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City of Vancouver, WA
Interlocal Agreement for Coordinated Impact Fee Program

Table of Contents

1. Purpose
2. Definitions
3. Service Areas
   3.1 Modification criteria
   3.2 Joint action required--exceptions
4. Impact fee ordinance
   4.1 Amendment--Joint action required
   4.2 Exceptions
5. Capital Facilities Plans
   5.1 Revision--Coordination
   5.2 When joint action required
   5.3 When joint action is not required
6. Project implementation
   6.1 Lead Jurisdiction
   6.2 Coordination
   6.3 When joint action required
7. Administration
   7.1 Impact fee fund
   7.2 Impact fee fund balance
   7.3 Collections
   7.4 Credits
   7.5 Exempt Developments
   7.6 Fund Distribution
   7.7 Reports
8. Public Share
   8.1 Allocation
9. Refunds
10. Term

THIS AGREEMENT is entered into by and between Clark County, State of Washington, (the "County") and the City of Vancouver (the "City") under the Interlocal Cooperation Act (Chapter 39.34 RCW) for the purpose of establishing a coordinated program for the imposition, collection, administration, and expenditure of traffic impact fees.

WHEREAS, the Growth Management Act (the "GMA") generally requires that new development be served by adequate public facilities; and

WHEREAS, to achieve such GMA mandate, it is necessary to finance public facilities with the participation of new development which adds to the need for such facilities; and

WHEREAS, the GMA authorizes the collection of impact fees on development activities to fund, inter alia, a proportionate share of the cost of public roads and streets, which are reasonably related to and which benefit the new development; and ,

WHEREAS, the County adopted an impact fee ordinance pursuant to the GMA in 1990 and the City adopted an impact fee ordinance in August of 1995; and,

WHEREAS, recent and planned annexations by the City will significantly increase development activity within its corporate boundaries without diminishing or changing the need for new and expanded public facilities to serve growth; and

WHEREAS, a coordinated City/County impact fee program would be more effective, efficient, and legally defensible than separate programs; and

WHEREAS, the City and County have separately adopted or revised consistent and complementary impact fee ordinances and capital facilities plans pursuant to the GMA following, the recommendations of their respective planning commissions and consideration by their legislative bodies at duly advertised public hearings; now, therefore,

IT IS AGREED:

1. Purpose. It is the purpose of this interlocal agreement to implement the GMA authorization for impact fees by creating a coordinated and integrated joint City/County program of impact fees for public roads and streets,. The following principles underlie the design of the joint program:

1.1. The boundaries of impact fee Service Areas should be based upon relevant geographic, land use, and service considerations which establish a nexus between impacts of new development and the public facility to be funded. Such boundaries should be established irrespective of current City limits or planned annexations.

1.2. The administration of an impact fee program should be seamless and consistent regardless of whether the affected property or public facility is incorporated or unincorporated.

1.3. There should be joint decision-making regarding- capital facilities planning for future needs, the selection of projects and their relative priority, and the design standards to which a project will be completed.

1.4. A coordinated impact fee program should accommodate locally desired incentives to development and impact fee exemptions by having the Jurisdiction which adopts the incentive or exemption assume the associated public facility costs for such exemptions and incentives.

2. Definitions. Unless a different meaning is plainly required by the context, words and phrases used in this agreement shall have the meanings attributed to them in RCW 82.02.090 or in this section.

2.1. "Capital Facilities Plan" means a capital facilities plan for roads, and streets, adopted by the City or County pursuant to the GMA which meets the requirements of RCW 82.02.050(4).

2.2. "City" means the City of Vancouver.

2.3. "County" means Clark County, State of Washington.

2.4. "Director" means:

2.4.1. In the case of the County, the County Director of Public Works

2.4.2. In the case of the City, the City Director of Public Works.

2.4.3. Except for Sections 5.1, 6.2 and 6.3, a Director's designee communicated in writing to the other Jurisdiction.

2.5. "GMA" means the Growth Management Act, Chapter 36.70A RCW and RCW 82.02.050.090.

2.6. "Jurisdiction" means either the City or the County.

2.7. "Overlay Area" means a special geographic area designated in a Capital Facilities Plan to be served by a system improvement(s), which area is not generally contiguous with an established Service Area. An Overlay Area may be local (covering- only a portion of a single Service Area), regional (covering portions or all of several Service Areas), or County-wide (covering., incorporated and unincorporated areas of the County)

2.8. "Service Area" means a geographic area designated in a Capital Facilities Plan in which a defined set of system improvements provides service to development within the area.

2.9. "TIF" means traffic impact fees.

2.10. "Urban Growth Area" means the Vancouver urban growth area designated by the County pursuant to the GMA.

3. Service Areas. Attached hereto as Exhibits "A" is the map depicting the agreed upon and duly enacted Service Areas for TIF’s, within the Vancouver Urban Growth Area.

3.1. Modification criteria. Additional or revised Service Areas may be designated through amendment of the applicable capital facilities plan(s) upon consideration of relevant geographic, land use, and service factors which shall not include the present or planned location of City boundaries. The primary consideration in determining the size and boundaries of Service Areas shall be a nexus between impacts from anticipated new development within the Service Area and the public facilities planned to serve such area.

3.2. Joint action required--exceptions. No modification which affects a Service Area then containing both incorporated and unincorporated areas shall be effective unless adopted by both the City and County: PROVIDED, that this limitation shall not apply to the adjustment in the boundaries of a Service Area adopted by the County to reflect an alteration of the Urban Growth Area boundary.

4. Impact fee ordinance. The City and County have each enacted substantially similar impact fee ordinances meeting the requirements of the GMA.

4.1. Amendment--Joint action required. Except as provided in Section 4.2, no amendment to the City or County impact fee ordinance shall become effective until either:
4.1.1. a substantially similar amendment has been adopted by the other Jurisdiction; or

4.1.2. the enacting Jurisdiction receives written notice from the legislative authority of the other Jurisdiction that it has no objection to the amendment.

4.2. Exceptions. Notwithstanding- the provisions of Section 4.1, either the City or County, upon advance written notice to the other, may unilaterally adopt amendments to its impact fee ordinance dealing with the following:

4.2.1. Exempt developments: Provided, that payment of applicable impact fees shall be subject to Sections 7.4 and 8.1

4.2.2. Administrative appeals.

4.2.3. Other ordinance provisions exclusively dealing with the internal administration of the impact fee program the amendment of which will not affect the joint program.

4.2.4. Ordinance provisions exclusively dealing with unincorporated areas outside of the Vancouver urban growth boundary

5. Capital Facilities Plans. The City and County each have adopted as a part of their respective comprehensive land use plans consistent and integrated Capital Facilities Plans which meet the requirements of the GMA for impact fees.

5.1. Revision--Coordination. The City and County shall annually consider revisions to their respective Capital Facilities Plans in accordance with state mandated and locally adopted procedures for amendments to a comprehensive plan. In developing- proposed revision to the Capital Facilities Plan, the Directors City and County shall ensure that their respective public works and community development departments coordinate and cooperate. Prior to advertising proposed revision which is subject to Section 5.2 for public hearing, a copy thereof shall be submitted to the public works and community development Director of the other Jurisdiction for formal comment. If such Director objects, the two Directors shall meet and utilize their best efforts to resolve any inconsistencies.

5.2. When joint action required. No revision to a Capital Facilities Plan of one Jurisdiction which could affect impact fees applicable to a development occurring in the other Jurisdiction, if such revision were adopted by it, shall become effective unless and until a substantially similar revision is adopted by the other Jurisdiction. It is the intent of this section to require joint adoption of revisions which changes-e the impact fee (or the projects, level of service, or other factors upon which the fee is based) for a Service Area or Overlay Area containing- both incorporated and unincorporated areas.

5.3. When joint action is not required. Projects that are wholly within districts administered by a single party are not subject to the terms of sub section 5.1 and 5.2.

6. Project implementation. Impact fee projects shall be prioritized and undertaken in accordance with state mandated and locally adopted budgetary, programmatic, and public works requirements and in conformance with the limitations and procedures of this section.

6.1. Lead Jurisdiction. Unless otherwise designated by mutual agreement, the Jurisdiction with responsibility and authority to plan, budget for, and undertake an impact fee project shall be determined as follows:
6.1.1. For road and street, projects located within a Service Area or Overlay Area which is entirely incorporated or unincorporated: the party with jurisdiction, which also has exclusive authority to prioritize the project.

6.1.2. For road and street, projects located within a Service Area or Overlay Area which contains both incorporated and unincorporated areas: the Jurisdiction within which the project (or a majority of the project) lies, subject to the joint action provisions of Section 6.3.

6.2. Coordination. The Directors shall ensure that their departments coordinate and cooperate in the development of proposed priorities and scheduling for projects listed in Section 6.1.2 and 6.1.3. Prior to forwarding a recommendation on prioritization or project scheduling to the planning commission or legislative body on a project listed in Section 6.1.2, the Director of the lead Jurisdiction shall provide a copy thereof to the Director of the other Jurisdiction for formal comment. If such Director objects, the two Directors shall meet and utilize their best efforts to resolve the matter.

6.3. When Joint action required. If the Directors are unable to resolve a dispute concerning a projects(s) listed in Section 6.1-2, and the matter involves a proposed expenditure of impact fee funds in the current or ensuing calendar year, the city finance director may be instructed by either Director to freeze the applicable fund account for the Service Area or Overlay Area and the matter shall be referred to the city manager and the county administrator. Until the dispute is resolved, such fund account may only be accessed to reimburse expenditures or obligations incurred prior to the date the Treasurer was so notified, unless otherwise agreed to by the legislative bodies.

7. Administration.

7.1. Impact fee fund. The County and the City have established and shall maintain a special purpose, nonlapse impact fee fund having separate accounts which are segregated by Service Area or Overlay Area. All interest shall be retained in the accounts. Account deposits and interest thereon shall be expended for the purpose or purposes for which the impact fees were imposed.

7.2. Impact Fee Fund Balance. The County shall transfer all TIF account balances to the City for service areas jointly within the City and the County and wholly within the City.

7.3. Collections. The City and County shall each collect impact fees in accordance with their impact fee ordinances and Capital Facilities Plans. The County shall deposit impact fees received from service areas that fall partially within the City and the County, with the City, on a monthly basis. The City shall deposit impact fees received into the respective fund. Each deposit received from the County shall be accompanied by an itemized list detailing (1) the amount of each fee, (2) the address and type of development, (3) the TIF service area, and (4) the date received. A copy of the itemized list will be simultaneously transmitted to the County Director together with a similarly detailed list of any impact fee credits or exemptions recognized by the City for the reported period.

7.4. Credits. The City Director shall maintain ledgers of impact fee credit accrual and shall maintain appropriate systems to accurately track the transfer and application of impact fee credits in service areas within joint jurisdiction. In order to apply credits against impact fees, a builder/developer shall obtain a credit voucher from the City Director.

7.5. Exempt developments. The City Director shall maintain an accounting of the unpaid impact fees applicable to exempt development by Service Area and Overlay Area, which unpaid impact fees shall be added to the public share of impact fee projects undertaken within six years of the date an exempt development otherwise would have paid the fee. The additional public share shall be allocated as provided for in Section 8. Agency granting exemption shall pay applicable impact fee at the time of granting the exemption.

7.6. Fund distribution. Funds for Service Areas and Overlay Areas which are entirely with the City shall be expended solely by the City. Funds within Service Areas and Overlay Areas which are entirely unincorporated, shall be expended solely by the County. Funds within Service Areas and Overlay Areas which contain both incorporated and unincorporated areas shall be expended in accordance with the provision of Section 6.

7.6.1. Fund disbursements shall be on a reimbursement basis.

7.6.2. Reimbursement requests shall be by invoice to the City Director submitted no more frequently than monthly and detailing- the project, amount of reimbursement sought, total project costs, other revenue sources, and applicable Service or Overlay Area. The City Director will process the invoice within thirty (30) days for a fund transfer (in the case of City projects) or payment (in the case of County projects).

7.7. Reports.

7.7.1. Monthly. The City Director shall provide a monthly report to the County on the status of each Service Area and Overlay Area fund account, specifying- current cash balance, accrued interest, deposits, withdrawals by project, outstanding credit accruals, applications and balances, and unpaid impact fee exemptions.

7.7.2. Annual. The City Director shall provide an annual calendar-year report to the County in February of the following year which shall:

7.7.2.1. Provide an annual summary of the information detailed in Section 7.6. 1, and

7.7.2.2. Summarize the relative age of unexpended impact fee funds in each account; and

7.7.2.3. Show the actual current impact public expenditure split for each Service Area and Overlay Area, and the public share percentage for such area as set forth in the applicable Capital Facilities Plan(s) and as adjusted for exempt developments.

7.7.3. Discrepancies. Any account discrepancies shall be identified by the County within ninety (90) days of receipt of a report. If so identified, the City and County Directors shall utilize their best efforts to resolve the discrepancy and, if unsuccessful, shall thereafter refer the matter to the legislative bodies.

8. Public Share. The public share of the cost of Service Area or Overlay Area projects shall be identified in the applicable Capital Facilities Plan(s). Such public share shall be expended or encumbered in proportion to the amount of any impact fee payment within six (6) years of the date of such payment unless an extension is provided pursuant to RCW 82.02.070.

8.1. Allocation. Allocation of the public share for projects within a Service Area or Overlay Area containing,- both incorporated and unincorporated areas shall be in accordance with the following:
8.1.1. The public share shall then be reduced by grants or other funds from third party sources (other than Community Development Block Grant funding which shall be treated as local public funds under Section 8.2.3).

8.1.2. For TIF projects , all local share shall be defined by written agreement between the two directors prior to the start of any project.

9. Refunds. Impact fees shall be expended or encumbered for a permissible use within six(6) years of receipt unless such period is extended pursuant to RCW 82.02.070. Any required refunds for Service Areas or Overlay Areas shall be processed by the City and invoiced to the applicable impact fee fund account. Any refunds from districts wholly within the unincorporated area shall be processed by the County and similarly invoiced.

10. Term. This interlocal agreement shall become effective upon signing of the Master Interlocal Transition Agreement. If this agreement is terminated as provided in the Master Interlocal Transition Agreement, the following shall apply:

10.1. The City and County shall remain obligated under the terms of this agreement as to the remaining balance within other impact fee fund accounts until such monies and any related public share have been properly expended.