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HomeMy WebLinkAboutFS 2008-12-02 COMPLETE AGENDA PACKET s; P. Linder J. Distribution; ,`J� VyS( City ®f Tukw ila J. Duffle 3. Mo �9�s Morrow D. Robertson G. Labanara Finance K Saf C®mmiff K. Hougardy N. Olivas Q 1-4 Mayor Haggerten J. Pace ,10 Dennis Robertson, Chair R. Berr D. Speck C. O'Flaherty R. Still Pawn Linder B. Fletcher D.Tomaso 1908 D. Haynes Judge Walden ewe Hougardy S. Hunstock C. Parrish Kathy I ht. Hart B. Arthur V. Jessop K. Narog(cover) S. Kerslake S. Kirby (email) T. Kinlow S. Norris (email) K. Matei L Verner AGE NDA TUESDAy DECEMBER Z, 2008 CONFERENCE ROOM ##3; 5 PM -Item Action to be Taken Page 1. PRESENTATIONS 2. BUSINESS AGENDA a. South Correctional Entity (S.C.O.R.E.) a. Forward to 12/8 C.O.W. Pg.1 Interlocal Agreement; and 12/15 Regular. Rhonda Berry, City Administrator. b. Impact Fee Ordinances for Parks and Fire; b. Forward to 12/8 C.O.W. Pg.51 Lisa Verner, Project Manager. and 12/15 Regular. 3. ANNOUNCEMENTS 4. MISCELLANEOUS Next Scheduled Meetings Tuesday, December I6, 2008 Future Aaenda Items: Council Goal #3; work together in cooperation with nearby cities to address common problems (safety) in the Highway 99 corridor and Military Road. Animal Control status monitoring. Safety in Overnight Lodging (on hold pending outcome of court case). Panhandle ordinance. The City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206 -433 -1800 for assistance. MEMORANDUM TO: Finance and Safety Committee FROM: Mayor's Office DATE: November 12, 2008 SUBJECT: SCORE Jail Documents Attached for Committee review and recommendation are the following documents: 1) An Ordinance authorizing execution of an interlocal agreement Relating to the South Correctional Entity (SCORE) facility and formation of the SCORE Development Authority 2) SCORE Interlocal Agreement 3) Charter of the SCORE Public Development Authority 4) SCORE By -laws Also included for informational purposes is an ordinance that the Renton City Council will need to pass authorizing the creation of the SCORE PDA. As you will remember, the City of Renton has been the lead agency on this partnership because of Renton staffs experience and expertise in jail matters. The SCORE project is on an aggressive timeline. A potential site has been determined and due diligence on the property is in process. Council's swift consideration of this matter is critical to our ultimate deadline of having the facility operational by 3 quarter 2011. Swift action, however, is not intended to short- circuit Council having a complete understanding of the City's obligations to this project. At this writing the question of the upper limit of the financial obligation and a question relating to future annexations are still being worked out. It is anticipated that those questions will be answered prior to the Committee meeting. If not, committee members can determine if there is enough substantive information to move this topic forward for discussion at COW. W:SCOREcovermemo_F&S.doc DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON AUTHORIZING THE EXECUTION OF AN INTERLOCAL AGREEMENT RELATING TO THE SOUTH CORRECTIONAL ENTITY FACILITY AND THE FORMATION OF THE SOUTH CORRECTIONAL ENTITY FACILITY DEVELOPMENT AUTHORITY. WHEREAS, the City of Tukwila, Washington (the "City is authorized by Chapter 70.48 RCW to contract for, establish and maintain correctional facilities in furtherance of public safety and welfare; and WHEREAS, the City currently contracts with other local governments within the State of Washington for correctional services at a great expense to the City; and WHEREAS, Chapter 39.34 RCW, the Interlocal Cooperation Act, authorizes municipalities in Washington to enter into agreements for the joint undertaking of certain projects as provided therein; and WHEREAS, the Cities of Auburn, Federal Way, Des Moines, Renton, Burien, SeaTac, and Tukwila, Washington (the "Member Cities recognize and find that there is a public need for a new correctional facility to serve the South King County region and to provide correctional services at a lower total cost to the participating Member Cities than currently available alternatives or than the participating Member Cities could individually provide; and WHEREAS, the Member Cities now desire to enter into an interlocal agreement (the "Interlocal Agreement to form a governmental administrative agency known as the South Correctional Entity "SCORE to establish and maintain a consolidated correctional facility (the "SCORE Facility to serve the Member Cities and federal and state agencies and other local governments that may contract with SCORE in the future to provide correctional services essential to the preservation of the public health, safety and welfare; and WHEREAS, the Member Cities are considering the formation of a public corporation for the purpose of issuing and servicing bonds that are secured by the full faith and credit of the Member Cities in order to provide for the financing of the SCORE Facility; and WHEREAS, the City of Renton, Washington has agreed to act as the host city for the formation of the public corporation, subject to the approval of each Member City; and WHEREAS, the establishment and maintenance of the SCORE Facility will be of substantial benefit to the Member Cities and the public in general; NOW, THEREFORE, THE CITY COUNCIL, OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Approval of Interlocal Agreement. The Mayor of the City is hereby authorized to execute the interlocal agreement with the Cities of Renton, Auburn, C \Documents and Settings \All "Users Desktop Kelly \MSDATA Ordinances \SCORE.doc RB:ksn 11/13/2003 Page 1 of 3 Federal Way, Des Moines, Burien, and SeaTac, Washington, substantially in the form as attached hereto as Exhibit A and incorporated herein by this reference (the "Interlocal Agreement for the creation of a governmental administrative agency pursuant to RCW 39.34.030(3) to be known as the South Correctional Entity "SCORE The Mayor and other appropriate officers of the City are authorized and directed to take any and all such additional actions as may be necessary or desirable to accomplish the creation of SCORE. Section 2. Approval of Formation of the Authority. Pursuant to Chapter 39.34 RCW and RCW 35.21.730 through RCW 35.21.755, the City hereby approves the creation of a public corporation by the City of Renton to be designated as the South Correctional Entity Facility Public Development Authority (the "Authority The purpose of the Authority is to provide an independent legal entity under State law to issue debt to finance and refinance the acquisition, construction, improvement and equipping of a correctional facility (the "SCORE Facility Such debt may be issued in one or more series, may be in the form of bonds, notes or other evidences of indebtedness to provide interim and permanent financing for the SCORE Facility and thereafter, to finance or refinance equipment, completion, expansion and other capital improvements essential to maintain the SCORE Facility's functionality. Such bonds, notes, and other evidences of indebtedness are collectively referred to herein as the "Bonds." The proposed form of ordinance to be considered by the City Council of the City of Renton, along with the Charter and the Bylaws of the Authority, drafts of which are attached hereto, as Exhibits B, C and D, respectively, are hereby approved. The City Council hereby approves the formation by the City of Renton of the Authority by the approval of such ordinance, Charter and Bylaws substantially in the forms presented to this Council. Section 3. Limited Liability; Independent Obligations. The Authority shall be an independent legal entity exclusively responsible for its own debts, obligations and liabilities. All liabilities incurred by the Authority shall be satisfied exclusively from the assets and credit of the Authority. No creditor or other person shall have any recourse to the assets, credit, or services of the City on account of any debts, obligations, liabilities, acts, or omissions of the Authority. Section 4. City' Contributions to Operations and Bonds. A. The Member Cities shall pay an allocable portion of the budgeted expenses of maintenance and operation of the SCORE Facility not paid from other sources, which allocable portion shall be determined as provided in the Interlocal Agreement. In addition to the foregoing commitment, each Member City shall contribute funds in the percentages provided for in the Interlocal Agreement, which for the City is equal to 8 to pay debt service on Bonds as the same shall become due and payable and to pay administrative expenses of the Authority with respect to the Bonds (the "Capital Contribution The authorization contained in this ordinance is conditioned upon the issuance of Bonds not exceeding the aggregate principal amount of (not including any bonds or notes to be refunded with proceeds of such Bonds) without obtaining additional Council approval. B. No Member City shall be obligated to pay the Capital Contribution of any other Member City; the obligations of the City with respect to the Bonds shall be limited to its 8% allocable share of such obligations; all such payments shall be made by the City without regard to the payment or lack thereof by any other jurisdiction; and each Member City shall be obligated to budget for and pay its Capital Contribution unless relieved of such payment in accordance with the Interlocal Agreement. All payments with respect to the Bonds shall be made to SCORE in its capacity as administrator and servicer of the Bonds to be issued by the Authority. The obligation of the City to pay its Capital Contribution shall be an irrevocable full faith and credit obligation of the City, payable from property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the City on all of the taxable property within C: \Documents and Setting \All Users Desktop Kelly \MSDATA Ordinances \SCORE.doc RB:ksn 11/13/2008 Page 2 of 3 the City and other sources of revenues available therefore. The City hereby obligates itself and commits to budget for and pay its Capital Contribution and to set aside and include in its calculation of outstanding non -voted general obligation indebtedness an amount equal to the principal component of its Capital Contribution for so long as Bonds remain outstanding. Section 5. Preliminary Costs; Reimbursement. The City is hereby authorized to finance costs associated with the design, acquisition, construction, improvement and equipping of the SCORE Facility prior to the issuance of Bonds by the Authority pursuant to the terms of the Interlocal Agreement. Pursuant to U.S. Treasury Regulation Section 1.150 -2(e), the City reasonably expects to be reimbursed for such expenditures with proceeds of Bonds issued by the Authority. The maximum principal amount of Bonds expected to be issued for the SCORE Facility described in Section 2 is S Section 6. 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 7. 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'/ AUTHENTICA T'ED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: City Attorney's Office Attachment: Exhibit A Exhibit B Exhibit C Exhibit D Interlocal Agreement Ordinance Charter of the Authority Bylaws of the Authority Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: C` \Documents and Settings \All Users Desktop Kelly \MSDATA Ordinances \SCORE.doc RB:ksn 11/13/2008 Page 3 of 3 EXHIBIT A SCORE IN 'I'ERLOCAL AGREEMENT THIS AGREEMENT is entered into this 2008 by and among the Cities of Auburn, Des Moines, Federal Way, Renton, Tukwila, Burien and SeaTac, Washington (the "Member Cities all of which are municipal corporations under the laws and statutes of the State of Washington: RECITALS: WHEREAS, the Member Cities are authorized by chapter 70.48 RCW to contract for, establish and maintain correctional facilities in furtherance of public safety and welfare; and WHEREAS, the Member Cities currently contract with other local governments within the State of Washington for correctional services at a great expense to the City; and WHEREAS, chapter 39.34 RCW, the Interlocal Cooperation Act, authorizes municipalities in Washington to enter into agreements for the joint undertaking of certain projects as provided therein; and WHEREAS, the Member Cities now desire to foiiii a governmental administrative agency pursuant to RCW 39.34.030(3) known as the South Correctional Entity "SCORE to establish and maintain a consolidated correctional facility (the "SCORE Facility to serve the Member Cities and federal and state agencies and other local governments that may contract with SCORE in the future to provide correctional services essential to the preservation of the public health, safety and welfare; and WHEREAS, the Member Cities have determined that the SCORE Facility will provide improved correctional facilities within the boundaries of the consolidated service areas at a lower total cost to the participating Member Cities than currently available alternatives or than the participating Member Cities could individually provide; and WHEREAS, financing for the acquisition, construction, equipping, and improvement of the SCORE Facility will be provided by bonds issued by a public corporation created in accordance with this Agreement and pursuant to RCW 35.21.730 through 35.21.755 and secured by the full faith and credit of the Member Cities; and WHEREAS, the City of Renton has agreed to act as the host city for the formation of a public corporation to be known as the South Correctional Entity Facility Public Development Authority (the "SCORE Facility Public Development Authority subject to the approval of each Member City; and WHEREAS, the establishment and maintenance of the SCORE Facility will be of substantial benefit to the Member Cities and the public in general; NOW THEREFORE, it is hereby agreed and covenanted among the undersigned as follows: Page 1 of 12 P: \20358_DG120358_OIX Section 1. SCORE Facility: Authority (a) Administrative A2encv. There is hereby established a governmental administrative agency pursuant to RCW 39.34.030(3) to be known as the South Correctional Entity "SCORE SCORE shall initially consist of the Cities of Auburn, Des Moines, Federal Way, Renton, Tukwila, Burien and SeaTac, Washington (the "Member Cities (b) Powers of SCORE. SCORE shall have the power to acquire, construct, own, operate, maintain, equip, and improve a correctional facility (the "SCORE Facility and to provide correctional services and functions incidental thereto, for the purpose of detaining arrestees and sentenced offenders in the furtherance of public safety and emergencies within the jurisdiction of the Member Cities. The SCORE Facility may serve federal and state agencies as well as other municipal corporations "Subscribing Agencies which are in need of correctional facilities. Any agreement with a Subscribing Agency shall be in writing and approved by SCORE as provided herein. (c) Administrative Board. The affairs of SCORE shall be governed by an administrative board (the "Administrative Board formed pursuant to Section 4 of this Agreement. The Administrative Board shall have the authority to: Page 2 of 12 1. Recommend action to the legislative bodies of the Member Cities; 2. Establish a budget and approve expenditures; 3. Establish policies for investing funds and incurring expenditures of budget items for the SCORE Facility; 4. Review and adopt a personnel policy for the SCORE Facility; 5. Establish a fund, or special funds, as authorized by chapter 39.34 RCW for the operation of the SCORE Facility; 6. Conduct regular meetings as may be designated by the Administrative Board; 7. Determine what services shall be offered at the SCORE Facility and under what terms they shall be offered; 8. Enter into agreements with third parties for goods and services necessary to fully implement the purposes of this Agreement; 9. Establish rates for services provided to members, subscribers or participating agencies; 10. Direct and supervise the activities of the operations board created pursuant to Section 5 and the facility director selected pursuant to Section 6; P:120358_DG\20358_0IX 11. Enter into an agreement with a public corporation or otherwise to incur debt; 12. Make purchases or contract for services necessary to fully implement the purposes of this Agreement; 13. Enter into agreements with and receive and distribute funds from any federal, state or local agencies; 14. Receive and account for all funds allocated to the SCORE Facility from its members; 15. Purchase, take, receive, lease, take by gift, or otherwise acquire, own, hold, improve, use and otherwise deal in and with real or personal property, or any interest therein, in the name of the SCORE Facility; 16. Sell, convey, mortgage, pledge, lease, exchange, transfer and otherwise dispose of property and assets; 17. Sue and be sued, complain and defend, in all courts of competent jurisdiction in its name; 18. Make and alter bylaws for the administration and regulation of its affairs; 19. Enter into contracts with Subscribing Agencies to provide correctional services; 20. Employ employees as necessary to accomplish the teims of this Agreement; and 21. Engage in any and all other acts necessary to further the goals of this Agreement. Section 2. Duration of Agreement The initial duration of this Agreement shall be for a period of ten (10) years from its effective date and, thereafter, shall automatically extend for additional five (5) year periods unless terminated as provided in this Agreement. Notwithstanding the foregoing, this Agreement shall not terminate until all bonds or other obligations issued by the South Correctional Entity Facility Public Development Authority (the "SCORE Facility Public Development Authority as provide in Section 14 of this Agreement are no longer outstanding. Section 3. Withdrawal and Termination (a) Subject to Section 3(g) below, any Member City may withdraw its membership and terminate its participation in this Agreement by providing written notice and serving that notice on the other Member Cities on or before December 31 in any one -year. After providing appropriate notice as provided in this Section, that Member City's membership withdrawal shall Page 3 of 12 P:120358_DG120358_OIX become effective on the last day of the year following delivery and service of appropriate notice to all other Member Cities. (b) Subject to Section 2 above, four (4) or more Member Cities may, at any one time, by written notice provided to all Member Cities, call for a complete termination of SCORE and this Agreement. Upon an affirmative supermajority vote (majority plus one) by the Administrative Board, SCORE shall be directed to terminate business, and a date will be set for final termination, which shall be at least one (1) year from the date of the vote to telininate this Agreement. Upon the final termination date, this Agreement shall be fully terminated. (c) Subject to Section 3(g) below, in the event any Member City fails to budget and provide the required annual funding requirements for SCORE as provided in Section 14 hereof, the remaining Member Cities may, by majority vote, immediately declare the underfunding City to be terminated from this Agreement and to have forfeited all its rights under this Agreement as provided in Section 3(e). The remaining Member Cities may, at their option, withdraw SCORE's correctional services from that City, or alternatively, enter into a Subscribing Agency agreement with that City under terms and conditions as the remaining Member Cities deem appropriate. (d) Time is of the essence in giving any termination notice. (e) If an individual Member City withdraws its membership in SCORE, the withdrawing City will forfeit any and all rights it may have to SCORE's real or personal property, or any other ownership in SCORE, unless otherwise provided by the Administrative Board. (f) Upon termination of this Agreement, all property acquired during the life of this Agreement shall be disposed of in the following manner: 1. All real and personal property acquired pursuant to this Agreement shall be distributed to the Member Cities based on the Base Percentages (as defined in Section 14); and 2. All unexpected funds or reserve funds shall be distributed based on the percentage of average daily population at the SCORE Facility for the last three (3) years prior to the termination date of those Member Cities still existing on the day prior to the termination date. (g) Notwithstanding any of the other rights, duties or obligations of any Member City under this Section 3, the withdrawal of any Member City from this Agreement shall not discharge or relieve the Member City that has withdrawn pursuant to Section 3(a) or been terminated pursuant to Section 3(c) of its obligation to pay debt service on the bonds issued by the SCORE Facility Public Development Authority. A Member City may be relieved of its obligation under this Agreement to make payments with respect to its Capital Contribution (as defined in Section 14) if the Administrative Board, by supermajority vote (majority plus one), Page 4 of 12 P:120358_DG120358_OIX authorizes such relief based on a fmding that such payments are not required to pay debt service on bonds issued by the SCORE Facility Public Development Authority. Section 4. Administrative Board (a) Formation. An Administrative Board composed of the Mayor or his or her designee from each Member City shall govern the affairs of SCORE. (b) Allocation of Votes. Each Board member shall have an equal vote and voice in all Board decisions. (c) Voting Requirements. Votes regarding debt, approval of the budget, employment of the Facilities Director, and approval of labor contracts shall require an affiimative vote of a supermajority (majority plus one) of the Member Cities, two (2) of which shall have the highest and the second highest average daily population at the SCORE Facility calculated at the time of the vote. (d) Parliamentary Authority. Unless otherwise provided, Robert's Revised Rules of Order (newly revised) shall govern all procedural matters relating to the business of the Administrative Board. (e) Officers of the Administrative Board. Members of the Administrative Board shall select a Presiding Officer from its Members, together with such other officers as a majority of the Administrative Board may determine. Subject to the control of the Administrative Board, the Presiding Officer shall have general supervision, direction and control of the business and affairs of SCORE. On matters decided by the Administrative Board, the signature of the Presiding Officer alone is sufficient to bind SCORE. (f) Meetings of the Administrative Board. There shall be a minimum of two (2) meetings each year, and not less than fifteen (15) days notice shall be given to all members prior to any such meeting. Unless otherwise designated by the Presiding Officer, the first meeting shall be held on the second Tuesday of February of each year to review the prior year's service. The second meeting shall be on the second Tuesday of September of each year to consider and adopt a budget for the following fiscal year. Other meetings may be held upon request of the Presiding Officer or any two members. All meetings shall be open to the public to the extent required by chapter 42.30 RCW. Four (4) members of the Administrative Board must be present at any meeting of the Administrative Board to comprise a quorum, and for the Administrative Board to transact any business. Proxy voting shall not be allowed. Members of the Administrative Board may participate in a meeting through the use of any means of communication by which all members and members of the public participating in such meeting can hear each other during the meeting. Any members of the Administrative Board participating in a meeting by such means is deemed to be present in person at the meeting for all purposes including, but not limited to, establishing a quorum. Page 5of12 P:120358_D G12 0358_01 X (g) Bylaws. The Administrative Board shall be authorized to establish bylaws that govern procedures of that Board and the SCORE Facility's general operations. (h) Administrative Board Review. A general or particular authorization or review and concurrence of the Administrative Board by majority vote shall be necessary for all capital expenditures or contracts in excess of $50,000. Section 5. Operations Board (a) Formation. There is further established an operations board (the "Operations Board which shall consist of the Police Chief of each Member City or his or her designee. Additionally, the Police Chiefs of the Subscribing Agencies shall, by majority vote, elect up to two (2) at -large member to represent the police depai tinents of the Subscribing Agencies. At the time set for election of the at -large members, only the Subscribing Agencies representatives, then in attendance, will participate in the election. The Member Cities' Operations Board representatives shall not participate in the at -large member elections. The at -large members shall serve one -year terms, unless otherwise determined by majority vote of the Operations Board. The purpose and duties of the Operations Board shall be established by the Administrative Board. (b) Voting and Meetines of the Operations Board. Each Operations Board member shall have an equal vote in all Operations Board decisions. The Operations Board shall be authorized to establish bylaws that govern its procedures. Unless otherwise provided, Robert's Revised Rules of Order shall govern all procedural matters relating to the business of the Operations Board. The Operations Board shall elect a Presiding Officer from its members and shall likewise determine the time and place of its meetings; at least one (1) regular meeting shall be held each month at a time and place designated by the Presiding Officer or a majority of its members. Special meetings may be called by the Presiding Officer or any two (2) members upon giving all other members not less than 24 hours prior written notice (electronic or facsimile notice acceptable). In an emergency, the Operations Board may dispense with written notice requirements for special meetings, but must, in good faith, implement best efforts to provide fair and reasonable notice to all of the Operations Board Members. All meetings shall be open to the public to the extent required by chapter 42.30 RCW. Five (5) members of the Operations Board must be present at any meeting of the Operations Board to comprise a quorum, and for the Operations Board to transact any business. Proxy voting shall not be allowed. Members of the Operations Board may participate in a meeting through the use of any means of communication by which all members and members of the public participating in such meeting can hear each other during the meeting. Any members of the Operations Board participating in a meeting by such means is deemed to be present in person at the meeting for all purposes including, but not limited to, establishing a quorum. Section 6. Facility Director. Not later than one hundred eighty (180) days prior to the completion of the SCORE Facility, the Operations Board shall recommend to the Administrative Board a person to act as Page 6 of 12 P:\20358_DG120358_OIX the Facility Director (the "Director The Administrative Board may accept or reject the Operations Board recommendation. Such Director shall be responsible to the Administrative Board, shall advise same from time to time on a proposed budget and other appropriate means in order to fully implement the purposes of this Agreement. The Director shall administer the program in its day -to -day operations consistent with the policies adopted by the Administrative Board. Such Director shall have experience in technical, financial and administrative fields, and such appointment shall be on the basis of merit only. Section 7. Personnel Policy (a) The Operations Board shall submit to the Administrative Board within one hundred eighty (180) days prior to the completion of the SCORE Facility, a proposed personnel policy for the SCORE Facility for its approval, rejection or modification. All of such modifications or revisions shall be subject to the final approval of the Administrative Board. (b) Such personnel policy shall provide for the initial appoinlluent to the SCORE Facility's staff from the personnel presently, pelinanently appointed or assigned as corrections officers in the Member Cities. Additional employees shall be appointed by the Director upon meeting the qualifications established by the Operations Board and adopted by the Administrative Board. None of such employees shall be commissioned members of any emergency service, but may be eligible for membership under the Public Employees Retirement Systems (PERS), or Public Safety Employees Retirement System (PSERS), as provided by law. Section 8. Operations and Budget (a) The Director shall distribute a proposed budget to the Operations Board on or before August 1 of each year, which said budget shall then be provided to the Administrative Board no later than September 1 of such year. Thereafter, the Member Cities shall be advised of the programs and objectives as contained in said proposed budget, and of the required financial participation for the ensuing year. (b) The allocation of prorated financial participation among the Member Cities shall be calculated as provided in Section 14 hereof. Each Member City shall be unconditionally obligated to provide its allocable share of costs as provided in this Agreement. Section 9. Contracts and Support Services (a) The Administrative Board (or the Operations Board or the Director, if so designated by the Administrative Board) shall, as necessary, contract with local governments for the use of space for its operations, auxiliary services including but not limited to records, payroll, accounting, purchasing, and data processing, and for staff prior to the selection of a Director for the SCORE Facility. (b) The Member Cities hereby agree to furnish legal assistance, from time to time, as approved by the Administrative Board. The Administrative Board may contract with the City Attorney of a Member City, other local government, or independent legal counsel as necessary. Page 7 of 12 P:120358_DG120358_01X Section 10. Policy and System Evaluation The Director shall actively and continually consider and evaluate all means and opportunities toward the enhancement of operations effectiveness for correctional services so as to provide maximum and ultimate benefits to the members of the general public. The Director shall present his or her recommendations to the Operations Board from time to time. Any substantive change or deviation from established policy shall be subject to the prior approval of the Administrative Board. Section 11. Additional Services Authorized The Administrative Board shall evaluate and determine the propriety of including additional correctional services for local governments, whenever so required, and shall determine the means of providing such services, together with its costs and effects. These additional services may include, but shall not be limited to the following: alternatives to incarceration, inmate transportation systems, and consolidated court services. Section 12. Inventory and Pronerty (a) Equipment and furnishings for the operation of the SCORE Facility shall be acquired by SCORE as provided by law. If any Member City furnishes equipment or furnishings for SCORE's use, title to the same shall remain with the respective local entity unless that equipment is acquired by SCORE. (b) The Director shall, at the time of preparing the proposed budget for the ensuing year, submit to the Operations Board a complete inventory together with current valuations of all equipment and furnishings owned by, leased or temporarily assigned to SCORE. In case of dissolution of SCORE, such assigned or loaned items shall be returned to the lending governmental entity and all other items, including real property, or funds derived from the sale thereof, shall be distributed to Member Cities in accordance with Section 3(f) above. (c) Title to real property purchased or otherwise acquired shall be held in the name of SCORE; provided however, that for valuable consideration received, SCORE may convey ownership of any real property as may be approved by supermajority vote (majority plus one) of the Administrative Board. Section 13. Local Control Each Member City and Subscribing Agency shall retain the responsibility and authority for the operation of its police depaitnients, and for such equipment and services as are required at its place of operation to utilize the SCORE Facility. Page 8 of 12 P:120358_DG120358_0IX Section 14. SCORE Facility Financing and Construction: SCORE Facility Public Develonment Authority (a) SCORE Facility. In order to provide necessary services for the Member Cities and the Subscribing Agencies, SCORE shall acquire, construct, improve, equip, maintain and operate the SCORE Facility. The SCORE Facility is expected to be located in the City of Des Moines, Washington. Pursuant to RCW 35.21.740, the City of Des Moines hereby authorizes the City of Renton to operate the SCORE Facility Public Development Authority within the corporate limits of the City of Des Moines in a manner consistent with the teens of this Agreement. (b) Contracts for the SCORE Facility. The Administrative Board shall authorize, and the Presiding Officer of the Administrative Board, or his or her approved designee, will execute contracts for the development of the SCORE Facility. These contracts shall include, without limitation, contracts for architectural design and engineering, project management services; real estate acquisition, and construction. (c) SCORE Facility Public Development Authority. In order to finance costs of acquiring, constructing, improving and equipping the SCORE Facility, the City of Renton has agreed to form a public corporation pursuant to RCW 35.21.730 through 35.21.755 known as the South Correctional Entity Facility Public Development Authority. The purpose of the SCORE Facility Public Development Authority is to issue debt to finance and refmance the acquisition, construction, improvement and equipping of the SCORE Facility. Such debt may be issued in one or more series, may be in the form of bonds, notes or other evidences of indebtedness to provide interim and permanent financing for the SCORE Facility and thereafter, to finance or refinance equipment, completion, expansion and other capital improvements essential to maintain the SCORE Facility's functionality. Such bonds, notes, and other evidences of indebtedness are collectively referred to herein as the "Bonds." The Administrative Board shall serve ex officio as the Board of Directors of the SCORE Facility Public Development Authority as further provided in the Authority's organizational charter. Upon issuance of Bonds by the SCORE Facility Public Development Authority, Bond proceeds shall be deposited on behalf of SCORE and used for the purposes set forth herein. SCORE shall be obligated to make payments to the SCORE Facility Public Development Authority at the time and in the amounts required to pay principal of and interest on the Bonds and any administrative costs of the SCORE Facility Public Development Authority as a first priority and pledge of the revenues of SCORE. (d) SCORE Facility Financing. The Member Cities shall each pay an allocable portion of all aggregate capital and operating costs related to the SCORE Facility, less revenue received from Subscribing Agencies or other sources, as provided in this Agreement. Each Member City shall be billed for its total allocable capital and operating costs on a semiannual basis, or more frequently as determined by the Administrative Board, calculated as provided for in this Section. (1) Capital Contribution. Each Member City shall be obligated to pay an amount equal to its Base Percentage multiplied by the principal of and interest on Bonds as the same shall become due and payable and administrative expenses of the SCORE Page 9 of 12 P:120358 D020358 01X (2) Costs of Maintenance and Operation. Until the end of the first calendar year of operations of the SCORE Facility (estimated to be December 31, 2012), the allocable portion that each Member City shall be obligated to pay of costs of maintaining and operating the SCORE Facility and all costs of administering SCORE (the "Costs of Maintenance and Operation in such year shall be equal to the City's Base Percentage multiplied by the Costs of Maintenance and Operation. Commencing with the calendar year following the first calendar year of operations, the allocable portion that each Member City shall be obligated to pay of Costs of Maintenance and Operation shall be based on the Member City's average daily population in the SCORE Facility, as supplemented as necessary with the average daily population allocable to the Member Cities in all correctional facilities, for the 12 -month period ending June 30 of the preceding year. Commencing with the third calendar year of operations, the allocable portion that each Member City shall be obligated to pay of Costs of Maintenance and Operation shall be based on the Member City's average daily population in the SCORE Facility for the 12 -month period ending June 30 of the preceding year. [question for the working group how should extraordinary operations and maintenance costs (e.g. as a result of annexation) be allocated in the year that they are incurred (e) Allocation of Revenues. Revenues received in a calendar year from Subscribing Agencies or from sources other than the contributions described in Section 14(d) above shall be Page 10 of 12 Facility Public Development Authority with respect to the Bonds (the "Capital Contribution without regard to the payment or lack thereof by any other Member City. The "Base Percentage" is defined as a percentage equal to the 2007 average daily population allocable to the Member Cities in all correctional facilities. Those percentages are as follows: (i) Auburn twenty -nine (29 (ii) Des Moines five (5 (iii) Federal Way seventeen (17 (iv) Renton thirty-four (34 (v) Tukwila eight (8 (vi) Burien four (4 (vii) SeaTac three (3 No Member City shall be obligated to pay the Capital Contribution of any other Member City, and each Member City shall be obligated to budget for and pay its Capital Contribution unless relieved of such payment in accordance with Section 3(g). The obligation of each Member City to pay its Capital Contribution shall be an irrevocable full faith and credit obligation of such Member City, payable from property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the Member City on all of the taxable property within the Member City and other sources of revenues available therefor. Each Member City has or will agree to set aside and include in its calculation of outstanding nonvoted general obligation indebtedness an amount equal to the principal component of its Capital Contribution for so long as Bonds remain outstanding. P:120358 DG\20358 0JX used to reduce the Costs of Maintenance and Operation in the subsequent calendar year. Each Member City shall receive credit/benefit of the revenues discussed in this section based on that Member City's proportional average daily population. (f) Snecial Facility Designation. The SCORE Facility, including all equipment, furnishings, and fixtures is critical to the ability of the Member Cities and the Subscribing Agencies to provide necessary and secure correctional services and assure public safety. Consequently, the SCORE Facility is essential to the preservation of the public health, safety, and welfare. As a result, the SCORE Facility's equipment, furnishings, and fixtures are special facilities subject to unique standards. Accordingly, based on the facts presented in this subsection, it is herby resolved that the established policy of the Member Cities is that the SCORE Facility constitutes a "special facility" under RCW 39.04.280(1)(b), and all purchases of any kind or nature for the SCORE Facility shall be exempt from competitive bidding requirements as prescribed by Washington State statute but shall be governed by the procurement policy established by the Administrative Board as amended from time to time. Section 15. Preliminary Costs of the SCORE Facility; Bellevue Property The Administrative Board shall allocate costs associated with the design, acquisition, construction, improvement and equipping of the SCORE Facility prior to the issuance of the Bonds by the SCORE Facility Public Development Authority among the Member Cities by an affirmative vote of a supermajority (majority plus one) of the of the Member Cities, two (2) of which shall have the highest and the second highest average daily population in all correctional facilities calculated at the time of the vote. Any costs of the SCORE Facility paid by a Member City pursuant to this section may be reimbursed out of proceeds of Bonds to the extent permitted by law. The Member Cities hereby agree that any net proceeds received from the sale of the property located at 1440 116 Avenue NE, Bellevue, Washington and 1412 116 Avenue NE, Bellevue, Washington (estimated to be approximately $3,180,000) shall be deposited with SCORE and used to fmance costs associated with the design, acquisition, construction, improvement and equipping of the SCORE Facility. Section 16. Filing of Agreement Upon execution, this Agreement shall be filed as required in RCW 39.04.040. Section 17. Severability If any part, paragraph, section or provision of this Agreement is adjudged to be invalid by any court of competent jurisdiction such adjudication shall not affect the validity of any remaining section, part or provision of this Agreement. Page 11 of 12 P:120358_DG120358_OIX Section 18. Execution This Agreement, or amendments hereto, shall be executed on behalf of each Member City by its duly authorized representative and pursuant to an appropriate motion, resolution or ordinance of each Member City. This Agreement, or any amendment, shall be deemed adopted upon the date of execution by the last so authorized representative. Section 19. Hold Harmless The parties to this Agreement shall defend, indemnify and save one another harmless from any and all claims arising out of the perfoiiiiance of this Agreement, except to the extent that the harm complained of arises from the sole negligence of one of the participating members. Any loss or liability resulting from the negligent acts errors or omissions of the Administrative Board, Operations Board, Facility Director and or staff, while acting within the scope of their authority under this Agreement shall be borne by SCORE exclusively. Section 20. Counterparts This Agreement may be executed in any number of counterparts, each of whom shall be an original, but those counterparts will constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. CITY OF AUBURN CITY OF RENTON By: Mayor By: Mayor CITY OF DES MOINES CITY OF TUKWILA By: Mayor By: Mayor CITY OF FEDERAL WAY CITY OF BURIEN By: Mayor By: Mayor CITY OF SEATAC By: Mayor Page 12 of 12 P:12O358_DG120358_OIX EXHIBIT B ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE CREATION OF A PUBLIC CORPORATION TO BE KNOWN AS THE SOUTH CORRECTIONAL FACILITY PUBLIC DEVELOPMENT AUTHORITY; APPROVING A CHARTER AND BYLAWS; ESTABLISHING A BOARD OF DIRECTORS TO GOVERN THE AFFAIRS OF THE AUTHORITY; AND APPROVING PROCEDURES FOR THE CONDUCT OF ITS AFFAIRS. WHEREAS, pursuant to RCW 35.21.730 through 35.21.755, the City Council (the "Council of the City of Renton, Washington (the "City may authorize the creation of a public corporation as a separate legal entity to perform any lawful public purpose or public function as therein authorized; and WHEREAS, pursuant to chapter 39.34 RCW, the City has entered into the SCORE Interlocal Agreement (the "Interlocal Agreement with the Cities of Auburn, Des Moines, Federal Way, Tukwila, Burien and SeaTac, Washington (together with the City, the "Member Cities for the formation of a governmental administrative agency known as the South Correctional Entity "SCORE and WHEREAS, SCORE is responsible for the establishment and maintenance of a consolidated correctional facility (the "SCORE Facility to serve the Member Cities and federal and state agencies and other local governments that may contract with SCORE in the future to provide correctional services essential to the preservation of the public health, safety and welfare; and WHEREAS, the Member Cities have determined that the SCORE Facility will provide improved correctional facilities within the boundaries of the consolidated service areas at a lower total cost to the participating Member Cities than currently available alternatives or than the participating Member Cities could individually provide; and WHEREAS, the Interlocal Agreement contemplates that the City will create a public corporation for the purpose of issuing and servicing bonds that are secured by the full faith and credit of the Member Cities in order to finance the acquisition, construction, equipping, and improving of the SCORE Facility; and WHEREAS, the City will act as the host city for the formation of the public corporation, subject to the approval of each Member City; and WHEREAS, the City has determined that chartering a public corporation to function on its behalf in undertaking the acquisition, construction, equipping, and improvement of the SCORE Facility will create a highly focused and dedicated entity that will accelerate progress, provide for financing, pool limited resources and enhance opportunities to work with the Member Cities and others critical to the successful construction and operation of a regional correctional facility, all while ensuring appropriate public oversight and accountability; and WHEREAS, the Council has been presented with drafts of a proposed charter (the "Charter and bylaws (the "Bylaws for the establishment and chartering of a public corporation to be known as the South Correctional Entity Facility Public Development Authority, which will have as its purpose the issuance and servicing of one or more series of bonds or other obligations to provide fmancing for the acquisition, construction, equipping, and improving of a correctional facility pursuant to the terms of this ordinance and the Charter; and WHEREAS, it appears in the best interest of the City to approve the Charter and Bylaws for the South Correctional Entity Facility Public Development Authority as now proposed; BE IT ORDAINED by the Council of the City of Renton: Section 1. Authority Created City Liability Limited. A. Authority Created. The Council hereby authorizes the creation of a public corporation pursuant to RCW 35.21.730(5). The public corporation shall have all of the powers set forth in this ordinance, RCW 35.21.730 through 35.21.755, and its charter necessary to finance and refinance the acquisition, construction, equipping, and improvement of a regional correctional facility known as the South Correctional Entity Facility (the "SCORE Facility through the issuance and servicing of one or more series of bonds, notes or other obligations (collectively, the "Bonds and to perform any other function specified in its charter. B. Name. The name of the public corporation shall be the "South Correctional Entity Facility Public Development Authority" (hereinafter the "Authority C. Seal. The corporate seal of the Authority shall carry the name of the Authority. D. City Liability Limited. The Authority is an independent legal entity exclusively responsible for its own debts, obligations and liabilities. Except as specifically agreed in writing by the City, the Authority shall take no action that might impose liability upon the City. All liabilities incurred by the Authority shall be satisfied exclusively from the assets, credit, and properties of the Authority, and no creditor or other person shall have any right of action against or recourse to the City, its assets, credit, or services, on account of any debts, obligations, liabilities or acts or omissions of the Authority. The charter of the Authority shall provide that the Authority is organized pursuant to this ordinance and RCW 35.21.730 through 35.21.755 and state as follows: "[A]ll liabilities incurred by such public corporation, commission, or authority shall be satisfied exclusively from the assets and properties of such public corporation, commission, or authority and no creditor or -2- P:120358_DG120358_0J 1 11/12/08 other person shall have any right of action against the city, town, or county creating such corporation, commission, or authority on account of any debts, obligations or liabilities of such public corporation, commission, or authority." Such statement shall be displayed in a prominent location in the principal office or other offices of the Authority. It shall also be printed or stamped on all contracts, bonds, and other documents that may entail any debt or liability by the Authority. E. Contributions of the Cities. The City and the Cities of Auburn, Des Moines, Federal Way, Tukwila, Burien, and SeaTac, Washington (together with the City, the "Member Cities shall pay an allocable portion of the budgeted expenses of maintenance and operation of the SCORE Facility not paid from other sources, which allocable portion shall be determined as provided in the Interlocal Agreement. In addition to the foregoing commitment, each Member City shall contribute funds in the percentages provided for in the Interlocal Agreement to pay debt service on Bonds as the same shall become due and payable and to pay administrative expenses of the Authority with respect to the Bonds (the "Capital Contribution No Member City shall be obligated to pay the Capital Contribution of any other Member City; the obligations of each Member City with respect to the Bonds shall be limited to its allocable share of such obligations; all such payments shall be made by the Member City with out regard to the payment or lack thereof by any other jurisdiction; and each Member City shall be obligated to budget for and pay its Capital Contribution unless relieved of such payment in accordance with the Interlocal Agreement. All payments with respect to the Bonds shall be made to SCORE in its capacity as administrator and servicer of the Bonds to be issued by the Authority. The obligation of each Member City to pay its Capital Contribution shall be an irrevocable full faith and credit obligation of such Member City, payable from property taxes levied within the constitutional and statutory authority provided without a vote of the electors of the Member City on all of the taxable property within the Member City and other sources of revenues available therefor. Each Member City has or will obligate itself and commit to budget for and pay its Capital Contribution and to set aside and include in its calculation of outstanding nonvoted general obligation indebtedness an amount equal to the principal component of its Capital Contribution for so long as Bonds remain outstanding. Section 2. Powers Generally. Except as limited by the state constitution, state statute, this ordinance or the Charter of the Authority, the Authority shall have and may exercise all lawful powers necessary or convenient to effect the purposes for which the Authority is organized and to perform authorized corporate functions, as provided in its Charter. Pursuant to the Interlocal Agreement, the Authority may operate within the corporate limits of the City of Des Moines, Washington to accomplish the purposes set forth therein. Section 3. Limitation of Powers. The activities and transactions of the Authority shall be limited in the following respects: A. The Authority shall have no power of eminent domain nor any power to levy taxes or special assessments. -3- P:1203 58_D G120358_0J 1 11/12/G8 B. Except as otherwise agreed to by a Member City, the Authority may not incur or create any liability that permits recourse by any contracting party or member of the public to any assets, services, resources, or credit of a Member City. C. No funds, assets, or property of the Authority shall be used for any partisan political activity or to further the election or defeat of any candidate for public office; nor shall any funds or a substantial part of the activities of the Authority be used for publicity or educational purposes designed to support or defeat legislation pending before the Congress of the United States, or the legislature of the state or the Council of the Member Cities; provided, however, that funds may be used for representatives of the Authority to communicate with members of Congress, state legislators or city council members concerning funding and other matters directly affecting the Authority, so long as such activities do not constitute a substantial part of the Authority's and unless such activities are specifically limited in its charter. D. All funds, assets, or credit of the Authority shall be applied toward or expended upon services, projects, and activities authorized by its charter. No part of the net earnings of the Authority shall inure to the benefit of, or be distributable as such to, the board members or other private persons, except that the Authority is authorized and empowered to: (i) Reimburse Board Members, employees and others performing services for the Authority reasonable expenses actually incurred in performing their duties, and compensate employees and others performing services for the Authority a reasonable amount for services rendered; (ii) Assist board members or employees as members of a general class of persons to be assisted by a corporate approved project or activity to the same extent as other members of the class as long as no special privileges or treatment accrues to such board members or employees by reason of his or her status or position in the Authority; (iii) Defend and indemnify any current or former board member or employee and their successors against all costs, expenses, judgements, and liabilities, including attorneys' fees, reasonably incurred by or imposed upon him or her in connection with or resulting from any claim, action, or proceeding, civil or criminal, in which he or she is or may be made a party by reason of being or having been a board member or employee, or by reason of any action alleged to have been taken or omitted by him or her in such position, provided that he or she was acting in good faith on behalf of the Authority and within the scope of duties imposed or authorized by law. This power of indemnification shall not be exclusive of other rights to which board members or employees may be entitled as a matter of law; (iv) Purchase insurance to protect and hold personally harmless any of its board members, employees and agents from any action, claim, or proceeding instituted against the foregoing individuals arising out of the performance, in good faith, of duties for, or employment with, the Authority and to hold these individuals harmless from any expenses connected with the defense, settlement, or monetary judgements from such actions, claims, or proceedings. The purchase of such insurance and its policy limits shall be discretionary with the board, and such insurance shall not be considered to be -4- P: 120358_DG\20358_0J 1 11/12/08 compensation to the insured individuals. The powers conferred by this subsection shall not be exclusive of any other powers conferred by law to purchase liability insurance; and (v) Sell assets for a consideration greater than their reasonable market value or acquisition costs, charge more for services than the expense of providing them, or otherwise secure an increment in a transaction, or carry out any other transaction or activity, as long as such gain is not the object or purpose of the Authority's transactions or activities and is applied to or expended upon services, projects, and activities as aforesaid. E. The Authority shall not issue shares of stock, pay dividends, make private distribution of assets, make loans to its board members or employees or otherwise engage in business for private gain. Section 4. Charter. The charter of the Authority (the "Charter is hereby approved in the foim set forth at Exhibit A. The Charter shall be issued in duplicate originals, each signed by the City Mayor and bearing the City seal attested by the City Clerk. One original shall be filed with the Clerk of the Council and filed as a public record. A duplicate original shall be provided to the Authority. Amendments to the Charter may be initiated by the Board Members or by the Renton City Council. All amendments to the Charter initiated by the Renton City Council shall be presented to the Board for consideration and approval and shall not become effective unless approved by a majority vote of the Board. All amendments to the Charter, regardless of how initiated, shall become effective only following approval by ordinance approved by the Renton City Council and the Councils of at least three other Member Cities. After adoption of a Charter amendment, the revised Charter shall be issued and filed in the same manner as the original Charter. Section 5. Effect of Issuance of Charter. The Authority shall commence its existence effective upon fulfillment of the following: (a) Each of the Councils of the Member Cities has approved the creation of the Authority by the City; (b) This ordinance has become effective; and (c) The charter shall have been executed, and the Charter and bylaws of the Authority (the "Bylaws shall be on file with the City Clerk. Except as against the state or the City in a proceeding to cancel or revoke the Charter, delivery of a duplicate original Charter shall conclusively establish that the Authority has been established in compliance with the procedures of this ordinance. Section 6. Board of Directors: Officers. The SCORE Administrative Board established pursuant to Section 4 of the Interlocal Agreement shall act ex officio as the board of -5- P:'20358_D G\20358_0J 1 11/12/08 the Authority (the "Board All corporate powers of the Authority shall be exercised by or under the authority of the Board; and the business, property and affairs of the authority shall be managed under the supervision of the Board, except as may be otherwise provided by law or in the Charter. The Board shall have officers as provided in the Charter. Section 7. Meeting. Within ninety (90) days after issuance of the Charter, the City Mayor shall call an organizational meeting of the initial Board, giving at least ten (10) days' advance written notice to each, unless waived in writing. At such meeting, the Board shall organize itself, appoint officers, and select its place of business. All Board meetings, including executive, all other permanent and ad hoc committee meetings, shall be open to the public to the extent required by chapter 42.30 RCW. Section 8. Bylaws. The Bylaws of the Authority are hereby approved in the form set forth at Exhibit B. The power to alter, amend, or repeal the Bylaws or adopt new ones shall be vested in the Board except as otherwise provided in the Charter. The Bylaws shall be consistent with the Charter. In the event of a conflict between the Bylaws and this ordinance or the Charter, this ordinance or the Charter, as the case may be, shall control. Section 9. Funds of the Authority. All money belonging to or collected for the use of the Authority coming into the hands of any officer thereof shall immediately be deposited with a legal depository to the credit of the Authority for the benefit of the funds to which they belong. The use of funds of the Authority for any purpose not authorized by law by any officer having possession or control thereof is prohibited. Section 10. Bonds and Notes. Bonds issued by the Authority may be secured by the full faith and credit of the Authority or may be made payable solely out of certain revenues and receipts as may be designated in the proceedings under which the issuance of the bonds or notes are authorized. All Bonds issued shall carry in a prominent place thereon the statement set forth in Section l (D) of this ordinance. All Bonds or liabilities occurring thereunder shall be satisfied exclusively from the assets or credit of the Authority, and no creditor or other person shall have any recourse to the assets, credit, or services of the City thereby, unless the City shall expressly, in writing, guarantee such debt. Bonds of the Authority may be sold at such price or prices, at public or private sale, in such manner and from time to time as may be determined by the Authority. The Authority may issue Bonds from time to time that are secured by the full faith and credit of the Member Cities in the aggregate principal amount of not to exceed (not including any bonds or notes to be refunded with proceeds of such Bonds) for the purposes set forth in the Interlocal Agreement. Bonds issued in excess of such amount shall require additional council approval by each Member City. Bonds may be payable at such place or places whether within or without the State, may bear interest at such rate or rates, may be in such form and denominations and of such tenor and maturities, may be in bearer form or in registered form as to principal and interest or as to principal alone, reserve such rights to redeem at such price or prices and after such notice or notices and on such terms and conditions, all as the Authority may determine and provide in the proceedings under which such Bonds shall be issued. -6- P:120358_D G\20358_0J 1 11/12/08 The Authority may at the time of the issuance of such Bonds make such covenants with the purchasers and holders of said Bonds as it may deem necessary to secure and guarantee the payment of the principal thereof and the interest thereon, including but not limited to: covenants to set aside adequate reserves to guarantee payment of principal and interest; to appoint a trustee or trustees to safeguard the expenditure of the proceeds of sale of such Bonds and to rake possession and use or operate and manage corporate assets securing the Bonds in event of default or insolvency or the Authority, with such powers as maybe contained in any covenants relating to the Bonds; and to limit the amount, time, and conditions under which additional Bonds may be issued or debts incurred. The Authority may pay expenses, premiums and commissions which it may deem necessary in connection with the issuance and sale of its Bonds and take such other actions or make such commitments as are necessary or convenient in the issuance and servicing of such Bonds and as are consistent with this ordinance although not enumerated herein. Section 11. Discrimination Prohibited. Membership to the Board shall not be directly or indirectly based upon or limited by age, race, color, religion, sex, national origin, or the presence of any physical handicap. Furthermore, the Authority shall not discriminate in any matter related to employment because of age, race, color, sex, national original, or the presence of any physical handicap. The Authority shall, in all solicitation or advertisements for employees placed by or on behalf of the Authority, if any, state that all qualified applicants will receive consideration for employment without regard to age, race, color, religion, sex, national origin, or the presence of any physical handicap. Section 12. Dissolution. A. If five of the Councils of the Member Cities, each by ordinance, make an affirmative finding that dissolution is warranted for any reason, the existence of the Authority shall be terminated by ordinance of the Renton City Council. Dissolution shall be accomplished as provided in the Charter, and shall not take effect until proper provision has been made for disposition of all Authority assets, if any. B. Upon enactment of an ordinance by the Renton City Council for dissolution of the Authority, the Authority shall file a dissolution statement signed by its president setting forth: i) The name and principal office of the Authority; (ii) The debts, obligations and liabilities of the Authority, and the property and assets available to satisfy the same; the provisions to be made for satisfaction of outstanding liabilities and performance of executory contracts; and the estimated time for completion of its dissolution; (iii) Any pending litigation or contingent liabilities; (iv) The Board resolution providing for such dissolution and the date(s) and proceedings leading toward its adoption, whenever the dissolution be voluntary; and -7- P:\20358_DG\20358_0J 1 11/12/08 (v) A list of persons to be notified upon completion of the dissolution. The City Mayor shall review the dissolution statement filed and oversee the dissolution to protect the public interest and prevent impairment of obligation, or if so authorized by law, authorize or initiate proceedings in the Superior Court for the appointment and supervision of a receiver for such purposes. Upon satisfactory completion of dissolution proceedings, the City shall indicate such dissolution by inscription of "charter cancelled" on the original Charter of the Authority, on file with the Clerk of the Council and, when available, on the duplicate original of the Authority, and the existence of the Authority shall cease. The City shall give notice thereof pursuant to Washington State law and to other persons requested by the Authority in its dissolution statement. C. Upon dissolution of the Authority or the winding up of its affairs, title to all remaining assets or property of the Authority shall vest in SCORE as provided in the Charter. D. Notwithstanding the foregoing, the Authority shall not be dissolved until all Bonds issued by the Authority are no longer outstanding. [question for the working group would you like to add a provision that automatically dissolves the Authority once the debt is paid off'?] Section 13. Public Corporation. The Authority is a public corporation created pursuant to RCW 35.21.730 through 35.21.755 as a separate legal entity from the City. Section 14. Ancillary Authority. The administrative staff of the City are granted all such power and authority as reasonably necessary or convenient to enable each of them to administer this ordinance efficiently and to perform the duties imposed in this ordinance or the Charter. Section 15. Liberal Construction. This ordinance shall be liberally construed so as to effectuate its purposes and the purposes of RCW 35.21.730 through 35.21.755. Section 16. Effective Date. This ordinance shall take effect and be in force from and after passage and publication as provided by law. PASSED by Council this day of 2008. By -8- Council President P:120358_D G120358_0J 1 11/12/08 [SEAL] ATTEST: APPROVED by the Mayor this day of 2008. City Finance Director Approved as to form only: City Attorney Date of Publication of Notice of Public Hearing: Effective Date of Ordinance: By -9- City Mayor P:120358_DG120358_0J 1 11/12/08 Exhibit C CHARTER OF SOUTH CORRECTIONAL ENTITY FACILITY PUBLIC DEVELOPMENT AUTHORITY ARTICLE I ARTICLE II ARTICLE III ARTICLE IV ARTICLE V ARTICLE VI ARTICLE VII ARTICLE VIII ARTICLE IX ARTICLE X ARTICLE XI ARTICLE XII ARTICLE XIII Charter i TABLE OF CONTENTS NAME AND AUTHORITY SEAL AUTHORITY FOR SOUTH CORRECTIONAL ENTITY FACILITY PUBLIC DEVELOPMENT AUTHORITY; LIMIT ON LIABILITY Section 1. Authority Section 2. Limitation on Liability Section 3. Mandatory Disclaimer DURATION OF AUTHORITY PURPOSE OF AUTHORITY POWERS OF AUTHORITY LIMITS ON AUTHORITY POWERS ORGANIZATION OF AUTHORITY Section 1. Board of Directors and Tenure Section 2. Board Concurrence and Quorum Defined Section 3. Right to Indemnification Section 4. Conflict of Interest and Code of Ethics OFFICERS OF AUTHORITY Section 1. Officers and Division of Duties Section 2. Committees Page 1 1 1 1 2 3 3 3 4 5 5 6 6 6 6 6 7 7 7 7 7 7 8 8 8 8 9 9 9 9 9 9 9 10 10 COMMENCEMENT OF AUTHORITY BYLAWS MEETINGS OF THE AUTHORITY Section 1. Time and Place of Meetings Section 2. Notice of Meetings Section 3. Notice of Special Board Meetings Section 4. Waiver of Notice Section 5. Notice to City Council Section 6. Open Public Meetings Section 7. Telephonic Participation Section 8. Parliamentary Authority Section 9. Minutes CONSTITUENCY AMENDMENTS TO CHARTER AND BYLAWS Section 1. Proposals to Amend Charter and Bylaws Section 2. Proposals Initiated by the Board Section 3. Board Consideration of Proposed Amendments Section 4. Vote Required for Amendments to Charter or Bylaws P: 120358_DG120358_01Y 11/12/08 Section 5. City Council Approval of Proposed Charter Amendments 10 ARTICLE XIV MISCELLANEOUS 10 Section 1. Geographic Limitation 10 Section 2. Safeguarding of Funds 11 Section 3. Public Records 11 Section 4. Reports and Info nation; Audits 11 Section 5. Dissolution 11 Section 6. Nondiscrimination 12 Section 7. Nonexclusive Charter 12 ARTICLE XV APPROVAL OF CHARIER 12 Charter ii P:\20358_DG\20358_0IY 11/12/08 Section 1. Authority. CHARTER OF SOUTH CORRECTIONAL ENTITY FACILITY PUBLIC DEVELOPMENT AUTHORITY Section 2. Limitation on Liability. ARTICLE I NAME AND AUTHORITY SEAL The name of this corporation shall be the "South Correctional Entity Facility Public Development Authority" (hereinafter referred to as the "Authority The corporate seal of the Authority shall be a circle with the name of the Authority and the word "SEAL" inscribed therein. ARTICLE II AUTHORITY FOR SOUTH CORRECTIONAL ENTITY FACILITY PUBLIC DEVELOPMENT AUTHORITY; LIMIT ON LIABILITY The Authority is a public corporation organized pursuant to Revised Code of Washington "RCW 35.21.730 through 35.21.755, as the same now exist or may hereafter be amended, or any successor act or acts (the "Act and Ordinance No. of the City of Renton, Washington, passed on 2008 (the "Ordinance Formation of the Authority was approved by Ordinance No. of the City of Auburn, passed on 2008, Ordinance No. of the City of Des Moines, passed on 2008, Ordinance No. of the City of Federal Way, passed on 2008, Ordinance No. of the City of Tukwila, passed on 2008, Ordinance No. of the City of Burien, passed on 2008, and Ordinance No. of the City of SeaTac, passed on 2008. All liabilities incurred by the Authority shall be satisfied (a) in the case of obligations or liabilities of the Authority which are not limited recourse in nature, exclusively from the assets, credit, and properties of the Authority, or (b) in the case of obligations or liabilities of the Authority which, by their terms, are limited recourse obligations, from such assets, properties or revenues of the Authority as shall be specifically pledged thereto or otherwise identified as being the source of payment of such limited recourse obligations or liabilities, and no creditor or other person shall have any right of action against or recourse to the Cities of Renton, Auburn, Des Moines, Federal Way, Tukwila, Burien and SeaTac, Washington (collectively, the "Member Cities its assets, credit, or services, on account of any debts, obligations, liabilities or acts or omissions of the Authority. Section 3. Mandatory Disclaimer. The following disclaimer shall be posted in a prominent place where the public may readily see it in the Authority's principal and other offices. It shall also be printed or stamped on all contracts, bonds, and other documents that may entail any debt or liability by the Authority. The South Correctional Entity Facility Public Development Authority is organized pursuant to Ordinance No. of the City of Renton, Washington adopted on 2008, and approved by Ordinance No. of the City of Auburn, Washington adopted on 2008, Ordinance No. of the City of Des Moines, Washington adopted on 2008, Ordinance No. of the City of Federal Way, Washington adopted on 2008, Ordinance No. of the City of Tukwila, Washington adopted on 2008, Ordinance No. of the City of Burien, Washington adopted on 2008, and Ordinance No. of the City of SeaTac, Washington adopted on 2008, each as existing or as hereinafter amended, and RCW 35.21.730 through 35.21.755. RCW 35.21.750 provides as follows: "[All! liabilities incurred by such public corporation, commission, or authority shall be satisfied exclusively from the assets and properties of such public corporation, commission, or authority and no creditor or other person shall have any right of action against the city, town, or county creating such corporation, commission, or authority on account of any debts, obligations or liabilities of such public corporation, commission, or authority." Any of the Member Cities may, by ordinance or contract or pursuant to interlocal agreement, agree to pay (on a contingent basis or otherwise), all or any portion of the obligations of the Authority; however, (1) no Member City shall be obligated beyond the proportion or sum specified by ordinance or contract, and (2) no Member City shall be obligated, directly or indirectly for the obligations of any other Member City. Charter 2 In no event shall the obligations of the Authority be payable by recourse against any properties, assets or revenues of the Cities of Renton, Auburn, Des Moines, Federal Way, Tukwila, Burien or SeaTac, Washington or any other political subdivision of the State of Washington. No person to whom such obligations are owed shall have any recourse or right of action against the Cities of Renton, Auburn, Des Moines, Federal Way, Tukwila, Burien, or SeaTac, Washington, the State of Washington or any other political subdivision thereof on account of such obligations, except to enforce the payments obligated to be made by ordinance by each of the Cities of Renton, Auburn, Des Moines, Federal Way, Tukwila, Burien or SeaTac, Washington. P:120358_DG120358_OIY 11/12/08 Charter 3 ARTICLE III DURATION OF AUTHORITY The duration of this corporation shall be perpetual. ARTICLE IV PURPOSE OF AUTHORITY Pursuant to chapter 39.34 RCW, the Member Cities have entered into the SCORE Interlocal Agreement (the "Interlocal Agreement for the formation of a governmental administrative agency known as the South Correctional Entity "SCORE SCORE is responsible for the establishment and maintenance of a consolidated correctional facility (the "SCORE Facility to serve the Member Cities and federal and state agencies and other local governments that may contract with SCORE to provide correctional services essential to the preservation of the public health, safety and welfare. The purpose of the Authority is to provide an independent legal entity under RCW 35.21.730 -.755 and the Ordinance to issue debt to finance and refinance the acquisition, construction, equipping and improvement of the SCORE Facility. Such debt may be issued in one or more series, may be in the foini of bonds, notes or other evidences of indebtedness to provide interim and permanent financing for the SCORE Facility and thereafter, to finance or refinance equipment, completion, expansion and other capital improvements essential to maintain the SCORE Facility's functionality as deemed necessary by the Board. Such bonds, notes, and other evidences of indebtedness are collectively referred to herein as the "Bonds." Bonds may be issued from time to time by the Authority upon a supermajority vote of the Board. A "supermajority vote of the Board," as used in this Article, may be obtained at any regular or special Board meeting by an affirmative vote of a majority plus one of the Board members, two of which shall have the highest and the second highest average daily population at the SCORE Facility calculated at the time of the vote. For the purpose of securing the exemption from Federal income taxation for interest on obligations of the Authority, the Authority constitutes an authority and instrumentality of the City of Renton, Washington (within the meaning of those terms in regulations of the United States Treasury and rulings of the Internal Revenue Service prescribed pursuant to Section 103 and Section 115 of the Internal Revenue Code of 1986, as amended). ARTICLE V POWERS OF AUTHORITY The Authority shall have and may exercise all lawful powers conferred by State laws, the Ordinance, this Charter and its Bylaws. The Authority in all of its activities and transactions shall be subject to the powers, procedures, and limitations contained in the Ordinance. P:\ 20358_DG120358_OIY 11/12/08 ARTICLE VI LIMITS ON AUTHORITY POWERS The Authority in all activities and transactions shall be limited in the following respects: 1. The Authority shall have no power of eminent domain or any power to levy taxes or special assessments. 2. Except as otherwise agreed to by a Member City, the Authority may not incur or create any liability that permits recourse by any contracting party or member of the public to any assets, services, resources, or credit of a Member City. 3. No funds, assets, or property of the Authority shall be used for any partisan political activity or to further the election or defeat of any candidate for public office; nor shall any funds or a substantial part of the activities of the Authority be used for publicity or educational purposes designed to support or defeat legislation pending before the Congress of the United States, or the legislature of the State or the Council of a Member City; provided, however, that funds may be used for representatives of the Authority to communicate with members of Congress, State legislators or members of the Councils of the Member Cities concerning funding and other matters directly affecting the Authority, so long as such activities do not constitute a substantial part of the Authority's activities. 4. All funds, assets, or credit of the Authority shall be applied toward or expended upon services, projects, and activities authorized by this Charter. No part of the net earnings of the Authority shall inure to the benefit of, or be distributable as such to, Board Members, officers or other private persons, except that the Authority is authorized and empowered to: (A) Reimburse Board Members, employees and others performing services for the Authority reasonable expenses actually incurred in performing their duties, and compensate employees and others performing services for the Authority a reasonable amount for services rendered; Charter 4 (B) Assist Authority Board Members or employees as members of a general class of persons to be assisted by a corporate- approved project or activity to the same extent as other members of the class as long as no special privileges or treatment accrues to such Board Member or employee by reason of his or her status or position in the Authority; (C) Defend and indemnify any current or former Board Member or employee and their successors against all costs, expenses, judgments, and liabilities, including attorneys' fees, reasonably incurred by or imposed upon him or her in connection with or resulting from any claim, action, or proceeding, civil or criminal, in which he or she is or may be made a party by reason of being or having been a Board Member or employee or by reason of any action alleged to have been taken or omitted by him or her in such position, provided that he or she was acting in good faith on behalf of the Authority and P:120358_DG120358_OIY 11/12/08 Charter 5 within the scope of duties imposed or authorized by law. This power of indemnification shall not be exclusive of other rights to which Board Members or employees may be entitled as a matter of law; (D) Purchase insurance to protect and hold personally harmless any current or former Board Member or employee and their successors from any action, claim, or proceeding instituted against the foregoing individuals arising out of the performance, in good faith, of duties for, or employment with, the Authority and to hold these individuals harmless from any expenses connected with the defense, settlement, or monetary judgments from such actions, claims, or proceedings. The purchase of such insurance and its policy limits shall be discretionary with the Board Members, and such insurance shall not be considered to be compensation to the insured individuals. The powers conferred by this subsection shall not be exclusive of any other powers conferred by law to purchase liability insurance; and (E) Sell assets for a consideration greater than their reasonable market value or acquisition costs, charge more for services than the expense of providing them, or otherwise secure an increment in a transaction, or carry out any other transaction or activity, as long as such gain is not the object or purpose of the Authority's transactions or activities and is applied to or expended upon services, projects, and activities as aforesaid. 5. The Authority shall not issue shares of stock, pay dividends, make private distribution of assets, make loans to its Board Members or employees or otherwise engage in business for private gain. ARTICLE VII ORGANIZATION OF AUTHORITY Section 1. Board of Directors and Tenure The management of all Authority affairs shall reside in a Board of Directors. The SCORE Administrative Board created pursuant to Section 4 of the Interlocal Agreement, including all amendments, shall act ex officio as the Board of the Authority. Board Members shall have terms coextensive with their terms as members of the SCORE Administrative Board. P:120358 DG120358 01Y 11/12/08 Section 2. Board Concurrence and Quorum Defined. "Board concurrence" may be obtained at any regular or special Board meeting by an affitivative vote of a majority of the Board Members voting on the issue, provided that such majority equals not less than four (4) votes. Four (4) voting Board Members must be present at any regular or special meeting of the Board to comprise a quorum, and for the Board to transact any business. Proxy voting shall not be allowed. The Bylaws of the Authority may prescribe Board quorum restrictions that equal or exceed the quorum restrictions imposed in this Section. Board Members present at a duly convened meeting may continue to transact business notwithstanding the departure of enough members to leave less than a quorum. To the extent permitted by law, the Authority may protect, defend, hold harmless and indemnify any person who becomes a director, officer, employee or agent of the Authority, and who is a party or threatened to be made a party to a proceeding by reason related to that person's conduct as a director, officer, employee or agent of the Authority, against judgments, fines, penalties, settlements and reasonable expenses (including attorneys' fees) incurred by him or her in connection with such proceeding, if such person acted in good faith and reasonably believed his or her conduct to be in the Authority's best interests and if, in the case of any criminal proceedings, he or she had no reasonable cause to believe his or her conduct was unlawful. The indemnification and protection provided herein shall not be deemed exclusive of any other rights to which a person may be entitled as a matter of law or by contract or by vote of the Board of Directors. The Authority may purchase and maintain appropriate insurance for any person to the extent provided by the applicable law. Charter 6 Section 3. Right to Indemnification. Section 4. Conflict of Interest and Code of Ethics. The Authority shall, in the Bylaws, adopt a code of ethics policy for Board Members. All Board Members will be required to disclose any information concerning actions or activities of the candidate or his/her immediate family that present a potential conflict of interest as a Board Member. ARTICLE VIII OFFICERS OF AUTHORITY Section 1. Officers and Division of Duties. The Authority shall have at least one officer, the President, selected as provided in the Bylaws. Subject to the control of the Board, the President shall have general supervision, direction and control of the business and affairs of the Authority. The President shall be the agent of the Authority for service of process. On matters decided by the Authority, unless otherwise required under the Ordinance or by this Charter, the signature of the President alone is sufficient to bind the corporation. P:\20358_DG\20358_01Y 11/12/08 The Bylaws may designate additional corporate officials as agents to receive or initiate process. The Board also may provide for additional officers, e.g., Vice President, Secretary, and/or Treasurer. The President and the Treasurer may not be the same person. The day to day affairs of the Authority, including debt administration, shall be managed by the Facilities Director of the SCORE Facility, in the manner provided in the Interlocal Agreement. Section 2. Committees. The Bylaws may provide for an Executive Committee, which shall be appointed and/or removed by the Board, and shall have and exercise such authority of the Board in the management between meetings of the Board, as may be specified in the Bylaws. The appointment of other committees shall be provided for in the Bylaws. ARTICLE IX COMMENCEMENT OF AUTHORITY The Authority shall commence its existence effective upon the issuance of its Charter as sealed and attested by the City Clerk of the City of Renton as provided in the Ordinance. ARTICLE X BYLAWS The initial Bylaws may be amended by the Board to provide additional or different rules governing the Authority and its activities as are not inconsistent with this Charter. The Board may provide in the Bylaws for all matters related to the governance of the Authority, including but not limited to matters referred to elsewhere in the Charter for inclusion therein. Regular meetings of the Board shall be held at least two times per year at a regular time and place to be determined by the Board by resolution. At the last regular meeting of the calendar year, the Board shall adopt a resolution specifying the date, time and place of regular meetings for the upcoming calendar year. A copy of the resolution shall be distributed in the same manner as notice of special meetings is provided pursuant to Section 3 below. Special meetings of the Board may be held at any place at any time whenever called by the President or a majority of the Board Members. Charter 7 ARTICLE XI MEETINGS OF THE AUTHORITY Section 1. Time and Place of Meetings. Section 2. Notice of Meetings. P: \20358_DG120358_OIY 11/12/08 No notice of regular meetings shall be required, except for the first regular meeting after any change in the time or place of such meeting adopted by resolution of the Board as provided above. Notice of such changed regular meeting shall be given by the President or by the person or persons calling the meeting by email or by personal communication over the telephone to each Board Member least 24 hours prior to the time of the meeting or by at least three (3) days' notice by mail, telegram, electronic or written communication. If mailed, notice shall be mailed by United States mail, postage prepaid, to the last known address of each Board Member. Section 3. Notice of Special Board Meetings. Notice of all special meetings of the Board of Directors shall be given by the President or by the person or persons calling the special meeting in accordance with RCW 42.30.080 by delivering personally, by electronic means or by mail written notice at least 24 hours prior to the time of the meeting to each Board Member, to each local newspaper of general circulation and to each radio or television station that has requested notice and to any other individual specifically requesting it in writing. The call and notice of all special meetings shall specify the time and place of all special meetings and the business to be transacted. Final disposition shall not be taken by the Board on any other matters at such special meetings. At any regular meeting of the Board, any business may be transacted and the Board may exercise all of its powers. Section 4. Waiver of Notice. Notice as provided in Sections 2 and 3 hereof may be dispensed with as to any member of the Board who at or prior to the time the meeting convenes files with the Board of the Authority a written waiver of notice or who is actually present at the meeting at the time it convenes. Such notice may also be dispensed with as to special meetings called to deal with an emergency involving injury or damage to persons or property or the likelihood of such injury or damage, where time requirements of such notice would make notice impractical and increase the likelihood of such injury or damage. Notice, as provided in Article XIII of this Charter concerning proposed amendments to this Charter or Bylaws and votes on such amendments, may not be waived. Notice of all meetings and minutes of all meetings of the Board shall be given to the City Council of the Member Cities by giving notice to the City Clerk of each of the foregoing Member Cities. All Board meetings, including executive, all other permanent and ad hoc committee meetings, shall be open to the public to the extent required by chapter 42.30 RCW. The Board and committees may hold executive sessions to consider matters enumerated in chapter 42.30 RCW or privileged matters recognized by law, and shall enter the cause therefor in its official journal. Notice of meetings shall be given in a manner consistent with the Ordinance and chapter 42.30 RCW. In addition, the Authority shall provide reasonable notice of meetings to Charter 8 Section 5. Notice to City Council. Section 6. Open Public Meetings. P:\ 20358_DG\20358_0IY 11/12/08 any individual specifically requesting it in writing. At such meetings, any person shall have a reasonable opportunity to address the Board either orally or by written petition. Charter 9 Section 7. Telephonic Participation Board Members may participate in a regular or special meeting through the use of any means of communication by which all Board Members and members of the public participating in such meeting can hear each other during the meeting. Any Board Member participating in a meeting by such means is deemed to be present in person at the meeting for all purposes including, but not limited to, establishing a quorum. Section 8. Parliamentary Authority. The rules in Robert's Rules of Order (newly revised) shall govern the Authority in all cases to which they are applicable, where they are not inconsistent with this Charter or with the special rules of order of the Authority set forth in the Bylaws. Section 9. Minutes. Copies of the minutes of all regular or special meetings of the Board shall be available to any person or organization that requests them. The minutes of all Board meetings shall include a record of individual votes on all matters requiring Board approval. ARTICLE XII CONSTITUENCY There shall be no constituency of the Authority. ARTICLE XIH AMENDMENTS TO CHARTER AND BYLAWS Section 1. Proposals to Amend Charter and Bylaws. Proposals to amend this Charter may be initiated by the Renton City Council or by the Board Members. Proposals to amend the Bylaws may be initiated by the Board Members. Proposals to amend the Charter initiated by the Renton City Council shall be presented to the Board in a format as provided in Section 2(1), in accordance with the terms of the Ordinance. Proposals to amend the Charter or the Bylaws may be initiated by the Board in the manner described in the following Sections 2 and 3. Section 2. Proposals Initiated by the Board. P:120358_0G120358_01Y 11/12/08 1. Proposals to amend the Charter or Bylaws shall be presented in a format which strikes over material to be deleted and underlines new material. 2. Any Board Member may introduce a proposed amendment to the Charter or to the Bylaws (which may consist of new Bylaws) at any regular meeting or at any special meeting of which 30 days advance written notice has been given to members of the Board. Any notice required by this Article may be given by telegram, electronic or written communication. If mailed, notice shall be mailed by United States mail, postage prepaid, to the last known address of each Board Member. Section 3. Board Consideration of Proposed Amendments. If written notice of a proposed amendment to the Charter or to the Bylaws, and information, including the text of the proposed amendment and a statement of its purpose and effect, is provided to Board Members at least 30 days prior to any regular Board meeting or any special meeting of which advance notice has been given, then the Board may vote on the proposed amendment at the same meeting as the one at which the amendment is introduced. Germane amendments to the proposed amendment within the scope of the original amendment will be permitted at the meeting at which the vote is taken. Section 4. Vote Required for Amendments to Charter or Bylaws. Resolutions of the Board approving proposed amendments to the Charter or Bylaws require an affirmative vote of a majority of the Board members voting on the issue, provided that such majority equals not less than four (4) votes. Amendments to this Charter shall be effective as provided in Section 5 of this Article. Amendments to the Bylaws shall be effective upon adoption by the Board. Proposed Charter amendments initiated and approved by the Board shall be submitted to the each of the Councils of the Member Cities; provided, however, that no amendment to the Charter shall be effective until approved by the Renton City Council and the Councils of four (4) of the other Member Cities. The Authority may conduct activities outside of the boundaries of the City of Renton, Washington, including but not limited to acquiring, equipping, constructing, improving and maintaining the SCORE Facility located in the City of Des Moines, Washington, upon Charter 10 Section 5. City Council Approval of Proposed Charter Amendments. ARTICLE XIV MISCELLANEOUS Section 1. Geographic Limitation. P:120358_DG120358_OIY 11/12/08 determination by the Renton City Council that each such activity will further the purposes of the Authority, subject, however, to the applicable limitations set forth in RCW 35.21.740. Authority funds shall be deposited in a qualified public depository as detelinined by the Washington Public Deposit Protection Commission. Charter 11 Section 2. Safeguarding of Funds. Section 3. Public Records. The Authority shall maintain all of its records in a manner consistent with the Preservation and Destruction of Public Records Act, chapter 40.14 RCW. The public shall have access to records and information of the Authority to the extent as may be required by applicable laws. Section 4. Reports and Information; Audits. Within three (3) months after the end of the Authority's fiscal year, the Authority shall file an annual report with the Finance Director and Council of each Member City containing an audited statement of assets and liabilities, income and expenditures and changes in the Authority's financial position during the previous year; a summary of significant accomplishments; a list of depositories used; a projected operating budget for the current fiscal year; a summary of projects and activities to be undertaken during the current year; a list of a list of officers of the Board; and a list of individuals, if any, that are bonded pursuant. The Authority shall, at any time during normal business hours and as often as each City Finance Director or the State Auditor deem necessary, make available to each City Finance Director and the State Auditor for examination all of the Authority's financial records, and shall permit the each City Finance Director and State Auditor to audit, examine and make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all the aforesaid matters. Section 5. Dissolution. Dissolution of the Authority shall be in the form and manner required by this Charter, Washington State law, the Ordinance, and the Bylaws. Dissolution proceedings may be initiated by the Council of any of the Member Cities or, if the Board makes an affirmative fmding that dissolution is necessary or appropriate, the Board may adopt a resolution requesting Councils of the Member Cities to adopt an ordinance dissolving the Authority. In either case, if five (5) of the Councils of the Member Cities, each by ordinance, make an affirmative finding that dissolution is warranted for any reason, then the existence of the Authority shall be terminated by ordinance of the Renton City Council. Upon dissolution of the Authority and the winding up of its affairs, the Board shall file a dissolution statement as provided in the Ordinance. Title to all remaining property or assets of P:120358_DG120358_0IY 11/12/08 the Authority shall vest in SCORE or if there is no SCORE in existence at the time, then all property and assets shall be distributed to the Member Cities in an allocable amount calculated as provided in the Interlocal Agreement. Notwithstanding the foregoing, the Authority shall not be dissolved until all Bonds issued by the Authority are no longer outstanding. [question for the working group would you like to add a provision that automatically dissolves the Authority once the debt is paid off?] Membership to the Board shall not be directly or indirectly based upon or limited by age, race, color, religion, sex, national origin, or the presence of any physical handicap. Furtheimore, the Authority shall not discriminate in any matter related to employment because of age, race, color, sex, national original, or the presence of any physical handicap. The Authority shall, in all solicitation or advertisements for employees placed by or on behalf of the Authority, if any, state that all qualified applicants will receive consideration for employment without regard to age, race, color, religion, sex, national origin, or the presence of any physical handicap. This Charter is nonexclusive and does not preclude the granting by Member Cities of other charters to establish additional public corporations pursuant to City ordinance. ORIGINAL CHARTER APPROVED by Ordinance adopted by the City Council of the City of Renton, Washington on 2008; Ordinance adopted by the City Council of the City of Federal Way, Washington on 2008; Ordinance adopted by the City Council of the City of Auburn, Washington on 2008; Ordinance adopted by the City Council of the City of Des Moines, Washington on 2008; Ordinance adopted by the City Council of the City of Tukwila, Washington on 2008; Ordinance adopted by the City Council of the City of Burien, Washington on 2008; and Ordinance adopted by the City Council of the City of SeaTac, Washington on 2008. [SEAL] Charter 12 Section 6. Nondiscrimination. Section 7. Nonexclusive Charter. ARTICLE XV APPROVAL OF CHARTER This Charter is APPROVED this day of 2008. Mayor, City of Renton P: \20358_DM20358_OIY 11/12/08 ATTEST: City Clerk Charter 13 P: \20358_DG\20358_01Y 11/12/08 EXHIBIT D BYLAWS OF SOUTH CORRECTIONAL ENTITY FACILITY PUBLIC DEVELOPMENT AUTHORITY ARTICLE I MEMBERSHIP Section 1.1 Board Tenure. For the purpose of determining members of the South Correctional Entity Facility Public Development Authority (the "Authority Board of Directors (the "Board the procedures set forth in the Authority Charter (the "Charter and the SCORE Interlocal Agreement (the "Interlocal Agreement by and among the Cities of Renton, Auburn, Federal Way, Des Moines, Tukwila, Burien, and SeaTac, Washington (the "Member Cities shall govern. ARTICLE H OFFICERS AND COMMITTEES Section 2.1 Officers Designated. The Presiding Officer of the Administrative Board selected in the manner provided in Section 4(e) of the Interlocal Agreement shall be the President of the Board. Such other officers and assistant officers as may be deemed necessary may be elected or appointed by the Board. No person may simultaneously hold more than one office. In addition to the powers and duties specified below, the officers shall have such powers and perfonn such duties as the Board may prescribe. Section 2.2 Oualification and Tenn of Office. The additional officers shall be members of the Board or any other person designated by the Board who is at the time an official or employee of at least one of the Member Cities or the SCORE Facility. The additional officers shall be elected or appointed by the Board and shall hold office for terms established as a part of the original appointment or for terms established in accordance with the Interlocal Agreement. Section 2.3 Removal From Office. Upon reasonable prior notice to all Board Members of the alleged reasons for dismissal, the Board by an affirmative vote of the majority of the Board Members may remove any officer of the Board from his or her office whenever in its judgment the best interests of the Authority will be served thereby. Section 2.4 Vacancies. The Board shall fill any office which becomes vacant with a successor who shall hold office for the unexpired term and until his or her successor shall have been duly appointed and qualified. Section 2.5 Reimbursement. The Board may reimburse Board Members, employees and others perfoiiiiing services for the Authority reasonable expenses actually incurred in performing their duties. Section 2.6 Establishment of Committees. The Board may, by resolution, designate one or more other committees, including an Executive Committee, each consisting of one or more members, to advise the Board or, on matters other than those described in the Charter to act for and on behalf of the Board. The designation of any such committee and the delegation thereto of authority shall not operate to relieve any Board Member of any responsibility imposed by law. The Executive Committee, if any, shall have and exercise such powers of the Board as the Board shall from time to time provide by resolution. Section 2.7 Code of Ethics. (a) Except as otherwise provided in this section, no Board Member or employee of the Authority may: (1) Participate in a decision of the Authority in which that person or a member of that person's immediate family has a financial interest, unless the financial interest is a remote financial interest and participation is approved under subsection (b) of this section; (2) Use his or her position to secure special privileges or exemptions for himself, herself, immediate family members, or others; (3) Directly or indirectly, give or receive or agree to receive any compensation, gift, reward, or gratuity from a source except the Authority for a matter connected with or related to such individual's services in his or her position unless otherwise provided for by law; (4) Accept employment or engage in business or professional activity that such individual might reasonably expect would require or induce him or her by reason of his or her position with the Authority to disclose confidential information acquired by reason of his or her position; or (5) Disclose confidential infoimation gained by reason of such individual's position with the Authority, or otherwise use such information for his or her personal gain or benefit. (b) A Board Member or employee of the Authority may participate in a decision described in (a)(1) above if that person or a member of that person's immediate family has only a remote financial interest, the fact and extent of such financial interest is disclosed to the Board in a public meeting, and is noted in the minutes of the Board before any participation by the Board Member in the decision, and thereafter in a public meeting the Board by vote authorizes or approves the participation. If the person whose participation is under consideration is a Board -2- P:120358 DG120358 OIZ 11/12/08 Member, that person must recuse him or herself and may not participate in a decision under this subsection. Any Board Member with an ownership interest in property located within the Authority area shall recuse him or herself from participating in a decision if such property is directly benefiting from such action. For purposes of this subsection, "remote financial interest" means: (1) That of a nonsalaried officer of a nonprofit corporation; (2) That of an employee or agent of a contracting party where the compensation of the employee or agent consists entirely of fixed wages or salary and the contract is awarded by bid or by other competitive process; (3) That of a landlord or tenant of a contracting party, except in cases where the property subject to the lease or sublease is owned or managed by the public corporation; (4) That of a holder of less than one percent of the shares of the corporation or cooperative that is the contracting party; or (5) That of an owner of a savings and loan or bank savings or share account or credit union deposit account if the interest represented by the account is less than two percent of the total deposits held by the institution. (c) A Board Member or employee of the Authority is not considered to be financially interested in a decision when the decision could not affect that person in a manner different from its effect on the public at large. (d) All Board Members shall disclose any information concerning actions or activities of the candidate or his/her immediate family that present a potential conflict of interest as a Board Member. (e) For purposes of this section, "participate in a decision" includes all discussions, deliberations, preliminary negotiations, and votes. (f) For purposes of this section, "immediate family" means: (1) A spouse or domestic partner; (2) Any dependent parent, parent -in -law, child, son -in -law, or daughter -in- law; and (3) Any parent, parent -in -law, child, son -in -law, daughter -in -law, sibling, uncle, aunt, cousin, niece or nephew residing in the household of the Board Member or employee. -3- P:120358 DG120358 OIZ 11/12/08 (g) The Board may adopt additional conflict of interest and ethical rules it considers appropriate. Washington on Federal Way on of Auburn on Des Moines on Tukwila on Burien on City of SeaTac on ARTICLE III ADMINISTRATIVE PROVISIONS Section 3.1 Books and Records. SCORE, on behalf of the Authority, shall keep current and complete books and records of account and shall keep minutes of the proceedings of its Board and its committees having any of the authority of the Board. The proceeds of any borrowing by the Authority shall be held, invested and disbursed by SCORE, subject to the terms and limitations established pursuant to the Interlocal Agreement. SCORE shall provide a regular accounting of the financial affairs of the Authority to the Board at each regular Board meeting. The obligations of the Authority shall be administered by SCORE, and SCORE is hereby designated and delegated with full authority to administer such obligations, all in a manner consistent with the Interlocal Agreement. Section 3.2 Indemnification. The Authority elects to defend and indemnify its present and former Board Members and employees and their successors, spouses, and marital communities to the full extent authorized by law and the Charter. This right of indemnification shall inure in perpetuity to each Board Member and employee, and his or her spouse and marital community, commencing as soon as he or she has the full powers and responsibilities of his or her position, and in the event of his or her death shall extend to his or her heirs, legal representatives, and estate. Each person who shall act as a Board Member or employee of the Authority shall be deemed to do so in reliance upon such indemnification, and such rights shall not be exclusive of any other right which he or she may have. Section 3.3 Principal Office. The principal office of the Authority shall be [1055 South Grady Way], Renton, Washington 98055. Section 3.4 Fiscal Year. The Fiscal Year of the Authority shall begin January 1 and end December 31 of each year, except the first fiscal year which shall run from the date the Charter was issued to December 31, 2008. ARTICLE IV APPROVAL OF BYLAWS APPROVED by Ordinance 2008; Ordinance 2008; Ordinance 2008; Ordinance 2008; Ordinance 2008; Ordinance 2008; and Ordinance 2008. adopted by the City Council of the City of Renton, adopted by the City Council of the City of adopted by the City Council of the City adopted by the City Council of the City of adopted by the City Council of the City of adopted by the City Council of the City of adopted by the City Council of the -4- P:\20358_DG\20358_01Z 11/12/08 To: Finance and Safety Committee (action) Community Affairs and Parks (information) CC: Mayor Haggerton Rhonda Berry FROM: Lisa Verner, Mayor's Office Nick Olivas, Fire Chief Rick Still, Deputy Parks Director DATE: December 2, 2008 (REVISED) INFORMATION MEMORANDUM RE: Proposed Fire and Parks Impact Fees This informational memorandum has been revised to address new information and questions that have arisen during Council discussions. The first section is new; the original document begins on page 3. REVISION NEW INFORMATION AND COUNCIL QUESTIONS 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. F &S, CAP Info Memo dtd 12 -2 -08 Page 2 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 and $11,250,000 for Parks with a 90 -10% split between fees and city contributions. FIRE Project Land Use Category Wig development/ Retail Southcenter Square Parkway Place Office 16400 Southcenter Pkwy New Bank of America Office building (at mall) Tukwila Village Multi- family Retail 1 Office PARKS Project Wig development/ Southcenter Square Parkway Place 16400 Southcenter Pkwy New Bank of America building (at mall) Tukwila Village Land Use Category Retail Office Office Multi- family Retail Office Square Footage/Dwelling Units 230,444 66,000 7,451 144 I 42,000 1 12,000 Impact Fee per 1,000 gsf or per Dwelling Unit $580 $1,624 $1,624 $1,200 I $580 I $1,624 Square Impact Fee per Footage/Dwelling 1,000 gsf or per Units Dwelling Unit 230,444 66,000 7,451 144 I 42,000 1 12,000 $1,325 $662 $662 $2,211 1 $1,325 I $662 Impact Fee Assessment $133,658 $107,184 $12,100 $172,800 I $24,360 I $19,488 Impact Fee Assessment $305,338 $43,692 $4,932 $318,384 $55,650 $7,944 F &S, CAP Info Memo dtd 12 -2 -08 Page 3 4. Parks Capital Facilities List (Southgate Park) As a result of Council discussion at the COW on November 24, staff has taken Southgate Park of 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. These splits, and the resulting impact fees for the five land use categories are shown on Attachment t 5. Parks Use Ratios The Use Ratio used in the Impact Fees fonnula 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 infoimation. 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 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 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. F &S, CAP Info Memo dtd 12 -2 -08 Page 4 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 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 F &S, CAP Info Memo dtd 12 -2 -08 Page 5 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 residents and employees 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 impact 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 impact 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 F &S, CAP Info Memo dtd 12 -2 -08 Page 6 NOTE: ATTACHMENTS HAVE BEEN REVISED BASED ON THE NEW INFORMATION; FOR OLD ATTACHMENTS, PLEASE REFER TO 11/24/08 PACKET Attachment A: Fire Impact Fee infoiivation Attachment B: Parks Impact Fee infamiation Fire Department Capital Facilities List 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 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 TOTAL 6,479,500 GFR lCAITB FIRE Impact Fee OPTIONS (revised 11- 24 -08) Total Project Amount over 12 years (through 2020) Key: SF MF Office Retail Industrial FIRE Single Family Multi Family All Commercial Office Retail Industrial Hotel /Motel /Resort Hospital /Nursing Home Medical /Dental Leisure Facilities Restaurant/Lounge Church /Non profit Education Special Public Facil AWC Averages (2008) Single Family Multi Family $6,479,500 Fees City 90% 10% $5,831,550 $647,950 $922 SF $1,200 MF $1,624 Office $580 Retail $127 Industrial Per Single Family Dwelling Per Multi Family Dwelling Per 1,000 gsf Office Uses Per 1,000 gsf Retail Uses Per 1,000 gsf Industrial Uses Issaquah (2006) Renton $622.25 $488.00 $853.42 $388.00 $200.00 $640.00 $200.00 $280.00 $9,610.00 $6,680.00 $2,090.00 $6,090.00 $390.00 $810.00 $3,120.00 Per Dwelling High $622.00 $853.00 $520.00 Low $104.00 $104.00 Kent* Fees 80% $5,183,600 $1,295,900 $819 SF $1,067 MF $1,443 Office $516 Retail $113 Industrial Bellevue* City 20% Fees 70% $4,535,650 $1,943,850 $717 SF $934 MF $1,263 Office $451 Retail $98 Industrial Redmond (1999) Auburn*** $94.48 $362.66 $132.73 $383.09 $110.80 $126.76 $13.07 City 30% does not have Fire impact fees $0.52 per gsf no com'I assm't since 1/1/08; Fire Authority Aaopted Level-of-Service Duwamish Riverbend Hill Trail Connections Tukwila Pond City of Tukwila Pool Leisure Pool Addition Boat Launches TOD Pedestrian Bridge Develop Phase II Green river Trail to Renton Black/Cedar River Development Phase IV Expand Features and Services Christianson Road, Codiga Park, Fort Dent Park, Log House Park Sounder Connection to Trail TUC CFP PROJECT TOTAL 3,000,000 1,000,000 3,000,000 1,500,000 750,000 2,000,000 11,250,000 TABLE 1: 2008 Park Impact Fee Calculations Land Use G'eotnot Per Single Family Dwelling Per Multi- Family Dwelling Per 1,000 of Retail Uses Per 1,000 of Office Uses Per 1,000 got Industrial Uses TOTALS 2007 I 2020 2007 'lousing 2007 2007 Building 2020 Housing 2020 Units Employment Area Units Employment 3.822 4.107 7,929 2 I 3 I 1 4.338 I I 6.491 6.245 I 1.561,250 20,384 I 10.192.000 20,343 I 16.274,400 46,972 1 28,027,650 I 10,829 Footnotes Correspond to chart above. I. Office of Financial Management 2. PSRC 2007 Covered Employment Estimates 3. Retail: 500asf ner ems: Office: 250asf ner ems: Industrial: 800gsf see ems: X ems growth. 4. 43 SF dwelling units ner year; rest is Multi Family: from 2007 Buildable Lands Resort 5. 90% of Buildable Lands Report estimates, at same as 2007 minim /mcnt 6, Tukwila Resident /Non Tukwila resident breakdown based on 2000 census data 7. History of the Tukwila Community Center users indicates that a resident uses their facility puss 2.44 times more stints that of a business nnss holder. Note: In 2000, the number of residents who live and work in Tukwila is 1,502, out of a population of 17,181, or approximately 9 PARKS IMPACT FEE FORMULA and CALCULATION 12 -2 -08 7.727 25,220 25.169 58,116 A -1 11 Net Growth, 2008 2020 2020 Building Housl Employ Building Arcs Employ Arcs ng me meant: Units Tukwila 1 931.750 12.610.000 20.135.200 34,676,950 II 4 1 5 1111 I 2,384 516 I I I 1. I 4,83 6 I 4,826 2,900 I 11,144 3 I 1, 370.500 2.418,000 3.860,800 6,649,300 133 435 434 1,003 Using the FORMULA above, and the 90% Park Impact Fee and 10% City Contribution breakdown of the Total Project Amount from Attachment A, the Impact Fees can be calculated as follows: Park Impact Fees for Established Level -of- Service m,,o Emma 1Hpn,•;t Total Park Project Conti ��,,,!,I l ug without Southgate Park City ContributionI 10% L@.04 Per Single Family Dwelling Per Multi- Family Dwelling Per 1,000 gsf Retail Uses Per 1,000 of Office Uses Per 1,000 gsf Industrial Uses 1 A x B x C Total Hours Housing Units A -2 x B x C= Total Hours 'Commercial' Units A -2 B I Employ Persons rnee l: per Non Housing 6 1 I 2.54 I 2.49 L349 I 4,401 I 4,392 I 10,141 I Impact Fees C n of Use Ratio Calculations Flours per Week Use Ratio From ah. I above Use Ratio 7 I!,tl'.ii'i4 rl,'6ili1!ltIiiii31•.t9SittaI I iiiilt 2114tliirkl1!I'tiiiIlU0 :484iiii!41 I+o!llhW. Walii001va1u14 ';:4i ;iti3IlI 1349;4061 Lcc 1,K'J.-40 Ctl'? 008. ..615tg39i.6'ihi;4:40'1'tc4rl11 I' ,rffdleiiF 4I10a7 9:D. I4.392 I 27,823 1 Per Unit Impact Fees 11.49 %i 91,163.753 I $2,255 fJ; •`T ��y ,i 52.06 %I $5,270,877 I $2.211 "1 4 9• f01 4.05%) $490,769 I $1,325 1y101 Nii��}B4 n J0971 I0>It 15.82 %1 51.601.456 I 5662 1V.15Y03 4551 15.78 %I $1,598,145 I 5414 ItI 'IN$1a3kir19i Sub Total Potential per Yearpg8i4'3 BOiiI Per liousins Cost Allocation Unit or I,00C SQ Ft of Use Rattai 11.49% 52.06% 4.85% 15.82% 15.78% 100% Petentiisi City Contribution per Year 7 10,775 48,804 4.544 14,028 14,798 $93,750 a b Potential per Year �,�Ytl!hl 1 Park Impact Fees for the Adopted Level -of- Service without Southgate Park. I Total Park Project Cos City Contribution Impact Fees Lan d USe o y },163,753 I Per Single Family Dwelling 11.49 /oq $5 270 877 4 Per Multi Family Dwelling 52.060 o $490,769 7 Per 1,000 g 4.85/0 gsf Retail Uses 15 82 $1,601,456 I Per 1,000 gsf Office Uses $1, 5 6 Per 1,000 gsf Industrial Uses 15.78% Sub Total Potential per Year ',504`. Potential per Year Total Park Project Cost City Contribution Impact Fees. $1,125,00 10% Per Unit Impact Fees Per Housing From Chen Cost Allocation Unit S orr 1 ,000'. above Hours Y1 20 1 I hi ti Il $2,250,0 $2,255 $2,211 $1,325 $662 $414 Per Unit Impact RCS $1;123 517 I $2,005 t Per Housing 'q a �;h' ib p I� F.., cben Cost Allocation vu,. or -'n� tli g .'I Q Ft 991�'J 1, ''FF 66 4 ebova /o 'Inalh t �IV Y �1'I �'q�'� Hours 21 551 Land Use. $1 034 14'7 ��I�S,�^mI�'g 1, 11 551 Per Single Family Dwelling tr 52.06 $`4,685224 $1,965 ��„4l�'; "da' 9,088 Per Multi-Family 000 gsf Dwelling 97 4 85 %M $436,239 $1,177 1 0 61 29,657 Per' 1,000 gsf Office Uses MATS Per 1,000 gsf Office Uses 15.82 %y $589 jl 29,595 r Per 1,000 gsf Industrial Uses 15.7 $1,420,57 I $368 Wing, tr I $187,500 Sub Total Potential per YePot a l p Y $937,500 Potential City Contribution per Year 10,775 48,804 4,544 14,828, 14,798 $93,750 r t ��o,in�+l h,vur' Potential City Contribution per Year AN ORDINANCE OF THE Cl'l'Y 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 ESTABLISHING AN EFFECTIVE 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 Fees.doc LV:ksn 11/25/2008 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 \MSDATA Ordinances \Parks Impact Fees.doc LV:ksn 11/25/2008 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. Land Use Single Family Multi- Family Office Retail Industrial PARKS IMPACT FEE CALCULATIONS Impact Fee I Per Residential Unit Per 1,000 Sq. Ft. GFA 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 Settings \All Users Desktop Kelly MSDATA Ordinances Parks Impact Fees.doc LV:ksn 11/25/2008 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 rees.doc LV:ksn 11/25/2008 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. 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: 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 Fees.doc LV:ksn 11/25/2008 Page 5 of 5 TABLE 1: 2008 Park Impact Fee Calculations Land Use 51.6 I I I 2,384 I I 1,482 370,500 I 133 I 4,836 2,418,000 435 I 4,826 1 3,860,800 434 2,900 I 11,144 1 6,649,300 I 1,003 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: $11,025,000 is 90% of $12,250,000 EXHIBIT A 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 I Single- family 3,822 I 4,338 Multi- family 4,107 I 6,491 Office 6,245 1,561,250 I 7,727 Retail 20,384 10,192,000 25,220 Industrial 20,343 16,274,400 25,169 'TOTALS 7,929 46,972 28,027,650 I 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 Net Growth, 2008 2020 Housing Units Employment Building Employment: Employment: 4 -5 Area 3 Tukwila Non Tukwila Residents Residents 9 -6 91 -6 11.49% 52.06% 4.85% 15.82% 15.78% 100.00% 1,349 4,401 4,392 I 10,141 1,931,750 12,610,000 20,135,200 34,676,950 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 $0 I $0.00 SO $0 I $0.00 SO $0 $0.00 SO $0 $0.00 SO SO $0.00 SO SO I 9% Tukwila Parks Capital Facilities List Project List Impact Fees 2009 to 2015 Duwamish Riverbend Hill Trail Connections Tukwila Pond City of Tukwila Pool Boat Launch TOD Pedestrian Bridge EXHIBIT B Develop Phase II Green River Trail to Renton Black/Cedar River Development Phase II [Extend land lease]; expand features and services Christianson, Codiga, Fort Dent, Log Cabin Sounder Connection Project Cost 3,000,000 1,000,000 3,000,000 1,500,000 750,000 2,000,000 Total 11,250,000 DRAFT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF T UKWILA, WASHINGTON, ESTABLISHING THE ASSESSMENT OF FIRE IMPACT FEES ON NEW RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL DEVELOPMENT MI THE CITY; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTWE DATE. WHEREAS, pursuant to the Growth Management Act of the State of Washington and RCW 36.70A, the City of Tukwila has art 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 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 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: \Documents and Settings \All Users Desktop Kelly MSDATA Ordinances Fire Impact Feesdoc LV:ksn 11/25/2008 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 11/25/2008 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 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 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 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. 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. Land Use Single family Multi- family Office Retail Industrial FIRE IMPACT FEE CALCULATIONS Impact Fee Per Residential Unit I Per 1,000 Sq. Ft. GFA 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 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 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 11/25/2008 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 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 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 Setting \All Users Desktop Kelly MSDATA Ordinances Fire Impact Fees.doc LV:ksn 11/25/2008 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 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. 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 Co uncil: Published: Effective Date: Ordinance Number: Attachments: Exhibit A Tukwila Fire Impact Fees, 2008 Exhibit B Fire Department Capital Facilities List C: \Documents and Setting \All Users Desktop Kelly \MSDATA \Ordinances \Fire Impact Fees.doc LV:ksn 11/25/2008 Page 5 of 5 EXHIBIT A Tukwila Fire Impact Fees, 2008 TABLE 1. Tukwila Fire Impact Fee Calculation, 2008 Net Growth, 2008 -2020 2007 2007 Per Housing Building Employme Land Use Housing Employme Residential Units -I nt Z Units 3 Area 4 nt 5 Unit Single family 3,822 516 I $0 Multi- family 4,107 2,384 I $0 Office 6,245 370,500 I 1,482 Retail 20,384 2,418,000 I 4,836 Industrial 20,343 3,860,800 I 4,826 TOTALS 46,972 6,649,300 11,144 I OFM numbers 2. PSRC 2007 Covered Employment Estimates 3. 43 SF du/yr, rest is MF from 2007 Buildable Lands Report 4. Retail: 500gsf per emp; Office: 250gsf per emp; Industrial: 800gsf per emp; X emp growth 5. 90% of Buildable Lands Report estimates, at same as 2007 employment TABLE 2. Tukwila Fire Service Demand Calculation, 2008 Land Use Single family Multi family Office Retail Industrial NET TOTAL Fire Dept. Land Use Categories Public Assembly Educational Health Care* Single family Apartments Boarding House Hotels Business** Industrial Manufacturing Storage SUBTOTAL PERCENT OF SUBTOTAL 2007 Responses Proportion Based al Incident on Net RealIocatio Incident Responses Total n of Responses "Other" 619 13% 19% 249 868 866 19% 26% 349 I 1,215 445 10% 13% 179 625 1,039 22% 31% 418 1,458 362 8% 11% 146 I 508 3,332 71% 100% 1,341 4,673 Other 1,341 29% I TOTAL 4,673 100% 100% 1,341 I 4,673 100% Note: The $13,031,550 capital cost is 90% of $14,479,500 (the growth related fire capital cost), TABLE 3. 2007 Incident Responses by Property Type Allocation to Impact Fee Categories Fire Aid Total I2 42 54 18 30 48 27 90 117 159 460 619 224 570 794 0 2 2 102 203 305 441 590 1,031 12 2 14 57 47 104 81 163 244 1,133 2,199 3,332 Single- Multi- family family 619 619 '794 2 866 19% 26% Revised 2007 Responses 48 70 47 351 445 Impact Fee Incident 0�o Responses per 1,000 Units 19% 227 26% 296 13% 31% 11% 100% IMPACT FEE CATEGORIES Per GFA Per 1,000 Sq. Ft. GFA $0.00 $0 $0.00 I $0 $0.00 $0 Office Retail Industrial TOTAL 54 305 680 14 104 244 1,039 362 3,332 13% 31% 11% 100% Special Property I 275 I 855 I 1,130 Unclassified I I48 63 211 SUBTOTAL I 423 I 918 I 1,341 I I I I Reallocation of Special Property 249 349 179 418 146 1,341 Unclassified TOTAL INCIDENT RESPONSES BY 868 1,215 625 1,458 508 4,673 IMPACT FEE CATEGORY split 60% Multi- family, 40% Office (Redmond) 0 split 34% Office, 66% Retail (2007 Tukwila) Increase in Annual Incident Responses due to Growth Incident Capital Costs Responses Incident Allocated by per 1,000 Responses Incident Employees Responses due to Growth 117 8% $0 705 49% $0 100.0 148 10% $0 71.5 346 24% $0 25.0 120 8% $0 1,437 100% $0 100% EXHIBIT B Fire Department Capital Facilities List Capital Facility Cost 1. Constructibuild relocated Station 51 5,000 gsf S 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 S 750,000 ladder truck 4. Purchase land for relocated Station 52, if Station 51 S 544,500 is relocated 5. Construct/build relocated Station 52, if Station 51 is S 3,000,000 relocated TOTAL S 6,479,500 5,000 gsf building addition x $400 /psf building construction cost %z acre site (21,780 sf) x 525 /psf land cost 7,500 gsf building x 5400 /psf building construction cost