Planning Commission PKT 10-30-2019City of Federal Way
PLANNING COMMISSION
Special Meeting
October 30, 2019 City Hall
6:30 p.m. Council Chambers
AGENDA
1. CALL TO ORDER
2. ROLL CALL
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3. PUBLIC HEARING
a. Continuation of Code Text Amendment of Title 19,
Division III, Mitigation and Fees
4. COMMISSION BUSINESS
a. South Federal Way Station Area Vision Framework Information:
Staff will provide an overview of the project schedule and anticipated
public participation plan.
5. STAFF BUSINESS
a. Director's Report
b. Petition for Annexation Received
6. NEXT MEETING
a. November 6". Notice will be sent if cancelled.
7. ADJOURNMENT
Commissioners
Wayne Carlson, Chair
Tom Medhurst, Vice -Chair.
Lawson Bronson
Hope Elder
Dawn Meader McCausland
Tim O'Neil
Diana Noble-Gulliford
Dale Couture, Alternate
Eric Olsen, Alternate
K:Tlanning Commission110191AgendalAgenda 10-30-19.doc
City Staff
Robert "Doc" Hansen, Planning Manager
Margaret Clark, Principal Planner
E. Tina Piety, Administrative Assistant
253-835-2601
www.cityo ederalway.com
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CITY OF
Federal Way
October 30, 2019
TO: Planning Commission
FROM: Brian Davis, Community Development Director
Robert "Doc" Hansen, Planning Manager
SUBJECT: Topics for Discussion
Planning Commissioners:
The extended Planning Commission hearing for the code amendment presented to you last week, the
addition to the Code Section 19.96 permitting surface and stormwater Utility System Development
Charges, is not anticipated to take very much time. Because you are dedicating your evening for Planning
Commission business, I have decided to inform you of other items of interest for discussion that exists on
the agenda. This notice is intended to allow you preparation for any questions that you might have. The
items added to the agenda include:
Discussion of the city's Vision Framework Regarding the South Transit Station. I have
asked Ryan to talk with you about the Vision process on items that have come up since we last
met. A letter of concurrence to partner with Sound Transit was signed on October 3rd and staff
will outline the Vision Framework development timeline and key milestones in the project. This
is designed to keep you informed on the progress of the south station.
• Petition for Annexation. A petition for annexation of land to the City has been submitted, the
land located just east of the 1-5 corridor on 320' Avenue. Pape industries, sellers and mechanics
for Kenworth vehicles, has made a contract purchase of property just north of and adjacent to
320", east of I-5, and west, adjacent to 32" d Avenue South, and wishes to obtain services from the
city. They have submitted the 10% petition of owners to ask Council to accept the petition so that
they can submit a required petition from persons owning more than 60% of the property value to
have the land annexed. Council will then decide whether to adopt the proposed annexation, after
which the proposal for annexation goes to the King County Boundary Review Board (BRB) for its
review. If the BRB finds the annexation proposal acceptable, a hearing is set for the Council to
adopt an ordinance approving the annexation. The process is expected to take three to four months.
In regards to the hearing. It was raised at the last Planning Commission meeting that SEPA evaluation
should be completed before a recommendation is made for amending Title 19 to permit surcharges. After
further staff discussion, we reaffirm that a SEPA is not necessary because:
The issue raised relates to impact fees and SEPA review. The proposal is not an impact fee, it is a
surcharge/connection.charge.'Many cities have interpreted SEPA's authority to mitigate
environmental impacts to include authority to impose impact fees to pay for the mitigation of
adverse traffic impacts. A municipality pursuing"this course must establish a proper foundation.
Local SEPA policies authorizing the exercise of SEPA substantive authority must be adopted and
fees imposed must be rationally related to impacts identified in threshold determination
documents (primarily environmental checklists) or environmental impact statements. The city is
not proposing the adoption of this surcharge/connection charge pursuant to its SEPA authority.
This is important because if the city was relying solely on SEPA to establish the surcharge/
connection charge, there would be no basis for imposing such a fee unless SEPA review
occurred. Instead, the city is adopting it pursuant to the authority found in RCW 35.92.025 and
not SEPA.
When impact fees are adopted, cities often take other concurrent actions such as updating their
capital improvement plans or parks, recreation, and open space plans. When different actions are
taken concurrently (when one is exempt from SEPA and the other is not), the overall proposal
would be considered together under non -project SEPA review and would not be exempt under
WAC 197-11-800.
This is a recommendation to charge for actions that will be completed, with or without the
proposed code change. The intent of WAC 197-11-800(19)(b) is to permit SEPA exemption for
activities that result in no substantive changes respecting the use or modification of the
environment. The collection of a connection charge for an activity that is already occurring (and
will continue to occur regardless of whether the code revisions is made) does not result in a
change respecting the use or modification of the environment. Furthermore, the SEPA register
show no threshold determinations made for surcharges/connection charges for utility system
operations. None could be found.
• No action is proposed will not result in any environmental impact. Any project actions requiring a
surcharge/connection charge would still require SEPA review (unless otherwise, exempt).
2
CITY OF
Federal Way
PLANNING COMMISSION
STAFF REPORT
DATE: October 16, 2019
TO: Planning Commission
VIA: Jim Ferrell, May
EJ Walsh, P.E., Public Works Direct6r%/ /e---
FROM; L/
Theresa Thurlow, P.E., Surface Water Division Manager
Amendments to FWRC Title 19, "Zoning and Development Code", Division III,
SUBJECT: "Mitigation and Fees", adding a Chapter, "Surface and Storm Water Utility System
Development Charge,"
I. BACKGROUND
The City is proposing a text amendment to Federal Way Revised Code (FWRC) Title 19, Division III,
Mitigation and Fees, relating to the collection of system development charges for connecting to the City's
stormwater conveyance system.
During the financial analysis of the Surface and Stormwater Utility's rate and rate structure, the
Consultant recommended the City assess a system development charge on development that creates
additional demands and needs for public facilities. The proposed text amendment to FWRC Title 19
would add the requirement for a System Development Charge (SDC) to be assessed when new
development or re -development creates a need for a change in the City's drainage system.
The City's stormwater drainage system is a series of catch basins, pipes; ponds, and vaults. The size and
type of this infrastructure is based on the amount of runoff calculated at the time of development. If there
is a change in the amount of rainfall runoff into the public drainage system as a result of new or altered
hard surfaces, the public system may not be adequate to handle the new demands. The purpose of the
SDC is to share the "...cost of public facility improvements that are reasonably related to the service
demands and needs of new development." (RCW 82.02.090) The purpose of the proposed amendment is
to more fairly distribute the costs associated with expansion of and a growing demand on the City's
stormwater system by assessing a fee on new development or re -development prior to connection of their
private stormwater infrastructure to the City's stormwater system.
SDCe shall be assessed at the time of development, as defined by FWRC 19.05.040, to recover a share of
the cost of the impact of development. SDCs serve two primary purposes: (1) provide equity between
existing and new customers; and (2) provide a source of capital funding in support of system costs. The
SDC charge shall be an upfront charge imposed on system growth and is primarily a charge on new
development, although it will also be applicable to expansion or densification of development when such
actions increase the development's requirements for utility system capacity. The proposed amendment is
planned to be assessed on new development within the City of Federal Way, beginning in 2020.
The fee will be assessed based on contribution to increased runoff and will be based on impervious
surface area. SDCs shall be includedwithin the 2020 City of Federal Way Fee Schedule and will
calculated as a dollar amount* per ESU. For the purposes of assessing an SDC, F,SUs will based on the
total impervious surface area included within the City Approved Develop Plans. Assessed SDCs shall be
paid to the Surface Water Utility revenue account prior to connection of private stormwater infrastructure
to the City's public system. SDCs/ESU for 2020 shall be $1,123 and will beset each year thereafter
within the City of Federal Way Fee Schedule.
II. i.t1I2t2MT TANI)r RDS
The City of Federal Way does not currently assess a System Development Charge on development or
redevelopment.
III. I'110130SED C 11ANC ES TO CODE,
The proposed text amendment to Federal Way Revised Code (FWRC) Title 1.9, Division III, Mitigation
and Fees, relates to the collection of system development charges for connecting to the City's stormwater
conveyance system. The purpose of the proposed amendment is to more equitably distribute the costs
associated with a growing demand on the City's stormwater system by charging a fee to new development
that increases impervious surface area before they are able to connect their private stormwater
infrastructure to the City's stormwater system. The charges will be assessed as a one-time fee to be paid
at the time of development. The proposed amendment is proposed to be assessed to new development
within the City of Federal Way, beginning in 2020.
The recommended draft code revisions are attached.
IV. TIMELINE
The actions that have occurred and the anticipated timeline For completion of the code amendments process
are shown below:
1. Consultant Study— July 2018 to December 201.9
2. Notice of Planning Commission Public Hearing— September 27, 2019
3. Planning Commission discussions —October 2, 2019
4. SERA—Non-project action determined to be exempt under WAC 197.11 (19) Procedural
Actions
5. Planning Commission Public Hearing — October 16, 2019
6. 21 Day Appeal Period Ends — November 6, 2019
7. Land Use/Transportation Committee Public Meeting — November 4, 2019
8. City Council Public Meeting I" Reading of Ordinance —November 19, 2019
9. City Council Public Meeting 2°d Reading of Ordinance — December 3, 2019
10. Notice in Newspaper — December 6, 2019
2
11. Ordinance Effective — January 1, 2020
V. Pul3lm CO IAI%:N'I`$
There were no public comments received.
VI. REASON, 1,OR POLANNING Cum NIISSION ACTION
FWRC Chapter 19.80, "Process VI Council Rezones," establishes a process and criteria for zoning code
text amendments. Consistent with Process VI review, the role of the Planning Commission is as follows:
1. To review and evaluate the zoning code text regarding any proposed amendments.
To determine whether the proposed zoning code text amendments meets the criteria provided by
FWRC 19.80.130.
3. To forward a recommendation to the City Council regarding adoption of the proposed zoning code
text amendments.
VI.I. 1)1XASIONAL, CRITERIA
FWRC19.80.130 provides criteria for zoning text amendments. The following section analyzes the
compliance of the proposed zoning text amendments with the criteria provided by FWRC 19.80.130. The
City may amend development regulations only if it finds that the proposed amendment is consistent with
the applicable provisions of the comprehensive plan.
The proposed FWRC text amendment is consistent with the following Federal Way Comprehensive Pl(zn
(FWCP) goals and policies:
CFP7 - Maximize the use of existing public facilities`and promote orderly compact urban growth.
CFG2 - To meet current needs for capital facilities in Federal Way, correct deficiencies in existing
systems, and replace or improve obsolete facilities.
CFG3 - Provide capital facilities to serve and direct future growth within Federal Way and its Potential
Annexation Area as they further develop. CFP 13 Provide the capital facilities needed to serve the future
growth anticipated by the FWCP. CFP16 Plan and coordinate the location of public facilities and utilities
in advance of need,
CFPG4 - Provide adequate funding for capital facilities in Federal Way to ensure the FWCP vision and
goals are implemented.
CFP22 - Manage the City of Federal Way's fiscal resources to support providing needed capital
improvements. Ensure a balanced approach to allocating financial resources between: 1) major
maintenance of existing facilities; 2) eliminating existing capital facility deficiencies; and 3) providing
new or expanding existing'facilities to serve new growth. CFPG6 Manage the Surface Water Utility in a
manner that makes efficient use of limited resources to address the most critical problems first, and which
expresses community values and priorities.
CFP34 - The utility's funds and resources shall be managed in a professional manner in accordance with
applicable laws, standards, and City financial policies.
CFP35 - The utility shall remain a self-supporting enterprise fund.
CFP36 - The utility Capital Improvement Program (CIP) will provide funding for the following types of
projects: 3) Projects needed for renewal/replacement or additions to current infrastructure and facilities.
CFP37 - To the extent of funding limitations, the CIP shall be sustained at a level of service necessary to
implement cost effective flood control mitigation; meet water quality policies; maintain system integrity;
provide required resource stewardship and protection; and meet federal, state, and local regulations.
CFP38 - The utility will continue to strive to minimize the use of loans to fund necessary capital
improvements, and will generally operate on a "pay-as-you-go basis." However, low interest loans (i.e.
Public Works Trust Fund) and/or grants will be used to leverage local funds when feasible.
The proposed FWRC amendment bears a substantial relationship to the public health, safety, and welfare
because it enables the Surface and Storni iter Utility to apply a long-range approach to the financing of
necessary facilities to ensure continued operation of the drainage infrastructure and reduces the likelihood
of flooding as a result of an overburdened system.
The proposed amendment is in the best interest of the public and the residents of the City of Federal Way
because fairly distributes the costs associated with a growing demand on the City's stormwater system by
assessing a charge to new development or re=development that increases impervious surfaces or alters
pervious surfaces resulting in increased rainfall runoff
VIII. MAYOR'S ILt"43i4 mrNfiA° ION
Based on the above consultant and staff analysis and decisional criteria, the Mayor recommend the
approval of the proposed amendments to FWRC Title 19, "Zoning and Development Code", Division .111,
"Mitigation and Fees", to add a new Chapter, "Surface and Storm Water Utility System Development
Charge."
Section X. A new chapter of the Federal Way Revised Code is hereby created, Chapter
19.96, to read as follows:
Chapter 19.96
Surface and Stormwater Utility System Development Charges.
19.96.010 Purpose and intent.
The city council has determined that it is in the public interest to'enact and impose Surface and
Stormwater Utility System Development Charges (SDC)° for- the purpose of recovering the
equitable share of the cost of impacts to the City of.Federal Way Surface and Stormwater Utility
facilities that result from development that increases impervious surfaces or changes pervious
surfaces resulting in an increase in rainfall runoff.
19.96.020 Definitions.
The following words and terms shall have the following meanings for the purposes of this chapter, -
unless the context clearly requires otherwise..Terms otherwise not defined herein shall be defined
pursuant to Chapter 19.05 or given their usual and customary meaning.
"Equivalent Service, Unit (ESU)" means the average amount of impervious surface area on single-
family residential parcels within the. City of Federal Way. Impervious surface area includes the
single-family residence, driveway, walkway, paved areas,land other surfaces that do not allow
3
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penetration of stormwater runoff into the ground. The ESU value for the City of Federal Way has
r .
been calculated to be 3,200 square feet.
"Impervious surface area" means the non -vegetated surface area that either prevents or retards
the entry of water into the soil mantle as under natural conditions prior to development and/or that
causes water to run off the surface in greater quantities or at an increased rate of flow from the
flow present under natural conditions prior to development. Common impervious surfaces include,
but are not limited to, roof tops, walkways, patios, driveways, parking lots or stormwater areas,
concrete or asphalt paving, gravel roads, packed earthen materials, and oiled, macadam or other
surfaces that similarly impede the natural infiltration of stormwater.
"Redevelopment" for the purpose of assessing SDCs means a site that is already substantially
developed (i.e., has 35 percent or more of existing hard surface coverage), the creation or addition
of hard surfaces; the expansion of a building footprint or addition or replacement of a structure;
structural development including construction, installation or expansion of a building or other
structure; replacement of hard surface that is not part of a routine maintenance activity.
19.96.030 System Development Charges methodology and applicability.
(1) System Development Charges (SDCs) are one-time fees and will be paid ;at the time of
development, intended to recover a shareof the cost of system capacity needed to serve growth.
No building permit, land use approval, short subdivision or subdivision approval, or any other
Z.
permit allowing development within the city shallf be "granted `except upon payment of the SDC
required under this chapter. The annual SDC rate shall be included within the 2020 City of Federal
Way Fee Schedule and will be calculated as a dollar amount per ESU. The SDC will be reviewed
each year and any changes in the SDC rate shall be published in the City of Federal Way Fee
Schedule. All development, which includes redevelopment, in the city that increases impervious
surfaces will be assessed an SDC.
(2) SDCs do not include permit fees, application fees, the administrative fee for collecting and
handling SDCs, or any other charge, fee, or tax imposed or required by the FWRC or any other
entity.
(3) The SDC for 2020 shall be $1,123 per ESU.
19.96.040 Assessment of System Development Charges.
(1) For the purposes of assessing an SDC, development of a single-family detached dwelling unit
parcel as a single-family detached dwelling unit shall be assessed an SDC of one ESU, regardless
of lot size or total square footage of new impervious surface area.
(2) For all other development, ESUS will be based on the total increase in square footage of
impervious surface area. The total increase in square footage of impervious surface area will be
identified at the time of the development review.
(3) Assessed SDCs shall be paid to the SWM SDC account prior to connection of private
stormwater infrastructure to the City's public drainage system.
19.96.050 Deposit and use of System Development Charge funds.
(1) All monies obtained pursuant to this''chapter shall be segregated, credited,, and deposited to the
credit of the storm and surface water utility. The monies deposited shall be expended only for
administering, operating, maintaining, or improving storm and''surface water facilities, including,
but not limited to, all or any part of,the cost of administering, planning, permitting, designing,
financing, acquiring, 'constructing, maintaining, repairing, replacing, improving, or operating
present or future storm and surface water facilities and/or property owned by the utility. Monies
shall not be transferred to any other funds of the city except to pay for expenses directly attributable
to the storm and surface -water utility.
(2) In the event that bonds or similar debt instruments are or have been issued for the advanced
provision of public improvements for which monies obtained pursuant to this chapter may be
expended, said monies may be used to pay debt service on such bonds or similar debt instruments
to the extent that the facilities or improvements provided are consistent with the requirements of
this section and are used to serve development and redevelopment.
19.96.060 Administrative guidelines.
The public works director is hereby authorized to adopt internal guidelines for the administration
of SDCs, which may include the adoption of a procedures guide for SDCs.
19.96.070 Annual adjustment.
Beginning January 1, 2021, and for every year thereafter, the SDC shall be adjusted by the annual
change in the June CPI for the Seattle area.
19.96.080 Administrative fee.
(1) There shall be a fee for the administration of the SDC program in an amount equal to five
f
percent of the amount of the total assessed SDC.:The administrative fee shall be deposited into an
administrative fee account to the credit of the surface and stormwater utility. Administrative fees
shall be used to defray the cost incurred by the.city in the administration and update of the SDC
program.
(2) The administrative fee, which is in addition to the assessed SDC, shall be paid by the applicant
at the same time as the SDC.
19.96.090 Appeals..
A person aggrieved by a decision ofthe''public works director regarding the applicability or amount
of SDCs to any development required under the provisions of this chapter may appeal the decision
to the city's hearing examiner using Process IV, Chapter 19.70, FWRC within 14 calendar days of
the issuance of the SDC decision. In those cases where the proposed development activity may
require a hearing under the authority of other chapters of this code, the hearings may be combined.
19.96.100 Existing authority unimpaired.
Nothing in this chapter shall impair or preclude the city from requiring the applicant or the
proponent of a development activity to mitigate the development impacts and/or adverse
environmental impacts of a specific development pursuant to any provision of the FWRC, the State
Environmental Policy Act, Chapter 43.21C RCW, and/or any other applicable federal, state, or
local law, regulation, or standard based on the environmental documents accompanying the
underlying development approval process, and/or Chapter 58.17 RCW, governing plats and
subdivisions, so long as the exercise of such authority is consistent with the provisions of Chapters
43.21C and 82.02 RCW.
J
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DECLARATION
We, the undersigned, are owners of real property lying outside of the corporate limits of the city of Federal Way,
Washington, but contiguous thereto and designated as part of the Federal Way Urban Growth boundary.
We, the undersigned, owning in excess of 10% of the total value of the area formed by our property and that
between and abutting the city of Federal Way, Washington; do hereby declare our intention to circulate a petition for
annexation to the city of Federal Way, Washington under the' direct petition method for the area attached hereto in
Exhibit A (map) and Exhibit B (legal description). It is acknowledged that this petition may consist of multiple documents
filed separately.
We, the undersigned, request the City assign concurrent zoning and the assumption of a proportionate share of
the City's bonded indebtedness. And that zoning applied to this area be Community Business (BC) as shown on the City's
pre -annexation zoning map (Comprehensive Plan, Chapter 8, Map VIII -7, page 43):
a. Assumption of a proportionate share of the City's bonded indebtedness.
b. Upon the effective date of annexation ordinance that the property within the annexed area be designated in the
City's Comprehensive Plan as Community Business (BC) and zoned Community Business (BC).
AUTHORIZATION
The printed names and signatures of all persons having an interest in real property in the area formed by their property and
that between and abutting the city of Federal Way whose consent is required by virtue of such interest to authorize the
filing of this notice are hereto attached.
Name of Property Owner
Property Addressor
Print Clearly).__ ._
Signature of Property Owner
Date Signed Assessor's Parcel Number
Acres
WILLIAM V. PRUETT JR & PATTI
J, -ZEM,Cf
�o� a ' 092104-9028
5.26
A. PRUETT TRUST
EACH SIGNATURE PAGE MUST CONTAIN THE DECLARATION AND CONDITIONS SO DESCRIBED ABOVE, AS WELL AS A COPY OF BOTH EXHIBITS
WARNING:
Every person who signs this petition with any other than his or her true.name, or who knowingly signs more than one of these petitions,
or signs a petition seeking an election when he or she is not a legal voter, or signs a petition when he or she is otherwise not qualified to
sign, or who makes herein any false statement, shall be guilty of a misdemeanor.
F bt IV's[
TAX PARCEL NO.: NWZY&i —6869e
A 0921049028
B 0921049139
C 0921049206
D 0921049187 all
E 0921049140 !t rf% P,
F 0921049160
G 0921049206
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