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Planning Comm PKT 03-03-2004 ,Mar~l)J, 2004 " '7:00 p.m. ' <,', Gi~r~fFe~e~al Way ',~':::,i:, " ' , 'PLA~NING COMMISSION " '.'" City Hall Council Chambers AGENDA 1. CALL TO ORDER Commissioners John Caulfield. Chair Dini Due/os William Drake Grant Newport Tony Moore (Alternate #2) Lawson Bronson (Alternate #4) 2. ROLLCALL 3. APPROVAL OF MINUTES 4. AUDIENCE COMMENT 5. ADMINISTRATIVE REPORT 6. COMMISSION BUSINESS . STUDY SESSION Potential Annexation Area (P AA) Subarea Plan 7. ADDITIONAL BUSINESS 8. AUDIENCE COMMENT 9. ADJOURN Hope Elder, Vice-Chair Dave Osaki Marta Justus Foldi Christine Nelson (Alternate #1) Merle Pfeifer (Alternate #3) City Staff Kathy McClung, ens /)¡rector Margaret Clark, Semor Planner E. Tina Piety, Administrative Assistant 253-66/-4105 www.citvoffederalwav.com K:lPlanning Commissionl2004lAgenda 03-03-04.doc!Last printed 2/2512004 1:58 PM ~'. MEETING MINUTES Commissioners present: John Caulfield, Hope Elder, Dave Osaki, Dini Duclos, Grant Newport, and Bill Drake. Commissioners absent (excused): Marta Justus Foldi. Alternate Commissioners present: Lawson Bronson, Merle Pfeifer, and Tony Moore. Alternate Commissioners absent: Christine Nelson (excused). City Council Members present: Mayor Jeanne Burbidge and Deputy Mayor Dean McColgan. Staff present: Senior Planner Margaret Clark, Code Compliance Officer Martin Nordby, Assistant City Attorney Karen Jorgensen, and Administrative Assistant E. Tina Piety. Chair Caulfield called the meeting to order at 7:00 p.m. ApPROVAL OF MINUTES It was m/s/c (with one abstain) to adopt the November 19,2003, minutes as presented. AUDIENCE COMMENT None. AOMINISTRA TIVE REpORT None. COMMISSION BUSINESS PUBLIC HEARING - Oversized Vehicle Code Amendment Mr. Nordby delivered the staff report. He remarked that these amendments do not apply to recreational vehicles, which will be dealt with at a later date. It was noted that neighborhood covenants supercede the Federal Way City Code. He commented that per RCW 46.25.010, "Gross Vehicle Weight Rating" (GVWR) means the value specified by the manufacturer as the maximum loaded weight of a single or a combination or articulated vehicle, or the registered gross weight, where this value cannot be determined. The GVWR of a combination or articulated vehicle, commonly referred to as the "gross combined weight rating" or GCWR, is the GVWR ofthe power unit plus the GVWR of the towed unit or units. The meeting was opened to public testimony. Elbert Field - He commented that his concern isn't commercial vehicles, but irresponsible drivers. Some people need to be able to bring their commercial vehicle home because they are on-call. John Leskover - He has a backhoe on a SR 15 lot. He uses it for developing his property. He is concerned that under the proposed amendments, his backhoe would be restricted. It is listed as a commercial vehicle in the proposed definition in Exhibit C. He doesn't understand why it would K:lPlaMing Conunission\2003IMeeting Summary 12-IO-O3.doc .,' -, Planning Commission Minutes Page 2 December 10, 2003 be classified commercial since he is only using it on his property, and not for commercial purposes. He would like to see construction vehicles removed from the proposed definition for commercial vehicles. He noted that while the backhoe is not large it is very heavy, and it would not be suitable to park it in his driveway. Steve Dice - He is concerned with the livability of neighborhoods. He opposes the 12,000 GVWR limit, but would support the 10,000 GVWR. Sue Ellebrecht - She commented that a neighbor has a large commercial panel truck that they often park in their driveway. However, sometimes they park it in the street and that causes safety problems. She has come close to an accident because of maneuvering around the truck. Larger vehicles are a driving hazard. Scott Chase - He commented that at the last meeting staff showed pictures of vehicles and he saw many tow trucks that would fall under a 12,000 GVWR limit. This is unacceptable. He commented that a neighbor said he was unable to sleep due to the activity of a tow truck in their neighborhood. He opposes the 12,000 GVWR limit but would support a 10,000 GVWR limit. Mi/œ Bochantin - He opposes the 12,000 GVWR limit because it would allow tow trucks and they cause too much disruption. Bob Rawlins - He commented that he read the newspaper article on this issue and asked if the Commission had considered the effect these heavy vehicles have on the roads? If vehicles of 12,000 GVWR are allowed, what kind of damage might that do to the roads? Jean Atwell- She supports the 10,000 GVWR limit. She wants commercial vehicles out of neighborhoods. It is difficult to get by large vehicles with the narrow streets found in neighborhoods. Richard Fiegel - He is against the increase in weight. Commercial vehicles and residential areas do not mix. Lawson Bronson, Alternate Planning Commissioner - He commented that these amendments deal only with parking commercial vehicles on private property. The police regulate parking on the street. Marie Sciacqua - She lives next door to someone who brings their tow truck home and it causes numerous problems. She feels the traffic codes need to be changed as well, in order to effectively deal with commercial vehicles being parked in neighborhoods. Alison Wood - She owns a backhoe that she keeps in her backyard. She has not received any complaints from her neighbors. She fears she would have to get rid of her backhoe if these amendments are adopted. She asked what about City vehicles when employees take them home at night? Wally Aikala - He commented that a neighbor parks semi's in their neighborhood and he is concerned that is devaluing the neighborhood. Randy Bean - He supports the 10,000 GVWR limit, but opposes the 12,000 GVWR limit. He commented that he has worked at the Flying J Truck Stop and noted there is a clear transition to commercial at 12,000 GVWR. K:\Planning Commission\2003\Meeting Summary 12-10-03.docILast printed 2/2512004 11:16 AM Planning Commission Minutes' Page 3 December 10, 2003 Rich Keltner - He supports the 10,000 GVWR limit. Chair Caulfield read into the record six emails from John W. (Bill) and Barbara Ellis, Pat Simmons, Daren Burgess, Robert Dixson, Eline and Erling Herredsvela, and Delfa J and Terry Quinn, all of which oppose the 12,000 GVWR limit. Public testimony was closed at 7:40. Discussion was held on the backhoe issue. It was suggested that they be grandfathered. It was suggested that since the intent of the amendments seems to be to regulate commercial vehicles that are used commercially, we should allow vehicles that are to be used for improvement of the property. It was suggested that a separate definition for commercial equipment be written. Concern was expressed that if we allow commercial equipment on property for improvement of that property, someone will bring in a large piece of equipment because "some day" they plan to improve the property, and that "some day" may be years in coming. Chair Caulfield commented that he would abstain from voting on this issue because he missed two meetings. It was m/s/c (one abstain, one no, four yes) to amend the proposed amendments to 10,000 GVWR to fit with the residents' needs. It was m/s/c (one abstain, five yes) to allow large equipment for personal use as long as it is specific to the property and fits within the current dimensions of not more than nine feet in height and not more than 22 feet in length. It was m/s/c (one abstain, five yes) to recommend adoption of the proposed text amendments as amended. The proposed amendments will now go the City Council's Land/Use Transportation Committee (LUTC) and then to the full CounciL We will send notices to Parties of Record of these meetings. The recreational vehicles code amendments will probably be dealt with in the spring. The public hearing was closed. ADDITIONAL BUSINESS None. AUDIENCE COMMENT Scott Chase - He commented that currently in his neighborhood, no one has a backhoe, but he is concerned that with this amendment they could have a backhoe in every driveway. He asked that language concerning screening be included. They should not be allowed to park in front of houses. John Leskovar - He commented that we need to have these changes so that those who "do-it- yourself' can proceed. ADJOURN The meeting was adjourned at 8: 15 p.m. K:lPlanning Commission12oo3\Meeting Summary 12-IO-OJ.doc!Last printed 2/2512004 J I: 16 AM CITY OF FEDERAL WAY MEMORANDUM February 25, 2004 To: John Caulfield, Chair of the City of Federal Way Planning Commission FROM: Kathy McClung, Director of Community Development Services Greg Fewins, Deputy Director of Community Development Services SUBJECT: Federal Way Potential Annexation Area (PAA) Subarea Plan I. Recommendation Summary It is recommended that the Proposed Final Potential Annexation Area (P AA) Subarea Plan be approved. The following amendments to the Proposed Final P AA Subarea Plan are also recommended: . Apply the Freeway Commercial Plan class and zone to the Jackson property analysis area (adjacent to northbound 1-5 freeway on-ramps on north side ofS 320th Street). . Amend the North Lake frontage lots to have a Pre-Annexation zone ofRS9.6. II. Background Summary The City of Federal Way Comprehensive Plan identifies a 5,000-acre Potential Annexation Area (PAA) largely east ofl-5. A smaller 40+ acre area is located along SR-99 near S 272nd Street in . the Redondo area. The boundaries of the P AA were established through a series of interlocal agreements between the City of Federal Way and neighboring south King County cities. Consistent with the State Growth Management Act and Countywide Planning Policies for King County, the City would ultimately annex in the P AA and provide City services. To review its PAA comprehensively and in advance of individual requests, the City of Federal Way, with the support of King County, initiated a P AA Subarea Plan and Annexation Feasibility Study. By evaluating the feasibility of potential annexations and planning for the future delivery of services, residents of the P AA and the City can make more informed choices about their future. The P AA Annexation Feasibility Study found that the City of Federal Way would experience a significant negative fiscal impact on its operating budget if the PAA areas east ofl-5were annexed to the City and the City used the same revenue sources and rates, and provided the same level of services as it provides to the residents and businesses in the current boundaries of the Page 2 of24 February 25, 2004 City. The annual deficit would be just under $3.6 million ($8.2 million cost; $4.6 million revenue). The Redondo area is estimated to have no operating cash deficit. In addition, the City of Federal Way would experience major costs for capital improvements in the P AA totaling over $48.3 million. Dedicated capital revenue is anticipated to be $32.0 million through the year 2020, leaving an unfunded cost of $16.3 million. The City would undoubtedly continue City policy that Surface Water Management (SWM) costs would be covered by Surface Water Fees within the structure of the Surface Water Enterprise Fund. This would reduce the operating cost gap to $3.0 million and the capital deficit to $11.6 million. In addition, the City will undoubtedly receive mitigation payments or impact fees from development in the P AA, which were not possible to estimate at this time, but they would further reduce the size of the capital deficit. To address the fiscal impact the Federal Way Potential Annexation Area Annexation Feasibility Report, December 2003 identifies six categories of strategies that could be pursued to address the significant negative fiscal impacts of annexation, as follows, without a priority order: 1. State and County Support 5. Reduced or Phased Levels of Service 2. Local Taxpayers 6. Phased Annexation 3. Tax Base Expansion 4. Special Districts Some implementation strategies may be suitable for different portions of the P AA while others may not be. Study of the alternatives prior to or at the time of annexation requests would be warranted. The Feasibility Study Implementation Strategies are integrated into the Subarea Plan policies. The Federal Way Comprehensive Plan addresses required State and County topics, and would broadly address the major concerns found in the P AA. The P AA Subarea Plan is intended to be a part of the overall City Comprehensive Plan, and it would replace the current P AA Element. The P AA Subarea Plan provides area-specific goals, objectives, and policies appropriate for the P AA, addressing a range of built and natural environment topics. The area-specific issues emphasized in the P AA goals and policies, include the following: . Support of Single Family Neighborhoods as the primary land use of the P AA. . Identification of neighborhood or community commercial centers along arterials, as appropriately scaled nodes for local-serving retail, and multifamily housing styles. . Relationship of the PAA to the Federal Way City Center, such as different functions of commercial centers. Page 3 of24 February 25, 2004 . Opportunities for subsequent detailed planning efforts such as master planning. . Area-specific environmental protection policies. . Capital improvements to meet levels of service for transportation, parks and recreation, and surface water. . Annexation strategies addressing fiscal feasibility, phasing, service delivery, and others. As part of implementing the P AA Subarea Plan, the City has the option of adopting a pre- annexation comprehensive plan and zoning map designations (RCW 35.13.177), which would become effective upon annexation. Pre-annexation comprehensive plan classification and zoning map designations could provide more certainty to property owners and residents about the future character of the area should they annex to the City. The PAA Subarea Plan includes a both Pre- annexation Comprehensive Plan and Zoning Maps. The base or starting point for developing the maps was first to match the most similar City classification to the current County classification. Although the basis of the PAA Subarea Plan is the King County Comprehensive Land Use Plan, the City proposed adjustments to the basic land classification system in some areas as result of a detailed review of existing land uses and future land use/zoning classifications. Through the P AA Subarea Plan public process, four requests were received to modify the associated proposed Pre-annexation Comprehensive Plan and Zoning Maps. The four requests and staff recommendations are summarized in Table 1. Table 1. Summary of Site-Specific Land Use Plan/Zoning Requests and Recommendations Applicant/Site King Proposed Applicant Staff Recommendation County Federal Request Plan and Way Zone PAA Plan and Zone Richard and Louise Davis - 30682 UR4-12 SFHD BN plan class SFHD plan class and RS9.6 Military Road South plan class plan class and zone zoning and NB and RS9.6 zoning zoning Jerry Jackson, All American Assoc. COOC/UR OP and Community Apply a new proposed 320th Street just east of the NE 4-12 with SFHD Business plan Freeway Commercial plan interchange on-ramps 0 and R-4 plan class class and BC class and zone zonmg and OP zone and RS9.6 zoning North Lake Zoning Petition UR 4-12 SFHD and SFHD plan class SFHD plan class with RS9.6 Committee, contact Lois Kutscha, dulac and RS7.2 with RS9.6 zoning. North Lake lots ÍÌ"onting shoreline R-6 zone zoning. zoning. Page 4 of 24 February 25, 2004 Applicant/Site King Proposed Applicant Staff Recommendation County Federal Request Plan and Way Zone PAA Plan and Zone Lee Rabie, Enerco Inc., SW "comer" COOC SFHD Commercial Apply SFHD plan class and ofI-5 S 288th Street east ofI-5, plan class plan class classification for RS7.2 zoning. parcels 032104-9066-00 and 042104- and NB and RS7.2 proposed self- 9045-05 zoning zoning. storage use. with P- Equivalent City Suffix designation that (FW-P29) would allow condition self-storage are limiting BC and BP. use to self- storage. Key BC = Community Business BN or NB = Neighborhood BP = Business Park Business COOC = Commercial Outside of Centers 0 = Office OP = Office Park R = Residential - number are units/acre or lot square SFHD = Single Family High UR = Urban Residential feet Density Additional information regarding the site-specific requests, plan and zone options, and recommendations is provided later in this memo. III. Proposed Review Schedule The P AA Subarea Plan has been reviewed by a P AA Steering Committee made up of representatives from the City Council, Planning Commission, P AA residents, Chamber of Commerce, School District, and Lakehaven Utility District. It has also been the subject of several public open houses as identified further below in this memo. The P AA Subarea Plan will now be formally reviewed by the Planning Commission, the Council's Land Use/Transportation Committee, and the City Council as a whole. The following table identifies potential meeting dates. Table 2. PM Subarea Plan Proposed Review Schedule PAA Subarea Plan Activit Planning Commission Public Meetings/Hearings Estimated Date Meetin Pur ose 3/3/04 Study Session 3/17/04 Hearing: Testimony on Four Site Specific Requests & Freeway Commercial Zone Deliberations 4/7/04 4/21/04 continuation date Page 5 of 24 February 25, 2004 PAA Subarea Plan Activi Estimated Date Meetin LUTC Public Meetings 5/3/04 5/17/04 Discussion Recommendation City Council Hearings 6/1104 Hearing Ci Council Action 7/6/04 7/20/04 Second Hearin and First Readin Second Readin IV. Potential Annexation Area Study In anticipation of the Planning Commission's March 3, 2004 Study Session regarding the Proposed Final Potential Annexation Area (P AA) Subarea Plan and Final Annexation Feasibility Study this memo describes: A. P AA Study Purpose B. P AA Study Area G. Subarea Plan Land Use Plan H. Private Amendment Requests C. Public Participation I. P AA Subarea Plan - Compliance with Comprehensive Plan Amendment Criteria D. P AA Background Studies E. PAA Annexation Feasibility Study J. Conclusions and Recommendatio Planning Commission Action and Staff Recommendations F. Subarea Plan Goals and Key Policies Each topic is addressed below in summary form. The Proposed Final P AA Subarea Plan and Final Annexation Feasibility Study should be consulted for more detailed information. A. PAA Study Purpose The City of Federal Way Potential Annexation Area (PAA) was established through a series of interlocal agreements between the City of Federal Way and neighboring south King County cities. See Map 1 (PAA Subarea Plan Map 1). Based upon the State of Washington Growth Management Act (OMA) and King County Countywide Planning Policies, the City would ultimately annex and provide services within its designated P AA. Over time, property owners in the PAA have made annexation requests to the City of Federal Way, which requires a thorough City analysis of service/capital expenditures, revenues, and other issues. To review its P AA comprehensively and in advance of individual requests, the City Page 6 of24 February 25, 2004 of Federal Way, with the support of King County, initiated a P AA Subarea Plan and Annexation Feasibility Study. By evaluating the feasibility of potential annexations and planning for the future delivery of services, residents of the P AA and the City can make more informed choices about their future. Specific Subarea Plan purposes include: . To act as an informational resource for the City and County staff, elected officials, residents, property owners, and business owners; . To identify the P AA-specific goals, policies, pre-annexation Comprehensive Plan and Zoning Map designations and capital plans; and . To provide the City with a framework to guide future annexations. In coordination with the City's overall Comprehensive Plan, the PAA Subarea Plan provides a Year 2020 long-range land use and policy plan to guide pre-annexation planning efforts and annexation requests. It provides for pre-annexation Comprehensive Plan and Zoning Designations, capital facility plans for transportation, surface water, parks, and other facilities, and policies for a variety of natural and built environment topics. When adopted in final form, the PAA Subarea Plan will be a component of the overall Federal Way Comprehensive Plan focusing upon the 5,000-acre future annexation area, and will replace the Potential Annexation Area Element of the Comprehensive Plan currently in effect. It is intended that the City's Comprehensive Plan Elements provide the general goals and policies for land use, housing, capital facilities, utilities, transportation, economic development, and parks and recreation for the P AA as well as the City. However, the P AA Subarea Plan is intended to address unique characteristics or situations relevant to the P AA. Future annexation proposals will be evaluated, and, if approved, implemented in accordance with the provisions of the Federal Way Comprehensive Plan, that will include the PAA Subarea Plan. B. PAA Study Area For purposes of data collection efficiencies and resources, the PAA has been divided into three Major Subareas as well as seven smaller Community Level Subareas. The Major and Community Level Subareas are as follows (see Map 2; P AA Subarea Plan Map II): . The Redondo East Community Level Subarea is in the Redondo East Major Subarea (both with identical boundaries), west ofl-5 and is approximately 43 acres in size. . Star Lake, Camelot, and North Lake Community Level Subareas comprise the Northeast Major Subarea, east ofl-5 and north ofSR-18, and total approximately 2,527 acres in size. . Lakeland, Parkway, and Jovita Community Level Subareas comprise the Southeast Major Subarea, east ofl-5 and south ofSR-18, and total approximately 2,470 acres in size. Page 7 of 24 February 25, 2004 The subarea boundaries are based upon City-defined Transportation Analysis Zones which align with Census Tract geography, neighborhood affinities as expressed in prior County planning efforts, and the ability of the County to provide information within existing resources, as well as input from the P AA Steering Committee in December 2001. C. Public Participation Key to the development of the P AA Subarea Plan and Annexation Feasibility Study has been and will be public participation. Public participation methods for the P AA Subarea Plan and Annexation Feasibility Study are described in detail in the Subarea Plan, and are summarized briefly below: . Articles in City and Utility District newsletters, and City and County website pages. . A PAA Study webpage on the City's website containing PM publications and allowing interested citizens to comment. . Coordination of draft work products with neighboring jurisdictions and affected agencies. . City facilitation of public neighborhood meetings with several Homeowner's Associations in the P AA. . Mailing public meeting announcements and document publication announcements to a comprehensive stakeholder list. . P AA Steering Committee meetings. The Steering Committee was formed to act as a "sounding board" reviewing products of the Subarea Plan and Annexation Feasibility Study, and assessing the direction of the project, particularly the Subarea Plan. The PAA Steering Committee consists of officials from the Federal Way City Council, Planning Commission, School District, Chamber of Commerce, King County, Lakehaven Utility District, and P AA Resident representatives. Steering Committee Meetings were held in December 2001, January and February 2002, and January, April and September 2003. . Public open houses held in February 2002, and January and September 2003. These meetings were held at local public schools in the PAA and at the City of Federal Way City Hall. At the meetings, the public could review the P AA inventory, land use concepts, levels of service and fiscal analyses as well as provide comments and ask questions. . Planning Commission and City Council public meetings and hearings. Following the Planning Commission Study Session on March 3, 2004, Planning Commission meetings are scheduled through April. Council meetings, including the LUTC, are scheduled for May through July at this time. Page 8 of24 February 25, 2004 D. PAA Background Studies The P AA Subarea Plan has been prepared in accordance with an established work program that included reviews by the City of Federal Way, King County, and working committees, as well as general public input. The key steps in this planning process have included: . Inventory: The inventory identifies current environmental and public service conditions. See Federal Way Potential Annexation Area Inventory, Final, March 18, 2002. . Analysis: Several analyses have been undertaken including land use and population review, levels of service (roads, surface water, police, etc.), and preliminary cost and revenue estimates. (Federal Way Potential Annexation Area Level of Service Analysis, July 11, 2003; Federal Way Potential Annexation Area Land Use Analysis Compilation, March 5, 2003.) . Draft Plan: The March 2003 Draft P AA Subarea Plan contained draft policies and plans, and was the basis for a fiscal analysis. . Final Plan: Based on public input and the fiscal review of the Draft Plan, a Proposed Final Subarea Plan has been prepared. It is coordinated with the P AA Annexation Feasibility Study including strategic alternatives such as annexation area phasing and service provision phasing. Environmental review has been prepared addressing the Proposed Final P AA Subarea Plan in conformance with the State Environmental Policy Act (SEP A). . Adopted Plan: As part of the City's public hearing process, the Federal Way Planning Commission will review and make a recommendation to the Federal Way City Council Land Use and Transportation Committee (LUTC) regarding the adoption of the Subarea Plan. The LUTC will review the Subarea Plan and the Planning Commission recommendation and issue a recommendation to the Federal Way City Council regarding the adoption of the Subarea Plan. The City Council will review the Subarea Plan and the Planning Commission and LUTC recommendations in its consideration of adopting the Subarea Plan. As the P AA Subarea Plan and Annexation Feasibility Study have progressed to date, key concepts have been elicited about the P AA: . The City of Federal Way recognizes annexation as a citizen-based process. The Federal Way P AA Subarea Plan and Annexation Feasibility Study are intended to provide for advanced planning of the P AA allowing both citizens and the City to make informed choices about their future. . The PAA is part of the larger Federal Way community, but is distinct in its own right. Given its proximity, inter-dependent transportation network, shared school district/utility districts/emergency service providers, and the City's subregional economic role, the P AA is inter-related with the City of Federal Way. However, the PAA has its own unique characteristics - residential neighborhood variety, natural features including headwaters to Page 9 of 24 February 25, 2004 several significant streams, a road system functioning with rural standards in an urbanizing area, some economic nodes such as in Redondo, and many other distinct features. E. PAA Annexation Feasibility Study An Annexation Feasibility Study (December 2003) has been prepared to estimate the long-term fiscal impact annexation would have on the City of Federal Way. As a baseline assessment, the Feasibility Study looks at the net fiscal gap the new, expanded City of Federal Way would face if the City were to annex any of the identified P AAs while trying to maintain current levels of services and current levels of taxation and fees. To account for the differences between the fiscal impacts associated with the day-to-day operation of the City and the impacts associated with needed capital investments, the Feasibility Study takes a three-pronged approach to assessing impacts: 1. Estimate the incremental operating costs introduced by annexation of the P AAs on an annual basis, and compare those costs to the incremental revenues the City would receive from the same areas. 2. Discuss how the balance of operating costs and revenues would be likely to change in future years. 3. Estimate the additional capital investments that the City would take on with annexation and compare those costs to the additional capital revenues the City could expect to receive from the P AAs. To provide the most intuitive and up-to-date information about estimated impacts, this analysis provides a snapshot of what the operating impacts would be if the City were in the position of fully governing each P AA in 2003. The assessment of operating impacts is based on 2003 costs of service and 2003 tax and fee structures, as outlined in the City of Federal Way 200312004 Adopted Budget, and is intended to represent a picture of fiscal impacts under steady-state operation. In essence, these estimated steady-state operating impacts reflect the ongoing "costs" that the City would face each year, beginning perhaps, in the third year after annexation and extending into perpetuity.! Estimated costs of capital improvements are based on the most recent available data (2002) and reflect estimates of the combined investments that will be necessary through the planning horizon of 2020 (all presented in 2002 dollars). There is no material effect on this fiscal analysis from using 2003 operating costs impacts and 2002 capital costs, primarily because the capital improvement costs are expressed in current (2002) dollars regardless of when the projects may be built in the next 20 years. I In the initial years of annexation costs could be either higher or lower than the estimated steady-state impacts, depending on how the City chooses to manage annexation. Among the determinants of transition-period costs will be the direct and indirect costs of managing the transition and the pace at which the City chooses to ramp up certain, discretionary service levels in the annexed area. Page 10 of24 February 25, 2004 The purpose of estimating the hypothetical gap that would be created if the City were to try to extend current service levels to the P AAs without increasing taxes is to present decision makers and the public with a picture of the true "cost" of annexation. Ultimately, any such gap between costs and revenues is hypothetical. Cities have no choice but to cover their costs of operation. Consequently, if Federal Way were to annex any of the PAAs, any estimated "cost" associated with annexation would have to be made up through some combination of (1) stretching City resources through decreased levels of service and/or (2) increasing City revenues. The Feasibility Study provides fiscal analysis and annexation strategies that are integrated into the Federal Way PAA Subarea Plan, particularly in terms of: . Identifying public services and capital improvements that would need to be in place to serve the Subarea Plan current and future land use pattern over time, and . Incorporating into Subarea Plan policies the strategies regarding agency coordination, funding sources, future land use amendments, levels of service, and others, that could improve the financial feasibility of annexations in the P AA. Feasibility Study Results The City of Federal Way would experience a significant negative fiscal impact on its operating budget ifthe Southeast and Northeast Major Subareas (Southeast: Lakeland, Jovita, Parkway neighborhoods; Northeast: Star Lake, Camelot, and North Lake neighborhoods) were annexed to the City and the City used the same revenue sources and rates, and provided the same level of services as it provides to the residents and businesses in the current boundaries of the City. The annual deficit would be just under $3.6 million ($8.2 million cost; $4.6 million revenue). The cost of providing the City's levels of service in the P AA would exceed revenues from the P AA by 78 percent annually. The net operating revenue (or net costs) presented here represent the gap between operating revenues generated in each of the P AAs under the City's 2003 revenue structure and the costs of extending 2003 levels of City services to the same areas. In order to present a full picture of operating impacts, this presentation combines fiscal impacts across a number of disparate City Funds. The City would undoubtedly continue City policy that Surface Water Management (SWM) costs would be covered by Surface Water Fees within the structure of the Surface Water Enterprise Fund. Such a strategy would require increased SWM fees and/or decreased levels of SWM services by $538,000 [the difference between estimated SWM operating costs ($823,000) given current service levels and estimated revenues ($285,000)]. The remaining $3.0 million gap, then, would be bridged through some combination of other strategies. Another way of -understanding the fiscal impact of the approximately $3.6 million deficit is to see how it compares to the combined revenue of the City of Federal Way and the combined Page 11 of24 February 25, 2004 Northeast/Southeast PM subareas. If Federal Way and the Northeast and Southeast PM subareas are viewed as a single City of over 105,000 population, the annual deficit of $3.6 million equals six percent of the combined operating revenue. It would be like running a business that loses six percent every year. In addition, the City of Federal Way would experience major costs for capital improvements in the P AA totaling over $48.3 million. Dedicated capital revenue is anticipated to be $32.0 million through the year 2020, leaving an unfunded cost of$16.3 million (which averages $0.9 million per year through 2020). As noted for operating costs above, City policy for surface water (and other enterprise activities) is to cover costs with fee revenue. Assuming that the City would use enterprise policy to cover the $4.7 million cost of stormwater capital, the remaining deficit would be $11,564,520 (which is an annual average of $642,473). In addition, the City will undoubtedly receive mitigation payments or impact fees from development in the P AA, which were not possible to estimate at this time, but they would reduce the size of the deficit. To address the fiscal impact the Federal Way Potential Annexation Area Annexation Feasibility Report, December 2003 identifies six categories of strategies that could be pursued to address the significant negative fiscal impacts of annexation, as follows, without a priority order: 1. State and County Support: With this option, the City could indicate that its ability to annex the Southeast and Northeast Subareas is contingent upon the State of Washington and/or King County providing new resources to offset the significant cost of such annexations. Examples could include a new local option sales tax per State Law that authorizes King County to submit such a tax for voter approval, State grants, and unexpended County impact fees being provided to the City. The County's ability to continue to service urban unincorporated islands has decreased over the last several years, and the County has been cutting back services. Accordingly, in August 2003, it was reported that King County will offer a total of $10 million to a number of cities that annex unincorporated areas in their P AAs. Details were not announced, and will depend on the County's budget decisions. 2. Local Taxpayers: With this option, the City could use one or more general taxes to have all taxpayers in Federal Way and the combined annexation area share in paying the annual operating deficit. The City could ask voters to approve long-term debt in the form of a general obligation bond that is used to build capital improvements. Of particular interest are enterprise funds. Like many cities, Federal Way has a policy that costs of enterprise funds, such as Surface Water Management and Solid Waste are to be covered by user fees. Such a strategy would require increased fees and/or decreased levels of services. Federal Way could increase user fees throughout the City and PM for its stormwater utility and/or solid waste utility and use the proceeds to offset the increased cost of providing those services in the PM. 3. Tax Base Expansion: A long-term strategy for Federal Way could be to increase City revenue by increasing the tax base in the P AA and/or in the City limits. Some businesses, like automobile dealerships, generate significantly more tax revenue than Page 12 of 24 February 25, 2004 the cost of the public services they receive. These strategies could be pursued independently by the City of Federal Way, but King County could make annexation more attractive if it were to take the lead in rezoning selected parcels in the P AA in accordance with provisions of the approved Subarea Plan and assisting in the economic development strategies to develop those areas. A caveat would be that the City of Federal Way and the PAAs cUrrently have vacant and underdeveloped land to absorb decades of anticipated commercial growth. 4. Special Districts: One strategy to generate revenue to pay for Federal Way's level of service in the annexation area would be to create a special district and charge a property tax levy in that district. Washington law allows the creation of limited special purpose districts for a number of purposes, such as roads, parks, transportation, and "local improvements." Voter approval is required to create special districts that have taxing authority. Property owner approval is required to create special districts that use special assessments. There is some risk associated with using special districts as a strategy to pay for providing urban levels of service the P AA. A vote on creating a special taxing district would occur subsequent to an annexation vote. If voters approve annexation, but do not approve the creation of the district(s), the City would be left with insufficient money to provide its level of service. 5. Reduced or Phased Levels of Service: Another way for the City to address the difference in levels of service between Federal Way and the County would be to permanently provide a lower level of service for one or more services, either broadly citywide or only within specific areas. A second strategy for addressing the difference in level of service would be to phase-in the increases in level of service in the annexation area. Phasing would reduce costs during the transition, and it would provide Federal Way with time to recruit and hire personnel and acquire facilities and equipment. However, eventually, phased levels of service will grow to equal the standards achieved by the City of Federal Way. When that occurs, service levels will be the same throughout the City, and the City will experience the full fiscal impacts of those levels of service. A variation on phased or reduced levels of service could include alternative service delivery strategies or customized strategies for specific neighborhoods tailored to the needs or characteristics of the PAA location. For example, crime prevention programs could vary by neighborhood depending on the type residential dwellings, commercial uses, and previous crime rate statistics. 6. Phased Annexation: This strategy would involve annexing those areas that are financially self-supporting first and then annexing other areas later, perhaps in conjunction with other strategies to improve fiscal impact of these subsequent annexations. Phased annexation based on fiscal impacts could be accomplished by annexing Redondo first because it has no operating cash deficit. . The Northeast PAA subarea, or portions thereof, could be annexed next because its operating costs exceed Page 13 of 24 February 25, 2004 revenues by 61 percent. Last to be annexed could be the Southeast P AA subarea, because its costs are estimated to be more than double the revenue it would generate (i.e., the deficit is 105 percent). Phasing can also be accomplished by smaller areas, such as community subareas. For example, if community subareas were annexed in order of their fiscal impact, from least to most net operating cost, the following would be the phasing sequence: Northlake, Lakeland, Star Lake, Jovita, Camelot, and Parkway. If other Implementation Strategies are considered and employed to determine phasing for annexation, the order might be different than the preceding list. It should be noted that phasing annexation emphasizes differences among the areas, and misses the opportunity to mitigate the apparent differences among areas by taking them all at the same time, thus effectively averaging the "highs".and "lows" of both revenues and costs. Some implementation strategies may be suitable to different portions of the P AA while others may not be. Study of the alternatives prior to or at the time of annexation requests would be warranted. The Feasibility Study Implementation Strategies are integrated into the Subarea Plan policies. F. Subarea Plan: Goals and Key Policies The Federal Way Comprehensive Plan addresses required State and County topics, and would broadly address the major concerns found in the P AA. The Subarea Plan is intended to be a part of the overall City Comprehensive Plan and address area-specific goals, objectives, and policies appropriate for the P AA. The proposed Subarea Plan Goals and Policies were developed based upon: . State Growth Management Act (GMA) requirements, Countywide Planning Policies, and City Policies. . P AA Inventory and Level of Service analyses. . Fiscal reports prepared for the P AA. The area-specific issues emphasized in the preparation of P AA Goals and Policies, include the following: . Support of Single Family Neighborhoods as the primary land use of the P AA. . Identification of neighborhood or community commercial centers along arterials, as appropriately scaled nodes for local-serving retail, and multifamily housing styles. . Relationship of the PAA to the Federal Way City Center, such as different functions of commercial centers. . Opportunities for subsequent detailed planning efforts such as master planning. Page 14 of24 February 25, 2004 . Area-specific environmental protection policies. . Capital improvements to meet levels of service for transportation, parks and recreation, and surface water. . Annexation strategies addressing fiscal feasibility, phasing, service delivery, and others The proposed goals are listed below. Policies are included in the P AA Subarea Plan and provide more detail. . Environmental Goal. Practice environmental stewardship by protecting, enhancing and promoting the natural environment in and around the P AA. . Land Use Goal. Respect the character, integrity, and unique qualities of PM neighborhoods in land use planning efforts. . Housing Goal. Promote the preservation and enhancement existing residential neighborhoods, and allow for new housing developments meeting future needs in the P AA. . Parks Goal. Maintain current facilities and acquire new lands to meet P AA community park and recreation needs. . Surface Water Goal. Promote a PM surface water system that protects the environment and property, and allows for efficient operation and maintenance. . Transportation Goal. Establish a safe, coordinated, and linked multimodal transportation system serving local and area-wide travel needs. . Private Utilities Goal. Facilitate provision of electric, natural gas, telecommunication, and cable services to the greater Federal Way community. . Public Services and Capital Facilities Goal. Provide effective, efficient, and quality capital facilities and services at the level necessary to meet community needs and support allowed growth. . Public Participation Goal. Actively seek public involvement in P AA planning efforts. . Govemance/Interjurisdictional Coordination Goal. Coordinate PM planning efforts with other neighboring jurisdictions and agencies. . Annexation Goal. Provide a framework for processing annexation requests. G. Subarea Plan: Land Use Plan The predominant character of the PM consists of single-family residential with several nodes of commercial and multifamily uses, principally along arterial roadways. The King County land Page 15 of24 February 25, 2004 use plans governing the PAA have generally recognized this character. For the Federal Way P AA Subarea Plan, the base or starting point for developing a comprehensive land use plan was first to match the most similar City classification to the current County classification. Although the basis of the PAA Subarea Plan is the King County Comprehensive Land Use Plan, the City conducted a detailed review of existing land uses and future land use/zoning classifications to determine if adjustments to the basic land classification system were warranted in certain locations of the PAA. Geographic Information System (GIS) analysis produced a series of maps to help identify: . Nonconforming Uses: Existing uses that either under the King County classification/zoning system or the City potential classification/zoning system may be considered nonconforming - i.e. legally established land uses that do not conform to existing zoning regulations. . Mobile Home Parks and Units: Mobile home parks and single manufactured homes that may or may not meet Federal Way manufactured home park design standards. . Parcel Size and Minimum Lot Size Requirements: Parcels smaller than the minimum lot size associated with potential zoning categories. Additionally, other issues and locations were reviewed, including: . King County R -1 Zoning areas were reviewed to determine if environmental characteristics warrant Federal Way equivalent zoning (RS-35.0) to King County's R-l (one residential dwelling per acre) zoning. . Potential Incompatibilities: The P AA Subarea Planning team reviewed sites where there could be a potential for incompatibility with City policies/codes, or other concerns. The result of the land use and zoning analysis is a Land Use Plan that: . Recognizes and supports the predominant single-family suburban character of the PAA. . Recognizes the need for neighborhood or community level business goods and services at key nodes in the P AA such as at the intersection of arterials. . Creates a consistent, compatible long-term land use pattern recognizing the predominant and unique character of P AA neighborhoods. As part of implementing the P AA Subarea Plan, the City has the option of adopting a pre- annexation comprehensive plan and zoning map designations (RCW 35.13.177), which would become effective upon annexation. Pre-annexation comprehensive plan classification and zoning map designations could provide more certainty to property owners and residents about the future character of the area should they annex to the City. As part of the Federal Way PAA Subarea Planning Process, a more specific P AA Pre-Annexation Zoning Map shown in Map 4 Page 16 of24 February 25, 2004 (PAA Subarea Plan Map VII-2) has been prepared to correspond to the proposed PAA Pre- Annexation Comprehensive Plan in Map 3 (P AA Subarea Plan Map VII-l). The process of adopting a pre-annexation land use plan and pre-annexation zoning would follow these steps in accordance with RCW 35.13: After a proposed comprehensive plan or zoning regulation is prepared, the legislative body of the city must hold at least two public hearings on it. These hearings must be held at least 30 days apart. Notice of each hearing must be published in a newspaper of general circulation in the annexing city and in the area to be annexed. The notice must give the time and place of hearing. A copy ofthe ordinance or resolution adopting the proposed plan, any part of the proposed plan, or any amendment, together with any map referred to or adopted by the ordinance or resolution, must be filed with the county auditor and the city clerk. The ordinance, resolution, and map must be duly certified as a true copy by the clerk of the annexing city. The county auditor is to record the ordinance or resolution and keep the map on file. (Municipal Research & Services Center of Washington, Annexation Handbook, Revised December 2001 - Report No. 19) The adopting ordinance for the pre-annexation plan and zoning should specify the time interval following an annexation during which the ordinance adopting the pre-annexation plan and zoning, must remain in effect before it may be amended, supplemented or modified by subsequent ordinance or resolution adopted by the annexing city or town. Any amendment to the pre-annexation land use plan that is adopted as part of the Comprehensive Plan is subject to the general GMA limitation that the comprehensive plan may be amended no more frequently than once a year, unless exceptions are met. (Municipal Research & Services Center of Washington, Annexation Handbook, Revised December 2001 - Report No. 19) The Steering Committee has held public meetings in preparing the Subarea Plan. Planning Commission and City Council public hearings are planned as part of the remainder of the Subarea Plan process to fulfill local City public participation requirements and the requirements to ultimately establish a Pre-Annexation Comprehensive Plan and Zoning Map designations. Land Capacity The Federal Way PAA has an estimated Year 2003 population of21,460 with most of the population residing in the Northeast Subarea. The GMA and Countywide Planning Policies for King County require that King County and its cities accommodate their fair share of the future growth projected for King County. The PAA has been found to contain a large supply of vacant and underdeveloped land, with the capacity to accommodate significant future development. Consistent with regionally established methods that are tailored to reflect King County conditions, the total vacant and underdeveloped acres were discounted for critical areas such as wetlands, streams, and steep slopes, rights-of-way and public purpose lands, and market factors (i.e. not all property owners would want to sell or develop). These acres were then multiplied by Page 17 of24 February 25, 2004 density factors based upon achieved densities in developed projects over the period 1995-2000. The results for the 20-year period of2001 to 2022 are a potential dwelling capacity of 3,754 units and an employment capacity of 134 jobs calculated by King County. The City of Federal Way conducted a similar residential capacity analysis with results of3,717 dwelling units, very close to the County's analysis since similar land use classifications are assumed. Future development "targets", expressed in the number of housing units, are determined through an interactive, multi-jurisdictional process between King County and cities located within, considering land capacity, market factors, and other parameters. Through this ongoing regional process, the PAA growth target for the years 2001 to 2022 is established at 1,320 units. The employment target is established at 134 jobs. The buildable land capacity exceeds the residential "target", and is the same in terms of jobs. It should be noted that a capacity analysis may make adjustments or discounts to the amount of available land, but does not estimate the time or rate that growth will occur, only the capacity of the land for additional development. To help identify potential market demands, the City conducted a market analysis for the P AA with the Puget Sound Regional Council forecasts as a starting point. The outcome of the market analysis is a year 2000 to year 2020 projection of 2,223 dwelling units and 115 jobs, which for dwellings exceeds the P AA housing targets, and for employment approaches the employment target, in a nearly similar time horizon. For the purposes of capital facility planning the market analysis figures are used in the P AA Subarea Plan analysis to ensure that facility planning efforts do no overestimate facility demand, capital needs, and funding requirements. H. Private Amendment Requests Through a public review process, four P AA Study Pre-annexation Comprehensive Plan and Zoning requests were submitted by private property owners for consideration by the City Council prior to adoption ofthe Subarea Plan (see Maps 6 - 9): . Richard and Louise Davis - 30682 Military Road South - Request for Neighborhood Business Comprehensive Plan Designation and Zoning (BN) instead of Single Family High Density/RS9.6 proposed in the P AA Subarea Plan. . Jerry Jackson, President, All-American Associates, Coldwell Banker on behalf of seven properties located at 1-5 and S 320th Street just east of the NE interchange on-ramps. PAA Subarea Plan designations are Office Park along S 320th Street and Single Family High Density on the northern two thirds of the property. The request is for Community Business (BC) class for the whole property. The applicant is willing to restrict commercial uses to those that would not compete with City Center commercial areas, such as car dealerships. The analysis area includes the applicant requested sites (seven parcels) along with an adjacent parcel, not part of the request, because it is similarly situated (addressed as 3126 S 320th Street). Page 18 of24 February 25, 2004 . North Lake Zoning Petition Committee, facilitator Lois Kutscha. The request is for lots fronting the North Lake shoreline. The request is to retain the proposed Single Family High Density class but apply RS9.6 zoning instead ofRS7.2 zoning. The analysis area includes the 40+ petitioners' properties as well other similarly situated lakefront lots. Lee Rabie, Enerco Inc., SW "comer" ofI-5 and S 288th Street east ofI-5, King County parcel identification numbers 032104-9066-00 and 042104-9045-05. The request is to apply a commercial classification to the property similar to King County, for purposes of a proposed self-storage use, rather than the P AA Subarea Plan Pre-annexation single-family classifications (Single Family High Density/RS7.2). The property owner is pursuing a permit for a self-storage use with King County. Equivalent City designations allowing self-storage include the Community Business Comprehensive Plan classification with either Community Business (BC) Zoning or Business Park (BP) Zoning. . The four P AA designation requests are summarized in the following Table and identified on Maps 6- 9: Table 3. Four PAA Designation Requests Applicant/Site Current Use Surrounding King County Proposed Applicant Uses Plan and Zone Federal Way Request PAA Plan and Zone Richard and Financial Office Single Family UR4-12 plan SFHD plan BN plan class Louise Davis - class and NB class and RS9.6 and zone 30682 Military zoning zoning Road South Jerry Jackson, All Single Family Single family to COOC/UR 4-12 OP and SFHD Community American Assoc. the north and with 0 and R-4 plan class and Business plan 320th Street just east, vacant to zoning OP and RS9.6 class and BC east of the NE the east, office zoning zone interchange on- to the south, and ramps fteeway to the west North Lake Single family Single family UR4-12 du/ac SFHD and SFHD plan Zoning Petition on lots 9,600 to and vacant. and R-6 zone RS7.2 zoning. class with Committee, over 35,000 RS9.6 zoning. contact Lois square fee Kutscha, North Lake lots ftonting shoreline Page 19 of24 February 25, 2004 Applicant/Site Current Use Surrounding King County Proposed Applicant Uses Plan and Zone Federal Way Request PAA Plan and Zone Lee Rabie, Vacant Surrounding COOC plan SFHD plan Commercial Enerco Inc., SW sites to the north class and NB class and RS7.2 classification "comer" ofl-5 S and east contain zoning with P- zoning. for proposed 288th Street east existing and Suffix (FW- self-storage use. ofI-5, parcels proposed P29) condition Equivalent City 032104-9066-00 churches. On limiting use to designation that and 042104-9045- the south is a self-storage. would allow 05 single-family self-storage are subdivision, and BC and BP. to the west is I- 5. Key BC = Community Business BN or NB = Neighborhood Business COOC = Commercial Outside of Centers 0 = Office R = Residential - number are units/acre SFHD = Single Family High Density or lot square feet BP = Business Park OP = Office Park UR = Urban Residential Davis Request The Davis financial office is an existing use. Applying a Neighborhood Business plan/zoning class would recognize the current use, location along a principal arterial, and maintain the status quo for the neighborhood. However, the site's improvements, such as landscaping, parking, and other features would not meet City development standards and would be nonconfonning. While a detailed review of the site development has not been completed, given the size of the lot, it is unlikely that City development standards could be met in the future. Applying a single-family class would make the use nonconfonning, and site improvements would continue to be nonconfonning. A single-family class would recognize the predominant character of the neighborhood. Options to respond to the request include: . Per the Proposed Final P AA Subarea Plan apply the Single Family High Density plan class and RS9.6 zone similar to that applied to the surrounding properties. At a Comprehensive Plan level this matches King County's long-range vision. . Apply the Federal Way Neighborhood Business plan class and BN zoning. At a zoning level, this would be consistent with the current King County zoning ofNB. The staff recommendation is to continue with the Proposed Final P AA Subarea Plan pre- annexation classifications of Single Family High Density with RS9.6 zoning similar to that applied to the surrounding properties. Jackson Request The Jackson property is immediately adjacent to 1-5 and the principal arterial S 320th Street. It has two easements BP A power lines and Olympic Pipeline. It is located across from office uses. Page 20 of24 February 25, 2004 Immediately to the east and north are single-family uses, and to the east there is also vacant property identified for future office uses similar to the frontage of the Jackson property. A portion of the site contains a wetland (greater than 5 acres), primarily along the freeway. Changing the site to the Community Business land class and BC zoning for the whole property would recognize the location of major roads and highways and easements that reduce the desirability of residential subdivision on the property. Reviewing the request in a larger context, if commercial uses are not limited, additional commercial uses could compete with the Federal Way City Center (a proposed Freeway Commercial plan class and zone is under analysis in a Staff Report which summarizes some P AA land use and market information; when complete, this Staff Report will be provided). The reclassification also could affect immediately adjacent uses in terms of changes in activity levels, noise, aesthetics, and traffic if access is not controlled, such as requiring access from the arterial. It is likely that commercial uses would be clustered away from the single-family areas to the north due to the wetland and wetland buffer, which may help reduce some compatibility concerns. Broader and area-specific compatibility issues could be controlled by regulations, such as limitations on uses, landscaping, lighting, noise, and access (access via the principal arterial rather than through the residential neighborhood). Such regulations are proposed in the Freeway Commercial zone.2 The applicant has also indicated in the application materials a willingness to sign an agreement to limit competitive uses with the Federal Way City Center. Such an agreement could become a development agreement addressing uses, landscaping, lighting, noise, and access. Options to respond to the request include: . Continue with classifications of the Proposed Final PAA Subarea Plan Pre-annexation plan and zoning classes for Office Park/Single Family High Density and OP and RS9.6 zoning. . Apply the Community Business plan class and BC zoning as requested. . Apply the Community Business plan class and BC zoning as requested, but with a development agreement identifying limitations on uses, landscaping, lighting, noise, and access. A development agreement would require a public hearing with the City Council. . Apply a new Freeway Commercial class and zone, which contains regulations regarding limitations on uses, landscaping, lighting, noise, etc. The regulations could be written to indicate that where the zone is applied the City may condition access to avoid impacts to residential areas or such a condition could be applied at the time of a site-specific proposal. 2 Some City development standards regarding landscaping, lighting, and others would also apply in any case when noncommercial projects are proposed in the OP zone (currently the classification is applied only to a portion ofthe site). Page 21 of24 February 25, 2004 The Staff Recommendation is to apply a new Freeway Commercial class and zone. Further analysis of a proposed Freeway Commercial plan/zone class will be provided in a Staff Report under separate cover; it will be distributed when complete. North Lake Zoning Petition Request The North Lake Zoning Petition would amend the Proposed Final P AA Subarea Plan Pre- annexation class and zoning of subject lakefront properties to RS9.6 instead ofRS7.2. Since nearly all current lots range in size from 9,600 to 35,000 (see Map 5), there would be no significant impact. Generally, lots would be conforming in terms of size. There may be a lessened potential for future lot yields due to larger minimum lot size requirements. Since the properties are largely developed, this change is not considered significant to land capacity. Options to respond to the request are: . Apply the proposed P AA Pre-Annexation Subarea Plan class and zone of Single Family High Density and RS7.2. This matches the current King County class and zoning essentially resulting in about six units per acre. . Incorporate the petition request for a Subarea Plan Pre-Annexation class and zone of Single Family High Density and RS9.6 (resulting in about four+ units per acre). The current lot sizes meet or exceed the minimum lot size of 9,600. See Map 5. The Staff Recommendation is to incorporate the petition request for a Pre-Annexation Subarea Plan class and zone of Single Family High Density and RS9.6. Rabie Request The Rabie site on S 288th Street just east ofl-5 is a vacant property surrounded by non- residential uses to the north (church), east (vacant future church site) and west (1-5). To the south lies a single-family subdivision. The subject lots may be less desirable for low density residential due to the freeway and nearby institutional uses. The two subject lots are under a single ownership. Generally land classes and zoning are applied to more than one property in a given area. Current County zoning of Neighborhood Business is limited in application to the two parcels due to a property condition limiting uses to self-storage; the property owner has indicated he is seeking a permit with the County to construct a self-storage use. The effects of applying a commercial class to the property were studied and considered by the County at the time the zoning was applied. The City's equivalent zone to the County's NB zone is also Neighborhood Business (BN). However, if the object is to allow for a self-storage use as is limited by King County P-suffix conditions, City classes that allow self-storage are Community Business (BC) and Business Park (BP) zones, but these are fairly intense in the array of possible commercial uses, and they are generally applied to more than one parcel. If the PAA Subarea Plan is modified to match a Page 22 of 24 February 25, 2004 commercial class to the Rabie property, potential effects upon the residential areas to the south could include changes in activity levels, noise, and aesthetics. These potential effects could be mitigated by a development agreement limiting use to self-storage. Application of City development standards regarding landscaping, lighting, and other design standards in the City Code would also help reduce compatibility concerns. Options to respond to the request include: . Continue with the Proposed Final PAA Subarea Plan Pre-annexation plan and zoning for Single Family High Density and RS7.2 zoning. . Apply a Neighborhood Business and BN zone to the property similar to King County, although this would not accommodate a self-storage use. . Apply the Community Business plan class and BC zoning or BP zoning to accommodate the proposed self-storage use. . Apply the Community Business plan class and BC or BP zoning, but with a development agreement identifying limitations on uses, landscaping, lighting, noise, or other concerns. A development agreement would require a public hearing with the City Council. A commercial class with limitations on uses is similar to the current King County commercial class and NB zonIng. The Staff recommendation is to continue with the Proposed Final P AA Subarea Plan Pre- annexation plan and zoning for Single Family High Density and RS7.2 zoning. The character of the area is primarily residential with some religious facilities, and is not an existing or future commercial node. I. PAA Subarea Plan - Compliance with Comprehensive Plan Amendment Criteria The Federal Way City Code includes Process VI that identifies requirements for City consideration of Comprehensive Plan Amendments and associated legislative rezones. The P AA Subarea Plan would amend the City Comprehensive Plan and replace the current Potential Annexation Area Element. The Subarea Plan also proposes a Pre-annexation Comprehesnive Plan and Pre-Annexation Zoning, similar to a preliminary areawide rezone. The Process VI criteria for general Comprehensive Plan amendments and legislative rezones are generally as follows (FWCC 22-526, 527 and 530): 1. The proposal bears a substantial relationship to public health, safety, or welfare; and 2. The proposal is in the best interest of the residents of the city; and 3. The proposal is consistent with the requirements of Chapter 36.70A RCW and with the portion of the city's adopted plan not affected by the amendment. Page 23 of24 February 25, 2004 Additionally the City may consider other factors (FWCC 22-529): environmental effects, land use compatibility, impacts on infrastructure and community facilities, benefits to neighborhoods, city, and region, land use density/type/demand, population density, and similar factors. The proposed P AA Subarea Plan meets the above critieria: Criteria 1 and 2. The P AA Subarea Plan provides for advance planning which benefits the public health, safety, and welfare and the interest of City and P AA residents. By evaluating the feasibility of potential annexations and planning for the future delivery of services, residents of the P AA and the City can make more informed choices about their future. Criteria 3. The proposal has been evaluated with respect to consistency with the State Growth Management Act (RCW 36.70A), the related Countywide Planning Policies, and the City's Comprehensive Plan. A detailed matrix was prepared in March 2003, but the P AA Subarea Plan can be summarized as consistent with the following State, Regional, and City "indicator" policies: . Growth Management Act: The Subarea Plan applies urban densities to accommodate growth, avoid sprawl, and provide services efficiently within the Urban Growth Area. The predominant land classification would support urban level densities except in areas with significant environmental or infrastructure limitations. Public service capital and operational needs and improvements are identified to support the P AA land use plans. . Countywide Planning Policies: The land capacity of the P AA would accommodate the PAA housing target of 1,320 units and employment target of 134 between 2001 and 2022. Public service capital and operational needs and improvements are identified to support the P AA land use plans. The phasing of services and annexation areas is encouraged in Subarea Plan policies. . City Policies: Proposed Subarea Plan designations and policies support the Comprehensive Plan such as the hierarchy of Commercial Centers by providing for local-serving commercial and mixed-use nodes, and by supporting the predominant residential character of the P AA. Regarding other factors that may be considered, the City has prepared extensive studies of the PAA environment, capital needs, capacity, etc. in the PAA Inventory, LOS Study, and SEPA review as identified in Section IV.D of this Staff Report. J. Planning Commission Action and Staff Recommendations Consistent with the provisions of FWCC Section 22-539, the Planning Commission may take the following actions regarding the Proposed Final P AA Subarea Plan, as a Comprehensive Plan amendment: Page 24 of24 February 25, 2004 I Recommend to City Council adoption of the Proposed Final PAA Subarea Plan as proposed; 2. Recommend to City Council that the Proposed Final P AA Subarea Plan not be adopted; 3. Forward the Proposed Final PAA Subarea Plan to City Council without a recommendation; or 4. Modify the Proposed Final P AA Subarea Plan and recommend to City Council adoption of the Plan as modified. The Proposed Final PAA Subarea Plan would help the City of Federal Way and PAA residents and businesses to understand the implications of annexation and the future vision for the area as a part of the City of Federal Way. It is recommended that the Subarea Plan be approved. The following amendments to the Proposed Final P AA Subarea Plan are also recommended: . Apply the Freeway Commercial Plan class and zone to the Jackson property analysis area. . Amend the North Lake frontage lots to have a Pre-Annexation zone ofRS9.6. List of Exhibits Map I (PAA Subarea Plan Map I) Federal Way PAA Map 2 (P AA Subarea Plan Map II) Community Level Subarea Boundaries Map 3 (PAA Subarea Plan Map VII-I) PAA Pre-Annexation Comprehensive Plan Designations Map 4 (PAA Subarea Plan Map VII-2) PAA Pre-Annexation Zoning Map Map 5 Existing Lot Size Map 6 Davis Request Map 7 Jackson Request Map 8 Northlake Request Map 9 Rabie Request The Federal Way PAA Subarea Plan and PAA Feasibility Study may be purchased at: Kinko's 31823 S Gateway Blvd Federal Way, WJ\ 98003 253-946-2679 Or viewed at: www.cityoffederalwav.com Federal Way City Hall 33530 First Way S PO Box 9718 Federal Way, W J\ 98063-9718 253-661-4000 CD .. > c .. .- 10 ----, ... /""../ ~;...i '-, I' .( I , i L- ---..,., . Album / / I I Millen ~ ity of Federal Way - Potential Annexation Area Federal Way PAA Legend: D Federal Way . Algona D Auburn Des Moines Kent D Milton . Pacific D D D D D Milton, P.A.A. D Pacific, P .A.A. Federal Way, P .A.A. Algona, P.A.A. Auburn, P.A.A. Kent, P .A.A. Vicinity Map Scale: 0 1/2 Mile ~ N ~ Map Date: December, 2003 City of Federal Way, 33530 First Way S, Federal Way. WA 98003 (253) 661-4000 WNN.ci.federal-way.wa.us Please Note: This map is intended for use as a graphical representation ONLY. The City of Federal Way makes no warranty as to its accuraGY. å Fèderal Way ..Im Ikeslpa aJd0c4/genmap.aml Map 1, PAA I l'iiDd-StL - i-: Sw lake [,O", C.k. r--T~ . . I Pacific . I . I_LJ. -~------~-"- '" '..., I ---- . Auburn '-. "'II .... . I . I . r I . I I . . '.t~ , . ifOvita)'j ~ity of Federal Way- Potential Annexation Area Community Level Su barea Bou ndaries Legend: Potential Annexation Area - Community Level Subareas: Redondo East (Redondo East) D Star Lake (Northeast) D Camelot (Northeast) D North Lake (Northeast) D Jovita (Southeast) D Lakeland (Southeast) D Parkway (Southeast) Other Areas: D Incorporated Area D Unincorporated Area Source: City of Federal Way, GIS Division & Department of Community Development Services, BWR, ECONorthwest, PAA Steering Committee, December 2001 Vicinity Map 0 Scale: 1/2 Mile ~ N ~ Map Date: DlIC8mber, 2003 City of Federal Way, 33530 First Way S, Federal Way. WA 98003 (253) 661-4000 WNW.ci.federal-way.wa.us Please Note: This map 1£ Intended for u£e as a graphical representation ONLY. The City of Federal Way makes no warranty as to its accuraGY. å Federal Way .Jm Ikeslpaaldoc4lcom map.aml Map 2, P AA II ,,_. r,ou' c.*- r.-.-- . I Pacific . I . I Mihan --=- II., '...... I ---. . I Auburn . I '-. .. ... . . I . .I vity of Federal Way Potential Annexation Area Federal Way P AA Pre-Annexation Comprehensive Plan Designations Lugond: . Community Bu6inu66 . Multi Family . Nuighborhood 8116ln066 . Park6 and Opon Spaco . Offlcu Park Single Family, Medium Den6i1y D 51nglu Family, High DÐI161ty Soun:e: Ci1y of Fedoral Way Co cu ::E ~ c;; 'õ :> Scale: 0 1/2 Mile ~ N ~ Map Datu: Docombor, 2003 Ploasu Nato: Ci1y of Fedural Way, Thi6 map 16 Intended for U60 3353D First Way S, as a graphical repr06Ð11tation Flldural Way, WA 98DO3 ONL V. Tho City of FlIdorai (253) 661-40DO Way make6 no warranty 'MNW.ci.foderal-way.wa.u6 as to its accuracy. ~ Fèderal Way Map 3, PAA VII-1 ..Julllllm kI8lpu/doc4ltwcomp.lm I thST s"'~ L." r.. '" I ---. . ,... ,~. 8T Auburn '-. ... -.. . I . .. Milton ~ity of Federal Way- Potential Annexation Area Federal Way Pre-Annexation Zoning Map Legend: . BC (Community Business) . BN (Neighborhood Business) . OP (Office Park) RS35.0 (1 Unit/35,ooO SF) D RS9.6 (1 Unlt/9,6oo SF) D RS7,2 (1 Unit!7,2oo Sf) D RSS.O (1 Unltl5,OOO Sf) . RM3600 (1 Unit/3600 SF) RM2400 (1 Unit/2400 SF) . RM1800 (1 Unit/1600 Sf) Source: City of Federal Way Q. «I :E ~ c 'õ :> 0 Scale: 1/2 Mile ~ N ~ Map Date: December, 2003 City of Federal Wtt¡. 33530 First Wtt¡ S, Federal Way, WA 98003 (253) 661-4000 VNNI.å .federal-wtt¡ .wa.us Please Note: This map is intended for use as a graphical represBl1tation ONLY. The City of Federal Wtt¡ makes no warranty as to its accuracy. A Fëderal Way . lull rlim kelipuldDc4llwmne .eml Map 4, P AA VII-2 : ~t'P i~~~l¡~t',n ,~ , "', ' :50131., ' " " S 304thSr ':" i ,':.. '::¡:!i "~!~, oo'"'" " I, , oo , ',', , "' (. l:~1~ig 11fi~í.¥~:;~~' ,T~~T; ,¡ !iL~,~":;'T ; ~~G~?tf~~ ,/lniLFii!i, ~!g;r'- ftw1:.¡¡,rT~¡l! f}...~ '",.;"'~"¡O, ' ,,"'It~ .,."" ,- -O_m ":. ::.rth 1',"~ "?~ 'i /:ì::j~ ^',' ", . , e ð;. ' lfW,,'rr 'i,/( '- ':~~i~'4~t~,~~~J,~ ;#:, .'i:I- 11,""",1, ;t,', .:~",.' .i:oo~:::~ ~ " I, ~!,ru, ,o¡ I, if - .-', ,,' ,o..r¡., " ~ /..//..,1..,( t~~,"'~"\ - \~¡!.~f ~._- "..,. // ,j,L"'Å~~~';;;: ,r~'I.,l' "" ~~~~g~1in J..,,','~,:/: ~ ti~Ρ(.r~, t.J,:' - 'n' 4 ,~,,',':~ ~I ",': .."I,~' 14~ " I. iì: ,,' ." ",~"'k ¡i..n ' :¡,:<: LaIce~"" i!4,~~J þ:' \, J - . :~ -~~ , . )- ',ôi,!':~ ' .. ,i;1:.~: '1If:~Ç.~ ",-'i 0" j ",,: /.:.'.'.1.:..'.:./ \,~.,.'¡a'!ì:~~: ~;, r4i, .oo ;, 7,,:f':' ""yO::., ".,..' ';:,1~' //r, ~ ... \ )c;;' ." '. ',,' ",../.,.....",.,..,.\....70 ~ ¡;;':i"'" ,-" " !:::'~ ;.'Ö :'fi'i~u- ~~~;-' "'. ;/ . Ii.. ...f'" ,00 """""1", .1:"':0-' 'J., ,J'.' -"- 't. ;¡..,'t \-- ,....,1 r. It.~ ,...¡~r :¡ ,iF.r!d'.! "" ". .~t ~ ,a:' ,:.;"~~' ~/ ,. 'Lt,:n..: ", .,...¡ 181 L.li~,þf , - - - - - -I '.. no , .~~, ,".',., ,¡rI'11 p~:.!~ I,' '. ,:{,J;;'~ ~-'~~'"H,,¿'~"j, ' i..- . "'. : ,{ " ÆJrnrntEl J: Ii -:- .F, TT(~y:'Wt~#iii\ /.Mlllon .....".."..--~-'.,~,....1 §:', ,t. ,,',' . ",\"r"""!o.:!" ,,: -. . ',. - ,'"I IØ 88H11h 81" ' .., ~ . ",': ~, !u I!;. u c , L S 320th-ST. , ,S,~thB!. , On. ~ity of Federal Way Potential Annexation Area Existi n9 Lot Size legend: . <5,000 Sq, Ft. . 5,000 - 7,199 Sq. Ft. 7,200 - 9,599 Sq, Ft. . 9,600 - 14,999 Sq. Ft. D 15,000 - 34,999 Sq. Ft. D > 35,000 Sq. Ft. D Incorporated Area D Unincorporated Area Note: Some open space areas are excluded. 0 Scale: 1/2 Mile ~ ~ap Date: January, 2002 City of Federal Way 33530 First Way S ' Federal Way. WA 98003 (253) 661-4000 WNN.ci ,federal-way .wa.us l1li01- lu..lI/mk.oIpaa/docllollllzuml CL tU ::E ~ c: 'v :> ~ N Please Note: This map is intended for use as a graphical representation ONLY, The City of Federal Way makes no warranty as to its accuracy. MapS Citizen Requested Change: Comprehensive Plan: Neighborhood Business Zoning: BN - z iiI ;U ~ iTI en  FëderaI Wily ' ~ ^ /\., 0 200 400 Feet t..; , r- 1 " I I ' i I / I' II TI~mapl~agraplicrepre~el1atbIOIIf. ,/ ,I I aldl~accompalledÞyIOllJarraltlu, Orig inal Staff Re comm endatio n: I Comprehensive Plan: \ Single Family, High Density \ Zoning: RS9,6 .a .§ ..J >. * 0 ~ ~ ' - l! .g ~ ,¿" Final Staff Re comm endatio n: Comprehensive Plan: Single Family, High Density Zoning: RS9,6 RS9.' City of Federal Way PAA Subarea Plan, December 2003 Davis Key: NWetland Buffers 't;::J Wetlands (1998 C FW Study) '. . Federal Way City Limits t:::::J Proposed Zoning Boundary I2:ZJ Applicant Properties D Staff Recommendation Map6 Citizen Requested Change: ,,- t City of Federal Way Comprehensive Plan: :m.rUT Community Business PAA Subarea Zoning: BC Plan Dece m be r 2003 Rði.. Original Staff " Recommendation: ------1 W Comprehensive Plan: . Office Park & \.. j£>- ~"';:;"~'~""'.ì'."';:;""-'~""""LY -~ I-~ Zoning: OP & RS9,6 I' / ,~I ..~ / ~ .. ~~ -~ _u_-.- --- - uun unuu- - - u- ----- j /'--t / 1J~..'.{Vh,'Y//I/.V//A L r I' I r. Þ I Key: , I .. . . , r A.t'I~JIiIIt>J8I'././ ./ ./ ./ /I I 1" 00"', <> I r I ! I I I I , , I _.J I "'-BWetland Buffers 998 CFW Study) City Li mits ning Boundary / I \-----.- ~ ¡ I2'.ZJ Applicant Properties .1' ~ OP RM2400 ---_.-~~~~~~ ~-~\. 0 Staff Recommendation ,: /!! Feder Wa~( C t~( Li mi s ----- . ;5 104 8 0 --- ~ Non-applicant included I I ---- \ . ,,-.- r¡¡ in Final Staff Re commeliUct!lLJ Ii ~ , 6 ,I I . // S320n-t ST S32OTH ST , Final Staff / '----. i Recommendation: ---~-._)  ÃidenlIVViIy Comprehensive Plan: Freeway Commercial .,..,...-/ ^ Zoning. FC ~FreeWay commer~al) J ~ 200 490 Feet I.;f i I I TIll map I~ a grapllo reprUU1atÞI 011{. , al( l~aooompalle( t1Vlo..arraltlu, Jackson Map7 / /. /. ./ / / i~ /' ,/ ,.' ö } - Final Staff Re comm endatio n: Comprehensive Plan: Single Family, High Density Zoning: RS9,6 Wh~ '" 1/." .¡;' /. I Q'r_1 Note: Some non-applicant parcels are included in Final Staff Recommendation RS'U Original Staff Recommendation: Comprehensive Plan: Single Family, High Density Zoning: RS7,2 RS " \ \ u \ .1 I !! I T/r1~, .. : I ~I ~\\\.\~. '~"'-"'/"./>/ W. if ----/ I LJ '. J . "., , ----:Jl \~,~~~ q..,~] (L- ] . // I -~-~<~'l~//j 'I / ')1 \--------- City of Federal Way PAA Subarea Plan, December 2003 North La ke Key: NWetland Buffers ~ Wetlands (1998 CFW S1udy) ~\ . Federal Way City Li mits b Proposed Zoning Boundary ~ .Applioant Properties 0 S1aff Reoo m mendation MapS 0  Ãidenli W8y 200 400 Feet Iif n If map 1& a glapllC r~prUel1i!tbl OIl{, aid J& accom pall~d þv 10 ilia ria Itl!&- <I \ \ I I ,THaT I I /--1 - I I F--l I II I I I I Existing King County Zoning: NB-P Original Staff Recommendation: Comprehensìve Plan: Single Family, Hìgh Density Zonìng: RS7.2 Citizen Requested Change: Comprehensìve Plan: Neighborhood Busìness Zoning: BN RM36 <-~< oi w ~ .. .. ~ ~ ñI ~ en >. ~ rn Q' OJ ~ t- "' :t City of Federal Way PAA Subarea Plan December 2003 Rabie Key: ,^,Wetl<rld Buffers q Wet I <rids (1993 CFW Study) '\. Federal Way City Li mils b Proposed Zoning Boundary t?ZI Applicant Properties D ::taff Recommendation IZ2J Applicant Properties Map9 ~ -- 1M68Y -- ~ .._~ 0 ~ N 200 400 Feet TIll map I' a grapllc r~prU~I1atIH OIl{, au ', accompall~( by 10 wanaltiH.