Chapter 17.153 IMPACT FEES – SCHOOL FACILITIES

Chapter 17.153
IMPACT FEES – SCHOOL FACILITIES

Sections:

17.153.010 Findings.

17.153.020 Definitions.

17.153.030 School adequacy standards and applicability.

17.153.040 Imposition of impact fees.

17.153.050 Interlocal agreement providing for accounts for expenditure of fees.

17.153.060 Calculation of impact fees.

17.153.070 Impact fee credits.

17.153.080 Administrative appeals.

17.153.090 Payment under protest.

17.153.100 Impact fee accounts and expenditure of funds.

17.153.110 Refunds.

17.153.120 Exception for SEPA mitigation fee payment.

17.153.010 Findings.

(1) The Washington State Legislature, with the passage of the Growth Management Act, has removed previously enacted restrictions and authorized development impact fees as an additional source of funding for common school facilities, in addition to local tax revenues and state grants from the common school construction fund.

(2) The Growth Management Act (GMA) also amended RCW 58.17.110, the Platting and Subdivision Act, to require that subdivision decisions include written findings that “appropriate provisions are made for...schools and school grounds....”

(3) Demands for construction of new school facilities will continue through the next decade because of increased population.

(4) Chapter 82.02 RCW provides the authority for the collection of impact fees to offset the cost of new development.

(5) While the general community benefits from new public facilities and should continue to pay the majority of facility costs, it is appropriate to require new development to pay its proportionate share of the cost for new facilities.

(6) Because the Washington State Constitution makes the education of our children the state’s paramount duty, there continues to be a state responsibility for the construction of school facilities.

(7) The impact fee calculation provided for in this chapter accounts for existing and expected future public funding sources for schools, including state funding and local bond issues or other revenues. It assumes that these sources will continue to provide funding and specifically provides a credit for these two funding sources against the calculated impact fee.

(8) It is the desire of the city to have new development assessed impact fees in a uniform manner and to have a common formula and administrative process for the levying of this fee to the maximum degree possible. (Ord. 1176 § 1, 2005; Ord. 891 § 1, 1993).

17.153.020 Definitions.

For purposes of this chapter, the following terms shall have the indicated meanings:

(1) “Building permit” means the permit required for new construction and additions pursuant to SMC Title 14. As used herein, the term shall not be deemed to include permits required for remodeling, rehabilitation or other improvements to an existing structure or rebuilding a damaged or destroyed structure; provided there is no increase in the number of dwelling units resulting therefrom.

(2) “Capacity” means the number of students a school site and its school building are designed to accommodate.

(3) “Capital facilities plan” means the capital facilities plan prepared by or for the district and adopted by reference into the capital facilities element of the city of Stanwood Comprehensive Plan.

(4) “Concurrent” or the “concurrency standard” means that the permanent and interim improvements are planned to be or are in place at the time the impacts of development are expected to occur, and that the necessary financial commitments are in place to complete the improvements necessary to serve the development within six years of the time the impacts of the development are expected to occur.

(5) “Department” means the community development department of the city.

(6) “Development” means all subdivisions, short subdivisions, conditional use permits, or building permits for construction of new residential dwelling units. This definition does not include attached or detached accessory dwelling units or “housing for older persons” as defined in Title 46 U.S.C.

(7) “Development approval authority” means the city community development department.

(8) “Director” means the director of the community development department of the city.

(9) “District” means the Stanwood-Camano School District No. 401.

(10) “Impact fee” means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, which fee is reasonably related to the new development that creates additional demand and need for public facilities, is a proportionate share of the cost of the public facilities, and is used for facilities that reasonably benefit the new development. “Impact fee” does not include a reasonable permit or application fee.

(11) “Owner” means the owner of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

(12) “Proportionate share” means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.

(13) “RCW” means the Revised Code of Washington.

(14) “School district” means the Stanwood-Camano School District No. 401.

(15) “Service area” means the geographic area served within the district boundaries, which includes the entire city limits.

(16) “State match percentage” means the proportion of funds that are provided to the district for specific capital projects from the state’s common school construction fund.

(17) “Student factor” or “student generation rate (SGR)” means the number of students of each grade span (elementary, middle/junior high, high school) that the district determines is typically generated by dwelling unit types within the district.

(18) “System improvements” means school facilities, which are included in the district’s capital facilities plan as adopted into the Stanwood Comprehensive Plan and which are designed to provide service to the service area defined above, in contrast to project improvements.

(19) “U.S.C.” means the United States Code. (Ord. 1176 § 1, 2005; Ord. 891 § 2, 1993).

17.153.030 School adequacy standards and applicability.

(1) School facilities shall be deemed to have adequate capacity for purposes of determining adequate provision of school facilities for approval of any residential development proposal, if the circumstances in subsections (1)(a) and (1)(b), or subsection (1)(c), of this section exist. Additionally, the provisions of subsection (1)(d) of this section must be met in all cases.

(a) The district has permanent facilities to house the students projected to be coming from the development without exceeding the adopted capacity standards of the district by more than 10 percent. Permanent facilities will not include those that have been closed for more than two years until any necessary rehabilitation has been completed.

(b) The district has the land to accommodate the permanent and portable facilities needed to serve the students projected to be coming from the development.

(d) Any school impact fee required by this chapter is paid or is scheduled for payment and is adequately secured.

(2) If capacity standards are or would be exceeded with the construction of a proposed development, the school facilities available to serve the development shall be deemed inadequate and the development shall not be approved until the impact fee authorized by this chapter is paid; provided, the district has met all the other provisions of this chapter.

(3) The capacity standards and student factors for the district shall be documented by the capital facilities plan developed by the district and adopted by reference in the Stanwood Comprehensive Plan.

(4) The adequacy standards of this section shall apply to all forms of residential development which are subject to review and approval and which would result in the creation of new residential building lots or construction of new dwelling units. Reconstruction or remodeling of existing dwelling units or construction of new accessory dwelling units or commercial structures are not subject to the provisions of this chapter. (Ord. 1176 § 1, 2005; Ord. 981 § 3, 1993).

17.153.040 Imposition of impact fees.

(1) This chapter shall be uniformly applicable to residential development that occurs within the city pursuant to Chapter 82.02 RCW. Impact fees will be assessed on every new dwelling unit for which the requirements of SMC 17.153.030 have been met.

(2) The fee schedule developed pursuant to this chapter shall be applied by the city to all residential development that is subject to the adequacy standards established in SMC 17.153.030. Implementation of the fee collection process shall be further detailed by interlocal agreement. No fee will be collected by the city until an interlocal agreement as required in SMC 17.153.050 has been approved by the city and the district.

(3) Any impact fee imposed shall be reasonably related to the impact caused by the development and shall not exceed a proportionate share of the cost of system improvements that are reasonably related to the development.

(4) No building permit shall be issued for a development in the service area within the city unless the impact fee is calculated and imposed pursuant to this chapter.

(5) Impact fees shall be collected as follows:

(a) For single-family and duplex residential subdivisions and short subdivisions hereinafter approved, the per lot impact fee shall be a condition of preliminary plat or short plat approval and shall be imposed on a per lot basis at the time of final plat approval or building permit application. For new multifamily development hereafter approved, the impact fee shall be calculated and imposed at the time of building permit application.

(b) For any other new residential development not necessitating or having been previously granted preliminary plat, short plat or site plan approval, the impact fee shall be calculated and imposed at the time of building permit application.

(c) For residential development not necessitating a building permit, the impact fee shall be calculated and imposed at the time of site plan application or issuance of a certificate of occupancy.

(d) For mobile home parks, the impact fee shall be calculated and imposed at the time of issuance of a building permit application for each unit.

(e) For residential development proposed for existing lots, payment not previously collected shall be due at the time of building permit application.

(6) The city council may adjust the fee, if an applicant requests reduction in writing and submits compelling data showing unusual circumstances and a lower SGR and if the district concurs. (Ord. 1176 § 1, 2005; Ord. § 4, 1993).

17.153.050 Interlocal agreement providing for accounts for expenditure of fees.

(1) The school district and the city shall by interlocal agreement provide for the establishment and maintenance of separate accounts by the city finance director and for the expenditure of fees by the district in a timely fashion on appropriate capital projects as required by Chapter 82.02 RCW.

(a) The agreement shall provide for the keeping of records for each such account whereby collected impact fees can be segregated by type of facility.

(b) The agreement shall specify the fees the city will charge the school district for the collection of the fees authorized in this chapter.

(c) The agreement shall provide for the transfer of collected fees from the city to the district. (Ord. 1176 § 1, 2005; Ord. 891 § 5, 1993).

17.153.060 Calculation of impact fees.

(1) Separate fees shall be calculated for single-family and multifamily types of dwelling units. For purposes of this chapter, manufactured housing shall be treated as single-family dwellings and duplexes shall be treated as multifamily dwellings.

(2) The calculation of school impact fees shall be based upon the school district’s capital facilities plan, as approved by the city council and adopted by reference into the capital facilities element of the Stanwood Comprehensive Plan.

(3) The capital facilities plan shall contain the following as a basis for the adoption of school impact fees to be collected by the city:

(a) Inventory of permanent and relocatable classroom facilities;

(b) Student enrollment projections over a six-year period;

(d) Six-year financing plan; and

(e) Methodology used for the calculation of the fees.

(4) The proposed fee shall be calculated based on the following factors as documented in the capital facilities plan:

(a) The costs of site acquisition;

(b) The costs of facility construction or improvements;

(d) The proportionate share of the above costs attributable to new development;

(e) The costs of previously constructed facilities that serve new development; provided, that the fee is not used to make up for any existing system deficiencies not related to new growth; and

(f) Credits, or other revenues applied, such as user fees, debt service payments, taxes, or other payments earmarked for or proratable to the particular system improvement.

(5) The impact fee may be discounted by an amount deemed appropriate by the city in order to be consistent with impact fees being required by other jurisdictions. (Ord. 1176 § 1, 2005; Ord. 891 § 6, 1993).

17.153.070 Impact fee credits.

Whenever a development includes or is granted approval subject to a condition that the development applicant actually provide a school facility, land dedication, or system improvement that is acceptable to the district and the city and is identified in the district’s capital facilities plan, the development applicant shall be entitled to a credit for the actual cost of providing the facility against the fee that would be chargeable under this chapter. The cost of construction shall be estimated at the time of approval but must be documented and confirmed after the construction is complete to assure that an accurate credit amount is provided. If construction costs are less than the calculated impact fee amount, the difference remaining shall be chargeable as a school impact fee. In the event the amount of the credit is calculated to be greater than the amount of the impact fee due, the development applicant may apply such excess credit toward impact fees imposed on other developments by the applicant within the same service area. (Ord. 1176 § 1, 2005; Ord. 891 § 8, 1993. Formerly 17.153.080).

17.153.080 Administrative appeals.

Any person aggrieved by the amount of the impact fee calculated and imposed upon a particular development activity may appeal such determination to the hearing examiner by filing written notice of appeal with the planning director within 20 days of the issuance of the determination of the impact fee. The planning director shall cause a notice of the time and place of hearing to be mailed to the developer. At such hearing, the developer shall be entitled to be heard and to introduce evidence on his own behalf. The hearing examiner shall thereupon ascertain the amount of the impact fee and the planning director shall immediately notify the developer thereof by mail. (Ord. 1176 § 1, 2005; Ord. 891 § 9(1), 1993. Formerly 17.163.090).

17.153.090 Payment under protest.

Impact fees may be paid under protest. If the fee is protested, the city shall make final resolution of the protest a condition of the permit. Final occupancy of structures within the development shall not be approved until the protest is resolved. Arbitration may be utilized if agreeable to the city and the applicant. Any costs related to arbitration shall be distributed evenly between the city and the applicant. (Ord. 1176 § 1, 2005; Ord. 891 § 9(2), 1993. Formerly 17.153.100).

17.153.100 Impact fee accounts and expenditure of funds.

(1) Impact fees shall be retained in separate interest-bearing accounts. Any accumulated interest shall be kept in the account and spent for the purposes for which the fee was imposed.

(2) Annually, the city shall provide a report on each impact fee account, showing the source and amount of all moneys collected, earned, or received and system improvements that were financed in whole or in part by such impact fees.

(3) Impact fees for system improvements shall be expended only in conformance with the capital facilities plan adopted by reference into the city’s Comprehensive Plan.

(4) Impact fees shall be expended or encumbered by the district for a permissible use within six years of receipt, unless there exist extraordinary and compelling reasons for fees to be held longer than six years. Such extraordinary or compelling reasons shall be identified in written findings by the school district board of directors and then similarly by the city council. (Ord. 1176 § 1, 2005; Ord. 891 § 10(1), 1993. Formerly 17.153.110).

17.153.110 Refunds.

(1) Current owners of property on which an impact fee has been paid may receive a refund of such fees if the district fails to expend or encumber the impact fees within six years of when the fees were paid or such other period of time established pursuant to SMC 17.153.100(4).

(a) In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis.

(b) If funds are not encumbered, the district shall notify the city, and the city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of claimants.

(c) The request for refund money must be submitted to the city finance director 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 impact fees that are not expended within the six-year time limitation, and for which no application for refund has been made within this one-year period, shall be retained and expended on the indicated public facilities. Refunds of impact fees under this subsection shall include interest earned on the impact fees.

(d) A development applicant may request and shall receive a refund, including interest earned on the impact fees, when the building permit for which the impact fee has been paid has lapsed for noncommencement of construction. A partial refund shall be provided where the project for which a building permit has been issued has been altered, resulting in a decrease in the amount of the impact fee due under SMC 17.153.060.

(2) The interlocal agreement required in SMC 17.153.050 shall detail a refund process, as required by Chapter 82.02 RCW. (Ord. 1176 § 1, 2005; Ord. 891 §§ 10(2), (3), 1993. Formerly 17.153.120).

17.153.120 Exception for SEPA mitigation fee payment.

A development applicant required to pay a fee under RCW 43.21C.060 for system improvements to mitigate school impacts shall not be required to pay a school impact fee under this chapter for those same system improvements. (Ord. 1176 § 1, 2005; Ord. 891 § 11, 1993. Formerly 17.153.130).