CITY COUNCIL ITEM 90.2-A
 
CITY OF LYNNWOOD
Parks, Recreation, & Cultural Arts
 
 
TITLE: Public Hearing: Proposed Park Impact Fees Ordinance
DEPARTMENT CONTACT: Lynn D. Sordel, Sarah Olson
SUMMARY:
A Rate Study for Impact Fees for Parks, Open Space, and Recreation Facilities (Exhibit A) was conducted in 2017 and presented to City Council for consideration on January 29, 2018. A draft ordinance to establish a park impact fee program using the Rate Study was discussed with Council on February 5, 2018.

A Public Hearing is scheduled for February 12, 2018 prior to taking action on the attached ordinance.

The methodology of the Rate Study and the draft Ordinance were developed to be consistent with the adopted Transportation Impact Fee program.
POLICY QUESTION(S) FOR COUNCIL CONSIDERATION:


ACTION:
Conduct a Public Hearing on February 12, 2018 and take public testimony related to the proposed ordinance which provides for the establishment of new park impact fees. 
BACKGROUND:
Lynnwood has been and will continue to experience pressures from development and population growth which creates impacts on the use and demands of Lynnwood's parks, open space and recreational facilities.

The Council adopted the 2016-2025 Park, Arts, Recreation & Conservation (PARC) Plan by Resolution 2016-04 on February 22, 2016. The PARC Plan sets the City's adopted level of service for parks and open space which is to be maintained as population growth occurs. The PARC Plan includes a policy action #3.9.2 to "conduct a park impact fee study for the City and its MUGA to help finance park and trail capital needs related to population growth." Additionally, the PARC Plan identified a 10-year capital facilities plan which is used to help develop the City's 6-year Capital Facilities Plan and which contains a number of projects to address future capacity needs in the park system to accommodate a growing population. 

In January 2018, staff with technical assistance provided by the Trust for Public Land presented the "Lynnwood, Washington Rate Study for Impact Fees for Parks, Open Space, and Recreation Facilities," which establishes the statutory basis and methodology for Lynnwood to assess park impact fees on new development.  The City is authorized by Chapter 82.02 RCW to require new growth and development within the City to pay a proportionate share of the cost of new facilities to serve such new development activity through the assessment of Park Impact Fees. 

Impact Fees assessed pursuant to Chapter 82.02 RCW must be based upon a showing that new growth and development creates additional demand and need for public facilities, that the impact fees do not exceed a proportionate share of the costs of such additional public facilities, and that the fees spent for facilities are reasonably related to the new growth and development.

The City is authorized by Chapter 82.02 RCW to impose PIFs for system improvement costs previously incurred by the City to the extent that new growth and development will be served by the previously constructed improvements provided such fees shall not be imposed to make up for any system improvement deficiencies. These fees may be collected and spent for system improvements that are included in the capital facilities plan. There 34 parks projects totaling $41.6 million in the proposed 2018-2023 Capital Facility Plan of which $33.9 million add capacity to the system and are eligible for park impact fee funding. These projects include new City Center parks, neighborhood parks, trail development, and community center facility expansion. The projects will help to meet the demand of the estimated 7,542 new residents and visitors to Lynnwood over the next six (6) years.

Outreach efforts were made throughout this process to the developer and business community as well as multiple presentations to the Planning Commission and Parks and Recreation Board. The advisory bodies were key to guiding staff on an array of policy choices presented to Council at the February 5, 2018 briefing and discussion of the draft ordinance. There are 82 Washington cities that impose park impact fees including Edmonds, Mill Creek, Mountlake Terrace, Mukilteo, and Shoreline.

Staff propose implementing park impact fees as outlined on page four of the Rate Study effective June 1, 2018 in a phased implementation over 18 months to be:
  • 80% of the rates (Exhibit B) from June 1, 2018 - December 31, 2019
  • 100% of the rates (Exhibit C) effective January 1, 2020
PREVIOUS COUNCIL ACTIONS:
Resolution 2016-04: Adoption of the Parks, Arts, Recreation & Conservation (PARC) Plan

Ordinance 2850: Enacting a new LMC Chapter 3.105 establishing Transportation Impact Fees

City Council reviewed the proposed amendments at the January 29, 2018 and February 5, 2018 Work Sessions.
KEY FEATURES AND VISION ALIGNMENT:
Establishing a park impact fee program will provide an additional funding tool to address the impacts and demands by a growing population in the provision our City vision "to invest in preserving and expanding parks, recreation, and community programs." Using impact fee model which is utilized by 82 Washington cities including every neighboring city is in alignment with the City's vision to be a regional model.
ADMINISTRATION RECOMMENDATION:
Hold a public hearing to take public testimony regarding the proposed amendments.
DOCUMENT ATTACHMENTS
Description: Type:
Park Impact Fee Ordinance Ordinance
Rate Study for Impact Fees for Parks, Open Space and Recreation Facilities Report
Exhibit B Park Impact Fees 80% Exhibit
Exhibit C Park Impact Fees 100% Exhibit