11-17-2020 Transportation Impact FeeFederal Way Transportation Impact Fee
Prepared for: Federal Way Land Use and Transportation Committee
Rick Perez, PE
City Traffic Engineer
Sarady Long
Senior Transportation
Planning Engineer
Sarah Keenan, PE
Project Manager
Kendra Breiland, AICP
Principal in Charge
November 17th, 2020
Policy Question
2
Should City Council adopt an adjustment to the Transportation Impact Fee (FWRC 19.91)?
Topics
1.Transportation Impact Fees 101
2.Methodology
3.Program Recommendations
4.Fee Schedule & City Center Reduction
5.Comparing to Other Cities
6.Code Update
7.Questions
3
Transportation Impact Fees 101
•One-time charges paid by new developments
•Authorized by 1990 Growth Management Act (GMA)as funding source for transportation improvements
•Funds improvements that add capacity to the transportation network
•Can only be used to fund facilities that serve new growth, not for existing deficiencies
4
Transportation Impact Fees 101
•Federal Way’s current impact fee is $3,616 per trip end
•Must be used within 10 years on public streets and roads
•Projects must be in capital facilities element of comprehensive plan
•Some communities have begun funding more multimodal projects
5
Methodology
66
Recommended Project List
Projects identified by reviewing:
•2009 Transportation Impact Fee Project List
•2018-2023 Transportation Improvement Program (TIP)
•2040 Capital Improvement Project List
7
Step # of Projects Cost
2009 TIF Project List 35 $320.3 M
Projects Removed -15 -$152.1 M
Projects Remaining = 20 = 168.2 M
Cost Escalation of Projects
Remaining (2009 –2020)+ $67.8 M
New Projects Added + 22 + $284.2 M
Total = 42 = $520.2 M
Recommended
Project List
88
Eligible Costs
9
•Reductions taken:
•$52.9 M in existing deficiencies
•$208.6 M for non-City travel
•$701 K for fund balance & prior TIF expenditures
•Impact fees could contribute up to half of the total cost of improvement projects
Upper Limit Cost Per Trip
10
Federal Way Existing -2040 Growth:
14% households
35% employment
11,363 new PM Peak
hour vehicle trips
$258.0 M
11,363 New Trips
=$22,703 per trip
~6.3x higher than existing fee
Fee Schedule
•Provides a rate for 41 typical uses
•Includes 30-40% reduction for eligible uses in the City Center:
•Services
•Restaurants
•Retail
•Office
•Uses that don’t fit these categories can do an independent study
11
Code Updates
12
•Updates reference to 2009 study to updated 2020 study
•Updates definitions
•Clarifies that ‘change of use’ pays for increase in trips
•Redevelopment of uses that were permitted under King County prior to City incorporation may need to pay the full fee unless they can produce evidence of prior mitigation fees paid.
•Updates language to allow ‘Certified Planners’ to prepare the fee calculation
•Removes exemption that is no longer needed for applicants before City adopted a TIF program
Code Updates
13
•Clarifies that the use of impact fees collected can only be used for projects listed in the rate study
•Code refinements to reflect state law:
•Limits deferral of fees to 18 months for single family developments
•Increases time to expend fees from 6 to 10 years
•Specifies that rates will be increased annually with the Consumer Price Index
•Increases administrative fee to 5%, consistent with school impact fees and Surface Water Management System Development Charges
Summary
14
•Proposed fee fairly assesses traffic burden and associated costs
•Addresses recently adopted TIP and CIP
•Promotes responsible development
•Requesting approval from City Council
•A fee may be adopted that is less than or equal to the fee presented today
Impact Fee Rate
15
•Current impact fee rate was based on an eligible project list of $320.3 million, which allowed City to charge up to $9800/trip end.
•Impact fee rate adopted then funded 28% of total eligible project need, with remaining 72% to be provided by City.
•Rate study now identifies eligible project list of $520.2 million.
•Higher fee may deter some development; lower fee means public subsidizing development and creating potential traffic safety concerns.
•Recommendation to maintain same percentage of funding = $6311/trip end
Comparing to Other Cities
16
Note: Update timeframe varies by city
-
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
Cost Per Trip
Prior Actions
17
•Planning Commission recommended approval of the proposed ordinance as drafted on November 4, 2020.
•Land Use and Transportation Committee recommended on November 2, 2020:
•Forwarding the proposed ordinance to First Reading on November 17, 2020.
•Increasing the Transportation Impact Fee rate to $6311 per evening peak hour trip end.
Options
18
1.Forward the proposed ordinance to second reading on December 1, 2020.
2.Do not forward the proposed ordinance to Council and provide direction to staff
Mayor’s Recommendation
19
The Mayor recommends Option 1 to:
•Forward the proposed ordinance to First Reading on November 17, 2020.
•Increase the Transportation Impact Fee rate to $6311 per evening peak hour trip end.
Questions?
20
Rick Perez, PE
City Traffic Engineer
Sarady Long
Senior Transportation
Planning Engineer
Sarah Keenan, PE
Project Manager
Kendra Breiland, AICP
Principal in Charge
Fee Schedule
21
Land Use Land Use Code Unit of
Measure
10th Ed Basic Rate
PM Peak
Trips/Unit
New Trips
%
New Trip
Rate
Trip Length
(miles)
Trip Length
Adj. Factor
Single Family
(Detached)210 Dwelling 0.99 100%0.99 3.5 1.13
0.99 𝑥1.13 𝑥$22,703 =$25,377 per Single Family Dwelling Unit
ITE Trip Gen Rate 𝑥Percent New Trips 𝑥Trip Length
Average Trip Length (3.5 miles)𝑥$22,703 =Cost per Unit of Measure
Land Use Land Use Code Unit of
Measure
10th Ed Basic Rate
PM Peak
Trips/Unit
New Trips
%
New Trip
Rate
Trip Length
(miles)
Trip Length
Adj. Factor
Single Family
(Detached)210 Dwelling 0.99 100%0.99 3.5 1.13
Fee Schedule
22
0.99 𝑥1.13 𝑥$22,703 =$25,377 per Single Family Dwelling Unit
ITE Trip Gen Rate 𝑥Percent New Trips 𝑥Trip Length
Average Trip Length (3.5 miles)𝑥$22,703 =Cost per Unit of Measure
ITE Trip Gen Rate 𝑥Percent New Trips 𝑥Trip Length
Average Trip Length (3.5 miles)𝑥$22,703 =Cost per Unit of Measure
Fee Schedule
23
Land Use Land Use Code Unit of
Measure
10th Ed Basic Rate
PM Peak
Trips/Unit
New Trips
%
New Trip
Rate
Trip Length
(miles)
Trip Length
Adj. Factor
Single Family
(Detached)210 Dwelling 0.99 100%0.99 3.5 1.13
0.99 𝑥1.13 𝑥$22,703 =$25,377 per Single Family Dwelling Unit