcook said an option for the council to consider is keeping all the projects on the plan, then deciding the percentage of TIF money to spend on each project.

Grigsby said the city did not have such fees until 2003 and the rate was $2,674 per “p.m. trip” based on a six-year transportation plan.

He said the TIF came as a result of the 1998 Growth Management Act which mandated that state and local government road plans meet the needs of urban development.

According to Grigsby, the rate was increased in 2005 to $3,886 because a 20-year transportation plan was adopted. He said because of the annual Construction Cost Index adjustments the current rate of $3,995 was set in 2008.

Since 2003, the city has collected approximately $6 million in traffic impact fees.

He noted not all projects are TIF eligible, but most of the city’s transportation plans will receive TIF money.

“TIFs can be used to enhance or increase the capacity of the roadway system only,” he added. “Generally, it’s used for adding an additional lane or rebuilding an old intersection with traffic signals.”

Grigsby said by 2040, the central Puget Sound area is looking at an increase of 1.5 million people and 1.2 million new jobs – a 40 percent increase in population and 60 percent increase in jobs.

“With a 40 percent growth rate, the population of Bonney Lake is estimated to be 29,800 by 2025,” he noted. “The growth is going to continue to occur.”

He said the key for the city is to have a systematic plan in place, rather than waiting until the system breaks down, putting the city into an emergency mode trying to repair it.

He said the later a TIF project is delayed, the more expensive it will become and the level of service will diminish.

One advantage of the TIF, Grigsby said, is that the city will not have to go after bond money.

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