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HomeMy WebLinkAboutORD 5794 CITY OF RENTON, WASHINGTON ORDINANCE N0. 5794 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTIONS 4-1-160 AND 4-1-190 OF CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY COMBINING THE REGULATIONS FOR ALL IMPACT FEES INTO ONE SECTION. WHEREAS, the Washington State Legislature amended regulations to require jurisdictions to allow school impact fees to be deferred; and WHEREAS, this matter was referred to the Planning Commission for investigation and study; and WHEREAS, the Planning Commission held a public hearing on January 6, 2016, and considered all relevant matters, and all parties were heard appearing in support or in opposition; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES � ORDAIN AS FOLLOWS: SECTION I. Section 4-1-160, School Impact Mitigation Fees, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of the Renton Municipal Code, is hereby deleted in its entirety. SECTION II. Section 4-1-190, Impact Fees, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of the Renton Municipal Code, is hereby amended as follows: 4-1-190 IMPACT FEES: A.TITLE: 1 ORDINANCE N0. 5794 This Section shall be hereinafter known as "impact fees." B. PURPOSE AND INTENT: The purpose and intent of this Section is to authorize the collection of impact fees for transportation, parks�a�fire protection, and schools and to provide for certain other matters in connection therewith. C. FINDINGS AND AUTHORITY: The Renton City Council (hereinafter referred to as "Council") hereby finds and determines that development activities, including but not limited to new residential, commercial, retail, office, and industrial development in the City of Renton (hereinafter referred to as "City") will create additional demand and need for system improvements in the City and school facilities within its school districts, and the Council finds that such new growth and development should pay a proportionate share of the cost of system improvements needed to serve the new growth and development. In the "Rate Study for Impact Fees for Transportation, Parks and Fire Protection," City of Renton, dated August 26, 2011 ("Rate Study"), hereby incorporated by this reference, the City has documented its extensive research concerning the procedures for measuring the impact of new developments on public facilities. The Rate Study utilizes methodologies for calculating impact fees that are consistent with the requirements of RCW 82.02.060(1). A copy of the most current version of the Rate Study shall be kept on file by the Renton City Clerk and will be available to the public for review. 2 � ORDINANCE N0. 5794 Therefore, pursuant to chapter 82.02 RCW, the Council adopts this Section to assess impact fees for transportation, parks and fire protection, as well as school impact fees for the Issaquah, Kent, and Renton School Districts. The provisions of this Section shall be liberally construed in order to carry out the purposes of the Council in providing for the assessment of impact fees. D. DEFINITIONS: The words and terms defined below shall have the following meanings for the purposes of this Section, unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090�5-F� ��;�+� ��^"„ "^ �m^^�'^a, or given their usual and customary meaning. 1. "Administrator" means the Administrator or designee of the Department of Community and Economic Development. 2. "Applicant" for the purposes of this Section includes an entitv that controls the applicant, is controlled bv the applicant, or is under common control with the applicant. �3. "Building permit" means an official document or certification which is issued by the City and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving, or repair of a building or structure or any portions thereof. �4. "Capital facilities plan" means the capital facilities element of the City's Comprehensive Plan adopted pursuant to chapter 36.70A RCW, �� ;�� , and such plan as amended. 3 ORDINANCE N0. 5794 45. "City" means the City of Renton. 6. "Classrooms" means educational facilities of each respective school district that the district determines are necessarv to best serve its student population and that are re4uired to house students for its basic educational pro�ram. Specialized facilities as identified bv the school district. includin� but not limited to �vmnasiums, cafeterias, libraries, administrative offices, and child care centers, shall not be counted as classrooms. 7. "Construction Cost Per Student" means the estimated cost of construction of a permanent school facilitv in the school district for the �rade span of school to be provided, as a function of the school district's desi�n standard per�rade span and the requirements of students with special needs. I §8. "Council" means the Renton City Council. 69. "Department" means the City's Department of Community and Economic Development. �10. "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that generates the need for additional public facilities. 811. "Development approval" means any written authorization from the City of Renton which authorizes the commencement of a development activity. 12. "Elderlv" means a person a�ed sixtv-two (62) or older. 4 ORDINANCE N0. 5794 913. "Encumbered" means to reserve, set aside, or otherwise earmark impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for system improvements. 14A. "Feepayer" is any person, collection of persons, or department or bureau of any governmental entity or municipal corporation commencing a development activity which creates the demand for additional system improvements and which requires the issuance of a building permit or a permit for a change of use. "Feepayer" includes an applicant for an impact fee credit. 15�. "Fee schedule" is the Citv of Renton3 Fee Sschedule ^{�� detailin� amounts to be paid for various permits, licenses, etc., that is published, kept on file, and made available to the public on the Citv's website and in the office of the Renton City Clerk. 1�6. "Fire protection" shall mean fire protection facilities, including but not limited to fire stations, fire apparatus, and any furnishings and equipment that can be capitalized. 17. "Grade Span" means the cate�ories into which a school district �roups its �rades of students, i.e., elementarv school, middle or iunior hi�h school, and hi�h school. 1�8. "Hearing Examiner" shall mean that person or persons acting as the Renton Hearing Examiner. 149. "Impact fee" means a payment of money imposed by the City of Renton on development activity pursuant to this Section as a condition of 5 I' ORDINANCE NO. 5794 granting development approvai. An impact fee does not include a reasonable permit fee, an application fee, the administrative fee for collecting and handling impact fees, the fee for reviewing independent fee calculations, or the fee for deferring payment of impact fees. �20. "Impact fee account(s)" means the separate accounting structure(s) within the City's established accounts, which structure(s) shall identify separately earmarked funds and which shall be established for the impact fees that are collected. The account(s) shall be established pursuant to s+�sec�ie� 4-1-190.M ^�*'��� c^�*�^^, , ;* ^ ;�+� ^ . "^ , ^a^a, and shall comply with the requirements of RCW 82.02.070�;�:� �. :~�•,L-be ��. �21. "Independent fee calculation" means the transportation impact fee calculation, and/or economic documentation prepared by a feepayer, to support the assessment of a transportation, parks or fire protection impact fee other than by the use of the rates published in the City's #Fee sSchedule, or the calculations prepared by the department where none of the fee categories or fee amounts in the City's #Fee sSchedule accurately describe or capture the impacts of the development activity on public facilities. 3�22. "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. 6 ORDINANCE NO. 5794 �823. "Parks" shall mean parks, open space, and recreation facilities including but not limited to land, improvements, and any furnishings and equipment that can be capitalized. 24. "Permanent School Facilities" means the facilities of a school district with a fixed foundation which are not relocatable facilities. ' �25. "Permit for change of use or change of use permit" means an official document which is issued by the City which authorizes a change of use of an existing building or structure or land. 2A6. "Project improvements" means site improvements and facilities that are planned and designed to provide service for a particular development project, 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 a capital facilities plan adopted by the Council shall be considered a project improvement. 2�7. "Public facilities," for purposes of this Section, means the following capital facilities owned or operated by the City of Renton, school districts, or other governmental entities: public streets and roads, public parks, open space and recreation facilities and fire protection facilities. 2�8. "Rate Study" means the "Rate Study for Impact Fees for Transportation, Parks and Fire Protection," City of Renton, dated August 26, 2011, or as hereinafter amended. 7 ORDINANCE N0. 5794 29. "Relocatable Facilitv" means anv factorv-built structure, transportable in one or more sections, such as that which is desi�ned to be used as an education space needed to prevent the overbuildin� of school facilities to meet the needs of service areas within a school district, or to cover the �ap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities. 30. "Relocatable Facilities Cost Per Student" means the estimated cost of purchasin� and sitin� a relocatable facility in a school district for the �rade span of school to be provided, as a function of a school district's desi�n standard per �rade span and the requirements of students with special needs. 31. "School Capital Facilities Plan" means each respective school district's Capital Facilities Plan adopted bv the School Board, which shall consist of: a. A forecast of future needs for school facilities based on the school district's enrollment proiections; b. The lon�-ran�e construction and capital improvements proiects of the school district; c. The schools under construction or expansion: d. The proposed locations and capacities of expanded or new school facilities; e. At least a six (6) vear Financin� Plan Component, updated as necessarv to maintain at least a six (6) vear forecast period, for financin� needed school facilities within proiected fundin� levels, and identifvin� sources of 8 ORDINANCE NO. 5794 financin� for such purposes, includin� bond issues authorized bv the voters and j proiected bond issues not vet authorized bv the voters: and f. Any other lon�-ran�e proiects planned bv the school district. 32. "School District Desi�n Standard" means the space reauired, bv �rade span, includin�the requirements of students with special needs, which is needed in order to fulfill the educational �oals of the school district as identified in each respective school district's capital facilities plan. 33. "Site Cost Per Student" means the estimated cost of a site in a school district for the �rade span of school to be provided, as a function of the school district's desi�n standard per �rade span and the requirements of students with special needs. 34. "Standard of Service" means the standard adopted bv a school district which identifies the pro�ram year, the class size bv �rade span and the requirements of students with special needs, the number of classrooms, the tvpes of facilities the school district believes will best serve its student population, and other factors as identified bv a school district. The school district's standard of service shall not be adiusted for anv portion of the classrooms housed in relocatable facilities which are used as transitional facilities or for anv specialized facilities housed in relocatable facilities. Except as otherwise defined bv the School Board pursuant to a Board resolution, "transitional facilities" shall mean those facilities that are used to cover the time required for the construction of permanent school facilities; provided, that the 9 ORDINANCE N0. 5794 school district has the necessary financial commitments in place to complete the permanent school facilities called for in the school district's capital facilities nlan. �35. "Street" or "road" means a public right-of-way and all related appurtenances, including lawfully required off-site mitigation, which enables motor vehicles, transit vehicles, bicycles, and pedestrians to travel between destinations. For purposes of this Section, public streets and roads are collectively referred to as "transportation." 36. "Student Factor" means the number derived bv a school district to describe how manv students of each �rade span are expected to be �enerated bv a dwellin� unit. Student factors shall be based on a school district's record of avera�e actual student �eneration rates for new developments constructed over a period of not more than five (5) vears prior to the date of the fee calculation: provided, that if such information is not available in the school district, data from adiacent districts, districts with similar demo�raqhics, or countvwide avera�es mav be used. Student factors must be separatelv determined for sin�le familv and multi-familv dwellin� units, and for�rade spans. �437. "System improvements," for purposes of this Section, means public facilities that are included in the City of Renton's capital facilities plan, and such plan as amended, and are designed to provide service to the community at large, in contrast to project improvements. �38. "Transportation" means public streets and roads and related appurtenances. 10 ORDINANCE NO. 5794 E. ESTABLISHMENT OF SERVICE AREA: 1. The City hereby establishes, as the service area for impact fees, the City of Renton, including all property located within the corporate city limits. 2. The scope of the service area is hereby found to be reasonable and established on the basis of sound lannin and en ineerin rinci les and p g g g p p , consistent with RCW 82.02.06n, �� �+ ^�:�*� ^� �,., �^ ,�^^a^a, as described in the Rate Study. F. IMPACT FEES METHODOLOGY AND APPLICABILITY: The transportation impact fees in the City3 of Renton F#ee Sschedule are enerated from the formulae for calculatin trans ortation im act fees set forth g g p P in the Rate Study. Except as otherwise provided for independent fee calculations in ����� RMC 4-1-190.H ^�}"�� �^^*�^^, exemptions in ����„ RMC 4-1- 190.1 ^{+"�� �^^*�^^, and credits in s�sec�ie+} RMC 4-1-190.J �{*"�< <��+;^^, , ' +"^., ^���* ^� m", "^ �^^^^a^a, all new development activity in the City will be charged impact fees applicable to the type of development listed in the City3 of Renton F#ee Sschedule. I G. COLLECTION OF IMPACT FEES: 1. Transportation. Parks, and Fire Impact Fees: a.�-Applicabilitv: The City shall collect impact fees, based on the rates in the City=s of Renton F#ee Sschedule, from any applicant seeking development approval from the City for any development activity within the City, when such 11 ORDINANCE N0. 5794 development activity requires the issuance of a building permit or a permit for a change in use, and creates a demand for additional public facilities. b. �-Amount: Maximum allowable impact fees are established by the Rate Study. The rates to be charged by the City are listed in the City=�of Renton F#ee Sschedule. 2. School Impact Fees: a. Applicabilitv: The Citv shall collect impact fees, based on the rates in the Citv of Renton Fee Schedule, from all applicants seekin� development approval from the Citv for anv residential development activitv in that portion of the Citv located within each respective school district's boundaries. b. Basis and Amount: The maximum allowable fees shall be based on a School Capital Facilities Plan developed bv the approqriate school district and approved bv the School Board, and adopted bv reference bv the Citv as part of the Capital Facilities Element of the Citv's Comprehensive Plan. The rates to be char�ed are listed in the Citv of Renton Fee Schedule. c. Adiustment bv Council: The Citv Council mav adiust the fees, as it sees fit to take into account local conditions such as, but not limited to, qrice differentials throu�hout each respective school district in the cost of new housin�, school occupancv levels, and the percent of each school district's Capital Facilities Bud�et, which will be expended locallv. d. Classification bv Dwellin� Tvpe: Separate fees shall be calculated for sin�le family and multi-familv dwellin�s, and separate student �eneration ', 12 � ORDINANCE NO. 5794 rates must be determined bv each school district for each tvpe of dwellin�. For purposes of this Section, mobile homes shall be treated as sin�le familv dwellin�s: duqlexes and Accessorv Dwellin� Units shall be treated as multi-familv dwellin�s. e. Credit for Tax Contributions: The formula in Attachment A to Ordinance 4808 provides a credit for the anticipated tax contributions that would be made bv the development based on historical levels of voter suqport for bond issues in a school district. 3. Chan�es in Use or Tenancv: When an impact fee applies to a change of use permit, the impact fee shall be the applicable impact fee for the land use category of the new use, less any impact fee previously paid for the land use category of the prior use. For purposes of this provision, a change of use should be reviewed based on the land use category provided in the Rate Study that best captures the broader use of the property under development. Changes in use or tenancy, if consistent with the general character of the building or building aggregations (i.e., "industrial park," or "specialty retail") should not be considered a change in use that is subject to an impact fee. Further, minor changes in tenancies that are consistent with the general character of the included structure, building, or previous use should not be considered changes in use subject to an impact fee. If no impact fee was paid for the prior use, the impact fee for the new use shall be reduced by an amount equal to the current impact fee rate for the prior use. Vacant buildings shall be assessed as if in the 13 ORDINANCE N0. 5794 most recent legally established use as shown on a locally owned business license or development permit documents. 4. Mixed Use: For mixed use developments, impact fees shall be imposed for the proportionate share of each land use, based on the applicable measurement in the impact fee rates in the City3 of Renton F#ee S�chedule. 5. Timin� of Assessment and Collection: Impact fees shall be determined at the time the complete application for a building permit or a permit for a change in use is submitted using the impact fees then in effect. Impact fees shall be due and payable before the building permit or permit for a change of use is issued by the City. 6. Documentation of Credit Required: Feepayers allowed credits prior to the submittal of the complete building permit application or an application for a permit for a change of use shall submit, along with the complete application, a copy of the letter prepared by the Administrator or school district superintendent setting forth the dollar amount of the credit allowed. Impact fees, as determined after the application of any credits, shall be collected from the feepayer no later than the time a building permit or permit for a change of use is issued. 7. Deferral for Subdivisions, Short Subdivisions, and Planned Unit Developments: An applicant for residential subdivision, short subdivision, or planned unit development may defer payment of impact fees for all of the dwelling units to be created in the development until the earlier ^�,� 14 ORDINANCE N0. 5794 ^�'^^�'�� a,.,� ,�^� *"^ a�+^ ^F the time of closin� of the first sale of a single detached dwelling unit, condominium unit, or a multifamily residential building or eighteen (18) months after the issuance of the original building permit, but only if before recording the subdivision or short subdivision,the applicant: a. Submits to the Administrator a signed and notarized deferred impact fee application and acknowledgement form, which includes the legal description, tax account number, and address of each individual in the development; b. Records at the applicant's expense a covenant and lien that complies with the requirements of ����� RMC 4-1-190.G.8.b.i through vii ��+�•� c,,,.+•„ • and �� c. Pays the applicable non-refundable administrative fee. 8. Deferral for Sin�le Familv, Condominium, and Multi-Familv Dwellin�s: A building permit applicant may defer payment of impact fees for a single detached dwelling unit, condominium unit, or all of the dwelling units in a multifamily residential building until the earlier of �;�: ����;��T�;�T� ,�+�r +"^ a,+^ ^� +"^ the time of closin� of the first sale of a single detached dwelling unit, a condominium unit or a multifamily residential building or eighteen (18) months after issuance of the original building permit, but only if before issuance of the building permit, the applicant: a. Submits to the Administrator a signed and notarized deferred impact fee application and acknowledgement form for each single detached 15 ORDINANCE NO. 5794 dwelling unit, condominium unit or all of the dwelling units in a multi-family residential building for which the applicant wishes to defer payment of the impact fees; and b. Records at the applicant's expense a covenant and lien in the amount of the deferred impact fee(sl and that includes the le�al description, tax account number, and address of the propertv that: i. Requires payment of the impact fees to the City at the earlier of �^.,^^ �" ��'^^�'�� �',.,� ,�*^� *"^ a,*^ ^{ the time of closin� of the first sale or eighteen (18) months after issuance of the original building permit; and ii. Provides that if the impact fees are paid through escrow at closing of sale, in the absence of an agreement between the buyer and the seller to the contrary, the impact fees shall be paid from the seller's proceeds; and iii. Provides that the seller bears strict liability for the payment of the impact fees; and iv. Requires the seller or seller's agent of property subject to the covenant and lien to provide written disclosure of the covenant and lien to a purchaser or prospective purchaser. Disclosure of the covenant must include the amount of impact fees payable and that the fees are to be paid to the City e�#e a���no later than the closin�date; and v. Makes the applicant legally liable for payment of the impact fees if the fees are not paid by the earlier of ����^^ ��� ���^^a,- a�„� ,�*^� *"^ 16 ORDINANCE N0. 5794 I' �e# the time of closin� of the first sale or eighteen (18) months after the building permit has been issued; and vi. Is si�ned bv all owners of the proaertv as listed on a current title report, with all si�natures acknowled�ed as reauired for a deed; and vii. Is iunior and subordinate to one mort�a�e for the purpose of construction upon the same real propertv �ranted bv the person who applied for the deferral of impact fees. 9. Pavment Methods: Payment of impact fees deferred under this subsection shall be made by cash, escrow company check, cashier's check or certified check. 10. Lien Release: Upon receipt of payment of impact fees deferred under this subsection, the City shall execute a lien release for each single detached dwelling unit, condominium unit, or multifamily residential building for which the impact fees have been received. "^'^« , ^�^^^,^^* *^ +"^ � ^+�,-., � ��o6he� �e�ween ��Ter dll��c��ef, ��}(.i5e�c.", �: :�:� ^��^'�` ^, The propertv owner at the time of the release shall be responsible for recording the lien release. 11. Foreclosure bv Citv: If impact fees are not qaid, in accordance with the provisions of this subsection, the Citv mav institute foreclosure proceedin�s in accordance with chapter 61.12 RCW. 12. Foreclosure bv District: If the Citv does not institute foreclosure proceedin�s for unpaid school impact fees within fortv-five (45) davs after 17 I ORDINANCE N0. 5794 receivin� notice from a school district requestin� that it do so, the district mav institute foreclosure proceedin�s with respect to unpaid impact fees. #e�a�e� +t,-.., nn-..�1, � �n�c rl,,, n�l.,..�.,��+.-,+,,..-1,��i . ...++„+1,,, r�„�.���i „r +1,,, „#��+ „F i i ���L,��,.+7.,..� �c -....� � .,� +1,c.- c.,�+�,.�� v� '��Tf�fT�� ., , h., -..,,,E'RM�2�. �2 ���.` �l,Mll i i � 1�3. Required Prior to Buildin� Permit Issuance: The Department shall not issue the required building permit or the permit for the change of use until the impact fees have been paid or the signed and notarized deferred impact fee application and acknowledgement form and deferral fee have been received and accepted by the City. 14. Number of Deferrals Limited: Each applicant for a sin�le family buildin� permit, in accordance with his or her contractor re�istration number or other unipue identification number, is entitled to annuallv receive deferrals under this subsection for the first twentv (20) sin�le family buildin� permits issued bv the Citv to that applicant. H. INDEPENDENT FEE CALCULATIONS: 18 ORDINANCE NO. 5794 1. Calculations by City: If, in the judgment of the Administrator, none of the fee categories or fee amounts set forth in the City3 of Renton F#ee Sschedule , accurately describes or captures the impacts of a new development on public facilities, the Department may conduct independent fee calculations and the Administrator may impose alternative fees on a specific development based on those calculations. The alternative fees and the calculations shall be set forth in writing and shall be mailed to the feepayer. 2. Calculations bv FeepaYer: A feepayer may opt not to have the impact fees determined according to the fee structure in the City3 of Renton F#ee Sschedule, in which case the feepayer shall prepare and submit to the Administrator or school district, as applicable, an independent fee calculation for the development activity for which a building permit is being sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. An independent fee calculation shall use the same methodology used to establish impact fees ��'^^*^�' ^�����.�^+ *^ +�„ r;+.;� �,,,, ��"�;� and for transportation, parks, and fire impact fees thev shall be limited to adjustments in trip generation rates and lengths for transportation impact fees, persons per dwelling unit for park impact fees, and fire incident rates for fire impact fees. 3. Administrator Consideration and Review: There is a rebuttable presumption that the calculations set forth in the Rate Study and the data used bv school districts are valid. The Administrator or school district shall consider 19 ORDINANCE N0. 5794 the documentation submitted by the feepayer, but is not required to accept such documentation or analysis which the Administrator or school district reasonably deems to be inapplicable, inaccurate, incomplete, or unreliable. The Administrator or school district may require the feepayer to submit additional or different documentation for consideration. The Administrator or school district 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. The fees or alternative fees and the calculations therefor shall be set forth in writing and shall be mailed to the feepayer. 4. Adiustment from Maximum Amount: Alternative transportation, parks, and fire impact fees calculated pursuant to this subsection shall be �k►ased-a� reduced in the same manner and to the same extent that the impact fees in the City=s of Renton F#ee S�chedule are �#ase�-�d reduced from the maximum allowable impact fees in the Rate Study. 5. Appeals: Determinations made by the Administrator or school district pursuant to this Section may be appealed to the office of the Hearing Examiner under the procedures set forth in �����RMC 4-1-190.L^{*";� c^^*;^^ I. EXEMPTIONS: 1. School Impact Fees: The followin�shall be exempt from the application of school impact fees: a. Anv form of housin� exclusivelv for the elderlv. includin� nursin� homes and retirement centers, so lon� as these uses are maintained in 20 ORDINANCE N0. 5794 perpetuitv and the necessarv covenants or declarations of restrictions are recorded on the propertv to ensure that no children will reside in the development. b. The replacement of the same number of dwellin� units at the same site or lot when such reqlacement occurs within thirtv-six (36) months of the demolition or destruction of the prior structure. c. Alterations or exqansion or enlar�ement or remodelin� or rehabilitation or conversion of an existin� dwellin� unit where no additional units are created and the use is not chan�ed. d. Anv development activitv that is exemqt from the aavment of a school impact fee pursuant to RCW 82.02.100, due to miti�ation of the same svstem improvement under the State Environmental Policv Act. �2. Transportation, Parks, and Fire Impact Fees: Except as provided for below, the following shall be exempted from the payment of all transportation, parks, fire impact fees: a. Alteration or replacement of an existing residential structure that does not create an additional dwelling unit or change the type of dwelling unit. b. Alteration or replacement of an existing nonresidential structure that does not expand the usable space or change the existing land use. c. Miscellaneous improvements which do not generate increased need for public facilities, including, but not limited to, fences, walls, residential swimming pools, and signs. 21 ORDINANCE N0. 5794 d. Demolition or moving of a structure. e. �sProiects that have undergone prior State Environmental Policy Act (SEPA) review and received a final decision that includes mitigation requirements on the condition that the SEPA mitigation obligation has or will be fulfilled by the time the impact fees, if applicable, would be due. f. �,;,t J�Housin� that qualifies for waived fees under the provisions of RMC 4-1-21n� -.� ,+ � ;�+� „ , �„ -. .,.�,,,�. ' . Tem orar manufactured homes for medical hardshi s that meet g p Y p the criteria identified in RMC 4-9-240 � �* ^ ��*� ^ ^a^a I � ' �3. Authoritv: The Administrator shall be authorized to determine whether a particular development activity falls within an exemption identified in this Section. The Administrator's determinations shall be in writing and shall be subject to the appeals procedures set forth in ����:o:. RMC 4-1-190.L e€�la+s ���::, �.� �� n..:.-+� ., , L,., -. .,rl�,.� J. CREDITS FOR DEDICATIONS, CONSTRUCTION OF IMPROVEMENTS, AND PAST TAX PAYMENTS: 1. Criteria for Award of Credits: A feepayer may request that a credit or credits for impact fees be awarded to him/her for the total value of system improvements, including dedications of land and improvements, and/or construction provided by the feepayer. Requests for credits for transportation, parks or fire impact fees shall be made to the Administrator. Requests for credits 22 ORDINANCE NO. 5794 for school impact fees shall be made to the appropriate school district. Credits will be given only if the land, improvements, and/or the facility constructed are: I� a. Included within the capital facilities plan or would serve the goals and objectives of the capital facilities plan; b. Determined by the City or school district, as applicable, to be at suitable sites and constructed at acceptable quality; c. Serve to offset impacts of the feepayer's development activity; and d. If for a transportation impact fee �4are for one (1) or more of the projects listed in the Rate Study as the basis for the calculation �'� #-k�e 2. �^���^a�+�{^� �'^�':�,+:^^�Authoritv and Process: a. The Administrator or school district, as applicable, shall determine if requests for credits meet the criteria in ����o: RMC 4-1-190J.1 e#�#+s �ec�ie� or other applicable law. The ' determinations shall be in writing and shall be subject to the appeals procedure set forth in s�sec�ie� RMC 4-1-190.L^F+��� c,,,.+�,,., � ;+ „ ;.-*.- „ , h„ -, .,,�,,,� , ' b. For each request for a credit or credits for transportation, parks, or fire impact fees, the Administrator shall select an appraiser or, in the alternative, the feepayer may select an independent appraiser acceptable to the Administrator. c. For each reauest for a credit or credits for school impact fees, the applicable school district shall select an appraiser from a list of independent 23 I ORDINANCE N0. 5794 appraisers. The aqpraiser shall be directed to determine for the school district, the value of the dedicated land, improvements, or construction provided bv the develoqer on a case-bv-case basis. ed. Unless approved otherwise , the appraiser must be a member of the American Institute of Appraisers and be licensed in good standing pursuant under chapter 18.40 RCW et seq., ,� �+ ^�:�+� ^~ ~��., �^ a�er�e� in the category for the property or improvement to be appraised, and shall not have a fiduciary or personal interest in the property being appraised. de. The Administrator will accept or reject the appraisal and the decision may be subject to independent review by the Hearing Examiner. ef. The feepayer shall pay the actual costs for the appraisal and an independent review, if required, unless the Administrator determines that payment for independent review should not be at the feepayer's expense. #g. After considering the appraisal and the review, the Administrator or school district superintendent shall provide the applicant with a written determination setting forth the dollar amount of any credit, the reason for the credit, the legal description of the real property dedicated where applicable, and the legal description or other adequate description of the project or development to which the credit may be applied. The feepayer must sign and date a duplicate copy of such determination accepting the terms of the letter or certificate, and return such signed document to the Administrator before the impact fee credit will be awarded. The failure of the feepayer to sign, date, and 24 ORDINANCE N0. 5794 return such document within sixty (60) calendar days of the date of the determination shall nullify the credit. gh. No credit shall be given for project improvements. 3. School Impact Fees Responsibilitv: Anv credit for school impact fees shall be the responsibilitv of the respective school district, and shall be independent of the fees collected bv the Citv. The burden of establishin� such credit shall be on the partv seekin� the credit. When established as a condition of development approval or pursuant to the terms of a voluntarV miti�ation a�reement, the feepaVer shall receive a credit from the appropriate school district. The fee amount due on the development activity shall be reduced by the amount of the credit. Proof shall include such thin�s as a receipt or cancelled check. �4. Past Tax Pavments: A feepayer may request a credit or credits for impact fees previously awarded for past tax payments. For each request for a credit or credits for past tax payments for transportation impact fees, the feepayer shall submit receipts and a calculation of past tax payments earmarked for or prorated according to the particular system improvement for which credit is requested. The Administrator or school district, as applicable, shall determine the amount of credits, if any, for past tax payments for system improvements. 45. Appeals: The Administrator's or school district's determinations pursuant to this Section shall be subject to the appeals procedures set forth in ������^^*,''�^,T RMC 4-1-190.L�,F*�;� c,,..+c,,., � �+ „ ;�+� „ , �„ .. .,,�,,,� , ' 25 ORDINANCE NO. 5794 K. ADJUSTMENTS FOR FUTURE TAX PAYMENTS AND OTHER REVENUE SOURCES: Pursuant to and consistent with the requirements of RCW 82.02.060�� ����*� ^- ^��., "^ �^�^^a^a, the Rate Study has provided adjustments for future taxes to be paid by the development activity which are earmarked or prorated according to the same new public facilities which will serve the new development. The impact fees in the City3 of Renton F#ee Sschedule have been reasonably adjusted for taxes and other revenue sources which are anticipated to be available to fund public improvements. L. APPEALS: 1. Transportation, Parks, and Fire Impact Fees: The Administrator's determinations with respect to the applicability of the impact fees to a given development activity, the availability or value of a credit, the Administrator's decision concerning the independent fee calculation which is authorized in �„�n RMC 4-1-190.H ^F+h;� c,,,.+;,,.,� .,� ;� ,,.,c�+� „ • �„ ., .,a„a� or any other Administrator's determination pursuant to this Section may be appealed h f r h rovisions of RMC 4-8-110.E �� �+ b te eeae tote , ., . Y p Y p _ o.,,�*.- , �� ' �a�a �a. 2. School Impact Fees: A school district mav adiust the amount of the school imqact fee assessed if one of the followin� circumstances exist; provided, that the feepaver can demonstrate to the appropriate school district's satisfaction that the amount of the fee is inappropriate under the circumstances: 26 ORDINANCE NO. 5794 a. The feepaver demonstrates that the school impact fee assessment was incorrectly assessed; or b. Unusual and unique circumstances identified bv the feepayer demonstrate that if the standard school impact fee amount were applied to the development, it would be unfair, uniust or unlawful. 3. Pavment Under Protest: No building or change of use permits will be issued until the impact fee is paid or the signed and notarized deferred impact fee application and acknowledgement form and deferral fee have been received and accepted by the City; provided, however, that the feepayer may pay the fee under protest pending appeal to avoid delays in the issuance of building permits or change of use permits. �4. Process and School District Representation: Appeals to the Hearing Examiner shall be taken in accord with the processes set forth in RMC 4-8-110.E; �� '* ^�'�*� ^� ^^�., "^ �^�^^^'^�'. When there is an appeal of school impact fees, the respective school district shall qrovide staffin� and le�al assistance for such an appeal consistent with the Interlocal A�reement between the Citv and the respective school district, as that A�reement mav be amended from time to time. �5. Authoritv: 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. There is a presumption of validity of the 27 ORDINANCE NO. 5794 Administrator's and/or school district's determination. The feepayer has the burden of proof during any appeal of the Administrator's and/or school district's determination or decision. 46. Decisions: The Hearing Examiner may, so long as such action is in conformance with the provisions of this Section, reverse, affirm, modify or remand, in whole or in part, the Administrator's and/or school district's determinations with respect to the amount of the impact fees imposed or the credit awarded. M. ESTABLISHMENT OF IMPACT FEE ACCOUNTS: 1. Fee Accounts: The City shall establish the followin�separate impact fee accounts for the #faws�e�at+�::, ;.��!:� �:: impact fees collected pursuant to this Section: Transportation, Parks, Fire Protection, Issapuah School District, Kent School District, and Renton School District. Funds withdrawn from the accounts must be used in accordance with the provisions of this Section and applicable state law. Interest earned on the fees shall be retained in the accounts and expended for the purposes for which the impact fees were collected. � Impact fee receipts shall be earmarked specifically and deposited in the appropriate interest-bearing impact fee accounts. 2. Transfer to School District: For each school district account, when sufficient funds have accumulated to make transfer of those funds to the appropriate school district advisable, the Administrative Services Department shall make such transfer. Such funds shall be transferred not less than quarterlv. 28 � ORDINANCE N0. 5794 if the balance in the fund is more than five thousand dollars fS5,000.00). Annually, the City shall provide accountin� records to each school district and each school district shall prepare a report on school impact fees showin� the source and amount of all monies collected, earned or received, and capital or svstem improvements that were financed in whole or in part bv school impact fees. 3. School Fees Encumbered: School impact fees shall be expended or encumbered within six (61 vears of receipt, unless the Council identifies in written findin�s extraordinary and compellin� reason or reasons for a school district to hold the fees bevond the six (6) year period. A school district mav petition the Council for an extension of the six (61 vear period and that school district must set forth anv such extraordinarv or compellin� reason or reasons in its petition. Where the Council identifies the reason or reasons in written findin�s, the Council shall establish the period of time within which the school impact fees shall be expended or encumbered, after consultation with the petitionin�school district. �-4. Transportation, Parks, and Fire Fees Encumbered: Transportation, parks, and fire i�mpact fees shall be expended or encumbered within ten (10) years of receipt, unless the Council identifies in written findings extraordinary and compelling reasons for the City to hold the fees beyond the ten (10) year period, pursuant to RCW 82.02.070(3), ,� �} ^���+� ^ , "^ � ^a^�' N. ADMINISTRATIVE GUIDELINES: 29 ORDINANCE NO. 5794 The Administrator is authorized to adopt internal guidelines for the administration of impact fees, which may include the adoption of procedural rules to clarify or further the procedural rules set forth in this Section. O. REFUNDS AND OFFSETS: 1.Failure to Expend or Encumber: �{*"^ ��+�•�,�'�If there is a failure bv the Citv or a school district to expend or encumber their respective impact fees wf�hin �en��A�—�ear3 ef �h��a�e �#�.�ees�er�.�:� unless extraordinary or compelling reasons are established pursuant to ����� RMC 4-1-190.M e# +�;� �,,,.+;,,.,� -. ;+ „ ;.-+.- „ . �.. -. �a�a� 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. � T►,,, �;+„ ��.-.�� .,,,+;�., ..potential claimants shall be notified by first-class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant must be the current owner of record of the real property against which the impact fees were assessed. The City shall notify potential transportation, parks, or fire impact fee claimants and the applicable school district shall notifv potential school impact fee claimants. I� a. Transportation, parks, and fire impact fees eli�ible for refund if thev have not been expended or encumbered bv the Citv within ten (10) vears of the date the fees were paid. 30 ORDINANCE NO. 5794 b. School impact fees are eli�ible for a refund if thev have not been expended or encumbered bv the applicable school district within six (61 vears of receiqt of the funds bv the City. �2. Timin� of Request: Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the Administrator within one (1) year of the date the right to claim the refund arises or the date that notice is given, whichever is later. 43. Fees not Refunded: Any impact fees for which no application for a refund has been made within this one (1) year period shall be retained by the City and expended on the system improvements for which they were collected. §4. Interest Earned: Refunds of impact fees under this subsection shall include any interest earned on the impact fees by the City. ' 65. Termination of Pro�ram: 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 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 (2) times and shall notify all potential claimants by first-class mail at the last known address of the claimants. All funds available for refund shall be retained for a period of one (1) year. At the end of one (1) year, any remaining funds shall be retained by the City, but must be expended for the public facilities 31 ORDINANCE N0. 5794 for which the impact fees were collected. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated. �6. Refunds and Offsets for Development not Constructed: The City shall also refund to the current owner 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; provided, however, that, if the City has expended or encumbered the impact fees in good faith prior to the application for a refund, the Administrator may decline to provide the refund. If, within a period of three (3) years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the Administrator for an offset in the amount of the fee originally paid and not refunded. The petitioner must provide receipts of impact fees previously paid for a development activity of the same or substantially similar nature on the same real property or some portion thereof. The Administrator's determinations shall be in writing and shall be subject to the appeals procedures set forth in s�se�ie+} RMC 4-1-190.L e# *ti:� c�,.+:,... � ;+ „ :�+� „ „ �„ ., „a�a , ' . P. USE OF IMPACT FEES: 1. Pursuant to this Section, impact fees: a. Shall be used for system improvements that will reasonably benefit the new development activity; 32 ORDINANCE N0. 5794 b. Shall not be imposed to make up for deficiencies in public facilities; and c. Shall not be used for maintenance or operation. 2. Transqortation, Parks, and Fire i�mpact fees: a. �May be spent for system improvements to public streets and ' roads, public parks, open space and recreation facilities and fire protection facilities as herein defined and, including, but not limited to, planning, land acquisition, right-of-way acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized. �b. i^,�,�* �^^� ^�May also be used to recoup system 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. 3. School Impact Fees: Mav be expended bv the respective school districts for capital improvements includin� but not limited to school plannin�L land acQuisition; site improvements; necessary off-site improvements: construction, en�ineerin�, architectural, permittin�, financin�, and administrative expenses; relocatable facilities, capital eauipment pertainin� to educational facilities; and anv other expenses which could be capitalized, and which are consistent with the respective school district's capital facilities plan. 33 ORDINANCE N0. 5794 4. Debt Service: In the event that bonds or similar debt instruments are or have been issued for the advanced provision of system improvements for which impact fees may be expended, such 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. Q. REVIEW AND ADJUSTMENT OF RATES: 1. Transportation, Parks, and Fire Impact Fees: a_The fees and rates set forth in the Rate Study may be reviewed and adjusted by the Council as it deems necessary and appropriate in conjunction with the annual budget process so that adjustments, if any, will be effective at the first of the calendar year subsequent to budget period under review. �b. As part of the budget adoption process, the fees shall be adjusted by the same percentage change as in the most recent annual change of the Construction Cost Index published in the Engineering News Record. 2. School Impact Fees: a. The school impact fee schedule established in this Section shall be reviewed and updated bv the Council on an annual basis after the Council receives the school district's Plan and data required under RMC 4-1-190.J. The review may occur in coniunction with the annual update of the Capital Facilities Element of the Citv's Comprehensive Plan. b. On an annual basis, each school district shall submit to the Citv an update of the school district's capital facilities plan and a report on the School 34 ORDINANCE N0. 5794 Impact Fee Account, showin� the source and amount of all monies collected, earned, or received, and the public improvements that were financed in whole or in part bv school impact fees. R. ADMINISTRATIVE FEES: 1. Deferred Fees: Each application for a deferral of payment of residential impact fees, either under ����o,=. RMC 4-1-190.G.6 or C7 ' , shall pay a nonrefundable administrative deferral fee of eighty-five dollars ($85.00) for each lot, single detached dwelling unit, or condominium unit and eighty-five dollars ($85.00) for each multifamily residential building. The fee shall be paid at the time the application for deferral is submitted to the City. 2. Independent Fee Calculations: Any feepayer submitting an independent fee calculation shall pay a fee to cover the cost of reviewing the independent fee calculation. The fee shall be five hundred dollars ($500.00), unless otherwise established by the Administrator, and shall be paid by the feepayer prior to issuance of the Administrator's determination. 3. Appeals: Any feepayer filing an appeal of impact fees shall pay the fee set by the City for appeals of administrative interpretations and decision. The appeal fee shall be paid at the time of filing of the appeal. 4. Account Established: Administrative fees shall be deposited into a separate administrative fee account within the impact fee account(s). Administrative fees shall be used to defray the City's actual costs associated with the assessment, collection, administration and update of the impact fees. 35 ORDINANCE N0. 5794 5. Refunds, Waivers, and Credits: Administrative fees shall not be refundable, shall not be waived, and shall not be credited against the impact fees. 5. EXISTING AUTHORITY UNIMPAIRED: Nothing in this Section 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 #�e SEPA, chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or chapter 58.17 RCW, governing plats and I subdivisions. Compliance with this Section and/or payment of fees under this Section shall not constitute evidence of a determination of transportation concurrency. SECTION III. This ordinance shall be effective upon its passage, approval, and five (5) days after publication. PASSED BY THE GTY COUNCIL this 25th day of April' 2016. Jason . Seth, City Clerk APPROVED BY THE MAYOR this 25th day of April' 2016. De is Law, May 36 ORDtNANCE N0. 5794 Approved as to form: �/%��j� � `\\\\\\G\�v;nO!��a���//�i// vt/G.*'.�t.�. Lawrence J. Warren, City Attorney � � �p�� �� 2- Date of Publication: 4/29/2016 (summary) �z ��A.L _ � �� ORD:1909:3/1/16:scr ��'%,�� 6�`����\ 'io,��/ir+�,sn�n�����\\\\\� 37