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03/18/2025 - Work Study - Packet0�84 Meeting Location: Contact us: ORCHARD Council Chambers Phone (3potorchad 216 Prospect Street cityhall@portorchardwa.gov Port Orchard, WA 98366 www.portorchardwa.gov City Council Work Study Session Tuesday, March 18, 2025 6:30 PM Pursuant to the Open Public Meetings Act, Chapter 42.30 RCW, the City Council is conducting its public meeting in a hybrid format with options for in -person attendance in the Council Chambers at City Hall or remote viewing and participation via Zoom (link below). The meeting is streamed live on the City's YouTube channel, click here. Remote Access Link: https://us02web.zoom.usA/81759006938 Zoom Meeting ID: 817 5900 6938 Zoom Call -In: 1 253 215 8782 Guiding Principles Are we raising the bar in all of our actions? Are we honoring the past, but not living in the past? Are we building positive connections with our community and outside partners? Is the decision -making process building a diverse, equitable, and inclusive community? 1. CALL TO ORDER A. Pledge of Allegiance 2. DISCUSSION ITEMS A. Asset Management Presentation (Ryan) B. Code Enforcement Activities (Bond/Civiletti) C. School Impact Fees (Bond) D. Support for Healthcare Expansion at Olympic College (Mayor Pro-tem Diener) E. Saints' Cruz and Public Safety (Mayor Pro-tem Diener) F. Record -keeping for Critical Meetings (Mayor Pro-tem Diener) G. Response to Public Testimony (Mayor Pro-tem Diener) 3. GOOD OF THE ORDER 4. ADJOURNMENT ADA Requirements March 18, 2025 Meeting Agenda In compliance with the American with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (360) 876-4407. Notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting. REMINDER: Please silence all electronic devices while City Council is in session. To subscribe to our general news & public notices click the link: http://portorchardwa.gov/subscribe For current City Council member and contact information, please visit https://portorchardwa.gov/departments/city- council/. For Committee Membership please visit https://portorchardwa.gov/city-council-advisory-committees/. March 18, 2025 Meeting Agenda K 111KINME VIL041 Cart egr aph ", ........... . . . . ............. . . . OD e n Go v' s........... .................. Asset. .......... . . . . ........ . ....:..... ........... Nbnagen-ent R sk K/bnagen-ent Asset Li f espan Acquiring Asset s PI anned lVbi nt enance Cl P PI anni ng To n---la i n t a i n al I ci t y assets at the ovUest possi bl e cost and n-axi ni zi ng practical I i f espan B Navy Yard City Streets - i Bla.c I,. 9 Port Orchard I°--, na-< r�o4 Parkwaod ci D M16 � ��hwaV Gorst St t® East Part A Orchard use ° se sar,loen�r,y rsa '® p° � - Southworth 4 s'e' Gerry Lake Rd = ru q m Aero Mobile � - � ^"e 8E SedgwlG6 Rd Cdu Ft 96 ° WCO Ick u SE King krl Woo7a Galf Coarse a Bethel Banner - eaal,er Frreal S l.xka llrlA SE filol�noiar Re w _ 'silage Park � r WSU Facilities Services GIS, County of Kitsap, WA State Parks GIS, Esri, TomTom, Garmin, SafeGraph, GeoTechnol... J Streets Re 9 IWI, Hai or Parkwood SE Mt. Hill Or : V 16 Gcrs! Groek e '`� Gorst East Port Orchard ems C► j � eds� h SE sedy.i.k Rd �• m 3 I � o V \! ^ tr SE %ina Rd Bethel VJ1�V ` SE aeFarR _ fc eaRRer Fareat rl ` sE Rd T Heritage Park Square Lake w Coulter Creek State Park o a n Heritage Park Gam f P C.Nir od _ County of Kitsap, WA State Parks GIS, Esri, TomTom, Garmin, SafeGraph, GeoTech a_ 7 Our Semr Utility Syst em ...... Add layer All + All Storm Pipes 2 PLACE HOLDER 0 All Sewer Lift Stations 5 22 All Sewer Air Vacs 2 4 All Sewer Cleanouts 1 354 All Sewer Laterals 1 823 • All Sewer Manholes 5 1200 • All Sewer Force Mains 2 746 All Sewer Mains 4 1345 PLACE HOLDER 0 All Water Wells 7 All Water Booster PO 2 Our StorniAlater Utility Syst ern Add layer + All FOGS 2 All Customers 1 . , PLACE HOLDER 0 ti.. All Storm Outfalls 2 111 All Storm Ponds Vault City 42 • All Storm Ditches City 1 587 All Storm Structures 3 2372 • All Storm Pipes 2 3186 • ••:� PLACE HOLDER 0 •�% / • All Sewer Lift Stations 5 _ . . All Sewer Air Vacs 2 . All Sewer Cleanouts 1 Pr Completed Tasks in Past Year By Month X All. 141 total records Task ID Work Order Activity Asset Notes Status - Entry Date F Z G° 7870 115 CCTV Sewer Main GSM1453 Completed 2/1912025 T._ 7736 113 CCTV Sewer Main GSM1145 Completed 2119120252:._ 7579 FOG Inspection FOG FOG57 Completed 2/4/2025 92_ 7648 Water Turn On Non -Asset Completed 2112120256:._ 7688 Water Turn On Non -Asset Completed 2/18120254:... 7939 Misc. Road Issue Nan -Asset Citizen reque... Completed 2J2112025 4:._ 7881 115 CCTV Sewer Main GSM1549 Completed 2/19120253:._ 7663 Corrective Maintenance Water Meter Water Meier Data Replace mete... Completed 2/14/2025 5:._ 7725 113 Jetting Sewer Main GSM1042 Completed 2119120252:._ 7697 Water Meter Issue Non -Asset Leak Credit C... Completed 211912025 1:._ 7592 Vegetation/Brush Removal Non -Asset I received a c_. Completed 2/6/2025 to:._ 71930 Miscellaneous (Check Notes) Nan -Asset SCF ID #1824.-- Completed 1124/202511... 7659 103 Sidewalk/Shoulder Issue Non -Asset Curb has shift... Completed 21181202510._ 7764 114 Jetting Sewer Main GSM1189 Completed 2119120253:._ 7695 111 Final Notice Non -Asset Track number... Completed 2119/20251:._ 7567 Pothole/Sinkhole Nan -Asset '2-3 ft'pothc l... Completed 213/20258:2._ _ 1 1 17 of 141 10 I] Miscellaneous Notes I Task Setup Edit y. Map Activity: Corrective Maintenance Location Asset: Sewer Pump MCVILG-PUMP2 Due Date: Labor SeeClickFiz Task: !] Task Setup Customer Request Task: Department: Sewer Task Details Priority: - High Notes: Mike DeLine, notice possible clog pump 2 MCVillage US. Dispatched sewer crew to assist. '] Estimated vs Actual Costs p Equipment I Task Details Edit ` W Material Status: Completed i] Other Estimated Start Date: 1/23/2025 Estimated Stop Date: 1/23/2025 Attached Files Actual Start Date: 1/27/2025 Actual Stop Date: 3/7/2025 11 - Navy rani city e m Streets ed 0 O e neu n.. MSOOo _ 0 Portorchard 0 a�3 h 000-00 �r� x 0 Parkwood - Stae �� m O O O ��9pwaY r0 O Gorst Siac O 0 Q Mountain O 0 East Port Orchard Course 0 M p y ¢ SW Berry Lake Rd O O sw�ci�o0 ,Crr iy V L-Ile , �6lron Rd() a O m SE Sedgy—k Rd C.nrl rl � 9 Q 16 pa O McCormick _ m SE NinJ RV ?a O woods Golf y curse % o O Bethel a' 3 se a,,ke, Re a Ban O O = c° E O 0 c Bauer Forest as Rd aieime,�. Heritage Park Coulter Crack -' - sf HeritagePark Car:,, calvirv, - County of Kitsap, WA State Parks GIS, Esri, TomTom, Garmin, SafeGraph, GeoTechnologie... 12 13 PCI Exr4lent Good Fair Pucw Mery Poor Faked lk's 40:¢ Drop iii Quality Spending $1 on preserva ti on here_. 75 � of Life 4¢ Dra p i n Qual i ty ._ .2li mi nates or d elays spen ding $6 to $10 o n rehabi I itatio n or recenstru rtia n here. 1 2 of Life .0 5 10 15 20 14 • • - , . . . - . , . • . , - , - - • . , , • . . • • - . • • , . . , . . • . • . . • . . . . , . . . . . . . City of Port Orchard Code Enforcement 15 Police Planning Kitsap County H EART Team ]i Kitsap Public Health City Attorney South Kitsap Fire Rescue Building M Department of Labor & Industries Public Works Department of Ecology 16 DCD's Approach to Effective Code Enforcement Compliance through information and education as a first option for non- life safety complaints. When a complaint is received: 1. Code Enforcement will reach out to the business or property owner, either in person or through courtesy letters, to provide information and request voluntary compliance. Many violations are resolved, and no further action is needed. 2. For those violations that are not resolved voluntarily, the next step is Notice of Violation. 3. If necessary, a Second and Final Notice of Violation with possible financial penalties 4. If the violations continue, Code Enforcement will enlist the advice and assistance of the City Attorney. 17 What is a complaint and how do we get them? Complaints are alleged violations of laws, ordinances, and codes Code Enforcement generally receives complaints from: 1. Members of the public 2. City departments including; Public Works Department, Department of Community Development (Building/Planning), Police Department 3. Outside agencies such as; Kitsap Public Health District, Ecology, South Kitsap Fire & Rescue, Kitsap County if:] Laws, Ordinances, and Codes Code Enforcement authority: 1. Building and Fire Codes, in cooperation with the Building Official/Fire Code Official; a. Construction without permits, Stop work orders, Fire suppression system maintenance and repair monitoring, 2. Zoning matters, in cooperation with the Planning Department: a. Unapproved use of land, businesses operating without required approval (i.e.; conditional use permits), shoreline violations, unlawful signs, etc. . 3. Land disturbing and storm water violations, in cooperation with Public Works Department: a. Additionally; violations on public property such as fences in the right of way, other issues as requested by the Public Works Director. 4. Public Nuisances on private property: a. Weeds and other vegetation violations, trash, inoperative vehicles, graffiti, etc. M:1 Laws, Ordinances, and Codes continued Violations that are not within Code Enforcement authority: a. Parking violations b. Police matters c. Private property matters not addressed in the Port Orchard Municipal •.z 20 Dangerous & Unfit Building Abatement Program POMC Chapter 20.212 1. Buildings, dwellings, or structures that are deemed dangerous to occupants, or hazardous to the public; 2. Code Enforcement will issue an order requiring repair, or removal of the dangerous building within a specified timeline. 3. In accordance with RCW 35.80.030 (1)(g), the owner or any interested party may file a notice of appeal. 4. Appeal before the hearing officer will be held and decisions are posted and served within the required timelines. 5. If appeals have been exhausted, and there has been no compliance, this may result in the city taking the necessary action to correct the violation including seeking a warrant of abatement in Kitsap County Superior Court and hiring a contractor to secure or demolish a structure. 6. The amount of the cost of the abatement shall constitute a lien against the property. 21 Dangerous & Unfit Buildings Cases • 2023 the City abated one dangerous building by hiring a contractor who demolished the structure and cleared the site. This was a years long case and the cost of that abatement was $54,000 and was paid for from the budgeted abatement fund. That amount was billed to the property and is currently a lien on that property. • 2024 there were multiple dangerous building cases abated by the property owners, most of these are years long cases. • 4 were repaired or are in the process of repairing with permits • 2 were demolished by the owner and a third one is in the process of demolition • 1 is currently under order to demolish • 2024 there were no dangerous building abatements by the City 22 '*Ik NO-- 430M IL Wall I ; V'r �. QO L • - -, Dangerous Building Public Nuisance Before Afte r 2 4PS Map Camara i Solid and hazardous waste Public Nuisance Many of these cases are on undeveloped land with trespassing and illegal dumping. • Code Enforcement works closely with representatives of Kitsap Public Health District • We provide owners with waste disposal vouchers to assist with cost deferral • Waste disposal vouchers are provided by Kitsap County Public Works -Clean Kitsap Program • Educate property owners on the need to monitor vacant land, providing trespassing agreement information. W \ �yyy � �1' {N fit+, v- x �; � �'• Zl..- � I"�"• �j-"•_#�� >�� '.$;,� �► � as-,. �I '{, k:'-�[F�>s � ��.., , Y " x •�`. � f ` ` 'r,;�. ,�--� / a •i4 � � +, _ t4� t w,��-�Rx.'a.r i�. 1 — ;,��W��1'l'7 , � J� 'cti r �v � �"�_ � � � -47— �Y i ie . , �� .�; - 6�.b ,gyp ..�{, ''l.'` ?,. -P- Nuisance vegetation After 31 Cases ■ Building Code ■ Public Works ■ Public Nuisance ■ Fire Code ■ Pla nning/Zoning/Share Line/Critical areas/Site Development ■ Signs ■ M ultiple violation types ■ Buisinesslicense 32 Thank you We are happy to answer questions 0�4 City of Port Orchard ORCHARD 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Discussion Items: School Impact Fees (Bond) Meeting Date: March 18, 2025 Prepared By: Nick Bond, AICP, Community Development Director Presenter: Nick Bond, AICP, Community Development Director Summary and Background: The South Kitsap School District (SKFR) has requested that the City of Port Orchard update the school impact fee schedule to comply with recently passed state laws. The City has adopted school impact fees and administers a school impact fee program in accordance with an Interlocal Agreement between the District and the City (attached). The current school impact fee schedule has been in place and has not changed since 2008. The currently adopted school impact fees are as follows: Single-family: $1,370.83 Multi -family: $861.65 In 2023, the State Legislature passed two bills addressing housing that require changes to the School Impact Fee rate structure and to the municipal code. One bill, SB 5258, includes a provision codified in RCW 82.02.060 (1) that requires that impact fees reflect the proportionate impact of new housing units based on square footage, number of bedrooms, or trips generated. SKSD hired FCS Group to prepare a technical memo (attached) outlining a recommended approach to scaling the existing school impact fee rates based on housing type (single-family or multi -family) to one of the approved methods. The FSC memo recommends the use of the square footage approach and has recommended a new Port Orchard rate of $0.56 per square foot with a minimum and maximum fee. Under the framework, the minimum school impact fee would be $546.62 and the maximum fee would be capped at $2,009.27. The other new law that was passed was part of HB 1337 concerning Accessory Dwelling Units. This bill stipulates that cities may not charge impact fees on the construction of new ADUs that is greater than 50% of the impact fees that are/would be imposed on the principal unit. The City has adopted code in POMC 20.182.075 to comply with this new requirement as part of the recent adoption of a new park impact fee rate schedule to comply with the law. This section also applies to park and transportation impact fees. Further amendments to comply with HB 1337 are not required at this time. As the proposed school impact fee rate schedule proposes to use the square footage approach rather than the per bedroom approach utilized for park fees, the proposed adopting ordinance adds a new definition for square footage to clarify the method of measuring square footage for implementation of 34 the school impact fee. The proposed ordinance also adds some language to POMC 20.182.070 requiring that the applicant supply the required calculation of square footage (and number of bedrooms/trips) with an application for development. The City Council should review the FCS Group memo, and direct staff on the Council's preferred course of action. Staff recommends that a public hearing on the proposed ordinance be scheduled for April 8, 2025 and that action on the proposed ordinance follow the pubic hearing on April 8, 2025 unless testimony received compels that City Council to remand the ordinance to committee or work study for further discussion. Note that the ordinance proposes that the fee schedule if adopted, would take effect on July 1, 2025 consistent with the recently adopted park impact fee ordinance. The City Council should also be aware that the District has hired FCS Group to take a more thorough review of the District's impact fee calculation and capital facilities plan to make future recommendations on a fee increase. The City Council should expect a request later in 2025 to increase school impact fees above the levels currently proposed as part of complying with these new laws. Relationship to Comprenhensive Plan: The School District's Capital Facility Plan is adopted in the the City's Comprehensive Plan by reference and relies on school impact fees for implementation. Recommendation: Review the school impact fee schedule adjustment as requested by South Kitsap School District. Alternatives: No alternatives have been provided by the South Kitsap School District for consideration. In the absence of taking action to amend the school impact fee rate schedule, the only alternative would be to repeal the school impact fee prior to or on July 1, 2025 as the existing schedule would violate state law beginning on July 1, 2025. Attachments: 01 School Impact Fee Ordinance Draft - rev 3-7-2025(11003542.2).docx 02 Scaling Memo v6.pdf 03 035-22 - South Kitsap School District - Contract.pdf 04 SKSD - School Impact Fees 03.11.25.pdf 35 ORDINANCE NO. XXX-25 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO IMPACT FEES, AMENDING SECTION 20.182.070 OF THE PORT ORCHARD MUNICIPAL CODE (POMC) TO REQUIRE APPLICANTS TO PROVIDE CERTAIN INFORMATION FOR IMPACT FEE CALCULATION PURPOSES; AMENDING POMC 20.184.010 TO ADD DEFINITION FOR SQUARE FOOTAGE; ADOPTING A NEW SCHOOL IMPACT FEE SCHEDULE AND REPEALING THE PRIOR SCHOOL IMPACT FEE SCHEDULE REAFFIRMED AS EXHIBIT "C" TO ORDINANCE NO. 007-21; PROVIDING FOR SEVERABILITY AND CORRECTION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the State of Washington Growth Management Act, Chapter 36.70A RCW and related sections ("GMA") requires the City to adopt a Comprehensive Plan that provides adequate public facilities to serve development; and WHEREAS, counties, cities, and towns that are required or choose to plan under RCW 36.70A.040 are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing of system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees; and WHEREAS, RCW 82.02.050 -.110 and WAC 365-196-850 authorize counties, cities, and towns planning under the GMA to impose impact fees for public streets and roads, publicly owned parks, open space, and recreation facilities, and school facilities, and fire protection facilities; and WHEREAS, the City of Port Orchard has adopted transportation, school, and park impact fees, as codified in subsection 20.182.060 of the Port Orchard Municipal Code (POMC) and Appendices A-C in Exhibit 1 of Ordinance 019-17, as amended by Ordinance 007-21 and 013-22; and WHEREAS, the Washington Legislature passed numerous bills related to housing affordability in 2023 including, but not limited to, SB 5258; and WHEREAS, SB 5258 includes a requirement codified in RCW 82.02.060 that impact fee schedules reflect the proportionate impact of new housing units, including multifamily and condominium units, based on the square footage, number of bedrooms, or trips generated, in or by the housing unit in order to produce a proportionally lower impact fee for smaller housing units; and WHEREAS, Port Orchard's current school impact fee schedule assesses school impact Page 1 of 5 11003542.2 - 366922 - 0021 KEP Ordinance No. OXX Page 2 of 7 fees based on housing types (single family or multi family), a method that will cease to be permissible under state law after June 30, 2025; and WHEREAS, the South Kitsap School District hired FCS Group to study of the existing school impact fee rate structure as adopted by Port Orchard on behalf of the district pursuant to interlocal agreement (C035-22) which was presented to the City Council on : and WHEREAS, this study provided a recommendation for scaling the existing fee structure to a new square footage based rate; and WHEREAS, on , the City Council reviewed the FCS Group Study outlining a new rate structure that is recommended to achieve compliance with RCW 82.02.060; and WHEREAS, Council requested that staff prepare an ordinance for consideration to include a new school impact fee rate as recommended in the FCS Group Study setting the school impact fee rate at $0.56 per sq ft with a minimum and maximum fee per unit of housing, and that a public hearing be scheduled for to take testimony on the proposed rate structure; and WHEREAS, the park impact fee rate structure was recently amended by ordinance XXX-25 to ensure compliance with the recent changes to state law; and WHEREAS, the City Council finds that the City's transportation impact fee rate schedule is compliant with RCW 82.02.060 because transportation impact fees are based on trips generated, one of the three approved methods under law; and WHEREAS, City staff has recommended additional amendments to POMC 20.182.070 to provide clarification related to the utilization of trip generation, square footage, and per bedroom methods of calculating impact fees; and WHEREAS, City staff has also recommended that a definition for square footage be added to POMC 20.184.010 in line with draft guidance from the Department of Commerce; and WHEREAS, a properly noticed public hearing on this Ordinance was conducted on : and WHEREAS, on , at its regular meeting and after conducting a public hearing, the City Council considered the updated school impact fee schedule and revised code language, and public testimony; and 11003542.2 - 366922 - 0021 37 Ordinance No. OXX Page 3 of 7 WHEREAS, in 2021, by Ordinance No. 007-21, the City Council reaffirmed the previous school impact fee rate schedule as shown on Exhibit C and desires to update that schedule consistent with the new legislation; and WHEREAS, in accordance with RCW 36.70A.106 and WAC 365-196-630, a notice of intent to adopt the proposed new development regulations was sent to the State of Washington Department of Commerce and to other state agencies to allow for an expedited 15-day review and comment period, which comment period ended prior to adoption of this ordinance; and WHEREAS, this Ordinance is exempt from the requirements of the State Environmental Policy Act (SEPA), Chapter 43.21C RCW, and the City's environmental regulations, Chapter 20.160 POMC; and WHEREAS, the City Council finds that the amendments herein are consistent with goals and policies of the City's Comprehensive Plan and related regulations, and serve the public health, safety, and general welfare of the citizens of Port Orchard; NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS to] I [91VI-1 SECTION 1. The City Council adopts the "Whereas" sections of this ordinance as findings in support of this ordinance. SECTION 2. Port Orchard Municipal Code Section 20.184.010 is amended in part to add a new definition as follows (amendment shown in legislative marks): POMC 20.184.010 Definitions. "Service area" means the geographic area defined by the city, school district, or interlocal agreement, in which a defined set of public facilities provides service to development in the area. Service areas shall be designated on the basis of sound engineering or planning principles or by law. (RCW 82.02.090(8).) "Square Footage" or "Sq Ft" means the total area of a residential unit as measured using the interior dimension of the exterior building walls. This measurement does not include areas beneath roof eaves, porches, or covered unenclosed outdoor rooms, and, for multi -unit buildings, does not include common areas, service areas, mechanical rooms, hallways, stairwells, elevator shafts, storage areas, and other interior spaces shared between the units. "Subdivision" means all subdivisions as defined in Chapter 20.12 POMC, and all short 11003542.2 - 366922 - 0021 38 Ordinance No. OXX Page 4 of 7 subdivisions as defined in that chapter. SECTION 3. Section 20.182.070 of the Port Orchard Municipal Code is amended to read as follows (amendment shown in legislative marks): 20.182.070 Calculation of impact fees. (1) Director Calculates the Fees. The director shall calculate the impact fees set forth in Appendices A, B, and C. Such calculation shall include determining the dates at which the impact fees are due and which rates apply. The city council shall have the final decision on the establishment of the impact fee schedule to be imposed under this chapter as set forth in Appendices A, B, and C. The school district shall propose to the city its requested impact fee schedule to be imposed under this chapter, including specific rates applicable to different project types; however, the council has the authority to establish Appendix C. (2) Factors Used in Impact Fee Calculations. The calculation of impact fees shall include the factors identified in RCW 82.02.040 through 82.02.070 and shall: (a) Determine the standard fee for similar types of development, which shall be reasonably related to each development's proportionate share of the cost of projects described in the project list for each type of impact fee. (b) Reduce the proportionate share by applying the benefit factors described in POMC 20.182.080. (3) Proportionate Share. In calculating proportionate share, the following factors shall be considered: (a) Identification of all park, school and transportation facilities that will be impacted by users from development; (b) Identification of the point at which the capacity of a park, school or transportation facility has been fully utilized; (c) Updating of the data as often as practicable, but at least annually; (d) Estimation of the cost of construction of the projects in the project list (see POMC 20.182.120) for roads at the time they are placed on the list; the cost of maintaining the city's level of park service as shown on Appendix B; and the costs relating to the construction of school facilities, and to then update the cost estimates at least annually, considering the: (i) Availability of other means of funding park, school and transportation facilities; (ii) Cost of existing park, school and transportation facility improvements; (iii) Methods by which park, school and transportation facility improvements were financed; and (iv) An adjustment to the cost of the park, school and transportation facilities for past or future payments or reasonably anticipated to be made by new 11003542.2 - 366922 - 0021 39 Ordinance No. OXX Page 5 of 7 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. (4) Information supplied by applicants. Applicants for development shall provide the necessary information to facilitate the application and calculation of impact fees including the square footage of buildings to be constructed, the number of bedrooms in proposed housing units. and/or the trip generation (Peak PM trips) for the proposed use (to be coordinated with concurrence review pursuant to POMC 20,180L This information must also accomaanv anv request for variation from the impact fee schedule pursuant to POMC 20.182.090 or any request for impact fee credits pursuant to POMC 20.182.080. SECTION 4. Repealer. The City Council herein repeals Exhibit C to Ordinance No. 007-21, the City's previously adopted School Impact Fee Schedule, and all previous iterations of the School Impact Fee Schedule adopted prior to the enactment of Ordinance No. 007-21. SECTION 5. Adoption of School Impact Fee Schedule. In accordance with POMC 20.182.060, the City Council hereby adopts a new School Impact Fee Schedule which is attached to this Ordinance as Exhibit "C" and incorporated herein by this reference as if set forth in full. This School impact fee schedule shall become effective on the effective date established in Section 11 below and shall replace and supersede any previously adopted School impact fee schedule. No other Impact Fee Schedules (transportation or parks) are modified by this Ordinance. SECTION 6. Section 5 of this Ordinance is deemed of special effect and shall not be codified. SECTION 7. Effective Date of New School Impact Fee Schedule. The School Impact Fee Schedule which is adopted pursuant to Section 5 of this Ordinance shall take effect and be in full force and effect on 12:01 AM on July 1, 2025. SECTION 8. Savings Clause. The School Impact Fee Schedule which is repealed and replaced by this ordinance shall remain in force and effect as set out prior to this ordinance until the effective date set out in Section 7 hereof. Such repealer shall not be construed as affecting any existing right acquired under the laws repealed, nor as affecting any proceeding instituted thereunder, nor any rule, regulation or order promulgated thereunder. SECTION 9. Severability. If any section, sentence, clause, or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of constitutionality of any other section, sentence, clause or phrase of this ordinance. SECTION 10. Corrections. Upon the approval of the city attorney, the city clerk and/or code publisher is authorized to make any necessary technical corrections to this Ordinance, 11003542.2 - 366922 - 0021 40 Ordinance No. OXX Page 6 of 7 including but not limited to the correction of scrivener's/clerical errors, references, Ordinance numbering, section/subsection numbers, and any reference thereto. SECTION 11. Effective Date. This ordinance shall be posted and published as required by law and shall be effective and in full force five (5) days following publication. A summary of this ordinance may be published in lieu of publishing the ordinance in its entirety. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this _ day of 12025. Robert Putaansuu, Mayor Brandy Wallace, CIVIC, City Clerk APPROVED AS TO FORM: Charlotte A. Archer, City Attorney f101:71111RIMMING EFFECTIVE DATE: 11003542.2 - 366922 - 0021 41 Exhibit C City of Port Orchard School Impact Fee Rates Scaled Impact Fee per Sq Ft Minimum Impact Fee Maximum Impact Fee Ordinance No. OXX Page 7 of 7 0.56 546.62 2,009.27 *Pursuant to POMC 20.182.075, an Accessory Dwelling Unit may be assessed a fee lower than the minimum school impact fee under certain circumstance. 11003542.2 - 366922 - 0021 42 F C S ♦ a Bowman company January 10, 2025 To: Monica Hunsaker, Assistant Superintendent From: Doug Gabbard Luke Nelson John Ghilarducci Re: School Impact Fee Scaling Memorandum FCS has prepared the following memorandum summarizing the methodology used to scale the district's current school impact fees. This memorandum is accompanied by the excel workbook reviewed with District staff on December 18, 2024, containing the detailed calculation and data sources. INTRODUCTION Background In 2024, the South Kitsap School District (District) contracted with FCS to scale its current school impact fees to comply with recent changes in state law. These fees are charged on behalf of the District by the City of Port Orchard and Kitsap County. As part of this study, FCS was to provide a memo outlining the scaling methodology and results. It is worth noting that a recalculation of the impact fee was not included as a part of this initial study. As such, FCS has not reviewed the methodology and calculation of the current impact fees. Legal Basis Impact fees are enabled by state statutes, authorized by local ordinance, and constrained by the United States Constitution. They allow cities to recover some of the cost of expanding public facilities necessitated by growth. These fees allow "growth to pay for growth" in a fair and equitable manner. In Washington, impact fees are enabled by RCW 82.02.050 through 82.02.110 and are permitted for: • Public streets and roads • Publicly owned parks, open space, and recreation facilities • School facilities • Fire protection facilities In 2023, two new laws affecting the imposition of impact fees were passed. First, Senate Bill 5258 added language to RCW 82.02.060 requiring that "the [impact fee] schedule shall reflect the proportionate impact of new housing units, including multifamily and condominium units, based on the square footage, number of bedrooms, or trips generated, in the housing unit in order to produce a proportionally lower impact fee for smaller housing units." Second, House Bill 1337 amended RCW 36.70A to add that an impact fee on an accessory dwelling unit may not be charged more than 50 percent of the corresponding impact fee charged for the principal unit. 1 1 School Impact Fee Scaling fcsgroup.com I bowman.com 43 Memorandum • F C S ♦ a Bowman company SCALING CALCULATION Current Fee Structure Currently, the District's impact fees are charged separately to single-family and multi -family dwelling units. To calculate a consistent fee per square foot for all residential types, FCS used housing data from the US Census Bureau and American Community Survey to find the percentage of single-family and multi- family dwellings within the two jurisdictions. These were multiplied by the corresponding dwelling unit fees being charged and then added together to give a blended residential fee. Port Orchard currently charges $1,370.83 for single-family dwellings and $861.65 for multi -family dwellings. Based on housing data, 73% of dwelling units within the City are single-family and 27% are multi -family. This leads to a blended impact fee of $1,232.41. Kitsap County currently charges $1,678.70 for single-family dwellings and $968.48 for multi -family dwellings. Based on housing data, 80% of dwelling units within the County are single-family and 20% are multi -family. This leads to a blended impact fee of $1,535.68. These calculations are summarized in Exhibit 1. Exhibit 1. Current Impact Fee and Equivalent Blended Fee SchoolCurrent Orchard Kitsap County Single-family dwelling unit $ 1,370.83 $ 1,678.70 Multi -family dwelling unit 861.65 968.48 Blended Impact Fee per DU 1,232.41 1,535.68 Housing Characteristics In order to scale the blended fees calculated above, the average occupancy and home size must be established for each jurisdiction (i.e., City and County). To find the average occupancy for each jurisdiction, we use the same data from the US Census Bureau and American Community Survey to find the number of people living within differing dwelling unit types and the total number of each type of dwelling unit. By dividing the total number of people by the number of dwelling units, we find that the average occupancy for Port Orchard and Kitsap County is 2.25 and 2.29 residents per dwelling unit respectively. To estimate the average home size in square feet within the City, FCS received permit data from the City of Port Orchard. By taking the sum of all listed square footage and dividing by the total number of units, we find that the average dwelling unit size within the City is approximately 2,182 square feet. For the average single-family home size within the county, we used the median home size of 2,087 for single- family homes as reported in the Kitsap Sun housing report. To account for the multi -family portion of the housing mix, FCS used the Port Orchard permit data to find the difference in size between single-family and multi -family homes. This indicated that multi -family homes are 36.4% the size of single-family homes. FCS then summed the average single family home size multiplied by the proportion of single family residences within the County and the average single family home size multiplied by the 36.4% size 2 1 School Impact Fee Scaling fcsgroup.com I bowman.com 44 • F C S ♦ a Bowman company Memorandum reduction and the percentage of multi -family dwelling units within the County. This sum leads to an average home size of about 1,820 square feet within the County. Exhibit 2 and Exhibit 3 summarize calculation of the average dwelling unit within Kitsap County and the housing characteristics of each jurisdiction. Exhibit 2. Kitsap County Average Dwelling Unit Size Exhibit 3. Housing Characteristics Occupants per Average DU 2.25 2.29 Sq Ft per Average DU 2,182.46 1,819.70 Sq Ft per Occupant 968.00 796.36 Scaled Fee Using the housing characteristics and blended impact fee above, an impact fee per square foot and estimated fee per single resident can be found by dividing the blended fee by the average home size and occupancy. This leads to an impact fee per square foot of $0.56 and $0.84 for the City of Port Orchard and Kitsap County, respectively, as shown in Exhibit 4. Exhibit 4. Scaled Impact Fee City of Port Orchard Kitsap Count,,L Impact Fee per Occupant $ 546.62 $ 672.07 Impact Fee per Sq Ft 0.56 0.84 Minimum and Maximum Fees FCS recommends setting a minimum and maximum charge as a means to maintain the proportionality of the fee to the impact of residential development. These should be set at the points where (1) dwelling unit sizes are equivalent to the average home size of one resident (minimum fee) and (2) the correlation between square footage and occupancy no longer holds (maximum fee). 3 1 School Impact Fee Scaling fcsgroup.com I bowman.com 45 • F C S ♦ a Bowman company Memorandum The average home size for one resident can be found using the housing statistics provided above. Dividing the average home size by the average occupancy leads to 968 square feet per resident for Port Orchard and 796 square feet for Kitsap County. FCS recommends setting the minimum fees at $546.62 and $672.07 as shown in Exhibit 3. The maximum fee should be implemented where a larger residence no longer suggests a higher occupancy. To find the point where the correlation between size and occupancy no longer holds, FCS has run a regression analysis on 2023 American Housing Survey data for the Seattle metro area. The fitted curve reaches its maximum at 3,558 square feet, suggesting any additional square feet are not related to providing living space for additional occupants. FCS recommends multiplying this maximum square feet by the fee per square foot calculated above, $0.56 and $0.84, This leads to maximum fees of $2,009.27 and $3,002.84 to be charged by the City and County. The minimum and maximum impact fees are summarized in Exhibit 5 and shown graphically in Exhibit 6. $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Exhibit S. Fee Schedule School Scaled Impact Fee per Scl Ft $ 0.56 $ 0.84 Minimum Impact Fee 546.62 672.07 Maximum Impact Fee 2,009.27 3,002.84 Exhibit 6. Fee Graph 1,000 2,000 3,000 4,000 5,000 6,000 7,000 -Part Orchard -Kitsap County 4 1 School Impact Fee Scaling ksgroup.com I bowman.com 46 Memorandum • F C S ♦ a Bowman company IMPLEMENTATION ISSUES Accessory Dwelling Units In addition to principal residences, the collecting jurisdictions may choose to charge impact fees on accessory dwelling units (ADUs). Amended by HB 1337, RCW 36.70A.681 (2) limits the impact fees on ADUs to "SO percent of the impact fees that would be imposed on the principal unit." Therefore, FCS recommends that when charging a fee on an ADU, jurisdictions will need to calculate the scaled fee on both the ADU and principal residence. If the methodology above finds a fee for the ADU above half of the fee for the principal residence, the fee must be lowered to comply with the new law. In other words, the impact fee for an ADU should be the lesser of the size -based fee or one half the impact fee (at current rates) for the principal residence. Habitable vs Non -Habitable Square Footage Statute does not specify the type of square footage that should be charged an impact fee. However, at the time of development, the staff member who calculates the impact fee for the developer is typically also collecting a lot of information about the development —including square footage —for other purposes. FCS encourages cities and counties to use the version of building square footage that they are already collecting for impact fee purposes as well. 5 1 School Impact Fee Scaling fcsgroup.com I bowman.com iIFl DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011 E7 INTERLOCAL AGREEMENT BETWEEN CITY OF PORT ORCHARD AND SOUTH KITSAP SCHOOL DISTRICT THIS AGREEMENT is entered into this 17th day of December, 2021, by and between the City of Port Orchard (the "City" hereinafter) and the South Kitsap School District No. 402 (the "District" hereinafter). WHEREAS, the Washington State Legislature passed the Growth Management Act, chapter 36.70A RCW, including RCW 82.02.050 through 82.02.100 (the "Authorizing Statutes" hereinafter), which authorizes the imposition of impact fees on development activity as part of the financing for public facilities, which financing must provide for a balance between impact fees and other sources of public funds; and WHEREAS, the Authorizing Statutes require that impact fees may only be collected for public facilities which are addressed by a capital facilities element of a comprehensive land use plan; and WHEREAS, these Authorizing Statutes allow collection and expenditure of impact fees only for public facilities which are addressed by a capital facilities element of a comprehensive land use plan adopted under the Growth Management Act; and WHEREAS, in 2010 the District requested that the City, on behalf of the District, implement a fee program based on the Authorizing Statutes; and WHEREAS, the District has prepared and adopted a capital facilities plan, and authorization to collect and expend fees is contingent upon the City's adoption of the District's Capital Facilities Plan (CFP) as part of the City's Comprehensive Plan (RCW 36.70A.070) and on the CFP's adherence with the Authorizing Statutes; and WHEREAS, the District's Capital Facilities Plan is adopted as an appendix to the City's Comprehensive Plan and was last updated in July 2021; and WHEREAS, under prior agreements between the parties, the District calculated and collected the applicable school impact fees; and WHEREAS, pursuant to RCW 82.02.050, counties, cities, and towns are authorized to collect impact fees on behalf of the District; and WHEREAS, the District has updated its Capital Facilities Plan and has asked the City to take over the tasks of calculating and collecting the School Impact Fees from applicants on behalf of the District; and Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 1 of 9 1463647.2 - 366922 -0007 48 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011 E7 WHEREAS, the City will need to update its ordinance on impact fees to address the new procedures requested by the District; and WHEREAS, prior to the City's adoption of an ordinance describing the features of the school impact fee program, allowing the District to receive and expend school impact fees in conformance with the Authorizing Statutes, the City and District desire to enter into an interlocal agreement; and WHEREAS, the District agrees to annually provide a copy of its adopted Capital Facilities Plan to the City for consideration and incorporation pursuant its annual comprehensive plan update schedule; and WHEREAS, the City and the District desire to enter into this new Agreement pursuant to and in accordance with the Interlocal Cooperation Act, Chapter 39.34 RCW, for the purposes of administering and distributing the authorized school impact fees; and WHEREAS, this interlocal agreement will set forth the duties and responsibilities of the parties with regard to implementation of the school impact fee program, as well as indemnification responsibilities for any legal challenges to the program; NOW, THEREFORE, in consideration of the mutual promises herein, the parties agree as follows: I. Responsibilities of the District. The District, by and through its officials, officers, employees, agents, and representatives, agrees to the following: A. To adopt a capital facilities plan, which meets the requirements of the Authorizing Statutes. B. To submit information to the City to support the adoption of a school impact fee ordinance in the City for the imposition of school impact fees, including the District's capital facilities plan, a proposed impact fee schedule, and any other information required by the City's ordinance. Such information should be understandable to the general public and be transparent in how the impact fee amount is set and how it will be calculated to apply to applicants of different types of development projects. In order to provide the City with adequate guidance on the calculation of applicable school impact fees, the impact fee schedule shall provide a listing of all applicable fee amounts for different types of residential development, including, but not limited to: detached single family homes, multi -family homes, townhomes or zero lot line homes, duplex, triplex, and accessory dwelling units both attached and detached. C. To annually submit to the City a six -year capital facilities plan or an update of the previously adopted plan, together with an impact fee schedule, which meets the requirements of the Authorizing Statutes and the school impact fee ordinance, on or before July I" of each year. This shall include a list of all capital facilities funded or constructed by the District with school impact fees collected in the previous year(s) from any other city or Kitsap County. Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 2 of 9 1463647.2 - 366922 -0007 49 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011E7 D. To establish and maintain school impact fee accounts, as required by RCW 82.02.070, as it now exists or may hereafter be amended. The impact fee account(s) shall be interest -bearing fund(s), and the school impact fees received shall be invested in a manner consistent with the investment policies of the District. E. To expend impact fee revenues provided to the District under this Agreement, and all interest proceeds on such revenues, solely for expenditures authorized by 82.02 RCW, as written or hereafter amended, and as set forth in the adopted Capital Facilities Plan. F. To prepare a report to the City to allow the City to meet the requirements of RCW 82.02.070(1) and submit such report to the City on or before March lst of each year, showing the source and amount of all monies collected, earned, or received and system improvements that were financed in whole or in part by impact fees. G. To properly expend impact fees, as required by RCW 82.02.050(4) and 82.02.070(2), as these statutes now exist or may hereafter be amended. H. To encumber or expend impact fees as required by RCW 82.02.070(3) and where the District has extraordinary and compelling reasons for noncompliance with this statute, the District shall identify such reasons in written findings made by the School Board and delivered to the City Council. I. To notify property owners of refunds under RCW 82.02.080 and the processing and payment of any refunds, together with any interest which may be due when a refund is required pursuant to RCW 82.02.080, as now written, or hereafter amended. J. To review all covenants and declaration of restrictions for form, as these documents are required by the school impact fee ordinance to maintain exceptions from payment of impact fees. In the event that such covenants and/or declarations of restrictions are violated, the District will have the responsibility for enforcement of same. K. To maintain all accounts and records necessary to ensure compliance with this Agreement, the school impact fee ordinance, the Authorizing Statutes, and all other applicable law. L. To make determinations, pursuant to the City's impact fee ordinance, whether or not residential activity in the City is exempt from payment of school impact fees, including approving whether any exemption for school impact fees should be applied for low income housing or early learning facilities. Any appeals of such a determination shall be handled by the District. M. The District shall handle all requests for consideration or appeals of the school impact fees or dedication in lieu of fee payment from initiation to final decision as set forth under and consistent with the City's Impact Fee Ordinance. The District's decision on reconsideration and/or appeal shall be final. Except as provided under Section II below, the District shall be responsible for defending the school impact fee and/or the District's responsibilities as set forth Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 3 of 9 1463647.2 - 366922 -0007 50 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011E7 herein regardless of whether an appeal of the school impact fee is fled with an appeal of the underlying permit or not. The District shall handle all appeals at the District's cost. The scope of the District's responsibility to defend and indemnify the City is set forth in Section IV below. II. Responsibilities of the City. In the event the City adopts a school impact fee ordinance, the City, by and through its officials, officers, employees, agents and representatives, agrees to the following: A. Be responsible for the following aspects of the impact fee program: 1. To adopt a school impact fee schedule as part of the City's impact fee ordinance, based on information submitted by the District, and prepared by the District in compliance with the Authorizing Statutes and all other applicable law. 2. To review annually updated information from the District relating to the school impact fee schedule, and adoption of a new school impact fee schedule based on information submitted by the District and prepared by the District under the Authorizing Statutes and all other applicable law. 3. To calculate applicable impact fees to applicants based on the impact fee schedule received from the District. If a development type is not included on the District fee schedule, the City shall have the authority to interpret the rate schedule and to utilize the most applicable development type for calculating the applicable fee. 4. To receive payments of impact fees from applicants on behalf of the District as part of development permit applications. 5. To determine whether applicants are excluded from the application of the school impact fee and/or whether an applicant is eligible for deferral in accordance with Ch. 20.182 of the Port Orchard Municipal Code. 6. To timely provide information to the District about requests for refunds or challenges to the school impact fees, including forwarding those requests directly to the District. 7. For administrative convenience while processing the fee payments, school impact fees may be temporarily deposited in a City account. As soon as practicable, the City will transmit the school impact fees collected and any interest for the District to the District. The District shall deposit the fees into the School Impact Account established by the District. To refuse to issue a permit, or, if the impact fee is subject to deferral, to refuse to issue a certificate of occupancy, until the impact fees are paid to the City. Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 4 of 9 1463647.2 - 366922 -0007 51 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011E7 III. The City shall not be responsible for any appeals, administrative or judicial, of any decisions or determinations relating to the school impact fee ordinance. The City shall timely notify and tender as appropriate to the District any judicial appeal of the school impact fees, as provided in Section IV herein. Examination of Records. A. Each Party's records and documents with respect to all matters covered by this Agreement shall be subject to inspection, review, or examination, by the other Party or other appropriate state agency. B. Each Party agrees to cooperate with any evaluation activities conducted by the other Party that pertain to the subject of this Agreement This includes allowing the other party or appropriate state agencies and/or any of their employees, agents, or representatives, to have full access to and the right to examine and inspect, make excerpts or transcripts, during normal business hours, of the Party's records or matters relating to this Agreement, except to the extent that any such records are subject to the attorney -client privilege and are not subject to the Public Records Act with respect to matters covered by this Agreement. The requesting Party shall provide fourteen (14) days' advance notice to the other Party of examination and inspection of records relating to this Agreement and shall arrange a mutually agreeable date and time to conduct such examination and inspection. C. To the extent the requesting Party prepares, creates, or produces any written evaluation or other written memorialization or documentation ("record report") of its inspection, review, or examination of the other Party's records pertaining or relating to the subject of this Agreement, the requesting Party shall first provide the other Party with a reasonable opportunity to review and comment on the report prior to finalization. . IV. Indemnification and Hold Harmless. A. The District is a separate municipal corporation, with the authority to adopt its capital facilities plan and to encumber and/or spend the school impact fees collected by the City from property owners/developers in the City. The District acknowledges that because the District gathers, collects, creates, and interprets the data used to develop its capital facilities plan, that the District, not the City, is in the best position to ensure that its capital facilities plan conforms to the Authorizing Statutes and all other applicable law. The District further acknowledges that because the District will make its own discretionary decisions about how to encumber and/or spend the school impact fees collected by the City, that the District, not the City, is in the best position to ensure that its related actions conform to the Authorizing Statutes and all other applicable law. With this in mind, the parties have agreed to indemnify the other as follows: 1. The District shall, at its own cost and expense, protect, defend, indemnify and hold harmless the City, its officers, employees and agents, from any and all costs, claims, judgments or awards of damages, including attorneys' fees and expert witness fees, arising out of or in any way resulting from the acts or omissions of the District, its officers, employees or agents, relating to the District's implementation of the school impact fee program, performance of the duties set forth in Section I of this Agreement, or compliance with the school impact fee ordinance, the Authorizing Statutes or applicable law, all as may be amended from time to time. Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 5 of 9 1463647.2 - 366922 -0007 52 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011E7 2. It is the District's responsibility to refund any fees with interest, which are determined by a court of competent jurisdiction to have been improperly paid, regardless of whether the District erroneously established the fee amount and/or the City collected the school impact fee amount. 3. The District agrees that while the City will be calculating and collecting the impact fees from applicants, these calculations will be based on the District's established fees. The District agrees to handle any disputes or appeals related to the school impact fees and will defend, at its own cost and expense, the City in any disputes or appeals that may arise. B. The District shall, at its own cost and expense, protect, defend, indemnify and hold harmless the City, its officers, officials, employees and agents, from any and all costs, claims, judgments or awards of damages, including attorneys' fees and expert witness fees, resulting from any challenge to the constitutionality or legality of the school impact fee ordinance or the fee schedule or the calculation of impact fees or determination applicable to any individual permit application. If a lawsuit is fled, the City shall immediately send a copy to the District and tender defense to the District. Once the District assumes defense of any appeal relating to the school impact fee ordinance, fee schedule, individual determinations, or collection of impact fees, the District shall not be responsible to reimburse the City for any of the City's attorneys' fees or litigation costs incurred thereafter. C. The District further agrees that the District shall, at its own cost and expense, defend, indemnify, and hold harmless the City, its officers, officials, employees, and agents from any and all costs, claims, judgments or awards of damages, including attorneys' fees or expert witness fees arising out of or in any way resulting from the District's failure to refund impact fees, or interest on such impact fees. The District's failure to refund impact fees, or interest on such impact fees includes but is not limited to a determination that impact fees from development activity that was not completed are not refundable because the funds were expended or encumbered by the District, whether or not the District's determination was made in good faith; provided, however, that once the District assumes defense of any such claim or action, the District shall not be responsible to reimburse the City for any of the City's attorneys' fees or litigation costs incurred thereafter. D. The City shall, at its own cost and expense, protect, defend, indemnify and hold harmless the District, its officers, employees, or agents from any and all costs, claims, judgments, awards, attorneys' fees or expert witness fees arising out of or in any way resulting from the acts or omissions of the City, its officers, officials or employees relating to the performance of the City's responsibilities as set forth in Section II of this Agreement. The City's decision to use the information provided by the District (initially or annually) when adopting or updating a school impact fee ordinance shall not be the basis for City liability, nor shall the City's calculation, imposition, or collection of school impact fees to any applicant be a basis for City liability, and the parties agree that if the City relies upon the information provided by the District (initially or annually) in the adoption of a school impact fee ordinance, any subsequent fee schedule, or the imposition of fees on applicants in accordance with that fee schedule, the City shall not be required to defend any appeal or challenge to the District's information, data, use of school impact fees, calculation of fees, or decisions on reconsideration/appeal. Once the City assumes defense of any Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 6 of 9 1463647.2 - 366922 -0007 53 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011 E7 claim or action, the City shall not be responsible to reimburse the District for any of the District's attorneys' fees or litigation costs incurred thereafter. E. The duties of the parties to each other under this Section IV shall survive termination or expiration of this Agreement. V. Effective Date and Termination. A. The District's authorization to receive impact fees under this Agreement may be terminated without cause by the City, in whole or in part, at any time, but only upon the repeal or invalidation of the school impact fee ordinance (or any fee schedules adopted hereunder). All other obligations under this Agreement shall remain in effect until both of the following conditions have been satisfied: The City or the District provides written notice that this Agreement is being terminated; and 2. The District no longer retains unexpended or unencumbered impact fees and interest earned thereon. The obligations under Section IV, Indemnification, shall be continuing and shall not be diminished or extinguished by the termination of this Agreement. B. The District shall have the duty to ensure that upon termination of this Agreement, any remaining expended or unencumbered impact fees and interest earned thereon are either properly expended or refunded pursuant to chapter 82.02 RCW. C. Nothing herein shall limit, waive, or extinguish any right or remedy provided by this Agreement or by law that either party may have in the event that the obligations, terms, and conditions set forth in this Agreement are breached by the other party. VI. Modification. No changes or modifications to this Agreement shall be valid or binding upon either party unless such changes or modifications are in writing and executed by both parties. VII. Integration. This Agreement, together with the school impact fee ordinance and any definitions adopted by the City to implement the ordinance, contains all of the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to bind either party. VIII. Severability. In the event that any term or condition of this Agreement or the school impact fee ordinance, or application of either to any person or circumstances is held invalid, such invalidity shall not affect other terms, conditions, or applications of this Agreement which can be given effect without Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 7 of 9 1463647.2 - 366922 -0007 54 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011 E7 the invalid term, condition or application. To this end, the terms and conditions of this Agreement are declared severable. IX. Rights of Other Parties. It is understood and agreed that this Agreement is solely for the benefit of the parties hereto and conveys no right to any other party. X. Disputes. Jurisdiction of any dispute arising under this Agreement shall be in Kitsap County Superior Court, or the U.S. District Court, Western District of Washington. Prior to filing in Superior Court or District Court, the Parties agree to attempt to settle any dispute arising under this Agreement through good faith negotiation and/or mediation. Any incurred cost for negotiation/mediation will be split between the parties. XI. Governing Law and Filing. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington. The laws of the State of Washington shall govern the validity and performance of this Agreement. This Agreement shall become effective upon occurrence of the following: A. Approval of the Agreement by the official action of the governing bodies of each of the parties hereto; B. Execution of the Agreement by the duly authorized representative of each of the parties hereto; C. The filing of a copy of this Agreement with the following public officials: 1. The City Clerk of the City of Port Orchard; and 2. The Secretary of the Board of Directors of the South Kitsap School District. D. Both parties agree to post this agreement in its respective website in accordance with RCW 39.34.040. XII. Administration. A. The City's representative for purposes of administering this Agreement is the Mayor. B. The District's representative for purposes of administering this Agreement is the Superintendent. Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 8 of 9 1463647.2 - 366922 -0007 55 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011 E7 XIII. Waiver. Waiver of any default in the performance of this Agreement shall not be deemed to be a waiver of any subsequent default. Waiver or breach of any provision of the Agreement shall not be deemed to be a waiver of any other or subsequent breach and shall not be construed to be a modification of this Agreement. XIV. Effective Date and Duration. This Agreement shall not take effect unless and until it has been duly executed by both parties and either filed with the County Auditor or posted on either party's website, however, the City will not begin calculating and/or collecting impact fees for the District until January 1, 2022. This Agreement shall remain in effect through December 31, 2026 and shall automatically renew for one additional five (5) year period, unless earlier terminated pursuant to the provisions of Section V above. XV. Miscellaneous Provisions A. No Joint Venture. Nothing contained in this Agreement shall be construed as creating any type or manner of partnership, joint venture, or other joint enterprise between the parties. B. No Separate Entity Necessary. The parties agree that no separate legal or administrative entities are necessary to carry out this Agreement. C. Ownership of Property. Except as expressly provided to the contrary in this Agreement, any real or personal property used or acquired by either party in connection with its performance under this Agreement will remain the sole property of such party, and the other party shall have no interest therein. D. Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original and all of which shall constitute one and the same agreement. IN WITNESS WHEREOF, the undersigned have executed this Agreement this day of rrMln4ffN. aVRZ;Z City of Port Orchard South Kitsap School District No. 402 DocuSigned by: Igo( t*f P�-M,SWuL By: Fs ae�rue .. Robesrt�utaansuu, Mayor By: vw. �IGW Tim Winter, Superintendent Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 9 of 9 1463647.2 - 366922 -0007 56 DocuSign Envelope ID: 4D5837F6-02D6-4232-B718-4E3737C011 E7 A fled by: 6VAAJA UJd V)- Brandy �t 4CBrrea' , City Clerk Vda ] iCMG&— APPROVED AS TO FORM: FDocuSignnedd by: '', . 1^ a Char f6031ke"K20,kricher, City Attorney APPROVED AS TO FORM: Buzz Porter, District Attorney Interlocal Agreement between City of Port Orchard and South Kitsap School District for School Impact Fees Page 10 of 9 1463647.2 - 366922 -0007 57 SCHOOL DISTRICT South Kitsap School District Tim Winter, Superintendent 2689 Hoover Ave SE Port Orchard, WA 98366 March 11, 2025 City Council of Port Orchard 216 Prospect Street Port Orchard, WA 98366 Subject: Request for Approval of Updated School Impact Fees Dear Mayor Rob Putaansuu and City Council Members, On behalf of the South Kitsap School District, I request your approval of our updated school impact fee structure. These fees are essential to ensuring school facilities can accommodate the city's growth. In 2023, Washington State passed laws requiring school impact fees to be scaled based on housing unit size and occupancy. To comply, the District partnered with FCS Group to develop a fair, proportional fee structure. The proposed fees are: • $0.56 per sq. ft. (City) and $0.84 per sq. ft. (County) • Minimum fees of $546.62 (City) and $672.07 (County) • Maximum fees of $2,009.27 (City) and $3,002.84 (County) These updates align with state law while maintaining fairness and predictability for developers. Additionally, we are currently studying the amount the City charges for school impact fees and may provide a future recommendation to better align fees with actual costs. We urge the City Council's approval to ensure our schools can support future students. Thank you for your time and consideration. I welcome any questions and look forward to working together. Sincer ly, im Winter Superintendent South Kitsap School District wi nterbskschools.o rq 360.874.7009 South Kitsap School District • 2689 Hoover Ave, Port Orchard, WA 98366 (360) 874-7000 OFFICE • (360) 874-7068 FAX • https://www.skschools.org 58 OLYMPIC COLLEGE HEALTHCARE DIVISION March 4, 2025 Dear Clinical/Community Partner, 1600 Chester Avenue, Bremerton, WA 98337-1699 Tel 360-475-7748 1 Fax 360-475-7628 www.olympic.edu/academics/academic-pathways/healthcare The purpose of this letter is to provide an update to the Radiologic Technology (RADT) Program and Diagnostic Medical Sonography (DMS) Program proposals submitted to the State Board of Community and Technical Colleges (SBCTC). Here is the timeline of events: • Olympic College (OC) submitted the new program proposals to the SBCTC on November 26-27, 2024, along with letters of support from clinical partners securing clinical spots for the new programs. Tacoma Community College (TCC) objected to the new program proposal on January 21, 2025 on the basis of the following: o Opposing college offers a program that already meets the needs of the proposed new program(s) o Demand for proposed new program is not sufficient to add additional instructional capacity o Clinical or work -based learning sites are not available to support a new program • OC responded to the objection and requested a meeting to collaborate with TCC on clinical placement concerns. A meeting to discuss TCC's objection occurred. Both Colleges agreed to schedule a clinical partner meeting to discuss the viability of additional programs (RADT and DMS) in support of both programs. • All clinical partners offering spots to both TCC and OC, along with college representatives, were invited to attend a collaborative meeting on 2/28/2025 to discuss clinical partner's ability to support both Colleges with clinical spots. The partners that were present agreed to support both programs. • TCC has decided to continue with the objection to OC's Radiologic Technology and Sonography Programs. The State Board of Community and Technical Colleges will have fourteen business days to identify an advisory panel (March 25). The advisory panel will meet to review all materials and make a recommendation to the executive director. The SBCTC executive director will make a final decision on approval of the Olympic College's RADT and DMS Programs on or before April 7. The healthcare crisis in Kitsap County and the call to action from our community members is driving the necessity to expand healthcare programs in our service district. Clinical partners have led the request and demand for program expansion at Olympic College. Recognizing our nearby college partner programs, the goal of Olympic College has been to collaborate and avoid competition for clinical spots. Workforce data confirms Washington will not be able to keep up with the demand and ongoing staffing shortages of healthcare professionals in the coming decades. If you would like to send an email about TCC's objection please submit to programapproval@sbctc.edu with subject line, Olympic College Rad Tech or Sonography. 59 OLYMPIC COLLEGE HEALTHCARE DIVISION 1600 Chester Avenue, Bremerton, WA 98337-1699 Tel 360-475-7748 1 Fax 360-475-7628 www.olympic.edu/academics/academic-pathways/healthcare I appreciate your time and support of workforce development and working together to solve the healthcare shortages that continue to contribute to lack of access to care. Best regards, Alecia Nye, Ph.D., MN, RN Dean of Nursing and Allied Health anye@olympic.edu (360) 475-7793 60 Port Orchard City Council 216 Prospect Street Port Orchard, WA 98366 March 12, 2025 State Board for Community and Technical Colleges 1600 Chester Avenue Bremerton, WA 98337-1699 Sent Via Email: programapproval@sbctc.edu Subject: Support for Healthcare Expansion at Olympic College Dear Members of the State Board for Community and Technical Colleges: On behalf of the Port Orchard City Council, I write to express our strong support for the expansion of healthcare education programs at Olympic College, particularly the addition of radiological and diagnostic technical sonography programs. As a vital regional healthcare destination, Kitsap County faces ongoing challenges related to medical service capacity and healthcare workforce shortages. Expanding educational pathways for these critical healthcare roles is essential to meeting the growing needs of our communities. Our region continues to experience significant shortages in healthcare professionals, impacting access to essential diagnostic and medical services. Kitsap County serves not only its residents but also individuals from surrounding areas who rely on its healthcare infrastructure. The expansion of healthcare programs at Olympic College will provide the training necessary to build a strong, sustainable workforce, ensuring that local medical facilities can adequately serve patients now and in the future. The Port Orchard City Council recognizes the critical role that Olympic College plays in workforce development and in addressing regional healthcare challenges. We appreciate your leadership in advancing educational opportunities that strengthen our healthcare workforce and improve access to quality medical care in our communities. Thank you for your consideration and your continued dedication to strengthening Washington's healthcare workforce. Best regards, Scott Diener Mayor Pro Tempore Port Orchard City Council 61