[1. Call to order]
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WOULD LIKE TO CALL TO ORDER THE JUNE 24, 2024 LAKE WASHINGTON STUDY SESSION. ALL BOARD MEMBERS ARE PRESENT WITH THE EXCEPTION OF PRESIDENT CHOI WHO IS EXCUSED. WE ALSO HAVE OUR
[1. Capital Facilities Plan]
STUDENT REP , SHIRA AVITAN. >> AS WE ENTER INTO A SEASON OF INFORMATIONAL CAMPAIGN RELATED TO LEVY WE KNOW THAT OUR COMMUNITY ALWAYS HAS REALLY GOOD QUESTIONS RELATED TO OUR CAPITAL FACILITY PLAN AND INDIRECT FEES. I KNOW THAT ASSOCIATE SUPERINTENDENT HAS AN ADVISORY COMMITTEE RELATED TO THIS EXACT TOPIC AND WE KNOW WE WILL RECEIVE QUESTIONS IN THE COMING MONTHS RELATED TO IMPACT FEES AND HOW THAT RELATES TO ONGOING CONSTRUCTION NEEDS IN THE DISTRICT . TONIGHT, WE ARE HERE TO PROVIDE AN UPDATE RELATED TO THE CURRENT CAPITAL FACILITY PLAN AND ALSO , WHAT ARE SOME OF THE BASELINE CALCULATIONS IN THOSE COMPONENTS RELATED TO IMPACT FEES FOR THE BOARD. ALSO, INFORMATION WE CAN LOOK BACK TO ASK QUESTIONS RELATED TO OUR FACILITY PLAN AND IMPACT FEES.
WITH THAT, BARBARA? >> THANK YOU VERY MUCH. AGAIN , WE WILL TALK TONIGHT AND PROVIDE THE HISTORY AROUND SCHOOL IMPACT FEES AND WE WILL TALK ABOUT THE CALCULATIONS AND WE HAVE A HANDOUT BECAUSE SOMETIMES, THERE ARE COMPANY COLLATED -- COMPLICATED FORMULAS. WHEN WE READ THIS ON A POWERPOINT, WE NEED TO SEE THE FORMULA IN FRONT OF YOU. WE WILL ALSO TALK ABOUT DEVELOPING OUR CAPITAL FACILITY PLAN AND WHAT THE NEXT STEPS ARE IN THE APPROVAL PROCESS. WE HAVE BEEN COLLECTING IMPACT FEES SINCE THE LATE 90S AND PART OF OUR ABILITY , IN ORDER TO COLLECT IMPACT FEES, WE ARE REQUIRED TO COMPLETE A SIX YEAR CAPITAL INVESTMENT PLAN AND THAT IS ESTABLISHING THE BASIS TO COLLECT THE FEES. THERE IS A PRESCRIBED FORMAT AND A PRESCRIBED FORMULA AND INPUTS THAT ARE REQUIRED TO GO IN THERE. THE CALCULATIONS ARE DETERMINED USING COMPONENTS OF THE PLAN. SO , IMPACT FEES ARE FEES ASSESSED BY LOCAL JURISDICTIONS , SO OUR CITIES AND COUNTIES AGAINST NEW RESIDENTIAL DEVELOPMENT PROJECTS. WHEN THIS IMPACT FEE FORMULA WAS DEVELOPED , THE WHOLE BASIS WAS THAT IT WAS NOT FOR DEVELOPERS WHO CANNOT LEGALLY PAY FOR 100% OF THE COSTS OF THE IMPACT OF NEW DEVELOPMENT. SO, THEY ARE INTENDED TO PAY A PORTION OF THE COSTS AND IT IS A SHARED COST WITH THE DISTRICT AND THE TAXPAYERS AND WITH THE STATE. SO, THEY ALSO TAKE INTO ACCOUNT -- IT IS AGAIN, A SHARED DISTRIBUTION . IMPACT FEES CAN ONLY BE USED TO FUND FACILITIES DIRECTLY ASSOCIATED WITH THE NEW DEVELOPMENT. WE ARE NOT ABLE TO USE --IT HAS TO BE USED FOR CAPACITY AND RELATED GROSS. IT CANNOT BE USED TO CORRECT DEFICIENCIES OF GROWTH THAT HAPPENED IN THE PAST. OUR JURISDICTION , OUR CITY HAS KIRTLAND, REDLANDS, KING COUNTY AND SNOW GNOMISH. IT IS BASED ON THE IMPACT OF EACH NEW HOUSING UNIT TYPE. WHEN WE COLLECT THE FEES THEY HAVE TO BE SENT --SPENT WITHIN 10 YEARS OF COLLECTION. THE KEY DRIVERS, AND I AM GOING TO PASS OUT --YOU CAN PULL THIS UP ON THE ACTUAL CAPITAL FACILITY PLAN . I WILL HAND OUT THE SPECIFIC APPENDIX B AND C, WHICH ARE THE ACTUAL FORMULAS. AS I TALK TO THE KEY DRIVERS YOU WILL FIND THOSE KEY DRIVERS ON THESE PAGES. WHAT WE FIRST DO IS TO CALCULATE A STUDENT GENERATION
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RATE. THAT IS THE NUMBER OF STUDENTS IN THE LAST FIVE YEAR HISTORY THAT HAVE COME FROM NEW DEVELOPMENTS. WE BREAK THE SINGLE DEVELOPMENTS INTO SINGLE AND MULTI HOUSING FAMILIES AND CALCULATE STUDENT GENERATION RATE. YOU CAN SEE THAT ON APPENDIX B, CALL THE STUDENT FACTOR. THE ESTIMATED CONSTRUCTION COST OF SCHOOL FACILITIES THAT WE NEEDED TO SUPPORT NEW STUDENTS IS ALSO INCLUDED. SO, WE WILL TALK ABOUT THE COST OF HIGH SCHOOL RIGHT NOW. THE FUTURE NOT IMPACT FEE REVENUES ASSOCIATED WITH THE PROJECT IS DONE LATER.THE FORMULA REDUCES THE FEE BY 50%. THERE WAS A COALITION THAT CAME TOGETHER WITH THE IMPACT FEES WERE DEVELOPED AND THAT IS WHEN THEY CAME TO AGREEMENT ON USING THIS FORMULA . BUT, THEY WOULD CUT IT IN HALF TO BETTER ACCOUNT FOR THE VARIABLES. THE VARIABILITY BETWEEN SCHOOL DISTRICTS AND THE IMPACT THEY
HAVE. >> HOW ARE FEES CALCULATED? IF YOU FLIP TO APPENDIX B, THE FIRST HANDOUT IS SINGLE-FAMILY.
THERE ARE FOUR COMPONENTS ON THAT PAGE. IT IS SCHOOL SITE ACQUISITION, BASICALLY LAND AND THERE IS A FORMULA FOR THE COST OF LAND AND THE STUDENT GENERATION FACTORS AND IT GIVES YOU A COST PER SINGLE-FAMILY UNIT. SCHOOL CONSTRUCTION COSTS IS THE ACTUAL COST OF THE BUILDING AND THAT IS THE LARGE SECTION. AGAIN, BECAUSE WE ARE ONLY GROWING RIGHT NOW AT HIGH SCHOOL, WE CAN ONLY USE COSTS FOR HIGH SCHOOL PROJECTS. THERE IS NO COST FOR HIGH SCHOOL--ELEMENTARY AND MIDDLE SCHOOL. WE DO ADD PORTABLES ON OCCASION FROM YOUR TWO-YEAR AND WE INCLUDE AN ESTIMATED COST OF ADDING PORTABLES. THE FEE ALSO PROVIDES FUNDING FOR PROGRAMS. WE HAVE TO PLUG IN WHAT THE STATE PROVIDES AND THAT CALCULATE THE STATE CREDIT OR ESTATE PORTION OF THE FUNDING. IF YOU FLIP TO THE NEXT PAGE , IT IS TAKING INPUTS FOR SINGLE-FAMILY ASSESSED VALUATIONS , CAPITAL LEVY RATE AND THAT IS REALLY, THE BOND RATE . THE TITLE FOR THE FORMULA IS THE RATE THAT IS REALLY THE BOND RATE. IT CONSIDERS YOUR ANNUAL TAX PAYMENT AND YOU CALCULATE A PRESENT VALUE REVENUE STREAM .
THE NEXT SECTION IS THE IMPACT FEE SUMMARY. IT TAKES THE THINGS ON THE FIRST PAGE, THE SITE ACQUISITION COST , THE PERMANENT FACILITY COST AND THE TEMPORARY FACILITY COST AND IT DEDUCTS THE STATE ASSISTANCE CREDIT , THE MONEY YOU RECEIVE FROM THE STATE AND THE TAX PAYMENT CREDIT. ALL OF THAT IS TOTALED UP AND YOU SEE THE 11,900 AND IT IS REDUCED BY 50%. THAT CALCULATES YOUR FINAL IMPACT FEE. THAT IS REPEATED ON THE MULTI FAMILY . THE NEXT TWO PAGES OF APPENDIX C ARE THE MULTI FAMILY. THE ONLY DIFFERENCE IS THAT AT THE TOP YOU WILL SEE THE STUDENT FACTOR COLUMN IS DIFFERENT, MUCH LOWER FOR MULTIFAMILY. IF YOU FLIP TO THE LAST PAGE YOU WILL ALSO SEE THE ASSESSED VALUATION AND OF COURSE, IT IS LOWER FOR MULTIFAMILY UNITS. SO, ALL OF THOSE FACTORS GO INTO THE CALCULATION . AGAIN, THE FEE CALCULATION IS DONE AT EACH LEVEL WHERE CAPACITY IS PLANNED AND INCLUDES THOSE COLUMNS.
LAST YEAR WE HAD TO REMOVE THE COST COMPONENT FOR ELEMENTARY AND MIDDLE BECAUSE WE DIDN'T SHOW GROWTH IN THOSE AREAS. SO , AGAIN I WALKED TO THE COST IMPACT PER HOUSING UNIT BEING REDUCED BY FUNDING SOURCES, SUCH AS STATE CONSTRUCTION AND FUTURE PROPERTY TAXES AND FURTHER REDUCED 50%. OUR HISTORY OF HOW MUCH WE COLLECT IS VARIABLE BASED ON THE NUMBER
[00:10:07]
OF UNITS BUILT IN EACH JURISDICTION . YOU CAN SEE THAT 18-19 AND 19-20 WAS LEVEL AT AROUND 4 1/2 MILLION IN EACH OF THOSE YEARS. AND AFTER THE PANDEMIC SCHOOL CONSTRUCTION PICKED UP IN THE 21-2022 SCHOOL YEAR COLLECTED 8.4. 22-23 WAS 10.2 AND WE ARE ON TRACK TO COLLECT A LITTLE LESS THAN THAT IN 23-24. AGAIN, OVER FIVE YEARS WE COLLECTED $30 MILLION.WHEN WE PLAN OUR CONSTRUCTION PROJECT , SINCE THIS IS UNPREDICTABLE WE DON'T AUTOMATICALLY ASSUME WE WILL RECEIVE THOSE FUNDS, BUT WOULD THEY PASS THEY DO ALLOW US TO GIVE A CUSHION FOR UNEXPECTED NEEDS , SUCH AS ADDING PORTABLES OR ADDITIONAL COSTS IN OUR CONSTRUCTION. THESE FUNDS ARE WHAT WE ARE USING FOR THE EDITION AT REDMOND ELEMENTARY AND OTHERS. THAT IS OUR HISTORY. I WANT TO WALK THROUGH WHAT HAS CHANGED FROM LAST YEAR'S PLAN. AS I MENTIONED , WE HAVE UPDATED THE CONSTRUCTION PROJECTS TO REFLECT OUR PLAN. WE ALWAYS HAVE THE 2022 CONSTRUCTION PROJECTS IN THERE, BUT WE UPDATED IT WITH OUR 2024 CONSTRUCTION LEVY PROJECTS. IT IS PART OF WHAT YOU ARE ALSO ALLOWED TO PUT IN THERE, IS ALL YOUR PROJECTS THAT YOU MIGHT EVEN HAVE FINANCING FOR. WE UPDATED OUR PROJECTIONS BASED ON THE FLOW ANALYTICS FEBRUARY UPDATE WHICH SHOWS THE DECLINE THROUGH 2029. WE TALKED ABOUT THE HIGH SCHOOL CONSTRUCTION PROJECTS ANTICIPATED WITHIN A SIX-YEAR WINDOW. WE TALKED ABOUT WHY THE TWO YEARS AGO WE REMOVED ELEMENTARY AND MIDDLE DUE TO THE DECLINING ENROLLMENT. EVEN IF YOU HAVEN'T CAUGHT UP , THE MINUTE YOU STOP GROWING OR HAVE DECLINING ENROLLMENT THE FORMULA CHANGES AND YOU CAN NO LONGER COLLECT IMPACT FEES. IT DOESN'T MATTER IF YOU RUN BEHIND. YOU WILL SEE IN FUTURE SLIDES THAT SOME DISTRICTS HAVE TO STOP COLLECTING FEES ALTOGETHER. WE UPDATE THE STUDENT GENERATION RATE ITCH --EACH YEAR FOR SINGLE-FAMILY.
THEY INCREASE FROM THE PRIOR YEAR AND THEY DECREASE FOR MULTIFAMILY. EVEN WITH ALL OF OUR MULTIFAMILY UNITS WE ARE STILL SEEING A LOWER DECREASE IN OUR STUDENTS BEING GENERATED FOR THOSE. THIS TABLE LAYS OUT THE KEY DRIVERS AND WHAT THE IMPACT THOSE DRIVERS HAVE. WHEN STUDENT GENERATION RATES , THAT IS THE PRIMARY DRIVER OF THE IMPACT FEE , WHEN THEY INCREASE THAT INCREASES THE FEE. WHEN STUDENT GENERATION RATES, LIKE MULTI-GENERATION FAMILY UNITS DECREASE IF ALL THINGS ARE HELD CONSTANT. THE SINGLE-FAMILY ASSESSED VALUATION THAT DECREASED OVER LAST YEAR ACTUALLY, INCREASED THIS YEAR.
SO, MULTIFAMILY ASSESSED VALUATION INCREASED AND THAT ACTUALLY, REDUCED THE FEE BECAUSE OF THE TAX CREDIT. THAT INCREASES THE FEE. THE LAST LINE IS THE STATE ASSISTANCE COST THAT THE STATE PROVIDES FOR ADDITIONAL FUNDING . THAT DOESN'T MEAN WE WILL GET IT , BUT IT HAS TO BE ACCOUNTED FOR IN THE FORMULA. AS THAT INCREASES, THAT DECREASES THE FEE. SO, ARE FEES , THE FORMULA DRIVEN CALCULATION FOR 2024 FOR SINGLE-FAMILY UNITS IS INCREASING $823 TO $5572. THE MULTIFAMILY FEE IS DECREASING TO ZERO. THAT FORMULA ACTUALLY HAD A NEGATIVE AND IT IS GOING FROM 352 LAST YEAR TO ZERO AND
[00:15:02]
WE WON'T BE COLLECTING FEES NEXT YEAR ON OUR MULTIFAMILY. I JUST WANT TO SHOW LASTLY THE ACTUAL ADOPTED FEES IN OTHER KING COUNTY DISTRICTS. YOU CAN SEE FROM THIS TABLE THE VARYING FEES AND YOU CAN SEE THAT FEDERAL WAY AND KENT HAD TO STOP COLLECTING FEES IN 22 AND 23 DUE TO DECLINING ENROLLMENT AND HIGH LINE HASN'T COLLECTED SINCE THE PANDEMIC. THESE ARE THE LUMINARY FOR THIS YEAR. YOU CAN SEE THAT ADDITIONAL CHANGES FOR FEDERAL WAY WHERE THEY HAD A MULTIFAMILY FEE BEFORE AND THEY HAD TO BRING THEIR MULTIFAMILY FEE TO ZERO AND ISSAQUAH ALSO HAD A MULTIFAMILY FEE GO TO ZERO. THERE WERE A LOT OF CHANGES IN THE MULTIFAMILY FEES. NEXT STEPS, ONCE THE CAPITAL FACILITY PLAN IS DEVELOPED , WHICH ARE TEAM DOES IN APRIL AND MAY WE ARE REQUIRED TO SEND A DRAFT TO KING COUNTY IN MID-MAY AND THEN , WE ARE REQUIRED TO PUBLISH A NOTICE IN THE PAPER. WE HAVE TO SURVEY THE DISTRICT TO SEE IF SPACE IS AVAILABLE TO INCREASE OUR CAPACITY. OUR NEIGHBORS COULD HELP US. WE ARE REQUIRED TO ASK. SO, WE SURVEY OUR NEIGHBORS EVERY YEAR TO SEE IF THEY HAVE SPACE WE CAN USE. WE ALSO ARE REQUIRED TO PUBLISH THE PAPER IN AC BUT NOTICE AND PROVIDE A DRAFT COPY AND RESEND THAT DRAFT NOTICE TO THE COUNTY AND STATE. ON JUNE 7TH, WE HAVE TO SUBMIT OUR DRAFT, ALONG WITH ALL THE REQUIRED PAPERWORK AND ALSO PRESENT THE CAPITAL FACILITY PLAN TO THE KING COUNTY REVIEW COMMITTEE.TONIGHT, WE ARE HERE FOR BOARD ACTION AND TO BE PLACED ON THE CONSENT AGENDA. WE WILL ACT ON THE FACILITY PLAN AND THEN WE WILL PRESENT THE FINAL VERSION TO THE STATE . WHAT HAPPENS IS WHEN ALL THE SCHOOL DISTRICT BOARDS HAVE TAKEN ACTION ON THE CAPITAL FACILITY PLAN IN KING COUNTY, THEY DO THEIR APPROVAL PROCESS IN EARLY FALL AND THEY HAVE MET WITH ALL THE DISTRICTS IN JUNE. THEY THEN , PROVIDE A REPORT FROM THE STRC TO THE COUNCIL AND THEY ADOPT IT IN THE FALL. ALL THE FEES THAT ARE ADOPTED GO INTO EFFECT IN JANUARY. EACH OF OUR JURISDICTIONS DO THE APPROVAL OF IMPACT FEES . THE CITIES ALSO COLLECT IMPACT FEES FOR OTHER THINGS SUCH AS TRANSPORTATION AND PARKS IMPACT FEES. THEY USUALLY GO THROUGH A PROCESS IN THE FALL TO UPDATE THEIR FEE. OURS IS AN ANNUAL UPDATE AND THEY MAY NOT UPDATE ALL OF THEIR OTHER FEES. THEY PRESENT IT TO THEIR COUNCIL AND SOMETIMES, THE SCHOOL DISTRICT IS INVITED TO PRESENT OR BE THERE TO ANSWER QUESTIONS. WHEN THE COUNCIL ADOPTS THE FEES, THEY GET TO TAKE EFFECT IN JANUARY. THE DISTRICT IS NOT LEGALLY AUTHORIZED TO COLLECT THE FEE IN OUR BEHALF. WE DO HAVE AN FAQ ON THE WEBSITE. ONE OF THE THINGS, BECAUSE WE DO GET QUESTIONS EACH YEAR , WE HAVE A VERY ROBUST FAQ ON THE WEBSITE. WE WILL ADD THIS LINK AND UPDATE THE PRESENTATION. ARE THERE ANY QUESTIONS ? I HAVE ONE MORE SLIDE TO TALK ABOUT FUTURE PLANNING. I WILL JUST JUMP TO THAT . ONE OF THE THINGS IS THAT THE LEGISLATURE PASSED A BILL IN THE 2023 LEGISLATIVE SESSION. IT IS A LARGE BILL NOT JUST RELATED TO IMPACT FEES, BUT PART OF THE
[00:20:02]
BILL SAID THAT IMPACT FEE SCHEDULES SHALL NOW REFLECT THE PROPORTIONATE IMPACT OF NEW HOUSING UNITS, INCLUDING MULTIFAMILY AND CONDOMINIUM UNITS, BASED ON SQUARE FOOTAGE, NUMBER OF BEDROOMS, OR TRIPS GENERATED IN REHOUSING UNION --UNITS IN ORDER TO PRODUCE A PROPORTIONALLY LOWER IMPACT FEE FOR SMALLER HOUSING UNITS. BASICALLY, NOW KING COUNTY HAS TO REDO THE IMPACT FEE FORMULA . SO , THE SCHOOL DISTRICT COALITION OF LOCAL SCHOOL DISTRICTS HAS BEEN HAVING CONVERSATIONS AND PROVIDING FEEDBACK TO KING COUNTY. AGAIN , WE ARE THINKING ABOUT ALL OF THE MIDDLE HOUSING REQUIREMENTS THE STATE -- THE DUPLEXES AND OTHER MULTIFAMILY UNITS MAY BE SOMETHING DIFFERENT WE NEED TO LOOK AT AS WE COLLECT IMPACT FEES. TOWNHOME SET IN THE MIDDLE BETWEEN SINGLE-FAMILY AND MULTIFAMILY. THOSE ARE THE CONVERSATIONS GOING ON. IT WILL PROBABLY RESULT IN MORE FEE TYPES , UNFORTUNATELY. INSTEAD OF HAVING TWO FEES WE MIGHT HAVE MORE FEES BASED ON THE BEDROOM COUNTS OR SIZE. IT MEANS, POTENTIALLY MORE WORK FOR THE JURISDICTIONS OR FOR THE SCHOOL DISTRICT. MAYBE, WE DON'T LOOK AT THE CAPITAL FACILITY PLAN EVERY YEAR, BUT MORE LIKE THREE YEARS OR SOMETHING LIKE THAT.ULTIMATELY, KING COUNTY IS LEADING THE IMPLEMENTATION OF THIS BILL. THEY ARE PREPARING A DRAFT OF ANY CHANGES AND WE ARE ANTICIPATING GETTING THAT LATE THIS SUMMER. IT WILL THEN BE REVIEWED AND UPDATED , BUT ULTIMATELY OUR CITIES WOULD ADOPT THAT IN WINTER OF 2025 . EARLY 2025 AND THEN THE SCHOOL DISTRICTS WOULD IMPLEMENT ANY CHANGES .
>> REAL QUICK QUESTION. I UNDERSTAND THE SQUARE FOOTAGE AND BEDROOMS --HOW DOES THAT WORK?
>> I DIDN'T READ THE LEGISLATION, BUT MY GUESS IS IT IS ABOUT HOW MANY PEOPLE LIVE IN THE HOME AND HOW MANY CAR TRIPS THEY ARE GENERATING. THAT IS, I THINK WHAT THE INTENT IS.
>> BECAUSE IMPACT FEES ARE FOR SCHOOL DISTRICTS, BUT IT IS ALSO THE OTHER MUNICIPALITY ENTITIES.
>> IHEALTH A JOINT MEETING WITH OUR CITIES . I HAD THE CITY OF SAMMAMISH , KIRTLAND AND THE OTHER SCHOOL DISTRICTS AND WE HELD THAT MEETING AT THE END OF MAY. IT WAS A GOOD CONVERSATION. THEY WILL BE TUNING IN ONCE KING COUNTY HAS THAT DRAFT. I AM SURE THE CITY WILL BE PROVIDING FEEDBACK.
>> I THINK WHEN KING COUNTY RELEASES IT, I AM SURE THE DEVELOPMENT COMMUNITY WILL PROVIDE FEEDBACK, AS WELL. WHAT WE HAVE HEARD FROM OUR DEVELOPMENT COMMUNITY IS THEY ARE WAITING TO SEE MORE PREDICTABILITY ON THE FEES.
>> THE IMPACT FEES ARE COLLECTED JANUARY 1ST .
>> WHEN THE CITIES ADOPT OUR FEES THE BOARD TAKES ACTION TONIGHT AND THEN , IT STILL HAS ANOTHER STEP WITH KING COUNTY
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AND OUR JURISDICTION. THE JURISDICTIONS ADOPT THE FEES IN THE FALL AND THESE FEES PRESENTED TONIGHT WILL GO INTOEFFECT IN JANUARY. >> THEY ARE COLLECTED
>> DOES THIS , THEN WHEN YOU LOOK AT THE MULTIFAMILY BEING ZERO , IS BUILDING HELD OFF UNTIL THE IMPACT FEES ARE HERE ? IS THAT WHEN THEY START APPLYING FOR PERMITS? OR IS THAT AT THE TIME OF CONSTRUCTION?
>> I BELIEVE THEY PAY THEIR FEE WHEN THEY REQUEST THE PERMITS.
AGAIN , I AM NOT A DEVELOPER, BUT MY GUESS IS THEY HAVE A LOT OF OTHER FACTORS GOING ON ON THE TIMING AND THEY ARE PROBABLY NOT HOLDING OFF MOVING FORWARD ON THE DEVELOPMENT BECAUSE THEY ALSO HAVE TIMELINES, LIKE THE BEST TIME TO DO THEIR DUE DILIGENCE, JUST LIKE THE SCHOOL DISTRICTS. THEY NEED TO GET THEIR CONTRACTORS STICKING TO A CERTAIN SCHEDULE, JUST LIKE WE DO WHEN WE BUILD THINGS. I CAN'T SPEAK TO WHETHER THAT WILL HAPPEN OR CHANGE THEIR PLANS TO DELAY DEVELOPMENT. THANK YOU.
>> YOU SAID FEES ARE ASSOCIATED WITH NEW DEVELOPMENT. IS THAT ONLY NEW FACILITIES FROM A DISTRICT PERSPECTIVE ?
>> YES. IT IS ANYTHING THAT EXPANDS AND CAN BE USED FOR CAPACITY PROJECTS. SO, ANYTHING LIKE OUR CLASSROOM ADDITIONS , NEW REBUILDS , NEW SCHOOLS , SO YES IT CAN GO TOWARDS ALL OF
OUR ADDITIONS . >> YOU TALKED ABOUT THIS MAY RESULT IN MORE FEE TYPES . I LIKE HOW IT IS TAKING INTO ACCOUNT THE ADDITIONAL FEE TYPES. YOU ALSO MENTIONED MAYBE, UPDATING IT EVERY THREE YEARS OR SO. WILL THERE BE BENEFITS AND CHALLENGES WITH NOT DOING IT EVERY YEAR?
>> WE DON'T BREAK OUR STUDENT GENERATION INTO HOW MANY ARE COMING UP WITH FOUR BEDROOMS VERSUS THREE BEDROOMS. THE CHALLENGE WAS GETTING THAT ITERATION. ADDRESSES DON'T TELL YOU BEDROOM COUNTS. THAT IS WHAT THE PROCESS WOULD BE ASKED TO HOW THAT INFORMATION IS DETERMINED. I THINK THAT IS ONE OF THE CHALLENGES , IS HOW DO YOU DO A STUDENT GENERATION RATE . UNTIL I SEE THE DRAFT I CAN'T SPEAK TO ALL THE CHANGES COULD INTENTIONALLY BE MADE. ONE OF THE BENEFITS OF NOT UPDATING THE PLAN ON AN ANNUAL BASIS IS IT SAVES TIME AND WORKLOAD , BUT IT PROVIDES A MORE PREDICTABLE IDEA FOR DEVELOPERS . THE CHALLENGE IS THAT IF THE RATE NEEDS TO GO UP AND YOU HAVE TWO WAIT THREE YEARS, THAT COULD BE A CHALLENGE . IF THE RATE NEEDS TO GO DOWN AND YOU WAIT THREE YEARS, IT IS FROZEN.
>> AS THE BOARD >> SO, BARB, YOU COULD YOU
[00:30:10]
JUST TALK -- I THINK IT WOULD BE GOOD FOR EVERYONE TO HEAR A LITTLE BIT MORE ABOUT HOW THAT WORKS.JUST IN TERMS OF THE RESPONSIBILITIES, WHO IS RESPONSIBLE FOR THE IMPACT FEES -- MY UNDERSTANDING IS --
>> IT IS THE SCHOOLS RESPONSIBILITY TO DEFEND IMPACT FEES. EACH OF OUR JURISDICTIONS HAVE KIND OF THEIR OWN RULES IN A SENSE, YOU KNOW, WHAT THEY CAN PROVIDE EXCEPTIONS FOR. ONE CITY HAS IN THEIR CODE IT ALLOWS THEM TO CHANGE THE 50% DESIGNATION. SO THEY ACTUALLY HAVE A 25% DISCOUNT INSTEAD OF THE 50% DISCOUNT, SO THEY ARE CHARGING A LITTLE HIGHER THAN THE OTHER TWO JURISDICTIONS. THAT IS NOT NECESSARILY ALLOWED IN EVERY CITY'S CODE. SO, EACH CITY DOES HAVE KIND OF UNIQUE CODE REQUIREMENTS THAT THEY WOULD HAVE TO UPDATE. AND THAT'S WHY EVERY SCHOOL DISTRICT IS VERY CAUTIOUS OR CONSCIENTIOUS OF FOLLOWING THE FORMULA. BECAUSE THAT'S WHAT HELPS US BE ABLE TO DEFEND OUR FEE. EVEN AS MUCH AS, YOU KNOW, WE WERE DISAPPOINTED WE HAD TO REMOVE OUR ELEMENTARY AND MIDDLE SCHOOL CAPACITY OFF THE FORMULA . BUT IT DOESN'T MATTER. BECAUSE THAT IS THE RULES. SO, WE FOLLOW THE RULES.
AND THAT'S WHAT MAKES YOUR FEED DEFENSIBLE IS FOLLOWING CONSISTENTLY THE CRITERIA THAT IS SET FORTH. DOES THAT HELP?
ALL RIGHT. >> CAN I HAVE ONE MORE COMMENT? DOES ANYONE ELSE HAVE ANY QUESTIONS? I HAVE A COMMENT.
SO, I KNOW, HISTORICALLY, WE HAVE SUBMITTED -- I KNOW WE SUBMITTED THESE TO THE CITIES AND PROVIDED SOME WRITTEN INFORMATION. I'M SURE THERE'S BEEN MORE CONVERSATION THAT I'M NOT AWARE OF. THERE IS ALSO HISTORIC -- WELL, IN MORE RECENT YEARS, THERE HAS BEEN SOME CONFUSION, I THINK, AT THE COUNCIL LEVEL UNDERSTANDING HOW IMPACT FEES WORK , AND WHAT IS COMING TO THEM. THEY GET THEIR PACKET USUALLY AS A CONSENT AGENDA ITEM. SO I GUESS MIGHT -- AND ALSO HAVING LISTENED TO THE CONVERSATION YOU HAD AT THE STAFF LEVEL WITH CITY STAFF, EVEN MY PERCEPTION WAS AT THE STAFF LEVEL IN THE CITY THERE MIGHT BE CONFUSION AS TO HOW SCHOOL IMPACT FEES WORK EVEN IN THE PLANNING AND DEPARTMENT LEVELS. SO, I GUESS MY REQUEST WOULD BE IF THERE IS A WAY TO TRY TO INSERT OURSELVES A LITTLE MORE PROVIDING INFORMATION TO THE COUNCIL IN ADVANCE IN ADVANCE OF THE CITY'S ADOPTION SO WE CAN HELP EDUCATE THE ELECTIVES THAT WE WILL BE APPROVING.
>> OKAY. YEAH. AND CERTAINLY -- JUST LIKE OUR COMMUNITY HAS QUESTIONS AND THEY WOULD LIKE TO CHANGE, YOU KNOW, WHY CAN'T WE CHARGE DEVELOPERS 100% OF THE COST? WHY AREN'T THEY PAYING THIS? THIS IS THE FORMULA. THIS IS WHAT WE ADOPTED. THIS IS WHAT WE ARE FOLLOWING. SO THOSE ARE THE -- AND OUR CITIES HAVE THE SAME QUESTIONS WHEN THIS COMES BEFORE OUR CITY COUNCILS AND THERE IS A SIGNIFICANT CHANGE IN THE FEE. YOU KNOW? THEY HAVE QUESTIONS ABOUT WHY. SO, WE DO OUR BEST, AGAIN, TO GET AHEAD OF IT . I THINK WHAT ERIC IS SAYING IS TRY TO GET AHEAD OF IT A BIT MORE BY PROVIDING INFORMATION AHEAD OF TIME. SO --
>> DIRECTOR STUART? >> AS LONG AS THEY ARE STARTING TO LOOK AT THE TYPES OF HOUSING, IF YOU WILL, BETWEEN TOWNHOMES IS IT -- WOULD IT BE IN OUR INTEREST TO TRY -- WHEN THEY LOOK AT MULTIFAMILY HOMES, TO LOOK AT THE NUMBER OF BEDROOMS AND STRATIFY THOSE? I MEAN, YOU HAVE AN APARTMENT BUILDING OF PRIMARILY ONE-BEDROOM AND EFFICIENCY APARTMENTS, YOU KNOW YOU WILL HAVE IT VERY LOW. IF YOU HAVE UNITS IN THE COMPLEX THAT ARE TWO, THREE, FOUR BEDROOM, BUT IT SEEMS IT WOULD HAVE A MAJOR IMPACT ON OUR GENERATION, RIGHT? I JUST CAN'T SEE BUYING A FOUR BEDROOM HOME IF YOU HAVE
[00:35:06]
NO KIDS. MAYBE THEY WORK AT HOME. I DON'T KNOW.>> YEAH. AND WE ALSO HAVE TO INQUIRE, YOU KNOW, KING COUNTY, PART OF THIS FORMULA IS WE ARE RELYING ON THE ASSESSOR'S OFFICE TO PROVIDE US ASSESSED VALUATION FOR SINGLE FAMILY VERSUS MULTI FAMILY. SO, YOU KNOW, WE ARE INQUIRING. WHAT IS THE ASSESSOR'S OFFICE ABLE TO PROVIDE IN DIFFERENT BREAKDOWNS? DO THEY HAVE BEDROOM COUNT INFORMATION? SO, THOSE ARE JUST QUESTIONS THAT ARE BEING ASKED ABOUT WHAT IS DOABLE BECAUSE YOU CAN'T VERY WELL COME UP WITH A FORMULA BUT THEN THE DATA ISN'T ACTUALLY ABLE TO BE PROVIDED. SO --
>> DIRECTOR? >> SIMILAR TO WHAT ERIC WAS SAYING, IF WE ARE ALSO RESPONSIBLE FOR COMMUNICATING WITH THE COMMUNITY ABOUT THIS, WHAT WOULD -- RATHER THAN SAYING HERE IS THE FORMULA AND THIS IS WHY, WHAT WOULD BE YOUR ONE MINUTE ELEVATOR PITCH , 2 TO 3 REASONS? HERE, HERE, HERE?
>> YEAH, WE WILL PROVIDE THAT TO THE BOARD THIS THURSDAY IN BRIEFS. IT'S AN IMPORTANT ELEMENT PARTICULARLY SINCE THIS IS A PRETTY SIGNIFICANT CHANGE. AND MANY OF, YOU KNOW, WHEN WE TALK WITH COMMUNITY ABOUT IMPACT FEES, TYPICALLY, THEY ARE COMING TO US SAYING THEY SHOULD PAY 100% FOR THE COST OF CONSTRUCTION FOR SCHOOLS. FOR THAT -- YOU KNOW, THERE IS A LINE OF RATIONAL THINKING THERE. SO, WHEN THEY HEAR THAT WITH THOUSANDS OF MULTIFAMILY UNITS, TENS OF THOUSANDS OF MULTIFAMILY UNITS BEING BUILT, THAT WE CAN COLLECT ZERO DOLLARS IN THE COMING YEAR FOR THOSE JUST -- IT WON'T MAKE SENSE. SO, TO YOUR POINT, WE NEED TO HAVE CONSISTENT TALKING POINTS, A PLACE ON THE WEBSITE TO POINT PEOPLE BACK TO. AND HOPEFULLY, THIS PRESENTATION CAN PROVIDE SOME BENEFIT FOR
PEOPLE. >> OKAY. THAT'S MY LAST SLIDE.
ANY LAST QUESTIONS? NOTHING? ALL RIGHT. SINCE THERE ARE NO
[C. Closing Items]
AGENDA ITEMS, THE JUNE* This transcript was compiled from uncorrected Closed Captioning.