Chapter 11.15
TRANSPORTATION
IMPACT FEES1
Sections:
11.15.010 Transportation impact fees established.
11.15.030 Establishment of service area.
11.15.040 Imposition of impact fee on development activity.
11.15.050 Disposition of impact fee revenues.
11.15.090 Termination date of authority to collect and expend impact fees.
11.15.010 Transportation impact fees established.
There is established, subject to the provisions of this chapter, a transportation impact fee program. (Ord. 94-1002 § 1)
11.15.020 Definitions.
Unless the context otherwise requires, the terms defined in this section shall, for all purposes of this chapter, have the meanings specified in this section, with words importing the singular number including the plural number and visa versa:
“Act” means the sections of the Washington State Growth Management Act, codified as RCW 82.02.050 through 82.02.090, as now in existence, or as hereinafter amended.
“Building permit” means any written authorization from the City which authorizes the commencement of development activity.
“Capital facility plan” means the capital facilities plan element of the City’s Comprehensive Plan, as now in existence or as hereinafter amended.
“City” means the City of SeaTac, Washington.
“City Comprehensive Plan” means the City’s comprehensive land use plan, adopted pursuant to Act.
“Development activity” means any construction or expansion of a building or structure that creates additional demand on and/or the need for public facilities, but not interior remodeling that does not change the PM Peak trips as categorized in the interim transportation plan element to the City’s Comprehensive Plan or of the applicable code or regulation of the City.
“Fair market value” means the price in terms of money that a property will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller each prudently knowledgeable, and assuming the price is not affected by undue stimulus.
“Hearing Examiner” means the Hearing Examiner of the City of SeaTac, pursuant to Chapter 1.20 of the City Code.
“Impact fee” means a payment of money imposed by the City upon development activity as a condition of issuance of a building permit to pay for public facilities needed to serve new growth and development, and to mitigate the impacts of the development activity on the transportation facilities of the City, but does not include any permit or application fee.
“Impact fee fund” means the service area development impact fee fund of the City created pursuant to Section 3.75.010 of the City Code.
“Owner” means the owner of record of real property, although real property is being purchased under a real estate contract, the purchaser shall be considered the owner of real property if the contract is recorded.
“Public facilities” as used in this section refers to public streets, roads and rights-of-way owned or operated by the City for other governmental entities, including trails, paths, bikeways, other transportation facilities and all attendant improvements.
“Service area” means the development impact fee service area of the City identified in SMC 11.15.030.
“System improvements” means public facilities that are included in the capital facilities plan.
“Transportation facilities” means and refers to streets and roads, but includes all publicly owned streets, roads, alleys and right-of-ways within the City and street services, traffic control devices, curbs, gutters, sidewalks and related facilities and improvements.
“Transportation plan” means the transportation plan element of the City’s Comprehensive Plan. (Ord. 94-1002 § 1)
11.15.030 Establishment of service area.
The City hereby establishes as the service area for development impact fees the City of SeaTac, including all property located within the corporate limits of the City. The scope of the service area is hereby found to be reasonable and established on the basis of sound planning and engineering principles. (Ord. 94-1002 § 1)
11.15.040 Imposition of impact fee on development activity.
A. The City hereby authorizes the assessment and collection of impact fees on development activity within the City, at the rate of three thousand five hundred dollars ($3,500) per peak p.m. trip, effective January 1, 2017, as computed in accordance with the most current edition of the Institute of Transportation Engineers Trip Generation Manual, as applied to the City’s adopted Comprehensive Plan and the Transportation Management Plan. It is hereby declared that such impact fees shall:
1. Only be imposed for system improvements that are reasonably related to new development; and
2. Not exceed a proportionate share of the cost of the system improvements, including the costs of previously constructed system improvements, reasonably related to new development; and
3. Be used for system improvements that will reasonably benefit new development; and
4. Not be imposed to make up for deficiencies in any previously constructed system improvements.
Such impact fee schedule is based upon the formula for calculating the proportionate share of the cost of the system improvements, including the costs of previously constructed system improvements, necessitated by new development to be borne by impact fees, which formulas are described in the interim transportation plan element of the City’s Comprehensive Plan and incorporated herein by this reference.
B. Impact fee rates shall be updated annually using the following procedures:
1. A three (3) year moving average of the Washington State Department of Transportation Construction Cost Index will be used to determine the increase in fees for each year to reflect increased project costs.
2. The indexed impact fee rates shall be effective January 1st. A copy of the indexed impact fee rates shall be provided to the City Council but the indexed rates shall become effective without further Council review.
The transportation impact fee rates shall be reviewed bi-annually to determine when a new transportation impact fee rate study should be prepared and presented to Council.
C. Unless the use of an independent fee calculation has been approved, or unless a development agreement entered into pursuant to RCW 36.70B.170 provides otherwise, the impact fees shall be calculated and paid per the following:
1. For platted and unplatted single-family residential lots and commercial and multi-family developments, fees shall be calculated based on the impact fee schedule in effect at the time a completed building permit application is filed and paid prior to permit issuance. For a change in use for which no building permit is required, the fee shall be calculated and paid based on the impact fee schedule in effect on the date of an approved change of use.
2. For residential land divisions and unplatted single-family residential lots, the impact fees may be deferred, but shall be paid at the time of final inspection for each building permit. Covenants prepared by the City to enforce payment of the deferred fees shall be recorded at the applicant’s expense prior to building permit issuance for platted and unplatted single-family residential lots. The fee shall be calculated based on the impact fee schedule in effect on the date of payment of the impact fee.
3. The term of deferral is eighteen (18) months from issuance of the building permit.
D. Failure to pay the impact fees for a given development activity at the time of assessment shall result in denial of the building permit for which the owner has applied.
E. In computing the fee applicable to a given development activity, credit shall be given for the fair market value, measured at the time of dedication of land or upon completion of dedicated improvements or construction, of any dedicated land for, improvements to, or construction of, any system improvements in the same category of public facilities as that of the applicable fee provided by the owner and required by the City as a condition of approving the development activity over and above the minimum development standards set out in the City’s subdivision and street ordinances.
F. The City Manager or designee may adjust the amount of the impact fee otherwise imposed hereby with respect to specific projects requiring a building permit upon determining that:
1. Unusual circumstances require such adjustment to ensure that such impact fees are imposed fairly; and
2. Studies and data submitted by the owner regarding the impacts of such owner’s proposed development activity requires such adjustment to ensure that such impact fees are imposed fairly. Impact fees shall not be deemed unfair unless such unusual circumstances and studies and data support a finding that the impact fees otherwise imposed hereby allocate to the specific project in question a share of the cost of the systems improvements reasonably related to new development that is greater than or substantially less than such project’s allocable proportionate share of such costs. (Ord. 16-1015 § 1: Ord. 02-1041 § 2; Ord. 94-1002 § 1)
11.15.050 Disposition of impact fee revenues.
A. The impact fees collected pursuant to the provisions of this chapter shall be deposited into the impact fee fund created pursuant to SMC 3.75.010. Pending application as provided in this chapter, the monies deposited in the accounts of the impact fee fund shall be invested in any investment authorized for the investment of City funds. All interest and profits derived from the investment of monies in each account in the impact fee fund shall be retained in such account.
B. The impact fees deposited in each account in the impact fee fund, and the interest and profit received from the investments therefrom shall be expended only for public facilities of the type for which such impact fees were collected, in conformity with the City’s Comprehensive Plan and capital facilities plan element, and expended or encumbered within ten (10) years of receipt by the City, unless written findings by the City Council identify an extra-ordinary and compelling reason for the City to hold the fees for a longer time. The City shall account for annual expenditures and shall comply with this section in successive comprehensive plans, transportation plans and capital facilities plans as appropriate.
C. The City shall prepare an annual report on the impact fee fund which shows the source and amount of all monies collected, earned or received and the public facilities that were financed in whole or in part by impact fees. (Ord. 16-1015 § 2: Ord. 94-1002 § 1)
11.15.060 Refunds.
A. The City shall refund to the current owners of property on which an impact fee has been paid any impact fees paid with respect to such property that has not been expended or incumbered for public facilities of the type of which such impact fees were collected within six years from the date of receipt or such longer period of time as is established in the event that the City Council finds that an extra ordinary or compelling reason exists to hold the fees longer than six years as provided in SMC 11.15.050. Impact fees shall be considered incumbered on a first in first out basis. The City shall notify potential refund claimants by first-class mail deposited with the United States Postal Service at the last known address of the claimants.
B. The City shall also refund to the current owner of property of which an impact fee has been paid all impact fees paid with respect to such property if the development activity for which the impact fee was imposed did not occur and no impact has resulted; provided, that if some, but not all, of the development activity for which the impact fee was imposed occurred, the impact will be deemed to have occurred, and no refund shall be available under this section.
C. Owners seeking a refund of impact fees must submit a written request for a refund of impact fees to the City Manager or designee within one (1) year of the date the right to claim the refund arises, which, for purposes of refund claims authorized pursuant to subsection B of this section only, shall be the date of voluntary or involuntary abandonment of the building permit, or the date that notice is given as provided in subsection A of this section, which ever occurs later. Refunds of impact fees shall include interest and any profits earned on the impact fees from the date of their receipt to the date of refund, as a percentage of the interest/profits earned by the fund on an annual basis. Any impact fees not expended within the time limitations described in SMC 11.15.050(B), and for which no application for a refund has been made within the one (1) year claim period, shall be retained by the City and expended on public facilities of the type for which such impact fees were initially collected, without further limitation as to the time of expenditure. (Ord. 94-1002 § 1)
11.15.070 Appeals.
A. An owner may pay an impact fee imposed pursuant to this chapter under protest in order to obtain a building permit, and after such payment, may file an appeal regarding the amount of such impact fee in accordance with this section.
B. The determination of the City Manager or designee regarding the applicability of the impact fee to a given development activity within the service area shall be final. The Hearing Examiner shall have the power to hear and decide appeals where it is alleged that there is an error in the City Manager’s or designee’s determination of the impact fee imposed upon a development activity pursuant to this chapter.
C. Appeal to the Hearing Examiner regarding the amount of the impact fee imposed on any development activity may only be taken by the owner of the property where such development activity shall occur. No appeal shall be permitted unless and until the impact fee at issue has been paid. Such appeals shall be taken within a reasonable time, not exceeding ten (10) days after the date the impact fee was paid, by filing with the City Manager or designee and with the Hearing Examiner a notice of appeal specifying the grounds thereof and depositing an appeal filing fee of two hundred fifty dollars ($250.00). The City Manager or designee shall forthwith transfer to the Hearing Examiner all papers constituting the record upon which the amount of the impact fee was determined.
D. The Hearing Examiner shall fix a reasonable time for the hearing of the appeal, give public notice thereof as well as due notice to the parties of interest, and decide the same within a reasonable time of the hearing. Any party may appear in person or by agent or through his/her attorney.
E. In exercising the above-mentioned powers, the Hearing Examiner may, so long as such action is in conformity with the terms of this chapter, reverse or affirm, wholly or partially or may modify the determination of the amount of the impact fee appealed from only upon a determination that it is proper to do so based on principal of fairness, and may make such order, requirements, decisions or determination as ought to be made, and to that end shall have the powers with respect to the determination of the impact fees as they are granted to the City pursuant to this chapter.
F. Any person or persons, or any board, taxpayer or department or division of the City aggrieved by any decision of the Hearing Examiner may seek review by a court of record of such decision, in the manner provided by the laws of the State of Washington. (Ord. 94-1002 § 1)
11.15.080 Severability.
If any one (1) or more provision of this chapter shall be declared unconstitutional and cause invalidation for any reason, such decisions shall not affect the validity of the remaining provisions of this chapter, and this chapter shall be construed and enforced as if such unconstitutional or invalid provision had not been contained herein. (Ord. 94-1002 § 1)
11.15.090 Termination date of authority to collect and expend impact fees.
The City’s authority to collect and expend impact fees pursuant to this chapter shall be effective until the earlier of (a) the repeal of the ordinance codified in this chapter, or (b) the determination by the State of Washington of the authorization to collect and expend impact fees. (Ord. 94-1002 § 1)
Code reviser’s note: This chapter, added as Chapter 11.10 by Ord. 94-1002, has been renumbered to 11.15 to avoid duplicate chapter numbers.