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3037 Fire Impact Rate StudyRate Study For Impact Fees For Fire Protection REVISED Council Packet 10-10-23, Page 89 of 208 City of Moses Lake, Washington TABLE OF CONTENTS 1. Introduction…………………………………………………………………………………………………page 4 2. Statutory Basis and Methodology………………………………………………………………..page 6 3. Fire Impact Fees…………………………………………………………………………………………..page 12 List of Variables Variable Title Page A Fire Stations 13 B Station Cost per Square Foot 14 C Annual Emergency Incidents at Land Use Types 16 D Number of Dwelling Units or Square Feet 18 E Adjustments for Revenue Credits 22 List of Formulas Formula Title Page F-1 Annual Facility (Station) Cost 14 F-2 Station Cost per Fire and Medical Incident 15 F-3 Annual Fire and Medical Incident Rate Per Unit Of Development 16 F-4 Incident Capital Cost Per Unit Of Development 20 F-5 Adjustments and Impact Fees 22 REVISED Council Packet 10-10-23, Page 90 of 208 List of Tables Table Title Page 1 Fire and Medical Building Inventory 17 2 Annual Fire & Medical Incidents 18 3 Fire and Medical Incident Response by Type of Apparatus 19 3a Annualized Station Cost per Square Foot 20 4 Station Cost Per Fire and Medical Incident 21 5 Fire and Medical Incidents 21 6 Fire and Medical Incidents at Specific Land Uses 22 7 Traffic Related Fire and Medical Incidents (Allocated to Land Uses) 23 8 Total Annual Fire and Medical Incidents by Land Use 24 9 Annual Fire Incidents by Land Use 25 10 Fire Station Cost of Responses to Fire Incidents and Land Use Categories 26 11 Fire Impact Fees by Land Use 27 REVISED Council Packet 10-10-23, Page 91 of 208 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 development. 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 $420.85 Multi-Family—Non-Sprinkled Dwelling unit $420.85 Multi-Family Sprinkled Dwelling unit $420.85 Medical Facilities Square Foot $0.73 Hotel-Motel Square Foot $0.26 Office Square Foot $0.07 Retail (shopping)Square Foot $0.07 Industrial—No on-site suppression water storage Square Foot $0.10 Industrial with full fire flow suppression water storage on site Square Foot $0.07 Restaurant Square Foot $0.03 Churches Square Foot $0.02 Education Square Foot $0.02 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.1 REVISED Council Packet 10-10-23, Page 92 of 208 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: System development charges for water and sewer authorized for utilities (RCW 35.92 for municipalities, 56.16 for sewer districts, and 57.08 for water districts); local improvement districts or other special assessment districts; linkage fees; or land donations or fees in lieu of land. ORGANIZATION OF THE STUDY This impact fee rate study contains 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. REVISED Council Packet 10-10-23, Page 93 of 208 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) REVISED Council Packet 10-10-23, Page 94 of 208 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 pro-ratable 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) REVISED Council Packet 10-10-23, Page 95 of 208 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. REVISED Council Packet 10-10-23, Page 96 of 208 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 pro-ratable 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 REVISED Council Packet 10-10-23, Page 97 of 208 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. REVISED Council Packet 10-10-23, Page 98 of 208 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. REVISED Council Packet 10-10-23, Page 99 of 208 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. 3. FIRE IMPACT FEES Impact fees for fire protection facilities begins with an inventory of stations and the number of emergencies they responded to. Next is an analysis of the capital cost of fire protection 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) and ALS (advanced life support medical responses) at each type of land use. The fire, ALS 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 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. REVISED Council Packet 10-10-23, Page 100 of 208 Variable (A): Fire Stations The City of Moses Lake provides fire and ALS/BLS services out of 2 stations, and supplemental staffing for critical incidents out of the administrative offices. Table 1 lists the stations and the square footage of fire stations and support facilities. Table 2 shows the total number of fire and medical incidents and shows a lower total number than the total incidents from stations (Table 1), and apparatus (Table 3), because more than one station or one apparatus responds to the same incident. An example of this is a structural fire requiring all on duty staffing to respond. This would be a single incident, but personnel and apparatus from all facilities would respond to this incident. Table1: Fire and Medical Building Inventory Station Fire Station Inventory (Square Feet) Annual Incidents Square Feet Per Incident 1-E 3rd AVE 21,200 4404 4.81 2-W Broadway AVE 7,112 2203 3.23 Training Facility-E 3rd AVE 2,262 0 0 Administrative Offices S Pioneer Way 3,100 235 13.19 Total 33,674 6,842 21.23 Table 2 Annual Fire and Medical Incidents Type of Incident Average Annual Emergency Incidents Fire 678 Medical 5,933 Total 6,611 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. Example: In Table 3 the annual incidents are 5,435. Engines responded to 2,628 of those incidents. This results in engines responding to 48.35% of all incidents. REVISED Council Packet 10-10-23, Page 101 of 208 Table 3: Fire and Medical Incident Response by Type of Apparatus Type of Apparatus Total Annual Responses for Apparatus Annual Emergency Incidents Percent of Annual Incidents Dispatched to (Col 2/602) Engine 2,628 5,435 48.35% Ladder 41 5,435 0.75% Medic Unit 6,134 5,435 113% Brush Truck 121 5,435 0.22% Rescue 22 5,435 0.04% Tender 23 5,435 0.04% Staff Vehicles 247 5,435 4.5% Other 10 5,435 0.018% TOTAL 9,226 5,435 166.92% Formula F-1: Annual Facility (Station) Cost The annual facility cost is determined by dividing the facility capital cost by its useful life. F-1. 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 (B): 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 $5,200,000.00. 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 3a is an annualized facility cost of $ 40.07 per square foot. REVISED Council Packet 10-10-23, Page 102 of 208 Table 3a: 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 $17.22 50 $0.34 Building, Furnishings, & Equipment $790.00 50 $15.80 Cost of Borrowing $100.00 50 $2.00 TOTAL $907.22 50 $18.14 Formula F-2: Station Cost Per Fire and Medical Incident The station cost per fire and medical incident is calculated by multiplying the annual station cost per square foot by the station square feet per fire and medical incident rate. F-2. 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-2. Both variables were developed in previous formulas. This calculation is shown in Table 4: the station cost per square foot (from Table 3a) is multiplied times the station square feet per incident (from Table 1). The result is the station cost of $385.11 per fire and EMS incident. Table 4: 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) $18.14 21.23 $385.11 REVISED Council Packet 10-10-23, Page 103 of 208 Formula F-3: Annual Fire and Medical Incident Rate Per Unit of Development The annual fire and medical 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 and medical 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-3 Annual Emergency Incidents at Each Type of Land Use ÷ Number of Dwelling Units or Square Feet of Each Type of Land Use = Annual Fire and Medical Incidents Per Unit of Development There are two variables that require explanation: (C) annual emergency incidents at land use types, and (D) number of dwelling units or square feet. Variable (C): Annual Emergency 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, April 1, 2020 through April 1, 2023, and the square-feet of non-residential development is from the City GIS database and 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 2022, Moses Lake’s Fire Department responded to 5,428 fire and medical incidents. Of the 5,428 fire incidents, 5,326 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 5,428 incidents analyzed, 4,783 occurred at a specific property and 543 were traffic related. The records for the remaining 102 incidents did not allow the incident to be traced to either a specific land use or a traffic-related incident, therefore these 102 incidents are apportioned to land uses and traffic on the same basis as the 5,326 incidents that are traceable. Table 6 shows the allocation of the 102 incidents without land use designations to the property and traffic categories using the same percentage as the 5,326 incidents for which a location was identifiable. Thus 92 of the 102 fire incidents were allocated the same as the incidents at identifiable lands uses, and the other 10 fire incidents were allocated the same as the traffic- related incidents. REVISED Council Packet 10-10-23, Page 104 of 208 Table 5: Fire and Medical Incidents Incident Location Incidents Identifiable by Location Incidents Not Identifiable by Location Total Incidents At Properties 4,783 88% 109 2 % 4,892 In Roads & Streets 543 10% 543 Total 5,326 109 5,435 There are four tables on the following pages that present the allocation of incidents among types of land use: Table 6 shows the incidents that were identifiable by land use type, Table 7 shows the incidents that were traffic related. Table 8 combines the incident data (land use and traffic), and Table 9 shows the incident rate per unit of development. Table 6 shows the distribution of the 4,783 incidents that are traceable to a land use along with the percent distribution of these 4,783 incidents. In column 4 the total incidents to land use (4,783 traceable + 102 allocated) are allocated among the land use types using the percent distribution column. The result is the total annual fire incidents at each of the land use types. Table 6: Fire and Medical Incidents at Specific Land Uses Land Use Annual Fire and Medical Incidents Identifiable to Land Use Percent of All Fire and Medical Incidents Identifiable to Land Use Allocate 92 Incidents to Land Uses (Col 2 x 92) Residential 2,265 42.5%39 Non-Residential Hotel/Motel/Resort 500 9.46% 9 Medical Facility 1,334 25%23 Office 130 2.4% 2 Retail 206 3.8% 3.5 Restaurants 150 2.8% 2.5 Industrial 104 2%2 Institutions: Churches / non- profit 22 0.4% .40 Education 72 1.35% 1.1 Roads / Streets 543 10.29%9.5 Total 5,326 100 92 REVISED Council Packet 10-10-23, Page 105 of 208 Variable (D): 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 7, 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 7 the total 553 annual fire incidents that are traffic-related (543 traceable + 10 allocated) is allocated among the land use types using the percent of trips generated. Table 7: Traffic Related Fire and Medical 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 553) Residential 10,804 d.u 4.23228 45,725 33.3% 184 Non-Residential Hotel/Motel/Resort 752,000 Sq.Ft 0.00446 3,354 2.2% 12 Medical Care Facility 710,000 Sq. Ft .00825 5,857 4%22 Commercial: Office 750,000 SqFt 0.00551 4,132 3%17 Retail 1,800,000 SqFt 0.02147 38,646 28.2% 156 Restaurants 165,000 SqFt 0.06358 10490 7.5% 42 Industrial 6,000,000 SqFt 0.00349 20,940 16%88 Institutions: Churches / non- profit 345,000SqFt 0.00456 1,573 1.1% 6 Education 1,000,000SqFt 0.00645 6,450 4.7% 26 Total 137,167 553 REVISED Council Packet 10-10-23, Page 106 of 208 Table 8 summarizes the results of the analysis of fire incidents. The total annual fire incidents are a combination of the fire incidents allocated among direct responses to land use categories (from Table 6) and the allocation of traffic related incidents based on trip generation rates (from Table 7). Table 8: Total Annual Fire and Medical Incidents by Land Use Land Use Annual Fire Incidents Direct to Land Use Annual Traffic Related Fire Incidents by Land Use w/ Allocated Total Annual Incidents by Land Use Residential 2,264 184+39 2,448 Non-Residential Hotel/Motel/Resort 500 12+9 512 Medical Care Facility 1,334 22+23 1,356 Commercial: Office 130 17+2 147 Retail 206 156+3.5 362 Restaurants 150 42+2.5 192 Industrial 104 88+2 192 Institutions: Churches / non- profit 22 6+.4 28 Education 73 26+1.1 99 Roads / Streets 9.5 92 Total 4,783 645 5,428 The final step in determining the annual fire incident rate per unit of development is shown in Table 9. The total annual fire incidents for each type of land use (from Table 8) 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 7). The results in Table 9 show how many times an average unit of development has a fire incident to which the City of Moses Lake responds. For example, if a residence has an average of 0.029 fire-related incidents per year. This is the same as saying that 2.9% of residential occupancies have a fire-related incident in a year. REVISED Council Packet 10-10-23, Page 107 of 208 Table 9: Annual Fire and Medical Incidents by Land Use Categories Land Use Total Annual Fire Incidents to Land Use Units of Development Fire Incidents per Development Residential 2,448 10,804 d. u 0.023per dwelling unit Non-Residential Hotel/Motel/Resort 512 752,000 Sq. Ft 0.0007 per sq ft Medical Care Facility 1,356 710,000 Sq. Ft 0.002 per sq ft Commercial: Office 147 750,000SqFt 0.0002 per sq ft Retail 362 1,800,000 Sq Ft 0.0002 per sq ft Restaurants 192 165,000 Sq Ft 0.001 per sq ft Industrial 192 6,000,000 SqFt 0.00003per sq ft Institutions: Churches / non- profit 28 345,000SqFt 0.00008 per sq ft Education 99 1,000,000SqFt 0.00009 per sq ft Formula F-4: Incident Capital Cost Per Unit of Development The capital cost of fire and medical incidents per unit of development is determined by multiplying the annual incidents per unit of development (from Table 9) times the annual capital cost per fire incident of each fire station.2 F-4. Annual Incidents Per Unit Of Development x Annual Cost Per Fire Incident = Incident Capital Cost Per Unit Of Development There are no new variables used in formula F-4. All three variables were developed in previous formulas. 2Some fire impact fees are calculated for the economic life of the property paying the impact fee, rather than the useful life of the facilities/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 station needed for new development, but subsequent replacements of stations are funded by other revenues available to the City of Moses Lake. REVISED Council Packet 10-10-23, Page 108 of 208 In the tables on the following pages, each fire incident rate is multiplied by the annual capital cost per fire incident. The result is then multiplied times the useful life of the station to calculate the capital cost per unit of development for each station. For example: Residential units average 0.029 fire incidents per year (i.e., 2.9% of a fire incident per year). Table 10: Fire Station Cost of Responses to Fire and Medical Incidents and Land Use Categories Land Use Unit of Development Annual Fire Incident Rate Fire Station Cost @$385.11 per Incident Fire Station Life Cost Residential Per Dwelling Unit 0.023 $8.86 * $443 Non-Residential Hotel/Motel/Resort Per Sq Ft 0.0007 $.27 $.27 Medical Care Facility Per Sq Ft 0.002 $.77 $.77 Commercial: Office Per Sq Ft 0.0002 $.08 $.08 Retail Per Sq Ft 0.0002 $.08 $.08 Restaurants Per Sq Ft 0.001 $.04 $.04 Industrial Per Sq Ft 0.0003 $.11 $.11 Institutions: Churches / non- profit Per Sq Ft 0.00008 $.03 $.03 Education Per Sq Ft 0.00009 $.03 $.03 $10.27 $444.41 *Residential (1, 2, and multi-family residential is not calculated per square foot, but rather per dwelling unit, each dwelling unit is calculated for the 50-year service life of a station) all other occupancies are calculated on a per square foot basis only. Formula F-5: Adjustments and Impact Fees REVISED Council Packet 10-10-23, Page 109 of 208 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 (E): 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 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 11 (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 pro-ratable to the particular system improvement (emphasis added);" REVISED Council Packet 10-10-23, Page 110 of 208 The adjustment of 5% used in Table 11 is within the comparable range when compared with other jurisdictions that do not have dedicated revenues for fire stations and apparatus have implemented by way of an adjustment. Table 20 shows the cost per dwelling unit or non- residential square foot from Table 10. The 5% adjustment, and the impact fee after the adjustment is subtracted from the full cost. Table 11: Fire Impact Fees by Land Use Land Use Total Fire and Medical Cost of Impact Development Calculated Credit Adjustment @ 5% Fire and Medical Impact Fee Per Unit of Development Residential-1&2&3 Family Homes, townhome, apartments. Per unit. * $443.00 $22.15 $420.85 Non-Residential Hotel/Motel/Resort sq ft. $0.27 $0.01 $0.26 Medical Care Facility Hospitals & Clinics $0.77 $0.04 $0.73 Commercial: Office $0.08 $0.004 $0.07* Retail $0.08 $0.004 $0.07* Restaurants $0.04 $0.002 $0.03* Industrial $0.11 $0.006 $0.10* Institutions: Churches / non-profit $0.03 $.002 $0.02* Education $0.03 $.002 $0.02* *Indicates land use types where the credit adjustment is a minimum of $0.01 per square foot due the calculated credit adjustment being less than $0.01 per square foot. REVISED Council Packet 10-10-23, Page 111 of 208