ORD 10-658ORDINANCE NO. 10-658
AN ORDINANCE of the City of Federal Way, Washington, relating
to fee payments; amending FWRC 19.91.060; FWRC 19.100.030;
FWRC 19.100.060; and adding new section FWRC 19.100.070.
(Amending Ordinance Nos. 90-39 and 09-627)
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 existing methods of mitigation ordinance does not address the current
administrative policy for the timing of open space fee-in-lieu and regional stormwater facility fee
within the City of Federal Way; and
WHEREAS, it is in the public interest for the City Council to codify the current
administrative policy of payment prior to plat recording for open space fee-in-lieu and adopting a
new optional deferment policy that allows applicants to defer fee payment until sale of the
constructed home or five years from the deferment of the fee, whichever is earlier; and
WHEREAS, it is in the public interest for the City Council to codify the existing
administrative policy and require payment of the regional stormwater facility fee prior to final
plat for residential land divisions and prior to building permit issuance for commercial and multi-
family development; and
Ordinance No. 10-658 Page 1 of 9
WHEREAS, it is in the public interest for the City Council to allow applicants to pay the
transportation impact fee prior to plat recording for all newly created lots as an alternative to
building permit issuance or point of sale of the constructed home; and
WHEREAS, it is in the public interest for the City Council to add a new section to the
Mitigation of Impacts Chapter of FWRC Title 19 to include the timing of open space fee-in-lieu,
regional stormwater facility fee and transportation impact fee; and
WHEREAS, it is in the public interest for the open space deferment policy that will be
codified as FWRC 19.100.070(1)(b) to sunset five years following the effective date of this
ordinance; and
WHEREAS, an Environmental Threshold Determination was not necessary as the code
amendments are related solely to governmental procedures, therefore categorically exempt from
the State Environmental Policy Act; and
WHEREAS, the Planning Commission properly conducted a duly noticed public hearing
on these code amendments on November 4, 2009, and January 6, 2010, and forwarded a
recommendation of approval to codify the existing practice to the City Council; and
WHEREAS, the Land Use/Transportation Committee of the Federal Way City Council
considered these code amendments on November 16, 2009, December 7, 2009, February 1,
2010, and April 19 2010, and recommended adoption of the text amendments as recommended
by the Planning Commission with further modifications as follows: (1) open space fee-in-lieu
may be deferred at the applicant's discretion; (2) regional stormwater facility fee shall be paid
prior to final plat recording for residential land divisions; (3) for residential land divisions the
transportation impact fee shall be paid prior to plat recording or deferred, via covenant, to point
Ordinance No. 10-658 Page 2 of 9
of sale of the constructed home; and (4) adding FWRC section 19.100.070 to consolidate timing
of fee payments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. 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 additional timing options for applicants to pay
development costs without sacrificing the level of service to existing residents of the City.
(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 amendments:
Ordinance No. 10-658 Page 3 of 9
(a) The proposed FWRC amendments are consistent with, and substantially
implement, the following Federal Way Comprehensive Plan goals and policies:
LUP6 Conduct regular reviews of development regulations to determine how to improve
upon the permit review process.
CFP1— Provide needed public facilities and services to implement the Federal Way
Comprehensive Plan.
CFP6 — Protect investments in existing facilities through an appropriate level of
maintenance and operation funding.
CFP13 — Provide the capital facilities needed to serve the future growth anticipated by the
Federal Way Comprehensive Plan.
(b) The proposed FWRC amendment bears a substantial relationship to the public
health, safety, and welfare because it provides assurance that fees owed to the city will be paid
via covenant or lien filed against the property.
(c) The proposed amendment is in the best interest of the public and the residents of
the City of Federal Way because it will provide an economic incentive for developers to invest
within the City without sacrificing current levels of service to the City's roads, open spaces and
regional stormwater facilities.
Section 3. FWRC 19.91.060 is hereby amended to read as follows:
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 or plat approval from
the City where such development activity requires the recordin� of a residential subdivision,
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. 10-658 Page 4 of 9
B. All impact fees shall be due and payable pursuant to the guidelines established in
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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
impact 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 shall 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 applicable measurement in the traffic impact fee rates set
forth in the fee schedule.
F. The Department of Community Development Services ����� shall not
record a residential plat or issue the required building permit until a covenant has been recorded
pursuant to FWRC 19.100.070(3)(bL 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 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.
Section 4. FWRC 19.100.030 is hereby amended to read as follows:
Before any development is given the required approval or is permitted to proceed, the
official or body charged with deciding whether such approval should be given shall determine
direct impacts, if any, that are a consequence of the proposed development and which require
mitigation, considering, but not limited to, the following factors:
(1) Predevelopment versus postdevelopment need for services such as city streets,
sewers, water supplies, drainage and stormwater detention facilities, parks, playgrounds,
recreational facilities, schools, police services, fire services and other municipal facilities or
services;
Ordinance No. 10-658 Page S of 9
(2) Likelihood that a direct impact of a proposed development would require mitigation
due to the cumulative effect of such impact when aggregated with the similar impacts of future
development in the immediate vicinity of the proposed development;
(3) Size, number, condition and proximity of existing facilities to be affected by the
proposed development;
(4) Nature and quantity of capital improvements reasonably necessary to mitigate specific
direct impacts identified as a consequence of the proposed development;
(5) Likelihood that the users of the proposed development will benefit from any
mitigating capital improvements or programs;
(6) Any significant adverse environmental impacts of the proposed development
identified in the process of complying with the environmental policy, FWRC Title 14, or the
State Environmental Policy Act, RCW 43.21C.010 et seq.;
(7) Consistency with the city's comprehensive plan and any of its subparts;
(8) Likelihood of city growth by annexation into areas immediately adjacent to the
proposed development;
(9) Appropriateness of financing necessary capital improvements by means of local
improvement districts;
(10) Whether the designated capital improvement furthers the public health, safety or
general welfare; and
(11) Any other facts deemed by the city to be relevant.
Section 5. FWRC 19.100.060 is hereby amended to read as follows:
(1) The methods of mitigating identified direct impacts required as a condition of any
development approval may include, but are not limited to, dedication of land to any public body,
off-site improvements, on-site improvements, and other capital or noncapital methods that may
effectively reduce direct impacts.
(2) In lieu of a dedication of land or to mitigate a direct impact that has been identified as
a consequence of a proposed development, the city may approve a voluntary payment agreement
with the developer, provided no such agreement shall be required as a condition of approval, and
shall be subject to the following provisions:
(a) The official or body approving development must find that the money offered will
mitigate or is a satisfactory alternative to mitigate the identified direct impact.
(b) The payrnent shall be held in a reserve account and may only be expended to fund a
capital improvement or program agreed upon by the parties to mitigate the identified direct
impact.
(c) The payment shall be expended in all cases within ���° �•°^r� �� ^^"°^+�^^ avplicable
time limitations of RCW Chapter 82.02 unless otherwise agreed to by the developer.
(d) Unless the property owner elects to defer pavments authorized in FWRC
19.100.070(1)(b) or 19.100.070(3)(b), �any payment not expended within ���° •�° ^�
^�'�n �plicable time limitations shall be refunded to the property owners of record at the
time of the refund with interest at the rate earned in the city's reserve account applicable at the
time of refund. If the payment is not expended within � the a�plicable time limitations
due to delay attributable to the developer, the payment shall be refunded without interest.
(e) Property owners entitled to a refund and/or interest under the provisions of this
chapter may voluntarily and in writing waive their right to a refund for specified period of time
Ordinance No. 10-658 Page 6 of 9
in the interest of providing the designated capital improvement or other capital improvement or
program identified by the property owner, and acceptable to the city.
(� The developer may voluntarily and in writing waive on behalf of the developer and
subsequent purchasers the right to interest and or a refund in order to facilitate completion of an
improvement. Under no condition shall such a waiver be required as a condition of approval.
Such waiver shall be recorded with the county where the property is situated and shall be binding
on subsequent owners.
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Section 6. Chapter 19.100 of the Federal Way Revised Code is hereby amended to add a
new section Timing of fee payments to read as follows:
19.100.070 Timing of fee pavments
Various sections of the Federal Way Revised Code (FWRC) require pavment of fees to
miti�ate direct impacts of the development approval. Notwithstanding those fees eli�ible for
deferment pursuant to 19.100.070(1)(b) and 19.100.070(3�(b), the following describes when such
fees shall be calculated and paid.
�1) Open space, ee-in-lieu
�) A fee-in-lieu of open space ma�be made to satisf�open space requirements at the
discretion of the parks director and shall be calculated and paid at the time of plat recording for
residential land divisions. The fee shall be calculated based upon the square foota� of open
space which otherwise would have been required to be provided multiplied bv the subiect
property's assessed or appraised value.
(b) For those residential land divisions vested prior to July 2, 2015, open space fee-in-lieu
mav be deferred but shall be paid no later than the closin� of sale of each individual house or
five Years from deferment of the fee whichever is earlier. Covenants prepared b t�ity shall
be recorded at the applicant's expense on each lot at the time of plat recordin� to enforce
pavment of deferred fees. The fee shall be calculated at the time of plat recording and divided
ecivallv among all newlv created lots. The fee shall be calculated based upon the square foota�e
of open space which otherwise would have been required to be provided multiplied by the
subject propertv's assessed or appraised value. As consideration for the abilitv to defer open
space fee-in-lieupavments beyond plat recordin ,� the applicant a�rees to waive the ri�ht to
interest and/or a refund if pavment is not expended within five vears of collection.
(2) ReQional stormwater, acility,fee-in-lieu
Developments may be able to utilize stormwater detention in one of the citv's re �i�onal
stormwater facilities based on an area fee-in-lieu established bv the City. Fees are used for
construction cost recove and shall be paid at the time ofplat recording for residential land
divisions and prior to buildin�permit issuance for commercial and multi-family developments.
�3,) Transportation impact,�
Unless the use of an independent fee calculation has been approved, or unless_ a
development a�reement entered into pursuant to RCW 36.70B.170 provided otherwise, the fee
shall be calculated and paid per the followin�:
Ordtnance No. 10-658 Page 7 of 9
(a) For residential land divisions, fees shall be calculated and paid at the time of plat
recording. For un-platted single-familv residential lots, commercial and multi-familv
developments, fees shall be calculated based on the impact fee schedule in effect at the time a
completed buildin�permit application is filed and paid �rior to permit issuance. For a change in
use for which no building permit is required, the fee shall be calculated and paid based on the
impact fee schedule in effect on the date of an approved change of use.
�b) For residential land divisions and un-platted single-familv residential lots, the
transportation impact fee may be deferred, but shall be paid no later than the closin� of sale of
each individual house. Covenants prepared bv the city to enforce pavment of the deferred fees
shall be recorded at the applicant's expense on each lot at the time ofplat recordin� for
residential land divisions and prior to buildingpermit issuance for un-platted single-familv
residential lots. The fee shall be calculated based on the impact fee schedule in effect on the date
of pavment of the impact fee.
Section 7. 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, shall
not affect the validity of the remainder of the ordinance, or the validity of its application to any
other persons or circumstances.
Section 8. 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 9. Ratification. Any act consistent with the authority and prior to the effective
date of this ordinance is hereby ratified and affirmed.
Section 10. Effective Date. This ordinance shall ta.ke effect July 2, 2010 as provided by
law.
Ordinance No. 10-658 Page 8 of 9
PASSED by the City Council of the City of Federal Way this 18 day of May, 2010.
ATTEST:
CITY OF FEDERAL WAY
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CITY CLERK, CARO MCN Y, CMC
APPROVED AS TO FORM:
�a��
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK:
COUNCIL BILL NO.
PASSED BY THE CITY COUNCIL
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
4/27/2010
537
5/18/2010
5/22/2010
7/2/2010
10-658
Ordinance No. 10-658 Page 9 of 9