HomeMy WebLinkAboutContract CAG-19-022
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
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THIS AGREEMENT is entered into this 1 J day of November, 2017 ("Effective Date") by and
between the City of Renton, a Washington municipal corporation (the "City"), and the Renton
Regional Fire Authority, a Washington special purpose district ("RRFA") (collectively, the City and
the RRFA are the "Parties").
RECITALS
1. The Washington State Legislature passed the Growth Management Act of 1990(GMA) now
codified as chapter 36.70A RCW and chapter 82.02 RCW (the "Act") which authorizes the
imposition and collection of impact fees on development activity as part of the financing
for public facilities, including fire protection facilities, in order to serve new growth; and
2. The Act requires that financing for these public facilities must provide for a balance
between impact fees and other sources of public funds and cannot rely solely on impact
fees; and
3. Impact fees are a critical form of funding necessary for maintaining adequate public fire
protection facilities concurrently with development; and
4. The Act allows the collection and expenditure of impact fees only for public facilities that
are addressed by a capital facilities element of a comprehensive land use plan; and
5. The City Council has adopted section 4-1-190 of the Renton Municipal Code ("RMC"),titled
Impact Fees,which governs the City's impact fee program,and authorizes the City to collect
fire impact fees in conformance with the Act;and
6. In the Interlocal Agreement for Cooperation Between the City of Renton and Renton
Regional Fire Authority, which became effective on July 5, 2016, and is maintained as City
file number CAG-16-116(the "2016 ILA"),the City and the RRFA agreed that until 2017 the
City would charge the fire impact fees listed in the City's 2015-2016 fee schedule, but that
"[b)eginning in 2017, by no later than September 1 of each year, the RRFA may submit to
the City proposed updates to the Fire Impact Fees, together with an updated Fire Capital
Facilities Plan;" and
7. The 2016 ILA also addressed debt service on a promissory note relating to Fire Station 13,
providing as follows at its Section XIV.A.:
"Pursuant to the RFA Plan, the City will retain collected Fire Impact Fees
necessary to cover the debt service requirement for a promissory note
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 1 of 12
between Fire District 40 and the City for the transfer of Fire Station 13 (the
'Debt'). Fire Impact Fees collected in excess of such debt service shall be
remitted to the RRFA and spent in accordance with all applicable laws. To
the degree Fire Impact Fees are collected by the City through its billing,
permit or license systems,the City will remit to the RRFA in a timely manner
all funds collected in excess of the Debt;"
and the City's amortization schedule for the debt service requirement on the promissory
note relating to Fire Station 13 (the "Debt Service") is attached hereto as Exhibit A; and
8. The City makes two payments each year on the Debt Service,on March 1 and September 1.
As of September 1, 2017,the balance on the Debt Service was$4,531,492, plus interest at
an annual interest rate of 3.75%, all as shown in Exhibit A; and
9. The Parties reaffirm their intent that the fire impact fees collected by the City will be first
applied to the entire Debt Service, with only those fire impact fees collected in excess of
the entire Debt Service to be remitted by the City to the RRFA; and
10. As anticipated in the 2016 ILA, the RRFA prepared a Capital Facilities Plan ("RRFA CFP")
under the Act and a Rate Study for Fire Impact Fees ("Fire Rate Study") for adoption by the
RRFA's Governance Board, and authorization to collect and expend fees is contingent upon
the City's adoption of the RRFA CFP as part of the City's comprehensive land use plan
("Comprehensive Plan"), as required by the Act, and the RRFA CFP's adherence to the
statutory requirements of the Act; and
11. The RRFA provided copies of the adopted RRFA CFP and Fire Rate Study to the City for
consideration and for adoption of the RRFA CFP into the City's Capital Facilities Element of
the Comprehensive Plan as anticipated in the 2016 ILA; and
12. The City Council is scheduled to adopt by ordinance the RRFA CFP into the City's Capital
Facilities Element of the Comprehensive Plan, adopted the Fire Rate Study, and amended
RMC 4-1-190 to provide for collection of fire impact fees in the amounts established in the
Fire Rate Study; and
13. The City and the RRFA desire to enter into this Interlocal Agreement pursuant to chapter
39.34 RCW, for the purposes of setting forth the responsibilities and requirements of the
Parties with regard to the fire impact fee program, as anticipated in the 2016 ILA.
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 2 of 12
NOW,THEREFORE, in consideration of the mutual promises herein,the Parties agree as follows:
AGREEMENT
The City and the RRFA agree to comply with the terms of this Agreement, which shall govern the
collection, distribution, expenditure, and refunding of fire impact fees.
I.ADOPTION OF RECITALS
The foregoing recitals are adopted and incorporated herein as terms of this Agreement.
II. RESPONSIBILITIES OF THE RRFA
The RRFA, by and through its officials, employees, agents, and representatives, agrees to:
A. Annually,on or before September 1 of each year, submit to the City either(1) a six-year
capital facilities plan which shall comply with the applicable requirements of RMC 4-1-
190,together with an impact fee schedule which meets the requirements of the Act or
(2) an update of a previously adopted plan and shall comply with all other applicable
requirements of RMC 4-1-190.
B. Accept full responsibility if any fire impact fees are challenged, as more fully set forth in
Section VI.
C. At such time as the City begins to transfer Impact Fees to the RRFA under Section III.F,
expend impact fees remitted to the RRFA under this Agreement, and all interest
proceeds on such fees, solely for expenditures authorized by the Act.
D. At such time as the City begins to transfer Impact Fees to the RRFA under Section III.F,
prepare an annual report in accordance with the requirements of RCW 82.02.070(1)and
RMC 4-1-190 showing the system improvements that were financed in whole or in part
by impact fees and the amount of funds expended. The RRFA shall provide the annual
report to the City no later than September 1 of each year for the preceding calendar
year.
E. At such time as the City begins to transfer Impact Fees to the RRFA under Section III.F,
refund impact fees and interest earned on impact fees when a refund is required
pursuant to RCW 82.02.080.
F. At such time as the City begins to transfer Impact Fees to the RRFA under Section III.F,
maintain accounts and records necessary to ensure proper accounting for all impact fee
funds and for compliance with this Agreement, the Act, and RMC 4-1-190.
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 3 of 12
G. At such time as the City begins to transfer Impact Fees to the RRFA under Section III.F,
in the event the RRFA has extraordinary and compelling reasons for holding impact fees
for longer than the period provided in RCW 82.02.070(3), the RRFA shall identify such
findings in writing to its Governance Board and to the City Council.
H. At the request of the City, review for form any covenant or declarations of restrictions
that purports to maintain exemptions from payment of fire impact fees.
III. RESPONSIBILITIES OF THE CITY
The City, by and through its officials, employees, agents, and representatives, agrees to:
A. Timely review and take action to adopt the RRFA CFP, the Fire Rate Study, and the
RRFA's impact fee schedule, and subsequent updates to those documents, provided
that the RRFA has complied with the terms of this Agreement.
B. Pursuant to RMC 4-1-190, assess and collect the fire impact fees established in and
consistent with the RRFA capital facilities plan, Fire Rate Study,and impact fee schedule
that are adopted by the City.
C. Impose and collect an administrative fee for the collection of fire impact fees, if
established by Council resolution, which administrative fees shall belong solely to the
City. The City agrees that it will not impose an administrative fee prior to the time in
which the Debt Service has been paid in full.
D. Establish and maintain fire impact fee account(s) pursuant to RCW 82.02.070.
E. Between the Effective Date and the date the City has collected sufficient impact fees to
satisfy the Debt Service,the City shall apply such impact fees,together with all interest
accrued on the City's impact fee account(s) to the Debt Service. The City shall not be
required to transfer any impact fees or interest to the RRFA until the City has collected
sufficient impact fees to satisfy the Debt Service. During this time period,the City shall,
on behalf of the RRFA, be responsible for performing the refunding, reporting and
accounting obligations set forth in Section II.D.E.F. and G.
F. After the date the City has collected sufficient impact fees to satisfy the Debt Service,
the City shall remit monthly to the RRFA, all impact fees and accrued interest on such
fees collected by the City during the prior month. Each remittal shall be less any
applicable administrative fees.
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 4 of 12
IV.GENERAL TERMS
A. This Agreement may only be amended in writing and shall become effective only when the
governing body of each party has approved a written amendment or addendum to this
Agreement.
B. The Parties acknowledge that,except as otherwise specifically provided for herein,the City
shall in no event be responsible for the payment of any impact fees to the RRFA, except for
impact fees actually collected for the RRFA.
C. The Parties acknowledge that the RRFA shall in no event be responsible for the payment of
any of the Debt Service regardless of the amount of impact fees collected.
D. This Agreement shall remain in effect until terminated as provided in Section VII.
E. No separate legal or administrative entity is created under this Agreement.
F. No joint financing structure or budget is hereby created under this Agreement.
G. No real or personal property will be acquired under this Agreement.
H. This Agreement will be administered by the Chief Administrative Officer of the City of
Renton, or his/her designee and the Fire Chief of the RRFA or his/her designee.
V.AUDIT
A. Both Parties' records and documents with respect to all matters covered by this Agreement
shall be subject to inspection, review,or audit by the other party or by an appropriate state
agency.
B. The RRFA agrees to cooperate with any monitoring or evaluation activities conducted by
the City that pertain to the subject of this Agreement.The RRFA agrees to allow the City,or
appropriate state agencies and/or any of their employees, agents, or representatives to
have full access to and the right to examine during normal business hours,all of the RRFA's
records with respect to all matters covered by this Agreement. The City and/or any of its
employees, agents, or representatives shall be permitted to audit, examine, and make
excerpts or transcripts from such records and to make audits of all invoices, materials,
payrolls, and record of matters covered by this Agreement. The City will give fifteen (15)
days' advance notice to the RRFA of fiscal audits to be conducted.
C. The results and records of such audits shall be maintained and disclosed in accordance with
chapter 42.56 RCW and RMC 4-1-190.
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 5 of 12
VI. INDEMNIFICATION AND HOLD HARMLESS
A. The RRFA shall, at its own cost and expense, protect, defend, indemnify,and hold harmless
the City, its officers, employees and agents, from any and all costs, claims, judgments or
awards of damages,arising out of or in any way resulting from the acts or omissions of the
RRFA, its officers, employees or agents, relating to the RRFA's implementation of the fire
impact fee program, performance of the responsibilities set forth in Section II of this
Agreement,or compliance with the terms of the Act or RMC 4-1-190,all as may be amended
from time to time. This indemnification by the RRFA of the City shall include, but not be
limited to:
1. The RRFA's responsibility to refund any fees with interest, which are determined by a
court of competent jurisdiction to have been improperly paid, regardless of whether
the City erroneously required the fee amount;
2. The RRFA's agreement not to impose any liability on the City for the City's failure to
collect the proper fee amount or any fee from a developer conducting any development
activity, provided that the City shall make reasonable attempts to collect such fee.
B. The RRFA shall, at its own cost and expense, protect, defend, indemnify,and hold harmless
the City, its officers, employees, and agents, from any and all costs, claims,judgments, or
awards of damages, resulting from a challenge to the legality of any provision of RMC 4-1-
190 as applied to a developer engaging in a development activity located within the RRFA's
boundaries; provided, however, that if the RRFA offers to defend the City, the RRFA shall
not be liable for any of the City's attorney's fees or incidental litigation expenses incurred
after such offer to defend is made; provided further,that if the RRFA defends the City,the
RRFA shall be authorized to settle any such challenge.
C. The RRFA further agrees that the RRFA shall, at its own costs and expense, protect, defend,
indemnify, and hold harmless the City, its officers, employees,and agents from any and all
costs, claims,judgments, or awards of damages arising out of or in any way resulting from
the RRFA's failure to refund impact fees, or interest on such impact fees including but not
limited to a determination that impact fees from development activity that was not
completed are not refundable because the funds were expended or encumbered by the
RRFA whether or not the RRFA's determination was made in good faith; provided however,
that if the RRFA offers to defend,the RRFA shall not be liable for any of the City's attorney's
fees or incidental litigation expenses incurred after such offer to defend is made; provided
further/that if the RRFA defends the City, the RRFA shall be authorized to settle any such
challenge.
D. The RRFA's duties to the City under this Section shall not be diminished or extinguished by
the prior termination of this Agreement pursuant to Section VII.
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 6 of 12
E. Except as provided in paragraphs A, B and C, the City shall, at its own cost and expense,
protect, defend indemnify and hold harmless the RRFA, its officers, employees, or agents,
from any and all costs,claims,judgments or awards of damages,arising out of or in any way
resulting from the acts or omissions of the City, its officers, employees, or agents, relating
to the City's implementation of the fire impact fee program, performance of the
responsibilities set forth in Section III of this Agreement, or the terms of RMC 4-1-190, all
as may be amended from time to time;provided however,that if the City offers to defend,
the City shall not be liable for any of the RRFA's attorney's fees or incidental litigation
expenses incurred after such offer to defend is made, and provided further that the RRFA
shall promptly refund any fees as required by a final court order including payment of any
pre-or post-judgment interest.
F. The City's duties to the RRFA under this Section shall not be diminished or extinguished by
termination of this Agreement pursuant to Section VII.
G. As anticipated in the 2016 ILA,the RRFA accepts full responsibility for ensuring that the fire
impact fees remitted to the RRFA are lawfully charged; for that reason, unless extent
expressly and directly limited by any of the preceding terms,the RRFA agrees to indemnify,
defend, and hold the City harmless from all claims or actions arising out of the City's
collection and remittance of fire impact fees.
VII. COMMENCEMENT DATE AND TERMINATION
A. The term of this Agreement shall commence upon the Effective Date.
B. The RRFA's authorization to receive impact fees under this Agreement may be terminated
without cause by the City, in whole or in part, at any time, but only upon the repeal or
invalidation of the fire impact fee-related portions of RMC 4-1-190.
C. Unless otherwise expressly provided in this Agreement, no party may terminate this
Agreement until after all of the following conditions have been satisfied:
1. The City or the RRFA provides at least 180 days' written notice that this Agreement is
being terminated; and
2. Neither the RRFA, nor the City on behalf of the RRFA, retains unexpended,
unencumbered,or unrefunded impact fees collected during the term of the Agreement
and interest earned thereon, as provided in chapter 82.02 RCW; and
3. The Debt is fully paid off.
D. The obligations under Section VI, Indemnification and Hold Harmless, shall be continuing
and shall not be diminished or extinguished by the termination of this Agreement.
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 7 of 12
E. Nothing herein shall, limit, waive, or extinguish any right or remedy provided by this
Agreement or by law that either party may have in the event that the obligations, terms,
and conditions set forth in this Agreement are breached by the other party.
VIII.SEVERABILITY
In the event any term or condition of this Agreement or application thereof to any person or
circumstances is held invalid,such invalidity shall not affect other terms,conditions,or applications
of this Agreement which can be given effect without the invalid term,condition or application. To
this end the terms and conditions of this Agreement are declared severable.
IX. RIGHTS TO OTHER PERSONS OR PARTIES
It is understood and agreed that this Agreement is solely for the benefit of the Parties and conveys
no right to any other person or party.
X. GOVERNING LAW AND FILING
This Agreement shall be construed and enforced in accordance with, and the validity and
performance hereof shall be governed by the laws of the State of Washington.Jurisdiction of any
dispute arising under this Agreement shall be in King County Superior Court, and each party shall
be responsible for its own costs and attorneys' fees. This Agreement shall be filed with the clerk
of the City, the clerk of the RRFA, and may be recorded with the King County Auditor's Office or
posted on the websites of the Parties.
XI.ADMINISTRATION
The City's representative shall be and notices shall be sent to:
Chief Administrative Officer
1055 Grady Avenue South
Renton, WA 98057
425.430.6500
The RRFA's representative shall be and notices shall be sent to:
Fire Chief
24611 116th Ave SE.
Renton, WA 98030
425.430.7000
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 8 of 12
XII. NOTICE
All communications, including notices, regarding this Agreement shall be sent to the Parties'
representatives at the addresses listed in Section XI. Any written notice shall become effective
upon (1) personal service or (2) three (3) business days after the date of mailing by registered or
certified mail and first-class mail, and shall be deemed sufficiently given if sent to the address
stated in this Agreement, or to such other address as may be specified in writing by a party.
XIII. ENTIRE AGREEMENT/WAIVER OF DEFAULT
The Parties agree that this Agreement is the complete expression of the terms hereto and any oral
representations or understandings not incorporated herein are excluded. Both Parties recognize
that time is of the essence in the performance of the provisions of this Agreement. Waiver of any
default shall not be deemed to be a waiver of any subsequent default. Waiver or breach of any
provision of the Agreement shall not be deemed to be waiver of any other or subsequent breach
and shall not be construed to be a modification of the terms of the Agreement unless stated to be
such through written approval by the Parties, which shall be attached to the original Agreement.
XIV. COUNTERPARTS
This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.
[The remainder of this page is blank; signatures follow below.]
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 9 of 12
IN WITNESS,the Parties below execute this Agreement,which shall become effective on the last
date entered below.
RENTON REGIONAL FIRE AUTHORITY
"ill 4//// k
By: Roderick Marshall
Its: Fire Chief
Dated: 11-1z 7 18
STATE OF WASHINGTON )
) SS
COUNTY OF K► )
On this Z. day of 0QL 4,4," , 20 IS , before me personally appeared
RODERICK MARSHALL, to me known to be the Fire Chief of the RENTON REGIONAL FIRE
AUTHORITY, a Washington special purpose district, that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act and deed of said
special purpose district for the uses and purposes therein mentioned, and on oath stated that he
was authorized too executed said instrument.
DATED e-C-64W' L1 ', 20 .
�pA R 141 fe(044/___,
�1 (Signs ure of Notary)
e O •OT, �4�'ii Z 1
-41144- 14
?Leo a (Print or stamp name of Notary)
O' ��� "20,G,�0 - NOTARY PUBLIC in and for the State of Washington,
WASH�N residing at Veyrtm, wick K, C�;*-tt)
My appointment expires: Z,b 'Z0
APPROVED AS TO FORM:
Brian Snure
Attorney for RRFA
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 10 of 12
CITY OF NTON
By: Denis Law Attes .
n
Its: Mayor """'I",,,,,,
Dated: 7/ //, ''
Jaso A. Se gist pt 45
STATE OF WASHINGTON ) * SEAL - * =
) SS 'VT - ^
COUNTY OF_1 11 t`�__ ) ''f! b/,��"is,",ii�u�
/'/i, 0%`', �o^�o�
PRATED ST- ````.
On this 3k day of _, , 20 11 , before melp6M 'I`a�tyappeared
DENIS LAW, to me known to be the Mayor of the CITY OF RENTON, a Washington municipal
corporation, that executed the within and foregoing instrument, and acknowledged said
instrument to be the free and voluntary act and deed of said municipal corporation for the uses
and purposes therein mentioned, and on oath stated that he was authorized to executed said
instrument.
DATED __. c:� .,"-N—2)I , 20 1 `�
1-\\1._
\r1A R. 4
V' a Iii* 1t ��i (Signa ure of Notary)
�' 'i
A ,,,� 9, Z1,,.,= ,`�s (Print or stamp name of Notary)
i 95�c i''111% �.•••`'.44. 4� NOTARY PUBLICin a d for the State of Washington,
���I',�F1WPS .`' ' residing at j .
My appointment expires: g j ---) 1 Q-
APPROVED AS TO FORM:
Shane Moloney, City At orney
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 11 of 12
EXHIBIT A:
DEBT AMORTIZATION SCHEDULE
[Attached]
INTERLOCAL AGREEMENT FOR THE COLLECTION,
DISTRIBUTION,AND EXPENDITURE OF FIRE IMPACT FEES
Page 12 of 12
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