Chapter 3.38
SCHOOL IMPACT FEES

Sections:

3.38.010    Findings.

3.38.020    Authority.

3.38.030    Definitions.

3.38.040    Exemptions.

3.38.050    Exemptions for low- and moderate-income housing.

3.38.060    Assessment of school impact fees.

3.38.070    Procedures for collecting school impact fees.

3.38.080    School impact fees imposed on final plat approval.

3.38.090    Determination of the school impact fee, adjustments and exemptions.

3.38.100    Refunds.

3.38.110    Appeal of a school impact fee determination.

3.38.120    Interlocal agreement between the City and district.

3.38.130    Review of schedule and school impact fees.

3.38.140    District’s capital facilities plan.

3.38.150    Annual report of capital improvements.

3.38.160    School impact fee accounts.

3.38.170    Existing authority unimpaired.

3.38.010 Findings.

The City Council finds that new residential growth and development in the City will create additional demand and need for public school capacity and finds that new residential growth and development should pay a proportionate share of the cost of facilities needed to serve the new growth and development. (Ord. 674 § 2 (Att. A), 2018)

3.38.020 Authority.

This chapter is adopted as an official control to implement Woodinville’s Comprehensive Plan policies, the Growth Management Act, RCW 82.02.050 through 82.02.100, and the State Subdivision Act, Chapter 58.17 RCW. This chapter is also necessary to address identified impacts of new development on schools, in order to protect the public health, safety and welfare. (Ord. 674 § 2 (Att. A), 2018)

3.38.030 Definitions.

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

(1) “Act” means the Growth Management Act, Chapter 36.70A RCW and Chapter 365-196 WAC.

(2) “Building permit” means the official document or certification that is issued by the City and that authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, tenant improvement, demolition, moving or repair of a building or structure.

(3) “Capital facilities plan” means the District’s six-year capital facilities plan and such amended plans as adopted by the City.

(4) “City” means the City of Woodinville.

(5) “Council” means the City Council of Woodinville.

(6) “Developer” means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.

(7) “Development activity” means any residential construction or expansion of a residential building, structure or use, any change in use of a residential building or structure, or any change in the use of residential land that creates additional demand for school facilities.

(8) “Director” means the Director of Development Services or designee.

(9) “District” means the Northshore School District No. 417.

(10) “Dwelling unit” means one or more rooms designed for occupancy by a person or family for living, cooking, and sleeping purposes. This term includes all detached, attached or stacked dwelling units, mobile and manufactured homes, and includes senior citizen assisted dwelling units intended for occupancy by one or more persons. For the purposes of this chapter, an accessory dwelling unit as determined pursuant to WMC Title 21, Zoning, is not charged a separate impact fee.

(11) “Interlocal agreement” means the agreement between the District and the City, governing the operation of the school impact fee program and describing the relationship, duties and liabilities of the parties.

(12) “Impact fee” means a payment of money imposed upon development on an applicant prior to issuance of a building permit as a condition of granting a building permit to pay for public facilities needed to serve new residential growth and development. “Impact fee” does not include a reasonable permit or application fee.

(13) “Low-income and moderate-income housing” means housing affordable under Federal standards to households with annual incomes at or below 80 percent of the County median income.

(14) “Public facilities” under this chapter means capital facilities owned or operated by the District.

(15) “Standard of service” means the standard adopted by the District which identifies the program year, the class size by grade span and considering the requirements of students with special needs, the number of classrooms, the types of facilities the District believes will best serve its student population, and other factors as identified by the District. (Ord. 674 § 2 (Att. A), 2018)

3.38.040 Exemptions.

The following development activities are exempt from the requirements to pay school impact fees:

(1) Replacement, alteration, expansion, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional units are created, the use is not changed, and subsection (3) of this section does not apply. Replacement must occur within one year of the demolition or destruction of the prior dwelling unit.

(2) Reconstruction, remodeling or construction of the following facilities, subject to the recording of a covenant or recorded declaration of restrictions precluding use of the property for other than the exempt purpose; provided, that if the property is used for a nonexempt purpose, then the school impact fees then in effect shall be paid.

(a) Shelters or dwelling units for temporary placement, which provide housing to persons on a temporary basis for not more than four weeks;

(b) Construction or remodeling of transitional housing facilities or dwelling units that provide housing to persons on a temporary basis for not more than 24 months, in connection with job training, self-sufficiency training and human services counseling, the purpose of which is to help persons make the transition from homelessness to placement in permanent housing; and

(c) Any form of housing for the elderly, including nursing homes, retirement centers, and any type of housing units for persons age 55 and over, which have recorded covenants or recorded declaration of restrictions precluding school-aged children as residents in those units.

(3) Rebuilding of legally established dwelling unit(s) destroyed or damaged by fire, flood, explosion, act of God or other accident or catastrophe; provided, that such rebuilding takes place within a period of five years and no additional dwelling units are created.

(4) Condominium projects in which existing dwelling units are converted into condominium ownership and where no new dwelling units are created.

(5) Any development activity that is exempt from the payment of an impact fee pursuant to RCW 82.02.100, due to mitigation of the same system improvement under the State Environmental Policy Act.

(6) Any development activity for which school impacts have been mitigated pursuant to a condition of plat approval to pay fees, dedicate land or construct or improve school facilities, unless the condition of the plat approval provides otherwise; provided, that the condition of the plat approval predates the effective date of fee imposition.

(7) Any development activity for which school impacts have been mitigated pursuant to a voluntary agreement entered into with the District to pay fees, dedicate land or construct or improve school facilities, unless the terms of the voluntary agreement provide otherwise; provided, that the agreement predates the effective date of fee imposition.

(8) Any development activity subject to paying school impact fees to the extent that school impact fees have previously been paid for such development activity. (Ord. 674 § 2 (Att. A), 2018)

3.38.050 Exemptions for low- and moderate-income housing.

In addition to the exemptions in WMC 3.38.040, the following shall be exempt from the requirement to pay school impact fees:

(1) Low- or moderate-income housing projects developed or owned by public housing agencies or private nonprofit housing developers.

(2) Residential housing units dedicated for occupancy by low- or moderate-income households and whose rents or purchase price is affordable to low- or moderate-income persons under the regulations of the U.S. Department of Housing and Urban Development or its successor.

(3) Individual low- or moderate-income home purchases (as defined in the current King County Comprehensive Housing Affordability Strategy (CHAS)) by households who are purchasing homes with prices within their eligibility limits based on standard lending criteria.

(4) As a condition of receiving an exemption under this section, the owner shall execute and record in King County’s real property title records a City-drafted lien, covenant or other contractual provision against the property that provides that the proposed housing unit or development will continue to be used for low- or moderate-income housing and remain affordable to those households under the regulations of the U.S. Department of Housing and Urban Development.

(a) The term of this provision shall be 10 years for individual owners and 15 years for private and private nonprofit developers/builders.

(b) The lien, covenant, or other contractual provision shall run with the land and apply to subsequent owners and assigns.

(c) In the event that the housing unit(s) is no longer used for low- or moderate-income housing during the term of the provision, the owner shall pay the applicable impact fees in effect at the time of conversion into the City’s account for paying low- and moderate-income impact fees.

(5) Any claim or request for an exemption under this section shall be made no later than the time a building permit application is submitted to the City. If a building permit is not required for the development activity, the claim shall be made when the school impact fee is tendered. Any claim not made when required by this section shall be deemed waived.

(6) If claims or requests for exemptions under this section exceed the funds the Northshore School District budgeted for the payment of impact fees for low- and moderate-income housing, this section shall not apply to claims or requests for exemptions under this section made after the budgeted funds were committed or allocated until additional funds are budgeted. (Ord. 674 § 2 (Att. A), 2018)

3.38.060 Assessment of school impact fees.

(1) Impact fees are based on the District’s capital facilities plan adopted by reference by the City Council as part of the Capital and Public Facilities Element of the Woodinville Comprehensive Plan.

(2) Unless exempt pursuant to WMC 3.38.040 or 3.38.050, school impact fees shall be imposed upon development activity in accordance with the following schedule:

Housing Type

Impact Fee

Per Unit

Single-family (Detached, mobile homes, manufactured homes)

$17,080

Dwelling Unit

Townhouse (Attached, not stacked)

$17,080

Dwelling Unit

Multifamily (Attached, stacked)

$0

Dwelling Unit

Multifamily (2+ bedroom)

$1,504

Dwelling Unit

(3) At the time complete application is made for a development activity, the school impact fee shall be imposed based on the impact fee schedule in effect at the time of such application.

(4) Impact fees shall be paid in accordance with conditions of approval with respect to any application for preliminary plat approval or multifamily development which has been approved subject to conditions requiring the payment of impact fees consistent with this chapter. (Ord. 702 § 1, 2020; Ord. 692 § 1, 2019; Ord. 674 § 2 (Att. A), 2018)

3.38.070 Procedures for collecting school impact fees.

(1) The City shall collect school impact fees from any applicant where such development activity requires final plat approval conditioned upon payment of such fees, or issuance of a building permit for residential development not exempt pursuant to WMC 3.38.040 or 3.38.050.

(2) The applicant shall make payment of the school impact fees prior to the City issuing any permits for development activity that is subject to school impact fees.

(3) Impact fees may be paid under protest and subject to appeal as set forth in WMC 3.38.110.

(4) An applicant may request to defer payment of school impact fees for single-family residential construction pursuant to the same procedures and requirements applicable to park impact fees and traffic impact fees as established in WMC 3.36.090 and 3.39.090, respectively. (Ord. 692 § 2, 2019; Ord. 674 § 2 (Att. A), 2018)

3.38.080 School impact fees imposed on final plat approval.

(1) For plats applied for after February 28, 2001, 50 percent of the impact fees calculated to be imposed on the dwelling units in the plat shall be imposed and collected from the applicant prior to final plat approval.

(2) The impact fee schedule in effect at the granting of final plat approval shall be used for calculating the fees in subsection (1) of this section.

(3) The balance of the impact fee for such plat shall be allocated to the dwelling units in the project and shall be collected when the building permits are issued.

(4) At the time of final plat approval, the applicant shall be required to place a covenant on the recorded plat and include in the deed for each affected lot within the plat the requirement to pay the balance of the fee when the building permit is issued.

(5) Final plat approval shall not be granted, nor shall the City issue the required building permit or mobile home permit, nor shall the City grant the required site plan approval for a mobile home park unless and until the impact fees set forth in the impact fee schedule have been paid in accordance with this section.

(6) An applicant may request to defer payment of school impact fees for final plats pursuant to the same procedures and requirements applicable to park impact fees and traffic impact fees as established in WMC 3.36.090 and 3.39.090, respectively.

(7) This section does not apply to any plats having four or fewer dwelling units subject to school impact fees. (Ord. 674 § 2 (Att. A), 2018)

3.38.090 Determination of the school impact fee, adjustments and exemptions.

(1) The Director shall determine a developer’s impact fee or exemption in accordance with this chapter.

(2) Arrangement may be made for later payment of the school impact fee with the approval of the District only if the District determines that it will be unable to use or will not need the payment until a later time; provided, that sufficient security, as determined by the District, is provided to assure payment. Security shall be made to and held by the District, which will be responsible for tracking and documenting the security interest.

(3) The school impact fee amount established in the schedule shall be reduced by the amount of any school impact fee payment previously made for the lot or development activity in question, either as a condition of approval or pursuant to a voluntary agreement.

(4) Whenever a developer is granted approval subject to a condition that the developer actually provide a school facility acceptable to the District, the developer 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 the documentation confirmed after the construction is completed to assure that an accurate credit amount is provided. If construction costs are less than the calculated fee amount, the difference remaining shall be chargeable as a school impact fee.

(5) The school impact fees may be adjusted, if one of the following circumstances exist; provided, that the discount set forth in the fee formula fails to adjust for the error in the calculation or fails to ameliorate the unfairness of the fee:

(a) The developer demonstrates that a school impact fee assessment was improperly calculated; or

(b) Unusual circumstances identified by the developer demonstrate that if the required impact fee amount was applied to the development, it would be unfair or unjust.

(6) In cases where a developer requests an independent fee calculation, adjustment exception, or a credit pursuant to RCW 82.02.060(3), the Director shall consult with the District and the District shall advise the Director prior to a final determination of the impact fee.

(7) A developer may provide studies and data to demonstrate that any particular factor used by the District may not be appropriately applied to the development proposal. (Ord. 674 § 2 (Att. A), 2018)

3.38.100 Refunds.

(1) The current owner of property on which a school impact fee has been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within the time period established in and pursuant to WMC 3.38.160(5) on school facilities intended to benefit the development activity for which the impact fees were paid. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis.

(2) On behalf of the City, the District shall notify potential claimants by first-class mail deposited with the United States Postal Service addressed to the owner of the property as shown in the King County tax records.

(3) An owner’s request for a refund must be submitted to the District in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever date is later.

(4) Any school impact fees that are not expended or encumbered by the District in conformance with the capital facilities plan within these time limitations, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section.

(5) Refunds of school impact fees shall include any interest earned on the impact fees.

(6) Should the City seek to terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which a school impact fee was paid. (Ord. 674 § 2 (Att. A), 2018)

3.38.110 Appeal of a school impact fee determination.

Any appeal of a determination by the Director in imposing school impact fees or impact fee credit, or impact fee adjustments, may be taken before the Hearing Examiner pursuant to WMC 21.81.020 in conjunction with an appeal of the underlying building permit. The right to such an administrative appeal is triggered by the City’s issuance or denial of a building permit. (Ord. 706 § 7, 2020; Ord. 674 § 2 (Att. A), 2018)

3.38.120 Interlocal agreement between the City and district.

As a condition of the City’s authorization to implement this chapter, the City and district shall enter into an interlocal agreement governing the operation of the school impact fee program and describing the relationship and liabilities of the parties thereunder. The interlocal agreement shall provide for the collection of impact fees by the District on behalf of the City. (Ord. 674 § 2 (Att. A), 2018)

3.38.130 Review of schedule and school impact fees.

(1) The district shall annually submit to the City a capital facilities plan or an update of a previously adopted plan, which meets the requirements of the Act and this chapter. The materials submitted by the District shall include proposed school impact fee amounts for single-family and multifamily dwelling units.

(2) The City Council shall review on at least an annual basis the District’s submitted six-year capital facilities plan. The review shall occur in conjunction with any update of the capital and public facilities plan element of the City’s Comprehensive Plan.

(3) The schedule in WMC 3.38.060 may be amended to reflect changes to the capital facilities plan. Amendments to the schedule for this purpose shall be adopted by the Council. (Ord. 674 § 2 (Att. A), 2018)

3.38.140 District’s capital facilities plan.

Pursuant to WMC 3.38.130(1), at a minimum the following information shall be provided to the City by the District consistent with RCW 82.02.060 and WAC 365-196-850:

(1) The district’s student enrollment projections over the next six years, its current enrollment and the District’s enrollment projections and actual enrollment from the previous year;

(2) The district’s adopted standard of service;

(3) The district’s overall capacity over the next six years based on the following:

(a) The number of students the District’s facilities can accommodate district-wide compared with the District’s standard of service; and

(b) The available capacity from school facilities planned, but not yet built;

(4) An inventory of the District’s existing facilities, including permanent, transitional and relocatable facilities;

(5) A forecast of future needs for school facilities based on the standard of service and the District’s enrollment projections;

(6) An identification of deficiencies in school facilities serving the student populations;

(7) To the extent deficiencies in the existing district’s facilities are identified, the source of funding other than impact fees for building or acquiring the necessary facilities to serve the existing student population in order to eliminate the deficiencies within a reasonable period;

(8) Facilities to meet future demand based on the standard of service;

(9) If sufficient funding is not projected to be available to fully fund a capital facilities plan, the reason for the funding gap, and identify all sources of funding that the District plans to use to meet the standard of service;

(10) In the financing plan component of a capital facilities plan, the District shall plan on a six-year horizon and shall demonstrate its best efforts by taking the following steps:

(a) Establish a six-year financing plan and propose the necessary bond issues and levies required by and consistent with that plan and as approved by the school board consistent with RCW 28A.53.020, 84.52.052 and 84.52.056; and

(b) Apply to the State for funding and comply with the State requirements for eligibility to the best of the District’s ability.

(11) Any other long-range projects planned by the District. (Ord. 674 § 2 (Att. A), 2018)

3.38.150 Annual report of capital improvements.

The district shall submit an annual report to the City Council showing the capital improvements which were financed in whole or in part by the impact fees. (Ord. 674 § 2 (Att. A), 2018)

3.38.160 School impact fee accounts.

(1) Impact fee receipts shall be earmarked specifically and retained in a special interest-bearing account established by the District solely for the District’s school impact fees.

(2) All interest from the account shall be retained in the account and expended for the purpose or purposes for which impact fees were imposed.

(3) Annually, the District shall prepare a report on the impact fee account showing the source and amount of all moneys collected, earned or received, and capital or system improvements that were financed in whole or in part by impact fees. The district shall submit a copy of this report to the City Council.

(4) Impact fees for the District’s system improvements shall be expended by the District only in conformance with the capital facilities plan element of the City’s Comprehensive Plan.

(5) Impact fees shall be expended or encumbered by the District for a permissible use within 10 years of receipt by the District, unless there exists an extraordinary or compelling reason for fees to be held longer than 10 years.

(a) Such extraordinary or compelling reasons shall be identified to the City by the District in a written report.

(b) The City Council shall identify the District’s extraordinary and compelling reasons for the fees to be held longer than 10 years in the Council’s own written findings.

(6) Upon the finding that any or all school impact fee requirements are to be terminated, the City shall publish notice of such termination and the availability of the refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first-class mail addressed to the owner of the property as shown in the County tax records.

(7) 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 District, but must be expended by the District, consistent with the provisions of this section.

(8) The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

(9) A developer may request and shall receive a refund, including interest earned on the impact fees, when:

(a) The developer has not received final plat approval, the building permit, the mobile home permit, the site plan approval, or final approval for the development activity as required by statute or City Code including the State Building Code;

(b) No impact on the District has resulted where:

(i) “Impact” shall be deemed to include cases where the District has expended or encumbered the impact fees in good faith prior to the application for a refund; and

(ii) In the event that the District has expended or encumbered the fees in good faith, no refund shall be forthcoming.

(c) If within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner shall be eligible for a credit, provided:

(i) The owner must petition the District and provide receipts of school impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof; and

(ii) The district shall determine whether to grant a credit, and such determinations may be appealed by following the procedures set forth in WMC 3.38.110.

(10) Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the District on invested funds throughout the period during which the fees were retained. (Ord. 674 § 2 (Att. A), 2018)

3.38.170 Existing authority unimpaired.

Nothing in this chapter shall preclude the City from requiring the applicant for a building permit 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). (Ord. 674 § 2 (Att. A), 2018)