Renton Fairwood Resolution

CITY OF RENTON COUNCIL AGENDA BILL *1 Al#:

Submitting Data: Dept/Div/Board.. Staff Contact

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For Agenda of: November 23, 2009 Executive/Mayor Marty Wine, x6526

Subject: Fairwood Annexation Election

Exhibits: Issue Paper Resolution

Recommended Action: Refer to Committee of the Whole

Fiscal Impact: Expenditure Required... Amount Budgeted Total Project Budget

Agenda Status Consent Public Hearing.. Correspondence.. Ordinance Resolution Old Business New Business Study Sessions Information

Approvals: Legal Dept Finance Dept. Other

Transfer/Amendment Revenue Generated City Share Total Project..

SUMMARY OF ACTION: The City of Renton is facing several key milestones in the potential annexation of its major annexation areas. This resolution calls for an election on the question of the annexation of the Fairwood Potential Annexation area at the August 17, 2010 primary election; files the Notice of Intention to annex the full area with the Boundary Review Board; and authorizes the Mayor and City Clerk to take actions necessary to place Proposition 1 before the voters in 2010, including the preparation of information for a voter's pamphlet. STAFF RECOMMENDATION: Approve the resolution calling for the question of annexation to be placed before Fairwood voters on August 17, 2010.

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ADMINISTRATIVE AND

JUDICIAL SERVICES

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M E M O R A N D U M DATE:

November 23, 2009

VIA:

^ Denis Law, Mayor ' Y ^ \ ) U " Jay Covington, Chief Administrative Officer

FROM:

Marty Wine, Assistant C A O _ ^ 7 ^ Alex Pietsch, CED AdministratorJ^/VA

SUBJECT:

Fairwood Annexation Election Resolution and Annexation Status Update

The November 3, 2009 general election results will be certified on Tuesday, November 24. Assuming that current vote totals continue to show Fairwood incorporation failing, Renton will face the question of whether to commence annexation of the Fairwood area and place the question before voters. The purpose of this memo is to update the Council on the status of major pending Renton annexation petitions, and to recommend that the City place the question of Fairwood annexation before voters in late 2010. RECOMMENDATION: Approve a resolution calling for the question of annexation to be placed before Fairwood voters on August 17, 2010. BACKGROUND SUMMARY: Status: Fairwood Potential Annexation Area Red Mill Annexation Petition. In late 2007, annexation proponents submitted and Renton accepted a petition proposing annexation of the commercial area of Fairwood using the 60% petition method. The petition for the 224-acre, 1,277 population annexation was certified after Fairwood incorporation was initiated. Per RCW 35.02.155, if annexation is proposed by petition more than 90 days after the filing of an incorporation petition that includes territory proposed for annexation, the annexation must be "held in abeyance" and may not occur unless the BRB removes the proposed territory; it rejects the incorporation; or the voters reject the proposed incorporation. Greater Fairwood Communities Petition. The City Council similarly accepted the petition to annex the remainder of Renton's potential annexation area, called the

Council President Randy Corman Page 2 of 4 November 23, 2009

Greater Fairwood Communities annexation, in early 2009. As with the Red Mill petition, the question of annexing all or part of this area to the City of Renton could not be presented to voters of the Fairwood area until the question incorporation as a new city of Fairwood was resolved. The City continues to analyze the operating and capital costs and revenues associated with potential annexation. The City Council last reviewed an updated fiscal analysis of the potential annexation of Fairwood in August 2009, acknowledging that the City was keeping open the option of annexation, but faces significant fiscal challenges to provide services to Renton's remaining large annexation areas. However, with the assistance of the State sales tax credit, the City would be able to afford to provide Renton levels of municipal services without further subsidy. The City has held both Fairwood annexation petitions "in abeyance" since the Boundary Review Board returned them to the City. Renton will need to either resubmit both petitions or initiate an alternative annexation-by-resolution proposal to the Boundary Review Board by January 2010. The purpose of this timing is important. Renton needs to have commenced annexation of an area with a population greater than 10,000 in order to preserve access to the credit against the state sales tax, which is a significant funding source to assist with annexation costs, authorized by RCW 82.14.415 (sales and use tax for cities to offset municipal service costs to newly annexed areas). The Administration believes that the most prudent course of action would be to unify the entire Fairwood area annexation proposals (Red Mill and Greater Fairwood) and allow residents to decide their future governance by a public vote. Status: West Hill Potential Annexation Area Following a late-2008 petition drive by West Hill voters, Renton accepted and forwarded the petition to annex West Hill and Notice of Intent to the Boundary Review Board in August 2009. The BRB has set a hearing date for January 5, 2010. Post-hearing, the BRB's record of decision is usually issued by the next meeting a month later. When the petition is transmitted back to the City, the City Council has 30 days to indicate to King County its preference for a special election date for submitting the proposal to voters in the annexation area. (RCW 35A.14.050) Renton has requested a short delay in the West Hill annexation hearing date (no later than April 1, 2010) of the Boundary Review Board so that the Council's decision to set the election could occur after the close of the 2010 Legislative Session. The work to pursue additional funding options to pay for services in West Hill and the City's legislative agenda could make a difference between a viable vs. unaffordable annexation and that may be a factor in the Council's decision. King County staff has voiced support for the extension and is working to secure King County Executive-elect support for this minor delay.

Council President Randy Corman Page 3 of 4 November 23, 2009

As noted above, the City continues to consider the fiscal impacts of annexation of West Hill. A significant difference between revenues generated in the area and the costs to provide City services exists for the West Hill potential annexation area. Even with the sales tax credit, the February 2009 fiscal analysis shows an average $4 million per year operating gap, significant one-time start-up costs and an annual capital program for parks, streets and drainage/surface water that is estimated to cost in the millions, even if it was phased. West Hill presents many opportunities and many challenges. The community has longterm residents with a strong spirit of neighborliness, commitment to youth, caring families, and rich diversity (ethnic, cultural and economic). However, neglected infrastructure, significant housing and human services needs, crime, social and public health challenges require many resources to address - more than any single organization has been able to give. This situation demands a multijurisdictional approach to secure funding and provide services focused on the area's long-term vitality and sustainability. The Administration will be actively working before the end of 2009 and during the Legislative Session to convene meetings with potential funders (including county, state, federal, private and nonprofit organizations) who can be part of a partnership to make up funding gaps related to West Hill revitalization and to make annexation possible. The spirit of this partnership is to generate the sustained commitment and investment from a wide range of supporters that could have remarkable results. West Hill's challenges demand much more than a debate about governance change and the question of annexation. A blueprint for positive change is needed to mobilize the community and support a revitalized West Hill with actions to overcome these challenges that have also been envisioned in the Skyway Solutions and the King County Equity and Social Justice Initiative efforts. Securing funding for annexation is one step, but creating a healthy and supportive place to live, shop and work in West Hill is also desired. Renton will be working to lead an effort among many partners to create a healthy and safe environment in West Hill. For example, the City is exploring potential joint grant opportunities with King County and community members to bring more public safety resources to West Hill. In addition, the City's legislative agenda may include a state-focused assistance package that helps West Hill/Skyway via operating funding assistance; addressing surface water management and drainage deficiencies; and business district revitalization - particularly involving transportation, pedestrian and beautification features, and streetscapes. Based on this concept of a multijurisdictional funding approach, Renton will know by early 2010 whether the funding picture for West Hill has improved. The Renton City

Council President Randy Corman Page 4 of 4 November 23, 2009

Council's next decision regarding placing annexation of West Hill before voters in the annexation area could happen sometime between March and May 2010. If funding cannot be secured, the Council will have several options, including taking no action on the pending annexation petition, thereby allowing the proposal to die; and/or initiating annexation by resolution at some time later in 2010 when the funding can be assembled. cc:

Department Administrators Annexation petition parties of record (Fairwood and West Hill) Gwen Clemens, King County King County Councilmembers Dunn and Patterson

DRAFT CITY OF RENTON, WASHINGTON RESOLUTION NO. A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, CALLING FOR THE ANNEXATION, BY ELECTION, OF CONTIGUOUS UNINCORPORATED TERRITORY TO THE CITY OF RENTON AND REFERRED TO AS THE FAIRWOOD ANNEXATION; STATING THE NUMBER OF REGISTERED VOTERS RESIDING THEREIN AS NEARLY AS MAY BE; CALLING FOR AN ELECTION ON AUGUST 17, 2010, TO SUBMIT TO VOTERS OF THE TERRITORY THE PROPOSAL FOR ANNEXATION; AND AUTHORIZING THE CITY CLERK TO FILE WITH THE KING COUNTY BOUNDARY REVIEW BOARD A NOTICE OF INTENTION AS WELL AS TO FILE A CERTIFIED COPY OF THIS RESOLUTION WITH THE BOARD OF COUNTY COMMISSIONERS OF KING COUNTY AND THE KING COUNTY BOUNDARY REVIEW BOARD, AND TO TAKE THOSE ACTIONS NECESSARY TO PLACE PROPOSITION 1 BEFORE THE VOTERS, INCLUDING THE PREPARATION OF INFORMATION FOR THE VOTER'S PAMPHLET.

WHEREAS, the City of Renton has, within its Potential Annexation Area, unincorporated territory commonly referred to as the Fairwood Annexation Area, consisting of approximately 4,479 acres, which area is contiguous to the corporate limits of the City; and WHEREAS, the City was presented a 60% petition to annex an area known as the Red Mill Annexation Area, but the petition was held in abeyance because of the pending incorporation vote for the City of Fairwood; and WHEREAS, the City was presented with a 10% petition to annex an area known as the Greater Fairwood Communities Annexation Area and passed Resolution 3991 calling for annexation by the election method, but the petition was also held in abeyance because of the pending incorporation vote for the City of Fairwood; and WHEREAS, the incorporation vote failed; and WHEREAS, resubmitting the petitions to present a consolidated annexation proposal could be confusing and time-consuming; and

RESOLUTION NO. WHEREAS, the City of Renton has consistently stated that the future governance of the Fairwood area should be the choice of residents, with accurate information to make an informed decision; and WHEREAS, the state has created a sales tax credit funding mechanism for annexations of over 10,000 population to aid cities, such as Renton, with the expenses of annexing areas within their potential annexation areas; and WHEREAS, the sales tax credit mechanism, which assists the cities in covering the costs of new annexations will expire, according to its terms, for annexations not commenced before January 1, 2010; and WHEREAS, it will be financially infeasible for the City to annex the Fairwood area or any other large area without financial assistance from the state sales tax credit, or another mechanism; and WHEREAS, there is little time for the City to commence annexation of the Fairwood area before the expiration of the sales tax credit; and WHEREAS, the City is authorized to initiate annexations via election pursuant to RCW 35A.14.015; and WHEREAS, the City Council of the City of Renton, Washington, has determined that it would be in the best interests and general welfare of the City of Renton to annex the property within Renton's established Potential Annexation Area generally bounded by SE 162n Place on the north, 128th Avenue SE on the west, SE 192nd Street on the south, and extending to east to the King County Urban Growth Boundary as legally described in Exhibit "A" attached hereto and incorporated by reference as if fully set forth; and

RESOLUTION NO. WHEREAS, the City Council desires to call for an election for this annexation; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I.

The above findings are true and correct in all respects.

SECTION II.

As nearly as can be determined the number of voters residing in the

aforesaid territory isl4,189. SECTION III.

The City Council hereby calls for an election to be held on August 17,

2010, pursuant to Chapter 35A.14 RCW, to submit to the voters of the aforesaid territory the proposal for annexation. SECTION IV.

The cost of said annexation election shall be paid by the City of Renton.

SECTION V.

The City Clerk shall file a certified copy of this Resolution with the Board

of County Commissioners of King County, Washington and with the King County Boundary Review Board. SECTION VI.

The City Clerk shall also file with the King County Boundary Review Board

a Notice of Intention hereof as required by RCW 36.93.090 et seq. SECTION VII. The City Clerk is authorized and directed to take those actions necessary to place Proposition 1 before the voters in the August 17, 2010, election, for the Fairwood Annexation. SECTION VIII. The City Attorney has prepared the following ballot title for Proposition 1. The City Clerk is authorized to transmit this ballot title to King County Division of Records and Elections:

RESOLUTION NO.

PROPOSITION 1 ANNEXATION TO THE CITY OF RENTON The Renton City Council received a petition to annex property to the City of Renton and passed a resolution calling for an election on the question. This measure would authorize annexation of that property, generally referred to as the Fairwood Annexation Area, to the City of Renton. Shall that area in unincorporated King County known as the Fairwood Annexation Area, as legally described in the above-mentioned resolution, be annexed to the City of Renton? •

For Annexation

•

Against Annexation

SECTION IX.

The Mayor is authorized and directed to take those actions necessary to

place the information regarding Proposition 1 in the August

, 2010, election voter's

pamphlet. PASSED BY THE CITY COUNCIL this

day of

, 2009.

Bonnie I. Walton, City Clerk APPROVED BY THE MAYOR this

day of

Denis Law, Mayor Approved as to form:

Lawrence J. Warren, City Attorney RES.1353:ll/10/09:scr

, 2009.