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HomeMy WebLinkAboutCOW 2010-08-23 Item 3D - Ordinance - Traffic Concurrency Fees / Traffic Impact FeesCAS NUMBER: 10-095 AGENDA ITEM TITLE CATEGORY 1 SPONSOR SPONSOR'S SUMMARY Fund Source: Comments: EXPENDITURE REQUIRED $0.00 MTG. DATE 08/23/10 09/07/10 MTG. DATE 08/23/10 09/07/10 10-095 Discussion ['Motion Mtg Date 08/23/10 Mtg Date COUNCIL AGENDA SYNOPSIS jVleetzno Date 08/23/10 09/07/10 Iepared by BG BG "nit tals Mayo?ezv c ounczl revzev \IP ITEM INFORMATION I ORIGINAL AGENDA DATE. AUGUST 23, 2010 Ordinance Amending TMC Section 9.48 and Ordinance 2111 Relating to Transportation Impact Fees ITEM No. Resolution Ordinance ['Bid Award Public Hearing Other Mtg Date Mtg Date 09/07/10 Mtg Date Mtg Date Mtg Date council Mayor n Adm Svcs DCD Finance Fire Legal P&R Police PTV This ordinance will amend and update Chapter 9.48 of the Tukwila Municipal Code regarding transportation impact fees. Changes include removing the 12 month vacancy rule when calculating impact fees, modifying the appeal process, and removing the exemptions and vesting sections as they are no longer applicable. Council is being asked to approve this ordinance. REVIEWED BY COW Mtg. CA &P Cmte [I F &S Cmte Utilities Cmte Arts Comm. Parks Comm. DATE: 08/16/10 ;COMMENDATIONS: SPONSOR /ADMIN. Public Works COMMr1TEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 08/11/10 Draft Ordinance (revised aft TC) Minutes from the Transportation Committee meeting of 08/1&/10 Transportation Cmte Planning Comm. 41 42 Mayor Haggerton Transportation Committee FROM. Public Works Director, TO: City of Tukwila INFORMATIONAL MEMORANDUM Jim Haggerton, Mayor DATE. August 11, 2010 SUBJECT Amendment to TMC 9.48 Concurrency Standards and Transportation Impact Fees ISSUE Amend certain sections of TMC 9 48 to clarify time of payment, appeals process sections, and remove exemption and vesting clauses. BACKGROUND In December 2005, the City Council passed Ordinance 2111 adopting a revised chapter in the Tukwila Municipal Code regarding traffic concurrency standards and a new impact fee process This change was a dramatic departure from previous levels of service standards and mitigation fee structure ANALYSIS Since the implementation of the current Transportation Impact Fee (TIF) ordinance, staff has found a few sections which need clarification or modification to reflect current conditions Section 9 48.040, Calculation of Impact Fees, has established a 12 month vacancy rule for establishing when existing uses can and cannot get trip credits for existing /previous uses The current economic climate has resulted in longer than typical vacancies and staff is investigating alternative language to better reflect today's needs. The interim solution is removal of the 12 month vacancy rule Section 9 48.060, Time of Payment of Impact Fees, has a minor typographical correction Section 9 48 120, Appeals, has been modified to simplify and clarify the appeals process The current language refers all appeals to the Hearing Examiner using the appeals process established for zoning code and land use appeals Application of that appeal process, as defined in TMC 18 108 020, has proven to be unclear and overly cumbersome. Sections 9.48 130 -140, Exemptions and Vesting, are repealed entirely Exemptions are being removed as there has been some confusion on the use of exempting non residential developments that are categorically exempt from SEPA. It is the intent that any new development or redevelopment which generates new P.M peak hour trips will be subject to payment of an impact fee Development agreements (DA's) can be entered into between the City and the developer which establishes, among other items, the assessment of impact fees. DA's supersede the Tukwila Municipal Code The vesting clause was developed specifically for the La Pianta and Westfield developments who were both in active Development Agreement negotiations with the City. Both Development Agreements have been finalized and no other new development can be eligible for the vesting detailed in TMC 9 48 140. RECOMMENDATION The Council is being asked to approve the draft Ordinance to amend Ordinance No 2111 for Concurrency Standards and Transportation Impact Fees and consider this item at the August 23, 2010 C O.W and September 7, 2010 Regular Council meeting Attachments Draft Ordinance W \PW Eng \Old P drive \Cyndy \Concurrency Impact Fees \INFORMATION MEMO Amendment to TMC 9 48 8- 11- 10.doc 43 44 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE 2111 §1 (PART) AS CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 9.48, REGARDING CONCURRENCY STANDARDS AND TRANSPORTATION IMPACT FEES VESTING; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, the City Council desires to provide greater clarity to Tukwila Municipal Code (TMC) Chapter 9 48 (Concurrency Standards and Transportation Impact Fees) by amending certain sections relating to definitions (TMC Section 9.48.010), the calculation of impact fees (TMC Section 9 48.040), the time of payment of impact fees (9 48.060), and appeals of impact fees (9 48.120), and WHEREAS, the City Council further desires to repeal TMC Sections 9 48 130 and 9 48.140 relating to exemptions and vesting, respectively; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 9.48.020 (Definitions) Amended. Tukwila Municipal Code Section 9.48.020 (Definitions) is hereby amended to read as follows: 9.48.020 Definitions. The words and terms contained in this chapter shall have the following meanings for the purposes of this chapter, unless the context clearly requires otherwise. Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when given their usual and customary meaning. 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. 4. "Development" means the construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure that requires a building permit. 5. "Development activity" means any construction of a building or structure that creates additional demand and need for transportation facilities. 6. "Development approval" means any written authorization from the City, which authorizes the commencement of the "development activity." 7 "Letter encumbered" means to reserve, set aside, or earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of transportation facilities. 8. "Fee payer" is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity, which requires a building permit and creates a demand for additional facilities. C: \Documents and Settings \melissa -h Desktop \Impact fee ordinance 2111 amendment 8- 11- 1O.doc CK:mrh 08/18/2010 Page 1 of 4 45 46 9. "Impact fee" means the payment of money imposed by the City on development activity pursuant to this chapter as a condition of granting development approval, in order to pay for the transportation facilities needed to serve new growth and development that is a proportionate share of the cost of the capital facilities that is used for facilities that reasonably benefit new development. Impact fees are independent of a permit fee, an application fee, a concurrency test fee, and the administrative fee for collecting and handling impact fees or cost of reviewing independent fee calculations. 10. "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. 11. "Proportionate fair share" means that portion of the cost for transportation facility improvements that are reasonably related to the service demands and needs of new development. 12. "Vested" means the right to develop or continue development in accordance with th application is deemed complete. Section 2. TMC Section 9.48.040 (Calculation of Impact Fees) Amended. Tukwila Municipal Code Section 9 48.040 (Calculation of Impact Fees) is hereby amended to read as follows: 0 9.48.040 Calculation of Impact Fees. A. The method of calculating the transportation impact fees in this chapter incorporate, among other things, the following: 1. The cost of public streets and roads necessitated by new development; 2. An adjustment to the costs of the public streets and roadways for past or future mitigation payments made by previous development to pay for a particular system improvement that was prorated to the particular street improvement; 3. The availability of other means of funding public street and roadway improvements; and 4. The methods by which public street and roadway improvements were financed. B Fees for development shall be calculated based on their net new "p.m. peak hour" trip generation rates as determined by the Public Works Director, or designee, applying the ITE Trip Generation Manual. If the proposed development activity concerns an existing use, the fee shall be based on net new trips generated by the redevelopment. If an existing building has not been used for its intended purpose or has beer. vasant for twelve months or more preceding application, no credit for existin trips shall be given. Section 3. TMC 9.48.060 (Time of Payment of Impact Fees) Amended. Tukwila Municipal Code Section 9.48.060 (Time of Payment of Impact Fees) is hereby amended to read as follows: 9.48.060 Time of Payment of Impact Fees. A. The impact fees imposed pursuant to this chapter shall be assessed by the City at the time of the application for the development permit, and shall be due and payable in whole full at the time of issuance of such permit. The fee paid shall be the amount in effect as of the date of the permit issuance. B Impact fees may be paid under protest in order to obtain a permit or other approval of development activity Section 4. TMC 9.48.120 Appeals Amended. Tukwila Municipal Code Section 9.48.120 is hereby amended to read as follows: C: \Documents and Settings \melissa -h Desktop \Impact fee ordinance 2111 amendment 8- 11- 10.doc CK:rnrh 08/18/2010 Page 2 of 4 9.48.120 Appeals. A. Any fee payer may pay the impact fees imposed by this chapter under protest in order to obtain a building permit. B Appeals regarding traffic 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 Public Works Director or his designee, with respect to the applicability of traffic 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. Such appeal shall be a closed record appeal. 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 thc reasons for thc appall with an accompanying appeal fee, as set forth in the existing fee schedule for land use decisions. E. Appeals under this chapter will be proccose:-'.—ii. accordance with the E. Notices of appeal shall contain the following information. 1. The name of the appealing warty; 2. The address and phone number of the appealing party; and 3. A statement identifying the decision being appealed and the alleged errors in that decision. The notice of appeal shall state specific errors of fact or errors in the application of the law to the facts presented and shall also state the relief sought. The scope of the appeal shall be limited to issues raised in the notice of appeal. Section 5. TMC 9.48.130 Exemptions. Tukwila Municipal Code Section 9.48.130 is hereby repealed. 9.18.130. Exemption impact faaa generated from thc formula for calculating the-fens as S_ Comprehensive Plan. All new development located in thc City that generates net new shall apply: 1. Any non residential project that is categorically exempt from SEPA pursuant to TMC 21.04.080, .100, or .110. 2. Projects that will not generate net new traffic trips; 3. Should the City reduce or waive any impact fees, not subject to Section 9.48.070 Adjustments, of this chapter, az part of a negotiated developer's agTeeme nt s Section 6. TMC Section 9.48.140 Vesting Repealed. Tukwila Municipal Code Section 9.48.140 (Vesting) is hereby repealed. 9.18.110. Vesting. Applicants shall be vested under thc laws, rules and other regulations in effect prior to thc effective date of this ordinance if they have, prior to the effective date of this ordinance: 1 Submitted a buildin p ermit application that the City has deemed complete; or 2. Entered into formal negotiations with the City for a specific project for a C: \Documents and Settings \melissa -h Desktop \Impact fee ordinance 2111 amendment 8- 11- 10.doc CK:rnrh 08 /18/2010 Page 3 of 4 47 48 3. T_ =_T�ia a signed- ag_____ -cnt that is Still in effect with the City addreccing traffic concurrency and impact fees. Section 7. TMC 9.48.150 Authority Unimpaired. Tukwila Municipal Code Section 9.48.150 hereby read as follows: 9.48.150. Authority Unimpaired. Nothing in this chapter shall preclude the City from requiring the fee payer to mitigate adverse and environmental effects 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 8. TMC 9.48.160 Relationship to SEPA. Tukwila Municipal Code Section 9.48.160 hereby read as follows: 9.48.160. Relationship to SEPA. A. All development shall be subject to environmental review pursuant to SEPA and other applicable City ordinances and regulations. B. Payment of the impact fee pursuant to this chapter shall constitute satisfactory mitigation of those traffic impacts related to the specific improvements identified on the project list. C. Further mitigation in addition to the impact fee shall be required for identified adverse impacts, appropriate for mitigation pursuant to SEPA, that are not mitigated by an impact fee. D Nothing in this chapter shall be construed to limit the City's authority to deny development permits when a proposal would result in significant adverse traffic impacts identified in an environmental impact statement and reasonable mitigation measures are insufficient to mitigate the identified impact. Section 9. Repealer. Ordinance No. 2111 §1 (part) as codified at TMC Section 9 48.130 and 9 48.140 is hereby repealed. Section 10. 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 11. 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 2010. ATTEST/ AUTHENTICATED• Christy O'Flaherty, City Clerk APPROVED AS TO FORM BY Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: C: \Documents and Settings \melissa -h Desktop \Impact fee ordinance 2111 amendment 8- 11- 10.doc CK:mrh 08/18/2010 Page 4 of 4 TRANSPORTATION COMMITTEE Meeting Minutes August 16, 2010 5:00 p.m. Conference Room 1 PRESENT Councilmembers: Verna Seal, Chair; Joan Hernandez and De' Sean Quinn Staff: Bob Giberson, Frank Iriarte, Robin Tischmak, Cyndy Knighton, Derek Speck, Steve Lancaster, Gail Labanara and Kimberly Matej CALL TO ORDER: The meeting was called to order at 5:00 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Amendments to Tukwila Municinal Code Section 9.48 Regarding Concurrence Standards Transportation Imnact Fees Staff is seeing Council approval to make amendments to Tukwila Municipal Code (TMC) Section 9.48 regarding concurrency standards and transportation impact fees. In addition to minor housekeeping changes (i.e.: grammatical errors), the proposed draft changes outlined below add clarity and definition to TMC Section 9.48: III. MISCELLANEOUS Committee Member Hernandez reported that there is a SCATBd meeting tomorrow, Tuesday, August 17, 2010. Additionally, there is a Regional Task Force Meeting on Wednesday, and SCATBd has asked cities to provide input on regional issues. She expressed her desire to have discussions with staff at the Transportation Committee, or future COW, in order to raise awareness of Tukwila's (as a member of SCATBd and the City, individually) position relative to the Task Force and its report. Meeting adjourned at 5:28 p. m. Next meeting: Tuesday, September 7, 2010 5:00 p.m. Conference Room 1 *Tuesday due to holiday** V 9 Committee Chair Approval MiW y KAM. Reviewed by GL. City of Tukwila Transportation Committee Regarding the Calculation of Impact Fees. Draft language removes the requirement for a location's impact fees to be recalculated after a 12 -month period of vacancy in the building/location. With the status of the current economy, the 12 -month threshold is too restrictive. Staff will continue to work towards formulation of requirements that are more appropriate. Derek Speck expressed support of this change from an economic development standpoint. Appeals. Draft language requires appeals be submitted to City Clerk, with all issues in question identified, and then to Hearing Examiner when applicable. Current language sends the appeal directly to the Hearing Examiner. Exemptions and Vesting. .This section was originally included due to the active negotiations of certain development agreements at the time of the ordinance formulation. The vesting section will be removed as it is no longer applicable. UNANIMOUS APPROVAL. FORWARD TO AUGUST 23 COW FOR DISCUSSION. 49 50