Title 20
IMPACT FEES

Chapters:

20.10 Impact Fees

20.15 School Impact Fees

20.20 Park and Recreation Impact Fees

20.25 Transportation Impact Fees

Chapter 20.10
IMPACT FEES

Sections:

20.10.010 Purpose.

20.10.020 Definitions.

20.10.030 Applicability of impact fee.

20.10.040 Identification of development impacts.

20.10.050 Mitigation review – Alternatives.

20.10.060 Imposition of impact fee.

20.10.070 Establishment of development service areas.

20.10.080 Calculation of impact fee.

20.10.090 Impact fee exemptions.

20.10.100 Impact fee credits.

20.10.110 Appeals.

20.10.120 Impact mitigation fee fund.

20.10.130 Expenditures.

20.10.140 Refunds.

20.10.150 Impact fee as additional and supplemental requirement.

20.10.010 Purpose.

It is the purpose of this chapter to:

A. Ensure that adequate facilities are available to serve new growth and development;

B. Promote orderly growth and development by requiring that new development pay a proportionate share of the cost of new facilities needed to serve growth; and

C. Ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicate fees for the same impact. (Ord. 1286 § 3, 1997).

20.10.020 Definitions.

A. “Applicant” means the person, firm or corporation proposing a development in the city.

B. “Building permit” means the permit required for new construction and additions pursuant to FMC Title 15. The term “building permit,” as used herein, shall not be deemed to include:

1. Permits required for the remodeling, rehabilitation or other improvements to an existing structure or rebuilding a damaged or destroyed structure, provided there is no increase in the square footage space (for nonresidential construction) or number of dwelling units (for residential construction) resulting therefrom;

2. Permits required for temporary dwellings;

3. Permits required for placement of a mobile home within an approved mobile home park.

C. “Capital improvement plan” means the consolidated capital improvement plan contained in the city of Fife comprehensive plan adopted by Ordinance No. 1236, and any subsequent legislative enactment that amends or otherwise updates said consolidated plan.

D. “City” means the city of Fife.

E. “Development” means any proposed land use, zoning or rezoning, comprehensive plan amendment, annexation, subdivision, short subdivision, planned unit development, planned area development, building permit, binding site plan or any other action permitted or regulated by the Fife Municipal Code that creates additional demand and need for public facilities.

F. “Development approval authority” means the city official or tribunal having code authority to approve a development.

G. “Impact” means any additional demand and need for public facilities or services that is reasonably related to the proposed development.

H. “Impact fee” means the fee or charge levied pursuant to this chapter as a condition of issuance of a building permit or development approval and which mitigates all or any portion of an impact.

I. “Low income housing” means single-family or multifamily housing, the construction of which is either undertaken by a housing authority operating pursuant to Chapter 35.82 RCW or financially assisted pursuant to a federal, state or local government low income housing program, or a not-for-profit charitable organization that follows the same or similar guidelines; provided, that the terms shall apply only to the number of units within a multifamily housing development as are required to be rented to low income tenants.

J. “Mitigation or mitigate” means an action which avoids any negative or adverse impact, or which ameliorates any such impact.

K. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in the capital improvement plan shall be considered a project improvement.

L. “Public facilities” means any city-owned, operated or contracted facility or service, in whole or in part, whether existing or planned, including but not limited to parks, utilities, recreational facilities, schools, libraries, playgrounds, streets, transportation facilities, open spaces, police, fire or garbage services, buildings, and all such facilities or services, including related equipment.

M. “Service area” means a geographical area in which a defined set of public facilities provides services to developments within the area. Service areas may be separately described for each type of public facility.

N. “System improvements” means public facilities that are included in the capital improvement plan and are designed to provide service to service areas within the community at large, in contrast to project improvements. (Ord. 1619-07 §§ 1, 2, 2007; Ord. 1286 § 4, 1997).

20.10.030 Applicability of impact fee.

A. This chapter shall be applied as part of and integrated into the city’s land use and development approval procedures, so that mitigation decisions under this chapter are incorporated into development approval and permitting decisions at the earliest stage, thus permitting public review and comment.

B. This chapter shall be uniformly applicable to development that occurs within a designated service area.

C. Mitigation conditions imposed pursuant to this chapter shall be deemed conditions of the development permit and may be enforced by any suitable means. (Ord. 1286 § 5, 1997).

20.10.040 Identification of development impacts.

A. Impact Identification Required. Before a development is given approval or is allowed to proceed, the city shall identify all impacts of the development, if any.

B. Impact Criteria. The city shall consider but not be limited to the following items in identifying or quantifying an impact, to the extent the items applicable are to the development:

1. The provisions of the Fife Municipal Code, the capital improvement plan, or any other adopted city plan.

2. Technical documents which discuss or analyze public facilities or services or adopted city plans.

3. Pre-development versus post-development demands upon public facilities and services.

4. Impact of the development on the size, number, capacity, condition, availability, proximity or other characteristics of public facilities and services.

5. Likelihood that an impact from a development, when aggregated with impacts of future development in the immediate vicinity, will require mitigation due to its cumulative effect.

6. Nature, quantity, cost, identified completion date, if any, and pro rata share if applicable, of contributions, improvements or dedications to public facilities and services, including those offered or suggested by the applicant.

7. Likelihood that the development will benefit from or use public facilities and services.

8. Existing or planned alternatives for financing capital improvements.

9. Whether the development furthers the public health, safety and general welfare.

10. Likelihood of city growth through annexation of areas adjacent to the development.

11. Whether impacts have been previously mitigated, in whole or in part.

12. Any other criteria useful for identifying and quantifying impacts deemed relevant by the city.

C. Identification Cost. The cost of any special investigation, analysis or report necessary for an identification of impacts related to any development shall be borne by the applicant. (Ord. 1286 § 6, 1997).

20.10.050 Mitigation review – Alternatives.

A. Mitigation of Impacts Required. The city shall not give a development approval unless satisfactory provisions have been made to mitigate identified impacts and such provisions meet the policies and goals of this chapter and of the city’s development regulations.

B. Review. The city shall review the identified impacts and any proposed alternatives for mitigating such impacts to determine whether the policies and goals of this chapter and of the city’s development regulations can be met.

C. Mitigation Alternatives. The following alternatives or any combination, either on-site or off-site, may be used as necessary to mitigate or avoid identified impacts. The list is not exhaustive and does not purport to describe all available and viable alternatives. Other alternatives may be used as necessary to achieve the policies and goals of this chapter and of the city’s development regulations.

1. Modification of the development so that identified impacts are avoided.

2. Dedication of land to the city for public purposes.

3. Contributions or payments offered by the applicant for use in mitigating on-site or off-site impacts as authorized under RCW 82.02.020. Contributions pursuant to RCW 82.02.020 shall not be required as a condition of development approval and shall be subject to the limitations of RCW 82.02.020 as now existing or hereafter amended; provided, however, that persons entitled to a refund and/or payment of interest may voluntarily and in writing waive their right to such refund or payment in whole, in part, or for a specified time period to facilitate completion of the designated improvement. No such waiver shall be required as a condition of development approval, but when made shall be recorded with the Pierce County auditor and shall be binding upon subsequent owners.

4. Environmental mitigation agreements under the authority of Chapter 43.21C RCW and FMC Title 17. Such agreements shall not fall within the purview of RCW 82.02.020 and shall be distinct from voluntary contribution agreements.

5. Impact fees assessed pursuant to this chapter. Such fees, if assessed, shall be used only to fund system improvements. Formulas for determining the amount of such fees will be adopted, from time to time, by ordinance of the city council.

6. Contractual arrangements between the applicant and the city permitting use by the general public of facilities or services within the development.

7. Contractual arrangements between the applicant and the city whereby the applicant constructs, funds, or commits to construct or fund public facilities and services which mitigate identified impacts.

8. Any contractual agreement, including but not limited to latecomer’s agreement, no protest agreement, maintenance agreement, or funding agreement which mitigates any identified impact.

9. Any alternative offered by the applicant which is satisfactory to the city and has the effect of mitigating identified impacts.

10. If the city determines that identified impacts would be best mitigated on a regional basis, the city may independently or in conjunction with any other jurisdiction prepare or have prepared a cost estimate and define a benefit area for the regional improvement. The fair share of the total costs to be allocated to the proposed development shall then be determined. (Ord. 1286 § 7, 1997).

20.10.060 Imposition of impact fee.

A. No building permit shall be issued for a development in a designated service area as herein defined unless the impact fee is calculated, imposed and collected pursuant to this chapter.

B.  1. For single-family/duplex residential subdivisions and short subdivisions hereinafter approved, the per lot impact fee shall be calculated and assessed at the time of preliminary plat or short plat approval, noted on the face of the final plat, and collected on a per lot basis at the time of building permit application; provided, however, if an improvement for which an impact fee is being collected must be constructed prior to occupancy of any phase of the development, then the impact fee for said improvement shall be paid at the time of assessment.

2. For new multifamily and nonresidential development hereinafter approved, the impact fee shall be calculated and assessed at the time of site plan approval and collected at the time of building permit application; provided, however, if an improvement for which an impact fee is being collected must be constructed prior to occupancy of any phase of the development, then the impact fee for said improvement shall be paid at the time of assessment. If the nature of the development is then not sufficiently defined, then calculation and assessment of the impact fee shall be deferred until the building permit application is submitted. Notwithstanding the foregoing, the fee may be recalculated for building permit applications filed more than three years following the date of the applicable preliminary plat, preliminary short plat, or site plan approval.

C. For development not necessitating or having previously been granted preliminary plat, preliminary short plat or site plan approval, the impact fees shall be calculated, assessed and collected at the time of building permit application.

D. For development not necessitating a building permit, the impact fee shall be calculated, assessed and collected at the time of site plan approval.

E. For mobile home parks, the impact fee shall be calculated, imposed and collected at the time of site plan approval; provided, if the mobile home park is approved for construction in phases, then the fee for the first phase shall be paid at the time of site plan approval, and the fee for each subsequent phase shall be paid prior to the issuance of permits for construction of improvements within that phase. (Ord. 1286 § 8, 1997).

20.10.070 Establishment of development service areas.

Service areas, which may vary by type of public facility, are to be established.

A. Such areas will provide a nexus between those paying the fees and receiving the benefits to ensure that those developments paying impact fees receive substantial benefits.

B. Service areas may be designated by the city council, by ordinance or through amendment to the capital improvement plan upon consideration of the following factors:

1. The comprehensive plan.

2. Standards for adequate public facilities incorporated in the capital improvement plan.

3. The projections for full development as permitted by land use ordinances and timing of development.

4. The need for funding unprogrammed capital improvements necessary to support projected development.

5. Such other factors as the city may deem relevant. (Ord. 1286 § 9, 1997).

20.10.080 Calculation of impact fee.

A. Formulas for determining the amount of the impact fees assessed under this chapter will be adopted, from time to time, by ordinance of the city council. The city council shall hold a public hearing before adopting or amending impact fee formulas.

B. If the development for which approval is sought contains a mix of use, the impact fee must be separately calculated for each type of use.

C. Upon application by the developer supported by studies and data, the impact fee may be reduced or eliminated if it is shown that either:

1. The formulae adopted by the city council do not accurately reflect the impact; or

2. Due to unusual circumstances:

a. Facility improvements identified for the applicable service are not reasonably related to the proposed development, or

b. Such facility improvements will not reasonably benefit the proposed development.

D. Prior to making an application for any development approval, an applicant, upon payment of the applicable fee may request an impact fee determination, which determination shall be based upon information supplied by the applicant sufficient to permit calculation of the impact fee. The impact fee determination shall be binding upon the city for a period of six months unless there is a material change in either the development proposal or this chapter. The fee for a binding preapplication impact fee determination shall be not less than $50.00. The fee shall be the actual cost of making the determination, including all legal, administrative, engineering and planning fees, and shall be paid before the written determination is provided to the applicant. (Ord. 1286 § 10, 1997).

20.10.090 Impact fee exemptions.

Developments owned or operated, in whole or in part, by the city shall be exempt from the requirement for payment of impact fees; provided, however, the impact fee for an exempt development shall be calculated as provided for herein and paid with public funds by including such amounts in the public share system improvements undertaken within the applicable service area. (Ord. 1286 § 11, 1997).

20.10.100 Impact fee credits.

A. The developer shall be entitled to a credit against the applicable impact fee for the present value of any dedication of land, for improvement to or new construction of any system improvements provided by the developer (or the developer’s predecessor in interest) to facilities that are/were identified in the capital improvement plan and that are required by the city as a condition of approval for the immediate development proposal, if such prior dedication, improvement or construction is located within the same service area as the immediate development proposal.

B. The amount of the credit shall be determined at the time of building permit issuance (or site plan approval where no building permit is required). In the event the amount of the credit is calculated to be greater than the amount of the impact fee due, the developer may apply such excess credit toward impact fees imposed on other developments within the same service area; provided, however, if the improvement is one for which a latecomer’s agreement would be authorized, then the developer shall only be entitled to a latecomer’s agreement. (Ord. 1286 § 12, 1997).

20.10.110 Appeals.

The determination of the development approval authority as to the applicability and amount of an impact fee, credit against an impact fee, and/or discount against an impact fee shall be appealable as provided for in this section.

A. The determination of the development approval authority shall be appealable to the hearing examiner. Such appeal may be perfected by the proponent or any aggrieved party by giving notice to the city manager within 10 days of the decision being appealed. Review by the hearing examiner shall be on a de novo basis.

B. The notice of appeal shall be made upon a form to be supplied by the city manager. A nonrefundable fee of $250.00 shall be paid at the time the notice of appeal is submitted. A hearing shall then be scheduled before the hearing examiner within 30 days of the filing of the notice of appeal and appeal fee.

C. The decision of the hearing examiner shall be in writing and shall include findings of fact and conclusions to support the decision.

D. The decision of the hearing examiner shall be final unless, within 21 calendar days, a party of record files and serves upon the city and all affected parties a petition for review under the Land Use Petition Act with the Pierce County superior court. (Ord. 1635-07 § 1, 2007; Ord. 1619-07 § 3, 2007; Ord. 1398 § 1, 2000; Ord. 1286 § 13, 1997).

20.10.120 Impact mitigation fee fund.

A. There is hereby created a fund to be known as the impact mitigation fee fund. The city treasurer shall establish separate accounts within such fund and maintain records for each such account whereby impact fees collected can be segregated by type of facility and by service area. All interest shall be retained in the account and expended for the purposes for which the impact fees were imposed.

B. By April of each year, the city treasurer shall provide a report for the previous calendar year on each impact fee account showing the source and amount of moneys collected, earned, or received and system improvements that were financed in whole or in part by impact fees. (Ord. 1286 § 14, 1997).

20.10.130 Expenditures.

Impact fees for system improvements shall be expended only in conformance with the capital improvement. Impact fees shall be expended or encumbered for a permissible use within six years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than six years. Such extraordinary and compelling reasons shall be identified in written findings by the city council. (Ord. 1286 § 15, 1997).

20.10.140 Refunds.

A. The current owner of property in which an impact fee has been paid may receive a refund of such fee if the city fails to expend or encumber the impact fees within six years or when the fees were paid or such other period of time established pursuant to this section on public 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. The current owner likewise may receive a proportionate refund where the public funding of applicable service area projects by the end of such six-year period has been insufficient to satisfy the ratio of public to private funding for such service area as established in the capital improvement plan. The city shall notify potential claimants by first class mail deposited with the United States Postal Service addressed to the last known address of claimants.

B. The request for refund money must be submitted to the city council in writing within one year of the date the right to claim a refund arises or the date the notice is given, whichever is later. Any impact fees that are not expended within these time limitations, and for which no application for refund has been made within this one-year period, shall be retained and expended on the indicated capital improvements. Refunds of impact fees under this subsection shall include interest earned on the impact fees.

C. A developer may request and shall receive a refund, including interest earned on the impact fees, when the building permit for which the impact fee has been paid has lapsed for noncommencement of construction. (Ord. 1286 § 16, 1997).

20.10.150 Impact fee as additional and supplemental requirement.

The impact fee is additional and supplemental to, and not in substitution of, any other requirements imposed by the city on the development of land or the issuance of building permits; provided, that any other such city development regulation which would require the developer to undertake dedication or construction of a facility contained within the city capital improvement plan shall be imposed only if the developer is given a credit against impact fees as provided for in FMC 20.10.100. (Ord. 1286 § 17, 1997).

Chapter 20.15
SCHOOL IMPACT FEES

Sections:

20.15.010 Imposed.

20.15.020 Payment required prior to permit issuance.

20.15.010 Imposed.

There is hereby imposed a school impact fee for residences within either the Fife School District No. 417 or the Puyallup School District No. 3 in the amount of $3,629 for each single-family residential unit and $586.00 for each multifamily residential unit. The timing for payment of the school impact fees shall be in accordance with the provisions of FMC 20.10.060. (Ord. 1622-07 § 1, 2007; Ord. 1590-06 § 1, 2006; Ord. 1559-05 § 1, 2005; Ord. 1523-04 § 1, 2004; Ord. 1459 § 1, 2002; Ord. 1308 § 1, 1998).

20.15.020 Payment required prior to permit issuance.

School impact fees shall be paid directly to Fife School District No. 417 or Puyallup School District, as appropriate. Proof of payment directly to the appropriate school district shall be provided to the city prior to the issuance of the permit/approvals set forth in FMC 20.10.060. (Ord. 1523-04 § 2, 2004; Ord. 1308 § 2, 1998).

Chapter 20.20
PARK AND RECREATION IMPACT FEES

Sections:

20.20.010 Imposed.

20.20.020 Use of funds.

20.20.010 Imposed.

A. There is hereby imposed a park and recreation impact fee for each new residential unit in accordance with the following table:

Single-family detached housing	$1,700
Two residential unit attached housing (duplex)	$1,450
Three-four residential unit structure	$1,450
Five or more residential unit structure	$1,300
Manufactured home in manufactured home park	$1,400

B. The timing for payment of the fee shall be in accordance with the provisions of FMC 20.10.060. (Ord. 1458 §§ 1, 2, 2002).

20.20.020 Use of funds.

Pursuant to the provisions of FMC 20.10.120, 10 percent of all funds collected pursuant to the provisions of this chapter shall be placed into a fund for neighborhood facilities and the remainder shall be placed in a fund for city-wide facilities, as those terms are defined in the city of Fife comprehensive parks, recreation and open space plan. (Ord. 1458 §§ 1, 3, 2002).

Chapter 20.25
TRANSPORTATION IMPACT FEES

Sections:

20.25.010 Service area.

20.25.020 Imposition and calculation of transportation impact fee.

20.25.025 Impact fee discounts.

20.25.030 Review and update.

20.25.010 Service area.

The service area within which a transportation impact fee shall be charged and collected is co-extensive with the corporate city limits, and shall include all unincorporated areas annexed to the city on and after the effective date of the ordinance codified in this chapter. After the adoption of interlocal agreements with other local and regional governments, geographic boundaries may be expanded consistent therewith. (Ord. 1619-07 § 5, 2007).

20.25.020 Imposition and calculation of transportation impact fee.

A. There is hereby imposed a transportation impact fee measured in units of vehicle-miles and based on a figure of $473.00 per daily vehicle-mile of travel for any development within the service area, except a development specifically exempt pursuant to FMC 20.10.090, Impact fee exemptions.

B. The actual transportation impact fee shall be generated from the formula for calculating impact fees set forth in the study entitled “Rate Study for Transportation Impact Fees” (DEA, Inc. 2006), as may be amended, and incorporated herein by reference. A copy of the “Rate Study for Transportation Impact Fees” is on file in the city clerk’s office.

C. The director of public works or his designee shall be responsible for calculating the amount of the applicable transportation impact fee for each development.

D. The timing of the payment shall be in accordance with the provisions of FMC 20.10.060.

E. In accordance with FMC 20.10.080, the department of public works may consider unusual circumstances for specific developments and may adjust the transportation impact fee for specific developments to ensure that impact fees are imposed fairly. The department shall set forth its reasons for adjusting the impact fee in written findings. In determining whether to adjust the impact fee, the department shall consider the following sources of information:

1. The Institute of Transportation Engineers (ITE) “Trip Generation User’s Guide,” latest edition.

2. If the applicant proposes a trip generation rate other than that set forth in the ITE “Trip Generation User’s Guide,” latest edition, the applicant shall provide supporting studies or data for a minimum of three comparison sites, at the same level of detail as would be necessary for the data to be accepted by ITE for inclusion in its database for trip generation.

3. Any other data or studies submitted by a qualified transportation professional affiliated with the Institute of Transportation Engineers or a professional engineer licensed by the state of Washington. (Ord. 1619-07 § 6, 2007).

20.25.025 Impact fee discounts.

A. Any development that meets all of the following criteria may apply for a maximum 30 percent discount from the traffic impact fee that would otherwise be imposed under FMC 20.25.020:

1. Qualifying Uses. All uses consist only of those uses that meet one or more of the following definitions:

a. Retail sales store as defined in FMC 19.40.020(J), subject to the limitations set forth below;

b. Commercial service as defined in FMC 19.40.020(K), subject to the limitations set forth below;

c. Agricultural use as defined in FMC 19.40.020(G), subject to the limitations set forth below;

d. Entertainment facility as defined in FMC 19.40.020(L);

e. Restaurant uses as defined in FMC 19.40.020(R), subject to the following:

i. Restaurant establishments that meet the following criteria are not qualified uses and are not eligible for an impact fee discount: restaurants or other establishments where the service of alcoholic beverages is not merely incidental and complementary to the primary service of food such that any area that is designated solely for dispensing and consumption of alcoholic beverages, including but not limited to a lounge or bar, shall occupy more than 25 percent of the total floor area that is intended for the use and access by the establishment’s customers;

ii. Notwithstanding the above, restaurant establishments that meet the following criteria are qualifying uses: restaurants or establishments that are commonly known as brewpubs or wineries, which is herein defined as an eating and drinking establishment having a microbrewery on the premises which produces beer, ale, or other malt beverage, or wine, and where the majority of the beer/wine produced is consumed on the premises. These establishments may also sell beer or wine at retail and/or act as wholesaler for beer or wine of its own production for off-site consumption, with appropriate state licenses;

2. The development’s uses do not include or consist of any of the following uses: gasoline sales, vehicle parts (new/manufactured), vehicle detailing, or livestock as defined in FMC 19.06.420;

3. The combined building space of all structures within the development is not greater than 50,000 square feet; and

4. The development is located entirely within the geographical area depicted in the traffic impact fee discount map (attached as Exhibit A to the ordinance codified in this section), as now or hereafter amended, a copy of which is available from the city clerk’s office.

B. Developments comprising of mixed use structures, as defined by FMC 19.06.495, may apply for the above discount to be applied to the impact fees that are associated solely with qualifying uses within the development and that meet all of the above criteria.

C. Any claim for a discount must be made before payment of the impact fee is due. Any claim not so made shall be deemed waived.

D. The claim for a discount must be accompanied by a covenant guaranteeing that the qualifying uses and building size restrictions, required under the above criteria, will be continued unless released by written approval of the city. Before approval of the discount, the city attorney shall approve the form of the covenant. Within 10 days of approval, the applicant shall execute and record the approved covenant with the Pierce County auditor’s office. The covenant shall run with the land and shall provide notice to all future owners of the restricted use(s) and building size, and that in the event the development is no longer used for the identified qualifying uses, or exceeds the building size limitation, the current owner shall pay the balance of the original traffic impact fee plus interest to the date of the payment.

E. The amount of the impact fees not collected pursuant to this discount shall be paid from public funds other than the impact fee account.

F. The director of the public works department, or his designee, shall be authorized to determine whether a particular development meets the criteria for a discount. (Ord. 1635-07 § 2, 2007).

20.25.030 Review and update.

Transportation impact fees shall be reviewed by the city council and adjusted as appropriate, in conjunction with the periodic update of the transportation element of the city’s comprehensive plan or at such intervals as the city council determines. (Ord. 1619-07 § 7, 2007).