Chapter 14.100 SCHOOL IMPACT MITIGATION

(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.

14.100.020 Applicability.

The terms of this chapter shall apply to all development which increases the number of dwelling units and 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 SEPA threshold determination that provided for school mitigation.

14.100.030 Definitions.

Average assessed value means the district’s average assessed value for each dwelling unit type.

Boeckh Index means the current construction trade index of construction costs for each school type.

Capital facilities means school facilities identified in the school district’s capital facilities plan and are “system improvements” as defined by the GMA as opposed to localized “project improvements.”

Development means construction of new single-family and multifamily residential dwellings, including residential subdivisions, short platsbinding site plans, mobile home parks, condominiums and building permits.

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 building permits for remodeling or renovation permits which do not result in additional dwelling units. Also excluded from this definition is “housing for older persons” as defined by 46 U.S.C. Section 3607, when guaranteed by a restrictive covenant, and new single-family detached units constructed on legal lots created prior to the effective date of the ordinance codified in this chapter.

District means any public school district whose geographic boundaries include areas within the city of Lake Stevens.

District property tax levy rate means the school district’s current capital property tax rate per $1,000 of assessed value.

Encumbered means school impact fees identified by the school district to be committed as part of the funding for capital facilities for which the publicly funded share has been assured, development approvals have been sought or construction contracts have been let.

Estimated facility construction cost means the planned costs of new schools or the actual construction costs of schools of the same grade span recently constructed by the district, including on site and off-site improvement costs. If the district does not have this cost information available, construction costs of school facilities of the same or similar grade span within another district are acceptable.

Facility design capacity means the number of students each school type is designed to accommodate, based on the district’s standard of service as determined by the district.

Grade span means a category into which a district groups its grades of students (e.g., elementary, middle or junior high, and high school).

Interest rate means the current interest rate as stated in the Bond Buyer Twenty Bond General Obligation Bond Index.

Land cost per acre means the estimated average land acquisition cost per acre (in current dollars) based on recent site acquisition costs, comparisons of comparable site acquisition costs in other districts, or the average assessed value per acre of properties comparable to school sites located within the district.

Permanent facilities means school facilities of the district with a fixed foundation.

Relocatable facilities means factory-built structures, transportable in one or more sections, that are designed to be used as education spaces and are needed to prevent the overbuilding of school facilities, to meet the needs of service areas within a district, or to cover the gap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities.

Relocatable facilities cost means the total cost, based on actual costs incurred by the district, for purchasing and installing portable classrooms.

Relocatable facilities student capacity means the rated capacity for a typical portable classroom used for a specified grade span.

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. The school impact fee does not include a reasonable permit fee, an application fee, the administrative fee for collecting and handling impact fees, or the cost of reviewing independent fee calculations.

Standard of service means the standard adopted by each district which identifies the program year, the class size by grade span and taking into account the requirements of students with special needs, the number of classrooms, the types of facilities the district believes will best serve its student population, and other factors as identified in the district’s capital facilities plan. The district’s standard of service shall not be adjusted for any portion of the classrooms housed in relocatable facilities which are used as transitional facilities or from any specialized facilities housed in relocatable facilities.

State match percentage means the proportion of funds that are provided to the district for specific capital projects from the State’s common school construction fund. These funds are disbursed based on a formula which calculates district assessed valuation per pupil relative to the whole state assessed valuation per pupil to establish the maximum percentage of the total project eligible to be paid by the state.

Student factor (student generation rate) means the number of students of each grade span (elementary, middle/junior high, high school) that a district determines are typically generated by different dwelling unit types within the district. Each school district will use a survey or statistically valid methodology to derive the specific student generation rate; provided, that the survey or methodology is approved by the Lake Stevens City Council as part of the adopted capital facilities plan for each school district. (Ord. 1123, Sec. 2 (Exh. A), 2021)

14.100.040 Capital facilities plan required.

The district shall be eligible to receive school impact fees upon approval, by the City Council, of a district capital facilities plan (SDCFP) which meets the requirements of the GMA. Approval of the SDCFP will also constitute adoption the schedule of school impact fees contained therein. (Ord. 1123, Sec. 2 (Exh. A), 2021)

14.100.050 Expiration of district plans.

For purposes of school impact fee eligibility, the district’s capital facilities plan shall expire two years from the date of its adoption by the Council, or when an updated plan meeting the requirements of the GMA is adopted by the Council, whichever date first occurs.

14.100.060 Updating of district plans.

(a) The district’s capital facilities plan shall be updated by the district and transmitted to the City at least 60 days prior to its biennial expiration date. The updated plan shall be submitted by the Planning Director to the Council for its consideration within 45 days of receipt. In the event the district desires to amend its capital facilities plan prior to the biennial expiration date, they may propose an amendment to be considered by the City, provided such amendments shall be made no more than once per year unless the board of directors of such district declares, and the City finds, that an emergency exists.

(b) The district’s updated capital facilities plan may include revised data for the fee calculation and a corresponding modification to the impact fee schedule, consistent with the City GMA Comprehensive Plan.

14.100.070 Minimum requirements for district capital facilities plans.

Capital facilities plans shall contain data and analysis necessary and sufficient to meet the requirements of the GMA. The plans must provide sufficient detail to allow computation of school impact fees according to the formula contained in Section 14.100.130.

14.100.080 Department review and acceptance.

Upon receipt of the district’s capital facilities plan (or amendment thereof) the Planning Director shall determine the following:

(a) That the analysis contained within the capital facilities plan is consistent with current data developed pursuant to the requirements of the GMA.

(b) That any school impact fee proposed in the district’s capital facilities plan has been calculated using the formula contained in Section 14.100.130.

Upon finding that these requirements have been satisfied, the capital facilities plan shall be transmitted to the Council for consideration and adoption.

14.100.090 Council Adoption.

The City Council shall consider adoption of the school district capital facility plan or amendment by reference as part of the capital facilities element of the City Comprehensive Plan.

14.100.100 Correction of Deficiencies.

Prior to its adoption by the Council, should the planning director find the school district capital facility plan to be deficient, the district shall be notified of the deficiency, identifying the specific matters found to be deficient, and the necessary corrections indicated. The district shall then have 45 days (or such longer period as may be necessary to comply with applicable legal requirements) to correct the deficiencies and resubmit its revised, adopted capital facilities plan.

14.100.110 Delays.

If the district fails to submit its biennial update of the capital facilities plan prior to 60 days before the expiration date, or if the Planning Director notifies the district of deficiencies in the school district capital facility plan and the district fails to correct the deficiencies within 45 days (or such longer period as may be necessary to comply with applicable legal requirements), the City shall endeavor, but shall not be obligated, to complete review prior to the plan expiration date. If an updated capital facilities plan has not been adopted by the Council prior to the existing plan’s expiration date due to the district’s failure to submit an updated plan, the district shall be ineligible to receive school impact fees until the updated plan has been adopted by the Council. (Ord. 675, 2003)

14.100.120 Fee Required.

Each development activity, as a condition of approval, 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 Section 14.100.130 and multiplied by 0.50 to determine the school impact fee due and payable by the applicant. (Ord. 727, Sec. 2, 2006; Ord. 711, Sec. 1, 2005; Ord. 699, Sec. 3, 2005; Ord. 675, 2003)

14.100.130 Impact Fee Calculation Formula.

(a) The formula in this section provides the basis for the impact fee schedule for districts serving the City of Lake Stevens. District capital facilities plans shall include a calculation of its proposed impact fee schedule, by dwelling unit type, utilizing this formula. In addition, a detailed listing and description of the various data and factors needed to support the fee calculation is included herein and Section 14.100.030, Definitions.

(b) Determination of Projected School Capacity Needs. The district shall determine, as part of its capital facilities plan, projected school capacity needs for the current year and for not less than the succeeding five-year period. The capital facilities plan shall also include estimated capital costs for the additional capacity needs, and those costs shall provide the basis for the impact fee calculations set forth in this section.

(c) Cost Calculation by Element. The fees shall be calculated on a “per dwelling unit” basis, by “dwelling unit type” as set forth below.

(1) Site Acquisition Cost Element.

{[B(2) x B(3)] ÷ B(1)} x A(1) = Site Acquisition Cost Element

Where:

B(2) = Site Size (in acres, to the nearest 1/10th)

B(3) = Land Cost (per acre, to the nearest dollar)

B(1) = Facility Design Capacity

A(1) = Student Factor (for each dwelling unit type)

The above calculation shall be made for each of the identified grade levels (e.g., elementary, middle, junior high and/or senior high). The totals shall then be added with the result being the “total site acquisition cost element” for purposes of the final school impact fee calculation below.

(2) School Construction Cost Element.

[C(1) ÷ B(1)] x A(1) = School Construction Cost Element

Where:

C(1) = Estimated Facility Construction Cost

B(1) = Facility Design Capacity

A(1) = Student Factor (for each dwelling unit type)

The above calculation shall be made for each of the identified grade levels (e.g., elementary, middle, junior high and/or senior high). The totals shall then be added and multiplied by the square footage of permanent facilities divided by the total square footage of school facilities, with the result being the total school construction cost element for purposes of the final school impact fee calculation below.

(3) Relocatable Facilities (Portables) Cost Element.

[E(1) ÷ E(2)] x A(1) =Relocatable Facilities Cost Element

Where:

E(1) =Relocatable Facilities Cost

E(2) =Relocatable Facilities Student Capacity

A(1) =Student Factor (for each dwelling unit type)

The above calculation shall be made for each of the identified grade levels (e.g., elementary, middle, junior high and/or senior high). The totals shall then be added and multiplied by the square footage of relocatable facilities divided by the total square footage of school facilities, with the result being the total relocatable facilities cost element for purposes of the final school impact fee calculation below.

(d) Credits Against Cost Calculation – Mandatory. The following monetary credits shall be deducted from the calculated cost elements defined above for purposes of calculating the final school impact fee below.

(1) State Match Credit.

D(1) x D(3) x D(2) x A(1) =State Match Credit

Where:

D(1) =Boeckh Index

D(3) =Square footage of school space allowed per student, by grade span, by the Office of the Superintendent of Public Instruction

D(2) =State Match Percentage

A(1) =Student Factor (for each dwelling unit type)

The above calculation shall be made for each of the identified grade levels (e.g., elementary, middle, junior high and/or senior high). The totals shall then be added with the result being the total state match credit for purposes of the final school impact fee calculation below.

(2) Tax Payment Credit.

[(1 + F(1))10] - 1x F(2) x F(3) = Tax Credit

F(1)(1 + F(1))10

Where:

F(1) =Interest Rate (see MMC 18C.04.020)

F(2) =District Property Tax Levy Rate

F(3) =Average Assessed Value (for each dwelling unit type)

(e) Adjustments Against Cost Calculation – Elective by District. Recognizing that the availability of other sources of public funds varies among districts, each district may provide an additional credit against school impact fees which the district determines will provide the best balance in system improvement funding within the district, between school impact fees and other sources of local public funds available to the district. This adjustment may reduce, but may not increase, the school impact fee from the amount determined by application of the elements identified above. The adjustment, if any, applied by the district shall be specified within the capital facilities plan adopted by the city.

(f) Calculation of Total Impact Fee.

(1) The total school impact fee, per dwelling unit, assessed on a development activity shall be the sum of:

(i) Total Site Acquisition Cost Element

(ii) Total School Construction Cost Element

(iii) Total Relocatable Facilities Cost Element

Minus the sum of:

(iv) Total State Match Credit

(v) Total Tax Payment Credit

(vi) Elective Adjustment by District

Expressed in total dollars per dwelling unit, by dwelling type.

(2) The total school impact fee obligation for each development activity pursuant to the school impact fee schedule of this chapter shall be calculated as follows:

Number of Dwelling Units, by Dwelling Unit Type multiplied by School Impact Fee for Each Dwelling Unit Type

Less

The value of any in-kind contributions proposed by the developer and accepted by the school district, as provided in this chapter. (Ord. 1123, Sec. 2 (Exh. A), 2021)

14.100.140 Impact Fee Schedule.

The school impact fees specified in the district’s capital facilities plan and adopted by the Council shall constitute the City’s schedule of school impact fees. The Planning Department shall, for the convenience of the public, keep available an information sheet summarizing the schedule of school impact fees applicable throughout the City.

14.100.150 Service Areas Established.

For purposes of calculating and imposing school impact fees for various land use categories per unit of development, the geographic boundary of the district constitutes the service area.

14.100.160 Impact Fee Limitations.

(a) 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.

(b) School impact fees must be expended or encumbered for a permissible use within 10 years of receipt by the district.

(c) 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.

(d) A developer required to pay a fee pursuant to RCW 43.21C.060 for capital facilities shall not be required to pay a school impact fee pursuant to RCW 82.02.050 through 82.02.090 and this title for the same capital facilities. (Ord. 1123, Sec. 2 (Exh. A), 2021)

14.100.170 Fee Determination.

(a) On or before the time of development approval, the City shall determine whether school impact fees will be due pursuant to this chapter. Where such fees are due, the development approval shall state that the payment of school impact fees will be required. The amount of the impact fee due shall be based on the fee schedules in effect at the time a building permit application is accepted by the City. The impact fees shall be paid at building permit issuance, unless the applicant elects to defer payment of school impact fees pursuant to Chapter 14.124.

(b) Credit amounts and allocation of credits to be applied against the fees shall be determined at the time of development approval in accordance with Section 14.100.180.

(c) The final determination of a development activity’s fee obligation under this chapter shall include any credits for in-kind contributions provided under Section 14.100.180. Final determinations of the amounts of the fee or credit due may be appealed pursuant to the procedures established in Section 14.16A.265. (Ord. 970, Sec. 3, 2016; Ord. 811, Sec. 85, 2010)

14.100.180 Credit for In-kind Contributions/Existing Lots.

(a) A developer may request and the Planning Director may grant a credit against school impact fees otherwise due under this title for the value of any dedication of land, improvement to, or new construction of any capital facilities identified in the district’s capital 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 Planning Department in writing prior to its determination of the impact fee obligation for the development activity. Each request for credit will be immediately forwarded to the affected school district for its evaluation.

(b) Where the district determines that a development activity is eligible for a credit for a proposed in-kind contribution, it shall provide the planning 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 not exceed the impact fee obligation of the development activity in question.

(c) Where there is agreement between the developer and the school district concerning the value of proposed in-kind contributions, their eligibility for a credit, and the amount of any credit, the Planning Director may (1) approve the request for credit and adjust the impact fee obligation accordingly, and (2) require that such contributions be made as a condition of development approval. Where there is disagreement between the developer and the school district regarding the value of in-kind contributions, however, the Planning Director may render a decision that can be appealed by either party pursuant to the procedures in Section 14.16A.265.

(d) For subdivisions, PRDs and other large-scale developments where credits for in-kind contributions or pre-existing lots 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 of building permit application 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, and the balance of the credit may be transferable to future developments by the applicant within the same school district by agreement with the school district. (Ord. 811, Sec. 86, 2010)

14.100.190 Relationship to SEPA and Other Laws.

(a) The City shall review development permit applications 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 Lake Stevens Municipal Code. Base on 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 each district’s services, facilities and capital facilities plan.

(b) 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 Title 16. 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.

14.100.200 Collection and Transfer of Fees, Fund Authorized and Created.

(a) School impact fees shall be due and payable at or before the time of issuance of residential building permits for all development activities, unless deferred pursuant to Chapter 14.124.

(b) When a short subdivision or subdivision is approved, a note shall be included on the face of the short plat/plat indicating that the impact fee is due upon issuance of the building permit, unless deferred pursuant to Chapter 14.124. The specific language of the note shall be approved by the Planning Director or designee.

(c) The district shall establish an interest-bearing account for collected school impact fees separate from all other district accounts.

(d) 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. (Ord. 970, Sec. 4, 2016)

14.100.210 Use of Funds.

(a) 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 capital facilities plan.

(b) 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 title.

(c) 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 Section 14.100.220.

(d) 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.

14.100.220 Refunds.

(a) School impact fees not spent or encumbered within 10 years after they were collected by the school district shall, upon receipt of a proper and accurate claim, be refunded by the school district together with interest to the then-current owner(s) of the property(ies). In determining whether school impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis. The school district shall report annually to the City Finance Director any funds collected by the school district that have not been spent or encumbered. The City shall, based on the annual report received from the school district pursuant to Section 14.100.210(d), give notice to the last known address of potential claimants of any funds collected by the school district that have not been spent or encumbered and that a claim for a refund may be made.

(b) Any claim for a refund of school impact fees paid to the school district shall be filed with the City Finance Director and the school 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. Refunds for school impact fees shall be paid by the school district. (Ord. 1123, Sec. 2 (Exh. A), 2021)

14.100.230 Reimbursement for City Administrative Costs, Legal Expenses, and Refund Payments.

The district shall enter into an interlocal agreement with the City of Lake Stevens providing for the collection, distribution and expenditure of fees and for reimbursement of any legal expenses and staff time associated with defense of this chapter, and payment of any refunds provided under Section 14.100.220.

14.100.240 Adjustment of Fee Amount.

(a) Within 14 days of acceptance by the city of a building permit application, a developer or school district may appeal to the Planning Director for an adjustment to the fees imposed by this title. The Director may adjust the amount of the fee, in consideration of studies and data submitted by the developer and or the district, if one of the following circumstances exists:

(1) It can be demonstrated that the school impact fee assessment was incorrectly calculated;

(2) Unusual circumstances of the development activity demonstrate that application of the school impact fee to the development would be unfair or unjust;

(3) A credit for in-kind contributions by the developer, as provided for under Section 14.100.180, is warranted; or

(4) Any other credit specified in RCW 82.02.060(1)(b) may be warranted.

(b) To avoid delay pending resolution of the appeal, school impact fees may be paid under protest in order to obtain a development approval.

(c) Failure to exhaust this administrative remedy shall preclude appeals of the school impact fee pursuant to Section 14.16A.265. (Ord. 811, Sec. 87, 2010; Ord. 675, Sec. 1 & 2, 2003: Ord. 371, 1991)