Chapter 15.12
TRANSPORTATION, PARKS, AND FIRE IMPACT FEES
Sections:
15.12.060 Assessment of impact fees.
15.12.110 Establishment of impact fee accounts.
15.12.160 Independent fee calculations.
15.12.170 Existing authority unimpaired.
15.12.180 Adoption of traffic/transportation, parks and fire impact fees.
15.12.010 Title.
This chapter shall be called “Transportation, Parks, and Fire Impact Fees.” (Ord. 1855 § 2 (Exh. B), 2018).
15.12.020 Application.
This chapter shall apply to all building permits, applications for building permits and development authorized by the city. This includes, but is not limited to, the development of residential, commercial, retail, industrial and office land, including the expansion of existing uses that creates a demand for additional planned facilities, as well as a change in existing use that creates a demand for additional planned facilities. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.030 Purpose.
The city council of the city of Burlington (the “council”) hereby finds and determines that growth and development activity in the city will create additional demand and need for public streets and roads, publicly owned parks, open space and recreational facilities, and fire protection facilities in the city, and the council finds that growth and development activity should pay a proportionate share of the cost of such planned facilities needed to serve the growth and development activity and that concurrency requirements of chapter 36.70A RCW need to be complied with. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.040 Authority.
This chapter is authorized pursuant to chapter 36.70A RCW and RCW 82.02.050 through 82.02.090. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.060 Assessment of impact fees.
A. It is a policy of the city of Burlington to assess transportation, fire and park impact fees in compliance with this title. The city shall collect impact fees as listed in this chapter and based on the most currently adopted traffic/transportation, parks and fire impact fee formula or methodology resolution, from any applicant seeking a building permit from the city. This shall include, but is not limited to, the development of residential, commercial, industrial, retail, and office buildings and/or land, and includes the expansion of existing uses and/or structures that creates a demand for additional planned facilities, as well as a change in existing use that creates a demand for additional planned facilities.
B. Except as may be due to exemptions or credits provided pursuant to this chapter, pursuant to an independent fee calculation pursuant to this title, or impact fees imposed pursuant to this chapter, the city shall not issue a building permit(s) unless and until the impact fees set forth in the schedules in this title have been paid.
C. Impact fees may also be collected pursuant to the timeline provisions of an adopted development agreement as provided in BMC Title 14A.
D. Collection of impact fees associated with the construction of a single-family home may be deferred until the final building permit inspection if requested by a permit applicant; provided, that:
1. The permit applicant submits a written request to defer impact fees at the time of building permit application on a form provided by the community development director; and
2. Not more than 20 deferrals shall be granted to an applicant in a single calendar year. For purposes of interpreting this requirement, “applicant” shall mean a contractor as identified by his or her contractor registration number; and
3. Impact fees shall be based on the fee schedule in effect at the time a complete building permit application is submitted.
4. No final inspection shall be conducted and no certificate of occupancy shall be granted until all impact fees have been paid.
5. An applicant seeking an impact fee deferral must grant and record a deferred impact fee lien against the property in favor of the city in the amount of the deferred impact fee. The deferred impact fee lien shall be consistent with, and contain all of the required elements identified in, RCW 82.02.050. (Ord. 1910 § 2 (Exh. A), 2021; Ord. 1855 § 2 (Exh. B), 2018).
15.12.070 Exemptions.
A. The following shall be exempted from the payment of impact fees:
1. Replacement and reconstruction of legally existing residential structures. Legally existing residential structures may be replaced or reconstructed on the same site or lot; provided a valid building permit is obtained within 24 months of the demolition or destruction of the existing residential structure and no additional dwelling units are created.
2. Alterations, expansion, enlargement, remodeling, rehabilitation or conversion of a legally existing residential structure where no additional dwelling units are created and the use is not changed.
3. The construction of accessory structures that will not result in an increased use of planned facilities.
4. Miscellaneous appurtenant improvements, including but not limited to fences, walls, swimming pools, and signs.
5. Demolition or moving of a structure.
6. Expansion of a residential structure provided the expansion does not result in the creation of any additional dwelling units.
7. Alteration or replacement of an existing nonresidential structure that does not expand the usable space or change the existing land use.
8. Parking garages and building spaces that are constructed solely to park motor vehicles that are not for sale, lease or rent, or part of a stock in trade are exempt from the requirement to pay any impact fees. The conversion of parking garages or vehicle parking areas exempted by this subsection to other uses requires the payment of impact fees.
9. Temporary uses and structures authorized by this title. Temporary uses, or its successor, are exempt from the requirement to pay any impact fees.
10. Where the development activity is exempt from the payment of impact fees pursuant to RCW 82.02.100, or its successor, in that the property is part of a development activity that mitigated its impacts on all of the system improvements funded by impact fees under the State Environmental Policy Act (SEPA).
11. Developments owned and/or operated by the city of Burlington.
B. Any claim of exemption shall be made no later than the time of application for a building permit. If a building permit is not required for the development activity, the claim shall be made when the fee is tendered. Any claim not made when required by this section shall be deemed waived.
C. Developments that are not exempt from the requirement to pay impact fees may be entitled to an adjustment as set forth in BMC 15.12.150.
D. The community development director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section, in any other section, or under other applicable law. Determinations of the community development director shall be in writing and shall be subject to the appeals procedures set forth in BMC Title 14A. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.080 Credits.
A. Credit Available. After the effective date of the ordinance codified in this chapter, credit against the amount of the impact fees for developer dedications of land necessary for the construction of planned facilities included within the adopted city capital facility plan or for construction of infrastructure or capital facilities included within the adopted capital facilities plan shall be governed by this section. This section allows for the provision of reasonable credit(s) to a feepayer for the value of any dedication of land for, improvements to, or new construction of one or more projects included within the adopted city of Burlington capital facility plan (capital facility element of the comprehensive plan/six-year CIP), on file in the office of the city finance director, by a feepayer, pursuant to RCW 82.02.060(3), as further provided herein. The amount of the credit for a particular improvement or facility shall be limited to the cost of that improvement or facility as set forth in the capital facility plan (capital facility element of the comprehensive plan/six-year CIP), on file in the office of the city finance director, as now or hereafter amended. Credits shall be specific to the type of improvements or dedications made, such that dedications of land for, construction of or improvements to publicly owned parks, open space or recreational facilities shall be applicable only to the parks impact fee; dedications of land for, construction of or improvements to public transportation facilities shall be applicable only to the transportation impact fee; and dedications of land for construction of or improvements to fire protection facilities shall be applicable only to the fire impact fee. Credit shall not include increased housing density.
B. No credit shall be given for project improvements, or any other improvements or infrastructure required as part of approval of a development proposal or as mitigation for development related impacts.
C. Application for Credit – Determination of Suitability of Land, Improvements, Construction. The feepayer applying for credit (hereinafter, “the applicant”) shall direct the request for a credit or credits to the city administrator/community development director, who shall refer the request to the finance director, community development director, director of public works/city engineer, the fire chief and/or the parks and recreation director as applicable. The applicable department head shall first determine the general suitability of the land, improvements, and/or construction for city purposes. The finance director shall then evaluate whether the land, improvements, and/or the facilities constructed are included within the city’s adopted capital facilities plan and shall forward results of said evaluation to the city administrator/community development director. Recommendations regarding the appropriateness and amount of credit provided shall be submitted by the applicable director(s)/department heads to the city administrator/community development director for review. The city administrator shall make a recommendation to city council as to whether the proposed dedication of land and/or equipment or facility(ies) proposed are included within the capital facility plan and also shall recommend the appropriate amount of credit provided. In all cases, the city administrator/community development director shall inform the applicant and city council of his/her recommendation at the next available council meeting. City council shall render a decision as to the amount of credit, if any, provided to an applicant.
D. The value of credit for land provided under this section, including right-of-way and easements, shall be established on a case-by-case basis by an appraiser selected by, or acceptable to, the applicable department director.
E. The feepayer shall pay for the cost of the appraisal or request that the cost of the appraisal be deducted from any credit provided to the feepayer, in the event that credit is awarded.
F. Determination of Credit Amounts. For each request for credit the city shall first determine that the land, improvements, and/or construction would be suitable for city purposes, does not constitute a project improvement, and that the project is listed within the adopted capital facility plan. The value of a credit for structures, facilities or other improvements shall be established by original receipts provided by the applicant for one or more of the same system improvements for which the impact fee is being charged.
G. For donations of land, the applicable appraiser must be licensed and in good standing by the state of Washington for the category of the property appraised. The appraiser must possess an MAI or other equivalent certification and shall not have a fiduciary or personal interest in the property being appraised. A description of the appraiser’s certification shall be included with the appraisal, and the appraiser shall certify that he/she does not have a fiduciary or personal interest in the property being appraised. The appraisal shall be in accord with the most recent version of the Uniform Standards of Professional Appraisal Practice.
H. The applicant shall be entitled to a credit for a reasonable value of the land, improvements, and/or construction that is made or dedicated, based upon the actual cost of improvements and/or construction, or the agreed upon or actual predevelopment value of land dedicated. In the event an appraisal is necessary to determine the value of land dedicated, an appraiser shall be designated by the city and the full cost of such appraisal shall be paid by the applicant. The city administrator/community development director shall then issue a credit certificate as approved by city council in the amount of the determination of value.
I. Use of Credits. The applicant, upon receipt of a credit certificate, shall have the right to use the certificate to offset any future impact fee assessed for any development activity that will be required to pay impact fees. The administration and application of the credit certificates will be as described in subsection (H) of this section. The application of any credit certificate will be specific to the transportation impact fee, the park impact fee, or the fire impact fee.
J. Credit Certificates – Administration. After city council makes a determination of the amount of the credit, the city administrator/community development director shall issue and provide the applicant with a document hereinafter known as a credit certificate, setting forth the dollar amount of the credit, the date of issuance of the credit certificate, the date of expiration of the credit and the credit certificate, the reason for the credit, the legal description of the property donated, and/or the improvement or construction for which was the basis the credit certificate is registered (the “credit holder”). The applicant must sign and date the credit certificate, and return such signed credit certificate to the city finance director for filing in the city’s credit certificate registry before the credit will be awarded. The failure of the applicant to sign, date, and return the credit certificate within 60 calendar days shall nullify the credit. The original credit certificate shall be kept registered in the city’s records, and the credit holder shall be provided a duplicate copy. The city finance director shall develop reasonable rules and regulations for the administration of the credit certificate program, including the calculation of credits, procedures for use of credits and application of credits to particular parcels of land which may be by recorded document, and the ability to levy an administrative fee in an amount sufficient to cover actual costs to the city.
K. Transfer of Credit – Partial Use of Credit. Credit certificates may be transferred or sold to third parties by the credit holder; provided, that in order to transfer credits to another party, the current credit holder shall register the transfer with the city finance director in accordance with the procedures for registration of credit transfers developed by the city finance director. Only the credit holder who is reflected on the city’s registration system pursuant to the city’s registration system may utilize the credit. Registration with the city of credit certificates shall be conclusive evidence of credit ownership. To the extent that a credit holder wishes to utilize only a portion of the credit reflected on the credit certificate against impact fees due on a particular project, the city finance director shall develop procedures for reducing the the amount of credit reflected on the credit certificate accordingly or issuing a new credit certificate with the remaining credit amount.
L. Limitations on Utilization of Credits. Utilization of credit against payment of impact fees must in all cases be made prior to payment of the impact fee. No reimbursement of impact fees will be made for credit not utilized at the time the impact fee was due. In no event shall the city be under any obligation to advise any applicant for a building permit or other development approval of the existence or possible existence of the availability of credits. The burden of investigating and determining if credits may be available shall rest solely with such applicant. Credit utilized shall never exceed the amount of the impact fee due.
M. Credit for Significant Past Tax Payments. For each request for a credit for significant past tax payments made for particular improvements or land acquisitions, the feepayer shall submit proof of payments and calculation of past tax payments earmarked for or proratable to the particular improvements or land acquisitions. The city finance director shall establish procedures for determining the amount of credit for significant past tax payment made for particular improvements or land acquisitions.
N. Appeals. Determinations made pursuant to this section shall be subject to the appeals procedures set forth in this chapter.
O. Expiration of Credits. Credits shall expire, and credit certificates shall become null and void, on a date 10 years from the date of issuance of the original credit certificate by the city administrator/community development director. Transfer of credits or partial use of credits which may involve reissuance of credit certificates shall in no event extend the expiration date of those credits. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.090 Tax adjustments.
Pursuant to and consistent with the requirements of RCW 82.02.060, the capital facilities plan has provided adjustments for future taxes to be paid by the developer which are earmarked or proratable to the planned facilities which will serve the development activity. The impact fees as adopted herein have been reasonably adjusted for taxes and other revenue sources which are anticipated to be available to fund particular planned facilities. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.100 Appeals.
Any feepayer may pay the impact fees imposed by this chapter under protest in order to obtain the development approval and/or a building permit. Appeals regarding the impact fees imposed on any development activity may only be taken by the feepayer of the property where such development activity will occur. No appeal shall be permitted unless and until the impact fees at issue have been paid. The feepayer must first file an appeal with the city administrator/community development director, as follows:
A. The appeal shall be in writing on the form provided by the city and shall specify the reasons for the appeal; and
B. The appeal shall be filed within 21 calendar days of the feepayer’s payment of the impact fees at issue. The failure to timely file such a request shall constitute a final bar to alter seeking such review; and
C. No administrative fee will be imposed for said appeal; and
D. The city council shall review appeals to administrative decisions issued under this chapter and shall issue a determination in writing following conduct of a public hearing; and
E. In the case of appeal of a decision by city council pertaining to issuance of impact fee credits under this chapter and/or independent fee calculations under this chapter, appeals shall be made to Skagit County superior court, in Skagit County, Washington, within 21 days of receipt of a written city council decision. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.110 Establishment of impact fee accounts.
A. The city shall establish separate impact fee accounts for the following: (1) transportation impact fees; (2) parks impact fees; (3) fire impact fees. The accounts shall be interest-bearing accounts.
B. Funds withdrawn from the impact fee accounts must be used in accordance with the provisions of this chapter. The interest earned shall be retained in each account and expended for the purposes for which the impact fees were collected.
C. On an annual basis, the city finance director shall provide a report to the council on the impact fee accounts, showing the source and amount of all moneys collected, earned, or received, and the planned facilities that were financed in whole or in part by impact fees.
D. Impact fees shall be expended or encumbered within 10 years of receipt, unless the city council identifies in written findings extraordinary and compelling reasons or reasons to hold the impact fees beyond the 10-year period. Under such circumstances, the council shall establish the period of time within which the impact fees shall be expended or encumbered. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.120 Impact fees.
The impact fees set forth in this chapter, and the supporting formula or methodology and analysis under which these impact fees have been developed, are adopted by resolution of the city council on file in the office of the finance director, are based upon the data and assumptions set forth therein, and the information and public input provided to the city council in considering adoption of the ordinance codified in this chapter. Except as otherwise provided in BMC 15.12.070, 15.12.080 or 15.12.160, all development activity in the city will be charged the impact fees set forth in this chapter. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.130 Refunds.
A. If the city fails to expend or encumber the impact fees within 10 years of when the impact fees were paid or, where extraordinary or compelling reasons exist, such other time periods as established pursuant to this chapter, the current owner of the property on which impact fees have been paid may receive a refund of such impact fees. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first-in, first-out basis.
B. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant or claimant must be the owner of the property.
C. Owners seeking a refund of impact fees must submit a written request for a refund of the impact fees to the community development director within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.
D. Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the city and expended on the appropriate planned facilities.
E. Refunds of impact fees under this section shall include any interest earned on the impact fees by the city, calculated at the average interest rate earned by the city on the impact fee account over the preceding fiscal year.
F. When the city seeks to terminate any or all components of the impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest earned, shall be refunded pursuant to this section. Upon the finding that any or all impact fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail at the last known address of the claimants. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the appropriate planned facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the impact fee account(s) being terminated.
G. The city shall also refund to the current owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur; provided, that if the city bas expended or encumbered the impact fees in good faith prior to the application for a refund, the city can decline to provide the refund. If the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the city for an offset. The petitioner must provide proof of payment of impact fees previously paid for a development of the same or substantially similar nature on the same property or some portion thereof. The community development director shall determine whether to grant an offset. Determinations of the city shall be in writing and shall be subject to the appeals procedures set forth in this chapter. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.140 Use of funds.
A. Pursuant to this chapter:
1. Impact fees collected for public streets and roads, impact fees for publicly owned parks, open space and recreational facilities, and impact fees for fire protection facilities shall be used solely for those respective purposes, and only those that will reasonably benefit the development activity.
2. Impact fees shall not be imposed to make up for deficiencies in existing facilities serving existing developments.
3. Impact fees shall not be used for maintenance or operation.
B. Impact fees may be spent for planned facilities, including but not limited to planning, land acquisition, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, capital equipment pertaining to planned facilities, and any other similar expenses which can be capitalized.
C. Impact fees may also be used to recoup city improvement costs previously incurred by the city to the extent that new growth and development activity will be served by the previously constructed improvements or incurred costs.
D. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of city 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 requirements of this section and are used to serve the development activity. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.150 Review.
The impact fee schedules adopted herein shall be reviewed by the council as it may deem necessary and appropriate in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan and/or six-year capital improvement plan.
The city’s cost of administering the impact fee program shall be as set forth in the city’s fee ordinance. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.160 Independent fee calculations.
A. If the public works director/city engineer as pertains to traffic impact fees, and/or the fire chief as pertains to fire impact fees, and/or the parks and recreation director as pertains to parks impact fees believes in good faith that none of the impact fee categories or impact fee amounts set forth in this chapter accurately describe or capture the impacts of a development activity on planned facilities, the applicable director may conduct independent fee calculation recommendations for review by the city administrator/community development director as per the procedures detailed for application of credits under this chapter. The city administrator/community development director may recommend that city council act to impose alternative impact fees on a specific development activity based on these calculations. The alternative impact fees and the calculations shall be set forth in writing.
B. If a feepayer opts not to have the impact fee determined according to the schedules set forth in this chapter, then the feepayer shall prepare and submit to the applicable director(s) an independent fee calculation for the development activity for which final plat, binding site plan, or other development approval, or a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. The applicable department head(s) shall review the independent fee calculation and provide an analysis to the city administrator/community development director concerning whether the independent fee calculation should be accepted, rejected, or accepted in part. The city administrator/community development director shall after review of the materials submitted, make recommendation to city council, who may adopt, reject or adopt in part the independent fee calculation based on the analysis prepared by appropriate department head(s) and/or recommended by the city administrator/community development director, and based on the specific characteristics of the development activity, and/or principles of fairness. The impact fees or alternative impact fees and the calculations recommended by the city administrator/community development director shall be set forth in writing and shall be mailed to the feepayer.
C. Any feepayer submitting an independent fee calculation will be required to pay to the city of Burlington a fee to cover the cost of reviewing the independent fee calculation. The fee shall be the actual cost of any additional staff time not to exceed $500.00 spent in review plus the cost of consultant services if the city deems these services to be necessary; provided, however, for independent fee calculations for single residential lots where, in the sole discretion of the city administrator/community development director, the issues involved are easily handled and the fee is clearly excessive, the $500.00 maximum fee may be reduced.
D. While there is presumption that the calculations set forth in the city’s capital facilities plan are valid, in making an independent fee calculation recommendation to city council, the city administrator/community development director shall consider the documentation submitted by the feepayer and the analysis prepared by the appropriate department heads, but is not required to accept such documentation or analysis which the applicable director and/or city administrator/community development director reasonably deems to be inaccurate or not reliable, and may, in the alternative, recommend to city council that it require the feepayer to submit additional or different documentation for consideration. The city council is authorized to adjust the impact fees on a case-by-case basis based on the independent fee calculation, the specific characteristics of the development activity, and/or principles of fairness. City council’s decision regarding impact fees and the calculations shall be set forth in writing and shall be mailed to the feepayer.
E. An independent fee calculation determination made by the city council pursuant to this section may be appealed as per this chapter. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.170 Existing authority unimpaired.
Nothing in this chapter shall preclude the city from requiring mitigation of adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with BMC 15.12.040 and with RCW 43.21C.065 and 82.20.100. (Ord. 1855 § 2 (Exh. B), 2018).
15.12.180 Adoption of traffic/transportation, parks and fire impact fees.
|
A. Traffic/Transportation Impact Fee: |
|
|
$2,665 per peak p.m. hour trip based on factors listed in the most current ITE Manual (Institute of Traffic Engineers); or based upon an independent fee calculation as specified in BMC 15.12.160. |
|
|
B. Park Impact Fee: |
|
|
Single-Family Residence: |
$655/unit |
|
Multifamily Residence: |
$655/unit |
|
Commercial/Industrial Development: |
$0.50/square foot |
|
C. Fire Impact Fee: |
|
|
Single-Family Residence: |
$253.73/unit |
|
Multifamily Residence: |
$253.73/unit |
|
Commercial/Industrial Development: |
$0.219/square foot |
(Ord. 1855 § 2 (Exh. B), 2018).
15.12.190 Authorization to adopt capital project, facility and equipment lists and impact fee calculation formula or methodology by resolution.
The city council is authorized to adopt by resolution specific capital project, facility and equipment lists and impact fee calculation formula or methodology in support of the fees adopted in this chapter as listed above or as amended in the future. The formula and methodology are attached to the ordinance codified in this chapter as Appendix A. (Ord. 1855 § 2 (Exh. B), 2018).