Chapter 14.20
MITIGATION PAYMENT SYSTEM

Sections:

14.20.010    Authority and purpose.

14.20.020    Scope and use of MPS impact fees.

14.20.030    Fee schedules and establishment of service districts (MPS zones).

14.20.040    MPS zone map.

14.20.050    Calculation of MPS fees.

14.20.060    Payment of fees.

14.20.070    Administrative fees.

14.20.080    Administrative fee for preliminary fee calculation.

14.20.090    Project list.

14.20.100    Funding of projects.

14.20.110    Refunds.

14.20.120    Fees paid under protest.

14.20.130    Exemptions for schools.

14.20.140    Exemption or reduction for low and moderate income housing.

14.20.150    Request for final decision needed to appeal.

14.20.160    Necessity of compliance.

14.20.010 Authority and purpose.

(1) The department is authorized to impose transportation impact fees on new development pursuant to the City of Sammamish’s powers as an optional municipal code city; and the Growth Management Act, Laws of 1990, 1st Extraordinary Session, Chapter 17, Chapter 82.02 RCW.

(2) The purposes of this chapter are to:

(a) Ensure that financial commitments are in place so that adequate transportation facilities are available to serve new growth and development;

(b) Promote orderly growth and development by establishing standards requiring that new growth and development pay a proportionate share of the cost of new transportation facilities needed to serve new growth and development;

(c) Ensure that transportation impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same impact;

(d) Implement the transportation policies of the transportation element of the interim comprehensive plan; and

(e) Provide additional funding for growth-related transportation improvements identified by the interim comprehensive plan as reasonable and necessary to meet the future growth needs of the City. (Ord. O99-29 § 1)

14.20.020 Scope and use of MPS impact fees.

MPS impact fees:

(1) Shall only be imposed for transportation improvements that are reasonably related to the traffic impacts of the new development;

(2) Shall not exceed a proportionate share of the costs of transportation improvements that are reasonably related to the new development;

(3) Shall be used for transportation improvements that will reasonably benefit the new development;

(4) Shall not be used to correct existing deficiencies; and

(5) Shall not be imposed to mitigate the same off-site traffic impacts that are being mitigated pursuant to any other law. (Ord. O99-29 § 1)

14.20.030 Fee schedules and establishment of service districts (MPS zones).

(1) Fee schedules stating the amount of the MPS fee that single-family residential, multifamily residential, and nonresidential development shall pay for development subject to MPS fees are set forth in subsection (4) of this section. Subsequent fee schedules shall be established pursuant to SMC 14.20.050. All other development shall pay an MPS fee individually calculated by the department, as set forth in SMC 14.20.050. The MPS administrative fee that all developers shall pay is set forth in SMC 14.20.070 and 14.20.080.

(2) For purposes of this chapter, the City is divided into service districts also called MPS zones, set forth in SMC 14.20.040, MPS zone map. In each service district, similar types of development shall pay the same MPS fee, unless the amount of the fee is altered because:

(a) Unusual circumstances exist and the department adjusts the amount of the fee as provided in subsection (3) of this section; or

(b) The developer submits studies or data showing that the fee as set forth in the applicable schedule or as calculated by the department is in error, as provided in SMC 14.20.150(1) for appeal and SMC 14.20.150(2) for reconsideration.

(3) The department may adjust the standard impact fee as set forth in the fee schedules at the time the fee is imposed to consider unusual circumstances in specific cases to ensure that MPS fees are imposed fairly. The department shall set forth its reasons for adjusting the standard MPS fee in written findings.

(4) MPS Impact Fee Schedule.

MPS Zone Service
District

Fee for Single-Family Residential Development per Dwelling Unit

Fee for Multifamily Residential Development per Dwelling Unit

Fee for Nonresidential Development per PM
Peak Hour Trip

402

$1,996.00

$1,197.60

$1,996.00

403

$2,575.00

$1,545.00

$2,575.00

405

$6,247.00

$3,748.20

$6,247.00

406

$2,226.00

$1,335.60

$2,226.00

407

$3,382.00

$2,029.20

$3,382.00

412

$1,095.00

$657.00

$1,095.00

413

$3,044.00

$1,826.40

$3,044.00

414

$2,498.00

$1,498.80

$2,498.00

415

$632.00

$379.20

$632.00

416

$918.00

$550.80

$918.00

419

$1,416.00

$849.60

$1,416.00

The fee for multifamily residential development shall be 60% of the fee for single-family development.

Fees for nonresidential development shall be based on single-family equivalent residential units where one nonresidential PM peak trip equals the single-family unit.

(Ord. O99-29 § 1)

14.20.040 MPS zone map.

14.20.050 Calculation of MPS fees.

(1) The department shall calculate the MPS fees set forth in the fee schedules, SMC 14.20.030(1), by means of a computer modeling system that:

(a) Incorporates the service districts adopted in SMC 14.20.030(2);

(b) Within each service district of the City, determines the standard fee for similar types of residential development, which shall be reasonably related to each development’s proportionate share of the cost of the transportation improvement projects being funded by this chapter and shall reasonably reflect the average fee for similar development in the same service district; and

(c) Reduces the proportionate share by applying the benefit factors set forth in this chapter.

(2) Only when a development’s MPS impact fee is not determined by the fee schedules adopted in SMC 14.20.030(1), the department may, at its option and at the applicant’s expense, calculate the MPS fee by means of a computerized modeling system, which is the same system used to determine the fee schedules, and which:

(a) Determines the development’s proportionate share of the cost of the transportation improvement projects being funded by this chapter; and

(b) Reduces the proportionate share by applying the benefit factors set forth in this chapter.

(3) The computer model used shall calculate proportionate share for use in both fee schedules and individual calculations by:

(a) Determining the number of peak hour vehicle trips generated by development that will benefit from the vehicle capacity added, or to be added, by the street improvements on the MPS project list;

(b) Determining the unit cost of added capacity for each MPS project by dividing the estimated cost of each project by the amount of capacity added; and

(c) Multiplying the number of peak hour trips added to each MPS project by the unit cost of added capacity for those projects.

(4) In calculating proportionate share, the modeling system used shall:

(a) Recognize that a development’s traffic will use a corridor rather than a particular street;

(b) Use trip generation rates published by the Institute of Transportation Engineers (ITE) unless:

(i) Actual measurements of the rate of trip generation by similar developments in the City are available, and the director determines that these local measurements are more accurate; or

(ii) ITE trip generation rates for the proposed development are not available, in which case the director:

(A) May use published rates from another source; or

(B) May calculate the rate from data about the population of the proposed development; or

(C) May require the developer to obtain actual measurements of trip generation rates by similar developments in the City;

(c) Reduce the trip generation rate to reflect reductions in traffic that will occur because of transportation strategies, as described in the administrative rules for this title;

(d) Identify all streets and intersections that will be impacted by traffic from each development for as far from the development as the model can measure;

(e) Identify when the capacity of an MPS project has been fully utilized;

(f) Update the data in the model as often as practical, at least every five years;

(g) Estimate the cost of constructing the projects on the MPS project list as of the time they are placed on the list, and then update the cost estimates periodically, considering the:

(i) Availability of other means of funding transportation facility improvements;

(ii) Cost of existing transportation facility improvements; and

(iii) Methods by which transportation facility improvements were financed;

(h) Update the fee collected against a project that has already been completed, through an advancement of City funds, at a rate, determined periodically, which is equivalent to the City’s return on its investments; and

(i) Charge a development for the total traffic entering and exiting the development during the peak hour.

(5) The modeling system used shall reduce the calculated proportionate share by giving credit for the following benefit factors:

(a) A 15 percent credit in recognition that some of the trips from a development paying an MPS fee may begin or end within another development that is or has been subject to MPS requirements;

(b) Past or future payments made or reasonably anticipated to be made by a development to pay for particular transportation improvements in the form of user fees, debt service payments, taxes or other payments earmarked for or proratable to the same projects being funded by such development’s MPS fee; and

(c) The value of any dedication of land for, improvement to, or new construction of any system improvements provided by the developer, to transportation facilities that are identified in the MPS project list and that are required by the City as a condition of approving the development activity; provided, that when an MPS project is constructed on both on-site and off-site land, the department shall determine, in light of all the circumstances, what proportion of the developer’s costs should fairly and reasonably be attributed to the work done on off-site land.

(6) The department shall review the 15 percent credit factor periodically and propose revisions to the factor when appropriate to reflect the actual number of trips generated by new development that also begin or end in other developments that have previously been subject to a fee for the same impact.

(7) If the credit determined pursuant to subsection (5)(c) of this section exceeds the amount of the developer’s MPS fee, the department shall reimburse the developer from MPS fees collected from other developers for the same MPS project.

(8) The amount of credit determined pursuant to subsection (5)(c) of this section shall be credited proportionately among all the lots in the development, and the MPS fee for each lot for which a building permit is applied shall be reduced accordingly.

(9) The department shall use the information from the computerized modeling system to prepare recommended fee schedules. The City council shall, as often as is necessary but at least every five years, by ordinance establish the fee schedule applicable to each service area in the City by adopting, with or without modification, the department’s recommended fee schedules.

(10) The department shall present to the City council in administrative rules the proposed changes in the service district boundaries, set forth in SMC 14.20.030(2), as often as is necessary to ensure that the service district boundaries conform to sound planning or engineering principles.

(11) To the extent practical, and in accordance with sound planning or engineering principles, the department shall develop and propose to the City council for adoption precalculated fee schedules applicable to types of development in addition to residential development. (Ord. O99-29 § 1)

14.20.060 Payment of fees.

(1) All developers shall pay an MPS fee in accordance with the provisions of this chapter at the time that the applicable development permit is ready for issuance. The fee paid shall be the amount in effect as of the date of permit application if paid at the time of final plat approval or the current rate if paid at the time of the building permit.

(2) All developers shall pay an MPS administrative fee at the time of application for a development permit as set forth in SMC 14.20.070 and 14.20.080.

(3) An individually determined MPS fee shall be calculated at the time of application for a development permit.

(4) The fee as initially calculated after application for a development permit may be recalculated at the time of payment if the development is modified or conditioned in such a way as to alter the trip generation rate for the development or the development’s total peak hour trips.

(5) No development permit shall be issued until the MPS fee is paid, except that developers of residential subdivisions, short subdivisions, or planned unit development may defer payment until building permits are issued for the lots within the subdivision, short subdivision or planned unit development, at current rates.

(6) A developer may obtain a preliminary determination of the MPS fee before application for a development permit, by paying a processing fee pursuant to SMC 14.20.070 and providing the department with the information needed for processing.

(7) MPS fees may be paid under protest in order to obtain a permit or other approval of development activity following the provisions of SMC 14.20.120, Fees paid under protest. (Ord. O99-29 § 1)

14.20.070 Administrative fees.

(1) All development permits subject to the MPS fees pursuant to SMC 14.20.060 shall pay an administrative fee of $60.00.

(2) All development permits that require an individually determined MPS fee pursuant to SMC 14.20.060(3) shall pay an administrative processing fee of $432.00. (Ord. O99-29 § 1)

14.20.080 Administrative fee for preliminary fee calculation.

Requests to the department for a preliminary determination of an MPS fee prepared pursuant to SMC 14.20.060(6) shall be charged the administrative processing fee set forth in SMC 14.20.070. (Ord. O99-29 § 1)

14.20.090 Project list.

(1) In conjunction with the department’s periodic review and update of the transportation needs report (TNR) element of the interim comprehensive plan the department shall do the following:

(a) Identify each capital improvement project in the TNR that is growth-related and the proportion of each such project that is growth-related;

(b) Forecast the total monies available from taxes and other public sources for road improvements over the multi-year program;

(c) Calculate the amount of MPS fees already paid; and

(d) Identify those MPS projects that have been or are being built but whose performance capacity has not been fully utilized.

(2) The department shall use this information to periodically prepare a recommended MPS project list, which shall comprise:

(a) The projects on the TNR, in order of priority, that are growth-related and that are capable of being funded with the forecast public monies and the MPS fees already paid; and

(b) The MPS projects already built or funded pursuant to this chapter whose performance capacity has not been fully utilized.

(3) The City council, at the same time that it adopts the periodic budget and appropriates funds for capital improvement projects, shall establish the MPS project list by adopting, with or without modification, the department’s recommended list.

(4) Once a project is placed on the MPS project list, a fee shall be imposed on every development that impacts the project until the project is removed from the list by one of the following means:

(a) The City council by ordinance removes the project from the MPS project list, in which case the fees already collected will be refunded if necessary to ensure that the MPS fee remains reasonably related to the traffic impacts of development that have paid an MPS fee; provided, that a refund shall not be necessary if the council transfers the fees to the budget of another project that the City council determines will mitigate essentially the same traffic impacts; or

(b) The capacity created by the project has been fully utilized, in which case the department shall administratively remove the project from the MPS project list. (Ord. O99-29 § 1)

14.20.100 Funding of projects.

(1) An MPS trust fund 601 is hereby created. The director of finance shall be the fund manager. MPS fees shall be placed in appropriate deposit accounts within the MPS fund.

(2) The MPS fees paid to the City shall be held and disbursed as follows:

(a) The fees collected for each MPS project shall be placed in a deposit account within the MPS fund;

(b) The fund manager is authorized to transfer the project fees held in the MPS fund to the transportation CIP fund no less than once a year in the year following receipt of the fees;

(c) The non-MPS fee monies appropriated for the MPS project shall comprise both the public share of the project cost and an advancement of that portion of the private share that has not yet been collected in MPS fees;

(d) The first money spent by the department on an MPS project after a City council appropriation shall be deemed to be the fees from the MPS fund;

(e) Fees collected after a project has been fully funded by means of one or more City council appropriations shall constitute reimbursement to the City of the public monies advanced for the private share of the project. The public monies made available by such reimbursement shall be used to pay the public share of other MPS projects or to pay for smaller scale, growth-related projects that are not placed on the MPS project list; and

(f) All interest earned on the MPS fees paid by developers shall be retained in the account and expended for the purpose or purposes for which the impact fees were imposed.

(3) MPS fees for transportation facility improvements shall be expended only in conformance with the transportation element of the comprehensive plan.

(4) MPS projects shall be funded by a balance between MPS fees and other sources of public funds, and shall not be funded solely by MPS fees.

(5) MPS fees shall be expended or encumbered for a permissible use within six years of receipt, unless there exists an extraordinary or compelling reason for fees to be held longer than six years. The director may recommend to the City council that the city hold fees beyond six years in cases where extraordinary or compelling reasons exist. Such reasons shall be identified in written findings by the City council.

(6) The City council may, on recommendation from the director, pool the MPS fees already collected from a development whenever appropriate to help finance a project with high priority among the projects impacted by the development.

(7) The City council, on recommendation from the director, may pool MPS fees whenever necessary to ensure that the fees are expended or encumbered for a permissible use within six years of receipt. Pooling for such purpose shall be accomplished as follows:

(a) The director shall determine which project has the highest priority among the projects for which MPS fees were collected for each such development, and the director may recommend, and the City council may approve, transfer of the MPS fees paid by the development to the budget of the project with the highest priority.

(b) The department shall indicate in the TNR which projects have funds in their budget that have been pooled to ensure that they are expended or encumbered in a timely manner.

(8) The finance department shall prepare an annual report on each MPS fee account showing the source and amount of all monies collected, earned or received and transportation improvements that were financed in whole or in part by MPS fees. (Ord. O99-29 § 1)

14.20.110 Refunds.

(1) A developer may request and shall receive a refund when the developer does not proceed with the development activity for which MPS fees were paid, and the developer shows that no impact has resulted. However, the MPS administrative fee shall not be refunded.

(2) If a property owner appears to be entitled to a refund of MPS impact fees, the department shall notify the property owner by first class mail deposited with the United States Postal Service at the property owner’s last known address. The property owner must submit a written request for a refund to the City council in writing within one year of the date the right to claim the refund arises or the date the notice is given, whichever is later. Any MPS impact fees that are not expended or encumbered within the time limitations established by SMC 14.20.100(5) and for which no application for a refund has been made within this one-year period, shall be retained and expended on the projects for which it was collected.

(3) In the event that MPS impact fees must be refunded for any reason, they shall be refunded with interest earned to the property owners as they appear of record with the King County assessor at the time of the refund.

(4) When the City seeks to terminate any or all impact fee requirements under this title, all unexpended or unencumbered funds shall be refunded pursuant to this section. Upon the finding that any or all fee requirements are to be terminated, the City clerk 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 claimants. Claimants shall request refunds as in subsection (2) of this section. 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 in fund 601, but must be expended for the indicated road facilities. This notice of requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated. (Ord. O99-29 § 1)

14.20.120 Fees paid under protest.

(1) A statement that fees are being paid under protest must be filed with the City clerk within 14 days of the payment of fees.

(2) Fees paid under protest will be held by the City until there is a standing decision or the six-year time limit has been reached.

14.20.130 Exemptions for schools.

(1) Public school districts shall be exempted from payment of mitigation payment system fees.

(2) The amount of the MPS fees not collected from school districts shall be paid from public funds other than impact fee accounts. (Ord. O99-29 § 1)

14.20.140 Exemption or reduction for low and moderate income housing.

(1) Public housing agencies or private nonprofit housing developers participating in publicly sponsored or subsidized housing programs may apply to the department of community development for exemptions from MPS fee requirements. The department shall review proposed developments of low income or moderate housing by such public or nonprofit developers pursuant to criteria and procedures adopted by administrative rule. If the department determines that a proposed development of low or moderate income housing satisfies the adopted criteria, such development shall be exempted from the requirement to pay an MPS fee.

(2) Private developers who dedicate residential units for occupancy by low or moderate income households may apply to the department of community development for reductions in MPS fees. The department shall review such proposed developments pursuant to criteria and procedures adopted by administrative rule. If the department determines that a proposed development satisfies the adopted criteria the department shall reduce the calculated MPS fee for the development by an amount that is proportionate to the number of units in the development that satisfy the adopted criteria.

(3) Developers of individual low or moderate income households who are building, contracting to build, or siting a house may apply to the department of community development for an exemption from MPS fees. The department shall review such proposed exemptions pursuant to criteria that include household income and assets, the cost of the site, site improvements, and the housing. The procedures and criteria used to evaluate an exception shall be adopted by administrative rule. If the department determines that a household qualifies for exemption per the adopted criteria, such individual projects shall be exempted from the requirement to pay the MPS fee.

(4) The amount of the MPS fees not collected from low or moderate income household development shall be paid from public funds other than impact fee accounts, if authorized.

(5) The department of community development is hereby instructed and authorized to adopt, pursuant to Chapter 2.55 SMC, administrative rules to implement this section. Such rules shall provide for the administration of this program and shall:

(a) Encourage the construction of housing for low or moderate income households by public housing agencies or private nonprofit housing developers participating in publicly sponsored or subsidized housing programs;

(b) Encourage the construction in private developments of housing units for low or moderate income households that are in addition to units required by another housing program or development condition;

(c) Ensure that housing that qualifies as low or moderate cost meets appropriate standards regarding household income, rent levels or sale prices, location, number of units, and development size; and

(d) Ensure that developers who obtain an exemption from or reduction of MPS fees pursuant to subsections (1) and (2) of this section will in fact build the proposed low and moderate cost housing and make it available to low income households for a minimum of 15 years. (Ord. O99-29 § 1)

14.20.150 Request for final decision needed to appeal.

In order to obtain an appealable final decision the developer must:

(1) Request in writing a review of the MPS impact fee amount by department staff. The department staff shall consider any studies and data submitted by the developer seeking to adjust the amount of the fee; and

(2) Request in writing under SMC 14.10.060 for reconsideration by the director of public works, not a designee, of an adverse decision by staff. Such request for reconsideration shall state in detail the grounds for the request. The public works director, not a designee, shall issue a final, appealable decision after reviewing the request.

The process for filing appeals is set forth in SMC 14.10.050, Filing appeals – Concurrency, MPS, IS. (Ord. O99-29 § 1)

14.20.160 Necessity of compliance.

A development permit issued after the effective date of the MPS provisions of this chapter shall be null and void if issued without substantial compliance with this chapter by the department of community development and the developer. (Ord. O99-29 § 1)