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HomeMy WebLinkAboutCOW 2022-11-28 Item 4C - Ordinances - Fire Impact Fees / Parks Impact FeesCOUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayors review Council review 11/28/22 Vicky 12/5/22 Vicky ITEM INFORMATION ITEM No. 4.C. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 11/28/22 AGENDA ITEM TITLE Ordinances updating fire and park impact fees CATEGORY ® Discussion Mtn Date 11/28/22 ❑ Motion Mtg Date ❑ Resolution Mtg Date ® Ordinance Mtg Date 12/5/22 ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ® P&R ❑ Police ❑ PW SPONSOR'S SUMMARY City Council is being asked to approve two ordinances. One to update fire impact fees and one to update park impact fees REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/14/22 COMMITTEE CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. Finance COMMITTEE COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/28/22 12/5/22 MTG. DATE ATTACHMENTS 11/28/22 Informational Memorandum dated 10/19/22 Draft Ordinances Current fee schedules Full Construction Cost Index Data (Seattle, WA June 2020 to June 2022 Minutes from the Finance & Governance Committee meeting 11/14/22 12/5/22 93 94 TO: FROM: DATE: SUBJECT: City of Tukwila Allan Ekberg, Mayor Parks & Recreation Department - Pete Mayer, Interim Director INFORMATIONAL MEMORANDUM Finance & Governance Committee David Rosen, Parks & Recreation Fiscal Analyst Vicky Carlsen, Finance Director October 19, 2022 Ordinance Updating Fire and Parks Impact Fees Rate Schedule ISSUE Per TMC 16.26.080, the Fire Impact Fee Schedule is to be updated annually. Additionally, per TMC 16.28.080, the Park Impact Fee schedule is to be updated annually. The last updates were made via Ordinance 2643 for Fire Impact Fees and Ordinance 2644 for Park Impact Fees, approved by City Council in December of 2020, creating the 2021 Fire Impact Fee Schedule in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2643 and the 2021 Parks Impact Fee Schedule in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2644. No updates were made to the fee schedules in 2022. Staff seeks to update the Fire and Park Impact Fee schedules for 2023 to include revised rate structures reflecting current economic conditions. BACKGROUND Fire and Park Impact Fees are one-time charges assessed by a given government against a new development project as a means of helping pay for new or expanded public facilities that will be needed to address increased demand for services created by the development itself. Fire Impact fees support the development of facilities related to Fire and the purchase of capital items for Fire. Park Impact fees support the acquisition and development of parks, trails, natural areas and recreation facilities. The developer or builder of a proposed residential or commercial development pay the impact fees at the time a building permit is issued. ANALYSIS Authority to impose these fees is granted via Revised Code of Washington (RCW) as well as the Washington Administrative Code (WAC). While no RCW or WAC exists that imposes any restrictions on or creates any requirements concerning how a city updates its fee schedule, the City has adopted an index to inform the setting of fees. TMC 16.26.080 (1) for Fire Impact Fees and TMC 16.28.080 (1) for Park Impact Fees require the use of the Construction Cost Index for Seattle (June -June) published by the Engineering News Record to calculate annual inflation adjustments in the impact fee rates. The index calculates general construction costs across 20 U.S. cities. The table below reflects the Construction Cost Index (CCI) for Seattle from June 2020 to June 2022. Note: Due to rounding, the proposed fee increase is not the same in terms of percentage change. Date CCI % Change June 2022 14661.2 11.36 June 2021 13165 8.43 June 2020 12141.8 N/A Total Change 2020-2022 2519.4 20.75% Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 95 FINANCIAL IMPACT Fire Impact Fees and Park Impact Fees are not a general fund revenue source; therefore, passage of this ordinance does not directly create any general fund inflows or outflows. Also, due to Fire Impact and Park Impact Fees only being earned when development occurs, they are considered a volatile revenue source. RECOMMENDATION Department staff recommends the Finance & Governance Committee approve the proposed ordinances and forward it to the Committee of the Whole. ATTACHMENTS A --- Proposed Ordinance for Fire Impact Fees (Includes proposed rate schedule) B --- Proposed Ordinance for Park Impact Fees (Includes proposed rate schedule) C --- Full Construction Cost Index Data (Seattle, WA June 2020 to June 2022) Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 96 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2571 TO UPDATE THE FIRE IMPACT FEE SCHEDULE, AS CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 16.26 AS FIGURE 16-1, "FEE SCHEDULE;" REPEALING ORDINANCE NO. 2643; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 2571 related to fire impact fees on May 7, 2018; and WHEREAS, Tukwila Municipal Code Sections 16.26.060, 16.26.070 and 16.26.080 provide direction on annual updates to fire impact fees; and WHEREAS, the City desires to promote economic recovery in the construction industry and provide flexibility on the payment of fire impact fees by delaying the effective date to April 1, 2023; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2643 is hereby repealed in its entirety. Section 2. Fire Impact Fee Schedule Amended. Exhibit B to Ordinance No. 2571 is hereby amended to update the Fire Impact Fee Schedule codified as Figure 16-1, "Fee Schedule," as attached hereto. Section 3. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 4. 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 CC:\Legislative Development\Fire Impact Fees 2023 Update 11-3-22 VC:AY Review and analysis by Andy Youn Page 1 of 2 97 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 5. 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 April 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Allan Ekberg, Mayor Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Updated Figure 16-1, "Fee Schedule," for Fire Impact Fees (Exhibit B to Ordinance No. 2571) CC:\Legislative Development\Fire Impact Fees 2023 Update 11-3-22 VC:AY Review and analysis by Andy Youn Page 2 of 2 98 Figure 16-1 "Fee Schedule" Exhibit B CITY OF TUKWILA FIRE IMPACT FEE SCHEDULE RESIDENTIAL – per dwelling unit (a) Single family (d) with fire sprinkler system installed (b) Multi -family COMMERCIAL/NON-RESIDENTIAL - per 1,000 square feet of development (c) Retail (c) Office (c) Industrial/manufacturing FIRE Impact Fee $1,882$2,273 X9$2,136 $2468$2 618 $2—$2,546 $ 824$994 $ 176$213 (a) Attached accessory dwelling units are exempt from impact fees. (b) A structure with more than two dwelling units. (c) See the more detailed land use descriptions in the Land Use Categories document. (d) 6% discount for single family units with fire sprinkler system installed representing the portion of all incidents that were fire only—as opposed to emergency medical incidents. Per Section 16.26.120.B.9. of the Tukwila Municipal Code, "A fee payer installing a residential fire sprinkler system in a single-family home shall not be required to pay the fire operations portion of the impact fee." 99 100 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2572 TO UPDATE THE PARKS IMPACT FEE SCHEDULE AS CODIFIED IN TUKWILA MUNICIPAL CODE CHAPTER 16.28 AS FIGURE 16-1, "FEE SCHEDULE,"; REPEALING ORDINANCE NO. 2644; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council adopted Ordinance No. 2572 related to parks impact fees on May 7, 2018; and WHEREAS, Tukwila Municipal Code Sections 16.28.060, 16.28.070, and 16.28.080 provide direction on annual updates to parks impact fees; and WHEREAS, the City desires to promote economic recovery in the construction industry and provide flexibility on the payment of parks impact fees by delaying the effective date to April 1, 2023; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2644 is hereby repealed in its entirety. Section 2. Parks Impact Fee Schedule Amended. Exhibit B to Ordinance No. 2572 is hereby amended to update the Parks Impact Fee Schedule codified as Figure 16-1, "Fee Schedule," as attached hereto. Section 3. Corrections by City Clerk or Code Reviser Authorized. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 4. 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 CC:\Legislative Development\Parks Impact Fees 2023 Update 10-31-22 DR:AY Review and analysis by Andy Youn Page 1 of 2 101 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 5. 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 April 1, 2023. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Office of the City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Updated Figure 16-1, "Fee Schedule," for Parks Impact Fees (Exhibit B to Ordinance No. 2572) CC:\Legislative Development\Parks Impact Fees 2023 Update 10-31-22 DR:AY Review and analysis by Andy Youn 102 Page 2of2 Figure 16-1 "Fee Schedule" Exhibit B CITY OF TUKWILA PARKS IMPACT FEE SCHEDULE (2023) RESIDENTIAL — per dwelling unit (a) Single family (b) Multi -family COMMERCIAL/NON-RESIDENTIAL PARKS Impact Fee $3,006$3,629 $2,618$3,162 - per 1,000 square feet of development (c) Retail $1,375$1,660 (c) Office $1,239$1,496 (d) K-12 Educational Facilities $-248$300 (c) Industrial/Manufacturing $687$830 (a) Attached accessory dwelling units are exempt from impact fees. (b) A structure with more than two dwelling units. (c) See the more detailed land use descriptions in the Land Use Categories document. (d) 80% discount for K-12 educational facilities. 103 [ January [ November CCi 1111"- ENR Cost Index - Seattle, WA June 2020 - June 2022 2022 2022 2022 2022 2022 2022 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2020 2020 2020 2020 2020 2020 2020 MONTH June May April March [ February December LOctober [September August July June May L April [ March [ Feb Jan Dec Nov Oct Sept r Aug July June 14661.2 14623.7 14493.3 14451 14425.3 13722.8 13682.7 13595.6 13573.9 13525.7 13466.9 13248.3 13165 12994.4 12945.2 12865.1 12826.1 12845.4 12840.4 12796.6 12776.2 12771.7 12431 12140.5 12141.8 %CHG 11.4 12.5 12 12.3 12.5 6.8 6.6 6.2 6.20% 5.9 8.3 9.1 8.4 7 6.6 7.3 5.9 6 6 5.80% 5.6 5.6 2.8 1.2 0.9 104 City of Tukwila City Council Finance & Governance Committee Meeting Minutes November 14, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Staff Present: I. BUSINESS AGENDA De'Sean Quinn, Chair; Kate Kruller, Cynthia Delostrinos Johnson Vicky Carlsen, David Cline, Rachel Bianchi, Julie Hatley, Tony Cullerton, David Rosen, Pete Mayer A. Contract Amendment: Prosecution Services Staff is seeking approval of a contract amendment with Walls Law Firm to extend prosecution services through June 30, 2023 at a continued rate of $23,000 per month. Committee Recommendation t Unanimous approval. Forward to November 21, 2022 Regular Consent Agenda. B. Ordinances: Fire and Park Impact Fees Staff is seeking approval of ordinances to update Fire and Park Impact Fees beginning April 1, 2023. Committee Recommendation Unanimous approval. Forward to November 28, 2022 Committee of the Whole. C. Non -Represented Employees Market and Compression Study Staff is seeking approval to include funding for a non -represented employee market and compression study in the 2023 budget. This was intended to be completed in 2020 but was postponed due to pandemic response and budget cuts. Committee Recommendation Unanimous approval. Forward to November 14, 2022 Committee of the Whole. D. American Rescue Plan Act Expenditure Report January -June Staff presented the report. Item(s) for follow-up: • Explain CPI impact to ARPA allocations in next report. Committee Recommendation Discussion only. E. Resolution: 2023 Legislative Agenda 105