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HomeMy WebLinkAboutCity Council Committees - Planning and Economic Development Committee - 05/10/2010 - _ 1 KE N T W^so/N"m" ECONOMIC & COMMUNITY DEVELOPMENT COMMITTEE MINUTES May 10L2010 Committee Members Chair Jamie Parry, Elizabeth Albertson, Deborah Ranniger Chair Perry called the meeting to order at 5:00 p.m. 1. APPROVAL OF MINUTES Ranniger MOVED and Perry SECONDED to approve the April 12, 2010 Minutes. Motion PASSED 3-0. Passed with pending concurrence 2. Deferral of Development Fees—Hearing Mayor Cooke addressed the Committee regarding the issue of da[aning fees as in the context of the current economy and its impacts on development. As a result of the depression in the housing market, the cost of improvements required with new homes and the cost of money for developers, the idea of deferring costa is a trend that is happening all across the county and in King County. Deferring part of the fees the developer pays up front until the residence is purchased, allows money to be leveraged to pay for the City's . fees. This came clear as a path we wanted to offer to help our housing base, residents and our economic status. Matt Gilbert presented to the Committee and summarized an ordinance to implement fee deferrals as discussed at the April 12 meeting. Mr. Gilbert noted that we are addressing development mitigation fees collected at the time a single family building permit is issued. � Fee deferrals are limited to new single family homes intended for sale. The fees which are | available for deferral are development mitigation payments, vvhich do not impact the City's general fund. These payments include drainage system development charges, water system development charges, school impact, and traffic mitigation fees. Under staff's recommendation, these fees would be bundled into lien, at the owners discretion could be filed by the City against the property, to be paid at the time the home is sold. This lien will come up in the escrow process and will need to be paid through the closing of the sale. Water permits will also be part ofthis and are separate fee; these are also required to be bundled in with deferred building permit haeS if the lien option is exercised. The disclosure issue that oanna up at the April 12 t» meeting is covered under the State of Washington and other encumbrances on property and under the ordinance, the City will require this notice � process be used as well, so no one is surprised. Mr. Gilbert noted that when the lien is released there is a recording fee which is not included in the $140 fee ce||ad out in the motion. To account for the additional County recording cost, this fee amount should be stated in the motion as $202. Additionally the lien administration fee will need to be added | to the City's fee schedule. Counc||rnennber Albertson questioned how we ensure that the lien is not paid by the purchaser. She clarified that the ordinance does not require the builder/seller to pay off the lien at time of escrow. Council Chair Perry stated it is in Section 4 and the aa||ar is responsible. Is the lien with the builder oroO the property? It is on the property, responded Gilbert. That is what makes nna uncomfortable stated Counoi|nnarnber Albertson. Counc||nnennberA|bertson states, anything that is a hold on the title is on the table and that is my issue with the vvoy this is written. Council Chair Perry asked why the water fee is included. Gilbert responded that there are | two charges to be paid when a water permit is issued, tap charge and system development fee. The tap fee is being paid the same as today. System development fee goes into the water fund to pay for larger projects and is just different name for impact fee. Comnd|member Albertson asked Kim Adam-Pratt from the City Law Department, who is responsible to pay. It doesn't say the seller must pay it just says it is required to be paid. Pratt responded we can specify who has to pay it, at this time we are just requiring it to be paid. It will come up as a lien on the title and it has to be cleared before the deed is exchanged, this will be addressed during the escrow process. The buyer will be able to yaa it on their escrow statement. CounoiUmme / ber Ranniger MOVED and CounciUmmemmber Albertson SECONDED to open the Public Hearing. Motion PASSED 3-0. Council Chair Perry opened the Public Hearing. Fred High, Assistant Superintendent, Kent School District, 12033 SE 256 m Would like to join the Federal Way School District, who sent by email a letter to join Kent School District in asking the school impact fees be exempt from this ordinance. Garret Huffman, Master Builders Association King and Snohomish Counties Stated for the record he is in full support of the ordinance. Several of the neighboring cities, such as Federal Way, Covington/ Burien and Renton are all moving forward with this issue. Gerald E. Schneider, Schneider Homes, 6510 S. Center Blvd. Has a big development that will be happening in the Kent city limits and the impact fee will be devastating to pay up front. The thing about impact is there is no impact till the home is occupied. The average time for construction and buyers to move in are 10-12 months. The impact fees would be a real burden on Schneider Homes. I came in to say to defer the impact fees till the closing. Paul Lymberis, Sr. Development Manager Quadrant Homes, PO Box 130, Bellevue, WA. Would like to echo everything the last two gentlemen said. We would like to get into the --- Kent market area. By deferring the payment to a later time always helps the bottom line. Hans Korve, 726 Auburn Way N., Auburn, WA. With all due respect to the school district and their concerns, a child doesn't show up when the bU||d|Og permit is issued or picked up it is when they nnoV8 into the district. When a building permit is picked up, it also doesn't show Up as what type of student it is, � elementary, Jr. or High School student. Cound|nnernber Parry asked of Fred High, how do you build o school? Only with a demonstrated need in the area, stated Fred High, Assistant Superintendent, Kent School District. We can't ae|| bonds without raising tax rates on the residents of the City of Kent. Impact fees will become the reliable sources to house or take care of the temporary impact | from new growth. � Counci|rnernber Rann|ger asked Matt Gilbert is it correct we pay the impact fees on quarterly bases, not monthly? Yes, Ichecked with Finance and that |s our procedure. Could we consider adjusting how frequently the City pays out the fees to solve the short fall Counoi|nmennbar Rann|ger asked? We could raise that question with Finance, Gilbert responded. | Gilbert wanted to make sure staffunderstands the administration fee of '�2O2 and ask that | ' Council comes back ata later date to make sure the fee is covering all costs. Council Chair Perry agreed. � CouOci|rnernberA|bertson wanted to know what happens when builders go bankrupt, where � ' does that leave the city in respect to the lien? Kim Adams-Pratt from legal stated we will ECDC Minutes May 10, ZO1U Page 2of4 want to make sure we are in first position, and if a foreclosure happens our lien will not be wiped out. Council Chair Perry asked is it feasible to pay the school district monthly? Yes was stated by Bob Nachlinger Finance Director. Albertson MOVED and Ranniger SECONDED a Motion to close the public hearing and add to the next Council meeting as Other Business. Motion PASSED 2-1. Councilmember Ranniger moved to Approve amendments to Kent City Code t,itle seven and title twelve, related to timing of development mitigation fee collection as recommended by staff. Additionally, direct staff to prepare and update of Kent City Council Resolution 1740 to include a $202 payable prior to recordation of each fee deferral lien. Council Chair Perry 2nd. Passed 2-1, goes to other business. 3. Adoption and Amendment of 2009 Building and Fire Codes Bob Hutchinson, City Building Official stated this updated occurs every 3 years. The purpose before committee is the 2009 addition on the State Building Code. The State Building Code Council has adopted and will be in effect state wide on July 1st. This ordinance does not contain provisions that allow fire sprinklers in residential homes. Fire Marshall, ]on Napier touched on wanting to add all of the appendices into the body of the code to make it easier for people to find and read. Along with asking for ability to make changes to fire alarm and sprinkler systems so they don't send false alarms. It's noted a clarification of the budget change which is being corrected to reflect $15,000 of revenue due to 3 new permit types; we will be adding commercial kitchens, emergency stand-by power supply, which is due to existing fire hazards in commercial kitchens. Unique to Kent is the hazard of idle pallet storage. Staff will be requiring a setback of a minimum of 10 feet with a possible maximum of 20 feet. Councilmember Albertson moved to recommend Council enact ordinances adopting the 2009 editions of the International Building, Residential, Mechanical and Fire Codes and the Uniform Plumbing Code, and the 2009 Washington State Energy Code, together with the City's local amendments to those codes as depicted in Exhibits A and B, Councilmember Ranniger 2nd, Motion passed 3-0 4. Panther Lake Annexation Interlocal Agreement with King.County Planning Director Fred Satterstrorn stated this item is not ready to bring to the committee at this time. Staff will bring back to committee next month if sufficient progress has been made with King County. S. Panther Lake Annexation Special Census Calm River Consultant Services Agreement Planning Director Fred Satterstrom explained that the city has to do a census of the population with in the first 30 days following the effective date of the Panther Lake Annexation. This is a large population of approximately 24,000 to 25,000 people and the state has allowed us to start 2 weeks early. Staff interviewed two companies and Calm River was chosen. They have done annexation population census for Auburn and Burien. The agreement is for $122,000 with a contingency for every unit over 8250 it is $12.50 per unit. Sufficient monies are already in the Council approved annexation budget. Councilmember Ranniger moved to authorize the Mayor to sign a contract with Calm River, not to exceed $122,217, to provide census services to the City of Kent for the Panther Lake Annexation area special census as required by the State of ECDC Minutes May 10, 2010 Page 3 of 4 Washington Office of Financial Management. Councilmember Albertson 2"d, Motion passed 3-0 6. Economic Development Report - Information Only No Report was given Adjournment 1 Council Chair Perry Adjourned the Meeti Vono m & Community Development Committee P:\Planning\ECDC\2010\Minutes\05-10-10 MlnAoc ECDC Minutes May 10, 2010 Page 4 of 4