Chapter 19.04
TRANSPORTATION IMPACT FEES1
Sections:
19.04.010 Findings and authority.
19.04.020 Definitions.
19.04.030 Reserved.
19.04.040 Assessment of impact fees.
19.04.050 Independent fee calculations.
19.04.060 Credits and adjustments.
19.04.070 Exemptions.
19.04.080 Appeals.
19.04.090 Establishment of an impact fee account for transportation.
19.04.100 Refunds.
19.04.110 Use of funds.
19.04.120 Review and update of impact fees.
19.04.130 Miscellaneous provisions.
19.04.010 Findings and authority.
The council of the city of Auburn (the “council”) hereby finds and determines that new growth and development, including but not limited to new residential, commercial, retail, office, and industrial development, in the city of Auburn will create additional demand and need for transportation facilities in the city of Auburn, and the council finds that new growth and development should pay a proportionate share of the cost of transportation facilities needed to serve the new growth and development. The city of Auburn has conducted extensive studies documenting the procedures for measuring the impact of new developments on transportation facilities. These studies have contributed to the rates as established in the fee schedule of the city of Auburn. Therefore, pursuant to Chapter 82.02 RCW, the council adopts this chapter to assess impact fees for transportation facilities. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the transportation impact fee program. (Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.020 Definitions.
The following words and terms shall have the following meanings for the purposes of this chapter, 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.
A. “Act” means the Growth Management Act, Chapter 36.70A RCW, as now in existence or as hereafter amended.
B. “Building permit,” for the purposes of this chapter only, means an official document or certification which is issued by the city and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure. In the case of increased impacts on transportation facilities caused by a change in use or occupancy of an existing building or structure, and where no building permit is required, the term “building permit” shall specifically include business registrations.
C. “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.
D. “City” means the city of Auburn.
E. “Council” means the city council of the city of Auburn.
F. “Department” means the department of public works.
G. “Development activity” means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any change in the use of land that creates additional demand and need for transportation facilities.
H. “Director” means the director of the department of public works or the director’s designee.
I. “Downtown plan area” means the study area as identified and adopted in the City of Auburn Downtown Plan dated May 2001 that is defined by the boundary of the Union Pacific Railroad on the west and State Route 18 on the south. The eastern boundary is defined as “F” Street SE from State Route 18 to East Main Street, East Main Street from “F” Street SE to “E” Street SE, and “E” Street NE from East Main Street to 4th Street NE. The northern boundary is defined as 2nd Street NW from the Interurban Trail to “D” Street NW, 3rd Street NW/NE from “D” Street NW to Auburn Avenue, and 4th Street NE from Auburn Avenue to “E” Street NE. For the purposes of this chapter, the downtown plan area boundary has been slightly modified to avoid bisecting properties.
J. “Dwelling unit” means a building, or portion thereof, designed for residential occupancy, consisting of one or more rooms which are arranged, designed or used as living quarters for one family only.
K. “Encumber” 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.
L. “Feepayer” is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity, commencing a land development activity or land use change which creates the demand for additional transportation facilities, and which requires the issuance of a building permit. “Feepayer” includes an applicant for an impact fee credit.
M. “Gross floor area (GFA)” means the total square footage of any building, structure, or use, including accessory uses.
N. “Gross leasable area (GLA)” means the total floor area designed for tenant occupancy and exclusive use. For the purposes of the trip generation calculation, the floor area of any parking garages within the building shall not be included within the GLA of the entire building. GLA is the area for which tenants pay rent; it is the area that produces income.
O. “Hearing examiner” means the examiner who acts on behalf of the council in considering and applying land use regulatory codes as provided under Chapter 18.66 ACC. Where appropriate, “hearing examiner” also refers to the office of the hearing examiner.
P. “Impact fee” means a payment of money imposed by the city of Auburn on development activity pursuant to this chapter as a condition of granting development approval in order to pay for the transportation facilities needed to serve new growth and development.
Q. “Impact fee account” or “account” means the account established for the transportation impact fees collected. The account shall be established pursuant to ACC 19.04.090, and comply with the requirements of RCW 82.02.070.
R. “Independent fee calculation” means the transportation impact calculation prepared by a feepayer to support the assessment of an impact fee other than by the use of the attached schedules.
S. “Interest” means the interest rate earned by local jurisdictions in the State of Washington Local Government Investment Pool, if not otherwise defined.
T. “Multiple-family dwelling” means a building designed exclusively for occupancy by three or more families living independently of each other, and containing three or more dwelling units.
U. “Owner” means the owner of record of real property; 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.
V. “PM peak hour” means the hour of the highest transportation demand for the entire Auburn transportation system which, between noon and midnight, typically occurs between the hours of 4:00 p.m. and 6:00 p.m.
W. “Single-family dwelling” means a detached building designed exclusively for occupancy by one family and containing one dwelling unit. A manufactured home may be considered a one-family dwelling, if sited per ACC 18.48.050.
X. “Square footage” means the square footage of the gross floor area or gross floor leasable area of the development.
Y. “State” means the state of Washington.
Z. “Transportation project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development or users of the project, and are not transportation system improvements. No transportation improvement or facility included in a capital facilities plan approved by the council shall be considered a transportation project improvement.
AA. “Transportation system improvements” means transportation facilities that are included in the city of Auburn’s capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to transportation project improvements.
BB. “Grandfathering” means that existing land uses of a property in effect on July 1, 2001, the initial effective date of the impact fees ordinance, are entitled to system capacity credits determined by the adopted impact fees rate schedule.
CC. “Surplus credits” means credits over and above those calculated as an impact fee. For example:
1. In grandfathering calculations, if the difference between a proposed use fee minus existing use credit results in a positive number, the result is the impact fee due.
2. In grandfathering calculations, if the difference between a proposed use fee minus existing use credit results in a negative number, the result is the surplus credit and no impact fee would be due. Current practice is to not pay out in real dollars the calculated surplus credit.
In off-site system capacity improvements or ROW dedication it is also possible to create sufficient value that results in a surplus credit.
DD. “Change in use” for the purposes of this chapter means a different use as set forth in the identification of uses for the various fees for uses in the ITE Manual.
EE. “ITE Manual” means the manual promulgated and published by the Institute of Transportation Engineers.
FF. “Downtown catalyst area” means the areas defined by (1) the boundary of West Main Street/East Main Street to the north, “A” Street SE to the east, 2nd Street SE/2nd Street SW to the south, and “A” Street SW to the west; and (2) the boundary of East Main Street to the south, Auburn Avenue to the east, 1st Street NE to the north, and North Division Street to the west.
GG. “Downtown catalyst accessory area” means the area defined by the boundary of 1st Street NW to the south, “A” Street NW to the west, 2nd Street NW to the north, and North Division Street to the east.
HH. “Emergency public interest area” means the area defined as King County Tax Parcel No. 0721059053, located at 901 Auburn Way N., Auburn, WA 98002, described more particularly as follows:
Lots 1, 2 and 3 of City of Auburn Short Plat No. SPL0009-98, according to short plat recorded April 20, 1999, under recording No. 9904202125, in King County, Washington, and as shown below:
(Ord. 6199 § 1, 2008; Ord. 6197 § 1, 2008; Ord. 6089 § 1, 2007; Ord. 5763 § 1, 2003; Ord. 5604 § 1, 2001; Ord. 5506 § 1, 2001.)
19.04.030 Reserved.
(Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.040 Assessment of impact fees.
A. Effective July 1, 2001, the city shall collect impact fees, based on the fee schedule of the city of Auburn, from any applicant seeking a building permit from the city for any development activity within the city.
B. Effective May 19, 2003, where a change in use increases the trip generation by more than one whole PM peak hour trip, the director shall calculate a transportation impact fee based on the increases in the trip generation rate.
C. The director shall apply a heavy truck adjustment factor to the transportation impact fees for industrial land uses, addressing the percentage of vehicle trips for such uses made by trucks of three or more axles and the street capacity used by such trucks in comparison to other vehicles.
D. The amount of impact fees shall be determined at the time an applicant submits a complete application for a building permit, using the impact fee schedules then in effect, or pursuant to an independent fee calculation accepted by the director pursuant to ACC 19.04.050, and adjusted for any credits pursuant to ACC 19.04.060.
E. Payment of impact fees shall be made by the feepayer at the time the building permit is issued. The amount to be paid shall not be increased for any applicant that submitted a complete application for the building permit before the city established the impact fee rates.
F. Applicants that have been awarded credits prior to the submittal of the complete building permit application pursuant to ACC 19.04.060 shall submit, along with the complete building permit application, a copy of the letter or certificate prepared by the director pursuant to ACC 19.04.060 setting forth the dollar amount of the credit awarded. Impact fees, as determined after the application of appropriate credits, shall be collected from the feepayer at the time the building permit is issued.
G. The department shall not issue a building permit unless and until the impact fees have been paid or credit(s) awarded. (Ord. 6005 § 1, 2006; Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.050 Independent fee calculations.
A. If in the judgment of the director, none of the fee categories set forth in the attached schedule accurately describes or captures the impacts of the new development, the applicant shall conduct an independent fee calculation and the director may impose alternative fees on a specific development based on those calculations, once accepted by the city.
B. Feepayers may opt not to have the impact fees determined according to the attached schedule. Such feepayers shall prepare and submit to the director an independent fee calculation for the development activity for which a building permit is sought.
C. The documentation submitted and supporting an independent fee calculation shall clearly show PM peak hour trip generation characteristics of the proposed development based on industry-accepted standards as articulated in the ITE trip generation manual. The modified fee shall be based on the average cost per trip established in the fee schedule of the city of Auburn, and shall consider the alternative trip generation data.
D. A nonreimbursable administrative fee shall be charged for each independent fee calculation. The fee shall be deposited with the city to pay for city review of the independent fee calculation upon submittal of the documented independent fee study.
E. After the city completes its review, the actual fees and expenses will be determined and the cash deposit shall be adjusted to provide for a refund by the city or additional payment by the feepayer.
F. While there is a presumption that the calculations set forth in the attached schedule are valid, the director shall consider the documentation submitted by the feepayer, but is not required to accept such documentation which the director reasonably deems to be inaccurate or not reliable, and may, in the alternative, require the feepayer to submit additional or different documentation for consideration. The director is authorized to adjust the impact fees on a case-by-case basis based on the independent fee calculation, the specific characteristics of the development, and/or principles of fairness.
G. Determinations made by the director pursuant to this section may be appealed to the office of the hearing examiner subject to the procedures set forth in ACC 19.04.080. (Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.060 Credits and adjustments.
A. A feepayer can request that a credit or credits for transportation impact fees be awarded to him/her for transportation project improvements provided by the feepayer in excess of the standard requirements for the feepayer’s development if the land, improvements, and/or the facility constructed are identified as transportation system improvements that provide capacity to serve new growth in the capital facilities plan, or the director, at his/her discretion, makes the finding that such land, improvements, and/or facilities would serve the transportation goals and objectives of the capital facilities plan.
B. For each request for a credit or credits, the director shall determine the value of dedicated land by using available documentation or selecting an appraiser from a list of independent appraisers maintained by the department to determine the value of the land being dedicated. The value of the improvements will be determined through documentation submitted by the feepayer.
C. The feepayer shall pay the cost of the appraisal and shall deposit on account the estimated cost of the appraisal as determined by the city at the time the feepayer requests consideration for a credit.
D. After receiving the appraisal, the director shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating his/her agreement to the terms of the letter or certificate, and return such signed document to the director before the impact fee credit will be awarded. The failure of the applicant to sign, date, and return such document within 60 days shall nullify the credit.
E. Any claim for credit must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived.
F. No credit shall be given for transportation project improvements or right-of-way dedications for direct access improvements to and/or within the development in question.
G. Determinations made by the director pursuant to this section shall be subject to the appeals procedures set forth in ACC 19.04.080.
H. Pursuant to and consistent with the requirements of RCW 82.02.060, the fee rate in the fee schedule for the city of Auburn has been reasonably adjusted for other revenue sources which are earmarked for, or proratable to, funding transportation facilities.
I. In order to grandfather the capacity rights of existing land uses, the director will utilize the adopted rates to calculate any impact fee credits and to determine any surplus credits for off-site system improvements made by the property owner. Only in a situation when a property owner makes off site system capacity improvements that qualify in accordance with subsection A of this section will any surplus credits (value computed during the permit year and not adjusted for inflation) remain with the property or any subdivision of that property to benefit future development where a traffic impact fee is determined to be due. (Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.070 Exemptions.
A. The following shall be exempted from the payment of transportation impact fees:
1. Replacement of a structure with a new structure of the same PM peak hour trip generation and use at the same site or lot when such replacement occurs within 12 months of the demolition or destruction of the prior structure.
2. Alterations, expansion, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional dwelling units are created and the use is not changed.
3. Alterations of an existing nonresidential structure that does not expand the useable space.
4. Miscellaneous improvements, including but not limited to fences, walls, swimming pools, and signs.
5. A change in use where the increase in PM peak hour trip generation is less than the threshold stated in ACC 19.04.040(B).
6. Demolition, or moving of a structure out of the city.
7. Any building permit application that has been submitted to the department before 5:00 p.m. the business day before the first effective date of the transportation impact fee rate schedule and subsequently determined to be a complete application by the city.
8. All development activity within the “downtown plan area” as defined in ACC 19.04.020(I); provided, that this exemption shall sunset on June 30, 2007, unless otherwise extended by the city council.
9. All development activity within the “downtown catalyst area” as defined in ACC 19.04.020(FF); provided, that this exemption shall sunset on June 30, 2010, unless otherwise extended by the city council.
10. Fifty percent of all development activity within the “downtown catalyst accessory area” as defined in ACC 19.04.020(GG), to the effect that the exemption provided hereby shall be for 50 percent of the applicable transportation impact fees; provided, that this exemption shall sunset on December 31, 2008, unless otherwise extended by the city council.
11. All development activity within the “emergency public interest area” as defined in ACC 19.04.020(HH); provided, that this exemption shall sunset on December 31, 2008, unless otherwise extended by the city council.
B. The director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section. Determinations of the director shall be subject to the appeals procedures set forth in ACC 19.04.080. (Ord. 6199 § 2, 2008; Ord. 6197 § 2, 2008; Ord. 6178 § 1, 2008; Ord. 6089 § 2, 2007; Ord. 6068 § 1, 2006; Ord. 5763 § 1, 2003; Ord. 5604 § 1, 2001; Ord. 5506 § 1, 2001.)
19.04.080 Appeals.
A. Any feepayer may pay the impact fees imposed by this chapter under protest in order to obtain a building permit. Appeals regarding the impact fees imposed on any development activity may only be made by the feepayer of the property where such development activity will occur. No appeal submitted under protest shall be permitted unless and until the impact fees at issue have been paid. Alternatively, any feepayer may appeal the impact fees determined by the director without first paying the fees, providing the applicant is willing to provide a satisfactory security of the appealed fee amount in accordance with the requirements of ACC 17.08.010(A) prior to issuance of the building permit. Alternatively, any feepayer may appeal the impact fees determined by the public works director without first paying the fees, providing the applicant is willing to postpone issuance of the building permit until after the appeal process when the revised final fee is known.
B. Appeals of the public works director’s determinations made pursuant to this chapter shall be filed with the city’s public works department and shall be heard by the city’s hearing examiner pursuant to Chapter 18.66 ACC. Determinations on appeals shall be based on whether the decision being appealed was consistent with applicable state law and city codes. The hearing examiner’s determination shall be final unless appealed to the superior court of the county in which the property subject of the transportation impact fees is located within the city of Auburn in accordance with the procedures in RCW 34.05.510 through 34.05.598, and with the appeal being filed with the city clerk within 30 days after issuance of the decision of the hearing examiner. (Ord. 6182 § 5, 2008; Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.090 Establishment of an impact fee account for transportation.
A. Impact fee receipts shall be earmarked specifically and deposited in special interest-bearing accounts. The fees received shall be prudently invested in a manner consistent with the investment policies of the city.
B. There is hereby established a separate impact fee account for the fees collected pursuant to this chapter: the transportation impact account. Funds withdrawn from this account must be used in accordance with the provisions of ACC 19.04.110. Interest earned on the fees shall be retained in the account and expended for the purposes for which the impact fees were collected.
C. On an annual basis, the financial director shall provide a report to the council on the transportation impact account showing the source and amount of all moneys collected, earned, or received, and the transportation improvements that were financed in whole or in part by impact fees.
D. Impact fees shall be expended or encumbered within six years of receipt, unless the council identifies in written findings extraordinary and compelling reason or reasons for the delay.
E. In order to comply with RCW 82.02.060(2), impact fees for development activity in the downtown plan area shall be paid for with public funds other than from impact fee accounts during the exemption period set forth in ACC 19.04.070 (A)(8). (Ord. 5763 § 1, 2003; Ord. 5604 § 1, 2001; Ord. 5506 § 1, 2001.)
19.04.100 Refunds.
A. If the city fails to expend or encumber the impact fees within six years of when the fees were paid, or where extraordinary or compelling reasons exist, such other time periods as established pursuant to ACC 19.04.090, the current owner of the property on which impact fees have been paid may receive a refund of such fees. In determining whether impact fees have been expended or encumbered, 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. A potential claimant or claimant must be the owner of the property.
C. Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the director 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 impact fees for which no application for a refund has been made within this one-year period shall be retained by the city and expended on appropriate transportation system improvements.
E. Refunds of impact fees under this section shall include any interest earned on the impact fees by the city.
F. If and when the city seeks to terminate any or all components of the transportation impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest earned, shall be refunded pursuant to this section. 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 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. At the end of one year, any remaining funds shall be retained by the city, but must be expended for appropriate transportation system improvements. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated.
G. The city shall also refund to the developer of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur. (Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.110 Use of funds.
A. Pursuant to this chapter, transportation impact fees:
1. Shall be used for transportation improvements that will reasonably benefit the new development; and
2. Shall not be imposed to make up for deficiencies in transportation facilities serving existing developments; and
3. Shall not be used for maintenance or operations.
B. As a general guideline, transportation impact fees may be used for any transportation improvements which could otherwise be funded by a bond issue of the city.
C. Transportation impact fees may be spent for transportation improvements, including but not limited to planning, land acquisition, right-of-way acquisition, site improvements, necessary off-site improvements including mitigation, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized.
D. Impact fees may be used to recoup transportation improvement costs previously incurred by the city to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.
E. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of transportation improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section and are used to serve the new development. (Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.120 Review and update of impact fees.
A. The fee rate schedules set forth in the fee schedule of the city of Auburn shall be reviewed periodically by the council.
B. The fee schedules set forth in the fee schedule of the city of Auburn shall be reviewed by the council as it may deem necessary and appropriate in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan. (Ord. 6050 § 1, 2006; Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
19.04.130 Miscellaneous provisions.
A. Existing Authority Unimpaired. Nothing in this chapter shall preclude the city from requiring the feepayer or the proponent of a development activity 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).
B. Captions. The chapter and section captions used in this chapter are for convenience only and shall not control or affect the meaning or construction of any of the provisions of this chapter.
C. Severability. If any portion of this chapter is found to be invalid or unenforceable for any reason, such finding shall not affect the validity or enforceability of any other section of this chapter.
D. Short Title. This chapter shall be known and may be cited as the “The City of Auburn Transportation Impact Fee Ordinance.” (Ord. 5763 § 1, 2003; Ord. 5506 § 1, 2001.)
Code reviser’s note: The fee schedule of the city of Auburn, mentioned throughout this chapter, is available in the city clerk’s office for public review and examination.