Chapter 22.10
TRANSPORTATION IMPACT FEES
Sections:
22.10.010 Authority and purpose.
22.10.050 Imposition of transportation impact fees.
22.10.060 Approval of development.
22.10.070 Fee schedules and establishment of service area.
22.10.080 Calculation of transportation impact fees.
22.10.100 Variation from transportation impact fee schedule.
22.10.120 Time of payment of transportation impact fees.
22.10.140 Funding of projects.
22.10.150 Use and disposition of dedicated land.
22.10.170 Exemption or reduction for low-income housing.
22.10.190 Relationship to SEPA.
22.10.200 Transportation facility requirements in adjoining municipalities/districts.
22.10.210 Necessity of compliance.
22.10.010 Authority and purpose.
A. This chapter is enacted pursuant to the city’s police powers, the Growth Management Act (Chapter 36.70A RCW), the impact fee statutes (RCW 82.02.050 through 82.02.100), the State Subdivision Act (Chapter 58.17 RCW) and the State Environmental Policy Act (SEPA, Chapter 43.21C RCW).
B. The purpose of this chapter is to:
1. Develop a program consistent with the city’s six-year road plan and the city’s comprehensive plan (transportation element) and capital improvement plan for joint public and private financing of transportation facility improvements necessitated in whole or in part by development in the city;
2. Ensure adequate levels of service in public transportation facilities within the city;
3. Create a mechanism to charge and collect fees to ensure that all new development bears its proportionate share of the capital costs of off-site transportation facilities reasonably related to new development, in order to maintain adopted levels of service in the city’s transportation facilities, and to ensure the availability of adequate facilities at the time of or concurrent with new development;
4. Ensure that the city pays its fair share of the capital costs of transportation facilities necessitated by public use of the roadway system; and
5. Ensure fair collection and administration of such impact fees. (Ord. 1976 § 2, 2018).
22.10.020 Applicability.
A. The requirements of this chapter apply to all development in the city as defined in PMC 22.10.040.
B. Mitigation of impacts on transportation facilities located in jurisdictions outside the city will be required when:
1. The other affected jurisdiction has reviewed the development’s impact under its adopted impact fee/mitigation regulations and has recommended to the city that there be a requirement to mitigate that impact; and
2. There is an interlocal agreement between the city and the affected jurisdiction specifically addressing impact identification and mitigation. (Ord. 1976 § 2, 2018).
22.10.030 Geographic scope.
The boundaries within which transportation impact fees shall be charged and collected are the same as the corporate city limits. All unincorporated areas annexed to the city on and after the effective date of the ordinance codified in this chapter shall be subject to the provisions of this chapter. After the adoption of interlocal agreements with other local and regional governments, the geographic boundaries may be expanded consistent therewith. (Ord. 1976 § 2, 2018).
22.10.040 Definitions.
The following words and terms shall have the following meanings for the purpose of this chapter unless the context clearly appears otherwise. Terms not defined herein shall be given the meaning set forth in RCW 82.02.090, or given their usual and customary meaning if not defined in RCW 82.02.090.
A. “Act” means the Growth Management Act, Chapter 36.70A RCW, as now existing or as hereafter amended.
B. “Adequate public facilities” means facilities which have the capacity to serve development without decreasing levels of service below locally established minimums. (WAC 365-196-210(3).)
C. “Affordable housing” means residential housing that is rented or owned by a person or household whose monthly housing costs, including utilities other than telephone, do not exceed 30 percent of the household’s monthly income. (WAC 365-196-210(4).)
D. “Approving authority” means the city employee, agency or official having the authority to issue the approval or permit for the development activity involved.
E. “Annual capacity availability report” means the report prepared each year to include available and reserved capacity for each public facility and identifying those proposed and planned capital improvements for each public facility that will correct deficiencies or improve levels of service, a summary of development activity, a summary of current levels of service and recommendations.
F. “Available public facilities” means that public facilities are in place or a financial commitment has been made to provide the facilities concurrent with development.
G. “Capacity” means the ability of a public facility to accommodate users, expressed in an appropriate unit of measure, such as average daily trip ends or “peak p.m. trips” within the LOS standards for the facility.
H. “Capacity, available” means capacity in excess of current demand (“used capacity”) for a specific public facility which can be encumbered, reserved or committed or the difference between capacity and current demand (“used capacity”).
I. “Capacity, encumbered” means a reduction in the available capacity resulting from issuance of a capacity reservation certificate or that portion of the available capacity.
J. “Capacity evaluation” means the evaluation by the director based on adopted level of service (LOS) standards to ensure that public facilities and services needed to support development are available concurrent with the impacts of such development, as defined in the city’s concurrency ordinance.
K. “Capacity reservation certificate” or “CRC” means a determination made by the director that: (1) a proposed development activity of development phase will be concurrent with the applicable facilities at the time the CRC is issued; and (2) the director has reserved capacity for an application for a period that corresponds to the respective development permit.
L. “Capacity, reserved” means capacity which has been reserved through use of the capacity reservation certificate process in PMC 22.01.010.
M. “Capital facilities” means the facilities or improvements included in a capital facilities plan.
N. “Capital facilities plan” means the capital facilities plan element of the city’s comprehensive plan adopted pursuant to Chapter 36.70A RCW and RCW 36.70A.070 and any amendments to the plan.
O. “Change of use” means, for the purposes of this chapter, any change, redevelopment or modification of use of an existing building or site which meets the definition of “development activity” herein.
P. “City” means the city of Pacific, Washington.
Q. “Comprehensive land use plan” or “comprehensive plan” means a generalized coordinated land use policy statement of the city council, adopted pursuant to Chapter 36.70A RCW.
R. “Concurrency” or “concurrent with development” means that adequate public facilities are available when the impacts of development occur, or within a specified time thereafter. This definition includes the concept of “adequate public facilities” as defined above. For the purposes of transportation facilities, “concurrent with development” means that strategies or improvements are in place at the time of development or that a financial commitment is in place to complete the improvements or strategies within six years. (RCW 36.70A.070(6)(b).)
S. “Council” means the city council of the city of Pacific, Washington.
T. “Dedication” means the conveyance of land or facilities to the city for public facility purposes, by deed, other instrument of conveyance or by dedication, on a duly filed and recorded plat (or short plat).
U. “Demand management strategies” means strategies designed to change travel behavior to make more efficient use of existing facilities to meet travel demand. Examples of demand management strategies can include strategies that: (1) shift demand outside of the peak travel time; (2) shift demand to other modes of transportation; (3) increase the number of occupants per vehicle; (4) decrease the length of trips; and (5) avoid the need for vehicle trips. (WAC 365-196-210(12).)
V. “Department” means the public works department of the city of Pacific.
W. “Developer” means any person or entity who makes application or receives a development permit or approval for any development activity as defined herein.
X. “Development activity” or “development” means any construction or expansion of a building, structure, or use, and change in the use of a building or structure, or any changes in the use of the land that creates additional demand for public facilities (such as a change which results in an increase in the number of vehicle trips to and from the property, building or structure) and requires a development permit from the city. (RCW 82.02.090(1).)
Y. “Development agreement” means the agreements authorized in RCW 36.70B.170.
Z. “Development permit” or “project permit” means any land use permit required by the city for a project action, including but not limited to building permits, subdivisions, short plats, binding site plans, planned unit developments, conditional uses, shoreline substantial developments, site plan reviews, or site-specific rezones, and, for purposes of the city’s concurrency ordinance, shall include applications for amendments to the city’s comprehensive plan which request an increase in the extent or density of development on the subject property.
AA. “Director” means the director of the public works department.
BB. “Existing use” means development which physically exists or for which the owner holds a valid building permit as of the effective date of the ordinance codified in this chapter.
CC. “Encumbered” means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations or other liabilities incurred for public facilities.
DD. “Fair market value” means the price in terms of money that a property will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller each being prudently knowledgeable, and assuming the price is not affected by undue stimulus.
EE. “Feepayer” means a person, corporation, partnership, an incorporated association, or a department or bureau of any government entity, or any other similar entity, commencing a land development activity. “Feepayer” includes applicants for an impact fee credit.
FF. “Financial commitment” means those sources of public or private funds or combinations thereof that have been identified as sufficient to finance public facilities necessary to support development and that there is reasonable assurance that such funds will be timely put to that end.
GG. “Growth-related” means a development activity as defined herein that utilizes the available capacity of a public facility.
HH. “Impact fee” means the amount of money determined necessary by the city and imposed upon new development activity as a condition of development approval or permitting to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates the 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. “Impact fee” does not include a reasonable permit or application fee. (RCW 82.02.090(3).)
II. “Impact fee accounts” means the account(s) established for each type of public facilities for which impact fees are collected. The account for transportation impact fees shall be established pursuant to this chapter and comply with the requirements of RCW 82.02.070.
JJ. “Impact fee schedule” means the table of impact fees per unit of development which is to be used by the director in computing impact fees.
KK. “Interest” means the interest rate earned by the city for the impact fee account, if not otherwise defined.
LL. “Interlocal agreement” means the transportation impact fee interlocal agreement by and between the city and county or the city and a neighboring city, or the city and the state of Washington, concerning the collection and allocation of transportation impact fees or any other interlocal agreement entered by and between the city and another municipality, public agency or governmental body in order to implement an impact fee program.
MM. “Level of service” or “LOS” means an established minimum capacity of public facilities or services that must be provided per unit of demand or other appropriate measure of need. Level of service standards are synonymous with locally established minimum standards. (WAC 365-196-210(19).)
NN. “Owner” means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property, if the contract is recorded. In addition, the lessee of the real property shall be considered the owner, if the lease of the real property exceeds 25 years and the lessee is the developer of the real property. (RCW 82.02.090(4).)
OO. “Previous use” means (1) the use existing on the site when a capacity evaluation is sought; or (2) the most recent use on the site within the five-year period prior to the date of application for the development.
PP. “Project” means a system improvement, selected by the city council for joint private and public funding and which appears on the project list.
QQ. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development and that are necessary for the use and convenience of the occupants or users of the project and are not system improvements. No improvement or facility included in a capital facilities plan approved by the city council shall be considered a project improvement. (RCW 82.02.090(5).)
RR. “Project list” means the list of projects described in the city’s annual and six-year capital improvement programs and as developed pursuant to this chapter.
SS. “Proportionate share” means that portion of the cost of public facility improvements that is reasonably related to demands and needs of new development. (RCW 82.02.090(6).)
TT. “Road” means a right-of-way which affords the principal means of access to abutting property, including an avenue, place, way, drive, lane, boulevard, highway, street, and other thoroughfare, except an alley.
UU. “Road facilities” or “transportation facilities” includes public facilities related to land transportation.
VV. “Service area” means the geographic area defined by the city or interlocal agreement in which a defined set of public facilities provide service to development in the area. Service areas shall be designated on the basis of sound engineering or planning principles. (RCW 82.02.090(8).)
WW. “State” means the state of Washington.
XX. “Subdivision” means all subdivisions as defined in PMC Title 19, and all short subdivisions as defined in that title.
YY. “System improvements” means public facilities that are included in the city’s capital facilities plan and are designed to provide service to areas within the city and community at large, in contrast to project or on-site improvements. (RCW 82.02.090(9).)
ZZ. “Traffic analysis zone” means the minimum geographic unit used for traffic analysis.
AAA. “Transportation primary impact area” means a geographically determined area that delineates the impacted area of a deficient roadway link.
BBB. “Transportation level of service standards” means a measure which describes the operational condition of the travel stream and acceptable adequacy requirement.
CCC. “Transportation management area” means a geographically determined area that contains compact urban development patterns where a dense roadway network and extensive mass transit services are in place. The performance of these areas shall be based on the percentage of lane miles meeting the LOS standards as described in this chapter.
DDD. “Traffic demand model” means the simulation through computer modeling of vehicle trip ends assigned on the roadway network.
EEE. “Trip allocation program” means the program established to meter trip ends to new development annually by service area and traffic analysis zone to ensure that the city is maintaining adopted LOS standards.
FFF. “Trip end” means a single or one-directional vehicle movement.
GGG. “Unit” or “dwelling unit” means a dwelling unit as defined in PMC 20.04.265. (Ord. 1976 § 2, 2018).
22.10.050 Imposition of transportation impact fees.
A. The city is hereby authorized to impose transportation impact fees on new development.
B. Transportation impact fees may be required pursuant to the impact fee schedules adopted in accordance with PMC 22.10.070, or mitigation may be provided through:
1. The purchase, installation and/or improvement of transportation facilities pursuant to PMC 22.10.090; or
2. The dedication of land pursuant to PMC 22.10.090.
C. Transportation impact fees:
1. Shall only be imposed for transportation facilities that are reasonably related to new development;
2. Shall not exceed a proportionate share of the costs of transportation facilities that are reasonably related to new development;
3. Shall be used for transportation facilities that will reasonably benefit the new development;
4. Shall not be used to correct existing deficiencies;
5. Shall not be imposed to mitigate the same off-site transportation facility impacts that are being mitigated pursuant to any other law;
6. Shall not be collected for improvements to state/county transportation facilities unless the state/county requests such improvements and an interlocal agreement to collect such fees has been executed between the state/county and the city;
7. Shall not be collected for improvements to transportation facilities in other municipalities unless the affected municipality requests that such impact fees be collected on behalf of the affected municipality, and an interlocal agreement has been executed between the city and the affected municipality for the collection of such fees;
8. Shall be collected only once for each development, unless changes or modifications to the development are proposed which result in greater direct impacts on transportation facilities than were considered when the development was first permitted; and
9. May be imposed for system improvement costs previously incurred by the city to the extent that new growth and development will be served by previously constructed improvements; and provided, that such fee shall not be imposed to make up for any system improvement deficiencies. (Ord. 1976 § 2, 2018).
22.10.060 Approval of development.
Prior to approving or permitting a development or development permit, the approving authority shall consult with the director concerning mitigation of a development’s transportation facility impacts and impact fees. (Ord. 1976 § 2, 2018).
22.10.070 Fee schedules and establishment of service area.
A. Transportation impact fee schedules setting forth the amount of the impact fees to be paid by developers are listed in Appendix A, attached to the ordinance adopting this chapter and incorporated herein by this reference.
B. For the purpose of this chapter, the entire city shall be considered one service area. (Ord. 1976 § 2, 2018).
22.10.080 Calculation of transportation impact fees.
A. Director Calculates the Fees. The director shall calculate the transportation impact fees set forth in Appendix A, attached to the ordinance adopting this chapter. The city council shall have the final decision on the calculation of the impact fees to be imposed under this chapter as set forth in Appendix A.
B. Factors Used in Transportation Impact Fee Calculations. The calculation of transportation impact fees shall include the factors identified in RCW 82.02.050 through 82.02.090 and shall:
1. Determine the standard fee for similar types of development, which shall be reasonably related to each development’s proportionate share of the cost of projects described in the project list; and
2. Reduce the proportionate share by applying the benefit factors described in PMC 22.10.090.
C. Proportionate Share. In calculating proportionate share, the following factors shall be considered:
1. Identification of all transportation facilities that will be impacted by users from each development;
2. Identification of the point at which the capacity of a transportation facility has been fully utilized;
3. Updating of the data as often as practicable, but at least annually;
4. Estimation of the cost of construction of the projects in the project list (see PMC 22.10.130) at the time they are placed on the list, and then updating the cost estimates at least annually, considering the:
a. Availability of other means of funding transportation facilities;
b. Cost of existing transportation facility improvements;
c. Methods by which transportation facility improvements were financed; and
5. Updating the fee collected against a project which has already been completed through an advancement of city funds at a rate determined annually, which is equivalent to the city return on investments. (Ord. 1976 § 2, 2018).
22.10.090 Credits.
A. Credit Allowed. The director shall reduce the calculated proportionate share for a particular development by giving credit for the benefit factors described in this section.
B. Procedure for Obtaining Credit – Time to Request Credit. Requests for credits against transportation impact fees will not be considered unless the developer makes the request in writing, concurrent with the submission of the application for the underlying development permit triggering the impact fee requirement.
C. Benefit Factors. The director will consider the following benefit factors when determining whether a transportation impact fee credit is appropriate:
1. Developer’s Dedication of Land and/or Construction of System Improvements. The value of any dedication of land for, improvement to, or new construction of any system improvements provided by the developer to facilities required by the city that are identified in the capital facilities plan and that are required by the city as a condition of approving the development activity, as long as the following conditions are satisfied:
a. The system improvements are located on land owned by the city or another governmental entity; and
b. A designated public owner is responsible for permanent, continuing maintenance and operation of the system improvements; and
c. The director determines that the system improvements correspond to transportation system improvements that are reasonably related to the development as determined pursuant to this chapter; and
d. The director determines, after an analysis of supply and demand data, the six-year road plan and the adopted county transportation plan, that the proposed transportation system improvements better meet the city’s need for transportation system improvements than would payment of funds to mitigate the transportation impacts of the development;
2. In the determination of credit toward the impact fee, the director shall also consider the extent to which the proposed dedication or conveyance meets the following criteria:
a. The land should result in an integral element of the city road system;
b. The land is suitable for future transportation facilities;
c. The land is of appropriate size and of an acceptable configuration;
d. The land has public access via a public street or an easement of an equivalent width and accessibility;
e. The land provides linkage between county and/or other publicly owned transportation properties;
f. The land has been surveyed or adequately marked with survey monuments, or is otherwise readily distinguishable from adjacent privately owned property;
g. The land has no known physical problems associated with it, such as the presence of hazardous waste, drainage, erosion or flooding problems, which the director or superintendent determines would cause inordinate demands on public resources for maintenance and operation;
h. The land has no known safety hazards; and
i. The developer is able to provide documentation, as nearly as practicable, of the land’s compliance with the criteria of this subsection, and of clear title.
D. Requirement for System Improvement Plan. When the director has agreed to a developer’s proposal to satisfy some or all of the impact fee through the purchase, installation and/or improvement of transportation facilities, the developer shall prepare and submit a system improvement plan to the director for approval prior to recordation of a plat or short plat for subdivisions, and prior to issuance of a building permit for all other developments.
E. Statutory Benefit Factors. The director may consider any applicable benefit factors, as described in RCW 82.02.060 (as it now exists or may hereafter be amended), that are demonstrated by the applicant not to be included in the calculation of the impact fee.
F. Amount of Credit. The credit against the transportation impact fee shall be equal to the fair market value of the purchased or dedicated property or equal to the cost of the completed transportation system improvements. In those situations in which a developer has not yet installed or constructed system improvements and requests a credit for the system improvement(s), the city engineer shall estimate the cost of the system improvements, which shall be the credit allowed to the developer in the decision on the amount of the impact fee. If a credit is granted for a system improvement that has not been constructed, the developer shall pay the full impact fee without the credit at the time established in PMC 22.10.110. After construction and/or installation of the system improvement, the developer may request the credit granted by the engineer under this subsection and the city shall refund the difference of the impact fee to reflect the credit; provided, that if the city and the property owner have entered into a development agreement on or before the effective date of the ordinance codified in this section, and the agreement requires the construction of such improvements, the city may allow a credit to be subtracted from the impact fee paid at the time established in PMC 22.10.110.
G. PRDs, PUDs and Mobile Home Parks. A developer of a planned residential development, a planned unit development, or a mobile home park may receive credit only for transportation facilities provided in addition to those normally required under SEPA for such developments, pursuant to the city’s SEPA ordinance (Chapter 16.70 PMC).
H. Credit to Apply Proportionately to Units. The amount of credit determined pursuant to this subsection shall be credited proportionately among all the units in the development, and the transportation impact fee for each unit for which a permit or approval is applied shall be reduced accordingly.
I. Limits on Credit Requests. Applicants may not request that a transportation impact fee credit be provided for a proposed development based on taxes, user fees, assessments, improvements, payments or other benefit factors applicable to property that is not included within the proposed development. Credit to be paid back by the city to a developer under this subsection shall not exceed the total amount of the impact fees paid by the developer.
J. Local Improvement Districts. Applicants shall receive credit against the transportation impact fee equal to the amount of an LID assessment paid for transportation-related system improvements identified by the director as increasing transportation system capacity.
K. Appeals of Credits. The director shall issue a written decision on the developer’s request for a credit of the transportation impact fee calculation, which shall explain why the credit was granted or denied. The developer may request reconsideration and appeal the impact fee amount and credit pursuant to PMC 22.10.180. If the procedures in PMC 22.10.180 are not timely followed to request an appeal of the credit, the director’s decision on the impact fee credit shall be final. (Ord. 1976 § 2, 2018).
22.10.100 Variation from transportation impact fee schedule.
If a developer submits information demonstrating a significant difference between the age, social activity or interest characteristics of the population of a proposed subdivision or development and the data used to calculate the transportation impact fee schedule, the director may allow a special calculation of the impact fee requirements for the subdivision or development to be prepared by the developer’s consultant, at the developer’s cost; provided, that the director shall have prior approval of the qualifications and methodology of the developer’s consultant in making such calculation, and any time period mandated by statute or ordinance for the approving authority’s final decision on the development shall not include the time spent in preparing the special calculation. Whether the director accepts the data provided by the special calculation shall be at the discretion of the director. (Ord. 1976 § 2, 2018).
22.10.110 Payment of fees.
A. All applicants for development shall pay transportation impact fees in accordance with the provisions of this chapter which shall be calculated by the city at the time that the building permit is ready for issuance. Applicants/developers may choose to pay impact fees or a portion thereof prior to the city’s issuance of a building permit, but if the early payment is less than the fee calculated at the time the building permit is ready for issuance, the applicant/developer shall pay the difference. If the early payment is more than the fee calculated at the time the building permit is ready for issuance, the city shall refund the difference.
B. The transportation impact fee shall be recalculated if the development is modified or conditioned in such a way as to alter transportation impacts for the development.
C. A developer may obtain a preliminary determination of the transportation impact fee before submitting an application for the development permit by providing the director with the information needed for processing together with the applicable fee. Such determinations are provided to the developer as estimates only and they are not binding on the city, given the limited information needed to calculate the preliminary impact fee amount and the fact that the city regularly updates the project list and impact fee schedule. In addition, impact fees are not subject to the vested rights doctrine, and the fee actually paid by the developer will be the impact fee in effect at the time of building permit issuance, regardless of any preliminary determinations. (Ord. 1976 § 2, 2018).
22.10.120 Time of payment of transportation impact fees.
A. Payment of any required transportation impact fees shall be made prior to the issuance of a building permit, except as provided in subsection D of this section.
B. Transportation impact fees may be paid under protest in order to obtain the necessary permits or approvals until an appeal of the fee amount is finally resolved.
C. When a subdivision or development is conditioned upon the dedication of land or the purchase, installation or improvement of transportation facilities, a final plat or short plat shall not be recorded, and a building permit within such plat or development shall not be issued, until:
1. The director has determined in writing that the land to be dedicated is shown on the face of the final plat or short plat, or a deed conveying the land to the city or another governmental entity, if appropriate, has been recorded with the county auditor; and
2. The director has determined in writing that the developer has satisfactorily undertaken, or guaranteed to undertake, in a manner acceptable to the director, any required purchase, installation or improvement of transportation facilities.
D. Deferral of Payment of Impact Fees. Payment of transportation impact fees for single-family attached or single-family detached residential dwelling units may be deferred only until issuance of certificate of occupancy or equivalent certification, pursuant to RCW 82.02.050(3), subject to the following provisions:
1. Each applicant, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this section for the first 20 single-family residential construction building permits. Any single-family residential building construction permits beyond 20 for the same applicant are subject to payment of impact fees at the time of building permit issuance as required by subsection A of this section.
2. A request for deferral must be submitted prior to issuance of a building permit.
3. Application for deferral must be made on a form provided by and acceptable to the city and must include the following information and fees (as established by city resolution):
a. Name, address, telephone number and email address of the applicant;
b. The specific address, legal description and tax identification number of the single-family dwelling for which deferral is being requested;
c. The building permit application number associated with the requested deferral;
d. The registration number or other unique identification number for the contractor that will be building the structure;
e. A statement by the contractor describing how many deferrals have been granted during the current year for said contractor, describing how many have been requested during the current year, and attesting that the number provided and/or requested is less than 20 for the current calendar year; and
f. Applicable fees for processing the application and for future monitoring of the deferred payment of impact fees are required in addition to fees required by this chapter. Deferral application fees shall include:
i. Minimum of four hours base administration fee at the current hourly staff rate required by the development fee schedule adopted in the city’s fee resolution, and payable at the time of application submittal;
ii. Minimum of four hours administration fee at the current hourly staff rate to cover additional time spent processing of final payment of impact fees, including but not limited to preparation of lien release documents, payable before the lien release document shall be released to the applicant.
4. No more than one single-family dwelling may be included on a single application for transportation impact fee deferral.
5. Transportation impact fees shall be calculated based on the fees in place at the time that the applicant applies for a deferral.
6. Transportation impact fees deferred under this section are due no later than the following events, whichever occur first:
a. Issuance of certificate of occupancy or equivalent certification for the single-family dwelling; and
b. Eighteen months from the date of the building permit issuance.
7. An applicant seeking a deferral under this subsection must grant and record a deferred impact fee lien against the property in favor of the city of Pacific. The deferred impact fee lien must include the legal description, tax account number, and address of the property and must also be:
a. In a form approved by the city attorney which ensures that it is binding on all successors on the title to the property after recordation;
b. Signed by all owners of the property, with all signatures acknowledged as required for a deed and recorded with the Pierce/King County auditor’s office; and
c. Junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees.
8. The city may withhold a certificate of occupancy or equivalent certification until the transportation impact fees are paid in full. Upon receipt of final payment of all deferred impact fees for a property, and upon payment of all applicable administrative fees as set forth in the city’s fee resolution, the city must execute a release of deferred impact fee lien for the property. The property owner at the time of release, at his or her expense, is responsible for recording the lien release.
9. Foreclosure Proceedings. If transportation impact fees are not paid in accordance with a deferral authorized by this section, the city may institute proceedings to enforce the lien in accordance with Chapter 61.12 RCW.
10. Obligation to Pay. The extinguishment of a deferred impact fee lien by the foreclosure of a lien having priority does not affect the obligation to pay the impact fees as a condition of issuance of certificate of occupancy or equivalent certification.
11. Deferral Process Not Subject to Review Proceedings. Per RCW 36.70A.140(2), the processing of an impact fee deferral application is not subject to the project permit review requirements of Chapter 36.70B RCW. (Ord. 1976 § 2, 2018).
22.10.130 Project list.
A. The director shall annually review the city’s six-year road plan and the projects listed in Appendix A, attached to the ordinance codified in this chapter, and shall:
1. Identify each project in the comprehensive plan that is growth-related and the proportion of each such project that is growth-related;
2. Forecast the total money available from taxes and other public sources for transportation improvements for the next six years;
3. Update the population, building activity and demand and supply data for transportation facilities and the impact fee schedule for the next six-year period;
4. Calculate the amount of impact fees already paid; and
5. Identify those comprehensive plan projects that have been or are being built but whose performance capacity has not been fully utilized.
B. The director shall use this information to prepare an annual draft amendment to the fee schedule in Appendix A, attached to the ordinance codified in this chapter, which shall comprise:
1. The projects in the comprehensive plan that are growth-related and that should be funded with forecast public monies and the impact fees already paid; and
2. The projects already built or funded pursuant to this chapter whose performance capacity has not been fully utilized.
C. The city council, at the same time that it adopts the annual budget and appropriates funds for capital improvement projects, shall, by separate ordinance, establish the annual project list by adopting, with or without modification, the director’s draft amendment.
D. Once a project is integrated into the fee schedule in Appendix A, a fee shall be imposed on every development until the project is removed from the project list by one of the following means:
1. The city council by ordinance removes the project from the project list and Appendix A, in which case the fees already collected will be refunded if necessary to ensure that impact fees remain reasonably related to the transportation impacts of development that has paid an impact fee; provided, that a refund shall not be necessary if the council transfers the fees to the budget of another project that the council determines will mitigate essentially the same park and transportation impacts; or
2. The capacity created by the project has been fully utilized, in which case the director shall remove the project from the project list. (Ord. 1976 § 2, 2018).
22.10.140 Funding of projects.
A. An impact fee trust and agency fund is hereby created for transportation impact fees. The director shall be the manager of the transportation impact fee fund. The city shall place transportation impact fees in appropriate deposit accounts within the impact fee fund.
B. The transportation impact fees paid to the city shall be held and disbursed as follows:
1. The fees collected for each project shall be placed in a deposit account within the impact fee fund;
2. When the council appropriates capital improvement project (CIP) funds for a transportation project on the project list, the transportation impact fees held in the impact fee fund shall be transferred to the CIP fund. The non-impact fee monies appropriated for the project shall comprise both the public share of the project cost and an advancement of that portion of the private share that has not yet been collected in transportation impact fees;
3. The first money spent by the director on a project after a council appropriation shall be deemed to be the fees from the impact fee fund;
4. Fees collected after a project has been fully funded by means of one or more council appropriations shall constitute reimbursement to the city of the funds advanced for the private share of the project. The public monies made available by such reimbursement shall be used to pay the public share of other projects; and
5. All interest earned on impact fees paid shall be retained in the account and expended for the purpose or purposes for which the impact fees were imposed.
C. Projects shall be funded by a balance between impact fees and public funds, and shall not be funded solely by impact fees.
D. Transportation impact fees shall be expended or encumbered for a permissible use for 10 years after receipt, unless there exists an extraordinary or compelling reason for fees to be held longer than 10 years. The director may recommend to the council that the city hold transportation impact fees beyond 10 years in cases where extraordinary or compelling reasons exist. Such reasons shall be identified in written findings by the council. (Ord. 1976 § 2, 2018).
22.10.150 Use and disposition of dedicated land.
All land dedicated or conveyed pursuant to this chapter shall be set aside for development of transportation facilities. The city and any other governmental entity to which land is dedicated or conveyed pursuant to this chapter shall make every effort to use, develop and maintain land dedicated or conveyed for transportation facilities. In the event that use of any such dedicated land is determined by the director to be infeasible for development of transportation facilities, the dedicated land may be sold or traded for another parcel of land. The proceeds from such a sale shall be used to acquire land or develop transportation facilities. (Ord. 1976 § 2, 2018).
22.10.160 Refunds.
A. A developer may request and shall receive a refund from the city for transportation impact fees when the developer does not proceed with the development activity for which impact fees were paid, and the developer shows that no impact has resulted.
B. If the city fails to expend or encumber the transportation impact fees within 10 years of the date the fees were paid, or the date established by the findings adopted under PMC 22.10.140(D), on public facilities intended to benefit the development activity for which the impact fees were paid, the city may refund the impact fees in accordance with this subsection. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. The city shall notify potential claimants by first class mail, deposited with the U.S. Postal Service at the last known address of claimants. The request for a refund must be submitted to the city in writing within one year of the date the right to claim the refund arises or the date notice is given, whichever is later. Any impact fees that are not expended within these time limitations and for which no application for refund has been made within the one-year period shall be retained and expended on transportation facilities. Refunds of impact fees under this section shall include interest earned on the impact fees.
C. In the event that transportation impact fees are refunded for any reason, they shall be refunded by the city with interest earned to the owners as they appear of record with the county assessor at the time of the refund.
D. When the city seeks to terminate any or all transportation impact fee requirements, all unexpended or unencumbered funds shall be refunded pursuant to this subsection. Upon the finding that any or all 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 in the city at least two times and shall notify all potential claimants by first class mail to the last known address of the claimants. Any request for a refund must be submitted to the city in writing within one year of the date notice of the right to claim the refund is given, and all funds available for refund shall be retained for the one-year period. At the end of one year, any remaining funds shall be retained by the city, but must be expended on projects on the adopted plans of the city. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated. (Ord. 1976 § 2, 2018).
22.10.170 Exemption or reduction for low-income housing.
A. Public housing agencies or private non-profit housing developers participating in publicly sponsored or subsidized housing programs may apply for exemptions from the transportation impact fee requirements. The director shall review proposed developments of low-income housing by such public or non-profit developers pursuant to criteria and procedures adopted by administrative rule. If the director determines that a proposed development of low-income housing satisfies the adopted criteria, such development shall be exempted from the requirement to pay the impact fee.
B. Private developers who dedicate residential units for occupancy by low-income households may apply to the director for reductions in transportation impact fees. If the director determines that the developer’s program for low-income occupancy of housing units satisfies the adopted criteria, the director shall reduce the calculated impact fee for the development so that the developer does not pay an impact fee for those units dedicated for low-income household occupancy.
C. The amount of the transportation impact fee not collected from low-income development shall be paid from public funds other than impact fee accounts. The city may not collect revenue lost through granting an exemption by increasing impact fees unrelated to the exemption.
D. The director may either grant a partial exemption of not more than 80 percent of the transportation impact fees, in which case there is no explicit requirement to pay the exempted portion of the fee from public funds other than impact fee account, or provide a full waiver, in which case the remaining percentage of the exempted fee must be paid from public funds other than impact fee account.
E. The director is hereby authorized to adopt administrative rules to implement this section. Such rules shall provide for the administration of this program and shall:
1. Encourage the construction of housing for low-income households by public housing agencies or private nonprofit housing developers participating in publicly sponsored or subsidized housing programs;
2. Encourage the construction in private developments of housing units for low-income households that are in addition to units required by another housing program or development condition;
3. Ensure that housing that qualifies as “low-income” meets appropriate standards regarding household income, rent levels or sale prices, location, number of units and development size;
4. Ensure that developers who obtain an exemption from or reduction from impact fees will in fact build the low-income housing and make it available to low-income households for a minimum of 15 years; and
5. Include a covenant (except as otherwise provided in this section) which prohibits using the property for any purpose other than low-income housing. At a minimum, the covenant must address price restrictions and household income limits for the low-income housing and that, if the property is converted to a use other than for low-income housing, the property owner must pay the applicable impact fees in effect at the time of conversion. Covenants required by this section shall be recorded with the county auditor. (Ord. 1976 § 2, 2018).
22.10.180 Appeals.
A. Decision on Impact Fee. The director shall issue a written decision on the transportation impact fee amount as described in this chapter.
B. Reconsideration by Director.
1. In order to request reconsideration of the director’s decision, the developer shall make a written request to the director for a meeting to review the fee amount, together with a written request for reconsideration. The request for reconsideration shall state in detail the grounds for the request, and shall be filed with the director within 15 days after issuance of the director’s decision on the transportation impact fee.
2. The director shall consider any studies and data submitted by the developer seeking to adjust the amount of the fee. The director shall issue a written decision on reconsideration within 10 working days of the director’s receipt of the request for reconsideration or the meeting with the developer, whichever is later.
3. A timely request for reconsideration is a prerequisite for an appeal of the director’s decision. If a request for reconsideration is not made in accordance with subsection B of this section, the director’s decision is final.
C. Appeal of Decision on Reconsideration to Hearing Examiner. A developer may appeal the amount of the transportation impact fee established in the decision on reconsideration of the director to the hearing examiner. An appeal of the decision of the director on reconsideration must be filed with the city planning department within 14 days of issuance of that decision. The hearing examiner shall conduct a public hearing on the appeal.
1. An appeal of the impact fee after reconsideration may be filed without appealing the underlying permit. This procedure is exempt from the permit processing requirements in Chapter 16.40 PMC (pursuant to RCW 36.70B.140). If the developer files an appeal of the underlying permit and the impact fee, the city may consolidate the appeals.
2. The developer shall bear the burden of proving:
a. That the director committed error in calculating the developer’s proportionate share, as determined by an individual fee calculation or, if relevant, as set forth in the impact fee schedule, or in granting credit for the benefit factors; or
b. That the director based the determination of the amount of the impact fee upon incorrect data.
D. Appeals of Hearing Examiner’s Decision. Appeals from the decision of the city’s hearing examiner shall be to superior court as provided in Chapter 36.70C RCW. (Ord. 1976 § 2, 2018).
22.10.190 Relationship to SEPA.
A. As provided in RCW 82.02.100, a person required to pay a fee pursuant to RCW 43.21C.060 for system improvements shall not be required to pay an impact fee under this chapter for the same system improvements.
B. Nothing in this chapter shall be construed to limit the city’s authority to deny development permits when a proposal would result in probable significant adverse impacts identified in an environmental impact statement and reasonable mitigation measures are insufficient to mitigate the identified impact. (Ord. 1976 § 2, 2018).
22.10.200 Transportation facility requirements in adjoining municipalities/districts.
Level of service requirements and demand standards different than those provided in the city’s comprehensive plan shall be applied to facility impacts in adjoining municipalities/districts if such different standards are provided in an interlocal agreement between the city and the affected municipality. Otherwise, the standards contained in the city’s comprehensive plan shall apply to transportation impacts in adjoining jurisdictions. (Ord. 1976 § 2, 2018).
22.10.210 Necessity of compliance.
A development permit issued after the effective date of the ordinance codified in this chapter shall be null and void if issued without substantial compliance with this chapter by the director, the department and the approving authority. (Ord. 1976 § 2, 2018).