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HomeMy WebLinkAboutCOW 2008-12-08 Item 4E - Ordinance - Fire and Parks Impact FeesCAS NUMBER 08-146 COUNCIL AGENDA SYNOPSIS Meeting Date 11/24/08 12/01/08 12/08/08 12/15/08 Imtla /s Prepared by illayor s review Council review LV ,,t --G- I LV A-e -L-- It LV AA �..-G ..7, LV I I ITEM INFORMATION AGI.:ND.\ Tr!J Ordinances for Fire and Parks Impact Fees Ex1 NDrrum. RJ QuIRED 1QRIGINAL AGENDA D, TIl. NOVEMBER 24, 2008 Discttsrion Motion Resolution Ordinance n Bid Award Public Hearing Other dltg Date 12/8/08 tlltg Date lltg Date Altg Date 12/15/08 lltg Date illtg Date 11/24/08 lltg Date SPONSOR Council Mayor Adrrt Svcs DCD Finance Fire Legal P &R Police n PW/ SPONSOR'S Discussion regarding adoption of impact fees for Fire and impact fees for Parks. Decisions SU\IM \R'' 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. Ri;.\'tl..\vi BY COW Mtg. CA &P Cmte F &S Cmte Utilities Cmte n Arts Comm. Parks Comm. Planning Comm. Li Transportation Cmte DA1E: 11/18 F &S 12/2 (action); 11/24 BE 12/8 CAP (info only) RECOMMENDATIONS: SPONsoR /ADMIN Approve and forward to COW for discussion C)MMT1TEE Forward to Committee of the Whole for discussion COST IMPACT FUND SOURCE MTG. DATE RECORD OF COUNCIL ACTION 11/24/08 Forward to 12/1/08 Regular Meeting 12/01/08 Forward to 12/8/08 Committee of the Whole MTG. DATE I ATTACHMENTS 11/24/08 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 12/1/08 Ordinances with Attachments 12/8/08 Informational memorandum dated 12/3/08 Ordinances with Attachments Minutes from the Finance Safety Committee meeting of 12/2/08 'TEAT No. Fund Source: REVENUE IS FROM IMPACT FEES; PROJECTS ARE NOT CONSTRUCTED UNLESS FUNDS ARE AVAILABLE Continents: AMOUNT BUDGETED APPROPRIATION REQUIRED To: Committee of the Whole (COW) CC: Mayor Haggerton Rhonda Berry FROM: Lisa Verner, Mayor's Office Nick Olivas, Fire Chief Rick Still, Deputy Parks Director DATE: December 3, 2008 (REVISED) RE: FIRE AND PARKS IMPACT FEES INFORMATION MEMORANDUM This information memorandum has been revised twice to address new infoiiiiation. One update is as of December 3 and one is as of December 2. The original document begins on page 5. 2"D REVISION NEW INFORMATION (as of December 3, 2008) The Finance Safety Committee reviewed impact fees for both fire and parks services at it's meeting on December 2, 2008. The Committee discussed a spreadsheet on impact fee payment examples (Attachment A), a memo from Derek Speck to Lisa Verner (Attachment B), and the Mayor's recommendations on impact. fee (Attachment C). The Committee addressed the following questions: 1. Do you want to adopt impact fees 2. If yes, which projects do you want to include? What is the total cost? 3. Of the total cost, how much do you want to fund through impact fees and how much do you want the city to contribute? 4. For Parks, what is the split between residential and commercial land uses? The Finance Safety Committee unanimously recommended adoption of both fire and parks impact fees and the following: COW Information Memorandum December 3, 2008 Page2of7 FIRE PARKS Capital Facilities List: $6,479,500 Capital Facilities List: $8,000,000 Split: 90% 10% Split: 80% 20% Fees Fees: SF 922 SF $1,426 MF $1,200 MF $1,398 Office $1,624 Office S 837 Retail 580 Retail S 419 Industrial 127 Industrial 262 The Committee reviewed the use ratio between residents and employees of 2.44 -to -1 (as part of the park impact fee calculation) and forwarded it to COW for discussion without making a recommendation. Mayor's Recommendations The Mayor's recommendations on impact fees (Attachment B) were presented to the Finance Safety Committee on December 2, 2008 and are as follows: FIRE PARKS Capital Facilities List: $6,479,500 Capital Facilities List: 58,000,000 Split: 90% 10% Split: 80% 20% Fees Fees: SF 922 SF 51,426 MF 51,200 MF 51,398 Office 51,624 Office 837 Retail 580 Retail 5 419 Industrial 127 Industnal S 262 The revised list of Parks capital facilities projects and costs (which now total 58,000,000) is shown on the third page of Attachment B. COW Infonnation Memorandum December 3, 2008 Page 3 of 7 l REVISION INCLUDED IN FINANCE SAFETY PACKET FOR DECEMBER 2 INFORMATION AND COUNCIL QUESTIONS (as of December 2, 20081 1. Problem Statement The City of Tukwila expects both commercial and residential growth through 2020. It has adopted a Parks level of service and will adopt a Fire level of service. In order to maintain the existing levels of service for growth and new development, the City must provide new park capital facilities and new fire capital facilities. The City's financial resources are not sufficient to fund the fire and parks capital facilities necessitated by new growth. It needs to find additional revenue sources to help pay for these capital facilities over the next 12 years. 2. Redevelopment The ordinances are drafted to say that any new, additional square footage for which a building permit is issued will be assessed a fire and a parks impact fee. A change of use does not trigger the application of impact fees. So, if a warehouse adds a second floor and turns into an office building, the applicant pays impact fees based on the second floor square footage (new addition) but not on the original square footage. This holds even if there are more people on the first floor under the office use. However, if the warehouse turns into an office use but does not add any more square footage, the applicant does not pay any fire or parks impact fees. With respect to the City's existing traffic impact fees, the applicant is charged a traffic impact fee when the use changes, in addition to when new square footage is added. In the example above, the applicant would pay a traffic impact fee in both cases (with and without a new second floor, when the use changes). 3. Payment Examples Below are examples of fire and parks impact fee assessments for several development projects in Tukwila. The table shows what would have been paid at the time a building permit was issued if the City had adopted fire and parks impact fees. The calculations are based on total capital projects costs of $6,479,500 for Fire with a 90 -10% split and $8,000,000 for Parks with a 80 20% split between fees and city contributions. FIRE $6,479,500 in capital projects (90 -20% split) Project Land Use Square Category Footage/Dwelling Units Retail 230,444 Wig development! Southcenter Square Parkway Place 16400 Southcenter Pkwy New Bank of America Office Office 66,000 7,451 I Impact Fee per Impact Fee 1,000 gsf or per Assessment Dwelling Unit $580 $133,658 1,624 107,184 $1,624 512,100 COW Information Memorandum December 3, 2008 Page 4 of 7 I building (at mall) f Tukwila Village Multi Wig development/ Southcenter Square Parkway Place 16400 Southcenter Pkwy New Bank of America building (at mall) Tukwila Village family Retail Office PARKS $11,250,000 in capital projects (90 -10% split) Project Land Use Square Category Footage/Dwelling Units 230,444 Retail Office Office Multi- family Retail Office I 144 52,000 2,000 1 66,000 7,451 144 52,000 12,000 $1,200 $580 $1,624 Impact Fee per 1,000 gsf or per Dwelling Unit $662 $1,325 $1,325 $2,211 $662 $1,325 $172,800 $30,160 $3,248 Impact Fee Assessment $152,554 $87,450 $9,873 $318,384 $34,424 1 $2,650 4. Parks Capital Facilities List (Southgate Park) As a result of Council discussion at COW on November 24, staff has taken Southgate Park off the list of Parks Capital Facilities to be funded by impact fees. This brings the total cost of the remaining projects to $11,250,000. A 90 -10% split means the impact fees fund $10,125,000 and the City must fund $1,125,000 from the General Fund. An 80 -20% split means the impact fees fund $9,000,000 and the City must fund $2,250,000 from. the General Fund. 5. Parks Use Ratios The Use Ratio used in the Impact Fees formula was derived from an analysis of the pass holder's use for the past year. Every time a person uses their pass to use the Tukwila Community Center the computer collects that information. We were able to determine from this sampling that a resident uses their facility pass 2.44 times more than a business pass holder. Therefore, we are equating using a 1:2.44 ratio in allocating impact fees. We will attempt to collect data in more areas of the Parks Recreation Department Services for a larger sampling in the future. The City of Tukwila is unique with having 70% or more of its users of the Golf Course, Community Center and Pool being nonresidents. Our current and past residents have paid for the established or current Level -of- Service in the City. It makes sense that future residential and commercial growth pay for future needed Park, Recreation and Open Space facilities to maintain COW Information Memorandum December 3, 2008 Page5of7 this quality of life in the City of Tukwila. The City needs to have another funding mechanism for parks other than the General Fund or we will not be able to maintain our current level of service. PREVIOUS INFORMATION (November 18. 2008) ISSUE Adopt an ordinance for Fire impact fees and an ordinance for Parks impact fees, both for funding of capital facilities needed by Fire services and Parks services due to anticipated new growth and development. BACKGROUND The Administration is evaluating new sources of revenue for the City. One such source is "impact fees" through which new development helps to pay for capital facilities necessitated due to the new growth. Mayor Haggerton 's goal is to analyze options and to adopt impact fees by the end of 2008. The Growth Management Act allows impact fees for parks services and for fire services, in addition to the traffic impact fees the City has already enacted. In order to consider and adopt impact fees, the City needs to have adopted a Fire Master Plan and identified a level of service goal for fire services. The 2008 Fire Master Plan, the Mayor's recommendations on implementation, and the Level of Service for the Fire Department are scheduled for adoption by Council on December 1, 2008. The City also needs to have an adopted Parks master plan and identified level of service. The Parks, Recreation and Open Space Plan was adopted in June, 2008. The Parks Level of Service is scheduled for adoption by the Council on November 17, 2008. Additionally, RCW 82.02.050 (4) says, in part: Impact fees may be collected and spent only for the public facilities defined in RCW 82.02.090 which are addressed by a capital facilities element of a comprehensive land use plan adopted pursuant to the provisions of RCW 36.70A.070 An ordinance to amend the Capital Facilities Element of the City's Comprehensive Plan is before the COW on November 10 for public hearing and discussion. It is scheduled for adoption on December 1. Among other things, the amendment will incorporate by reference the 2008 Fire Master Plan and the 2008 Parks, Recreation and Open Space Plan, as amended. The Parks LOS ordinance includes list of Parks capital projects (some of which will be paid for through impact fees) amends the Parks Plan and is scheduled for discussion at the November 10 COW and for adoption on November 17. The Fire Master Plan, which includes Fire capital projects (some of COW Info/illation Memorandum December 3, 2008 Page 6 of 7 which will be paid for through impact fees) is scheduled for adoption on December 1. Then the City will be consistent with RCW 82.02.050 (4). A public hearing on impact fees is advertised for November 24, 2008. DISCUSSION The State Legislature authorized impact fees when it adopted the Growth Management Act in 1990 as one mechanism to help communities address growth. According to RCW 82.02.050 (1), it is the intent of the State Legislature: (a) To ensure that adequate facilities are available to serve new growth and development; (b) To promote orderly growth and development by establishing standards by which counties, cities, and towns may require, by ordinance, that new growth and development pay a proportionate share of the cost of new facilities needed to serve new growth and development; and (c) To ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same impact. Impact fees can be assessed for traffic, parks, fire and schools. The City already assesses a traffic impact fee. The Mayor is asking the Council to consider assessing a parks impact fee and a fire impact fee. None of the school districts which serve Tukwila have asked the City to collect a school impact fee on their behalf. Impact fees are used to provide funds for capital projects or capital facilities which are needed because of new growth. They are used to fund projects which maintain the same level of service for new growth as is provided for existing development. They may not be used for projects which are needed due to current deficiencies in public facilities serving existing development. In essence, impact fees are a mechanism for "growth to pay for growth." For consideration are two ordinances, one for impact fees for fire services and one impact fees for parks services. The text of the ordinances is similar. The ordinances address the fee formula, adjustments, credits, appeals, refunds and exemptions as well as use of the impact fees. Also, each ordinance includes a spreadsheet for calculating an impact fee and a list of projects for which the impact fee would be collected. Conceptually, the fee formula identifies the anticipated growth between 2009 and 2020 (12 years) in several land use categories and the cost of capital facilities needed to serve that growth and divides the two. The variables include the request for service (either calls for fire /aid service per land use category or amount of parks needed per resident) and the growth anticipated in each land use category. Because the City has a strong track record of both COW Information Memorandum December 3, 2008 Page 7 of 7 residents and enzployees using park facilities and fire services, an impact fee for commercial /industrial uses as well-as an impact fee for residential uses is proposed. Attached are two pages of Options for impact fees (kind of a sensitivity analysis). One is for parks (Attachment A) and one is for fire (Attachment B). At the bottom of each sheet is information on the relevant impact fees assessed by other jurisdictions. Each Options page compares differing project totals, differing City contributions, and differing impact fees for several different land use categories. For example, the Parks Impact Fee Options page shows $12,250,000 as the total amount of projects. Next it shows what the impact fees would generate over 12 years if impact fees paid for 90% of the total and what the City's 10% contribution would be. Below that is shown the znzpact fee per single family house, per multi family dwelling unit, per 1,000 gsf of office use, per 1,000 gsf retail use and per 1,000 gsf of industrial use. The next block to the right shows the results of impact fees generating 80% of the funds and the City contributing 20 The block on the far right shows a 70 -30% split. Finally, the same 90 -10 80 -20 70 -30% splits are shown if $8,750,000 is the total amount of the projects. The same kind of comparison is offered on the Fire Impact Fee Options page. Council members may choose which impact fee /city contribution split results in acceptable levels of impact fees. RECOMMENDATION Adopt an ordinance which authorizes assessment of znzpact fees for capital facilities for Fire services needed due to new growth Adopt an ordinance which authorizes assessment of impact fees for capital facilities for Parks services needed due to new growth NOTE: ATTACHMENTS HAVE BEEN REVISED BASED ON THE NEW INFORMATION; FOR OLD ATTACHMENTS, PLEASE REFER TO 11/24/08 PACKET Attachment A: Attachment B: Attachment C: Impact Fee Payment Examples (1 page) Memo from Derek Speck to Lisa Verner (4 pages) Mayor's Recommendations (7pages) ATTACHMENT A IMPACT FEE PAYMENT EXAMPLES 12-2-08 Date: November 30, 2008 To: Lisa Verner, Project Manager Copy: Mayor City Administrator Finance Director From: Economic Development Administrator Re: Impact Fees Effect on New Development Attachment B City of Tukwila Jim Haggerton, Mayor Office of the Mayor 6200 Southcenter Boulevard Tukwila, WA 98188 www.ci.tukwila.wa.us I have attached two spreadsheets that estimate the cost of the proposed development impact fees relative to the cost of new construction and to a monthly lease rate. These estimates are very approximate and reflect a number of assumptions that are listed on the attachment. All assume a Fire Department project list totalling $6,479,500. Assuming the Parks Department list of projects totals $11,250,000: o As a percent of the cost of new construction, the impact fees would range from a low of 0.4% to a high of 1.7 depending on assumptions and product type. o As a percent of a monthly lease rate, the impact fees would range from a low of 0.5% to a high of 2.8 depending on assumptions and product type. Assuming the Parks Department project list totals $6,750,000: o As a percent of the cost of new construction, the impact fees would range from a low of 0.3% to a high of 1.3 depending on assumptions and product type. o As a percent of a monthly lease rate, the impact fees would range from a low of 0.4% to a high of 2.0 depending on assumptions and product type. I am not aware of any way to determine conclusively whether the proposed impact fees would cause us to lose new development. One significant factor to consider is how competive a particular product type is (e.g. retail or office). For example, I think our Southcenter area is strong in terms of retail compared to our competitors but we are in fairly tight competition for high quality office space. At the levels proposed, especially with the $6.75 million Parks project list, I think it is unlikely that we would lose development. Please contact me at 206 433 -1832 or dspeck @ci.tukwila.wa.us if you have any questions. Impact Fees Comparisons to New Development Costs DRAFT 11/30/08 Based on assumptions: Parks 11,250,000 Fire 6,479,500 90% of cost paid by development impact fee 10% of cost paid by city Parks SF 2,255 MF 2,211 Office 1,325 Retail 662 Industrial 414 6,867 Fire 922 1,200 1,624 580 127 4,453 Comparision of Impact Fee to Cost of Development Impact Fee Cost/Unit Units SF 3,177 dwelling unit MF 3,411 dwelling unit Office 2.95 square foot Retail 1.24 square foot Industrial 0.54 square foot Impact Fees 250,000 200,000 200 150 75 Comparision of Impact Fee to Monthly Lease Rate SF MF Office Retail Industrial Impact Fee Cost/Unit Units 3,177 dwelling unit 3,411 dwelling unit 2.95 square foot 1.24 square foot 0.54 square foot Total Units 3,177 Dwell unit 3,411 Dwell unit 2,949 1,000 SF 1,242 1,000 SF 541 1,000 SF 11,320 Typical Construction Cost Per Unit Low High 500,000 300,000 300 300 150 Typical Monthly Lease Rate Per Unit Low N/A 1,400 2.00 2.00 0.50 High N/A 1,800 2.50 3.00 0.75 Impact Fee of Cost Low High 0.6% 1.3% 1.1% 1.7% 1 0% 1.5% 0.4% 0.8% 0 4% 0 7% Impact Fee Added To Lease N/A $38 62 $0 03 $0.01 $0 01 Impact Fee of Lease Rate Low High N/A N/A 2.1% 2.8% 1.3% 1.7% 0.5% 0.7% 0.8% 1.2% Assumptions Lease rates are based on new construction. Multifamily lease rates assume 1,000 square foot, 2 bedroom apartment. Retail lease rates based on single story, surface parked, direct entry, box retail in Southcenter area. Calculation of impact fee added to lease assumes initial impact fee is amortized over a 10 year lease at 6% interest. Based on impact fee data Attachments A -2 and B -2 from staff report for F &S 12/2/08 revised version 12/1/09. Economic Development Analysis 1/1 Printed 12/03/2008 6 14 PM Impact Fees Comparisons to New Development Costs DRAFT 11/30/08 Based on assumptions: Parks 6,750,000 Fire 6,479,500 90% of cost paid by development impact fee 10% of cost paid by city SF MF Office Retail Industrial Parks 1,353 1,327 795 397 248 4,120 Comparision of Impact Fee to Cost of Development Impact Fee Cost/Unit Units SF 2,275 dwelling unit MF 2,527 dwelling unit Office 2.42 square foot Retail 0.98 square foot Industrial 0.38 square foot Comparision of Impact Fee to Monthly Lease Rate SF MF Office Retail Industrial Impact Fee Cost/Unit Units 2,275 dwelling unit 2,527 dwelling unit 2.42 square foot 0.98 square foot 0.38 square foot Impact Fees Fire Total 922 2,275 1,200 2,527 1,624 2,419 580 977 127 375 4,453 8,573 Units Dwell unit Dwell unit 1,000 SF 1,000 SF 1,000 SF Typical Construction Cost Per Unit Low 250,000 200,000 200 150 75 High 500,000 300,000 300 300 150 Typical Monthly Lease Rate Per Unit Low N/A 1,400 2.00 2.00 0.50 High N/A 1,800 2.50 3.00 0.75 Impact Fee of Cost Low High 0.5% 0.8% 0 8% 0.3% 0.3% Impact Fee Added To Lease N/A $28.61 $0.03 $0.01 $0 00 0.9% 1.3% 1.2% 0 7% 0 5% Impact Fee of Lease Rate Low N/A 1.6% 1.1% 0.4% 0.6% High N/A 2.0% 1.4% 0 6% 0 8% Assumptions Lease rates are based on new construction. Multifamily lease rates assume 1,000 square foot, 2 bedroom apartment. Retail lease rates based on single story, surface parked, direct entry, box retail in Southcenter area. Calculation of impact fee added to lease assumes initial impact fee is amortized over a 10 year lease at 6% interest. Based on impact fee data Attachments A -2 and B -2 from staff report for F &S 12/2/08 revised version 12/1/09 Economic Development Analysis 1/1 Printed: 12/03/2008 6 14 PM Impact Fees Comparisons DRAFT 11/24/08 Based on: Parks 12,250,000 Fire 6,479,500 90% of fee paid by development Comparison of Parks Vs Fire Spread Across Development Types Parks Fire SF 2,518 34% 922 21% MF 2,420 32% 1,200 27% Office 1,421 19% 1,624 36% Retail 710 9% 580 13% Industrial 444 6% 127 3% 7,513 100% 4,453 100% Mayor's Recommendation Impact Fees 12 -2 -08 FIRE Capital Facilities List: $6,479,500 Split: 90% 10% Fees SF 922 MF $1,200 Office $1,624 Retail 580 Industrial 127 PARKS Capital Facilities List: $8,000,000 Split: 80% 20% Fees: SF $1,426 MF $1,398 Office 837 Retail 419 Industrial 262 TOTAL Fees: SF $2,348 MF $2,598 Office $2,461 Retail 999 Industrial 389 Attachment C Examples of Impact Fee Payments: FIRE $6,479,500 in capital projects (90 -10% split) Project Land Use Category Wig development/ Southcenter Square Parkway Place 16400 Southcenter Pkwy New Bank of America building (at mall) Tukwila Village PARKS $8,000,000 in Project Wig development/ Southcenter Square Parkway Place 16400 Southcenter Pkwy New Bank of America building (at mall) Tukwila Village 1 1 Retail Office Office Multi- family Retail 1 Office 1 Office Office Multi- family Retail I Office 1 Square Footage/Dwelling Units 230,444 66,000 7,451 144 52,000 1 2,000 1 capital projects (80 -20% split) Land Use Square Category Footage/Dwelling Units Retail 230,444 66,000 7,451 144 52,000 1 2,000 1 Impact Fee per 1,000 gsf or per Dwelling Unit $580 $1,624 $1,624 $1,200 $580 1 $1,624 1 Impact Fee per 1,000 gsf or per Dwelling Unit $419 $837 $837 $1398 $419 1 $837 1 Impact Fee Assessment $133,658 $107,184 $12,100 $172,800 $30,160 $3,248 Impact Fee Assessment $96,556 $55,242 $6,237 $201,312 $21,788 $1,674 1 Tukwila Parks Capital Facilities List 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 TABLE 1: 2008 Park Impact Fee Calculations Land Use 516 2,384 1,482 1 370,500 133 4,836 2,418,000 435 4,826 1 3,860,800 434 2,900 11,144 1 6,649,300 1,003 Tukwila Parks Impact Fees, 2008 2007 2007 2007 Building 2020 Housing 2020 2020 Building Housing Employment Area -3 Units Employme Area Units -1 2 nt Single- family 3,822 4,338 Multi- family 4,107 6,491 Office 6,245 1,561,250 7,727 1 1,931,750 Retail 20,384 1 10,192,000 25,220 12,610,000 1 Industrial 20,343 1 16,274,400 25,169 20,135,200 1 TOTALS 7,929 46,972 1 28,027,650 10,829 58,116 1 34,676,950 1 1. OFM 2. PSRC 2007 Covered Emplooyment Estimates 3. Retail: 500gsf per emp; Office: 250gsf per emp; Industrial: 800gsf per emp; X emp growth 4. 43 SF du/yr; rest isiv1F 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 9% Net Growth, 2008 2020 Housing Units Employment Building Employment: Employment: 4 -5 Area 3 Tukwila Non Tukwila Residents Residents 9 -6 91 -6 1,349 4,401 4,392 10,141 Impact Fee Persons per Use Ratio Total Use Use by Cost Per Housing Per 1,000 Rounded Housing Unit Between by Land Land Use Allocation Unit GFA Residents/ Use Category Employees Category 2.54 2.44 3,198 11.49% $735,607 $1,425.59 1 2.49 2.44 14,484 52.06% $3,331,715 1 $1,397.53 1 1.00 1,349 4.85% $310,214 1 1 $837.29 1.00 4,401 15.82% $1,012,279 1 $418.64 1.00 4,392 15.78% $1,010,185 1 $261.65 1 27,823 100.00% $6,400,000 1 1 Note: $6,400,000 is 80% of $8,000,000 S1,426 1 $1,398 1 S837 1 S419 S262 Fire Department Capital Facilities List 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) 185,000 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 '/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 TABLE 1 TUKWILA FIRE IMPACT FEE CALCULATION 2008 TABLE 2 TUKWILA FIRE SERVICE DEMAND CALCULATION 2008 TABLE 3 2007 INCIDENT RESPONSES BY PROPERTY TYPE AND ALLOCATION TO IMPACT FEE CATEGORIES DRAFT 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 EkkhCTI VE 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 Cl11' 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. 4. "Development activity" means any construction of a building or structure that creates additional demand and need for fire safety facilities. C. \Donna and Settings \All Users \Desktop \Kelly \MSDATA \Ordinances \Fire Impact Fees.doc LV_ksn 12/4/2008 Page 1 of 5 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. 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. C \Documents and Settings \All Users Desktop \Kelly MSDATA Ordinances Fire Impact Fees.doc LV:ksn 12 /4/2008 Page 2 of 5 E. Fire impact fees may also be used to recoup public improvement costs incurred by the City to the extent that flew 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 PIan; 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. FIRE IMPACT FEE CALCULATIONS Impact Fee Land Use Per Residential Unit Per 1,000 Sq. Ft. GFA Single family $922 Multi- family $1,200 Office $1,624 Retail $580 Industrial $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 rases 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, 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 C: \Documents and Setting \All Users Desktop Kelly MSDATA Ordinances Fire Impact Fees.doc LV:ksn 12/ 4/2008 Page 3 of 5 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 axe 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. 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: C \Documents and Settings \All 'Users Desktop Kelly MSDATA Ordinances Fire Impact Fees.doc LV:ksn 12/4/2008 Page 4 of 5 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. 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 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 Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published. Effective Date: Ordinance Number: 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 /4/2008 Page 5 of 5 EXHIBIT A TUKWIAL FIRE IMPACT FEES 2008 TABLE 1. TUKWILA FIRE IMPACT FEE CALCULATION 2008 TABLE 2. TUKWILA FIRE SERVICE DEMAND CALCULATION 2008 EXHIBIT A TUKWILA FIRE IMPACT FEES 2008 TABLE 3. 2007 INCIDENT RESPONSES BY PROPERTY TYPE AND ALLOCATION TO IMPACT FEE CATEGORIES 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) $185,000 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 '/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\AII Users\Desktop\Kelly\MSDATA \Ordinances\Fire Impact Fees Exhibit B Capital Facilities List.doc LV :ksn 12/4/2008 Page 1 of 1 AT 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 ESTABLISHLNG AN EH ECTWE 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. 5 "Development approval" means any written authorization from the City, which authorizes the commencement of the "development activity C: \Documents and Settings \All Users Desktop Kelly \MSDATA \Ordinances Parks Impact Feas.doc LV:ksn 12/4/2008 Page 1 of 5 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. 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. C. \Documents and Settings \All Users Desktop Kelly \iv4SDATA Ordinances \Parks Impact Fees.doc LV:ksn 12/4/2008 Page 2 of 5 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 Land Use Per Residential Unit 1 Per 1,000 Sq. Ft. GFA Single Family 1 $1,426 Multi- Family $1,398 I Office 1 $837 Retail 1 $419 Industrial 1 I $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: 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: \Documents and S ttin \Al Users \Desktop \Kelly \MSDATA \Ordinances \Parks Impact Fees.doc LV:ksn 12/4/2008 Page 3 of 5 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. 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 C. \Documents and Settings \All Users Desktop Kelly \MSDATA Ordinances \Parks Impact Fees.doc LV:ksn 12/4/2008 Page 4 of 5 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. 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. AI hST /AUTHENTICATED Christy O'Flaherty, City Clerk Jim Haggerton, Mayor Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: Effective Date: Office of the City Attorney Ordinance Number Attachment: Tukwila Parks Impact Fees, 2008, Exhibit A Tukwila Parks Capital Facilities List, Exhibit B C. \Documents and Settings \All Users\ Desktop Kelly \MSDATA Ordinances \Parks Impact Fe.doc LV :ksn 12/4/2008 Page 5 of 5 TABLE 1: 2008 Park Impact Fee Calculations Land Use 516 2,384 2,900 2.54 2.44 3,198 2.49 2.44 14,484 1.00 1,349 1.00 4,401 1.00 4,392 27,823 Note: $6,400,000 is 80% of $8,000,000 EXHIBIT A Tukwila Parks Impact Fees, 2008 2007 2007 2007 Building 2020 Housing 2020 2020 Building Housing Employment Area -3 Units -1 2 Net Growth, 2008 2020 Housing Units Employment Building Employment: Employment: 4 -5 Area 3 Tukwila Non Tukwila Residents Residents 9 -6 91 -6 1,482 370,500 1 133 4,836 2,418,000 435 4,826 3,860,8001 434 11,144 6,649,300 I 1,003 Persons per Use Ratio Total Use Use by Cost Housing Unit Between by Land Land Use Allocation Residents/ Use Category Employees Category I 11.49% I 52.06% 4.85% 15.82% 1 15.78% 1 100.00% 1,349 4,401 4,392 10,141 $735,607 $3,331,715 $310,214 $1,012,279 $1,010,185 $6,400,000 Units Employme Area nt Single- family 3,822 1 4,338 Multi- family 4,107 6,491 Office 6,245 1,561,250 7,727 Retail 1 20,384 10,192,000 25,220 Industrial 1 20,343 16,274,400 25,169 TOTALS 7,929 I 46,972 28,027,650 10,829 58,116 1. OFM 2. PSRC 2007 Covered Emplooyment Estimates 3. Retail: 500gsf 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 1,931,750 12,610,000 20,135,200 34,676,950 Impact Fee Per Housing Per 1,000 Rounded Unit GFA $1,425.59 I 1 S1,426 $1,397.53 I 1 S1,398 $837.29 1 S837 1 $418.64 I S419 I $261 1 S262 9% 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 FINANCE AND SAFETY COMMITTEE Meeting Minutes December 2, 2008, 5:00 p.m.; Conference Room #3 City of T ukwila Finance and Safety Committee PRESENT Councilmembers: Dennis Robertson, Chair; Pam Linder and Kathy Hougardy Staff: Bruce Fletcher, Rick Still, Lisa Verner, Gail Labanara, Shawn Hunstock, Mary Miotke, Nick Olivas, Steve Rydeen, David Haynes, Jack Pace, Rhonda Berry and Kimberly Matej Guests: Mark Segale, Bill Arthur, Nancy Damon, Mike Hansen, Chuck Parrish and Louis Strander and Joe Desmoine CALL TO ORDER: Chair Robertson called the meeting to order at 5:05 p.m. The agenda was amended to reflect the new order of business as presented below. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Impact Fee Ordinances for Fire and Parks This agenda item is returning to the Finance and Safety meeting for additional discussion prior to returning to full Council. As a result of tonight's discussion, staff is requesting Committee recommendations to Council regarding impact fees. Lisa Verner distributed several pages to Committee members with corrections from infouuation that was included in the original agenda packet (substitution for pages 52, 61 and 62). She also distributed an additional four pages that were not included in the original agenda packet. Lisa reviewed a list of example impact fees that would have been paid by recent developments if impact fees had been implemented and assessed at the time of those projects. Additionally, she distributed a memo from Derek Speck which states his opinion, as Economic Development Administrator, that at the impact fee levels proposed, it is unlikely that development would be lost. However, he is not aware of any way to determine conclusively whether the impact fees would or would not cause a loss in development. Although impact fees may appear high, they are they are a fairly low percentage of the development costs. After this discussion, staff began presentation of the Mayor's recommendations in regards to impact fees. The four specific questions outlined below are the policy questions that need to be answered by full Council. Staff requested recommendations from the Finance and Safety Committee on each issues as outlined below. O Determine if impact fees should or should not be implemented for fire and parks: o Fire Impact Fees Committee recommends implementation. UNANIIVIOUS APPROVAL. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. o Park Impact Fees Committee recommends implementation. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. IdentOr the projects which should be included in the list that establishes capital facilities projects resulting from new growth as well as the costs associated with those lists for both fire and parks: o Fire Capital Facilities Projects Committee supports the list as recommend by the Mayor and presented in the Finance and Safety Committee agenda packet page 57. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. Finance Safety Committee Minutes December 2, 2008 Page 2 o Park Capital Facilities Projects Committee supports the List as recommended by the Mayor and presented in Exhibit B, page 3, of a document entitled Mayor's Recommendation Impact Fees 12 -2 -08, which was distributed at tonight's Committee meeting (information attached to minutes). UNANIMOUS APPROVAL. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. Determine the City contribution- developer impact fee split (90/10, 80/20, 70/30, etc) o Fire impact fee City contribution developer split. Mayor's recommendation for fire impact fees is a 90/10 split. This means that 90% of the project costs will be funded through the collection of impact fees and the remaining 10% will be funded through City contribution. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. o Park impact fee City contribution developer split. Mayor's recommendation for the park impact fees is a 80/20 split. This means 80% of the project costs will be funded through the collection of impact fees, and the remaining 20% will be funded through City contribution. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. Committee members asked why Fire fees would be funded at a 90/10 split and Parks fees at an 80/20 split. Staff explained that many times the determination of impact fee contribution splits are very subjective. Fire is an essential service provided by the City, and calls for service will increase as development increases. The need for adequate basic safety and life service responses justify the higher developer contribution. The Parks fee split is lower as City staff feels confident that available grants and other such resources can assist in the City absorbing a larger contribution amount. Determine impact fees calculations /contributions based on designated land use categories (i. e.: single family, multi family, office, retail and industrial). o This was new information presented to the Committee at the beginning of the meeting. Members reviewed the information and felt that it appeared as if the Mayor's recommended contribution splits based on land use designations were acceptable. However, since this is new information they prefer to take more time to review the material and recommend forwarding this item to the COW. FORWARD TO DECEMBER 8 COW FOR DISCUSSION. Several members of the public were in attendance at the meeting. Questions were raised regarding the park use ratios, specifically, data which stated that 70% of users are nonresidents. A comment was made that there is no data identifying what percentage of the nonresident users are employed within the City. Several guests also shared that they believe impact fees will drive development away from this location, stating that development decisions are based on prices, and the assessment per square foot of retail space is significant. Mark Segale communicated that in the impact fee audit conducted by the State for the City of Redmond detail audit work was conducted for fire fees, but not for park fees. He felt that City staff was purely making an assumption regarding park fees and wanted to clarify that no audit had been conducted on Redmond park impact fees. In closing, the Committee reviewed Capital Improvement Program (CIP) pages that are applicable to impact fee projects and requested several wording changes. B. South Correctional Entity (SCORE) Interlocal Agreement (Multi- Jurisdictional Misdemeanor Jail Facility) In relation to the South Correctional Entity facility and formation of a respective public development authority, staff is seeking full Council approval of an ordinance authorizing a SCORE interlocaI agreement between all owner cities and formation of the SCORE Development Authority. Rhonda Berry provided an update of information regarding SCORE since the item was last heard at Committee and COW (see Finance and Safety minutes dated March 4, 2008, and COW minutes dated March 24, 2008). She distributed copies of the Powerpoint presentation that will be shown at the COW on December 8, 2008, in order to facilitate an informed discussion of the project.