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HomeMy WebLinkAbout03-20-2006 ITEM VIII-B-2CITY OF Y -* WASHINGTON AGENDA BILL APPROVAL FORM Agenda Subject: Resolution No. 3998 Date: March 14, 2006 Department: I Attachments: Resolution No.3998 (with Budget Impact: Planning and Development Interlocal Agreement as Exhibit "A"); July 2005 letter from Federal Way School District Administrative Recommendation: City Council to introduce and approve Resolution No. 3998 Background Summary: In December 2005, the City of Auburn approved the Federal Way School District's Capital Facilities Plan (CFP) as part of the year 2005 Comprehensive Plan amendments. Consideration and adoption of the Federal Way School District's CFP was in response to a request from the Federal Way School District last July (see attached letter.) Auburn City Code (ACC) section 19.02.040 addresses interlocal agreements for school impact fees and states, "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." Approval of the interlocal agreement is therefore a necessary condition for the City to adopt a school impact fee program for the Federal Way School District. The attached interlocal agreement is patterned after the interlocal agreement the City has with the Auburn School District and was developed by the City Attorney's office and the legal representative of the Federal Way School District. L0320-2 F4.3 Reviewed by 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 ❑ Planning & CD ❑ Fire ❑ Planning ❑ Park Board [-]Public Works ❑ Legal Cl Police ❑ Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources ❑ Information Services Action: Committee Approval: ❑Yes []No Council Approval: ❑Yes ❑No Call for Public Hearing Referred to Until_!_!_ Tabled Until _/_/_ Councilmember: Norman Staff: Krauss Meeting Date: March 20, 2006 1 Item Number: VIII.B.2 AUBURN* MORE THAN YOU IMAGINED Agenda Subject: Date: Resolution No. 3998 March 14, 2006 The school impact fee program, which establishes specific impact fee amounts, requires an amendment to the City Code by ordinance. It will be brought forward to the Council Committees/City Council once an interlocal agreement is approved by both the City and the Federal Way School District. Resolution No. 3998 was reviewed by the PCD Committee on March 13, 2006 and recommended for approval. Page 2 of 2 RESOLUTION NO. 3 9 9 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT FOR SCHOOL IMPACT FEES BETWEEN THE CITY OF AUBURN AND FEDERAL WAY SCHOOL DISTRICT NO. 210 WHEREAS, Federal Way School District No. 210 has asked the City of Auburn to implement a school impact fee program; and WHEREAS, the City of Auburn adopted the Federal Way School District No. 210 Capital Facilities Plan (2006) as a component of the Auburn Comprehensive Plan in 2005; and WHEREAS, the City of Auburn has adopted Chapter 19.02 of Auburn City Code entitled "School Impact Fees" and WHEREAS, Auburn City Code section 19.02.040 requires, as a condition of the City's authorization and adoption of a school impact fee ordinance, that the City and the applicable district enter into an interlocal agreement governing the operation of the school impact fee program and describing the relationship and liabilities of the parties thereunder. Resolution No. 3998 March 13, 2006 Page 1 of 3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH RESOLVES AS FOLLOWS: SECTION 1. The Mayor and City Clerk of the City of Auburn are herewith authorized to execute an interlocal agreement for school impact fees between the City and Federal Way School District No. 210. A copy of said agreement is attached hereto, denominated as Exhibit "A" and made a part hereof as though set forth in full herein. SECTION 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. SECTION 3. This resolution shall take effect and be in full force upon passage and signatures thereon. DATED AND SIGNED this day of 2006. CITY OF AUBURN Peter B. Lewis, Mayor ATTEST: Resolution No. 3998 March 13, 2006 Page 2 of 3 Danielle E. Daskam, City Clerk AS TD FORM: rney Resolution No. 3998 March 13, 2006 Page 3 of 3 "EXHIBIT A" INTERLOCAL AGREEMENT FOR SCHOOL IMPACT FEES BETWEEN CITY OF AUBURN AND FEDERAL WAY SCHOOL DISTRICT NO. 210 I. RECITALS A. Pursuant to Section 19.02.040 of Chapter 19.02 of the Auburn City Code (ACC) entitled School Impact Fees, school districts within the City of Auburn, who have requested the collection of impact fees and who have had a capital facilities plan adopted by the City, are authorized to enter into an interlocal agreement containing certain provisions regarding the administration of the school impact fee program. B. Pursuant to Chapter 39.34 RCW, the Interlocal Cooperation Act, the City of Auburn ("the City") and Federal Way School District No. 210 ("the District") have agreed upon the rights and responsibilities of the parties in the collection of impact fees. II. AGREEMENT Purpose. The purpose of this Agreement is to establish a process for the maintenance of separate fund accounts for the receipt and expenditure of impact fees, record keeping for such accounts, submission of annual reports by the District concerning expenditures for such accounts, and the submission of information regarding the District's capital facilities plan. This Agreement is intended to comply with the requirements of the City's Impact Fee Ordinance and the provisions of RCW 82.02.050-090 concerning the collection, expenditure, refunding, and accounting of impact fees. Nothing in this Agreement shall excuse the District from compliance with any obligation imposed under RCW 82.02 or under the City of Auburn Impact Fee Ordinance, as they may be amended from time to time. 2. Organization. This Agreement does not create any separate legal or administrative entity. Exhibit A Resolution No. 3998 Page 1 of 5 Duration and Termination. This Agreement shall remain in effect so long as impact fee accounts are maintained by or on behalf of the District. 4. Impact Fee Collection and Accounts. 4.1 The City shall collect school impact fees from applicants for building permits and other actions as specified by Section 19.02.070 of the Impact Fee Ordinance. For each impact fee collected, the City shall record (a) the date of collection and amount of the impact fee, (b) the real property lot or parcel assessed the fee, and (c) the current owner of the real property. The City shall provide the District with a statement on a monthly basis containing the information required to be maintained under this subsection. 4.2 So long as the District is in compliance with this Agreement, the requirements of RCW 82.02 and the City's Impact Fee Ordinance, the City shall tender all impact fees collected on behalf of the District to the District monthly. The District shall deposit all impact fees collected and tendered under this agreement in its designated school impact fee account and shall invest, account for and expend impact fees in accordance with the Impact Fee Ordinance and state law. Expenditure of Impact Fee Funds; Reports. 5.1 Subject to the provisions of this Agreement and the City's Impact Fee Ordinance, the District shall have sole responsibility for the expenditure of impact fee accounts in accordance with the Impact Fee Ordinance and state law. 5.2 By December 31 of each year, pursuant to Sections 19.02.050 and 19.02.100, the District shall submit to the City a report describing for the District's preceding fiscal year ending August 31: (a) the source and amount of all funds in the impact fee account; (b) expenditures from or encumbrances on the impact fee account; (c) the facilities for which the account was expended or encumbered; (d) the remaining unencumbered balance of the account; and (e) the Exhibit A Resolution No. 3998 Page 2 of 5 Districfs action on any requests for refunds and any refunds of impact fees. 5.3 Notwithstanding any other provision of this Agreement, the City shall be entitled to withhold transfer of impact fees collected on behalf of the District if the District fails to comply in any respect with Ch. 19.02 or RCW Chapter 82.02 and any amendments thereto and any other applicable laws, rules or regulations. 6. Refunds. 6.1 The District shall monitor its impact fee account for the purpose of determining whether the owners of any property for which an impact fee has been assessed and collected are entitled to a refund under the Impact Fee Ordinance and RCW 82.02.070-080; provided, however, that if the District seeks an extension of time to retain unencumbered impact fees longer than 6 years, the District must first obtain a finding from the City approving that request. If the District determines a refund is due, it shall notify the City of the affected property and the amount of the refund, including interest earned on the funds and provide notice to the current owner of property as required under Section 19.02. 100 of the Impact Fee Ordinance. 6.2 If the City receives a request for a refund from a property owner, including any requests received from persons that have not commenced or completed construction of development activity subject to the Impact Fee Ordinance, it shall refer the request to the District for review and comment, including a calculation of the amount of the refund and interest. The District shall notify the City of the action taken on the request. If the City terminates the school impact fee program, it shall administer the refunding of any unencumbered or unexpended funds at the time of the termination. Termination. The District may terminate participation in this Agreement whenever it ceases to have impact fees collected on its behalf and no funds are retained in its impact fee account. If the City terminates its school impact fee requirements pursuant to Auburn Code Chapter 19.02 as it may Exhibit A Resolution No. 3998 Page 3 of 5 be amended from time to time, then this Agreement shall terminate once the obligations remaining under it have been met. The parties do not anticipate the acquisition of property or other assets that would be required to be distributed to the parties upon termination of this Agreement. 8. Effective Date and Filing. Pursuant to RCW 34.04.040, this Agreement shall become effective after approval by the City and the District. The approved Agreement shall be filed with the King County Auditor and the District's Board Secretary. 9. Capital Facilities Plan. . Pursuant to ACC 19.02.050, as it may be amended from time to time, the District shall maintain and update its Capital Facilities Plan and ensure that it meets the requirements of RCW Chapter 82.02 and all other applicable requirements to support an impact fee program. On or before June 1 of each year, the District shall submit its plan and/or any proposed amendments to the City for adoption as part of the City's Comprehensive Plan. The Plan and/or Plan amendments submitted by the District shall have been prepared and adopted by the District in accordance with all applicable requirements, including those for public notice and participation. They shall also contain all information required under the City's Impact Fee Ordinance. 10. Indemnification. The District shall indemnify, defend, and hold harmless the City, its employees, officials and agents against any and all claims, demands and lawsuits, and shall pay all costs and attorney's fees incurred in the defense thereof, for any damages arising from or relating to the District's performance of or failure to perform its obligations under this ACC Chapter 19.02, RCW Chapter 82.02 or other applicable laws concerning the adoption, administration or implementation of the City's school impact fee program. District agrees to indemnify and hold City harmless in defense of the school impact fee ordinance to the extent of challenges to the ordinance's constitutionality or a challenge to the underlying District required plans or policies including but not limited to the District Capital Facilities Plan, except any procedural due process challenges or challenges to the adopting process of the impact fee ordinance or amendments thereto. The District shall not, by this provision, be required to indemnify, defend or hold harmless the City for any loss or damage, or cost incurred in defense, which arises out of claims, demands or lawsuits Exhibit A Resolution No. 3998 Page 4 of 5 relating to the negligence where the indemnification, defense or hold harmless agreement is not permitted under state law. Further, the District shall not, by this provision, be required to indemnify, defend or hold harmless the City for any loss or damage, or cost included in defense, which arises out of claims, demands and lawsuits resulting from the City's negligence in carrying out ministerial acts (accounting functions) required under ACC 19.02. IN WITNESS WHEREOF, the parties have executed this Agreement on the day of 12006. CITY OF AUBURN FEDERAL WAY SCHOOL DISTRICT NO. 210 in Its: Mayor Its: Superintendent ATTEST: City Clerk LN Cit, .... _.._, Exhibit A Resolution No. 3998 Page 5 of 5 Preston I Gates I Ellis LLP July 1, 2005 David Osaki City of Auburn Planning & Community Development 25 West Main Street Aubum, WA 98001-4916 Re: Federal Way School District Capital Facilities Plan Dear Mr. Osaki: Denise L. Stiffarm den is es@prestongates-com REC WED JUL 0 6 2005 Pi.ANMING WARTMENT As you know, the Federal Way School District's service area includes portions of the City of Aubum. As you also know, the City is currently considering approval of Jovita Heights, a 107 lot preliminary plat that is located entirely within the District's service area. The students generated from this development will have significant impacts on the District's school facilities. In addition, we understand that there is a possibility of additional residential development in portions of the City that are located within the District's service area. Given these facts, the Federal Way School District respectfiilly requests that the City of Aubum adopt the District's Capital Facilities Plan as asub-element of the City's Comprehensive Plan during the current annual update. Enclosed please find a copy of the 2005 Capital Facilities Plan. The District's Board of Director's adopted this Plan on May 24, 2005. The District would also like to initiate discussions with the City regarding the inclusion of the District within the City's existing school impact fee ordinance and the development of a corresponding interlocal agreement. Please contact me at (206) 370-7645 to discuss these matters. Sincerely, PRESPON GATLS & ELLIS LLP B y Denise L. Stiffarm. Encl. cc: Ms. Sally McLean, Federal Way School District (w/o encl.) 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