HomeMy WebLinkAboutPasco School District Interlocal Agreement School Impact Fees WHEN RECORDED RETURN TO:
AFN /1781620 11:06 AM
City of Pasco, Washington
04/26/2012 11:06 M
525 North 3rd 11 Page(s)$72.00
Matt Beaton,Auditor
Pasco WA 99301 Franklin co.,WA
INTERLOCAL AGREEMENT
Between
CITY OF PASCO and PASCO SCHOOL DISTRICT NO. 1
THIS INTERLOCAL AGREEMENT is made and entered into this (3 day
of Kuck_ , 2012, by and between the City of Pasco, Washington, a Municipal
Corporation, hereinafter referred to as "City" and the Pasco School District No. 1,
hereinafter referred to as "District."
WHEREAS, the City has been empowered by State law to provide for the
division of real property for the purpose of residential housing, which such plans
provide adequate provisions for schools and other public facilities. The City is likewise
empowered through the Growth Management Act (Chapter 36.70A RCW) to provide
public facilities and infrastructure to be in place to meet the demands of new population
growth, and by authorization by RCW 82.02.050 through 82.02.100 to access impact
fees on the development activities as part of the financing for public facilities to serve
the needs of a growing population; and
WHEREAS, the District has experienced extraordinary increases in its student
enrollment as determined by letter of January 11, 2011, that the District does not have
space in its schools to serve families from new developments within the City and,
therefore, cannot assure that there are adequate school facilities to serve the demands
incident to new developments within the City without additional new sources for
funding new schools; and
WHEREAS, the District has adopted on December 13, 2011, its 2011-2017
revised Pasco School District Capital Facilities Plan which incorporates funding in part
through the assessment of a school impact fee by the City; and
Interlocal Agreement City/
Pasco School District No. I - 1
WHEREAS, the District has requested the City adopt the District's capital
facilities plan as a part of the City's comprehensive plan; and
WHEREAS, the City has conducted public meetings and hearings before its
Planning Commission and the City Council regarding the District's request as a portion
of the City's update of its comprehensive plan; and
WHEREAS, as a condition of its adoption of the District's capital facilities plan
as a part of the City's comprehensive plan and the assessment of impact fees as provided
under that plan, the parties desire to enter into an Interlocal Agreement to set forth the
duties and responsibilities of the parties with regards to implementation of the school
impact fee program, as well as indemnification responsibilities for any legal challenges
to that program.
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein,the parties agree as follows:
1. Responsibilities of the District. The District shall by its authorized
representative, to agree to the following terms and conditions upon the City's adoption
of a School Impact Fee Ordinance:
A. Submit the board adopted Pasco School District No. 1 Capital
Facilities Plan 2011-2017 for inclusion within the City's Comprehensive Plan
2012 amendments warranting the factual sufficiency thereof, and its compliance
with applicable laws.
B. Submit information, evidence and testimony to the City to
support the adoption of a School Impact Fee Ordinance with the assessment and
collection of school impact fees, including the District's capital facilities plan,
proposed impact fee schedule, and any other information required by the City's
Ordinance.
C. At least once every two years, submit to the City a six-year
capital facilities plan or an update of the previously adopted plan, together with
impact fee schedules which meet the requirements of Washington law and the
City's School Impact Fee Ordinance commencing on April 15, 2014. This shall
include a report on school impact fees, and the School Impact Fee accounts
showing the source and amount of all monies collected, earned, or received, and
the public improvements that were financed in whole or in part by the impact
fees.
Following receipt by the City of the District's subsequent capital
facilities plan or updates thereto, the parties shall meet in a good faith effort to
Interlocal Agreement City/
Pasco School District No. 1 -2
evaluate the School Impact Fee Program, determine adjustments, if any, to the
school impact fee, and the role of each party in defending changes in the capital
facilities plan and adjustments to the school impact fee as provided in Section 4
below.
D. Establish and maintain a procedure for receipt and processing of
requests for adjustments, refunds or waivers, or appeals of the school impact
fees including the determination of the value of dedication of lands for,
improvements to, or new construction of any system improvements provided by
the fee payer to the District. The District shall hear, consider, and comment to
the City, for its consideration any applications for adjustment of the impact fees
for any project based upon studies, data, calculations, and reports provided by
the Developer; any requests for adjustment of the standard impact fee necessary
to address unusual circumstances to void the impact fees being imposed
unfairly. The District's final determination on such requests shall be transmitted
to the City which may rely upon such determinations and the issuance of any
permits for development activities. The District shall be responsible for
defending the school impact fee including the District's responsibilities as set
forth herein regardless of whether an appeal of the school impact fee is filed
with an appeal of the underlying permit.
E. Establish and maintain School Impact Fee accounts as required
by RCW 82.02.070, and PMC Chapter 3.133 (School Impact Fee Ordinance),
and administer such fees and provide the City with all required notices.
F. Properly expend and account for impact fees as required by RCW
82.02.050(4) and RCW 82.02.070(2). Such funds shall be used for public
facilities improvements that will reasonably benefit the new development; and
shall not be imposed to make up the deficiencies in the facilities serving the
existing developments; and shall not be used for maintenance or operation.
G. Impact fees may be spent for improvements, including but not
limited to, facility planning, land acquisition, site improvements, necessary
offsite improvements, construction, engineering, architectural, permitting,
financing, grant matching funds and administrative expenses, applicable impact
fees or mitigation costs, capital equipment pertaining to public facilities, and any
other expenses which can be capitalized and are consistent with the capital
facilities plans adopted by the City's amended comprehensive plan.
H. Impact fees may also be used to recoup public facility
improvements costs previously incurred to the extent that new growth and
development will be served by the previously constructed improvements or
incurred costs.
Interlocal Agreement City/
Pasco School District No. 1 - 3
II
I. In the event that bonds or similar debt instruments are or have
been issued for the construction of public facilities or system improvements for
which impact fees may be expended, impact fees may be used to pay debt
service on such bonds or similar debt instruments to the extent that the facilities
or improvements provided are consistent with the requirement of this section,
and are used to serve the new development. Public facilities plans causing
impact fees for the purpose of assisting in the new provision of capital facilities
or facility systems must clearly differentiate between funds used for new
improvements and those funds used to correct existing deficiencies.
J. Encumber and expend impact fees only as required in RCW
82.02.070(3) and where the District has extraordinary and compelling reasons
for noncompliance with this statute, the District shall identify such reasons in
written findings delivered to the City Council.
K. Notify property owners of refunds available under RCW
82.02.080 and the processing and payment of any such refunds, together with
any interest which may be due.
L. Review and approve as to form, all covenants and declaration of
restrictions as these documents are required by the School Impact Fee Ordinance
to maintain exceptions from payment of school impact fees. In the event that
such covenants and/or declarations of restrictions are violated, the District shall
have the primary responsibility for enforcement.
M. Maintain all accounts and records necessary to ensure compliance
with this Agreement, the School Impact Fee Ordinance, and Chapter 82.02
RCW.
N. If the City adopts impact fees in the amounts recommended by
the District as part of the District's board adopted capital facility plan, and any
updates thereto, the District shall not impose, in addition to the School Impact
Fee, a mitigation fee provided by Ch. 43.21C RCW (SEPA) to assure that
appropriate provisions are made for schools and school grounds incident to
residential property development.
2. Responsibilities of the City. The City, by and through its authorized
representatives, agree to :
A. Enact a School Impact Fee Ordinance in a form approved by the
District, and attached as Exhibit A, to be effective on April 16,2012.
Interlocal Agreement City/
Pasco School District No. 1 -4
Ii
B. Amend its comprehensive plan including the adoption of the
District's Capital Facilities Plan 2011-2017, and such amendments as may be
provided thereafter, including modifications of the school impact fee schedule,
provided that such facilities plan, amendments and fee schedule are consistent
with the law.
C. As a portion of permitting development activities, the City shall:
1) Determine whether or not the residential development
activity in the City is exempt from payment of the school impact fee as
provided in that Ordinance.
2) Ensure that applicants for residential development
activities have paid school impact fees in accordance with the fee
schedules established hereby, and subject to credits, adjustments, and
exemptions approved by the District prior to the issuance of any
residential development activity permit.
D. Establish and maintain a school impact fee fund into to which all
school impact fees shall be deposited subject to monthly disbursement of such
funds to the District. A report with the name of the person(s) or business entity
that paid the school impact fee(s) and the addresses of the residential
developments for which the fees were paid shall be sent to the District with
notice of the monthly disbursement amount.
E. In the event the District fails to enforce such covenants or
restrictions required in Section 1.L. above, the City may enforce covenants or
declarations and restrictions within the City which have been executed and
recorded as a condition of an exemption of a development activity from school
impact fees. When enforcement actions are appropriate, the City shall advise
the District of such potential enforcement action, and the District shall determine
whether to request that the City take enforcement action. Determinations for
such actions shall be within the sole discretion of the City.
F. Provide timely notification and acceptance of tender by the
District of a judicial or administrative appeal of the school impact fees.
G. Annually, following the report of the District, the City shall
provide a report on the school impact fee accounts as required by RCW
82.02.070(1), detailing the fees received and the system improvements, financed
in whole or in part by the fees.
Interlocal Agreement City/
Pasco School District No. 1 - 5
H. Collect from developers the school impact fee of$4,700 for each
single family residence and $4,525 for each multifamily unit, and remit to the
District the sum of$4,683 for each single family residence and $4,525 for each
multifamily unit with the difference retained by the City to offset the costs of
administration of the School Impact Fee program. In the event of an adjustment
to the school impact fee, this provision shall likewise be amended by mutual
agreement of the parties.
I. The City shall review and consider subsequently adopted capital
facilities plans or updates thereto, including impact fee schedules and a meeting
with the District as provided in Section 1.C. above.
3. Audit.
A. The District's records and documents with respect to all matters
covered by this Agreement shall be subject to inspection, review or audit, by the
City or by other appropriate State agencies.
B. The District agrees to cooperate with any monitoring or
evaluation activities conducted by the City that pertain to the subject of this
Agreement. The District agrees to allow the City or appropriate State agencies
and/or any of their employees, agents or representatives, to have full access to
and the right to examine, audit, make excerpts or transcripts, and copies of
documents during normal business hours, all of the District's records with
respect to all matters covered by this Agreement The City shall provide the
District no less than thirty (30) calendar days advance notice of its intent to
conduct a physical audit.
4. Indemnification and Hold Harmless.
A. The District is a separate municipal corporation, with the
authority to adopt its capital facilities plan and to spend the school impact fees
collected from the City from property owners/developers in the City. The
District acknowledges that because the District gathers, collects, creates and
interprets the data used to develop its capital facilities plan, that the District, not
the City, is in the best position to ensure that is capital facilities plan conforms to
the authorizing statutes and all other applicable law. The District further
acknowledges that because the District will make its own discretionary decisions
about how to spend the school impact fees from the City, that the District, not
the City, is in the best position to ensure that its related actions conform to the
authorizing statutes and all other applicable laws. With this in mind, the parties
have agreed to indemnify the other as follows:
Interlocal Agreement City/
Pasco School District No. 1 -6
1) The District shall, at its own costs and expense, protect,
defend, indemnify and hold harmless the City, its officers, employees
and agents from any and all costs, claims, judgments or awards of
damages, including attorneys' fees and expert witness fees, arising out of
or in any way resulting from the acts or omissions of the District, its
officers, employees or agents, relating to the District's implementation of
the school impact fee program, performance of the duties set forth in
Section 1 of this Agreement, or compliance with the School Impact Fee
Ordinance, the authorizing statutes or applicable law, shall as may be
amended from time to time. This indemnification by the District of the
City includes, but is not limited to:
a) The District's responsibility to refund any fees
with interest, which are determined by a Court of competent
jurisdiction to have been improperly paid, regardless of whether
the City erroneously imposed and collected the school impact fee
amount;
•
b) The District's agreement not to impose any
liability on the City for the City's failure to collect the proper fee
amount or any fee from an applicant conducting a development
activity, provided that the City shall make reasonable attempts to
collect such fee.
B. The District shall, at its own costs and expense, protect, defend,
indemnify and hold harmless the City, its officers, officials, employees and
agents, from any and all costs, claims, judgments or awards of damages,
including attorneys' fees and expert witness fees, resulting from any challenge to
the constitutionality or legality of the School Impact Fee Ordinance or the fee
schedule or determination for any individual permit application. Once the
District assumes defense or any appeal relating to the School Impact Fee
Ordinance, fee schedule or individual determination, the District shall not be
responsible to reimburse the City for any of the City's attorneys' fees or litigation
costs incurred thereafter.
C. The District further agrees that the District shall, at its own cost
and expense, defend, indemnify and hold harmless the City, its officers,
officials, employees, and agents from any and all costs, claims, judgments or
awards of damages, including attorneys' fees or expert witness fees arising out
of or in any way resulting from the District's failure to refund impact fees, or
interest on such impact fees, including but not limited to a determination that
impact fees from development activity that was not completed are not
refundable because the funds were expended or encumbered by the District,
Interlocal Agreement City/
Pasco School District No. 1 - 7
whether or not the District's determination was made in good faith; provided,
however, that once the District assumes defense of any such claim or action the
District shall not be responsible to reimburse the City for any of the City's
attorneys' fees or litigation costs thereafter.
D. The City shall, at its own cost and expense, protect, defend,
indemnify and hold harmless the District, its officers, employees, or agents from
any and all cost, claims, judgments, awards, attorneys' fees or expert witness
fees arising out of or in any way resulting from the acts or omissions of the City,
its officers, officials or employees relating to the performance of the City's
responsibilities required by State statute, the Pasco Municipal Code, or as set
forth in Section 2 of this Agreement. If the City relies upon the information
provided by the District initially or annually in the adoption of a School Impact
Fee Ordinance or any subsequent fee schedule, the City shall not be required to
defend any appeal or challenge to the District's information data, use of school
impact fees, calculation of fees or decisions on reconsideration/appeal. Once the
City assumes defense of any claim or action, the City shall not be responsible to
reimburse the District for any of the District's attorneys' fees or litigation costs
incurred hereunder.
E. In the event either party shall receive notice of a claim, litigation,
or an administrative appeal arising out of the obligations from indemnification
as provided above, immediate written notice shall be provided to the other party
and providing for a meeting with the co-administrators as provided in Section 11
below, or their designee, to confer regarding the defense of any such claim,
litigation or appeal, and determine cooperative efforts to assist in its defense and
resolution, including good faith negotiations regarding the manner in which the
defense and the cost for such defense will be borne by each party.
F. The duties of the parties to each other under this Section shall not
be diminished or extinguished by the prior termination of this Agreement,
pursuant to Section 5.
5. Effective Date and Termination.
A. The effective date of this Agreement shall be 3\1111
B. Either party may terminate this Agreement, without cause, in
whole or in part, upon six months advance written notice which such
termination becoming effective upon the repeal or invalidation of the City's
School Impact Fee Ordinance. All other obligations under this Agreement shall
remain in effect until both of the following conditions have been satisfied:
Interlocal Agreement City/
Pasco School District No. 1 - 8
1) The City or the District provides written notice that this
Agreement is being terminated; and
2) The District no longer retains unexpended or
unencumbered impact fees and interest earned thereon.
The obligations under Section 4, Indemnification, shall be continuing and shall
not diminish or be extinguished by the termination of this Agreement.
C. The District shall have the duty to ensure that upon termination
of this Agreement, any remaining unexpended or unencumbered impact fees and
interest earned thereon are either properly expended or refunded as required by
law.
D. Nothing herein shall limit, waive, or extinguish any right or
remedy provided by this Agreement or by law that either party may have in the
event that the obligations, terms and conditions set forth in this Agreement are
breached by the other party.
6. Modification. No changes or modifications to this Agreement shall be
valid or binding upon either party unless such changes or modifications are in writing
and executed by both parties.
7. Integration. This Agreement, together with the School Impact Fee
Ordinance and any definitions adopted by the City to implement the Ordinance,
contains all of the terms and conditions agreed upon by the parties. No other
understandings, oral or otherwise, regarding the subject matter of this Agreement shall
be deemed to bind either party.
8. Severability. In the event that any term or condition of this Agreement
or the School Impact Fee Ordinance, or application of either to any person or
circumstances is held invalid, such invalidity shall not affect other terms, conditions or
applications of this Agreement which can be given effect without the invalid term,
condition of application. To this end, the terms and conditions of this Agreement are
declared severable.
9. Right of Other Parties. It is understood and agreed that this Agreement
is solely for the benefit of the parties hereto and conveys no right to any other party.
10. Disputes. In the event of a dispute arising between the parties regarding
the enforcement, breach, or interpretation of this Agreement, the District's
Superintendent and the City's City Manager shall first meet in a good faith effort to
resolve the dispute, however, with or without agreed meditation. Any remaining
Interlocal Agreement City/
Pasco School District No. 1 -9
dispute shall be resolved by binding arbitration pursuant to RCW 7.04A, and the
Mandatory Rules of Arbitration, with venue placed in Franklin County, Washington,
and the arbitrator shall award to the substantially prevailing party, judgment for its
attorney fees and costs against the other. In the event of de nova review, both parties
waive their rights to a jury trial.
11. Interlocal Agreement Provisions. This Agreement is entered into
pursuant to RCW 39.34 as an interlocal agreement between the parties. It is not
intended that a separate legal entity shall be established to conduct the cooperative
undertaking nor it the acquiring or holding or disposing of real personal property
anticipated. This City's City Manager and the District's Superintendent are designated
as co-administrators of this Agreement. This Interlocal Agreement shall be filed or
placed on the City's and the District's website as provided by RCW 39.34.
12. Waiver. Waiver of any default in the performance of this Agreement
shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any
provision of this Agreement shall not be deemed to be a waiver of any other or
subsequent breach and shall not be construed to be a modification of this Agreement.
IN WITNESS WHEREOF, the undersigned has full authorization on behalf of
the parties, have executed this Agreement on the year and date set forth above.
CITY OF PASCO, WASHINGTON PASCO SCHOOL DISTRICT NO. 1
Matt Watkins, Mayor Sherry Lanc President
Att;.t:
Of a.
Debbie C ark,-City Clerk 4111111
App to Form:
Leland B. Kerr, City Attorney
Interlocal Agreement City/
Pasco School District No. 1 - 10
STATE OF WASHINGTON )
. ss.
County of Franklin )
On this day personally appeared before me Matt Watkins, Mayor of the City of
Pasco, Washington, to be known to be the individual described in and who executed the
within and foregoing instrument, and acknowledged that he signed the same as his free
and voluntary act and deed for the uses and purposes therein mentioned.
e...k an/ .60er my hand and official seal this day of /'l at.
.......................
C
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PUBLIC NOTARY PUB i d for the State of Washington
%�`'• . 720.54 `,,$ Residing at: r 'aC v
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STATE OF WASHINGTON )
. ss.
County of Franklin )
On this day personally appeared before me Sherry Lancon, President of Pasco
School District No. 1, to be known to be the individual described in and who executed
the within and foregoing instrument, and acknowledged that she signed the same as her
free and voluntary act and deed for the uses and purposes therein mentioned.
GIVEN under my hand and official seal this I3 A
day of ,_`o-C-C.1%— ,
2012.
■60,012Ai JAS
a k NOTARY PUBLIC in and for the State of Washington
Residing at — o SG_o W Pt
My Commission Expires: ) q '�I I a--
Interlocal Agreement City/
Pasco School District No. 1 - 11