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2020 0114 Council Agenda Packet Moses Lake City Council Karen Liebrecht, Mayor | David Curnel, Deputy Mayor | Mike Riggs, Council Member | Don Myers, Council Member Daryl Jackson, Council Member | David Eck, Council Member| Dean Hankins, Council Member Moses Lake Civic Center – 401 S. Balsam Regular Meeting Agenda January 14, 2020, 7 PM Call to Order – 7 p.m. Roll Call Pledge of Allegiance Selection of Mayor and Deputy Mayor Oaths of Office – Mayor and Council Member Hankins Summary Reports: Mayor’s Report Additional Business City Manager’s Report Citizen’s Communications – Identification Citizens who would like to address the Council must complete one of the blue speaker request cards and submit it to the City Clerk. There is a (5) minute time limit per speaker. Consent Agenda Motion All items listed below are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member requests specific items to be removed from the Consent Agenda for discussion prior to the time Council votes on the motion to adopt the Consent Agenda. #1 pg 3 a. City Council Meeting Minutes dated December 19, 2019 b. Claims and Payroll c. City Manager Contract d. International Paper Industrial Discharge Permit e. Accept Sand Dunes Irrigation Well #2 Project Moses Lake Council Packet 1-14-20, Page 1 of 165 January 14, 2020, City Council Meeting – Page 2 Public Hearing #2 pg 58 Annexation Ordinance 2944 Motion Presented by Kris Robbins, Community Development Director Summary: Council to hear from public and consider adoption at the next meeting Old Business #3 pg 63 Fire Impact Fee Ordinance 2940 and Resolution 3790 Motion x 2 Presented by Kevin Fuhr, City Manager Summary: Council to review and consider adoption #4 pg 142 Municipal Airport Lease Agreement Motion Presented by Kevin Fuhr, Interim City Manager Summary: Council to review and consider approval #5 pg 162 Surplus Property and Set Public Hearing Resolution 3789 Motion Presented by Kevin Fuhr, Interim City Manager Summary: Council to review and consider adoption New Business – none scheduled Administrative Reports Council Communications and Reports Executive Session a. Sale of Property pursuant to RCW 472.30.110(1)(c) b. Performance of a Public Employee pursuant to RCW 42.30.110(1)(f) c. Litigation pursuant to RCW 42.30.110(1)(i) Adjournment Moses Lake Council Packet 1-14-20, Page 2 of 165 MOSES LAKE CITY COUNCIL – SPECIAL MEETING December 19, 2019 CALL TO ORDER The regular meeting of the Moses Lake City Council was called to order at 7 p.m. by Mayor Liebrecht in the Council Chambers of the Civic Center, 401 S. Balsam St., Moses Lake, Washington. ROLL CALL Present: Mayor Liebrecht; Deputy Mayor Curnel; Council Members Jackson, Myers, Leonard, and Riggs. Absent: Council Member Hankins. Action taken: Council Member Riggs moved to excuse Council Member Hankins, second by Council Member Jackson. The motion carried 6 – 0. PLEDGE OF ALLEGIANCE Beatrice Haw, Council Member Leonard’s mom, led the Council in the Pledge of Allegiance. OATHS OF OFFICE Grant County Superior Court Judge David Estudillo administered the oaths of office to Council Members Myers and Eck. SUMMARY REPORTS MAYOR’S REPORT Council Member Recognition Mayor Liebrecht presented a plaque to Council Member Ryann Leonard in appreciation of her term as Council Member from 2016 through 2019. CITY MANAGER’S REPORT Port of Moses Lake Staff Port Commissioner Darrin Jackson introduced their new Executive Director Don Cursey. Mr. Cursey provided a brief work history and expressed his joy for this opportunity. Fire Staff Presentations Chief Brett Bastian presented Firefighter Jason Fife with a Fire Investigator Certification which will improve the City’s survey and rating deficiency points. He also introduced two Assistant Fire Chiefs, Derek Beach and Todd Schanze, who were promoted to increase the number of command officers and also improve the survey and rating deficiency points. City Manager Contract City Attorney Katherine Kenison reviewed four options of language in the ‘for cause’ statement. Consensus of the Council was to draft the contract with option one. Moses Lake Council Packet 1-14-20, Page 3 of 165 Surplus Property The Parks Commission met to discuss surplus of Vista 1 and Power Point Parks. They recommend Council authorize to surplus Vista 1 Park and keep the other park for potential use in the trails program. Council requested staff to bring back a surplus resolution as well as authorization to process a purchase and sale agreement. CONSENT AGENDA #1 a. City Council meeting minutes dated December 10, 2019b.Claim Checks 146220 through 146309 in the amount of $1,113,138.00; Payrollchecks 63252 through 63264 in the amount of $8,968.30; and ElectronicPayments dated December 13, 2019 in the amount of $396,249.30c.Award Stratford Road Booster Pump Project d. Authorize Cityworks Software Contractse.Authorize Keller Associates Hydraulic Modeling Contract Action taken: Deputy Mayor Curnel moved to approve the Consent Agenda, second by Council Member Leonard. The motion carried 6 – 0. OLD BUSINESS #2 Municipal Airport Lease Revisions City Attorney Katherine Kenison, Interim City Manager Kevin Fuhr, Council Member Jackson, and Municipal Airport Advisory Board Member Richard Pearce met and drafted a new lease agreement with a few sections pending input from Council. Following detailed explanations from the subcommittee members and fielding Council questions, staff were provided direction of final content to be presented for approval at the next Council meeting. NEW BUSINESS #3 Ladder Truck Contracts The purchase of the new trucks were approved during the budgeting process for 2020. By signing contracts now, the city will receive the 2019 pricing which is about 4% less than 2020 pricing, a savings of over $80k after sales tax. Action taken: Council Member Leonard moved to accept the proposals, second by Council Member Jackson. The motion carried 6 – 0. #4 Comp Plan Update Ordinance 2934 Staff distributed a corrected agenda bill and ordinance to Council at the meeting. The Planning Commission recommends Council accept four of the five changes requested to zoning or UGA boundaries and possibly the fifth at a later date once more information has been provided. Action taken: Deputy Mayor Curnel moved to adopt Ordinance 2934, second by Council Member Myers. The motion carried 6 – 0. Moses Lake Council Packet 1-14-20, Page 4 of 165 #5 Parks Donation Resolution 3788 The Columbia Family Foundation wishes to donate $10,000 to be utilized by the City in the Paths and Trails budget to support the development, maintenance, and operations of the community’s paths and trails. Action taken: Council Member Leonard moved to adopt Resolution 3788, second by Council Member Riggs. The motion carried 6 – 0. ADMINISTRATIVE REPORTS City Manager Kevin Fuhr shared that the annual Tip a Cop and Shop with a Cop events were successful. They raised over $5k, took eight families shopping for the holidays, and still had funds left over to give to families unable to attend the shopping event. COUNCIL COMMUNICATIONS AND REPORTS Council Member Jackson noted he has really enjoyed working with the current Council. Council Member Myers invited everyone to attend the Grant Transit Authority budget meeting to be held on December 30 at 6:30 p.m. at the Transit Center. Council Member Leonard expressed regrets for leaving the community after 15 years and thanked the Council for all of their wonderful support to make the City a great place to live. Deputy Mayor Curnel, along with Mayor Liebrecht, and Council Members Jackson and Riggs, attended the employee breakfast this morning. He found interacting with staff on a social level to be very pleasant. Council Member Riggs was invited to a recent meeting of the Moses Lake Downtown Association and announced that the Brews and Tunes will be held on February 29 next year. He also attended the Watershed Council meeting where they discussed lake algae issues. Mayor Liebrecht shared her observation of the dedication of employees at the breakfast event today. She also thanked the City Clerk, Director’s, and Council for their support during her term as Mayor. EXECUTIVE SESSION Mayor Liebrecht called an Executive Session at 8:27 p.m. to be held for 10 minutes pursuant to RCW 42.30.110(1)(i) to discuss litigation and there will be no further business. ADJOURNMENT The meeting was adjourned at 8:40 p.m. Moses Lake Council Packet 1-14-20, Page 5 of 165 ______________________________________ Mayor ATTEST____________________________________ Debbie Burke, City Clerk Moses Lake Council Packet 1-14-20, Page 6 of 165 To: Kevin Fuhr, Interim City Manager From: Cindy Jensen, Finance Director Council Meeting Date: January 14, 2020 Proceeding Type: Consent Agenda Subject: Semi-Monthly Disbursement Report The following amounts were budgeted and sufficient funds were available to cover these payments: Claim Checks 146310 - 146597 $1,835,819.62 Payroll Checks 0063265 - 0063286 $15,761.06 Electronic Payments Payroll ACH -12/26/2019 $393,539.90 Electronic Payments Payroll ACH -1/9/2020 $429,253.82 Summary RCW 42.24 governs the process for audit and review of claims and payroll payments for the City. RCW 42.24.180 requires the review and approval of all payments at a regularly scheduled public meeting on at least a monthly basis. The State Budgeting, Accounting and Reporting Systems (BARS) Manual outlines the above format for approval by the City Council. RCW 42.24.080 requires that all claims presented against the City by persons furnishing materials, rendering services, or performing labor must be certified by the appropriate official to ensure that the materials have been furnished, the services rendered, or the labor performed as described, and that the claims are just, due and unpaid obligations against the City. RCW 42.24.180 allows expedited processing of the payment of claims when certain conditions have been met. The statute allows the issuance of warrants or checks in payment of claims before the legislative body has acted to approve the claims when: (1) the appropriate officers have furnished official bonds; (2) the legislative body has adopted policies that implement effective internal control; (3) the legislative body has provided for review of the documentation supporting the claims within a month of issuance; and (4) that if claims are disapproved, they shall be recognized as receivables and diligently pursued. The City meets all these conditions. To comply with the requirements, Finance staff schedule payment of claims and payroll for semi-monthly Council approval on the Consent Agenda. The payments listed in the schedule cover all claims and payroll payments during the period prior to the date of the Council meeting. All payments made during this period were found to be valid claims against the City. Details are attached and any questions should be directed to the City Manager or Finance Director. The City’s internal controls include certification of the validity of all payments by the appropriate department prior to submission for payment. The Finance Director has delegated authority for the examination of vouchers and authorization of payments to the Finance, Accounts Payable, and Payroll staff. All payments are reviewed and validated. The Finance Division regularly reviews its processes to ensure appropriate internal controls are in place. Moses Lake Council Packet 1-14-20, Page 7 of 165 Moses Lake Council Packet 1-14-20, Page 8 of 165 Moses Lake Council Packet 1-14-20, Page 9 of 165 Moses Lake Council Packet 1-14-20, Page 10 of 165 Moses Lake Council Packet 1-14-20, Page 11 of 165 Moses Lake Council Packet 1-14-20, Page 12 of 165 Moses Lake Council Packet 1-14-20, Page 13 of 165 Moses Lake Council Packet 1-14-20, Page 14 of 165 Moses Lake Council Packet 1-14-20, Page 15 of 165 Moses Lake Council Packet 1-14-20, Page 16 of 165 Moses Lake Council Packet 1-14-20, Page 17 of 165 Moses Lake Council Packet 1-14-20, Page 18 of 165 Moses Lake Council Packet 1-14-20, Page 19 of 165 Moses Lake Council Packet 1-14-20, Page 20 of 165 Moses Lake Council Packet 1-14-20, Page 21 of 165 Moses Lake Council Packet 1-14-20, Page 22 of 165 Moses Lake Council Packet 1-14-20, Page 23 of 165 Moses Lake Council Packet 1-14-20, Page 24 of 165 Moses Lake Council Packet 1-14-20, Page 25 of 165 Moses Lake Council Packet 1-14-20, Page 26 of 165 Moses Lake Council Packet 1-14-20, Page 27 of 165 Moses Lake Council Packet 1-14-20, Page 28 of 165 Moses Lake Council Packet 1-14-20, Page 29 of 165 Moses Lake Council Packet 1-14-20, Page 30 of 165 Moses Lake Council Packet 1-14-20, Page 31 of 165 Moses Lake Council Packet 1-14-20, Page 32 of 165 Moses Lake Council Packet 1-14-20, Page 33 of 165 Moses Lake Council Packet 1-14-20, Page 34 of 165 Moses Lake Council Packet 1-14-20, Page 35 of 165 Moses Lake Council Packet 1-14-20, Page 36 of 165 Moses Lake Council Packet 1-14-20, Page 37 of 165 Moses Lake Council Packet 1-14-20, Page 38 of 165 Moses Lake Council Packet 1-14-20, Page 39 of 165 Moses Lake Council Packet 1-14-20, Page 40 of 165 Moses Lake Council Packet 1-14-20, Page 41 of 165 Moses Lake Council Packet 1-14-20, Page 42 of 165 Moses Lake Council Packet 1-14-20, Page 43 of 165 Moses Lake Council Packet 1-14-20, Page 44 of 165 Moses Lake Council Packet 1-14-20, Page 45 of 165 Moses Lake Council Packet 1-14-20, Page 46 of 165 Moses Lake Council Packet 1-14-20, Page 47 of 165 Moses Lake Council Packet 1-14-20, Page 48 of 165 Moses Lake Council Packet 1-14-20, Page 49 of 165 Moses Lake Council Packet 1-14-20, Page 50 of 165 STAFF REPORT To: City Council From: Kevin Fuhr, Interim City Manager Date: January 13, 2020 Proceeding Type: Consent Agenda Subject: City Manager Contract Legislative History: • First and Second Presentation: December 10, 2019 and December 19, 2019 • Final Presentation: January 14, 2020 • Action: Motion Staff Report Summary Attached is the revised City Manager contract. The contract contains the changes requested by the Council and legal staff. The amended contract was signed on December 24, 2019. Background The attached contract is similar to previous contracts with some additional language requested by the Council and legal staff. Staff Recommendation Staff recommends Council authorize and ratify the Mayor’s execution of the City Manager contract with Allison Williams. Attachments A. Contract Legal Review – contract written by City Attorney. Moses Lake Council Packet 1-14-20, Page 51 of 165 Moses Lake Council Packet 1-14-20, Page 52 of 165 Moses Lake Council Packet 1-14-20, Page 53 of 165 Moses Lake Council Packet 1-14-20, Page 54 of 165 Moses Lake Council Packet 1-14-20, Page 55 of 165 STAFF REPORT To: Kevin, Fuhr, Interim City Manager From: Fred Snoderly, Municipal Services Director Date: December 20, 2019 Proceeding Type: Consent Agenda Subject: Industrial Waste Discharge Permit No. 14, International Paper Renewal Legislative History: • First Presentation: January 14, 2020 • Second Presentation: • Action: Motion Staff Report Summary Attached is a copy of the proposed Industrial Waste Discharge Permit No. 14 for International Paper. This permit will allow International Paper to continue their discharge to the City’s POTW for an additional five years prior to renewal. Background International Paper is a significant user and is required to have an industrial waste discharge permit from the DOE and the City of Moses Lake. All discharge permits expire in five years and are required to be renewed to continue discharging to the City’s wastewater system. Fiscal and Policy Implications - None Options Option Results • Authorize the City Manager to execute the permit. The industry will continue to discharge their wastewater to the City’s system. • Take no action. The industry will have to pursue other options for their wastewater. Staff Recommendation Staff recommends City Council authorize the Interim City Manager to execute the Industrial Waste Discharge Permit No. 14 for International Paper. Attachment A. Industrial Waste Discharge Permit No. 14 Legal Review N-A Moses Lake Council Packet 1-14-20, Page 56 of 165 STAFF REPORT To: Kevin Fuhr, Interim City Manager From: Fred Snoderly, Municipal Services Director Date: January 7, 2020 Proceeding Type: Consent Agenda Subject: Accept Sand Dunes Irrigation Well Phase #2 Project - 2019 Legislative History: • First Presentation: • Second Presentation: January 14, 2020 • Action Motion Staff Report Summary Empire Well Drilling has completed work for the above project. Background The project consisted of drilling the second irrigation well at the City’s Sand Dunes Treatment Facility. The work completed is in the amount of $172,552.60. The original contract price for the contract was $120,639.60. The extra cost was to drill additional depth to find enough water to run the irrigation pivot beyond the estimated depth, to fix an area of cascading water in the hole that was unforeseen, and to make the well comply with DOE regulations. The work completed by the contractor is physically complete and ready for acceptance. Fiscal and Policy Implications Upon acceptance, the City will enter into the 60 day lien period as required by Washington State Law. Options Option Result • Motion to accept the project as presented. The 60 day lien period will begin. • Take no action. The project won’t be accepted at this time. Staff Recommendation Staff recommends accepting the Sand Dunes Irrigation Well Phase #2 Project - 2019. Moses Lake Council Packet 1-14-20, Page 57 of 165 STAFF REPORT To: Kevin Fuhr, Interim City Manager From: Kris Robbins, Community Development Director Date: January 9, 2020 Proceeding Type: Public Hearing Subject: ODM Annexation Ordinance Legislative History: • First Presentation: December 10, 2019 • Second Presentation: January 14, 2020 • Requested Action: Motion Staff Report Summary Community Development has received an Annexation Petition from Don Shi in regard to Grant County Tax Parcel Number 171041000. See attached map. Background In October of 2019, Community Development received a Notice of Intention to Commence Annexation Proceedings from Don Shi with regard to Grant County Tax Parcel Number 171041000. The property is adjacent to existing city limits to the east of the property and can be served by City water and sewer. The property lies south of Randolph Road. The Moses Lake Comprehensive Plan Land Use Map designated the site as Industrial. In 2001, the City Council adopted a Comprehensive Plan that included an Urban Growth Area (UGA) that was negotiated between the Grant County Board of County Commissioners and the Moses Lake City Council in accordance with RCW 36.70A.110. The final adopted UGA was nearly ten (10) years in the making and was subject to much debate, discussion and Public Hearings. The Moses Lake UGA is a twenty (20) year vision that is intended to encourage growth that is urban in nature and whereby urban governmental services would be provided by the City. The matter of initiating annexation proceedings with the subject property comes from a request for municipal water. In accordance with the City Council’s Policy regarding utility extensions, properties that are within one-half mile of the corporate limits and wish to connect to water/sewer services must annex unless otherwise granted an exception by the City Council. The Moses Lake Comprehensive Plan, Goal 3, Section 3-8 Land Use Chapter, addresses when it is appropriate to annex areas within our Urban Growth Area. Moses Lake Council Packet 1-14-20, Page 58 of 165 “Goal 3: THE CITY SHALL ANNEX ONLY THOSE PROPERTIES WHERE URBAN SERVICES ARE APPROPRIATE AND CAN BE REASONABLY PROVIDED” The request supports the extension of our water service and provides additional commercial land for development. The council should accept any comments provided during the hearing and take those comments into consideration for their decision. Fiscal and Policy Implications Municipal Services, Police, Fire, Planning and Building would all be impacted in terms of providing services. The development of annexation area would yield property taxes and more, which would be utilized to offset staff and infrastructure costs associated with City services that would be provided to the area. Options Option Results • Open the public hearing to consider the proposed annexation and adopt the ordinance Consistent with the Moses Lake Comprehensive Plan and increase the corporate limits • Take no action The City Council would contradict the Goals and Policies of the Comprehensive Plan, Urban Growth Area Staff Recommendation Staff recommends that the Moses Lake City Council adopt the ordinance as presented. Attachments A. Ordinance B. Map Legal Review – N/A The following documents are attached and subject to legal review: Type of Document Title of Document Date Reviewed by Legal Counsel Ordinance Moses Lake Council Packet 1-14-20, Page 59 of 165 ORDINANCE NO. 2944 AN ORDINANCE ANNEXING PROPERTY COMMONLY KNOWN AS THE FOREVER-ODM ANNEXATION TO THE CITY OF MOSES LAKE, WASHINGTON, AND INCORPORATING THE SAME WITHIN THE CORPORATE LIMITS OF THE CITY OF MOSES LAKE THE CITY COUNCIL OF THE CITY OF Moses Lake, Washington DO ORDAIN AS FOLLOWS: Section 1. The following described real estate, as shown on the attached map marked Exhibit A which by this reference is incorporated within this ordinance, situated in Grant County is hereby annexed to and incorporated in the City of Moses Lake; BEGINNING AT A POINT 4403.84 FEET NORTH AND 6276.03 FEET WEST OF THE SOUTHEAST CORNER SECTION 33 OF SAID TOWNSHIP AND RANGE (WHOSE WASHINGTON STATE GRID SOUTH ZONE COORDINATES ARE Y=674,047.08, X=2,298,909.20 AND ARE REFERRED TO USG STATION “SPAD” WHOSE WASHINGTON STATE GRID SOUTH ZONE COORDINATES ARE I 14°676,911.66, X=2,288,625.74) SAID POINT OF BEGINNING BEING THE INTERSECTION OF A COUNTY ROAD KNOWN AS DOVER STREET AND A PRIVATE ROAD KNOWN AS 6TH AVENUE; THENCE SOUTH 89°02’05” WEST ALONG THE CENTERLINE OF DOVER STREET 760.00 FEET; THENCE SOUTH 0°56’55” EAST 724.00 FEET TO THE CENTERLINE OF EGLIN STREET; THENCE NORTH 89°02’50” EAST ALONG THE CENTERLINE OF ELGIN STREET 760.00 FEET TO THE CENTERLINE OF 6TH AVENUE; THENCE NORTH 0°56’56” WEST ALONG THE CENTERLINE OF 6TH AVENUE 724.00 FEET TO THE POINT OF BEGINNING. Parcel #171041000 Said tract of land contains 11.24 acres, more or less. Section 2. All property within the territory annexed shall hereinafter be assessed and taxed at the same rate and on the same basis as other property within the city. Section 3. The area annexed will be zoned H-I, Heavy Industrial. Section 4. That a copy of this ordinance shall be filed with the Board of County Commissioners of Grant County, Washington. Section 5. This ordinance shall take effect and be in force five (5) days after its passage and publication of its summary as provided by law. Adopted by the City Council and signed by it Mayor on January 14, 2020 ____________________________________ , Mayor ATTEST: ____________________________________ Debbie Burke, City Clerk Moses Lake Council Packet 1-14-20, Page 60 of 165 APPROVED AS TO FORM: _____________________________________ Katherine L. Kenison, City Attorney Vote: Riggs Liebrecht Myers Jackson Curnel Eck Hankins Aye Nay Abstain Absent Date Published: January 20, 2020 Date Effective: January 25, 2020 Moses Lake Council Packet 1-14-20, Page 61 of 165 Moses Lake Council Packet 1-14-20, Page 62 of 165 STAFF REPORT To: City Council From: Kevin Fuhr, Interim City Manager Date: January 10, 2020 Proceeding Type: Motion Subject: Fire Impact Fee Ordinance 2940 and Resolution 3790 Legislative History: • First Presentation: September 10, 2019 • Second Presentation: October 8, 2019 • Third Presentation: November 26, 2019 • Requested Action: Motion Staff Report Summary At the request of the City Council, a Fire Impact Fee Sub-committee consisting of six members including the Mayor and Fire Chief held two meetings to discuss the potential impacts of the City adopting Fire Impact Fees. Through those meetings, the impact fees were reduced in the areas of Industrial and Multi-Family buildings. The sub-committee asked for a third meeting so that they could discuss the implementation of impact fees with the new City Manager. The third meeting will take place on Monday January 13th with the goal of bringing forth a recommendation for the City Council to vote on. Background Staff provided information to the Council on a rate study for the fire impact fees.. The attached report includes the update breaking out the costs for Medical Facilities into the sub-categories of Hospitals and Clinics, and Skilled Nursing and LC (assisted living, memory care, and adult family homes). The purpose and intent of the ordinance is to authorize the collection of impact fees for fire protection as new development activities, including but not limited to new residential, commercial, retail, office, and industrial development in the City that will create additional demand and need for fire protection facilities. This allows for such new growth and development to pay a proportionate share of the cost of system improvements needed to serve the new growth and development. Fiscal and Policy Implications This report is required to be approved by ordinance. Moses Lake Council Packet 1-14-20, Page 63 of 165 Options Option Results • Move to adopt Ordinance and Resolution The Fire Impact Fees will become effective upon adoption and publication as noted in the ordinance. • Modify the draft Ordinance or Resolution Provide staff with specific changes, which would then need to be approved at a future meeting. • Take no action Impact Fees would not become effective and direction from could would be requested. Staff Recommendation Staff recommends that the Moses Lake City Council review the Ordinance and Resolution make two motions to adopt each document individually. Attachments A. Ordinance adopting Fire Impact Fees B. Resolution adopting Fire Impact Fees C. Updated Fire Impact Fee Study Legal Review The following documents are attached and subject to legal review: Type of Document Title of Document Date Reviewed by Legal Counsel • Ordinance Fire Impact Fees November 22, 2019 Moses Lake Council Packet 1-14-20, Page 64 of 165 Rate Study For Impact Fees For Fire Protection Moses Lake Council Packet 1-14-20, Page 65 of 165 City of Moses Lake, Washington TABLE OF CONTENTS 1. Introduction…………………………………………………………………………………………………page 7 2. Statutory Basis and Methodology………………………………………………………………..page 9 3. Fire Impact Fees…………………………………………………………………………………………..page 16 List of Variables Variable Title Page A Fire Apparatus 16 B Emergency Responses 17 C Fire Stations 18 D Apparatus Cost 18 E Useful Service Life 19 F Apparatus Percent of Fire Responses 20 G Station Cost per Square Foot 22 H Annual Emergency Fire Incidents at Land Use Types 24 I Number of Dwelling Units or Square Feet 26 J Adjustments for Revenue Credits 57 Moses Lake Council Packet 1-14-20, Page 66 of 165 List of Formulas Formula Title Page F-1 Inventory and Emergency Responses 16 F-2 Annual Cost Per Apparatus 18 F-3 Cost per Apparatus per Fire or Medical Incident 19 F-4 Total Apparatus Cost per Fire Incident 20 F-5 Annual Station Cost 22 F-6 Station Cost Per Fire and Medical Incident 23 F-7 Annual Fire Incident Rate Per Unit of Development 24 F-8 Fire Incident Capital Cost Per Unit of Development 29 F-9 Cost per Apparatus per Fire or Medical Incident 41 F-10 Apparatus Cost per Medical Incident 41 F-11 Station Cost per Fire and Medical Incident 43 F-12 Annual Medical Incident Rate per Unit of Development 43 F-13 Medical Incident Capital Cost per Unit of Development 48 F-14 Fire and Medical Cost per Unit of Development 55 F-15 Adjustments and Impact Fees 57 Moses Lake Council Packet 1-14-20, Page 67 of 165 List of Tables Table Title Page 1 Fire Protection Apparatus Inventory 17 2 Fire and Medical Building Inventory 18 3 Annualized Apparatus Cost 19 4 Apparatus Cost per Response 20 5 Annual Fire and Medical Incidents 21 6 Fire Incident Response by Type of Apparatus 21 7 Total Apparatus Cost per Fire Incident 22 8 Annualized Station Cost per Square Foot 23 9 Station Cost per Fire and Medical Incident 24 10 Fire Incidents 25 11 Fire Incidents at Specific Land Uses 26 12 Traffic Related Fire Incidents (Allocated to Land Uses) 27 13 Total Annual Fire Incidents by Land Use 28 14 Annual Fire Incidents By Land Use 29 15 Engine Cost of Responses to Fire Incidents at Land Use Categories 30 16 Ladder Cost of Responses to Fire Incidents at Land Use Categories 31 17 Medic Vehicle Cost of Responses to Fire Incidents at Land Use Categories 32 18 Brush Truck Cost of Responses to Fire Incidents at Land Use 33 19 Staff Vehicle Cost of Responses to Fire Incidents 34 Moses Lake Council Packet 1-14-20, Page 68 of 165 Table Title Page 20 Tender Cost of Responses to Fire Incidents and Land Use Categories 35 21 Squad Cost of Responses to Fire Incidents and Land Use Categories 36 22 Rescue Vehicle Cost of Responses to Fire Incidents and Land Use Categories 37 23 Other Apparatus / Equipment Cost of Responses to Fire Incidents and Land Use Categories 38 24 Fire Station Cost of Responses to Fire Incidents and Land Use Categories 39 25 Example of Calculation of Total Capital Cost for a Residential Unit 40 26 Total Capital Cost of Responses to Fire Incidents at Land Use Categories 40 27 Medical Incident Response by Type of Apparatus 42 28 Total Apparatus Cost per Medical Incident 42 29 Medical Incidents 43 30 Medical Incidents at Specific Land Uses 44 31 Traffic Related Medical Incidents (Allocated to Land Uses) 45 32 Total Annual Medical Incidents by Land Use 46 33 Annual Medical Incidents by Land Use 47 34 Engine Cost of Responses to Medical Incidents at Land Use Categories 49 35 Medic Unit Cost of Responses to Medical Incidents at Land Use Categories 50 Moses Lake Council Packet 1-14-20, Page 69 of 165 Table Title Page 36 Squad Cost of Responses to Medical Incidents at Land Use Categories 51 37 Staff Unit Cost of Responses to Medical Incidents at Land Use Categories 52 38 Other Apparatus & Equipment Cost of Responses to Medical Incidents at Land Use Categories 53 39 Fire Station Cost of Responses to Medical Incidents at Land Use Categories 54 40 Total Capital Cost of Responses to Medical Incidents at Land Use Categories 55 41 Total Cost of Response to Fire and Medical Incidents by Land Use Category 56 42 Fire Impact Fees by Land Use 58 Moses Lake Council Packet 1-14-20, Page 70 of 165 1. Introduction The purpose of this study is to establish the rates for fire protection facilities (fire) impact fees in the City of Moses Lake, Washington as authorized by RCW 82.02.090(7). SUMMARY OF IMPACT FEE RATES Impact fees are paid by all types of new development1. Impact fee rates for new development are based on, and vary according to the type of land use. The following table summarizes the impact fee rates for several frequently used land use categories. Rates for other non-residential development are presented in the sections of this study for each type of public facility. IMPACT FEE RATE Type of Development Unit Fee Single – Family Dwelling unit $708.29 Multi-Family—Non Sprinkled Dwelling unit $708.29 Multi-Family Sprinkled Dwelling unit $365.10 Medical Facilities Hospitals & Clinics Square Foot $4.45 Skilled Nursing & LC Square Foot $7.60 Hotel-Motel Square Foot $0.73 Office Square Foot $0.33 Retail (shopping) Square Foot $0.48 Industrial Square Foot $0.22 Restaurant Square Foot $0.45 Churches Square Foot $0.96 Education Square Foot $0.54 IMPACT FEES VS. OTHER DEVELOPER CONTRIBUTIONS Impact fees are charges paid by new development to reimburse local governments for the capital cost of public facilities that are needed to serve new development and the people who occupy or use the new development. Throughout this study, the term “developer” is used as a shorthand expression to describe anyone who is obligated to pay impact fees, including builders, owners, or developers. Local governments charge impact fees for several reasons: 1) to obtain revenue to pay for some of the cost of new public facilities; 2) to implement a public policy that new development should pay a portion of the cost of facilities that it requires, and that existing development should not pay all of the cost of such facilities; and 3) to assure that adequate public facilities will be constructed to serve new development. Moses Lake Council Packet 1-14-20, Page 71 of 165 1 The impact fee ordinance may specify exemptions for low income housing and / or “broad public purposes”, but such exemptions must be paid for by public money, not other impact fees. The ordinance may specify if impact fees apply to changes in use, remodeling, etc. The impact fees that are described in this study do not include any other forms of developer contributions or exactions, such as: mitigation or voluntary payments authorized by SEPA (the State Environmental Policy Act, RCW 43.21C); system development charges for water and sewer authorized for utilities (RCW 35.92 for municipalities, 56.16 for sewer districts, and 57.08for water districts); local improvement districts or other special assessment districts; linkage fees; or land donations or fees in lieu of land. ORGANIZATION OF THE STUDY This impact fee rate study contains three chapters: • Chapter 1 provides a summary of impact fee rates for frequently used land use categories, and other introductory materials. • Chapter 2 summarizes the statutory requirements for developing impact fees, and describes the compliance with each requirement. • Chapter 3 presents impact fees for fire, and presents the formulas, variables and data that are the basis for the fees, and documents the calculation of the fees. The methodology is designed to comply with the requirements of Washington State Law. Moses Lake Council Packet 1-14-20, Page 72 of 165 2. Statutory Basis and Methodology This chapter summarizes the statutory requirements for impact fees in the State of Washington, and describes how the City of Moses Lake’s impact fees comply with the statutory requirements. STATUORY REQUIREMENTS FOR IMPACT FEES The Growth Management Act of 1990 (Chapter 17, Washington Laws, 1990, 1st Ex. Sess.) authorizes local governments in Washington to charge impact fees. RCW 82.02.050 – 82.02.090 contain the provisions of the Growth Management Act that authorize and describe the requirements for impact fees. The impact fees that are described in this study are not mitigation payments authorized by the State Environmental Policy Act (SEPA). There are several important differences between impact fees and SEPA mitigations. Three aspects of impact fees that are particularly noteworthy are: 1) the ability to charge for the cost of public facilities that are “system improvements” (i.e., that provide service to the community at large) as opposed to “project improvements” (which are “on-site” and provide service for a particular development); 2) the ability to charge small-scale development their proportionate share, whereas SEPA exempts small developments; and 3) the predictability and simplicity of impact fee rate schedules compared to the cost, time and uncertain outcome of SEPA reviews conducted on a case by case basis. The following synopsis of the most significant requirements of the law includes citations to the Revised Code of Washington as an aid to readers who wish to review the exact language of the statutes. Types of Public Facilities Four types of public facilities can be the subject of impact fees: 1) public transportation and roads: 2) publicly owned parks, open space and recreation facilities; 3) school facilities; and 4) fire protection facilities (in jurisdictions such as Moses Lake that are not part of a fire district). RCW 82.02.050(2) and (4), and RCW 82.02.090(7) Types of Improvements Impact fees can be spent on “system improvements” (which are typically outside the development), as opposed to “project improvements” (which are typically provided by the developer on-site within the development). RCW 82.02.050(3)(a) and RCW 82.02.090(6) and (9) Moses Lake Council Packet 1-14-20, Page 73 of 165 Benefit to Development Impact fees must be limited to system improvements that are reasonably related to, and which will benefit new development. RCW 82.02.050(3)(a) and (c). Local governments must establish reasonable service areas (one area, or more than one, as determined to be reasonable by the local government), and local governments must develop impact fee rate categories for various land uses. RCW 82.02.060(6) Proportionate Share Impact fees cannot exceed the development's proportionate share of system improvements that are reasonably related to the new development. The impact fee amount shall be based on a formula (or other method of calculating the fee) that determines the proportionate share. RCW 82.02.050(3)(b) and RCW 82.02.060(1) Reductions of Impact Fee Amounts Impact fees rates must be adjusted to account for other revenues that the development pays (if such payments are earmarked for or proratable to particular system improvements). RCW 82.02.050(1)(c) and (2) and RCW 82.02.060(1)(b) Impact fees may be credited for the value of dedicated land, improvements or construction provided by the developer (if such facilities are in the adopted CFP as system improvements eligible for impact fees and are required as a condition of development approval). RCW 82.02.060(3) Exemptions from Impact Fees Local governments have the discretion to provide exemptions from impact fees for low-income housing and other "broad public purpose" development, but all such exempt fees must be paid from public funds (other than impact fee accounts). RCW 82.02.060(2) Developer Options Developers who are liable for impact fees can submit data and or/analysis to demonstrate that the impacts of the proposed development are less than the impacts calculated in this rate study. RCW 82.02.060(5). Developers can pay impact fees under protest and appeal impact fee calculations. RCW 82.02.060(4) and RCW 82.02.070(4) and (5). The developer can obtain a refund of the impact fees if the local government fails to expend or obligate the impact fee payments within 10 years, or terminates the impact fee requirement, or the developer does not proceed with the development (and creates no impacts). RCW 82.02.080 Capital Facilities Plans Impact fees must be expended on public facilities in a capital facilities plan (CFP) element or used to reimburse the government for the unused capacity of existing facilities. The CFP must conform to the Growth Management Act of 1990, and must identify existing deficiencies in facility capacity for current development, capacity of existing facilities available for new development, and additional facility capacity needed for new development. RCW 82.02.050(4), RCW 82.02.060(7), and RCW 82.02.070(2) Moses Lake Council Packet 1-14-20, Page 74 of 165 New Versus Existing Facilities Impact fees can be charged for new public facilities (RCW 82.02.060(1)(a) and for the unused capacity of existing public facilities (RCW 82.02.060(7) subject to the proportionate share imitation described above. Accounting Requirements The local government must separate the impact fees from other monies, expend or obligate the money on CFP projects within 10 years, and prepare annual reports of collections and expenditures. RCW 82.02.070(1)-(3) Compliance With Statutory Requirements for Impact Fees Many of the statutory requirements listed above are fulfilled in Chapters 3 of this study that present the calculation of each type of impact fee. Some of the statutory requirements are fulfilled in other ways, as described below. Types of Public Facilities This study contains impact fees for fire protection facilities, which is one of the four types of public facilities authorized by statute: transportation, parks and fire. In general, local governments that are authorized to charge impact fees are responsible for specific public facilities for which they may charge such fees. The City of Moses Lake is legally and financially responsible for the fire facilities it owns and operates within its jurisdiction. In no case may a local government charge impact fees for private facilities, but it may charge impact fees for some public facilities that it does not administer if such facilities are "owned or operated by government entities" (RCW 82.02.090 (7). Types of Improvements The impact fees in this study are based on system improvements that are described in Chapter 3 for fire protection facility impact fees. No project improvements are included in this study. The public facilities that can be paid for by impact fees are "system improvements” (which are typically outside the development), and "designed to provide service to service areas within the community at large" as provided in RCW 82.02.050(9)), as opposed to "project improvements" (which are typically provided by the developer on-site within the development or adjacent to the development), and "designed to provide service for a development project, and that are necessary for the use and convenience of the occupants or users of the project" as provided in RCW 82.02.050(6). The capital improvements costs contained in Chapter 3 complies with these requirements. Impact fee revenue can be used for the capital cost of public facilities. Impact fees cannot be used for operating or maintenance expenses. The cost of public facilities that can be paid for by impact fees include design studies, engineering, land surveys, land and right of way acquisition, engineering, permitting, financing, administrative expenses, construction, applicable mitigation costs, and capital equipment pertaining to capital improvements. Moses Lake Council Packet 1-14-20, Page 75 of 165 Benefit to Development, Proportionate Share and Reductions of Fee Amounts The law imposes three tests of the benefit provided to development by impact fees: 1) proportionate share, 2) reasonably related to need, and 3) reasonably related to expenditure (RCW 80.20.050(3)). In addition, the law requires the designation of one or more service areas (RCW 82.02.060(6) 1. Proportionate Share. First, the "proportionate share" requirement means that impact fees can be charged only for the portion of the cost of public facilities that is "reasonably related" to new development. In other words, impact fees cannot be charged to pay for the cost of reducing or eliminating efficiencies in existing facilities. Second, there are several important implications of the proportionate share requirement that are not specifically addressed in the law, but which follow directly from the law: • Costs of facilities that will benefit new development and existing users must be apportioned between the two groups in determining the amount of the fee. This can be accomplished in either of two ways: (1) by allocating the total cost between new and existing users, or (2) calculating the cost per unit and applying the cost only to new development when calculating impact fees. • Impact fees that recover the costs of existing unused capacity should be based on the government's actual cost. Carrying costs may be added to reflect the government's actual or imputed interest expense. The third aspect of the proportionate share requirement is its relationship to the requirement to provide adjustments and credits to impact fees, where appropriate. These requirements ensure that the amount of the impact fee does not exceed the proportionate share. • The "adjustments" requirement reduces the impact fee to account for past and future payments of other revenues (if such payments are earmarked for, or proratable to, the system improvements that are needed to serve new growth). Each impact fee calculated in this study includes an adjustment that accounts for any other revenue that is paid by new development and used by the City to pay for a portion of growth’s proportionate share of costs. This adjustment is in response to the limitations in RCW 82.02.060 (1)(b) and RCW 82.02.050(2). • The "credit" requirement reduces impact fees by the value of dedicated land, improvements or construction provided by the developer (if such facilities are in the adopted CFP, identified as the projects for which impact fees are collected, and are required as a condition of development approval). The law does not prohibit a local government from establishing reasonable constraints on determining credits. For example, the location of dedicated land and the quality and design of donated street, park or fire public facilities Moses Lake Council Packet 1-14-20, Page 76 of 165 3. Reasonably Related to Need. There are many ways to fulfill the requirement that impact fees be "reasonably related" to the development's need for public facilities, including personal use and use by others in the family or business enterprise (direct benefit), use by persons or organizations who provide goods or services to the fee-paying property or are customers or visitors at the fee paying property (indirect benefit), and geographical proximity (presumed benefit). These measures of relatedness are implemented by the following techniques: • Impact fees are charged to properties which need (i.e., benefit from) new public facilities. The City of Moses Lake provides its infrastructure to all kinds of property throughout the City, therefore impact fees have been calculated for all types of property. • The relative needs of different types of growth are considered in establishing fee amounts (i.e., different impact values for different types of land use). Chapter 3 uses different emergency response rates for each type of land use. • Feepayers can pay a smaller fee if they demonstrate that their development will have less impact than is presumed in the impact fee schedule calculation for their property classification. Such reduced needs must be permanent and enforceable (i.e., via land use restrictions). 3. Reasonably Related to Expenditures. Two provisions of Moses Lake’s impact fee ordinance comply with the requirement that expenditures be "reasonably related" to the development that paid the impact fee. First, the requirement that fee revenue must be earmarked for specific uses related to public facilities ensures that expenditures are on specific projects, the benefit of which has been demonstrated in determining the need for the projects and the portion of the cost of needed projects that are eligible for impact fees as described in this study. Second, impact fee revenue must be expended or obligated within 10 years, thus requiring the impact fees to be used to benefit to the feepayer and not held by the City. 4. Service Areas for Impact Fees Impact fees in some jurisdictions are collected and expended within service areas that are smaller than the jurisdiction that is collecting the fees. Impact fees are not required to use multiple service areas unless such “zones” are necessary to establish the relationship between the fee and the development. Because of the size of the City of Moses Lake and the accessibility of its fire systems to all property within the City, Moses Lake’s fire systems serve the entire City, therefore the impact fees are based on a single service area corresponding to the boundaries of the City of Moses Lake. Moses Lake Council Packet 1-14-20, Page 77 of 165 Exemptions The City’s impact fee ordinance addresses the subject of exemptions. Exemptions do not affect the impact fee rates calculated in this study because of the statutory requirement that any exempted impact fee must be paid from other public funds. As a result, there is no increase in impact fee rates to make up for the exemption because there is no net loss to the impact fee account as a result of the exemption. Developer Options A developer who is liable for impact fees has several options regarding impact fees. The developer can submit data and or/analysis to demonstrate that the impacts of the proposed development are less than the impacts calculated in this rate study. The developer can appeal the impact fee calculation by the City of Moses Lake. If the local government fails to expend the impact fee payments within 10 years of receipt of such payments, the developer can obtain a refund of the impact fees. The developer can also obtain a refund if the development does not proceed and no impacts are created. All of these provisions are addressed in the City’s impact fee ordinance, and none of them affect the calculation of impact fee rates in this study. Capital Facilities Plan There are references in RCW to the “capital facilities plan” (CFP) as the basis for projects that are eligible for funding by impact fees. Cities often adopt documents with different titles that fulfill the requirements of RCW 82.02.050 et. seq. pertaining to a “capital facilities plan”. The Capital Facilities Plan Element of the City’s Comprehensive Plan fulfill the requirements in RCW, and are considered to be the “capital facilities plan” (CFP) for the purpose of this impact fee rate study. In addition, the City’s Capital Investment Program (CIP) section of the City’s Budget provides up-to date and detailed information about the projects in the CFP. The Fire Department also produces an annual update of capital improvements within the fire department as part of the department’s annual report. The requirement to identify existing deficiencies, capacity available for new development, and additional public facility capacity needed for new development is determined by analyzing levels of service for each type of public facility. Chapter 3 provides this analysis for fire impact. New Versus Existing Facilities, Accounting Requirements Impact fees must be spent on capital projects contained in an adopted capital facilities plan, or they can be used to reimburse the government for the unused capacity of existing facilities. Impact fee payments that are not expended or obligated within 10 years must be refunded unless the City Council makes a written finding that an extraordinary and compelling reason exists to hold the fees for longer than 10 years. In order to verify these two requirements, impact fee revenues must be deposited into separate accounts of the government, and annual reports must describe impact fee revenue and expenditures. These requirements are addressed by Moses Lake’s impact fee ordinance, and are not factors in the impact fee calculations in this study. Moses Lake Council Packet 1-14-20, Page 78 of 165 Data Sources The data in this study of impact fees in Moses Lake, Washington was provided by the City of Moses Lake, unless a different source is specifically cited. Data Rounding The data in this study was prepared using computer spreadsheet software. In some tables in this study, there may be very small variations from the results that would be obtained using a calculator to compute the same data. The reason for these insignificant differences is that the spreadsheet software was allowed to calculate results to more places after the decimal than is reported in the tables of these reports. The calculation to extra places after the decimal increases the accuracy of the end results, but causes occasional minor differences due to rounding of data that appears in this study. Moses Lake Council Packet 1-14-20, Page 79 of 165 3. FIRE IMPACT FEES Impact fees for fire protection facilities begin with an inventory of fire apparatus and stations and the number of emergencies they responded to. Next is an analysis of the capital cost of fire protection apparatus and stations including calculation of the capital cost per response. The emergency responses are summarized according to the types of land uses that received responses, and incident rates are calculated to quantify the average number of emergency responses per unit of development for each type of land use. The costs per response and the response incident rates are used to calculate the number and cost of responses to fire incidents and to BLS incidents (basic life support medical responses) at each type of land use. The fire and BLS cost per unit of development are combined to calculate the total cost per unit of development. The total cost is adjusted for payments of other and the result is the fire impact fee rates for the City of Moses Lake. These steps are described below in the formulas, descriptions of variables, tables of data, and explanation of calculations of fire impact fees. The need for fire protection facilities is influenced by a variety of factors, such as response time, call loads, geographical area, topographic and manmade barriers, and performance standards established by the Moses Lake City Council, and the National Commission on the Accreditation of Ambulance Services. For the purpose of quantifying the need for fire and BLS apparatus and stations to serve growth this study uses the ratio of apparatus and stations to incidents. The current ratio provides acceptable levels of service. As growth occurs, more incidents will occur, therefore more apparatus and stations will be needed to maintain standards. Formula F-1: Inventory and Emergency Responses The City of Moses Lake owns a variety of fire apparatus (i.e., fire engines, ladder truck, medic units, etc.). Each vehicle responds to many emergencies. The average number of emergency responses per apparatus is used as one element in calculating the cost per emergency response. F-1. Emergency Responses ÷ Fire Apparatus = Responses per Apparatus There are three variables that require explanation: (A) fire apparatus, (B) emergency responses, and (C) fire stations. Variable (A): Fire Apparatus The term “fire apparatus” applies to vehicles that the City of Moses Lake uses for two categories of emergency responses: fire emergencies and medical emergencies. The medical emergencies will be referred to in this study as “ALS” Moses Lake Council Packet 1-14-20, Page 80 of 165 because the Moses Lake Fire Department provides Advanced Life Support (ALS) responses and is typically the first responder to medical emergencies in Moses Lake. Table 1 contains a list of each type of primary fire apparatus and the number of each type. Moses Lake also has several older “reserve” apparatus that are dispatched as needed when a primary apparatus is out of service for repairs or maintenance. The reserve apparatus are not routinely dispatched and are excluded from the impact fee analysis because they are not used frequently enough to have a material effect on the cost of providing fire protection facilities. Variable (B): Emergency Responses The annual responses for each apparatus type is shown in Table 1. The average number of emergency responses for each type of apparatus is calculated by dividing the number of annual emergency responses by the number of units making those runs. In many cases, more than one apparatus is dispatched to an emergency incident. The number and type of apparatus dispatched to each incident varies depending on the type and severity of the incident. During 2015, Moses Lake’s 4 primary response apparatus were dispatched a total of 5,413 times to 3,895 emergency incidents (many times the seriousness of an incident requires that more than one unit respond). Using the existing ratio of apparatus and station space per incident maintains the current level of service and avoids any existing deficiency or unused reserve capacity. This approach satisfies the requirements of RCW 82.02.050(4) to determine whether or not there are any existing deficiencies or reserve capacity in order to ensure that impact fees are not charged for any deficiencies or reserve capacity (other than reimbursement fees). TABLE 1: Fire Protection Apparatus Inventory Type of Apparatus Primary Apparatus Inventory Annual Emergency Responses Average Emergency Response Per unit Engine 4 1,100 275 Ladder 1 411 411 Medic Unit 5 3,442 688 Brush Truck 2 38 19 Squad 1 58 58 Rescue 1 10 10 Tender 2 12 6 Staff Vehicles 4 488 122 Other2 5 8 2 ---------------------------------------------------------------------- 2 Other apparatus and equipment include 3 specialized trailers, a boat, and a support unit. Moses Lake Council Packet 1-14-20, Page 81 of 165 Variable (C): Fire Stations The City of Moses Lake provides fire and ALS services out of 2 stations. Table 2 lists the stations and the square footage of fire stations and support facilities. Table 12 also shows the total fire and medical incidents, and the average square footage of fire station per incident (calculated by dividing the total square footage of all fire stations by the number of annual fire and medical incidents). The total incidents from stations (Table 2) is less than the total incidents from apparatus (Table 1) because more than one apparatus responds to many calls, but often one station is the source of all the apparatus responding to a call. Table2: Fire and Medical Building Inventory Station Fire Station Inventory (Square Feet) Annual Incidents Square Feet Per Incident 1-E 3rd AVE 21,200 2294 9.25 2-W Broadway AVE 7,112 1148 6.2 Training Facility-E 3rd AVE 2,262 0 0 Total 30,574 3,442 8.88 Formula F-2: Annual Cost Per Apparatus Formulas F-2 through F-4 are needed to calculate the apparatus cost per fire incident. The first step in this calculation is to identify and annualize the cost of each type of apparatus using formula F-2. The capital cost per apparatus is based on the cost of primary response apparatus and major support equipment. The annualized capital cost per apparatus is determined by dividing the capital cost of each type of apparatus by its useful life: F-2. Fire Apparatus Cost ÷ Useful Life = Annual Cost per Apparatus There are two variables that require explanation: (D) fire apparatus cost, and (E) useful life. Variable (D): Fire Apparatus Cost Table 3 shows the annualized cost for each type of primary apparatus listed in Table 1. The cost per apparatus includes the vehicle, fire and ALS equipment, and communication equipment. The apparatus and equipment costs in Table 3 represent current costs to purchase a new fully equipped apparatus. Moses Lake Council Packet 1-14-20, Page 82 of 165 Variable (E): Useful Life Table 3 also shows the number of years of useful life of each type of apparatus. The annualized cost is calculated by dividing each apparatus cost by the useful life of that apparatus. Table 3: Annualized Apparatus Cost Type of Apparatus Total Cost per Apparatus Useful Life of Component (Years) Annual Cost (Column 2 / Column 3) Engine $655,000 20 $32,750.00 Ladder $1,400,000 20 $70,000.00 Medic Unit $212,000 7 $30,286.00 Brush Truck $165,000 20 $8,250.00 Squad $220,000 25 $8,800.00 Rescue $200,000 20 $6,200.00 Tender $245,000 20 $12,250.00 Staff Vehicles $55,000 10 $5,500.00 Other2 $40,000 10 $4,000.00 Formula F-3: Cost Per Apparatus Per Fire or Medical Incident The second step in calculating the apparatus cost per fire incident is formula F-3. The capital cost per fire or medical incident is calculated for each apparatus by dividing the annualized cost per apparatus by the total annual incidents (both fire and medical) each type of apparatus responds to. Each type of apparatus is analyzed separately because the number and type of apparatus responding to an incident varies depending on the type and severity of the incident. F-3. Annual Cost Per Apparatus ÷ Annual Responses Per Apparatus = Annual Apparatus Cost Per Response There are no new variables used in formula F-3. Both variables were developed in previous formulas. Moses Lake Council Packet 1-14-20, Page 83 of 165 In Table 4 the cost per emergency response is calculated for each type of apparatus. Table 4 shows the annualized cost of one of each type of apparatus (from Table 3) and the average annual emergency responses for each type of apparatus (from Table 1). Each apparatus cost per response is calculated by dividing the annualized cost of that type of apparatus by the total number of annual responses for the same type of apparatus. Table 4: Apparatus Cost per Response Type of Apparatus Annual Apparatus Cost Average Annual Responses per Apparatus Apparatus Cost per Response (column 2 / column 3) Engine $32,750.00 275 $119.09 Ladder $70,000.00 411 $170.32 Medic Unit $30,286.00 3,442 $8.80 Brush Truck $8,250.00 19 $434.21 Squad $8,800.00 58 $151.72 Rescue $6,200.00 10 $620.00 Tender $12,250.00 6 $2,041.66 Staff Vehicles $5,500.00 122 $45.08 Other $4,000.00 2 $2,000.00 Formula F-4: Total Apparatus Cost Per Fire Incident The third step in calculating the apparatus cost per fire incident is formula F-4. The total apparatus cost per fire incident is calculated by multiplying the apparatus cost per response by the percent of fire incidents each type of apparatus responds to. This calculation accounts for the fact that multiple apparatus are dispatched to many incidents, and that some apparatus are only dispatched to specific types of incidents. The result of this calculation is a weighted average total cost of apparatus per fire incident. F-4. Apparatus Cost Per Response x Apparatus Percent of Fire Responses = Apparatus Cost Per Fire Incident There is one new variable that requires explanation: (F) apparatus percent of fire responses. Variable (F): Apparatus Percent of Fire Responses The next step in calculating the apparatus cost per fire incident is to identify the annual number of incidents that Moses Lake’s Fire Department responds to. Emergency incidents are separated into two broad categories: Fire and medical. Table 5 lists the annual number of fire and medical incidents responded to during 2015. Moses Lake Council Packet 1-14-20, Page 84 of 165 Table 5: Annual Fire and Medical Incidents Type of Incident Average Annual Emergency Incidents Fire 546 Medical 2,896 Different types of fire emergencies need different types or combinations of apparatus. As a result, the usage of apparatus varies among the types of apparatus. This variance is an important factor in determining the cost per incident. The percent of fire responses by each type of apparatus is calculated in Table 6 by dividing the annual fire responses for each type of apparatus by the total annual fire incidents from Table 5. The result of the calculation in Table 6 is the percent of fire incidents responded to by each type of apparatus. For example, engines provided 672 responses to the 546 fire incidents, equaling 122% of all fire incidents. Another way to understand this data is that one average fire incident involved 1.22 engines, therefore the cost of responding to a fire incident includes 122% of the cost of an engine. Other apparatus typically respond to only some of the incidents. Tenders for example, respond to 1.4% of fire emergency incidents, therefore the cost to respond to the average fire incident includes 1.4% of a ladder truck. Table 6: Fire Incident Response By Type of Apparatus Type of Apparatus Total Annual Fire Related Responses for Apparatus Annual Fire Related Incidents Percent of Annual Fire Related Incidents Dispatched to (Col 2/488) Engine 672 546 122% Ladder 411 546 75.27% Medic Unit 508 546 93% Brush Truck 38 546 6.9% Squad 58 546 10.6% Rescue 10 546 1.83% Tender 12 546 2.2% Staff Vehicles 488 546 89.37% Other 10 546 1.83% TOTAL 2,245 546 400% The final step in calculating the apparatus cost per fire incident is shown in Table 7. The cost per response for each type of apparatus (from Table 4) is multiplied by the percent of fire incidents dispatched to (from Table 6) resulting in the total apparatus cost per fire incident. Moses Lake Council Packet 1-14-20, Page 85 of 165 The “bottom line” in Table 7 is the apparatus cost per fire incident of $410.66. In other words, every fire incident “uses up” $410.66 worth of apparatus. Table 7: Total Apparatus Cost Per Fire Incident Type of Apparatus Apparatus Cost per Response Annual Percent of Fire Incidents Dispatched to Apparatus Cost per Fire Incident (Col 1 x Col 2) Engine $119.09 122% $145.29 Ladder $170.32 75.27% $128.20 Medic Unit $8.80 93% $8.18 Brush Truck $434.21 6.9% $29.96 Squad $151.72 10.6% $16.08 Rescue $620.00 1.83% $11.35 Tender $2,041.66 2.2% $44.92 Staff Vehicles $28.94 89.37% $25.86 Other $45.08 1.83% $0.82 TOTAL $410.66 Formula F-5: Annual Station Cost The annual station cost is determined by dividing the station capital cost by its useful life. F-5. Station Cost Per Square Foot ÷ Useful Life = Annual Station Cost Per Square Foot There is one new variable that requires explanation: (G) station cost per square foot. Variable (G): Station Cost per Square Foot Table 8 calculates the average annualized fire station cost per square foot. The cost per square foot is based on the average cost of a station with similar size and capability to Fire Station 2. The current average cost of construction for a station of this size, with land, furnishings, equipment, and lending costs is approximately $4,100,000.00 The useful life represents the length of time the station will last before it needs to be replaced. The annualized cost is calculated by dividing the estimated cost per square foot by the average useful life. The “bottom line” of Table 8 is an annualized station cost of $ 8.45 per square foot. Moses Lake Council Packet 1-14-20, Page 86 of 165 Table 8: Annualized Station Cost per Square Foot Type of Cost Cost Per Square Foot Building Useful Life (Years) Annual Building Cost per Square Foot (col 2 / col3 3) Land $7.50 Building, Furnishings, & Equipment $400.00 Cost of Borrowing $50.00 TOTAL $457.50 50 $9.15 Formula F-6: Station Cost Per Fire and Medical Incident The station cost per fire and BLS incident is calculated by multiplying the annual station cost per square foot by the station square feet per fire and BLS incident. F-6. Annual Station Cost Per Square Foot x Station Square Feet Per Fire and Medical Incident = Annual Station Cost Per Fire and Medical Incident There are no new variables used in formula F-6. Both variables were developed in previous formulas. This calculation is shown in Table 9: the station cost per square foot (from Table 8) is multiplied times the station square feet per incident (from Table 2). The result is the station cost of $71.83 per fire and BLS incident. In other words, each fire and BLS incident “uses up” $71.83 worth of fire station. Moses Lake Council Packet 1-14-20, Page 87 of 165 Table 9: Station Cost Per Fire and Medical Incident Annual Building Cost per Square Foot Square Feet per Incident Annualized Building Cost per Fire and Rescue Incident (col 1 x col 2) $9.15 7.85 $71.83 Formula F-7: Annual Fire Incident Rate Per Unit Of Development The annual fire incident rate per unit of development (i.e., dwelling unit or square foot of non- residential development) is calculated by dividing the total annual fire incidents to each type of land use by the number of dwelling units or square feet of non-residential development for that type of land use. F-7. Annual Emergency Fire Incidents at Each Type of Land Use ÷ Number of Dwelling Units or Square Feet of Each Type of Land Use = Annual Fire Incidents Per Unit of Development There are two variables that require explanation: (H) annual emergency fire incidents at land use types, and (I) number of dwelling units or square feet. Variable (H): Annual Emergency Fire Incidents at Land Use Types The emergency incident data comes from the City’s dispatch records, data showing dwelling units comes from the OFM State of Washington Postcensal Estimates of Housing Units, 2017, and the square feet of non-residential development is from the Fire Department risk management database. The database identifies each incident by occupancy type such as residences, office or retail. The land use categories in this study were created by combining the numerous occupancy types into broad land use categories for impact fees, such as residences, office, retail, restaurant and industrial/manufacturing. During 2018, Moses Lake’s Fire Department responded to 546 fire incidents. Of the 546 fire incidents, 464 were traceable to a type of development (i.e., the incident occurred at a specific property address, such as a residence or business) or they were traffic-related (occurred on a roadway). Of the 546 fire incidents analyzed, 386 occurred at a specific property and 78 were traffic related. The records for the remaining 82 fire incidents did not allow the incident to be traced to either a specific land use or a traffic-related incident, therefore these 82 incidents are apportioned to Moses Lake Council Packet 1-14-20, Page 88 of 165 land uses and traffic on the same basis as the 464 incidents that are traceable. Table 10 shows the allocation of the 82 incidents without land use designations to the property and traffic categories using the same percentage as the 464 incidents for which a location was identifiable. Thus 58 of the 82 fire incidents were allocated the same as the incidents at identifiable lands uses, and the other 24 fire incidents were allocated the same as the traffic-related incidents. Table 10: Fire Incidents Incident Location Incidents Identifiable by Location Incidents Not Identifiable by Location Total Incidents Total 464 82 546 At Properties, percent of total 386 70.7% 58 10.6% 444 In Roads & Streets percent of total 78 14.3% 24 4.4% 102 There are four tables on the following pages that present the allocation of fire incidents among types of land use: Table 11 shows the fire incidents that were identifiable by land use type, Table 12 shows the fire incidents that were traffic related. Table 13 combines the fire incident data (land use and traffic), and Table 14 shows the fire incident rate per unit of development. Table 11 shows the distribution of the 464 fire incidents that are traceable to a land use along with the percent distribution of these 464 incidents. In column 4 the total fire incidents to land use (464 traceable + 58 allocated) is allocated among the land use types using the percent distribution column. The result is the total annual fire incidents at each of the land use types. Moses Lake Council Packet 1-14-20, Page 89 of 165 Table 11: Fire Incidents at Specific Land Uses Land Use Annual Fire Incidents Identifiable to Land Use Percent of All Fire Incidents Identifiable to Land Use Allocate 82 Incidents to Land Uses (Col 2 x 82) Residential 184 33.7% 27 Non-Residential Hotel/Motel/Resort 20 3.7% 3 Medical (Skilled Nursing &LC) 27 5% 4 Hospital & Clinic 6 1% 1 Office 11 2% 2 Retail 72 13.2% 11 Restaurants 11 2% 2 Industrial 19 3.5% 3 Institutions: Churches / non- profit 3 0.5% 0 Education 33 6% 5 Total 386 58 Variable (I): Number of Dwelling Units or Square Feet The traffic-related fire incidents are allocated to land uses on the basis of the amount of traffic generated by each type of land use. In Table 12, the number of dwelling units and square feet of non-residential construction in the City of Moses Lake is multiplied times the number of trips that are generated by each land use type as reported in the 8th Edition of Trip Generation by the Institute of Transportation Engineers (ITE). (The trip rates are one-half of ITE’s trip rates in order to account for the trips each land use generates while excluding the “return” trip). The result is the total trips associated with each land use type. The percent of trips associated with each land use type is calculated from the total of all trips. In the final calculation in Table 12 the total 102 annual fire incidents that are traffic-related (78 traceable + 24 allocated) is allocated among the land use types using the percent of trips generated. Moses Lake Council Packet 1-14-20, Page 90 of 165 Table 12: Traffic Related Fire Incidents (Allocated to Land Uses) Land Use Moses Lake Units of Development ITE Trip Generation Rate / 2 per D.U. or Per Unit of Development Total Trips (col 1 x col2) Percent of Trips Generated Annual Traffic Related Fire Incidents per Unit of Development (Col 5 x 78) Residential 9,200 d.u 4.23228 38,937 29.16% 23 Non-Residential Hotel/Motel/Resort 732,000 Sq.Ft 0.00446 3,265 2.5% 2 Medical Care Facility 701,099 Sq. Ft .00825 5,784 4.3% 3 Commercial: Office 2,790,000SqFt 0.00551 15,373 11.54% 9 Retail 1,723,000 SqFt 0.02147 36,993 27.7% 22 Restaurants 152,200 SqFt 0.06358 9,677 7.2% 6 Industrial 4,900,255 SqFt 0.00349 17,102 12.8% 9 Institutions: Churches / non- profit 345,000SqFt 0.00456 1,573 1.2% 1 Education 747,920SqFt 0.00645 4,824 3.6% 3 Total 133,528 100% 78 Moses Lake Council Packet 1-14-20, Page 91 of 165 Table 13 summarizes the results of the analysis of fire incidents. The total annual fire incidents is a combination of the fire incidents allocated among direct responses to land use categories (from Table 11) and the allocation of traffic related incidents based on trip generation rates (from Table 12). Table 13: Total Annual Fire Incidents by Land Use Land Use Annual Fire Incidents Direct to Land Use Annual Traffic Related Fire Incidents by Land Use Total Annual Fire Incidents by Land Use Residential 184 23 207 Non-Residential Hotel/Motel/Resort 20 2 22 Medical Care Facility 33 3 36 Commercial: Office 11 9 20 Retail 72 22 94 Restaurants 11 6 17 Industrial 19 9 28 Institutions: Churches / non-profit 3 1 4 Education 33 3 36 Total 386 78 464 The final step in determining the annual fire incident rate per unit of development is shown in Table 14. The total annual fire incidents for each type of land use (from Table 13) are divided by the number of dwelling units or square feet of structures to calculate the annual incident rate per dwelling unit or square foot. The units of development are the same as was used to determine traffic-related incidents (see Table 12). The results in Table 14 show how many times an average unit of development has a fire incident to which the City of Moses Lake responds. For example, a residence has an average of 0.0257fire-related incidents per year. This is the same as saying that 2.57% of residential occupancies have a fire-related incident in a year. Moses Lake Council Packet 1-14-20, Page 92 of 165 Table 14: Annual Fire Incidents By Land Use Land Use Total Annual Fire Incidents to Land Use Units of Development Fire Incidents per Development Residential 207 9.200 d.u 0.0225 per dwelling unit Non-Residential Hotel/Motel/Resort 22 732,000 Sq.Ft 0.00003 per sq ft Medical Care Facility 36 701,099 Sq. Ft 0.000050 per sq ft Commercial: Office 20 2,790,000SqFt 0.000009500 per sq ft Retail 94 1,723,000 Sq Ft 0.0000545 per sq ft Restaurants 17 152,200 Sq Ft 0.0000111 per sq ft Industrial 28 4,900.255 SqFt 0.0000057 per sq ft Institutions: Churches / non- profit 4 345,000SqFt 0.0000115 per sq ft Education 36 747,920SqFt 0.00004813 per sq ft Total 464 Formula F-8: Fire Incident Capital Cost Per Unit Of Development The capital cost of fire incidents per unit of development is determined by multiplying the annual fire incidents per unit of development (from Table 14) times the annual capital cost per fire incident of each type of apparatus (from Table 7) and fire station (from Table 8), then multiplying that result times the useful life of the apparatus or fire station.4 F-8. Annual Fire Incidents Per Unit Of Development x Annual Cost Per Fire Incident x Useful Life Of Apparatus or Station = Fire Incident Capital Cost Per Unit Of Development There are no new variables used in formula F-8. All three variables were developed in previous formulas. 4Some fire impact fees are calculated for the economic life of the property paying the impact fee, rather than the useful life of the apparatus and stations that provide the fire protection. Both methods meet the legal requirements for impact fees. The method used in this rate study charges impact fees for the first of each type of apparatus and station needed for new development, but subsequent replacements of apparatus and stations are funded by other revenues available to the City of Moses Lake. Moses Lake Council Packet 1-14-20, Page 93 of 165 In the tables on the following pages, each fire incident rate (from Table 14) is multiplied by the annual capital cost per fire incident. The result is then multiplied times the useful life of the apparatus or station to calculate the capital cost per unit of development for each type of apparatus and station. For example, residential units average 0.023 fire incidents per year (i.e., 2.3% of a fire incident per year). In Table 15, multiplying this incident rate times the annual capital cost of an engine ($145.29 from Table 7) per incident indicates a cost of $2.38 per dwelling unit to provide it with fire engines for one year. Since an engine lasts 20 years, the residential dwelling needs to pay for 20 times the annual rate, for a total of $65.40. Table 15: Engine Cost of Responses to Fire Incidents at Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Engine Cost @ $145.29 per incident Engine Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $3.27 $65.40 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $0.004 $0.08 Medical Care Facility Per Sq Ft 0.000060 per sq ft $0.009 $0.18 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.01 $0.20 Retail Per Sq Ft 0.0000354 per sq ft $0.005 $0.10 Restaurants Per Sq Ft 0.0000107 per sq ft $0.00121 $0.04 Industrial Per Sq Ft 0.000007537 per sq ft $.0001 $.02 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $0.01 $0.20 Education Per Sq Ft 0.00003877 per sq ft $0.006 $0.12 $3.32 $66.34 Moses Lake Council Packet 1-14-20, Page 94 of 165 Table 16 calculates the capital cost per unit of development for a ladder truck responding to fire incidents. The incident rate (from Table 14) is multiplied by the ladder’s capital cost per fire incident ($128.20 from Table 7) The result is then multiplied times the 20-year useful life of a ladder truck to calculate the capital cost per unit of development for ladder trucks. Table 16: Ladder Cost of Responses to Fire Incidents at Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Ladder Cost @ $128.20 per incident Ladder Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $2.88 $57.60 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $0.004 $0.08 Medical Care Facility Per Sq Ft 0.000060 per sq ft $0.008 $0.16 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.001 $0.02 Retail Per Sq Ft 0.0000354 per sq ft $0.0045 $0.09 Restaurants Per Sq Ft 0.0000107 per sq ft $0.0014 $0.03 Industrial Per Sq Ft 0.000007537 per sq ft $.001 $.02 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $0.01 $0.20 Education Per Sq Ft 0.00003877 per sq ft $0.005 $0.10 $58.30 Moses Lake Council Packet 1-14-20, Page 95 of 165 Table 17 calculates the capital cost per unit of development for medic vehicles responding to fire incidents. The incident rate is multiplied by the unit capital cost per fire incident ($8.80 from Table 7). The result is then multiplied times the 7-year useful life of an aid vehicle to calculate the capital cost per unit of development for aid vehicles. Table 17: Medic Vehicle Cost of Responses to Fire Incidents at Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Medic Unit Cost @ $8.80per incident Medic Unit Life Cost @ 7 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $.20 $1.40 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $0.0003 $0.002 Medical Care Facility Per Sq Ft 0.000060 per sq ft $0.0005 $0.004 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.00009 $0.0006 Retail Per Sq Ft 0.0000354 per sq ft $0.0003 $0.002 Restaurants Per Sq Ft 0.0000107 per sq ft $0.00009 $0.0006 Industrial Per Sq Ft 0.000007537 per sq ft $.00007 $.0005 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $0.0007 $0.005 Education Per Sq Ft 0.00003877 per sq ft $0.0003 $0.002 $1.42 Moses Lake Council Packet 1-14-20, Page 96 of 165 Table 18 calculates the capital cost per unit of development for a brush truck’s response to fire incidents. The incident rate is multiplied by the brush truck’s capital cost per fire incident ($29.96 from Table 7). The result is then multiplied times the 20-year useful life of a brush truck to calculate the capital cost per unit of development for brush trucks. Table 18: Brush Truck Cost of Responses to Fire Incidents at Land Use Land Use Unit of Development Annual Fire Incident Rate Brush Truck Cost @$29.96 per Incident Brush Truck Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $0.67 $13.40 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $0.0009 $0.02 Medical Care Facility Per Sq Ft 0.000060 per sq ft $0.002 $0.04 Commercial: Office Per Sq Ft 0.000009677 per sq ft $0.0003 $0.006 Retail Per Sq Ft 0.0000354 per sq ft $0.001 0.02 Restaurants Per Sq Ft 0.0000107 per sq ft $0.0003 0.006 Industrial Per Sq Ft 0.000007537 per sq ft $0.000191 $0.004 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $0.002 $0.04 Education Per Sq Ft 0.00003877 per sq ft $0.001 $0.02 $13.56 Moses Lake Council Packet 1-14-20, Page 97 of 165 Table 19 calculates the capital cost per unit of development for staff vehicles responding to fire incidents. The incident rate is multiplied by the staff vehicle capital cost per fire incident ($28.94 from Table 7). The result is then multiplied times the 10 year useful life of a staff vehicle to calculate the capital cost per unit of development for staff vehicles. Table 19: Staff Vehicle Cost of Responses to Fire Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Staff Vehicle Cost @$28.94 per Incident Staff Vehicle Life Cost @ 7 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $0.65 $4.55 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $0.0009 $0.006 Medical Care Facility Per Sq Ft 0.000060 per sq ft $0.004 $0.03 Commercial: Office Per Sq Ft 0.000009677 per sq ft $0.0002 $0.001 Retail Per Sq Ft 0.0000354 per sq ft $0.001 0.007 Restaurants Per Sq Ft 0.0000107 per sq ft $0.0003 0.002 Industrial Per Sq Ft 0.000007537 per sq ft $0.0002 $0.001 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $0.002 $0.01 Education Per Sq Ft 0.00003877 per sq ft $0.001 $0.007 $4.60 Moses Lake Council Packet 1-14-20, Page 98 of 165 Table 20 calculates the capital cost per unit of development for Tender units responding to fire incidents. The incident rate is multiplied by the Tender capital cost per fire incident ($44.92 from Table 7). The result is then multiplied times the 20 year useful life of a Tender to calculate the capital cost per unit of development for Tenders. Table 20: Tender Cost of Responses to Fire Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Tender Cost @$44.92 per Incident Tender Vehicle Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $1.01 $20.20 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $.001 $.02 Medical Care Facility Per Sq Ft 0.000060 per sq ft $.003 $.06 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.0004 $.008 Retail Per Sq Ft 0.0000354 per sq ft $.002 $.04 Restaurants Per Sq Ft 0.0000107 per sq ft $.0005 $.01 Industrial Per Sq Ft 0.000007537 per sq ft $.0003 $.006 Institutions: Churches / non- profit Per Sq Ft 0.00007826 per sq ft $.004 $.08 Education Per Sq Ft 0.00003877 per sq ft $.002 $.04 $20.50 Moses Lake Council Packet 1-14-20, Page 99 of 165 Table 21 calculates the capital cost per unit of development for a Squad response to fire incidents. The incident rate is multiplied by the Squad’s capital cost per fire incident ($16.08 from Table 7). The result is then multiplied times the 20-year useful life of a Squad to calculate the capital cost per unit of development for Squad’s. Table 21: Squad Cost of Responses to Fire Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Squad Cost @$16.08 per Incident Squad Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $.36 $7.24 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $.0005 $.01 Medical Care Facility Per Sq Ft 0.000060 per sq ft $.001 $.02 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.0002 $.003 Retail Per Sq Ft 0.0000354 per sq ft Restaurants Per Sq Ft 0.0000107 per sq ft $.0006 $.01 Industrial Per Sq Ft 0.000007537 per sq ft $.0001 $.002 Institutions: Churches / non- profit Per Sq Ft 0.00007826 per sq ft $.01 $.03 Education Per Sq Ft 0.00003877 per sq ft $.006 $.01 $7.33 Moses Lake Council Packet 1-14-20, Page 100 of 165 Table 22 calculates the capital cost per unit of development for a Rescue Vehicle response to fire incidents. The incident rate is multiplied by the Rescue Vehicle capital cost per fire incident ($11.35 from Table 7). The result is then multiplied times the 20-year useful life of a Rescue Vehicle to calculate the capital cost per unit of development for Rescue Vehicles. Table 22: Rescue Vehicle Cost of Responses to Fire Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Rescue Vehicle Cost @$11.35 per Incident Rescue Vehicle Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $.26 $5.11 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $.0003 $.007 Medical Care Facility Per Sq Ft 0.000060 per sq ft $.0007 $.01 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.0001 $.002 Retail Per Sq Ft 0.0000354 per sq ft $.0004 $.008 Restaurants Per Sq Ft 0.0000107 per sq ft $.0001 $.002 Industrial Per Sq Ft 0.000007537 per sq ft $.0009 $.002 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $.0009 $.002 Education Per Sq Ft 0.00003877 per sq ft $.0004 $.009 $5.15 Moses Lake Council Packet 1-14-20, Page 101 of 165 Table 23 calculates the capital cost per unit of development for other apparatus / equipment’s response to fire incidents. The incident rate is multiplied by the other apparatus / equipment’s capital cost per fire incident ($45.08 from Table 7). The result is then multiplied times the 10- year useful life of other apparatus / equipment to calculate the capital cost per unit of development for apparatus / equipment. Table 23: Other Apparatus / Equipment Cost of Responses to Fire Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Other Apparatus / Equipment Cost @$45.08 per Incident Other Apparatus / Equipment Life Cost @ 10 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $1.01 $10.10 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $.001 $.03 Medical Care Facility Per Sq Ft 0.000060 per sq ft $.003 $.05 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.0004 $.009 Retail Per Sq Ft 0.0000354 per sq ft $.002 $.02 Restaurants Per Sq Ft 0.0000107 per sq ft $.0005 $.01 Industrial Per Sq Ft 0.000007537 per sq ft $.0003 $.003 Institutions: Churches / non-profit Per Sq Ft 0.00007826 per sq ft $.003 $.03 Education Per Sq Ft 0.00003877 per sq ft $.002 $.02 $10.27 Moses Lake Council Packet 1-14-20, Page 102 of 165 Table 24 calculates the capital cost per unit of development for Fire Stations that house fire apparatus. The fire incident rate (from Table 14) is multiplied by the fire station’s capital cost per fire and medical incident ($71.83 from Table 9). The result is then multiplied times the 50- year useful life of fire stations to calculate the capital cost per unit of development for fire stations. Table 24: Fire Station Cost of Responses to Fire Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Fire Station Cost @$71.83 per Incident Fire Station Life Cost @ 50 Year Life Residential Per Dwelling Unit 0.0225per dwelling unit $1.62 $80.81 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00003 per sq ft $.002 $.11 Medical Care Facility Per Sq Ft 0.000060 per sq ft $.004 $.22 Commercial: Office Per Sq Ft 0.000009677 per sq ft $.0007 $.03 Retail Per Sq Ft 0.0000354 per sq ft $.003 $.13 Restaurants Per Sq Ft 0.0000107 per sq ft $.0008 $.04 Industrial Per Sq Ft 0.000007537 per sq ft $.0005 $.03 Institutions: Churches / non- profit Per Sq Ft 0.00007826 per sq ft $.006 $.28 Education Per Sq Ft 0.00003877 per sq ft $.003 $.14 $81.79 Moses Lake Council Packet 1-14-20, Page 103 of 165 Table 25 combines the capital costs of all types of apparatus and station (from Tables 15 – 24) to show the capital cost of responses to fire incidents for one unit of residential development. Table 25: Example of Calculation of Total Capital Cost for a Residential Unit Cost Component Cost Source Engine $65.40 Table 15 Ladder $57.60 Table 16 Medic Unit $1.40 Table 17 Brush Truck $13.40 Table 18 Staff Vehicle $4.55 Table 19 Tender $20.20 Table 20 Squad $7.24 Table 21 Rescue $5.11 Table 22 Other Apparatus / Equipment $10.10 Table 23 Fire Station $80.81 Table 24 Total $265.81 This example is repeated for each land use to combine its capital costs of all types of apparatus and station in Table 26. Table 26: Total Capital Cost of Responses to Fire Incidents at Land Use Categories Land Use Unit of Development Fire Incident Life Cost of All Apparatus and Station Residential Per dwelling unit $265.81 Non-Residential Hotel/Motel/Resort Per square foot $0.37 Medical Care Facility Per square foot $0.77 Commercial: Office Per square foot $0.29 Retail Per square foot $0.43 Restaurants Per square foot $0.14 Industrial Per square foot $0.12 Institutions: Churches / non-profit Per square foot $0.86 Education Per square foot $0.47 Moses Lake Council Packet 1-14-20, Page 104 of 165 Formula F-9: Cost per Apparatus per fire or Medical Incident The annual cost per type of apparatus is the same as in Table 3. The cost per apparatus per fire or BLS incident is the same as Table 4. Formula F-10: Apparatus Cost per Medical Incident The calculation of apparatus cost per medical incident is similar to the calculation of costs per fire incident in Table 7. The total apparatus cost per medical incident is calculated by multiplying the cost per apparatus per response by the percent of medical incidents each type of apparatus responds to. This calculation accounts for the fact that multiple apparatus are dispatched to many incidents, and that some apparatus are only dispatched to specific types of incidents. The result of this calculation is a weighted average total cost of apparatus per medical incident. F-10. Apparatus Cost Per Response x Apparatus Percent of Medical Responses = Apparatus Cost Per Medical Incident There are no new variables used in formula F-10. The first variable is identical to the data from Table 4, and the second variable concerning the percent of medical responses works identically to Variable F, but using medical responses instead of fire responses. Different types of medical emergencies need different types or combinations of apparatus. As a result, the usage of apparatus varies among the types of apparatus. This variance is an important factor in determining the cost per incident. The percent of medical responses by each type of apparatus is calculated in Table 27 by dividing the annual medical responses for each type of apparatus by the total annual medical incidents from Table 5. The result of the calculation in Table 27 is the percent of medical incidents responded to by each type of apparatus. For example, engines provided 746 responses to the 3,407 medical incidents, equaling 21.9% of all medical incidents. Another way to understand this data is that one average medical incident involved 0.219 engines therefore the cost of responding to a medical incident includes 21.9% of the cost of an engine. Moses Lake Council Packet 1-14-20, Page 105 of 165 Table 27: Medical Incident Response by Type of Apparatus Type of Apparatus Total Annual Medical Responses for Apparatus Percent of Annual Medical Related Incidents Dispatched to (Col 2/ 2896) Engine 956 33% Ladder 87 3% Medic Unit 3,186 110% Brush Truck 0 0% Squad 12 0.004% Tender 0 0% Staff Vehicles 198 6.8% Other Apparatus & Equipment 22 0.8% Total 4,461 153.6% The final step in calculating the apparatus cost per medical incident is shown in Table 28. The cost per response for each type of apparatus (from Table 7) is multiplied by the percent of medical incidents dispatched to (from Table 27) resulting in the total apparatus cost per medical incident. The “bottom line” in Table 28 is the apparatus cost per medical incident of $73.77. Table 28: Total Apparatus Cost per Medical Incident Type of Apparatus Apparatus Cost Per Response Annual Percent of Medical Incidents Dispatched to Apparatus Cost per Medical Incident (Col2 * Col3) Engine $119.09 33% $39.30 Ladder $170.32 3% $5.11 Medic Unit $8.80 110% $9.68 Brush Truck $434.21 0% $0.00 Squad $151.72 0.004% $0.61 Rescue $620.00 0% $0.00 Tender $2,041.66 0% $0.00 Staff Vehicles $45.08 6.8% $3.07 Other Apparatus & Equipment $2,000.00 0.8% $16.00 Total $5,590.88 $73.77 Moses Lake Council Packet 1-14-20, Page 106 of 165 Formula F-11: Station Cost per Fire and Medical Incident The station cost per fire and medical incident is the same as Table 9. The formula is the same as Formula F-6. Formula F-12: Annual Medical Incident Rate per Unit of Development Formula F-12 is the same as Formula F-7. The annual medical incident rate per unit of development is calculated using the same methodology as described for fire incidents in Tables 10-14. There are no new variables used in formula F-12. The variables are identical to those used in Formula F-7, but using medical incidents instead of fire incidents. During 2015, Moses Lake’s Fire Department responded to 2,896 medical incidents. Of the 2,896 medical incidents 2,559 were traceable to a type of development (i.e., the incident occurred at a specific type of property such as a residence or business) or they were traffic- related (occurred on a roadway) and were included in the following detailed analysis of incidents to land uses. Of the 2,896 medical incidents analyzed 2,487 occurred at a specific property and 72 were traffic-related. The remaining 337 medical incidents were not traceable to either a specific property or a traffic-related incident, therefore these 337 are apportioned to land uses and traffic on the same basis as the 2,896 incidents that are traceable. Table 29 shows the allocation of the 337 incidents without land use designations to the property and traffic categories using the same percentage as the 2,896 incidents for which a location was identifiable. Thus 325 of the 337 medical incidents were allocated the same as the incidents at identifiable lands uses, and the other 12 medical incidents were allocated the same as the traffic-related incidents. Table 29: Medical Incidents Incident Location Incidents Identifiable by Location Incidents Not Identifiable by Location Total Incidents Total 2,559 337 2,896 At Properties % of Total 2,487 85.8% 325 11% 2,812 97.94% In Roads & Streets % of Total 72 2.5% 12 0.04% 84 2.05% Moses Lake Council Packet 1-14-20, Page 107 of 165 There are four tables that present the allocation of medical incidents among types of land use: Table 30 shows the medical incidents that were identifiable by land use type, Table 31 shows the medical incidents that were traffic-related. Table 32 combines the medical incident data (land use and traffic), and Table 33 shows the medical incident rate per unit of development. Table 30 shows the distribution of the 2,896 medical incidents that are traceable to a specific land use along with the percent distribution of these 2,896 incidents. In column 4 the total 2,896 medical incidents to land use (2,559 traceable + 337 allocated) is allocated among the land use types using the percent distribution column. The result is the total annual medical incidents at each of the land use types. Table 30: Medical Incidents at Specific Land Uses Land Use Medical Incidents Identifiable to Land Use Percent of All Medical Incidents Identifiable to Land Use Residential 854 + 29 Allocated 883 30.56% Non-Residential Hotel/Motel/Resort 54 + 6Allocated 60 2.07% Medical Care Facility Hospitals & Clinics 447 + 27 Allocated 16.36% Skilled Nursing & LC 1209 + 73 Allocated 44.26% Commercial: Office 49 +2Allocated 51 1.75% Retail 49+ 3Allocated 52 1.8% Restaurants 6 + 1 Allocated 7 .25% Industrial 49 + 8 Allocated 57 1.95% Institutions: Churches / non-profit 11 + 1 Allocated 12 0.40% Education 15+ 2 Allocated 17 0.60% Moses Lake Council Packet 1-14-20, Page 108 of 165 The traffic-related BLS incidents are allocated to land uses on the basis of the amount of traffic generated by each type of land use. In Table 31, the number of dwelling units and square feet of non-residential construction in Moses Lake is multiplied times the number of trips that are generated by each land use type in the same manner as Table 12. The result is the total trips associated with each land use type. The percent of trips associated with each land use type is calculated from the total of all trips. In the final calculation in Table 31 the total 84 annual medical incidents that are traffic-related (72 traceable + 12allocated) is allocated among the land use types using the percent of trips generated. Table 31: Traffic Related Medical Incidents (Allocated to Land Uses) Land Use Moses Lake Units of Development ITE Trip Generation Rate / per D.U. or Per Unit of Development Total Trips (col 2 x col3) Percent of Trips Generated Allocate 84 Traffic Related Medical Incidents by Land use (Col 5 *84) Residential 9.200 d.u 4.23228 38,937 29.16% 24 Non-Residential Hotel/Motel/Resort 732,000 Sq.Ft 0.00446 3,265 2.5% 2 Medical Care Facility 701,099 Sq. Ft .00825 5,784 4.3% 4 Commercial: Office 2,790,000SqFt 0.00551 15,373 11.54% 10 Retail 1,723,000 Sq Ft 0.02147 36,993 27.7% 23 Restaurants 152,200 Sq Ft 0.06358 9,677 7.2% 6 Industrial 4,900.255 SqFt 0.00349 17,102 12.8% 11 Institutions: Churches / non- profit 345,000SqFt 0.00456 1,573 1.2% 1 Education 747,920SqFt 0.00645 4,824 3.6% 3 Total 133,528 100% 84 Moses Lake Council Packet 1-14-20, Page 109 of 165 Table 32 summarizes the results of the analysis of medical incidents. The total annual medical incidents is a combination of the medical incidents allocated among direct responses to land use categories and the allocation of traffic related incidents based on trip generation rates (from Table 31) Table 32: Total Annual Medical Incidents by Land Use Land Use Annual Medical Incidents Direct to Land Use Annual Traffic Related Medical Incidents by Land Use Total Annual Medical Incidents by Land Use Residential 869 14 883 Non-Residential Hotel/Motel/Resort 58 2 60 Medical Care Facility 1736 19 1755 Commercial: Office 41 10 51 Retail 29 19 48 Restaurants 7 6 13 Industrial 46 11 57 Institutions: Churches / non-profit 11 1 12 Education 15 2 17 Total 2812 84 2896 Moses Lake Council Packet 1-14-20, Page 110 of 165 The final step in determining the annual medical incident rate per unit of development is shown in Table 33. The total annual medical incidents for each type of land use (from Table 32) are divided by the number of dwelling units or square feet of structures to calculate the annual medical incident rate per dwelling unit or square foot. The units of development are the same as was used to determine traffic-related incidents (see Table 30). The results in Table 33 show how many times an average unit of development has a medical incident to which the City of Moses Lake responds. Table 33: Annual Medical Incidents by Land Use Land Use Total Annual Medical Incidents to Land Use Units of Development Annual Medical Unit of Incidents per Development Residential 883 9,200 d.u 0.10 Per Dwelling Unit Non-Residential Hotel/Motel/Resort 60 732,000 Sq.Ft 0.00008 per square foot Medical Care Facility 1755 701,099 Sq. Ft 0.0025 per square foot Commercial: Office 51 2,790,000SqFt 0.00001 per square foot Retail 48 1,723,000 SqFt 0.00002 per square foot Restaurants 13 152,200 SqFt 0.00009 per square foot Industrial 57 4,900,255 SqFt 0.000001 Institutions: Churches / non-profit 12 345,000SqFt 0.00003 Education 17 747,920SqFt 0.00002 Total 2,896 Moses Lake Council Packet 1-14-20, Page 111 of 165 Formula F-13: Medical Incident Capital Cost Per Unit Of Development The capital cost of medical incidents per unit of development is determined by multiplying the annual medical incidents per unit of development (from Table 32) times the annual capital cost per medical incident incident of each type of apparatus (from Table 28) and fire station, then multiplying that result times the useful life of the apparatus or fire station. F-13. Annual medical Incidents Per Unit Of Development x Annual Cost Per Medical Incident X Useful Life Of Apparatus or Station = Medical Incident Capital Cost Per Unit Of Development There are no new variables used in formula F-13. The variables are identical to those used in Formula F-8, but using BLS incident rates and costs instead of fire incident rates and costs. In Tables 34 – 40 on the following pages, each medical incident rate (from Table 32) is multiplied by the annual capital cost per medical incident. The result is then multiplied times the useful life of the apparatus or station to calculate the capital cost per unit of development for each type of apparatus and station. This series of tables does not include the cost for units that do not respond to medical incidents. Moses Lake Council Packet 1-14-20, Page 112 of 165 Table 34 calculates the BLS related capital costs of an engine per unit of development. For example, residential units average 0.10 medical incidents per year (i.e., 10% of a medical incident per year). Multiplying this by the annual capital cost of $39.30 per incident (from Table 28) produces the result that it costs $3.93 per dwelling unit to provide it with engines for one year. Since the engine lasts 20 years, the residential dwelling needs to pay for 20 times the annual rate, for a total of $78.60. Table 34: Engine Cost of Responses to Medical Incidents at Land Use Categories Land Use Unit of Development Annual Medical Incident Rate Engine Cost @ $39.30 per incident Engine Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.10 Per Dwelling Unit $3.93 $78.60 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00008 $.003 $.06 Medical Care Facility Per Sq Ft 0.0025 $.10 $2.00 Commercial: Office Per Sq Ft 0.00001 $.0004 $.008 Retail Per Sq Ft 0.00002 $.0008 $.02 Restaurants Per Sq Ft 0.00009 $.0003 $.006 Industrial Per Sq Ft 0.000001 $.00004 $.0008 Institutions: Churches / non-profit Per Sq Ft 0.00003 $.001 $.02 Education Per Sq Ft 0.00002 $.0008 $.02 $80.73 Moses Lake Council Packet 1-14-20, Page 113 of 165 Table 35: Medic Unit Cost of Reponses to Medical Incidents at Land Use Categories Table 35 calculates the capital cost per unit of development for medic units responding to medical incidents. The incident rate (from Table 33) is multiplied by the medic unit capital cost per medical incident ($9.68 from Table 28) The result is then multiplied times the 7 year useful life of a medic unit to calculate the capital cost of development for medic units. Land Use Unit of Development Annual Medical Incident Rate Medic Cost @ $9.68 per incident Medic Life Cost @ 7 Year Life Residential Per Dwelling Unit 0.10 Per Dwelling Unit $.97 $6.79 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00008 $.0008 $.006 Medical Care Facility Per Sq Ft 0.0025 $.02 $.14 Commercial: Office Per Sq Ft 0.00001 $.0001 $.0007 Retail Per Sq Ft 0.00002 $.0002 $.0014 Restaurants Per Sq Ft 0.00009 $.0002 $.0014 Industrial Per Sq Ft 0.000001 $.00001 $.00007 Institutions: Churches / non-profit Per Sq Ft 0.00003 $.0003 $.0021 Education Per Sq Ft 0.00002 $.0002 $.0014 $6.94 Moses Lake Council Packet 1-14-20, Page 114 of 165 Table 36 calculates the capital cost per unit of development for Squad units responding to medical incidents. The incident rate (from Table 33) is multiplied by the Squad unit capital cost per medical incident ($0.61 from Table 28) The result is then multiplied times the 20 year useful life of a Squad unit to calculate the capital cost of development for Squad units. Table 36: Squad Cost of Responses to Medical Incidents at Land Use Categories Land Use Unit of Development Annual Medical Incident Rate Squad Cost @ $0.61 per incident Squad Life Cost @ 20 Year Life Residential Per Dwelling Unit 0.10 Per Dwelling Unit $.06 $1.20 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00008 $.00005 $.001 Medical Care Facility Per Sq Ft 0.0025 $.002 $.04 Commercial: Office Per Sq Ft 0.00001 $.000006 $.00012 Retail Per Sq Ft 0.00002 $.00001 $.0002 Restaurants Per Sq Ft 0.00009 $.00005 $.001 Industrial Per Sq Ft 0.000001 $.0000006 $.000012 Institutions: Churches / non-profit Per Sq Ft 0.00003 $.0002 $.004 Education Per Sq Ft 0.00002 $.00001 $.0002 $1.25 Moses Lake Council Packet 1-14-20, Page 115 of 165 Table 37 calculates the capital cost per unit of development for Staff units responding to medical incidents. The incident rate (From Table 33) is multiplied by the Staff unit capital cost per medical incident ($3.07 from Table 28) The result is then multiplied times the 10 year useful life of a Staff unit to calculate the capital cost of development for Staff units. Table 37: Staff Unit Cost of Responses to Medical Incidents at Land Use Categories Land Use Unit of Development Annual Medical Incident Rate Staff Unit Cost @ $3.07 per incident Staff Unit Life Cost @ 10 Year Life Residential Per Dwelling Unit 0.10 Per Dwelling Unit $.31 $3.10 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00008 $.0002 $.002 Medical Care Facility Per Sq Ft 0.0025 $.008 $.08 Commercial: Office Per Sq Ft 0.00001 $.00003 $.0003 Retail Per Sq Ft 0.00002 $.00006 $.0006 Restaurants Per Sq Ft 0.00009 $.0003 $.003 Industrial Per Sq Ft 0.000001 $.000003 $.0003 Institutions: Churches / non-profit Per Sq Ft 0.00003 $.00009 $.0009 Education Per Sq Ft 0.00002 $.00006 $.0006 $3.19 Moses Lake Council Packet 1-14-20, Page 116 of 165 Table 38 calculates the capital cost per unit of development for Other Apparatus and equipment responding to medical incidents. The incident rate (From Table 33) is multiplied by the Other Apparatus and equipment capital cost per medical incident ($0.04 from Table 28) The result is then multiplied times the 10 year useful life of a Other Apparatus and equipment to calculate the capital cost of development for Other Apparatus and equipment. Table 38: Other Apparatus & Equipment Cost of Responses to Medical Incidents at Land Use Categories Land Use Unit of Development Annual Medical Incident Rate Other Apparatus Cost @ $16.00 per incident Other Apparatus Life Cost @ 10 Year Life Residential Per Dwelling Unit 0.10 Per Dwelling Unit $1.60 $16.00 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00008 $.001 $.01 Medical Care Facility Per Sq Ft 0.0025 $.04 $.40 Commercial: Office Per Sq Ft 0.00001 $.0002 $.002 Retail Per Sq Ft 0.00002 $.0003 $.003 Restaurants Per Sq Ft 0.00009 $.001 $.01 Industrial Per Sq Ft 0.000001 $.00002 $.0002 Institutions: Churches / non-profit Per Sq Ft 0.00003 $.0005 $.005 Education Per Sq Ft 0.00002 $.0003 $.003 $16.43 Moses Lake Council Packet 1-14-20, Page 117 of 165 Table 39: Fire Station Cost of Responses to Medical Incidents at Land Use Categories Table 39 calculates the capital cost per unit of development for Fire Stations that house medical apparatus. The incident rate (From Table 33) is multiplied by the fire station’s capital cost per fire and medical incident ($71.83 from Table 9). The result is then multiplied times the 50 year useful life of a fire station to calculate the capital cost per unit of development for fire stations. Land Use Unit of Development Annual Medical Incident Rate Fire Station Cost @ $71.83 per incident Fire Station Life Cost @ 50 Year Life Residential Per Dwelling Unit 0.10 Per Dwelling Unit $7.18 $359.00 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.00008 $.006 $.30 Medical Care Facility Per Sq Ft 0.0025 $.18 $9.00 Commercial: Office Per Sq Ft 0.00001 $.0007 $.04 Retail Per Sq Ft 0.00002 $.001 $.05 Restaurants Per Sq Ft 0.00009 $.006 $.30 Industrial Per Sq Ft 0.000001 $.00007 $.04 Institutions: Churches / non-profit Per Sq Ft 0.00003 $.002 $.10 Education Per Sq Ft 0.00002 $.001 $.05 $368.88 Moses Lake Council Packet 1-14-20, Page 118 of 165 Table 40 combines the capital costs of all types of apparatus and station from tables 34-39 to show the total capital cost of responses to medical incidents for one unit of residential development. Table 40: Total Capital Cost of Responses to Medical Incidents at Land Use Categories Land Use Unit of Development Medical Incident Life Cost of All Apparatus and Station Residential Per Dwelling Unit $464.39 Non-Residential Hotel/Motel/Resort Per Square Foot $0.38 Medical Care Facility Per Square Foot $11.66 Commercial: Office Per Square Foot $0.05 Retail Per Square Foot $0.07 Restaurants Per Square Foot $0.32 Industrial Per Square Foot $0.31 Institutions: Churches / non-profit Per Square Foot $0.13 Education Per Square Foot $0.09 $477.40 Formula F-14: Fire and Medical Cost Per Unit of Development The fire and medical costs per unit of development from the preceding tables are combined to determine the total fire and medical cost per dwelling unit or non-residential square foot. F-14: Fire Incident Capital Cost per Unit of Development + Medical Incident Capital Cost per Unit of Development = Fire and Medical Cost per Unit of Development There are no new variables used in formula F-14. Both variables were developed in previous formulas and tables. Moses Lake Council Packet 1-14-20, Page 119 of 165 In Table 41 the fire and medical costs per unit of development are added together to determine the combined total fire and medical cost per dwelling unit or non-residential square foot. Table 41: Total Cost of Response to Fire and Medical Incidents by Land Use Category Land Use Unit of Development Medical Incident Life Cost of All Apparatus and Station Fire Incident Life Cost of All Apparatus and Station Combined Life Cost of all Apparatus and Station Residential Per Dwelling Unit $464.39 $265.81 $730.20 Non-Residential Hotel/Motel/Resort Per Square Foot $0.38 $0.37 $0.75 Medical Care Facility Hospital & Clinic Per Square Foot $4.31 $0.28 $4.59 Skilled Nursing & LC Per Square Foot $7.35 $0.49 $7.84 Commercial: Office Per Square Foot $0.05 $0.29 $0.34 Retail Per Square Foot $0.07 $0.43 $0.50 Restaurants Per Square Foot $0.32 $0.14 $0.46 Industrial Per Square Foot $0.31 $0.12 $0.43 Institutions: Churches / non- profit Per Square Foot $0.13 $0.86 $0.99 Education Per Square Foot $0.09 $0.47 $0.56 Moses Lake Council Packet 1-14-20, Page 120 of 165 Formula F-15: Adjustments and Impact Fees The final step in determining the fire services impact fee is to reduce the cost per dwelling unit or non-residential square foot by subtracting any credits for other revenue from existing and new development that the City of Moses Lake will use to pay for part of the cost of the same fire protection facilities that are the basis of the impact fee, and any adjustment to comply with RCW 82.02.050(7). F-15: Fire and Medical Cost per Unit of Development – Adjustment for Revenue Credits = Impact Fee per Unit of Development There is one new variable that requires explanation: (J) adjustment for revenue credits. Variable (J): Adjustment for Revenue Credits Moses Lake does not have dedicated revenues for fire stations and apparatus, therefore there is no adjustment for future payments of other revenues that are used to pay for the same new fire stations and apparatus that are required to serve the new development. The only revenue sources to be included in the adjustment are those that are used for fire services facilities capacity expansion according to law and local policy or practice. Adjustments are not given for other payments that are not used for new fire services facilities needed for new development. Such an adjustment would extend to payments of all taxes for all purposes to all forms of governments, which contradicts the well-established system of restricting fees, charges, and many taxes for specific public facilities and services. Adjustments are not given for revenues that are used for repair, maintenance or operating costs because impact fees are not used for such expenses. The final step in Table 42 (on the next page) is to further reduce the impact fees that would be charged to new development in order to implement RCW 82.02.050(7) which provides that “…the financing for system improvements to serve new development … cannot rely solely on impact fees.” The statute provides no further guidance, and “not rely solely” could be anything between 0.1% and 99.9%. RCW 82.02.060(1)(b) requires an adjustment for revenue credits to be given only for "...payments made or reasonably anticipated to be made by new development to pay for particular system improvements in the form of user fees, debt service payments, taxes, or other payments earmarked for or proratable to the particular system improvement (emphasis added);" Moses Lake Council Packet 1-14-20, Page 121 of 165 The adjustment of 3% used in Table 42 is comparable to what other jurisdictions that do not have dedicated revenues for fire stations and apparatus have implemented by way of an adjustment. Table 42 shows the cost per dwelling unit or non-residential square foot from Table 41, the 3% adjustment, and the impact fee after the adjustment is subtracted from the full cost. Table 42: Fire Impact Fees by Land Use Land Use Total Fire and Medical Cost of Impact Development Credit Adjustment @ 3.00% Fire and Medical Impact Fee Per Unit of Development Residential-1&2&3 Family Homes $730.20 $21.91 $708.29 Multi-Family Residential Non-Sprinkled (Townhome Design) $730.20 $21.91 $708.29 Multi-Family Residential Sprinkled $730.20 $365.10 $365.10* Non-Residential Hotel/Motel/Resort $0.75 $0.02 $0.73 Medical Care Facility Hospitals & Clinics $4.59 $0.14 $4.45 Skilled Nursing & LC $7.84 $0.24 $7.60 Commercial: Office $0.34 $0.01 $0.33 Retail $0.50 $0.02 $0.48 Restaurants $0.46 $0.01 $0.45 Industrial $0.43 $0.22 $0.21* Institutions: Churches / non-profit $0.99 $0.03 $0.96 Education $0.56 $0.02 $0.54 *Sprinkled multi-family residential and Industrial have been allowed a 50% credit adjustment per the Fire Impact Fee focus group. Moses Lake Council Packet 1-14-20, Page 122 of 165 ORDINANCE NO. 2940 AN ORDINANCE OF THE CITY OF MOSES LAKE, WASHINGTON, ADOPTING A NEW TITLE 21 TITLED “IMPACT FEES” THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. A new Title 21 of the Moses Lake Municipal Code titled “Impact Fees” is created as follows: TITLE 21 IMPACT FEES Chapters: 21.03 Fire Impact Fees 21.03.010 Title 21.03.020 Purpose and Intent 21.03.040 Findings and Authority 21.03.050 Definitions 21.03.060 Establishment of service area. 21.03.070 Impact fees methodology and applicability 21.03.080 Collection of impact fees. 21.03.090 Exemptions. 21.03.100 Credits for dedications, construction of improvements, and past tax payments. 21.03.110 Adjustments for future tax payments and other revenue sources. 21.03.120 Appeals. 21.03.130 Establishment of impact fee accounts. 21.03.140 Administrative guidelines. 21.03.150 Refunds and offsets. 21.03.160 Use of impact fees. 21.03.170 Review and adjustment of rates. 21.03.180 Administrative fees. 21.03.190 Existing authority unimpaired. Moses Lake Council Packet 1-14-20, Page 123 of 165 21.03.010 Title. This Chapter shall be hereinafter known as “fire impact fees.” 21.03.020 Purpose and Intent. The purpose and intent of this Section is to authorize the collection of impact fees for fire protection and to provide for certain other matters in connection therewith. 21.03.030 Findings and Authority. The Moses Lake City Council (hereinafter referred to as “Council”) hereby finds and determines that development activities, including but not limited to new residential, commercial, retail, office, and industrial development in the City of Moses Lake (hereinafter referred to as “City”) will create additional demand and need for fire protection facilities in the City. Further, the Council finds that such new growth and development should pay a proportionate share of the cost of system improvements needed to serve the new growth and development. In the Rate Study as defined and hereby incorporated by this reference, the City documented extensive research concerning the procedures for measuring the impact of new developments on public facilities. In 2019, the Moses Lake Fire Department (MLFD) completed its own Rate Study for Fire Impact Fees. This Rate Study utilize methodologies for calculating impact fees that are consistent with the requirements of RCW 82.02.060(1). A copy of the most current version of the Rate Studies shall be kept on file by the Moses Lake City Clerk and will be available to the public for review. Therefore, pursuant to chapter 82.02 RCW, the Council adopts this Section to assess impact fees for fire protection fees for the Moses Lake Fire Department. The provisions of this Section shall be liberally construed in order to carry out the purposes of the Council in providing for the assessment of impact fees. 21.03.040 Definitions. The words and terms defined below shall have the following meanings for the purposes of this Section, unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090 or given their usual and customary meaning. Moses Lake Council Packet 1-14-20, Page 124 of 165 1. “Administrator” means the Director or designee of the Moses Lake Community Development Department. 2. “Applicant” for the purposes of this Section includes an entity that controls the applicant, is controlled by the applicant, or is under common control with the applicant. 3. “Building permit” means an official document or certification which is issued by the City and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving, or repair of a building or structure or any portions thereof. 4. “Capital facilities plan” means the capital facilities element of the City’s Comprehensive Plan adopted pursuant to chapter 36.70A RCW and such plan as amended. 5. “City” means the City of Moses Lake. 6. “Council” means the Moses Lake City Council. 7. “Department” means the City’s Community Development Department. 8. “Development activity” means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land that generate the need for additional public facilities. 9. “Development approval” means any written authorization from the City of Moses Lake which authorizes the commencement of a development activity. 10. “Elderly” means a person aged sixty two (62) or older. 11. “Encumbered” for fire it means impact fees identified by the department as being committed as part of the funding for a facility for which the publicly funded share has been assured or building permits sought or construction contracts let. 12. “Fee payer” is any person, collection of persons, or department or bureau of any governmental entity or municipal corporation commencing a development activity which creates the demand for additional system improvements and which requires the issuance of a building permit or a permit for a change of use. “Fee payer” includes an applicant for an impact fee credit. Moses Lake Council Packet 1-14-20, Page 125 of 165 13. “Fee Schedule” is the City of Moses Lake Fee Schedule detailing amounts to be paid for various permits, licenses, etc., that is published, kept on file, and made available to the public on the City’s website and in the office of the Moses Lake City Clerk. 14. “Fire capital facilities plan” means the Moses Lake Fire Department capital improvement plan adopted by the City Council that includes the following: a. An inventory of existing capital facilities and equipment owned by the department, their locations, and capacities. b. The identification of the demands projected new development is anticipated to place on existing fire protection facilities and equipment. c. A forecast of the capital facilities and equipment necessary to meet the department’s adopted level of service with the increased demand of new development within the department. d. The proposed locations of expanded or new capital facilities and equipment and the associated timeline for construction or expansion. e. At least a six (6) year financing component, updated as necessary to maintain at least a six (6) year forecast period, for financing needed fire protection facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues. f. Any other long-range projects planned by the department. 15. “Fire protection” shall mean fire protection facilities, including but not limited to fire stations, fire apparatus, and any furnishings and equipment that can be capitalized. 16. “Hearing Examiner” shall mean that person or persons acting as the Moses Lake Hearing Examiner. 17. “Impact fee” means a payment of money imposed by the City of Moses Lake on development activity pursuant to this Section as a condition of granting development approval. An impact fee does not include a reasonable permit fee, an application fee, the administrative fee for collecting and handling impact fees, the fee for reviewing independent fee calculations, or the fee for deferring payment of impact fees. Moses Lake Council Packet 1-14-20, Page 126 of 165 18. “Impact fee account(s)” means the separate accounting structure(s) within the City’s established accounts, which structure(s) shall identify separately earmarked funds and which shall be established for the impact fees that are collected. The account(s) shall be established pursuant to subsection M of this Section and shall comply with the requirements of RCW 82.02.070. 19. “Independent fee calculation” means the fire impact fee calculation, and/or economic documentation prepared by a fee payer, to support the assessment of a fire protection impact fee other than by the use of the rates published in the City’s Fee Schedule, or the calculations prepared by the department where none of the fee categories or fee amounts in the City’s Fee Schedule accurately describe or capture the impacts of the development activity on public facilities. 20. “Owner” means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded. 21. “Permit for change of use or change of use permit” means an official document which is issued by the City which authorizes a change of use of an existing building or structure or land. 22. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development project, are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan adopted by the Council shall be considered a project improvement. 23. “Public facilities,” for purposes of this Section, means the following capital facilities owned or operated by the City of Moses Lake, or other governmental entities: fire protection facilities. 24. “Rate Study” means any rate study relating to impact fees for fire protection adopted by the City of Moses Lake. 25. “System improvements,” for purposes of this Section, means public facilities that are included in the City of Moses Lake’s capital facilities plan, and such plan as amended, and are designed to provide service to the community at large, in contrast to project improvements. 21.03.050 Establishment of service area. Moses Lake Council Packet 1-14-20, Page 127 of 165 1. The City hereby establishes, as the service area for impact fees, the City of Moses Lake, including all property located within the corporate City limits. 2. The scope of the service area is hereby found to be reasonable and established on the basis of sound planning and engineering principles, and consistent with RCW 82.02.060 as described in the Rate Study. 21.03.060 Impact fees methodology and applicability. The fire impact fees in the fee schedule are generated from the formulae for calculating impact fees set forth in the applicable fire capital facilities plans as may be further set forth in a Rate Study. Except as otherwise provided for independent fee calculations in subsection H of this Section, exemptions in subsection I of this Section, and credits in subsection J of this Section, all new development activity in the City will be charged impact fees applicable to the type of development listed in the City of Moses Lake Fee Schedule. 21.03.070 Collection of impact fees. 1. Fire Impact Fees: a. Applicability: The City shall collect impact fees, based on the rates in the City of Moses Lake Fee Schedule, from any applicant seeking development approval from the City for any development activity within the City, when such development activity requires the issuance of a building permit or a permit for a change in use, and creates a demand for additional public facilities. b. Fire Impact Fee Basis and Amount: The maximum allowable fees shall be based on the fire capital facilities plan and the rate study developed by the Department, approved by the council, and adopted by the City as part of the capital facilities element of the City’s Comprehensive Plan and as a fire impact fee Rate Study. The rates to be charged are listed in the City of Moses Lake Fee Schedule. 2. Changes in Use or Tenancy: When an impact fee applies to a change of use permit, the impact fee shall be the applicable impact fee for the land use category of the new use, less any impact fee previously paid for the land use category of the prior use. For purposes of this provision, a change of use should be reviewed based on the land use category provided in the Rate Study that best captures the broader use of the property under development. Changes in use or tenancy, if consistent with the general character of the building or building aggregations (i.e., Moses Lake Council Packet 1-14-20, Page 128 of 165 “industrial park,” or “specialty retail”) should not be considered a change in use that is subject to an impact fee. Further, minor changes in tenancies that are consistent with the general character of the included structure, building, or previous use should not be considered changes in use subject to an impact fee. If no impact fee was paid for the prior use, the impact fee for the new use shall be reduced by an amount equal to the current impact fee rate for the prior use. Vacant buildings shall be assessed as if in the most recent legally established use as shown on a locally owned business license or development permit documents. 3. Mixed Use: For mixed use developments, impact fees shall be imposed for the proportionate share of each land use, based on the applicable measurement in the impact fee rates in the City of Moses Lake Fee Schedule. 4. Timing of Assessment and Collection: Impact fees shall be determined at the time the complete application for a building permit or a permit for a change in use is submitted using the impact fees then in effect. Impact fees shall be due and payable before the building permit or permit for a change of use is issued by the City. 5. Documentation of Credit Required: Fee payers allowed credits prior to the submittal of the complete building permit application or an application for a permit for a change of use shall submit, along with the complete application, a copy of the letter prepared by the Administrator, or Fire Department official setting forth the dollar amount of the credit allowed. Impact fees, as determined after the application of any credits, shall be collected from the fee payer no later than the time a building permit or permit for a change of use is issued. 6. Deferral for Subdivisions, Short Subdivisions, and Planned Unit Developments: An applicant for residential subdivision, short subdivision, or planned unit development may defer payment of impact fees for all of the dwelling units to be created in the development until the earlier of the time of closing of the first sale of a single detached dwelling unit, condominium unit, or a multi-family residential building or eighteen (18) months after the issuance of the original building permit, but only if before recording the subdivision or short subdivision, the applicant: a. Submits to the Administrator a signed and notarized deferred impact fee application and acknowledgement form, which includes the legal description, tax account number, and address of each individual in the development; b. Records at the applicant’s expense a covenant and lien that complies with the requirements of subsections (G)(7)(b)(i) through (vii) of this Section; and Moses Lake Council Packet 1-14-20, Page 129 of 165 c. Pays the applicable nonrefundable administrative fee. 7. Deferral for Single Family, Condominium, and Multi-Family Dwellings: A building permit applicant may defer payment of impact fees for a single detached dwelling unit, condominium unit, or all of the dwelling units in a multi-family residential building until the earlier of the time of closing of the first sale of a single detached dwelling unit, a condominium unit or a multi-family residential building or eighteen (18) months after issuance of the original building permit, but only if before issuance of the building permit, the applicant: a. Submits to the Administrator a signed and notarized deferred impact fee application and acknowledgement form for each single detached dwelling unit, condominium unit or all of the dwelling units in a multi-family residential building for which the applicant wishes to defer payment of the impact fees; and b. Records at the applicant’s expense a covenant and lien in the amount of the deferred impact fee(s) and that includes the legal description, tax account number, and address of the property that: i. Requires payment of the impact fees to the City at the earlier of the time of closing of the first sale or eighteen (18) months after issuance of the original building permit; and ii. Provides that if the impact fees are paid through escrow at closing of sale, in the absence of an agreement between the buyer and the seller to the contrary, the impact fees shall be paid from the seller’s proceeds; and iii. Provides that the seller bears strict liability for the payment of the impact fees; and iv. Requires the seller or seller’s agent of property subject to the covenant and lien to provide written disclosure of the covenant and lien to a purchaser or prospective purchaser. Disclosure of the covenant must include the amount of impact fees payable and that the fees are to be paid to the City no later than the closing date; and v. Makes the applicant legally liable for payment of the impact fees if the fees are not paid by the earlier of the time of closing of the first sale or eighteen (18) months after the building permit has been issued; and Moses Lake Council Packet 1-14-20, Page 130 of 165 vi. Is signed by all owners of the property as listed on a current title report, with all signatures acknowledged as required for a deed; and vii. Is junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees. 8. Payment Methods: Payment of impact fees deferred under this subsection shall be made by cash, escrow company check, cashier’s check or certified check. 9. Lien Release: Upon receipt of payment of impact fees deferred under this subsection, the City shall execute a lien release for each single detached dwelling unit, condominium unit, or multi- family residential building for which the impact fees have been received. The property owner at the time of the release shall be responsible for recording the lien release. 10. Foreclosure by City: If impact fees are not paid, in accordance with the provisions of this subsection, the City may institute foreclosure proceedings in accordance with chapter 61.12 RCW. 11. Required Prior to Building Permit Issuance: The Department shall not issue the required building permit or the permit for the change of use until the impact fees have been paid or the signed and notarized deferred impact fee application and acknowledgement form and deferral fee have been received and accepted by the City. Impact fees may be paid under protest to obtain a building permit or other approval or permit. 12. Number of Deferrals Limited: Each applicant for a single family building permit, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this subsection for the first twenty (20) single family building permits issued by the City to that applicant. 21.03.080 Independent fee calculations. 1. Calculations by City: If, in the judgment of the Administrator, none of the fee categories or fee amounts set forth in the City of Moses Lake Fee Schedule accurately describes or captures the impacts of a new development on public facilities, the Department may conduct independent fee calculations and the Administrator may impose alternative fees on a specific development based on those calculations. The alternative fees and the calculations shall be set forth in writing and shall be mailed to the fee payer. Moses Lake Council Packet 1-14-20, Page 131 of 165 2. Calculations by Fee payer: A fee payer may opt not to have the impact fees determined according to the fee structure in the City of Moses Lake Fee Schedule, in which case the fee payer shall prepare and submit to the Administrator, the Fire Department, as applicable, an independent fee calculation for the development activity for which a building permit is being sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. An independent fee calculation shall use the same methodology used to establish fire impact fees by fire incident rates for fire impact fees. 3. Consideration and Review: There is a rebuttable presumption that the calculations set forth in the Rate Studies and Capital Facilities Plans and the data used by the City and Fire Department are valid. a. Fire Impact Fees: The City may adjust the amount of the impact fee assessed if appropriate and lawful, as demonstrated by the fee payer to the City’s satisfaction. 4. Adjustment from Maximum Amount: Alternative impact fees calculated pursuant to this subsection shall be reduced in the same manner and to the same extent that the impact fees in the City of Moses Lake Fee Schedule are reduced from the maximum allowable impact fees in the Rate Study. 5. Appeals: Determinations made by the Administrator pursuant to this Section may be appealed to the office of the Hearing Examiner under the procedures set forth in subsection L of this Section. 21.03.090 Exemptions. 1. Fire Impact Fees: Except as provided for below, the following shall be exempted from the payment of all fire impact fees: a. Alteration or replacement of an existing residential structure that does not create an additional dwelling unit or change the type of dwelling unit. b. Alteration or replacement of an existing nonresidential structure that does not expand the usable space or change the existing land use. c. Miscellaneous improvements which do not generate increased need for public facilities, including, but not limited to, fences, walls, residential swimming pools, and signs. Moses Lake Council Packet 1-14-20, Page 132 of 165 d. Demolition or moving of a structure. e. Projects that have undergone prior State Environmental Policy Act (SEPA) review and received a final decision that includes mitigation requirements on the condition that the SEPA mitigation obligation has or will be fulfilled by the time the impact fees, if applicable, would be due. 2. Authority: The Administrator shall be authorized to determine whether a particular development activity falls within an exemption identified in this Section. The Administrator’s determinations shall be in writing and shall be subject to the appeals procedures set forth in subsection L of this Section. 21.03.100 Credits for dedications, construction of improvements, and past tax payments. 1. Criteria for Award of Credits: A fee payer may request that a credit or credits for impact fees be awarded to him/her for the total value of system improvements, including dedications of land and improvements, and/or construction provided by the fee payer. Credits will be given only if the land, improvements, and/or the facility constructed are: a. Included within the capital facilities plan or would serve the goals and objectives of the capital facilities plan; b. Determined by the City to be at suitable sites and constructed at acceptable quality; c. Serve to offset impacts of the fee payer’s development activity; and 2. Authority and Process: a. The Administrator shall determine if requests for credits meet the criteria in subsection J1 of this Section or other applicable law. The determinations shall be in writing, and any determination by the Administrator shall be subject to the appeals procedure set forth in subsection L of this Section. b. For each request for a credit or credits for fire impact fees, the Administrator shall select an appraiser from a list of independent appraisers to determine for the City the value of the dedicated land, improvements, or construction provided by the developer on a case-by-case basis. Moses Lake Council Packet 1-14-20, Page 133 of 165 c. Unless approved otherwise, the appraiser must be a member of the American Institute of Appraisers and be licensed in good standing pursuant to chapter 18.40 RCW et seq. in the category for the property or improvement to be appraised, and shall not have a fiduciary or personal interest in the property being appraised. d. The Administrator will accept or reject the appraisal, and any decision by the Administrator may be subject to independent review by the Hearing Examiner. e. The payer shall pay the actual costs for the appraisal and an independent review, if required, unless the Administrator determines that payment for independent review should not be at the fee payer’s expense. f. After considering the appraisal and the review, the Administrator shall provide the applicant with a written determination setting forth the dollar amount of any credit, the reason for the credit, the legal description of the real property dedicated where applicable, and the legal description or other adequate description of the project or development to which the credit may be applied. The fee payer must sign and date a duplicate copy of such determination accepting the terms of the letter or certificate, and return such signed document to the Administrator before the impact fee credit will be awarded. The failure of the fee payer to sign, date, and return such document within sixty (60) calendar days of the date of the determination shall nullify the credit. g. No credit shall be given for project improvements. 3. Past Tax Payments: A fee payer may request a credit or credits for impact fees previously awarded for past tax payments. The Administrator shall determine the amount of credits, if any, for past tax payments for system improvements. 4. Appeals: The Administrator’s determinations pursuant to this Section shall be subject to the appeals procedures set forth in subsection L of this Section. 21.03.110 Adjustments for future tax payments and other revenue sources. Pursuant to and consistent with the requirements of RCW 82.02.060 the Rate Studies have provided adjustments for future taxes to be paid by the development activity which are earmarked or prorated according to the same new public facilities which will serve the new development. The impact fees in the City of Moses Lake Fee Schedule have been reasonably Moses Lake Council Packet 1-14-20, Page 134 of 165 adjusted for taxes and other revenue sources which are anticipated to be available to fund public improvements. 21.03.120 Appeals. 1. Process: Appeals to the Hearing Examiner shall be taken in accord with the processes set forth in MLMC 18.80. 2. Authority: The Hearing Examiner is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of the credit, or the accuracy or applicability of an independent fee calculation. There is a presumption of validity of the Administrator’s determination. The fee payer has the burden of proof during any appeal of the Administrator’s determination or decision. 3. Decisions: The Hearing Examiner may, so long as such action is in conformance with the provisions of this Section, reverse, affirm, modify or remand, in whole or in part, the Administrator’s determinations with respect to the amount of the impact fees imposed or the credit awarded. 21.03.130 Establishment of impact fee accounts. 1. Fee Accounts: The City shall establish the following separate impact fee accounts for the impact fees collected pursuant to this Section: Moses Lake Fire Department. Funds withdrawn from the accounts must be used in accordance with the provisions of this Section and applicable State law. Interest earned on the fees shall be retained in the accounts and expended for the purposes for which the impact fees were collected. Impact fee receipts shall be earmarked specifically and deposited in the appropriate interest-bearing impact fee accounts. 2. Fire Fees Encumbered: Fire impact fees shall be expended or encumbered within ten (10) years of receipt, unless the Council identifies in written findings extraordinary and compelling reasons for the City to hold the fees beyond the ten (10) year period, pursuant to RCW 82.02.070(3). 21.03.140 Administrative guidelines. The Administrator is authorized to adopt internal guidelines for the administration of impact fees, which may include the adoption of procedural rules to clarify or further the procedural rules set forth in this Section. Moses Lake Council Packet 1-14-20, Page 135 of 165 21.03.150 Refunds and offsets. 1. Failure to Expend or Encumber: If there is a failure by the City to expend or encumber the respective impact fees unless extraordinary or compelling reasons are established pursuant to subsection M of this Section the current owner of the property on which impact fees have been paid may receive a refund of such fees. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first in, first out basis. Potential claimants shall be notified by first-class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant must be the current owner of record of the real property against which the impact fees were assessed. The City shall notify potential fire impact fee claimants. a. Fire impact fees are eligible for a refund if they have not been expended or encumbered by the City within ten (10) years of the date the fees were paid. 2. Timing of Request: Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the Administrator within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later. 3. Fees Not Refunded: Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the City and expended on the system improvements for which they were collected. 4. Interest Earned: Refunds of impact fees under this subsection shall include any interest earned on the impact fees by the City. 5. Termination of Program: When the City seeks to terminate any or all components of the impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest earned and including any fire impact fees held by the City, shall be refunded pursuant to this Section. Upon the finding that any or all fee requirements are to be terminated, the City shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two (2) times and shall notify all potential claimants by first-class mail at the last known address of the claimants. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the City, but must be expended for the public facilities for which the impact fees were collected. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated. Moses Lake Council Packet 1-14-20, Page 136 of 165 6. Refunds and Offsets for Development Not Constructed: The City shall also refund to the current owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur; provided, however, that, if the City has expended or encumbered the impact fees in good faith prior to the application for a refund, the Administrator may decline to provide the refund. If, within a period of three (3) years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the Administrator for an offset in the amount of the fee originally paid and not refunded. The petitioner must provide receipts of impact fees previously paid for a development activity of the same or substantially similar nature on the same real property or some portion thereof. The Administrator’s determinations shall be in writing and shall be subject to the appeals procedures set forth in subsection L of this Section. 21.03.160 Use of impact fees. 1. Pursuant to this Section, impact fees: a. Shall be used for system improvements that will reasonably benefit the new development activity; b. Shall not be imposed to make up for deficiencies in public facilities; and c. Shall not be used for maintenance or operation. 2. Fire impact fees: a. May be spent for fire protection facilities as herein defined and, including, but not limited to, planning, land acquisition, right-of-way acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized. b. May also be used to recoup system improvement costs previously incurred by the City to the extent that new growth and development will be served by the previously constructed improvements or incurred costs. 3. Debt Service: In the event that bonds or similar debt instruments are or have been issued for the advanced provision of system improvements for which impact fees may be expended, such impact fees may be used to pay debt service on such bonds or similar debt instruments to the Moses Lake Council Packet 1-14-20, Page 137 of 165 extent that the facilities or improvements provided are consistent with the requirements of this Section. 21.03.170 Review and adjustment of rates. 1. Fire Impact Fees: The fees and rates set forth in the Rate Study may be reviewed and updated by the Council as it deems necessary and appropriate in conjunction with the budget process so that adjustments, if any, will be effective at the first of the calendar year subsequent to budget period under review. 21.03.180 Administrative fees. 1. Deferred Fees: Each application for a deferral of payment of residential impact fees, either under subsection G7 of this Section, shall pay a nonrefundable administrative deferral fee of eighty five dollars ($85.00) for each lot, single detached dwelling unit, or condominium unit and eighty five dollars ($85.00) for each multi-family residential building. The fee shall be paid at the time the application for deferral is submitted to the City. 2. Independent Fee Calculations: Any fee payer submitting an independent fee calculation shall pay a fee to cover the cost of reviewing the independent fee calculation. The fee shall be five hundred dollars ($500.00), unless otherwise established by the Administrator and shall be paid by the fee payer at submittal of the independent fee calculation. 3. Appeals: Any fee payer filing an appeal of impact fees shall pay the fee set by the City for appeals of administrative interpretations and decision. The appeal fee shall be paid at the time of filing of the appeal. 4. Account Established: Administrative fees shall be deposited into a separate administrative fee account within the impact fee account(s). Administrative fees shall be used to defray the actual costs associated with the assessment, collection, administration and update of the impact fees. 5. Refunds, Waivers, and Credits: Administrative fees shall not be refundable, shall not be waived, and shall not be credited against the impact fees. 21.03.190 Existing authority unimpaired. Moses Lake Council Packet 1-14-20, Page 138 of 165 Nothing in this Section shall preclude the City from requiring the fee payer or the proponent of a development activity to mitigate adverse environmental impacts of a specific development pursuant to SEPA, chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or chapter 58.17 RCW, governing plats and subdivisions. Section 2. This ordinance shall take effect and be in force five (5) days after its passage and publication of its summary as provided by law. Adopted by the City Council of the City of Moses Lake, WA and signed by its Mayor on January 14, 2019. _____________________________________ Mayor ATTEST: _______________________________________ Debbie Burke, City Clerk APPROVED AS TO FORM: _______________________________________ Katherine L. Kenison, City Attorney Vote: Riggs Liebrecht Myers Jackson Curnel Eck Hankins Aye Nay Abstain Absent Date Published: January 20, 2020 Date Effective: January 25, 2020 Moses Lake Council Packet 1-14-20, Page 139 of 165 RESOLUTION NO. 3790 A RESOLUTION ESTABLISHING THE FEE SCHEDULE FOR FIRE IMPACT FEES RECITALS: 1. The study for the development of Fire Impact Fees has been completed. 2. This study was conducted in accordance with RCW 82.02.090(7) and it was based upon the various land use categories within the City. 3. The City Council has adopted Fire Impact Fees through ordinance. RESOLVED: 1. Pursuant to Ordinance No. 2940 and MLMC Title 21, the Moses Lake City Council establishes the Moses Lake Fire Impact Fee Schedule as follows. Type of Development Unit Fee Single and two family residential Dwelling Unit $708.29 Multi-Family Non-Sprinkled Dwelling Unit $708.29 Multi-Family Sprinkled Dwelling Unit $365.10 Hospitals and Clinics Square Foot $4.45 Skilled Nursing and Licensed Care Facilities Square Foot $7.60 Hotel-Motel Square Foot $0.73 Office Square Foot $0.33 Retail Square Foot $0.48 Industrial Square Foot $0.22 Restaurant Square Foot $0.45 Churches Square Foot $0.96 Education Square Foot $0.54 2. The Fire Impact Fee Schedule is established in accordance with RCW 82.02.090. 3. This Moses Lake Fire Impact Fee Schedule will be included in the City Fee Schedule pursuant to Ordinance No. 2940 and MLMC Title 21. Adopted by the City Council on January 14, 2020. _____________________________________ ATTEST: Mayor ______________________________________ Debbie Burke, City Clerk Moses Lake Council Packet 1-14-20, Page 140 of 165 Blank page Moses Lake Council Packet 1-14-20, Page 141 of 165 STAFF REPORT To: City Council From: Kevin Fuhr, Interim City Manager Date: January 8, 2019 Proceeding Type: Old Business Subject: Airport Lease Legislative History: • First Presentation: December 19, 2019 • Second Presentation: January 14, 2020 • Action: Motion Staff Report Summary Attached is the revised airport lease that was created through the airport lease sub-committee and which was reviewed and discussed by the Council on December 19. Staff was directed to contact the City’s airport insurance carrier to inquire about the automobile and hangar-keepers insurance provisions. Staff has contacted the insurer and has incorporated the insurer’s recommendations in the attached final draft agreement, along with the final revisions as directed by the Council. Final Revisions Both a redlined version and clean version are attached showing the final revisions to the agreement. Pursuant to the insurer’s recommendations, the automobile coverage has been reduced to the State minimums and the hangar-keepers liability coverage has been eliminated based upon the City’s existing insurance coverage, which includes $1M of hangar-keepers coverage. The dates have been updated, clarification has been made to section 20, and an extension of time for removal of improvements has been incorporated into section 31. Staff Recommendation Staff Recommends Council approve the final, revised agreement. Attachments A. Airport lease both clean and marked up versions Legal Review – Documents drafted by City Attorney Moses Lake Council Packet 1-14-20, Page 142 of 165 AGREEMENT FOR LEASE OF SPACE ON THE MOSES LAKE MUNICIPAL AIRPORT This agreement is made and entered into on January 1, 2018 by and between the City of Moses Lake, a Washington non-charter code city hereinafter referred to as "Lessor", and «First_Name», hereinafter referred to as "Lessee". WHEREAS, the Lessor is in possession of an airport commonly known as "Moses Lake Municipal Airport", and WHEREAS, the Lessee is desirous of leasing property on a portion of the airport; NOW, THEREFORE, the parties hereto enter into the following agreement for the rental of property for use as an aircraft hangar, or other appropriate uses as allowed by the City of Moses Lake. 1. Designation of Property: The Lessor hereby leases to the Lessee Parcel [insert] at the Moses Lake Municipal Airport as designated on Municipal Tract #12, Lot 2 Commercial Binding Site Plan, recorded January 27, 1999 (the “Premises”). 2. Term: The term of this agreement shall be from January 1, 2020 to and including December 31, 2039. Lessee shall have the option to renew the agreement for an additional twenty (20) year term provided Lessee shall give Lessor 180 day’s prior written notice of its intent to renew. Any renewal shall be on the same terms and conditions with the exception of the rental amount which shall be subject to renegotiation pursuant to Section 4, below. 3. Use: The leased property is to be used for the purposes as designated by the City of Moses Lake and as are consistent with the Moses Lake Municipal Code section 18.35.020. The primary use of the property shall be for aviation uses. The Lessee shall not use the said Premises in such a manner to interfere with the rights of other airport users or the Lessor. The Lessee shall not use said Premises in any illegal manner. Any storage of household items, boats, trailers, RV’s, vehicles, and other non-aviation related items shall be permitted only in conjunction with, and secondary to, the primary aviation use. All use of the property must comply with any rules of the Airport Commission. 4. Cost of Space and Utilities: Beginning January 1, 2020 the cost for leasing the property shall be 6.2 cents ($.062) per square foot per year for commercial properties and 11.3 cents ($.113) per square foot per year for non-commercial properties. Non-commercial property shall be increased by fifty percent (50%) for hangars with doors at one side to take into account the movement area outside the hangar and by one hundred percent (100%) for hangars with doors at both sides to take into account the movement area outside the hangar. Properties are designated commercial or non-commercial pursuant to the recommendation of the Moses Lake Airport Advisory Board. The lease rate shall be increased annually by the September to September West Coast-B/C All Urban Consumer Price Index as reported by the U. S. Department of Labor. Payment shall be made to the Lessor by the Lessee pursuant to the option selected by Lessee below: ﬦ in full on or before January 31st of each year, or ﬦ paid one-half on or before January 31st and one-half on or before July 31st of each year (Lessee shall initial his/her selection) Pursuant to RCW 14.08.120 as now enacted or as amended, Lessor and Lessee shall review the rental amount at the expiration of the initial ten (10) year term and every five years thereafter in order to adjust the rental amount at the commencement of each new five year period. If the parties fail to agree on the rental amount for the five year period, they shall submit the matter to arbitration pursuant to the procedure in RCW 14.08.120. Moses Lake Council Packet 1-14-20, Page 143 of 165 Lessee shall make all arrangements for and pay for all utilities and services furnished to or used by it, including without limitation, gas, electricity, water, telephone service, janitorial service, snow removal, and trash collection, and for all connection charges. 5. Alterations and Improvements: Lessee shall not make any alterations or improvements to the Premises without Lessor’s written consent. Prior to commencement of any work, Lessee shall pay the amount of any increase in premiums on insurance policies provided for herein because of endorsements to be made covering the risk during the course of work. The Lessee shall be responsible for any charges attributable to improvements on the leased property assessed by any governmental agency or private party including, but not limited to, all utility connection fees, hook up and utility system development charges and fees, electrical connection charges and fees, etc. Additionally, the Lessee shall pay all such charges previously assessed against the property which are due and outstanding at the time this lease is executed. If Lessee makes any alterations or improvements to the Premises as provided in this paragraph, the alterations or improvements shall not be commenced until ten (10) days after Lessor has received notice from Lessee stating the date the installation of the alterations or improvements is to commence so that Lessor can post and record an appropriate notice of non-responsibility if it so elects. Lessee shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease Agreement. Lessee shall keep the Premises free and clear of all mechanic’s and/or materialmen’s liens resulting from any construction done by or for Lessee. At the termination of this agreement, the Lessee shall have the option of either removing the improvements placed on said ground space within ninety (90) days of the date of termination, or with the consent of the Lessor leave the improvements for the ownership and use of the Lessor. If the Lessor refuses to acquire ownership of the improvements the Lessee will be responsible for removal of all improvements or remnants thereof and the clean-up of the property prior to release from this agreement. Lessee shall at all times during this Lease maintain property insurance at its sole cost and in such amounts and coverages as determined adequate by Lessor for all improvements on the Premises in order to protect such improvements from hazards such as fire, casualty, vandalism, and other damages. 6. Construction: Prior to construction of any structures, additions, improvements, or major modifications, plans must be presented to the Airport Commission for its suggestions and review and then to the Building Division of the City of Moses Lake for its approval and granting of a building permit. The cost of construction shall be the responsibility of the Lessee. Lessee shall complete building projects within one hundred twenty (120) days. Construction shall be in a neat and orderly manner and shall in no way hinder on-going aircraft operations or interfere with other airport users. Prior to an occupancy permit being issued, all debris and material shall be removed from the Premises. 7. Sublease and Assignment: This Lease is personal to the Lessee and Lessee covenants and agrees not to assign this Lease, or any interest therein, and not to sublet the Leased Premises or any part thereof, without first obtaining written consent from Lessor. Lessor’s consent shall not be unreasonably withheld, but consideration will be given to the financial status, reputation, and compatibility of the proposed assignee/sub lessee. Any proposed or existing assignment or sublease shall be subject to all provisions of this Lease, including this assignment/subletting restriction and the use restrictions of the Premises, and the Lessee will remain liable under the terms of this Lease during the term of any sublease. Upon the occurrence of an event of default, if the Premises or any part thereof are then assigned or sublet, Lessor, in addition to any other remedies herein provided or provided by law, may at its option collect directly from such assignee or sub lessee all rents becoming due to Lessee under such assignment, transfer, or sublease and apply such rent against any sums due to Lessor from Lessee hereunder, and no such collection Moses Lake Council Packet 1-14-20, Page 144 of 165 shall be construed to constitute a novation or a release of Lessee from the further performance of Lessee’s obligations hereunder. 8. Safety and Health Regulations: It is the agreement and understanding of both parties that Lessee shall have the sole and complete responsibility for ensuring a safe work place and compliance with all applicable health and safety regulations, whether state or federal. 9. Indemnification and Hold Harmless: The Lessor shall not be liable to the Lessee, or to any person or persons whomsoever, for any damage to the property for injury to or death of any person arising out of or in any way connected with the possession, maintenance, or operation of said Premises, improvements or equipment by the Lessee. Lessee shall defend, indemnify, and hold harmless the Lessor, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Lessee’s use of Premises, or from the conduct of Lessee’s business, or from any activity, work or thing done, permitted, or suffered by Lessee in or about the Premises, except only such injury or damage as shall have been occasioned by the sole negligence of the Lessor. It is further specifically and expressly understood that the indemnification provided herein constitutes the Lessee's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 10. Insurance: A. Insurance Term: The Lessee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Lessee’s operation and use of the leased Premises. B. No Limitation: Lessee’s maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the Lessor’s recourse to any remedy available at law or in equity. C. Minimum Scope of Insurance: Lessee shall obtain insurance of the types and coverage described below: 1. Comprehensive General Liability insurance for commercial operators shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The Lessor shall be named as an additional insured on Lessee’s Comprehensive General Liability insurance policy using ISO Additional Insured-Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing at least as broad coverage. Private operators are required to obtain aircraft insurance including aircraft liability insurance covering injury and property damage to third parties arising out of the ownership, operation, or maintenance of aircraft on Lessor’s property in a form satisfactory to the Lessor. 2. Property insurance shall be written on an all risk basis. 3. Automobile liability D. Minimum Amounts of Insurance: Lessee shall maintain the following insurance limits: Moses Lake Council Packet 1-14-20, Page 145 of 165 1. Comprehensive General Liability insurance and aircraft and aircraft liability insurance shall be written with limits no less than $1,000,000 each occurrence with aircraft exclusions deleted. 2. Property insurance shall be written covering the full value of Lessee’s property and improvements with no coinsurance provisions. 3. Automobile liability with limits no less than the minimum limits required by the State of Washington. E. Other Insurance Provisions: The Lessee’s Comprehensive General Liability or aircraft and aircraft liability insurance policy or policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the Lessor. Any Insurance, self-insurance, or self-insured pool coverage maintained by the Lessor shall be excess of the Lessee’s insurance and shall not contribute with it. Lessee’s insurance policy or policies shall not include any other entity or party as a named insured other than Lessee and the Lessor as an additional insured. F. Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. G. Verification of Coverage: Lessee shall furnish the Lessor with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Lessee. The parties recognize the inherent risks of aviation related uses and operations on airports and, accordingly, the Lessor’s liability exposure as property owner and landlord. Therefore, it is expressly understood and agreed that Lessee shall deliver the original certificates and a copy of the amendatory endorsements, including the additional insured endorsement, to Lessor evidencing all required insurance coverage; failure to provide Lessor with such documentation shall constitute a material breach of this Lease for which Lessor may terminate this Lease as provided for herein. Such documentation shall be provided to Lessor within ten (10) days of the execution of the Agreement and within thirty (30) days of the beginning of each consecutive year. H. Waiver of Subrogation: Lessee and Lessor hereby release and discharge each other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. I. Lessee’s Property Insurance: Lessee shall purchase and maintain during the term of the lease all-risk property insurance covering the Building for its full replacement value without any coinsurance provisions. J. Notice of Cancellation: The insurance policies shall contain a clause prohibiting cancellation or termination of the policies without first giving ten (10) days’ prior written notice of such cancellation or termination to the Lessor K. Failure to Maintain Insurance: Failure on the part of the Lessee to maintain the insurance as required shall constitute a material breach of lease, upon which the Lessor may, after giving five (5) business days’ notice to the Lessee to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the Lessor on demand. L. Lessor Full Availability of Lessee Limits: If the Lessee maintains higher insurance limits than the minimums shown above, the Lessor shall be insured for the full available limits of Comprehensive General and Excess or Umbrella liability maintained by the Lessee, Moses Lake Council Packet 1-14-20, Page 146 of 165 irrespective of whether such limits maintained by the Lessee are greater than those required by this contract or whether any certificate of insurance furnished to the Lessor evidences limits of liability lower than those maintained by the Lessee. 11. Taxes and Licenses: The Lessee shall pay, before their respective due dates, all taxes, fees, assessments and/or licenses which may be assessed against the improvements placed on the ground space, or be payable by reason of the use and occupancy of said space by the Lessee. Lessee shall be liable for, and shall pay throughout the term of this Lease Agreement any leasehold tax assessed by the State of Washington (which is currently 12.84%) in lieu of property tax, to be paid concurrently with annual rent during the term of said Lease Agreement. 12. Laws: The Lessee agrees to conform to any and all rules and regulations adopted by the City, the state, or the Federal Aviation Administration relative to operation and control of space at the Moses Lake Municipal Airport. Upon a written request by Lessor, Lessee will verify, within a reasonable time frame, compliance with any rules, laws, regulations or other applicable requirements. Lessee shall not delegate or contract away any of these responsibilities. 13. Inspection: The Lessor shall have the right to inspect the interior of any building, at any reasonable time upon notice and request made to the Lessee. 14. Maintenance: Lessee covenants and agrees to maintain, at its cost, the Premises and any improvements in good condition throughout the term of this Lease Agreement. Lessor shall have no further responsibility to maintain the Premises. Lessee shall be responsible for weed control, snow removal, and normal maintenance including janitorial services. Lessee shall further be responsible to keep and maintain the sewer system servicing the building in good working order and free from any blockage or obstructions. Lessor shall not be responsible for any damages to the Premises caused by vandalism, malicious mischief, or theft by third parties. Securing the Premises shall be the responsibility of the Lessee. 15. Access Rights: The Lessee is given the right of ingress and egress of ground vehicles between the leased property and public road via designated roadways on the airport but not on the airport taxiways. The Lessee is given the right of aircraft movement to or from the runway via airport taxiways. 16. Flammable Material Storage: The Lessee shall not store any flammable materials except: A. Those in the fuel or lubrication system of a motorized device stored on the grounds. B. Unless the storage device is approved by current regulations or has been in continuous use since being established under those regulations in effect at the time of installation. C. A reasonable amount of petroleum products for personal use, except for the Lessees of commercial lots. In addition to storing a reasonable amount of petroleum products for personal use, commercial lot Lessees may store petroleum products for sale so long as the storage facilities have been approved by the City Manager and all other applicable permits have been applied for and received. 17. Risk of Loss: The Lessor shall never be responsible for loss of improvements placed on the Premises by the Lessee or the loss, damage, or destruction of aircraft or other property stored on the Premises except as a direct result of the negligence of the Lessor or its employees. 18. Events of Default: The occurrence of any one of the following events shall constitute a material breach and default under this Lease by Lessee: A. Lessee shall have failed to pay an installment of rent or any other amount payable hereunder when due, where such failure shall continue for a period of ten (10) days after written notice from Lessor to Lessee notifying Lessee of its failure to pay such amounts. Moses Lake Council Packet 1-14-20, Page 147 of 165 B. Lessee shall have failed to execute and deliver such documents as required by Section 6 and within the time periods specified, where such failure shall continue for a period of three (3) business days after written notice thereof from Lessor. C. There shall be a default of any condition, covenant, agreement or other obligation on the part of Lessee (other than those defaults as described in subsections (a) and (b) hereof) to be kept, observed or performed hereunder, and such default shall be continuing for a period of more than thirty (30) days after written notice by Lessor to Lessee specifying the default and requiring that it discontinue. D. If Lessee fails to comply with the requirements for insurance pursuant to Section 10 hereof or, if any policy of insurance upon the Property or any part thereof from time to time carried by Lessor shall be cancelled or about to be cancelled by the insurer by reason of the use or occupation of the Premises by Lessee or any of Lessee's Employees, or anyone permitted by Lessee or such other parties to be upon the Premises and Lessee after receipt of notice in writing from Lessor shall have failed to take such immediate steps as shall enable Lessor to reinstate or avoid cancellation (as the case may be) of such policy of insurance. E. The Premises shall, without the prior written consent of Lessor, be used (i) by any persons other than Lessee or its permitted assigns or sub lessees (ii) for any purpose other than that for which they were leased or occupied, or (iii) by any persons whose occupancy is prohibited by this Lease. F. The Premises shall be vacated or abandoned, or remain unoccupied without the prior written consent of Lessor, for sixty (60) or more consecutive days while capable of being occupied. G. The balance of the Term of this Lease or any of the goods and chattels of Lessee located in the Premises shall at any time be seized in execution pursuant to a non-appealable judgment. H. Lessee commences any bankruptcy, reorganization or insolvency proceeding, or other proceeding under any federal, state or other law for the relief of debtors. I. Lessee fails to obtain the dismissal, within ninety (90) days after the commencement thereof, of any bankruptcy, reorganization or insolvency proceeding, or other proceeding under any law for the relief of debtors, instituted against it by one or more third parties or fails actively to oppose any such proceeding, or, in any such proceeding, defaults or files an answer admitting the material allegations upon which the proceeding was based or alleges its willingness to have an order for relief entered or its desire to seek liquidation, reorganization or adjustment of any of its debts. 19. Authority to Obligate Lessor: Lessor, as owner of the property subject to this agreement, authorizes the City Manager, subject to approval by the City Council, as the individual authorized to execute or amend agreements and obligate the Lessor. 20. Rights and Reservations of Lessor: Lessor reserves the right to temporarily close the airport facility, including, but not limited to, the runways, taxiway, apron, parking facilities and any other areas incident to the airport for the purpose of maintenance, repair, further development or construction, or for the safety of the general public. 21. Hazardous Substances: Lessee certifies, represents warrants, covenants and agrees that: A. Lessee agrees to comply with all applicable local, state and federal environmental laws, regulations, ordinances and administrative and judicial orders relating to the generation, Moses Lake Council Packet 1-14-20, Page 148 of 165 recycling, treatment, use sale, storage, handling, transport and disposal of any Hazardous Substances (as defined below) by any person in or around the Premises. Lessee will not, without Lessor’s prior written consent, keep in or around the Premises, for use, disposal, treatment, generation, storage, or sale, any Hazardous Substances. B. Lessee has not and will not release or waive the liability of any party who may be potentially responsible for the presence or removal of Hazardous Substances on or from the Premises. C. Lessee shall be fully and completely liable to Lessor for, and shall indemnify and hold Lessor harmless from and against any and all actual or alleged claims, demands, damages, losses, liens, liabilities, penalties, fines, lawsuits and other proceedings and costs and expenses (including attorney's fees and disbursements), which accrue to or are incurred by Lessee or Lessor which arise or are alleged to arise directly or indirectly from or out of, or are in any way connected with any operations or activities (including, without limitation, use, disposal, transportation, storage, generation or sale of Hazardous Substances) in or around the Premises during Lessee’s possession or control of the Premises which directly or indirectly result in the Premises or any Other Property (as defined below) becoming contaminated with Hazardous Substances or otherwise violating any applicable law, rule or regulation pertaining to Hazardous Substances, and the cleanup of Hazardous Substances from the Premises or any Other Property. Lessee acknowledges that it will be solely responsible for all costs and expenses relating to investigation (including preliminary investigation) and cleanup of Hazardous Substances from the Premises or from any Other Property. D. As used in the Agreement, “Hazardous Substances” means any chemical, material, waste or similar matter defined, classified, listed or designated as harmful, hazardous, extremely hazardous, dangerous, toxic or radioactive, or as a contaminant or pollutant, or other similar term, by, and/or which are subject to regulation under, any federal, state or local environmental statute, regulation or ordinance presently in effect or that may be promulgated in the future, and as they may be amended from time to time, and shall include petroleum products and byproducts. As used in this Agreement, “Other Property” means any real or personal property (including, without limitation, surface or ground water) which becomes contaminated with Hazardous Substances as a result of operations or other activities on, or around the contamination of, the Premises. 22. Nondiscrimination: Pursuant to Title VI of the Civil Rights Act of 1964, and by Part 15 of the Federal Aviation Regulations, Lessee agrees it will not discriminate on the grounds of race, sex, color, or national origin, and will not permit discrimination against any person or group of persons in any manner prohibited by Part 15 of the Federal Aviation Regulations. Lessor reserves the right to take such action as the United States may direct to enforce the provisions of this covenant, or as it may find necessary. 23. Holding Over: If Lessee, with the implied or express consent of Lessor, shall hold over after expiration of the term of this Lease, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month-to-month and shall be for a monthly rate of one hundred fifty percent (150%) of the last rental rate under the Lease. 24. Permits and Licenses: Lessee shall obtain and maintain in current status all permit and licenses that are required under any applicable laws and regulations in connection with Lessee’s use, occupancy, or operations at the Premises or airport. In the event that Lessee receives notice from any governmental entity that Lessee lacks, or is violation of, any such permit or license, Lessee shall provide Lessor with timely written notice of the same. 25. Nuisance Storage of Items: Lessee shall not store on the Premises any inoperable equipment, discarded or unsightly materials, or materials likely to create a hazard; shall not use areas outside of enclosed buildings for storage; and shall store trash in covered metal receptacles. Storage in Moses Lake Council Packet 1-14-20, Page 149 of 165 violation of this section shall constitute a nuisance condition and an event of default subject to the remedies set forth in Section 18 above. 26. Survival: Lessee’s duty to defend, indemnify and hold Lessor harmless from all such claims, liability and damages arising out of the acts or omissions of Lessee shall survive the termination and/or expiration of this Lease. 27. Notices: Notices to the City, provided for herein, shall be sufficient if sent by certified mail, postage prepaid, addressed to: City Manager City of Moses Lake 401 S. Balsam Moses Lake, WA 98837 Notices to Lessee shall be sufficient if sent by certified mail, postage prepaid, addressed to:______________, or to such other respective address the parties may designate to each other in writing from time to time. 28. Governing Law, Attorney’s Fees, and Venue: This Lease shall be governed by and construed in accordance with the laws of the State of Washington. It is understood and agreed that in the event it is necessary for either party to engage the services of an attorney to enforce any provision of this lease, the prevailing party in such action shall be entitled to reasonable attorney fees in any state or federal court, including attorney fees and costs on appeal, in addition to the statutory attorney fees, even though said suit results in the forfeiture of this lease. Venue for any such proceedings shall be in Grant County, Washington. Without limiting any other provision of this Lease, in the event that Lessor employs an attorney (including the City Attorney) for the purpose of sending a notice to Lessee for the defaults or covenant violations of Lessee, then Lessee shall pay a reasonable attorney fee for the preparation and costs of delivery of the said notice. 29. Authority: If Lessee is a corporation, it shall deliver to the Lessor on execution of this Lease Agreement a certified letter signed by its board of directors authorizing the execution of this Lease Agreement and naming the officers that are authorized to execute this Lease Agreement on behalf of the corporation. If Lessee is a joint venture or partnership, all joint ventures or partners shall execute the Lease Agreement. If Lessee is a limited liability company, all members or managers shall execute the Lease Agreement. 30. Independent Advice. The Lessee acknowledges that it has ascertained and weighed all of the effects and circumstances likely to influence its judgment with respect to this Lease; that it has had the opportunity to seek and obtain independent legal advice, that all of the provisions hereof, as well as all questions pertinent thereto, have been fully, satisfactorily and independently examined and explained to it. 31. Cessation of Airport: In the event the Moses Lake City Council determines to cease operating the Moses Lake Municipal Airport permanently as an airport during the term of this Lease Agreement, Lessor and Lessee's mutual obligations hereunder will cease. Nothing herein shall be construed to interfere with the City's right to cease such operation for a valid and compelling governmental purpose including financial, regulatory, environmental, or operational reasons. Lessee agrees to waive any and all claims for damages should the Moses Lake Municipal Airport cease operation pursuant to this Section. Provided, however, that any Lessee wishing to remove improvements may do so in accordance with the provisions in Section 5 but within 180 days, and provided further that in the event the City sells the airport property to a private third party, the airport property purchaser shall be required to pay to the Lessee 1.5% times the current Grant County Auditor’s assessed value of any Lessee-owned improvements. 32. Warranties/guarantees: The City makes no warranty or guarantee of any nature whatsoever concerning the condition of the leased Premises, including the physical condition thereof, or any Moses Lake Council Packet 1-14-20, Page 150 of 165 condition which may affect the leased Premises, and it is agreed that the City will not be responsible for any loss, damage or costs which may be incurred by Lessee by reason of any such condition or conditions. Lessee shall be entitled to possession of the Premises upon execution of this Lease Agreement and thereafter in accordance with the terms herein. Lessee’s taking possession of the Premises on commencement of the term shall constitute Lessee’s acknowledgment that the Premises are in good condition. Lessee has examined and inspected the Premises prior to entering into this Lease Agreement and accepts them in their present condition, AS IS. Lessor shall not be responsible to the Lessee for any damages or injuries to persons or property by reason of the conditions or construction of the Premises or any portion thereof, and the Lessor shall not be held to have made any representations or warranty whatsoever as to the construction, condition or usefulness of any portion of the Premises. 33. Non-waiver: Any waiver of any breach of covenants herein contained to be kept and performed by either party hereto, shall not be deemed or considered as a continuing waiver and shall not operate to bar or prevent the other party hereto from declaring a forfeiture, termination or cancellation for any succeeding breach either of the same condition or covenant or otherwise. Acceptance or payment of rental shall not be deemed a waiver. 34. Landlord’s Lien: In addition to any statutory lien for rent in Lessor’s favor, Lessor shall have and Lessee hereby grants to Lessor a continuing security interest for all rentals and other sums of money becoming due hereunder from Lessee, upon all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract rights, chattel paper and other personal property of Lessee situation on the Premises, and such property shall not be removed therefrom without the consent of the Lessor until all arrearages in rent as well as all other sums of money then due to Lessor hereunder shall first have been paid and discharged. In the event of a default under this Lease, Lessor shall have, in addition to any other remedies provided herein or by law, all rights and remedies under the Uniform Commercial Code, including without limitation the right to sell the property described in this paragraph at public or private sale. Lessee hereby agrees to execute such financing statements and other instruments necessary or desirable in Lessor’s discretion to perfect the security interest hereby created. Any statutory lien for rent is not hereby waived, the express contractual lien herein granted being in addition and supplementary thereto. This lien shall be subordinate and subject to any Leasehold Mortgage encumbering the leasehold, including, without limitation, any security interest in and to all such property in favor of any of Lessee’s lenders. 35. Construction of Agreement: In the event of a dispute between the parties as to the meaning of terms, phrases, or specific provisions of the Lease Agreement, the authorship of this Lease Agreement shall not be cause for this Lease Agreement to be construed against any party nor in favor of any party. This Lease Agreement has been submitted to the scrutiny of all parties and their respective legal counsel, and shall be given a fair and reasonable interpretation in accordance with the words hereof without consideration or weight being given to its being drafted by or for one of the parties. 36. Entire Agreement: This Lease Agreement constitutes the whole agreement between the Lessor and Lessee and replaces and supersedes any prior agreements. There are no terms, obligations, covenants or conditions other than those contained herein. No modification or amendment of this Lease Agreement shall be valid and effective unless evidenced by an agreement in writing. Dated: ____________________________, 2020 Dated: ___________________________, 2020 LESSEE CITY OF MOSES LAKE By _____________________________________ By ____________________________________ Kevin Fuhr, Interim City Manager Moses Lake Council Packet 1-14-20, Page 151 of 165 AGREEMENT FOR LEASE OF SPACE ON THE MOSES LAKE MUNICIPAL AIRPORT This agreement is made and entered into on January 1, 2018 by and between the City of Moses Lake, a Washington non-charter code city hereinafter referred to as "Lessor", and «First_Name», hereinafter referred to as "Lessee". WHEREAS, the Lessor is in possession of an airport commonly known as "Moses Lake Municipal Airport", and WHEREAS, the Lessee is desirous of leasing property on a portion of the airport; NOW, THEREFORE, the parties hereto enter into the following agreement for the rental of property for use as an aircraft hangar, or other appropriate uses as allowed by the City of Moses Lake. 1. Designation of Property: The Lessor hereby leases to the Lessee Parcel [insert] at the Moses Lake Municipal Airport as designated on Municipal Tract #12, Lot 2 Commercial Binding Site Plan, recorded January 27, 1999 (the “Premises”). 2. Term: The term of this agreement shall be from January 1, 202018 to and including December 31, 203298. Lessee shall have the option to renew the agreement for an additional twenty (20) year term provided Lessee shall give Lessor 180 day’s prior written notice of its intent to renew. Any renewal shall be on the same terms and conditions with the exception of the rental amount which shall be subject to renegotiation pursuant to Section 4, below. 3. Use: The leased property is to be used for the purposes as designated by the City of Moses Lake and as are consistent with the Moses Lake Municipal Code section 18.35.020. The primary use of the property shall be for aviation uses. The Lessee shall not use the said Premises in such a manner to interfere with the rights of other airport users or the Lessor. The Lessee shall not use said Premises in any illegal manner. Any storage of household items, boats, trailers, RV’s, vehicles, and other non-aviation related items shall be permitted only in conjunction with, and secondary to, the primary aviation use. All use of the property must comply with any rules of the Airport Commission. 4. Cost of Space and Utilities: Beginning January 1, 202018 the cost for leasing the property shall be 6.2 cents ($.062) per square foot per year for commercial properties and 11.3 cents ($.113) per square foot per year for non-commercial properties. Non-commercial property shall be increased by fifty percent (50%) for hangars with doors at one side to take into account the movement area outside the hangar and by one hundred percent (100%) for hangars with doors at both sides to take into account the movement area outside the hangar. Properties are designated commercial or non-commercial pursuant to the recommendation ofby the Moses Lake Airport Advisory BoardCommission. The lease rate shall be increased annually by the September to September West Coast-B/C All Urban Consumer Price Index as reported by the U. S. Department of Labor. Payment shall be made to the Lessor by the Lessee pursuant to the option selected by Lessee below: ﬦ in full on or before January 31st of each year, or ﬦ paid one-half on or before January 31st and one-half on or before July 31st of each year (Lessee shall initial his/her selection) Pursuant to RCW 14.08.120 as now enacted or as amended, Lessor and Lessee shall review the rental amount at the expiration of the initial ten (10) year term and every five years thereafter in order to adjust the rental amount at the commencement of each new five year period. If the parties fail to agree on the rental amount for the five year period, they shall submit the matter to arbitration pursuant to the procedure in RCW 14.08.120. Moses Lake Council Packet 1-14-20, Page 152 of 165 Lessee shall make all arrangements for and pay for all utilities and services furnished to or used by it, including without limitation, gas, electricity, water, telephone service, janitorial service, snow removal, and trash collection, and for all connection charges. 5. Alterations and Improvements: Lessee shall not make any alterations or improvements to the Premises without Lessor’s written consent. Prior to commencement of any work, Lessee shall pay the amount of any increase in premiums on insurance policies provided for herein because of endorsements to be made covering the risk during the course of work. The Lessee shall be responsible for any charges attributable to improvements on the leased property assessed by any governmental agency or private party including, but not limited to, all utility connection fees, hook up and utility system development charges and fees, electrical connection charges and fees, etc. Additionally, the Lessee shall pay all such charges previously assessed against the property which are due and outstanding at the time this lease is executed. If Lessee makes any alterations or improvements to the Premises as provided in this paragraph, the alterations or improvements shall not be commenced until ten (10) days after Lessor has received notice from Lessee stating the date the installation of the alterations or improvements is to commence so that Lessor can post and record an appropriate notice of non-responsibility if it so elects. Lessee shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease Agreement. Lessee shall keep the Premises free and clear of all mechanic’s and/or materialmen’s liens resulting from any construction done by or for Lessee. At the termination of this agreement, the Lessee shall have the option of either removing the improvements placed on said ground space within ninety (90) days of the date of termination, or with the consent of the Lessor leave the improvements for the ownership and use of the Lessor. If the Lessor refuses to acquire ownership of the improvements the Lessee will be responsible for removal of all improvements or remnants thereof and the clean-up of the property prior to release from this agreement. Lessee shall at all times during this Lease maintain property insurance at its sole cost and in such amounts and coverages as determined adequate by Lessor for all improvements on the Premises in order to protect such improvements from hazards such as fire, casualty, vandalism, and other damages. 6. Construction: Prior to construction of any structures, additions, improvements, or major modifications, plans must be presented to the Airport Commission for its suggestions and review and then to the Building Division of the City of Moses Lake for its approval and granting of a building permit. The cost of construction shall be the responsibility of the Lessee. Lessee shall complete building projects within one hundred twenty (120) days. Construction shall be in a neat and orderly manner and shall in no way hinder on-going aircraft operations or interfere with other airport users. Prior to an occupancy permit being issued, all debris and material shall be removed from the Premises. 7. Sublease and Assignment: This Lease is personal to the Lessee and Lessee covenants and agrees not to assign this Lease, or any interest therein, and not to sublet the Leased Premises or any part thereof, without first obtaining written consent from Lessor. Lessor’s consent shall not be unreasonably withheld, but consideration will be given to the financial status, reputation, and compatibility of the proposed assignee/sub lessee. Any proposed or existing assignment or sublease shall be subject to all provisions of this Lease, including this assignment/subletting restriction and the use restrictions of the Premises, and the Lessee will remain liable under the terms of this Lease during the term of any sublease. Upon the occurrence of an event of default, if the Premises or any part thereof are then assigned or sublet, Lessor, in addition to any other remedies herein provided or provided by law, may at its option collect directly from such assignee or sub lessee all rents becoming due to Lessee under such assignment, transfer, or sublease and apply such rent against any sums due to Lessor from Lessee hereunder, and no such collection Moses Lake Council Packet 1-14-20, Page 153 of 165 shall be construed to constitute a novation or a release of Lessee from the further performance of Lessee’s obligations hereunder. 8. Safety and Health Regulations: It is the agreement and understanding of both parties that Lessee shall have the sole and complete responsibility for ensuring a safe work place and compliance with all applicable health and safety regulations, whether state or federal. 9. Indemnification and Hold Harmless: The Lessor shall not be liable to the Lessee, or to any person or persons whomsoever, for any damage to the property for injury to or death of any person arising out of or in any way connected with the possession, maintenance, or operation of said Premises, improvements or equipment by the Lessee. Lessee shall defend, indemnify, and hold harmless the Lessor, its officers, officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Lessee’s use of Premises, or from the conduct of Lessee’s business, or from any activity, work or thing done, permitted, or suffered by Lessee in or about the Premises, except only such injury or damage as shall have been occasioned by the sole negligence of the Lessor. It is further specifically and expressly understood that the indemnification provided herein constitutes the Lessee's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 10. Insurance: A. Insurance Term: The Lessee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the Lessee’s operation and use of the leased Premises. B. No Limitation: Lessee’s maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the Lessor’s recourse to any remedy available at law or in equity. C. Minimum Scope of Insurance: Lessee shall obtain insurance of the types and coverage described below: 1. Comprehensive General Liability insurance for commercial operators shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The Lessor shall be named as an additional insured on Lessee’s Comprehensive General Liability insurance policy using ISO Additional Insured-Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing at least as broad coverage. Private operators are required to obtain aircraft insurance including aircraft liability insurance covering injury and property damage to third parties arising out of the ownership, operation, or maintenance of aircraft on Lessor’s property in a form satisfactory to the Lessor. 2. Property insurance shall be written on an all risk basis. 3. Automobile liability 4. Hangar-keeper’s liability if Lessee has non-owned aircraft under its care, custody, or control, including consignment aircraft sales. D. Minimum Amounts of Insurance: Lessee shall maintain the following insurance limits: Moses Lake Council Packet 1-14-20, Page 154 of 165 1. Comprehensive General Liability insurance and aircraft and aircraft liability insurance shall be written with limits no less than $1,000,000 each occurrence with aircraft exclusions deleted. 2. Property insurance shall be written covering the full value of Lessee’s property and improvements with no coinsurance provisions. 3. Automobile liability with limits no less than the minimum limits required by the State of Washington$1,000,000 any auto. 4. Hangar-keeper’s liability shall be equal to the value of the aircraft in Lessee’s care, custody, or control. E. Other Insurance Provisions: The Lessee’s Comprehensive General Liability Liability or aircraft and aircraft liability insurance policy or policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the Lessor. Any Insurance, self-insurance, or self-insured pool coverage maintained by the Lessor shall be excess of the Lessee’s insurance and shall not contribute with it. Lessee’s insurance policy or policies shall not include any other entity or party as a named insured other than Lessee and the Lessor as an additional insured. F. Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. G. Verification of Coverage: Lessee shall furnish the Lessor with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Lessee. The parties recognize the inherent risks of aviation related uses and operations on airports and, accordingly, the Lessor’s liability exposure as property owner and landlord. Therefore, it is expressly understood and agreed that Lessee shall deliver the original certificates and a copy of the amendatory endorsements, including the additional insured endorsement, to Lessor evidencing all required insurance coverage; failure to provide Lessor with such documentation shall constitute a material breach of this Lease for which Lessor may terminate this Lease as provided for herein. Such documentation shall be provided to Lessor within ten (10) days of the execution of the Agreement and within thirty (30) days of the beginning of each consecutive year. H. Waiver of Subrogation: Lessee and Lessor hereby release and discharge each other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. This release shall apply only to the extent that such claim, loss or liability is covered by insurance. I. Lessee’s Property Insurance: Lessee shall purchase and maintain during the term of the lease all-risk property insurance covering the Building for its full replacement value without any coinsurance provisions. J. Notice of Cancellation: The insurance policies shall contain a clause prohibiting cancellation or termination of the policies without first giving ten (10) days’ prior written notice of such cancellation or termination to the Lessor K. Failure to Maintain Insurance: Failure on the part of the Lessee to maintain the insurance as required shall constitute a material breach of lease, upon which the Lessor may, after giving five (5) business days’ notice to the Lessee to correct the breach, terminate the Lease or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the Lessor on demand. Moses Lake Council Packet 1-14-20, Page 155 of 165 L. Lessor Full Availability of Lessee Limits: If the Lessee maintains higher insurance limits than the minimums shown above, the Lessor shall be insured for the full available limits of Comprehensive General and Excess or Umbrella liability maintained by the Lessee, irrespective of whether such limits maintained by the Lessee are greater than those required by this contract or whether any certificate of insurance furnished to the Lessor evidences limits of liability lower than those maintained by the Lessee. 11. Taxes and Licenses: The Lessee shall pay, before their respective due dates, all taxes, fees, assessments and/or licenses which may be assessed against the improvements placed on the ground space, or be payable by reason of the use and occupancy of said space by the Lessee. Lessee shall be liable for, and shall pay throughout the term of this Lease Agreement any leasehold tax assessed by the State of Washington (which is currently 12.84%) in lieu of property tax, to be paid concurrently with annual rent during the term of said Lease Agreement. 12. Laws: The Lessee agrees to conform to any and all rules and regulations adopted by the City, the state, or the Federal Aviation Administration relative to operation and control of space at the Moses Lake Municipal Airport. Upon a written request by Lessor, Lessee will verify, within a reasonable time frame, compliance with any rules, laws, regulations or other applicable requirements. Lessee shall not delegate or contract away any of these responsibilities. 13. Inspection: The Lessor shall have the right to inspect the interior of any building, at any reasonable time upon notice and request made to the Lessee. 14. Maintenance: Lessee covenants and agrees to maintain, at its cost, the Premises and any improvements in good condition throughout the term of this Lease Agreement. Lessor shall have no further responsibility to maintain the Premises. Lessee shall be responsible for weed control, snow removal, and normal maintenance including janitorial services. Lessee shall further be responsible to keep and maintain the sewer system servicing the building in good working order and free from any blockage or obstructions. Lessor shall not be responsible for any damages to the Premises caused by vandalism, malicious mischief, or theft by third parties. Securing the Premises shall be the responsibility of the Lessee. 15. Access Rights: The Lessee is given the right of ingress and egress of ground vehicles between the leased property and public road via designated roadways on the airport but not on the airport taxiways. The Lessee is given the right of aircraft movement to or from the runway via airport taxiways. 16. Flammable Material Storage: The Lessee shall not store any flammable materials except: A. Those in the fuel or lubrication system of a motorized device stored on the grounds. B. Unless the storage device is approved by current regulations or has been in continuous use since being established under those regulations in effect at the time of installation. C. A reasonable amount of petroleum products for personal use, except for the Lessees of commercial lots. In addition to storing a reasonable amount of petroleum products for personal use, commercial lot Lessees may store petroleum products for sale so long as the storage facilities have been approved by the City Manager and all other applicable permits have been applied for and received. 17. Risk of Loss: The Lessor shall never be responsible for loss of improvements placed on the Premises by the Lessee or the loss, damage, or destruction of aircraft or other property stored on the Premises except as a direct result of the negligence of the Lessor or its employees. 18. Events of Default: The occurrence of any one of the following events shall constitute a material breach and default under this Lease by Lessee: Moses Lake Council Packet 1-14-20, Page 156 of 165 A. Lessee shall have failed to pay an installment of rent or any other amount payable hereunder when due, where such failure shall continue for a period of ten (10) days after written notice from Lessor to Lessee notifying Lessee of its failure to pay such amounts. B. Lessee shall have failed to execute and deliver such documents as required by Section 6 and within the time periods specified, where such failure shall continue for a period of three (3) business days after written notice thereof from Lessor. C. There shall be a default of any condition, covenant, agreement or other obligation on the part of Lessee (other than those defaults as described in subsections (a) and (b) hereof) to be kept, observed or performed hereunder, and such default shall be continuing for a period of more than thirty (30) days after written notice by Lessor to Lessee specifying the default and requiring that it discontinue. D. If Lessee fails to comply with the requirements for insurance pursuant to Section 10 hereof or, if any policy of insurance upon the Property or any part thereof from time to time carried by Lessor shall be cancelled or about to be cancelled by the insurer by reason of the use or occupation of the Premises by Lessee or any of Lessee's Employees, or anyone permitted by Lessee or such other parties to be upon the Premises and Lessee after receipt of notice in writing from Lessor shall have failed to take such immediate steps as shall enable Lessor to reinstate or avoid cancellation (as the case may be) of such policy of insurance. E. The Premises shall, without the prior written consent of Lessor, be used (i) by any persons other than Lessee or its permitted assigns or sub lessees (ii) for any purpose other than that for which they were leased or occupied, or (iii) by any persons whose occupancy is prohibited by this Lease. F. The Premises shall be vacated or abandoned, or remain unoccupied without the prior written consent of Lessor, for sixty (60) or more consecutive days while capable of being occupied. G. The balance of the Term of this Lease or any of the goods and chattels of Lessee located in the Premises shall at any time be seized in execution pursuant to a non-appealable judgment. H. Lessee commences any bankruptcy, reorganization or insolvency proceeding, or other proceeding under any federal, state or other law for the relief of debtors. I. Lessee fails to obtain the dismissal, within ninety (90) days after the commencement thereof, of any bankruptcy, reorganization or insolvency proceeding, or other proceeding under any law for the relief of debtors, instituted against it by one or more third parties or fails actively to oppose any such proceeding, or, in any such proceeding, defaults or files an answer admitting the material allegations upon which the proceeding was based or alleges its willingness to have an order for relief entered or its desire to seek liquidation, reorganization or adjustment of any of its debts. 19. Authority to Obligate Lessor: Lessor, as owner of the property subject to this agreement, authorizes the City Manager, subject to approval by the City Council, as the individual authorized to execute or amend agreements and obligate the Lessor. 20. Rights and Reservations of Lessor: Lessor reserves the right to temporarily close the airport facility, including, but not limited to, the runways, taxiway, apron, parking facilities and any other areas incident to the airport for the purpose of maintenance, repair, further development or construction, or for the safety of the general public. Moses Lake Council Packet 1-14-20, Page 157 of 165 21. Hazardous Substances: Lessee certifies, represents warrants, covenants and agrees that: A. Lessee agrees to comply with all applicable local, state and federal environmental laws, regulations, ordinances and administrative and judicial orders relating to the generation, recycling, treatment, use sale, storage, handling, transport and disposal of any Hazardous Substances (as defined below) by any person in or around the Premises. Lessee will not, without Lessor’s prior written consent, keep in or around the Premises, for use, disposal, treatment, generation, storage, or sale, any Hazardous Substances. B. Lessee has not and will not release or waive the liability of any party who may be potentially responsible for the presence or removal of Hazardous Substances on or from the Premises. C. Lessee shall be fully and completely liable to Lessor for, and shall indemnify and hold Lessor harmless from and against any and all actual or alleged claims, demands, damages, losses, liens, liabilities, penalties, fines, lawsuits and other proceedings and costs and expenses (including attorney's fees and disbursements), which accrue to or are incurred by Lessee or Lessor which arise or are alleged to arise directly or indirectly from or out of, or are in any way connected with any operations or activities (including, without limitation, use, disposal, transportation, storage, generation or sale of Hazardous Substances) in or around the Premises during Lessee’s possession or control of the Premises which directly or indirectly result in the Premises or any Other Property (as defined below) becoming contaminated with Hazardous Substances or otherwise violating any applicable law, rule or regulation pertaining to Hazardous Substances, and the cleanup of Hazardous Substances from the Premises or any Other Property. Lessee acknowledges that it will be solely responsible for all costs and expenses relating to investigation (including preliminary investigation) and cleanup of Hazardous Substances from the Premises or from any Other Property. D. As used in the Agreement, “Hazardous Substances” means any chemical, material, waste or similar matter defined, classified, listed or designated as harmful, hazardous, extremely hazardous, dangerous, toxic or radioactive, or as a contaminant or pollutant, or other similar term, by, and/or which are subject to regulation under, any federal, state or local environmental statute, regulation or ordinance presently in effect or that may be promulgated in the future, and as they may be amended from time to time, and shall include petroleum products and byproducts. As used in this Agreement, “Other Property” means any real or personal property (including, without limitation, surface or ground water) which becomes contaminated with Hazardous Substances as a result of operations or other activities on, or around the contamination of, the Premises. 22. Nondiscrimination: Pursuant to Title VI of the Civil Rights Act of 1964, and by Part 15 of the Federal Aviation Regulations, Lessee agrees it will not discriminate on the grounds of race, sex, color, or national origin, and will not permit discrimination against any person or group of persons in any manner prohibited by Part 15 of the Federal Aviation Regulations. Lessor reserves the right to take such action as the United States may direct to enforce the provisions of this covenant, or as it may find necessary. 23. Holding Over: If Lessee, with the implied or express consent of Lessor, shall hold over after expiration of the term of this Lease, Lessee shall remain bound by all the covenants and agreements herein, except that the tenancy shall be from month-to-month and shall be for a monthly rate of one hundred fifty percent (150%) of the last rental rate under the Lease. 24. Permits and Licenses: Lessee shall obtain and maintain in current status all permit and licenses that are required under any applicable laws and regulations in connection with Lessee’s use, occupancy, or operations at the Premises or airport. In the event that Lessee receives notice from any governmental entity that Lessee lacks, or is violation of, any such permit or license, Lessee shall provide Lessor with timely written notice of the same. Moses Lake Council Packet 1-14-20, Page 158 of 165 25. Nuisance Storage of Items: Lessee shall not store on the Premises any inoperable equipment, discarded or unsightly materials, or materials likely to create a hazard; shall not use areas outside of enclosed buildings for storage; and shall store trash in covered metal receptacles. Storage in violation of this section shall constitute a nuisance condition and an event of default subject to the remedies set forth in Section 18 above. 26. Survival: Lessee’s duty to defend, indemnify and hold Lessor harmless from all such claims, liability and damages arising out of the acts or omissions of Lessee shall survive the termination and/or expiration of this Lease. 27. Notices: Notices to the City, provided for herein, shall be sufficient if sent by certified mail, postage prepaid, addressed to: City Manager City of Moses Lake 401 S. Balsam Moses Lake, WA 98837 Notices to Lessee shall be sufficient if sent by certified mail, postage prepaid, addressed to:______________, or to such other respective address the parties may designate to each other in writing from time to time. 28. Governing Law, Attorney’s Fees, and Venue: This Lease shall be governed by and construed in accordance with the laws of the State of Washington. It is understood and agreed that in the event it is necessary for either party to engage the services of an attorney to enforce any provision of this lease, the prevailing party in such action shall be entitled to reasonable attorney fees in any state or federal court, including attorney fees and costs on appeal, in addition to the statutory attorney fees, even though said suit results in the forfeiture of this lease. Venue for any such proceedings shall be in Grant County, Washington. Without limiting any other provision of this Lease, in the event that Lessor employs an attorney (including the City Attorney) for the purpose of sending a notice to Lessee for the defaults or covenant violations of Lessee, then Lessee shall pay a reasonable attorney fee for the preparation and costs of delivery of the said notice. 29. Authority: If Lessee is a corporation, it shall deliver to the Lessor on execution of this Lease Agreement a certified letter signed by its board of directors authorizing the execution of this Lease Agreement and naming the officers that are authorized to execute this Lease Agreement on behalf of the corporation. If Lessee is a joint venture or partnership, all joint ventures or partners shall execute the Lease Agreement. If Lessee is a limited liability company, all members or managers shall execute the Lease Agreement. 30. Independent Advice. The Lessee acknowledges that it has ascertained and weighed all of the effects and circumstances likely to influence its judgment with respect to this Lease; that it has had the opportunity to seek and obtain independent legal advice, that all of the provisions hereof, as well as all questions pertinent thereto, have been fully, satisfactorily and independently examined and explained to it. 31. Cessation of Airport: In the event the Moses Lake City Council determines to cease operating the Moses Lake Municipal Airport permanently as an airport during the term of this Lease Agreement, Lessor and Lessee's mutual obligations hereunder will cease. Nothing herein shall be construed to interfere with the City's right to cease such operation for a valid and compelling governmental purpose including financial, regulatory, environmental, or operational reasonsincluding. Lessee agrees to waive any and all claims for damages should the Moses Lake Municipal Airport cease operation pursuant to this Section. Provided, however, that any LesseeTenant wishing to remove improvements may do so in accordance with the provisions in Section 5 but within 180 days__,, and provided further that in the event the City sells the airport property to a private third party, the Moses Lake Council Packet 1-14-20, Page 159 of 165 airport property purchaser City shall be required to pay to the Lessee 1.5% times the current Grant County Auditor’s assessed value of any Lessee-owned improvements. 32. Warranties/guarantees: The City makes no warranty or guarantee of any nature whatsoever concerning the condition of the leased Premises, including the physical condition thereof, or any condition which may affect the leased Premises, and it is agreed that the City will not be responsible for any loss, damage or costs which may be incurred by Lessee by reason of any such condition or conditions. Lessee shall be entitled to possession of the Premises upon execution of this Lease Agreement and thereafter in accordance with the terms herein. Lessee’s taking possession of the Premises on commencement of the term shall constitute Lessee’s acknowledgment that the Premises are in good condition. Lessee has examined and inspected the Premises prior to entering into this Lease Agreement and accepts them in their present condition, AS IS. Lessor shall not be responsible to the Lessee for any damages or injuries to persons or property by reason of the conditions or construction of the Premises or any portion thereof, and the Lessor shall not be held to have made any representations or warranty whatsoever as to the construction, condition or usefulness of any portion of the Premises. 33. Non-waiver: Any waiver of any breach of covenants herein contained to be kept and performed by either party hereto, shall not be deemed or considered as a continuing waiver and shall not operate to bar or prevent the other party hereto from declaring a forfeiture, termination or cancellation for any succeeding breach either of the same condition or covenant or otherwise. Acceptance or payment of rental shall not be deemed a waiver. 34. Landlord’s Lien: In addition to any statutory lien for rent in Lessor’s favor, Lessor shall have and Lessee hereby grants to Lessor a continuing security interest for all rentals and other sums of money becoming due hereunder from Lessee, upon all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract rights, chattel paper and other personal property of Lessee situation on the Premises, and such property shall not be removed therefrom without the consent of the Lessor until all arrearages in rent as well as all other sums of money then due to Lessor hereunder shall first have been paid and discharged. In the event of a default under this Lease, Lessor shall have, in addition to any other remedies provided herein or by law, all rights and remedies under the Uniform Commercial Code, including without limitation the right to sell the property described in this paragraph at public or private sale. Lessee hereby agrees to execute such financing statements and other instruments necessary or desirable in Lessor’s discretion to perfect the security interest hereby created. Any statutory lien for rent is not hereby waived, the express contractual lien herein granted being in addition and supplementary thereto. This lien shall be subordinate and subject to any Leasehold Mortgage encumbering the leasehold, including, without limitation, any security interest in and to all such property in favor of any of Lessee’s lenders. 35. Construction of Agreement: In the event of a dispute between the parties as to the meaning of terms, phrases, or specific provisions of the Lease Agreement, the authorship of this Lease Agreement shall not be cause for this Lease Agreement to be construed against any party nor in favor of any party. This Lease Agreement has been submitted to the scrutiny of all parties and their respective legal counsel, and shall be given a fair and reasonable interpretation in accordance with the words hereof without consideration or weight being given to its being drafted by or for one of the parties. 36. Entire Agreement: This Lease Agreement constitutes the whole agreement between the Lessor and Lessee and replaces and supersedes any prior agreements. There are no terms, obligations, covenants or conditions other than those contained herein. No modification or amendment of this Lease Agreement shall be valid and effective unless evidenced by an agreement in writing. Dated: ____________________________, 202018 Dated: ___________________________, 202018 Moses Lake Council Packet 1-14-20, Page 160 of 165 LESSEE CITY OF MOSES LAKE By _____________________________________ By ____________________________________ «First_Name» Kevin FuhrJohn M. Williams, Interim City Manager Moses Lake Council Packet 1-14-20, Page 161 of 165 STAFF REPORT To: City Council From: Kevin Fuhr, Interim City Manager Date: January 9, 2020 Proceeding Type: New Business Subject: Surplus Vista Park 1 Resolution Legislative History: • First Presentation: January 14, 2020 • Second Presentation: • Action: Motion to adopt Resolution setting Public Hearing Staff Report Summary Attached is Resolution No. 3789 declaring real property owned by the City of Moses Lake as surplus. The subject property is no longer needed for municipal purposes as initially intended when the property was deeded to the City. The properties can be disposed of and sold in a commercially reasonable manner. Background The Parks Commission met to discuss surplus of Vista 1 and Power Point Parks. They recommended Council surplus Vista 1 Park and keep the other park for potential use in the trails program. Council requested staff to bring back a surplus resolution to the next meeting. Fiscal and Policy Implications The sale of the subject property will save the General Fund revenues that have been used to maintain the property. Options Option Results • Adopt the Resolution Staff will docket a public hearing on February 11. • Take no action. The property will not be surplus. Staff Recommendation Staff recommends the City Council consider adoption of the resolution as presented. Moses Lake Council Packet 1-14-20, Page 162 of 165 Attachments A. Draft Resolution B. Vicinity Map Legal Review The following documents are attached and subject to legal review: Type of Document Title of Document Date Reviewed by Legal Counsel • Resolution Surplus Property and set Public Hearing January 14, 2020 Moses Lake Council Packet 1-14-20, Page 163 of 165 RESOLUTION NO. 3789 A RESOLUTION DECLARING CITY OWNED REAL PROPERTY AS SURPLUS AND AUTHORIZING ITS SALE IN A COMMERCIALLY REASONABLE MANNER RECITALS: 1. The City of Moses Lake no longer requires the property deeded to the city for municipal purposes, and filed with the Grant County Auditor located in Section 15, Township 19 North, Range 28 East, W.M. 2. The property is legally described as follows: Tax parcel #10-2122-000 – Vista Park 1 PARCEL B; A portion of Lot 3, Parkplace Plaza Major Plat, as recorded in Book 17 of Plats, pages 40 thru 46, said Tract being a portion of the North half of Section 15, Township 19 North, Range 28 E.W.M., Grant County, Washington, more fully described as follows: Commencing at the Southwest corner of said Lot 3, said point being the True Point of Beginning; thence Northerly along the West boundary of said Lot 3 and the East right of way of Evelyn Drive, around a 270 foot radius curve concave to the East, through a central angle of32°36'24n,an arc distance of153.66 feet, the chord of said curve being North 06°05'51"West, 151.59 feet; thence continuing on said West boundary of said Lot 3, North 10°12'22" East, 237.23 feet; thence around a 25 foot radius curve, concave to the Southeast, a central angle of 90°00'00", an arc length of 39.27 feet to the South right of way of Central Drive; thence South 79°4T38" East, along said South right of way and the North boundary line of said Lot 3,351.01 feet; thence continuing along said boundary line around a 657.50 foot radius curve concave to the South with a central angle of03°47'14B,an arc distance of43.46 feet; thence South 10°12'51" West, 341 feet, more or less, to the South line of said Lot 3; thence North 8903615n West along the South line of said Lot 3, 382.44 feet to the True Point of Beginning. RESOLVED: 1. The City of Moses Lake, Washington, declares that the real property owned by the city and described above is surplus. 2. The real property described above can be disposed of and sold in a commercially reasonable manner following a Public Hearing before the Council scheduled for February 11, 2020. Adopted by the City Council on January 14, 2020. _______________________________ , Mayor ATTEST: __________________________________________ Debbie Burke, City Clerk Moses Lake Council Packet 1-14-20, Page 164 of 165 Moses Lake Council Packet 1-14-20, Page 165 of 165