Chapter 16.14 IMPACT MITIGATION

It is the purpose of this chapter to provide alternatives for the prospective developers of land within this city to mitigate the direct impacts that have been specifically identified by the city as a consequence of proposed development, and to make provisions for impacts including, but not limited to, impacts upon the public health, safety and general welfare, for open spaces, drainage ways, streets, alleys, other public ways, water supplies, sanitary wastes, parks, playgrounds and sites for schools and school grounds.

For purposes of this section, the term “development” shall include, but not be limited to, subdivision approval, short subdivision approval, residential planned unit development approval, binding site plan approval and the issuance of any building permit; provided, however, that a building permit issued for single-family homes on platted property shall not be considered a development as defined above. [Ord. 14-00 § 1, 2000; Ord. 12-92 § 1, 1992].

16.14.020 Determination of direct impact.

A. Before any development is given the required approval or is permitted to proceed, the official, board, or body charged with deciding whether such approval should be given shall determine all impacts, if any, that are a direct consequence of the proposed development and which require mitigation, considering, but not limited to, the following factors:

1. Predevelopment versus postdevelopment demands upon city streets, sewer, water supplies, drainage facilities, parks, playgrounds, recreational facilities, schools, police services, fire services and other municipal facilities or services;

2. Likelihood that a direct impact of a proposed development would require mitigation due to the cumulative effect of such impact when aggregated with similar impacts of future development in the immediate vicinity of the proposed development;

3. Size, number, condition and proximity of existing facilities to be affected by the proposed development;

4. Nature and quantity of capital improvements reasonably necessary to mitigate specific direct impacts identified as a consequence of the proposed development;

5. Likelihood that the users of the proposed development will benefit from any mitigating capital improvements;

6. Any significant adverse environmental impacts of the proposed development;

7. Consistency with each of the city’s comprehensive plans and subparts including, but not limited to, the city park, water, sewer and street plans as well as other technical reports of the city;

8. Whether impacts have been previously mitigated in whole or in part;

9. Likelihood of city growth by annexation into areas immediately adjacent to, or impacted by, the proposed development;

10. Appropriateness of financing necessary capital improvements by means of local improvement districts;

11. Whether the designated capital improvement furthers the public health, safety or general welfare;

12. Any other criteria useful for identifying or quantifying impacts and deemed relevant.

B. The impacts, if any, that are a direct result of the proposed development shall be specifically identified.

C. The cost of any investigations, analysis or reports necessary for a determination of direct impact shall be borne by the applicant. [Ord. 14-00 § 1, 2000; Ord. 12-92 § 1, 1992].

16.14.030 Mitigation of direct impacts.

The official, board or body charged with granting the necessary approval for a proposed development shall review an applicant’s proposal for mitigating any identified direct impacts and determine whether such proposal is an acceptable mitigation measure considering the cost and land requirements of the required improvement and the extent to which the necessity for the development is attributable to the direct impacts of the proposed development. No official, board or body shall approve a development unless provisions have been made to mitigate identified direct impacts that are consequences of such development.

The methods of mitigating identified direct impacts required as a condition of any development approval may include, but are not limited to, dedication of land to any public body and/or off-site improvements and/or on-site improvements. [Ord. 14-00 § 1, 2000; Ord. 12-92 § 1, 1992].

16.14.040 Voluntary payment agreements as alternative to dedication and improvements.

In lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development the city may approve a voluntary payment agreement with the developer; provided, however, no such agreement shall be required as any condition of approval, and any such agreement shall be subject to the following provisions:

A. The official, board or body approving the development must find that the money offered will mitigate or is a satisfactory alternative to mitigate the identified direct impact.

B. The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified direct impact.

C. The payment shall be expended in all cases within 10 years of collection, unless otherwise agreed to by the developer.

D. Any payment not so expended shall be refunded to the property owners of record at the time of the refund with interest at the rate applied to judgments at the time of the refund. However, if the payment is not expended within 10 years due to delay attributable to the developer, the payment shall be refunded without interest; provided, property owners entitled to a refund with or without interest under the provisions of this chapter may voluntarily and in writing waive their right to a refund for a specified period of time in the interests of providing the designated capital improvement or any other capital improvement identified by the property owner.

Further, at the time a developer enters into a voluntary agreement pursuant to this section, the developer may voluntarily and in writing waive, on behalf of the developer and subsequent purchasers, the right to interest and/or refund in order to facilitate completion of an improvement. Under no condition shall such waiver be required as a condition of approval. Such waiver shall be binding on subsequent owners. [Ord. 13-16 § 3, 2016; Ord. 14-00 § 1, 2000; Ord. 12-92 § 1, 1992].

16.14.050 Assessments in addition to impacts.

The requirements of this chapter to mitigate direct impacts caused by developments within the city are separate and apart from the requirement for sewer system development fees imposed by Chapter 13.09 WRMC for connection to the city sewer system and the requirement for water system development fees imposed by Chapter 13.45 WRMC, which are permit and hookup fees and a proportionate share of the utilities’ capital costs. [Ord. 14-00 § 1, 2000; Ord. 12-92 § 1, 1992].

16.14.060 Time of performance.

A. When a subdivision, short subdivision, planned unit development or other residential project is conditioned upon the dedication of land or the purchase, installation or construction of improvements to mitigate impacts, a final plat or short plat shall not be recorded and a building permit shall not be issued for the development until the mayor has determined in writing that any 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 has been recorded with the county auditor and that required improvements have been completed.

B. In the event a fee is to be paid in lieu of dedication of property or construction and installation of improvements, payment of the impact fee shall be made prior to the recording of the final plat or short plat and prior to the issuance of any building permit; provided, however, that for subdivisions or short plats or planned unit developments, the developer/owner may, with the permission of the city council, elect to postpone payment of the mitigation assessments required for each lot within the subdivision, short plat or planned unit development until issuance of a building permit for each residential unit; provided, however, that said election to postpone payment shall be noted by a covenant placed on the face of the recorded plat or short plat or planned unit development and included in the deed for each affected lot within the subdivision and thereafter the city shall not issue a building permit until such time as the fee is paid. [Ord. 14-00 § 1, 2000; Ord. 10-93 § 1, 1993].

Article II. Park Impact Fees

16.14.070 Findings and authority.

The city council finds and determines that new growth and development, new single-family residential and multifamily development, in the city will create additional demand and need for public parks, recreation facilities and open spaces in the city and finds that new growth and development should pay a proportionate share of the cost of new public parks, recreation facilities and open spaces needed to serve the new growth and development. Therefore, pursuant to Chapters 39.92 and 82.02 RCW, the city council adopts this article to assess park impact fees within the corporate limits of the city of West Richland for public parks, recreation facilities and open space. [Ord. 19-15 § 1, 2015].

16.14.080 Definitions.

The following words and terms shall have the following meanings unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual and customary meaning.

“Act” means the Growth Management Act, Chapter 36.70A RCW.

“Applicant” means the owner of real property according to the records of the Benton County assessor’s office, or the applicant’s authorized agent.

“Building permit” means the official document or certification that is issued by the building department and that authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, tenant improvement, demolition, moving or repair of a building or structure. As the term relates to park impact fees, “building permit” includes a permit issued for the siting or location of a mobile home.

“Capital facilities” means the facilities or improvements included in the capital facilities plan.

“Capital facilities plan” means the capital facilities plan element of the city’s comprehensive plan adopted pursuant to Chapter 36.70A RCW, and such plan as amended.

“Certificate of occupancy” means the term as defined in the International Building Code. In the case of a change in use or occupancy of an existing building or structure which may not require a building permit, the term shall specifically include certificate of occupancy and for residential development the final inspection, as those permits are defined or required by this code.

“City” means the city of West Richland, Washington.

“Council” means the city council of the city of West Richland.

“Department” means the community development department.

“Director” or “community development director” means the director of the community development department, or the director’s designee.

“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. Impact fees shall be considered encumbered on a first-in, first-out basis.

“Interest” means the interest rate earned by local jurisdictions in the State of Washington Local Government Investment Pool, if not otherwise defined.

“Level of service” means an established minimum capacity of public facilities or services that must be provided per unit of demand or other appropriate measure of need.

“Low-income housing” means (1) an owner-occupied housing unit affordable to households whose household income is less than 80 percent of the Benton County median income, adjusted for household size, as determined by the United States Department of Housing and Urban Development (HUD), and no more than 30 percent of the household income is paid for housing expenses, or (2) a renter-occupied housing unit affordable to households whose income is less than 60 percent of the Benton County median income, adjusted for household size, as determined by HUD, and no more than 30 percent of the household income is paid for housing expenses (rent and an appropriate utility allowance). In the event that HUD no longer publishes median income figures for Benton County, the city may use or determine such other method as it may choose to determine the Benton County median income, adjusted for household size. The community development director will make a determination of sales prices or rents which meet the affordability requirements of this section. An applicant for a low-income housing exemption may be a public housing agency, a private nonprofit housing developer or a private developer.

“Owner” means the owner of real property according to the records of the Benton County assessor’s office; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the real property.

“Park impact fee” means a monetary charge imposed on new development for the purpose of mitigating off-site park system impacts that are a direct result of the proposed development.

“Residential” means housing, such as single-family dwellings, accessory dwelling units, apartments, condominiums, mobile homes and/or manufactured homes, intended for occupancy by one or more persons and not offering other services.

“Services areas” means the area(s) where the city shall calculate and impose impact fees for various land use categories per unit of development. [Ord. 19-15 § 1, 2015].

16.14.090 Timing of park impact fee payment.

A. The city shall collect park impact fees, based on the city’s master fee schedule, from any applicant seeking a building permit from the city.

B. Park impact fees shall be collected from the applicant prior to issuance of the building permit unless the use of an independent fee calculation has been approved or unless the applicant applies for deferred payment of park impact fees pursuant to WRMC 16.14.095. The park impact fee shall be calculated based on the city’s master fee schedule in effect at the time the building permit is issued unless otherwise required pursuant to WRMC 16.14.095.

C. The city shall not issue the required building permit unless and until the park impact fee set forth in the city’s master fee schedule has been paid. [Ord. 13-16 § 4, 2016; Ord. 19-15 § 1, 2015].

16.14.095 Option for deferred payment of park impact fee.

An applicant may request, at any time prior to building permit issuance, and consistent with the requirements of this section, to defer to final inspection the payment of park impact fee for a residential development unit, multifamily development, or any other type of residential development. The following shall apply to any request to defer payment of park impact fee:

A. The applicant shall submit to the city a written request to defer the payment of park impact fee for a specifically identified building permit. The applicant’s request shall identify, as applicable, the applicant’s corporate identity and contractor registration number, the full names of all legal owners of the property upon which the development activity allowed by the building permit is to occur, the legal description of the property upon which the development activity allowed by the building permit is to occur, the tax parcel identification number of the property upon which the development activity allowed by the building permit is to occur, and the address of the property upon which the development activity allowed by the building permit is to occur. All applications shall be accompanied by a nonrefundable administrative fee as set forth by the city council in the master fee schedule.

B. The park impact fee amount due under any request to defer payment of said impact fee shall be based on the schedule in effect at the time the applicant provides the city with the information required in subsection A of this section.

C. Prior to the issuance of a building permit that is the subject of a request for a deferred payment of park impact fee, all applicants and/or legal owners of the property upon which the development activity allowed by the building permit is to occur must sign a deferred impact fee payment lien in a form acceptable to the city attorney. The deferred impact fee payment lien shall be recorded against the property subject to the building permit and be granted in favor of the city in the amount of the deferred park impact fee. Any such lien shall be junior and subordinate only to one mortgage for the purpose of construction upon the same real property subject to the building permit. The applicant must record the deferred impact fee payment lien with the Benton County auditor’s office and is responsible for any fees associated with the recording of the lien and for complying with the requirements of the Benton County auditor’s office.

D. The city shall not conduct a final inspection and/or issue temporary certificates of occupancy until the park impact fee identified in the deferred impact fee payment lien is paid in full.

E. In no case shall payment of the park impact fee be deferred for a period of more than 18 months from the date of building permit issuance.

F. Upon receipt of final payment of the deferred impact fee as identified in the deferred impact fee payment lien, the city shall execute a release of lien for the property. The property owner may, at his or her own expense, record the lien release with the Benton County auditor’s office.

G. In the event that the deferred impact fee is not paid within the time provided in this section, the city shall institute foreclosure proceedings under the process set forth in Chapter 61.12 RCW. [Ord. 13-16 § 1, 2016].

16.14.100 Assessment of park impact fees.

The city establishes a single service area, which is all the incorporated land within the city.

The city shall collect park impact fees, based on the following schedule, not including adjustment made based on the increases made from the consumer price index annual adjustments, see WRMC 16.14.105. The current impact fee based on the year will be found in the master fee schedule.

A. Single-family residential development including duplexes and accessory dwelling units shall be set forth by the city council in the master fee schedule.

B. Multifamily residential developments including but not limited to apartments, condominiums, and townhouses shall be set forth by the city council in the master fee schedule, based on the developer meeting the requirements of WRMC 17.54.190. [Ord. 27-15 § 3, 2015; Ord. 19-15 § 1, 2015].

16.14.105 Automatic park impact fee adjustment.

Beginning on January 1, 2017, and each successive January 1st thereafter, the park impact fee shall automatically be adjusted to account for any increase in the consumer price index (CPI) as established by the U.S. Department of Commerce for the Seattle Metropolitan Area. The 12-month period utilized to establish the fee schedule adjustment will be as established by the U.S. Department of Commerce for the Seattle CPI. Adjustment to the park impact fee schedule may be rounded to the nearest $5.00 increment. This section shall not preclude the city from modifying the park impact fee schedule where the city council finds it necessary to do so. [Ord. 19-15 § 1, 2015].

16.14.110 Exemptions.

The following building permit applications shall be exempt from the park impact fees adopted by this article:

A. Replacement of a structure with a new structure of the same use at the same site or lot when such replacement occurs within 12 consecutive months of the demolition or destruction of the prior structure.

B. Replacement, alteration, expansion, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional dwelling units are created and the use is not changed.

C. Miscellaneous improvements, including but not limited to fences, walls, swimming pools, mechanical units, and signs.

D. Construction of Low-Income Housing. Any claim for an exemption must be made before issuance of a building permit. Any claim not so made shall be deemed waived. The claim for exemption must be accompanied by a draft lien and covenant against the property guaranteeing that the low-income housing will continue. Before approval of the exemption, the city shall approve the form of the lien and covenant. Within 10 days of approval, the applicant shall execute and record the approved lien and covenant with the Benton County department of records and elections. The lien and covenant shall run with the land. In the event that the housing unit is no longer used for low-income housing, the current owner shall pay the current park impact fee.

E. Construction of Senior Retirement Housing Center. Any claim for an exemption must be made before issuance of a building permit. Any claim not so made shall be deemed waived. The claim for exemption must be accompanied by a draft lien and covenant against the property guaranteeing that the senior retirement housing will continue. Before approval of the exemption, the city shall approve the form of the lien and covenant. Within 10 days of approval, the applicant shall execute and record the approved lien and covenant with the Benton County department of records and elections. The lien and covenant shall run with the land. In the event that the housing unit is no longer used for senior retirement housing, the current owner shall pay the current park impact fee. [Ord. 19-15 § 1, 2015].

16.14.120 Credits.

A. An applicant may request a credit or credits for the value of dedicated land and/or improvements to the city’s public parks, recreation facilities or open spaces that are included within the city’s general park plan or park and recreation element of the capital facilities plan if the public works director makes the finding that such land dedication, recreation facility and/or improvements to the city’s public parks, recreation facilities or open spaces would serve the goals and objectives of the city’s general park plan or park and recreation element of the capital facilities plan.

B. Each request for a credit or credits shall include a legal description of land dedicated, a detailed description of improvements, and a legal description or other adequate description of the development to which the credit will be applied.

C. The value of the credit or credits shall be determined by the public works director and be based on the estimated cost of the improvements, or, in the case of dedicated land, the land value assessment shall be prepared by a state-certified real estate appraiser who has an MAI or SRA designation from the Appraisal Institute, establishing the fair market value of the dedicated land. The applicant shall pay the cost of the appraisal.

D. After the public works director has determined the amount of the credit, the director shall draft a park impact fee mitigation agreement which includes a statement setting forth the dollar amount of the credit, the basis for the credit, where applicable, the description of the land dedicated or improvements made to which the credit is applied and the date of the determination for review by the park board and formal approval by the city council.

E. Any claim for credit must be made prior to the dedication of land or construction of improvements to the city’s park system and prior to final plat or issuance of a certificate of occupancy. Any claim not so made shall be deemed waived. [Ord. 29-15 § 1, 2015; Ord. 19-15 § 1, 2015].

16.14.130 Park fund.

A. Park impact fees collected pursuant to this article shall be earmarked specifically and deposited in the special interest-bearing account per Chapter 3.54 WRMC, Park Fund, and shall be prudently invested in a manner consistent with the investment policies of the city. Funds withdrawn from this account shall be used in accordance with the provisions of Chapter 3.54 WRMC, Park Fund. Interest earned on park impact fees shall be retained in the account and expended for the purpose for which the park impact fees were collected.

B. On an annual basis, the finance director shall provide a report to the city council on the park fund showing the source and amount of all moneys collected, earned, or received, and system improvements and/or land acquisitions that were financed in whole or in part by park impact fees.

C. Park impact fees shall be expended or encumbered within 10 years of receipt. [Ord. 19-15 § 1, 2015].

16.14.140 Refunds.

A. If the city fails to expend or encumber the park impact fees within 10 years of collection, the current owner of the property for which park impact fees have been paid shall receive a refund of said fee. In determining whether park impact fees have been expended or encumbered, park impact fees shall be considered expended or encumbered on a first-in, first-out basis.

B. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants.

C. Property owners seeking a refund of park impact fees must submit a written request for a refund of the fees to the city clerk within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

D. Any park impact fees for which no application for a refund has been made within the one-year period shall be retained by the city and deposited into the city’s general fund.

E. Refunds of park impact fees under this article shall include any interest earned on the park impact fees by the city.

F. If the city terminates the park impact fee program, all unexpended or unencumbered funds, including interest earned, shall be refunded pursuant to this article. The city shall publish notice of the termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail to the last known address of the claimants. All funds available for refund shall be retained for a period of one year after the date of the second publication. At the end of one year, any remaining funds shall be retained by the city and deposited into the city’s general fund. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the fund. [Ord. 19-15 § 1, 2015].

16.14.150 Use of funds.

The use of park impact fees shall be per WRMC 3.54.030. [Ord. 19-15 § 1, 2015].

16.14.160 Existing authority unimpaired.

Nothing in this article shall preclude the city from requiring the applicant for a final plat, short plat, building permit, or certificate of occupancy, if no building permit is required, to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with the provisions of RCW 82.02.050(1)(c). [Ord. 19-15 § 1, 2015].

Article III. Transportation Impact Fees*

*Code reviser’s note: The Appendix A referred to in this article, initially established by Ordinance 2-10, is amended annually by CPI.

16.14.170 Findings and authority.

The city council finds and determines that new growth and development, including but not limited to new residential, commercial, retail, office, industrial and institutional development, in the city will create additional demand and need for public transportation facilities in the city and finds that new growth and development should pay a proportionate share of the cost of new public transportation facilities needed to maintain the current level of service and to serve the new growth and development. The city has conducted an extensive transportation study documenting the procedures for measuring the impact of new developments on public transportation facilities and has prepared a rate study report titled “City of West Richland Transportation Impact Fee Update,” dated March 5, 2004. The city council accepts the methodology and data contained in said rate study report. Therefore, pursuant to Chapters 39.92 and 82.02 RCW, the city council adopts the ordinance codified in this article to assess impact fees within the corporate limits of the city of West Richland for public transportation facilities. [Ord. 2-10 § 1, 2010].

16.14.180 Definitions.

“Act” means the Growth Management Act, Chapter 36.70A RCW.

“Applicant” means the owner of real property according to the records of the Benton County assessor’s office, or the applicant’s authorized agent.

“Capital facilities” means the facilities or improvements included in the capital facilities plan.

“Capital facilities plan” means the capital facilities plan element of the city’s comprehensive plan adopted pursuant to Chapter 36.70A RCW, and such plan as amended.

“Certificate of occupancy” means the term as defined in the International Building Code. In the case of a change in use or occupancy of an existing building or structure which may not require a building permit, the term shall specifically include the certificate of occupancy and for residential development the final inspection, as those permits are defined or required by this code.

“City” means the city of West Richland, Washington.

“City attorney” means the person who exercises the authority of WRMC 16.14.300, Appeals.

“Council” means the city council of the city of West Richland.

“Department” means the public works department.

“Director” or “public works director” means the director of the public works department, or the director’s designee.

“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.

“Gross floor area” is the total square footage of all floors in a structure.

“Independent fee calculation” means the study or data submitted by an applicant to support the assessment of an impact fee other than the fee in the schedule attached as Appendix A to the ordinance codified in this article.

“Interest” means the interest rate earned by local jurisdictions in the State of Washington Local Government Investment Pool, if not otherwise defined.

“Interlocal agreement” or “agreement” means a roads interlocal agreement, authorized in this article, by and between the city and other government agencies concerning the collection and expenditure of impact fees, or any other interlocal agreement entered by and between the city and another municipality, public agency or governmental body to implement the provisions of this article.

“Low-income housing” means (A) an owner-occupied housing unit affordable to households whose household income is less than 80 percent of the Benton County median income, adjusted for household size, as determined by the United States Department of Housing and Urban Development (HUD), and no more than 30 percent of the household income is paid for housing expenses, or (B) a renter-occupied housing unit affordable to households whose income is less than 60 percent of the Benton County median income, adjusted for household size, as determined by HUD, and no more than 30 percent of the household income is paid for housing expenses (rent and an appropriate utility allowance). In the event that HUD no longer publishes median income figures for Benton County, the city may use or determine such other method as it may choose to determine the Benton County median income, adjusted for household size. The public works director will make a determination of sales prices or rents which meet the affordability requirements of this section. An applicant for a low-income housing exemption may be a public housing agency, a private nonprofit housing developer or a private developer.

“Plan area” means the corporate limits of the city of West Richland including any future annexations.

“Prior use” means the use with the highest impact fee per unit since January 20, 2004, based on the schedule in Appendix A.

“Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development or users of a project, and are not system improvements. No improvement or facility included in the capital facilities plan shall be considered a project improvement.

“Public transportation facilities” means the transportation system including public streets, traffic signals, bridges and roads of the city or other governmental entities.

“Rate study” means the City of West Richland “Transportation Impact Fee Update” Study, completed by HDR, Inc., dated March 4, 2004.

“Road” means a right-of-way which affords the principal means of access to abutting property, including avenue, place, way, drive, lane, boulevard, highway, street, and other thoroughfare, except an alley.

“Square footage” means the square footage of the gross floor area of the development (building).

“System improvements” means public facilities included in the capital facilities plan and designed to provide service to service areas within the community at large, in contrast to project-specific improvements.

“Transportation impact fee” means a monetary charge imposed on new development for the purpose of mitigating off-site transportation impacts that are a direct result of the proposed development.

“Transportation impact fee fund” or “account” means the fund established for the transportation system improvement for which impact fees are collected. The fund shall be established pursuant to this article, and shall comply with the requirements of RCW 82.02.070. [Ord. 9-11 § 1, 2011; Ord. 2-10 § 2, 2010].

16.14.190 Timing of transportation impact fee payment.

A. The city shall collect transportation impact fees, based on the city’s master fee schedule, from any applicant seeking a building permit from the city.

B. Transportation impact fees shall be collected from the applicant prior to issuance of the building permit unless the use of an independent fee calculation has been approved or unless the applicant applies for deferred payment of transportation impact fees pursuant to WRMC 16.14.195. The transportation impact fee shall be calculated based on the city’s master fee schedule in effect at the time the building permit is issued unless otherwise required pursuant to WRMC 16.14.195.

C. The city shall not issue the required building permit unless and until the transportation impact fee set forth in the city’s master fee schedule has been paid. [Ord. 13-16 § 5, 2016; Ord. 2-10 § 3, 2010].

16.14.195 Option for deferred payment of transportation impact fee.

An applicant may request, at any time prior to building permit issuance, and consistent with the requirements of this section, to defer to final inspection the payment of transportation impact fee for a residential development unit, multifamily development, commercial development, industrial or any other type of development. The following shall apply to any request to defer payment of transportation impact fee:

A. The applicant shall submit to the city a written request to defer the payment of transportation impact fee for a specifically identified building permit. The applicant’s request shall identify, as applicable, the applicant’s corporate identity and contractor registration number, the full names of all legal owners of the property upon which the development activity allowed by the building permit is to occur, the legal description of the property upon which the development activity allowed by the building permit is to occur, the tax parcel identification number of the property upon which the development activity allowed by the building permit is to occur, and the address of the property upon which the development activity allowed by the building permit is to occur. All applications shall be accompanied by a nonrefundable administrative fee as set forth by the city council in the master fee schedule.

B. The transportation impact fee amount due under any request to defer payment of said impact fee shall be based on the schedule in effect at the time the applicant provides the city with the information required in subsection A of this section.

C. Prior to the issuance of a building permit that is the subject of a request for a deferred payment of transportation impact fee, all applicants and/or legal owners of the property upon which the development activity allowed by the building permit is to occur must sign a deferred impact fee payment lien in a form acceptable to the city attorney. The deferred impact fee payment lien shall be recorded against the property subject to the building permit and be granted in favor of the city in the amount of the deferred transportation impact fee. Any such lien shall be junior and subordinate only to one mortgage for the purpose of construction upon the same real property subject to the building permit. The applicant must record the deferred impact fee payment lien with the Benton County auditor’s office and is responsible for any fees associated with the recording of the lien and for complying with the requirements of the Benton County auditor’s office.

D. The city shall not conduct a final inspection and/or issue temporary certificates of occupancy until the transportation impact fee identified in the deferred impact fee payment lien is paid in full.

E. In no case shall payment of the transportation impact fee be deferred for a period of more than 18 months from the date of building permit issuance.

16.14.200 Assessment of transportation impact fees.

The city shall collect transportation impact fees based on the following:

A. The city shall collect transportation impact fees, based on the schedule in Appendix A, from any applicant seeking a final plat approval, building permit from the city, or certificate of occupancy permit if a building permit is not required.

B. Transportation impact fees shall be collected from the applicant per WRMC 16.14.190, Timing of transportation impact fee payment, using the transportation impact fee schedule then in effect or pursuant to an independent fee calculation accepted by the public works director per WRMC 16.14.210, Independent transportation impact fee calculations.

C. The public works director shall establish the transportation impact fee rate for a land use that is not listed on the rate schedule in Appendix A. The applicant shall submit all information requested by the public works director for purposes of determining the transportation impact fee rate pursuant to WRMC 16.14.210, Independent transportation impact fee calculations. The adopted cost per peak-hour p.m. trip in Appendix A shall be the basis for establishing the transportation impact fee rate.

D. For a change in use of an existing building or dwelling unit, or portion thereof, the transportation impact fee shall be the applicable transportation impact fee for the land use category of the new use, less the transportation impact fee for the land use category of the prior use. For any change in use that includes an alteration, expansion, replacement or new accessory building, the transportation impact fee shall be the applicable transportation impact fee for the land use category of the new gross floor area (or, if applicable, gross leasable area), less the transportation impact fee for the land use category of the prior gross floor area (or, if applicable, gross leasable area).

E. For mixed use buildings or developments, transportation impact fees shall be imposed for the proportionate share of each land use based on the applicable unit of measurement found on the schedule in Appendix A, less any internal trips captured among the uses as demonstrated by an engineering study prepared by a Washington State-licensed traffic engineer approved by the public works director.

F. For existing or new mixed use buildings or developments, the transportation impact fee for any building permit, or certificate of occupancy if a building permit is not required, shall be determined by multi-tenant averaging, if the owner has entered into a multi-tenant averaging agreement with the city. The public works director is authorized to prepare and execute the agreement. For purposes of this subsection, “multi-tenant averaging” shall be determined as follows:

1. Concurrent with execution of the agreement, determine the total transportation impact fee for all land use categories, based on the schedule in Appendix A (“total transportation impact fee”).

2. For a proposed change of use, determine the total transportation impact fee for the continuing and new uses, based on the schedule in Appendix A (“new total transportation impact fee”).

3. If the new total transportation impact fee is greater than the total transportation impact fee, then a transportation impact fee is due and owing for the difference between the two transportation impact fees. If the opposite is true, no transportation impact fee is due and owing.

4. When a transportation impact fee is due and owing due to a change in use, the amount of the total transportation impact fee of record shall be increased to the amount of the new total transportation impact fee for purposes of determining future transportation impact fees based on a future change of use.

G. The building division of the community development/planning department shall not issue a certificate of occupancy until the transportation impact fee has been paid. [Ord. 2-10 § 4, 2010].

16.14.210 Independent transportation impact fee calculations.

A. If an applicant requests not to have the transportation impact fees determined according to the schedule in Appendix A or believes none of the transportation impact fee categories or transportation impact fee amounts set forth in the schedule in Appendix A accurately describes the transportation impacts resulting from issuance of the proposed building permit, or if no building permit is required at certificate of occupancy, then the applicant shall submit to the public works director an independent transportation impact fee calculation, prepared by a Washington State-licensed traffic engineer approved by the public works director and paid for by the applicant, for the building permit, or if no building permit is required at certificate of occupancy. The independent transportation impact fee calculation shall show the basis upon which it was made and shall include, but not be limited to, trip generation characteristics. With the request, the applicant shall pay to the city an administrative processing and review fee of $1,000.

B. While there is a presumption that the calculations set forth in the rate study are correct, the public works director shall consider the documentation submitted by the applicant, but is not required to accept such documentation which the public works director reasonably deems to be inaccurate or not reliable, and may, in the alternative, require the applicant to submit additional or different documentation. The public works director is authorized to adjust the transportation impact fee on a case-by-case basis based on the independent transportation impact fee calculation, the specific characteristics of the building permit, or certificate of occupancy permit if no building permit is required, and/or principles of fairness.

C. Determinations made by the public works director pursuant to this section may be appealed to the city council subject to the procedures set forth in WRMC 16.14.300, Appeals. [Ord. 2-10 § 5, 2010].

16.14.220 Exemptions.

The following building permit applications shall be exempt from the transportation impact fees adopted by this article:

B. Replacement, alteration, expansion, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional dwelling units are created and the use is not changed.

C. Alteration of an existing nonresidential structure that does not expand the usable space or change the use.

D. Miscellaneous improvements, including but not limited to fences, walls, swimming pools, mechanical units, and signs.

E. Construction of Low-Income Housing. Any claim for an exemption must be made before issuance of a building permit. Any claim not so made shall be deemed waived. The claim for exemption must be accompanied by a draft lien and covenant against the property guaranteeing that the low-income housing will continue. Before approval of the exemption, the city shall approve the form of the lien and covenant. Within 10 days of approval, the applicant shall execute and record the approved lien and covenant with the Benton County department of records and elections. The lien and covenant shall run with the land. In the event that the housing unit is no longer used for low-income housing, the current owner shall pay the current transportation impact fee.

F. Construction of Senior Retirement Housing Center. Any claim for an exemption must be made before issuance of a building permit. Any claim not so made shall be deemed waived. The claim for exemption must be accompanied by a draft lien and covenant against the property guaranteeing that the senior retirement housing will continue. Before approval of the exemption, the city shall approve the form of the lien and covenant. Within 10 days of approval, the applicant shall execute and record the approved lien and covenant with the Benton County department of records and elections. The lien and covenant shall run with the land. In the event that the housing unit is no longer used for senior retirement housing, the current owner shall pay the current transportation impact fee.

G. The public works director shall be authorized to determine whether a particular development for a proposed building permit, or certificate of occupancy if no building permit is required, falls within an exemption of this article. Determinations of the public works director shall be subject to the appeals procedures set forth in WRMC 16.14.300, Appeals. [Ord. 2-10 § 6, 2010].

16.14.230 Credits.

A. An applicant may request a credit(s) for the value of dedicated land, participation in public transportation improvements and services, local improvement districts, improvements, or construction if the land and/or the facility constructed are included within the city’s six-year transportation improvement plan, transportation element of the city comprehensive plan or six-year capital facilities plan or the public works director makes the finding that such land and/or facility would serve the goals and objectives of the six-year transportation improvement plan, transportation element of the city comprehensive plan or six-year capital facilities plan.

B. Each request for a credit(s) shall include a legal description of land donated, a detailed description of improvements or construction provided, and a legal description or other adequate description of the development to which the credit will be applied.

C. The value of the credit(s) shall be determined by the public works director and be based on the estimated project cost (including dedicated land) used to calculate the transportation impact fee and included in the rate study accepted by the city. In the event that the applicant disagrees with the project estimate, the applicant may submit documentation for the public works director’s consideration. Land value assessment shall be prepared by a state-certified real estate appraiser who has an MAI or SRA designation from the appraisal institute, establishing the fair market value of the dedicated land, improvements, or construction. The applicant shall pay the cost of the appraisal.

D. The public works director’s determination of transportation impact fee credit shall be confirmed by resolution by the city council. The department shall include the determination with the final plat, the issuance of the building permit, or occupancy permit if no building permit is required, a statement setting forth the dollar amount of the credit, the basis for the credit, where applicable, the description of the land donated to which the credit is applied and the date of the determination.

E. Any claim for credit must be made before payment of the transportation impact fee and prior to final plat, issuance of the building permit, or certificate of occupancy if no building permit is required. Any claim not so made shall be deemed waived.

F. No credit shall be given for project improvements or right-of-way dedications for direct access improvements to and/or within the subject development.

G. Determinations made by the public works director pursuant to this chapter shall be subject to the appeals procedures set forth in WRMC 16.14.300, Appeals. [Ord. 2-10 § 7, 2010].

16.14.240 Establishment of transportation impact fee fund.

A. A transportation impact fee fund is established for the fees collected pursuant to this article and shall be entitled the transportation improvement program fund. Transportation impact fees shall be earmarked specifically and deposited in the special interest-bearing account and shall be prudently invested in a manner consistent with the investment policies of the city. Funds withdrawn from this account shall be used in accordance with the provisions of WRMC 16.14.280, Use of funds. Interest earned on transportation impact fees shall be retained in the account and expended for the purpose for which the transportation impact fees were collected.

B. On an annual basis, the finance director shall provide a report to the city council on the fund showing the source and amount of all moneys collected, earned, or received, and system improvements and/or land acquisitions that were financed in whole or in part by transportation impact fees.

C. Transportation impact fees shall be expended or encumbered within 10 years of receipt. [Ord. 13-16 § 6, 2016; Ord. 2-10 § 8, 2010].

16.14.250 Adjustments.

Pursuant to and consistent with the requirements of RCW 82.02.060, the rate study has provided adjustments for past and future taxes paid or to be paid by the new development which are earmarked or proratable to the same new system improvements that will serve the new development. The schedule in Appendix A has been reasonably adjusted for taxes and other revenue sources that are anticipated to be available to fund transportation system improvements. [Ord. 2-10 § 9, 2010].

16.14.260 Authorization for interlocal agreements.

The city council is authorized to execute, on behalf of the city, an interlocal agreement with other state and local governments for the collection, expenditure, and reporting of transportation impact fees. [Ord. 2-10 § 10, 2010].

16.14.270 Refunds.

A. If the city fails to expend or encumber the transportation impact fees within 10 years of collection, the current owner of the property for which transportation impact fees have been paid shall receive a refund of said fees. In determining whether transportation impact fees have been expended or encumbered, transportation impact fees shall be considered expended or encumbered on a first in, first out basis.

B. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants.

C. Property owners seeking a refund of transportation impact fees must submit a written request for a refund of the fees to the city clerk within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

D. Any transportation impact fees for which no application for a refund has been made within the one-year period shall be retained by the city in the transportation impact fee fund and utilized as provided in WRMC 16.14.280.

E. Refunds of transportation impact fees under this article shall include any interest earned on the transportation impact fees by the city.

F. If the city terminates the transportation impact fee program, all unexpended or unencumbered funds, including interest earned, shall be refunded pursuant to this article. The city shall publish notice of the termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail to the last known address of the claimants. All funds available for refund shall be retained for a period of one year after the date of the second publication. At the end of one year, any remaining funds shall be retained in the transportation impact fee fund and utilized as provided in WRMC 16.14.280. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the fund. [Ord. 13-16 § 7, 2016; Ord. 2-10 § 11, 2010].

16.14.280 Use of funds.

A. Transportation impact fees may be spent for system improvements, including but not limited to transportation planning, engineering design studies, land surveys, right-of-way acquisition, engineering, permitting, financing, administrative expenses, construction of new and reconstruction of existing streets, roads, bridges and related facilities such as curbs, gutters, sidewalks, bike lanes, storm drainage and installation of traffic signals, signs and street lights.

B. Transportation impact fees may be used to recoup cost for system improvement previously incurred by the city to the extent that new growth and development will be served by the previously constructed system improvements.

C. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of system improvements, transportation impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that system improvements provided are consistent with the requirements of this chapter and are used to serve the new development. [Ord. 2-10 § 12, 2010].

16.14.290 Automatic transportation impact fee adjustment.

Beginning on January 1, 2012, and each successive January 1st thereafter, the transportation impact fee schedule in Appendix A adopted as part of the ordinance codified in this article shall automatically be adjusted to account for any increase in the consumer price index (CPI) as established by the U.S. Department of Commerce for the Seattle Metropolitan Area. The 12-month period utilized to establish the fee schedule adjustment will be as established by the U.S. Department of Commerce for the Seattle CPI. Adjustment to the transportation impact fee schedule in Appendix A may be rounded to the nearest $5.00 increment. This section shall not preclude the city from modifying the transportation impact fee schedule in Appendix A, where the city council finds it necessary to do so. [Ord. 2-10 § 13, 2010].

16.14.300 Appeals.

A. An appeal of the transportation impact fee imposed on a building permit, or certificate of occupancy if no building permit is required, may only be filed by the applicant of the subject property. An applicant may either file an appeal and pay the transportation impact fee imposed by this chapter under protest, or appeal the transportation impact fee before issuance of the building permit or certificate of occupancy if no building permit is required. No appeal may be filed after the transportation impact fee has been paid without protest and the building permit or certificate of occupancy has been issued.

B. An appeal shall be filed with the city clerk on the following determinations of the public works director:

1. The applicability of the transportation impact fees to a given building permit or certificate of occupancy found in WRMC 16.14.200, Assessment of transportation impact fees, and WRMC 16.14.220, Exemptions;

2. The decision on an independent fee calculation in WRMC 16.14.210, Independent transportation impact fee calculations;

3. The availability or value of a credit in WRMC 16.14.230, Credits; or

4. Any other determination which the public works director is authorized to make pursuant to this article.

C. An appeal, in the form of a letter of appeal, along with the required appeal administrative fee of $1,000, shall be filed with the city clerk for all determinations by the public works director, prior to issuance of a building permit, or certificate of occupancy if no building permit is required.

The letter must contain the following:

1. A basis for and arguments supporting the appeal; and

2. Technical information and specific data supporting the appeal.

D. Within 30 days of the filing of the appeal, the public works director shall submit to the city clerk the following:

1. The public works director’s determination along with the record of the transportation impact fee determination and, if applicable, the independent fee calculation; and

2. A memorandum from the public works director summarizing the appeal.

E. Within 30 days of the filing of the appeal, the city attorney shall submit to the city clerk the following:

1. The city attorney’s findings of fact and conclusions of law regarding the public works director’s decision.

2. In the event the city attorney determines that there is a flaw in the transportation impact fee program, that a specific exemption or credit should be awarded on a consistent basis, or that the principles of fairness require amendments to this article, the city attorney may advise the council as to any question or questions that the city attorney believes should be reviewed as part of the council’s review of the fee schedule in Appendix A.

F. Within 90 days of the filing of the appeal, the city council shall review the appeal from the applicant, the public works director’s information per subsection D of this section and the city attorney’s information per subsection E of this section. No oral testimony shall be given, although legal arguments may be made. The determination of the public works director shall be accorded substantial weight. The city council may, so long as such action is in conformance with the provisions of this article, reverse or affirm, in whole or in part, or modify the determination of the public works director, and may make such order, requirements, decision or determination as ought to be made, and to that end shall have the powers which have been granted to the public works director by this article. The city council’s decision shall be final.

G. The city clerk shall distribute a copy of the city council decision to the appellant within 10 working days of the decision. [Ord. 2-10 § 14, 2010].

16.14.310 Existing authority unimpaired.

Nothing in this article shall preclude the city from requiring the applicant for a building permit, or certificate of occupancy if no building permit is required, to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with the provisions of RCW 82.02.050(1)(c). [Ord. 2-10 § 15, 2010].