2019-05-23 Transportation and Infrastructure Minutes

Browse Search

Transportation & Infrastructure Committee Minutes May 21, 2019 E. Ordinance: Amending Solid Waste Utility Tax Rate & Recycling Rate Surcharge Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code 3.51 to increase the Solid Waste Utility Tax by 10% and a Letter of Understanding with Waste Management for additional services and a 5% Recyclable Cost surcharge. Both changes would impact only commercial customers, not residential. Staff proposes the increase to the Solid Waste Utility Tax because of heavy truck impacts to roads. The current utility tax rate is 6% and has not been adjusted since 2009. The proposal will raise an estimated $750,000 per year which will be intended for road projects. The increase to 16% would be effective 11/1/19. The 5% Commercial Recyclable Cost surcharge was negotiated with Waste Management to offset its costs associated with the weakening recycling market as described to the Committee in April. The proposed surcharge would be in place for two years but could be extended in the future. As a tradeoff, Waste Management will begin to pick up 20 additional City -owned garbage containers twice weekly. Tukwila's solid waste and recycling rates will remain below those of neighboring cities even with these proposed increases. Councilmember Kruller asked about specific impacts. At the 1-yard collection level, the rate will increase from $70.80 to $81.78. At the 8-yard level, the rate will go from $424.54 to $490.35. Councilmember McLeod asked how 10% was determined for the tax increase and noted that this is another hit to businesses. Staff looked at the City of Kent as a model, but it will be a Council decision. Chair Idan pointed out that the last recital in the ordinance refers to the money being designated for road maintenance and road related projects, but the language in the code is more general, referring to "City services or capital requirements." He would prefer that money raised from this tax be explicitly directed to road improvements. Councilmember Kruller stated that the intent for roads is clear and she prefers leaving the flexibility in the code. She asked if staff had reached out to the Chamber of Commerce per her suggestion at the last meeting. Staff said the meeting has not yet occurred but will pursue it prior to the Committee of the Whole discussion. Councilmember McLeod asked for clarification on road improvements in the General Fund. The current policy is that the General Fund subsidizes roads and infrastructure projects and while there is not a specific roads account, the city does identify all of its revenues and expenditures. Chair Idan stated again that he is interested in dedicating the proposed 16% Solid Waste Utility Tax to road improvements and he would like the full Council to discuss this, although he will not be present. UNANIMOUS APPROVAL. FORWARD TO MAY 28, 2019 COMMITTEE OF THE WHOLE. III. SCATBd/RTC There was no report. IV. MISCELLANEOUS McMicken Projects Staff distributed a handout showing projects and expenditures in the McMicken Heights neighborhood between 1989-2019. BNSF Access Chair Idan stated that he would like a Committee discussion schedule for June 18 on the BNSF intermodal access location. He feels the Council should make a decision on the location despite not having a funding strategy determination.