AGENDA PLANNING COMMISSION 6:00 PM - Wednesday, September 20, 2017 Council Chambers, 7th Floor, City Hall 1055 S. Grady Way

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1 AGENDA PLANNING COMMISSION 6:00 PM - Wednesday, September 20, 2017 Council Chambers, 7th Floor, City Hall 1055 S. Grady Way 1. CALL TO ORDER 2. ROLL CALL 3. CORRESPONDENCE RECEIVED 4. AUDIENCE COMMENT Those wishing to address the Planning Commission must complete a "Request to Speak" form located next to the agendas at the back of the room and return it to the Recording Secretary. Speakers will be called upon by the Chair. Each speaker is allowed three (3) minutes. 5. COMMISSIONER COMMENTS 6. ADMINISTRATOR'S REPORT 7. CITY CENTER COMMUNITY PLAN TEXT AMENDMENT PUBLIC HEARING 8. RENTON REGIONAL FIRE AUTHORITY FIRE IMPACT FEES BRIEFING a) Renton Regional Fire Authority Fire Impact Fees 9. LONG RANG PLANNING FALL WORK PROGRAM BRIEFING a) Group Homes b) Final Plat Authority c) Title IV Text Amendment Exemptions 10. SUPERVISED INJECTION FACILITIES BRIEFING a) Supervised Injection Facilities 11. COMMISSIONER COMMENTS 12. ADJOURNMENT Hearing assistance devices for use in the Council Chambers are available upon request. For more information please visit planningcommission.rentonwa.gov Page 1 of 122

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3 CITY OF RENTON Community and Economic Development Department Fire Impact Fees Staff: Angie Mathias Date: September 20, 2017 Applicant or Requestor: Renton Regional Fire Authority General Description: With the formation of the Renton Regional Fire Authority (RRFA), the City and the Fire Authority need to shift from the City collecting the fee directly to the City collecting the fee on behalf of the Fire Authority (similar to the school impact fees). The Fire Authority has adopted a Capital Facilities Plan, which will serve as the basis for the impact fee. Similar to the process followed by school districts, the Fire Authority has submitted the Capital Facilities Plan to the Council and requested that the City collect the fire impact fee on their behalf. The Code section regarding impact fees needs to be amended to facilitate this change in the administration of the fire impact fee. Additionally, the City needs to adopt the RRFA s Capital Facilities Plan into the Capital Facilities element of the Renton Comprehensive Plan. Finally, the City needs to decide on approval or denial of the RRFA s request to update the fire impact fee rates. List of Exhibits Attachment A Renton Regional Fire Authority Capital Facilities Plan Attachment B Renton Regional Fire Authority Fire Impact Fee Rate Study Background New growth and development create additional demand and need for public facilities. RCW authorizes cities to charge impact fees so that the new growth and development contribute a proportionate share toward the costs of new infrastructure (parks, roads, fire stations and associated equipment, as well as, school facilities). Impact fees are an important financial tool that helps keep infrastructure in pace with new development, while not compounding deficiencies and reducing overall levels of service. They also help ensure that current residents and businesses don t assume the cost burden associated with maintaining existing level of services standards as new growth occurs. Impact fees are paid one time by developers of new construction projects and are used for improvements related to parks, transportation, fire protection, and schools. The fees can only be expended for physical improvements (park land and improvements, streets and sidewalks, fire stations and trucks, and school facility land and improvements), not administrative, operating, or maintenance costs. Page 1 of 4 Page 3 of 122

4 The City currently collects impact fees for transportation, parks, and fire, as well as, on behalf of the Renton, Issaquah, and Kent school districts. However, because the newly formed RRFA is a special purpose district and no longer a department within the City, code needs to be amended so that the City can collect the impact fee on behalf of the RRFA. As part of the process the RRFA has developed a Capital Facilities Plan (Attachment A) and a new Rate Study (Attachment B). The Capital Facilities Plan must be adopted by reference in the Capital Facilities Element of the City s Comprehensive Plan. With the new Rate Study, the fire impact fee should also be updated. A summary table of the current rate and the new proposed rate is below. Use Per Current Rate Proposed Rate Single Family Dwelling Unit $ $ Multi Family Dwelling Unit $ $ Hotel/Motel/Resort Square Foot $.94 $1.29 Medical Care Facility Square Foot $8.04 $3.92 Office Square Foot $.21 $.26 Medical/Dental Office Square Foot $1.26 $1.99 Retail Square Foot $.88 $1.25 Leisure Facilities Square Foot $1.98 $2.36 Restaurant/Lounge Square Foot $2.67 $5.92 Industrial/Manufacturing Square Foot $.12 $.15 Church/Non-Profit Square Foot $.36 $.56 Education Square Foot $.66 $.72 Special Public Facilities Square Foot $4.83 $4.48 Many jurisdictions in the area charge fire impact fees and now several collect them on behalf of a fire authority. Below is a chart of the rate charged for single family dwellings by some other jurisdictions. The RRFA s proposed new rate of $ for a single family dwelling is an increase $111.21, but the increase is not substantial and is well below many other jurisdictions. Their Capital Facilities Plan clearly identifies the requested rate is needed to ensure level of service standards are not diminished as growth occurs. City Per 2017 Rate Auburn Dwelling Unit $ Issaquah Dwelling Unit $ Enumclaw Dwelling Unit $2, Kent Dwelling Unit $1, Maple Valley Dwelling Unit $1, Mill Creek Dwelling Unit $ North Bend Dwelling Unit $ Redmond Dwelling Unit $ Tukwila Dwelling Unit $ RRFA Fire Impact Fees Page 2 of 4 September 20, 2017 Page 4 of 122

5 Staff Recommendation: Amend the impact fees code section to collect fire impact fees on behalf of the Renton Regional Fire Authority. Adopt the Fire Authority s Capital Facilities Plan into the Capital Facilities element of the City s Comprehensive Plan. Also, update the impact fee rates as requested by the Fire Authority. Impact Analysis Effect on rate of growth, development, and conversion of land as envisioned in the Plan The proposed amendment has no effect on the rate of growth, development, or conversion of land as envisioned in the Plan. Effect on the City s capacity to provide adequate public facilities The collection of impact fees helps to ensure the City has the capacity to provide adequate public facilities needed by new residents and businesses. Effect on the rate of population and employment growth The proposed amendment has no effect on the rate of population and employment growth. Whether Plan objectives are being met as specified or remain valid and desirable The amendments would work to further the Comprehensive Plan goals and policies. Amending Code to collect fire impact fees on behalf of the RRFA and adopting their requested updated fee amount helps the Authority to maintain service levels as growth occurs. This is supported by goal CF-D Ensure adequate long-term financial capacity exists to provide capital facilities and services needed to support expected growth, while maintaining adopted level of service standards. Adopting the RRFA s Capital Facilities Plan into the City s Capital Facilities Element is supported by the proposed new policy of the current text amendment to the Comprehensive Plan. That proposed policy is CF-6 Adopt by reference the most current Capital Facilities Plans for Renton Regional Fire Authority and adopt an implementing ordinance establishing a fire impact fee consistent with their Capital Facilities Plan, if the Plan demonstrates that the facilities are needed to accommodate projected growth. Effect on general land values or housing costs The proposed amendment has no effect on general land values or housing costs. Whether capital improvements or expenditures are being made or completed as expected There are no capital improvements or expenditures being made or completed in association with the proposed amendment. Consistency with GMA and Countywide Planning Policies The proposed amendments and collection of the requested fire impact fee work to further the RRFA Fire Impact Fees Page 3 of 4 September 20, 2017 Page 5 of 122

6 goals of the Growth Management Act and the CPP s. Specifically, one of GMA s goals is to Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. Additionally, CPP DP-3 is to Efficiently develop and use residential, commercial, and manufacturing land in the Urban Growth Area to create healthy and vibrant urban communities with a full range of urban services, and to protect the long-term viability of the Rural Area and Resource Lands. Promote the efficient use of land within the Urban Growth Area by using methods such as: Directing concentrations of housing and employment growth to designated centers; Encouraging compact development with a mix of compatible residential, commercial, and community activities; Maximizing the use of the existing capacity for housing and employment; and Coordinating plans for land use, transportation, capital facilities and services. Effect on critical areas and natural resource lands The proposed amendment has no effect on critical areas or natural resource lands. RRFA Fire Impact Fees Page 4 of 4 September 20, 2017 Page 6 of 122

7 Capital Facilities Plan Renton Regional Fire Authority Prepared by BERK Consulting Page 7 of 122

8 Table of Contents 1.0 Introduction Purpose Growth Management Act Requirements Definition of Capital Facilities Principles Guiding Capital Investments RRFA History and Governance Service Area Current Conditions and Projected Growth Current Inventory Building Inventory Apparatus Inventory Measuring Future Capital Facility Needs Level of Service Measures Performance Measurement Summary of Facility Needs, Apparatus Facility Needs Station Facility Needs Capital Facilities Revenue Analysis Overview Funding the capital facilities plan Assumptions dedicated capital revenues operating transfers Six-Year Cost and revenue comparison policy options and other funding sources Page i 8 of 122

9 Table of Exhibits Exhibit 1-1. RRFA Service Area and Station Locations Exhibit 1-2. RRFA Service Area Population and Projected Growth Exhibit 2-1. Fire Station Inventory Exhibit 2-2. Engines in RRFA Fleet Exhibit 2-3. Aid Units in RRFA Fleet Exhibit 2-4. Battalion Command Rigs in RRFA Fleet Exhibit 2-5. Dive Apparatus in RRFA Fleet Exhibit 2-6. Aerial (Ladder) Apparatus in RRFA Fleet Exhibit 2-7. Staff Vehicles in RRFA Fleet Exhibit 2-8. Miscellaneous Vehicles in RRFA Fleet Exhibit 3-1. Total Cost of Response to All Incidents by Land Use Category Exhibit 3-2. RRFA Response Time Level of Service Standards Exhibit 4-2. RRFA Capital Costs for Apparatus, Exhibit 4-3. RRFA Capital Facility Costs for Stations, Exhibit 5-1. Projected Remitted Fire Impact Fees , YOE$ Exhibit 5-2. Projected Dedicated Capital Revenues and Costs, YOE$ Exhibit 5-3. Projected Operating Transfers , YOE$ Exhibit 5-4. Total Projected Operating Transfers , YOE$ Exhibit 5-5. Estimated Capital Facilities Revenues and Costs, YOE$ Exhibit 5-6. Total Estimated Operating Transfers Revenues and Costs, YOE$ Error! Bookmark not defined Renton RFA CFP Introduction ii Page 9 of 122

10 1.0 Introduction PURPOSE The purpose of this Capital Facilities Plan (CFP) is to identify capital facility needs necessary for the Renton Regional Fire Authority (RRFA) to achieve and maintain adopted standards for levels of service concurrent with, or prior to, the impacts of expected development and population growth over the next six years, , and consistent with the land use and transportation elements of the City of Renton and King County comprehensive plans. This CFP also identifies sound fiscal policies and funding resources for implementation. CAPITAL PLANNING REQUIREMENTS The Washington State Growth Management Act (GMA) requires that a county s or city s CFP should consist of: a) an inventory of existing capital facilities owned by public entities; b) a forecast of the future needs for capital facilities; c) the proposed locations and capacities of expanded or new capital facilities; d) a six-year plan to finance capital facilities within projected funding capacities and clearly identified sources of public money for such purposes; and e) a requirement to reassess the land use element if probable funding falls short of existing needs. (RCW 36.70a.070(3)) GMA requires that all capital facilities have probable funding to pay for capital facility needs, and that jurisdictions have capital facilities in place and readily available when new development comes in or must be of sufficient capacity when the population grows. The City of Renton prepares a CFP element as part of its Comprehensive Plan. The City would incorporate the RRFA s six-year plan for fire and emergency services facilities into its Comprehensive Plan CFP. That allows the City to impose an impact fee. Impact fees may be collected and spent only for the public facilities addressed by a CFP element of a comprehensive land use plan adopted pursuant to GMA. (RCW (4)) Levels of service (LOS) are established in the CFP and represent quantifiable measures of capacity. They are minimum standards established by the RRFA to provide capital facilities and services to RRFA service area at a certain level of quality and within the financial capacity of the RRFA. As population grows, it is expected that demands for fire and emergency response service will also grow. Additional facilities will be necessary to meet this growing demand for service. LOS standards are influenced by local citizens, elected and appointed officials, national standards, mandates, and other considerations, such as available funding. Growth, LOS standards, and a funded capital improvement program are to be in balance. In the case where the LOS cannot be met by a service or facility, the jurisdiction could do one of the following: 1) add proposed facilities within funding resources, 2) reduce demand through demand management strategies, 3) lower LOS standards, 4) phase growth, or 5) change the land use plan. DEFINITION OF CAPITAL FACILITIES The CFP addresses public facilities necessary for providing fire and emergency response services. Capital facilities generally have a long useful life and include RRFA owned and/or operated buildings, land, equipment, and apparatus including engines and vehicles. Capital facilities planning does not cover regular operation and maintenance, but it does include major repair, rehabilitation, or reconstruction of facilities. RRFA financial management policies consider capital assets to be assets with values more than 1-1 Page 10 of 122

11 $2,000 and an estimated useful life of more than one year. PRINCIPLES GUIDING CAPITAL INVESTMENTS There are two main guiding elements behind capital facilities planning: fiscal policies and the GMA. RRFA plans to build on the capital planning executed by the City of Renton in its GMA Comprehensive Plan to improve levels of service in the RRFA boundary. The CFP supports RRFA in making strategic capital investments that support this effort. RRFA intends to use the CFP as: A tool for budgeting The basis for capital spending, giving a degree of assurance about how public money will be spent A useful guidance document for leadership and staff Toward that end, RRFA has developed and used the following guidelines to evaluate projects before adding them to the CFP: Growth-related project costs should be timed to match with available remitted Fire Impact Fee revenues. Project costs that are not growth-related should be timed to match with revenues available through operating transfers. Projects should be spaced to allow for progress on RRFA s other financial goals, especially its Operating Reserve. RRFA HISTORY AND GOVERNANCE RRFA is a special purpose district that provides fire and medical emergency response services within the City of Renton and King County Fire District (KCFD) 25. The RRFA was established on July 1, 2016, after voters residing within KCFD 25 and the City of Renton approved Proposition 1. This legislation formed the regional fire authority and authorized a fire benefit charge. Prior to the creation of the RRFA, service in the City of Renton was provided by the Renton Fire & Emergency Services (RF&ES). KCFD 25 and KCFD 40 both contracted for services with the city. Creation of the RRFA consolidated fire protection for the City of Renton and KCFD 25 under a single special local government authority. The contract for fire protection with KCFD 40 remained in place and transferred to RRFA. Accordingly, KCFD 40 is treated as part of the RRFA entity for the purposes of this CFP. SERVICE AREA RRFA is located at the south end of Lake Washington, between Seattle, Tacoma, and Bellevue. The RRFA total response area is square miles, including the City of Renton (23.61 square miles), KCFD 25 (3.65 square miles), and KCFD 40 (6.02 square miles). KCFD 25 is located east of the city, north of State Route 169. KCFD 40 is located east of the city, south of State Route 169. The RRFA service area is bordered by unincorporated areas of King County, as well as the cities of Kent, Tukwila, Newcastle, and Bellevue, with the City of Seattle just a few miles northwest. Exhibit 1-1 presents a map of the RRFA service area and station locations Renton RFA CFP Introduction 1-2 Page 11 of 122

12 Exhibit 1-1. RRFA Service Area and Station Locations Renton RFA CFP Introduction 1-3 Page 12 of 122

13 CURRENT CONDITIONS AND PROJECTED GROWTH Renton is the fourth largest city in King County with an estimated 2017 population of 102, The city includes residential neighborhoods, a strong industrial base, and a growing commercial/office sector. The city s downtown and northern manufacturing area were designated as a regional growth center by the Puget Sound Regional Council (PSRC) in The northern part of the regional growth center borders Lake Washington and emphasizes mixed use and regional employment, including the Boeing Company s Renton Plant and The Landing, a significant recent retail and residential development. The southern part of the regional growth center includes the downtown core and adjacent residential area. Downtown Renton has seen investment in recent years, including the Renton Pavilion Event Center and Piazza Park, the Renton Transit Center, and the IKEA Performing Arts Center. 2 The city also contains commercial corridors, multifamily nodes, and extensive single-family neighborhoods. KCFD 25 and KCFD 40 mostly contain residential areas located in King County outside of Renton city limits. The City of Renton Comprehensive Plan includes a target for housing growth between 2012 and 2031 of 11,706 units, or 616 new units per year. Population projections for Renton, KCFD 25, and KCFD 40 for the year 2023 are presented in Exhibit The City of Renton is expected to grow by 6,725 residents, 81% of the total population growth forecasted for the RRFA service area. Exhibit 1-2. RRFA Service Area Population and Projected Growth Description 2016 Population Projected Growth City of Renton 101,300 6,725 KCFD 25 7, KCFD 40 21,131 1,242 Total Service Area 130,278 8,312 City of Renton Share of Population Growth 81% Source: OFM, 2016; PSRC, 2017; BERK, Since the City of Renton Comprehensive Plan does not include population growth targets, the projections shown in Exhibit 1-2 are derived from a land use forecast produced by PSRC, the designated Metropolitan Planning Organization for the Central Puget Sound Area which consists of King, Kitsap, Pierce, and Snohomish Counties. PSRC is charged with regional growth management and transportation planning. The regional growth and transportation strategies currently established by PSRC are contained in Vision 2040, a planning document adopted by the PSRC in April of The forecast used in this 1 Source: Washington State Office of Financial Management (OFM), Source: PSRC, Renton Regional Growth Center Profile BERK analyzed land use forecast data from the Puget Sound Regional Council (PSRC) for the City of Renton and unincorporated areas inclusive of KCFD 25 and KCFD 40 to determine this projection for the six-year planning period. See Renton RFA CFP Introduction 1-4 Page 13 of 122

14 study, Land Use Vision, projects future growth for cities and smaller places. It reflects VISION 2040's Regional Growth Strategy, local policies, and each county s adopted growth targets. Planners with the City of Renton have reviewed the projected growth in Land Use Vision for consistency with both the Comprehensive Plan and local expectations for growth during the next six years. 2.0 Current Inventory This section provides a current inventory of capital facilities that are either owned or operated by RRFA including both stations and apparatus. BUILDING INVENTORY Exhibit 1-1 in Section 1 maps the locations and ownership of the six fire stations operated by RRFA as well as the site of the future Fire Station 15 in the Kennydale neighborhood of northern Renton. Exhibit 2-1 provides station locations and square footage operated by RRFA. Exhibit 2-1. Fire Station Inventory Station Address Building Square Footage Operated by RRFA Fire Station Mill Ave S, Renton, WA ,595 Fire Station Kirkland Ave NE, Renton, WA ,011 Fire Station th Ave SE, Renton, WA ,487 Fire Station 13 (auxiliary building) th Ave SE, Renton, WA ,596 Fire Station Lind Ave SW, Renton, WA ,659 Fire Station 14 Tower 1900 Lind Ave SW, Renton, WA ,658 Fire Station th Ave SE, Renton, WA ,685 Fire Station 17* Petrovitsky Rd SE, Renton, WA ,883 * Fire Station 17 is owned by Fire District 40 and used by Renton RFA through service contract. APPARATUS INVENTORY RRFA has 11 engines in its fleet, as listed in Exhibit 2-2. Two are owned by KCFD 40 and maintained by RRFA according to the service contract. Six engines are scheduled to be replaced before Inventories of RRFA Aid Units, Battalion Command Rigs, Dive Apparatus, Aerial (Ladder) Apparatus, Staff Vehicles, and Miscellaneous Vehicles are shown in Exhibits 2-3 through Renton RFA CFP Current Inventory 2-5 Page 14 of 122

15 Exhibit 2-2. Engines in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) 2513 Eng. 161 Station E-One Cyclone II 2017 $886,193 F074 Eng. 111 Station E-One Cyclone II 2019 $886,193 F071 Eng. 121 Station E-One Cyclone II 2018 $886,193 F073 Eng. 131 Station E-One Cyclone II 2017 $886, Eng. 16 Station E-One Cyclone II 2020 $886,193 F085 Eng. 14 Station E-One Cyclone II 2021 $886,193 F093 Eng. 12 Station E-One Quest 2024 $886,193 F115 Eng. 11 Station E-One Pumper Cyclone F114 Eng. 13 Station E-One Pumper Cyclone 2031 $886, $886,193 F432* Eng. 171 Station Spartan H&W Not currently planned* F437* Eng. 17 Station Spartan H&W Not currently planned* * F432 and F437 are owned by Fire District 40 and maintained by Renton RFA. Exhibit 2-3. Aid Units in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) F072 Aid 121 Station Navistar Northstar 2018 $393, Aid 16 Station Navistar Northstar 2018 $393,629 F431 Aid 171 Station Ford Braun not scheduled $393,629 F439 Aid 17 Station Navistar Northstar not scheduled $393,629 F111 A 12 Station International Northstar 2021 $393,629 F110 A 13 Station International Northstar 2020 $393, Renton RFA CFP Current Inventory 2-6 Page 15 of 122

16 Exhibit 2-4. Battalion Command Rigs in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) F438 Batt 131 Station Chevy Tahoe not scheduled N/A F119 Batt 12 Station Chevy Silverado 2024 $67,170 F109 Batt 13 Station Chevy Tahoe 2020 $67,170 Exhibit 2-5. Dive Apparatus in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) F068 Dive 12 Station Ford F-550 4X4 F103 Dive 12 Station Polaris Inflatable Boat F070 Dive 12 Station EZ Loader Boat Trailer 2018 $265, $76, $5,000 Exhibit 2-6. Aerial (Ladder) Apparatus in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) F075 Lad 111 Station E-One Cyclone II 2018 $1,463,812 F105 Lad 11 Station E-One Cyclone II 2025 $1,463, Renton RFA CFP Current Inventory 2-7 Page 16 of 122

17 Exhibit 2-7. Staff Vehicles in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) F077 Insp 133 City Hall 2001 Jeep Cherokee 2020 $26,240 F079 Staff Station Ford Crown Victoria 2017 $26,240 F429 Staff Station Ford Focus not scheduled $26,240 F082 Insp 131 Station Ford Expedition 2019 $26,240 F083 Insp 121 Station Chevy S10 Blazer 2020 $26,240 F086 City Hall 2006 Ford Escape 2020 $32,000 F087 Planning 12 City Hall 2008 Ford Escape 2019 $32,000 F089 Training Station Ford Escape 2019 $32,000 FO88 Training Sta Ford F250 4x $43,000 F095 Chief 12 City Hall 2009 Ford Escape Hyb F099 FM 13 Station Ford Escape Hyb F100 Chief 13 City Hall 2009 Ford Escape Hyb 2020 $58, $26, $48,672 F098 Log. Captain Station Ford Escape Hyb 2020 $32,000 F096 Insp. 132 Station Ford Escape Hyb F104 Rawson Station Ford Escape Hyb F117 Insp. 122 Station Ford CMAX Hybrid 2020 $26, $32, $26,240 F113 On Duty Fire Inv. Station Dodge Promaster 2035 $25,000 F116 Chief 11 City Hall 2015 Ford Explorer/P olice 2025 $48, Renton RFA CFP Current Inventory 2-8 Page 17 of 122

18 Exhibit 2-8. Miscellaneous Vehicles in RRFA Fleet Vehicle Number Call Sign Station Assignment Year Make Model Replacement Year Replacement Cost (2017$) F107 Rehab 1 Station Isuzu Hackney not scheduled N/A F066 Logistics Station GMC Savannah 2018 $33,000 F108 Explorer Station Chevy Astro Van not scheduled $29,000 F106 Foam Trailer Station Fabrique Foam Trailer not scheduled N/A F080 Utility 14 Station Ford Excursion 2017 $43,000 F436 Logistics 132 Station Chevy F-250 4X4 not scheduled $43,000 F092 Decon 17 Station Cargo- Mate Box Trailer not scheduled F091 Brush 17 Station Ford F-550 4X $150,000 F094 Club Car Trailer Station Eagle Trailer Vehicle Trailer 2020 $2,000 F101 Club Car Station Club Car 1550SE XRT not scheduled $18,000 F112 Training Training 2015 Ford F250 Crew 2025 $43,000 F120 Haz Mat 14 Station E-One M x2 Freightliner 2036 $648, Renton RFA CFP Current Inventory 2-9 Page 18 of 122

19 3.0 Measuring Future Capital Facility Needs GMA was enacted to provide local oversight of community growth with the intent for local governments such as counties, cities, and towns, to monitor and mitigate the impacts of growth. GMA Goal 1 promotes placing growth in urban areas where there are public facilities and services, while GMA Goal 12 promotes adequate facilities and services to support development: (1) Urban growth. Encourage development in urban areas where adequate public facilities and services exist or can be provided in an efficient manner. (12) Public facilities and services. Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. (RCW 36.70A.020) Concurrency for transportation infrastructure is mandated by GMA, and local agencies were given the authority to establish concurrency guidelines for other public needs such as water, sewer, and fire services: (1) Purpose. (a) The purpose of concurrency is to assure that those public facilities and services necessary to support development are adequate to serve that development at the time it is available for occupancy and use, without decreasing service levels below locally established minimum standards. (b) Concurrency describes the situation in which adequate facilities are available when the impacts of development occur, or within a specified time thereafter. Concurrency ensures consistency in land use approval and the development of adequate public facilities as plans are implemented, and it prevents development that is inconsistent with the public facilities necessary to support the development. (c) With respect to facilities other than transportation facilities counties and cities may fashion their own regulatory responses and are not limited to imposing moratoria on development during periods when concurrency is not maintained. (WAC ) LEVEL OF SERVICE MEASURES RRFA measures level of service (LOS) from two different perspectives. The first concerns the cost of facilities for incident response per unit of development. The second perspective concerns turnout and response times. Each is described below Cost of Facilities for Incident Response Per Unit of Development In 2017 RRFA conducted a Rate Study for Fire Impact Fees. That study presents a methodology for quantifying the need for fire and EMS stations and apparatus to serve new growth, for the purpose of collecting fire impact fees. The level of service standard is the 2015 ratio of apparatus and stations to fire and EMS incidents. More specifically, the rate study calculates the annualized facility value per incident as well as the number of incidents produced by different kinds of development. This determines the total cost of facilities for incident response needed per unit of development. This standard is used to measure systemwide capacity of facilities to support incident response throughout the RRFA service area Renton RFA CFP Measuring Future Capital Facility Needs 3-10 Page 19 of 122

20 Full documentation of the methodology is available in the rate study. A brief summary follows. For apparatus, including engines and other response vehicles, the ratio of apparatus to incidents as of 2015 was selected as an acceptable LOS standard. As growth occurs, more incidents will occur, and therefore more apparatus will be needed to maintain this standard. For stations, the rate study measures LOS using the ratio of station square footage to incidents. However, a deduction to the station square footage is made to account for unused beds that could accommodate additional fire and emergency response staff. It is anticipated that much of the growth in the RRFA service area will come in the form of infill development and increased density within the City of Renton. As this growth occurs, the RRFA intends to utilize excess bed capacity in current stations to increase its capacity for emergency response at existing stations. Exhibit 3-1 shows the cost of response per unit of development (dwelling unit or square foot), by land use category, as calculated in the RRFA Rate Study for Fire Impact Fees. These represent the total amount of facility investment the RRFA would need to make to maintain the current level of service as growth occurs within the service area. Exhibit 3-1. Total Cost of Response by Land Use Category Land Use Type Unit of Development Total Cost of Response to EMS, Fire, & Other Incidents, Per Unit of Development Single-Family Residential d.u. $ Multi-Family Residential d.u. $ Hotel/Motel/Resort sq. ft. $1.32 Medical Care Facility sq. ft. $4.03 Office sq. ft. $0.27 Medical/Dental Office sq. ft. $2.04 Retail sq. ft. $1.29 Leisure Facilities sq. ft. $2.42 Restaurant/Lounge sq. ft. $6.08 Industrial/Manufacturing sq. ft. $0.15 Church/Non-Profit sq. ft. $0.58 Education sq. ft. $0.73 Special Public Facilities sq. ft. $4.60 Source: RRFA Rate Study for Fire Impact Fees, Turnout and Response Time Standards While existing stations have excess capacity for demand response, traffic and geographic barriers Renton RFA CFP Measuring Future Capital Facility Needs 3-11 Page 20 of 122

21 currently present challenges to providing adequate response time in some areas. For this reason, RRFA also has turnout and response time standards for measuring performance across the entire service area and by individual station. In non-disaster situations, under current conditions of funding, staffing, and equipment, the RRFA aspires to respond to 90% of the emergency service calls within 7 minutes and 30 seconds from the time of dispatch, per City of Renton Resolution 3976, which was passed in October 2008 as an aspirational goal. This standard was developed under a former Chief of the Renton Fire & Emergency Services Department and inherited by RRFA. Though it does not have the force of law, as of July 1, 2016, the RRFA continues to follow Resolution 3976, which states, The Renton Fire & Emergency Services Department aspires, in a non-disaster situation and under current funding, staffing and equipment, to respond to 90% of the emergency service calls in the current service area within 7-1/2 minutes, throughout its entire response area. This response time standard is also documented in Renton Fire & Emergency Services Department Standard Operating Procedure Response Guideline Policy This policy also addresses turnout times, or the interval that begins when audible or visual notification is received by firefighters from the 911 center and ends at the beginning point of travel time. Policy 4101 states: Turnout time for emergency response shall be expedient and no longer than one hundred twenty seconds. These standards are summarized in Exhibit 3-2. Exhibit 3-2. RRFA Response Time Level of Service Standards Service Standard Response Time Meet Response Time Goal Turnout time for emergency response 2 minutes 100% First unit arrival 7 minutes and 30 seconds from the time of dispatch 90% Measuring response time helps RRFA to identify where additional capacity may be necessary. It also helps to identify where local conditions such as traffic or geographic barriers are presenting challenges to responding to incidents in a timely manner. PERFORMANCE MEASUREMENT RRFA published a yearly assessment of performance with regards to several metrics related to response time. For more information, see the Renton Regional Fire Authority Standards of Cover report Renton RFA CFP Measuring Future Capital Facility Needs 3-12 Page 21 of 122

22 4.0 Summary of Facility Needs, The following is a summary of capital facility needs for the period of 2018 to APPARATUS FACILITY NEEDS Over the next six years, RRFA will need to replace 29 apparatus and add three additional apparatus to its fleet. The inventory of apparatus in Section 2.2 provides year of replacement for all apparatus in the current fleet. Exhibit 4-1 summarizes scheduled apparatus replacements and total costs through the year It also includes the cost of expansions to the RRFA vehicle fleet needed to serve new growth. 4 Exhibit 4-1. RRFA Capital Costs for Apparatus, Project Description Quantity Average Unit Cost Total Cost (2017$) Percentage Related to City of Renton Growth Impact Fee Eligible Costs (2017$) Apparatus Replacements Aid Unit 4 $393,629 $1,574,516 0% $0 Battalion Command Vehicle 1 $67,170 $67,170 0% $0 Dive Apparatus 3 $115,333 $346,000 0% $0 Ladder Truck 1 $1,463,812 $1,463,812 0% $0 Staff Vehicle 14 $33,427 $467,975 0% $0 Engine 6 $886,193 $5,317,158 0% $0 Miscellaneous 4 $57,000 $228,000 0% $0 Apparatus Fleet Expansions Engine 2 $886,193 $1,772,386 59% $1,045,708 Aid Vehicle 1 $393,629 $393,629 59% $232,241 Apparatus Total $11,402,646 $1,277,949 Source: RRFA 2017; BERK STATION FACILITY NEEDS RRFA has three categories of station facility costs: debt servicing for existing stations, new station construction, and renovations to address operational needs. The costs related to these needs are summarized in Exhibit 4-2 and described in more detail below. 4 See the RRFA Rate Study for Fire Impact Fees (2017) for the methodology used to determine the proportion of growthrelated apparatus needs related to projected population growth inside the City of Renton Renton RFA CFP Summary of Facility Needs, Page 22 of 122

23 Exhibit 4-2. RRFA Capital Facility Costs for Stations, Project Description Total Cost (2017$) Percentage Related to City of Renton Growth Impact Fee Eligible Costs (2017$) Station Debt Servicing Fire Station 13 Debt Service Payments $1,902, % $1,902,960 New Station Development Fire Station 15* $6,375,000 50% $3,187,500 Station Renovations for Operational Needs All Stations: Alerting System Improvements $306,360 0% $0 All Stations: Bay Door Control Improvements $36,763 0% $0 Headquarters Renovation for Offices and Support for Four Added Administrative Staff Fire Station 11 Remodel for Operational Improvements Fire Station 12 Remodel for Operational Improvements Fire Station 13: Major remodel to improve turnout time Fire Station 13: Remodel for operational improvements Fire Station 14: Light Remodel for Low Acuity Unit and Added Staff Fire Station 14: Remodel for operational improvements Fire Station 16: Remodel for operational improvements $194,066 81% $157,194 $716,777 0% $0 $315,489 0% $0 $1,786,651 81% $1,447,187 $81, % $0 $170,336 81% $137,972 $287,272 0% $0 $210,120 0% $0 Total Station Costs $12,383,490 $6,832,813 * While 50% of Station 15 costs are growth related, 100% of the cost of the station will be funded City of Renton and these costs are not included in the RRFA funding plan. Source: RRFA 2017; TCA 2017; BERK Station 13 Debt Servicing The City of Renton is paying debt service for Fire Station 13, a station operated by RRFA. Between September 2017 and September 2023 these payments will total $1,902,960. The RRFA Rate Study for Fire Impact Fees presents a methodology for calculating the proportion of these costs that are related to serving new growth in the City of Renton Renton RFA CFP Summary of Facility Needs, Page 23 of 122

24 New Fire Station Needs RRFA has identified the need for a new fire station in the Kennydale neighborhood on the north side of Renton. This area has seen growth in recent years and presents significant response time challenges due to increased traffic and geographic barriers. Building a new station will help improve response times andincrease capacity to serve expected growth in the Port Quendall and South Lake Washington revitalization area as well as traffic-related incidents on I-405. RRFA s assessment of station needs to meet response time standards has determined that 50% of this new station will address existing deficiencies while 50% will expand capacity to serve future growth. Construction of Station 15 is scheduled to begin in The total estimated cost of this station is $6,375,000. While 50% of these costs are growth related, 100% of the cost of the station will be funded by City of Renton, and these costs are not included in the RRFA funding plan Capital Projects Associated with Station Operational Needs Exhibit 4-2 shows several renovation projects at existing stations necessary to address operational needs. Some of these projects address existing needs while others will enhance the ability of RRFA to address expected increases in service demands in several of its station areas. Appendix A provides a detailed description of these needs and planned facility improvements. 5.0 Capital Facilities Revenue Analysis OVERVIEW This CFP revenue analysis supports the financing for providing facilities and services, as required by RCW 36.70A.070(3)(d). Revenue estimates, using assumptions based on historical trends, are used to represent realistic expectations for revenue that may be available for capital funding. This revenue analysis looks at RRFA s capital facility revenues for those services provided by RRFA. Capital expenses have been historically provided by the City of Renton, and RRFA is still developing its policies for funding capital expenses. Through identifying future fiscal constraints and potential gap funding options, project prioritization can be incorporated into the capital planning process. This revenue analysis provides an approximate, and not exact, projection of future revenue sources. The numbers projected in this analysis are for planning purposes and cannot account for sensitivities such as local, state, and federal policy, economic trends, and other factors. This analysis may not align with RRFA s annual budget because it is based on multi-year projections of revenue, while the annual budget presents precise estimates of available revenue for spending in the coming fiscal year. FUNDING THE CAPITAL FACILITIES PLAN Estimated future revenues are projected for the Plan s time period. The revenue analysis is categorized according to: Dedicated Capital Revenues. Dedicated revenues are required to be used for certain types of capital spending, outlined by the law. The dedicated capital revenues for RRFA include Fire Impact Fees remitted to RRFA by the City of Renton. Operating Transfers. Operating transfers-in are those revenue sources that are transferred in from Renton RFA CFP Capital Facilities Revenue Analysis 5-15 Page 24 of 122

25 operating funds. Although these are not dedicated sources to be relied on for capital funding, RRFA s plans to make regular operating transfers-in to its reserves, including the Capital Facilities Reserve, as funds allow. These transfers are not dedicated to capital spending and could be used elsewhere. Potential Policy Options and Other Funding Sources. There are additional policy tools and sources available to fund capital projects ASSUMPTIONS The RRFA revenue analysis is based on the following assumptions: Analysis Boundary. The analysis includes the current RRFA boundary as shown in Exhibit 1-1. Growth. Housing unit growth targets are published in the City of Renton Comprehensive Plan, adopted in It assumes an average annual net gain of 611 housing units, which is similar to the rate of 598 units per year Renton experienced between 2010 and The historic ratio of residential to non-residential growth in Renton is assumed to remain constant. Property Tax. This analysis assumes that property tax revenues will increase at an annual rate of 1% going forward, with the assessed value of new construction growing according to historic trends at 16.2% annually. Property taxes from new construction make up 2-3% of total property tax revenues in the 6-year analysis period. Fire Benefit Charge. In 2017, RRFA expects to receive revenues from its Fire Benefit Charge in the amount of 88% of its total property tax revenues. Without historical trends to draw from, this analysis assumes Fire Benefit Charges continue to bring in 88% of total property tax revenues in each year of the analysis period. Fire Impact Fees. In 2017, the City of Renton will adopt a new fire impact fee schedule based on the 2017 Rate Study for Fire Impact Fees. This analysis assumes the City of Renton will remit fees collected in excess of its debt service payments on Fire Station 13. Projected residential impact fee revenues are based on residential growth projections described above. Nonresidential impact fee revenue is projected based on the average ratio of estimated nonresidential fire impact fee revenue to estimated residential fire impact fee revenue in the City of Renton between 2014 and Fire District 40 Service Contract. Renton RFA expects its service contract with Fire District 40 to decrease in 2018 as staffing and other factors adjust. This analysis assumes that from 2018 forward the service contract grows annually at its historical compound annual growth rate of 0.8%. EMS Levy. This analysis assumes revenues from the EMS Levy continue to grow annually at its historical compound annual growth rate of 4.48%. Permits and Fees. This analysis assumes revenues from miscellaneous permits and fees grow at an inflation rate of 3.0% Renton RFA CFP Capital Facilities Revenue Analysis 5-16 Page 25 of 122

26 DEDICATED CAPITAL REVENUES Fire Impact Fees The City of Renton has collected Fire Impact Fees since Exhibit 5-1 shows the amount of remitted Fire Impact Fees RRFA is projected to receive from the City of Renton in year of expenditure dollars (YOE$). The City of Renton s debt service payments are scheduled to increase substantially in 2021, and the amount of RRFA s estimated remitted Fire Impact Fees decreases from that point forward. Exhibit 5-1. Projected Remitted Fire Impact Fees , YOE$ Source: City of Renton, 2017; BERK, Remitted Fire Impact Fees must be used for growth-related Capital Facilities costs Renton RFA CFP Capital Facilities Revenue Analysis 5-17 Page 26 of 122

27 Exhibit 5-2 compares the total remitted Fire Impact Fees revenues RRFA is projected to receive over the planning period to YOE$ growth-related project costs, as presented in Exhibit 4-1 and Exhibit Project costs presented in YOE$ use a 3.0% inflation factor to account for changes in the purchasing power of the dollar. Project costs presented in YOE$ do not match project costs listed in Exhibits 5-1 and Renton RFA CFP Capital Facilities Revenue Analysis 5-18 Page 27 of 122

28 Exhibit 5-2. Projected Dedicated Capital Revenues and Costs, YOE$ Dedicated Revenues and Project Costs Total Revenues and Costs Fire Impact Fee Revenues (remitted) $3,100,000 Planned Growth-Related Project Costs $3,489,000 Estimated Dedicated Funding Surplus/(Deficit) $(389,000) Source: City of Renton, 2017; Renton RFA, 2017; TCA, 2017; BERK, OPERATING TRANSFERS RRFA plans to transfer-in operating funds to several reserves, some of which have fund balances from transfers-in by the City of Renton. RRFA has specific goals for the following reserves: Operating Reserve, Contingency Reserve, IT Reserve, and Small Tools & Equipment Reserve. RRFA also plans to use its Fleet Replacement Reserve, with a current balance of $3,040,450, to make scheduled fleet replacements over the planning period. RRFA s funding streams for these transfers-in and for Capital Facilities costs include revenues from its property tax, fire benefit charge, Fire District 40 service contract, EMS Levy, and miscellaneous permits and fees. Exhibit 5-3 shows RRFA s projected revenues available for transfers and Capital Facilities costs, calculated as YOE$ projected revenues less YOE$ expected expenses. 6 Exhibit 5-3. Projected Operating Transfers , YOE$ Source: Renton RFA, 2017; BERK, Exhibit 5-4 summarizes projected revenues available for operating transfers-in over the planning period. 6 Given Renton RFA s changing financial policies, and the unavailability of detailed historical financial information, BERK worked with Renton RFA to project expenditures according to current cost and cost growth assumptions Renton RFA CFP Capital Facilities Revenue Analysis 5-19 Page 28 of 122

29 Exhibit 5-4. Total Projected Operating Transfers , YOE$ Operating Transfers-In Estimated Available Revenues $19,472,000 Source: Renton RFA, 2017; BERK, SIX-YEAR COST AND REVENUE COMPARISON This six-year comparison looks at RRFA s total revenues and planned project costs for the six-year planning horizon of in order to understand the difference between future dedicated capital costs and potential future revenues. Capital costs are presented in YOE$ and include growth-related capital costs, planned project costs, and apparatus replacement costs. Exhibit 5-5 summarizes estimated Capital Facilities revenues and costs. 7 Exhibit 5-5. Estimated Capital Facilities Revenues and Costs, YOE$ Capital Facilities Revenues and Costs Growth-Related Capital Costs $3,489,000 Capital Replacement and Project Costs, not Growth-Related $11,396,000 Total Costs $14,885,000 Impact Fee Revenue $3,100,000 Operating Transfer Potential Revenue $19,472,000 Estimated Funding Surplus/(Deficit) $7,687,000 Source: TCA, 2017; Renton RFA, 2017; BERK, RRFA plans to use available operating revenues to fund other reserves in anticipation of changes to operating needs including: the expiration of its inter-local agreement with the City of Renton for office space, IT, and Fleet and Facilities Maintenance; and fleet and apparatus replacements. RRFA also plans to contribute annually to the Operating Reserve, with a goal of building a balance equal to 33% of its operating budget. Because financial policies are in flux regarding the schedule for those planned transfers, they are not included in the six-year cost and revenue comparison. POLICY OPTIONS AND OTHER FUNDING SOURCES Two additional funding source options are: 7 Project costs presented in YOE$ use a 3.0% inflation factor to account for changes in the purchasing power of the dollar. Project costs presented in YOE$ do not match project costs listed in Exhibit 5-1and Exhibit Renton RFA CFP Capital Facilities Revenue Analysis 5-20 Page 29 of 122

30 Limited Tax General Obligation (LTGO) Bonds: Financing bonds that do not require voter approval and are payable from the issuers general fund and other legally available revenue sources. Unlimited Tax General Obligation (UTGO) Bonds: Financing bonds that require voter approval and include the levying of an additional tax to repay them Renton RFA CFP Capital Facilities Revenue Analysis 5-21 Page 30 of 122

31 Rate Study for Fire Impact Fees Renton Regional Fire Authority Prepared by BERK Consulting An update to a 2011 study by Henderson, Young & Company Page 31 of 122

32 Table of Contents 1.0 Introduction Fire Impact Fee Rate Schedule Study Organization Statutory Basis Statutory Requirements for Impact Fees Compliance With Statutory Requirements for Impact Fees Fire Impact Fee Methodology Service Area Data Sources and Rounding Level of Service Capital Cost of Response Calculations Capital Projects Eligible for Impact Fees Impact Fee Rate Adjustments Table of Exhibits Exhibit 1-1. Fire Impact Fee Rate Schedule Exhibit 3-1. Renton Regional Fire Authority Service Area and Stations Exhibit 3-2. Emergency Response Bed Capacity by Station Exhibit 3-3. Renton RRA Apparatus Inventory and Emergency Responses Exhibit 3-4. Renton RFA Building Inventory and Building Square Feet per Incident Exhibit 3-5. Annualized Apparatus Cost Exhibit 3-6. Apparatus Costs per Response Exhibit 3-7. Annual Fire/Other and EMS Incidents Exhibit 3-8. Fire/Other Responses per Incident by Apparatus Type Exhibit 3-9. Apparatus Cost per Fire/Other Incident Exhibit Staff Vehicle and Other Equipment/Apparatus Cost per Incident Exhibit Annualized Station Cost per Square Foot Exhibit Station Cost per Incident Exhibit Fire/Other Incidents by Location Page i 32 of 122

33 Exhibit Fire/Other Incidents at Specific Land Uses Exhibit Fire/Other Incidents in Roads and Streets - Allocated to Land Uses Exhibit 3-16 Total Fire/Other Incidents by Land Use Exhibit Annual Fire/Other Incident Rate by Land Use Exhibit Engine Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Ladder Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Aid Vehicle Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Hazardous Materials Vehicle Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Brush Truck Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Inspector Vehicle Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Battalion Chief Vehicle Cost of Response to Fire/Other Incidents, per Unit of Development 3-39 Exhibit Dive Apparatus Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit Staff Vehicle Cost per Fire/Other Incident, per Unit of Development Exhibit Other Apparatus/Equipment Cost of Response to Fire/Other Incident, per Unit of Development Exhibit Fire Station Cost of Response to Fire/Other Incident, per Unit of Development Exhibit Example of Calculation of Total Cost of Response to Fire/Other Incidents for a Single- Family Residential Dwelling Unit Exhibit Total Capital Cost of Response to Fire/Other Incidents, per Unit of Development Exhibit EMS Response per Incident Rate by Apparatus Type Exhibit Apparatus Cost per EMS Incident Exhibit EMS Incidents by Location Exhibit EMS Incidents at Specific Land Uses Exhibit EMS Incidents in Roads and Streets - Allocated to Land Uses Exhibit Total EMS Incidents by Land Use Exhibit Annual EMS Incident Rate by Land Use Exhibit Engine Cost of Response to EMS Incidents, per Unit of Development Exhibit Ladder Cost of Response to EMS Incidents, per Unit of Development Exhibit Aid Vehicle Cost of Response to EMS Incidents, per Unit of Development Exhibit Hazardous Materials Vehicle Cost of Response to EMS Incidents, per Unit of Development Exhibit Inspector Vehicle Cost of Response to EMS Incidents, per Unit of Development Rate Study for Fire Impact Fees Introduction ii Page 33 of 122

34 Exhibit Battalion Chief Vehicle Cost of Response to EMS Incidents, per Unit of Development Exhibit Dive Apparatus Cost of Response to EMS Incidents, per Unit of Development Exhibit Staff Vehicle Cost per EMS Incident, per Unit of Development Exhibit Other Apparatus/Equipment Cost of Response to EMS Incident, per Unit of Development Exhibit Fire Station Cost of Response to EMS Incident, per Unit of Development Exhibit Example of Calculation of Total Cost of Response to EMS Incidents for a Single-Family Residential Dwelling Unit Exhibit Total Capital Cost of Response to EMS Incidents, per Unit of Development Exhibit Total Cost of Response to All Incidents by Land Use Category Exhibit RRFA Service Area Population and Projected Growth Exhibit Total Incidents Per Capita, Renton RFA Service Area Exhibit Projection of Annual Incidents Associated with City of Renton Growth, Exhibit Baseline Front-Line Apparatus Responses per Incident, Exhibit Projected Apparatus Need Associated with City of Renton Growth, Exhibit Impact Fee Eligible Costs Associated with Planned Additions to RRFA Fleet Exhibit Value of Station Capacity Needed for Growth-Related Response Staffing Increases Exhibit Impact Fee Eligible Costs Associated with Past System Improvements Exhibit Station Capital Costs Associated with Growth-Related Operational Needs Exhibit RRFA Capital Costs for Apparatus, Exhibit RRFA Capital Facility Costs for Stations, Exhibit Impact Fee Eligible Costs Compared to Projected Impact Fee Revenues, Exhibit Fire Impact Fee Rate Schedule Rate Study for Fire Impact Fees Introduction iii Page 34 of 122

35 1.0 Introduction The purpose of this study is to establish the rates for impact fees in the Renton Regional Fire Authority (RRFA) for fire protection facilities authorized by RCW (7). 1 The RRFA serves both the City of Renton and King County Fire Protection District 25. However only the City of Renton will be implementing impact fees based on this rate study. Impact fees are charges paid by new development to reimburse local governments for the capital cost of public facilities that are needed to serve new development and the people who occupy or use the new development. Throughout this study, the term developer is used as a shorthand expression to describe anyone who is obligated to pay impact fees, including builders, owners, or developers. Local governments charge impact fees for several reasons: to obtain revenue to pay for some of the cost of new public facilities; to implement a public policy that new development should pay a portion of the cost of facilities that it requires, and that existing development should not pay all of the cost of such facilities; and to assure that adequate public facilities will be constructed to serve new development. In 2011 the City of Renton completed an impact fee rate study that included fee calculations for fire protection facilities. 2 This RRFA fire impact fee rate study updates and replaces the 2011 rate study for fire protection facilities only. While the methodology used in this rate study is generally consistent with the methodology used in the 2011 study, this new study includes some refinements to reflect the RRFA s current approach to measuring level of service and its ability to serve growth-related service demands in the future, as described in Chapter 3. Much of the text in this rate study is adapted and updated from the 2011 rate study. FIRE IMPACT FEE RATE SCHEDULE Impact fees are paid by all types of new development within the City of Renton. 3 Impact fee rates for new development are based on, and vary according to, the type of land use. Additionally, impact fee rates reflect discounts based on available funds to pay for eligible capital projects. Exhibit 1-1 shows the fire impact fee rates adopted within the City of Renton. 1 Revised Code of Washington (RCW) is the state law of Washington State. 2 Henderson, Young & Company. (2011). Rate Study for Impact Fees, City of Renton. 3 The impact fee ordinance may specify exemptions for low-income housing and/or broad public purposes, but such exemptions must be paid for by public money, not other impact fees. The ordinance may specify if impact fees apply to changes in use, remodeling, etc. 1-1 Page 35 of 122

36 Exhibit 1-1. Fire Impact Fee Rate Schedule Land Use Unit Fire Impact Fee Single-Family Residential Dwelling Unit $ Multi-Family Residential Dwelling Unit $ Hotel/Motel/Resort Square Foot $1.29 Medical Care Facility Square Foot $3.92 Office Square Foot $.26 Medical/Dental Office Square Foot $1.99 Retail Square Foot $1.25 Leisure Facilities Square Foot $2.36 Restaurant/Lounge Square Foot $5.92 Industrial/Manufacturing Square Foot $.15 Church/Non-Profit Square Foot $.56 Education Square Foot $.72 Special Public Facilities Square Foot $4.48 STUDY ORGANIZATION This rate study includes three chapters. Chapter 1 provides an introduction and fire impact fee rate schedule. Chapter 2 summarizes the statutory requirements for impact fees in Washington State, and describes how the RRFA s impact fees comply with the statutory requirements. Chapter 3 includes the RRFA service area, level of service used for the purpose of calculating impact fee rates, and the methodology for calculating the capital costs of response by unit of development. It also provides a list of growth-related capital projects that are eligible for impact fees and final adjustments to the impact fee rates to account for eligible costs and future payments of other revenues Rate Study for Fire Impact Fees Introduction 1-2 Page 36 of 122

37 2.0 Statutory Basis This chapter summarizes the statutory requirements for impact fees in Washington State, and describes how the RRFA s impact fees comply with the statutory requirements. STATUTORY REQUIREMENTS FOR IMPACT FEES The Growth Management Act of 1990 (Chapter 17, Washington Laws, 1990, 1 st Ex. Sess.) authorizes local governments in Washington State to charge impact fees. RCW contain the provisions of the Growth Management Act that authorize and describe the requirements for impact fees. The following synopsis of the most significant requirements of the law includes citations to the Revised Code of Washington as an aid to readers who wish to review the exact language of the statutes. Types of Public Facilities Four types of public facilities can be the subject of impact fees: 1) public transportation and roads; 2) publicly owned parks, open space and recreation facilities; 3) school facilities; and 4) fire protection facilities. (RCW (7)) Types of Improvements Impact fees can be spent on system improvements (which are typically outside the development), as opposed to project improvements (which are typically provided by the developer on-site within the development). Impact fees can never be used to fund maintenance or operational needs. (RCW (2) and RCW (5) and (9)) Benefit to Development Impact fees must be limited to system improvements that are reasonably related to, and which will benefit new development. (RCW (4)(a) and (c)). Local governments must establish reasonable service areas (one area, or more than one, as determined to be reasonable by the local government), and local governments must develop impact fee rate categories for various land uses. (RCW (7)) Proportionate Share Capital improvement costs can be funded using impact fees to the extent that the improvements are reasonably related to the new development and reasonably benefit the new development. Costs assessed on a development cannot exceed its proportionate share of the costs of system improvements. The impact fee amount shall be based on a formula (or other method of calculating the fee) that determines the proportionate share. (RCW (4)(b) and RCW (1)) Reductions of Impact Fee Amounts Impact fees rates must be adjusted to account for other revenues that the development pays (if such payments are earmarked for or proratable to particular system improvements). (RCW (1)(c) and (2) and RCW (1)(b)) Impact fees may be credited for the value of dedicated land, improvements or construction provided by the developer (if such facilities are in the adopted CFP as 2-1 Page 37 of 122

38 system improvements eligible for impact fees and are required as a condition of development approval). (RCW (4)) Exemptions from Impact Fees Local governments have the discretion to provide exemptions from impact fees for low-income housing and other broad public purpose development, but all such exempt fees must be paid from public funds (other than impact fee accounts). (RCW (3)) Developer Options Developers who are liable for impact fees can submit data and or/analysis to demonstrate that the impacts of the proposed development are less than the impacts calculated in this rate study. (RCW (6)). Developers can pay impact fees under protest and appeal impact fee calculations. (RCW (4) and (5)). The developer can obtain a refund of the impact fees if the local government fails to expend or obligate the impact fee payments within 10 years, or terminates the impact fee requirement, or the developer does not proceed with the development (and creates no impacts). (RCW ) Capital Facilities Plans Impact fees must be expended on public facilities in a capital facilities plan (CFP) element or used to reimburse the government for the unused capacity of existing facilities. The CFP must conform to the Growth Management Act of 1990, and must identify existing deficiencies in facility capacity for current development, capacity of existing facilities available for new development, and additional facility capacity needed for new development. (RCW (4), RCW (8), and RCW (2)) New Versus Existing Facilities Impact fees can be charged for new public facilities (RCW (1)(a)) and for the unused capacity of existing public facilities (RCW (8)) subject to the proportionate share limitation described above. Accounting Requirements The local government must separate the impact fees from other monies, expend or obligate the money on CFP projects within 10 years, and prepare annual reports of collections and expenditures. (RCW (1)-(3)) COMPLIANCE WITH STATUTORY REQUIREMENTS FOR IMPACT FEES Many of the statutory requirements listed above are fulfilled in Chapter 3 of this study which presents the calculation of the fire impact fees. Some of the statutory requirements are fulfilled in other ways, as described below. Types of Public Facilities This study contains impact fees for fire protection facilities as authorized by statute. The RRFA both define fire protection facilities to include engines, vehicles, and equipment in addition to fire stations. The City of 2017 Rate Study for Fire Impact Fees Statutory Basis 2-2 Page 38 of 122

39 Renton uses these same definitions (RMC ). In general, local governments that are authorized to charge impact fees are responsible for specific public facilities for which they may charge such fees. The City of Renton is legally and financially responsible for the fire facilities it owns within its jurisdiction. However, the majority of fire facilities within the City of Renton have been transferred to the RRFA. A local government may charge impact fees for facilities that are owned or operated by government entities (RCW (7)). A city may charge impact fees for fire, and enter into an agreement with a regional fire authority (RFA) for the transfer, expenditure, and reporting of fire impact fees for the RFA. A city may only charge and use impact fees on RFA projects if it has an agreement with the RFA, and the city s CFP references the RFA CFP. Types of Improvements The impact fees in this study are based on system improvements that are described in Chapter 3. No project improvements are included in this study. The public facilities that can be paid for by impact fees are system improvements (which are typically outside the development), and designed to provide service to service areas within the community at large as provided in RCW (9)), as opposed to project improvements (which are typically provided by the developer on-site within the development or adjacent to the development), and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project as provided in RCW (5). The capital improvements costs contained in Chapter 3 comply with these requirements. Impact fee revenue can be used for the capital cost of public facilities. Impact fees cannot be used for operating or maintenance expenses. The cost of public facilities that can be paid for by impact fees include design studies, engineering, land surveys, land and right of way acquisition, engineering, permitting, financing, administrative expenses, construction, applicable mitigation costs, and capital equipment pertaining to capital improvements. Benefit to Development, Proportionate Share and Reductions of Fee Amounts The law imposes three tests of the benefit provided to development by impact fees: 1) proportionate share, 2) reasonably related to need, and 3) reasonably related to expenditure (RCW (4)). In addition, the law requires the designation of one or more service areas. (RCW (7)) Proportionate Share. First, the proportionate share requirement means that impact fees can be charged only for the portion of the cost of public facilities that is reasonably related to new development. In other words, impact fees cannot be charged to pay for the cost of reducing or eliminating deficiencies in existing facilities. Second, there are several important implications of the proportionate share requirement that are not specifically addressed in the law, but which follow directly from the law: Costs of facilities that will benefit new development and existing users must be apportioned between the two groups in determining the amount of the fee. This can be accomplished in either of two ways: (1) by allocating the total cost between new and existing users, or (2) calculating the cost per unit and applying the cost only to new development when calculating impact fees Rate Study for Fire Impact Fees Statutory Basis 2-3 Page 39 of 122

40 Impact fees that recover the costs of existing unused capacity should be based on the government's actual cost. Carrying costs may be added to reflect the government's actual or imputed interest expense. The third aspect of the proportionate share requirement is its relationship to the requirement to provide adjustments and credits to impact fees, where appropriate. These requirements ensure that the amount of the impact fee does not exceed the proportionate share. The adjustments requirement reduces the impact fee to account for past and future payments of other revenues (if such payments are earmarked for, or proratable to, the system improvements that are needed to serve new growth). The impact fees calculated in this study include an adjustment that accounts for any other revenue that is paid by new development and used by the City to pay for a portion of growth s proportionate share of costs. This adjustment is in response to the limitations in RCW (1)(b) and RCW (2). The credit requirement reduces impact fees by the value of dedicated land, improvements or construction provided by the developer (if such facilities are in the adopted CFP, identified as the projects for which impact fees are collected, and are required as a condition of development approval). The law does not prohibit a local government from establishing reasonable constraints on determining credits. For example, the location of dedicated land can be required to be acceptable to the local government. Reasonably Related to Need There are many ways to fulfill the requirement that impact fees be reasonably related to the development's need for public facilities, including personal use and use by others in the family or business enterprise (direct benefit), use by persons or organizations who provide goods or services to the fee-paying property or are customers or visitors at the fee-paying property (indirect benefit), and geographical proximity (presumed benefit). These measures of relatedness are implemented by the following techniques: Impact fees are charged to properties which need (i.e., benefit from) new public facilities. The RRFA provides fire protection facilities to serve all kinds of property throughout its service area, therefore impact fees have been calculated for all types of property. The relative needs of different types of growth are considered in establishing fee amounts (i.e., different impact values for different types of land use). For instance, this study analyzed fire/other and EMS incident and response data to determine rates for each type of land use. Feepayers can pay a smaller fee if they demonstrate that their development will have less impact than is presumed in the impact fee schedule calculation for their property classification. Such reduced needs must be permanent and enforceable (i.e., via land use restrictions). Reasonably Related to Expenditures Two provisions of Renton s impact fee ordinance comply with the requirement that expenditures be reasonably related to the development that paid the impact fee. First, the requirement that fee revenue must be earmarked for specific uses related to public facilities ensures that expenditures are on specific projects, the benefit of which has been demonstrated in determining the need for the 2017 Rate Study for Fire Impact Fees Statutory Basis 2-4 Page 40 of 122

41 projects and the portion of the cost of needed projects that are eligible for impact fees as described in this study. Second, impact fee revenue must be expended or obligated within 10 years, thus requiring the impact fees to be used to benefit to the feepayer and not held by the City. Service Areas for Impact Fees Impact fees in some jurisdictions are collected and expended within service areas that are smaller than the jurisdiction that is collecting the fees. Impact fees are not required to use multiple service areas unless such zones are necessary to establish the relationship between the fee and the development. Because of the compact size of the RRFA and the accessibility of its fire facilities to all property within the service area, the RRFA s fire systems serve the entire RRFA service area, therefore the impact fees are based on a single service area corresponding to the boundaries of the RRFA. Exemptions The City of Renton s impact fee ordinance addresses the subject of exemptions. Exemptions do not affect the impact fee rates calculated in this study because of the statutory requirement that any exempted impact fee must be paid from other public funds. As a result, there is no increase in impact fee rates to make up for the exemption because there is no net loss to the impact fee account as a result of the exemption. Developer Options A developer who is liable for impact fees has several options regarding impact fees. The developer can submit data and or/analysis to demonstrate that the impacts of the proposed development are less than the impacts calculated in this rate study. The developer can appeal the impact fee calculation by the RRFA. If the local government fails to expend the impact fee payments within 10 years of receipt of such payments, the developer can obtain a refund of the impact fees. The developer can also obtain a refund if the development does not proceed and no impacts are created. These provisions are addressed in the City s impact fee ordinance, and none of them affect the calculation of impact fee rates in this study. Capital Facilities Plan There are references in RCW to the capital facilities plan (CFP) as the basis for projects that are eligible for funding by impact fees. The RRFA published a CFP in August 2017 which fulfills the requirements of RCW et. seq. pertaining to a capital facilities plan. This CFP is referenced in the Capital Facilities Plan Element of the City of Renton s Comprehensive Plan. The requirement to identify existing deficiencies, capacity available for new development, and additional public facility capacity needed for new development is determined by analyzing levels of service for fire/other and emergency response. Chapters 3 provides this analysis. New Versus Existing Facilities, Accounting Requirements Impact fees must be spent on capital projects contained in an adopted capital facilities plan, or they can be used to reimburse the government for the unused capacity of existing facilities. Washington State GMA states that an impact fee ordinance [m]ay provide for the imposition of an impact fee for system improvement costs previously incurred by a county, city, or town to the extent that new growth and development will be served by the previously constructed improvements provided such fee shall not be 2017 Rate Study for Fire Impact Fees Statutory Basis 2-5 Page 41 of 122

42 imposed to make up for any system improvement deficiencies. (RCW (8)) The rate calculations in Chapter 3 affirm there are no existing deficiencies and accounts for excess station capacity systemwide for serving new growth. Because of this excess systemwide capacity, impact fees collected can be used to pay for the debt servicing of existing stations not to exceed the proportional share of existing station value that is available for serving additional growth. Impact fee payments that are not expended or obligated within 10 years must be refunded unless the City Council makes a written finding that an extraordinary and compelling reason exists to hold the fees for longer than 10 years. To verify these two requirements, impact fee revenues must be deposited into separate accounts of the government, and annual reports must describe impact fee revenue and expenditures. These requirements are addressed by Renton s impact fee ordinance, and are not factors in the impact fee calculations in this study 3.0 Fire Impact Fee Methodology This chapter describes the methodology used to calculate impact fee rates for fire protection facilities. It begins with a discussion of the service area considered for the rate study analysis. This is followed by a discussion of the level of service. Next is an inventory of fire protection facilities, which are defined to include stations, equipment, and apparatus (such as engines and other vehicles). Then a series of calculations are presented to document the methodology for determining the total facility costs per unit of development by land use type. SERVICE AREA As noted above, RRFA include both the City of Renton and King County Fire Protection District 25. It also provides service to King County Fire Protection District 40 under contract, as shown in Exhibit 3-1. RRFA provides services to these areas as one integrated system. All facilities needed to serve these areas are owned and/or operated by RRFA. Therefore, the analysis in this rate study considers facility costs per unit of development throughout the entire service area, inclusive of Fire District Rate Study for Fire Impact Fees Fire Impact Fee Methodology 3-6 Page 42 of 122

43 Exhibit 3-1. Renton Regional Fire Authority Service Area and Stations While this rate study considers incidents and facilities throughout the RRFA service area when calculating impact fee rates, the RRFA CFP identifies the percentage of capital facilities needs that are directly related to anticipated growth within the City of Renton only. This ensures that impact fees collected in the City of Renton are not used to pay for capital facility costs associated with growth expected in Fire 2017 Rate Study for Fire Impact Fees Fire Impact Fee Methodology 3-7 Page 43 of 122