ORD 09-627ORDINANCE NO. 09-627
AN ORDINANCE of the City of Federal Way, Washington, relating
to Transportation Impact Fee (TI�; and adding new sections to
Federal Way Revised Code chapters 19.91.
WHEREAS, the City recognizes the need to periodically modify Title 19 of the Federal
Way Revised Code (FWRC), "Zoning and Development Code," in order to conform to state and
federal law, codify administrative practices, clarify and update zoning regulations as deemed
necessary, and improve the efficiency of the regulations and the development review process;
and
WHEREAS, this ordinance, containing amendments to development regulations and the
text of Title 19 FWRC, has complied with Process VI review, chapter 19.80 FWRC, pursuant to
chapter 19.35 FWRC; and
WHEREAS, the City Council finds that new growth and development in the City will
create additional demand and need for public facilities; and
WHEREAS, the City is authorized by Chapter 82.02 RCW to require new growth and
development within the City to pay a proportionate share of the cost of new facilities to serve
such new development activity through the assessment of impact fees; and
WHEREAS, the impact fees assessed pursuant to Chapter 82.02 RCW must be based
upon a showing that new growth and development creates additional demand and need for public
facilities, that the impact fees do not exceed a proportionate share of the costs of such additional
public facilities, and that the fees spent for facilities reasonable related to the new growth and
development; and
Ordinance No.09-627 Page 1 of 22
WHEREAS, the City is authorized by Chapter 82.02 RCW to impose impact fees for
system improvement costs previously incurred by the City to the extent that new growth and
development will be served by the previously constructed improvements; and
WHEREAS, impact fee may be collected and spent for system improvements that are
included within a capital facilities plan element of a comprehensive plan,; and
WHEREAS, the City has adopted a list of transportation capital facilities in the
Transportation Element of the Comprehensive Plan; and
WHEREAS, RCW 58.17.110 and RCW 58.17.060 require the Council and administrative
personnel to make written finding that public facilities; such as roads and streets, are adequate
before approving �roposed subdivisions, dedications, short plats, and short subdivisions; and
WHEREAS, to meet these requirements with respect to public streets and roads, the
Council finds that it must assure that public street and roads are adequate to serve new growth
and development; and
WHEREAS, the Council finds that it is in the public interest, and consistent with the
intent and purposes of the Growth Management Act, RCW 36.70A et seq., for the City to adopt
transportation impact fees which are uniform to the greatest extent practicable; and
WHEREAS, The City has conducted extensive research and analysis documenting the
p.rocedures for measuring the impact of new growth and development on public streets and
roads, and has prepared the report "City of Federal Way Transportation Impact Fees Program"
dated February 2009 which serves as the basis for the actions taken by the Council; and
WHEREAS, the Council hereby incorporates the Rate Study into this ordinance by
reference. The Rate Study utilizes a methodology for calculating transportation impact fees
which fulfills all of the requirement of RCW 82.02.060(1); and
Ordinance No.09-627 Page 2 of 22
WHEREAS, based on information in the Rate Study, the Council has determined that the
City is composed a single services area for purposes of assessing transportation impact fees; and
WHEREAS, in developing the impact fees for public facilities contained in this
ordinance, the City has provided adjustments for past and future taxes paid or to be paid by new
growth and development, which are earmarked or proratable to the same new public facilities
that will serve the new growth and development; and
WHEREAS, the Planning Commission conducted properly conducted a duly noticed
public hearing on these code amendments on July 1, 2009; and forwarded a recommendation of
approval to the City Council; and
WHEREAS, the Land Use/Transportation Committee of the Federal Way City Council
considered these code amendments on September 14, 2009 and recommended adoption of the
text amendments as recommended by the Planning Commission with further modifications as
follows:
(1) Chapter 19.91.060 to provide option for single family residential development to
either pay the impact fee prior to the issuance of Building Permit or the City record a covenant
against the property for the payment of the impact fee in effect at time of payment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section l. Findin�s. The City Council of the City of Federal Way makes the following
findings with respect to the proposed amendments.
(a) These code amendments are in the best interest of the residents of the City and
will benefit the City as a whole by providing a more systematic way for applying the impact fees,
and provide predictability for developers.
Ordinance No.09-627 Page 3 of 22
(b) These code amendments comply with Chapter 36.70A RCW, Growth
Management.
(c) These code amendments are consistent with the intent and purpose of Title 19
FWRC and will implement and are consistent with the applicable provisions of the Federal Way
Comprehensive Plan,
(d) These code amendments bear a substantial relationship to, and will protect and
not adversely affect, the public health, safety, and welfare.
(e) These code amendments have followed the proper procedure required under the
FWRC.
Section 2. Conclusions. Pursuant to chapter 19.80 FWRC and chapter 19.35 FWRC, and
based upon the recitals and the findings set forth in Section 1, the Federal Way City Council
makes the following Conclusions of Law with respect to the decisional criteria necessary for the
adoption of the proposed amendrrients:
(a) The proposed FWRC amendments are consistent with, and substantially
implement, the following Federal Way Comprehensive Plan goals and policies:
TGll Develop and implement funding mechanisms to:
a. Leverage state and federal funds for transportation improvements.
b. Meet GMA's concurrency requirements.
c. Provide consistent, fair, and predictable assessment of sufficient mitigation
fees for development consistent with SEPA.
d. Assure that adequate transportation infrastructure is provided to
accommodate forecast growth.
TP82 Assure cost-effective maintenance of transportation facilities under the City's
jurisdiction.
TP 85 Develop a transportation impact fee by 2002 to simplify development review,
assess mitigation fees consistently and fairly, improve the City's ability to
Ordinance No.09-627 Page 4 of 22
leverage grant funding for transportation funding, and provide adequate
infrastructure to accommodate new growth.
LUG2 Develop an efficient and timely development review process based on a
public/private partnership.
LUP4 Maximize efficiency of the development review process.
HP9 Maximize efficiency in the City's development review process and ensure that
unnecessary time delays and expenses are eliminated. Continue to provide
streamlined permitting processes for development that is consistent with the
FWCP and FWCC, and that has no adverse impacts.
HPIO Encourage community input, where appropriate, into the development permit
process by providing thorough and timely information to the public.
(b) The proposed FWRC amendment bears a substantial relationship to the public
health, safety, and welfare because it would replace the existing code-based pro-rata fees in the
concurrency code and the Planned Action SEPA fee, create a more systematic way for applying
the fees in this national economic conditions that impact local land development and housing-
related industries by implementing development regulations to provide predictability for
developers during the development review process that is not provided in the current code; and
clarifies to increase the efficiency of the development review process.
(c) The proposed amendment is in the best interest of the public and the residents of
the City of Federal Way as it will provide the developer with an up front cost of the impact fees
for development proposal, which results in attracting and continued development within the City,
thus aiding the local economy.
Ordinance No.09-627 Page S of 22
Section 3. A new section is added to chapter 19.91 FWRC to read as follows:
TRANSPORTATION IMPACT FEES
Sections:
19.91.010
19.91.020
19.91.030
19.91.040
19.91.050
19.91.060
19.91.070
19.91.080
19.91.090
19.91.100
19.91.110
19.91.120
19.91.130
19.91.140
19.91.150
19.91.160
19.91.170
19.91.180
19.91.190
19.91.200
19.91.210
Title
Purpose and Intent
Findings and authority
Definitions
Transportation Impact Fees Methodology
Assessment of Impact Fees
Independent Fee Calculations
Exemptions
Credits
Adjustments
Establishment of Impact Fee Account
Authorization for interlocal agreements
Administrative Guidelines
Refunds
Use of Funds
Periodic Adjustment of Rate
Administrative Fees
Appeals
Existing authority unimpaired
Relationship to State Environmental Policy Act (SEPA)
Relationship to Concurrency
19.91.010 Title. This code shall be hereinafter known as the City of Federal Way
transportation impact fee (TIF}.
19.91.020 Purpose and Intent. The purpose and intent of this chapter is for the
collection of impact fees for streets and roads, and providing for certain other matters in
connection therewith.
19.91.030 Findings and authority. The City Council of the City of Federal Way hereby
finds and determines that development activities, including but not limited to new residential,
commercial, retail, office, and industrial development in the City of Federal Way will create
additional demand and need for public facilities in the City, and the Council finds that such new
Ordinance No.09-627 Page 6 of 22
growth and development should pay a proportionate share of the cost of new facilities needed to
serve the new growth and development. The City of Federal Way has conducted extensive
research and analysis documenting the procedures for measuring the impact of new
developments on public facilities, has prepared the "Rate Study for Transportation Impact Fees,
City of Federal Way" dated February 2009 ("Rate Stud}�'), and incorporates that Rate Study into
this title by this reference. The Rate Study utilizes a methodology for calculating impact fees
that fulfills all of the requirements of RCW 82.02.060(1). A copy of the Rate Study shall be kept
on file with the City Clerk and is available to the public for review. Therefore, pursuant to
Chapter 82.02 RCW, the Council adopts this title to assess impact fees for streets and roads. The
provisions of this title shall be liberally construed in order to caYry out the purposes of the
Council in establishing the impact fee program.
19.91.040 Definitions. The following words and terms shall have the following
meanings for the purposes of this chapter, unless the context clearly requires otherwise. Terms
otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual
and customary meaning.
A. Applicant means a person who applies for a building permit under this article and who is
the owner of the subject property or the authorized agent of the property owner.
B. Building Permit means an official document or certification which is issued by the
building official and which authorizes the construction, alteration, enlargement, conversion,
reconstruction, remodeling, rehabilitation, erection, demolition, moving, or repair of a building
or structure.
C. Capital Facilities Plan means the capital facilities element of the City's Comprehensive
Plan adopted pursuant to RCW 36.70A and such plan as amended.
D. Council means the City Council of the City.
E. Department means the City's Department of Public Works.
Ordinance No.09-627
Page 7 of 22
m
F. Development Activity means any work, condition, or activity which requires a permit or
approval under the city's subdivision, zoning, or building code. Exempt permits are set forth in
FWRC 19.91.080.
G. Development Approval means any written authorization from the City authorizing the
commencement of a development activity or use.
H. Director means the Director of the Department of Public Works of the City of Federal
Way or her/his designee
L Encumbered means to reserve, set aside, or otherwise earmark the impact fees in order to
pay for commitrnents, contractual obligations, or other liabilities incurred for public facilities.
J. Hearing Examiner means the hearing examiner operating pursuant to the powers and
duties set forth by Chapter 2.20 FWRC.
K. Impact fee means a payment of money imposed by the City of Federal Way on
development activity pursuant to this title as a condition of granting development approval.
"Impact fee" does not include a reasonable permit fee, an application fee, the administrative fee
for collecting and handling impact fees, or the cost of reviewing independent fee calculations.
L. Independent Fee Calculation means the street and road impact calculation, and/or
economic documentation prepared by a applicant, to support the assessment of an impact fee
other than by the use of the rates listed in the fee schedule, or the calculations prepared by the
Director where none of the fee categories or fee amounts in the traffic impact fee in the fee
schedule accurately describe or capture the impacts of the development activity on public
facilities.
M. Interest means the average interest rate earned in the last fiscal year by the City of
Federal Way.
N. ITE Land Use Code means the classification code number assigned to a type of land use
by the Institute of Transportation Engineers in the latest Edition of Trip Generation.
Ordinance No.09-627 Page 8 of 22
r
O. CITY CODE SECTION means the City of Federal Way Revised Code or, when followed
by a numerical designation, a provision of the FWRC Code.
P. P.M. Peak Hour means the highest volume of traffic for a continuous hour between 4:00
p.m. and 6:00 p.m. on weekdays.
Q. P.M. Peak Hour Trips means the total vehicular trips entering and leaving a place of new
development activity on the adjacent public road or street during the p.m. peak hour.
R. Project Improvements mean site improvements and facilities that are planned and
designed to provide service for a particular development project and 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.
S, Public F. acilities, for purposes of this chapter, means the following capital facilities
owned or operated by the City of Federal Way or other governmental entities: public streets and
roads.
T. Rate Study means the "Transportation Impact Fees Program," City of Federal Way, by
Fehr Peers Mirai, dated February 2009.
U. Residential or Residential Development means all types of construction intended for
human habitation. This shall include, but is not limited to, single-family, duplex, triplex, and
other multifamily development.
V. RCW means the Revised Code of Washington or, when followed by a numerical
designation, a provision of the Revised Code of Washington.
W. Square Footage means the square footage of the gross floor area of the development as
defined in FWRC.
X. Street or Road means a public right-of-way and all related appurtenances, which enables
motor vehicles, transit vehicles, bicycles, and pedestrians to travel between destinations, and
affords the principal means of access to abutting property, including avenue, place, way, drive,
Ordinance No.09-627 Page 9 of 22
lane, boulevard, highway, street, and other thoroughfare. For purposes of this chapter, public
streets and roads are collectively referred to as "transportation."
Y. System Improvements means public facilities that are included in the City of Federal
Way's capital facilities plan, and such plan as amended, and are designed to provide service to
service areas within the community at large, in contrast to project improvements.
Z Transportatian means public streets and roads and related appurtenances.
AA. Transportatio�i Impact Fee Account(s) means the account(s} established for the
transportation impact fees that are collected. The account(s) shall be established pursuant to
FWRC 19.91.110, and shall comply with the requirements of RCW 82.02.070.
19.91.050 Transportation Impact Fees Methodology and Applicability. The
transportation impact fee rates are generated from the formula for calculating impact fees set
forth in the Rate Study, which is on file with the Public Works Department. Except as otherwise
provided for independent fee calculations in FWRC 19.91.0�0, exemptions in FWRC 19.91.080,
and credits in FWRC 19.91.090, all new development activity in the City will be charged the
transportation impact fee applicable to the type of development as set forth in the Traffic Impact
Fee in the current Fee Schedule as adopted by Council.
19.91.060 Assessment of Impact Fees.
A. The City shall collect impact fees, based on the land use categories and rates on the
current Fee Schedule, from any applicant seeking development permits from the City where such
development activity requires the issuance of a building permit or approval for a change in use,
except for development exempt under FWRC 19.91.080. This shall include, but is not limited to,
the development of residential, commercial, retail, office, and industrial land, and includes the
expansion of existing uses that creates a demand for additional system improvements as well as a
change in existing use that creates a demand for additional system improvements. The public
works department is authorized to determine the appropriate land use category found in the rate
schedule applies to the application.
Ordinance No.09-627 Page 10 of 22
B. All impact fees shall be due and payable prior to issuance of the building permit or at the
time of permit approval for a change in land use when no building permit is required based on
the land use categories on the Fee Schedule.
Prior to issuance of a single family residential building permit, the applicant may elect to defer
payment of the impact fee to the time of closing of sale of the unit. If this option is selected, the
City shall record a covenant against the property for the payment of the impact fee in effect at
time of payment. Any fees associated with filing/recoding the covenant shall be paid by
applicant.
Unless the use of an independent fee calculation has been approved, or unless a development
agreement entered into pursuant to RCW 36.70B.170 provided otherwise, the fee shall be
calculated based on the impact fee schedule in effect at the time a completed building permit
application is filed. For a change in use for which no building permit is required, the fee shall be
calculated based on the impact fee schedule in effect on the date of payment of the impact fee.
C. The public works department shall establish the traffic impact fee rate for a land use that
is not listed in the fee schedule. The applicant shall submit all information requested by the City
for purposes of determining the impact fee rate pursuant to FWRC 19.91.070.
D. For a change in use of an existing building or dwelling unit, including any alteration,
expansion, replacement or new accessory building that generate additional trips, the impact fee
shall be the applicable impact fee for the land use category of the new use, less any irnpact fee
previously paid for the land use category of the prior use. If no impact fee was paid for the prior
use, the impact fee for the new use sha11 be reduced by an amount equal to the current impact fee
rate of the current use.
E. For mixed use developments, impact fees shall be imposed for the proportionate share of
each land use based on the applieable measurement in the traffic impact fee rates set forth in the
fee schedule.
F. The Community Development Department shall not issue the required building permit
until the traffic impact fees set forth in the fee schedule have been paid as set forth in the fee
schedule or in the amounts that they exceed any credits allowable under this chapter. For a
Ordinance No.09-627 Page 11 of 22
change in use where a building permit is not required, the applicant shall not occupy or permit a
tenant to occupy the subject property unless and until the impact fee has been paid.
19.91.070 Independent Fee Calculations.
A. If in the judgment of the director, none of the fee categories or fee amounts set forth in
foregoing section of this title accurately describes or captures the impacts of a new development
on roads, the department may conduct independent fee calculations and the director may impose
alternative fees on a specific development based on those calculations.
B. The applicant may opt not to have the impact fees determined according to the fee
shucture in the traffic impact fee schedule listed in the City Fee Schedule, in which case the
applicant shall prepare and submit to the director an independent fee calculation for the
development activity for which a development permit is being sought. The documentation
submitted sha11 be prepared by a licensed traffic engineer and shall show the basis upon which
the independent fee calculation was made using procedures consistent with those established in
the Trip Generation Handbook, current edition, by the institute of Transportation Engineers. An
independent fee calculation shall use the same methodology used to establish impact fees set
forth in the traffic impact fee schedule, shall be limited to adjustments in trip generation rates
and lengths used in the Rate Study, and shall not include travel demand forecasts, trip
distribution, transportation service areas, costs of road projects, or cost allocation procedures.
C. The applicant submitting an independent fee calculation will be required to pay the City
of Federal Way a fee to cover the cost of reviewing the independent fee calculation. The fee
required by the City for conducting the review of the independent fee calculation shall be
charged on an hourly rate as adopted by council at the time of the submittal.
D. There is a rebuttable presumption that the calculations set forth in the Rate Study and the
fee set forth in the traffic impact fee in the fee schedule are valid. The director shall consider the
documentation submitted by the applicant, but is not required to accept such documentation or
analysis which the director reasonably deems to be inapplicable, inaccurate or not reliable. The
director may require the applicant to submit additional or different documentation for
consideration. The director is authorized to adjust the impact fees on a case-by-case basis based
Ordinance No.09-627 Page 12 of 22
on the independent fee calculation, the specific characteristics of the development, and/or
principles of fairness.
E. Determinations made by the director pursuant to this section may be appealed as set forth
in FWRC 19.91.180.
19.91.080 Exemptions.
A. Except as provided for below, the following shall be exempted from the payment of
transportation impact fees:
1. Alteration or replacement of an existing nonresidential structure that does not
expand the usable space, add any residential units or generate any additional p.m. peak trips.
2. Miscellaneous improvements which do not generate increased p.m. peak trips,
including, but not limited to, fences, walls, residential swimming pools, and signs;
3
generated.
4.
5.
Demolition or moving of a structure when additional p.m. peak hour trips are not
A change of use that does not generate one or more p.m. peak hour trips.
Miscellaneous permits such as Electrical, Fire Protection System, Mechanical,
Plumbing, Right-of-way use, Shoreline and sign permits which do not generate any new trips.
6. Rezones, Comprehensive plan amendments, Land surface modifications,
Commercial subdivisions, Boundary line adjustment and Lot line eliminations, which does not
generate any trips.
7.
Structures constructed by regional transit authority as define in RCW 82.02.09.
Any development permit application that has been submitted to the City before
5:00 p.m. the business day before the effective date of this chapter and subsequently determined
to be a complete land use application conjunction with a concurrency application, based on the
information on file as of the effective date of this chapter.
B. The director shall be authorized to determine whether a particular development activity
falls within an exemption identified in this FWRC 19.91.080 or under other applicable law.
Determinations of the director shall be subject to the appeals procedwes set forth in FWRC
19.91.180.
Ordinance No.09-627 Page 13 of 22
19.91.090 Credits
A. An applicant 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, improvements andlor
construction provided by the applicant. Credits will be given only if the land, improvements,
and/or the facility constructed are:
l. For one or more of the transportation projects listed in the Rate Study as the basis
for calculating the impact fee.
B. The director shall determine if requests for credits meet the criteria in subsection A,
above or under other applicable law. Determinations of the director shall be subject to the
appeals procedure set forth in FWRC 19.91.180.
C. Each request for a credit or credits shall include a legal description of the dedicated land,
a detailed description of improvements or construction provided, and a legal description or other
adequate description of the development to which the credit will be applied.
D. For each request for a credit or credits, the director shall determine the value of the
dedicated land, improvements, or construction on a case-by-case basis. In the event that the
applicant disagree with the director's valuation, the applicant may submit an appraisal for the
director's consideration, prepared by a state certified MAI (Member of the American Institute of
Appraisers) or licensed engineer and be licensed in good standing pursuant to RCW 18.40
et.seq., in the category for the property to be appraised, and shall not have a fiduciary or personal
interest in the property being appraised.
E. The appraiser and/or licensed engineer shall be directed to determine the fair market
value of the total value of the dedicated land, improvements, andlor construction provided by the
applicant. The applicant shall pay for the actual costs for the appraisal.
F. After receiving and reviewing the appraisal, the director will determine the dollar amount
of any credit, the basis 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 with issuance of the building permit. If the total value of any
Ordinance No.09-627 Page 14 of 22
such dedication, improvement or construction cost exceeds the amount of the impact fee
obligation, the developer will not be entitled to reimbursement of the difference.
G. No credit shall be given for project improvements or right-or-way dedications for direct
access improvements to and/or within the subject development above and beyond what is
proposed in the capital facilities plan.
H. Any claim for credit must be made before payment of the impact fee and prior to the
issuance of the building permit or a permit for a change in use. The failure to timely file such a
claim shall constitute a final bar to later request any such credit.
I. Determinations made by the director pursuant to this chapter shall be subjected to the
appeals procedures set forth in FWRC 19.91.180.
J. No impact fee for a specific development shall be increased or decreased once said fee
has been paid.
19.91.100 Adjustments.
Pursuant to and consistent with the requirements of RCW 82.02.060, the Rate Study has
provided adjustments for future taxes to be paid by the development activity which are
earmarked or pro-ratable to the same new public facilities which will serve the new
development. The traffic impact fee rates in the fee schedule have been reasonably adjusted for
taxes and other revenue sources which are anticipated to be available to fund public
improvements.
19.91.110 Establishment of Impact Fee Account.
A. Impact fee receipts shall be earmarked specifically and deposited in a special interest-
bearing account.
B. The City sha11 establish a separate impact fee account for the fees collected pursuant to
this chapter: Transportation Impact Fee Account. Funds withdrawn from the account must be
used in accordance with the provisions of this chapter and applicable state law. Interest earned
Ordinance No.09-627 Page 1 S of 22
on the fees shall be retained in the account and expended for the purposes for which the impact
fees were collected.
C. On an annual basis, the finance director shall provide a report to the Council on the
transportation impact fee account showing the source and amount of all moneys collected,
earned, or received, and the public improvements that were financed in whole or in part by
impact fees.
Impact fees shall be expended or encumbered within six (6) years of receipt, unless the Council
identifies in written findings of extraordinary and compelling reasons for the City to hold the
fees beyond the six (6) year period. Under such circumstances, the Council shall establish the
period of time within which the impact fees shall be expended or encumbered.
19.91.120 Authorization for interlocal agreement.
The city manager is authorized to execute, on behalf of the city, an interlocal agreement with
other agencies having authority over transportation facilities to identify impacts and provide
mitigation for those impacts. In no case shall mitigation payments to the city be reduced to
account for mitigation payments to other jurisdictions.
19.91.130 Administrative Guidelines. The Public Works Director is hereby authorized
to adopt internal guidelines for the administration of transportation impact fees, which may
include the adoption of a procedures guide for transportation impact fees.
19.91.140 Refunds
A. If the City fails to expend or encumber the impact fees within six (6) years of when the
fees were paid, or where extraordinary or compelling reasons exist, such other time periods as
established pursuant to 19.91.110, 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.
Ordinance No.09-627 Page 16 of 22
B. The City shall notify potential claimants by first class mail deposited with the United
States Postal Service at the last known address of such claimants. A potential claimant or
claimants must be the owner of record of the real property against which the impact fee was
assessed.
C. Property owners seeking a refund of impact fees must submit a written request for a
refund of the fees 'to the director within one (1) year of the date the right to claim the refund
arises or the date that notice is given, whichever is later.
D. Any impact fees for which no application for a refund has been made within this one-year
period shall be retained by the City and expended on the appropriate system improvements.
E. Refunds of impact fees or offsets against subsequent impact fees under this section shall
include any interest earned on the impact fees by the City.
F. When the City seeks to terminate any or all components of the impact fee program, all
unexpended or unencumbered funds from any terminated component or components, including
interest 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 a$er the second publication. At
the end of one (1) year, any remaining funds shall be retained by the City, but must be expended
for the appropriate public facilities. This notice requirement shall not apply if there are no
unexpended or unencumbered balances within the account or accounts being terminated.
G. 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 director can 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 director for an offset in the amount of the fee
Ordinance No.09-627 Page 17 of 22
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 director shall determine whether to grant an offset, and
the determinations of the director may be appealed pursuant to the procedure in Section
19.91.180.
19.91.150 Use of Funds.
A. Pursuant to this title, transportation impact fees:
l. Shall be used for system improvements that will reasonably benefit the new
development activity;
2. Shall not be imposed to make up for deficiencies in public facilities; and
3. Shall not be used for maintenance or operation.
B. Transportation impact fees may be spent for public improvements to streets and roads as
herein defined and, including, but not limited to, transportation planning, engineering design
studies, land survey, right-of-way acquisition, site improvements, necessary off-site
improvements, engineering, architectural, permitting, financing, administrative expenses,
construction of streets and roads and related facilities such as curbs, gutters, sidewalks, bike
lanes, storm drainage and installation of traffic signals, signs and street lights, applicable impact
fees or mitigation costs, and any other expenses which can be capitalized.
C. Transportation impact fees 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.
D. In the event that bonds or similar debt instruments are or have been issued for the
advanced provision of public improvements for which impact fees may be expended, 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 and are
used to serve the new development.
Ordinance No.09-627 Page 18 of 22
19.91.160 Periodic Adjustment of Rates.
A. The traffic impact fee in the fee schedule will be amended to reflect changes to the
twenty-year transportation project list as part of adoption of amendments to the capital facilities
element of the City's comprehensive plan. Amendment to the schedule for this purpose shall be
adopted by the council.
B. The traffic impact fee in the fee schedule shall be indexed to provide for an automatic fee
increase each January 1 St beginning in the year 2011. A three-year moving average of the
Washington State Department of Transportation Construction Cost Index will be used to
determine the increase in fees for each year to reflect increased project costs.
C. A new rate study, which established the traffic impact fee in the fee schedule, shall be
updated every three years, unless the city determines that circumstances have not changed to
warrant an update.
19.91.170 Administrative Fees.
A. There shall be a fee for the administration of the Transportation Impact Fee Program in
an amount equal to three percent (3%) of the amount of the total traffic impact fee determined
from the fee schedules. The administrative fee shall be deposited into an administrative fee
account within the transportation impact fee funds. Administrative fees shall be used to defray
the cost incurred by the City in the administration and update of the transportation impact fee
program. The administrative fee is not creditable or refundable.
B. The administrative fee, in addition to the impact fee, shall be paid by the applicant at the
same time as the impact fee.
19.91.180 Review by Director and Appeals.
A. The applicant may pay the impact fees imposed by this title under protest so that the
building permit, or a change in use when no building permit is required. No appeal shall be
permitted until the impact fees at issue have been paid.
B. Requests for review regarding the impact fees imposed on any development activity may
be filed only by the applicant for the development activity at issue.
Ordinance No.09-627 Page 19 of 22
C. The applicant must first file a request for review regarding impact fees with the director,
as provided herein:
1. The request shall be in writing on the form provided by the City;
2. The request for review by the director shall be filed within fo�rteen (14) calendar
days after the applicant's payment of the impact fee at issue. The failure to timely file such a
request shall constitute a final bar to later seek such review;
3. No administrative fee will be imposed for the request for review by the director;
and
4. The director shall issue his/her determination in writing.
D. Determinations of the director with respect to the applicability of the impact fees to a
given development activity, the availability or value of a credit, or the director's decision
concerning the independent fee calculation which is authorized in Sect. 19.91.070, or any other
determination which the director is authorized to make pursuant to this title, may be appealed by
the applicant or owner using the same process as the underlying development permit application
or process I of Chapter 19 FWRC if there is no underlying development permit, substituting the
director of public works for the director of community development. The appeal, in the form of a
letter of appeal, must be delivered to the department of community development within 14
calendar days after issuance of the decision of the director. In those cases where the proposed
development activity may require a public hearing under the authority of other chapters of this
code, the hearings may be combined. For example, if the underlying development permit
application is a preliminary plat, the appeal shall be heard at the preliminary plat public hearing.
19.91.190 Existing Authority Unimpaired.
Nothing in this title shall preclude the City from requiring the applicant or the proponent of a
development activity to mitigate adverse environmental impacts of a specific development
pursuant to the State Environmental Policy Act, Chapter 43.21 C RCW, based on the
environmental documents accompanying the underlying development approval process, and/or
Chapter 58.17 RCW, governing plats and subdivisions; so long as the exercise of such authority
is consistent with the provisions of Chapter 43.21C RCW and Chapter 82.02 RCW.
Ordinance No.09-627 Page 20 of 22
19.91.200 Relationship to State Environmental Policy Act (SEPA)
(1) All development shall be subject to the environmental review pursuant to SEPA and other
applicable city ordinances and regulations.
(2) Further mitigation in addition to the impact fee shall be required for identified adverse
impacts appropriate for mitigation pursuant to SEPA that are not mitigated by an impact fee
program.
19.91.210 Relationship to Concurrency Management
Neither compliance with this chapter or the payment of any fee hereunder shall constitute a
determination of transportation concurrency under this chapter.
Section 4. Severabilitv. The provisions of this ordinance are declared separate and
severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion of
this ordinance, or the invalidity of the application thereof to any person or circumstance, sha11
not affect the validity of the remainder of the ordinance, or the validity of its application to any
other persons or circumstances
Section 5. Corrections. The City Clerk and the codifiers of this ordinance are authorized
to make necessary corrections to this ordinance including, but not limited to, the correction of
scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any
references thereto.
Section 6. Ratification. Any act consistent with the authority and prior to the effective
date of this ordinance is hereby ratified and affirmed.
Section 7. Effective Date. This ordinance shall take effect and be in force July l, 2010 as
provided by law.
PASSED by the City Council of the City of Federal Way this 20 day of October 2009.
Ordinance No.09-627 Page 21 of 22
ATTEST:
�r
APPROVED AS TO FORM:
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK: 9-29-2009
PASSED BY THE CITY COUNCIL: 10-20-2009
PUBLISHED: 10-24-2009
EFFECTIVE DATE: 07-01-2010
ORDINANCE NO.: 09-627
Ordinance No.09-627 I'aSe 22 o 22
CITY OF FEDERAL WAY