Chapter 20.30
FEE-IN-LIEU AGREEMENTS
Sections:
20.30.010 Purpose and authority.
20.30.030 Fee-in-lieu agreements.
20.30.040 Director determination – Calculation of costs.
20.30.050 Reserve account to deposit funds – Deadline for expenditure – Refunds.
20.30.010 Purpose and authority.
This chapter provides a uniform policy for the city of Sequim to enter into voluntary agreements with developers under which the developer pays a fee to the city in lieu of meeting a specific city requirement. Chapter 82.02 RCW, as enacted and as may be amended, provides authority for such agreements, which for purposes of this chapter are referred to as “fee-in-lieu” agreements. Nothing in this chapter requires either the city or a developer to agree to enter into a fee-in-lieu agreement. (Ord. 2024-035 § 1 (Exh. A))
20.30.020 Administration.
This chapter is administered by the director of the department of public works. References to “director” herein mean the public works director. (Ord. 2024-035 § 1 (Exh. A))
20.30.030 Fee-in-lieu agreements.
A. The city may at its discretion enter into voluntary fee-in-lieu agreements with developers in accordance with RCW 82.02.020, as enacted and as may be amended.
B. Situations in which a fee-in-lieu agreement may be considered include without limitation public improvements intended to be transferred to the city, such as street frontage improvements; utility improvements; and similar off-site improvements.
C. Fee-in-lieu agreements must be approved as to form by the city attorney.
D. Fee-in-lieu agreements must be executed before issuance of a site construction permit or at such other time as determined by the director. (Ord. 2024-035 § 1 (Exh. A))
20.30.040 Director determination – Calculation of costs.
A. If the director determines that a city-required improvement cannot or should not be constructed concurrent with construction of a proposed development, the developer may pay to the city an amount equal to the developer’s cost of design and installation in lieu of construction.
B. The cost of installing the improvements will be based on engineering cost estimates to design and construct developer’s required improvements per city standards, as determined by a Washington State licensed engineer and approved by the director. The cost will be escalated by the average Engineering News-Record (ENR) index over the previous five years, and extrapolated out for a five-year period compounded, to arrive at the final amount to be paid to the city. The cost, as determined by the director, must be paid before any site development or building permit, as applicable. (Ord. 2024-035 § 1 (Exh. A))
20.30.050 Reserve account to deposit funds – Deadline for expenditure – Refunds.
A. In each instance where the city accepts a voluntary fee-in-lieu payment under the provisions of this chapter, the city will deposit those funds into a reserve account and expend the funds collected within five years of the date collected. Such funds will be used to construct the improvements that the developer would have otherwise been required to construct, as authorized and required by RCW 82.02.020.
B. If the funds are not expended within five years through no fault of the developer, the funds will be refunded to the developer with interest accrued. (Ord. 2024-035 § 1 (Exh. A))