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HomeMy WebLinkAboutReg 2008-12-15 Item 7F - Ordinance - Fire and Parks Impact FeesCAS NUMBER 08-146 MTG. DATE 11/24/08 EXPl ?NDPI'UM:, Rli(?UIRI:D MTG. DATE 11/24/08 12/01/08 12/08/08 12/1/08 12/8/08 12/15/08 Meeting Dale 11/24/08 12/01/08 12/08/08 12/15/08 COUNCIL AGENDA SYNOPSIS Inrttalt Prepared by Mayor's review I Couual review LV LV ITEM INFORMATION I ORIGINAL AGENDA DATi NOVEMBER 24, 2008 Ordinances for Fire and Parks Impact Fees ITEM No. C.\'I'I .(;ORY Disalsdon Motion Resolution Ordinance I Bid Allard Public Hearing U Other :Ills Date 12/8/08 Mtg Date kits Date Mtg Dote 12/15/08 Mtg Date Mtg Dote 11/24/08 ititg Date !SPONSOR IA Council Nlayor Adm Svcs DCD Finance Fire Legal P&R Police PIS SPONSOR'S Sl��l \r \Rl' Discussion regarding adoption of impact fees for Fire and impact fees for Parks. Decisions needed include: 1) what total dollar value of capital projects for Fire, 2) the split in revenues between impact fees and City contribution for Fire. 3) what total dollar value of capital projects for Parks, 4) the split in revenues between impact fees and city contribution for Parks. Ordinances in draft form are attached. COW Mtg. CA &P Cmte F &S Cmte (1 Transportation Cmte Utilities Cmte Arts Comm. LI Parks Comm. Planning Comm. DATE: 11/18 F &S 12/2 (action); 11/24 12/8 CAP (info only) RECOMMENDATIONS: SPONSOR /ADMJN Approve and forward to COW for discussion COMI`IIT1T?E Forward to Committee of the Whole for discussion COST IMPACT FUND SOURCE AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: REVENUE IS FROM IMPACT FEES; PROJECTS ARE NOT CONSTRUCTED UNLESS FUNDS ARE AVAILABLE Cotnnients: RECORD OF COUNCIL ACTION Forward to 12/1/08 Regular Meeting Forward to 12/8/08 Committee of the Whole Forward to next Regular Meeting ATTACHMENTS Informational Memos regarding Fire /Park impact fees with Attachments Ordinances adopting Fire /Park impact fees with Attachments Minutes from Finance Safety Committee meeting of 11/18/08 Ordinances with Attachments Informational memorandum dated 12/3/08 Ordinances with Attachments 1 Minutes from the Finance Safety Committee meeting of 12/2/08 Info memo 12/10/08; Ordinances in final form with Attachments TO: City Council CC: Mayor Haggerton City Administrator IVNFORMATION MEMORANDUM FROM: Lisa Verner, Project Manager Bruce Fletcher, Parks Director DATE. December 10, 2008 RE: FIRE AND PARKS IMPACT FEES ISSUE Adoption of impact fees for fire services and parks services. DISCUSSION At the Committee of the Whole meeting on December 8, 2008, several items were discussed as part of the COW review of both fire and parks impact fees. These items are addressed below. 70 -30% Split for Parks Impact Fees If a 70% impact fee 30% city contribution split is used with the 88,000,000 in capital facilities projects identified for Parks, the City would pay $2,400,000 (versus $1,600,000 with a 20% split). The 70 -30% impact fees would be those on the LEFT (in bold) below; the 80 -20% impact fees are shown on the right: PARKS Capital Facilities List: $8,000,000 Split: 70% 30% Impact Fee Contribution: $5,600,000 City Contribution: $2,400,000 Fees: SF MF Office Retail Industrial $1,247 81,223 733 366 229 Capital Facilities List: 88,000,000 Split: 80% 20% Impact Fee Contribution: 86,400,000 City Contribution: 81,600,000 Fees: SF MF Office Retail Industrial $1,426 $1,398 837 419 262 City Council Inforrnation Memorandum 12 -10 -08 Page 2 Revisions to Draft Ordinances Clarification language has been added to both the Fire impact fee ordinance and the Parks impact fee ordinance regarding exemptions (new Section 11.7 in each ordinance). This language clarifies that if no new housing units or no new square footage are added, then impact fees are not assessed for alterations, reconstructions, remodelings or replacements of buildings or dwellings. For commercial uses, the measurement is "per 1,000 square feet" and for residential uses it is "per dwelling unit." Even if the use changes, as long as no units or square footage are added, impact fees are not due. Comparison of Impact Fees Council members asked for a comparison of other cities impact fees and those proposed for Tukwila. These are attached. Clarification There appears to be some confusion on refunds of impact fee monies. The paragraph below clarifies what will happen: Impact fees have to be spent within 6 years of collection or else refunded. Fees can be spent on any or all of the projects on the associated capital facilities list adopted with the fees and listed in the Capital Improvement Plan (CIP), for which there is a nexus to the development. The fees collected from a specific development are not tied to a particular project. They can be spent all on one project or spent on 2 or 3 projects that are related to the development, or spent on portions of all projects so long as the impact fee revenue is spent within 6 years; the choice is up to Council, as considered annually when adopting the Parks and Fire portions of the CIP, respectively. Changes in the capital facilities project list are permitted as long as projects come from the Master Plans and are necessary due to new growth. RECOMMENDATION Adopt a Fire Impact Fee ordinance Adopt a Parks Impact Fee ordinance Attachment: Comparison of other area cities impact fees COMPARISON OF OTHER AREA CITIES IMPACT FEES FIRE AWC AVERAGES 2008 PARKS City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING THE ASSESSMENT OF FIRE IMPACT FEES ON NEW RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL DEVELOPMENT IN THE CITY; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to the Growth Management Act of the State of Washington and RCW 36.70A, the City of Tukwila has an adopted Comprehensive Plan, which includes provisions for fire protection facilities as part of its Capital Facilities Element; and WHEREAS, RCW 82.02.050 authorizes cities to impose impact fees on development activity as part of the financing for public facilities, including fire protection facilities; and WHEREAS, the Tukwila City Council desires to provide funding for fire protection facilities, as referenced in the Capital Facilities Element of the Comprehensive Plan, through the imposition of residential and non residential development impact fees beginning January 1, 2009; NOW, "THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Findings. The City Council finds and determines that new growth and development in the City creates additional demand and need for public fire protection facilities in the City, and the City Council finds that new growth and development should pay its proportionate share of the costs for new fire service facilities to serve new growth and development in the City. The City Council believes that this can be accomplished by the assessment of fire impact fees on new residential, commercial, and industrial development in the City. It is the Council's intent that the provisions of this ordinance be liberally construed in establishing the fire impact fee program. Section 2. Definitions. Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when given their usual and customary meaning. For the purposes of this ordinance, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the following meanings: 1. The "Act" means the Growth Management Act, Chapter 17, Laws of 1990, First Extraordinary Session, Chapter 36.70A RCW et seq., and Chapter 32, Laws of 1991, First Special Session, as now in existence or hereinafter amended. 2. "Building permit" means an official document or certification of the City of. Tukwila issued by the City's building official which authorizes the construction, alteration, enlargement, conversion, reconstruction. remodeling, rehabilitation, erection, placement, demolition, moving, or repair of a building or structure. 3. "City" means the City of Tukwila, Washington, County of King. C. \Documents and Setting \All Users Desktop Kelly \MSDATA Ordinances \Fire Impact Fees.doc LV:km 12/10/2008 Page 1 of 6 4. "Development activity" means any construction of a building or structure that creates additional demand and need for fire safety facilities. 5. "Development approval" means any written authorization from the City, which authorizes the commencement of the "development activity." 6. "Encumber" means to reserve, set aside, or earmark the fire impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of fire protective services. 7. "Fee payer" is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity that requires a building permit and creates a demand for additional fire capital facilities. 8. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this ordinance as a condition of granting development approval in order to pay for the fire facilities needed to serve new growth and development that is a proportionate share of the cost of fire capital facilities that is used for facilities that reasonably benefit new development. Impact fees do not include a reasonable permit fee, an application fee, and the administrative fee for collecting and handling fire impact fees or cost of reviewing independent fee calculations. 9. "Owner" means the owner of record of real property, as found in the records of King County, Washington, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the property. 10. "Proportionate share" means that portion of the cost for fire facility improvements that are reasonably related to the service demands and needs of new development. 11. "Public facilities" means the following capital facilities owned or operated by governmental entities: (1) public streets and roads; (2) publicly owned parks and open spaces and recreational facilities; (3) school facilities; (4) fire protection facilities not part of a fire district; and (5) police facilities and essential public facilities as defined by Chapter 36.70A RCW. Section 3. Fire Impact Fee Assessment. A. The City shall collect fire impact fees from applicants seeking development approvals from the City for any development activity in the City for which building permits are required, effective January 1, 2009. This will include the expansion of existing uses, which create the demand for fire protection services. B. Fire impact fees shall be assessed at the time of a technically complete building permit application that complies with the City's zoning ordinances and building and development codes. Fire impact fees shall be collected from the fee payer at the time the building permit is issued. C. Except if otherwise exempt, the City shall not issue the required building permit unless or until the fire impact fees are paid. Section 4. Use of Fire Impact Fees. A. Pursuant to this ordinance, fire impact fees shall be used for fire facilities that will reasonably benefit the City and its residents. B. Fees shall not be used to make up deficiencies in City facilities serving an existing development. C. \Documents and Settings \All Users \Desktop \Kelly \MSDATA Ordinances Fire Impact Fees. doc LV:ksn 12/10/2008 Page 2 of 6 C. Fees shall not be used for maintenance and operations, including personnel. D. Fire impact fees shall be used for but not limited to land acquisition, site improvements, engineering and architectural services, permitting, financing, administrative expenses and applicable mitigation costs, and capital equipment pertaining to fire protection facilities. E. Fire impact fees may also be used to recoup public improvement costs incurred by the City to the extent that new growth and development will be served by the previously constructed improvement. F. In the event bonds or similar debt instruments are or have been issued for fire facility improvements, impact fees may be used to pay the principal on such bonds. Section 5. Fire Impact Fee Capital Facilities Plan. In order to collect fire impact fees, the City must first adopt a Fire Capital Facilities Plan as an element of the City's Comprehensive Plan. The City's Capital Facilities Plan for fire protection services shall consist of the following elements: 1. The City's capacity over the next six years, based on an inventory of the City's fire facilities both existing and under construction; 2. The forecast of future needs for fire facilities based upon the City's population projections; 3 A six-year financial plan component, updated as necessary, to maintain at least a six-year forecast for financing needed within projected funding levels; 4. Application of the formula set forth in this ordinance based upon the information in the Capital Facilities Plan; and 5. City Council Action. No new or revised impact fee shall be effective until adopted by the City Council following a duly advertised public hearing to consider the City's Capital Facilities Plan or plan update. Section 6. Fire Impact Fee Formula. The impact fee formula is based on the assumptions found in Tukwila Fire Impact Fees, 2008, Exhibit A, and Tukwila Fire Department Capital Facilities List, Exhibit B, attached hereto and by this reference fully incorporated herein. 1 Land Use 1 Single family Multi- family I Office 1 Retail I Industrial FIRE IMPACT FEE CALCULATIONS Impact Fee Per Residential Unit I Per 1,000 Sq. Ft. GFA $922 $1,200 $1,624 1 $580 1 $127 Section 7. Fire Impact Fee Adjustments. A. The City may adjust a fire impact fee at the time the fee is imposed to consider unusual circumstances in specific cases to ensure that impact fees are imposed fairly B. In calculating the fee imposed on a particular development, the City shall permit consideration of studies and data submitted by a developer to adjust the amount of the fee. The developer shall submit an independent fee calculation study to the Fire Chief who shall review the study to determine that the study: 1. is based on accepted impact fee assessment practices and methodologies; C. \Documents and Settings \All Users Desktop\ Kelly \MSDATA \Ordinances \Fire Impact Fees.doc LV:ksn 12/10/2008 Page 3of6 2. uses acceptable data sources and the data used is comparable with the uses and intensities planned for the proposed development activity; 3. complies with the applicable state laws governing impact fees; 4. is prepared and documented by professionals who are mutually agreeable to the City and the developer and are qualified in their respective fields; and 5. shows the basis upon which the independent fee calculation was made. C. In reviewing the study, the Fire Chief may require the developer to submit additional or different documentation. If an acceptable study is presented, the Fire Chief may adjust the fee to that appropriate for the particular development activity. If an acceptable study is not presented, the developer shall pay the impact fees required prior to submitting the study. D. A developer requesting an adjustment or independent fee calculation may pay the impact fees imposed by this ordinance to obtain a building permit while the City determines whether to partially reimburse the developer by making an adjustment or accepting the independent fee calculation. Section 8. Credits. A fee payer can request that a credit, or credits, be awarded to the fee payer for the value of dedicated land, improvements to, or new construction of any system improvements provided by the developer to facilities that are identified in the Capital Facilities Plan and that are required by the City as a condition of approving the development activity. Section 9. Appeals. A. Any fee payer may pay the impact fees imposed by this ordinance under protest in order to obtain a building permit. B. Appeals regarding fire impact fees imposed on any development activity may only be taken by the fee payer of the property where such development activity will occur No appeal shall be permitted unless and until the impact fee at issue has been paid. C. Determinations of the City staff with respect to the applicability of fire impact fees to a given development activity, or the availability of a credit, can be appealed to the City's Hearing Examiner pursuant to this section. D An appeal shall be taken within 10 working days of payment of the impact fees under protest or within 10 working days of the City's issuance of a written determination of a credit or exemption decision by filing with the City Clerk a notice of appeal giving the reasons for the appeal with an accompanying appeal fee as set forth in the existing fee schedule for land use decisions. Section 10. Refunds. A. If the City fails to expend or encumber the impact fees within six years from the date the fees were paid, unless extraordinary circumstances or reasons exist, the current owner of the property on which the impact fees were paid may receive a refund of such fees. B. The City shall notify potential claimants by first class mail that they are entitled to a refund. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first -in, first out basis. C. Owners seeking a refund must submit a written request for a refund of the fees to the City within one year of the date the right to claim a refund arises or notice is given, whichever comes later. C. \Documents and Settings \All Users \resktcp\ Kelly \MSDATA \Ordinances`,Fire Impact Fees.doc I.v:ksn 12/10/2008 Page 4 of 6 D Any impact fees for which no application has been made within the one -year period shall be retained by the City and expended on appropriate fire facilities. E. Refunds of impact fees shall include any interest earned on the impact fees by the City. Section 11. Exemptions. The fire impact fees are generated from the formula for calculating the fees as set forth in this ordinance. The amount of the impact fees is determined by the information contained in the adopted fire department master plan and related documents, as appended to the City's Comprehensive Plan. All new development located in the City will be charged a fire impact fee, provided that the following exemptions shall apply. Any development activity or project which has submitted a technically complete building permit application prior to the effective date of this ordinance shall be exempt from the payment of fire impact fees. The following shall be exempt from fire impact fees: 1. Replacement of a structure with a new structure having the same use, at the same site, and when such replacement is within 12 months of demolition or destruction of the previous structure; 2. Alteration or expansion of or remodeling of an existing dwelling or structure where no new units are created and the use is not changed; 3. Construction of an accessory residential structure; 4. Miscellaneous improvements including, but not limited to, fences, walls, swimming pools, and signs; 5. Demolition of or moving an existing structure within the City from one site to another; 6 Low income housing developed by individuals, nonprofit corporations, or a housing authority may be exempted from impact fees at the discretion of City staff subject to: a. Fiscal impact analysis of the effect of impact fees upon low income housing and how exempting housing from impact fees would forward the goals for low income housing in the City and King County; b. That adequate documentation be provided that the housing will remain available for low- income persons for a 10 -year period of time at affordable rents; and c. In the case of owner occupied dwellings, that such housing will be sold or leased at affordable rates to low- income households for a period of 10 years, and d. The impact fee for exempt development shall be calculated as provided by this ordinance and paid with public funds. Such payments may be made by including such amounts in the public share of the system improvements undertaken within the City for fire protection services and facilities. c 7. The alteration, reconstruction, remodeling, or replacement of existing buildings or structures that meet the requirements of this subpart shall be exempt from the requirement to pay all impact fees. To qualify for this exemption, all of the following applicable requirements shall be met: a. For non residential structures, or the non residential part of mixed -use structures, no additional gross floor area may be added. b. For residential structures, or the residential part of mixed -use structures, no additional housing units may be added. C. \Documents and Settin5s \Ail Users \Desktop Kelly \MSDATA Ordinances \Fire Impact Fees.doc LV:ksn 12/10/2008 Page 5 of 6 ylew c. For replacement structures, the structure being replaced shall have been demolished or moved outside the City of Tukwila. Section 12. Authority Unimpaired. Nothing in this ordinance shall preclude the City from requiring the fee payer to mitigate adverse and environmental affects of a specific development pursuant to the State Environmental Policy Act, Chapters 43.21C RCW and /or Chapter 58.17 RCW, governing plats and subdivisions, provided that the exercise of this authority is consistent with Chapters 43.21C and 82.02 RCW. Section 13. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 14. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2008. ATTEST /AUTHENTICATED: Christy O'Flaherty, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Attachments: Exhibit A Tukwila Fire Impact Fees, 2008 Exhibit B Fire Department Capital Facilities List C. \Documents and Settings \All Users Desktop Kelly MSDATA Ordinances Fire Impact Fees.doc LV:ksn 12/10/2008 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number Page 6 of 6 TABLE 1. Tukwila Fire Impact Fee Calculation, 2008 (90% 10% split) Net Growth, 2008 -2020 I Impact Fee 2007 2007 Land Use Housing Employme Housing Building Employme Units -1 nt Z Units -3 Area 4 nt 5 Single family 3,822 1 516 1 Multi- family 4,107 1 2,384 1 1 Office 1 6,245 1 370,500 1 1,482 Retail 1 20,384 1 2,418,000 1 4,836 Industrial 1 20.343 1 3.860,800 1 4,826 TOTALS 1 46.972 1 6,649,300 1 11,144 1. OFM numbers 2. PSRC 2007 Covered Employment Estimates 3. 43 SF dulyr; rest is MP from 2007 Buildable Lands Report 4. Retail: 500gsf per emp; ice: 250gsfper emp; industrial: 2043f per emp; X emp gouth 5. 90% of Buildable Lands Report estimates, at same %as 2007 employment TABLE 2. Tukwila Fire Service Demand Calculation, 2008 Land Use Single family Multi family Office Retail Industrial NET TOTAL PERCENT OF SUBTOTAL Reallocation of Special Property Unclassified 2007 Responses Incident Responses 619 866 445 1.039 362 3,332 13% 19% 10% 22% 8% 71% Fire Dept. Land Use Categories Public Assembly I 12 42 Educational 1 18 1 30 Health Care* 1 27 1 90 Single- family 1 159 1 460 Apartments 1 224 1 570 Boarding House 1 0 1 2 Hotels 1 102 1 203 Business 1 441 1 590 Industrial 1 12 1 2 Manufacturing 1 57 1 47 Storage 1 81 1 163 SUBTOTAL 1 1.133 1 2,199 Fire Aid Special Property 275 1 855 1 Unclassified 148 1 63 1 SUBTOTAL 1 423 1 918 1 TOTAL INCIDENT RESPONSES BY IMPACT FEE CATEGORY split 60% Multi- family, 40% Office (Redmond) split34% Office, 66% Retail (2007 Tukwila) Based on Net Total 19% 26% 13% 31% 11% 100% EXHIBIT A Tukwila Fire Impact Fees, 2008 (90% impact fees; 10% city contribution) Proportion al Incident Reallocatio Responses n of "Other" 249 1 868 349 1 1,215 179 1 625 418 1 1,458 146 508 1,341 1 4,673 Per Residential Unit 5922 51.200 Revised 2007 Responses 19% "26% 13% 31% 11% 100% Other 1,341 29% TOTAL 4,673 10056 100% 1,34I 1 4,673 100% Note: The 55,831,550 capital cost is 90% of$6,479,500 the growth related fire capital cost). TABLE 3. 2007 Incident Responses by Property Type Allocation to Impact Fee Categories IMPACT FEE CATEGORIES Total Single- Multi- Office family family 54 1 1 54 48 1 1 48 117 1 70 1 47 619 1 619 1 794 1 794 1 2 1 2 1 305 1 1 305 1,031 1 1 351 680 14 1 1 104 1 1 244 1 1 3.332 1 619 866 1 445 1,039 19% 26% 13% 31% 1,130 1 1 1 211 1 1 1 1,341 1 I 1 249 349 179 418 Per GFA Per 1,000 Sq. Ft. GFA 51.62 51,624 50.58 5580 50.13 S127 Incident Responses per 1,000 Units 227 296 868 1,215 625 1,458 Increase in Annual Incident Responses due to Growth Incident Capital Costs Allocated by Responses Incident Incident per 1,000 Responses Employees Responses due to Growth 117 8% 5475,668 705 49% 52,861,894 100.0 148 10% 5601,536 71.5 346 24% 51,403,649 25.0 120 8% 5488,804 1,437 100% S5,831,550 Retail Industrial TOTAL 14 104 244 362 3,332 146 1,341 508 4,673 100% S5,831,550 Fire Department Capital Facilities List EXHIBIT B Capital Facility Cost 1. Construct/build relocated Station 51 5,000 gsf $2,000,000 addition due to new growth in TUC 2. Purchase aid car for Station 51 (new) $1 85,000 3. Purchase engine for Station 54 to replace aerial $750,000 ladder truck 4. Purchase land for relocated Station 52, if Station 51 $544,500 is relocated 5. Construct/build relocated Station 52, if Station 51 is $3,000,000 relocated 1 5,000 gsf building addition x $400 /psf building construction cost 2 acre site (21,780 sf) x $25 /psf land cost 3 7,500 gsf building x $400 /psf building construction cost TOTAL $6,479,500 C:\Documents and Settings\All Users Desktop \Kelly\MSDATA\Ordinances\Fire Impact Fees Exhibit B Capital Facilities List.doc LV:ksn 12/4/2008 Page 1 of 1 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING THE ASSESSMENT OF PARKS IMPACT FEES ON NEW RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL DEVELOPMENT IN THE CITY; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to the Growth Management Act of the State of Washington and RCW 36.70A, the City of Tukwila has an adopted Comprehensive Plan, which includes provisions for parks facilities as part of its Capital Facilities Element; and WHEREAS, RCW 82.02.050 authorizes cities to impose impact fees on development activity as part of the financing for public facilities, including parks facilities; and WHEREAS, the Tukwila City Council desires to provide funding for parks facilities, as referenced in the Capital Facilities Element of the Comprehensive Plan, through the imposition of residential and non residential development impact fees beginning January 1, 2009; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Findings. The City Council finds and determines that new growth and development in the City creates additional demand and need for public parks facilities in the City, and the City Council finds that new growth and development should pay its proportionate share of the costs for new parks facilities to serve new growth and development in the City The City Council believes that this can be accomplished by the assessment of parks impact fees on new residential, commercial, and industrial development in the City. It is the Council's intent that the provisions of this ordinance be liberally construed in establishing the parks impact fee program. Section 2. Definitions. Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when given their usual and customary meaning. For the purposes of this ordinance, unless the context or subject matter clearly requires otherwise, the words or phrases defined in this section shall have the following meanings: 1. The "Act" means the Growth Management Act, Chapter 17, Laws of 1990, First Extraordinary Session, Chapter 36.70A RCW et seq., and Chapter 32, Laws of 1991, First Special Session, as now in existence or hereinafter amended. 2. "Building permit" means an official document or certification of the City of Tukwila issued by the City's building official which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement, demolition, moving, or repair of a building or structure. 3. "City" means the City of Tukwila, Washington, County of King. 4. "Development activity" means any construction of a building or structure that creates additional demand and need for parks facilities. C: \Documents and Settings \All Users Desktop Kelly \MSDATA \Ordinances \Parks Impact Fees.doc LV:ksn 12/10 /2008 Page 1 of 6 5. "Development approval" means any written authorization from the City, which authorizes the commencement of the "development activity 6. "Encumber" means to reserve, set aside, or earmark the parks impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of parks services. 7 "Fee payer" is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity that requires a building permit and creates a demand for additional parks capital facilities. 8. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this ordinance as a condition of granting development approval in order to pay for the parks facilities needed to serve new growth and development that is a proportionate share of the cost of parks capital facilities that is used for facilities that reasonably benefit new development. Impact fees do not include a reasonable permit fee, an application fee, and the administrative fee for collecting and handling parks impact fees or cost of reviewing independent fee calculations. 9. "Owner" means the owner of record of real property, as found in the records of King County, Washington, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the property 10. "Proportionate share" means that portion of the cost for parks facility improvements that are reasonably related to the service demands and needs of new development. 11. "Public facilities" means the following capital facilities owned or operated by governmental entities: (1) public streets and roads; (2) publicly owned parks and open spaces and recreational facilities; (3) school facilities; (4) fire protection facilities not part of a fire district; and (5) police facilities and essential public facilities as defined by Chapter 36.70A RCW. Section 3. Parks Impact Fee Assessment. A. The City shall collect parks impact fees from applicants seeking development approvals from the City for any development activity in the City for which building permits are required, effective January 1, 2009 This will include the expansion of existing uses, which create the demand for parks services. B. Parks impact fees shall be assessed at the time of a technically- complete building permit application that complies with the City's zoning ordinances and building and development codes. Parks impact fees shall be collected from the fee payer at the time the building permit is issued. C. Except if otherwise exempt, the City shall not issue the required building permit unless or until the parks impact fees are paid. Section 4. Use of Parks Impact Fees. A. Pursuant to this ordinance, parks impact fees shall be used for parks facilities that will reasonably benefit the City and its residents. B. Fees shall not be used to make up deficiencies in City facilities serving an existing development. C. Fees shall not be used for maintenance and operations, including personnel. C. \Documents and Settings \All Users Desktop Kelly \N35DATA \Ordinances \Parks Impact Fee<. LV:ksn 12/10/2008 Page 2 of 6 D. Parks impact fees shall be used for but not limited to land acquisition, site improvements, engineering and architectural services, permitting, financing, administrative expenses and applicable mitigation costs, and capital equipment pertaining to parks facilities. E. Parks impact fees may also be used to recoup public improvement costs incurred by the City to the extent that new growth and development will be served by the previously constructed improvement. F. In the event bonds or similar debt instruments are or have been issued for parks facility improvements, impact fees may be used to pay the principal on such bonds. Section 5. Parks Impact Fee Capital Facilities Plan. In order to collect parks impact fees, the City must first adopt a parks capital facilities plan as an element of the City's Comprehensive Plan. The City's Capital Facilities Plan for parks services shall consist of the following elements: 1. The City's capacity over the next six years, based on an inventory of the City's parks facilities both existing and under construction; 2. The forecast of future needs for parks facilities based upon the City's population projections; 3. A six-year financial plan component, updated as necessary, to maintain at least a six -year forecast for financing needed within projected funding levels; 4. Application of the formula set forth in this ordinance based upon the information in the Capital Facilities Plan; and 5. City Council Action. No new or revised impact fee shall be effective until adopted by the City Council following a duly advertised public hearing to consider the City's Capital Facilities Plan or plan update. Section 6. Parks Impact Fee Formula. The impact fee formula is based on the assumptions found in Tukwila Parks Impact Fees, 2008, Exhibit A, and Tukwila Parks Capital Facilities List, Exhibit B, attached hereto and by this reference fully incorporated herein. PARKS IMPACT FEE CALCULATIONS Impact Fee 1 Land Use Per Residential Unit Per 1,000 Sq. Ft. GFA 1 Single Family $1,426 Multi- Family $1,398 Office $837 Retail 5419 Industrial $262 Section 7. Parks Impact Fee Adjustments. A. The City may adjust a parks impact fee at the time the fee is imposed to consider unusual circumstances in specific cases to ensure that impact fees are imposed fairly. B. In calculating the fee imposed on a particular development, the City shall permit consideration of studies and data submitted by a developer to adjust the amount of the fee. The developer shall submit an independent fee calculation study to the Director of Parks and Recreation, who shall review the study to determine that the study: C: \Documents and Settings \All Users Desktop Kelly \MSDATA \Ordinancesiparks Impact Fees doc LV:kan 12/10/2008 Page 3 of 6 1. is based on accepted impact fee assessment practices and methodologies; 2. uses acceptable data sources and the data used is comparable with the uses and intensities planned for the proposed development activity; 3. complies with the applicable state laws governing impact fees; 4. is prepared and documented by professionals who are mutually agreeable to the City and the developer and are qualified in their respective fields; and 5. shows the basis upon which the independent fee calculation was made. C. In reviewing the study, the Director of Parks and Recreation may require the developer to submit additional or different documentation. If an acceptable study is presented, the Director of Parks and Recreation may adjust the fee to that appropriate for the particular development activity. If an acceptable study is not presented, the developer shall pay the impact fees required prior to submitting the study D A developer requesting an adjustment or independent fee calculation may pay the impact fees imposed by this Ordinance to obtain a building permit while the City determines whether to partially reimburse the developer by making an adjustment or accepting the independent fee calculation. Section 8. Credits. A fee payer can request that a credit, or credits, be awarded to the fee payer for the value of dedicated land, improvements to, or new construction of any system improvements provided by the developer to facilities that are identified in the Capital Facilities Plan and that are required by the City as a condition of approving the development activity. Section 9. Appeals. A. Any fee payer may pay the impact fees imposed by this ordinance under protest in order to obtain a building permit. B. Appeals regarding parks impact fees imposed on any development activity may only be taken by the fee payer of the property where such development activity will occur. No appeal shall be permitted unless and until the impact fee at issue has been paid. C. Determinations of the City staff with respect to the applicability of parks impact fees to a given development activity, or the availability of a credit, can be appealed to the City's Hearing Examiner pursuant to this section. D. An appeal shall be taken within 10 working days of payment of the impact fees under protest or within 10 working days of the City's issuance of a written determination of a credit or exemption decision by filing with the City Clerk a notice of appeal giving the reasons for the appeal with an accompanying appeal fee as set forth in the existing fee schedule for land use decisions. Section 10. Refunds. A. If the City fails to expend or encumber the impact fees within six years from the date the fees were paid, unless extraordinary circumstances or reasons exist, the current owner of the property on which the impact fees were paid may receive a refund of such fees. B. The City shall notify potential claimants by first class mail that they are entitled to a refund. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first -in, first out basis. C: \Documents and Setting \All Users Desktop Kelly \MISDATA Ordinances \Parks Impact Fes.doc LV:ksn 12 /10/2008 Page 4 of 6 C. Owners seeking a refund must submit a written request for a refund of the fees to the City within one year of the date the right to claim a refund arises or notice is given, whichever comes later. D. Any impact fees for which no application has been made within the one -year period shall be retained by the City and expended on appropriate parks facilities. E. Refunds of impact fees shall include any interest earned on the impact fees by the City. Section 11. Exemptions. The parks impact fees are generated from the formula for calculating the fees as set forth in this ordinance. The amount of the impact fees is determined by the information contained in the adopted parks master plan and related documents, as appended to the City's Comprehensive Plan. All new development located in the City will be charged a parks impact fee, provided that the following exemptions shall apply. Any development activity or project which has submitted a technically complete building permit application prior to the effective date of this ordinance shall be exempt from the payment of parks impact fees. The following shall be exempt from parks impact fees: 1. Replacement of a structure with a new structure having the same use, at the same site, and when such replacement is within 12 months of demolition or destruction of the previous structure; 2. Alteration or expansion of or remodeling of an existing dwelling or structure where no new units are created and the use is not changed; 3. Construction of an accessory residential structure; 4. Miscellaneous improvements including, but not limited to, fences, walls, swimming pools, and signs; 5. Demolition of or moving an existing structure within the City from one site to another; 6. Low income housing developed by individuals, nonprofit corporations, or a housing authority may be exempted from impact fees at the discretion of City staff subject to: a. Fiscal impact analysis of the effect of impact fees upon low- income housing and how exempting housing from impact fees would forward the goals for low- income housing in the City and King County; b. That adequate documentation be provided that the housing will remain available for low- income persons for a 10 -year period of time at affordable rents; and c. In the case of owner- occupied dwellings, that such housing will be sold or leased at affordable rates to low income households for a period of 10 years; and d. The impact fee for exempt development shall be calculated as provided by this ordinance and paid with public funds. Such payments may be made by including such amounts in the public share of the system improvements undertaken within the City for parks services and facilities. 7. The alteration, reconstruction, remodeling, or replacement of existing buildings or structures that meet the requirements of this subpart shall be exempt from the requirement to pay all impact fees. To qualify for this exemption, all of the following applicable requirements shall be met: C: \Documents and Settings \All Users Desktop Kelly MSDATA Ordinances Parks Impact Fedcc LV:Iksn 12/10/2008 Page 5 of 6 a. For non residential structures, or the non residential part of mixed -use structures, no additional gross floor area may be added. b. For residential structures, or the residential part of mixed -use structures, no additional housing units may be added. c. For replacement structures, the structure being replaced shall have been demolished or moved outside the City of Tukwila. Section 12. Authority Unimpaired. Nothing in this Ordinance shall preclude the City from requiring the fee payer to mitigate adverse and environmental affects of a specific development pursuant to the State Environmental Policy Act, Chapters 43.21C RCW and/ or Chapter 58.17 RCW, governing plats and subdivisions, provided that the exercise of this authority is consistent with Chapters 43.21C and 82.02 RCW. Section 13. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 14. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE C1 lY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2008. ATTEST /AUTHENTICATED: Christy O'Flaherty, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council. Published: Effective Date: Ordinance Number: Attachment: Tukwila Parks Impact Fees, 2008, Exhibit A Tukwila Parks Capital Facilities List, Exhibit B C. Document s and Setting \All Users Desktop Kelly \VISDATA \Ordinances \Parks Impact Fees.dc LV:ksn 12/10 /2008 Page 6 of 6 TABLE 1: 2008 Park Impact Fee Calculations (80% 20% split) Land Use 1Single- family 3,822 1 4,338 Multi- family 4,107 1 6,491 Office 6,245 1,561,250 7,727 1,931,750 Retail 20,384 10,192,000 25,220 12,610,000 (Industrial 20,343 16,274,400 1 25,169 20,135,200 TOTALS 7,929 46,972 28,027,650 1 10,829 58,116 34,676,950 1 OFM 2. PSRC 2007 Covered Emplooyment Estimates 3. Retail: S00gsf per emp; Office: 250gsf per emp; Industrial: 800gsf per emp; X emp growth 4 43 SF du/yr; rest is MF from 2007 Buildable Lands Report 5 90% of Buildable Lands Report estimates, at same as 2007 employment 6. Tukwila Resident/Non-Tukwila resident breakdown based on 2000 census data In 2000, the number of residents who live and work in Tukwila is 1,502, out of a population of 17,181, or 9% Land Use Single family Multi-family Office Retail Industrial TOTALS Land Use 1 Single family 1 Multi- family Office Retail 1 Industrial TOTALS 2007 2007 2007 Building 2020 Housing 2020 2020 Building Housing Employment Area -3 Units Employme Area Units -1 2 nt Net Growth, 2008 2020 Housing Employment Building Area Employment: Units 4 5 3 Tukwila Residents 9% 6 516 2,384 1,482 370,500 4,836 2,418,000 4,826 3,860,800 2,900 11,144 6,649,300 EXHIBIT A Tukwila Parks Impact Fees, 2008 (80% impact fees; 20% city contribution) 133 435 434 1,003 Employme nt: Non Tukwila Residents 91% 6 1 1,349 4,401 4,392 10,141 Impact Fee Persons Use Ratio Total Use by Use by Cost Per Housing Per 1,000 Rounded per Between Land Use Land Use Allocation Unit GFA** Housing Residents/ Category Category Unit Employees 2.54 2.44 3,198 1 11.49% $735,607 1 S1,425.59 S1,426 2.49 2.44 14,484 1 52.06% 53,331,7151 S1,397.53 81,398 1.00 1,349 1 4.85% S310,214 S837.29 S837 1.00 4,401 1 15.82% 51,012,279 5418.64 $419 1.00 4,392 15.78% 51,010,185 1 S261 65 $262 27,823 100 00% S6.400,000 Note: 56,400,000 is 80% of 58,000,000 Tukwila Parks Capital Facilities List EXHIBIT B Project List Impact Fees 2009 to 2015 Project Cost Duwamish Riverbend Hill Develop Phase II 2,000,000 Trail Connections Green River Trail to Renton 500,000 Black/Cedar River Trail Tukwila Pond Development Phase IV 3,000,000 City of Tukwila Pool [Extend land lease]; expand features 500,000 and services TOD Pedestrian Bridge Sounder Connection 2,000,000 Total $8,000,000