CITY OF RENTON COUNCIL AGENDA BILL

*1 i
Al#: I e /-\*
Submitting Data: For Agenda of: November 23, 2009
Dept/Div/Board.. Executive/Mayor
Staff Contact Marty Wine, x6526 Agenda Status
Consent X
Subject: Public Hearing..
Fairwood Annexation Election Correspondence..
Ordinance
Resolution
Old Business
Exhibits: New Business
Issue Paper Study Sessions
Resolution Information

Recommended Action: Approvals:

Refer to Committee of the Whole Legal Dept
Finance Dept.
Other

Fiscal Impact:
Expenditure Required... Transfer/Amendment
Amount Budgeted Revenue Generated
Total Project Budget 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.

Rentonnet/agnbill/ bh
 ADMINISTRATIVE AND ^JT^Z^SL^
-
JUDICIAL SERVICES --** "^Uri@]ME®Id ©

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 long-
term 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 , 2009.

Denis Law, Mayor

Approved as to form:

Lawrence J. Warren, City Attorney

RES.1353:ll/10/09:scr