Chapter 4.55


4.55.010    Short title.

4.55.020    Statutory authority.

4.55.030    Findings.

4.55.040    Definitions.

4.55.050    Assessment of impact fees.

4.55.060    Exemptions.

4.55.070    Impact fee credits and adjustments.

4.55.080    Adjustment.

4.55.090    Reserved.

4.55.100    Establishment of impact fee accounts for parks.

4.55.110    Refunds.

4.55.120    Use of funds.

4.55.130    Review of impact fees.

4.55.140    Establishment of service area.

4.55.150    Park impact fees.

4.55.160    Independent fee calculation.

4.55.170    Existing authority unimpaired.

4.55.175    Appeals and payments under protest.

4.55.180    Severability.

4.55.190    Park impact fee schedule.

4.55.200    Park impact fee formula.

4.55.010 Short title.

The ordinance codified in this chapter may be referred to or cited as the “City of University Place parks, recreation and open space impact fee ordinance.”

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.020 Statutory authority.

This chapter is enacted pursuant to Chapter 17, Laws of 1990, 1st Ex. Sess., Chapter 36.70A RCW et seq., Chapter 32, Laws of 1991, 1st Sp. Sess., Chapter 82.02 RCW et seq., Chapter 219, Laws of 1992, and Chapter 6, Laws of 1993, 1st Sp. Sess., as now in existence or as hereafter amended.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.030 Findings.

The City finds and declares that new residential growth and development will create increased demand on public facilities including parks, open space and recreational facilities and further finds that growth and development should pay a proportionate share of the cost of such planned facilities needed to serve that growth and development activity. It is the desire of the City of University Place to have new development assessed impact fees in an orderly and uniform manner and to have common formulae and administrative processes for the levying of these fees. Therefore, pursuant to Chapter 82.02 RCW, the City Council adopts this chapter to assess park impact fees. The provisions of this chapter shall be liberally construed in order to carry out the purpose of establishing the City of University Place impact fee program.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.040 Definitions.

The following words, terms and phrases shall have the ascribed meanings for the purpose of this title, unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual and customary meaning.

A. “Building permit” means a permit authorized pursuant to UPMC Title 14 for new construction or addition. The term “building permit,” as used herein, shall not be deemed to include permits required for the 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 (for residential construction) resulting therefrom.

B. “Capital facilities” means the facilities or improvements included in the most recent City of University Place capital facilities plan.

C. “Capital facilities plan” or “CFP” means the most recent capital facilities plan element of a comprehensive plan adopted pursuant to Chapter 36.70A RCW, and such plan as subsequently amended and adopted by the City Council.

D. “Department” means the City’s Community Development Department.

E. “Director” means the Director of the Community Development Department of the City, or the Director’s designated representative.

F. “Development activity” means any construction or expansion of a residential, commercial, industrial, institutional or public building, structure, or use, any change in the use of a building or structure or any change in the use of land that creates additional demand or need for public facilities.

G. “Duplex” or “two-family” means two dwelling units within the same building. For the purpose of impact fee calculation duplexes shall be considered equivalent to multiple-family.

H. “Dwelling unit” means one or more rooms designed for or occupied by one family for living or sleeping purposes and containing kitchen, sleeping and sanitary facilities for use solely by one family. All rooms comprising a dwelling unit shall have access through an interior door to other parts of the dwelling unit. This definition includes single-family, two-family (duplex) and multiple-family dwellings, but not including hotels and motels, lodging houses, rooming houses, and clubs.

I. “Encumber” means to reserve, set aside, or otherwise transfer the park impact fee dollars from the park impact fee fund to an account for a particular system improvement that is funded in the City’s capital budget. The account encumbering the park impact fee dollars shall include the name of the system improvement financed with such money.

J. “Fee payer” is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau including any government entity or municipal corporation commencing a development activity which creates the demand for planned facilities, and which requires development approval and/or the issuance of a building permit. “Fee payer” includes an applicant for impact fee credit.

K. “Impact fee” means a fee levied pursuant to this chapter as a condition of issuance of a building permit. “Impact fee” does not include a reasonable permit fee, an application fee, an administrative fee, the administrative fee for collecting and handling impact fees, the cost of reviewing independent fee calculations or the administrative fee required for an appeal pursuant to this chapter.

L. “Impact fee account” or “account” means the account or accounts established for the planned facilities for which impact fees are collected. The accounts shall be established pursuant to UPMC 4.55.100 and comply with the requirements of RCW 82.02.070.

M. “Impact fee schedule” means the fee schedule and associated formula as set forth in UPMC 4.55.150.

N. “Independent fee calculation” means the park impact calculation prepared by a fee payer to support the assessment amount of an impact fee different from the amount derived from use of the impact fee schedules.

O. “Municipal code” means the municipal code of the City of University Place.

P. “Multiple-family” means a detached or attached building containing two or more dwelling units. For impact fee calculations this will include duplexes, triplexes, fourplexes, apartments, townhouses, and group and retirement apartments. Congregate care facilities, nursing homes and other types of assisted care facilities are not considered to be “multiple-family” for the purpose of this chapter.

Q. “Open space” means any parcel or area of land or water essentially unimproved and set aside, dedicated or reserved from normal development and may contain environmental, geological or ecological sensitive or critical areas. These areas may contain limited trails, viewpoints or interpretive signage.

R. “Owner” means the owner of record 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.

S. “Park” means those dedicated park lands, developed parks and associated improvements so designated in the City of University Place Parks, Open Space and Recreation Element of the City of University Place Comprehensive Plan.

T. “Park land, dedicated” means any undeveloped or underdeveloped parcel or area of land or water that is controlled by the City of University Place for the intent of future park development.

U. “Park, developed” means any parcel or area and the improvements on those areas controlled by the City of University Place that have been designated for public passive or active recreational use.

V. “Park impact fee” means the impact fee designated to assist in funding for acquisition and development of publicly owned parks and outdoor recreational facilities.

W. “Project” means a development with the necessary site improvements on a specific parcel of land.

X. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development or users of the project, and are not system improvements.

Y. “Public facilities” means the following capital facilities planned, owned or operated by the City of University Place or other governmental entities: publicly owned parks, dedicated park lands, recreational facilities; roads and all associated improvements; storm drains, and schools and school facilities.

Z. “Service area” means the city limits of the City of University Place.

AA. “Single-family” means a detached building which meets the requirements of the International Building Code or portions thereof and is used exclusively for occupancy by one family (including their guests, servants, and employees) and containing one dwelling unit.

BB. “Structure” means anything that is constructed in or on the ground or over water, including any edifice, gas or liquid storage tank, and any piece of work artificially built up or composed of parts and joined together. For the purposes of this regulation, “structure” does not include paved areas, fill or any vehicle.

CC. “System improvement” means public facilities that are included in the City of University Place capital facilities plan and are designed to provide service within the community at large, in contrast to project improvements.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 423 § 3, 2004; Ord. 204 § 1, 1998).

4.55.050 Assessment of impact fees.

A. Impact fees shall be based on the calculations set forth in this chapter and shall be collected from all applicants seeking approval for residential development activity within the areas controlled by the City of University Place. The City shall collect park impact fee charges at the time of building permit issuance.

B. If the development for which the approval is sought contains a mixture of residential use types, the impact fee must be separately calculated for each type of use. If the site on which development is sought contains an existing use, the impact of that use shall be subtracted from the calculation of the demand caused by the proposed development so that the impact fee is assessed only for the additional demand created by the proposed development.

C. Applicants may opt to defer the payment of their impact fees as described below:

1. An applicant may elect to defer impact fee payment until issuance of a certificate of a final occupancy of the residential project.

2. If an applicant elects to defer payment as provided above, a written recordable agreement must be executed between the owner of the property on which the residential project is developed and the City prior to permit issuance. This agreement shall be in a form prescribed by the Director and shall set forth the terms of the deferral including provisions for payment, lien release, change of use, expiration, and penalties for noncompliance. The agreement shall be recorded as a lien against the property and the applicant shall be responsible for the payment of any associated recording fees prior to recording.

D. Owners May Opt to Prepay Impact Fees.

1. If an owner opts to prepay impact fees on a particular property, then the prepayment will be made based upon the number of residential units proposed on that property. Upon such prepayment, the owner is credited as having paid in full for that number of units on that particular property. The prepaid impact fees will be subject to expenditure immediately upon receipt.

2. The impact fee credit runs with the land and is transferable to a new owner in the event of sale or other transfer of the property. The duration of the prepayment credit will be the time in which the prepaid impact fees must be expended by the City under the State law in effect at the time of prepayment.

3. In the event the property is developed with more residential units than the number prepaid, the additional units will be subject to the impact fee schedule in effect at the time of application for the additional units.

4. In the event the property is developed with fewer residential units than the number prepaid, the owner shall not be entitled to a refund or other credit.

(Ord. 617 § 1, 2012; Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.060 Exemptions.

A. The following shall be exempt from the required payment of impact fees:

1. Alteration, expansion, enlargement, remodeling or rehabilitation of an existing dwelling unit where no additional units are created and the use is not changed;

2. Miscellaneous improvements, including, but not limited to, fences, walls, signs, decks, swimming pools, drives, walkways, docks and piers;

3. Demolition or moving of a structure;

4. The construction of accessory structures that will not create significant impacts on planned facilities;

5. Replacement of a previously demolished structure with the same number of dwellings which previously occupied the property, provided the demolition occurred no greater than two years prior to the date of application for a building permit;

6. New nonresidential development. Mixed-use developments will be charged park impact fees based on the number of dwelling units at multiple-family residential rates; or

7. Congregate care facilities, nursing homes, and other types of assisted care facilities.

B. The Director is authorized to determine whether a particular development activity falls within an exemption identified in this section, in any other section, or under other applicable law. Determinations of the Director shall be in writing and shall be subject to the appeals procedure set forth in Chapter 22.10 UPMC.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.070 Impact fee credits and adjustments.

A. The fee payer shall be entitled to a credit against the applicable impact fee component for the present value of any dedication of land for, improvements to, or new construction of any park system improvement provided by the development applicant for facilities that are identified in the capital facilities plan and that are required as a condition of approval for the development proposal. The credit must be requested in writing prior to the time of permit issuance or it is deemed waived.

B. Credit for dedication of land or improvements shall be based upon the cost assumptions contained within the capital facilities plan, or established by an appraiser retained by the fee payer and approved by the department to determine the value of the dedicated land improvements or construction provided by the fee payer. The fee payer shall pay the cost of appraisal. The date of value shall be the date the land was dedicated to the City. The appraisal shall only value the land dedicated and not any alleged damages to any abutting property.

C. After receiving the request for credit, 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. Costs for preparing the legal description shall be borne by the applicant. If the accepted credit value is less than the calculated fee amount, the difference remaining shall be chargeable as an 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 similar capital facilities for other developments within the service area. Such credits are not transferable between applicants.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.080 Adjustment.

The impact fee schedule in UPMC 4.55.150 has been reasonably adjusted for taxes and other revenue sources which are anticipated to be available to fund public improvements.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.090 Reserved.

(Ord. 539 § 1 (Exh. A), 2009; Ord. 204 § 1, 1998).

4.55.100 Establishment of impact fee accounts for parks.

A. Impact fee receipts shall be earmarked specifically and deposited in a special interest-bearing account in the Parks Capital Improvement Fund. The fees received shall be prudently invested in a manner consistent with investment policies of the City.

B. There is hereby established a parks impact fee account in the Parks Capital Improvement Fund for the fees collected pursuant to this title. Funds withdrawn from this account must be used in accordance with the provisions of UPMC 4.55.120. Interest earned on the fees shall be retained in the account and expended for the purpose for which the impact fees were collected.

C. On an annual basis, the City’s Finance Manager shall provide a report to the City Council on the impact account showing the source and amounts of all moneys collected, earned or received and the public improvements that were financed in part by the impact fees.

D. Impact fees shall be expended or encumbered within 10 years of receipt, unless the City Council identifies in written findings extraordinary and compelling reason or reasons for the City to hold the fees beyond the 10-year period. A “first in, first out” basis will be used for determining which impact fees have been used or encumbered.

(Ord. 659 § 2, 2015; Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.110 Refunds.

A. If the City fails to expend or encumber the appropriate impact fees within 10 years of when the fees were paid, or within such other time periods as established pursuant to UPMC 4.55.100, the current owner(s) of the property on which impact fees have been paid may receive a refund of such fees.

B. The City shall notify potential claimants by registered first class mail, postage paid, deposited with the United States Postal Service at the last known address of such claimants. A potential claimant must be the legal owner of record for the property.

C. Owners seeking a refund of impact fees must submit a written request for a refund to the City’s Finance Manager within one year of the date that the right to claim the refund arises or the date that notice is given, whichever is later.

D. Any impact fee 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 public facilities.

E. Refunds of impact fees under this section shall include interest earned on the impact fees.

F. When the City seeks to terminate any or all components of the impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest, shall be refunded pursuant to this section. Upon the finding that any or all fee requirements are to be terminated, the City shall provide 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. All funds available for refund shall be retained for a period of one year from the date of notice. At that time any remaining funds shall be retained by the City, but must be expended for appropriate public facilities. If there are no funds in the terminated account, the notice action is not required.

(Ord. 662 § 1 (Exh. A), 2015; Ord. 659 § 2, 2015; Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.120 Use of funds.

Pursuant to this chapter:

A. Impact fees collected for system improvements shall be used only in conformance with the most recent capital facilities plan adopted by the City Council.

B. Impact fees shall not be used to eliminate or reduce background deficiencies in existing facilities serving existing developments.

C. Impact fees shall not be used for maintenance or operation expenses.

D. Impact fees may be spent for public improvements for planned facilities, including but not limited to: planning, property acquisition, easement or access acquisition, engineering, and architectural design.

E. Impact fees may also be used to recoup public improvement costs previously incurred by the City to the extent that the new growth and development activity will be served by the previously constructed improvements or incurred costs.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.130 Review of impact fees.

The fee schedule set forth in this chapter shall be reviewed and may be amended by the City Council as it may deem necessary and appropriate in conjunction with the update of the capital facilities element of the City’s comprehensive plan.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.140 Establishment of service area.

The service area for parks shall be the corporate limits of the City of University Place.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.150 Park impact fees.

A park impact fee will be assessed to all new residential and the residential portion of mixed use development according to the type of residential land use in the amount adopted by ordinance of the City Council.

Any residential development type not listed above will be assessed the impact fee for the most similar type of development, as determined by the Director.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.160 Independent fee calculation.

A. If, in the judgment of the Director, none of the categories of fee amounts set forth in the schedules in UPMC 4.55.150 accurately reflects the impacts of the new development, the Director may conduct independent park impact fee calculations and the Director may impose alternative fees on a specific development based on those calculations.

B. An applicant may request an adjustment to the impact fees determined according to this chapter as follows: the fee payer shall prepare and submit to the Director an independent fee calculation for the development activity for which a building permit is sought. The document(s) submitted shall show the basis upon which the independent fee calculation was made and the proposed amount of the fee.

C. A fee payer submitting an independent fee calculation will be required to pay the department an administrative fee pursuant to the City’s fee schedule.

D. The calculations set forth in UPMC 4.55.150 are presumed valid for each form of development. The Director shall consider the independent fee calculation documentation submitted by the fee payer. The Director is not required to accept any documentation that the Director reasonably deems to be inaccurate or unreliable and may, in the alternative, require the fee payer to submit additional or different documentation for consideration. Based on the information within the Director’s possession, the Director is authorized to adjust the impact fee calculation to the specific characteristics of the development.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.170 Existing authority unimpaired.

Nothing in this chapter shall impair the authority of the City to require the fee payer or the proponent of a development activity to provide parks, park improvements, trails, open space or other park and/or recreational facilities under other provisions of this code; provided, that the exercise of this authority is consistent with the provisions of RCW 82.02.050(1)(c).

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.175 Appeals and payments under protest.

A. This subsection applies when an applicant seeks a permit to construct a portion of a development that has already been reviewed and approved, in other respects, pursuant to procedures that comply with Chapter 36.70B RCW. An example of this circumstance would be an application for a permit to build one house in a large subdivision that was previously approved. In this case, any appeal of the decision of the City with regard to the imposition of an impact fee or the amount of any impact fees, impact fee credit or impact fee refund must be taken before the Hearings Examiner pursuant to UPMC Title 22 in conjunction with an appeal of the underlying building permit.

B. This subsection (B) applies when an applicant seeks a permit in conjunction with other development approvals that may be subject to an open record hearing and closed record appeal pursuant to procedures that comply with Chapter 36.70B RCW. An example of this circumstance would be an application for a short plat and permit to build a new office park. In this case, any appeal of the decision of the City with regard to the imposition of an impact fee or the amount of any impact fees, impact fee credit, or impact fee refund must be made according to the process outlined for and in conjunction with the underlying development approval.

C. Any applicant may pay the impact fees imposed by this chapter under protest in order to obtain a permit.

D. Only the applicant has standing to appeal impact fee matters.

(Ord. 539 § 1 (Exh. A), 2008)

4.55.180 Severability.

If any portion of this chapter is found to be invalid or unenforceable for any reason, such findings shall not affect the validity or enforceability of any other section of this chapter.

(Ord. 539 § 1 (Exh. A), 2008; Ord. 204 § 1, 1998).

4.55.190 Park impact fee schedule.

The park impact fee authorized under this chapter shall be imposed as follows:

A. In 2009 and 2010, $1,200 shall be assessed for each single-family dwelling unit and $1,200 shall be assessed for each multifamily dwelling unit.

B. In 2011 and 2012, $2,000 shall be assessed for each single-family dwelling unit and $2,000 shall be assessed for each multifamily dwelling unit.

C. In 2013, $2,400 shall be assessed for each single-family dwelling unit and $2,330 shall be assessed for each multifamily dwelling unit, and in 2014, $2,800 shall be assessed for each single-family dwelling unit and $2,660 shall be assessed for each multifamily dwelling unit.

D. In 2015 and each year thereafter, $3,644 shall be assessed for each single-family dwelling unit and $2,660 shall be assessed for each multifamily dwelling unit.

(Ord. 617 § 2, 2012; Ord. 539 § 2 (Exh. B), 2008).

4.55.200 Park impact fee formula.

The following formula is used for generating the maximum allowable park impact fee:

The following words, terms, and phrases shall have the ascribed meanings for the purpose of the park impact fee formula:

“Acquisition cost per acre” means the cost per acre for new park land, based on the average assessed land value per acre of all of the parcels of land in the City of University Place.

Adjustment for Future Payments. Equal to the anticipated payments, this is a discount to the total development cost, used to calculate the PIF, based on anticipated payments.

“Adjustment rate” means the percentage of the parks acquisition and improvements discounted to account for other funding sources.

“Anticipated payments” means the projected total debt-service payments by the projected new residents from 2008 through 2014 that will be used to repay debt incurred to fund existing park system improvements.

“Cost per new resident” means the cost per person, based on the projected six-year population increase between 2008 and 2014, to acquire and improve new park system improvements to maintain the existing LOS.

“Improvement cost per acre” means the cost per acre to improve park land, based on the sum of the cost of the itemized park components included in the adopted Comprehensive Plan, adjusted for the number of each component needed based on the existing levels of service of each component type (active, passive, indoor) in the parks, recreation and open space plan and the added capacity that the projected new residents will place on the parks system.

“Level of service (LOS)” means the existing level of service standard for parks within the City of University Place, expressed as a number of acres of developed and undeveloped park land per 1,000 residents.

“New population” means the anticipated number of new city residents during the six-year period from 2009 to 2014, based on estimates included in the City of University Place Comprehensive Plan.

“Other funding” means total grant monies received and expended or encumbered for projects in the preexisting CIP during the six-year period from 2002 to 2007.

“Park acres needed” means the park land needed to maintain the existing LOS, calculated by multiplying the existing LOS by the projected new population in thousands.

“Persons per type of housing unit” means the average number of persons per single-family or multifamily housing unit, based on the unit under development for which the fee is being charged, based on the most recent decennial census data.

“Total cost” means the total actual cost of projects in the preexisting park CIP during the six-year period from 2002 to 2007.

“Total development cost” means the cost to acquire and improve the park land needed to maintain the existing LOS.

(Ord. 539 § 3 (Exh. C), 2008).