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HomeMy WebLinkAbout4393ORDINANCE NO. 4393 AN ORDINANCE of the City Council of the City of Kent, Washington, amending the Kent Comprehensive Plan and its Capital Facilities Element to incorporate an updated Park Project List and the 2O2L Park Impact Fee Study (CPA-2021-1)' RECITALS A. The City of Kent Parks and Community Services Department submitted a proposed amendment to the Capital Facilities Element of the Comprehensive Plan to incorporate an updated Park Project List and the 2O2L Park Impact Fee StudY, B. The City is currently exploring the possibility of enacting a Park Impact Fee on new development to pay for additional parks and recreation facilities to meet the increased level of service capacity needed to support growth. C, Pursuant to RCW 82.02.050, impact fees may be collected and spent only for public facilities which are addressed by a capital facilities element of a comprehensive plan, and continued authorization to collect and expend impact fees is contingent on the capital facilities element identifying: (1) deficiencies in public facilities serving existing development and the means by which existing deficiencies will be eliminated within a I Comprehensive Plan Amendment to the Capital Facilities Element for Park Project List and Impact Fee Study reasonable period of time; (2) additional demands placed on existing public facilities by new development; and (3) additional public facility improvements required to serve new development. D. The incorporation of the Parks Project List and the 2021 Park Impact Fee Study into the Capital Facilities Element of the Comprehensive Plan is for the purpose of meeting the requirements of RCW 82'02.050 should the City decide to implement a Park Impact Fee. E. On December 30, 2020, the city provided the state of Washington the required 60 day notification under RCW 36.704.106 of the City's proposed amendment to the Capital Facilities Element of the Comprehensive Plan, The 60 day notice period has passed. F. On September lL, 2020, the City's SEPA responsible official issued a SEPA Addendum to existing environmental documents consisting of the City of Kent Comprehensive Plan Review and Midway Subarea Planned Action Environmental Impact Statement (EIS) Draft and Final (ENV-2010-3) and the Downtown Subarea Action Plan Supplemental EIS Draft and Final (ENV-2012-3O). The SEPA Addendum explained that the proposed amendment is not expected to create adverse impacts beyond those previously identified in the EIS. G, After providing appropriate public notice, the Land Use and Planning Board conducted a public hearing on February 8,202L, to consider the Parks Project List, the 2O2L Park Impact Fee Study, and the requested amendment to the Comprehensive Plan and its Capital Facilities Element. H. approved On March 2, 2021, the City Council for the City of Kent the capital Facilities Element amendment to the Kent 2 Comprehensive Plan Amendment to the Capital Facilities Element for Park Proiect List and Impact Fee Study Comprehensive Plan to incorporate the Park Project List and the 202L Park Impact Fee Study (CPA-2021-1)' NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE 'EOTION 7, - Amendment The city of Kent comprehensive Plan and its Capital Facilities Element are hereby amended to incorporate the Park Project List and the 2O2l Park Impact Fee Study as set forth in Exhibit A and B, respectively, attached and incorporated by this reference (cPA-2021-1). SECTION 2. - Corrections by citY clerk or code Reviser. upon approval of the city attorney, the city clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations' SECTION 3, - Severabitity. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect' SECTION 4, - Effective Date. This ordinance shall take effect and be in force 30 days from and after its passage, as provided by law. 3 Comprehensive Plan Amendment to the Capital Facilities Element for Park Proiect List and Impact Fee Study DANA RALPH, MAYO March 2,2O2L Date Approved ATTEST: March .202L KIMBERLEY KOMOTO, CITY CLERK Date Adopted March 5. 2021 Date Published APPROVED AS TO ZPATRI , CITY ATTORNEY 4 Comprehensive Plan Amendment to the Capital Facilities Element for Park Project List and Impact Fee Study EXHIBIT AParks and Recreation Project List 2021-2026 Capital Facilities ElementLOSRecreational Value87.5$$ 4,620,000 $ ,8,449,669 48.9 ngs 1$ 11,221,000 $ 8,516,000 $ 6,263,000and Willis GreenwaysCampus Park lmprovementsClark Lake Park Development 240thDowntown Park MasterplanDowntown Park Phase 1 lmprovementsDowntown Place-Making KhersonEast Hill Operations Feasibility StudyHill Operations lmprovementsPark RenovationCreek RenovationLandscape RenovationHogan Park at RR Phase 2Huse/Panther Lake Community ParkKent Memorial Park RenovationKVLT - Old Fishing Hole lmprovementsKVLT - Boeing RockKVLT - Phase 2T - RiverviewFenwick Phase 2 lmprovementsHeights RenovationMasierplansMill Creek Canyon RevitalizationMill Creek Earthworks RenovationMonill Meadows Phase 2NPRP - Chestnut RidgeSalt Air VistaScenic Hill Park RenovationLifecycleOrchard Park lmprovementsParks and Open Space PlanParks Land AcquisitionSpringwood Park RenovationSun Meadows300,000 $ 564,647 $187,000331,785276,4881,282,000564,647s9,85341 5,580290,86533,000 169,3941,859,000 2,823,233 1,105,9s,1338.5o5.522$$50,000624,000'1,000,00071,00055,298165,893'1,105,95155,2981,105,951552,975387,083552,975294,510235,6081 17,804235,608200,267294,510294,510176,70658,902s81,081232,432s8'1,081116,216581,081116,21658,1081,1 51,899460,759287,975460,75957,5951,149,254574,627287,313574,627689,552574,627344,776$ 864,647518,7853,453,232235,6081,035,3861,846,64759,853706,445350,237816,689202,394287,313862,6025,788,184805,768886,6461,310,2622,105,951365,510753,682286,3671,970,5994,2B,5,4721,100,000367,323635,323522,5983,438,300459,966282,3233,925,6852,762,293137,910225,85956,465564,647169,394282,323282,323135,515564,647282,323225,8s91,129,293$00.92.30.60.8t.o7U6.3302417.751710.258.515.516414.51.5b4.619.7002.4001.23.6501717.7510.77.258.5011.412.72.90218.303.250.44.804.40012.40.343326.2513300,00081,0001,1 00,00085,000353,0001,178,042 1,162,162 1,151,899589,021 581,081575,9491 15,1904.13.31.12.11.203.250.64.20.62111 .58.251o1?4J3.54b11.54.51042I1E22,263,0001,633,000276,488 294,510 290,541 287,975 287,3131 37,9101.5Potential Potential RV AddedTotal Current RV RV Gained LOS by Project2026202520242023202220212020ParUProjectUrbanNeighborhoodPassive/NaturalUrbanUrbanUrbanNeighborhoodNeighborhoodPockeiNeighborhoodGatewaySpecial UseUndevelopedSpecial UseCommunitySpecial UseTrailUndevelopedPassive/NaturalNeighbofioodUndevelopedCommunityCommunityNeighborhoodNeighborhoodNeighborhoodNeighborhoodNeighborhoodhborhoodClassification. Quantified by acreage City of Kent PARK IMPACT FEE STUDY EXHIBIT B Draft Report January 2021 Washington 7525 166th Avenue NE, Ste. D215 Redmond, WA 98052 425.867j802 Oregon 5335 Meadows Road, Ste 330 Lake Oswego, 0R 97035 503.841.6543 Colotado PO Box 19114 Boulder, CO 80301 9998 719.284.9168 www.fcsgroup.com This entire report is made ofreadily recyclable materials, including lhe bronze wire binding and the front and back cove( which are made from post-consumer recycled plastic boltles' *. FCSG ROI.]P d Solutions-Orien ted Consuldng City of Kent January 2021 Park lmpact Fee Study Page ii TngLE OF CONTENTS Table of Contents Section L lntroduction....,........ Section ll. lmpact Fee Legal Overview.... Section lll. Technical Analysis llt.A. Growth lll.B. Future Facilities Component.......... lll.C. lmpact Fee Cost Basis.... lll.D. Calculated lmPact Fee... Section lV. 1mp|ementati0n.,..................... lV.A. FundingPlan............ lV.B, lndexing....... .il .1 .2 .4 .4 ,7 l0 t0 {:} FCS GITOUP City of Kent January 2021 Park lmpact Fee Study Page 1 Section l. lNrRoDUcTloN The City of Kent, Washington (City), is a growing city with increasing demands for park facilities. One of the potentialrevenue sources to fund these increasing demands is impact fees. These fees help the City to recover the costs of providing services to growth in an equitable manner. The City does not currently impose impact fees for its park facilities. Thus, in 2020,the City contracted with FCS GROUP to perform a park impact fee study that would calculate the maximum defensible park impact fee in accordance with Washington state law. Consistent with these objectives, this study included the following key elements: o Overview of Washington Laws and Methodology Alternatives. We worked with City staff to examine previous impact fee methodologies and develop alternative approaches in compliance with Washington law. . Develop Policy Framework. We worked with City staff to identify, analyze, and agree on key assumptions and policy issues. a Technical Analysis. In this step, we worked with City staff to resolve technical issues, isolate the recoverable portion of existing and planned facilities costs, and calculate fee alternatives. The most important technical consideration involves the inclusion of planned capacity-increasing improvements and their unique relationship to growth' a Documentation and Presentation. In this step, we presented preliminary findings to the City Council and summarized findings and recommendations in this report. ri) FCS ( ; l{( ) Ll t) City of Kent January 2021 Park lmpact Fee Study page 2 Section ll. lupnCr Frr LrOnL OVERVIEW Impact fees are enabled by state statutes, authorized by local ordinance, and constrained by the United States Constitution. They allow cities to recover some of the cost of expanding public facilities necessitated by growth. These fees allow "growth to pay for growth" in a fair and equitable manner. Impact fees have a specific definition and associated constraints in the state of Washington. Impact fees are allowed under RCW 82.02.050 through 82.02.110 and are permitted for: o Public streets and roads o Publicly owned parks, open space, and recreation facilities o School facilities o Fire protection facilities The statute provides specific guidance on the permissibte methodology for calculating impact fees. This guidance can be broken down into three major categories: 1. Eligibitity Requirements. RCW 52.02.050(3) states that impact fees: a. Shall only be imposed for system improvements that are reasonably related to the new develoPment; b. Shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the new development; and; c. Shall only be used for system improvements that will reasonably benefit the new development. These requirements, which exist to protect developers, ensure that impact fees are based on- and spent for-capacity that will directly or indirectly serve the development' That is why careful scrutiny is given to the included project list. Moreover, the impact fee that a developer pays must represent that particular development's fair share of required capacity' That is why developments pay a unique fee based on land use' Additionally, RCW 82.02.050(5) states that "lmpact fees may be collected and spent only for the public facilities . . . which are addressed by a capital facilities plan element of a comprehensive land use plan." This means that if a project is not listed in the adopted capital facilities plan element, then it is not eligible to be included in impact fee calculations' 2. Future Facilities Component. RCW 82.02.060(1) outlines the future facilities portion of impact fee calculations, stating that the calculation must consider: a. The cost of public facilities necessitated by new development; b. An adjustment to the cost of the public facilities for past or future payments made or reasonably anticipated to be made by new development to pay for particular system improvements in the form of user fees, debt service payments, taxes, or other payments earmarked for or pro-ratable to the particular system improvement; c. The availability of other means of funding public facility improvements; .{> rcs {;t{{}LJP City of Kent January 2021 Park lmpact Fee StudY Page 3 d. The cost of existing public facilities improvements; and e. The methods by which public facilities improvements were financed' This means that adjustments to the impact fee cost basis must be made for the amount of outstanding debt that was or will be used to pay for capital facility improvements, as well as other methods of funding public facilities improvements. 3. Customer Base. The costs determined to be eligible must be proportionately allocated across the projected customer base. .:ilFCS GROUP City of Kent January 2021 Park lmpact Fee Study Page 4 Section III. TTCHNICAL ANALYSIS Eligible Portion of Capacity lncreasing Projects This section provides the detailed calculations of the maximum defensible parks impact fee The eligible portion of capacity increasing projects is the cost of future projects that will serve growth. Some projects are intended to only serve growth, some projects do not serve to increase the capacity of the City's park system, and some serve the City's current and future populations' The following section will detail how the growth eligibility percentage was calculated for each future project. The growth in the user base is the anticipated growth in the City's population. However, as residents are notthe only users of the City's park system, employees of businesses within will be included as well, at a separate rate that reflects the parks demand characteristics of commercial developments. The total eligible portion of capacity increasing projects divided by the growth in the user base results in the park impact fee. Each of these components is examined in further detail below' III.A. GROWTH Calculation of growth begins with defining the units by which current and future demand will be measured. Using the best available data, FCS GROUP quantified the current level of demand and estimated a future level of demand. The difference between the current level and the future level is the growth in demand that serves as the denominator in the impact fee calculations. lll.A.l . Unit of Meosurement A good unit of measurement allows the City to quantify the incremental demand of one new development. A great unit of measurement allows the City to distinguish different levels of demand added by different kinds of development' lll.A.l.o Options For park impact fees, demand that can be attributed to individual developments is usually measured by the number of people who will occupy a development. For residential developments, the number of occupants means the number of residents. FCS GROUP uses data from the U. S. Census Bureau to estimate the number of residents for different kinds of dwelling units. For non-residential Park lmpact Fee Growth in User Base {i} FCS C,ROUP City of Kent January 2021 Park lmpact Fee StudY page 5 developments, the number of occupants means the number of employees. We use industry data to estimate the number of employees per square foot for different kinds of non-residential developments. However, employees and residents do not have the same amount of time available to utilize the City's park system, so a conversion to residential equivalents must be made. When an agency chooses to impose a parks impact fee on both residential and non-residential developments, the demand of one additional resident must be carefully distinguished from the demand of one additional employee. This is usually accomplished by the calculation of a residential equivalent. One resident is one residential equivalent, and one employee is typically less than one residential equivalent, as they have less available time to utilize parks and facilities. lll.A.l.b Recommendotion The City finds that non-residential developments are a significant source of demand for parks facilities. We therefore recommend that the City charge parks impact fees for both non-residential and residential development. Ul.A.2. Residentiol Equivolence To charge parks impact fees to both residential and non-residential developments, we must estimate both (1) how much availability non-residential occupants (i.e., employees) have to use parks facilities and (2) how that avaitability differs from residential occupants (i.e., residents)' The calculation begins with the most recent data for both population and employment in Kent. As shown below, in 2017 (the most recent year for which both population and employment data were available), 127,100 residents live in Kent, and 72,814 employees work in Kent. Of these,9,445 people both live and work in Kent, as shown in Exhibit 1. Exhibit I Residents and Employees in Kent (2017) Source; WA OFM Population Sfafrsfics, US Census Bureau: OnTheMap Application Next, we estimate the number of hours per week that each category of person would be available to use the parks facilities in Kent. The two tables below show FCS GROUP's estimate of maximum time available for use. It is not an estimate of actual use. Working inside Kent Working oubide Kent Not lrorking 9,445 63,369 72,814 48,772 68,883 Total 127,100 Total Living lnside Kent Living Outside Kent .:t rcs (;l{o Lil' 72 72 112Not rking inside Kent oubide Kent Hours per Week of Park Availability per Person, Residential Demand Living lnside Kent Living 0utside Kent City of Kent January 2021 Park lmpact Fee StudY Page 6 Exhibit 2 Available Hours by C Source: FCS GROUP Source; FCS GROUP When the hours of availability above are multiplied by the population and employee counts presented earlier, we are able to determine the relative parks demand of residents and employees. As shown in Exhibit 3, the parks demand of one employee is equivalent to the parks demand of 0.213 resident' Another way of understanding this is that the parks demand of 4.68 employees is equivalent to the parks demand of one resident. Exhibit 3 Total Available Hours bY Class Source; Previous tables lll.A.3. Growth in Demond The current (2020) demand for parks facilities is 146,567 residential equivalents. That number is the sum of 130,500 residents (based on the Washington State Office of Financial Management's official state population projections), and 16,067 residential equivalents fot 75,257 employees' The number of employees is based on the 2017 number of employees, inflatedto2020 based on the City's historical growth. During the forecast period from 2020 to 2026, the residential population is expected to grow by 8,903 residents to a total of 139,403 residents. Population growth was forecast at l.l I percent Working inside Kent Working oubide Kent 2020 Not uorki Hours per Week of Park Availability per Person, Non' Residential Demand Living lnside Kent Living 0utside Kent Working inside Kent Working oubide Kent 680,040 3,511,584 7,714,896 2,136,320 3,51 1,584 1,456,280 7 714,896Notvrp '11 20.00 11,520 93.68 Hours em Total Hours per resident Residential uivalent 0.213 Total Hours per Week of Park Availability, 2017 Residential Hours Non- Residential Total Hours 'li> rcs GROLIP City of Kent January 2021 Park lmpact Fee StudY page 7 annually, and growth in employees forecast at l.l 1 percent annually (based on the City's historical growth rate from 2011-20). As seen in Exhibit 4, the existing customer base will grow by 9,999 residential equivalents to a total of 156,566 residential equivalents. Therefore, 9,999 residential equivalents will be the denominator for the impact fee calculations later in this report. Exhibit 4 Growth in Residential Equivalents Source; Previous tables Calculated Growth 6.39% By dividing the 9,999 residential equivalents in growth by the total projected residential equivalents in 2026, we determine that 6.39 percent of the 2026 residential equivalents is attributable to growth. This is the growth eligibility percentage, which is a proportion that will be used to quantify the impact fee eligibility of selected projects (known as "proportionate benefit projects") later in the analysis. III.B. FUTURE FACILITIES COMPONENT The future facilities component is the eligible cost of planned projects per unit of growth that such projects will serve. Since growth (denominator) has already been calculated above, we will focus here on the future cost component cost basis (numerator). lll.B.l . Eligibility A project's eligible cost is the product of its total cost and its eligibility percentage. The eligibility percentage represents the portion ofthe project that creates capacity for future users. For park impact fees, eligibility is determined by a level-of-service analysis that quantifies the park facilities that are needed for growth (and are therefore eligible to be included in an improvement fee cost basis). lll.B.l.o RecreotionolVolue The City uses a unique level of service metric called recreational value. Using this approach, each park is graded based on the number of assets, condition of assets, and type of assets that it contains. This allows each park to be assigned a recreational value that systematically takes into account multiple features of the park system. This differs from the traditional level of service metric (acres per 1,000 residents), which does not account for the quality or condition of parks facilities' Determining eligibility based on the current level of service means that only those project costs that will allow the City to maintain its current level of service at the end of the planning period (2026, in this case) are considered eligible. For example, the City's current inventory of community parks is 43 recreational value points. Based on the current population, the current level of service for community parks is 0.33 recreational value points per 1,000 totalresidentialequivalents. To maintain this level Population Em ployees Residential 127,100 72,814 15,546 130,500 75,257 139,403 80,391 17,163 8,903 5,1 34 1,096uivalent Em Total Residential u ivalents 156,566 I,l 1 Growth from 2026 20201o202620172020 .:ir pcs GI{.0Lil) City of Kent January 2021 Park lmpact Fee Study page B of service in2026,the City will need an additional2.gl reqeationalvalue points in its communtty parks. However, based on the planned projects listed later in this report, the City intends to add 17.00 recreational value points in community parks. Because the City plans on adding more than the minimum amount of recreational value points, only some of the costs of these projects are eligible. There are two approaches to calculating this eligibility, the current level of service approach and the future level of service approacft. FCS GROUP believes both of these approaches to be equally defensible. The current level of service is based on the recreational value per residential equivalent now. For community parks, this value is 17.13 percent (2.91 117.00). Only the first 2.91 recreational value points are eligible to be reimbursed in the impact fee, because the remainder are enhancing the level of service. Thefuture level of service approacft is backwards looking instead. Ln2026, the City plans to have 60.00 recreational value points in its community parks (0.43 recreationalvalue points per 1,000 total residential equivalents). By projecting the future level of service back to present, we can calculate that the minimum 2020 recreational value points at the future level of service is 55.86, rather than the 43.00 that actually exist. Using this metric, 4.14 (60.00 - 55.86) recreational value points are eligible to be included, because the first 12.86 (55.86-43.00) recreational value points serve to correct the deficiency. This results in an eligibility percentage of 22.42 percent. The full eligibility calculations for each park type are shown in Exhibit 5. Exhibit 5 Expansion EligibilitY As shown in Exhibit 5, eligibility percentages range dramatically across park categories. However, the future level of service approach results in equal or higher eligibility percentages for every park category, so it will be used throughout the rest of the analysis. lll.B.2. Lond Acquisition There is one project that does not use the recreational value metric, Parks Land Acquisition. The City plans to add about 20 acres to the park system over the planning period. As the City currently has 871 acres in its system, Parks Land Acquisition is 100 percent eligible, following the same level of service calculations shown above. The list ofprojects assessed by acreage and recreational value is shown in Exhibit 6. LevelSeruiceCurrent 0.56 0.00 0.14 0.06 0.47 0,16 0.00 0.'11 0.1 3 0.43 73.51 0.56 18.58 7 .21 60.99 21.06 0.00 14.11 16.43 55.86 20.90/" 0.0070 31.6970 49.18Yo 48.95% 14.37V" 0.00% 10.13Yo 8.30% 22.420/" 0.04 1.08 0.46 3.86 0,85 0.00 0.38 0.28 2.91 15.50% 0.00% 27.03% 45.71o/o 45.470k 8.53% 0.000/o 4.00o/o 2.05% 17.130/0 Open Space Trail Pocket Spocial Use Urban Concept Passive/Natural undeveloped 55 'l '16 7 13 0 o 4 43 0 4 1 I 10 0 10 14 17 Total 199 88 13.58 1 2.06 20.92o1o New Quantity Needed Units per 1,000 Residents in 2026 Minimum 2020 QuantitYElisibilityCurrentAdded Quantity .:!r pcs Gl{oul, Parks Land Acquisition 4h and Willis Greenways Campus Park lmprovemenb Clark Lake Park Development 240ft Dor,rntoun Park Phase 1 lmprovemenb Dor,rntoun Place-M aking Kherson Easfidge Park Renovation Garrison Creek Renovalion Hogan Park atRR Phase 2 Huse/Panher Lake Community Park Kent Memorial Park Renovation KVLT - Old Fishing Hole lmprovemenb KVLT - Boeing Rock l(/LT - Phase 2 KVLT - Riverview Lake Fenniick Phase 2 lmprovemenb Linda Heighb Renovation Mill Creek Canyon Revitalization Mill Creek Earhr,rnrks Renovation Morrill Meador,rs Phase 2 NPRP - Cheshut Ridge NPRP - SaltAir Vista NPRP - Scenic Hill Park Renovation Park Orchard Park lmprovemenb Springr,rood Park Renovation Sun Meadous Urban Neighborhood Passive/Nafural Urban Urban Pocket Neighborhood Special Use Undeveloped Special Use Community Special Use Trail Undeveloped Passive/Nafural Neighborhood Undeveloped Community Community Neighborhood Neighborhood Neighborhood Neighborhood Neighborhood hborhood 100.00% 14.37T0 20.90T0 10,13o/o 14.37Yo 14.37Y0 49,18T0 20.90% 48.95% 8.30% 48.95Y0 22.42Vo 48.95% 31.69% 8.30% 10.13% 20,900/o 8.30% 22.42T0 22.420k 20.90Vo 20.90% 20.90Yo 20.90o/o 20.90Yo 20.90Vo 3,925,685 124,249 108,406 349,969 148,784 265,361 172,235 170,657 140,644 71,618 2,833,402 180,644 434,026 415,268 174,849 37,043 157,491 1 63,61 1 962,997 246,608 76,757 132,758 1 09,203 96,1 1 5 577,214 28,818 3,925,685 864,647 518,785 3,453,232 1,035,386 1,846,647 350,237 816,689 287,313 862,602 5,788,184 805,768 886,646 1,310,262 2,105,951 365,510 753,682 1,970,598 4,295,472 1 ,1 00,000 367,323 635,323 522,598 459,966 2,762,293 137 910 Gost $ 38,228,709 31.66% $1 2 By Catego ory ble CostTotal Cost Eligibility City of Kent January 2021 Park lmpact Fee Study page I Exhibit 6 Growth Benefit Projects As can be seen, of the $38.2 million in project costs, about $12.1 million is eligible to be included in the impact fee calculation. There is one other project list that needs to be included. lll.B.3. Proportionote Benefit Projects The second subset of the City's project list includes projects that will expand the capacity of the parks system in some way without physically adding new recreational value to the parks system. These projects are not subject to the eligibility calculations described above but are instead assumed to benefit both existing and future users proportionately. In addition, there are projects that will not expand the capacity of the parks system and are not eligible to be included in the impact fee cost basis. As shown in Exhibit 7, this project list has a total cost of $5.2 million' .:i> rcs GI{OLJP City of Kent January 2021 Park lmpact Fee Study page 10 Exhibit 7 Proportionate Benefit P ects For eligible proportionate benefit projects, the eligibility percentage is the proportion of total future demand (156,566 residential equivalents) that will arrive between 2020 and2026 (9,999 residential equivalents), or 6.39 percent. The total eligible cost basis of these projects is $51,367. III.C. IMPACT FEE COST BASIS By adding these two fee components together, a combined impact fee cost basis of $12.2 million can be calculated, as shown in Exhibit 8. Exhibit 8 Impact Fee Cost Basis ComParison III.D. CALCULATED IMPACT FEE This section combines the eligible costs from the two project lists and applies adjustments for fund balance and compliance costs. The result is a total impact fee per residential equivalent. Recall that there is a projected growth of 9,999 residential equivalents in the City over the next 6 years (Exhibit 4). By dividing the $12.2 million impact fee cost basis by the growth in residential equivalents, the impact fee per residential equivalent can be calculated, as shown in Exhibit 9' 639% $ 0.00% 0.00% 0.00% 6.39% 0.00% 6.39% 15,047 18,289 18,03'l Dountown Park M asterplan East Hill Operalions Feasibility Study East Hill Operations lm provemenb Gater,uy Landscape Renovation Masterplans Park Lifecycle Parks and Open Space Plan 235,608 59,853 706,445 202,394 286,367 3,438,300 282,323 $ Total $ 5,211,291 $ 51,367 Project Total Cost ibility Eligible Cost Eligible cosb by category: Proportionate Benefi t Projecb Gror,lffr Benefit Projecb (by Acreage) GrovMh Benefit Projecb (by Recreational Value) 51,367 3,925,685 8,178,726 $ Total eligible costs by cateogry $ 12,155,779 lmpact Fee Cost Basis .:lr rcs GtiluP City of Kent January 2021 Park lmpact Fee Study Page 1 1 Exhibit 9 Im act Fee per Residential uivalent Census data is then used to estimate the number of residents per dwelling unit and calculate impact fees for residential dwelling units. For non-residential development, we provide both an impact fee per employee and an estimate of the number of employees per 1,000 square feet of different types of non-residential development. lll.D.l . lmpoct Fee Schedule Using data from the U.S. Census Bureau's American Community Survey, we determined that the average single-family home in Kent has 2.700 residents, while the average multi-family dwelling unit has 2.016 residents. We previously determined that an employee is equivalent to 0.213 residents. By multiplying the $1 ,216 impact fee per residential equivalent by these numbers, the impact fee per dwelling unit and per employee can be calculated' Exhibit 10 Comparison of Calculated Impact Fees Source; American Community Survey and Previous Tables There is one further step to calculate the final impact fee schedule. As the number of employees at a commercial enterprise can fluctuate, the City plans to charge non-residential development based on square footage. Thus, the per employee fee must be converted to a sq. ft.-based fee, by dividing the per employee fee calculated above by the sq. ft. per employee. This is shown in Exhibit 11. Because different types of commercial development have different employment densities, impact fees for non- residential developments are distinguished by land use. Grovtth in Residential Equivalents Total Cost Basis 9,999 16ResidentiallmFee $ 12,155,779 $1 Calculated lmpact Fee Single Family Duelling Unit M ulti-Fam ily Duelling Unit 2.700 2.016 0.213 3,282 2,451 260 $ Per Em Equivalent Residential MultiplierLand Use Category lmpact Fee .:ir rcs GI{OLJP Single-Fam ily Residential Multitumily M anufacturing Wholesale, Transportation and Utilities Retail Finance, lnsurance, and Real Estate Services (not including food services) Governm enVEd ucation Restaurant 3,281.97 2,451.19 0.52 0.26 0.37 0.74 0.65 0.87 1.30 0.01 per Duelling Unit per Duelling Unit per Sq. Ft. per Sq. Ft, per Sq. Ft, per Sq. Ft. per Sq. Ft. per Sq. Ft. per Sq. Ft 000 700 350 400 300 200 nla$ I 20,000MineFt. Sq. Ft. per EmployeeParks lmpact Fee Schedule UnitFee City of Kent January 2021 Park lmpact Fee StudY page 12 Exhibit 11 Im Fee Schedule Source: Snohomlsh County Buildable Lands Report and Previous Tables lll.D.2. Comporison to Other Jurisdictions Exhibit 12 shows how the recommended parks impact fee compares with respect to selected cities and districts. As can be seen, the calculated impact fees are generally lower than most other Washington jurisdictions that levy park impact fees' Exhibit 12 Local Jurisdiction ComParison lssaquah Sammamish Kirkland Redmond Shoreline Puyallup Renton Covington 9,107 $ 6,739 5,533 4,738 4,090 4,017 3,946 3,922 3,500 3,282 2,859 2,379 5,591 $ 4,362 3,1 54 3,289 2,683 2,314 2,801 2,761 3,500 2,451 2,490 1,739 0.97 1.28 $ 0,87 burn 0.74 1.1B Kent (calculated) Tukwila Vancouver Single Family Residence Multi-FnsonParks lmpact Fee C Office Bldg. {per sq.ft. ":i> rcs (;ROUP City of Kent January 2021 Park lmpact Fee StudY page 13 Section lV. IUPLEMENTATIoN This section addresses practical aspects of implementing impact fees IV.A. FUNDING PLAN Even if the City implements the parks impact fees calculated previously, impact fee revenues will not be sufficient to fund the project list. Instead, they can only be expected to fund about2SYo ofthe project list. An additional $31.3 million will need to be raised from other, non-impact fee, sources. This is shown in Exhibit 13. Exhibit 13 Funding Plan IV.B. INDEXING The City already annually indexes its transportation impact fees to the to the Engineering News- Record Seattle Area Construction Cost Index (KMC 12.14.060 (C)). We recommend that the City continue this practice for park impact fees as well, as it provides an adjustment to the impact fee which at least partially responds to the cost basis over time. We also recommend that the City continue its practice of periodically updating its impact fees to ensure that they recover the full cost of growth's impacts on City facilities' Resources: Beginning fund balance lm pact Fee revenue Other Needed Revenue Total resources Project list (total cos$ Ending fund balance Total requiremenb 43,440,000 $ 43,440,000 $ $ $ 43 440,000 irements: 12,155,779 31,284,221 Funding Plan .:ir pcs GI{OLJI) C\Fz( STATE OF WASHINGTON, COUNTY OF KING } AFFIDAVIT OF PUBLICATION PUBLIC NOTICE Rudi Alcott, being first duly sworn on oath that he is the Vice President of Advertising for Sound Publishing, which publishes the Kent Reporter a weekly newspaper, which newspaper is a legal newspaper of general circulation and is now and has been for more than six months prior to the date of publication hereinafter referred to, published in the English language continuously as a weekly newspaper in King County, Washington. The Kent- Covington Reporter has been approved as a Legal Newspaper by order of the Superior Court of the State of Washington for King County. The notice in the exact form annexed was published in regular issues of the Kent- Covington Reporter (and not in supplement form) which was regularly distributed to its subscribers during the below stated period. The annexed notice, a: Public Notice #KENs2oB61 was published on March The full amount of the fee 5,202L charged for said foregoing publication is the sum of $ Rudi Alcott Vice President, Advertising Subscribed and sworn to me this 5s day of March, 2O2L . Tribbett,Public for the State of Washington, Residing in Washington $ e)(p g.flTARF PuBt-tc Classified Proof CITYOF KENT NOTICE OF ORDINANCES PASSED BY THE CITY COUNCIL The following are sum- maries of ordinances passed by the Kent City Council on March 2, 2021. ORDINANCE NO. 4393 -AN ORDINANCE ofthe City Council of lhe Cityof Kent, Washington, arnending the Kent Comprehensive Plan and its Capital Facilities Elem€nt to incorporate an updated Park Prqect List and lhe 2021 Parklmpact Fee Study (cPA-2021-1). This ordinanc6 shall take effect and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4394 - AN ORDINANCE ofthe Cig Council of lhe Cigof Kent, Washington, amending the K€nt Comprehensive Plan and its Capital Facilities Element to incorporate an updated Transporla-lion Proiect List andamending the Kent Comprehensive Plan to replace the content ollhe Transportation Ele- ment with the updated Transportalion Master Plan (CPA-2021-2). This ordinance shall take effect and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4396 -AN ORDINANCE ofthe Ci$ Council of the Cityof Kent,'\lVashington,amending section 3.28.050 of the Kent Cily Code establish a sland- alone six- acre square footage threshold for cal- Proofed by Jennifer Tribbett, 03/03/2021 1 1 : 13:06 am Page:2 Classified Proof culation of Outdoor Warehouse SPaoe square footage tax, ef- fectiv€ January 1, 2021. This ordinanoe shall take effeot and be in lorce five days from and after its publication as proviC- €d bv RCW 35A.11.090 and'RCW 35A.12.130; howovor, the revisions to KCC 3.28.050 regarding square footage tax on outdoor warehousing oP- eralions shall apply ret- roactively and be effec- tive January 1, 2021 . A copy of the compbte texl of eny ordinence will be mailod upon r€queat of the City Cl6rk. Kimberloy A. Komoto, Ciw Clo* Kkirnnto@KentWA.gw 253-856-5725 #920861 3t5121 Proofed by Jennifer Tribbett, 03/03/2021 l1:13:06 am Page:3