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HomeMy WebLinkAboutAgenda AGENDA Planning & Development Committee Regular Meeting 4:00 PM - Thursday, November 8, 2018 Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way 1. Adoption of School Impact Fees and Extension of ADU Fee Reductions a) AB - 2259 Community & Economic Development Department recommends adopting the current Renton, Kent, and Issaquah School District Capital Facilities Plans, and amending the 2019/2020 Fee Schedule in order to collect the requested impact fees of $6,877 (a reduction of $895 from 2017) for single-family units and $2,455 (an increase of $885 from 2017) for multi-family units for the Renton School District; $5,397 (an increase of $162 from 2017) for single-family units and $2,279 (an increase of $12 from 2017) for multi- family units for the Kent School District; and $15,726 (an increase of $6,514 from 2017) for single-family units and $4,399 (an increase of $938 from 2017) for multi-family units for the Issaquah School District. Additionally, CED recommends adopting a resolution to extend the Accessory Dwelling Units fee reductions/waivers from 12/31/2018 to 2020. 2. Trails and Bicycle Master Plan 3. Merrill Gardens at Renton Addition - MFTE a) AB - 2260 Community & Economic Development Department recommends approval of a Multi-Family Housing Property Tax Exemption agreement with Merrill Gardens at Renton Addition that addresses the terms and conditions for the project to receive a partial property tax exemption upon its completion. 4. Comprehensive Plan Amendments 5. Docket #13, Group C & D 6. Wireless Communications Facilities Exemption 7. Emerging Issues in CED AB - 2259 City Council Regular Meeting - 05 Nov 2018 SUBJECT/TITLE: Adoption of School District Impact Fees and Extension of ADU Fee Reductions RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Paul Hintz, Senior Planner EXT.: 7436 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: School District Impact Fees: The Renton, Kent, and Issaquah School Districts have each submitted their updated Capital Facilities Plan and requested the City of Renton collect revised impact fees for 2019, which are based on capacity needs attributed to new growth. Additionally, each respective School District is requesting adoption of their Capital Facilities Plan. Renton 2017 2018 Change Single-Family $7,772 $6,877 ($895) Multi-Family $1,570 $2,455 $885 Kent 2017 2018 Change Single-Family $5,235 $5,397 $162 Multi-Family $2,267 $2,279 $12 Issaquah 2017 2018 Change Single-Family $8,762 $15,276 $6,514 Multi-Family $3,461 $4,399 $938 Accessory Dwelling Unit (ADU) Fee Reductions/Waivers: In October 2017, the City adopted reduced fees applicable to Accessory Dwelling Units, with the exception of fire and school impact fees, in order to encourage this type of moderately affordable housing. The fees were reduced by 50% and waived for the third ADU created within a new subdivision. While no ADUs have been created in newly platted subdivisions, seven permit applications for infill development have been submitted since the fee reductions were established. This represents a 100% increase of ADUs compared to the previous seven years since ADUs were first allowed in 2010. Staff proposes to extend the 12/31/2018 sunset date for these fee reductions/waivers to 12/31/2020. EXHIBITS: A. Capital Facilities Plans Staff Report B. Issaquah School District Capital Facilities Plan AGENDA ITEM #1. a) C. Kent School District Capital Facilities Plan D. Renton School District Capital Facilities Plan E. Capital Facilities Plans Resolution F. Extension of Sunset Date for Reduced Fees for ADUs Resolution STAFF RECOMMENDATION: Adopt the respective school district Capital Facilities Plans and approve the collection of the requested impact fees. Additionally, adopt a resolution extending the 12/31/18 sunset date for ADU fee reductions/waivers to 12/31/2020. AGENDA ITEM #1. a) Page 1 of 3 CITY OF RENTON Community and Economic Development Department Title: Adoption of 2018 School District Capital Facilities Plans Staff: Chip Vincent, CED Administrator Via: Paul Hintz, Senior Planner Date: 10/3/2018 ______________________________________________________________________________ General Description The Renton, Kent, and Issaquah School Districts have each submitted their updated Capital Facilities Plan and requested the City of Renton collect revised impact fees for 2019, which are based on capacity needs attributed to new growth. Below are summaries of each School District’s projects that will be funded, in part, by impact fees and a comparison of the current and proposed impact fees. Each Capital Facilities Plan is proposed to be adopted, via resolution, by the City of Renton. Background Washington’s Growth Management Act authorizes the collection of impact fees to mitigate the cost of new or expanded public facilities necessitated by new housing. School impact fees are assessed on newly built dwelling units and can only be used to support the capital costs of expanding or building new facilities due to growth. Operations and maintenance costs are not eligible expenses for impact fees. Impact fees are commonly assessed to support a number of different capital funds that enable improvements to facilities, such as schools, parks, and transportation systems. The amount collected for an impact fee is based upon a Capital Facilities Plan (CFP) that must demonstrate necessary capital projects attributed to residential growth. Section 4-1-190, Impact Fees, of the Renton Municipal Code empowers the City to collect impact fees for the Issaquah, Kent, and Renton School District, which all have jurisdictional boundaries that extend into city limits. Review Renton School District: For the next six years, one of the District’s highest priorities will be the construction of new facilities to accommodate past and projected growth, recognizing and acknowledging the major capacity deficit at the elementary school level. This includes:  Completion of Sartori Elementary School, the District’s first urban elementary school, funded by the 2016 Capital Levy, a STEM school, drawing students from throughout the District.  Acquisition of land for future development.  Construction of an additional elementary school, and/or expansion of existing elementary school campuses.  Acquisition of additional relocatable classrooms (portables) and/or the redistribution of existing relocatables, as necessary. Other high priority capital improvements will fall into one or more of the following major categories; Safety and Security, Energy Conservation, Site Improvements, and Building Upgrades. Improvements will occur district-wide, affecting nearly all District facilities, achieving and maintaining the level of service necessary to provide safe, healthy, and nurturing learning environments for all students. AGENDA ITEM #1. a) Adoption of School District CFPs Page 2 of 3 October 3, 2018 The District will also be exploring options for future expansion of its high school facilities. As an alternative to constructing a fourth high school, the feasibility of expanding existing facilities at the Lindbergh High School and Renton High School sites will be considered. One factor contributing to the increase in the multi-family fee while reducing of the single-family fee was the change in the overall student generation factors (SGF). While the SFG for single-family homes increased by a healthy 10.11%, the multifamily GFC jumped 66% above the previous year’s factor. A comparison of current and previous year’s fees is as follows: Renton 2017 2018 Change Single-Family $7,772 $6,877 ($895) Multi-Family $1,570 $2,455 $885 Kent School District:  Planning is complete for a replacement school for Covington Elementary School in first quarter of 2019. The project is funded with a combination of bond funds (bonds issued in February 2017), state assistance and impact fees.  Planning is in progress for an additional elementary school in the Kent Valley in 2020 or beyond. The project will be funded with bonds funds and impact fees.  Planning is in progress to add an additional 20 classrooms to elementary schools. The locations will be determined by need. The project will be funded with bonds funds and impact fees.  Enrollment projections reflect future need for additional capacity at the elementary school level.  Some funding for lease or purchase of additional portables may be provided by impact fees as needed. The impact fees for 2018 will increase by the percentage increase of the consumer price index for the Seattle metropolitan area. For 2017, the increase was 3.1%. For single-family residences, the fee will increase by $162 to $5,397. The impact fee for multifamily units will increase by $12 to $2,279. A comparison of current and previous year’s fees is as follows: Kent 2017 2018 Change Single-Family $5,235 $5,397 $162 Multi-Family $2,267 $2,279 $12 Issaquah School District: The Issaquah School District Capital Facilities Plan proposes construction of a new high school, a new middle school, two new elementary schools, the re-build/expansion of an existing middle school and additions to five existing elementary schools to meet the needs of elementary, middle school and high school capacity needs. The King County decision to no longer allow schools to be built outside the Urban Growth Boundary Line (UGBL) means District owned property planned for a new elementary school and middle school cannot be used. The District recently sold this planned site to a third party. The District will need to locate alternative sites inside the UGBL, and the State does not provide funding for property purchases, which may explain the significant amount requested to be collected for single-family homes within the District. AGENDA ITEM #1. a) Adoption of School District CFPs Page 3 of 3 October 3, 2018 The District’s six-year construction plan includes the following capacity projects: Facility Expansions Projected Completion Date Location Additional Capacity New High School 2021 Issaquah 1600 New Middle School 2021 Issaquah 850 Rebuild/Expand Pine Lake Middle 2018 Sammamish 242 New Elementary #16 2020 Issaquah 680 New Elementary #17 2021 Sammamish 680 Expand Cougar Ridge Elementary 2018 Bellevue 120 Expand Discovery Elementary 2019 Sammamish 120 Expand Endeavour Elementary 2019 King County 120 Expand Maple Hills Elementary 2020 King County 120 Expand Sunset Elementary 2018 Bellevue 120 Creekside Elementary Portable 2018 Sammamish 40 Maple Hills Elementary Portable 2018 King County 40 Challenger Elementary Portable 2018 Sammamish 40 Pine Lake Middle School Portable 2018 Sammamish 56 Sunny Hills Elementary Portables 2018 Sammamish 80 lssaquah Middle School Portables 2018 Issaquah 208 lssaquah High School Portable 2018 Issaquah 56 Maywood Middle School Portable 2018 King County 56 A comparison of current and previous year’s fees is as follows: Issaquah 2017 2018 Change Single-Family $8,762 $15,276 $6,514 Multi-Family $3,461 $4,399 $938 Staff Recommendation Direct staff to prepare a resolution to adopt the 2018 Renton, Kent, and Issaquah School District’s Capital Facilities Plans, and amend the 2019 Fee Schedule to reflect the requested impact fee amounts. AGENDA ITEM #1. a) 2018CAPITALFACILITIESPLANlssaquahSchoolDistrictNo.411Issaquah,WashingtonAdoptedMay23,2018ResolutionNo.1116ThelssaquahSchoolDistrictNo.411herebyprovidesthisCapitalFacilitiesPlandocumentingpresentandfutureschoolfacilityrequirementsoftheDistrict.TheplancontainsallelementsrequiredbytheGrowthManagementActandKingCountyCouncilOrdinance21-A.AGENDA ITEM #1. a) TableofContentsEXECUTIVESUMMARY3STANDARDOFSERVICE4TRIGGEROFCONSTRUCTION5DEVELOPMENTTRACKING5NEEDFORIMPACTFEES6ENROLLMENTMETHODOLOGY8TABLEONE:ACTUALSTUDENTCOUNTS2009-10through2017-18ENROLLMENTPROJECTIONS2018-19through2032-339TABLETWO:STUDENTFACTORS-SINGLEFAMILY10TABLETHREE:STUDENTFACTORS-MULTI-FAMILY11INVENTORYANDEVALUATIONOFCURRENTFACILITIES12SITELOCATIONMAP13SIX-YEARCONSTRUCTIONPLAN14TABLEFOUR:PROJECTEDCAPACITYTOHOUSESTUDENTS14SCHOOLIMPACTFEECALCULATIONS15BASISFORDATAUSEDINSCHOOLIMPACTFEECALCULATIONS16APPENDIXA:2017-18ELEMENTARYSCHOOLCAPACITIES17APPENDIXB:2017-18MIDDLESCHOOLCAPACITIES18APPENDIXC:2017-18HIGHSCHOOLCAPACITIES19APPENDIXD:2017-18DISTRICTTOTALCAPACITIES20APPENDIXE:SIX-YEARFINANCEPLAN212AGENDA ITEM #1. a) EXECUTIVESUMMARYIThisSix-YearCapitalFacilitiesPlan(the“Plan”)hasbeenpreparedbythelssaquahSchoolDistrict(the“District”)astheDistrict’sprimaryfacilityplanningdocument,incompliancewiththerequirementsofWashington’sGrowthManagementActandKingCountyCouncilCodeTitle21A.ThisPlanwaspreparedusingdataavailableinMay,2018.ThisPlanisanupdateofpriorlong-termCapitalFacilitiesPlansadoptedbythelssaquahSchoolDistrict.However,thisPlanisnotintendedtobethesolePlanforalloftheDistrict’sneeds.TheDistrictmayprepareinterimandperiodicLongRangeCapitalFacilitiesPlansconsistentwithboardpolicies,takingintoaccountalongerorashortertimeperiod,otherfactorsandtrendsintheuseoffacilities,andotherneedsoftheDistrictasmayberequired.AnysuchplanorplanswillbeconsistentwiththisSix-YearCapitalFacilitiesPlan.InJune1992,theDistrictfirstsubmittedarequesttoKingCountytoimposeandtocollectschoolimpactfeesonnewdevelopmentsinunincorporatedKingCounty.OnNovember16,1992,theKingCountyCouncilfirstadoptedtheDistrict’sPlanandafeeimplementingordinance.ThisPlanistheannualupdateoftheSix-YearPlan.KingCountyandthecitiesoflssaquah,Renton,Bellevue,NewcastleandSammamishcollectimpactfeesonbehalfoftheDistrict.Mostofthesejurisdictionsprovideexemptionsfromimpactfeesforseniorhousingandcertainlow-incomehousing.PursuanttotherequirementsoftheGrowthManagementAct,thisPlanwillbeupdatedonanannualbasis,andanychargesinthefeeschedule(s)adjustedaccordingly.3AGENDA ITEM #1. a) STANDARDOFSERVICEISchoolfacilityandstudentcapacityneedsaredictatedbythetypesandamountsofspacerequiredtoaccommodatetheDistrict’sadoptededucationalprogram.Theeducationalprogramstandardswhichtypicallydrivefacilityspaceneedsincludegradeconfiguration,optimalfacilitysize,classsize,educationalprogramofferings,aswellasclassroomutilizationandschedulingrequirementsanduseofre-locatableclassroomfacilities(portables).Differentclasssizesareuseddependingonthegradelevelorprogramsofferedsuchasspecialeducationorthegiftedprogram.WiththepassageofInitiative728inNovember2000,thelssaquahSchoolBoardestablishednewclasssizestandardsforelementarygradesK-5.TheBoardandDistrictAdministrationwillcontinuetokeepclasssizesnearthelevelsprovidedby1-728;thiswillbedonevialocallevyfunds.ThereisalsolegislationthatrequirestheStatetofundFull-DayKindergartenby2018.TheDistrictprovidedFull-DayKindergartenforthe2016-2017schoolyear.Aclasssizeaverageof20forgradesK-5isnowbeingusedtocalculatebuildingcapacities.Aclasssizeof26isusedforgrades6-8and28forgrades9-12.SpecialEducationclasssizeisbasedon12studentsperclass.Forthepurposeofthisanalysis,roomsdesignatedforspecialuse,consistentwiththeprovisionsofKingCountyCouncilCodeTitle21A,arenotconsideredclassrooms.Invariably,someclassroomswillhavestudentloadsgreaterinnumberthanthisaveragelevelofserviceandsomewillbesmaller.Programdemands,stateandfederalrequirements,collectivebargainingagreements,andavailablefundingmayalsoaffectthislevelofserviceintheyearstocome.Duetothesevariables,autilizationfactorof95%isusedtoadjustdesigncapacitiestowhatabuildingmayactuallyaccommodate.Portablesusedasclassroomsareusedtoaccommodateenrollmentincreasesforinterimpurposesuntilpermanentclassroomsareavailable.Whenpermanentfacilitiesbecomeavailable,theportable(s)iseithermovedtoanotherschoolasaninterimclassroomorremoved.TheKingCountydecisiontonolongerallowschoolstobebuiltoutsidetheUrbanGrowthBoundaryLine(UGBL)meansDistrictownedpropertyplannedforanewelementaryschoolandmiddleschoolcannotbeused.TheDistrictrecentlysoldthisplannedsitetoathirdparty.TheDistrictwillneedtolocatealternativesitesinsidetheUGBL.TheStatedoesnotprovidefundingforpropertypurchases.ApprovedBondfundingprovidesforanewhighschool,newmiddleschool,twonewelementaryschools,arebuild/expansionofanexistingmiddleschoolandadditionstosixexistingelementaryschools.4AGENDA ITEM #1. a) TRIGGEROFCONSTRUCTIONITheIssaquahSchoolDistrictCapitalFacilitiesPlanproposesconstructionofanewhighschool,anewmiddleschool,twonewelementaryschools,there-build/expansionofanexistingmiddleschoolandadditionstofiveexistingelementaryschoolstomeettheneedsofelementary,middleschoolandhighschoolcapacityneeds.Theneedfornewschoolsandschooladditionsistriggeredbycomparingourenrollmentforecastswithourpermanentcapacityfigures.Theseforecastsarebygradeleveland,totheextentpossible,bygeography.Theanalysisprovidesalistofnewconstructionneededbyschoolyear.Thedecisiononwhentoconstructanewfacilityinvolvesfactorsotherthanverifiedneed.Fundingisthemostseriousconsideration.Factorsincludingthepotentialtaxrateforourcitizens,theavailabilityofstatefundsandimpactfees,theabilitytoacquireland,andtheabilitytopassbondissuesdeterminewhenanynewfacilitycanbeconstructed.TheplannedfacilitieswillbefundedbyabondpassedonApril26,2016,schoolimpactfeesandreservefundsheldbytheDistrict.Newschoolfacilitiesarearesponsetonewhousingwhichthecountyorcitieshaveapprovedforconstruction.TheDistrict’sSix-YearFinancePlanisshowninAppendixE.IDEVELOPMENTTRACKINGIInordertoincreasetheaccuracyandvalidityofenrollmentprojections,amajoremphasishasbeenplacedonthecollectionandtrackingdataofknownnewhousingdevelopments.Thisdataprovidestwousefulpiecesofplanninginformation.First,itisusedtodeterminetheactualnumberofstudentsthataregeneratedfromasinglefamilyormulti-familyresidence.Italsoprovidesimportantinformationontheimpactnewhousingdevelopmentswillhaveonexistingfacilitiesand/ortheneedforadditionalfacilities.Developmentsthathavebeencompletedorarestillsellinghousesareusedtoforecastthenumberofstudentswhowillattendourschoolsfromfuturedevelopments.Generationratesforelementaryschool,middleschoolandhighschoolstudentpernewsingle-familyresidenceandnewmulti-familyhousingisshownonpage10andpage11.5AGENDA ITEM #1. a) NEEDFORIMPACTFEESIImpactfeesandstatematchingfundshavenotbeenareliablesourceofrevenue.Becauseofthis,thelssaquahSchoolDistrictaskeditsvotersonFebruary7,2006tofundtheconstructionofanelementaryschool,onemiddleschool,expandMaywoodMiddleSchool,expandLibertyHighSchool,andrebuildlssaquahHighSchool.DistrictvotersalsoapprovedonApril17,2012aballotmeasurethatprovidedfundingtoexpandtwoelementaryschools,rebuild/expandtwoadditionalelementaryschools,addclassroomstoonehighschoolandrebuild/expandonemiddleschool.Duetothehighcostoflandandthelimitedavailabilityofaparcellargeenoughtoaccommodateamiddleschoolprogram,theSchoolBoardreallocatedthemoneysdesignatedtobuildthemiddleschooltoexpandthecapacityoflssaquahandSkylinehighschools.OnApril26,2016votersapprovedbondfundingfortheconstructionofanewhighschool,anewmiddleschoolandtwonewelementaryschools,therebuild/expansionofanexistingmiddleschoolandadditionstosixexistingelementaryschools.AsdemonstratedinAppendixA,(page17)theDistrictcurrentlyhasapermanentcapacity(at100%)toserve8288studentsattheelementarylevel.AppendixB,(page18)showsapermanentcapacity(at100%)for4480studentsatthemiddleschoollevelAppendixC(page19)showsapermanentcapacity(at100%)of5580studentsatthehighschoollevel.Currentenrollmentisidentifiedonpage9.TheDistrictelementaryprojectedOct2018FTEis9658.Adjustingpermanentcapacityby95%leavestheDistrict’selementaryenrollmentoverpermanentcapacityattheelementarylevelby1784students(AppendixA).Atthemiddleschoollevel,theprojectedOct2018headcountis5034.Thisis778studentsoverpermanentcapacity(AppendixB).Atthehighschoollevelthedistrictisoverpermanentcapacityby479students(AppendixC).BasedontheDistrict’sstudentgenerationrates,theDistrictexpectsthat0.763studentswillbegeneratedfromeachnewsinglefamilyhomeand0.24studentswillbegeneratedfromeachnewmulti-familydwellingunit.Applyingtheenrollmentprojectionscontainedonpage9totheDistrict’sexistingpermanentcapacity(AppendicesA,B,andC)andifnocapacityimprovementsaremadebytheyear2023-24,andpermanentcapacityisadjustedto95%,theDistrictelementarypopulationwillbeoveritspermanentcapacityby1986students,atthemiddleschoollevelby1117students,andwillbeoveritspermanentcapacityby1382atthehighschoollevel.TheDistrict’senrollmentprojectionsaredevelopedusingtwomethods:first,thecohortsurvival—historicalenrollmentmethodisusedtoforecastenrollmentgrowthbasedupontheprogressionofexistingstudentsintheDistrict;then,theenrollmentprojectionsaremodifiedtoincludestudentsanticipatedfromnewdevelopmentsintheDistrict.6AGENDA ITEM #1. a) Toaddressexistingandfuturecapacityneeds,theDistrict’ssix-yearconstructionplanincludesthefollowingcapacityprojects:FacilityProjectedLocationAdditionalExpansionsCompletionDateCapacityNewHighSchool2021lssaquah1600NewMiddleSchool2021lssaquah850Rebuild/ExpandPineLakeMiddle2018Sammamish242NewElementary#162020lssaquah680NewElementary#172021Sammamish680ExpandCougarRidgeElementary2018Bellevue120ExpandDiscoveryElementary2019Sammamish120ExpandEndeavourElementary2019KingCounty120ExpandMapleHillsElementary2020KingCounty120ExpandSunsetElementary2018Bellevue120CreeksideElementaryPortable2018Sammamish40MapleHillsElementaryPortable2018KingCounty40ChallengerElementaryPortable2018Sammamish40PineLakeMiddleSchoolPortable2018Sammamish56SunnyHillsElementaryPortables2018Sammamish80lssaquahMiddleSchoolPortables2018lssaquah208lssaquahHighSchoolPortable2018lssaquah56MaywoodMiddleSchoolPortable2018KingCounty56BasedupontheDistrict’scapacitydataandenrollmentprojections,aswellasthestudentgenerationdata,theDistricthasdeterminedthatamajorityofitscapacityimprovementsarenecessarytoservestudentsgeneratedbynewdevelopment.Theschoolimpactfeeformulaensuresthatnewdevelopmentonlypaysforthecostofthefacilitiesnecessitatedbynewdevelopment.Thefeecalculationsexaminethecostsofhousingthestudentsgeneratedbyeachnewsinglefamilydwellingunitoreachnewmulti-familydwellingunitandthenreducesthatamountbytheanticipatedstatematchandfuturetaxpayments.Theresultingimpactfeeisthendiscountedfurther.Thus,byapplyingthestudentgenerationfactortotheschoolprojectcosts,thefeeformulaonlycalculatesthecostsofprovidingcapacitytoserveeachnewdwellingunit.Theformuladoesnotrequirenewdevelopmenttocontributethecostsofprovidingcapacitytoaddressexistingneeds.TheKingCountyCouncilandtheCityCouncilsoftheCitiesofBellevue,lssaquah,Newcastle,RentonandSammamishhavecreatedaframeworkforcollectingschoolimpactfeesandtheDistrictcandemonstratethatnewdevelopmentswillhaveanimpactontheDistrict.TheimpactfeeswillbeusedinamannerconsistentwithRCW82.02.050-.100andtheadoptedlocalordinances.EngrossedSenateBill5923,enactedinthe2015LegislativeSession,requiresthatdevelopersbeprovidedanoptiontodeferpaymentofimpactfeestofinalinspection,certificateofoccupancy,orclosing,withnofeesdeferredlongerthan18monthsfrombuildingpermitissuance.TheDistrictadoptsthepositionsthat:(1)noschoolimpactfeeshouldbecollectedlaterthantheearlieroffinalinspectionor18monthsfromthetimeofbuildingpermitissuance;and(2)nodeveloperapplicantshouldbepermittedtodeferpaymentofschoolimpactfeesformorethan20dwellingunitsinasingleyear.TheDistrict’srecentandongoingstudentgrowth,coupledwiththeneedforthetimelyfundingandconstructionofnewfacilitiestoservethisgrowth,requiresstrictadherencetothisposition.7AGENDA ITEM #1. a) ENROLLMENTMETHODOLOGYITwobasictechniquesareused,withtheresultscompared,toestablishthemostlikelyrangeofanticipatedstudentenrollment:1.Thestudent3-2-1cohortsurvivalmethod.ExaminelssaquahSchoolDistrictenrollmentsforthelast5yearsanddeterminetheaveragecohortsurvivalfortheconsecutivefive-yearperiod.Becausecohortsurvivaldoesnotconsiderstudentsgeneratedfromnewdevelopmentitisaconservativeprojectionofactualenrollment.Forthesamereason,theseprojectionsarealsoslowtoreacttoactualgrowth.2.BasedoninformationfromKingCounty,realtors,developers,etc.,seektoestablishthenumberofnewdwellingunitsthatwillbesoldeachyear.Thenewdwellingunitsareconvertedtonewstudentsbasedonthefollowing:a)Thenumberofactualnewstudentsasapercentageofactualnewdwellingsforthepastseveralyears.b)Determinetheactualdistributionofnewstudentsbygradelevelforthepastseveralyears,i.e.,5%tokindergarten,10%tofirstgrade,2%to11thgrade,etc.c)Basedonanexaminationofthehistoryshownby(a)and(b)above,establishthemostlikelyfactortoapplytotheprojectednewdwellings.Afterdeterminingtheexpectednewstudents,thecurrentactualstudentenrollmentsaremovedforwardfromyeartoyearwiththearrivedatadditions.Oneofthechallengesassociatedwithallprojectiontechniquesisthattheytendtoalwaysshowgrowthbecausethenumberofhousesandthegeneralpopulationalwaysincreases.Enrollments,however,cananddodecreaseevenasthepopulationincreases.Thereasonisasthepopulationmatures,thenumberofkindergartnerswillgodownasthenumberof10thgradersisstillincreasing.Toadjustforthisfactor,thenumberofschoolagechildrenperdwellingisexamined.Whenthisnumberexceedsexpectations,itisprobablybecausetheDistrictisstillassumingkindergartengrowth,whilethemaingrowthisactuallymovingintomiddleschool.Whenthishappens,areductionfactorisaddedtokindergartentoforceittodecreaseeventhoughthegeneralpopulationcontinuestogrow.Aprecisestatisticalformulahasnotbeendevelopedtomakethisadjustment.Afteralloftheprojectionshavebeenmadeandexamined,themostlikelyrangeisselected.Anexaminationofpastprojectionscomparedwithactualenrollmentindicatesthecohortstendtobemoreaccurateoveraten-yeartimespanwhiledwellingunitstendtobemoreaccurateoverashorterperiod.Theprobablereasonisthatoveraten-yearperiod,theprojectionstendtoaverageouteventhoughtherearemajorshiftsbothupanddownwithintheperiod.Enrollmentprojectionsfortheyears2018-2019through2032-2033areshowninTableOne.StudentgenerationfactorsareshowninTableTwoandTableThree.8AGENDA ITEM #1. a) .TABLEONE:ACTUALSTUDENTCOUNTS2009-10through2017-18.ENROLLMENTPROJECTIONS2018-19through2032-33YerK1ST2ND3RD4TH5TH6THTfH8TH9TH10Th11Th12T1!IitilK-S649-.12Tt31FUEnro.Umeut2161-1159313191351129913711253128612991255132611711332114715,8077191314047751,1l72910-li61313901355138513191400126113261292132513331120101516,13174623892471416,1382911-1260913961423137414271346140713111346136113191233102111,563756540444934155632913436511361145714961440144813621447133524123353122511317,14771634148523617,1472913-1365414891414152614981477146213411463234414042233111)17l55805143165117,4652014-1569414441552H7815451555151214911432149513522292111511,50683174435525413,6161915-il66215471558153515431532160015521523147214991367U311,43585114671526418,4452016-J7140€14131623150916501604162616261585156514751290106319,069375437539319,6952117-iS14471561153516911613168016271655155116291546]243126529,07295564933551421,9122918491447161116171590171616781705155115371677161123711fl2L296515034578021,4722119-lI13711610267216751624175117111733l627131670143612426,9969’105123606326,9952121-fl14061530167017291713165317901738175517162703147413021,19997325287521,1992922-2213481565252917271760175216931115176317951716150513522,41197915272535521,4132122-2313961556162116471757179617791718£131179$2711150713i21,5719773533663621,5712923-231535155716151671167$17451825IEi2’51743217217871592]3721,86!91515373663121,112913-2515431643161516721711171713251151113017791362159414622,16999545507669922,1612125-26154?1703P5416731703174917471851117618661751166713622,312102315474675722,3712026-27155717071761111317051743P78137211762911125525731S422,517102825127517822,5912927-28156817161765lUS1143174217721814179?291129001660144:22,731104525373691522,1312121-2915501723;77518221350183117721798112911321900170715122,975106055399697122,9752•21-3015531710178618321354133115101798112321641821170615723,12310623533169723,1242930-31155517131768114312641392191119361123115118532627157523,227106355677691613,2272131-32155617151771182518751902192119441961215112471659149!23,133106445126686323,3332932-33155517161773152818571513193119471968299611471652153123,51810644584770P23,511•Zl€-17EnTIn€n1rflEc1JIUCnc(ta1EFulK119f1En9AGENDA ITEM #1. a) TABLETWO:STUDENTFACTORS-SINGLEFAMILYI2017-18SingleFamilySTUDENTSAVERAGEPERUNITSingleFamilyDevelopment#Planned#SoldK-56-89-12TotalK-56-89-12TotalBelvedere9492421720790.4570.1850.2170.859Cavalia4949211222550.4290.2450.4491.122Cedarcroft2740011000.250.25Claremont@Renton919118312330.1980.0330.1320.363ForestHeights246010100.16700.167Glencoe,Preswick&Kinlock@Trossachs2111988045762010.4040.2270.3841.015HeritageEstates8686572018950.6630.2330.2091.105Highcroft@Sammamish121120481927940.40.1580.2250.783lssaquahHighlands3112364227611300.1780.1140.2580.551IssaquahHighlands-IchijoSunRidge353511512280.3140.1430.3430.8LawsonPark31312068340.6450.1940.2581.097LibertyGardens363631590.0830.0280.1390.25Overlook@Brookshire3836721100.1940.0560.0280.278SummitPickering/InneswoodEstates302110911300.4760.4290.5241.429Rivenwood525220813410.3850.1540.250.788ShorelaneVistas38388613270.2110.1580.3420.711SymphonyRidge(newarea)57511969340.3730.1180.1760.667TOTALS13311f824061873099020.3430.1580.2610.763SINGLEFAMILYElementarySchool0.343MiddleSchool6-80.158HighSchool9-120.261TOTAL0.763Thesedevelopmentsarecurrentlyunderconstructionorhavebeencompletedwithinthepastffi.eyears.10AGENDA ITEM #1. a) TABLETHREE:STUDENTFACTORS-MULTI-FAMILYI2017-18MultiFamilySTUDENTSAVERAGEPERUNITMultiFamilyDevelopment#Planned#SoldK-56-89-12TotalK-56-89-12TotalAvalonBay900730140.4290.0000.1430.571lssaquahHighlands-ViewRidge38381087250.2630.2110.1840.658lssaquahHighlands-TheBrownstones175175191115450.1090.0630.0860.257LakeBorenTownhomes565621140.0360.0180.0180.071Lakehouse411740150.2350.0000.0590.294Overlook@Brookshire424221030.0480.0240.0000.071Talus:SpringPeak282800110.0000.0000.0360.036TOTALS1280363402126870.1100.0580.0720.240MULTIFAMILYElementarySchool0.110MiddleSchool6-80.058HighSchool9-120.072TOTAL0.240ThesedeeIopmentsarecurrentlyunderconstructionorhavebeencompletedwithinthepastfieyears.11AGENDA ITEM #1. a) INVENTORYANDEVALUATIONOFCURRENTFACILITIESIBelowisalistofcurrentfacilities.ThesefacilityLocationMap.EXISTINGFACILITIESGRADESPANK-5:ApolloElementaryBriarwoodElementaryCascadeRidgeElementaryChallengerElementaryClarkElementaryCougarRidgeElementaryCreeksideElementaryDiscoveryElementaryEndeavourElementaryGrandRidgeElementaryIssaquahValleyElementaryMapleHillsElementaryNewcastleElementarySunnyHillsElementarySunsetElementaryGRADESPAN6-8:BeaverLakeMiddleSchoolIssaquahMiddleSchoolMaywoodMiddleSchoolPacificCascadeMiddleSchoolPineLakeMiddleSchoolGRADESPAN9-12:IssaquahHighSchoolLibertyHighSchoolSkylineHighSchoolGibsonEkHighSchoolSUPPORTSERVICES:AdministrationBuildingMayValleyServiceCenterTransportationCenterTransportationSatellitelocationsandsitesareshownontheDistrictSiteLOCATION15025S.E.117thStreet,Renton17020S.E.134thStreet,Renton2020TrossachsBlvd.SE,Sammamish25200S.E.KiahanieBlvd.,Issaquah335FirstAve.S.E.,lssaquah4630167thAve.S.E.,Bellevue20777SE16thStreet,Sammamish2300228thAve.S.E.,Sammamish26205S.E.Issaquah-FallCityRd.,Issaquah1739NEParkDrive,Issaquah555N.W.HollyStreet,Issaquah15644204thAve.S.E.,lssaquah8440136thAveS.E.,Newcastle3200Issaquah-PineLakeRd.S.E.,Sammamish4229W.Lk.SammamishPkwy.SE.,lssaquah25025S.E.32Street,lssaquah6002rdAve.Ave.S.E.,Issaquah14490168thAve.S.E.,Renton24635SElssaquah-FaIICityRd,lssaquah3200228thAve.S.E.,Sammamish700SecondAve.S.E.,Issaquah16655S.E.136thStreet,Renton1122228thAve.S.E.,Sammamish379FirstAve.SE.,Issaquah565N.W.HollyStreet,Issaquah16404S.E.MayValleyRoad,Renton805SecondAvenueS.E.,lssaquah3402228thAve.SE.,SammamishCurrently,usingthe95%utilizationfactor,theDistricthasthecapacitytohouse17431studentsinpermanentfacilitiesand4195studentsinportables.Theprojectedstudentenrollmentforthe2018-2019schoolyearisexpectedtobe20472includingK-5FTEwhichleavesapermanentcapacitydeficitof3041.Addingportableclassroomsintothecapacitycalculationsgivesusacapacityof21626withasurpluscapacityof1154fortheK-12studentpopulation.Calculationsofelementary,middleschoolandhighschoolcapacitiesareshowninAppendicesA,BandC.TotalsareshowninAppendixD.12AGENDA ITEM #1. a) ElIdW’iNOLLVDO7LISAGENDA ITEM #1. a) THEISSAQUAHSCHOOLDISTRICTSSIX-YEARCONSTRUCTIONPLANTheDistrict’sSix-YearFinancePlanisshowninAppendixE.ShowninTableFouristheDistrict’sprojectedcapacitytohousestudents,whichreflectstheadditionalfacilitiesasnoted.Voterspasseda$533millionbondinApril2016tofundthepurchaseoflandforandconstructionofanewhighschool,anewmiddleschool,twonewelementaryschools,therebuild/expansionofanexistingmiddleschoolandadditionstosixexistingelementaryschools.TheDistrictdoesanticipatereceivingStatematchingfundsthatwouldreducefuturebondsaleamountsorbeappliedtonewK-12constructionprojectsincludedinthisPlan.TheDistrictalsoanticipatesthatitwillreceive$500,000inimpactfeesandmitigationpaymentsthatwillbeappliedtocapitalprojects.TheDistrictprojects20,472FTEstudentsforthe2018-2019schoolyearand21,862FTEstudentsinthe2023-2024schoolyear.Growthwillbeaccommodatedbytheplannedfacilities.Pertheformulaintheadoptedschoolimpactfeeordinance,halfoftheunfundedgrowth-relatedneedisassignedtoimpactfeesandhalfisthelocalshare.TABLEFOUR:PROJECTEDCAPACITYTOHOUSESTUDENTSIProjectedCapacitytoHouseStudentsYears2018-192019-202020-212021-222022-232023-24PermanentCapacity178261834818348190282215822158HighSchool561600MiddleSchool346850ElementarySchool120680680Grosslotals183481834819028221582215822158*Subtotal(Sumat95%UtilizationRate)174311743118077210502105021050Portables@95%419541954195419541954195TotalCapacity216262162622272252452524525245ProjectedFTEEnrollment**204722089621199214182157121862PermanentCapacity@95%(surplus/deficit)-3041-3465-3122-368-521-812PermanentCapw/Portables(surplus/deficit)11547301073382736743383*PermanentCapacityandNewConstructioncalculationsarebasedonthe95%utilizationfactors(seeAppendixD)Thenun-betofplannedportablesmaybereducedWpermanentcapacityisincreasedbyafuturebondissue.14AGENDA ITEM #1. a) ISCHOOLIMPACTFEECALCULATIONSIDISTRICTIssaquahSD#411YEAR2016SchoolSiteAcquisitionCost:((AcresxCostperAcre)/FacilityCapacity)xStudentGenerationFactorElementaryMiddlelJrHighHighFacilityAcreage7.0010.0030.00Cost?Acre$1,000,000$1,000,000$1,000,000FacilityCapacity680850’1,600’%Perm/TotalSq.Ft.92.37%92.37%92.37%%TemplTotalSq.Ft.7.63%7.63%7.63%StudentFactorSFR0.3430.158’0.261TOTALSchoolConstructionCost:((FacilityCost]FacilityCapacity)xStudentGenerationFactor)x(Permanent/TotalSqFt)StudentFactorSFR0.343’0.158’0.261ElementaryMiddle/JrHighHighFacilityCost$30,000,000$55,000,000$95,000,000FacilityCapacity,6808501,600’TOTALStudentFactorMFR0.1100.0580.072StudentFactorMFR0.1100.0580.072TemporaryFacilityCost:((FacilityCost/FacilityCapacity)xStudentGenerationFactor)x(Temporary/TotalSquareFeet)StudentStudentFacilityFactorFactorSizeSFRMFR800.3430.110560.1580.0582240.2610.072ElementaryMiddle/JrHighHighFacilityCost$250000$250,000$250,000StateMatchingCredit:AreaCostAllowancexSPISquareFootagexDistrictMatch¾xStudentFactorStudentFactorSFR0.3430.1580.261ElementaryMiddle/JrHighHighSchoolCurrentAreaCostAllowance$225.97$225.97$225.97SPIFootage90108130TaxPaymentCredit:AverageAssessedValueCapitalBondInterestRateNetPresentValueofAverageDwellingYearsAmortizedPropertyTaxLevyRatePresentValueofRevenueStreamFeeSummary:SiteAcquistionCostsPermanentFacilityCostTemporaryFacilityCostStateMatchCreditTaxPaymentCreditDistrictMatch¾8.00%0.00%0.00%SingleFamily$10,298.78$37,790.93$158.05($558.85)($9,497.93)TOTALTOTALStudentFactorMFR0.1100.0580.072MultiFamily$3,157.92$11,876.49$52.08($179.28)($3,908.94)FEE(ASCALCULATED)$38,190.99$10,998.27$22,914.59$6,598.96$15,276Eachcityorcountysetsandadoptstheamountoftheschoolimpactfee.$4,399Fortheapplicablefeeschedule,pleaseconsultwiththepermittingjurisdictionforthedevelopmentproject.Cost?SFR$3,536$1,861$4,902$10,299Cost?SFR$13,998$9,456$14,338$37,791Cost?SFR$82$54$22$158Cost?SFR$559$0$0$559SFR$780,0543.85%$6,374,44710$1.49$9,498Cost?MFR$1134$681$1,343$3,158Cost?MFR$4,491$3,458$3,928$11,876Cost?MFR$26$20$6$52Cost?MFR$179$0$0$179MFR$321,0363.85%$2,623,44610$1.49$3,909LocalShareFINALFEE15AGENDA ITEM #1. a) BASISFORDATAUSEDINSCHOOLIMPACTFEECALCULATIONSISCHOOLSITEACQUISITIONCOST:•ElementaryTwonewsitesareplannedforpurchase•MiddleSchoolOnenewsiteisplannedforpurchase•HighSchoolOnenewsiteisplannedforpurchaseSCHOOLCONSTRUCTIONCOST:•Elementary$30,000,000istheproportionalcostoftheprojectprovidingadditionalelementarycapacity•MiddleSchool$55,000,000istheproportionalcostsoftheprojectsprovidingadditionalmiddleschoolcapacity•HighSchool$95,000,000istheproportionalcostoftheprojectprovidingadditionalhighschoolcapacityPERCENTAGEOFPERMANENTANDTEMPORARYSQUAREFOOTAGETOTOTALSQUAREFOOTAGE:TotalSquareFootage2,634,410PermanentSquareFootage(OSPI)2,459,774TemporarySquareFootage187,572STATEMATCHCREDIT:CurrentAreaCostAllowance$225.97PercentageofStateMatch39.54%16AGENDA ITEM #1. a) .APPENDIX A 7 201 7-18 ELEMENTARY SCHOOL CAPACITIES o•I /11/o4i/,/I / /,/ 72/1/ ////%h’ i//i i// iI’/Q// //j !I I I4//i’ll/I I//I I /ii’ // k /k APOLLO 26 520 4 48 568 540 7 140 708 673 0 0 708 7 663 -123 10 BRIARWOOD 28 560 2 24 584 555 12 240 824 783 0 0 824 12 696 -141 87 CASCADE RIDGE 23 460 3 36 496 471 8 160 656 623 0 0 656 8 496 -25 127 CHALLENGER 20 400 5 60 460 437 16 320 760 741 0 0 780 16 591 -154 150 CLARK 31 620 3 36 656 623 10 200 856 813 0 0 856 10 792 -169 21 COUGAR RIDGE 27 540 3 36 576 548 8 160 736 699 0 0 736 8 598 -51 101 CREEKSIDE 27 540 3 36 576 546 10 200 776 737 0 0 776 10 736 -189 1 DISCO\ERY 22 440 3 36 476 452 8 160 636 604 0 0 636 8 638 -186 -34 ENDEA’VOUR 22 440 3 36 476 452 10 200 676 642 0 0 676 10 637 -185 5 GRAND RIDGE 27 540 3 36 576 547 12 240 816 775 0 0 816 12 736 -189 39 ISSN3UAH VALLEY 29 580 0 0 580 551 10 200 780 741 0 0 780 10 671 -120 70 MAPLE HILLS 19 380 3 36 416 395 4 80 496 471 2 40 536 6 443 48 28 NEMDASTLE 24 480 3 36 516 490 8 160 676 642 0 0 676 8 660 -170 -18 SUNNYHILLS 38 760 1 12 772 733 2 40 812 771 8 160 972 8 723 10 48 SUNSET 25 500 5 60 560 532 4 80 640 608 4 80 720 8 578 46 30 TOTAL 3881 77601 441 528 8288 7872 1291 25801 1086811 10325fl 14 2801 111481 1411 9658 -1784 667 *Mnus excluded spaces for special program needs**Average of staffing ratios 1:20 K-2,1:23 3-5***rnent Capacity x 95%(utilization factor)Mnus Headcount Birollrrent•***Xim Capacity x 95%(utilization factor)Mnus Headcount B,rollnent Per,ienent capacity reflects the buildings level of service design capacity.The rrexirrem capacity includes the perrmnent capacity plus the nexirnim nunter of classrooee served in portables. /1’ 17 AGENDA ITEM #1. a) APPENDIXBI2017-2018MIDDLESCHOOLCAPACITIES%lnusexcludedspacesforspecialprogramneedsCapacityx95%(utilizationfactor)Ninushioadcount&irollrrent•**NlimmCapacityx95%(utilizationfactor)MnushioadcountB,rollnentFèrnanentcapacityreflectsthebuildingslevelofservicedesigncapacity.Therraxirmimcapacityincludesthepereenentcapacityplusthermxirrumnunterofclassroomservedinportables.18AGENDA ITEM #1. a) APPENDIX C I 201 7-2018 HIGH SCHOOL CAPACITIES /,%/ £ _ 1/ ____i7, //17 / _ /)%: C., I f/f ISSPUH HIGH 78 2184 2 24 2208 2098 10 280 2488 2364 2 56 2540 12 2219 -121 145 LIBERTYHIGH 39 1092 4 48 1140 1083 8 224 1364 1296 6 168 1532 14 1313 -230 -17 GIBSON EK HIGH 9 252 1 12 264 251 0 0 264 251 0 0 264 0 209 42 42 SKYLINE HIGH 69 1932 3 36 1968 1870 16 448 2416 2295 0 0 2416 16 2039 -169 256 TOTAL 1951 54601 101 120 5580 952 6532 6205 81 2241 67521421 5780 479 425 *gj excluded spaces for special program needs **Headcount Birollrrent Conpared to Frrrenent Capacity x 95%(utilization factor) Headcount rrolIrrent Conpared to Maxinijm Capacity x 95%(utilization factor) Frnanent capacity reflects the building’s level of service design capacity. The rmxirn.Jm capacity includes the perrrnent capacity plus the rmxinvm nur,ter of classroorre served in portables. 19 AGENDA ITEM #1. a) UxUzw000LUI0a0JI0ICo0F.0C10xCa)aaE>,Ucia)+-aCa)aa.2CDCDC’)C’)CDa)CDICD c.’lAGENDA ITEM #1. a) I APPENDIXE I Six-Year Finance Plan Cost to SECURE)UNSECURE) BUILDING NIM*2018 2019 2020 2021 2022 2023 Cotrplete LOCAUSTATE*LOCAL New High School N $15,000,000 $35,000,000 $40,000,000 $19,000,000 $10,000,000 ‘$119,000,000 $119,000,000 New Mddle School N $6,000,000 $27,000,000 $30,000,000 $10,000,000 ,$73,000,000 $73,000,000 New Berrntary #16 N $4,000,000 $16,000,000 $15,500,000 $35,500,000 $35,500,000 New Benentary #17 N $4,000,000 $15,000,000 $14,000,000 $4,000,000 ,$37,000,000 $37,000,000 Rebuild/Expand FIne Lake Md M $33,000,000 $6,000,000 ,$39,000,000 $39,000,000 Expand Cougar Ridge 8 M $3,000,000 ,$3,000,000 $3,000,000 Expand Discovery B M $3,000,000 $5,000,000 ,$8,000,000 $8,000,000 Expand Endeavour B M $3,000,000 $6,000,000 $9,000,000 $9,000,000 Expand Maple Hills H M $1,000,000 $4,000,000 $2,000,000 $7,000,000 $7,000,000 Expand Sunset B M $4,000,000 $4,000,000 $4,000,000 Fkrtables N $1,000,000 $1,000,000 $1,000,000 $1,000,000 $4,000,000 $4,000,000 $500,000 Land N $80,000,000 $10,000,000 ‘$90,000,000 $90,000,000 TOTALS $36,000,0001 siooooooof $0 $428,500,000 $428500000[$500,000 *N =New Construction M =Madernization/Rebuild The lssaquah School District,with voter approval,has front funded these prOjects. School inact fees may be utilized to offset front funded expenditures associated with the cost of new growth-related facilities. krpact fees are currently collected from King County,City of Bellevue,City of New castle,City of Renton,City of SanuBnish and the City of issaquah for projects within the issaq.School District.****Funds for portable purchases may cone from iripact fees,state matching funds,interest earnings or future bond sale elections. 21 AGENDA ITEM #1. a) AGENDA ITEM #1. a) 2018-2019 - 2023-2024 April 2018 AGENDA ITEM #1. a) AGENDA ITEM #1. a) 1AGENDA ITEM #1. a) 2AGENDA ITEM #1. a) 3AGENDA ITEM #1. a) 4AGENDA ITEM #1. a) 5AGENDA ITEM #1. a) 6AGENDA ITEM #1. a) 7AGENDA ITEM #1. a) 8AGENDA ITEM #1. a) 9AGENDA ITEM #1. a) 10AGENDA ITEM #1. a) 11AGENDA ITEM #1. a) 12AGENDA ITEM #1. a) 13AGENDA ITEM #1. a) 14AGENDA ITEM #1. a) 15AGENDA ITEM #1. a) 16AGENDA ITEM #1. a) 17AGENDA ITEM #1. a) 18AGENDA ITEM #1. a) 19AGENDA ITEM #1. a) 20AGENDA ITEM #1. a) 21AGENDA ITEM #1. a) 22AGENDA ITEM #1. a) 23AGENDA ITEM #1. a) 24AGENDA ITEM #1. a) 25AGENDA ITEM #1. a) 26AGENDA ITEM #1. a) 27AGENDA ITEM #1. a) 28AGENDA ITEM #1. a) 29AGENDA ITEM #1. a) 30AGENDA ITEM #1. a) 31AGENDA ITEM #1. a) 32AGENDA ITEM #1. a) 33AGENDA ITEM #1. a) 34AGENDA ITEM #1. a) 35AGENDA ITEM #1. a) 36AGENDA ITEM #1. a) 37AGENDA ITEM #1. a) 2018 CAPITAL FACILITIES PLAN Renton School District No. 403 Board of Directors Lynn Desmarais, President Gloria Hodge, Vice President Dr. Avanti Berquist Alisa Louie Pam Teal Dr. Damien Pattenaude, Superintendent May 2018 Approved by the Renton School District Board of Directors on June 6, 2018 AGENDA ITEM #1. a) AGENDA ITEM #1. a) 2018 CAPITAL FACILITIES PLAN Renton School District No. 403 TABLE OF CONTENTS I. EXECUTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. CAPACITY METHODOLOGY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 III. INVENTORY AND CAPACITY OF FACILTIES . . . . . . . . . . . . . . . . . . . 9 IV. ENROLLMENT PROJECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 V. ENROLLMENT DRIVEN FACILITY NEEDS . . . . . . . . . . . . . . . . . . . . 15 VI. SIX-YEAR FINANCE PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 VII. IMPACT FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 VIII. APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 AGENDA ITEM #1. a) AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 1 - I. EXECUTIVE SUMMARY This Six-Year Capital Facilities Plan (the “Plan”) was prepared by Renton School District (the “District”) in compliance with the requirements of the Washington State Growth Management Act (GMA, the Act), King County Code Title 21A.43, and applicable ordinances of the cities of Bellevue, Newcastle and Renton. It is the District’s intent that the Plan be adopted by King County and the cities of Bellevue, Newcastle and Renton as a sub-element of their respective Capital Facilities Plans, and that that those jurisdictions assess and collect school impact fees on behalf of the District, as empowered by the GMA. This Plan, however, is not intended to be the sole planning instrument developed by the District to determine its capital facility needs. The GMA was adopted by the State legislature in 1990 in response to rapidly increasing development; most notably in King County and the surrounding central Puget Sound area. The Act requires state and local governments to manage Washington’s growth by developing and implementing comprehensive land-use and transportation plans, by designating Urban Growth Areas, and by protecting natural resources and environmentally critical areas. The Capital Facilities Plan is one element of a County or City’s Comprehensive Plan that addresses existing public facility capacities, forecasts future public facility needs, presents a plan for expanding existing facilities or constructing new facilities to meet those needs, and indicates how those public facility improvements are to be financed. The GMA empowers jurisdictions to assess and collect impact fees as one means of financing new public facilities necessitated by private development. This Capital Facilities Plan addresses the impact of growth on public school facilities by examining: 1. anticipated growth of the District’s student population over the next six years; 2. the ability of existing and proposed classroom facilities to adequately house those students based on the District’s current Standard of Service; 3. the need for additional enrollment driven capital facilities; 4. the method of financing those capital improvements; and 5. calculation of school impact fees based on, among other variables, the number of students generated by recent residential development (student generation factors). This plan is updated annually and submitted to local governments for inclusion as a sub- element in their Capital Facilities Plans. Past Plans have been adopted by King County and the Cities of Bellevue, Newcastle and Renton. The District is currently engaged in AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 2 - dialogue with the cities of Tukwila and SeaTac regarding implementation of impact fees within their jurisdictions. Enrollment Projections: Enrollment projections provided by the Office of Superintendent of Public Instruction (OSPI), as adjusted by Renton School District, indicate a moderate overall increase in K-12 enrollment of 2.9% over the next six years. While there is a 10.8% increase at the high school level over this period of time, the projections show a decrease of 2.2% at grades K- 5, with an increase of 4.5% at the middle schools. The total net increase in student enrollment over the next six years is projected to be 448 students. A 2015 independent study of enrollment trends and projections prepared by Educational Data Solutions for Renton School District, reports less conservative outcomes. Taking into account King County birth rates, population growth and housing starts, K – 12 student enrollment over the next six years is projected to increase by as much as 2,560 on the high end, to as few as 1,203 on the low end, with a recommended projection of 1,851 additional students. For the purposes of this Capital Facilities Plan we used the more conservative projections based on OSPI’s cohort survival method. Current Capacity: Student capacity of existing, permanent K-12 facilities, excluding special education facilities and facilities housing alternative learning environments, is 14,302. Based on current enrollment (October 1, 2017 headcount), the District is showing a permanent facility deficit of 1,244 at the elementary level. While the opening of the new Sartori Elementary School this fall will greatly reduce that number, the remaining deficit will still equal the capacity of one elementary school. With the opening of Risdon Middle School this school year, middle school capacity now exceeds current student enrollment, but only by a margin of 50, while high school capacity continues to exceed enrollment, with an excess of 222. Elementary school capacity is the District’s greatest challenge. Relying heavily on the use of relocatable classrooms (portables) to accommodate the ever-increasing and fluctuating student population, portables at elementary schools now accounting for over 23% of the District’s total K – 5 facility capacity. Portables are, however, not considered permanent structures and are not included in the inventory of permanent facilities. They are viewed as a short-term solution for managing enrollment fluctuation and housing students on a temporary basis, until permanent facilities can be constructed. They are not considered a long-term solution. Enrollment Projections and Future Capacity: Based on OSPI’s conservative projections, K-12 enrollment growth will be slowing down, with an overall increase of 448 students over the next six years. While high school and middle school enrollment show increases of 464 and 166, respectively, elementary enrollment shows a decrease of 166 students over the same period of time. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 3 - The current high school surplus capacity of 222 will be constantly decreasing until the school year 2022-23, when a deficit of 124 is projected. Similarly, the surplus capacity at the middle school level may become a deficit as soon as the 2018-2019 school year. Options on addressing mitigation of secondary facility deficits will need to be considered, but are not addressed in this Plan. Even with the opening of the new Sartori Elementary School, scheduled for the 2018-19 school year, and the decrease in elementary enrollment foreseen by the enrollment projections, a significant deficit exists, and will continue to exist, at elementary schools. The challenge of adequately housing grades K – 5 is further aggravated by the forthcoming reduction in K-3 class size. Without the addition of any new facilities, we are looking at a 2024 deficit of 1,360, the equivalent of two elementary schools. Capital Construction Plan: For the next six years, one of the District’s highest priority will be the construction of new school facilities to accommodate past and projected growth, recognizing and acknowledging the major capacity deficit at the elementary school level. This includes:  Completion of Sartori Elementary School, the District’s first urban elementary school, funded by the 2016 Capital Levy, a STEM school, drawing students from throughout the District.  Acquisition of land for future development.  Construction of an additional elementary school, and/or expansion of existing elementary school campuses.  Acquisition of additional relocatable classrooms (portables) and/or the redistribution of existing relocatables, as necessary. Other high priority capital improvements will fall into one or more of the following major categories; Safety and Security, Energy Conservation, Site Improvements, and Building Upgrades. Improvements will occur district-wide, affecting nearly all District facilities, achieving and maintaining the level of service necessary to provide safe, healthy, and nurturing learning environments for all students. Not all of these projects are enrollment driven. The District will also be exploring options for future expansion of its high school facilities. As an alternative to constructing a fourth high school, the feasibility of expanding existing facilities at the Lindbergh High School and Renton High School sites will be considered. Finance Plan: The primary funding sources for capital facilities projects over the next six years include remaining funds from the 2012 bond measure and 2016 capital levy; school impact fees currently being collected by King County and the cities of Bellevue, Newcastle and Renton; state funding available through the Office of Superintendent of Public Instruction; and, future bond initiatives. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 4 - Estimated expenditures for enrollment driven projects are over the next six years are $92,300,000, of which approximately 32% are secured by the 2012 Bond and 2016 Capital Levy, Impact Fees, and State Construction Assistance Program. The remaining 68% is unsecured. Impact Fees: Impact fees were calculated in conformance with King County Council Ordinance 11621, Attachment A. One factor contributing to the increase in the multi-family fee while reducing of the single-family fee was the change in the overall student generation factors (SGF). While the SFG for single-family homes increased by a healthy 10.11%, the multi- family GFC jumped 66% above the previous year’s factor. A comparison of current and last year’s fees is shown below. 2017 2018 Change Single-Family $7,772 $6,877 ($ 895) Multi-Family $1,570 $2,455 $885 AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 5 - II. CAPACITY METHODOLOGY STANDARD OF SERVICE The Renton School District Standard of Service is the standard adopted by the District that identifies the program year, school organizational structure, student/teacher ratios by grade level (taking into account the requirements of students with special needs), daily class schedule, types of facilities and other factors identified by the District to be beneficial in supporting its educational programs and objectives. The Standard of Service is the major determining factor, together with the number of classrooms (or teaching stations) in calculating facility capacity. The District has adopted a traditional elementary/middle/high school organizational structure that houses kindergarten through Grade 5 in elementary schools, Grades 6 through 8 in middle schools, and Grades 9 through 12 in high schools. The school-year calendar adopted by the District is also traditional; typically beginning in late August and ending in mid-June. Similarly, the District maintains a fairly traditional daily schedule, with classes beginning between 7:20 and 9:30 a.m. and ending between 2:03 and 3:10 p.m., depending on grade level. The District and the Renton Education Association recognize that reasonable class size is necessary for optimum learning, and have established the following student/teacher ratios: Grade Levels K-1 20:1 Grade Level 2 22:1 Grade Level 3 24:1 Grade Levels 4-12 29:1 The 29:1 ratio at the secondary level applies to all Language Arts, Social Studies, Science, Math, World Languages, World Language Exploratory and Health classes. Other ratios apply as follows: Band/Orchestra 40:1 Choir 50:1 Middle School PE 35:1 High School PE 40:1 All other classes 31:1 For the purposes of this report, the student /teacher ratio for special education classes held in self-contained classrooms within comprehensive elementary and secondary facilities is assumed to be 12:1. Educational facilities dedicated solely to special education or other AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 6 - specialized programs are excluded from capacity calculations, as are associated student headcounts. In response to new State and District graduation requirements, beginning with the 2018- 2019 school year, all District high schools will change from the current semester system to a trimester system, initiating the following changes:  Three 12-week terms instead of two 18-week terms  Five 72-minute periods per day instead of six 57-minute periods  Reduction of classroom efficiency from 82% to 80%, reducing facility capacity Student/teacher ratios referenced above are applicable to both permanent and relocatable classrooms. However, inasmuch as relocatable facilities do not generally allow for the full range of educational activities promoted by the District, they are generally viewed as temporary or interim housing, necessary to accommodate enrollment fluctuations and development driven enrollment increases, but only until such time as permanent facilities can be financed and constructed. For those reasons, relocatable classrooms capacities are calculated, but not used in the analysis of future facility needs. PRACTICAL CAPACITY MODEL The Practical Capacity Model calculates building capacity based on limitations that existing facilities place on enrollment as a result of current educational program needs, operating policy and contractual restrictions. The calculation is made by reviewing the use of each room in each facility. For every room housing students, a calculation is made, assigning a maximum number of students per room. Sometimes the capacity of core facilities, such as the cafeteria or gym, or the quantity of restroom fixtures, may limit facility capacity to a level below that calculated by collective classroom capacity levels. Capacity at the secondary school level is further limited by class scheduling restrictions and student distribution among elective classes. Based on a typical six-period day, if classrooms are utilized by staff for planning, then capacity is reduced by 17 percent (one- sixth) of theoretical capacity. Since secondary schools offer a variety of elective courses, it is not practical to assume that these classrooms will reach 100 percent of their maximum capacity, without compromising the curriculum. Another factor that has influenced facility capacity at the elementary school level is the transition from half-day to full-day kindergarten. Beginning with the 2014-2015 school year, all kindergarten classes throughout the District were extended to full-day. This change alone resulted in a decreased elementary school capacity of 692, the equivalent of more than one entire elementary school. This change was mitigated primarily by providing additional temporary, relocatable classrooms throughout the District, and by converting other specialized educational spaces, such as computer labs, into traditional K–5 classrooms. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 7 - In addition to full-day kindergarten, reduced student/teacher ratios as prescribed by the McCleary Act will significantly impact building capacity for grades K-3. A recent survey conducted as part of the K-3 Classroom Reduction Grant Program, authorized by SSB 6080 and validated under the auspices of OSPI, indicated that Renton School District will require an additional 42 classrooms to meet the required K-3 student/teacher ratio of 17:1. This Plan assumes that, beginning in 2020, the District Standard of Service will include a K -3 student teacher ratio of 17:1. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 8 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 9 - III. INVENTORY AND CAPACITY OF FACILITIES Renton School District’s capital facilities include both permanent structures and relocatable (portable) classrooms. Permanent facilities are further categorized as either K-12 (traditional elementary, middle and high school configurations), Special Instructional Use or Non-instructional Support Facilities. The District maintains a total of 30 permanent and 55 relocatable facilities serving a total student population of 15,453 (October 2016 headcount). The District’s permanent K-12 facilities include 14 elementary schools, 4 middle schools, and 4 high schools. Two Special Instructional Use facilities house the District’s early childhood, special education and alternative learning programs. Support facilities include the Kohlwes Education Center (admin.), Transportation Center, Facilities Operations and Maintenance Center, Nutrition Services/Warehouse, Renton Memorial Stadium and the Lindbergh Swimming Pool. Total permanent facilities encompass 2,518,466 square feet, with 2,240,456 square feet (93%) devoted to K-12 and instructional special use. See Appendix A for District Maps. The District’s relocatable K-12 facilities are used primarily to address enrollment fluctuations and to house students on a temporary basis until permanent facilities can be constructed. For those reasons they are not considered a long-term solution for housing students, and are not acknowledged in the calculation of the capacity of K-12 facilities. Of the 55 relocatable facilities in the District’s inventory, 44 are “double portables” containing two classrooms, and 11 are singles. Combined, they provide the District with a total of 99 relocatable classrooms encompassing 88,720 square feet of additional instructional space. Table 1 below summarizes existing K-12 facility capacity. A complete inventory of District facilities, including undeveloped property, follows. Facility capacity worksheets may be found in Appendix B. Type Elementary Schools Middle Schools High Schools Total Permanent 6,384 3,408 4,510 14,302 Relocatable 1,943 552 120 2,615 Total 8,327 3,960 4,630 16,917 EXISTING FACILITY CAPACITY Table 2 AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 10 - INVENTORY AND CAPACITY OF PERMANENT FACILITIES NAME LOCATION AREA (ft2)CAPACITY Benson Hill 18665 - 116TH Ave. SE, Renton, WA 98058 67,533 536 Bryn Mawr 8212 S 118th St., Seattle, WA 98178 49,157 358 Campbell Hill 6418 S 124th St., Seattle, WA 98178 57,072 356 Cascade 16022 - 116th Ave. SE, Renton, WA 98058 59,164 386 Hazelwood 7100 - 116th Ave. SE, Newcastle, WA 98056 66161 597 Highlands 2727 NE 7th St., Renton, WA 98056 60,000 567 Honey Dew 800 Union Ave. NE, Renton, WA 98059 54,620 324 Kennydale 1700 NE 28th st., Renton, WA 98056 65,169 648 Lakeridge 7400 S 115th St., Seattle, WA 98178 52,958 286 Maplewood Heights 130 Jericho Ave., Renton, WA 98059 56,220 456 Renton Park 16828 - 128th Ave. SE, Renton, WA 98058 65,955 536 Sierra Heights 2501 Union Ave. NE, Renton, WA 98058 53,992 478 Talbot Hill 2300 Talbot Road, Renton, WA 98055 57,844 480 Tiffany Park 1601 Lake Youngs Way, Renton, WA 98058 58,758 376 Total Grades K-5 Capacity 824,603 6,384 Dimmitt 12320 - 80th Ave. S, Seattle 98178 109,070 884 McKnight 2600 NE 12th St., Renton, WA 98056 126,706 872 Nelsen 2403 Jones Ave. S, Renton, WA 98055 124,234 791 Risdon 6928 - 116th Ave SE, Newcastle, WA 98056 136,582 861 Total Grades 6-8 Capacity 496,592 3,408 Hazen 1101 Hoquiam Ave. NE, Renton, WA 98059 327,395 1,420 Lindbergh 16426 - 128th Ave. SE, Renton, WA 98058 242,662 1,128 Renton 400 S 2nd St., Renton, WA 98057 278,373 1,524 Talley 7800 S 132nd St., Renton, WA 98178 70,831 438 Total Grades 9-12 Capacity 919,261 4,510 Total Grade Levels K-12 2,240,456 14,302 Meadow Crest ECC 1800 Index Ave. NE, Renton, WA 98056 68,752 464 HOME Program - Spring Glen 2607 Jones Ave. S, Renton, WA 98055 7,005 84 Renton Academy - Spring Glen 2607 Jones Ave. S, Renton, WA 98055 24,837 48 Total Instructional Special Use 100,594 596 Total Instructional Facilities 2,341,050 14,898 Facilities Operations Center 7812 S 124th St., Seattle, WA 98178 21,894 Kohlwes Educational Center 300 SW 7th St., Renton, WA 98055 57,000 Lindbergh Pool 16740 - 128th Ave. SE, Renton, WA 98058 13,600 Nutrition Services/Warehouse 409 S Tobin St., Renton, WA 98057 27,466 Renton Memorial Stadium 405 Logan Ave. N, Renton, WA 98055 37,213 Transportation Center 420 Park Ave. N, Renton, WA 98057 20,243 Total Support Services 177,416 Total All Permanent Facilities 2,518,466MIDDLE SCHOOLSELEMENTATY SCHOOLSHIGH SCHOOLSALT LEARNING SUPPORT SERVICES AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 11 - BLDG. ID LOCATION NUMBER OF CLASSROOMS SCHOOL NO(S). AREA (sq.ft.)STUDENT CAPACITY 53 McKnight Middle 2 7/8 1,792 48 54 Nelsen Middle 2 7/8 1,792 48 55 Nelsen Middle 2 5/6 1,792 48 56 Nelsen Middle 2 3/4 1,792 48 57 Nelsen Middle 2 1/2 1,792 48 59 Lindbergh High 1 2 896 24 60 Lindbergh High 1 3 896 24 61 Lindbergh High 1 4 896 24 62 Talbot Hill Elementary 1 2 896 29 64 Talbot Hill Elementary 1 1 896 29 65 Dimmitt Middle 1 3 896 24 66 Dimmitt Middle 1 4 896 24 69 Honey Dew Elementary 2 3A/3B 1,792 58 70 Talbot Hill Elementary 1 3 896 29 72 McKnight Middle 2 3/4 1,792 48 73 Lakeridge Elementary 2 5/6 1,792 58 74 Sierra Heights Elementary 2 5/6 1,792 58 77 McKnight Middle 2 5/6 1,792 48 78 McKnight Middle 2 1/2 1,792 48 79 Dimmitt Middle 2 1/2 1,792 48 80 Honey Dew Elementary 2 2A/2B 1,792 58 81 Cascade Elementary 2 1/2 1,792 58 82 Sierra Heights Elementary 2 1/2 1,792 58 83 Lindbergh High 2 5 1,792 48 84 Maplewood Heights Elementary 2 5/6 1,792 58 85 Dimmitt Middle 1 5 896 24 86 Dimmitt Middle 1 6 896 24 87 Dimmitt Middle 1 7 896 24 88 Bryn Mawr Elementary 2 1/2 1,800 58 89 Bryn Mawr Elementary 2 3/4 1,800 58 90 Honey Dew Elementary 2 4A/4B 1,792 58 91 Honey Dew Elementary 2 1A/1B 1,792 58 92 Tiffany Park Elementary 2 1/2 1,792 58 93 Spring Glen 2 1/3 1,792 48 94 Spring Glen 2 2/4 1792 48 95 Campbell Hill Elementary 2 2A/2B 1,792 58 96 Campbell Hill Elementary 2 1A/1B 1,792 58 97 Cascade Elementary 2 3/4 1,792 58 98 Cascade Elementary 2 5/6 1,792 58 99 Lakeridge Elementary 2 7/8 1792 58 100 Lakeridge Elementary 2 3/4 1,792 58 101 Campbell Hill Elementary 2 3A/3B 1,792 58 102 Campbell Hill Elementary 2 4A/4B 1,792 58 103 Maplewood Heights Elementary 2 1/2 1,792 58 104 Maplewood Heights Elementary 2 3/4 1792 58 105 Maplewood Heights Elementary 2 7/8 1,792 58 106 Sierra Heights Elementary 2 3/4 1,792 58 107 Sierra Heights Elementary 2 7/8 1,792 58 108 Tiffany Park Elementary 2 3/4 1792 58 109 Bryn Mawr Elementary 2 5/6 1,792 58 110 Hazelwood Elementary 2 1A/1B 1792 58 111 Maplewood Heights Elementary 2 9/10 1792 58 112 Maplewood Heights Elementary 2 11/12 1792 58 113 Talbot Hill Elementary 2 1A/1B 1792 58 114 Talbot Hill Elementary 2 2A/2B 1792 58 Total 99 88,720 2,711 INVENTORY AND POTENTIAL CAPACITY OF RELOCATABLE CLASSROOMS AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 12 - LOCATION ADDRESS RELOCATABLE FACILITY ID AREA (sq. ft.)CAPACITY ELEMENTARY SCHOOLS Bryn Mawr 8212 S 118th St., Seattle 98178 88, 89, 109 5,392 174 Campbell Hill 6418 S 124th St., Seattle 98178 95, 96, 101, 102 7,168 232 Cascade 16022 116th Ave. SE, Renton 98058 81, 97, 98 5,376 174 Hazelwood 7100 116th Ave. SE, Newcastle 98056 110 1,792 58 Honeydew 800 Union Ave. NE, Renton 98059 69, 80, 90, 91 7,168 232 Lakeridge 7400 S 115th St., Seattle 98178 73, 99, 100 5,376 174 Maplewood Heights 130 Jericho Ave. SE, Renton 98059 84, 103, 104, 105, 111, 112 10,752 348 Sierra Heights 2501 Union Ave. NE, Renton 98059 74, 82, 106, 107 7,168 232 Talbot Hill 2300 Talbot Rd. S, Renton 98055 62, 64, 70, 113, 114 6,272 203 Tiffany Park 1601 Lake Youngs Way SE, Renton 98058 92, 108 3,584 116 Elementary School Total 60,048 1,943 MIDDLE SCHOOLS Dimmitt 12320 80th Ave. S, Seattle 98078 65, 66, 79, 85, 86, 87 6,272 168 McKnight 1200 Edmonds Ave. NE, Renton 98056 53, 72, 77, 78 7,168 192 Nelsen 2403 Jones Ave. S, Renton 98055 54, 55, 56, 57 7,168 192 Middle School Total 20,608 552 HIGH SCHOOLS Lindbergh 16426 128th Ave. SE, Renton 98058 59, 60, 61, 83 4,480 120 High School Total 4,480 120 INSTRUCTIONAL SPECIAL USE Spring Glen 2706 Jones Ave. S, Renton 98055 93, 94 3,584 96 Special Education Total 3,584 96 TOTAL ALL RELOCATABLE CLASSROOMS 88,720 2,711 RELOCATABLE FACILITY CAPACITY BY SITE UNDEVELOPED PROPERTY Skyway Site 4.18 acres NW corner S Langston Rd. & 76th Ave. S AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 13 - IV. ENROLLMENT PROJECTIONS Renton School District six-year enrollment projections through the 2023-24 school year are based on data published by the Office of the Superintendent of Public Instruction (OSPI). OSPI utilizes the cohort survival method to forecast student enrollment projections for a six-year period based on actual student headcounts documented for the previous six years. Enrollment reports prepared by the District are submitted to OSPI on a monthly basis. The District’s October 1, 2016 Enrollment Report and OSPI Report No. 1049, dated March 12, 2018, are included in Appendix C. Renton School District six-year enrollment projections, found on the following page, reflect adjustments to OSPI’s report based on the following: 1. Report structure has been modified to reflect middle school versus junior high school grade level configuration. 2. Headcount includes only K-12 students attending comprehensive instructional facilities and excludes students attending special education facilities or facilities dedicated to alternative learning experiences. As shown in Table 3 below, current projections indicate a modest overall increase in student enrollment of 2.9% over the next six years. This includes a substantial 10.8% increase in enrollment at the high school level, offset by a 2.2% decrease at the elementary grade levels K – 5. Middle school grade levels 6 – 8 should experience a moderate increase of 4.5% over the same period of time. OCT. 2017 HEADCOUNT 2023-24 PROJECTION ENROLLMENT INCREASE PERCENT INCREASE ELEMENTARY 7,628 7,462 -166 -2.2 MIDDLE 3,358 3,508 150 4.5 HIGH 4,288 4,752 464 10.8 TOTAL 15,274 15,722 448 2.9 PROJECTED ENROLLMENT GROWTH Table 3 ` AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 14 - - - HEADCOUNT - -AVE. % Oct. 2017 SURVIVAL 2018 2019 2020 2021 2022 2023 Kindergarten 1,248 1,262 1,256 1,251 1,245 1,239 1,233 Grade 1 1,278 102.19 1,275 1,290 1,284 1,278 1,272 1,266 Grade 2 1,248 98.95 1,265 1,262 1,276 1,270 1,265 1,259 Grade 3 1,330 98.52 1,230 1,246 1,243 1,257 1,251 1,246 Grade 4 1,297 98.44 1,309 1,210 1,226 1,224 1,238 1,232 Grade 5 1,227 99.05 1,285 1,297 1,199 1,215 1,212 1,226 Total K - 5 7,628 7,625 7,561 7,479 7,489 7,477 7,462 Grade 6 1,126 96.81 1,188 1,244 1,255 1,161 1,176 1,174 Grade7 1,134 99.92 1,125 1,187 1,243 1,254 1,160 1,175 Grade 8 1,098 100.01 1,134 1,125 1,187 1,243 1,255 1,160 Total 6 - 8 3,358 3,447 3,556 3,685 3,658 3,590 3,508 Grade 9 1,086 102.35 1,124 1,161 1,152 1,215 1,272 1,284 Grade 10 1,076 99.70 1,083 1,120 1,157 1,148 1,211 1,268 Grade 11 1,015 91.00 979 985 1,020 1,053 1,045 1,102 Grade 12 1,111 105.01 1,066 1,028 1,035 1,071 1,106 1,097 Total 9 - 12 4,288 4,252 4,295 4,363 4,487 4,634 4,752 Total K -12 15,274 15,324 15,411 15,528 15,634 15,702 15,722 CHANGE 50 87 116 107 68 20 % CHANGE 0.3%0.6%0.8%0.7%0.4%0.1% - - - - PROJECTED ENROLLMENTS - - - - ENROLLMENT PROJECTIONS BY COHORT SURVIVAL* (KK Linear Projection) RENTON SCHOOL DISTRICT No. 403 * Information adapted from OSPI Enrollment Projects Report No. 1049, January 13, 2017. Headcount and projections do not include enrollment at Special Use facilities. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 15 - V. ENROLLMENT DRIVEN FACILITY NEEDS Table 4 compares the current permanent capacity of Renton School District facilities to current and projected enrollment for the next six years. At the elementary level, the opening of the new Sartori Elementary School in October, 2018, will drastically reduce the current deficit of 1,244 to 506. Beginning in 2020, however, with the implementation of the reduced K-3 teacher/student ratio, the deficit will rise again to 1,377. Even with an overall decrease in elementary enrollment projected over the next six years, the permanent capacity deficit in 2023 is still anticipated to be 1,360. Opening of the new Risdon Middle School in 2017 resulted in a permanent capacity surplus of 50 for grade levels 6-8. By the start of the 2018 school year, however, we expect that surplus to become a deficit of 39, and by 2023, that deficit is anticipated to grow to 100. At the high school level, the District shows a decreasing surplus capacity until 2023, when enrollment finally overtakes capacity, resulting in a deficit of 73. In addition to the current and future projected permanent facility deficits, portable classroom capacity at existing elementary and middle school sites is reaching its maximum. 2017 2018 2019 20202 2021 2022 2023 PERMANENT CAPACITY 6,384 7,119 7,119 6,102 6,102 6,102 6,102 STUDENT ENROLLMENT 7,628 7,625 7,561 7,479 7,489 7,477 7,462 SURPLUS (DEFICIT) CAPACITY3 (1,244)(506)(442)(1,377)(1,387)(1,375)(1,360) PERMANENT CAPACITY 3,408 3,408 3,408 3,408 3,408 3,408 3,408 STUDENT ENROLLMENT 3,358 3,447 3,556 3,685 3,658 3,590 3,508 SURPLUS (DEFICIT) CAPACITY 50 (39)(148)(277)(250)(182)(100) PERMANENT CAPACITY 4,510 4,510 4,510 4,510 4,510 4,510 4,510 STUDENT ENROLLMENT 4,288 4,252 4,295 4,363 4,487 4,634 4,752 SURPLUS (DEFICIT) CAPACITY 222 258 215 147 23 (124)(242) PROJECTED STUDENT CAPACITY1 2017 - 2023 Table 4 1. Does not include relocatable facilities (portables) 2. Reflects implementation of reduced K-3 class size per 3. Includes Sartori Elementary, which opens September 2018 MIDDLE 6-8 ELEM. K-5 HIGH 6-8 While the projected deficits at the middle and high school levels may not warrant the construction of new facilities, expansion of existing campuses may be a viable alternative. At the elementary level, even ignoring the reduction of K-3 class sizes, a new elementary school seems eminent. Taking reduced class size into account, additional facilities will most likely be required. Renton School District is currently establishing a Citizen Facilities Advisory Committee whose responsibility it will be to develop recommendations for a long-term capital facilities plan. Integral to this plan will be the prioritization of facility needs to be presented to the Board of Directors for inclusion in a 2019 Bond measure. Among the topics to be addressed AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 16 - by the Committee will be enrollment driven needs as supported by this document and other data presented by the District and its consultants, the extent to which portables can be expected to accommodate future growth, and the need to acquire real property for future school construction. The bond measure is scheduled to go before the voters in February 2019. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 17 - VI. SIX-YEAR FINANCE PLAN Capital facilities capacity improvements identified in this Plan will be funded by a 2016 Capital Levy, remaining funds from a 2012 Bond measure, impact fees assessed and collected by King County and the cities of Bellevue, Newcastle and Renton, and possible future bond initiatives or other unsecured funding. The District may also be eligible for funding through the OSPI School Construction Assistance Program (SCAP). The District’s intent in structuring its capital improvement programs is to maintain a constant level of construction throughout the program period in order to optimize the utilization of its management capabilities. The District utilizes a combination of in-house project management (Capital Projects Office) and outside management consultants. Estimated expenditures for capacity improvement projects over the duration of the Plan are indicated in Table 5 below. SIX-YEAR FINANCE PLAN Capacity Improvement Projects PROJECT 2018-19 2019-20 2020-21 2021-22 2022-23 2022-23 Total Secured2 Unsecured3 Risdon Middle School 2,500 2,500 2,500 Sartori Elementary 19,500 2,500 22,000 22,000 Elementary No. 16 500 14,000 23,000 9,200 46,700 46,700 Relocatable Classrooms 2,540 1,270 1,270 5,080 2,540 2,540 Land Acquisition 2,670 2,670 2,670 2,670 2,670 2,670 16,020 2,900 13,120 Total 27,210 6,940 17,940 25,670 11,870 2,670 92,300 29,940 62,360 1. Estimated expenditures based on total project cost including hard and soft costs. 3. Unsecured funds include OSPI School Construction Assistance, future school impact fees and future bond initiatives. Funding ($1,000s)Estimated Expenditures1 ($1,000s) 2. Secured funding includes 2012 bond and 2016 levy monies, previously collected school impact fees, and OSPI SCAP funds. Table 5 AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 18 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 19 - VII. IMPACT FEES The GMA empowers jurisdictions to assess and collect impact fees as a means of supplementing the funding of additional public facilities necessitated by new development. In the case of public schools, impact fees are assessed only on residential development. To determine an equitable school impact fee throughout unincorporated King County, King County Code 21A was adopted, establishing an impact fee formula that has in turn been adopted by the cities of Bellevue, Newcastle and Renton, in their respective enabling ordinances. The formula requires that school districts establish “Student Generation Factors” that estimates the number of students generated by each new single or multi- family residential unit constructed, and to establish district-specific construction costs that are unique to that district. Refer to Appendix G for substantiating documentation on Student Generation Factors. Other factors influencing impact fees include: Site Acquisition Costs - the estimated cost per acre to purchase property. Building Acquisition Cost - the estimated cost to construct facilities unique to the district. New Facility Cost Models are provided in Appendix G. Temporary Facility Cost - the estimated cost per classroom to purchase and install a relocatable classroom, including site work and utilities. State Funding Assistance Credit - the amount of funding provided by the State, subject to District eligibility, based on a construction cost allocation and funding assistance percentage established by the State. Beginning in 2013, the District introduced a Voluntary District Fee Adjustment component into the prescribed impact fee formula in response to the declining, and then slowly recovering, economy. This was discontinued in 2016 given improved economic conditions, especially within the construction industry. Based on the Growth Management Act and King County Code 21A, impact fees for the plan year 2018 are: Single-Family Units $ 6,877 Multi-Family Units $ 2,455 Single-Family and Multi-Family Fee Calculation spreadsheets follow. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 20 - ((1 + i)t - 1 i (1 + i)t SITE ACQUISITION COST FACILITY SITE AREA COST PER ACRE STUDENTS STUDENT FACTOR COST A1 Elementary 8 650,000 600 0.359 $3,111 A2 Middle 0 650,000 850 0.128 $0 A3 High 0 650,000 1250 0.126 $0 A Total 0.613 $3,111 BUILDING ACQUISITION COST COST IN 2018 $ STUDENTS STUDENT FACTOR COST B1 Elementary 93.21%29,640,000 600 0.382 $17,589 B2 Middle 95.88%46,499,860 850 0.144 $0 B3 High 99.52%0 1250 0.149 $0 B Total 96.31%0.675 $17,589 TEMPORARY BUILDING ACQUISITION COST COST PER CLASS STUDENTS STUDENT FACTOR COST C1 Elementary 6.79%171,600 29 0.382 $153 C2 Middle 4.12%171,600 26 0.144 $39 C3 High 0.48%171,600 26 0.149 $0 C Total 3.69%0.675 $193 STATE FUNDING ASSISTANCE CREDIT COST INDEX SPI SQ FT MATCH %STUDENT FACTOR CREDIT D1 225.97 90 0.3822 0.382 ($2,969) D2 225.97 117 0.3822 0.144 $0 D3 225.97 130 0.3822 0.149 $0 D Total 0.675 ($2,969) TAX CREDIT (TC) * AVERAGE ASSESSED VALUE (AAV)427,300 INTEREST RATE FOR BONDS (i)3.85% TERM (t = MAXIMUM 10)10 TAX RATE (r)0.00119417 TC Total ($4,169.82)($4,170) FACILITY CREDIT $0 TOTAL FEE $13,754 50% DEVELOPER FEE OBLIGATION $6,877 IMPACT FEE $6,877 SINGLE-FAMILY RESIDENCE FEE CALCULATION * TAX CREDIT (TC) = NPV (net present value) x AAV x r where: NPV = AAV = Average Assessed Value r = Tax Rate i = Bond Interest Rate as of 03/2017 t = Bond Term AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 21 - ((1 + i)t - 1 i (1 + i)t SITE ACQUISITION COST FACILITY SITE AREA COST PER ACRE STUDENTS STUDENT FACTOR COST A1 Elementary 8 650,000 600 0.132 $1,144 A2 Middle 0 650,000 850 0.052 $0 A3 High 0 650,000 1250 0.065 $0 A Total 0.249 $1,144 BUILDING ACQUISITION COST COST IN 2018 $ STUDENTS STUDENT FACTOR COST B1 Elementary 93.21%29,640,000 600 0.132 $6,078 B2 Middle 94.59%46,499,860 850 0.052 $0 B3 High 99.52%0 1250 0.065 $0 B Total 96.75%0.249 $6,078 TEMPORARY BUILDING ACQUISITION COST COST PER CLASS STUDENTS STUDENT FACTOR COST C1 Elementary 6.79%171,600 29 0.132 $53 C2 Middle 5.41%171,600 26 0.052 $19 C3 High 0.48%171,600 26 0.065 $0 C Total 3.25%0.249 $72 STATE FUNDING ASSISTANCE CREDIT COST INDEX SPI SQ FT MATCH %STUDENT FACTOR CREDIT D1 225.97 90 0.3822 0.132 ($1,026) D2 225.97 117 0.3822 0.052 $0 D3 225.97 130 0.3822 0.065 $0 D Total 0.249 ($1,026) TAX CREDIT (TC) * AVERAGE ASSESSED VALUE (AAS)139,108 INTEREST RATE FOR BONDS (i)3.85% TERM (MAXIMUM 10)10 TAX RATE (r)0.00119417 TC Total ($1,357.49)($1,357) FACILITY CREDIT $0 FEE $4,910 50% DEVELOPER FEE OBLIGATION $2,455 IMPACT FEE $2,455 MULTI-FAMILY RESIDENCE FEE CALCULATION * TAX CREDIT (TC) = NPV (net present value) x AAV x r where: NPV = AAV = Average Assessed Value r = Tax Rate i = Bond Interest Rate as of 03/2017 t = Bond Term AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 22 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 23 - XIII. APPENDICES APPENDIX A: DISTRICT MAPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 APPENDIX B: CAPACITY WORKSHEETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 APPENDIX C: HEADCOUNT & PROJECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .29 APPENDIX D: STUDENT GENERATION FACTORS . . . . . . . . . . . . . . . . . . . . . . .31 APPENDIX E: SCHOOL COST MODELS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 APPENDIX F: CHANGES FROM PREVIOUS PLAN . . . . . . . . . . . . . . . . . . . . . . .37 AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 - 24 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX A - 25 - RSD BOUNDARY MAP - MUNICIPALITY OVERLAY AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX A - 26 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX B - 27 - ASSUMPTIONS Student/Teacher Ratios: \ Grades K - 1 20:1 Grade 2 22:1 Grade 3 24:1 Grades 4 - 5 29:1 Scheduling Efficiency 1.00 Program Efficiency 1.00 TOT K-1 2 3 4 - 5 SPED OTHER CAP TOT K-1 2 3 4 - 5 SPED OTHER CAP BENSON HILL 31 8 4 3 6 3 7 536 0 0 0 0 0 0 0 0 536 BRYN MAWR 23 8 4 4 0 1 6 358 6 0 0 0 6 0 0 174 532 CAMPBELL HILL 24 7 4 3 0 4 6 356 8 0 0 1 6 0 1 198 554 CASCADE 28 8 4 4 0 3 9 386 6 0 0 0 6 0 0 174 560 HAZELWOOD 30 8 5 4 7 2 4 597 2 0 0 0 2 0 0 58 655 HIGHLANDS 30 9 4 4 7 0 6 567 0 0 0 0 0 0 0 0 567 HONEY DEW 21 8 4 2 0 2 5 324 8 0 0 2 6 0 0 222 546 KENNYDALE 31 9 4 5 8 2 3 648 0 0 0 0 0 0 0 0 648 LAKERIDGE 24 6 3 3 0 2 10 286 6 0 0 0 6 0 0 174 460 MAPLEWOOD HEIGHTS 26 11 6 2 0 4 3 456 12 0 0 4 8 0 0 328 784 RENTON PARK 30 8 4 3 6 3 6 536 0 0 0 0 0 0 0 0 536 SIERRA HEIGHTS 27 8 4 3 4 3 5 478 8 0 0 1 4 0 3 140 618 TALBOT HILL 25 8 3 1 6 4 3 480 4 0 0 3 0 0 1 72 552 TIFFANY PARK 24 7 4 2 2 3 6 376 4 0 0 0 3 0 1 87 463 TOTAL 374 113 57 43 46 36 79 6,384 64 0 0 11 47 0 6 1627 8011 ASSUMPTIONS Student/Teacher Ratios: \ Grades K - 1 17:1 Grade 2 17:1 Grade 3 17:1 Grades 4 - 5 29:1 Scheduling Efficiency 1.00 Program Efficiency 1.00 TOT K-1 2 3 4 - 5 SPED OTHER CAP TOT K-1 2 3 4 - 5 SPED OTHER CAP BENSON HILL 31 8 4 3 6 3 7 471 0 0 0 0 0 0 0 0 471 BRYN MAWR 23 8 4 4 0 1 6 286 6 0 0 0 6 0 0 174 460 CAMPBELL HILL 24 7 4 3 0 4 6 294 8 0 0 1 6 0 1 191 485 CASCADE 28 8 4 4 0 3 9 314 6 0 0 0 6 0 0 174 488 HAZELWOOD 30 8 5 4 7 2 4 520 2 0 0 0 2 0 0 58 578 HIGHLANDS 30 9 4 4 7 0 6 492 0 0 0 0 0 0 0 0 492 HONEY DEW 21 8 4 2 0 2 5 266 8 0 0 2 6 0 0 208 474 KENNYDALE 31 9 4 5 8 2 3 566 0 0 0 0 0 0 0 0 566 LAKERIDGE 24 6 3 3 0 2 10 232 6 0 0 0 6 0 0 174 406 MAPLEWOOD HEIGHTS 26 11 6 2 0 4 3 379 12 0 0 4 8 0 0 300 679 RENTON PARK 30 8 4 3 6 3 6 471 0 0 0 0 0 0 0 0 471 SIERRA HEIGHTS 27 8 4 3 4 3 5 413 8 0 0 1 4 0 3 133 546 TALBOT HILL 25 8 3 1 6 4 3 434 4 0 0 3 0 0 1 51 485 TIFFANY PARK 24 7 4 2 2 3 6 321 4 0 0 0 3 0 1 87 408 TOTAL 374 113 57 43 46 36 79 5,459 64 0 0 11 47 0 6 1550 7009 ELEMENTARY SCHOOL CAPACITY 2017 - 2019 SCHOOL PERMANENT TEACHING STATIONS RELOCATABLE CLASSROOMS TOTAL CAP PERMANENT TEACHING STATIONS TOTAL CAP RELOCATABLE CLASSROOMSSCHOOL ELEMENTARY SCHOOL CAPACITY 2020 - 2023 AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX B - 28 - ASSUMPTIONS Student/Teacher Ratios Core Classes 29:1 29 Band/Orchestra 40:1 Choir 50:1 PE 35:1 All Other 31:1 SPED 12:1 Scheduling Efficiency 0.80 Program Efficiency 0.95 TOTAL GEN.SCI PE DRAMA COMP CTE ART MUSIC SPED OTHER CAP.TOTAL SPEC. USE CAP. DIMMITT 43 19 5 3 0 2 2 1 2 5 4 884 7 0 154 1038 McKNIGHT 43 17 7 4 0 2 2 1 3 4 3 872 8 0 176 1048 NELSEN 53 14 6 4 1 3 3 1 2 9 10 791 8 0 176 968 RISDON 49 18 6 3 1 3 2 1 3 3 9 861 0 0 0 861 TOTAL 139 68 24 14 2 10 9 4 10 21 26 3408 23 0 507 3915 ASSUMPTIONS Student/Teacher Ratios Core Classes 29 29 Band/Orchestra 40:1 Choir 50:1 PE 40:1 All Other 31:1 Scheduling Efficiency 0.80 Program Efficiency 0.90 TOTAL GENERAL SCI PE DRAMA COMP CTE ART MUSIC SPED OTHER CAP.TOTAL SPEC. USE CAP. HAZEN 77 48 6 5 3 6 4 3 2 9 0 1420 0 0 0 1420 LINDBERGH 59 34 4 4 4 4 3 3 3 5 0 1128 5 0 104 1232 RENTON 78 44 6 5 6 7 5 3 2 5 0 1524 0 0 0 1524 TALLEY 27 19 1 1 1 2 1 1 0 1 5 438 0 0 0 438 TOTAL 241 145 17 15 14 19 13 10 7 20 5 4510 5 0 104 4614 MIDDLE SCHOOL CAPACITY HIGH SCHOOL CAPACITY SCHOOL PERMANENT TEACHING STATIONS / CLASSROOMS RELOCATABLES TOTAL CAPACITY PERMANENT TEACHING STATIONS / CLASSROOMS RELOCATABLESSCHOOL TOTAL CAPACITY ASSUMPTIONS Student/Teacher Rations General 24:1 Pre K - 3 17:1 Special Ed.12:1 Program Efficiency 0.95 TOTAL GENERAL SPEC. ED.Pre K - 3 CAPACITY TOTAL SPEC. USE CAPACITY SPRING GLEN 9 2 7 0 132 4 2 72 204 MEADOW CREST 21 0 1 20 352 0 0 0 352 TOTAL 30 2 8 20 484 4 0 72 556 TOTAL CAPACITYSCHOOLPERMANENT TEACHING STATIONS / CLASSROOMS RELOCATABLES SPECIAL EDUCATIONAL FACILITY CAPACITY AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX C - 29 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX C - 30 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX D - 31 - STUDENT GENERATION FACTORS The formula for determining school impact fees, as established by King County Council Ordinance 11621, Attachment A, requires that school districts provide “student factors based on district records of average actual student generation rates for new developments constructed over a period of not more than five years prior to the date of the fee calculation.” The Ordinance also provides that, in the event this information is not available in the District, “data from adjacent districts, districts with similar demographics, or county-wide averages must be used.” King County currently assesses and collects impact fees on behalf of eleven school districts, including Renton School District. Of those eleven districts, seven districts conduct their own surveys to develop their unique student generation factors based on district records and actual development data. The remaining four districts, including Renton, rely on averages of student factors developed by other districts. In accordance with King County Ordinance 11621, Attachment A, the District has chosen to use a county-wide average based on all districts that have performed their own student generation factor surveys as well as those that have similarly relied on county-wide data. The Student Generation Factors in the table below represent an average of the student rates calculated by the other ten school districts. STUDENT GENERATION FACTORS ELEMENTARY (K-5) MIDDLE SCHOOL (6-8) HIGH SCHOOL (9-12)TOTAL SINGLE-FAMILY 0.382 0.144 0.149 0.675 MULTI-FAMILY 0.132 0.052 0.065 0.250 TABLE 6 The table on the following page details the student generation factors developed by the Districts referenced above, and the averages used in this Plan’s impact fee calculations. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX D - 32 - COUNTY-WIDE STUDENT GENERATION FACTORS DISTRICT K-5 6-8 9-12 TOTAL K-5 6-8 9-12 TOTAL Auburn 0.193 0.077 0.073 0.343 0.103 0.031 0.044 0.178 Enumclaw 0.345 0.130 0.135 0.610 0.083 0.031 0.033 0.147 Federal Way 0.220 0.120 0.143 0.483 0.597 0.237 0.323 1.157 Fife 0.325 0.136 0.137 0.598 0.127 0.057 0.066 0.250 Highline 0.152 0.026 0.065 0.243 0.093 0.047 0.070 0.210 Issaquah 0.354 0.153 0.148 0.655 0.119 0.063 0.075 0.257 Kent 0.398 0.096 0.185 0.679 0.117 0.028 0.029 0.174 Lake Washington 0.424 0.171 0.119 0.714 0.058 0.019 0.019 0.096 Northshore 0.331 0.108 0.081 0.520 0.036 0.013 0.009 0.058 Riverview 0.345 0.130 0.135 0.610 0.083 0.031 0.033 0.147 Snoqualmie Valley 0.389 0.162 0.134 0.685 0.089 0.041 0.047 0.177 Tahoma 0.345 0.130 0.135 0.610 0.083 0.031 0.033 0.147 TOTAL 3.821 1.439 1.490 6.750 1.588 0.629 0.781 2.998 AVERAGE 0.318 0.120 0.124 0.675 0.132 0.052 0.065 0.250 SINGLE-FAMILY MULTI-FAMILY AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX E - 33 - FACILITY COST MODELS Facility cost models are a calculation of the cost to construct educational facilities unique to the District. This is accomplished by utilizing both District specific data as well as information available from OSPI. OSPI constants are factors established by OSPI as part of its School Construction Assistance Program. State Funding Assistance Percentages are unique to individual school districts while the Construction Cost Allocation (per square foot of construction) is constant throughout the state. The State Area Allocation (per student) is used solely by OSPI to determine a District’s eligibility for state funding. It is not meant to represent or reflect the unique spatial needs of a District necessary to provide its adopted programs and standard of service. The District Area Allocation utilized in the cost models reflects historical data from previously constructed facilities, or facilities currently under construction, adjusted to reflect current programs, anticipated funding and other topical issues. The applied Cost per Square Foot is an average of recently bid school projects of similar grade levels in the Puget Sound Region, as reported by OSPI. Elementary and Middle School Cost Models follow. AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX E - 34 - ELEMENTARY SCHOOL COST MODEL FACILITY INFORMATION Building Site Work Student capacity 600 Area (acres)8 SF per student 116 Cost per acre $600,000 Generic classrooms 30 Right-of-way LF 2,000 Gym and cafeteria Separate Right-of-way cost per LF $440 Building area (SF)69,600 Utility improvements $350,000 Cost per SF $325 Demolition Site Preparation Area (SF)50,000 Area (acres)8 Cost per SF $15 Cost per acre $30,000 CONSTRUCTION COST Demolition $750,000 Site prep $240,000 Building $22,620,000 Site work $4,800,000 Right-of-way improvements $880,000 Off-site utility improvements $350,000 Subtotal $29,640,000 Cost per SF $426 SOFT COSTS Professional fees 10.0%$2,964,000 Sales tax 10.0%$2,964,000 Change Order Contingency 7.0%$1,830,395 Permits 2.0%$522,970 Special inspections 1.0%$261,485 Art 0.0%$0 Work under separate contract 0.5%$130,743 Temporary Facilities/Moving & Storage 0.5%$130,743 Furniture, fixtures & equipment 8.0%$2,091,880 Project management 2.0%$522,970 District administration 1.5%$392,228 Mitigation 2.0%$522,970 Project contingency 7.0%$2,074,800 51.5%Subtotal $14,409,183 CONSTRUCTION COSTS + SOFT COSTS $44,049,183 ESCALATION Year Inflation Rate Amount 2019 2.62%$45,203,271 2020 2.79%$46,464,442 2021 2.74%$47,737,568 2022 2.85%$49,098,089 2023 2.86%$50,502,294 2024 2.89%$51,961,810 Note: Amounts do not include property acquisition AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX E - 35 - MIDDLE SCHOOL COST MODEL FACILITY INFORMATION Building Site Work Student capacity 850 Area (acres)15 SF per student 140 Cost per acre $400,000 Generic classrooms 31 Right-of-way LF 1,000 Building area (SF)119,000 Right-of-way cost per LF $350 Cost per SF $325 Utility improvements $231,000 Demolition/Abatement Site Preparation Area (SF)52,924 Area (acres)15 Cost per SF $15 Cost per acre $30,000 CONSTRUCTION COST Demolition $793,860 Site prep $450,000 Building $38,675,000 Site work $6,000,000 Right-of-way improvements $350,000 Off-site utility improvements $231,000 Subtotal $46,499,860 Cost per SF $391 SOFT COSTS Professional fees 10.0%$4,649,986 Sales tax 10.0%$4,649,986 Change Order Contingency 7.0%$1,830,395 Permits 2.0%$522,970 Special inspections 1.0%$261,485 Art 0.0%$0 Work by separate contract 1.0%$261,485 Temporary Facilities 0.5%$130,743 Moving and Storage 0.5%$130,743 Furniture, fixtures & equip.10.0%$2,614,850 Project management 1.0%$261,485 District administration 1.5%$392,228 Mitigation 2.0%$522,970 Project contingency 7.0%$3,254,990 53.5%Subtotal $19,484,315 CONSTRUCTION COSTS + SOFT COSTS $65,984,175 ESCALATION Year Inflation Rate Amount 2019 2.62%$67,712,960 2020 2.79%$69,602,152 2021 2.74%$71,509,251 2022 2.85%$73,547,264 2023 2.86%$75,650,716 2024 2.89%$77,837,022 Note: Amounts do not include property acquisition AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX E - 36 - AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX F 37 * 2017 2018 CHANGE Elementary 6,172 6,384 212 Middle 2,990 3,408 418 High 4,679 4,510 -169 Total 13,841 14,302 461 2017 2018 CHANGE Elementary 7,622 7,628 6 Middle 3,216 3,358 142 High 4,279 4,288 9 Total 15,117 15,274 157 2017 2018 CHANGE Single-Family 7,772 6,877 (895) Multi-Family 1,570 2,455 885 2016 2017 CHANGE Single-Family Elementary 0.359 0.382 0.023 Middle 0.128 0.144 0.016 High 0.126 0.149 0.023 Total 0.613 0.675 0.062 Multi-Family Elementary 0.091 0.132 0.041 Middle 0.027 0.052 0.025 High 0.032 0.065 0.033 Total 0.150 0.249 0.099 2016 2017 CHANGE Land Acquisition/Acre 550,000 650,000 100,000 Temp Bldg Acquisition 171,600 177,000 5400 State Match Percentage 0.3822 0.3822 0 Ave. Assessed Value - Single 375,989 427,300 51,311 Ave. Assessed Value - Multi 123,175 139,108 15,933 Bond Interest Rate 3.95%3.85%(0.00) Tax Rate / $1000 2.64198 1.19417 (1.44781) ADDITIONAL IMPACT FEE FACTORS IMPACT FEES CHANGES FROM PREVIOUS PLAN ACTUAL STUDENT ENROLLMENT (October Headcount) PERMANENT STUDENT CAPACITY STUDENT GENERATION FACTORS AGENDA ITEM #1. a) 2018 Capital Facilities Plan Renton School District No. 403 APPENDIX F 38 * AGENDA ITEM #1. a) 1  CITY OF RENTON, WASHINGTON    RESOLUTION NO. _______    A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, ADOPTING BY  REFERENCE THE CURRENT CAPITAL FACILITIES PLANS FOR KENT, ISSAQUAH, AND  RENTON SCHOOL DISTRICTS.    WHEREAS, under Section 4‐1‐190 of Chapter 1, Administration and Enforcement, of Title  IV (Development Regulations), the City of Renton has heretofore collected school impact fees on  behalf of the Kent, Issaquah, and Renton School Districts; and  WHEREAS, the Kent, Issaquah, and Renton School Districts each have requested that the  City of Renton adopt their District's current Capital Facilities Plans; and  WHEREAS, as established in the current Kent School District Capital Facilities Plan, the  school impact fee rates for the Kent School District have been calculated at $5,397 per single  family dwelling unit, and $2,279 per new multi‐family  dwelling unit, an increase from the prior  rates of $5,235 and $2,267, respectively; and   WHEREAS, as established in the current Issaquah School District Capital Facilities plan,  the school impact fee rates  for the Issaquah School District have been calculated at $15,276 per  single family dwelling unit, and $4,399 per new multi‐family dwelling unit, an increase from the  prior rates of $8,762 and $3,461, respectively; and  WHEREAS, as established in the current Renton School District Capital Facilities Plan, the  school impact fee rates for the Renton School District have been calculated at $6,877 per single  family dwelling unit, and $2,455 per new multi‐family dwelling unit, a decrease from the prior  single family dwelling unit rate of $7,772 and an increase from the prior multi‐family dwelling  unit rate of $1,570; and  AGENDA ITEM #1. a) RESOLUTION NO. _______  2   WHEREAS, the rate charged on behalf of each District is listed in the City of Renton Fee  Schedule;   NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO  RESOLVE AS FOLLOWS:   SECTION I. The City Council of the City of Renton hereby adopts by reference as if fully  set forth herein the following Capital Facilities Plans, including adopting the school impact fee  rates set forth in those Capital Facilities Plans to take effect on January 1, 2019, and which will  be listed in an updated City of Renton Fee Schedule:   A.  The Kent School District Capital Facilities Plan 2018‐2019 ‐ 2023‐2024, dated April  2018;  B.  The 2018 Capital Facilities Plan of Issaquah School District No. 411, dated May 23,  2018; and  C.  The 2018 Capital Facilities Plan of Renton School District No. 403, dated May 2018.  SECTION II. Copies of each Capital Facilities Plan adopted herein by reference will be  on file with the City Clerk.  PASSED BY THE CITY COUNCIL this ______ day of _______________________, 2018.        ______________________________  Jason A. Seth, City Clerk     APPROVED BY THE MAYOR this ______ day of _______________________, 2018.        ______________________________  Denis Law, Mayor        AGENDA ITEM #1. a) RESOLUTION NO. _______  3      Approved as to form:      ______________________________  Shane Moloney, City Attorney    RES:1784:10/2/18:scr  AGENDA ITEM #1. a) 1  CITY OF RENTON, WASHINGTON    RESOLUTION NO. _______    A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, EXTENDING THE  SUNSET DATE TO DECEMBER 31, 2020 FOR REDUCED DEVELOPMENT FEES,  INCLUDING TRANSPORTATION AND PARKS IMPACT FEES, UTILITY SYSTEM  DEVELOPMENT CHARGES (ALSO KNOWN AS UTILITY HOOK UP FEES), AND LAND  USE REVIEW AND BUILDING FEES, FOR ACCESSORY DWELLING UNITS.    WHEREAS, the City charges building fees; land use review fees; use of public works  facilities fees, which include system development charges; and transportation and parks impact  fees based on adopted rate studies; and  WHEREAS, the above fees are listed in Section XII, Development Fees, of the current City  of Renton Fee Schedule which is adopted by resolution; and   WHEREAS, the City of Renton strives to facilitate the creation and preservation of an  affordable and diverse housing stock; and   WHEREAS, provisions were adopted in 2010 allowing the establishment of Accessory  Dwelling Units (ADUs) as a form of affordable market‐rate housing in the City, but the City’s  records showed that only five ADUs were created between 2010 and October of 2017 ; and   WHEREAS, on October 16, 2017 by Resolution No. 4318 the City Council adopted reduced  development fees, including transportation and parks impact fees, utility system development  charges, and land use review and building fees, applicable to all ADUs by half, and waived all such  fees for every third ADU created within a new subdivision of ten (10) or more lots to encourage  their creation, and since then the City has received five applications for ADUs; and  WHEREAS, reducing development fees for ADUs has, within one year, doubled the  number of ADUs created within the City during the previous seven years; and   AGENDA ITEM #1. a) RESOLUTION NO. _______  2   WHEREAS, the City Council finds that the public benefit of encouraging ADUs warrants an  extension of the reduced ADU fees for a new period sunsetting on December 31, 2020;   NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO  RESOLVE AS FOLLOWS:  SECTION I. The following development fees are reduced by half (50%) for new ADUs:   Building permit fees;    Combination building permit fees;   Building plan check fee;   Electrical permit fees for single‐family and duplex;   Mechanical permit fees;   Plumbing permit fees;   Administrative Conditional Use Permit fees;   Water Service and Wastewater Fees (excluding Fire Service Fees);   Storm Water System Development Charges for new single family residences;   Water construction permit fees;   Wastewater and surface water construction permit fees; and   Transportation and park impact fees for ADUs.  SECTION II. The development fees listed in Section I of this resolution are waived in full  for every third new ADU created within a subdivision of ten (10) or more lots that receives final  plat approval on or after the effective date of this resolution.      SECTION III. The fees modified by or under the authority of this resolution shall remain  modified through December 31, 2020, upon which date the fees modifications shall sunset unless  the City Council takes action to the contrary.    AGENDA ITEM #1. a) RESOLUTION NO. _______  3  PASSED BY THE CITY COUNCIL this ______ day of _______________________, 2018.        ______________________________  Jason A. Seth, City Clerk     APPROVED BY THE MAYOR this ______ day of _______________________, 2018.        ______________________________  Denis Law, Mayor       Approved as to form:    ______________________________  Shane Moloney, City Attorney    RES.1787:10/11/18:scr  AGENDA ITEM #1. a) AB - 2260 City Council Regular Meeting - 05 Nov 2018 SUBJECT/TITLE: Merrill Gardens at Renton Addition - Multi-Family Housing Property Tax Exemption RECOMMENDED ACTION: Refer to Planning & Development Committee DEPARTMENT: Community & Economic Development Department STAFF CONTACT: Mark Santos-Johnson, Economic Development Manager EXT.: x6584 FISCAL IMPACT SUMMARY: N/A SUMMARY OF ACTION: On August 28, 2018, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application for the Merrill Gardens at Renton Addition in the Downtown Renton designated residential targeted area. As provided for in RMC 4-1-220, the Department of Community and Economic Development (CED) Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Merrill Gardens at Renton Addition to receive a partial property tax exemption upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for the Merrill Gardens at Renton project. (Note: On June 25, 2018, the City Council passed Ordinance No. 5884 wherein an emergency interim control was declared and imposed to prohibit the submission of, acceptance of, processing or, or decision on any applications for Multi-Family Housing Property Tax Exemption. However, the Merrill Gardens at Renton Addition project qualified for one of the exceptions as further clarified in the issue paper.) EXHIBITS: A. Issue Paper B. Multi-Family Housing Property Tax Exemption Agreement STAFF RECOMMENDATION: Staff recommends that the Council: (1) approve the Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for the Merrill Gardens at Renton Addition project to receive a partial property tax exemption upon completion; and (2) authorize the Mayor to execute said agreement in substantially the same form. AGENDA ITEM #3. a) DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE: October 26, 2018 TO: Ed Prince, Council President Members of Renton City Council VIA: Denis Law, Mayor FROM: C. E. “Chip” Vincent, CED Administrator STAFF CONTACT: Mark Santos-Johnson, Economic Development Manager (ext. 6584) SUBJECT: Merrill Gardens at Renton Addition – Multi-Family Housing Property Tax Exemption Agreement ISSUE: Should the City Council approve the Multi-Family Housing Property Tax Exemption Agreement for the Merrill Gardens at Renton Addition project and authorize the Mayor to execute the agreement? RECOMMENDATION: Staff recommends that the Council: (1) approve the Multi-Family Housing Property Tax Exemption Agreement that addresses the terms and conditions for the Merrill Gardens at Renton Addition project to receive a partial property tax exemption upon completion; and (2) authorize the Mayor to execute said agreement in substantially the same form. BACKGROUND SUMMARY: On August 28, 2018, the City received a Multi-Family Housing Property Tax Exemption (“Exemption”) application from MGP47, LLC, for the Merrill Gardens at Renton Addition project in the Downtown Renton designated residential targeted area. As provided for in RMC 4-1-220, the Department of Community & Economic Development (CED) Administrator needs to approve or deny the Exemption application within 90 days of receipt of the application and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for the Merrill Gardens at Renton Addition to receive a partial property tax exemption upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the Exemption application for the Merrill Gardens at Renton Addition project. BACKGROUND: As authorized by Chapter 84.14 RCW, the Council established the Multi-Family Housing Property Tax Exemption (“Exemption”) in 2003 (codified in RMC 4-1-220 as subsequently AGENDA ITEM #3. a) Ed Prince, Council President Page 2 of 3 October 26, 2018 amended) to currently encourage multi-family housing development in Downtown Renton and the Sunset Area. The Exemption provision allows the value of qualified new housing construction to be exempt from ad valorem property tax for a limited period of time after completion of the project1. However, the Exemption does not include the value of the land, existing improvements or non-housing-related improvements (e.g., commercial space). The Exemption applies to all levels of the ad valorem property tax, including the local jurisdiction, county, state, and all local taxing districts. The Exemption is in addition to any other tax credits, grants, or incentives provided by law for the multi-family housing. The Merrill Gardens at Renton Addition is a residential rental project that is located in the Downtown Renton designated residential targeted area. The project is an addition to the Merrill Gardens at Renton Centre located at 104 Burnett Avenue S.; the original building has 154 assisted living units and was completed in 2007. The Merrill Gardens at Renton Addition will be built on property behind the Merrill Gardens at Renton Centre, at the south end of the building. Although the addition will have frontage on Williams Avenue South, the residents of the Merrill Gardens at Renton Addition will use the same entrance as the current residents of the Merrill Gardens at Renton Centre. The Merrill Gardens at Renton Addition is a six-story building that will include 30 assisted living units and 24 memory care units, plus common areas, exterior upper floor amenity spaces, and ground floor amenity space on the Williams Avenue S frontage. There is no additional parking in the building (i.e., the residents will utilize the existing Merrill Gardens at Renton Centre parking). The assisted living units are eligible for the property tax exemption, but not the memory care units. The estimated potential property tax savings related to the Exemption is approximately $156,726 per year ($1.25 million for the eight-year period) for the Merrill Gardens at Renton Addition. This equates to a potential property tax savings of approximately $5,224 per year per housing unit ($41,794 per housing unit for the eight-year period). The project paid a $1,000 initial application fee and satisfies the City’s Exemption eligibility requirements as outlined in RMC 4-1-220D:  The multi-family housing units are located in one or more new buildings designed for permanent residential occupancy, each with four or more dwelling units;  The project is located in the Center Downtown (CD) zone as part of the Downtown Renton designated residential targeted area;  The project is a mixed-use development; and  The project consists of a minimum of 30 dwelling units. 1 In 2007, the Washington State Legislature passed the Engrossed Second Substitute House Bill 1910, in part, to modify the limited the property tax exemption for future eligible projects to eight years or 12 years (the longer term being available if the project provides at least 20% of the units as affordable housing). AGENDA ITEM #3. a) Ed Prince, Council President Page 3 of 3 October 26, 2018 The City received an Exemption application for the Merrill Gardens at Renton Addition project on August 28, 2018. As provided for in RMC 4-1-220F, the CED Administrator needs to approve or deny the Exemption application within 90 days of receipt and, if approved, the applicant must enter into an agreement approved by the Council that addresses the terms and conditions for Merrill Gardens at Renton Addition to receive a partial property tax exemption upon completion. Subject to the Council’s approval of the agreement, the CED Administrator intends to approve the application for the Merrill Gardens at Renton Addition project. (Please see the proposed Exemption Agreement for the Merrill Gardens at Renton Addition project.) [NOTE: On June 25, 2018, the City Council passed Ordinance No. 5884 wherein an emergency interim control was declared and imposed to prohibit the submission of, acceptance of, processing or, or decision on any applications for Multi-Family Housing Property Tax Exemption with two exceptions, including the receipt of complete applications prior to the effective date of the ordinance. The City approved the site plan entitlement for the Merrill Gardens at Renton Addition project on or around March 20, 2018, and a complete building permit application was submitted on May 7, 2018. After consultation with the City Attorney’s office, the CED Administrator determined that the project qualified for the above exception.] CONCLUSION: Renton’s Multi-Family Housing Property Tax Exemption program was established to help increase housing opportunities in designated residential targeted areas, including Downtown Renton. The Merrill Gardens at Renton Addition will provide an additional 30 assisted living units and 24 memory care units and more than $27 million in private investment in Downtown Renton and further the City’s 2019-2024 Business Plan Goals. cc: Robert Harrison, CAO Jason Seth, City Clerk Jan Hawn, Administrative Services Administrator Gregg Zimmerman, Public Works Administrator Kelly Beymer, Community Services Administrator Cliff Long, Economic Development Director AGENDA ITEM #3. a) Exhibit A Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 1 MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT FOR THE MERRILL GARDENS AT RENTON ADDITION THIS AGREEMENT is entered into this ____ day of _______________, 201___ by and between MGP 47, LLC, (hereinafter referred to as the “Applicant”), and the CITY OF RENTON, a municipal corporation (hereinafter referred to as the “City”). Recitals. 1. Applicant has applied to the City for a limited property tax exemption as provided for in Chapter 84.14 RCW and RMC 4-1-220 for multi-family housing residential rental housing located in the Center Downtown (CD) zone as part of Downtown Renton residential targeted area and the Department of Community and Economic Development Administrator has approved the application; and 2. Applicant has submitted to the City preliminary site plans, floor plans, and elevations for the Merrill Gardens at Renton Addition with thirty (30) new multi- family housing units to be constructed as part of a mixed-use project (hereinafter referred to as the “Project”) on property located at 104 Burnett Avenue S, Renton, Washington, and more fully described in Exhibit A attached hereto, (hereinafter referred to as the “Property”); and 3. Applicant is the owner of the Property; and 4. The City has determined that the Project will, if developed as proposed, satisfy the requirements for a Final Certificate of Tax Exemption. NOW, THEREFORE, the City and Applicant do mutually agree as follows: 1. Conditional Certificate of Acceptance of Tax Exemption City agrees, upon execution of this Agreement following approval by the City Council, to issue a Conditional Certificate of Acceptance of Tax Exemption, which conditional certificate shall expire three (3) years from the date of approval of this Agreement by the City Council, unless extended by the Administrator of the Department of Community and Economic Development (or any other City office, department or agency that shall succeed to its functions), or his or her designee, (hereafter referred to as “Administrator”) as provided in RMC 4-1-220I. AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 2 2. Agreement to Construct Multi-Family Housing. a. Applicant agrees to construct the Project on the Property substantially as described in the site plans, floor plans, and elevations on file with the City’s Department of Community and Economic Development or its functional successor (hereafter referred to as “Department”) as of the date of the City Council’s approval of this Agreement, subject to such modifications thereto as may be required to comply with applicable codes and ordinances; provided, that in no event shall such construction provide fewer than thirty (30) new multi-family housing dwelling units designed for permanent residential occupancy, nor shall permanent residential housing comprise less than fifty percent (50%) of the gross floor area of the mixed-use project constructed pursuant to this Agreement.”] b. Applicant agrees to construct the Project on the Property to comply with all applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the City’s development regulations in Title IV of the RMC and the City’s applicable design standards and guidelines. The Applicant further agrees that approval of this Agreement by the City Council, its execution by the Mayor, or issuance of a Conditional Certificate of Acceptance of Tax Exemption by the City pursuant to RMC 4-1-220F3 in no way constitutes approval of proposed improvements on the Property with respect to applicable provisions of the City’s development regulations included in Title IV of the RMC or any other applicable regulation or obligates the City to approve proposed improvements to the Property. c. Applicant agrees that the Project will be completed within three (3) years from the date of approval of this Agreement by the Council, unless extended by the Administrator for cause as provided in RMC 4-1-220I. 3. Requirements for Final Certificate of Tax Exemption. Applicant may, upon completion of the Project and upon issuance by the City of a temporary certificate of occupancy, or a permanent certificate of occupancy if no temporary certificate is issued, request a Final Certificate of Tax Exemption. The request shall be in writing directed to the Administrator and be accompanied by the following: a. A statement of expenditures made with respect to each multi-family housing unit and the total expenditures made with respect to the entire Project and Property; b. A description of the completed work and a statement of qualification for the multi-family housing property tax exemption; AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 3 c. A statement that the Project was completed within the required three-(3) year period or any authorized extension and documentation that the Project was completed in compliance with the terms of this Agreement; d. The total monthly rent of each multi-family housing unit rented to date; e. The income of each renter household to date at the time of initial occupancy; and f. Any such further information that the Administrator deems necessary or useful to evaluate the Project’s eligibility for the Final Certificate of Tax Exemption. 4. Agreement to Issue Final Certificate of Tax Exemption. The City agrees to file a Final Certificate of Tax Exemption with the King County Assessor within forty (40) days of submission by the Applicant of all materials required by paragraph 3 above, if Applicant has: a. Successfully completed the Project in accordance with the terms of this Agreement and RMC 4-1-220; b. Filed a request with the City for a Final Certificate of Tax Exemption with the Administrator and submitted the materials described in paragraph 3 above; c. Paid the City a fee in the amount of one thousand dollars ($1,000); and d. Met all other requirements provided in RMC 4-1-220 for issuance of the Final Certificate of Tax Exemption. 5. Duration of the Property Tax Exemption Subject to the terms of this Agreement and the requirements of RMC 4-1-220, the value of improvements qualifying under RMC 4-1-220 is exempt from ad valorem property taxation for eight (8) successive years beginning January 1st of the year immediately following the calendar year of issuance of the final certificate of tax exemption. 6. Annual Certification and Report. Within thirty (30) days after the first anniversary of the date the City issued the Final Certificate of Tax Exemption and each year thereafter for the duration of the tax exemption period noted in paragraph 5 above, Applicant agrees to file an annual report with the Administrator. The report shall contain such information as required by RCW AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 4 84.14 and as the Administrator may deem necessary or useful, and shall at a minimum include the following: a. A statement of the occupancy and vacancy of the multi-family housing units during the twelve months ending with the anniversary date; b. A certification that the multi-family housing units, Project, and Property have not changed use since the date the City issued the Final Certificate of Tax Exemption, c. A statement that the multi-family housing units, Project, and Property continue to be in compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220; d. A description of any improvements or changes to the Project made after the City issued the Final Certificate of Tax Exemption; e. The total monthly rent of each multi-family housing unit rented or the total sale amount of each multi-family housing unit sold to an initial purchaser during the twelve months ending with the anniversary date; f. The income of each renter household at the time of initial occupancy and the income of each initial purchaser of owner-occupied multi-family housing units at the time of purchase during the twelve months ending with the anniversary date; g. A breakdown of the number, type, and specific multi-family housing units rented or sold during the twelve months ending with the anniversary date to meet the affordable housing requirements included in paragraph 5 above; h. Any additional information requested by the City pursuant to meeting any reporting requirements under RCW 84.14; and i. Any such further information that the Administrator deems necessary or useful to evaluate the Applicant’s compliance with this Agreement and the requirements of RCW 84.14 and RMC 4-1-220. 7. No Violations for Duration of Exemption. For the duration of the property tax exemption granted under RMC 4-1-220 and noted in paragraph 5 above, Applicant agrees that the Project and the Property will have no violations of applicable zoning requirements, land use regulations, and building and housing code requirements, including but not limited to the development regulations in Title IV of the RMC, for which the Department of Community and Economic Development or its functional successor shall have issued a notice of AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 5 violation, citation or other notification that is not resolved by a certificate of compliance, certificate of release, withdrawal or otherwise, within the time period for compliance, if any, provided in such notice of violation, citation or other notification or any extension of the time period for compliance granted by the Department of Community and Economic Development. 8. Notification of Transfer of Interest or Change in Use. Applicant agrees to notify the Administrator within thirty (30) days of any transfer of Applicant’s ownership interest in the Project, the Property or any improvements made to the Property. Applicant further agrees to notify the Administrator and the King County Assessor within sixty (60) days of any change of use of any or all of the multi- family housing units on the Property to another use. Applicant acknowledges that such a change in use may result in cancellation of the property tax exemption and imposition of additional taxes, interest, and penalty pursuant to State law. 9. Cancellation of Exemption - Appeal. a. The City reserves the right to cancel the Final Certificate of Tax Exemption if at any time the multi-family housing units, the Project, or the Property no longer complies with the terms of this Agreement or with the requirements of RMC 4-1- 220, or for any other reason no longer qualifies for a property tax exemption. b. If the property tax exemption is canceled for non-compliance, Applicant acknowledges that state law requires that an additional real property tax is to be imposed in the amount of: [a} the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements, dated back to the date that the improvements became nonqualifying; [b] a penalty of 20% of the difference calculated under paragraph (a) of this paragraph 9; [c] interest at the statutory rate on delinquent property taxes and penalties, calculated from the date the tax would have been due without penalty if the improvements had been assessed without regard to the exemptions provided by Chapter 84.14 RCW and RMC 4-1-220. Applicant acknowledges that, pursuant to RCW 84.14.110, any additional tax owed, together with interest and penalty, become a lien on the Property and attach at the time the Property or portion of the Property is removed from multi- family housing use or the amenities no longer meet applicable requirements, and that the lien has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the Property may become charged or liable. Applicant further acknowledges that RCW 84.14.110 provides that any such lien may be foreclosed in the manner provided by law for foreclosure of liens for delinquent real property taxes. AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 6 c. Upon determining that a tax exemption is to be canceled, the Administrator shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination in accordance with RMC 4-1-220L2. 10. Amendments. No modification of this Agreement shall be made unless mutually agreed upon by the parties in writing and unless in compliance with the provisions of RMC 4-1-220H, including but not limited to the Applicant’s payment of a five hundred dollars ($500) contract amendment fee. 11. Binding Effect. The provisions, covenants, and conditions contained in this Agreement are binding upon the parties hereto and their legal heirs, representatives, successors, assigns, and subsidiaries. 12. Recording of Agreement. The Administrator shall cause to be recorded at the Applicant’s expense, or require Applicant to record, in the real property records of the King County Department of Records and Elections, this Agreement and any other documents as will identify such terms and conditions of eligibility for exemption as the Administrator deems appropriate for recording. 13. Audits and Inspection of Records. Applicant agrees to maintain, retain, and make available for inspection upon seven days’ written request from the City, any records pertaining to this contract. Applicant understands and agrees that the City has the right to audit or review appropriate records to assure compliance with this Agreement and RMC 4-1-220 and to perform evaluations of the effectiveness of the multi-family housing property tax exemption program. 14. Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when hand-delivered within normal business hours, when actually received by facsimile transmission, or two business days after having been mailed, postage prepaid, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing. AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 7 APPLICANT: MGP, LLC 1938 Fairview Avenue E, Suite 300 Seattle, WA 98102 Phone: 206-676-5600 Fax: 206-676-5617 Attention: Douglas D. Spear, Secretary of MG Landlord II, LLC, sole member of MGP 47, LLC CITY: City of Renton Department of Community and Economic Development 1055 South Grady Way Renton, Washington 98055 Phone: (425) 430-6592 Fax: (425) 430-7300 Attention: Administrator 15. Severability. In the event that any term or clause of this Agreement conflicts with applicable law, such conflict shall not affect other terms of this Agreement which can be given effect without the conflicting terms or clause, and to this end, the terms of the Agreement are declared to be severable. AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written above. MGP 47, LLC, A Delaware Limited Liability Company ____________________________ By: Douglas D. Spear, Secretary, MG Landlord II, LLC Its: Sole Member CITY OF RENTON ____________________________ Denis Law, Mayor APPROVED AS TO FORM: ATTEST: ____________________________ ___________________________ City Attorney Jason Seth, City Clerk AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 9 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ________ day of _____________________, 201_____, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Douglas D. Spear, to me known to be the Secretary of MG Landlord II, LLC, its sole member that executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said party, for the uses and purposes therein mentioned, and on oath stated that he was authorized to execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. [notary seal] NOTARY PUBLIC Printed Name: Residing at My commission expires AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Merrill Gardens at Renton Addition 10 STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this ________ day of _____________________, 201_____, before the undersigned, a Notary Public in and for the state of Washington, duly commissioned and sworn, personally appeared before me Denis Law, to me known to be the Mayor of the City of Renton, the 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 execute said instrument. In witness whereof I have hereunto set my hand and affixed my official seal the day and year first above written. [notary seal] NOTARY PUBLIC Printed Name: Residing at My commission expires AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Exhibit A – Legal Description Merrill Gardens at Renton Addition i MULTI-FAMILY HOUSING PROPERTY TAX EXEMPTION AGREEMENT EXHIBIT A LEGAL DESCRIPTION PARCEL A THAT PORTION OF HENRY TOBIN DONATION CLAIM NO. 37, SECTION 18, TOWNSHIP 23 NORTH, RANGE 5 EAST, W. M., IN KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF BLOCK 24, TOWN OF RENTON PLAT, WHICH CORNER BEARS SOUTH 89° 07' EAST A DISTANCE OF 30 FEET AND NORTH 0° 46' EAST A DISTANCE OF 530 FEET FROM THE MONUMENT AT THE INTERSECTION OF SECOND AVENUE AND BURNETT STREET; THENCE NORTH 0° 46' EAST A DISTANCE OF 150 FEET; THENCE SOUTH 89°07' EAST A DISTANCE OF 115 FEET; THENCE SOUTH 0° 46' WEST A DISTANCE OF 150 FEET; THENCE NORTH 89° 07' WEST A DISTANCE OF 115 FEET TO THE POINT OF BEGINNING. ALSO, LOTS 1 THROUGH 4, INCLUSIVE, AND LOTS 16 AND 17, BLOCK 24, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN KING COUNTY, WASHINGTON; EXCEPT THE EAST 5 FEET OF SAID LOTS 1 THROUGH 3 CONVEYED TO THE CITY OF RENTON FOR ALLEY PURPOSES BY DEED RECORDED UNDER RECORDING NO. 2117471 AND 2117484; AND EXCEPT THE NORTH 10 FEET OF THE SOUTH 30 FEET OF SAID LOT 3 CONVEYED FOR ALLEY RECORDED NOVEMBER 20, 1978 UNDER RECORDING NO. 7811200482; TOGETHER WITH THOSE PORTIONS OF THE ALLEY VACATED BY CITY OF RENTON ORDINANCE NO. 3272, RECORDED DECEMBER 14, 1978 UNDER RECORDING NO. 7812140796 ADJOINING OR ABUTTING THEREON, WHICH ATTACHED TO SAID PREMISES BY OPERATION OF LAW AND TOGETHER WITH THOSE PORTIONS OF THE ALLEYS VACATED BY CITY OF RENTON ORDINANCE NO. 5370, RECORDED APRIL 28, 2008 UNDER RECORDING NO. 20080428000765 AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Exhibit A – Legal Description Merrill Gardens at Renton Addition ii PARCEL B: LOT 18, BLOCK 24, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN KING COUNTY, WASHINGTON; EXCEPT THE WEST 5 FEET THEREOF CONVEYED TO THE CITY OF RENTON FOR ALLEY PURPOSES BY DEED RECORDED UNDER RECORDING NO. 2117478. EXCEPT THE NORTH 20 FEET THEREOF CONVEYED TO THE CITY OF RENTON BY DEED RECORDED UNDER RECORDING NO. 20080425000371. AND TOGETHER WITH THAT PORTION OF THE ALLEY VACATED BY CITY OF RENTON ORDINANCE NO. 5370, RECORDED APRIL 28, 2008 UNDER RECORDING NO. 20080428000765 PARCEL C: THAT PORTION OF THE HENRY TOBIN DONATION LAND CLAIM NO. 37, SECTION 18, TOWNSHIP 23 NORTH, RANGE 5 EAST, W. M., IN KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE EAST LINE OF BURNETT STREET 150 FEET NORTH OF THE NORTHWEST CORNER OF BLOCK 24, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 135, IN KING COUNTY, WASHINGTON; THENCE EAST PARALLEL WITH THE NORTH LINE OF SAID BLOCK 24 A DISTANCE OF 115 FEET; THENCE NORTH PARALLEL WITH THE EAST LINE OF BURNETT STREET 50 FEET; THENCE WEST PARALLEL WITH THE NORTH LINE OF SAID BLOCK 24 A DISTANCE OF 115 FEET TO THE EAST LINE OF BURNETT STREET; THENCE SOUTH ON THE EAST LINE OF BURNETT STREET 50 FEET TO THE POINT OF BEGINNING; PARCEL D: THAT PORTION OF HENRY TOBIN DONATION LAND CLAIM NO. 37, SECTION 18, TOWNSHIP 23 NORTH, RANGE 5 EAST, W. M., IN KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS; BEGINNING ON THE EAST MARGIN OF BURNETT STREET IN THE CITY OF RENTON NORTH 0°46' EAST 730 FEET FROM THE CENTERLINE OF SECOND AVENUE; THENCE SOUTH 89° 07' EAST 115 FEET; THENCE NORTH 00° 46' EAST 75 FEET; THENCE SOUTH 89° 07' WEST 115 FEET; THENCE SOUTH 0° 46' WEST 75 FEET TO THE POINT OF BEGINNING. PARCEL E: THAT PORTION OF HENRY TOBIN DONATION LAND CLAIM NO. 37, SECTION 18, TOWNSHIP 23 AGENDA ITEM #3. a) Multi-Family Housing Property Tax Exemption Agreement Exhibit A – Legal Description Merrill Gardens at Renton Addition iii NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF BLOCK 24, TOWN OF RENTON, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLAT, PAGE 135, IN KING COUNTY, WASHINGTON, WHICH CORNER BEARS SOUTH 89° 07' EAST 30 FEET AND NORTH 0° 46' EAST 530 FEET FROM THE MONUMENT AT THE INTERSECTION OF SECOND AVENUE AND BURNETT STREET; THENCE NORTH 0° 46' EAST 275 FEET TO THE POINT OF BEGINNING; THENCE NORTH 0° 46' EAST 76.52 FEET; THENCE SOUTH 89° 07' EAST 115 FEET; THENCE SOUTH 0° 46' WEST 76.52 FEET; THENCE NORTH 89°07' WEST 115 FEET TO THE POINT OF BEGINNING. SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON. AGENDA ITEM #3. a)