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HomeMy WebLinkAbout11/08/2011 - Minutes � � City of Renton Board of Park Commissioners D C�ty of �, � p~ n. � O ♦ � 4 'Q�N`r��� Meeting Minutes November 8, 2011 4:30 p.m. — City Hall — 7th Floor Conferencing Center I. CALL TO ORDER In Attendance The following members were present: Larry Reymann, Cynthia Burns, AI Dieckman, Mike 0'Donin, Marlene Winter, Tim Searing,Troy Wigestrand Staff: Terry Higashiyama, Sandy Pilat, Leslie Betlach, Kelly Beymer,Tim Williams, Todd Black, Chip Vincent Guests: Randy Young, Henderson, Young and Company Chair, Larry Reymann, called the November 8, 2011, meeting to order at 4:30 p.m. Roll call was taken; all members were present. II. APPROVAL OF AGENDA Mike O'Donin made a motion, seconded by Cynthia Burns to approve the agenda as presented. All were in favor, motion carried, the November 8, 2011, agenda was approved. III. APPROVAL OF MINUTES A motion was made by AI Dieckman and seconded by Marlene Winter to approve the October 2011 minutes as written, all were in favor, motion carried. The minutes were approved as submitted. IV. COMMUNICATION Leslie Betlach thanked the Board Members for their participation and involvement in City of Renton � � Park Board Minutes November 8,2011 Page 2 of 4 the PRO Plan, she expressed appreciation for their support. Larry Reymann stated the success of this big project was due to Leslie and Vanessa's hard work and on behalf of the Board he thanked them. DISCUSSION/ACTION ITEMS Parks Impact Fee Leslie Betlach introduced our consultant, Randy Young, and lead staff member, Chip Vincent, who had been working on updating the City's impact fees. The current fees have been the same since the early 1990's. Due to the length of time since being updated the increase in fees is great and will be phased in. These fees are a one-time payment only for new developments and the payment is for capital costs, not on- going operations. Impact fees can pay for system improvements in adopted CIP, but not for project improvements such as local streets or for repair, replacement or renovations. Currently the City has three impact fees,transportation, parks and fire. We anticipate phasing these adjusted rates over a four-year period. Next year, in 2012, we will be keeping the current fee then increasing it in the following four years. The alternates to imposing these fees is raising taxes or reducing our level of service. Mike O'Donin thanked Mr. Young for his thorough, easy to understand explanation of Ili the impact fees. �I Mike O'Donin made a motion to accept the findings as presented and move this I' document and its recommendations to Council for adoption. Tim Searing seconded the motion,there was no further discussion. A�I were in favor, motion carried. Cost Recovery and Program Pricing Guidelines Kris Stimpson, Recreation Manager and Tim Williams, Recreation Director, made a presentation on Cost Recovery and Program Pricing Guidelines. The Recreation Team has been addressing issues related to costs associated with providing programs and � services. The guidelines are to be implemented in the winter/spring programming of 2012. An annual review of the model will be conducted to adjust for inflation, community input and program evaluation recommendations. Tim explained that in the current economy we must look for all available revenue sources. There are various tiers associated with these guidelines, from full subsidy to self- sustaining. We must continually look at ways to do business better. Options also include partnering with other agencies and organizations and not duplicating programs already offered within the community. The current cost recovery analysis was shown breaking down revenue and expenses in various areas and the percentage recovered. Based on 2010 revenues vs. expenses, 50% is recovered at the Community H:\Boards and Commissions\Park Board\2011ParkBoard\31.8.11min.docx City of Renton � � Park Board Minutes November 8,2011 Page 3 of 4 Center and Recreation Services, and 72% at the Aquatic Center, Carco Theatre recovery is 30%, and lastly the Senior Center is 17%. Numerous pricing factors were considered including contractor and part time instructor pricing, incentives for early registration and season passes, addition of administrative fees, and establishing , partnerships to fill in gaps. Cynthia Burns made a motion to accept the pricing model as presented and staff will continue to work on it for implementation in the next budget cycle. Mike O'Donin seconded the motion, all were in favor, motion carried. Cynthia requested Staffto report back to the Board on the success for the program. V. ADMINISTRATOR'S REPORT Governor's Budget Recommendation Terry Higashiyama discussed two key factors going on at the State level that would impact the City's finances next year. One being the loss of a tax credit associated with the Benson Hill annexation. We were just one of seven cities affected by this possible decision. Secondly,the equalization of the liquor tax will create a loss in revenue. Both create a sizable decrease in revenue that will greatly impact our already lean budget. VI. NEW BUSINESS RiverRock Kelly Beymer, Parks/Golf Course Director, notified the Board that the concessionaire at Maplewood is revising their breakfast menu Monday thru Friday due to decreased traffic. The restaurant will still be open in the morning but serving more of a continental breakfast. The weekend menu will remain the same. We welcome any feedback. VII. OLD BUSINESS Update on Park Rangers Program Kelly has met with the Park Ranger applicants and looks forward to ramping up the program in Spring. She feels the Rangers also serve as ambassador and can recruit others. VIII. OTHER COMMUNICATION Terry thanked those who attended the WRPA mid-year conference. IX. ADJOURNMENT A motion was made by Troy Wigestrand and seconded by Tim Searing to adjourn the H:\Boards and Commissions\Park Board\2011ParkBoard\31.8.11min.docx City of Renton � � Park Board Minutes November 8,2011 Page 4 of 4 November 8, 2011, meeting at 6:55 p.m. All were in favor, motion carried, meeting adjourned. ( Signatu e H:\Boards and Commissions\Park Board\2011ParkBoard\11.8.11min.docx � CITY OF RENTON � BOARD OF PARK COMMISSIONERS SIGN-IN SHEET DATE: November 8, 2011 Do you wish to Name Address City/Zip Phone speak? 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RATE STU DY FOR IMPACT FEES FOR TRANSPORTATION, PARKS, and FIRE PROTECTION CITY OF RENTON, WASHINGTON .�� .......�_�..... ---....�_._.�.....w*r"'� r�ct�f f � R� x :, �:. ., � �, i F, . ,� .. � � .�� „„������ , � August 26, 2011 I • • � TABLE OF CONTENTS � 1.1NTRODUCTION....................................................................................................................................................5 2.STATUTORY BASIS AND METHODOLOGY...................................................................................................7 3.TRANSPORTATION INIPACT FEES................................................................................................................15 4.PARK IMPACT FEES...........................................................................................................................................30 5.FIRE IMPACT FEES.............................................................................................................................................40 LIST OF TABLES TABLE 1: IMPACT FEE RATES PER DWELL[NG UN[T.......................................................................................................5 TABLE 2: STREE7 PROJECTS ELIGIBLE FOR IMPACT FEES............................................................................................16 TABLE 3: COST OF EXISTING DEFICIENCIES.................................................................................................................1 J TABLE 4: COST OF FUTURE RESERVE CAPACITY.........................................................................................................2I TABLE 5: TOTAL PROJECT COST ELIGIBLE FOR IMPACT FEES......................................................................................22 TABLE 6: GROWTH TRIPS�P.M.PEAK HOUR�ON THE STREETNETWORK.....................................................................26 TABLE7: COST PER GROWTH TRIP..............................................................................................................................26 TABLE H: TRANSPORTATION IMPACT FEE RATES PER UNIT OF DEVELOPMENT...........................................................2g TABLE 9: ASSET INVENTORY AND CAP[TAL VALUE PER PERSON................................................................................31 TABLE 1 O:VALUE OF PARKS AND RECREATIONAL FACILITIES NEEDED FOR GROWTH.................................................33 TABLE 1 1:INVESTMENT NEEDED IN PARKS AND RECREATIONAL FAC[LITIES FOR GROWTH........................................34 TABLE I2:INVESTMENT IN PARKS AND RECREATIONAL FACIUTIES TO BE PAID BY GROWTH.....................................36 I TABLE 13:GROWTH COST PER PERSON.........................................................................................................................36 II TABLE 14:COST PER DWELLING UNIT..........................................................................................................................37 TABLE 15:PARK IMPACT FEE PER DWELLING UNIT......................................................................................................39 TABLE IE>: FIRE PROTECTION APPARATUS INVENTORY................................................................................................41 , � y� � • TABLE 17: FIRE AND BLS BUILDING INVENTORY........................................................................................................42 TABLE I 8: ANNUAI.IZED APPARA7'US COST.................................................................................................................43 TABLE I9: APPARATUS COST PER RESPONSE...............................................................................................................44 TABLE 20: ANNUAL FIRE AND BLS INCIDENTS............................................................................................................45 TABLE 21: F[RE INC[DENT RESPONSE BY TYPE OF APPARATUS...................................................................................45 TABLE 22: TOTAL APPARATUS COST PER FIRE INCIDENT............................................................................................46 TABLE 23: ANNUAL[ZED STATION COST PER SQUARE FOOT........................................................................................47 TABLE 24: STA7'ION COST PER FIRE AND BLS INCIDENT.............................................................................................47 TABLE2S:FIRE INCIDENTS............................................................................................................................................49 TABLE 26:FIRE INCIDEN7'S AT SPECIFIC LAND USES....................................................................................................49 TABLE 27:TRAFFIC RELATED FIRE INCIDENTS(ALLOCATED 7'O LAND USES�..............................................................SO TABLE 28:TOTAL ANNUAL F[RE INCIDENTS BY LAND USE..........................................................................................51 TABLE 29:ANNUAL FIRE INCIDENTS BY LAND USE.....................................................................................................52 TABLE 30:ENGINE COST OF RESPONSES TO FIRE INCIDEN7'S AT LAND USE CATEGORIES...........................................53 TABLE 31:LADDER COST OF RESPONSES 7'O FIRE INCIDENTS AT LAND USE CATEGORIES..........................................54 TABLE 32:A[D VEHICLE COST OF RESPONSES TO FIRE INCIDENTS AT LAND USE CATEGORIES..................................55 TABLE 33:HAZARDOUS MATERIALS VEHICLE COST OF RESPONSES TO FIRE INCIDENTS AT LAND USE CATEGOR[ES.56 TABLE 34:BRUSH TRUCK COST OF RESPONSES TO FIRE INC[DENTS AT LAND USE CATEGOR[ES................................57 TABLE 3S:STAFF VEHICLE COST OF RESPONSES TO F[RE INCIDENTS AT LAND USE CATEGORIES...............................SH TABLE 36:OTHER APPARATUS/EQUIPMENT COST OF RESPONSES TO FIRE INCIDENTS AT LAND USE CATEGORIES....59 TABLE 37:FIRE STATION COS7 OF RESPONSES TO FIRE INC[DENTS AT LAND USE CATEGORIES.................................60 TABLE 3H:EXAMPLE OF CALCULATION OF TOTAL CAPITAL COST FOR A SINGLE-FAMILY RESIDENTIAL UNIT...........60 TABLE 3I:TOTAL CAPITAL COST OF RESPONSES TO FIRE INCIDENTS AT LAND USE CATEGORIES..............................61 TABLE 4O:BLS INCIDENT RESPONSE BY TYPE OF APPARATUS....................................................................................62 TABLE 41:TOTAL APPARATUS COST PER BLS INCIDENT.............................................................................................63 TABLE42:BLS INCIDENTS............................................................................................................................................E4 TABLE 43:BLS INCIDENTS AT SPECIFIC LAND USES....................................................................................................64 TABLE 44:TRAFFIC RELATED BLS INCIDENTS(ALLOCATED TO LAND USES�..............................................................65 h • � ' � TABLE 45:TOTAL ANNUAL BLS INCIDENTS BY LAND USE..........................................................................................66 TABLE 46:ANNUAL BLS INCIDENTS BY LAND USE.....................................................................................................67 TABLE 47:ENGINE COST OF RESPONSES'f0 BLS INC[DENTS AT LAND USE CATEGORIES...........................................68 TABLE 48:LADDER COST OF RESPONSES TO BLS INCIDENTS AT LAND USE CATEGOR[ES..........................................69 TABLE 49:AID VEHICLE COS'T OF RESPONSES TO BLS INC[DENTS AT LAND USE CATEGORIES..................................70 TABLE 50:STAFF VEHICLE COS'f OF RESPONSES TO BLS INCIDENTS AT LAND USE CATEGOR[ES...............................71 TABLE 51:OTHER APPARATUS/EQUIPMENT COST OF RESPONSES TO BLS INCIDENTS AT LAND USE CATEGORfES....72 TABLE 52:FIRE STATION COST OF RESPONSES TO BLS INCIDENTS AT LAND USE CATEGORIES..................................73 TABLE 53:EXAMPLE OF CALCULATION OF TOTAL CAPITAL COST OF RESPONSES TO BLS INC[DENTS FOR A SINGLE- FAMILYRESIDENCE.............................................................................................................................................�3 TABLE S4:TOTAL CAPITAL COST OF RESPONSES TO BLS INCIDENTS AT LAND USE CATEGORIES..............................74 TABLE 55:TOTAL COST OF RESPONSE O FIRE AND BLS INCIDENTS BY LAND USE CATEGORY....................................75 TABLE 56:FIRE IMPACT FEES BY LAND USE................................................................................................................77 ; � � Rate Study for lmpact Fees • City of Renton 1 . INTRODUCTION The purpose of this study is to establish the rates for impact fees in the City of Renton, Washington for three types of public facilities authorized by RCW' 82.02.090(7). The following list provides the statutory name of each type of public facility and in parentheses the short name used in this study for each type of impact fee: • public streets and roads (transportation) • publicly owned parks, open space, and recreation facilities (parks) • fire protection facilities (fire) Summary of Impact Fee Rates Impact fees are paid by all types of new development2, Impact fee rates for new development are based on, and vary according to the type of land use. The following table summarizes the impact fee rates for several frequently used land use categories. Rates for other non-residential development are presented in the sections of this study for each type of public facility, Table 1: Impact Fee Rates per Dwelling Unit (1) (2) (3) (4) (5) (6) Type of Development Unit Transportation Parks Fire Total Single-Family dwelling unit $ 8,579,24 $ 2,740,07 $ 718.56 $ 12,037,87 Multi-Family dwelling unit 5,592,71 2,224.29 718,56 8,535.56 Office sq. ft. 14,82 none 0,21 15.03 Retail (shopping) sq. ft. 9.66 none 0.88 10.54 Industrial sq. ft. 10,72 none 0,12 10.84 Restaurant sq. ft. 33.65 none 2,67 36.32 Impact Fees vs. Other Developer Contributions Impact fees are charges paid by new development to reimburse local governments for the capital cost of public facilities that are needed to serve new development and the people who occupy or use the new development. Throughout this study, the term "developer" is used as a shorthand expression to describe anyone who is obligated to pay impact fees, including builders, owners ' Revised Code of Washington (RCW) is the state law of the State of Washington, 2 The impact fee ordinance may specify exemptions for low-income housing and/or "broad public purposes", but such exemptions must be paid for by public money, not other impact fees. The ordinance may specify if impact fees apply to changes in use, remodeling, etc. Henderson, Young & August 26, 2011 Page 5 Company � • r Rate Study for Impact Fees • City of Renton or developers. Local governments charge impact fees for several reasons: 1) to obtain revenue to pay for some of the cost of new public facilities; 2) to implement a public policy that new development should pay a portion of the cost of facilities that it requires, and that existing development should not pay all of the cost of such facilities; and 3) to assure that adequate public facilities will be constructed to serve new development, The impact fees that are described in this study do not include any other forms of developer contributions or exactions, such as; mitigation or voluntary payments authorized by SEPA (the State Environmental Policy Act, RCW 43.21 C); system development charges for water and sewer authorized for utilities (RCW 35,92 for municipalities, 56,16 for sewer districts, and 57,08 for water districts); local improvement districts or other special assessment districts; linkage fees; or land donations or fees in lieu of land. Organization of the Study This impact fee rate study contains five chapters; • Chapter 1 provides a summary of impact fee rates for frequently used land use categories, and other introductory materials. • Chapter 2 summarizes the statutory requirements for developing impact fees, and describes the compliance with each requirement. • Chapters 3 - 5 present impact fees for transportation (Chapter 3), parks (Chapter 4), and fire (Chapter 5). Each chapter provides the methodology that is used to develop the fees, presents the formulas, variables and data that are the basis for the fees, and documents the calculation of the fees. The methodology is designed to comply with the requirements of Washington state law, Henderson, Young & August 26, 2011 Page b Company y � � Rate Study for lmpact Fees • City of Renton 2. STATUTORY BASIS AND METHODOLOGY This chapter summarizes the statutory requirements for impact fees in the State of Washington, and describes how the City of Renton's impact fees comply with the statutory requirements. Statutory Requirements for Impact Fees The Growth Management Act of 1990 (Chapter 17, Washington Laws, 1990, 1 st Ex, Sess.) authorizes local governments in Washington to charge impact fees. RCW 82.02.050 - 82.02.090 contain the provisions of the Growth Management Act that authorize and describe the requirements for impact fees. The impact fees that are described in this study are not mitigation payments authorized by the State Environmental Policy Act (SEPA). There are several important differences between impact fees and SEPA mitigations. Three aspects of impact fees that are particularly noteworthy are: 1) the ability to charge for the cost of public facilities that are "system improvements" (i.e„ that provide service to the community at large) as opposed to "project improvements" (which are "on-site" and provide service for a particular development); 2) the ability to charge small-scale development their proportionate share, whereas SEPA exempts small developments; and 3) the predictability and simplicity of impact fee rate schedules compared to the cost, time and uncertain outcome of SEPA reviews conducted on a case-by-case basis. The following synopsis of the most significant requirements of the law includes citations to the Revised Code of Washington as an aid to readers who wish to review the exact language of the statutes, Types of Public Facilities Four types of public facilities can be the subject of impact fees; 1) public transportation and roads; 2) publicly owned parks, open space and recreation facilities; 3) school facilities; and 4) fire protection facilities (in jurisdictions that are not part of a fire district), RCW 82.02.050(2) and(4), and RCW 82,02,090(7) Types of lmprovements Impact fees can be spent on "system improvements" (which are typically outside the development), as opposed to "project improvements" (which are typically provided by the developer on-site within the development), RCW 82.02.050(3)(a) an d RC W 82,02.090(6) an d(9) Henderson, Young & August 26, 201 1 Page 7 Company � • , Rate Study for lmpact Fees • City of Renton Benefit to Deve/opment Impact fees must be limited to system improvements that are reasonably related to, and which will benefit new development. RCW 82,02.050(3)(a) and (c). Local governments must establish reasonable service areas (one area, or more than one, as determined to be reasonable by the local government), and local governments must develop impact fee rate categories for various land uses. RCW 82.02.060(6) Proportionate Share Impact fees cannot exceed the development's proportionate share of system improvements that are reasonably related to the new development. The impact fee amount shall be based on a formula (or other method of calculating the fee) that determines the proportionate share. RCW 82.02.050(3)(b) and RCW 82.02.060(1) Reductions of lmpact fee Amounts Impact fees rates must be adjusted to account for other revenues that the development pays (if such payments are earmarked for or proratable to particular system improvements). RCW 82.02.050(1)(c) and (2) and RCW 82.02.060(1)(b) Impact fees may be credited for the value of dedicated land, improvements or construction provided by the developer (if such facilities are in the adopted CFP as system improvements eligible for impact fees and are required as a condition of development approval). RCW 82.02,060(3) Exemptions fiom lmpact Fees Local governments have the discretion to provide exemptions from impact fees for low-income housing and other "broad public purpose" development, but all such exempt fees must be paid from public funds (other than impact fee accounts). RCW 82.02.060(2) Deve%pei Options Developers who are liable for impact fees can submit data and or/analysis to demonstrate that the impacts of the proposed development are less than the impacts calculated in this rate study. RCW 82.02.060(5). Developers can pay impact fees under protest and appeal impact fee calculations. 2CW 82.02.060(4) and RCW 82.02.070(4) and (5). The developer can obtain a refund of the impact fees if the local government fails to expend or obligate the impact fee payments within 10 years, or terminates the impact fee requirement, or the developer does not proceed with the development (and creates no impacts). RCW 82,02.080 Henderson, Young & August 26, 2011 Page 8 Company � M � Rate Study fo�lmpact Fees • City of Renton Capita/Facilities Plans Impact fees must be expended on public facilities in a capital facilities plan (CFP) element or used to reimburse the government for the unused capacity of existing facilities, The CFP must conform to the Growth Management Act of 1990, and must identify existing deficiencies in facility capacity for current development, capacity of existing facilities available for new development, and � additional facility capacity needed for new development. RCW 82.02.050(4), RC W 82,02.060(7), and RC W 82.02.070(2) Ne w Versus Existing Facilities Impact fees can be charged for new public facilities (RCW 82.02.060(1)(a) and for the unused capacity of existing public facilities (RCW 82.02.060(7) subject to the proportionate share limitation described above. Accounting Requirements The local government must separate the impact fees from other monies, expend or obligate the money on CFP projects within 10 years, and prepare annual reports of collections and expenditures. RCW 82.02.070(1)-(3) Compliance With Statutory Requirements for Impact Fees Many of the statutory requirements listed above are fulfilled in .Chapters 3 - 5 of this study that present the calculation of each type of impact fee. Some of the statutory requirements are fulfilled in other ways, as described below. Types of Public Facilities This study contains impact fees for three of the four types of public facilities authorized by statute: transportation, parks and fire, This study does not contain impact fees for schools. In general, local governments that are authorized to charge impact fees are responsible for specific public facilities for which they may charge such fees, The City of Renton is legally and financially responsible for the transportation, parks and fire facilities it owns and operates within its jurisdiction. In no case may a local government charge impact fees for private facilities, but it may charge impact fees for some public facilities that it does not administer if such facilities are "owned or operated by government entities" (RCW 82,02.090(7), Thus, a city or county may charge impact fees for transportation, and enter into an agreement with the State of Washington for the transfer, expenditure, and reporting of transportation impact fees for state roads. A city may only charge and use impact fees on State roads if it has an agreement with the State, and the City CFP includes the state road projects. Henderson, Young & August 26, 2011 Page 9 Company � � • Rate Study for lmpact Fees • City of Renton Types of lmprovements The impact fees in this study are based on system improvements that are described in Chapters 3 - 5 for each type of impact fee, No project improvements are included in this study. The public facilities that can be paid for by impact fees are "system improvements" (which are typically outside the development), and "designed to provide service to service areas within the community at large" as provided in RCW 82,02.050(9)), as opposed to "project improvements" (which are typically provided by the developer on-site within the development or adjacent to the development), and "designed to provide service for a development project, and that are necessary for the use and convenience of the occupants or users of the project" as provided in RCW 82,02.050(6). The capital improvements costs contained in Chapters 3-5 comply with these requirements, Impact fee revenue can be used for the capital cost of public facilities. Impact fees cannot be used for operating or maintenance expenses, The cost of public facilities that can be paid for by impact fees include design studies, engineering, land surveys, land and right of way acquisition, engineering, permitting, financing, administrative expenses, construction, applicable mitigation costs, and capital equipment pertaining to capital improvements. Benefit to Deve%pment, Proportionate Share and Reductions of Fee Amounts The law imposes three tests of the benefit provided to development by impact fees; 1) proportionate share, 2) reasonably related to need, and 3) reasonably related to expenditure (RCW 80.20.050�3)). In addition, the law requires the designation of one or more service areas (RCW 82.02.060(6) 1. Proportionate Share. First, the "proportionate share" requirement means that impact fees can be charged only for the portion of the cost of public facilities that is "reasonably related" to new development, In other words, impact fees cannot be charged to pay for the cost of reducing or eliminating deficiencies in existing facilities, Second, there are several important implications of the proportionate share requirement that are not specifically addressed in the law, but which follow directly from the law; • Costs of facilities that will benefit new development and existing users must be apportioned between the two groups in determining the amount of the fee. This can be accomplished in either of two ways; (1) by allocating the total cost between new and existing users, or (2) calculating the cost per unit and applying the cost only to new development when calculating impact fees. Henderson, Young & August 26, 201 1 Page 10 Company � �► • Rate Study for lmpact Fees • City of Renton • Impact fees that recover the costs of existing unused capacity should be based on the government's actual cost. Carrying costs may be added to reflect the government's actual or imputed interest expense. The third aspect of the proportionate share requirement is its relationship to the requirement to provide adjustments and credits to impact fees, where appropriate. These requirements ensure that the amount of the impact fee does not exceed the proportionate share. ' • The "adjustments" requirement reduces the impact fee to account for past and future payments of other revenues (if such payments are earmarked for, or proratable to, the system improvements that are needed to serve new growth), Each impact fee calculated in this study includes an adjustment that accounts for any other revenue that is paid by new development and used by the City to pay for a portion of growth's proportionate share of costs, This adjustment is in response to the limitations in RCW 82.02.060 (1)(b) and RCW 82,02.050(2), • The "credit" requirement reduces impact fees by the value of dedicated land, improvements or construction provided by the developer (if such facilities are in the adopted CFP, identified as the projects for which impact fees are collected, and are required as a condition of development approval), The law does not prohibit a local government from establishing reasonable constraints on determining credits, For example, the location of dedicated land and the quality and design of donated street, park or fire public facilities can be required to be acceptable to the local government. 2. Reasonably Related to Need. There are many ways to fulfill the requirement that impact fees be "reasonably related" to the development's need for public facilities, including personal use and use by others in the family or business enterprise (direct benefit), use by persons or organizations who provide goods or services to the fee-paying property or are customers or visitors at the fee paying property (indirect benefit), and geographical proximity (presumed benefit), These measures of relatedness are implemented by the following techniques; • Impact fees are charged to properties which need (i.e., benefit from) new public facilities, The City of Renton provides its infrastructure to all kinds of property throughout the City, therefore impact fees have been calculated for all types of property with one exception: park impact fees are not calculated for non-residential property because the dominant stream of benefits redounds to the occupants and owners of dwelling units and there is insufficient data to document the proportionate share of parks and recreational facilities reasonably needed by non-residential development, Henderson, Young & August 26, 2011 Page 11 Company � � . Rate Study for Impact Fees • City of Renton • The relative needs of different types of growth are considered in establishing fee amounts (i.e., different impact values for different types of land use). Chapter 3 uses different trip generation rates for each type of land use, Chapter 4 uses different persons per dwelling unit, and Chapter 5 uses different emergency response rates for each type of land use. • Feepayers can pay a smaller fee if they demonstrate that their development will have less impact than is presumed in the impact fee schedule calculation for their property classification. Such reduced needs must be permanent and enforceable (i,e„ via land use restrictions). ' 3. Reasonably Related to Expenditures. Two provisions of Renton's impact fee ordinance comply with the requirement that expenditures be "reasonably related" to the development that paid the impact fee. First, the requirement that fee revenue must be earmarked for specific uses related to public facilities ensures that expenditures are on specific projects, the benefit of which has been demonstrated in determining the need for the projects and the portion of the cost of needed projects that are eligible for impact fees as described in this study. Second, impact fee revenue must be expended or obligated within 10 years, thus requiring the impact fees to be used to benefit to the feepayer and not held by the City. 4. Service Areas for Impact Fees Impact fees in some jurisdictions are collected and expended within service areas that are smaller than the jurisdiction that is collecting the fees, Impact fees are not required to use multiple service areas unless such "zones" are necessary to establish the relationship between the fee and the development, Because of the compact size of the City of Renton and the accessibility of its transportation, parks and fire systems to all property within the City, Renton's transportation, parks and fire systems serve the entire City, therefore the impact fees are based on a single service area corresponding to the boundaries of the City of Renton, Exemptions The City's impact fee ordinance addresses the subject of exemptions. Exemptions do not affect the impact fee rates calculated in this study because of the statutory requirement that any exempted impact fee must be paid from other public funds. As a result, there is no increase in impact fee rates to make up for the exemption because there is no net loss to the impact fee account as a result of the exemption. Henderson, Young & August 26, 2011 Page 12 Company � � Rate Study fo�lmpact Fees • City of Renton Deve%per Options A developer who is liable for impact fees has several options regarding impact fees, The developer can submit data and or/analysis to demonstrate that the impacts of the proposed development are less than the impacts calculated in this rate study. The developer can appeal the impact fee calculation by the City of Renton. If the local government fails to expend the impact fee payments within 10 years of receipt of such payments, the developer can obtain a refund of the impact fees, The developer can also obtain a refund if the development does not proceed and no impacts are created. All of these provisions are addressed in the City's impact fee ordinance, and none of them affect the calculation of impact fee rates in this study. Capita/Facilities P/an There are references in RCW to the "capital facilities plan" (CFP) as the basis for projects that are eligible for funding by impact fees, Cities often adopt documents with different titles that fulfill the requirements of RCW 82.02.050 et, seq, pertaining to a "capital facilities plan". The Transportation Element, Park Element and Capital Facilities Plan Element of the City's Comprehensive Plan fulfill the requirements in RCW, and are considered to be the "capital facilities plan" (CFP) for the purpose of this impact fee rate study. In addition, the City's Capital Investment Program (CIP) section of the City's Budget provides up-to- date and detailed information about the projects in the CFP. The City also produces an annual update of the multi-year Transportation Improvements Plan (TIP) All references to a CFP in this study are references to the Comprehensive Plan elements, City CIP and TIP documents listed above. The requirement to identify existing deficiencies, capacity available for new development, and additional public facility capacity needed for new development is determined by analyzing levels of service for each type of public facility. Chapters 3 -5 provide this analysis for each type of public facility, New Versus Existing Facilities, Accounting Requirements Impact fees must be spent on capital projects contained in an adopted capital facilities plan, or they can be used to reimburse the government for the unused capacity of existing facilities, Impact fee payments that are not expended or obligated within 10 years must be refunded unless the City Council makes a written finding that an extraordinary and compelling reason exists to hold the fees for longer than 10 years. In order to verify these two requirements, impact fee revenues must be deposited into separate accounts of the government, and annual reports must describe impact fee revenue and expenditures, These requirements are addressed by Renton's impact fee ordinance, and are not factors in the impact fee calculations in this study. Henderson, Young & August 26, 2011 Page 13 Company � � Rate Study for Impact Fees • City of Renton Data Sources The data in this study of impact fees in Renton, Washington was provided by the City of Renton, unless a different source is specifically cited, Data Rounding The data in this study was prepared using computer spreadsheet software. In some tables in this study, there may be very small variations from the results that would be obtained using a calculator to compute the same data. The reason for these insignificant differences is that the spreadsheet software was allowed to calculate results to more places after the decimal than is reported in the tables of these reports, The calculation to extra places after the decimal increases the accuracy of the end results, but causes occasional minor differences due to rounding of data that appears in this study. Henderson, Young & August 26, 2011 Page 14 Company � � � Rate Study for lmpact Fees • City of Renton 3. TRANSPORTATION IMPACT FEES Impact fees for transportation begin with the list of projects in the Transportation Element and Capital Facilities Plan Element of City's Comprehensive Plan and ' the City's CIP and TIP (which are the "CFP", as noted in Chapter 2). The projects in these elements are analyzed to identify capacity costs attributable to new development. The costs are apportioned between existing deficiencies (if any) � and growth capacity, The capacity costs for growth are further apportioned to eliminate the cost of future reserve capacity. The costs are adjusted to reflect other sources of revenue that reduce the cost of the facility that is to be paid by impact fees, The eligible costs are divided by the growth in trips to calculate the cost per growth trip. The cost per growth trip is applied to the unique trip generation rates for each type of land use. The amount of the fee is determined by charging each fee-paying development for cost of the number of growth trips that it generates. These steps are described below in the formulas, descriptions of variables, tables of data, and explanation of calculations of transportation impact fees. Formula T-1: Transportation Projects Eligible for Impact Fees The City has many projects in its transportation plan. Only those that add capacity to the streets in order to maintain the City's adopted standard for level ', of service are eligible for impact fees. Non-Capacity T-1 , All Capital _ Projects or Not _ Projects Eligible for Projects Needed for Level Impact Fees of Service There is one variable that requires explanation: (A) street capacity projects, and needed for level of service. Variab/e (A):Street Capacity Projects RCW 82.02.050 (4)(c) requires identification of public facility improvements needed to serve new development. Projects in the Transportation Element and Capital Facilities Plan Element, the CIP and TIP, and previously constructed projects are not eligible for impact fees if they do not add capacity to the City's current street system. r I vel of service are also In addition, capacity projects that are not needed fo e not eligible for impact fees. For each capacity project, the future traffic volume (the amount of traffic on the street) was compared to the current capacity of the street (the amount of traffic the street is designed to carry without exceeding the adopted level of service standard), If the future volume is Henderson, Young & August 26, 2011 Page 15 Company � � . Rate Study for lmpact Fees • City of Renton greater than the current capacity, the project is needed in order to increase the capacity to serve the future volume, and the project is included in the impact fee. If, however the future volume is less than the current capacity, the City does not need the project for level of service, therefore the project is not eligible for impact fees3. A similar analysis was conducted of level of service for previously constructed projects eligible for "reimbursement" impact fees. RCW 82.02,050 (4)(b) requires this analysis of the additional demands placed on existing public facilities by new development, Table 2 lists the transportation projects that are eligible for impact fees. projects 1 - 13 are new projects that will be built in the future. Projects A - C were completed by the City and they have unused capacity that is available to serve new development ("reimbursement projects")4. Table 2: Street Projects Eligible for Impact Fees (1) (2) (3) (4) (5) # Street From To Descri tion New Projects Widen existing 2-lane roadway to provide 4 lanes 1 156th Ave SE NE 4th St SE 143rd St with left turn lanes at intersection and two-way left turn lane where needed. 2 Benson Road South 26th St South 31st St Arterial widening Widen Carr Road between 105th Ave SE and 109th Ave SE to provide an additional EB lane;at the 108th Ave SE intersection,widen the Carr Road EB approach to provide 3 Carr Rd/Benson Rd(SR 515) intersection 21eft turn lanes and 3 thru lanes;at the 108th Ave SE intersection,widen the WB approach to provide 2 left turn lanes,a separate right turn lane,2 WB lanes,and 3 EB lanes;widen the 108th SE a roach at the Carr Road 3 The City may have other reasons to build the project, and the project may provide additional capacity, but the project cannot be included in the impact fee if it is not needed for level of service. ° RCW 82,02.060(7) authorizes the City to impose impact fees for system improvement costs previously incurred by the City to the extent that new growth and development will be served by the previously constructed improvements, RCW 82,02,060 (1)(d) authorizes the cost of existing public facilities improvements in the calculation of impact fees. Henderson, Young & August 26, 2011 Page 16 Company � � � Rate Study for lmpact Fees • City of Renton (1) (2) (3) (4) (5) # Street From To Descri tion intersection to provide a separate right turn lane; widen Benson Drive(SR515) between Carr Road intersection and 108th Way SE(old Benson Road)to provide a separate NB right turn lane Add turn lanes at Talbot West of Talbot intersection;Widen to add EB 4 Carr Road Central 108th PI Road lane between Talbot and Benson New SR 167 SB Off-ramp; West of Talbot new collector-distributor road; 5 Carr Road West Lind Avenue Road Add EB lane between Lind and Talbot 6 Grady Way Talbot Road Rainier Ave Arterial improvements Widen existin roadwa to i 9 Y provide dual SB left turn lanes on Lk Washington Blvd approach to Logan Ave/ Garden Ave/N Park Dr 7 Lake Washington Blvd Park Ave N Coulon Park intersection and a NB left turn Entrance lane on Lk Washington Blvd approach to Coulon Park Entrance intersection; install new traffic signal at Lk WA Blvd/Coulon Park Entrance intersection Widen existing roadway to 8 Lind Ave SW SW 16th St SW 43rd St provide center two-way left turn lane Widen roadway to provide an 9 Logan Ave N/Garden Ave N/ Intersection additional EB left turn lane on Lk Washington Blvd EB Logan approach at Lk WA Blvd intersection Widen existing 4-lane roadway to provide additional 10 Maple Valley Hwy(SR 169) Park entrance East City Limits lane in each direction;traffic operations improvements at intersections 1200 ft north of New 4-lane roadways with 11 Park Ave N Extension Logan Ave N Logan center left turn lane where needed 12 South 7th Street Rainier Ave S S Grady Way EB lane Shattuck-Talbot, signal @ Shattuck&Talbot 13 SW 27th StreeUStrander Oakdale West Valley Hwy New 5 lane arterial Boulevard Connection Henderson, Young & August 26, 201 1 Page 17 Company � ` . Rate Study for lmpact Fees • City of Renton (1) (2) (3) (4) (5) # Street From To Descri tion Reimbursement Projects(Impact Fee Reimburses Local Revenues) A Duvall Sunset North City limits Reconstructed to 5 lane road B Logan 6th Garden New 3-5 lane road and 2 signals C SR 169(Maple Valley Hwy) I-405 Park entrance Added one lane in each direction Formula T-2: Eligible Cost of Projects Needed for Level of Service A project that is needed for level of service is eligible for impact fees, but some of the project's costs may not be eligible for impact fees. Ineligible costs include the cost of existing deficiencies, and the value of extra ("reserve") capacity beyond that needed by new development. Cost of Projects Costs Not Growth's Share of T-2, Eligible for - Eligible for = Eligible Cost Impact Fees Impact Fee There are two new variables that require explanation: (B) costs of projects, and (C) costs not eligible for impact fee. Variab/e (8): Costs of Projects The costs in this study are the same costs of the projects in the Transportation Element and Capital Facilities Plan Element and the CIP and TIP, The costs of street projects used in this study include the full cost of the project, including engineering, right of way, and construction costs. The cost of street projects does not include any costs for interest or other financing, If the City decides in the future to borrow money for transportation, the carrying costs for financing can be added to the costs in this study, and the impact fee can be recalculated to include such costs. Variab/e (C): Costs Not Eligible for lmpact Fee Costs that are eligible for impact fees must meet the statutory requirement to be growth's proportionate share of projects that are reasonably needed to serve growth. Two aspects of a project that do not meet this requirement include existing deficiencies, and reserve capacity in excess of that needed by growth, These elements will be analyzed in a series of tables below, Henderson, Young & August 26, 201 1 Page 18 Company , � � Rate Study for lmpact Fees • City of Renton EXISTING DEFICIENCIES I RCW 82A2.050 (4)(a) requires an analysis of deficiencies in public facilities � serving existing development. Table 3 contains the analysis of deficiencies for future and reimbursement projects (projects previously constructed). Existing deficiencies are determined by comparing existing traffic volume to existing capacity of each street that is planned for improvement, If current traffic exceeds current capacity, the "excess" traffic is the number of deficient trips. The deficient trips are divided by the amount of new capacity to be added in order to calculate the percent of the project that will make up for existing deficiencies. The deficiency percentage is multiplied times the project costs to calculate the portion of the project cost that is attributable to existing deficiencies, The portion of the total $224.8 million of eligible projects that is for existing deficiencies equals $3,870,236 (1 .7% of the total cost), Table 3: Cost of Existing Deficiencies ��) �2) �3) �4) �5) �6) ��) �8) �9) Existing 2008 (Deficiency) Capacity 2008 Existing Increase °/a of Cost of Before Traffic (Deficiency) in Increased Existing # Name of Pro'ect Total Cost Pro'ect Volume Or Reserve Ca aci Ca aci Deficienc New Projects 1 156th Ave SE: $13,202,000 1,400 1,127 274 1,400 0.00% $ 0 NE 4th St to SE 143rd St 2 Benson Road 4,500,000 1,600 1,559 42 1,600 0.00% 0 South 26th St to South 31 st St 3 515)Rd/Benson Rd(SR 23,391,000 6,400 5,701 699 800 0.00% 0 intersection 4 Carr Road Central 32,488,500 3,200 2,776 424 1,600 0.00% 0 West of Talbot Road to 108th PI 5 Carr Road West 11,696,400 3,200 3,527 (327) 1,200 27.25% 3,187,269 Lind Avenue to West of Talbot Rd 6 Grady Way 3,000,000 3,200 3,324 (124) 800 15.54% 466,250 Talbot Road to Rainier Ave 7 Lake Washington Blvd 548,238 1,300 1,483 (183) 1,300 14.08% 77,175 Park Ave N to Coulon Park Entrance 8 Lind Ave SW 3,500,000 2,400 1,362 1,039 800 0.00% 0 SW 16th St to SW 43rd St Henderson, Young & August 26, 2011 Page 19 Company � � . Rate Study for Impact Fees • City of Renton ��) �2) �3) �4) �5) �6) ��) �8) �9) Existing 2008 (Deficiency) Capacity 2008 Existing Increase %of Cost of � Before Traffic (Deficiency) in Increased Existing !, # Name of Pro'ect Total Cost Pro'ect Volume Or Reserve Ca aci Ca acit Deficienc 9 Logan Ave N/Garden Z,683,492 2,800 2,904 (104) 2,000 5.20% 139,542 Ave N/ Lk Washington Blvd Intersection 10 �fi9je Valley Hwy(SR g3,693,292 3,550 2,714 836 1,775 0.00% 0 Park entrance to East Cit Limits 11 Park Ave N Extension 5,000,000 0 0 0 1,300 0.00% 0 Logan Ave N to 1200 ft north 12 South 7th Street 7,000,000 1,760 1,323 437 400 0.00% 0 Rainier Ave S to S Grady Wa 13 SW 27th SUStrander g,000,000 0 0 0 3,200 0.00% 0 Connection Oakdale to West Valley Hw Subtotal:New Projects 199,702,922 3,870,236 Reimbursement Projects(Impact Fee Reimburses Local Revenues A Duvall 8,190,713 1,714 1,673 41 1,829 0.00% 0 Sunset to North City limits B Logan 8,583,652 0 0 0 3,520 0.00% 0 6th to Garden C HWy)69(Maple Valley g,306,708 3,600 3,293 307 1,800 0.00% 0 I-405 to Park entrance Subtotal: Reimbursement 25,081,073 0 Pro'ects Total All Projects 224,783,995 3,870,236 FUTURE RESERVE CAPACITY Capacity in excess of trips generated by growth is considered future reserve capacity. It may eventually be used by growth that occurs after the planning horizon of the Transportation Element and Capital Facilities Plan Element, and it may be repaid in part by future impact fees, but it is not eligible to be included in the impact fees calculated in this study. Table 4 presents the analysis of future reserve capacity for future and reimbursement projects (projects previously constructed). The amount of future reserve capacity is determined by comparing the total capacity of the improved street to the forecast of traffic volume at the end of the planning period. The amount by which future Henderson, Young & August 26, 2011 Page 20 Company � � Rate Study for lmpact Fees • City of Renton capacity exceeds future traffic volume is the number of future reserve capacity trips. The future reserve capacity trips are divided by the amount of new capacity to be added in order to calculate the percent of the project that wili be future reserve capacity, The future reserve capacity percentage is muitiplied times the project costs to calculate the portion of the project cost that is attributable to future reserve capacity. The portion of the total $224.8 million of eligible projects that is for future reserve capacity equals $82,428,993 (36,7% of the total cost). Table 4: Cost of Future Reserve Capacity ��) �2) �3) �4) �5) �6) �7) �$) 2030 Future Capacity 2030 Post 2030 Reserve Cost of When Traffic (Deficiency) %of Future # Name of Pro'ect Total Cost Com lete Volume Or Reserve Increase Reserve New Projects 1 156th Ave SE: $13,202,000 2,800 1,728 1,072 76.57% $10,108,960 NE 4th St to SE 143rd St 2 Benson Road 4,500,000 3,200 2,046 1,154 72.13% 3,245,625 South 26th St to South 31 st St 3 515)Rd/Benson Rd(SR 23,391,000 7,200 6,853 347 43.38°/a 10,145,846 intersection 4 Carr Road Central 32,488,500 4,800 3,596 1,204 75.23% 24,440,828 West of Talbot Road to 108th PI 5 Carr Road West 11,696,400 4,400 4,476 (76) 0.00°/a 0 Lind Avenue to West of Talbot Rd 6 Grady Way 3,000,000 4,000 4,787 (787) 0.00°/a 0 Talbot Road to Rainier Ave 7 Lake Washington Blvd 548,238 2,600 1,885 715 55.00% 301,531 Park Ave N to Coulon Park Entrance 8 Lind Ave SW 3,500,000 3,200 2,516 684 85.55% 2,994,141 SW 16th St to SW 43rd St 9 N/gan Ave N/Garden Ave 2,683,492 4,800 4,637 163 8.15% 218,705 Lk Washington Blvd Intersection 10 Maple Valley Hwy(SR 169) 83,693,292 5,325 4,806 519 29.26% 24,489,129 Park entrance to East City Limits 11 Park Ave N Extension 5,000,000 1,300 2,288 (988) 0.00% 0 Logan Ave N to 1200 ft north Henderson, Young & August 26, 2011 Page 21 Company � � Rate Study for lmpact Fees • City of Renton ��) �2) �3) �4) �5) �6) ��) �8) 2030 Future Capacity 2030 Post 2030 Reserve Cost of When Traffic (Deficiency) %of Future # Name of Pro'ect Total Cost Com lete Volume Or Reserve Increase Reserve 12 South 7th Street 7,000,000 2,160 2,100 60 15.05% 1,053,500 Rainier Ave S to S Grady Wee 13 SW 27th SUStrander g,000,000 3,200 3,073 127 3.97% 357,188 Connection Oakdale to West Valley Hw Subtotal: New Projects 199,702,922 77,355,451 Reimbursement Projects(Impact Fee Reimburses Local Revenues A Duvall 8,190,713 3,543 2,465 1,078 58.93% 4,826,762 Sunset to North City limits B Logan 8,583,652 3,520 3,419 101 2.87% 246,780 6th to Garden C SR 169(Maple Valley Hwy) 8,306,708 5,400 6,342 {942) 0.00% 0 I-405 to Park entrance Subtotal: Reimbursement 25,081,073 5,073,542 Pro'ects Total All Projects 224,783,995 82,428,993 COST ELIGIBLE FOR IMPACT FEES Table 5 begins with the total cost of projects needed for growth, The columns to the right repeat the costs of existing deficiencies (from Table 3), and future reserve capacity (from Table 4). These costs are subtracted from the total cost of each project to calculate the remaining cost of each project that is eligible for impact fees, The total eligible cost is $138,484,767 which is bl ,b% of the $224.8 million total cost of eligible projects. Table 5: Total Project Cost Eligible for Impact Fees (1) (2) (3) (4) (5) (6) 2008-2030 Cost of Cost of Project Cost Existing Future Eligible for # Name of Pro'ect Total Cost Deficienc Reserve Im act Fees New Projects 1 156th Ave SE: $13,202,000 $ 0 $10,108,960 $3,093,040 NE 4th St to SE 143rd St 2 Benson Road 4,500,000 0 3,245,625 1,254,375 South 26th St to South 31 st St Henderson, Young & August 26, 2011 Page 22 Company � • Rate Study for lmpact Fees • City of Renton (1) (2) (3) (4) (5) (6) 2008-2030 Cost of Cost of Project Cost Existing Future Eligible for # Name of Pro'ect Total Cost Deficienc Reserve Im act Fees 3 Carr Rd/Benson Rd(SR 515) 23,391,000 0 10,145,846 13,245,154 intersection 4 Carr Road Central 32,488,500 0 24,440,828 8,047,672 West of Talbot Road to 108th PI 5 Carr Road West 11,696,400 3,187,269 0 8,509,131 Lind Avenue to West of Talbot Rd� 6 Grady Way 3,000,000 466,250 0 2,533,750 Talbot Road to Rainier Ave 7 Lake Washington Blvd 548,238 77,175 301,531 169,532 Park Ave N to Coulon Park Entrance 8 Lind Ave SW 3,500,000 0 2,994,141 505,859 SW 16th St to SW 43rd St 9 Logan Ave N/Garden Ave N/ 2,683,492 139,542 218,705 2,325,246 Lk Washington Blvd Intersection 10 Maple Valley Hwy(SR 169) 83,693,292 0 24,489,129 59,204,163 Park entrance to East City Limits 11 Park Ave N Extension 5,000,000 0 0 5,000,000 Logan Ave N to 1200 ft north 12 South 7th Street 7,000,000 0 1,053,500 5,946,500 Rainier Ave S to S Grady Way 13 SW 27th SUStrander Connection 9,000,000 0 357,188 8,642,813 Oakdale to West Valley Hwy Subtotal:New Projects 199,702,922 3,870,236 77,355,451 118,477,235 Reimbursement Projects(Impact Fee Reimburses Local Revenues) A Duvali 8,190,713 0 4,826,762 3,363,951 Sunset to North City limits B Logan 8,583,652 0 246,780 8,336,872 6th to Garden C SR 169(Maple Valley Hwy) 8,306,708 0 0 8,306,708 I-405 to Park entrance Subtotal: Reimbursement Projects 25,081,073 0 5,073,542 20,007,532 Total All Projects 224,783,995 3,870,236 82,428,993 138,484,767 Reduction for RCW 82.02.050(2)@ 3% -4,154,543 of eli ible cost Growth's Share of Eligible Cost 134,330,224 Henderson, Young & August 26, 2011 Page 23 Company • . Rate Study for Impact Fees • City of Renton The final step in Table 5 is to further reduce the cost that is needed by new development in order to implement a conservative interpretation of RCW 82.02.050(7) which provides that "...the financing for system improvements to serve new development ,.. cannot rely solely on impact fees." The statute provides no further guidance, and "not rely solely" could be anything between 0.1% and 99.9%, thus additional analysis is presented below. As noted previously, the total cost of all eligible projects is $224,8 million, and only 1.7% of that is for existing deficiencies, Because the future reserve capacity equals 36,7% of total costs, the City will be required to pay for those costs, and may or may not eventually recoup those costs from development that occurs after the 2030 planning horizon for the transportation improvements. Arguably the 1,7% and the 36,6% that will be paid by the City provide sufficient compliance with the requirement to "not rely solely on impact fees." However, in the event that the intent of the statute is more narrowly construed to mean that the City should "not rely solely on impact fees" for the $138,484,767 cost that is eligible for impact fees, an additional 3% reduction ($4,154,543) is taken at the end of Table 5, leaving a net total cost of growth's share of $134,330,224, This amount will be used as the basis for the remaining calculations of the transportation impact fee for Renton. No other reduction is warranted for other revenues that the City may obtain for transportation capital improvements, Grant revenue is primarily regional in nature, and will be used by the City for the portion of the eligible $134 million that is attributable to external traffic that comes from development that does not pay impact fees to Renton. Any other local revenue would be used first to pay the $4,154,839 for the 3% reduction, then for the 1 .7% for existing deficiencies, and lastly for the 36.7% for future reserve capacity. In other words, there are no other revenues that would be subject to the "adjustment" provisions of RCW 82,02.060(1)(b). If a developer believes that significant prior payments were made by their property that meet the criteria of RCW 82,02.060(1)(b), the applicant can submit supporting information and request a special review to reduce their impact fee by the amount of such prior payments made by their property and used for the same system improvements that are the basis of the impact fee (i.e., those listed in Tables 2-5). Formula T-3: Growth Trips on the Street Network The growth of trips on Renton's streets and roads is calculated from data produced by the City's traffic model: Future Current Growth T-3. P,M. Peak Hour - P.M. Peak Hour P.M, Peak Hour Trips Trips - Trips Henderson, Young & August 26, 2011 Page 24 Company • � Rate Study for lmpact Fees • City of Renton � There is one new variable used in formula 3 that requires explanation. (D) p.m. peak hour trips on the network of streets and roads. Variab/e (D): P.M. Peak Hour Trips Renton's traffic model can count the total number of trips on all the City's streets and roads during the busiest hour (i,e„ "p,m, peak hour), Measuring traffic during the p,m, peak hour is a common practice among Washington cities because they are concerned about congestion and the level of service during the time of heaviest traffic volumes. The City's traffic model can count p.m, peak hour trips currently on the system. The model can also use future population and employment data to estimate the p,m, peak hour trips at future points in time. The City's long-range transportation planning horizon is the year 2030, therefore the "future" p,m, peak hour trips are for the year 2030 (and the City's transportation improvement projects are selected to address the increased trips through 2030). Table 6 shows a total of 45,880 trips in 2008. In 2030 the total is estimated to be 63,750 trips. The difference between the 2008 and 2030 trips is 17,870 growth trips. The growth trips will be divided into the cost of growth to calculate the cost per growth trip. One other feature of the trip data is noteworthy. Some of the trips begin and or end outside the City. Renton's transportation impact fee only applies to development inside the City, so it will be useful to know how many growth trips will be paying the impact fee, and how many will not, Information about "inside" and "outside" trips is available from Renton's traffic model. It identifies the starting point (i.e., "origin") and the ending point (i.e., "destination") of each trip. In the summary of trip ends in Table b each trip end is either inside the City of Renton (i,e., "internal") or outside the City (i.e„ "external"). The trip data is reported in Table 6 for all four combinations; internal - internal means a trip that starts and ends inside the City, External - external is a trip that begins and ends outside the City limits without stopping in Renton, These are also called "through trips", The trips that have one end in the City and the other end outside the City are internal-external or external-internal, The column showing internal growth trips includes all of the internal-internal, one-half of the internal-external and external-internal, and none of the external-external trips, The column showing external growth trips counts the opposite end of all trips, The sum of the internal and the external trips is the total growth trips. This data will be used outside this study to estimate the costs that will be paid by impact fees and the cost that will be paid by other sources of revenue. Those estimates Henderson, Young & August 26, 2011 Page 25 Company � � Rate Study for lmpact Fees • City of Renton are for financial planning purposes, but do not affect the calculation of the impact fee rates in this study. Table 6: Growth Trips (p.m. peak hour) on the Street Network (1) (2) (3) (4) (5) (6) Internal External Origin- 2008 2030 Growth Growth Growth Destination Trips Tri s Trips Trips Trips internal-internal 6,150 9,200 3,050 3,050 0 internal-external 15,265 21,010 5,745 2,873 2,873 external- internal 12,618 17,815 5,197 2,599 2,599 external-external 11,847 15,725 3,878 0 3,878 Total 45,880 63,750 17,870 8,521 9,349 Formula T-4: Cost per Growth Trip The cost per growth trip is calculated by dividing growth's share of eligible costs of projects needed for growth by the number of growth trips: T-4, Growth's Share _ Growth's Trips on _ Cost Per of Eligible Cost the Street Network Growth Trip There are no new variables used in formula 4. Calculation of Cost per Gro wth Trip Table 7 shows the calculation of the cost per growth trip by dividing the $134,3 million of eligible cost of street projects (from Table 5) by the 17,870 growth trips (from Table b), The result is the cost per trip of $7,517.08. Table 7: Cost per Growth Trip ��) �2) Item Amount Growth's Share of Eligible Costs $ 134,330,224 P.M. Peak Hour Growth Trips 17,870 Cost per PM Peak Growth Trip 7,517.08 Henderson, Young & August 26, 2011 Page 26 Company � � Rate Study for lmpact Fees • City of Renton Formula T-5: Impact Fee Rates For Specific Land Uses The impact fee rate for each category of land use is determined by multiplying the cost per growth trip times the number of trips generated per unit of development of each category of land use: Cost Per Trip Generation Impact Fee Rate Per T-5. Growth Trip x Rate per Unit of = Unit of Development Development The formula uses different trip generation rates for different types of land uses (i.e„ single family houses, office buildings, etc,), There is one new variable used in formula 5 that requires explanation: (E) trip generation rates. Variab/e (E): Trip Generation Rates. Trip generation rates measure the impact on the street and road network by different types of land uses. For example, office buildings average 1 .49 p.m, peak hour trips per 1,000 square feet of office, but industrial buildings average only 0.97 p.m, peak hour trips per 1,000 square feet of industrial space, This rate study uses the data reported in Trip Generation, compiled and published by the Institute of Transportation Engineers (ITE). The report is currently in its 8th edition, The report is a summary of data from hundreds of surveys of trip origins and destinations conducted throughout the United States. The data is reported on several variables (i.e., type of land use, units of development, number of employees, hour of day, etc,). The data used in this impact fee rate study is for trips generated during the p.m. peak hour, since that is the same basis the City uses to analyze the City's traffic conditions, Impact fee rates are calculated in this study for many frequently used types of land use (i.e„ dwellings, industrial, offices, retail, restaurants, etc.). Impact fees can be calculated for other land uses not listed in this rate study by referring to the data in the ITE report referenced above, Trip generation data is reported initiaily as the total number of trips leaving and arriving at each type of land use. This impact fee rate study makes two ' adjustments to trip generation rates reported in ITE's Trip Generation, 8th edition. The first adjustment is to reduce the number of trips that are incidental attractors and generators of trips, For example, if a person leaves work to return home at the end of the work day, the place of employment is the origin, and the home is the destination. But if the person stops enroute to run an errand at a store, the ITE data counts the stop at the store as a new destination (and a new origin when the person leaves the store to continue to their home). In reality, the work- , to-home trip was going to occur regardless of the incidental stop, therefore the store should not be charged with an additional trip on the street system, The '� Henderson, Youn & Au ust 26, 201 1 Page 27 , 9 9 Company � � Rate Study for lmpact Fees • City of Renton measurement for this adjustment is the number of "pass-by" trips that stop at the store instead of "passing by." In Table 8, these trips are eliminated by counting only the trips that are truly "new" trips (i.e„ a person made a special trip to the store). The adjustment is shown in Table 8 as "Percent New Trips," The second adjustment is the "Trip Length Factor." Not all trips are the same length, Longer trips are considered to have a greater impact than shorter trips. The ITE report's trip generation data is adjusted by a factor that compares the average trip length of each type of development to the average trip length factor of 1.0 for all trips. Some land uses have factors greater than 1 .0 (i.e., industrial trips are factored at 1,47 because their trips are 47% longer than average) while other land uses have factors less than 1 .0 (i.e„ 24-hour convenience markets trips are factored at 0.44 because their trips are only 44% the length of an average trip). Trip length data is compiled from studies prepared by a number of local governments and consultants, Calculation of lmpact Fee Rates for Specific Land Uses Table 8 shows the calculation of impact fee rates for frequently used categories of land use that are listed in columns 1 and 2, The ITE trip rate in column 3 is multiplied times the percent new trips in column 4, and the result is multiplied times the trip length factor in column 5. Column 6 reports the net new trips that are the result of these calculations. The impact fee rates in column 7 are calculated by multiplying the net new trips from column b times the $7,517,08 cost per growth trip (from Table 7, and repeated in the column heading of column 7). Table 8: Transportation Impact Fee Rates Per Unit of Development �1) �2) �3) �4) �5) �6) �7) ITE % Trip ITE Trip New Length Net New Trips Per Impact Fee Per Unit @ Code ITE Land Use Cate o Rate Tri s Factor Unit of Measure $7,517.08 er Tri 110 Light Industrial 0.97 100% 1.47 1.43 1,000 sq ft 10.72 per sq ft 140 Manufacturin 0.73 100% 1.47 1.07 1,000 s ft 8.07 er s ft 151 Mini-warehouse 0.26 100% 1.47 0.38 1,000 sq ft 2.87 per sq ft 210 Sin le famil House 1.01 100% 1.13 1.14 dwellin 8,579.24 er dwellin 220 Apartment 0.62 100% 1.20 0.74 dwelling 5,592.71 per dwel�ing 230 Condominium 0.52 100% 1.15 0.60 dwellin 4,495.21 er dwellin 240 Mobile Home 0.59 100% 1.09 0.64 dwelling 4,834.23 per dwelling 251 Senior Housin -Attached 0.16 100% 0.93 0.15 dwellin 1,118.54 per dwellin 310 Hotel 0.59 100% 1.28 0.76 room 5,676.90 per room 320 Motel 0.47 100% 1.28 0.60 room 4,522.28 er room 420 Marina 0.19 100% 0.97 0.18 berth 1,385.40 per boat berth 444 Movie Theater 3.80 85% 0.73 2.36 1,000 s ft 17.72 er s ft 492 Health/Fitness Club 3.53 75% 1.00 2.65 1,000 sq ft 19.90 per sq ft 530 Hi h School 0.97 80% 1.00 0.78 1,000 s ft 5.83 er s ft Henderson, Young & August 26, 2011 Page 28 Company � • Rate Study for lmpact Fees • City of Renton ��) �2) �3) �4) �5) �6) �7) ITE % Trip ITE Trip New Length Net New Trips Per Impact Fee Per Unit @ Code ITE Land Use Cate o Rate Tri s Factor Unit of Measure $7,517.08 er Tri 560 Church 0.55 100% 1.20 0.66 1,000 sq ft 4.96 per sq ft 610 Hos ital 1.14 80% 1.28 1.17 1,000 s ft 8.78 er s ft 620 Nursing home 0.22 100% 0.87 0.19 bed 1,438.77 per bed 710 General Office 1.49 90% 1.47 1.97 1,000 s ft 14.82 er s ft 720 Medical office 3.46 75% 1.40 3.63 1,000 sq ft 27.31 per sq ft 820 Sho in Center 3.73 65% 0.53 1.28 1,000 s ft 9.66 er s ft 932 Restaurant:sit-down 11.15 55% 0.73 4.48 1,000 sq ft 33.65 per sq ft 933 Fast food, no drive-u 26.15 50% 0.67 8.76 1,000 s ft 65.85 er s ft 934 Fast food,w/drive-up 33.84 51% 0.62 10.70 1,000 sq ft 80.43 per sq ft 944 Gas station 13.87 40% 0.56 3.11 um 23,354.67 er um 945 Gas station w/convenience 13.38 45% 0.53 3.19 pump 24,967.98 per pump 850 Su ermarket 10.50 65% 0.67 4.57 1,000 s ft 34.37 er s ft 851 Convenience market-24 hr 52.41 45% 0.44 10.38 1,000 sq ft 78.01 per sq ft 912 Drive-in Bank 25.82 55% 0.47 6.67 1,000 sq ft 50.17 er sq ft Henderson, I� Young & August 26, 201 1 Page 29 Company • • Rate Study for lmpact Fees • City of Renton 4. PARK IMPACT FEES Impact fees for parks, open space, and recreation facilities begin with an inventory and valuation of the existing assets in order to calculate the current investment per person. The current investment per person is multiplied times the future population to identify the value of additional assets needed to provide growth with the same level of investment as the City owns for the current population. The future investment is reduced by the amount of specific revenues to determine the net investment needed to be paid by growth. Dividing the net investment by the population growth results in the investment per person that can be charged as impact fees, A final adjustment reduces the impact fee amount to match the investments listed in the City's adopted Capital Investment Program, The amount of the impact fee is determined by charging each fee-paying development for impact fee cost per dwelling multiplied times the number of dwelling units in the development, These steps are described below in the formulas, descriptions of variables, tables of data, and explanation of calculations of park impact fees, Formula P-1: Park and Recreation Capital Value Per Person The capital investment per person is calculated by dividing the value of the asset inventory by the current population, Value of Parks & Current Capital Value P-1 , Recreation - Population - Per Person Inventory There is one variable that requires explanation: (A) value of parks and recreation inventory Variab/e (A): Va/ue of Parks and Recreation lnventory The value of the existing inventory of parks, open space and recreation facilities is calculated by determining the value of park land, amenities and buildings The sum of all of the values equals the current value of the City's park and recreation system. The values in this study come from a variety of sources, depending on the type of the park or recreation facility. The land values are from King County's land assessment data base. Most of the valuations of the park amenities are from the City's cost records, Values of a few amenities are based on information from vendors or costs in other Washington cities. The values of the following amenities were determined by special studies; Coulon Park, Henry Moses Aquatic Center, grandstand and bridge, and all park system buildings. The value of amenities does not include land because the facilities are customarily located at a park. Henderson, Young & August 26, 201 1 Page 30 Company . � Rate Study for lmpact Fees • City of Renton The costs of new parks and recreation facilities in this rate study do not include any costs for interest or other financing. If borrowing is used to "front fund" the costs that will be paid by impact fees, the carrying costs for financing can be added to the costs, and the impact fee can be recalculated to include such costs. Table 9 lists the inventory of park land and amenities that make up the existing City of Renton park system. Each item is listed in column 1, the unit of measurement in column 2, the inventory in column 3, and the average cost per unit in column 4, The value of the park land or amenity is shown in Column 5. The total value for the current existing inventory of park land and amenities is $204,664,604. That value is divided by the current population of 84,928 to calculate the capital value of $2,409,62 per person. Table 9: Asset Inventory and Capital Value per Person (1) (2) (3) (5) (4) Average Cost T pe of Park or Facilit Unit Invento Per Unit Capital Value Land Value Neighborhood Park acre 141.53 129,783 $18,368,188 Community Park acre 129.54 229,463 29,724,637 Regionai Park(Coulon Memorial) acre 27.69 1,089,094 30,157,013 Open Space Park acre 612.55 71,728 43,936,986 Special Use Park acre 2.75 903,586 2.484,862 Land Value Subtotal $724,671,686 Park Amenity Balifield field 9 310,000 $2,790,000 Ballfield, Complete&Lighted field 4 710,000 2,840,000 Basketball Court, Half court 3 125,000 375,000 Basketball Court, Full court 7 190,000 1,330,000 Basketball Court, Lighted court 3 240,000 720,000 Boardwalk Trail linear feet 1,300 700 910,000 Boathouse Pier pier 1 1,538,030 1,538,030 Boathouse Pier Wood Floats float 2 154,750 309,500 Kennydale Beach Pier, Bulkhead, Logboom pier 1 548,930 548,930 Land-Passive/Landscaped acre 75 196,020 14,701,500 Multi-Purpose Field acre 7 196,020 1,372,140 Multi-Purpose Trail, 12'wide,Paved mile 3.5 443,520 1,552,320 Park Bridge bridge 4 5,993,575 Parking Lot acre 18.5 305,000 5,642,500 Pedestrian Trail,8'wide,AC Paved mile 3 295,680 887,040 Pedestrian Trail,8'wide, Brick Paved linear feet 1,735 120 208,200 Picnic Shelter shelter 7 55,000 385,000 Henderson, Young & August 26, 2011 Page 31 Company � � Rate Study for lmpact Fees • City of Renton (1) (2) (3) (5) (4) Average Cost T e of Park or Facilit Unit Invento Per Unit Ca ital Value Play Equipment lot 19 110,000 2,090,000 Skateboard Park,lighted park 1 500,000 500,000 Soccer Field,All-Weather Surface field 1 340,000 340,000 Tennis Court court 9 165,000 1,485,000 Tennis Court, Lighted court 8 210,000 1,680,000 Volleyball Court,Sand court 2 45,000 90.000 Park Amenit Subtotal $48 288 735 Coulon Park Amenities Restaurant building 2 $509,509 Picnic Gallery shelter 1 323,673 Picnic Shelter shelter 4 289,908 Bathhouse/Restroom building 1 356,289 Restroom building 2 259,676 Waterwalk,Small Boat Dock,Picnic Pads waterwalk 4 4,390,025 Deck&Bulkhead @ Ivar's deck 1 2,067,000 BoatLaunch(81ane) launch 1 1,111,835 Sail Club Launch,Wood Float launch 1 1,088,500 Bridge bridge 5 1,110,250 Fishing Pier&Shelter pier 1 457,938 Log Boom boom 1 702.750 Coulon Park Amenities Subtotal $12,667,353 Buildings Activity Center building 5 $979,425 Neighborhood Center building 2 2,490,064 Renton Community Center building 1 5,062,334 Carco Theater building 1 1,998,806 Henry Moses Aquatic Center building 1 3,966,232 Renton Senior Activity Center building 1 2,742,035 Liberty Park Community Bldg. building 1 569,716 Cedar River Boathouse building 1 430,534 Kennydale Beach Bathhouse building 1 81,466 Grandstand structure 1 630,925 Greenhouse building 1 65.293 Buildin s Subtotal $19,016,830 Total Capital Value $204,644,604 2010 Population 84,928 Ca ital Value er Person $2,409.62 Henderson, Young & August 26, 2011 Page 32 Company • • Rate Study for lmpact Fees • City of Renton Formula P-2: Value Needed for Growth Impact fees must be related to the needs of growth, as explained in Chapter 2. The first step in determining growth's needs is to calculate the total value of parks and recreational facilities that are needed for growth. The calculation is accomplished by multiplying the investment per person (from Table 9) times the number of new persons that are forecast for the City's growth. Capital Value Population Value Needed P-2' per Person X Growth - for Growth There is one new variable used in formula 2 that requires explanation; (B) forecasts of future population growth. Variable (B):Forecast Population Growth As part of the City of Renton long-range planning process, including its Comprehensive Plan pursuant to the Growth Management Act, the City prepares forecasts of future growth. During the next b years the City expects 3,486 additional dwelling units with an average of 2.2 persons per dwelling unit. This will bring 7,669 additional people to Renton, Table 10 shows the calculation of the value of parks and recreational facilities needed for growth. Column 1 lists the current capital value per person from Table 9, Column 2 shows the growth in population that is forecast, and Column 3 is the total value of parks and recreational facilities that is needed to serve the ' growth that is forecast for Renton, Table 10: Value of Parks and Recreational Facilities Needed for Growth ��) �2) �3) Capital Forecast Value Value Population Needed � per Person Growth for Growth $2,409.62 7,669 $ 18,479,412 Table 10 shows that Renton needs parks and recreational facilities valued at $18,479,412 in order to serve the growth of 7,669 additional people who are expected to be added to the City's existing population. The future investment needed for growth will be $18,479,412 unless the City has existing reserve capacity in its parks and recreational facilities or other unused assets, Formula P-3. Investment Needed for Growth The investment needed for growth is calculated by subtracting the value of any existing reserve capacity and any existing balance in the impact fee account Henderson, Young & August 26, 201 1 Page 33 Company . � Rate Study for Impact Fees • City of Renton from the total value of parks and recreational facilities needed to serve the growth. Value Value of Uncommitted Investment P-3, Needed _ Existing _ Balance in = Needed for for Reserve Impact Fee Growth Growth Capacity Account There are two new variables used in formula 3 that require explanation: (C) value of existing reserve capacity of parks and recreational facilities, and (D) the uncommitted balance in the impact fee account. Variable (C): Value of Existing Reserve Capacity The value of reserve capacity is the difference between the value of the City's existing inventory of parks and recreational facilities, and the value of those assets that are needed to provide the level of service standard for the existing population, Because the capital value per person is based on the current assets and the current population, there is no reserve capacity (i.e., no unused value that can be used to serve future population growth)5. Variable (D): Uncommifted Ba/ance in lmpact Fee Account Any unexpended and uncommitted balance in the park impact fee account is an asset that can be used to increase the value of park and recreation assets, thus reducing the amount that needs to be invested for future growth. Table 11 shows the calculation of the investment in parks and recreational facilities that is needed for growth. Column 1 lists the value of parks and recreational facilities needed to serve growth (from Table 10), Column 2 shows the value of existing reserve capacity, and Column 3 is the remaining investment in parks and recreational facilities that is needed to serve the growth, Column 4 subtracts the balance in the impact fee account, producing the net investment needed for growth shown in Column 5, Table 11: Investment Needed in Parks and Recreational Facilities for Growth (1) (2) (3) (4) (5) Value of Value Existing Investment Balance Net Investment Needed Reserve Needed In Impact Needed for Growth Ca acit for Growth Fee Account for Growth $ 18,479,412 $0 $ 18,479,412 $ 1,100,000 $ 17,379,412 5 Also, the use of the current assets and the current population means there is no existing deficiency, This approach satisfies the requirements of RCW 82.02.050(4) to determine whether or not there are any existing deficiencies in order to ensure that impact fees are not charged for any deficiencies. Henderson, Young & August 26, 2011 Page 34 Company � • Rate Study for lmpact Fees • City of Renton Table 11 shows that Renton needs to invest $17,379,412 in additional parks and recreational facilities in order to serve future growth. The future investment in parks and recreational facilities that needs to paid by growth may be less that $17,379,412 if the City has other revenues it invests in its parks and recreational facilities, Formula P-4. Investment to be Paid by Growth The investment to be paid by growth is calculated by subtracting the amount of any revenues the City invests in infrastructure for growth from the total investment in parks and recreational facilities needed to serve growth. Investment City Investment P-4, Needed for - Investment = to be Paid Growth for Growth by Growth There is one new variable used in formula 4 that requires explanation; (E) revenues used to fund the City's investment in projects that serve growth. Variab/e (f): City lnvestment of Non-lmpact Fee Revenues The City of Renton has historically used a combination of state grants and local revenues to pay for the cost of park and recreational capital facilities. The City's plan for the future is to continue using grant revenue and limited local revenues to pay part of the cost of parks and recreational facilities needed for growth, A detailed analysis of the City's CIP indicates that estimated local revenues will pay for 11 .92% of park projects that add "capacity' to the park system for new development by increasing the value of park and recreation assets. Revenues that are used for repair, maintenance or operating costs are not used to reduce impact fees because they are not used, earmarked or prorated for the system improvements that are the basis of the impact fees, Revenues from past taxes paid on vacant land prior to development are not included because new capital projects do not have prior costs, therefore prior taxes did not contribute to such projects. The other potential credit that reduces capacity costs (and subsequent impact fees) are donations of land or other assets by developers or builders. Those reductions depend upon specific arrangements between the developer and the City of Renton. Reductions in impact fees for donations are calculated on a case by case basis at the time impact fees are to be paid. Table 12 shows the calculation of the investment in parks and recreational facilities that needs to be paid by growth, Column 1 lists the investment in parks and recreational facilities needed to serve growth (from Table 11), column 2 shows the value of City investment for growth from grants and some local Henderson, Young & August 26, 2011 Page 35 Company . . Rate Study for lmpact Fees • City of Renton revenues, and column 3 is the remaining investment in parks and recreational facilities that will be paid by growth, Table 12: Investment in Parks and Recreational Facilities to be Paid by Growth ��) �2) �3) Investment City Investment Needed Investment to be Paid for Growth for Growth b Growth $ 17,379,412 $2,071,626 $ 15,307,786 Table 12 shows that growth in Renton needs to pay $17,379,412 for additional parks and recreational facilities to maintain the City's standards for future growth, The City expects to use $2,071,626 in grant and local revenue towards this cost (calculated at 11 .92% of $17,379,412 needed for growth), and the remaining $15,307,786 will be paid by growth. Formula P-5: Growth Cost Per Person The growth cost per person is calculated by dividing the investment in parks and recreational facilities that is to be paid by growth by the amount of population growth. Investment - Growth = Growth Cost P-5, to be Paid Population per Person by Growth There are no new variables used in formula P-5, Both variables were developed in previous formulas. Calculation of lnvestment to be Paid by Growth Table 13 shows the calculation of the cost per person of parks and recreational facilities that needs to be paid by growth, Column 1 lists the investment in parks and recreational facilities needed to be paid by growth (from Table 12), column 2 shows the growth population (see Variable B, Formula 2, above), and column 3 is the growth cost per person, Table 13: Growth Cost per Person ��) �2) �3) Investment Growth to be Paid Growth Cost b Growth Po ulation er Person $ 15,307,786 7,669 $ 1,996.06 Henderson, Young & August 26, 2011 Page 36 Company • • Rate Study for lmpact Fees • City of Renton Table 13 shows that cost per new person for parks and recreational facilities thC�t will be paid by growth is $1,996.06. The amount to be paid by each new dwelling unit depends on the number of persons per dwelling unit, as described in the next formula. Formula P-6: Cost per Dwelling Unit The cost per dwelling unit is calculated by multiplying the growth cost per person by the number of persons per dwelling unit, Growth Cost Persons per Cost per P-b' per Person X Dwelling Unit - Dwelling Unit There is one new variable used in formula b that requires explanation: (F) average number of persons per dwelling unit. Va�iab/e (F): Persons per Dwelling Unit The number of persons per dwelling unit is the factor used to convert the growth cost of parks and recreational facilities per person into growth cost per new dwelling unit. The data for calculating the persons per dwelling unit comes from the Washington Office of Financial Management's 2010 Population Worksheet for the City of Renton. Table 14 shows the calculation of the parks and recreational facilities cost per dwelling unit. Column 1 lists the types of dwelling units, column 2 shows the average persons per dwelling unit, and column 3 is the cost per dwelling unit calculated by multiplying the number of persons per dwelling unit times the growth cost of $1,996.06 per person from Table 13. Table 14: Cost per Dwelling Unit ��) �2) �3) Type of Average Cost Dwelling Persons per per Dwelling Unit @ Unit Dwellin Unit $1,996.06 er Person Single Family 2.55 $ 5,089.95 Multi-Family: 2 units 2.07 4,131.84 Multi-Family: 3 or 4 units 1.97 3,932.24 Multi-Family: 5 or more units 1.73 3,453.18 Mobile Home 1.81 3,612.87 Henderson, Young & August 26, 2011 Page 37 Company . • � Rate Study for lmpact Fees • City of Renton Formula P-7: Impact Fee per Dwelling Unit The impact fee per dwelling unit is calculated by adjusting the cost per dwelling unit to limit it to an amount consistent with the projects that will add capacity (asset value) in Renton's adopted CIP compared to the total investment that would be needed to maintain the current value per person. P_� Cost Per _ Adjustment for _ Impact Fee Per Dwelling Unit CIP Project Value Dwelling Unit There is one new variable used in formula 7 that requires explanation: (G) CIP adjustment per dwelling unit, Variab/e (G):Adjustment for C/P Project Value As noted in Chapter 2, impact fees must be based on the Capital Facilities Plan (CFP) of the City. The details of Renton's CFP appear in the Capital Investment Program (CIP) portion of the City's budget. A detailed review of the CIP identified specific projects that will increase the value of park and recreation assets, thus providing additional capacity for new development. If the value of the specific projects is equal to, or greater than the value needed for growth there is no adjustment to the cost per dwelling unit, However, if the value of the capacity projects is less than the value needed for growth, the cost per dwelling unit must be reduced to account for the difference. The 2011-2016 CIP contains 5 projects that increase the asset value of the park systemb. The total value of the 5 projects is $9,948,000. However, Table 10 calculated that the value needed for growth is $18,479,412. The difference between the value of the 5 projects and the value needed for growth is $8,531,412, which is 46.17% of the value needed for growth. As a result, the cost per dwelling unit must be reduced by 46.17% in order to limit the impact fee to the amount that will be spent by the City for projects that serve growth. Table 15 (on the next page) shows the calculation of the parks and recreational facilities impact fee per dwelling unit, Column 1 lists the types of dwelling units, column 2 shows the cost per dwelling unit from Table 14, column 3 shows the amount of the adjustment (calculated at 46.17% of the cost per dwelling unit), and column 4 is the impact fee per dwelling unit after subtracting the adjustment from the cost per dwelling unit. ° Henry Moss Aquatic Center, Grant Matching Program, Black River Riparian Forest, Regis Park Athletic Field Expansion, Park Master Planning Implementation, and King County Proposition 2 Capital Expenditure Levy Fund, Henderson, Young & August 26, 201 1 Page 38 Company . � • Rate Study fo�Impact Fees • City of Renton Table 15: Park Impact Fee per Dwelling Unit (1) (2) (3) (4) Impact Fee per Type of Cost per Adjustment to Dwelling Unit Dwellin Unit Dwellin Unit Match CIP Single Family $5,089.95 $2,349.88 $2,740.07 Multi-Family:2 units 4,131.84 1,907.55 2,224.29 Multi-Family: 3 or4 units 3,932.24 1,815.40 2,116.84 Multi-Family: 5 or more units 3,453.18 1,594.24 1,858.95 Mobile Home 3,612.87 1,667.96 1,944.91 Henderson, Young & August 26, 2011 Page 39 Company . � Rate Study for lmpact Fees • City of Renton 5. FIRE IMPACT FEES Impact fees for fire protection facilities begin with an inventory of fire apparatus and stations and the number of emergencies they responded to. Next is an analysis of the capital cost of fire protection apparatus and stations including calculation of the capital cost per response. The emergency responses are summarized according to the types of land uses that received responses, and incident rates are calculated to quantify the average number of emergency responses per unit of development for each type of land use, The costs per response and the response incident rates are used to calculate the number and cost of responses to fire incidents and to BLS incidents (basic life support medical responses) at each type of land use, The fire and BLS cost per unit of development are combined to calculate the total cost per unit of development. The total cost is adjusted for payments of other and the result is the fire impact fee rates for the City of Renton. These steps are described below in the formulas, descriptions of variables, tables of data, and explanation of calculations of fire impact fees. The need for fire protection facilities is influenced by a variety of factors, such as response time, call loads, geographical area, topographic and manmade barriers, and standards of the National Fire Protection Association, and the National Commission on the Accreditation of Ambulance Services. For the purpose of quantifying the need for fire and BLS apparatus and stations to serve growth this study uses the ratio of apparatus and stations to incidents. The current ratio provides acceptable levels of service to current residents and businesses. As growth occurs, more incidents will occur, therefore more apparatus and stations will be needed to maintain standards. Formula F-1: Inventory and Emergency Responses The City of Renton owns a variety of fire apparatus (i.e., fire engines, ladder trucks, aid vehicles, etc.). Each vehicle responds to many emergencies, The average number of emergency responses per apparatus is used as one element in calculating the cost per emergency response. F-1 , Emergency _ Fire _ Responses per Responses Apparatus Apparatus There are three variables that require explanation; (A) fire apparatus, (B) emergency responses, and (C) fire stations. Variab/e (A):Fire Apparatus The term "fire apparatus" applies to vehicles that the City of Renton uses for two categories of emergency responses: fire emergencies and medical emergencies. The medical emergencies will be referred to in this study as "BLS" Henderson, Young & August 26, 2011 Page 40 Company � • Rate Study for lmpact Fees • City of 2enton because the Renton Fire Department provides Basic Life Support (BLS) responses and is typically the first responder to medical emergencies in Renton. Advanced Life Support (ALS) is provided by King County. ALS costs are not included in Renton's fire impact fee, Table 16 contains a list of each type of primary fire apparatus and the number of each type. Renton also has several older "reserve" apparatus that are dispatched as needed when a primary apparatus is out of service for repairs or maintenance. The reserve apparatus are not routinely dispatched and are excluded from the impact fee analysis because they are not used frequentiy enough to have a material effect on the . cost of providing fire protection facilities, Variab/e (B):Emergency Responses The total annual responses for each type of apparatus is also shown in Table 1 b. The average number of emergency responses for each type of apparatus is calculated by dividing the number of annual emergency responses by the i number of units making those runs. In many cases, more than one apparatus s dispatched to an emergency incident. The number and type of apparatus dispatched to each incident varies depending on the type and severity of the incident, During 2010, Renton's 50 primary response apparatus were dispatched a total of 16,545 times to 12,421 emergency incidents (many times the seriousness of an incident requires that more than one unit respond). Using the existing ratio of apparatus and station space per incident maintains the current level of service and avoids any existing deficiency or unused reserve capacity. This approach � satisfies the requirements of RCW 82.02.050(4) to determine whether or not there are any existing deficiencies or reserve capacity in order to ensure that impact fees are not charged for any deficiencies or reserve capacity (other than reimbursement fees). Table 16: Fire Protection Apparatus Inventory ��) �2) �3) �4) Average Primary Annual Emergency Apparatus Emergency Responses Type of Apparatus Inventory Responses Per Unit Primary Career Service Response Units: Engine 5 8,713 1,743 Ladder 1 1,048 1,048 Aid Vehicle 6 5,825 971 Hazardous Materials Vehicle 1 4 4 Brush Truck 1 15 15 Staff Vehicles 28 909 32 Other A aratus/E ui ment' 8 31 4 Total Prima A aratus 50 16,545 ' Other apparatus and equipment include 4 specialized trailers and a dive boat, Henderson, Young & August 26, 201 1 Page 41 Company � � Rate Study for Impact Fees • City of Renfon Variable (C):fire Stations The City of Renton provides fire and BLS services out of 6 stations. Table 17 lists the 6 stations and the square footage of fire stations and support facilities (i.e., EOC, shop, and tower). Table 17 also shows the total fire and BLS incidents, and the average square footage of fire station per incident (caiculated by dividing the total square footage of all fire stations by the number of annual fire and BLS incidents). The total incidents from stations (Table 17) is less than the total incidents from apparatus (Table 16) because more than one apparatus responds to many calls, but often one station is the source of all the apparatus responding to a cali. Table 17: Fire and BLS Building Inventory (1) (2) (3) (4) Fire District Station Square Feet Inventory Annual Per Station S uare Feet Incidents Incident 11 -Mill Ave.S. 14,000 12-Kirkland Ave. NE 13,200 12-EOC 4,000 13- 108th Ave.SE 24,400 13-Shop 4,600 14-Lind Ave.S. 13,050 14-Tower 3,780 16- 156th Ave. SE 9,760 17-SE Petrovitsk Rd. 9,500 Total 96,290 12,421 7.75 Formula F-2: Annual Cost Per Apparatus Formulas F-2 through F-4 are needed to calculate the apparatus cost per fire incident, The first step in this calculation is to identify and annualize the cost of each type of apparatus using formula F-2. The capital cost per apparatus is based on the cost of primary response apparatus and major support equipment. The annualized capital cost per apparatus is determined by dividing the capital cost of each type of apparatus by its useful life; F_2 Fire Apparatus _ Useful Life = Annual Cost per Cost Apparatus There are two variables that require explanation: (D) fire apparatus cost, and (E) useful life, Henderson, Young & August 26, 2011 Page 42 Company � • Rate Study for lmpact Fees • City of Renton Variab/e (D);fire Apparatus Cost Table 18 shows the annualized cost for each type of primary apparatus listed in Table 16. The cost per apparatus includes the vehicle, fire and BLS equipment, and communication equipment, The apparatus and equipment costs in Table 18 represent current costs to purchase a new fully equipped apparatus. Variable (E): Useful Life Table 18 also shows the number of years of useful life of each type of apparatus, The annualized cost is calculated by dividing each apparatus cost by the useful life of that apparatus, Table 18: Annualized Apparatus Cost (1) (2) (3) (4) Useful Life Total Cost of Annual Per Component Cost A aratus A aratus Years Col. 2/Col.3 Engine $ 494,531 10 $49,453.10 Ladder 1,004,968 20 50,248.40 Aid Vehicle 200,000 7 28,571.43 Hazardous Materials Vehicle 50,000 30 1,666.67 Brush Truck 30,000 30 1,000.00 Staff Vehicles 27,183 10 2,718.30 OtherA aratus/E ui ment 41,142 10.2 4,033.53 Formula F-3: Cost Per Apparatus Per Fire or BLS Incident The second step in calculating the apparatus cost per fire incident is formula F-3, The capital cost per fire or BLS incident is calculated for each apparatus by dividing the annualized cost per apparatus by the total annual incidents (both fire and BLS) each type of apparatus responds to. Each type of apparatus is analyzed separately because the number and type of apparatus responding to an incident varies depending on the type and severity of the incident, Annual Cost Annual Annual Apparatus F-3. Per Apparatus - Responses Per = Cost Per Response Apparatus , There are no new variables used in formula F-3. Both variables were developed , in previous formulas, li In Table 19 the cost per emergency response is calculated for each type of �'� apparatus. Table 19 shows the annualized cost of one of each type of ' apparatus (from Table 18) and the average annual emergency responses for Henderson, Young & August 26, 2011 Page 43 Company • � Rate Study for Impact Fees • City of Renton each type of apparatus (from Table 16). Each apparatus cost per response is calculated by dividing the annualized cost of that type of apparatus by the total number of annual responses for the same type of apparatus. Table 19: Apparatus Cost per Response (1) (2) (3) (4) Average Annual Apparatus Cost Annual Responses Per Apparatus Per Response T e of A aratus Cost A aratus Col.2�-Col.3 Engine $49,453.10 1,743 $ 28.38 Ladder 50,248.40 1,048 47.95 Aid Vehicle 28,571.43 971 29.43 Hazardous Materials Vehicle 1,666.67 4 416.67 Brush Truck 1,000.00 15 66.67 Staff Vehicles 2,718.30 32 83.73 OtherA aratuslE ui ment 4,033.53 4 1,040.91 Formula F-4: Total Apparatus Cost Per Fire Incident The third step in calculating the apparatus cost per fire incident is formula F-4. The total apparatus cost per fire incident is calculated by multiplying the apparatus cost per response by the percent of fire incidents each type of apparatus responds to. This calculation accounts for the fact that multiple apparatus are dispatched to many incidents, and that some apparatus are only dispatched to specific types of incidents, The result of this calculation is a weighted average total cost of apparatus per fire incident. Apparatus Apparatus F-4. Cost Per x Percent of Fire = Apparatus Cost Per Response Responses Fire Incident There is one new variable that requires explanation; (F) apparatus percent of fire responses, Variable (F):Apparatus Percent of Fire Responses The next step in calculating the apparatus cost per fire incident is to identify the annual number of incidents that Renton's Fire Department responds to, Emergency incidents are separated into two categories; Fire and BLS. Table 20 lists the annual number of fire and BLS incidents responded to during 2010. Henderson, Young & August 26, 2011 Page 44 Company . � � Rate Study for lmpact Fees • City of Renton Table 20: Annual Fire and BLS Incidents ��) �2) Average Annual T e of Incident Emer enc Incidents Fire 2,931 Rescue 9,490 Total Annual Incidents 12,421 Different types of fire emergencies need different types or combinations of apparatus. As a result, the usage of apparatus varies among the types of apparatus. This variance is an important factor in determining the cost per incident. The percent of fire responses by each type of apparatus is calculated in Table 21 by dividing the annual fire responses for each type of apparatus by the total annual fire incidents from Table 20, The result of the calculation in Table 21 is the percent of fire incidents responded to by each type of apparatus. For example, engines provided 2,979 responses to the 2,931 fire incidents, equaling 101 .6% of ail fire incidents, Another way to understand this data is that one average fire incident involved 1 .016 engines, therefore the cost of responding to a fire incident includes 101.6% of the cost of an engine. Other apparatus typically respond to only some of the incidents. Ladder trucks, for example, respond to 18.0% of fire emergency incidents, therefore the cost to respond to the average fire incident includes 18% of a ladder truck, Table 21: Fire Incident Response By Type of Apparatus (1) (2) (3) (4) Percent of Annual Total Annual Fire Related Fire-Related Annual Incidents Responses for Fire-Related Dispatched To T e of A aratus A aratus Incidents Col 2/2,931 Engine 2,979 101.6% Ladder 529 18.0% Aid Vehicle 547 18.7% Hazardous Materials Vehicle 4 0.1% Brush Truck 15 0.5% Staff Vehicles 594 20.3% Other A aratus/E ui ment 13 0.4% Total 4,681 2,931 The final step in calculating the apparatus cost per fire incident is shown in Table 22, The cost per response for each type of apparatus (from Table 19) is multiplied by the percent of fire incidents dispatched to (from Table 21) resulting in the total apparatus cost per fire incident, The "bottom line" in Table 22 is the apparatus cost per fire incident of $65.49, In other words, every fire incident "uses up" $65,49 worth of apparatus. Henderson, Young & August 26, 2011 Page 45 Company � � Rate Study for lmpact Fees • City of Renton Table 22: Total Apparatus Cost Per Fire Incident (1) (2) (3) (4) Annual Apparatus Percent Of Cost Per Apparatus Fire Fire Cost Per Incidents Incident T e of A aratus Res onse Dis atched To Col.2*Col.3 Engine $ 28.38 101.6% $28.84 Ladder 47.95 18.0% 8.65 Aid Vehicle 29.43 18.7°/a 5.49 Hazardous Materials Vehicle 416.67 0.1% 0.57 Brush Truck 66.67 0.5% 0.34 Staff Vehicles 83.73 20.3% 16.97 OtherA aratus/E ui ment 1,040.91 0.4% 4.62 Total 65.49 Formula F-5: Annual Station Cost The annual station cost is determined by dividing the station capital cost by its useful life. Station Cost Annual Station F-5, Per Square - Useful Life = Cost Per Square Foot Foot There is one new variable that requires explanation; (G) station cost per square foot. Variab/e (F):Station Cost per Square Foot Table 23 calculates the average annualized fire station cost per square foot. The cost per square foot is based on the average cost of the most recently constructed station (Station 12, built in 2003). The costs include land, building, furnishings and equipment, The useful life represents the length of time the station will last before it needs to be replaced. The annualized cost is calculated by dividing the estimated cost per square foot by the average useful life. The "bottom line" of Table 23 is an annualized station cost of $ 11 .78 per square foot. Henderson, Young & August 26, 201 1 Page 46 Company . � � Rcte Study for lmpact Fees • City of Renton Table 23: Annualized Station Cost Per Square Foot ��) �2) �3) �4) Annual Building Building Cost Useful Cost Per Per Life square Foot T e of Cost S uare Foot Years Col.2=Col.3 Land $ 74.43 Building, Furnishings and Equipment 405.08 Cost of Borrowin 109.54 Total 589.05 50 $11.78 Formula F-6: Station Cost Per Fire and BLS Incident The station cost per fire and BLS incident is caiculated by multiplying the annual station cost per square foot by the station square feet per fire and BLS incident. Annual Station Station Square Annual Station F-6. Cost Per x Feet Per Fire = Cost Per Fire and Square Foot and BLS BLS Incident Incident There are no new variables used in formula F-b. Both variables were developed in previous formulas. This calculation is shown in Table 24: the station cost per square foot (from Table 23) is multiplied times the station square feet per incident (from Table 17). The result is the station cost of $ 91.33 per fire and BLS incident. In other words, each fire and BLS incident "uses up" $91 .33 worth of fire station. Table 24: Station Cost Per Fire and BLS Incident ��) �2) �3) Annualized Annual Building Cost Per Building Square Feet Fire and Rescue Cost Per Per Incident S uare Foot Incident Col. 1 *Col.2 $ 11.78 7.75 $91.33 Henderson, Young & August 26, 2011 Page 47 Company • � . Rate Study for lmpact Fees • City of Renton Formula F-7: Annual Fire Incident Rate Per Unit Of Development The annual fire incident rate per unit of development (i,e., dwelling unit or square foot of non-residential development) is calculated by dividing the total annual fire incidents to each type of land use by the number of dwelling units or square feet of non-residential development for that type of land use. Annual Number of Emergency Fire Dwelling Units Annual Fire F-7. Incidents at - or Square Feet = Incidents Per Unit Each Type of of Each Type of Development Land Use of Land Use There are two variables that require explanation; (H) annual emergency fire incidents at land use types, and (I) number of dwelling units or square feet. Variab/e (H):Annua/Emergency Fire lncidents at Land Use Types The emergency incident data comes from the City's dispatch records and the data showing dwelling units and square feet of non-residential development is from King County's property records for the City of Renton. The database identifies each incident by occupancy type such as residences, office or retail, The land use categories in this study were created by combining the numerous occupancy types into broad land use categories for impact fees, such as residences, office, retail, restaurant and industrial/manufacturing. During 2010, Renton's Fire Department responded to 2,931 fire incidents. Of the 2,931 fire incidents, 2,570 were traceable to a type of development (i.e„ the incident occurred at a specific property address, such as a residence or business) or they were traffic-related (occurred on a roadway). Of the 2,570 fire incidents analyzed, 2,040 occurred at a specific property and 530 were traffic- related. The records for the remaining 361 fire incidents did not allow the incident to be traced to either a specific land use or a traffic-related incident, therefore these 361 incidents are apportioned to land uses and traffic on the same basis as the 2,570 incidents that are traceable. Table 25 shows the allocation of the 361 incidents without land use designations to the property and traffic categories using the same percentage as the 2,570 incidents for which a location was identifiable. Thus 287 of the 361 fire incidents were allocated the same as the incidents at identifiable lands uses, and the other 74 fire incidents were allocated the same as the traffic-related incidents, Henderson, Young & August 26, 2011 Page 48 Company . • �s Rate Study for lmpact Fees • City of Renton Table 25: Fire Incidents (1) (2) (3) (4) Incidents Incidents Identifiable Not Identifiable Total Incident Location B Location B Location Incidents Total 2,570 361 2,931 At Properties 2,040 287 2,327 %of Total 79.38% 79.38% 79.38% In Roads and Streets 530 74 604 %of Total 20.62% 20.62% 20.62% There are four tables on the following pages that present the allocation of fire incidents among types of land use: Table 26 shows the fire incidents that were identifiable by land use type, Table 27 shows the fire incidents that were traffic- related. Table 28 combines the fire incident data (land use and traffic), and Table 29 shows the fire incident rate per unit of development. Table 26 shows the distribution of the 2,040 fire incidents that are traceable to a land use along with the percent distribution of these 2,040 incidents, In column 4 the total 2,327 fire incidents to land use (2,040 traceable + 530 allocated) is allocated among the land use types using the percent distribution column, The result is the total annual fire incidents at each of the land use types. Table 26: Fire Incidents At Specific Land Uses (1) (2) (3) (4) Annual Percent Fire Of All Allocate Incidents Fire 2,327 Identifiable Incidents Incidents To Identifiable To Land Uses Land Use Land Use To Land Use Col. 3 x 2,327 RESIDENTIAL 1,373 67.30% 1,566 NONRESIDENTIAL Hotel/Motel/Resort 31 1.52% 35 Medical Care Facility 29 1.42% 33 Commercial: Office 39 1.91% 44 Medical/Dental Office 17 0.83% 19 Retail 191 9.36% 218 Leisure Facilities 82 4.02% 94 RestauranULounge 28 1.37% 32 Industrial/Manufacturing 78 3.82% 89 Institutions: Church/Non-Profit 25 1.23% 29 Education 131 6.42% 149 S ecial Public Facilities 16 0.78% 18 Total 2,040 2,327 Henderson, Young & August 26, 201 1 Page d9 Company �J � , Rate Study for Impact Fees • City of Renfon Variab/e (l):Number of Dwelling Units or Square Feet The traffic-related fire incidents are allocated to land uses on the basis of the amount of traffic generated by each type of land use. In Table 27, the number of dwelling units and square feet of non-residential construction in the City of Renton is multiplied times the number of trips that are generated by each land use type as reported in the 8th Edition of Trip Generation by the Institute of Transportation Engineers (ITE). (The trip rates in are one-half of ITE's trip rates in order to account for the trips each land use generates while excluding the "return" trip). The result is the total trips associated with each land use type. The percent of trips associated with each land use type is calculated from the total of all trips, In the final calculation in Table 27 the total 604 annual fire incidents that are traffic-related (530 traceable + 74 allocated) is allocated among the land use types using the percent of trips generated, Table 27: Traffic Related Fire Incidents (Allocated to Land Uses) (1) (2) (3) (4) (5) (6) ITE Trip Annual Generation 604 Rate/2 Traffic Related Renton Per D.U. Percent Fire Incidents Units or Total Of Per Unit Of Of Per Unit Of Trips Trips Development Land Use Develo ment Develo ment Col.2*Col.3 Generated Col.5*604 RESIDENTIAL 53,889 d.u. 4.23228 228,073 41.27% 249 NONRESIDENTIAL Hotel/Motel/Resort 675,098 sq.ft. 0.00446 3,011 0.54% 3 Medical Care Facility 505,735 sq.ft. 0.00825 4,172 0.75% 5 Commercial: Office 6,771,692 sq.ft. 0.00551 37,312 6.75% 41 Medical/Dental Office 916,863 sq.ft. 0.00551 5,052 0.91% 6 Retail 7,415,594 sq.ft. 0.02147 159,213 28.81% 174 Leisure Facilities 851,359 sq.ft. 0.01541 13,119 2.37% 14 Restaurant/Lounge 358,466 sq.ft. 0.06358 22,791 4.12% 25 Industrial/Manufacturing 15,081,742 sq.ft. 0.00349 52,635 9.52% 58 Institutions: Church/Non-Profit 1,044,126 sq.ft. 0.00456 4,761 0.86% 5 Education 2,854,937 sq.ft. 0.00645 18,414 3.33% 20 S ecial Public Facilities 291,913 s .ft. 0.01396 4,075 0.74% 4 Total 552,630 100.00% 604 Henderson, Young & August 26, 2011 Page 50 Company � � Rate Study fo�lmpact Fees • City of Renton Table 28 summarizes the results of the analysis of fire incidents. The total annual fire incidents is a combination of the fire incidents allocated among direct responses to land use categories (from Table 26) and the allocation of traffic- related incidents based on trip generation rates (from Table 27), Table 28: Total Annual Fire Incidents By Land Use (1) (2) (3) (4) Annual Total Fire Annual Annual Incidents Traffic Related Fire Incidents Direct to Fire Incidents By Land Use Land Use B Land Use Land Use RESIDENTIAL 1,566 249 1,815 NONRESIDENTIAL � Hotel/Motel/Resort 35 3 39 Medical Care Facility 33 5 38 Commercial: Office 44 41 85 Medical/Dental Office 19 6 25 Retail 218 174 392 Leisure Facilities 94 14 108 RestauranULounge 32 25 57 Industrial/Manufacturing 89 58 147 Institutions: Church/Non-Profit 29 5 34 Education 149 20 170 S ecial Public Facilities 18 4 23 Total 2,327 604 2,931 The final step in determining the annual fire incident rate per unit of development is shown in Table 29, The total annual fire incidents for each type of land use (from Table 28) are divided by the number of dwelling units or square feet of structures to calculate the annual incident rate per dwelling unit or square foot. The units of development are the same as was used to determine traffic-related incidents (see Table 27). The results in Table 29 show how many times an average unit of development has a fire incident to which the City of Renton responds, For example, a residence has an average of 0.0336863 fire-related incidents per year. This is the same as saying that 3.3% of single family/duplexes have a fire-related incident in a year, Another way of understanding this information is that an average single family/duplex would have a fire-related incident once every 30 years, Henderson, Young & August 26, 2011 Page 51 Company s • Rate Study for lmpact Fees • City of Renton Table 29: Annual Fire Incidents By Land Use (1) (2) (3) (4) Total Annual Fire Units Annual Fire Incidents Incidents To Of Per Land Use Land Use Develo ment Unit of Develo ment RESIDENTIAL 1,815 53,889 d.u. 0.0336863 perdwellingunit NONRESIDENTIAL Hotel/Motel/Resort 39 675,098 sq.ft. 0.0000572 per sq ft Medical Care Facility 38 505,735 sq.ft. 0.0000744 per sq ft Commercial: Office 85 6,771,692 sq.ft. 0.0000126 persqft Medical/Dental Office 25 916,863 sq.ft. 0.0000272 per sq ft Retail 392 7,415,594 sq.ft. 0.0000529 per sq ft Leisure Facilities 108 851,359 sq.ft. 0.0001267 per sq ft RestauranULounge 57 358,466 sq.ft. 0.0001586 per sq ft Industrial/Manufacturing 147 15,081,742 sq.ft. 0.0000097 persqft Institutions: Church/Non-Profit 34 1,044,126 sq.ft. 0.0000323 persqft Education 170 2,854,937 sq.ft. 0.0000594 per sq ft Special Public Facilities 23 291,913 sq.ft. 0.0000778 per sq ft Total 2,931 Formula F-8: Fire Incident Capital Cost Per Unit Of Development The capital cost of fire incidents per unit of development is determined by multiplying the annual fire incidents per unit of development (from Table 29) times the annual capital cost per fire incident of each type of apparatus (from Table 22) and fire station (from Table 24), then multiplying that result times the useful life of the apparatus or fire station,8 Annual Fire Annual Useful Life Fire Incident F_8 Incidents Per X Cost Per X Of _ Capital Cost Unit Of Fire Apparatus Per Unit Of Development Incident or Station Development There are no new variables used in formula F-8, All three variables were developed in previous formulas. B Some fire impact fees are calculated for the economic life of the property paying the impact fee, rather than the useful life of the apparatus and stations that provide the fire protection. Both methods meet the legal requirements for impact fees. The method used in this rate study charges impact fees for the first of each type of apparatus and station needed for new development, but subsequent replacements of apparatus and stations are funded by other revenues available to the City of Renton, Henderson, Young & August 26, 2011 Page 52 Company � � Rate Study for lmpact Fees • City of Renton In Tables 30- 37 on the following pages, each fire incident rate (from Table 29) is multiplied by the annual capital cost per fire incident. The result is then multiplied times the useful life of the apparatus or station to calculate the capital cost per unit of development for each type of apparatus and station. For example, residential units average 0,0336863 fire incidents per year (i.e., 3.3% of a fire incident per year), In Table 30, multiplying this incident rate times the annual capitai cost of an engine ($28.84 from Table 22) per incident indicates a cost of $0.9716 per dwelling unit to provide it with fire engines for one year, Since an engine lasts 10 years, the residential dwelling needs to pay for 10 times the annual rate, for a total of $9.7164, Table 30: Engine Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Engine Engine Cost @ Life Cost @ Unit of Annual Fire $28.84 10 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.9716 $9.7164 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0017 0.0165 Medical Care Facility per sq ft 0.0000744 0.0021 0.0215 Commercial: Office per sq ft 0.0000126 0.0004 0.0036 Medical/Dental Office per sq ft 0.0000272 0.0008 0.0078 Retail per sq ft 0.0000529 0.0015 0.0152 Leisure Facilities per sq ft 0.0001267 0.0037 0.0365 RestauranULounge per sq ft 0.0001586 0.0046 0.0458 Industrial/Manufacturing per sq ft 0.0000097 0.0003 0.0028 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0009 0.0093 Education per sq ft 0.0000594 0.0017 0.0171 S ecial Public Facilities er s ft 0.0000778 0.0022 0.0224 Henderson, Young & August 26, 2011 Page 53 Company � � Rate Study for lmpact Fees • City of Renton Table 31 calculates the capital cost per unit of development for a ladder truck responding to fire incidents, The incident rate (from Table 29) is multiplied by the ladder's capital cost per fire incident ($8.65 from Table 22). The result is then multiplied times the 20-year useful life of a ladder truck to calculate the capital cost per unit of development for ladder trucks, Table 31: Ladder Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Ladder Ladder Cost @ Life Cost @ Unit of Annual Fire $8.65 20 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.2915 $5.8302 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0005 0.0099 Medical Care Facility per sq ft 0.0000744 0.0006 0.0129 Commercial: Office per sq ft 0.0000126 0.0001 0.0022 Medical/Dental Office per sq ft 0.0000272 0.0002 0.0047 Retail per sq ft 0.0000529 0.0005 0.0091 Leisure Facilities per sq ft 0.0001267 0.0011 0.0219 RestauranULounge per sq ft 0.0001586 0.0014 0.0275 Industrial/Manufacturing per sq ft 0.0000097 0.0001 0.0017 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0003 0.0056 Education per sq ft 0.0000594 0.0005 0.0103 S ecial Pubiic Facilities er s ft 0.0000778 0.0007 0.0135 Henderson, Young & August 26, 201 1 Page 54 Company � � Rate Study for lmpact Fees • City of Renton Table 32 calculates the capital cost per unit of development for aid vehicles responding to fire incidents. The incident rate (from Table 29) is muitiplied by the tender's capital cost per fire incident ($5,49 from Table 22). The result is then multiplied times the 7-year usefui life of an aid vehicle to calculate the capital cost per unit of development for aid vehicles. Table 32: Aid Vehicle Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Aid Vehicle Aid Vehicle Cost @ Life Cost @ Unit of Annual Fire $5.49 7 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.1850 $ 1.2951 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0003 0.0022 Medical Care Facility per sq ft 0.0000744 0.0004 0.0029 Commercial: Office per sq ft 0.0000126 Medical/Dental Office per sq ft 0.0000272 0.0001 0.0010 Retail per sq ft 0.0000529 0.0003 0.0020 Leisure Facilities per sq ft 0.0001267 0.0007 0.0049 Restaurant/Lounge per sq ft 0.0001586 0.0009 0.0061 Industrial/Manufacturing per sq ft 0.0000097 0.0001 0.0004 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0002 0.0012 Education per sq ft 0.0000594 0.0003 0.0023 S ecial Public Facilities er s ft 0.0000778 0.0004 0.0030 ' Henderson, Young & August 26, 2011 Page 55 Company � � Rate Study for Impact Fees • City of Renton Table 33 calculates the capital cost per unit of development for a hazardous materials vehicle's response to fire incidents. The incident rate (from Table 29) is multiplied by the hazardous materials vehicle's capital cost per fire incident ($0.57 from Table 22), The result is then multiplied times the 30-year useful life of a hazardous materials vehicle to calculate the capital cost per unit of development for hazardous materials vehicles. Table 33: Hazardous Materials Vehicle Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Hazardous Hazardous Materials Materials Vehicle Vehicle Cost @ Life Cost @ Unit of Annual Fire $0.57 30 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.0192 $0.5747 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0000 0.0010 Medical Care Facility per sq ft 0.0000744 0.0000 0.0013 Commercial: Office per sq ft 0.0000126 0.0000 0.0002 Medical/Dental Office per sq ft 0.0000272 0.0000 0.0005 Retail per sq ft 0.0000529 0.0000 0.0009 Leisure Facilities per sq ft 0.0001267 0.0001 0.0022 RestauranULounge per sq ft 0.0001586 0.0001 0.0027 Industrial/Manufacturing per sq ft 0.0000097 0.0000 0.0002 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0000 0.0006 Education per sq ft 0.0000594 0.0000 0.0010 S ecial Public Facilities er s ft 0.0000778 0.0000 0.0013 Henderson, Young & August 26, 2011 Page 56 Company � ! Rate Study for lmpact Fees • City of Renton Table 34 calculates the capital cost per unit of development for a brush truck's response to fire incidents. The incident rate (from Table 29) is multiplied by the brush truck's capital cost per fire incident ($0,34 from Table 22). The result is then multiplied times the 30-year useful life of a brush truck to calculate the capital cost per unit of development for brush trucks. Table 34: Brush Truck Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Brush Truck Brush Truck Cost @ Life Cost @ Unit of Annual Fire $0.34 30 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.0115 $0.3448 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0000 0.0006 Medical Care Facility per sq ft 0.0000744 0.0000 0.0008 Commercial: Office per sq ft 0.0000126 0.0000 0.0001 Medical/Dental Office per sq ft 0.0000272 0.0000 0.0003 Retail per sq ft 0.0000529 0.0000 0.0005 , Leisure Facilities per sq ft 0.0001267 0.0000 0.0013 Restaurant/Lounge per sq ft 0.0001586 0.0001 0.0016 Industrial/Manufacturing per sq ft 0.0000097 0.0000 0.0001 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0000 0.0003 Education per sq ft 0.0000594 0.0000 0.0006 S ecial Public Facilities er s ft 0.0000778 0.0000 0.0008 Henderson, Young & August 26, 201 1 Page 57 Company � � Rate Study for Impact Fees • City of Renton Table 35 calculates the capital cost per unit of development for staff vehicles responding to fire incidents. The incident rate (from Table 29) is multiplied by the staff vehicle capital cost per fire incident ($16.97 from Table 22). The result is then multiplied times the 10-year useful life of a staff vehicle to calculate the capital cost per unit of development for staff vehicles. Table 35: Staff Vehicle Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Staff Vehicle Staff Vehicle Cost @ Life Cost @ Unit of Annual Fire $16.97 10 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.5716 $5.7163 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0010 0.0097 Medical Care Facility per sq ft 0.0000744 0.0013 0.0126 Commercial: Office per sq ft 0.0000126 0.0002 0.0021 Medical/Dental Office per sq ft 0.0000272 0.0005 0.0046 Retail per sq ft 0.0000529 0.0009 0.0090 Leisure Facilities per sq ft 0.0001267 0.0022 0.0215 RestauranULounge per sq ft 0.0001586 0.0027 0.0269 Industrial/Manufacturing per sq ft 0.0000097 0.0002 0.0016 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0005 0.0055 Education per sq ft 0.0000594 0.0010 0.0101 S ecial Public Facilities er s ft 0.0000778 0.0013 0.0132 Henderson, Young & August 26, 2011 Page 58 Company , � � Rate Study for lmpact Fees • City of 2enton Table 36 calculates the capital cost per unit of development for other apparatus/equipment's response to fire incidents. The incident rate (from Table 29) is multiplied by the other apparatus/equipment's capital cost per fire incident ($4.62 from Table 22). The result is then multiplied times the 10,2-year usefui life of other apparatus/equipment to calculate the capital cost per unit of development for other apparatus/equipment. Table 36: Other Apparatus/Equipment Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Other Other Apparatus/ Apparatus/ Equipment Equipment Cost @ Life Cost @ Unit of Annual Fire $4.62 10.2 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $0.1555 $ 1.5863 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0003 0.0027 Medical Care Facility per sq ft 0.0000744 0.0003 0.0035 Commercial: Office per sq ft 0.0000126 0.0001 0.0006 Medical/Dental Office per sq ft 0.0000272 0.0001 0.0013 Retail per sq ft 0.0000529 0.0002 0.0025 Leisure Facilities per sq ft 0.0001267 0.0006 0.0060 RestauranULounge per sq ft 0.0001586 0.0007 0.0075 Industrial/Manufacturing per sq ft 0.0000097 0.0000 0.0005 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0001 0.0015 Education per sq ft 0.0000594 0.0003 0.0028 S ecial Public Facilities er s ft 0.0000778 0.0004 0.0037 Henderson, Young & August 26, 2011 Page 59 Company � � Rate Study for lmpact Fees • City of Renton Table 37 calculates the capital cost per unit of development for fire stations that house fire apparatus. The fire incident rate (from Table 29) is multiplied by the fire station's capital cost per fire and BLS incident ($91.33 from Table 24). The result is then multiplied times the 50-year useful life of a fire station to calculate the capital cost per unit of development for fire stations. Table 37: Fire Station Cost Of Responses to Fire Incidents at Land Use Categories (1) (2) (3) (4) (5) Fire Station Fire Station Cost @ Life Cost @ Unit of Annual Fire $91.33 50 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.0336863 $3.0765 $ 153.8260 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0000572 0.0052 0.2614 Medical Care Facility per sq ft 0.0000744 0.0068 0.3398 Commercial: Office per sq ft 0.0000126 0.0012 0.0575 Medical/Dental Office per sq ft 0.0000272 0.0025 0.1241 Retail per sq ft 0.0000529 0.0048 0.2414 Leisure Facilities per sq ft 0.0001267 0.0116 0.5786 RestauranULounge per sq ft 0.0001586 0.0145 0.7243 Industrial/Manufacturing per sq ft 0.0000097 0.0009 0.0444 Institutions: Church/Non-Profit per sq ft 0.0000323 0.0029 0.1475 Education per sq ft 0.0000594 0.0054 0.2712 S ecial Public Facilities er s ft 0.0000778 0.0071 0.3552 Table 38 combines the capital costs of all types of apparatus and station (from Tables 30- 37) to show the total capital cost of responses to fire incidents for one unit of residential development. Table 38: Example of Calculation of Total Capital Cost for A Single-Family Residential Unit ��) �2) �3) Cost Com onent Cost Source Engine $9.7164 Table 30 Ladder 5.8302 Table 31 Aid Vehicle 1.2951 Table 32 Hazardous Materials Vehicle 0.5747 Table 33 Brush Truck 0.3448 Table 34 Staff Vehicle 5.7163 Table 35 Other Apparatus/Equipment 1.5863 Table 36 Station 153.8260 Table 37 Total 178.8898 This example is repeated for each land use to combine its capital costs of all types of apparatus and station in Table 39, Henderson, Young & August 26, 2011 Page 60 Company � � Rate Study for lmpact Fees • City of Renton Table 39: Total Capital Cost Of Responses to Fire Incidents at Land Use Categories ��) �2) �3) Fire Incident Life Cost of All Unit of Apparatus Land Use Develo ment and Station RESIDENTIAL per dwelling unit $178.89 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.30 Medical Care Facility per sq ft 0.40 Commerciai: Office per sq ft 0.07 Medical/Dental Office per sq ft 0.14 Retail per sq ft 0.28 Leisure Facilities per sq ft 0.67 RestauranULounge per sq ft 0.84 Industrial/Manufacturing per sq ft 0.05 Institutions: Church/Non-Profit per sq ft 0.17 Education per sq ft 0.32 S ecial Public Facilities er s ft 0.41 Formula F-9: Cost Per Apparatus Per Fire or BLS Incident The annual cost per type of apparatus is the same as in Table 18, The cost per apparatus per fire or BLS incident is the same as Table 19. Formula F-10: Apparatus Cost Per BLS Incident The calculation of apparatus cost per BLS incident is similar to the calculation of costs per fire incident in Table 22, The total apparatus cost per BLS incident is calculated by multiplying the cost per apparatus per response by the percent of BLS incidents each type of apparatus responds to. This calculation accounts for the fact that multiple apparatus are dispatched to many incidents, and that some apparatus are only dispatched to specific types of incidents, The result of this calculation is a weighted average total cost of apparatus per BLS incident. Apparatus Apparatus Apparatus Cost Per F-10, Cost Per x Percent of BLS _ BLS Incident Response Responses - There are no new variables used in formula F-10, The first variable is identical to the data from Table 19, and the second variable concerning the percent of BLS Henderson, Young & August 26, 2011 Page bl Company � � Rate Study for Impact Fees • City of Renton responses works identically to Variable F, but using BLS responses instead of fire responses. Different types of BLS emergencies need different types or combinations of �, apparatus. As a result, the usage of apparatus varies among the types of apparatus. This variance is an important factor in determining the cost per incident. The percent of BLS responses by each type of apparatus is calculated in Table 40 by dividing the annual BLS responses for each type of apparatus by the total annual BLS incidents from Table 20. The result of the calculation in Table 40 is the percent of BLS incidents responded to by each type of apparatus, For example, engines provided 5,734 responses to the 9,490 BLS incidents, equaling 60,4% of all BLS incidents, Another way to understand this data is that one average BLS incident involved 0.604 engines therefore the cost of responding to an BLS incident includes 60,4% of the cost of an engine. Table 40: BLS Incident Response By Type of Apparatus (1) (2) (3) (4) Percent of Annual Total Annual BLS Related BLS Annual Incidents Responses for BLS Dispatched To T e of A aratus A aratus Incidents Col 2/9490 Engine $5,734 60.4% Ladder 519 5.5% Aid Vehicle 5,278 55.6% Hazardous Materials Vehicle 0 0.0% Brush Truck 0 0.0% Staff Vehicles 315 3.3% Other A aratuslE ui ment 18 0.2% Total 11,864 9,490 The final step in calculating the apparatus cost per BLS incident is shown in Table 41 , The cost per response for each type of apparatus (from Table 19) is multiplied by the percent of BLS incidents dispatched to (from Table 40) resulting in the total apparatus cost per BLS incident. The "bottom line" in Table 41 is the apparatus cost per BLS incident of $40,04, In other words, every BLS incident "uses up" $40.04 worth of apparatus, Henderson, Young & August 26, 2011 Page 62 Company � � Rate Study for lmpact Fees • City of Renton Table 41: Total Apparatus Cost Per BLS Incident (1) (2) (3) (4) Annuai Apparatus Percent Of Cost Per Apparatus BLS BLS Cost Per Incidents Incident I ' T e of A aratus Res onse Dis atched To Col.2 Col.3 !i Engine $ 28.38 60.4°/a $ 17.15 Ladder 47.95 5.5% 2.62 Aid Vehicle 29.43 55.6% 16.37 , Hazardous Materials Vehicle 416.67 0.0% 0.00 ' Brush Truck 66.67 0.0% 0.00 Staff Vehicles 83.73 3.3% 2.78 OtherA aratus/E ui ment 1,040.91 0.2% 1.97 Total 40.89 Formula F-11: Station Cost per Fire and BLS Incident The station cost per BLS incident is the same as Table 24, The formula is the same as Formula F-b, Formula F-12: Annual BLS Incident Rate Per Unit Of Development Formula F-12 is the same as Formula F-7, The annual BLS incident rate per unit of development is calculated using the same methodology as described for fire incidents in Tables 25- 29, There are no new variables used in formula F-12. The variables are identical to those used in Formula F-7, but using BLS incidents instead of fire incidents, During 2010, Renton's Fire Department responded to 9,490 BLS incidents, Of the 9,490 BLS incidents 9,371 were traceable to a type of development (i.e., the incident occurred at a specific type of property such as a residence or business) or they were traffic-related (occurred on a roadway) and were included in the following detailed analysis of incidents to land uses, Of the 9,371 BLS incidents analyzed 7,944 occurred at a specific property and 1,421 were traffic-related. The remaining 119 BLS incidents were not traceable to either a specific property or a traffic-related incident, therefore these 119 are apportioned to land uses and traffic on the same basis as the 9,371 incidents that are traceable, Table 42 shows the allocation of the 119 incidents without land use designations to the property and traffic categories using the same percentage as the 9,371 incidents for which a location was identifiable. Thus 101 of the 119 BLS incidents were allocated the same as the incidents at identifiable lands uses, and the other 18 BLS incidents were allocated the same as the traffic-related incidents. Henderson, Young & August 26, 2011 Page 63 Company � � Rate Study for lmpact Fees • City of Renton Table 42: BLS Incidents (1) (2) (3) (4) Incidents Incidents Identifiable Not Identifiable Total Incident Location B Location B Location Incidents Total 9,371 119 9,490 At Properties 7,944 101 8,045 %of Total 84.77°/a 84.77% 84.77% In Roads and Streets 1,427 18 1,445 %of Total 15.23°/a 15.23% 15.23% There are four tables that present the allocation of BLS incidents among types of land use: Table 43 shows the BLS incidents that were identifiable by land use type, Table 44 shows the BLS incidents that were traffic-related. Table 45 combines the BLS incident data (land use and traffic), and Table 46 shows the BLS incident rate per unit of development, Table 43 shows the distribution of the 7,944 BLS incidents that are traceable to a � land use along with the percent distribution of these 7,944 incidents. In column 4 the total 8,045 BLS incidents to land use (7,944 traceable + 101 allocated) is allocated among the land use types using the percent distribution column, The result is the total annual BLS incidents at each of the land use types. Table 43: BLS Incidents At Specific Land Uses (1) (2) (3) (4) BLS Percent Allocate Incidents Of All BLS 8,045 Identifiable Incidents BLS Incidents To Identifiabie To Land Uses Land Use Land Use To Land Use Col.3 x 8,045 RESIDENTIAL 5,448 68.58% 5,517 NONRESIDENTIAL Hotel/Motel/Resort 82 1.03% 83 Medical Care Facility 788 9.92% 798 Commercial: Office 113 1.42% 114 Medical/Dental Office 198 2.49% 201 Retail 510 6.42% 516 Leisure Facilities 199 2.51% 202 RestauranULounge 78 0.98% 79 Industrial/Manufacturing 81 1.02% 82 Institutions: Church/Non-Profit 29 0.37% 29 Education 163 2.05% 165 Special Public Facilities 255 3.21°/a 258 7,944 100.00% 8,045 Henderson, Young & August 26, 201 1 Page 64 Company � � Rate Study for lmpact Fees • City of Renton The traffic-related BLS incidents are allocated to land uses on the basis of the amount of traffic generated by each type of land use. In Table 44, the number of dwelling units and square feet of non-residential construction in Renton is ' multiplied times the number of trips that are generated by each land use type in the same manner as Table 27. The result is the total trips associated with each land use type. The percent of trips associated with each land use type is calculated from the total of all trips, In the final calculation in Table 44 the total 1,145 annual BLS incidents that are traffic-related (1,427 traceable + 18 allocated) is allocated among the land use types using the percent of trips generated, Table 44: Traffic Related BLS Incidents (Allocated to Land Uses) (1) (2) (3) (4) (5) (6) ITE Trip Allocate Generation 1,445 Rate/2 Traffic-Related Renton Per D.U. Percent BLS Units or Total Of Incidents By Of Per Unit Of Trips Trips Land Use Land Use Develo ment Develo ment Col.2"Col.3 Generated Col 5* 1,445 RESIDENTIAL 53,889 d.u. 4.23228 228,073 41.27% 596 NONRESIDENTIAL Hotel/Motel/Resort 675,098 sq.ft. 0.00446 3,011 0.54% 8 Medical Care Facility 505,735 sq.ft. 0.00825 4,172 0.75% 11 Commercial: Office 6,771,692 sq.ft. 0.00551 37,312 6.75% 98 Medical/Dental Office 916,863 sq.ft. 0.00551 5,052 0.91% 13 Retail 7,415,594 sq.ft. 0.02147 159,213 28.81% 416 Leisure Facilities 851,359 sq.ft. 0.01541 13,119 2.37% 34 Restaurant/Lounge 358,466 sq.ft. 0.06358 22,791 4.12% 60 Industrial/Manufacturing 15,081,742 sq.ft. 0.00349 52,635 9.52% 138 Institutions: Church/Non-Profit 1,044,126 sq.ft. 0.00456 4,761 0.86% 12 Education 2,854,937 sq.ft. 0.00645 18,414 3.33% 48 S ecial Public Facilities 291,913 s .ft. 0.01396 4,075 0.74% 11 552,630 100.00% 1,445 Henderson, Young & August 26, 201 1 Page 65 Company � � Rate Study for Impact Fees • City of Renton Table 45 summarizes the results of the analysis of BLS incidents. The total annual BLS incidents is a combination of the BLS incidents allocated among direct responses to land use categories (from Table 43) and the allocation of traffic- related incidents based on trip generation rates (from Table 44). ,, Table 45: Total Annual BLS Incidents By Land Use II (1) (2) (3) (4) Total Annual Annual Annual BLS Incidents Traffic Related BLS Incidents Direct to BLS Incidents By Land Use Land Use B Land Use Land Use RESIDENTIAL 5,517 596 6,114 NONRESIDENTIAL Hotel/Motel/Resort 83 8 91 Medical Care Facility 798 11 809 Commercial: Office 114 98 212 Medical/Dental Office 201 13 214 Retail 516 416 933 Leisure Facilities 202 34 236 Restaurant/Lounge 79 60 139 Industrial/Manufacturing 82 138 220 Institutions: Church/Non-Profit 29 12 42 Education 165 48 213 Speciai Public Facilities 258 11 269 Total 8,045 1,445 9,490 The final step in determining the annual BLS incident rate per unit of development is shown in Table 46, The total annual BLS incidents for each type of land use (from Table 45) are divided by the number of dweliing units or square feet of structures to calculate the annual BLS incident rate per dweiling unit or square foot, The units of development are the same as was used to determine traffic-related incidents (see Table 44), The results in Table 46 show how many times an average unit of development has an BLS incident to which the City of Renton responds. For example, a residential unit has an average of 0,1134479 BLS incidents per year. This is the same as saying that 11 .3% of all residential dwellings have an BLS incident in a year, Another way of understanding this information is that an average residential dwelling unit would have a BLS incident once every 8.8 years. Henderson, Young & August 26, 2011 Page bb Company � � Rate Study for lmpact Fees • City of Renton Table 46: Annual BLS Incidents By Land Use '�' ��) �2) �3) �4) Total Annuai BLS Units Incidents To Of Annual BLS Incidents per Land Use Land Use Develo ment Unit of Develo ment RESIDENTIAL 6,114 53,889 0.1134479 perdwelling unit NONRESIDENTIAL Hotel/Motel/Resort 91 675,098 0.0001347 per sq ft Medical Care Facility 809 505,735 0.0015995 per sq ft Commercial: Office 212 6,771,692 0.0000313 per sq ft Medical/Dental Office 214 916,863 0.0002331 per sq ft Retail 933 7,415,594 0.0001258 per sq ft Leisure Facilities 236 851,359 0.0002770 per sq ft RestauranULounge 139 358,466 0.0003866 per sq ft Industrial/Manufacturing 220 15,081,742 0.0000146 persqft Institutions: Church/Non-Profit 42 1,044,126 0.0000401 persqft Education 213 2,854,937 0.0000747 per sq ft Special Public Facilities 269 291,913 0.0009211 per sq ft Total 9,490 Formula F-13: BLS Incident Capital Cost Per Unit Of Development The capital cost of BLS incidents per unit of development is determined by multiplying the annual BLS incidents per unit of development (from Table 45) times the annual capital cost per BLS incident of each type of apparatus (from Table 41) and fire station (from Table 24), then multiplying that result times the useful life of the apparatus or fire station.9 Annual BLS Annual Useful Life BLS Incident Incidents Per Cost Per Of Capital Cost F-13. Unit Of X BLS X Apparatus - Per Unit Of Development Incident or Station Development There are no new variables used in formula F-13. The variables are identical to those used in Formula F-8, but using BLS incident rates and costs instead of fire incident rates and costs. In Tables 47 -52 on the following pages, each BLS incident rate (from Table 45) is multiplied by the annual capital cost per BLS incident, The result is then multiplied times the useful life of the apparatus or station to calculate the ° Footnote 8 applies to formula F-13 as well as F-8, Henderson, Young & August 26, 2011 Page 67 Company � � Rate Study for lmpact Fees • City of Renton capital cost per unit of development for each type of apparatus and station, This series of tables does not include the cost for a hazardous materials vehicle or brush truck because, as shown in Table 40, they do not respond to BLS incidents, therefore the apparatus cost per BLS incident for these two types of apparatus is zero in Table 41 , Table 47 calculates the BLS related capital costs of an engine per unit of ' development.. For example, residential units average 0.1134479 BLS incidents per year (i.e., 11 ,3% of a BLS incident per year). Multiplying this times the annual capital cost of $17.15 per incident (from Table 41) produces the result that it costs $1.9453 per dwelling unit to provide it with engines for one year. Since the engine lasts 10 years, the residential dwelling needs to pay for 10 times the annual rate, for a total of $19.4529, Table 47: Engine Cost Of Responses to BLS Incidents at Land Use Categories (1) (2) (3) (4) (5) Engine Engine Cost @ Life Cost @ Unit of Annual BLS $ 17.15 10 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.1134479 $1.9453 $ 19.4529 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0001347 0.0023 0.0231 Medical Care Facility per sq ft 0.0015995 0.0274 0.2743 Commercial: Office per sq ft 0.0000313 0.0005 0.0054 Medical/Dental Office per sq ft 0.0002331 0.0040 0.0400 Retail per sq ft 0.0001258 0.0022 0.0216 Leisure Facilities per sq ft 0.0002770 0.0047 0.0475 Restaurant/Lounge per sq ft 0.0003866 0.0066 0.0663 Industrial/Manufacturing per sq ft 0.0000146 0.0002 0.0025 Institutions: Church/Non-Profit per sq ft 0.0000401 0.0007 0.0069 Education per sq ft 0.0000747 0.0013 0.0128 S ecial Public Facilities er s ft 0.0009211 0.0158 0.1579 Henderson, Young & August 26, 2011 Page 68 Company � � Rate Study for lmpact Fees • City of Renton Table 48 calculates the capital cost per unit of development for ladder trucks responding to BLS incidents. The incident rate (from Table 46) is multiplied by the ladder truck's capital cost per BLS incident ($2.62 from Table 41). The result is then multiplied times the 20-year useful life of a ladder truck to calculate the capital cost per unit of development for ladder trucks, Table 48: Ladder Cost Of Responses to BLS Incidents at Land Use Categories (1) (2) (3) (4) (5) Ladder Ladder Cost @ Life Cost @ Unit of Annual BLS $2.62 20 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.1134479 $0.2975 $5.9496 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0001347 0.0004 0.0071 Medical Care Facility per sq ft 0.0015995 0.0042 0.0839 Commercial: Office per sq ft 0.0000313 0.0001 0.0016 Medical/Dental Office per sq ft 0.0002331 0.0006 0.0122 Retail per sq ft 0.0001258 0.0003 0.0066 Leisure Facilities per sq ft 0.0002770 0.0007 0.0145 Restaurant/Lounge per sq ft 0.0003866 0.0010 0.0203 Industrial/Manufacturing per sq ft 0.0000146 0.0000 0.0008 Institutions: Church/Non-Profit per sq ft 0.0000401 0.0001 0.0021 Education per sq ft 0.0000747 0.0002 0.0039 S ecial Public Facilities er s ft 0.0009211 0.0024 0.0483 Henderson, Young & August 26, 2011 Page 69 Company • i Rate Study for lmpact Fees • City of Renton Table 49 calculates the capital cost per unit of development for aid vehicles responding to BLS incidents. The incident rate (from Table 46) is multiplied by the aid vehicle's capital cost per BLS incident ($16.37 from Table 41), The result is then multiplied times the 7-year useful life of an aid vehicle to calculate the capital cost per unit of development for aid vehicles. Table 49: Aid Vehicle Cost Of Responses to BLS Incidents at Land Use Categories (1) (2) (3) (4) (5) Aid Vehicle Aid Vehicle Cost @ Life Cost @ Unit of Annual BLS $16.37 7 Land Use Develo ment Incident Rate er BLS Incident Year Life RESIDENTIAL per dwelling unit 0.1134479 $ 1.8569 $12.9962 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0001347 0.0022 0.0154 Medical Care Facility per sq ft 0.0015995 0.0262 0.1833 Commercial: Office per sq ft 0.0000313 0.0005 0.0036 Medical/Dental Office per sq ft 0.0002331 0.0038 0.0267 Retail per sq ft 0.0001258 0.0021 0.0144 Leisure Facilities per sq ft 0.0002770 0.0045 0.0317 RestauranULounge per sq ft 0.0003866 0.0063 0.0443 Industrial/Manufacturing per sq ft 0.0000146 0.0002 0.0017 Institutions: Church/Non-Profit per sq ft 0.0000401 0.0007 0.0046 Education per sq ft 0.0000747 0.0012 0.0086 S ecial Public Facilities er s ft 0.0009211 0.0151 0.1055 Henderson, Young & August 26, 2011 Page 70 Company ! � Rate Study for lmpact Fees • City of Renton Table 50 calculates the capital cost per unit of development for staff vehicles responding to BLS incidents. The incident rate (from Table 46) is multiplied by the staff vehicle's capital cost per BLS incident ($2,78 from Table 41). The result is then multiplied times the 10-year useful life of a staff vehicle to calculate the capital cost per unit of development for staff vehicles, Table 50: Staff Vehicle Cost Of Responses to BLS Incidents at Land Use Categories (1) (2) (3) (4) (5) Staff Vehicle Staff Vehicle Cost @ Life Cost @ Unit of Annual BLS $2.78 10 Land Use Develo ment Incident Rate er BLS Incident Year Life RESIDENTIAL per dwelling unit 0.1134479 $0.3153 $3.1531 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0001347 0.0004 0.0037 Medical Care Facility per sq ft 0.0015995 0.0044 0.0445 Commercial: Office per sq ft 0.0000313 0.0001 0.0009 Medical/Dental Office per sq ft 0.0002331 0.0006 0.0065 Retail per sq ft 0.0001258 0.0003 0.0035 Leisure Facilities per sq ft 0.0002770 0.0008 0.0077 Restaurant/Lounge per sq ft 0.0003866 0.0011 0.0107 Industrial/Manufacturing per sq ft 0.0000146 0.0000 0.0004 Institutions: Church/Non-Profit per sq ft 0.0000401 0.0001 0.0011 Education per sq ft 0.0000747 0.0002 0.0021 S ecial Public Facilities er s ft 0.0009211 0.0026 0.0256 Henderson, Young & August 26, 2011 Page 71 Company � � Rate Study for lmpact Fees • City of Renfon Table 51 calculates the capital cost per unit of development for other apparatus/equipment responding to BLS incidents. The incident rate (from Table 46) is multiplied by the other apparatus/equipment's capital cost per BLS incident ($1 .97 from Table 41), The result is then multiplied times the 10.2-year useful life of other apparatus/equipment to calculate the capital cost per unit of development for other apparatus/equipment. Table 51: Other Apparatus/Equipment Cost Of Responses to BLS Incidents at Land Use Categories (1) (2) (3) (4) (5) Other Other Apparatus/ Apparatus/ Equipment Equipment Cost @ Life Cost @ Unit of Annual BLS $1.97 10.2 Land Use Develo ment Incident Rate er BLS Incident Year Life RESIDENTIAL per dwelling unit 0.1134479 $0.2240 $2.2846 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0001347 0.0003 0.0027 Medical Care Facility per sq ft 0.0015995 0.0032 0.0322 Commercial: Office per sq ft 0.0000313 0.0001 0.0006 Medical/Dental Office per sq ft 0.0002331 0.0005 0.0047 Retail per sq ft 0.0001258 0.0002 0.0025 Leisure Facilities per sq ft 0.0002770 0.0005 0.0056 RestauranULounge per sq ft 0.0003866 0.0008 0.0078 Industrial/Manufacturing per sq ft 0.0000146 0.0000 0.0003 Institutions: Church/Non-Profit per sq ft 0.0000401 0.0001 0.0008 Education per sq ft 0.0000747 0.0001 0.0015 S ecial Public Facilities er s ft 0.0009211 0.0018 0.0186 Henderson, Young & August 26, 2011 Page 72 Company � • Rate Study for Impact Fees • City of Renton Table 52 calculates the capital cost per unit of development for fire stations that house BLS apparatus. The BLS incident rate (from Table 46) is multiplied by the fire station's capital cost per fire and BLS incident ($91,33 from Table 24), The result is then multiplied times the 50-year useful life of a fire station to calculate the capital cost per unit of development for fire stations. Table 52: Fire Station Cost of Responses to BLS Incidents at Land Use Categories (1) (2) (3) (4) (5) Fire Station Fire Station Cost @ Life Cost @ Unit of Annual BLS $91.33 50 Land Use Develo ment Incident Rate er Incident Year Life RESIDENTIAL per dwelling unit 0.1134479 $ 10.3610 $518.0517 NONRESIDENTIAL Hotel/Motel/Resort per sq ft 0.0001347 0.0123 0.6150 Medical Care Facility per sq ft 0.0015995 0.1461 7.3040 Commercial: Office per sq ft 0.0000313 0.0029 0.1430 Medical/Dental Office per sq ft 0.0002331 0.0213 1.0645 Retail per sq ft 0.0001258 0.0115 0.5744 Leisure Facilities per sq ft 0.0002770 0.0253 1.2649 Restaurant/Lounge per sq ft 0.0003866 0.0353 1.7655 Industrial/Manufacturing per sq ft 0.0000146 0.0013 0.0665 Institutions: I Church/Non-Profit per sq ft 0.0000401 0.0037 0.1829 , Education per sq ft 0.0000747 0.0068 0.3410 S ecial Public Facilities er s ft 0.0009211 0.0841 4.2063 Table 53 combines the capital costs of all types of apparatus and station (from Tables 47 - 52) to show the total capital cost of responses to BLS incidents for one unit of residential development. Table 53: Example of Calculation of Total Capital Cost Of Responses to BLS Incidents for a Single-Family Residence ��) �2) �3) Cost Com onent Cost Source Engine $ 19.4529 Table 47 Ladder 5.9496 Table 48 Aid Vehicle 12.9982 Table 49 Staff Vehicle 3.1531 Table 50 Other Apparatus/Equipment 2.2846 Table 51 Station 518.0517 Table 52 Total 561.8901 This example is repeated for each land use to combine its capital costs of all types of apparatus and stations in Table 54, Henderson, Young & August 26, 201 1 Page 73 Company . • Rate Study fo�lmpact Fees • City of Renton Table 54: Total Capital Cost Of Responses to BLS Incidents at Land Use Categories ��) �2) �3) BLS Incident Life Cost of All Unit of Apparatus Land Use Development an Station RESIDENTIAL per dwelling unit $561.89 NONRESIDENT�AL Hotel/Motel/Resort per sq ft 0.67 Medical Care Facility per sq ft 7.92 Commercial: Office per sq ft 0.16 Medical/Dental Office per sq ft 1.15 Retail per sq ft 0.62 Leisure Facilities per sq ft 1.37 RestauranULounge per sq ft 1.91 Industrial/Manufacturing per sq ft 0.07 Instituiions: Church/Non-Profit per sq ft 0.20 Education per sq ft 0.37 Special Public Facilities per sq ft 4.56 Formula F-14: Fire and BLS Cost Per Unit Of Development The fire and BLS costs per unit of development (from tables 39 and 54) are combined to determine the total fire and BLS cost per dwelling unit or non- residential square foot. Fire Incident BLS Incident Fire and BLS Cost F-14, Capital Cost + Capital Cost _ Per Unit Of Per Unit of Per Unit of Development Development Development There are no new variables used in formula F-14. Both variables were developed in previous formulas and tables. Henderson, Young & August 26, 2011 Page 74 Company � � Rate Study for lmpact Fees • City of Renton In Table 55 the fire and BLS costs per unit of development (from Tables 39 and 54) are added together to determine the combined total fire and BLS cost per dwelling unit or non-residential square foot. Table 55: Total Cost of Response o Fire and BLS Incidents by Land Use Category (1) (2) (3) (4) (5) Fire and BLS Fire Incident BLS Incident Life Cost Life Cost Life Cost of All of All of All Apparatus Unit of Apparatus Apparatus and Station Land Use Develo ment an Station an Station Col. 3+Col.4 RESIDENTIAL per dwelling unit $ 178.89 $561.89 $740.78 NONRESIDENTIAL 1 Hotel/Motel/Resort per sq ft 0.30 0.67 0.97 Medical Care Facility per sq ft 0.40 7.92 8.32 Commercial: Office per sq ft 0.07 0.16 0.22 Medical/Dental Office per sq ft 0.14 1.15 1.30 Retail per sq ft 0.28 0.62 0.90 Leisure Facilities per sq ft 0.67 1.37 2.04 Restaurant/Lounge per sq ft 0.84 1.91 2.76 Industrial/Manufacturing per sq ft 0.05 0.07 0.12 Institutions: Church/Non-Profit per sq ft 0.17 0.20 0.37 Education per sq ft 0.32 0.37 0.69 S ecial Public Facilities er s ft 0.41 4.56 4.98 Formula F-15: Adjustments and Impact Fees The final step in determining the fire services impact fee is to reduce the cost per dwelling unit or non-residential square foot by subtracting any credits for other revenue from existing and new development that the City of Renton will use to pay for part of the cost of the same fire protection facilities that are the basis of the impact fee, and any adjustment to comply with RCW 82.02,050(7). Fire and BLS Adjustment Impact Fee F-15, Cost Per Unit of - For Revenue = Per Unit Of Development Credits Development There is one new variable that requires explanation: (J) adjustment for revenue credits, Variab/e (J):Ad%ustment for Revenue Credits Renton does not have dedicated revenues for fire stations and apparatus, therefore there is no adjustment for future payments of other revenues that are Henderson, Young & August 26, 201 1 Page 75 Company � • R�te Study for lmpact Fees • City of Renton used to pay for the same new fire stations and apparatus that are required to serve the new development. The only revenue sources to be included in the adjustment are those that are used for fire services facilities capacity expansion according to law and local policy or practice. Adjustments are not given for other payments that are not used for new fire services facilities needed for new development. Such an adjustment would extend to payments of all taxes for all purposes to all forms of governments, which contradicts the well-established system of restricting fees, charges, and many taxes for specific public facilities and services10� Adjustments are not given for revenues that are used for repair, maintenance or operating costs because impact fees are not used for such expenses. The final step in Table 56 (on the next page) is to further reduce the impact fees that would be charged to new development in order to implement RCW 82.02.050(7) which provides that "...the financing for system improvements to serve new development ... cannot rely solely on impact fees," The statute provides no further guidance, and "not rely solely" could be anything between 0,1%and 99,9%. 10 RCW 82.02.060(1)(b) requires an adjustment for revenue credits to be given only for "...payments made or reasonably anticipated to be made by new development to pay for particular system improvements in the form of user fees, debt service payments, taxes, or other payments earmarked for or proratable to the particular system improvement (emphasis added);" Henderson, Young & August 26, 2011 Page 76 Company � � Rate Study for lmpact Fees • City of Renton The adjustment of 3% used in Table 56 is the same adjustment percent used for transportation impact fees. Table 56 shows the cost per dwelling unit or non- residential square foot from Table 55, the 3% adjustment, and the impact fee after the adjustment is subtracted from the fuli cost, Table 56: Fire Impact Fees By Land Use (1) (2) (3) (4) , Total Fire and BLS Fire and Impact Fee , BLS Per Cost of Credit Unit of Impact of Adjustment @ Development Land Use Develo ment 3.00% Col.2-Col.3 RESIDENTIAL $740.78 $22.22 $718.56 per dwelling unit NONRESIDENTIAL Hotel/Motel/Resort 0.97 0.03 0.94 per square foot Medical Care Facility 8.32 0.25 8.07 per square foot Commercial: Office 0.22 0.01 0.21 per square foot Medical/Dental Office 1.30 0.04 1.26 per square foot Retail 0.90 0.03 0.88 per square foot Leisure Facilities 2.04 0.06 1.98 per square foot RestauranULounge 2.76 0.08 2.67 per square foot � Industrial/Manufacturing 0.12 0.00 0.12 per square foot ' Institutions: Church/Non-Profit 0.37 0.01 0.36 per square foot Education 0.69 0.02 0.66 per square foot S ecial Public Facilities 4.98 0.15 4.83 er s uare foot Henderson, Young & August 26, 2011 Page 77 Company � + � � � City of �,�, � � ;, �.�, � � • � �f �<'�,c�'' Community Services ��e�'�;�tment Recreation Division � : ; . Cost Recovery ..: and Pr+�gram Pricing Guidelines RENTON AHEAD OF TtiE CURVE � , COST �VERY AND PROGRAM PRICING GUI�NES EXECUTIVE SUMMARY The Cost Recovery and Program Pricing Guidelines wereprepared to develop a methodology for determining the appropriate target of cost recovery for current and future services. This model provides guidance for determining which program services should be fee based, and provides a method to ensure that current services are priced at a level co,mmensurate with Renton Results directives. This guide will help the Recreation Division determine how well aligned its current pricing practices are with cost recovery goals and establisti`a�methodology for appropriately aligning current and future program services. I Cost recovery refers to the amount of revenue th�t'the Recreation Division takes in from fees, charges, and alternative funding in proportion��to operational expenditures;, The recent past has been challenging for recreation programming se'r'vices to meet revenue expectations and reduce expenditures. Cost Recovery and Program P�`i�ing Guidelines will provide direction to sustain quality program services in,a.growing community;v+ihile costs of doing business continue to rise. In the winter of 2011,the Recreation D'ivisi.on�ctecided to examine.Cost Recovery and Program ;:r::. Pricing issues. The Recreation Team began;work�on:�ddressing issues related to cost recovery and subsidy philosophie� �ertinent to how we,:deliV�r:�stlstainable services. The Recreation Team identified direct,:�nd indirect costs associatetl with p�ov�ding programs and services, and defined various fees arict;participant categories th'a� pertained to the Cost Recovery , Programming Tiers. They"tlefined:these terms speci�ically relating to Public Good and Private Good criteria which ultimately defined �ategories of�programs and services associated with target.cos# recovery.ranges. Additionally,the Recreation Team determined the Cost Recovery and Program Pricing Guidelines were to be implemented beginning in the Winter/Spring programming of 2012. An � annual review of.the Cost Recovery and Program Pricing model will be conducted to adjust to I inflation, community input, and program evaluation recommendations. ' R E N T O I�1 AFIEAD OF THE CUIt�E 2 ' j COS'�OVERY AND PROGRAM PRICING G�LINES TABLE OF CONTENTS ExecutiveSummary.......................................................................................................................................2 Cost Recovery Guidelines...................................................................... 5 r. .................................................... ::-.,:. Section 1. Cost Recove DEFINITION ��<>'=� 5 ry .......................................... ................................................... ..... Cost Recovery Defined.........................................................:::::::::::......................................................5 ;...... -- Cost Recovery in Recreation ............................................::.z«,:...::.:;i,...................................................5 - .. Section 2: Vision, Mission,Goals,and Strategies........................:............::::................................................7 Vision................................................................... ......................... ...........................................7 Mission........................................................... ..:R<: ::................................... ....................................7 Goals................................................................. .......................................... ..............................7 .:.. . Community Services Department Mission...........::.:.:...........................................................................8 Recreation Division Mission ......................8 ....................................... .. ..... .,. .................................. Livable Community Goals..............:................................:::..::.:.:::...........................................................8 �.._. ., Livable Community Strategies.....:`�:::...::.............................::::>..............................................................8 Section 3: Description of Benefits Contin�urri���1 Filters.............::c;;,;.....................................................10 WhoBenefits?............................................. ..... ...................... ...............................................10 .. , . Community Benefit/Individual Benefit Coptinuurrt.:.........................::::..............................................10 CommunityBenefi�_i:::..... . ...................... ..... :;;:•i;,;: ..............................................................10 Individual Benefit:::r;>::....... .................... .... ....... ::: ........................................................10 MixedBenefit.....:... ........ ..................... .............................................................................10 .::-:. -..:. Cost Recovery Tier Defr�ition..:::::.........................:;.:i.........................................................................10 SecondaryFilters........... ::. :i: .,. ................... ...................................................................11 .::::.:::.::.:.::.. . Section 4:,-Sorting Services into Tie�'S.....:.:::::.:... ........................................................................................14 _ ; . ,.;:,,.. _ Prograrn'Tier Cie'scr�ptions...............:�:.a...........::.::.:.....................................................................................14 : - --:::: 1. Full Subsidy"Pt'ograms.........:>:>,,.............:'::::...............................................................................14 2. Nttsstly Subsidiied Programs....::::...............................................................................................14 .... 3. Partiai Subsidy Programs..............:.:. ...........................................................................................14 4. Self-Sustaining Progr�ri�s.............................................................................................................15 „ Section 5: Direct, Ineremental, Origoing and Overhead Cost Descriptions...............................................16 ..... DirectProgram Costs......:..........::.:..............................................................................................................16 OverheadCosts................. ... ..............................................................................................................16 ... Section 6: Current Cost Recov�rjr Analysis(FY 2010).................................................................................17 PROGRAMPRICING.....................................................................................................................................18 PricingGuidelines........................................................................................................................................18 RecommendedFees............................................................................................................................18 Determining Program Pricing..............................................................................................................18 Fixed Incremental and Ongoing Costs for Renton Recreation Programming.....................................18 Applying Full-Time Employee Costs with Benefits..............................................................................19 PricingFactors.....................................................................................................................................19 � RENTOI� AHEAD OF 1'HE CUIIVE 3 . COST �VERY AND PROGRAM PRICING GUI�NES . InstructorPayments............................................................................................................................20 General Recreation Program Report...................................................................................................21 RefundPolicy.......................................................................................................................................21 Appendix A Recreation Programming Target Outcomes...........................................................................23 Appendix B Program Proposal and Budget................................................................................................25 ProgramProposat........................................................................................................................................25 ProgramBudget..........................................................................................................................................27 R� � To � AHEAD OR THE CURVE 4 ' COSI�OVERY AND PROGRAM PRICING G�LINES COST RECOVERY GUIDELINES SECTION 1. COST RECOVERY DEFINITION Cost Recovery De�ned Cost recovery at a basic level is a very easy to understand—it is the percentage of expenditures recovered by generating revenue for any undertaking. ;�;;;;:;;:; Having cost recovery goals is a concept very familiar to privat�:��cto'r.:;�nd for-profit enterprises because their very existence depends on the ability to recover at least what they;spend and generally to turn as much profit as possible. . In the public sector, however,the concept of a specific cost recovery policy is fair1y new. While there may have been revenue expectations for certain are'a'�.qf the budget in a public sector agency, or even enterprise funds that have a full cost recovery expectatiori;the r��jprity of services delivered by the public sector have focused on the expense budget which is tieteri'�ined by the amount of tax dollars collected. This has historically been the:�se with the field of P�;t�Cs and Recreation where funding primarily comes from public subsidy and"�tie"�s�E-vices themselves were not expected to generate any significant revenue. Staying within budget b,y,not overspending has fypically been the mandated goal, where revenue generation was secondary. '� Cost Recovery in Recreat'ion Applying explicit cost reco�ie.ry pol`iG�es to recreation departments is a relatively new idea and is not without resistance within t�ie".field.;�any believe that'prpviding recreation opportunities and services is �:.:,�.., a public service,and treating it�ik�:;�iny pther business undermines the core of its primary mission. Parks and recr,�atiiiri.�er"vices provide irYiirieasurable benefits to the entire community and aspire to be open and acces"sible to ait:"T�e goal is to serVe as many as possible and have the greatest beneficial impact to the comrriunity. In private busin�ss the goal is to generate revenue, and the inability to pay limits access to services. Another source of resistance for,Gost recovery policies in recreation is that it has been historically free or low cost,and this is what;���ize�s:;and recreation professionals have come to expect. Public recreation �.,.:.. ..:........ programs originated as soci��programs much the same as roads,fire, or police. There was no expectation to charge fees for programs and they were mostly supported by tax dollars. It has long ' been assumed that private business practices were not generally applicable to public recreation programs because the goal is not the same;the benefits of recreation are not measured in dollars. As resources shrink and the cost of providing services has grown, recreation departments across the country began adopting some business practices from the private sector, including creating cost recove olicies and a I in them to the field of ublic recreation services. The result is an array of rYp , pPY g p _--- RE � TON AHtAD OF THE CURVE 5 I COST�VERY AND PROGRAM PRICING GUI�NES ` . cost recovery models that help departments become better stewards of the public funds,while taking into account the public benefit of the services and recognizing the need for some level of public subsidy. Cost recovery in recreation is rarely about recovering the full cost of providing services or generating a profit. In fact, if public recreation departments were held to the same cost recovery standards as private businesses they would most likely fail and the programs that provide the greatest benefit to the community and those most in need would certainly not be offered. A sound cost recovery policy for public recreation should balance the social mission of recreation to provide opportunities and services that improve the quality of life,�for residents, and contributes to a more livable community with the reality of shrinking budgets;:lirriited_.resources and the need to be more efficient and accountable by prioritizing services at levels that car►be sustained by revenue. , Generating revenue through user fees, sponsorship�,;Ei�rtnerships,grants, and other funding sources helps recreation departments reduce taxpayer sub���y in order to continue proVid.ing services without having to make severe cuts. Through establishing a cost recovery policy that identifies whiat seiarices are most beneficial to the community as a whole and merits a higlier,subsidy, as well as what services have the potential to �� generate higher revenue when equitably priced, recreation departti�ents can continue to offer both. R� r� Tor� AFiF.AD OF TH6 CU1lVE 6 ' CO�COVERY AND PROGRAM PRICING �ELINES SECTION 2: VISION, MISSION, GOALS, AND STRATEGIES The starting point for developing a cost recovery plan is to understand the mission of the organization , and how the division supports that mission. It is important that the organizational values reflect the community mission and the division's mission supports those goals,strategies,and values of the organization. In order to develop a clear and consistent policy that reflects the mis5ion of the community, organization, department,and division it is helpful to understan¢:h:4iy�the mission at each level of the organization ties in to the others and becomes more specific�rit#;i�nstxuctive as you go from city to department to division. The City of Renton Recreation Division i5��pari�vf.the Community Services Department within the City of Renton. The mission,vision, and goals fo���ach level of the organization are not independent of each other, but rather refine�,specific pieces of a ciirtsistent, overarching community vision. .. The Renton Business Plan spells out broad organizational goals and;.provides a "big p�icture"vision for Renton. Within the Renton Business Plan,five important goals are�-identified that help guide the future of the City as a whole,and help to defi�i�.each department's corg'3ervices. While the Community Services Department is instrumental in�#i���illing multiple goals in`#h�,Renton Business Plan,the vast majority of Recreation programs are desigiied to::meet the service demands that contribute to the livability of the community,or simply put, "livable�cotnmunity." Everytiiing that the Recreation Department does should�dYance this goal through one of;Xhe five categaries of strategies identified within "livable community{'�'The missions,visiorts,go,al,s;arid_strategies follow. Vision Renton: The center of opportuhity.i�:the,Puget Sound Region where families and businesses thrive. Mission` `: The City of Renton, in parfnership and communication with residents, businesses, and schools, is dedicated to:: • Providing.a healthy, w�lcoming atmosphere where citizens choose to live, raise families, anii take pride��r�their community. • Promoting plaiirt�d gro�yth and economic vitality. • Valuing our diverslty v,f language, housing, culture, backgrounds, and choices. • Capitalize on the divers7ty of the community to build stronger neighborhoods and ensure the availability of City services to all. • Creating a positive work environment. • Meeting service demands through innovation and commitment to excellence. Goals 1. Meet the service demands that contribute to the livability of the community. 2. Manage growth through sound urban planning. RENTON AEIFAD OF Fli£ CURVE 7 COST R�VERY AND PROGRAM PRICING GUI[�JES 3. Influence decisions that impact the City. 4. Promote strong neighborhoods. 5. Promote citywide economic development. Community Services Department Mission To provide to the citizens of Renton quality of life opportunities through leisure time activities and Human Services Programs. This includes maintaining parks,trails,facilities,a museum,and offering a variety of recreational activities for people of all ages. The Department also provides information and referral programs. Recreation Division Mission The Recreation Division of the Community Services D.epartment promotes and supports a more livable community by providing opportunities for the pubJlG�tp participate in diverse recreational,cultural, athletic,and aquatic programs and activities. Livable Community Goals Meet the service demands that contribute,.to the livability of tFie community: • Prioritize services at levels that cati b�.�ustained by revenue. • Plan, develop, and maintain quality:services;,infrastructure, dnd�rmenities. • Respond to growing service demands�while meeting the unique requirements of a diverse population through Aartnerships, innov6tion, ariof.outcvme management. Livable Community Strategies `'. . Provide avenues for residents to meet their social;educational, personal,and professional needs and foster community engagement=and dialogue that: • Areinclusive of all ages, abilities, and.cultures. • ii�elcome new participants and forge new relationships among residents. • P'r'o;i�ide diverse re.'�reational, inte�lectual, cultural, and artistic activities and progrdms. • Strength"en.pnd encourage a sense of belonging through volunteerism and neighborhood involvem"ent. • Provide opporturli�ies fQ�social interaction, shared experiences, and cultural exchange. � , Provide opportunities for fearning and enrichment: • Provide diverse intellectual,cultural, artistic, and recreational activities and programs that meet the needs and interests of the public. • Promote opportunities for shared experiences, cultural exchange,social interaction, and volunteerism within the community. • Develop and maintain collections of materials and resources that support the intellectual and informational needs of the public. RENTON AHEAD Ofi SEIE CUAVE 8 ' COS�OVERY AND PROGRAM PRICING G�LINES • Incorporate public art into the design and creation of community spaces, and maintain it. • Support formal education, life-long learning, and personal growth. Create clean,safe, healthy,well-maintained,and accessible places: • Clean,safe, well-maintained, and accessible parks, open spaces, trails,facilities, right-of-ways, and other City properties. • Public and private developments that are accessible to all,-are i�ve11-landscaped, and easily maintained ' .;.. • Provide safe, accessible, well-maintained, and healthy r�creatior�al programming and facilities to engage, challenge, and bring together members of.the community to promote personal well-being. , • Incorporate sustainability in design of facilit�es to adapt to change and meet community needs. �::. `>; RENTON AWf.AD OB THE CU1tVE 9 COST �VERY AND PROGRAM PRICING GUf�NES SECTION 3: DESCRIPTION OF BENEFITS CONTINUUM AND FILTERS WHO BENEFITS? Community Benefit Individual Benefit Community Benefit/Individual Benefit Continuum—Foundation of all Programs As a whole, recreation programs span a continuum that encompasses programs that benefit the community as a whole through programs that serve primarily the individuals that take part in them. Community Benefit programs not only provide recreation opportunities�b"ut.also meet a broader community goal. Senior programming or Specialized Rec"reation programs respond to a clear community goal to "fill in the gaps"within our com.rriun'ity to serve underserveii groups with limited resources and recreation opportunities. Communitji b�nefit programs are also characterized by their indivisible nature. Many people can take advantage of a:trail, a beach,or drop-in activit�es at a community center without depleting the availability of that resouree significantly. Their use of that facility or opportunity does not preclude use by others. Individual Benefit programs are designed�q=meet,the expressed needs of participants for particular programs. Their benefit is primarily to the iridividua"l`user and space and access to the program is limited in availability or selective in nature. Par�icipatior�in the program by one user diminishes the availability of that progra�'i fo ather users,or in�he ca,se of rentals, reserving a particular space restricts access to that space liy:other members of the comt�unity. Mixed Benefit programs fafl in the middle of the continirum. Rarely is a recreation program strictly communitypr;individual benefit;;=Most of�he recreation programs offered have some mix of both commu.nity bene�it and individual benefit. One example is summer day camps for youth. The commu�iity has exp'ressed a clear desire for prograirls that serve youth and families where they benefit by having�"-safe,structured program for#heir kids to participate in healthy activities when school is out. Day camp spaces, however;are limited in riumber and have significant cost in staffing and supplies. The public benefits�liy,having youth,programming available,especially when school is out,and the individual youth and families also benefit'from these opportunities. To the extent that these programs benefit the community,they deserve some level of support and they are also candidates for some level of cost recovery by user fees. Cost Recovery Tier Definition —Cost Recovery Tiers establish the expectation that the Recreation Division will confirm or determine current cost recovery and subsidy allocation levels by program service area. This will include consideration of program revenues sources and services costs or expenses. The Cost Recovery Tiers are categorized into four programming tiers: 1) Full Subsidy,2) Mostly Subsidized, 3) Partial Subsidy,and 4) Self-Sustaining. The programming tiers range from Public Good (Full Subsidy) to Private Good (Self-Sustaining),with most of the recreation programming being categorized on a continuum between public and private good. Example of Public Good would be Lifeguards at Coulon Beach Park because it benefits safety to many who swim there. Example of Private Good would be RENTON AMEAO OF THE CUAWE 10 COS�COVERY AND PROGRAM PRICING G�LINES private tennis lessons for someone who takes lessons on a one-on-one basis, because it only serves one person and occupies valuable court time. Cost Recovery Programming Tiers correct inconsistencies in program cost accounting that sometimes become difficult to determine when delivering a program. Results of the Programming Tiers will identify whether staff members know what it costs to provide ' services to the community;whether staff has the capacity or resources necessary to account for and track costs;whether accurate cost recovery levels can be identified; and whether general ledger line items align with how the Recreation Division may want to track these costs in the future. Secondary Filters—these can move a program from one tier into�Fitither: ,:,• •: Evaluating a program based solely on the benefit continuum would:��cely categorize programs that are strictly community or individual benefit, but does not adequately;�v�iluate the majority of programs that are "mixed benefit." The following additional filters help to place mixed_�enefit programs into one of the defined cost recovery tiers by taking into account additional factors suclt as time,cost,commitment, and targeted populations. A. Commitment(the intensity of work/resources to offer program) The level of commitment a program requires in otder to b�;offered has to be considered when evaluating cost recovery goals. The higher the commitment,the more cost recovery will be necessary. B. Obligation (our role to provide) If we are obligated to provide a certain service;such as lifegua�ding at beaches,that must be taken into account. Regardless of the place on the eontinuum,these programs will be offered so cost recovery�goals are secondary to rriandatecl seivjces. C. Market(highly popular or sttiall market?) Program and activity prjcing�"sF�o,uld consider the rnarket rate for similar services as well as the denr�and. A very popula"r:pi'Og'raitiw�th limited space and a long waiting list may be a candidate _.,<#or fiigher cost recovery ifit:is.;determined that demand exceeds supply or the price is `�ignificantly tdinter than the go'ing market rate. Alternatively, a high community benefit program may require a price.decrease because of market factors in order to be viable. D. Cost to provide (cost peC participant,to run the program?) Cost is another factor wli�n considering cost recovery goals. This is different from commitment because it deals exclusively with dollars, not necessarily resources or time. Programs with high cost and high corrimuni�y"benefit may require higher cost recovery than low cost programs with comparable benefit: f}ne example is specialized programs that may require expert instructors or expensive supplies. E. Who we serve (is this serving a targeted population as defined by community surveys and evaluations?) Targeted populations are the result of expressed desires by the community to serve certain groups by removing barriers to participation. One significant barrier to participation is cost. A program may be the exact same as another that is offered to the general public, but because it .�— RENTON AtIEAD OF Th1E CtTRVE 11 COST �VERY AND PROGRAM PRICING GUI�NES is targeted to a certain population,the cost recovery goal and thus the price, may be lower because of who is served by the program. F. Are others in the community already doing it? This filter addresses the reality that park and recreation departments must be selective with limited resources. Many programs have considerable benefit to the community, but we do not offer them because the needs or market for that program is already being met by other providers within the community. If we decide to offer a program that is already offered within the community, cost and pricing should be consistent with the.market rate at least, so as not to compete with other providers within our community. G. Is the program partnered with other agencies .oi�::o�ganizations? Programs are more cost effective when pai'trtered with other agencies���td organizations. Examples include Aces Tennis, non-motorized'boating programs, programs:iiaith the local YMCA, etc. ----- RENTON AHEAt1 OF TFIE CU1lYE 12 COST RECOVERY AND PROGRAM PRICING GUIDELINES , COST RECOVERY TfE:aS . 1. Full Subsidy Programs 2. Nlostly Subsidized Programs 3. Partial Subsidy Programs 4. Self-Sustaining Programs $0 to nomina/cost recovery Cover all incremental costs of the Cover all incremental costs of the Cover all incrementa/and ongoing expectations activity plus 20%of onqoinq costs activity plus 30%of all onqoing costs costs of the progrom cosis Senior Center Drop-in Senior Fitness Room Youth Geii�ra�?Programs Aquatic Center Programs ' Neighborhood Center Drop-in Specialized Recreation Progr�iiis�:�;;. Non-Specialt�r:�ay Camps Boat Launch Beaches Senior General Programs �.. Teen General P'rogramming Facility Rentals City Use Facility Rentals P�rent/Child Programs Picnic Shelter Rentals Youth Council Youtft��ports Field Reritals Field Rentals Certifications and Safety Classes Cotririiuriify:Partner/NP Rentals Adult Programs Senior Day 7rips Specialty Day Camps Youth Cultural Arts Teen Day Trips Senior Extended Travel Concessionaire Agreements � Recreation Special Events Adult Fitness � Preschool RENT" ON AHBAD OF Tt1E CU1tVL• 13 COST R�VERY AND PROGRAM PRICING GUI[�IES SECTION 4: SORTING SERVICES INTO TIERS PROGRAM TIER DESCRIPTIONS (See chart on page 12) 1. Full Subsidy Programs • Serve targeted populations ➢ Seniors ➢ Teens ➢ Specialized populations ➢ Low income residents(scholarships) • Basic health and safety • Relatively low cost to operate programs : • Higher fees would be a barrier to access to p�f ograms that have high commlinity benefit. • Contributes to the livability of the community by�offering b�sic programs that have high community benefit and programs would likely not ezisf i�:the City of Renton did not offer them. 2. Mostly Subsidized Programs • Serve targeted populations � � . • High benefitto+comtriunity • Higher individu�l benefitthan full subsidy�pro�ra'ms • Additional resources required,for example-staffing,supplies, and equipment costs • Historically,fees have lieen char�ed for programs • Etisetres availability of recreation and,leisure activities to all by reducing barriers to participation 3. Partial,Subsidy Programs • Primarily serve youthl�teens,families and targeted populations • Focus on health,fitness;introductory skills and developing life-long recreation habits • Clear demand exists for"programs and the demand cannot currently be met by other recreation providers in the area .. • Market pricing or custorrier's ability to pay prevents full cost recovery • May have higher staff and supply cost than Tier 2 programs • Programs are not specialized; open to all who want to participate • Benefit individuals and the community by providing access to programs and activities that promote healthy lifestyles and make Renton a more attractive place to live and raise a family RENTON AHEAD OF THE COAVE 14 . COS'�COVERY AND PROGRAM PRICING G�LINES 4. Self-Sustaining Programs • Meet a clear demand for recreation activity or program and improves livability in the Renton community. • Primary benefit is to the user or participant • May be competitive in nature as opposed to instructional • Do not specifically serve targeted populations in their program goals • May have high cost to offer programs or activities(staff time_�nd supplies) � Specialized in nature • May be offered by private sector or other recreation pt�ytders_,near by • Market and customer ability to pay allows for full cost recovery • Participation in these activities, programs, and rentals limits availability of resources to the general public RENTON AHEAD OF THE CURVE 15 COST R�VERY AND PROGRAM PRICING GUI[�VES SECTION 5: DIRECT, INCREMENTAL, ONGOING AND OVERHEAD COST DESCRIPTIONS DIRECT PROGRAM COSTS Direct program costs are those costs that are related to providirig recreation classes, programs,or activities and would not be incurred if recreation programs, classes, or:activities were not offered. There are two types of direct program costs: Incremental Program Costs • Incremental costs are specific to a program or�ctivity and fluctuate up or down based on the number of offerings of that activity or program. These costs are variable and in�lude program supplies plus contracted or part-time wages for staff.that teach classes or supervise programs. �.:- ...-. Ongoing Program Costs • These costs are 'fixed' in that they sta�r ret�tively the same regardless of how many programs are offered. Ongoing program costs incJude futl=.time recreation staff that organize and supervise recre���oi'i=pragrams,the recreation brochure,and related supplies and services. ��:.� .�,., , ;�> �,,,,. .��,,, OVERHEAD COSTS "`;��4,, �;.�; �,�,,,�>;;: _. --. �-_..;.:..-., Overhead��s�:are those costs��i���occur regardless if recreation classes, programs,or activities are �„ ,.;::ary�v.., E�.. . offere�l,:;yT�iese ct�s��,���clude suppor��administr�tipn,information technology,ongoing maintenance costs and�apital impro'°uement costs. `� <���. °�.� �.�E; .,� •Y, t�+j.:.. ' ". �.:.. � . rF�> \ t � y, ,', RENTOI� AHF.AD OF 'i'HE CURVE • �t Recovery and Program Pricing Guidel� SECTION 6: CURRENT COST RECOVERY ANALYSIS (FY 2010) Figure 1 shows the current cost recovery levels for the entire Department, as well as a breakdown by budgetarea. It is important to note that while Henry Moses Aquatic Center,Carc�:'�heatre, and the Senior Activity Center all have their own separate budgets, Renton Community��n��"r"�and Recreation Services must be combined for proper analysis. , Many of the expenses incurred by Renton Community Center programsa�e.;charged to Recreation Services,while all of the revenue for both areas is credifed to the Renton Coinmunity Center Self- Sustaining Budget. It is also worth noting that the maintenance and other internal charges for Carco Th��#re are not taken out of the Carco budget,they are charged to Renton Comi'ii'unity,�enter's Self-Sustaining Expense Accounts. �`���, � ��.�.: �<�.,.; °;;;`.,„��,_. 'a=.. �,,� -:��,., ��--.. RECREATION DEPARTMENT 20�,0 FU���G ST RECOVERY#'ERCENTAGE � �,-�;��-�r� �;� ,�s x�;'a- .�.�'�`,-�..=...,: �_=-:_?-' ` ,�%_ ��;: ;':,:>�:. �1::`%�� PERCENTAGE AREA °_< 2010 REVEISlt��'� ����{#.EXPENSES RECOVERED -�,�:� -d�g ;-, I Renton Community Cente � � ,, �`- Recreati ervices �ry• $ 1,362,846. , $ 2,740,677.87 50% II 1 ��.=a �v�` 't'��:��: � ,;.�^ .,.�v,.-� ��<: ,.�, Henrji� ` ses Aqua���=�enter �;.;:.. $ 5�4;440.62 $ 730,205.05 72% �:iYK �.rR, `�2'::Z�.h k 'Z� �. Carco Theat �"F�.., �` �$ 53,457.25 $ 177,986.30 30% ��� �;� Senior Activity Cen'���,;�.,, $ 131,962.49 $ 768,046.98 17% ��;�, �;�� Al) of Recreation: '`�;�;,�;„�'Z� $ 2,072,706.44 $4,416,916.20 47% :�,; Figure 1 RE NTO1�T AHEAD OF THE CURVf, 17 �Recovery and Program Pricing Guidelin� . PROGRAM PRICING PRICING GUIDELINES Recommended Fees The purpose of the fee guideline is not to only determine specific pri�es, but to guide the development of prices by the recreation staff members. It does this by creatin�;�sx recovery targets for separate �;a,�,;. Cost Recovery Tiers,or groups of programs with the same Iev��,t�f,+�X�ected cost recovery. �;;'.''� W: ,�. .� The recommended guideline is based on extensive discussions with the R��reation Manager and .�=a�: Recreation Supervisors, Recreation Coordinators,an ���r,;review of the 201.t�;:cost recovery results. In ���� 2010,the Division recovered 47%of its direct and v�, "ead cost of all prograr�ts;'�vents, staff, and �.,A� .. rentals. The implementation of pricing for program��;based on the following pri��,��methods. �.;_ .; ��.:: Determining Program Pricing :°,,�.,�:,-,�. �-m�:. �;, �~�,�F,;X�,� . The steps to program pricing assist in d���r�nining direct costs�cpnsisting of ongoing and incremental -..�_,...,�. a�.:. costs with the associated overhead costs�Y"�u�e�i. The process icler�t�fies the full-time staff and part- �5;r. ���; .. ��..,:. time staff costs with benefits, marketing co � con��a�ts, supplies,eq�i,pment,awards,facility room �_� , costs,vehicle usage,field usage,field light us �� and i�'t er associated direct costs. Additional �:��::;. ��:�, �=�. information regardinyE,#I�Se#�-d{rect costs was dete mine��hrts�h research on facility cost, power usage, 5:..'�-?•:� y,�].::• i',v4�».,.,. J, a..:cv���5; ' and fleet costs. =-- �' - � �-� -��,�.f� `�..., �- . y�`}; �, �.�; :�. `ry.: ;,�r.; "3.`;':. Fixed Incremental and Ongb'��Tt�g��� Co5,��.Y�.s,'t�_fot�,{.r. Renton Recre�ition Programming '+uk3t'.C"•�"�.'�t?\�,.�„":�:. ��,�.�-. � Bas � all field prepa'�'a�i�;n pef`�taic��rrence=$�0.00 �'���:���; ��. . �;F.., • Sa ��#.,-and ot�ier�#�Id preparatioris per occ��r�ence=$35.00 . !� e-�- • Ball'��I�lighting c'��r�e per hour=�$�,00 � �.�. Vehicle� se,per mile cFi��rge=$0.55 `'�;;;;;, �l,,:.,<:, ��,� • Marketing�c`cists for progr�,�s are based �n the space used in the Recreation Brochure at$400 per �,, :. �r�... page• ��;:w:�. . `�`; ,i��'� Facility room cha���s per ho�i�; 1) Large Room =$1�i�/t}q�i�s,' �;�.. ����; 2) Medium Room=$7. p�htiur 3) Small Room =$3.00/�ur Rooms were calculated based on an$8.94 per square foot per year calculation. For example: large rooms are Renton Community Center gyms and Carco Theatre; medium rooms are the Renton Community Center Banquet Room and the Senior Activity Center Auditorium; and small rooms are the classrooms at all facilities. • Part-time employees regular benefit percentage= 17% RE �TTON ANEAD OF TEt� CU�VE 18 �st Recovery and Program Pricing Guide� • Part-time employee PERS-eligible (Public Employee Retirement System) benefit percentage=20% Applying Full-Time Employee Costs with Benefits • Recreation Coordinator FTE_$94,000 per year(2011) • Recreation Supervisor FTE_$110,000 per year(2011) • Each Recreation Section allocates and distributes their time to rams, rentals,activities,and events. Recreation Coordinators and Recreation Supervisor %and 25%respectively for administration, (staff meetings, budget meetings,etc.) • Each Recreation Supervisor uses a predetermined Facility erati ost, (set by the Facility Division),for Renton Community Center,the Senio�Activity Center, a ..-�C.arco Theatre. • City-wide events, (Fourth of 1uly, Renton River ,�,�. nd Clam Lights) are��?ported by Recreation staff.These events are not expected to calcula "'��st recovery measures foi�'`��ff time. The smaller �: special events such as the Hoop Shoot, Polar B ar�3q, carnivals,etc. are appli�C��o the cost t ry*� � �, recovery model. �= .�,d �3,y� - �'°f...�'t i.a��"'yY ''.`\1 �I�Y��`w .. Pricin Factors �y4�``� g �:: :_ :: • Contractor and art-time instructor, ,ricin shpuld be based o ct and indirect costs and the p P ... b . ... ability to reach program minimums to m�et the:cost recovery go • Incentive pricing need .to continue for residents thou�h preferred p ramming methods for early registration, seaso G�� nd rental uses:`The Resideri�pnd Non-Resident Policy should apply to all program and e ,,r%,s. . . .- • An Administration F �`��,�$3.0 "II be assessed fqr all programs to be applied to Support Staff costs. • Efficient expense line m e practices should be used to reduce the expense bottom line which 'sts in accomplis , 'e cost recovery exp�ctation for a program and event. • All ant monies ived will be credited as revenue against the overall cost recovery �� of rogram : vent. • Estab ' g partner s is strongly�encouraged to fill in identified gaps identified by the Parks, w_ Recreatifi �`Open Space� " d Natural Re'sources Plan. • Program life��� !G��le contin is described in stages of introduction/nurture,growth, maturity and decline. If you"��`�introduc� � a new program,you may want to price the program a little lower to generate interest. � he pr m is in the growth stage with waiting lists,the program price could be raise d due to dem��", _. ' .e program is in t he dec line s tage, prog ra m m e r s s h o u l d l o o k a t m o v i n g the program to less exp e facility,or eliminate the program altogether. • Minimum and maximum participation levels need to be set at appropriate cost recovery expectations. A minimum number to hold a program is very important to covering all costs. Maximum participation levels may be limited by facility space or instructor availability. • Scholarships are fully supported by donations. A limited number of scholarships are available for low to moderate income families who would like to participate in recreation programming, but are unable to pay the program fees. To be eligible for a scholarship,total family income must not RENTON ANEAD OF THF. CURYF. 19 C�Recovery and Program Pricing Guideline� , exceed 80%of the King County median income as specified by U.S. Housing and Urban Development. Please see the application for specific guidelines. Applications are available online or at the Renton Community Center. • Resident and Non-Resident Fee Policy—The City Council voted to establish a 20%Non-Resident Fee on all Recreation Division programming and services beginning Winter Quarter, 2003. This action was taken to partially compensate for the support provided for these services by the citizens of Renton through their property taxes. Implementation of the Non-Resident Fee will decrease but not eliminate the amount of subsidy provided by the Renton taxpayers: ➢ The Non-Resident Fee is not charged on fees less tha�i�,�.0.00. ➢ The Non-Resident Fee cannot be more than doubte�of tFie xesident fee on Coulon Beach Park picnic shelters or Coulon Beach Park boat launch fees;'�clue to the grant funding source that acquired the property. Instructor Payments Contractlnstructors—The majority of instructors/contractQrs sho�uEd be paid on a per student basis. This translates to a negotiated rate pe .student multiplied by ttie total number enrolled in the class. In �:::.;:.:. determining the per student rate,the nurrib"erof students should be based on the minimum number of students needed. All new instructors/cont'ractors:will be paid at or below a rate of 60% per student enrolled, unless there is a strong justification for a fiigher rate. (Note: An Administration Fee is assessed to assist in the cost rec , �.q��s�upport staff.) ':.- ��:�'��` ,:� �T�: �^�_; The advantages of payin�,at� instru�for or contracto'r on a per student rate encourages the instructor to �;.. fill the class. y��� ,�-., `��:, 3$ ;;,.. ��-:`;`��„ `+ Note: �:a�,. .�° .: °�. ❖ �r�,�. lic Emplo ef`�SFRetirement`SyStem (PERS)=eligible part-time employee benefit percentage is ba`� �d,,on emplo�j�'�contributionst�,PERS, Local, State,and Federal Income Taxes, along with �n.� Worke �s,,Compen��oEn Insurance and medical at 20%. '�' Re ular �r#-time em`�0 ee benefits ercenta e is based on em lo er contribution to Local g ��,,, P. ,Y p g P Y , State,and �deral Inco E Taxes,along with Worker's Compensation Insurance at 17%. �'i�m ;;y. R�.��: Hourly Instructors—The���r�.`�`W hourly instructors on staff that are paid by this method. The advantage of paying an h�iu�ly instructor is the ease of entering time in the payroll system. The disadvantage of hourly instructors is the lack of incentive to fill classes beyond a minimum. Ceiling Rate Instructors—These instructors are paid using a per student registration formula until the class enrollment reaches a predetermined level of enrollment. Once the enrollment ceiling is established, student registrations beyond that point are not applied to the payment of instructor. RENTON AHEAD OF FFiE CUIIVF, 2� �st Recovery and Program Pricing Guide� The advantage of paying a ceiling rate instructor decreases the expense paid out to the instructor when a class enrollment is above the pre-determined ceiling for rate of pay. The disadvantage is much like that for an hourly instructor which does not give the instructor incentive to fill classes above the ceiling enrollment for the class. , InstruciorRaises—Increases in instructor pay must always be accotTipanied by an increase in price of the program. This means the cost of the class to the participant,'iritjsf�increase for the instructor to receive an increase in pay. However, an increase in participatibn�e��'�does not necessarily guarantee an increase in pay to the instructor. General Recreation Program Report Recreation Program Budgets—need to follow the coSt.recovery guidelines to accurately reach the cost recovery goal. Pre-Program Proposal information, Post Program Re,port information;'and Program Summary Report information are required for all programswith,-supporting documentswith CLASS and EDEN software reports. � Pre-Program Proposals will be required to repci�t the course/activitjT;jnformation marketing materials, goals and objectives,facility,contract fees,cost recovery tier, and pro"posed budget. Programs should use previous enrollment fi �res or minimum,e�irollment figures in the pro�5osed budget calculations. � .� . .; ` `- .;. Post Program Report .����Mbe rec� d to list all the firi�l numbers:of enrollment, registration fee,facility use,vehicle use, cost re ery tier rketing materi�ls.used,direct costs with staffing, revenue generated and program tar ` t+�d o � mes identified with supported documentation. Progra �. r;Report will re .e course activity information,cost recovery tier, revenue, enroll ' ntt; increm expense,o ing expense,and final financial information. This report will be .�., ��::-; suppo rte� ��r t he Pos t ,�ram Repo rt on documen ta tion. �a: �`�°• �s,. ,�«. �.°��� ��:�;. Refund Policy �=:r. '�:�.- � �, ��:' • Full refunds will�e: ade for �ty program cancelled by the City of Renton. �;�. '�xf. • To be eligible for a re�u,,,r,�d,a��ten request must be received at least seven days prior to the start of the program. The refui� e��arriount will be the class fee less a $10.00 Administrative Fee. �::�:. • No refunds will be issued for any program fees of$10.00 or less. • If a request is made after the program has already begun, no refunds will be issued. • No refunds will be issued to athletic teams, league play or tournament play, if the request is made after the schedules have been completed. • No refunds will be issued for inclement weather, unless it results in the closure of the facility during the time of the rental. �---- RENTON AHEAD OF THE CURYF. 21 t�tecovery and Program Pricing Guidelin� . • Picnic Shelter/Henry Moses Aquatic Center Canopy and Group Reservation cancellations must be made at least 14 days in advance of the reservation date to be eligible for a refund. The amount refunded will be 50%of the reservation fee. • If the original payment method was cash or check,a check will be issued through the Finance Department, or a credit will be applied on the account. Credit card payments will be refunded to the account within seven to 14 days. (The refund policy is reviewed yearly) r, �� . RENTON ANEAD OF THE CURYE 22 ` COS�OVERY AND PROGRAM PRICING G�LINES APPENDIX A RECREATION PROGRAMMING TARGET OUTCOMES In the box below,write the program or event being evaluated. Check off each planning outcome that is supported by this program or event. Questions for consideration are included below each outcome along with a space for your thoughts or comment on the particular out�Qj��;� PROGRAM�EVENT: ' � Outcome: Encourage people to try new things, develap new skills,and/or maintain existing skills. • Is the class structured to teach beginners/novj�es or a mix of skill levels? • Is this a unique program that users cannot find'elsewhere?. • Is the program associated with a current or new trend in;reGreation? Outcome: Adding healthy activities to,participant lifestyles.'' ":�:'`�" • Does the class involve healthy foo�:(garden, prep, shop)of:health education? • Does the class or event engage participants in fitness or ez�tcise? Outcome: Fostering a connection to the na#ur�l environment. • Does the program.�upport environme�,��_I educa�ipn or nature inte�pretation? • Do participants ir,1f�'i`�"�t with natural are�'s.or ob5etve�ntildlife? Outcome: Creating positive activ'ities and fun environCnent for youth. • Does the class proCj�tote positive self-esteem�a_nd team building for youth? �::: • Does the class engage y,qu�li':in,fitness or social activities? Outcome• . 'litating gatherings:atit�btiiiging the community together. • f, ���`�sT�nt have a comri�tunity-wide, city-wide or regional audience? =.=� �;-��x.. • � es this prog , /event appeal.to diversegroups? • D he progra ,�vent provide opportunities for multiple generations or °'�.. fa m i i+��?: :;:�. Outcome: Promd`tir��individ ` nd community development. • Does the progr�m provr w��or support life skills? s�`� • Does the prog`r`am/eve � .�'ovide opportunities for interaction with other community mem�i�t"s�!,��=° • Does the program/event provide opportunities to connect with City officials? Outcome: Offering a range of options for different income levels and different abilities. • Does the event/program serve seniors,special needs,or other targeted vulnerable populations? • Is this program affordable for the people it is designed to serve? • Is this program offered where/when the users who need it can attend? RENTON AHEAD OF YHB CURYE l�Recovery and Program Pricing Guidelin� PROGRAM�EVENT: � Outcome: Adapting to new demographics and preferences. • Does the event/program support diverse demographic and cultural groups in Renton? • Does this program support underserved demographic or cultural groups? • Is the program associated with a current or new trend in recreation? Outcome: Offering programs that are responsive to community derrtands or interest. • Do surveys or public input indicate the demand? • Does current program demand exceed availability? RETURN ON INVESTMENT � � In addition to supporting program outcomes, each program.and event should maximiie�the impact of community resources invested in it. Fpr:each category, circle tlie appropriate response. '� .. Number of people served (or who benefit�frori�:pro.gram/event) Some Many Most Amount/Cost of Community Investment(Net�f any_.tiser fees) Low Med High Facilities/Equipment Ne ,,��dato Support Progratn/Event,� : Existing New ,�'��� �Y, �Y�;:: ��,�:� . •a: `,,,,���y�.. �;�. E.',�lY ... � 4.�i4 �` �'�� ,�. ���`4'xy', �:�h'' _ �;. -c'` :� '�`. : ' . � "=v;�,: '":,�'. . ,,�`. +.;Y�t , �'�. �`t 4 ' �L. . \ ' '�. . Y .;�, F; �4n RENTON AHEAD OF THE CURVE 24 COS�COVERY AND PROGRAM PRICING G�LINES APPENDIX B PROGRAM PROPOSAL AND BUDGET . � . � . � Program Name ` Program ' , Supervisor Start Date End Date � #of Weeks Age Grade Start Time End Time Facility/Location ' Non Cost Min.#Participants Max# ,. Resident Fee Resident Recovery Participants s;ry:�; ;:��.; Fee Tier �:.:-:,., Internet Registration Internet � ' � Display �'� � . • � • . . ,:��: °,��::.> {� <F� ��� `�' ��� :a�µ _9 "'y;' � �• •. • � � 1 � 2 ;;� ,�, 3 � . • • 1 2 3 RENTON AHEAD OF THE CURV@ COST�VERY AND PROGRAM PRICING GUI�NES ' . • . _Outcome:Adding healthy activities _Outcome: Fostering a connection _Outcome:Creating positive to participant lifestyles. to the natural environment. activities and fun environments foryouth. • Does the class involve healthy food • Does the program support • Does the class promote positive (garden,prep,shop)or health environmental education or nature self-esteem and team building for F;:::.., education? interpretation? �;�;�s youth? • Does the class or event engage • Do participants interact �� • Does the class engage youth in participants in fitness or exercise? natural areas or observ�, �, �`e? fitness or social activities? �� _ .'f: _Outcome:Promoting individual and _Outcome: F 'tating gatherings,� :�Outcome:Adapting to new community development. and bringin _ ,,, mmunity �t1�tr�ographics and preferences. together. ���{� • Does the program provide or support • Does the ev � ave a community- • Doe� Q event/program support life skills? wide,city-wide o`r. ` ional�;� diverse��`�� raphic and cultural • Does the program/event provide audience? ��.: .. �:;�`+°�' groups in R �on? '�';-=�*,'r opportunities for interactions with ?;'y.,Does this program/event,fippeal to • Does the program support other community members? '.V'� groups? "���, :.,, underserved demographic or • Does the program/event provide •# oe .��µ rogram/event p�ovide cultural groups? opportunities to connect with City op �un t� r multiple �'`;.;�:{, • Is the program associated with a officials? gen��ions o���`' 'lies? �� =:� current or new trend in ��;:. frR��: , �::;, recreation? _Outcome:Encoura � eople= b,try _Outco ; � ir ng a�r` e of _Outcome:Offering programs �.. new things,develop ne 'lls,andJor options for "rent inco � rlevels that are responsive to community '�.�., maintain existing skills. .�- .4 ��:,,:_ and different lities. demands or interest. • Is this class structured to teae�t;;, :.: ;;y ,�• Does the even� rogram serve • Do surveys or public input ���:k,'" P beginner � v�c�or a mix of skill'.,��;�'-Y'`�`' '�rs,special ne��s,or other indicate the demand? levels?;?-� �'�``�"-�;_,: tar t��d:�ulnerable populations? • Does current program demand ,.:. �' �W.'.... �r:. 4'4'v`.. . 'a;Ti`.".'a • Is th�i�` ``nique prog A1�that users \ ;: :,• Is the p� r m affordable for the exceed availability? cannot r Isewhere? ��_ $ �p' ople it i�s�esigned to serve? • Is the pro rp associate ���th a •�s`'�ttis program offered �`_ �, ; current or new�ir nd in recre��fon? whei�Jwhen the users who need it �-., 5 can attend? ._. ,"; . . . . . ,�,� ,: RENTON AHFAD OF THE CURYE . • COS�COVERY AND PROGRAM PRICING G�LINES • � . . . -. . . . Facility Fee Small$3/hr Note:Facility costs are based on$8.94/sq ft Facility Fee Med.$7/hr Facility Fee Lrge.$14/hr Sports Field Prep$15/ea Sports Field Lights$4/hr Total $0.00 $0.00 .� � Part Time Staff ~.,. Note:#staff @$/hr x hrs/wk(x)#wks Contracted Staff/Services Total $0.00 $0.00 K . . •. Equipment Awards Miscellaneous Total $0.00 $0.00 �:�: .� Note:Mileage based on$.55/mile Total $0.00 $0.00 . . . ,�., Total $0.00 $0.00 . ` �-. Note: Marketing costs include brochure,flyers, Brochure�$�Q/page/Qtr ��;,, . M,_�., �_��, reader board,etc... Total $0.00 $0.00 . . • . -. .- . Note:%of FT employee program duties: �`��. Tier#1 apply 0% Tier#2 apply 20% Total $0.00 $0.00 Tier#3 apply 30% Tier#4 apply 100% . .- $0.00 $0.00 RENTON AHEAD OF THE CUAVE J . � COST R�VERY AND PROGRAM PRICING GUI�IES . . . . Program Fees Note:Resident fee(x)#participants Spnsorships Non-resident fee(x)#participants TicketSales Miscellaneous Total $0.00 $0.00 . . • - - - . •. � . = $0.00 $0.00 � • ' � • ' • • -. . . . Total Revenue $0.00 $0.00 Total expenses >,;K;'4. �0.00 $0.00 :: :�{.r,���..,,y;;, „:� . � .• . . . . � $0.00 $0.00 _ r+���;.. ��'�:' �34'r , ' � �`'`,�;"' 'y " t��^t 4; •~+6,t s��.. t d� b�r..5� ^�' . Y : �f.. : Y. fJ, 4�'F.Y�� .Y ���:✓.. '�. �,�: � RENTON AHEAD OF THF. CURVE