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Home My WebLink AboutCOW 2023-08-28 Item 4B - Ordinances - 2024 Fire and Parks Impact Fee SchedulesCOUNCIL AGENDA SYNOPSIS ,tv)* ' �, 4 Initials ITEM NO. Z Meeting Date Prepared by Mayor's review Council review Q sc'( ?. - -"Oc 8/28/23 DR 4.B. ,/ O Spec 2.A. 190 ITEM INFORMATION STAFF SPONSOR: VICKY CARLSEN/DAVID ROSEN ORIGINAL AGENDA DATE: 8/28/23 AGENDA ITEM TITLE Fire and Parks Impact Fee Schedule Update for Fiscal Year 2024 CATEGORY Mtg Discussion Date 8/28/23 ❑ Motion M Date ❑ Resolution Mtg Date 11 Mtg Ordinance Date 8/28/23 ❑ Bid Award Altg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD 11 Finance ❑ Fire 11 P&R ❑ Police ❑ PW SPONSOR'S Title 16 (Buildings and Construction) of the Tukwila Municipal Code outlines the SUMMARY administration of Fire and Parks Impact Fees for development done within the City of Tukwila. Said section dictates that both fees shall be adjusted annually to account for inflation. Finance & Parks and Rec staff seek Council's approval to adopt these inflation adjustments for the FY24 Fire & Parks Impact Fee schedules. REVIEWED BY ❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ LTAC ❑ Arts Comm. DATE: 8/14/23 COMMITTEE ❑ Finance & Governance ❑ Planning & Community Dev. Parks Comm. ❑ Planning Comm. CHAIR: KRULLER RECOMMENDATIONS: SPONSOR/ADMIN. Finance/Parks & Recreation COMMITTEE Unanimous Approval; Forward to 8/28 C.O.W. & Special Meeting COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0 Fund Source: N/A Comments: FIF is a revenue source for Funds 304 & 305, PIF is a revenue source for Fund 301 MTG. DATE RECORD OF COUNCIL ACTION 8/28/23 MTG. DATE ATTACHMENTS 8/28/23 Informational Memorandum dated 8/2/23 Proposed Ordinance Updating Fire Impact Fee Schedule Proposed Ordinance Updating Parks Impact Fee Schedule Seattle Construction Cost Index data (June 2021 - June 2023) Minutes from the 8/14 Finance & Governance Committee meeting 9 10 City of Tukwila Allan Ekberg, Mayor Parks & Recreation Department - Pete Mayer, Interim Director INFORMATIONAL MEMORANDUM TO: Finance & Governance Committee FROM: David Rosen, Parks & Recreation Fiscal Analyst Vicky Carlsen, Finance Director DATE: August 4, 2023 SUBJECT: 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 2694 for Fire Impact Fees and Ordinance 2695 for Park Impact Fees, approved by City Council in December of 2022, creating the 2023 Fire Impact Fee Schedule in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2694 and the 2023 Parks Impact Fee Schedule in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2695. Staff seeks to update the Fire and Park Impact Fee schedules for 2024 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 operations and the purchase of capital items for Fire operations. Park Impact fees are apportioned out to specific projects and support the acquisition and development of parks, trails, natural areas, and recreation facilities and are accounted for within the six- year parks Capital Improvement Plan. 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 2022 to June 2023. Note: Due to rounding, the proposed fee increase may not be the same in terms of percentage change. Date CCI % Change June 2023 15241.71 +3.96% June 2022 14661.19 N/A Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 11 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 for the purposes of budgeting. RECOMMENDATION Department staff recommends the Finance & Governance Committee approve the proposed ordinances and forward it to the August 28th Committee of the Whole meeting. 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 2021 to June 2023) Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 12 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. 2694; 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; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2694 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 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. CC:\Legislative Development\Fire Impact Fees 2024 Update 8-8-23 Vicky Carlsen Review by Andy Youn Page 1 of 2 13 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 January 1, 2024. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of , 2023. 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 2024 Update 8-8-23 Vicky Carlsen Review by Andy Youn Page 2 of 2 14 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 FIRE Impact Fee $2T2-73$2,363 $2,1362,221 $2,618$2,722 COMMERCIAL/NON-RESIDENTIAL - per 1,000 square feet of development (c) Retail $2,546$2,647 (c) Office $994$1,033 (c) Industrial/manufacturing $28$221 (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 16.26.120.6.9. 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." 15 16 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. 2695; 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; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 2695 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 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. CC:\Legislative Development\Parks Impact Fees 2024 Update 8-8-23 David Rosen Review by Andy Youn Page 1 of 2 17 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 January 1, 2024. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Special Meeting thereof this day of , 2023. 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 2024 Update 8-8-23 David Rosen Review by Andy Youn 18 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 PARKS Impact Fee $3,629$3,773 $3,162$3,287 COMMERCIAL/NON-RESIDENTIAL - per 1,000 square feet of development (c) Retail $1,660$1,726 (c) Office $1,196$1 555 (d) K-12 Educational Facilities $300312 (c) Industrial/Manufacturing $30863 (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. 19 20 ENR Cost Index - Seattle, WA 'YEAR 2023 MONTH June 15241.71 %CHG 4.0 2023 May 115030.95 ' 2.8 2023 April 15031.28 3.7 2023 March 115106.78 4.5 2023 February 15087.53 4.6 2023 January 15132.08 10.3 2023 December 15115.33 10.5 2023 November 15202.68 11.8 2023 October 15197.93 12.0 2023 September 15202.41 12.4 2023 August 14873.27 10.4 2023 July 14738.6 11.2 2022 June 14661.19 11r 2022.1 May 14623.69 12.5 2022 April 14493.29 12 2022 March 14451.04 12.3 2022 February 1442533 12.5 2022 January 13722.83 6.8 2021 December 13682.71 6.6 2021 November 13595.586.2 2021 October 13573.94 6.2 2021 September 13525.69 5.9 2021 August 13466.93 8.3 2021 July 13248.3 9.1 13165.01 21 22 City of Tukwila City Council Finance & Governance Committee Meeting Minutes August 14, 2023 - 5:30 p. m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: Kate Kruller, Chair; Kathy Hougardy, De'Sean Quinn Staff Present: I. BUSINESS AGENDA David Rosen, Pete Mayer, Vicky Carlsen, Tony Cullerton A. Ordinances: Fire and Parks Impact Fees Staff is seeking Council approval of two ordinances that would adopt the annual updates to park and fire impact fees. Committee Recommendation Unanimous approval. Forward to August 28, 2023 Committee of the Whole. B. June 2023 General Fund Update Staff presented the report. Committee Recommendation Discussion only. MISCELLANEOUS The meeting adjourned at 5:50 p.m. Committee Chair Approval 23