Chapter 12.36
TRANSPORTATION IMPACT FEES

Sections:

12.36.010    Authority and purpose.

12.36.020    Definitions.

12.36.030    Geographic scope.

12.36.040    Imposition of transportation impact fees.

12.36.050    Assessment of impact fees.

12.36.060    Independent fee calculations.

12.36.070    Credits and adjustments.

12.36.080    Exemptions.

12.36.090    Appeals.

12.36.100    Special developments with minimum impact.

12.36.110    Establishment of an impact fee account for transportation.

12.36.120    Refunds.

12.36.130    Use of funds.

12.36.140    Relationship to SEPA.

12.36.150    Review and update of impact fees.

12.36.160    Miscellaneous provisions.

12.36.010 Authority and purpose.

A. This title is enacted pursuant to the city’s police powers, the Growth Management Act as codified in chapter 36.70A RCW, the enabling authority in chapter 82.02 RCW, chapter 58.17 RCW relating to platting and subdivisions, and the State Environmental Policy Act (SEPA), chapter 43.21C RCW.

B. The purpose of this title is to:

1. Develop a transportation impact fee program consistent with the transportation element of the Sumner comprehensive plan, the capital facilities plan and the six-year transportation improvement program, as set out in the 2015 Sumner transportation plan;

2. Ensure adequate levels of transportation and traffic service within the city consistent with the Sumner comprehensive plan and transportation improvements are concurrent with development per state law;

3. Create a mechanism to charge and collect fees to ensure that all new development bears its proportionate share of the capital cost of off-site transportation facilities directly necessitated by new development in order to provide an adequate level of transportation service with the comprehensive plan;

4. Ensure adequate and fair collection and administration of such impact fees.

C. The provisions of this chapter shall be liberally construed to effectively carry out its purpose in the interests of public health, safety and welfare. (Ord. 2531 § 11, 2015: Ord. 2041 § 1 (part), 2003)

12.36.020 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.

1. “Act” means the Growth Management Act, chapter 36.70A RCW, as now in existence or as hereafter amended.

2. “Adequate level of transportation service” means a system of transportation facilities which have the capacity to serve development without decreasing levels of service below the city’s established minimum as set forth in the Sumner comprehensive plan.

3. “Capacity” means the maximum sustainable flow rate at which vehicles or persons can be expected to traverse a point or uniform segment of a lane or roadway during a specified period, usually expressed as vehicles per hour, passengers per hour, or persons per hour.

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

5. “City” means the city of Sumner.

6. “Council” means the city council of the city of Sumner.

7. “Department” means the department of public works for the city of Sumner.

8. “Development” is defined in SMC 18.04.0340; those definitions are applicable to this chapter.

9. “Development activity” means any construction or expansion of a building, structure, facility or use, any change in size of a building, structure, or facility, or any change in the use of land, that creates additional demand and need for transportation facilities.

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

11. “Dwelling unit” is defined in SMC 18.04.0360, and incorporated herein by this reference.

12. “Encumbered” means to reserve, set aside or otherwise earmark the impact fee in order to pay for commitments, contractual obligations or other liabilities incurred for public facilities.

13. “Equivalent car trip” means the number of p.m. peak trips with passenger cars, light pickups and two-axle, six tire trucks with a gross weight of 18,000 pounds or less being considered one equivalent car trip. Larger and heavier vehicles with more than two axles and six tires with a gross weight of more than 18,000 pounds are considered trucks and are rated as four equivalent car trips for purposes of this chapter.

14. “Feepayer” is a person, corporation, partnership, an incorporated association, or any other legal 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, which requires the issuance of a building permit. “Feepayer” includes an applicant for an impact fee credit.

15. “Administrative services director or designee” means the administrative services director of the city of Sumner or his/her designee.

16. “Gross floor area (GFA)” means the total square footage of any building, structure, or use including accessory uses.

17. “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.

18. “Hearing examiner” means the examiner who acts on behalf of the Sumner city council in considering and applying land use regulatory codes as authorized under chapters 2.58 and 18.56 SMC.

19. “Interest” means the interest rate earned by local jurisdictions in the state of Washington local government investment pool, if not otherwise defined.

20. “Multifamily dwelling” means a building designed exclusively for occupancy by three or more families living independently of each other, and containing three or more separated dwelling units.

21. “Owner” means the owner of record of real property; provided, that if the real property is being purchased under a recorded real estate contract or mortgage, the purchaser shall be considered the owner of the real property.

22. “P.M. peak hour” means the hour of the highest traffic demand between noon and midnight, typically 5:00 p.m. to 6:00 p.m.

23. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development project that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in the capital facilities plan and marked to be partially funded with impact fees as approved by the city council shall be considered a project improvement.

24. “System improvements” means public facilities that are included in the capital facilities plan and are designed to provide service areas within the community at large, in contrast to project improvements. These improvements generally are arterial streets requiring improvement to increase their capacity because of growth.

25. “Transportation impact fee” means a payment of money imposed by the city of Sumner 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 and is reasonably related to the new development that creates additional demand and need for public streets and roads, that is a proportionate share of the cost of the public streets and roads, and that is used for public roads and streets that reasonably benefit the new development. “Impact fee” does not include a reasonable permit or application fee otherwise established by city council resolution.

26. “Transportation impact fee account” means the account established for the transportation impact fees collected. The account shall be established pursuant to SMC 12.36.110 and comply with the requirements of RCW 82.02.070. (Ord. 2479 § 1 (part), 2014; Ord. 2041 § 1 (part), 2003)

12.36.030 Geographic scope.

The boundaries within which impact fees shall be charged and collected are co-extensive with the corporate city limits, and shall include all unincorporated areas annexed to the city on and after the effective date of ordinance codified in this chapter. After adoption of interlocal agreements with other local and regional governments, geographic boundaries may be expanded consistent therewith. (Ord. 2041 § 1 (part), 2003)

12.36.040 Imposition of transportation impact fees.

A. The approving authority is hereby authorized to impose transportation impact fees on new development according to the provisions of this chapter.

B. Transportation impact fees:

1. Shall only be imposed for system improvements that are reasonably related to the new development;

2. Shall not exceed a proportionate share of the cost of system improvements that are reasonably related to the new development;

3. Shall be used for system improvements that will reasonably benefit the new development; and

4. May be collected and spent only for system improvements which are addressed by the six-year transportation improvement program, as a subset of the Sumner capital facilities plan, identifying:

a. Deficiencies in public facilities serving existing development and the means by which existing deficiencies will be eliminated within a reasonable period of time;

b. Additional demands placed on existing public facilities by new developments; and

c. Additional public facility improvements required to serve new development;

5. Should not be imposed to mitigate the same off-site transportation facility impacts that are mitigated pursuant to any other law;

6. Should not be collected for improvements to state transportation facilities unless the state requests such improvements and an agreement to collect such fees has been executed between the state/county and the city;

7. Shall not be collected for improvements to transportation facilities in other jurisdictions unless the affected jurisdiction requests such improvement and an interlocal agreement has been executed between the city and the affected jurisdiction for the collection of such fees;

8. Shall be collected only once for each building permit, unless changes or modifications to the building permit are proposed which result in greater direct impacts on transportation facilities than were considered when the building permit was first approved. (Ord. 2041 § 1 (part), 2003)

12.36.050 Assessment of impact fees.

All new development requiring a building permit as herein defined shall pay a transportation impact fee based on the number of new p.m. peak hour equivalent car trips generated by the development. The TIF shall be per the table in subsection (H) of this section for each new p.m. peak hour equivalent car trip generated by the development based on the current edition of the ITE Trip Generation Manual or actual independent field studies.

A. Upon June 11, 2003, the city shall collect impact fees from any applicant seeking a building permit from the city for any development activity within the city.

B. Upon June 11, 2003, where a change in use increases the trip generation by more than three p.m. peak hour trips, the director or his/her designee shall calculate a transportation impact fee based on the increases in the trip generation rate.

C. 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 SMC 12.36.060, and adjusted for any credits pursuant to SMC 12.36.070.

D. Payment of impact fees shall be made by the feepayer either: (1) at the time the building permit is issued; or (2) deferred as per subsections (G) and (J) of this section. The amount to be paid as mitigation under SEPA shall not be increased for any applicant that submitted a complete application for the building permit before the city established the impact fee rates.

E. Applicants that have been awarded credits prior to the submittal of the complete building permit application pursuant to SMC 12.36.070 shall submit, along with the complete building permit application, a copy of the letter or certificate prepared by the director or his/her designee pursuant to SMC 12.36.070 setting forth the 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.

F. The department shall not issue a building permit unless and until the impact fees have been paid or credit(s) awarded or payments have been deferred per subsection (G) or (J) of this section.

G. Deferral of Payment of Transportation Impact Fees. Payment of transportation impact fees may be deferred for industrial, commercial, and multifamily residential construction until final construction inspection under the following conditions:

1. No final inspection will be provided until transportation impact fees are paid in full per this chapter.

2. It shall be a violation of the Sumner Municipal Code to occupy a building without final inspection and either a temporary certificate of occupancy or a certificate of occupancy.

3. The applicant must pay a service fee of $250.00 at the time of building permit issuance. This service charge will be applied to the full amount of deferred system development charges when paid.

4. Unless otherwise amended, this subsection (G) shall apply to complete applications for construction permit applications received after January 1, 2014.

H. Three districts are established by the Transportation Impact Fee District Map.

1. The boundaries of the districts are shown on the official Transportation Impact Fee District Map which, together with all explanatory matters thereon, is hereby adopted by reference and declared to be a part of this title.

2. Each district map shall be, upon its final adoption, a part of this title, and the map, all notations, references and other information shown shall be made a part of this title as though all matters and information set forth on the map were fully described herein.

3. The official Transportation Impact Fee District Map shall be identified by the signature of the mayor, attested by the city clerk and shall bear the seal of the city of Sumner. The original of the official Transportation Impact Fee District Map shall be retained in the office of the city clerk.

Transportation Impact Fee Schedule 

 

2015-2016

2017

2018

2019

Dist. 1

$0

$543

$1,086

$1,645

Dist. 2

$1,165

$1,165

$1,645

$2,125

Dist. 3

$2,530

$2,530

$2,530

$2,530

I. Effective October 1st of each year, the system development charge shall be adjusted according to the Seattle Construction Cost Index (SCCI).

J. An applicant for a building permit for a single-family detached or attached residence may request a deferral of the full impact fee payment until final inspection or 18 months from the date of original building permit issuance, whichever occurs first. Deferral of impact fees are considered under the following conditions:

1. An applicant for deferral must request the deferral no later than the time of application for a building permit. Any request not so made shall be deemed waived.

2. For the purpose of this deferral program, the following definitions apply:

a. “Applicant” means and includes an entity that controls the applicant, is controlled by the applicant, or is under common control with the applicant.

b. “Single-family residence” means a permit for a single-family house as set forth in this section, ITE Code 210.

3. To receive a deferral, an applicant must:

a. Submit a deferred impact fee application and acknowledgement form for each single-family attached or detached residence for which the applicant wishes to defer payment of the impact fee;

b. Pay the applicable administrative fee;

c. Grant and record at the applicant’s expense a deferred impact fee lien in a form approved by the city against the property in favor of the city in the amount of the deferred impact fee that:

i. Includes the legal description, tax assessor number, and address of the property;

ii. Requires payment of the impact fees to the city prior to final inspection or 18 months from the date of original building permit issuance, whichever occurs first;

iii. Is signed by all owners of the property, with all signatures acknowledged as required for a deed and recorded in Pierce County;

iv. Binds all successors in title after the recordation; and

v. Is junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees.

4. The amount of impact fees deferred shall be determined by the fees in effect at the time the applicant applies for a deferral.

5. Prior to final inspection or 18 months from the date of the original building permit issuance, the applicant may pay the deferred amount in installments, with no penalty for early payment.

6. The city shall withhold final inspection until the impact fees have been paid in full. Upon receipt of final payment of impact fees deferred under this section, the city shall execute a release of deferred impact fee lien for each single-family attached or detached residence for which the impact fees have been received. The applicant, or property owner at the time of release, shall be responsible for recording the lien release at his or her expense.

7. The extinguishment of a deferred impact fee lien by the foreclosure of a lien having priority does not affect the obligation to pay the impact fees as a condition of final inspection.

8. If impact fees are not paid in accordance with the deferral and the term provisions established herein, the city may institute foreclosure proceedings in accordance with Chapter 61.12 RCW.

9. Each applicant for a single-family attached or detached residential building permit, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this section for the first 20 single-family residential building permits.

10. The applicant must pay a service fee of $250.00 at the time of building permit issuance. This service charge will be applied to the full amount of deferred impact fees when paid. (Ord. 2576 § 3, 2016: Ord. 2554 § 1, 2015: Ord. 2473 § 3, 2014; Ord. 2417 § 3, 2012; Ord. 2348 § 3, 2011: Ord. 2041 § 1 (part), 2003)

12.36.060 Independent fee calculations.

A. If in the judgment of the director or his/her designee, none of the fee categories set forth in the impact fee schedule guideline in effect at that time and on file in the public works department 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 impact fee schedule guideline in effect at that time and on file in the public works department. Such feepayers shall prepare and submit to the director an independent fee calculation for the development activity for which a building permit is sought. The independent fee calculation shall be prepared by a professional traffic engineer licensed in the state of Washington.

C. The documentation submitted and supporting an independent fee calculation shall clearly show new p.m. peak hour trip generation characteristics of the proposed development based on industry-accepted standards as articulated in the current edition of the ITE Trip Generation Manual or as determined from actual field studies. The modified fee shall be based on the cost per equivalent car trips established herein, and shall consider the alternative trip generation data.

D. An administrative fee shall be charged for each independent fee calculation. The fee shall be deposited with the city to pay for review of the independent fee calculation. The city may adjust the amount of the deposit at any time, as necessary, to pay for the appropriate review of the independent fee calculation. These fees shall be based on the city’s actual expended direct and indirect costs and expenses. The applicant shall deposit $250.00 to defray the cost and expense of the review of the independent fee calculation. The deposit will be applied against the city’s review costs from the time of the application to completion of the review process. The applicant’s deposit shall be credited toward the total cash deposit as described above. The cash deposit accrues no interest. If the deposit is expended, the city will require additional deposit(s) before further work is performed by city staff, or bill the account. Statements will include invoice documentation and are mailed on the tenth of each month. Payment is due by the first of the following month as shown on the billing statement. A monthly finance charge of one percent of the ending balance will be accessed on all unpaid balances. If no payment is made within 60 days, the account will be considered past due and all further city staff work on the project may be suspended. After 90 days past due, the city may take whatever action is necessary to collect past due amounts including referring the matter to the city attorney and/or a collection agency. The feepayer shall also pay reasonable fees to the city, in addition to the amount identified, if the city is required to perform additional work relating to the application, which may include, but is not limited to, the following:

1. Additional support services which shall include but are not limited to a traffic analysis.

2. Acts by the applicant which require that the city staff spend extraordinary time on related issues.

3. The city’s need to obtain consulting support services to assist the city when the scope of the application is beyond the city’s expertise or the city’s ability to review within a reasonable time. Authorization from the owner shall be required before the city enlists project consulting support services.

After the city completes its review, the actual costs 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.

E. While there is a presumption that the calculations set forth in the current edition of the ITE Trip Generation Manual 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.

F. 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 SMC 12.36.090. (Ord. 2041 § 1 (part), 2003)

12.36.070 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 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 land dedicated as right-of-way and qualifying for a credit in new developments shall be based on actual pre-development worth. The value of the improvements shall be based on the actual cost as 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 director 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. Credits shall be based on the current transportation impact fees in effect at the time the credit is approved by the director. The city of Sumner shall keep a record of these credits and apply them to future development permits. The statute of limitation for these credits is 10 years from the date of approval of the credit and the date a complete permit application is filed with the city.

H. Determinations made by the director pursuant to this section shall be subject to the appeals procedures set forth in SMC 12.36.090.

I. Pursuant to and consistent with the requirements of RCW 82.02.060, the fee rate schedule, Attachment A*, has been reasonably adjusted for other revenue sources which are earmarked for, or proratable to, funding transportation facilities. (Ord. 2041 § 1 (part), 2003)

*Code reviser’s note: Attachment A is attached to Ordinance 2041 and is on file in the city clerk’s office.

12.36.080 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 p.m. peak hour trip generation and use at the same site or lot when such replacement occurs within five years of the demolition or destruction of the prior structure;

2. Alterations or expansion or enlargement or remodeling or 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 usable space;

4. Miscellaneous improvements, including but not limited to fences, walls, swimming pools, and signs;

5. A change in use where the increase in p.m. peak hour trip generation is less than the threshold stated in SMC 12.36.050(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. Any business that moves location within the city and does not expand its business creating more new traffic as set forth in subsection C of this section. The use of any facilities remaining at the old location will be subject to impact fees based on the new use.

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 SMC 12.36.090.

C. The general policy to determine ownership of impact fees transferred from one location to another within the city limits is as follows:

1. Whoever paid the original impact fees has the rights to the credits.

2. In the case of businesses existing prior to the enactment of the ordinance codified in this chapter, the transfer credit shall remain with the business since it is their activity that generates the impact.

3. In the case of residential development, the credit shall remain with the property.

4. Credit for past uses on a property or delay of the use of transfer credits has a limitation of five years. If they are not used within this time frame, they shall become null and void. (Ord. 2041 § 1 (part), 2003)

12.36.090 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 shall be permitted unless and until the impact fees at issue have been paid.

B. Determinations of the director with respect to the applicability of the impact fees to a given development activity, the availability or value of a credit, or the director’s decision with respect to the independent fee calculation, or any other determination which the director is authorized to make pursuant to this chapter, can be appealed to the hearing examiner.

C. Appeals shall be taken within 10 working days of the director’s issuance of a written determination by filing with the office of the hearing examiner a notice of appeal specifying the grounds thereof, and depositing the necessary fee, which is set forth in the existing fee schedules for appeals of administrative decisions. The director shall transmit to the office of the hearing examiner all papers constituting the record for the determination, including, where appropriate, the independent fee calculation.

D. The hearing examiner shall fix a time for the hearing of the appeal, give notice to the parties in interest, and decide the same as provided in chapter 18.56 SMC. At the hearing, any party may appear in person or by agent or attorney.

E. The hearing examiner is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of the credit, or the accuracy or applicability of an independent fee calculation. In accordance with chapter 18.56 SMC, this is a Class IV decision. The decision of the hearing examiner shall be final.

F. The hearing examiner may, so long as such action is in conformance with the provisions of this chapter, reverse or affirm, in whole or in part, or may modify the determinations of the director with respect to the amount of the impact fees imposed or the credit awarded upon a determination that it is proper to do so based on principles of fairness, and may make such order, requirements, decision or determination as ought to be made, and to that end shall have the powers which have been granted to the director by this chapter. (Ord. 2041 § 1 (part), 2003)

12.36.100 Special developments with minimum impact.

A. Certain developments due to location, use, type, or other particular circumstances may not proportionally impact the street system in the city of Sumner. If the feepayer can demonstrate that their development does not meet any of the criteria set forth in SMC 12.36.040, the impact fee calculation may be reduced by the director to the extent it satisfies the requirements of SMC 12.36.040.

B. To qualify for a reduction in the fees set forth herein, the feepayer must have a qualified traffic engineer licensed in the state of Washington prepare a complete transportation impact analysis (TIA) and submit that report to the director or his/her designee for review and evaluation. All costs associated with the TIA, including preparation and review, shall be borne by the feepayer.

C. The decision of the director regarding any or no reduction in impact fees based on the TIA may be appealed by the applicant as set forth in SMC 12.36.090. (Ord. 2041 § 1 (part), 2003)

12.36.110 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 SMC 12.36.130. 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. (Ord. 2041 § 1 (part), 2003)

12.36.120 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 SMC 12.36.110, 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(s) must be the owner(s) 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. 2041 § 1 (part), 2003)

12.36.130 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. 2041 § 1 (part), 2003)

12.36.140 Relationship to SEPA.

A. As provided in RCW 82.02.100, a person required to pay a fee pursuant to RCW 43.21C.060 for system improvements shall not be required to pay an impact fee under this chapter for those same system improvements.

B. Nothing in this chapter shall be construed to limit the city’s authority to deny development permits when a proposal would result in probable significant adverse impacts identified in an environmental impact statement and reasonable mitigation measures are insufficient to mitigate the identified impact. (Ord. 2041 § 1 (part), 2003)

12.36.150 Review and update of impact fees.

A. The impact fees set forth herein shall be reviewed by the council no later than three years after the effective date of the ordinance codified in this chapter, and no more than every three years thereafter.

B. The impact fees set forth herein shall be reviewed by the council as it may deem necessary and appropriate in conjunction with the annual update of the six-year transportation improvement program. (Ord. 2041 § 1 (part), 2003)

12.36.160 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 Sumner Transportation Impact Fee Ordinance.” (Ord. 2041 § 1 (part), 2003)