HomeMy WebLinkAboutReg 2024-09-16 Item 5C - Ordinance - Fire Impact Fee Schedule / Parks Impact Fee ScheduleCOUNCIL AGENDA SYNOPSIS
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Meeting Date
Prepared by
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Council review
9/16/24
DR
ITEM INFORMATION
ITEM No.
5.C.
STAFF SPONSOR: DAVID ROSEN
ORIGINAL AGENDA DATE: 9/16/24
AGENDA ITEM TITLE FY25 Park & Fire Impact Fee Schedule Updates
CATEGORY ❑ Discussion
Altg Date
❑ Motion
Altg Date
❑ Resolution
Altg Date
® Ordinance
Mfg Date 9/16/24
❑ Bid Award
Mug Date
❑ Public Hearing
Mtg Date
❑ Other
Altg Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ® Pe R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
The Parks and Fire Impact Fee Schedules require annual updates per TMC Sections 16.26 &
16.28. Update of the fee schedules requires passage of an ordinance by the Tukwila City
Council. City staff recommend the City Council approve both presented ordinances as
written so they may be signed into law by the mayor and the resultant fee adjustments
become active on Janaury 1, 2025.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev.
❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 8/26/24 COMMITTEE CHAIR: QUINN
RECOMMENDATIONS:
SPONsoR/ADMIN. Parks & Recreation/Finance
COMMITTEE Forward to Regular Consent Agenda Meeting
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
$0
AMOUNT BUDGETED
$0
APPROPRIATION REQUIRED
$0
Fund Source: FUNDS 301, 304, & 305
Comments: Impact fees support the Park Development, Fire Improvement, & PSP funds
MTG. DATE
RECORD OF COUNCIL ACTION
9/16/24
MTG. DATE
ATTACHMENTS
9/16/24
Informational Memorandum dated 6/25/24
Proposed Ordinance for Fire Impact Fees schedule update
Proposed Ordinance for Parks Impact Fees schedule update
Full Construction Cost Index Data for Seattle (June 2022 - June 2024) & Calculations
Revenue History for Park & Fire Impact Fees (2020 - 2024 YTD)
Minutes from the 8/26 Finance & Governance Committee meeting
7
8
TO:
City of Tukwila
Thomas McLeod, Mayor
Parks & Recreation Department - Pete Mayer, Director
INFORMATIONAL MEMORANDUM
Finance & Governance Committee
FROM: Tony Cullerton, Interim Finance Director
David Rosen, Parks & Recreation Analyst
DATE: June 25, 2024
SUBJECT: Fiscal Year 2025 Parks & Fire Impact Fees Updates
ISSUE
Per TMC 16.26.080 and 16.28.080, the Fire and Park Impact Fee Schedules are to be updated
annually with the resultant schedule changes becoming effective January 1 of each year. The last
updates were made via Ordinance 2708 for Fire Impact Fees and Ordinance 2709 for Park Impact
Fees, approved by City Council in August of 2023, creating the 2024 Fire Impact Fee Schedule in
Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2708 and the 2024 Parks Impact Fee Schedule
in Figure 16-1 "Fee Schedule" as Exhibit B to Ordinance 2709. Staff seeks to update the Fire and Park
Impact Fee schedules for 2025 to include revised rate structures reflecting current economic conditions.
BACKGROUND
Fire and Park Impact Fees are one-time charges assessed against a new development project as a
means of helping pay for 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 and
the purchase of capital items for fire response services. Park Impact Fees support the acquisition and
development of parks, trails, natural areas, and recreation facilities. The developer of a proposed
residential or commercial development pays 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 updating 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 uses the following components for its calculations:
• Seattle price for portland cement
• Seattle price for 2X4 lumber
• National average price for structural steel
• Local union wages plus fringes, for carpenters, bricklayers, and iron workers
Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov
9
Finance & Governance Committee
June 25, 2024
Page 2
The table below reflects the Construction Cost Index (CCI) for Seattle from June 2022 to June 2024.
Note: Due to rounding, the proposed fee increase may not be the same in terms of percentage change.
Date
CCI
YoY % Change
June 2024
15492.6
1.65
June 2023
15241.7
3.96
June 2022
14661.2
N/A
Total Change 2022-2024
831.4
5.67%
LEGAL CONSIDERATIONS
In April of 2024, the Supreme Court of the United States (SCOTUS) decided on Sheetz v. County of El
Dorado, California. Per the Municipal Research and Services Center RSC), this decision will have
the effect of requiring the Nollan and Dolan test (Named after SC• cases Nollan v. California
Coastal Commission (1987) and Dolan v. City of Tigard (1994)) sly to permit conditions. This test
requires that permit conditions:
1. Have a nexus to the government's land -use interes d
2. Be roughly proportional to the development's im on the land-u nterest
In effect, the Sheetz ruling may require municipalities su
the development of impact fees and their scheds, in or
the requirements of Nollan and Dolan.
City staff discussed the impacts of Shee
that the inflationary updates to Park a
with Ogden Murphy Wallace that t
Washington already have the Nolla
muster under these tests shouthey
developments concerning t
and other concerned en
FINANCIAL IMPACT
Fire and Park Impact Fees ar- 't „eneral fund revenue source; therefore, passage of these
ordinances does not create any • eral fund cashflows. Also, due to impact fees only being earned
when development occurs, the impact of approving these ordinances is indeterminate at this time.
e prepared to demonstrate their work in
successfully argue that said fees meet
th th Attorney's Office, who determined at this time
pa ees can proceed. It is the opinion of attorneys
utes t enable impact fee programs within the State of
uilt into them and would therefore likely pass
bject to scrutiny. City staff will continue to monitor ongoing
n in collaboration with the City Attorney's Office, MRSC,
arise.
RECOMMENDATION
Department staff recommends the Finance & Governance Committee approve the proposed
ordinances and forward them to the August 5th, 2024 Regular Council Meeting Consent Agenda for final
approval.
ATTACHMENTS
A --- Proposed Ordinance for Fire Impact Fees (Includes proposed rate schedule)
B --- Proposed Ordinance for Park Impact Fees (Includes proposed rate schedule)
C --- Construction Cost Index Data (Seattle, WA June 2022 to June 2024) & FY25 Update Calculations
D --- Fire & Park Impact Fee Historical Revenue (2015 — 2024 YTD)
Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov
10
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. 2708; 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 ns 16.26.060, 16.26.070, and 16.26.080
provides direction on annual up es to fire i act fees;
NOW, THEREFORE, UNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HERE = • R SAS FOLLOWS:
Section 1. Re - : er. Or• - ncilo. 2708 is hereby repealed in its entirety.
Section 2. Fire I
hereby amended to upd
Schedule," as attached her
chedule Amended. Exhibit B to Ordinance No. 2571 is
Fire Impact Fee Schedule codified as Figure 16-1, "Fee
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.
2024 Legislation: Fire Impact Fees
Version: 8/5/24
Staff: D. Rosen
Page 1 of 3
11
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,
2025.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk
Thomas McLe d, Mayor
APPROVED AS TO FORM BY: Filed i the Clerk:
by the Pa : Council:
P ishe •
ate:
Or• ce Number:
Office of the City Attorney
Attachment: Updated Figure 1. , e Sc dule," for Fire Impact Fees
(Exhibit B to Or
12
2024 Legislation: Fire Impact Fees
Version: 8/5/24
Staff: D. Rosen
Page 2 of 3
Figure 16-1 "Fee Schedule"
Exhibit B
CITY OF TUKWILA
FIRE IMPACT FEE SCHEDULE (2025)
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
$ 2,363 2,402
$ 2,2212,258
$ 2,722 2,767
$ 2,647 2,691
$ 1,033 1,050
$ 221 225
Attached acc ory dwe g units are exempt from impact fees.
A structure with ore t two dwelling units.
See the more deti nd use descriptions in the Land Use Categories
document.
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."
13
14
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. 2709; 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
provides direction on annual up es to park impact fees;
NOW, THEREFORE, UNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HERE = • R SAS FOLLOWS:
Section 1. Re - : er. Or• - ncilo. 2709 is hereby repealed in its entirety.
Section 2. Parks
is hereby amended to up
Schedule," as attached her
e Schedule Amended. Exhibit B to Ordinance No. 2572
Parks Impact Fee Schedule codified as Figure 16-1, "Fee
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.
2024 Legislation: Parks Impact Fees
Version: 8/5/24
Staff: D. Rosen
Page 1 of 3
15
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,
2025.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk
Thomas McLe d, Mayor
APPROVED AS TO FORM BY: Filed i the Clerk:
by the Pa : Council:
P ishe •
ate:
Or• ce Number:
Office of the City Attorney
Attachment: Updated Figure 1. , e Sc dule," for Parks Impact Fees
(Exhibit B to Or
2024 Legislation: Parks Impact Fees
Version: 8/5/24
Staff: D. Rosen
16
Page 2 of 3
Figure 16-1 "Fee Schedule"
Exhibit B
CITY OF TUKWILA
PARKS IMPACT FEE SCHEDULE (2025)
RESIDENTIAL — per dwelling unit
(a) Single family
(b) Multi -family
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(C) Retail
(C) Office
(d) K-12 Educational Facilities
(C) Industrial/Manufact
(a) Attached acces
(b) A structure with
(c) See the more detai
(d) 80% discount for K-1
nit . re exempt from impact fees.
dwelling units.
e descriptions in the Land Use Categories document.
ational facilities.
PARKS
Impact Fee
$ 3,773 3,835
$ 3,287 3,341
$ 1,726 1,754
$ 1,555 1,581
$ 312317
$ 863 877
17
EN R Cost Index - Seattle, WA
YEAR
2024
June
ED
15492.56
111 %CHG
1.6
2024
[ May
1 15495.06
1 3.1
2024
2024
April 15492.56 3.1
March 15477.56 2.5 ,
2024
February
15475.06
2.6
2024
January
15311.86
1.2
2023
December
15174.36
0.4
2023
November
15337.56
0.9
2023
October
15335.06
0.9
2023
2023
September
15332.56
0.9
August
15171.86 2.0
2023
July
15174.36
115241.71
15030.95
15031.28
I 3.0
2023i
2023
2023
June
i 4.0
May
April
2.8
3.7
2023
March
15106.78
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
2023
2023
October
September
August
2023
2022
July
15197.93
15202.41
14873.27
14738.6
14661.19
12.0
12.4
10.4
11.2
18
RESIDENTIAL — per dwelling unit
(a) Single family
(b) Multi -family
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(c) Retail
(C) Office
(d) K-12 Educational Facilities
(c) Industrial/Manufacturing
New CCI — Base CCI
% Increase = x 100
Base CCI
2024 2025
PARKS IMPACT FEES
$ 3,773
$ 3,287
$ 1,726
$ 1,555
$ 312
$ 863
$ 3,835
$ 3,341
$ 1,754
$ 1,581
$ 317
$ 877
1.64%
1.64%
1.62%
1.67%
1.60%
1.62%
19
RESIDENTIAL — per dwelling unit
(a) Single family
(b) with fire sprinkler system installed
(c) Multi -family
COMMERCIAL/NON-RESIDENTIAL
- per 1,000 square feet of development
(c) Retail
(c) Office
(c) Industrial/Manufacturing
% Increase =
New CCI — Base CCI
x 100
Base CCI
2024 2025
FIRE IMPACT FEES
$ 2,363
$ 2,221
$ 2,722
$ 2,647
$ 1,033
$ 221
$ 2,402
$ 2,258
$ 2,767
$ 2,691
$ 1,050
$ 225
1.65%
1.67%
1.65%
1.66%
1.65%
1.81%
20
Park Impact Fee Revenue by Year (2020- 2024 YTD)
$1.0M
$0.8M
$0.6M
$0.4M
$O.2M
$0.0M
Fire Impact Fee Revenue by Year (2020- 2024 YTD)
1.0M
0.8M
0.6M
0.4M
0.2M
0.0M
.42M
0.11 M
2020 2021 2022 2023 2024 YTD
21
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City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
August26, 2024 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams
Councilmembers Present: De'Sean Quinn, Chair; Tosh Sharp, Jovita McConnell
Staff Present:
I. BUSINESS AGENDA
Tony Cullerton, Brandon Miles, David Rosen, Mike Marcum
A. Ordinance: Park & Fire Impact Fees
Staff is seeking approval of an ordinance to update the Fire and Park Impact Fee schedules
*for 2025 to include revised rate structures reflecting current economic conditions.
Committee Recommendation
Unanimous approval. Forward to September 16, 2024 Regular Consent Agenda.
B. Lease Agreement: City Copiers
Staff is seeking approval of a new 60-month equipment lease not to exceed $77,000 for copiers
in Finance, City Clerk, Tukwila Community Center, and Public Works.
Committee Recommendation
Unanimous approval. Forward to September 16, 2024 Regular Consent Agenda.
C. General Fund Expenditure Report - July 2024
Staff presented the report.
Item(s) for follow-up:
Provide additional detail regarding animal control billing.
Committee Recommendation
Discussion only.
MISCELLANEOUS
The meeting adjourned at 6:04 p.m.
DQ
Committee Chair Approval
23