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ORD 19-880 ORDINANCE NO. 19-880 AN ORDINANCE of the City of Federal Way, Washington, relating to the assessment of Surface and Stormwater Utility System Development Charges; and adding a new chapter to Title 19 FWRC. WHEREAS, the City recognizes the need to periodically modify Title 19 of the Federal Way Revised Code ("FWRC"), "Zoning and Development Code," in order to conform to state and federal law, codify administrative practices, clarify and update zoning regulations as deemed necessary, and improve the efficiency of the regulations and the development review process; and WHEREAS, this ordinance, containing amendments to development regulations and the text of Title 19 FWRC, has complied with Process VI review, Chapter 19.80 FWRC, pursuant to Chapter 19.35 FWRC; and WHEREAS, it is in the public interest for the City Council to adopt a new Chapter that establishes development regulations for collection of Surface and Stormwater System Development Charges on development within the City of Federal Way that creates additional demand and need for changes to the stormwater utility infrastructure; and WHEREAS, the Surface Storm Water Utility conducted a rate study (on file with the Federal Way Public Works Department) that incorporated an analysis regarding the need for a Surface and Stormwater System Development Charge; and WHEREAS, the study determined that the City's stormwater drainage system is a series of catch basins, pipes, ponds, and vaults that are impacted by development that increases impervious surface area or changes pervious surface areas. These changes result in increased Ordinance No. 19-880 Page 1 of 11 rainfall runoff that creates additional demand and need on the City's stormwater drainage system; and WHEREAS, the rate study recommended the implementation of a Surface and Stormwater System Development Charge; and WHEREAS, the Surface and Stormwater System Development Charge is for the purpose of recovering a fair share of the costs of additional demand; and WHEREAS, without the System Development Charge, the Surface and Stormwater Utility rate payers would unfairly bear the burden of additional demand on the drainage system as a result of development; and WHEREAS, RCW 35.92.025 authorizes cities to assess charges to property owners seeking to connect to the City's sewerage system; and WHEREAS, under Chapter 35.67 RCW, the definition of systems of sewerage includes surface and stormwater facilities; and WHEREAS, the purpose of a System Development Charge is to share the cost of public facility improvements that are reasonably related to the service demands and needs of new development; and WHEREAS, the Planning Commission conducted a public workshop on these code amendments on October 2, 2019, and WHEREAS, the Land Use & Transportation Committee of the City Council of the City of Federal Way conducted a study session on these code amendments on November 4, 2019; and WHEREAS, this non-project action has been determined to be SEPA exempt under WAC 197-11-800(19) as a procedural action that contains no substantive changes respecting the use or modification of the environment; and Ordinance No. 19-880 Page 2 of 11 WHEREAS, the Planning Commission properly conducted a duly noticed public hearing on these code amendments on October 16, 2019, and continued on October 30, 2019 and forwarded a recommendation of approval to the City Council; and WHEREAS, the Land Use & Transportation Committee of the Federal Way City Council considered these code amendments on November 4, 2019, and recommended adoption of the text amendments as recommended by the Planning Commission; and WHEREAS, the Federal Way City Council finds it is in the best interest of the public to enact and impose a Surface and Stormwater System Development Charge. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Findings. The City Council of the City of Federal Way makes the following findings with respect to the proposed amendments. (1) These code amendments are in the best interest of the residents of the City and will benefit the City as a whole by fairly distributing 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. (2) These code amendments comply with Chapter 36.70A RCW, Growth Management. (3) These code amendments are consistent with the intent and purpose of Title 19 FWRC and will implement and are consistent with the applicable provisions of the Federal Way Comprehensive Plan("FWCP"). (4) These code amendments bear a substantial relationship to, and will protect and not adversely affect,the public health, safety, and welfare. (5) These code amendments have followed the proper procedure required under the FWRC. Ordinance No. 19-880 Page 3 of 11 Section 2. Conclusions. Pursuant to Chapter 19.80 FWRC and Chapter 19.35 FWRC, and based upon the recitals and the findings set forth in Section 1, the Federal Way City Council makes the following Conclusions of Law with respect to the decisional criteria necessary for the adoption of the proposed amendments: (1) The proposed FWRC amendments are consistent with, and substantially implement, the following Federal Way Comprehensive Plan goals and policies: CFG1 Annually update the Capital Facilities Plan to implement the FWCP by coordinating urban services, land use decisions, level of service standards, and financial resources with a fully funded schedule of capital improvements. CFP 1 Provide needed public facilities and services to implement the FWCP. 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. CFP 16 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: (a) major maintenance of existing facilities; (b) eliminating existing capital facility deficiencies; and (c) providing new or expanding existing facilities to serve new growth. Ordinance No. 19-880 Page 4 of 11 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: (a) 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. (2) The proposed FWRC amendment bears a substantial relationship to the public health, safety, and welfare because it enables the Surface and'Stormwater 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 and environmental degradation as a result of an overburdened system. (3) The proposed amendment is in the best interest of the public and the residents of the City of Federal Way because it 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. Ordinance No. 19-880 Page 5 of 11 Section 3. 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. 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, and other surfaces that do not allow penetration of stormwater runoff into the ground. The ESU value for the City of Federal Way has 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 Ordinance No. 19-880 Page 6 of 11 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 thirty-five 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 that will be paid at the time of development and are intended to recover a share of the cost of system capacity needed to serve growth. No building permit, land use approval, short subdivision or subdivision approval, or any other permit allowing development within the city shall 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 $981.00 per ESU. Ordinance No. 19-880 Page 7 of l l 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. Ordinance No. 19-880 Page 8 of 11 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 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 of the 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. Ordinance No. 19-880 Page 9 of 11 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 43.21 C and 82.02 RCW. Section 4. Severability. The provisions of this ordinance are declared separate and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of this ordinance, or the invalidity of the application thereof to any person or circumstance, shall not affect the validity of the remainder of the ordinance, or the validity of its application to any other persons or circumstances. Section 5. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 6. Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 7. Effective Date. This ordinance shall be effective five (5) days after passage and publication as provided by law. Ordinance No. 19-880 Page 10 of 11 PASSED by the City Council of the City of Federal Way this 3rd day of December, 2019. CITY OF FEDERAL WAY: F RRELL, MAYOR ATTEST: fj� stV. HANIE COURTNEY, CM , C TY CLERK APPROVED AS TO FORM: J. RYAN CALL, CITY ATTORNEY FILED WITH THE CITY CLERK: 11/13/2019 PASSED BY THE CITY COUNCIL: 12/03/2019 PUBLISHED: 12/06/2019 EFFECTIVE DATE: 12/11/2019 ORDINANCE NO.: 19-880 Ordinance No. 19-880 Page 11 of 11