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HomeMy WebLinkAbout12-05-2005 ITEM VI-A�c CITY OF. '° WASHINGTON AGENDA BILL APPROVAL FORM Agenda Subject: Ordinance No. 5950 Date: November 29, 2005 Department: Attachments: Ordinance No. 5950 (with Exhibit "A"); Budget Impact: Planning Correspondence from School Districts (Kent, Auburn, and Dieringer); Additional School Impact Fee information Administrative Recommendation: City Council adopt Ordinance No. 5950. Background Summary: On November 7, 2005 and on November 21, 2005 the Auburn City Council tabled Ordinance No. 5950 relating to the process for school districts to request adjustments to school impact fees. In tabling proposed Ordinance No. 5950, it was also referred back to the Planning and Community Development (PCD) Committee for additional discussion and eventual recommendation back to the City Council. On November 14, 2005 the PCD Committee discussed proposed Ordinance No. 5950 as well as specific school impact fee requests recently made by various school districts. The Finance Committee reviewed Ordinance No. 5950 at its November 21, 2005 meeting. On November 28, 2005 the PCD Committee again reviewed Ordinance No. 5950 and made a recommendation to City Council. Impact Fee Requests In October 2005 the PCD Committee requested that staff send letters to the various school districts asking for a written request if the school district wishes for a school impact fee adjustment to be considered this year as part of the City of Auburn's review of school district capital facilities plans during the 2005 comprehensive plan amendment process. Letters were sent to the Auburn, Kent, and Dieringer school districts. The City has received letters of response (attached) from all three school districts. L1205-1 F4.3 Reviewed y Council & Committees: Reviewed by Departments & Divisions: Arts Commission COUNCIL COMMITTEES: Building M&O Airport Finance Cemetery Mayor Hearing Examiner Municipal Serv. Finance Parks Human Services Z Planning & CD Fire Planning Park Board Public Works Legal Police Planning Comm. nOther Public Works Human Resources Action: Committee Approval: YesNo BYesBNo Council Approval: Call for Public Hearing Referred to Until Tabled Until— T- T— Councilmember: Norman Staff: Krauss Meeting Date: December 5, 2005 Item Number: VI.A AUBURN *MORE THAN YOU IMAGINED Agenda Subject: Ordinance No. 5950 Date: November 29, 2005 In summary: Dieringer School District Requests that fees be set at a level similar to that of the Auburn School District. In a conversation with the Dieringer School District, this is intended to promote consistency of impact fee amounts across various school districts and is similar to the approach taken by Pierce County which applies one countywide impact fee across all school districts in unincorporated Pierce County. (STAFF NOTE: The Dieringer School District Capital Facilities Plan currently under review by the City only supports a multi -family impact fee of $739.) Auburn School District Requests that the City of Auburn adjust the school impact fee to the amount reflected in the 2005- 2011 Auburn School District Capital Facilities Plan (year 2005 Comprehensive Plan Policy Text (P/T) amendment #1). The fee amounts would be $5,681.36 for single family units and $1,536.30 for multi -family units. The City presently collects $4,500 for single family dwellings and $1,200 for multi -family dwellings. (NOTE: The Auburn School District CFP (years 2004-2010) adopted by the City Council in December 2004 identifies a maximum net fee obligation of $5,296 for single family units and $1,831 for multi -family units). Kent School District Requests that the City of Auburn adjust the school impact fee to the maximum net fee obligation amounts reflected in the 2005-2006 to 2010-2011 Kent School District Capital Facilities Plan (year 2005 Comprehensive Plan Policy/Text (P/T) amendment #2). The fee amounts requested would therefore be $4,775 for single family dwellings and $2,940 per multi -family residence. (NOTE: The Kent School District CFP (year 2004-2005 to 2009-2010) adopted by the Auburn City Council in December 2004 identifies a maximum net fee obligation for single-family dwellings of $4,056.00 and $1,762.00 for multi -family dwelling units.) Revised Ordinance No. 5950 In summary, revised Ordinance No. 5950 (attached) as recommended by the Planning and Community Development (PCD) Committee does the following: • Auburn City Code (ACC) section 19.02.060 "Annual council review". Includes a proposed amendment that requires a written letter from a school district if an impact fee increase is being requested. Submittal of the written letter is to occur concurrently with annual submittal of the capital facilities plan. • ACC 19.02.060 "Annual council review" (same section as above). Adds a provision stating that the City Council will consider the completeness and quality of the information presented in the CFP and may adopt a fee less that the amount supported by the capital facilities plan. (Suggestion from Councilmember Wagner). • ACC 19.02.020 "Definitions". Incorporates a definition of "net fee obligation". This term is referenced in Chapter 19.02 but is not explicitly defined. (Suggestion from Councilmember Wagner). • Separates out the Dieringer School District impact fee amounts (creating a new ACC section 19.02.115) from the formula used to calculate impact fees (ACC section 19.02.110). When the City first adopted school impact fees, it did so for the Dieringer School District. In doing so the City combined the general impact fee formula with the impact fee amounts for the Dieringer School District. With the subsequent addition of code amendments addressing impact fees for the Auburn and Kent school districts, this proposed amendment organizes the City's impact fee ordinance consistent with that of other jurisdictions (i.e. fee formula identified in one section; fee amounts for school districts separately in other sections.) • Establishes the following impact fee rates for the Auburn, Kent and Dieringer School Districts effective January 1, 2006. Page 2 of 3 Agenda Subject: Ordinance No. 5950 Date: November 29, 2005 School t?istrict : Single Famil Units Multi -Tamil Units Auburn School Dist. SD $5,681.36 $1,536.30 Kent SD $4,775 $2,940 Dieringer SD $3,500 $739 The above amounts for the Kent School District and Auburn School District are the net fee obligations identified in their respective capital facilities plans being considered as part of the 2005 Comprehensive Plan amendment process. The proposed Dieringer School District multi -family impact fee amount ($739) is the net fee obligation supported by its (Dieringer School District) updated CFP being considered this year as part of the 2005 Comprehensive Plan amendment process. The proposed single family rate ($3,500) is less than the $10,456 fee obligation supported by the Dieringer School District's CFP. Additional Information Also attached for reference to this agenda bill is certain background information previously provided to council committees. That information, among other items, shows the current school impact fee levels adopted in City Code (ACC Chapter 19.02) and provides information about school impact fee amounts for other nearby jurisdictions. Page 3 of 3 ORDINANCE NO. 5 9 5 0 AN ORDINANCE OF THE CITY OF AUBURN, WASHINGTON, AMENDING SECTIONS 19.02.020, 19.02.060, 19.02.110, 19.02.120, 19.02.130 AND CREATING A NEW SECTION 19.02.115 OF THE AUBURN CITY CODE REGARDING SCHOOL IMPACT FEES WHEREAS, the City of Auburn has adopted school impact fee ordinance and collects school impact fees on behalf of certain school districts; and WHEREAS, a need has been identified to bring greater clarity to the City's process for considering requests for adjustments to school impact fee amounts from school districts; and WHEREAS, various school districts have provided the City of Auburn with updated capital facilities plans to be considered during the City's annual comprehensive plan amendment process and have submitted written requests for adjustments to school impact fees; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Amendment to City Code. Sections 19.02.020, 19.02.0601 19.02.110, 19.02.120 and 19.02.130 of the Auburn City Code entitled are hereby amended as shown in Exhibit "A". Section 2. Amendment to City Code. A new section 19.02.115 of the Auburn City Code is hereby created as shown in Exhibit "A" Section 3. Constitutionality or Invalidity. If any section, subsection, sentence, clause, phrase or portion of this Ordinance, is for any reason held invalid or Ordinance No. 5950 November 29, 2005 Page 1 unconstitutional by any Court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions thereof. Section 4. Implementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. Section 5. Effective Date. This Ordinance shall take effect and be in force five days from and after its passage, approval, and publication as provided by law. INTRODUCED: PASSED: APPROVED: ATTEST: Danielle E. Daskam, City Clerk Daniel B.\Heid City Attorney Ordinance No. 5950 November 29, 2005 Page 2 PETER B. LEWIS MAYOR "EXHIBIT A" Chapter 19.02 SCHOOL IMPACT FEES Sections: 19.02.010 Purpose. 19.02.020 Definitions. 19.02.030 Determination of the amount of the impact fees. 19.02.040 Interlocal agreement between the city and district. 19.02.050 Submission of district capital facilities plan and data. 19.02.060 Annual council review. 19.02.070 Fee collection. 19.02.080 Exemptions. 19.02.090 Adjustments, exceptions and appeals. 19.02.100 Impact fee accounts and refunds. 19.02.110 Impact fee formula 19.02.115 Impact fee calculation and schedule for the Dieringer School District 19.02.120 Impact fee calculation and schedule for the Auburn School District. 19.02.130 Impact fee calculation and schedule for the Kent School District. 19.02.010 Purpose. The city council hereby finds and determines that continuing growth and development in the city of Auburn will create additional need and demand for school facilities, and that new growth and development should pay a proportionate share of the cost of developing new facilities needed as a result. Therefore, pursuant to Chapter 82.02 RCW, the council adopts this chapter to address identified impacts of new residential development on schools and to ensure that new development bears a proportionate share of the cost of capital expenditures necessary to meet demands for schools in order to protect the public health, safety and welfare. (Ord. 5078 § 1, 1998.) 19.02.020 Definitions. For purposes of this chapter, the following terms shall have the indicated meanings: A. "Capacity" means the number of students the district's facilities can accommodate district -wide, based on the district's standard of service, as determined by the district. B. "Capital facilities plan" means the district's facilities plan adopted by the school board consisting of: 1. A forecast of future needs for school facilities based on the district's enrollment projections; 2. An identification of additional demands placed on existing public facilities by new development; 3. The long-range construction and capital improvement projects of the district; 4. The schools under construction or expansion; 5. The proposed locations and capacities of expanded or new school facilities; 6. An inventory of existing school facilities, including permanent, transitional and relocatable facilities; 7. At least a six-year financing component, updated as necessary to maintain at least a six- year forecast period, for financing needed for school facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues authorized by the voters; 8. An identification of deficiencies in school facilities serving the student populations and the means by which existing deficiencies will be eliminated within a reasonable period of time; and 9. Any other long-range projects planned by the district. C. "Capital improvement" means land, improvements to land, structures and relocatable structures (including site planning, acquisition, design, permitting and construction), initial furnishings and selected equipment. Capital improvements have an expected useful life of at least 10 years. Other capital costs, such as motor vehicles and motorized equipment, computers and office equipment, office furnishings, and small tools are considered to be minor capital expenses and are not considered capital improvements. D. "City" means the city of Auburn. E. "Classrooms" means educational facilities of the district required to house students for its basic educational program. The classrooms are those facilities the district determines are necessary to best serve its student population. Specialized facilities as identified by the district, including but not limited to gymnasiums, cafeteria, libraries, administrative offices, and child care centers, shall not be counted as classrooms. F. "Construction cost per student" means the estimated cost of construction of a permanent school facility in the district for the grade span of school to be provided, as a function of the district's design standard per grade span. G. "Design standard" means the space required, by grade span and taking into account the requirements of students with special needs, that is needed in order to fulfill the educational goals of the district as identified in the district's capital facilities plan. H. "Developer" means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed. I. "Development activity" means any residential construction, including the placement of a mobile home, or expansion of a building, structure or use, any change in use of a building or structure, or any change in the use of land that creates additional demand for school facilities. J. "District" means the Auburn, Kent, Federal Way, or Dieringer School District or successor entities. K. "Elderly" means a person aged 55 or older. L. "Encumbered" means to reserve, set aside, or otherwise earmark the impact fees to pay for commitments, contractual obligations, or other liabilities incurred for public facilities as set out in the adopted capital facilities plan. M. "Grade span" means the categories into which the district groups its grade of students; e.g., elementary, middle or junior high school, and high school. N. "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for school facilities needed to serve new growth and development, that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the school facilities, and that is used for such facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee. O. "Impact fee schedule" means the impact fees to be charged per dwelling unit of development that shall be paid as a condition of residential development within the city. P. "Interlocal agreement" means the agreement between the district and the city, governing the operation of the school impact fee program and describing the relationship, duties and liabilities of the parties. Q. "Net fee obligation" means the maximum impact fee obligation that may be assessed as determined in the school district capital facilities plan The net fee obligation is based on a formula that takes into consideration factors such as site acquisition costs permanent and temporary facilities construction costs, State match credits, tax credits, developer provided facility credits (if applicable) and a local share discount factor. 2 QR. "Permanent facilities" means facilities of the district with a fixed foundation which are not relocatable facilities. RS. "Relocatable facilities" means any structure, transportable in one or more sections that is intended to be used as an education space to meet the needs of service areas within the district, to provide specialized facilities, or to cover the gap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities. 4T. "Relocatable facilities cost per student" means the estimated cost of purchasing and siting a relocatable facility in the district for the grade span of the school to be provided, as a function of district's design standard per grade span. T_ U. "Site cost per student" means the estimated cost of a site in the district for the grade span of school to be provided, as a function of the district's design standards per grade span. UV. "Standard of service" means the standard adopted by the district which identifies the program year, the class size by grade span and taking into account the requirement of students with special needs, the number of classrooms, the types of facilities the district believes will best serve its student population, and other factors as identified by the district. The district's standard of service shall not be adjusted for any portion of the classrooms housed in relocatable facilities which are used as transitional facilities or any other specialized facilities housed in relocatable facilities. VW. "Student. factor" means the number derived -by the district to describe how many students of each grade span are expected to be generated by a dwelling unit. Student factors shall be based on district records of average actual student generated rates for comparable developments constructed over a period of not more than five years prior to the date of the fee calculation; provided, that if such information is not available in the district, data from adjacent districts, or districts with similar demographics or county -wide averages, may be used. Student factors must be updated on an annual basis, and separately determined for single-family and multifamily dwelling units and for grade spans. WK "Transitional facilities" means those school facilities that are being used pending the construction of permanent facilities; provided, that the necessary financial commitments are in place to construct the permanent facilities. (Ord. 5078 § 1, 1998.) 19.02.030 Determination of the amount of the impact fees. The amount of the impact fees shall be determined for each school district as agreed to by the city and the applicable school district. The methodology to determine the fees will be based upon what other jurisdictions have used to determine their school impact fees and will address the terms and concepts defined in ACC 19.02.020, Definitions. The city shall only consider requiring impact fees for any school district upon receipt of a written request duly executed from the applicable school district. The city shall adopt by a separate ordinance an impact fee schedule for each applicable school district. A. If the city annexes property and the affected school district has an impact fee schedule, approved by the applicable county, then if the affected school district has adopted a capital facilities plan which has been incorporated into the city's comprehensive plan under the Growth Management Act that schedule shall continue in effect on an interim basis and the city shall consider adopting by reference the fee amounts that the county has imposed together with any formulas or methodologies used to arrive at the fee amounts. B. If residential development occurs within a school district that is within the city of Auburn, and an impact fee schedule has been approved for that school district by another legislative authority, other than the city of Auburn, then if the affected school district has adopted a capital facilities plan which has been incorporated into the city's comprehensive plan under the Growth Management Act that schedule shall continue in effect on an interim basis and the city shall 3 consider adopting by reference the fee amounts that have been imposed by the other legislative authority together with any formulas or methodologies used to arrive at the fee amounts. C. Any impact fee imposed shall be reasonably related to the impact caused by the development and shall not exceed a proportionate share of the cost of system improvements that are reasonably related to the new development. The impact fee formula shall take into account the future revenues the district will receive from the development, along with system costs related serving the new development. D. The impact fee shall be based on a capital facilities plan adopted by the district and incorporated by reference by the city as part of the capital facilities element of the city's comprehensive plan, adopted pursuant to Chapter 36.70A RCW, for the purpose of establishing the fee program. E. Separate fees shall be calculated for single-family and multifamily types of dwelling units, and separate student generation rates must be determined by the district for each type of dwelling unit. For the purpose of this chapter, mobile homes shall be treated as single-family dwellings, and duplexes and attached single-family dwellings shall be treated as multifamily dwellings. F. The fee shall be calculated on a district -wide basis using the appropriate factors and data to be supplied by the district. The fee calculations shall also be made on a district -wide basis to assure maximum utilization of all available school facilities in the district which meet district standards. G. Credit shall be given for school facilities or sites offered by the developer which the district accepts and approves as meeting district needs and standards, consistent within capital facilities plan. (Ord. 5078 § 1, 1998.) 19.02.040 Interlocal agreement between the city and district. As a condition of the city's authorization and adoption of a school impact fee ordinance the city and the applicable district shall enter into an interlocal agreement governing the operation of the school impact fee program, and describing the relationship and liabilities of the parties thereunder. The agreement must provide that the district shall be liable and hold the city harmless for all damages which may occur as a result of any failure by the district to comply with the provisions of this chapter, Chapter 82.02 RCW or other applicable law. The agreement must provide that the district shall be liable, hold the city harmless and reimburse the city for defense and payment of all claims, including claims for damages, which may occur or arise as a result of any failure or alleged failure to comply with the provisions of this chapter, Chapter 82.02 RCW or other applicable law in the adoption, administration, or implementation of this chapter and any actions related to it. (Ord. 5078 § 1, 1998.) 19.02.050 Submission of district capital facilities plan and data. A. On an annual basis (by July 1 st or on a date agreed to by district and the city and stipulated in the interlocal agreement) any district for which the city is collecting impact fees shall submit the following materials to the city council: 1. The district's capital facilities plan (as defined herein) as adopted by the school board; 2. The district's enrollment projections over the next six years, its current enrollment and the district's enrollment projections and actual enrollment from the previous year; 3. The district's adopted standard of service; 4. The district's overall capacity over the next six years, which shall take into account the available capacity from school facilities planned by the district but not yet built and be a function of the district's standard of service as measured by the number of students which can be housed in district facilities; and 5. An inventory of the district's existing facilities. 4 B. To the extent that the district's standard of service identifies a deficiency in its existing facilities, the district's capital facilities plan must identify the sources of funding other than impact fees for building or acquiring the necessary facilities to serve the existing student population in order to eliminate the deficiencies within a reasonable period of time. C. Facilities to meet future demand shall be designed to meet the adopted standard of service. If sufficient funding is not projected to be available to fully fund a capital facilities plan which meets the adopted standard of service, the district's capital facilities plan should document the reason for the funding gap, and identify all sources of funding that the district plans to use to meet the adopted standard of service. D. The district shall also submit annually to the city a report showing the capital improvements for which the impact fees have been used. E. In its development of the financing plan component of its capital facilities plan, the district shall plan on a six-year horizon and shall demonstrate its best efforts by taking the following steps: 1. Establish a six-year financing plan, and propose the necessary bond issues, levies, and/or financing measures required by and consistent with that plan and as approved by the school board consistent with state law; and 2. Where applicable, apply to the state for funding, and comply with the state requirements for eligibility to the best of the district's ability. (Ord. 5078 § 1, 1998.) 19.02.060 Annual council review. On at least an annual basis the city council shall review the information submitted by the district pursuant to ACC 19.02.050. The review shall be in conjunction with any update of the capital facilities plan element of the city's comprehensive plan. The city council may also at this time determine if an adjustment to the amount of the impact fees is necessary; provided that, any school impact fee adjustment that would increase the school impact fee shall require the submittal of a written request for the adjustment by the applicable school district concurrently with the submittal of the annual capital facilities plan pursuant to ACC section 19 02 050. In making its decision to adiust impact fees, the City Council will take into consideration the quality and completeness of the information provided in the applicable school district capital facilities plan and may decide to enact a fee less than the amount supported by the capital facilities plan (Ord. 5078 § 1, 1998.) 19.02.070 Fee collection. The school impact fee shall be imposed, based on the impact fee schedule, at the time of application to the city for a development activity permit. The school impact fee shall be imposed based on the impact fee schedule adopted for the applicable school district. The impact fee and the application fee shall be collected by the city and maintained in separate accounts. All school impact fees shall be paid to the district from the school impact fee account monthly. The city shall retain all application fees associated with the city's administration of the impact fee program. A. Impact fees shall be imposed upon development activity in the city concurrent with the issuance of a building permit. The fees are based upon the adopted fee schedule and collected by the city from any applicant where such development activity requires issuance of a residential building permit or a building permit for a manufactured or mobile home located on platted lots within manufactured/mobile home parks, and the fee has not been previously paid. Impact fees are only collected and disbursed within the boundaries of a school district that has executed an interlocal agreement with the city of Auburn. B. Applicants for single-family and multifamily residential building permits, and for manufactured/mobile home building permits shall pay the total amount of the impact fees 5 assessed before the building permit is issued, using the impact fee schedules then in effect. The owner of the manufactured/mobile home park shall be responsible to pay the fee. C. The city shall not issue the required building permit or manufactured/mobile home building permit unless and until the impact fees set forth in the impact fee schedule have been paid. D. The city will impose an application fee of $50.00 per single-family dwelling unit and $25.00 for each multifamily dwelling unit which is subject to and not otherwise exempt from this chapter to cover the reasonable cost of administration of the impact fee program. The fee is not refundable and is collected from the applicant of the development activity permit at the time of permit issuance. (Ord. 5261 § 1 (Exh. A), 1999; Ord. 5078 § 1, 1998.) 19.02.080 Exemptions. The following development activities are exempt from the requirements of this chapter: A. Reconstruction, remodeling or construction of housing projects for the elderly, including nursing homes, retirement centers, assisted living facilities or other types of housing projects for persons age 55 and over, which have recorded covenants or recorded declaration of restrictions precluding school -aged children as residents of those projects This exemption does not include individual single-family homes on platted lots unless the subject plat has such recorded covenants. Where such covenants have not already been recorded, but the exemption is sought, the city may require the recording of a covenant or recorded declaration of restriction precluding use of the property for other than the exempt purpose. If property using this exemption is subsequently used for a nonexempt purpose, then the school impact fees then in effect shall be paid. B. Rebuilding of legally established dwelling unit(s) destroyed or damaged by fire, flood, explosion, act of nature or other accident or catastrophe; provided, that such rebuilding takes place within a period of one year after destruction and that no additional dwelling units are created. C. Alteration, expansion, reconstruction, remodeling, or rebuilding of existing single-family or multifamily dwelling units; provided, that no additional dwelling units are created. D. Condominium projects in which existing dwelling units are converted into condominium ownership and where no new dwelling units are created. E. Any development activity that is exempt from the payment of an impact fee pursuant to RCW 82.02.100. F. Any development activity for which school impacts have been mitigated pursuant to a condition of a plat, PUD or similar approval to pay fees, dedicate land or construct or improve school facilities, unless the condition of the plat or PUD approval provides otherwise. The condition of the plat, PUD or similar approval must also predate the effective date of fee imposition by the city or its predecessor in interest as provided herein and/or was actually imposed by the city or its predecessor in interest, specifically as a mitigation for impacts addressed in this chapter. Proof must also be submitted to the city that the required mitigation has been tendered for the development activity which would otherwise be subject to this chapter. G. Any development activity for which school impacts have been mitigated pursuant to a voluntary agreement entered into with the district to pay fees, dedicate land or construct or improve school facilities, unless the terms of the voluntary agreement provide otherwise. The agreement and development activity application must also predate the effective date of fee imposition by the city or its predecessor in interest as provided herein. Proof must also be submitted to the city, prior to issuance of the development activity permit, that the required mitigation has been tendered for the development activity which would otherwise be subject to this chapter. F H. The replacement of a mobile home with another mobile home within an existing mobile home park. (Ord. 5261 § 1 (Exh. B), 1999; Ord. 5078 § 1, 1998.) 19.02.090 Adjustments, exceptions and appeals. A. Arrangements may be made for later payment of the impact fee with the approval of the district only if the district determines that it will be unable to use or will not need the payment until a later time; provided, that sufficient security, as defined by the district, is provided to assure payment. Security shall be made to and held by the district, which will be responsible for tracking and documenting the security interest. B. The fee amount established in the schedule shall be reduced by the amount of any eligible payment previously made for the lot or development activity in question, either as a condition of approval or pursuant to a voluntary agreement. C. Whenever a development is granted approval subject to a condition that the development actually provide a school site or facility acceptable to the district, the developer shall be entitled to a credit for the value of the facility, based on the actual cost of providing the facility, against the fee that would be required by this chapter. The value of the facility shall be estimated at the time of approval, but must be documented, and the documentation confirmed after the facility is completed to assure that an accurate credit amount is provided. If facility value based on actual costs is less than the calculated fee amount the difference remaining shall be chargeable as a school impact fee. D. The standard impact fees may be adjusted by the planning director, if one of the following circumstances exist: 1. The developer demonstrates that an impact fee assessment was improperly calculated; or 2. Unusual circumstances identified by the developer demonstrate that if the standard impact fee amount was applied to the development, it would be unfair or unjust taking into account the purposes and intent of this chapter and Chapter 82.02 RCW. E. In cases where a developer requests a fee calculation adjustment, exception or a credit pursuant to subsection (C) of this section, the planning director shall consult with the district and the district shall advise the planning director prior to the planning director making the final impact fee determination. F. A developer may provide, and the planning director shall review, studies and data as a part of a request for a fee calculation adjustment, exception, or credit. G. Any appeal of the final decision of the planning director with regard to fee amounts may be made by the developer, district, or other aggrieved party and shall follow the process for the appeal of the underlying development application, as set forth in the Auburn City Code. The planning director's decision shall be given substantial weight and the appellant shall have the burden of proof that the final fee determination is unfair, taking into account the purposes and intent of Chapter 82.02 RCW and this chapter. H. Impact fees may be paid under protest in order to obtain a permit or other approval of development activity. However, such payment under protest shall not excuse the applicant's obligation to timely exhaust all administrative remedies and to comply with all applicable time limitation periods. (Ord. 5078 § 1, 1998.) 19.02.100 Impact fee accounts and refunds. A. Impact fee receipts shall be earmarked specifically and retained in a special interest- bearing account established by the district solely for the district's school impact fees. All interest shall be retained in the account and expended for the purposes or purposes for which impact fees were imposed. Annually, the district, based in part on its report prepared pursuant to ACC 19.02.050, shall prepare a report on the impact fee account showing the source and amount of all moneys collected, earned or received, and capital or system improvements for which impact 7 fees were used. The district shall submit a copy of this report to the city. The city finance director shall maintain separate school impact fee and administration fee accounts pursuant to ACC 19.02.070, and shall prepare, for the city council, a report on the source and amount of all school impact fees collected and transferred to the district. B. Impact fees for the district's capital improvements shall be expended by the district only in conformance with the capital facilities plan element of the city's comprehensive plan. C. Impact fees shall be expended or encumbered by the district for a permissible use within six years of receipt by the district, unless there exists an extraordinary or compelling reason for fees to be held longer than six years. Such extraordinary or compelling reasons shall be identified to the city by the district in a written report. In any decision approving such an extension, the city council shall identify the district's extraordinary and compelling reasons for the fees to be held longer than six years in the written findings. D. The current owner of property on which an impact fee has been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within six years or an extension granted under subsection (C) of this section of receipt of the funds by the district on school facilities intended to benefit the development activity for which the impact fees were paid. Impact fees shall be considered encumbered on a first in, first out basis. The district shall notify potential claimants by first-class mail deposited with the United States Postal Service addressed to the current owner of the property as shown in the county tax records. E. An owner's request for a refund must be submitted to the district in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever date is later. Any impact fees that are not expended or encumbered by the district in conformance with the capital facilities plan within these time limitations, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section. Refunds of impact fees shall include any interest earned on the impact fees. F. Should the city seek to.terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which a school impact fee was paid. Upon the findings that any or all fee requirements are to be terminated, the city shall place notice of such termination and the availability of the refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first-class mail addressed to the owner of the property as shown in the county tax records. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the district, but must be expended by the district, consistent with the provisions of this section. The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated. G. A developer may request and shall receive a refund, including interest earned on the impact fees, when: 1. The developer does not proceed to finalize the development activity as required by statute or city provisions including the Uniform Building Code; and 2. No impact on the district has resulted. "Impact" shall be deemed to include cases where the district has expended or encumbered the impact fees in good faith prior to the application for a refund. In the event that the district has expended or encumbered the fees in good faith, no refund shall be forthcoming. However, if with a period of three years the same or subsequent owner of the property proceeds with the substantially similar development activity, the owner shall be eligible for a credit. The owner must petition the district and provide receipts of impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof. The district shall determine whether to grant a credit and such determination may be appealed by following the procedures set forth in ACC 19.02.090. H. Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the district on invested funds throughout the period during which the fees were retained. (Ord. 5078 § 1, 1998.) 19.02.110 Impact fee formula The impact fee calculation and schedule shall be below is based upon the formula set forth below. The formula is the city's determination of the appropriate proportionate share of the costs of public school capital facilities needed to serve new growth and development to be funded by school impact fees based on the factors defined in ACC 19.02.020. Separate fees shall be calculated for single-family and multifamily dwelling units because of their different impact on school facilities. Separate student generation rates (student factor) must be determined by the district for each type of dwelling unit. tion to the Gity of AubuFR. „_ .. .. -- e1- 24 -AN Given the following variables: A = Full cost fee for site acquisition costs = Al + A2 + A3 Al = Elementary school site cost per student x the student factor A2 = Middle school site cost per student x the student factor A3 = High school site cost per student x the student factor B = Full cost fee for school construction = B1 + B2 + B3 131 = Elementary school construction cost per student x the student factor B2 = Middle school construction cost per student x the student factor B3 = High school construction cost per student x the student factor C = Full cost fee for temporary facilities maintenance = C1 + C2 + C3 C1 = Elementary school temporary facility cost per student x the student factor C2 = Middle school temporary facility cost per student x the student factor C3 = High school temporary facility cost per student x the student factor D = State match credit = D1 + D2 + D3 D1 = Boeckh Index x SPI square footage per student for elementary school x state match % x student factor D2 = Boeckh Index x SPI square footage per student for middle school x state match % x student factor D3 = Boeckh Index x SPI square footage per student for high school x state match % x student factor TC = Tax payment credit = the net present value of the average assessed value for the dwelling unit type in the school district, <(1+I)n>-1 I(1 =1)n x the current school district capital property tax levy rate, I(1+I)n, where I = the current interest rate for outstanding bond issues n = the number of years left before the bond or, capital levy is retired, up to a maximum of 10 years FC = Facilities credit = the per dwelling unit value of any site or facilities provided directly by the development subject to ACC 19.02.090 FC = Value of fee payer's contribution Number of dwelling units in the development Then the unfunded need (UN): �i UN=A+B+C-D-TC The Fee Obligation: Total Unfunded Need x 50% = Fee Calculation -- :: - - - - M -Cr. W. .Mr. M _ I W.T.VV.. .. iQ&%9WAfiPZ2Vkq slum a .. ■ -- Where, in addition to the definitions in ACC 19.02.020: A. "Boeckh Index" means the area cost allowance for school construction determined under WAC 180-27-060. B. "SPI square footage per student" means the space allocations per grade span determined by WAC 180-27-035. C. "State matching credit" means the calculation set forth in Attachment A of the District's Boeckh Index times SPI square footage per student per grade span times state match percentage times applicable student factor. D. "State match percentage" means the percentage of school construction costs for which a district is eligible to receive state funding pursuant to RCW 18A.525.166 and the rules of the State Board of Education. E. "Tax payment credit" or "TC" means the calculation in the formula of the district's average real property tax determined value for single-family dwelling units or multifamily dwelling units times the district's capital property tax rate as adjusted by the current interest rate for any bonds being retired by a capital tax and the number of years each capital levy tax shall be imposed up to 10 years. The district's capital tax rate consists of authorized tax levies to retire bonded indebtedness incurred for school district capital purposes under Chapter 28A.530 RCW and school facility levies for construction, remodeling, and modernization under RCW 84.52.053. (Ord. 5096 § 1, 1998.) 19.02.115 Impact fee calculation and schedule for the Dieringer School District The impact fee calculation and schedule below is based upon the impact fee calculation for single family residences and for multifamily residences set forth in the most recent version of the Dieringer School District Capital Facilities Plan adopted by the Auburn City Council as an element of the Auburn Comprehensive Plan. The calculation is the determination of the appropriate proportionate share of the costs of public school capital facilities needed to serve new growth and development to be funded by school impact fees based on the factors defined in ACC 19.02.020. A. Until December 31, 2005, the school impact fee shall be as follows: 1. Per Single -Family Dwelling Unit $1,425.00 Per Multifamily Dwelling Unit $ 750.00 B. Effective January 1, 2006, the school impact fee shall be as follows: 1. Per Single -Family Dwelling Unit $3,500.00 Per Multifamily Dwelling Unit $ 739.00 19.02.120 Impact fee calculation and schedule for the Auburn School District. 10 The impact fee calculation and schedule is based upon the impact fee calculation for single- family residences and for multifamily residences set forth in the most recent version of the Auburn School District's Capital Facilities Plan adopted by the Auburn City Council as an element of the Auburn Comprehensive Plan, dated May -2003. The calculation is the determination of the appropriate proportionate share of the costs of public school capital facilities needed to serve new growth and development to be funded by school impact fees based on the factors defined in ACC 19.02.020. A. F=#eGtove janwaFy 1, 2004, the sraheel iFnpaGt fee shall be a6 fellews- BA. Effective January 1, 2005, the school impact fee shall be the lesser of the following: 1. Per Single -Family Dwelling Unit $4,500 Per Multifamily Dwelling Unit $11200 2. Should the net fee obligation identified in the most recent capital facilities plan adopted by the Auburn school district be less than amounts listed in subsection (13)(1) of this section, then the fee obligation shall be in accordance with the net fee obligation identified in said plan and adopted by reference as part of the capital facilities element of the city of Auburn's comprehensive plan. B. �. Effective BegiRning January 1, 2006, the school impact fee shall be as follows: aed-fer ms's 1. Per Single -Family Dwelling Unit $5,681.36 Per Multifamily Dwellinq Unit $1,536 30 19.02.130 Impact fee calculation and schedule for the Kent School District. The impact fee calculation and schedule is based upon the impact fee and calculation for single- family residences and for multifamily residences set forth in the most recent version of the Kent School District's Capital Facilities Plan adopted by the Auburn City Council as an element of the Auburn Comprehensive Plan., X998. The calculation is the determination of the appropriate proportionate share of the costs of public school capital facilities needed to serve new growth and development to be funded by school impact fees based on the factors defined in ACC 19.02.020. A. Until December 31, 2005, the school impact fee shall be as follows: 1. Per Single -Family Dwelling Unit $2,500.00 Per Multifamily Dwelling Unit $1,000.00 -- ! •� •. WATATOW 11 B. Effective January 1, 2006 the school impact fee shall be as follows: 1. Per Single -Family Dwellinq Unit $4,775.00 Per Multifamily Dwelling Unit $2,940.00 The Fee Oblegation.- Totat Unfunded Need x 0 (Ord. 5233 § 1, 1999.) 12 ADDITIONAL INFORMATION SCHOOL IMPACT FEES - risdi t ` Sc oo, r>�p" S'ch mp (possible) 2005, A" _.... v 2006:.' City of Auburn School District (SD) Auburn SD (Per CFP) $5,681/$1,536** Auburn $4,500/$1,200* Kent SD $2,500/$1,000 Kent SD (Per CFP) $4,775/$2,940** Dieringer SD $1,425/$750 Dieringer SD $3,500/$739** Federal Way SD - No interlocal. Federal Way SD — To Be Determined City of Kent Kent SD $4,056/$1,762 Kent SD $4,775/$2,940 Federal Way SD $2,868/$905 Federal Way SD $3,393/$895 Auburn SD $5,296/$1,831*** Auburn SD $5,6811$1,536 (Fees above are in accordance with Kent City Council sets fees in December, maximum obligations identified in but past practice has been to adopt the school district CFP). maximum school district CFP fee amounts assumed above). City of Federal Way SD $2,8681$905 Federal Way SD $3,393/$895 Federal Way Federal Way City Council sets fees later in 2005, but past practice has been to adopt maximum school district CFP fee amounts assumed above). King Kent SD $4,056/$1,762 Kent SO $4,775/$2,940 County**** Federal Way SD $2,868/$905 Federal Way SD $3,393/$895 Auburn SD $5,296/$1,831*** Auburn SD $5,681/$1,536 (Fees above are in accordance with County Council sets fees late in the year, maximum obligations identified in but past practice has been to adopt the CFP). maximum school district CFP amounts. Above information assumes these maximum fees. City of Kent SD $4,056/$1,762 Uncertain. Maple Valley This fee represents the maximum per the CFP. Pierce $2,140/$1,130 $2,675/$1,410 Count ***** * Single Family Fee/Multi-Family Fee. ** Based on current proposal developed by the PCD Committee (Proposed Ordinance No. 5950). *** These amounts also reflect the maximum amounts identified in the Auburn School District's Capital Facilities Plan (adopted by the Auburn City Council in December 2004). **** King County collects school impact fees for several other school districts in addition to Auburn, Kent and Federal Way. ***** Pierce County applies its school impact fee amount on a countywide basis. ADDITIONAL INFORMATION AUBURN SCHOOL DISTRICT IMPACT FEES Presently, ACC section 19.02.120 sets forth the school impact fee schedule for the Auburn School District. The Auburn School District impact fee schedule is based on a three-step rate increase as provided for in City Ordinance No. 5793 approved in 2003. Per School District CFP I Per School District CFP As provided for in ACC section 19.02.120(C), beginning January 1, 2006, and for every January 1 st thereafter, the school impact fee shall be in accordance with the net fee obligation identified in the most recent capital facilities plan adopted by the Auburn School District and adopted by reference as part of the capital facilities element of city of Auburn's comprehensive plan. The Auburn School District 2005-2011 CFP (adopted by the Auburn School Board of Directors April 25, 2005) identifies a net fee obligation of $5,681.36 for single-family dwelling units and $1,536.30 for multi -family dwelling units. Based on existing Auburn City Code provisions, then, these would be the school impact fee amounts collected by the City of Auburn on behalf of the Auburn School District beginning January 1, 2006 (assuming the City Council approves the Auburn School District's 2005-2011 CFP during this year's comprehensive plan amendment process). At this time the Auburn Planning Commission held its public hearing on the Auburn School District's 2005-2011 Capital Facilities Plan and has recommended approval to the Auburn City Council. AUBURN SCHOOL DISTRICT AVENUE TO November 3, 2005 David Osaki Community Development Administrator City of Auburn 25 West Main Street Auburn, WA 98001 Dear Mr. Osaki, Thank you for your letter dated October 31, 2005 outlining the process for the district to request increase in school impact fees. The Auburn School District in June of 2005 submitted to the City of Aubum the 2005- 2011 Capital Facilities Plan requesting. the p� he adopted by reference as part of the capital facilities element of the City of Auburn's Copproved the Ci Comprehensive Plan; and that the fee schedule, a b3 City Council in November of 2003, be initiated in conformance with the Ordinamce No. 5793. This letter is to again request that the City of Auburn adjust theschool impact fee to the amount as reflected in the 2005-2011 Capital Facilities Plan as adopted by the Auburn School District Board of Directors on April 25, 2005. The fees amounts, as calculated in the Plan, are $5,681.35 for Single Family and $1,536.30 for Multi -Family. Representatives from the Auburn School District will attend the November 14, 2005 meeting of the Planning and Community Development Committee. Please advise if additional information is required or needed. Thank you for your assistance. Copy to: Linda Cowan, Superintendent, Auburn School District Jeff Grose, Executive Director of Capital Projects 915 Fourth Street NE; Auburn, WA 98002-0452 (253) 931-4930 KENT SCHOOL DISTRICT Finance & Planning 12033 SE 256th Street SwteA-too Kent, Washingbn 980305643 Plc 253-373-7295 Fan 253-373-7018 November 9, 2005 Noy 9 ?005 BANNING pEPq�}fittV City ofAubum i Attn: David Osaki, Community Development Administrator 25 W. Main Street Auburn, WA 980014998 Re: 2005 Capital Facilities Plan & Impact Fees Dear Mr. Osaki: In connection with your review of the Kent School District Capital Facilities Plan for 2005, we request that the City of Auburn consider adoption of the full impact fee (as voluntarily adjusted) for single family and multi -family residential development, The proposed impact fees of $4,775 per single family unit and $2,940 per multi -family unit were approved and adopted in the district's Capital Facilities Plan by the Kent School District Board of Directors on July 27, 2005. The Kent School District has continued our commitment to keep impact fees . at a reasonable level by voluntarily reducing the formula -driven fbes and adjusting them to coincide with increase in the Consumer price Index. Our request's based on the potential impact of new development in the portion of the City of Auburn that is served by Kent School District. It also is intended to match parity with the fee structure now in place between the City - and the Auburn School District. We appreciate your attention to this matter and urge prompt consideration of our request on behalf of our shared taxpayers. If you have any questions, please call us at (253) 373-7293. Sincerely, -t_ OohnKnutson Executive Director of Finance cc: Fred High, Assistant Superintendent for Business Services IERINGER SCHOOL DISTRICT Educating every child for Confidence today aid Costribntioa tomorrow November 2, 2005 David Osal i Community Development Administrator City of Auburn .. 25 West Main. Street Auburn, WA 980014998 Subject: Dieringer School District - Mtigation Irmpact Fees . DearMr.' Osala As Ipieviously shared Wltli you, at the June.21, 2005 meeting-of the Dieringer School bistrictBoard of Dircdois unanimonslyp4ssed a'motion to officiallyrequest the establishment of mitigation impact fees for single and multi-family:dwellings within. the" . Dieringer School District equal to those set for the Auburn School District. ' The current Auburn fees of $4,500 per single-familydwelling. and $1,-200 per multi-family dwelling are clearly supported by the Dieringer School District Capital :Facilities Plan on file." with: the City of Aubnm and updated annually. The Board further requests that the mitigation impact fees established for the Dieringer School District be maintained on a par with the fees established for the Auburn School District. 'Please let.me know if you need further information 862-2537. by contacting me at (253) Sinc ly, '41 dy e _Martinson perintendent 1320 - 178th Avenue East • Sumner, Washington 98390 • (253) 862-2537 • FAX (253) 862.8472 Dieringer School District #343 is an 4ual OMw nmjy 1n muni n