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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