Chapter 15.50
SCHOOL IMPACT FEES
Sections:
15.50.010 Purpose and applicability.
15.50.040 School District eligibility.
15.50.060 Impact fee accounting.
15.50.070 Adjustments, waivers, and exemptions.
15.50.080 Appeals and arbitration.
15.50.010 Purpose and applicability.
A. Purpose. The purpose of this chapter is (1) to ensure that adequate school facilities are available to serve new growth and development; (2) to require that new growth and development pay a proportionate share of the costs of new school facilities needed to serve new growth and development; and (3) to ensure that school impact fees are administered consistently and fairly.
B. Applicability. The terms of this chapter shall apply to all development for which a complete application for approval is submitted on or after the effective date of the ordinance codified in this chapter, except for development that was the subject of a prior State Environmental Policy Act (SEPA) threshold determination that provided for school mitigation. All building permit applications accepted by the City prior to the effective date of the ordinance codified in this chapter, or for development that was the subject of a prior SEPA threshold determination that included provisions for school mitigation, shall be reviewed for all purposes allowed under State law, including environmental review pursuant to the City of Ferndale environmental policy ordinance. (Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1430 § 1, 2007)
15.50.020 Authority.
This chapter is adopted as a basis for the exercise of substantive authority by the City under the Growth Management Act and Chapters 36.70A and 82.02 RCW as a means of mitigating impacts on school facilities as an element of the environment. (Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1430 § 1, 2007)
15.50.030 Definitions.
As used in this chapter, the following terms have the meanings set forth below:
Words Defined by RCW 82.02.090. Words used in this chapter and defined in RCW 82.02.090 shall have the same meaning assigned in RCW 82.02.090 unless a more specific definition is contained herein.
“Building permit” means the permit required for new construction and additions pursuant to the Ferndale Municipal Code. As used herein, this shall not be deemed to include permits required for remodeling, rehabilitation or other improvements to an existing structure or rebuilding a damaged or destroyed structure; provided, there is no increase in the resulting number of dwelling units.
“Capital facilities” means school facilities identified in the District’s six-year school capital facilities plan that are “system improvements” as defined by the State Growth Management Act as opposed to localized “project improvements.”
“City” means the City of Ferndale.
Condominium. For the purposes of this chapter, “condominiums” are considered single-family dwelling units.
“Council” means the Ferndale City Council.
“Department” means the City of Ferndale Planning Department.
“Developer” means the proponent of a development activity, such as any person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.
Development. For the purposes of this chapter, “development” shall mean all single-family subdivisions, condominium and multifamily residential development, including planned residential development, residential units in a mixed use structure, and all multifamily structures which require building permits, but excluding remodel or renovation permits which do not result in additional dwelling units.
“Development activity” means any residential construction or expansion of a building, structure or use of land, or any other change in use of a building, structure, or land, that creates additional demand and need for school facilities, but excluding remodeling or renovation projects which do not result in additional dwelling units. Also excluded from this definition is “housing for older persons” as defined by 46 USC Section 3607, when guaranteed by a restrictive covenant.
“Development approval” means any written authorization from the City that authorizes the commencement of a development activity.
“Director” means the City’s Community Development Director or his/her designee.
“District” means the Ferndale School District.
“Duplex dwelling units” means any residential building containing two separate dwelling units. For purposes of calculating school impact fees to correctly mitigate the impact of new development, each duplex building shall be considered as two single-family dwelling units.
“Growth Management Act/GMA” means the Growth Management Act, Chapter 17, Laws of the State of Washington of 1990, 1st Executive Session, as now in existence or as hereafter amended.
“Multifamily dwelling unit” means any residential building containing three or more dwelling units, and for the purposes of this chapter shall include townhouses.
“School facilities plan” means the District’s six-year plan for capital facility improvements adopted by the School Board consisting of those elements required by FMC 15.50.040 and meeting the requirements of the GMA.
“School impact fee” means a payment of money imposed upon development as a condition of development approval to pay for school facilities needed to serve new growth and development that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. The school impact fee does not include a reasonable permit fee, an application fee, or the cost of reviewing independent fee calculations.
“Single-family dwelling unit” means any attached or detached residential dwelling unit designed for occupancy by one or two families or households, including mobile or manufactured homes. For purposes of this chapter and to correctly mitigate the impact of new development, duplex buildings are classified as two single-family dwelling units. (Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1430 § 1, 2007)
15.50.040 School District eligibility.
A. School Capital Facilities Plan. The Ferndale School District’s (District) Capital Facilities Plan (CFP) was originally adopted in 2005 and is updated at least every six years. The school CFP includes a schedule of school impact fees. This chapter adopts the most recently updated school CFP by reference. Adoption by the City of the school CFP constitutes adoption of the school impact fees specified in the CFP.
B. Expiration of District Plan. For purposes of school impact fee eligibility, the District’s school CFP shall expire six years after the date of adoption, or when an updated school CFP meeting the requirements of the GMA is adopted by the City Council, whichever date first occurs.
C. Ferndale Comprehensive Plan. The District’s CFP, which is incorporated by reference in the Capital Facilities Element of the City’s Comprehensive Plan, serves as an update of the six-year capital facilities forecast.
D. Revising the School Facilities Plan (CFP).
1. The District may initiate revisions to the school CFP or fee schedule prior to schedules established by the District, as required by Washington State. The revised CFP shall first be approved by the School Board and then transmitted to the City Council for City adoption. If an updated school CFP has not been adopted by the City Council prior to the existing plan’s expiration date due to the District’s failure to submit an updated CFP, the District shall not be eligible to receive school impact fees until the updated plan has been adopted by the Council.
2. The school CFP may include revised data for the impact fee formula and/or calculations, and a corresponding modification to the fee schedule.
3. The adoption by the District of revisions to the CFP and adoption of those revisions by the City Council shall serve to supplement, clarify and update the Non-City Public Facilities Element for Schools of the City’s Comprehensive Plan and serve as an update of the six-year capital facilities forecast. (Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1430 § 1, 2007)
15.50.050 School impact fee.
A. Fee Required. As a condition of approval, all development activity, except for the exemptions specified in this chapter, shall be subject to the school impact fee established pursuant to this chapter. The school impact fee shall be calculated in accordance with the formula established in the CFP. The school impact fee due and payable shall be as shown in the school CFP.
B. Impact Fee Schedule. The school impact fees specified in the District’s school CFP and hereby adopted by the City Council shall constitute the City’s schedule of school impact fees. The Community Development Department and the District shall, for the convenience of the public, keep available an information sheet summarizing the schedule of school impact fees applicable throughout the City.
C. Service Areas Established. For purposes of calculating and imposing school impact fees for various land use categories per unit of development, the Ferndale City limits shall constitute the District’s service area.
D. Impact Fee Limitations.
1. School impact fees shall be imposed for District capital facilities that are reasonably related to the development under consideration, shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the development, and shall be used for system improvements that will reasonably benefit the new development.
2. School impact fees must be expended or encumbered by the School District for a permissible use in accordance with subsection (D)(1) of this section within the maximum time as set forth by State law (RCW 82.02.070), unless an extraordinary or compelling reason exists for the fees to be held longer than the maximum time allowed.
3. To the extent permitted by law, school impact fees may be collected for capital facilities costs previously incurred to the extent that new growth and development will be served by the previously constructed capital facilities; provided, that school impact fees shall not be imposed to make up for any existing system deficiencies.
4. A developer required to pay a fee pursuant to RCW 43.21C.060 for school facilities shall not be required to pay a school impact fee pursuant to RCW 82.02.050 through 82.02.090 and this chapter for the same facilities.
E. Fee Determination.
1. For residential building permits, the applicability of school impact fees will be determined at the time of building permit application. The amount of the fee due shall be based on the fee schedule in effect at the time of fee payment. Credit amounts and allocation of credits to be applied against the fees shall be determined by the District at the time of permit approval in accordance with subsection (F) of this section.
2. Residential development activities that are subject to review by the City such as long plats and planned unit developments shall include in the conditions of approval a determination of the project’s school impact fee obligation under this chapter. Said determination shall include any credits for in-kind contributions provided under subsection (F) of this section. Final determinations may be appealed pursuant to the procedures established in FMC 15.50.080.
3. In all cases, the amount of school impact fees shall be that which is in effect at the time of fee payment. Partial payment of fees shall not constitute a vesting of the fee amount for remaining fees. Fee payment shall be made as follows:
|
|
Amount of Per-Unit Assessment Payable At: |
|
|---|---|---|
|
Development Type |
Project* Approval |
Building Permit Issuance |
|
1. Development requiring both project* building permit approvals, except for “a” below |
Total assessment per unit for all units |
- |
|
a. Creation of new additional lots for future single-family residential use on property where one or more previously existing single-family units are located |
Total assessment for net new lots |
- |
|
2. Development for which building permit only is required, except for “b” below |
- |
Total assessment |
|
b. Construction of single-family residence on previously existing lot of record |
- |
1/2 of assessment |
|
3. Development for which no individual building permit will be required following project approval |
Total assessment |
- |
* “Project” includes conditional use permit, mobile home park, mobile home subdivision, planned unit development, short plat or final plat involving a residential or potential residential use, as applicable.
** An additional option shall also include the choice to pay 50 percent of fees at lot creation and 50 percent at request for final inspection of a residential structure.
*** Code reviser’s note: Ord. 1916 establishes a permanent impact fee deferment on option on residential construction consistent with RCW 82.02.050 and SB5923.
In all instances the impact fee shall be paid by the permit applicant to the Ferndale School District, which shall provide a receipt evidencing payment of the impact fee which receipt the permit applicant must produce prior to further action by the City.
F. Credit for In-Kind Contributions.
1. A developer may request, and the District may grant a credit against, school impact fees otherwise due under this chapter for the value of any dedication of land, improvement to, or new construction of any capital facilities identified in the District’s school facilities plan provided by the developer. Such requests must be accompanied by supporting documentation of the estimated value of such in-kind contributions. All requests must be submitted to the District in writing prior to the City’s determination under subsection (E) of this section.
2. Where the District determines that a development activity is eligible for a credit for a proposed in-kind contribution, it shall provide the Department and the developer with a letter setting forth the justification for and dollar amount of the credit, the legal description of any dedicated property, and a description of the development activity to which the credit may be applied. The value of any such credit may exceed the impact fee obligation of the development, but the District shall not be responsible for reimbursing the developer for the difference.
3. Where there is agreement between the developer and the District concerning the value of proposed in-kind contributions, the developer’s eligibility for a credit, and/or the amount of any credit, the Director shall (a) approve the request for credit and adjust the impact fee obligation accordingly, and (b) require that such contributions be made as a condition of development approval. Where there is disagreement between the developer and the District regarding the value of in-kind contributions, however, the Director may render a decision that can be appealed by either party pursuant to the procedures in FMC 15.50.080.
4. For subdivisions, planned residential developments and other large-scale projects where credits for in-kind contributions are proposed or required, it may be appropriate or necessary to establish the value of the credit on a per-unit basis as a part of the development approval. Such credit values will then be recorded as part of the plat or other instrument of approval and will be used in determining the fee obligation – if any – at the time fees become due for the development activity. In the event that such credit value is greater than the impact fee in effect at the time of permit application, the fee obligation shall be considered satisfied.
G. SEPA Mitigation and Other Review.
1. The City shall review development proposals and development activity permits pursuant to all applicable State and local laws and regulations, including the State Environmental Policy Act (Chapter 43.21C RCW), the State Subdivision Law (Chapter 58.17 RCW), and the applicable sections of the Ferndale Municipal Code. Following such review, the City may condition or deny development approval as necessary or appropriate to mitigate or avoid significant adverse impacts to school services and facilities, to assure that appropriate provisions are made for schools, school grounds, and safe student walking conditions, and to ensure that development is compatible and consistent with the District’s services, facilities and capital facilities plan.
2. Impact fees required by this chapter for development activity, together with compliance with development regulations and other mitigation measures offered or imposed at the time of development review and development activity review, shall constitute adequate mitigation for all of a development’s specific adverse environmental impacts on the school system for the purposes of this chapter. Nothing in this chapter prevents a determination of significance from being issued, the application of new or different development regulations, and/or requirements for additional environmental analysis, protection, and mitigation measures to the extent required by applicable law. (Ord. 1916 § 7, 2015; Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1675 § 1, 2011; Ord. 1430 § 1, 2007)
15.50.060 Impact fee accounting.
A. Collection and Transfer of Fees.
1. School impact fees that are required prior to the creation of lots shall be due and payable to the District at the time of final plat approval and/or planned unit development approval. If any residential lot or parcel was not part of a plat, or if impact fees were not previously paid, then the full impact fee shall be due and payable to the District, unless previous SEPA mitigation measures were identified for the purpose of addressing such impacts. A receipt from the District evidencing payment of the impact fee shall be provided to the City as a condition precedent to the issuance of the building permit and/or the completion of building inspections related to the permit, as applicable.
2. The District shall establish an interest-bearing account separate from all other District accounts in which to deposit the impact fees. The District shall deposit all impact fees received into the impact fee account.
3. The District shall institute a procedure for the disposition of impact fees and providing for annual reporting to the City that demonstrates compliance with the requirements of RCW 82.02.070 and other applicable laws.
B. Use of Funds.
1. School impact fees may be used by the District only for capital facilities that are reasonably related to the development for which they were assessed and may be expended only in conformance with the District’s adopted school CFP.
2. In the event that bonds or similar debt instruments are issued for the advance provision of capital facilities for which school impact fees may be expended, and where consistent with the provisions of the bond covenants and State law, school impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the capital facilities provided are consistent with the requirements of this chapter.
3. The responsibility for assuring that school impact fees are used for authorized purposes rests with the District. All interest earned on a school impact fee account must be retained in the account and expended for the purpose or purposes for which the school impact fees were imposed, subject to the provisions of subsection (C) of this section.
4. On or before the first City Council meeting of July and pursuant to RCW 82.02.070(1), the District shall provide the City an annual report showing the source and the amount of school impact fees received by the District and the capital facilities financed in whole or in part with those school impact fees. This report shall be made to the Community Development Director. At a minimum, this report shall include the following:
a. Impact fee source (by development/lot).
b. Impact fee amount.
c. Date of receipt.
d. Outstanding balance per lot (as a percentage of the full impact fee).
e. Impact fee allocations and expenditures.
5. Pursuant to RCW 82.02.070(1) and based on the District’s report required by subsection (B)(4) of this section, the City will provide an annual report on each impact fee account showing the source and amount of all moneys collected, earned, or received and system improvements that were financed in whole or in part by impact fees.
C. Refunds.
1. School impact fees not spent or encumbered for a permissible use in accordance with FMC 15.50.050(D)(1) within the maximum time set forth by State law (RCW 82.02.070), unless an extraordinary or compelling reason exists for the fees to be held longer than the maximum time allowed, shall – upon receipt of a proper and accurate claim – be subject to refund, together with interest, to the then current owner of the property. In determining whether school impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis. At least annually, the District, based on the annual report created pursuant to subsection (B)(4) of this section, shall give notice to the last known address of potential claimants of any funds, if any, that it has collected that have not been spent or encumbered. The notice will state that any persons entitled to such refunds may make claims.
2. Refunds provided for under this section shall be paid only upon submission of a proper claim pursuant to District claim procedures. Such claims must be submitted to the District within one year of the date the right to claim the refund arises, or the date of notification provided for above, whichever is later.
3. The District, and not the City, shall be responsible for payment of any refunds as provided herein. (Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1675 § 2, 2011; Ord. 1430 § 1, 2007)
15.50.070 Adjustments, waivers, and exemptions.
A. Administrative Adjustment of Fee Amount.
1. An applicant for a building permit or other fee-eligible development action may, within 21 days of acceptance by the City of a complete building permit application, submit a letter to the District requesting an adjustment to the impact fees imposed by this chapter. The District Superintendent or his/her designee may adjust the amount or waive the entire fee, in consideration of studies and data submitted by the developer and the District, if one of the following circumstances exists:
a. It can be demonstrated that the school impact fee assessment was incorrectly calculated;
b. A credit for in-kind contributions by the developer, as provided for under FMC 15.50.050(F), is warranted; or
c. Any other credit specified in RCW 82.02.060(1)(b) may be warranted.
2. To avoid delay pending resolution of the adjustment or appeal, school impact fees may be paid under protest in order to obtain a development approval. Protests of fee amounts shall be made through the appeal process specified in FMC 15.50.080(A). Protests of the establishment of a fee, regardless of the fee amount, shall be made to the City and copied to the District. The individual or other entity protesting a fee is responsible for noticing both the District and the City.
B. Waivers and Exemptions. The following shall be exempt from payment of school impact fees:
1. Commercial and industrial developments that do not result in additional dwelling units.
2. Remodels, replacement, or additions to existing residential development if no additional dwelling units are created.
3. Residential development for which the applicable SEPA environmental document required the payment of fees as a condition of approval, in order to mitigate impacts to the Ferndale School District.
4. Residential development consisting of “housing for older persons” as defined by 46 USC Section 3607, and guaranteed by a restrictive covenant that is recorded against the property.
5. A developer required to pay a fee pursuant to RCW 43.21C.060 for school facilities shall not be required to pay a school impact fee pursuant to RCW 82.02.050 through 82.02.090 and this chapter for the same facilities.
6. Residential development provided by nonprofit organizations that is intended exclusively for very low income households earning less than 50 percent of the median household income of the County, as per RCW 84.36.560. (Ord. 1795 § 1 (Exh. 1), 2013; Ord. 1430 § 1, 2007)
15.50.080 Appeals and arbitration.
A. Appeals of Decisions – Procedure. The District’s final impact fee determination may be appealed to the City in accordance with the appeal procedure for the underlying development permit for which the school impact fees are required.
B. Arbitration of Disputes. With the consent of the developer and the District, a dispute regarding imposition or calculation of a school impact fee may be resolved by arbitration. (Ord. 1795 § 1 (Exh. 1), 2013)
15.50.090 Severability.
Should any section of this chapter be deemed unconstitutional by a court of law, all other sections shall be assumed to remain valid. (Ord. 1795 § 1 (Exh. 1), 2013)