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Federal Way City Zoning Code

Division III

Mitigation and Fees

19.90.010 Definitions.

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. Terms not defined here are defined according to Chapter 19.05 FWRC or FWRC 1.05.020 in that order. The public works director shall have the authority to resolve questions of interpretation or conflicts within this chapter.

“Affected intersection” means any intersection within the city meeting the requirements of FWRC 19.90.070 and having a direct traffic impact as a result of development activity.

“Available capacity” means capacity which can be encumbered, reserved, or committed to future users, expressed in an appropriate unit of measure, such as p.m. peak hour trips.

“Background traffic” means existing traffic levels and the anticipated traffic from all proposals for which CRCs have been approved under the provisions of this chapter.

“Build-out year conditions” means the volume of traffic that is projected to occur on the roadway system as of the anticipated date of occupancy of a proposal. Traffic conditions include regional traffic and the anticipated traffic from all proposals for which CRCs have been approved under the provisions of this chapter.

“Capacity” means the availability of an affected intersection to accommodate increased traffic resulting from a development without causing the LOS to fall below the standards established in the comprehensive plan.

“Capacity reserve certificate (CRC)” means the certificate issued by the city pursuant to the terms and conditions of this chapter which constitutes the proof that adequate capacity for each affected intersection has been reserved to serve the densities and intensities of development within the time frame designated on the certificate.

“City of Federal Way development standards” means those standards adopted by the Federal Way public works director.

“Concurrency denial letter” means a letter issued by the director which summarizes the results of the concurrency evaluation and the reason for denying the request for a concurrency reserve certificate.

“Concurrency evaluation” means the evaluation by the director to ensure that necessary roadway improvements are made concurrent with proposed development activity, pursuant to RCW 36.70A.070.

“Concurrency management” means the process local jurisdictions use to ensure that necessary roadway improvements are made concurrent with proposed development activity, pursuant to RCW 36.70A.070.

“Direct traffic impact” means any net increase in vehicle traffic generated by a proposed development.

“Director” means the director of the department of public works or her/his designee.

“Level of service (LOS)” means a qualitative measure describing operational conditions within a traffic stream, described with alphabetical representations of “A” through “F” as defined in the Highway Capacity Manual prepared by the Transportation Research Board of the National Research Council, to indicate the amount of congestion and delay at particular locations, and adopted by the city.

“Net new trips” means the trip generation of the development activity less any allowable credit for existing activity that will be replaced, demolished or abandoned as part of the development activity.

“Peak hour” means the highest volume of traffic for a continuous hour between 4:00 p.m. and 6:00 p.m. on weekdays.

“Reserved capacity” means capacity which has been allocated to a particular property through issuance of a capacity reserve certificate reserving capacity for a set period of time.

“Select zone analysis” means a travel demand model analysis that identifies trips generated within a selected transportation analysis zone.

“Six-year transportation improvement program (TIP)” means the annually adopted transportation improvement program which identifies all the city’s transportation needs over the next six years, including the total project costs.

“Standards” means the adopted city of Federal Way development standards.

“Total project cost” means the total cost for the transportation projects, as defined in the current TIP. This cost includes, but is not limited to, studies, design, right-of-way acquisition, utility relocation, grading, and construction.

“Transportation analysis zone” means the area defined within a travel demand model representing all the land uses contained within that area.

“Trip assignment” means the determination within a travel demand model of the number and type of trips using a defined roadway.

“Trip distribution” means the determination within a travel demand model of the number and type of trips traveling between any given pair of transportation analysis zones.

“Trip generation” means the number of peak hour trips estimated to be produced by the development activity using Institute of Transportation Engineers (ITE), current edition, or other methodology approved by the director.

“Trip generation credit” means a reduction in the number of new peak hour trips attributed to an application as described in FWRC 19.90.080, equal to the number of peak hour trips generated on the site described on the application from uses that have had a SEPA analysis prior to the effective date of the ordinance adopting this chapter that have ceased or will cease if the development permit is granted.

(Ord. No. 09-628, § 3, 10-20-09; Ord. No. 09-593, § 20, 1-6-09; Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-151.)

19.90.020 Purpose.

The purpose of this chapter is to implement the concurrency provisions of the transportation element of the city’s comprehensive plan, in accordance with RCW 36.70A.070(6)(e), consistent with WAC 365-195-510 and 365-195-835 as currently exists or as hereafter amended. No development permit shall be issued except in accordance with this chapter.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-152.)

19.90.030 Authority.

The director of public works has the authority to adopt rules and regulations to carry out the provisions of this chapter and has the authority to administer and enforce this chapter and any such rules and regulations including making determinations regarding concurrency and issuing capacity reserve certificates (CRCs) according to the procedures in this chapter. It is unlawful to violate or fail to comply with any provision of this chapter or any such rule or regulation.

The director’s determination of concurrency and the issuance or nonissuance of a CRC shall be integrated, insofar as possible, with any applicable decision making processes on permits, applications, and proposals submitted to the city for review and decision. For each development activity subject to concurrency evaluation and the requirement for a CRC, the director shall determine how the review can be best integrated with the decision making process.

(Ord. No. 09-597, § 51, 1-6-09; Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-153.)

19.90.040 Applicability.

(1) This chapter shall apply to all applications for development permits, except for development exempt under FWRC 19.90.060, if the development activity will generate any net new trips in the peak hour.

(2) All construction or changes in use initiated pursuant to a development permit for which a SEPA decision was issued prior to the effective date of the ordinance codified in this chapter shall be exempt from the provisions of this chapter. However, if the city determines that a previously issued development permit for which the SEPA decision was issued has lapsed or expired, pursuant to the applicable development regulations, then no subsequent development permit shall be issued except in accordance with this chapter.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-154.)

19.90.050 Capacity reserve certificate required.

(1) Prior to the issuance of any permit for a nonexempt development activity, the director shall determine if the proposal is covered by an existing CRC or if capacity exists on the road facilities to permit the proposed development activity. Permits for the development activity shall be issued only if the director finds that the activity is covered by an existing CRC or capacity exists in accordance with level of service standards adopted in the comprehensive plan. Where such capacity exists, the director shall issue a CRC to the applicant for the development activity.

(2) A CRC shall be issued only after a capacity evaluation is performed indicating that capacity is available on all applicable road facilities.

(3) In no event shall the director determine concurrency for a greater amount of capacity than is needed for the development proposed.

(4) Residential subdivisions shall be evaluated for concurrency as a single development permit. Commercial subdivisions and other projects constructed in phases shall be evaluated for concurrency as each phase is submitted for applicable development permits, notwithstanding any requirement to analyze the commercial subdivision as a whole under SEPA.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-155.)

19.90.060 Exempt development.

(1) Any development activity or development permit may be exempted from this chapter if the development activity or development permit is deemed by the director to generate no net new trips in the peak hour.

(2) The following types of development permits are typically exempt from concurrency management review and the requirements of this chapter because they do not create additional long-term impacts on road facilities. However, if any development permit from the list below generates any net new trips in the peak period, it shall not be exempt from concurrency evaluation.

(a) Boundary line adjustment;

(b) Demolition permit;

(c) Electrical permit;

(d) Fire protection system permit;

(e) Tenant improvements with no change of use;

(f) Land surface modification;

(g) Lot line elimination;

(h) Mechanical permit;

(i) Plumbing permit;

(j) Right-of-way modification;

(k) Right-of-way use permit;

(l) Sign permit;

(m) Single-family remodeling with no change of use;

(n) Rezones;

(o) Comprehensive plan amendment;

(p) Shoreline permit;

(q) Commercial subdivisions;

(r) Accessory dwelling unit (ADU);

(s) Binding site plan (BSP);

(t) Business license;

(u) Use process I.

(3) Exemption from concurrency review fees. City-owned facilities shall be exempted from the concurrency review fees. City-owned facilities shall not be exempted from concurrency review and appropriate mitigation, if any.

(Ord. No. 09-628, § 4, 10-20-09; Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-156.)

19.90.070 Level of service standards.

The director shall use the LOS standards set forth in the comprehensive plan to make concurrency evaluations as part of the review of any application for a CRC issued pursuant to this chapter.

(1) The street system measured for concurrency purposes are all intersections of collectors and arterials as defined in the city’s comprehensive plan, except for the intersections of two or more minor collectors, as these intersections would exist upon completion of all projects listed in the currently adopted TIP and currently funded projects by other transportation agencies.

(2) The city’s adopted LOS standards shall be applied in the review of development activity pursuant to administrative procedures developed by the public works director.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-157.)

19.90.080 Application for a capacity reserve certificate.

(1) An application for a CRC shall be on a form provided by the director. The application shall be submitted and accompanied by the requisite fee, as determined by city council resolution.

(2) An applicant may request a concurrency feasibility analysis. However, a CRC shall not be issued for applications not associated with an active development permit, nor shall the trips generated by the development proposal be reserved. The director may adjust applicable fees for subsequent analyses on the same property associated with an active development permit to the extent that the director determines data from the feasibility analysis remains valid.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-158.)

19.90.090 Amendments to capacity reserve certificates.

(1) Any request to increase the number of trips from a development application for which capacity is reserved shall require an analysis that determines that:

(a) The analysis used for the development’s original CRC is still valid; and

(b) No level of service impact is reasonably anticipated.

In addition, the following conditions must be met in order to amend an existing CRC:

(c) The application to amend an existing CRC must be received within one year of the issue date of the CRC;

(d) The trips generated by the amendment may not exceed the greater of 10 trips or 10 percent of the trips approved in the existing CRC.

(2) The analysis will be used to develop:

(a) A finding that the additional capacity sought by the applicant through an amended CRC is available to be reserved by the project or can be made available through mitigation of the additional impact; or

(b) A finding that the amendment is denied.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-159.)

19.90.100 Use of reserved capacity.

When a valid development permit is issued for a project possessing a CRC, the CRC shall continue to reserve the capacity until the development permit expires, is withdrawn, or is cancelled, whichever occurs first.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-160.)

19.90.110 Transfer of reserved capacity.

Reserved capacity cannot be sold or transferred to property not included in the legal description provided by the applicant in the application for a CRC.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-161.)

19.90.120 Capacity evaluation method.

(1) Any development permit application that will generate any net new trips in the peak hour shall require a CRC.

(2) For the purposes of this chapter, application for a development permit shall include consideration of the cumulative impacts of all development permit applications for contiguous properties that are owned or under the control of the same owner, when one or more development permits would be issued within two years of the date of issuance of a development permit for such contiguous property.

(3) Increased impact on affected intersections. If a development activity would have a greater impact on affected intersections than the previous use, then a CRC shall be required for the net increase only to the extent that trips generated by the last previous use were analyzed and, if required, mitigated by a previous SEPA decision or CRC; otherwise, a CRC shall be required for all trips generated by the development activity.

(4) Demolition or termination of use. In the case of a demolition or termination of an existing structure or use, only to the extent that trips generated by the last previous use were analyzed and, if required, mitigated by a previous SEPA decision or CRC, shall a trip generation credit be applied to the trip generation for the use subsequent to the effective date of the ordinance codified in this chapter. The number of trips allowed in the credit shall be as estimated using ITE’s Trip Generation, or other methodology approved by the director.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-162.)

19.90.130 Concurrency administration – Purpose and procedure.

Where either the city or the applicant may perform any part of the concurrency transportation impact analysis, analysis prepared by the applicant is subject to the review and approval of the city at the applicant’s expense. The applicant may also review and comment on any analysis prepared by the city.

(1) The concurrency management transportation impact analysis may be prepared by the city or the applicant and shall follow the procedure outlined below. Each development permit subject to this chapter shall be analyzed in the order the concurrency application is deemed complete by the director, as described in subsection (2) of this section. Concurrency transportation impact analyses shall be completed sequentially in the order of receipt of the concurrency application. The most recent concurrency management transportation impact analysis shall be the beginning point for each succeeding concurrency management transportation impact analysis.

(2) In performing the concurrency evaluation, the city or the applicant subject to the city’s approval shall determine the impact of the traffic generated by the proposed development activity on the city’s road system. The evaluation shall be based on data generated by the city, by professional associations, by the applicant and, if needed, by independent analysis. The city shall examine the data to verify that existing and projected trip generation is consistent with the latest version of the ITE’s Trip Generation or documented generation for uses not typical of uses in Trip Generation. Upon successful evaluation, the concurrency application will be deemed complete by the director.

(3) The city or the applicant shall perform level of service calculations for all applicable intersections affected by the development based upon build-out year conditions with and without the proposed development. The city or the applicant shall determine if the capacity on the city’s road facilities, plus the capacity that is or shall be generated by all existing, reserved, and approved development, can be provided while meeting the LOS standards set forth in the comprehensive plan.

(4) Technical provisions for each concurrency evaluation shall be prepared in the following format:

(a) Project description shall be provided by the applicant in enough detail to accurately determine the scope of analysis required.

(b) Analysis scope shall be provided by city after consultation with affected departments.

(c) The city, based on the information supplied by the applicant, shall determine project trip generation. If the applicant provides a detailed trip generation study, that data shall be used for concurrency management traffic impact analysis at the discretion of the public works director. The applicant may also review and comment on a city-prepared calculation of trip generation.

(d) Project trip assignment to the street system shall be provided by the city, consistent with the most current and updated travel demand forecasting model. Three levels of analysis are defined based on the number of new trips generated:

(i) For applications generating less than 50 peak hour trips, a select zone analysis shall be conducted.

(ii) For applications generating 50 peak hour trips or more, but less than 500 peak hour trips, a new trip assignment shall be conducted.

(iii) For applications generating 500 or more peak hour trips, a new trip distribution and assignment shall be conducted.

(e) Traffic volumes at existing intersections that include background traffic shall be provided by the city.

(f) The city shall include appropriate through traffic to each affected intersection to obtain a revised traffic assignment for affected roadways and intersections.

(g) The applicant or the city, at the applicant’s request and expense, in compliance with the latest version of the Highway Capacity Manual, shall complete the capacity analysis using the city’s chosen software. The applicant may review and comment on a city-prepared capacity analysis.

(h) After verification of the capacity analysis, the applicant or the city, at the applicant’s request and expense, shall prepare the final report.

(i) The applicant or the city, at the applicant’s request and expense, may propose suggested mitigation measures for any LOS failures identified in the capacity analysis.

(Ord. No. 09-628, § 5, 10-20-09; Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-163.)

19.90.140 Concurrency determination letter.

The director shall issue a concurrency determination letter to the applicant advising the applicant as to whether available capacity exists. If the applicant is not the property owner, the concurrency determination letter shall also be sent to the property owner. The concurrency determination letter shall identify the application and identify which status is determined to be applicable to the application: approval; approval with mitigation; or denial.

(1) Approval with mitigation shall include a recommendation that would provide adequate capacity and a description of the options available to the applicant. These may include:

(a) The applicant may agree to construct the recommended mitigation measures at the applicant’s cost;

(b) The applicant may agree to construct alternative mitigation measures that address the level of service deficiencies, subject to the approval of the director; or

(c) The applicant may modify the development proposal to reduce trip generation to within available capacity by any combination of capacity improvements and transportation demand management measures, subject to the approval of the director.

(2) Denial. If no appeal is transmitted to the director pursuant to FWRC 19.90.160 within 30 calendar days after issuance of the determination, the encumbrance shall be released and made available for subsequent applications.

(Ord. No. 09-628, § 6, 10-20-09; Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-164.)

19.90.150 Mitigation methods.

(1) If mitigation is required to meet the level-of-service standard, the applicant may choose to:

(a) Reduce the size of the development until the standard is met,

(b) Delay the development schedule until the city and/or others provide needed improvements, or

(c) Provide the mitigation per subsection (2) of this section.

(2) Payment for and timing of improvements. The director shall determine the method by which assurance is provided the city that the mitigation is provided in a manner that is concurrent with development consistent with state law. This determination shall address whether the improvements are to be constructed by the applicant or if the applicant would fund the cost of the improvement to be constructed by the city or another party. If the latter case, the determination shall also include the appropriate amount and timing of payment to the city.

(a) Construction improvements subject to the city’s direct operational control which are required of a developer under FWRC 19.90.140 must be completed prior to issuance of a certificate of occupancy, final plat approval, or other such approval upon which new trips are generated.

(b) The developer may provide funding in an amount equal to the director’s cost estimate for improvements required under FWRC 19.90.140, if approved by the director. The director may require actual construction rather than provision of funding. Payment for transportation improvements must occur prior to issuance of building permit, final plat approval, or other such approval.

(c) All funds received by the city under subsection (2)(b) of this section shall be expended consistent with state law.

(d) A proposal for construction of transportation improvements to intersections partially or wholly outside the city’s direct operational control, or payment for those improvements in an amount equal to the director’s cost estimate, which improvements are required of a developer to meet the requirement of FWRC 19.90.140, must be submitted to the agencies which have control of the intersection prior to issuance of building permit, final plat approval, or other such approval.

(3) Transportation demand management.

(a) As a mitigation measure, the developer may propose to establish transportation demand management strategies to reduce single occupancy vehicle trips generated by the project. The director shall determine the corresponding trip volume reduction, considering adjacent land uses and trips generated, how well the site is served by transit, HOV facilities, bicycle facilities, and pedestrian facilities, workforce composition, employer-provided incentives, and parking availability, among others.

(b) The director shall monitor and enforce the transportation demand management performance as directed under Chapter 8.10 FWRC. A performance assurance device may be required as determined by the director.

(4) Decision criteria – Acceptable mitigation. Acceptable mitigation requires a finding by the director that:

(a) The mitigation is consistent with the comprehensive plan.

(b) The mitigation contributes to system performance.

(c) Improvements to an intersection or roadway may not shift traffic to other intersections for which there is no reasonable mitigation available.

(d) The improvement shall not violate accepted engineering standards and practices.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-165.)

19.90.160 Appeals.

The concurrency determination of the director may be appealed by the applicant or owner using the same process as the underlying development permit application or as provided for in process IV of this title if there is no underlying development permit. The appeal, in the form of a notice of appeal, must be delivered to the department of public works within 30 calendar days after issuance of the decision of the director. In those cases where the proposed development activity may require a public hearing, the hearings may be combined.

(Ord. No. 09-628, § 7, 10-20-09; Ord. No. 09-594, § 16, 1-6-09; Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-166.)

19.90.170 Annual report.

The city shall monitor LOS standards through an annual update of the six-year transportation impact program, which shall add data reflecting development permits issued and trip allocations reserved. The city’s traffic demand model shall be recalibrated at least biannually based on traffic count information, obtained from at a minimum the city’s public works department.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-167.)

19.90.180 Interagency coordination.

The city may enter into agreements 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.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-168.)

19.90.190 Coordination with other requirements.

(1) Concurrency determinations are categorically exempt from SEPA.

(2) Concurrency determinations provide for mitigation only for vehicle capacity issues during the weekday evening peak hour. Mitigation of transportation impacts outside of vehicle capacity issues during the weekday evening peak hour shall be addressed through other review processes (in city code, land use permit conditions, or SEPA). This analysis may be prepared either by the applicant or the city at the applicant’s expense.

(Ord. No. 06-525, § 1(Exh. A), 6-6-06. Code 2001 § 19-169.)

19.91.010 Title.

This chapter shall be hereinafter known as the city of Federal Way transportation impact fee (TIF).

(Ord. No. 09-627, § 3, 10-20-09)

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.

(Ord. No. 09-627, § 3, 10-20-09)

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 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 November 2020 (“rate study”), 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 chapter to assess impact fees for streets and roads. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the impact fee program.

(Ord. No. 20-901, § 3, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

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.

“Applicant” means a person who applies for a building permit under Chapter 19.20 FWRC and who is the owner of the subject property or the authorized agent of the property owner.

“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.

“Capital facilities plan” means the capital facilities element of the city’s comprehensive plan adopted pursuant to Chapter 36.70A RCW and such plan as amended.

“Council” means the city council of the city.

“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.

“Development approval” means any written authorization from the city authorizing the commencement of a development activity or use.

“Director” means the director of the department of public works of the city of Federal Way or her/his designee.

“Encumbered” means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for public facilities.

“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.

“Independent fee calculation” means the street and road impact calculation, and/or economic documentation prepared by an 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 transportation impact fee in the fee schedule accurately describe or capture the impacts of the development activity on public facilities.

“Interest” means the average interest rate earned in the last fiscal year by the city of Federal Way.

“ITE” means the Institute of Transportation Engineers.

“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.

“P.M. peak hour trips” means the total vehicular trip ends entering and leaving a place of new development activity on the adjacent public road or street during the p.m. peak hour.

“Project improvements” means 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.

“Public facilities,” 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.

“Rate study” means the Transportation Impact Fees Program, City of Federal Way, by Fehr & Peers, dated November 2020.

“RCW” means the Revised Code of Washington or, when followed by a numerical designation, a provision of the Revised Code of Washington.

“Residential” 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.

“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, lane, boulevard, highway, street, and other thoroughfare. For purposes of this chapter, public streets and roads are collectively referred to as “transportation.”

“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.

“Transportation” means public streets and roads and related appurtenances.

“Transportation 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.

(Ord. No. 20-901, § 4, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

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 19.91.070, 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 transportation impact fee in the current fee schedule as adopted by council.

(Ord. No. 20-901, § 5, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.060 Assessment of impact fees.

(1) 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, 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 that applies to the application.

(2) All impact fees shall be due and payable pursuant to the guidelines established in FWRC 19.100.070(3), except as authorized under FWRC 19.91.066.

(3) The public works department shall establish the transportation 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.

(4) For a change in use of an existing building or dwelling unit, including any alteration, expansion, replacement or new accessory building that generates additional trips and permitted after city incorporation, the impact fee shall be paid for the land use category of the new use, less any impact fee that would have been paid for the land use category of the existing building or dwelling unit set forth in the current fee schedule (regardless of whether impact fees were paid for the prior use). Other existing buildings or dwelling units permitted under King County prior to incorporation of the city must submit documentation of mitigation fees paid in order to receive an impact fees credit for the prior use.

(5) For mixed use developments, impact fees shall be imposed for the proportionate share of each land use based on the applicable measurement in the transportation impact fee rates set forth in the fee schedule.

(6) For accessory dwelling units, transportation impact fees shall not exceed 50 percent of the transportation impact fees required for a detached single-family dwelling.

(7) The department of community development services shall not issue the required building permit until a lien has been recorded pursuant to FWRC 19.100.075(3), or the transportation 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.

(Ord. No. 25-1010, § 3, 5-6-25; Ord. No. 20-901, § 6, 12-1-20; Ord. No. 16-822, § 3, 8-9-16; Ord. No. 10-658, § 3, 5-18-10; Ord. No. 09-627, § 3, 10-20-09)

19.91.066 Option for deferred payment of transportation impact fee.

An applicant may request, at any time prior to building permit issuance, and consistent with the requirements of this section, to defer to final building inspection the payment of a transportation impact fee for single-family residential dwelling units pursuant to FWRC 19.100.075. Per RCW 82.02.050(3)(b), the term of this deferral may not exceed 18 months from the date of building permit issuance.

(Ord. No. 20-901, § 7, 12-1-20; Ord. No. 16-822, § 5, 8-9-16.)

19.91.070 Independent fee calculations.

(1) If, in the judgment of the director, none of the fee categories or fee amounts set forth in FWRC 19.91.060 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.

(2) The applicant may opt not to have the impact fees determined according to the fee structure in the transportation 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 shall be prepared by a professional engineer or certified planner 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 transportation 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.

(3) 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 the council at the time of the submittal.

(4) There is a rebuttable presumption that the calculations set forth in the rate study and the fee set forth in the transportation impact 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 on the independent fee calculation, the specific characteristics of the development, and/or principles of fairness.

(5) Determinations made by the director pursuant to this section may be appealed as set forth in FWRC 19.91.180.

(Ord. No. 20-901, § 8, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.080 Exemptions.

(1) Except as provided for below, the following shall be exempted from the payment of transportation impact fees:

(a) 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.

(b) Miscellaneous improvements which do not generate increased p.m. peak trips, including, but not limited to, fences, walls, residential swimming pools, and signs.

(c) Demolition or moving of a structure when additional p.m. peak hour trips are not generated.

(d) A change of use that does not generate one or more p.m. peak hour trips.

(e) 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.

(f) Rezones, comprehensive plan amendments, land surface modifications, commercial subdivisions, boundary line adjustment and lot line eliminations, which do not generate any trips.

(g) Structures constructed by a regional transit authority as defined in RCW 82.02.090.

(2) The director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section or under other applicable law. Determinations of the director shall be subject to the appeals procedures set forth in FWRC 19.91.180.

(Ord. No. 20-901, § 9, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.090 Credits.

(1) 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 and/or construction provided by the applicant. Credits will be given only if the land, improvements, and/or the facility constructed are for one or more of the transportation projects listed in the rate study as the basis for calculating the impact fee.

(2) The director shall determine if requests for credits meet the criteria in subsection (1) of this section or under other applicable law. Determinations of the director shall be subject to the appeals procedure set forth in FWRC 19.91.180.

(3) 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.

(4) 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 disagrees 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 Chapter 18.40 RCW 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.

(5) The appraiser and/or licensed engineer shall be directed to determine the fair market value of the total value of the dedicated land, improvements, and/or construction provided by the applicant. The applicant shall pay for the actual costs for the appraisal.

(6) 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 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.

(7) No credit shall be given for project improvements or right-of-way dedications for direct access improvements to and/or within the subject development above and beyond what is proposed in the capital facilities plan.

(8) 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.

(9) Determinations made by the director pursuant to this chapter shall be subject to the appeals procedures set forth in FWRC 19.91.180.

(10) No impact fee for a specific development shall be increased or decreased once said fee has been paid.

(Ord. No. 20-901, § 10, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

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 transportation impact fee rates in the fee schedule acknowledge taxes and other revenue sources which are anticipated to be available to fund public improvements.

(Ord. No. 20-901, § 11, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.110 Establishment of impact fee account.

(1) Impact fee receipts shall be earmarked specifically and deposited in a special interest-bearing account.

(2) The city shall 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 on the fees shall be retained in the account and expended for the purposes for which the impact fees were collected.

(3) 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 10 years of receipt.

(Ord. No. 20-901, § 12, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.120 Authorization for interlocal agreement.

The mayor 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.

(Ord. No. 11-684, § 15, 1-18-11; Ord. No. 09-627, § 3, 10-20-09)

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.

(Ord. No. 09-627, § 3, 10-20-09)

19.91.140 Refunds.

(1) If the city fails to expend or encumber the impact fees within 10 years of when the fees were paid, 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.

(2) 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.

(3) Property owners seeking a refund of impact fees must submit a written request for a refund of the fees to the director within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

(4) 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.

(5) 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.

(6) 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 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 year after the second publication. At the end of one 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.

(7) 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 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 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 FWRC 19.91.180.

(Ord. No. 20-901, § 13, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.150 Use of funds.

(1) Pursuant to this title, transportation impact fees:

(a) Shall be used for one or more of the transportation projects listed in the rate study as the basis for calculating the impact fee, which are system improvements that will reasonably benefit the new development activity;

(b) Shall not be imposed to make up for deficiencies in public facilities; and

(c) Shall not be used for maintenance or operation.

(2) 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, 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, and any other expenses which can be capitalized.

(3) 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.

(4) 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.

(Ord. No. 20-901, § 14, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.160 Periodic adjustment of rates.

(1) The transportation impact fee in the fee schedule will be amended to reflect changes to the 20-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.

(2) Beginning January 1, 2021, and for every year thereafter, the transportation impact fee in the fee schedule shall be adjusted by the annual change in the June Consumer Price Index for the Seattle area.

(3) A new rate study, which establishes the transportation 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.

(Ord. No. 20-901, § 15, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.170 Administrative fees.

(1) There shall be a fee for the administration of the transportation impact fee program in an amount equal to five percent of the amount of the total transportation 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 only to defray the cost incurred by the city in performing actions related to implementation of this chapter and update of the transportation impact fee program. The administrative fee is not creditable or refundable.

(2) The administrative fee, in addition to the impact fee, shall be paid by the applicant at the same time as the impact fee.

(Ord. No. 20-901, § 16, 12-1-20; Ord. No. 09-627, § 3, 10-20-09)

19.91.180 Review by director and appeals.

(1) 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.

(2) 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.

(3) The applicant must first file a request for review regarding impact fees with the director, as provided herein:

(a) The request shall be in writing on the form provided by the city;

(b) The request for review by the director shall be filed within 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;

(c) No administrative fee will be imposed for the request for review by the director; and

(d) The director shall issue his/her determination in writing.

(4) 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 FWRC 19.91.070, or any other determination which the director is authorized to make pursuant to this chapter, may be appealed by the applicant or owner using the same process as the underlying development permit application or process I of this title 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.

(Ord. No. 09-627, § 3, 10-20-09)

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 43.21C 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 Chapters 43.21C and 82.02 RCW.

(Ord. No. 09-627, § 3, 10-20-09)

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.

(Ord. No. 09-627, § 3, 10-20-09)

19.91.210 Relationship to concurrency management.

Neither compliance with this chapter nor the payment of any fee hereunder shall constitute a determination of transportation concurrency under this chapter.

(Ord. No. 09-627, § 3, 10-20-09)

19.92.010 Title.

This chapter shall be hereinafter known as the city of Federal Way park impact fee (PIF).

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.020 Purpose and intent.

The purpose and intent of this chapter is for the collection of impact fees for public parks, open space, and recreation facilities, and providing for certain other matters in connection therewith.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.030 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 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 “Park Impact Fee Study, City of Federal Way” dated May 2023 (“PIF study”), and incorporates that PIF study into this title by this reference. The PIF study utilizes a methodology for calculating impact fees that fulfills all of the requirements of RCW 82.02.060(1). A copy of the PIF 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 chapter to assess impact fees for publicly owned parks, open space, and recreation facilities. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the impact fee program.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.040 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.

“Applicant” means a person who applies for a building permit under Chapter 19.20 FWRC and who is the owner of the subject property or the authorized agent of the property owner.

“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.

“Capital facilities plan” means the capital facilities element of the city’s comprehensive plan adopted pursuant to Chapter 36.70A RCW and such plan as amended.

“Council” means the city council of the city of Federal Way.

“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 19.92.080.

“Development approval” means any written authorization from the city of Federal Way which authorizes the commencement of a development activity or use.

“Encumber” means to reserve, set aside, or otherwise earmark the park impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for system improvements.

“Feepayer” means a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity or municipal corporation commencing a development activity which creates the demand for additional system improvements and which requires the issuance of a building permit or a permit for a change of use. Feepayer includes an applicant for a park impact fee credit.

“Impact fee schedule” means the table of impact fees to be charged per development, computed by the formula adopted under this chapter, indicating the standard fee amount per residential or commercial development that shall be paid as a condition of development within the city.

“Independent fee calculation” means the park impact fee calculation prepared by a feepayer to support the assessment of a park impact fee other than by the use of the rate study, or the calculations prepared by the parks director where none of the fee categories or fee amounts in the impact fee schedule accurately describe or capture the impacts of the development activity on public facilities.

“Owner” means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

“Park” means public parks, open space, trails, recreation facilities, and related appurtenances.

“Park impact fee” means a payment of money imposed by the city of Federal Way on development activity pursuant to this chapter as a condition of granting development approval. Park 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.

“Park impact fee account(s)” means the separate accounting structure(s) within the city’s established accounts, which structure(s) shall identify separately earmarked funds and which shall be established for the park impact fees that are collected. The account(s) shall comply with the requirements of RCW 82.02.070.

“Permit for change of use” or “change of use permit” means an official document which is issued by the city which authorizes a change of use of an existing building or structure or land.

“PIF study” means the “Park Impact Fee Study, City of Federal Way,” dated May 2023, and attached to the ordinance codified in this chapter, and as hereafter amended.

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

“Public facilities,” for purposes of this chapter, means the following capital facilities owned or operated by the city of Federal Way or other governmental entities: parks, open space, trails, or recreational facilities.

“System improvements,” for purposes of this chapter, means public park 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 the community at large, in contrast to project improvements.

(Ord. No. 25-1009, § 3, 4-15-25; Ord. No. 23-957, § 3, 6-6-23.)

19.92.050 Park impact fee methodology.

(1) The impact fee calculation is based on the PIF study attached to the ordinance codified in this chapter and by this reference fully incorporated herein. The actual park impact fee imposed shall be as set forth in the park impact fee section of the current impact fee schedule as adopted by council.

(2) Each development shall mitigate its impacts on the city’s parks facilities by payment of a fee that is based on the type of land use of the development and proportionate to the cost of the parks facility improvements necessary to serve the needs of growth.

(Ord. No. 25-1009, § 4, 4-15-25; Ord. No. 23-957, § 3, 6-6-23.)

19.92.060 Assessment of impact fees.

(1) The city shall collect park impact fees from applicants seeking development approvals from the city for any development activity in the city for which a building permit or change of use permit is required, consistent with the provisions of this chapter.

(2) When a park impact fee applies to a change of use permit, the park impact fee shall be assessed for the land use category of the new use under the PIF study, less any park impact fee that would have been assessed for the prior use under the PIF study. For purposes of this provision, a change of use should be reviewed based on the land use category provided in the PIF study that best captures the broader use of the property under development.

(3) For commercial developments, the actual impact fee assessed in the impact fee schedule may not exceed $0.00 through December 31, 2029.

(4) For mixed use developments, park impact fees shall be assessed for the proportionate share of each land use, based on the applicable measurement in the PIF study.

(5) For accessory dwelling units, park impact fees assessed shall not exceed 50 percent of the park impact fees required for a detached single-family dwelling.

(6) Park impact fees shall be determined at the time of the earliest complete application for a development approval required for the development activity using the impact fee schedule then in effect and shall be collected when each building permit or change of use permit triggering assessment of park impact fees is issued. Notwithstanding the foregoing, for all building permits or change of use permits that trigger assessment of park impact fees and are associated with the development activity, but are not issued within two years of the earliest complete application for a development approval applicable to the development activity, the total amount of the impact fees for such permits shall instead be calculated and collected at the time each permit is issued, using the impact fee schedule then in effect. Park impact fees shall be paid before the building permit or change of use permit is issued by the city.

(7) No less than 60 days prior to the end of the two-year period in subsection (6) of this section, an applicant may submit a written request with supporting documentation to the department of community development requesting an extension of the two-year period for up to one additional year. The community development director may approve such a request only if it meets the following criteria:

(a) The applicant has made substantial progress toward building permit or change of use permit issuance since the complete application for the development approval;

(b) There are circumstances beyond the applicant’s control which prevented issuance of the building permit or change of use permit; and

(c) The extension will not create or continue conditions that constitute a code violation or an attractive nuisance, contribute to erosion and sedimentation problems, or impact the public health, safety, and welfare.

Determinations of the community development director under this section shall be subject to the appeals procedures set forth in FWRC 19.92.150(4).

(Ord. No. 25-1010, § 4, 5-6-25; Ord. No. 23-957, § 3, 6-6-23.)

19.92.070 Independent fee calculations.

(1) If, in the judgment of the parks director, none of the fee categories or fee amounts set forth in the impact fee schedule accurately describes or captures the impacts of a new development on parks, the parks department may conduct independent fee calculations and the parks director may impose alternative fees on a specific development based on those calculations. The alternative fees and the calculations shall be set forth in writing and sent to the feepayer. Pursuant to RCW 82.02.060, where unusual circumstances are identified by the parks director, the standard fee may be adjusted in specific cases to ensure that impact fees are imposed fairly.

(2) There is a rebuttable presumption that the calculations set forth in the PIF study are valid. In calculating the fee imposed on a particular development, the city shall permit consideration of studies and data submitted by a feepayer in order to adjust the amount of the fee. The feepayer shall submit an independent fee calculation study to the parks director, who shall review the study to determine that the study:

(a) Is based on accepted impact fee assessment practices and methodologies;

(b) Uses acceptable data sources and the data used is comparable with the uses and intensities planned for the proposed development activity;

(c) Complies with the applicable state laws governing impact fees;

(d) Is prepared and documented by professionals who are mutually agreeable to the city and the feepayer and who are qualified in their respective fields; and

(e) Shows the basis upon which the independent fee calculation was made.

(3) In reviewing the study, the parks director may require the feepayer to submit additional or different documentation. If an acceptable study is presented, the parks director may adjust the fee for the particular development activity. The parks director shall consider the documentation submitted by the applicant, but is not required to accept such documentation that the parks director reasonably deems to be inaccurate or unreliable.

(4) A feepayer requesting an adjustment or independent fee calculation may pay the impact fees imposed by this chapter in order to obtain a building permit while the city determines whether to partially reimburse the feepayer by making an adjustment or by accepting the independent fee calculation.

(5) Any feepayer submitting an independent fee calculation will be required to pay 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 set by council resolution, and shall be paid by the feepayer prior to issuance of the parks director’s determination.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.080 Exemptions.

(1) The park impact fees are generated from the formula for calculating the fees set forth in this chapter. The amount of the impact fees is determined by the information contained in the adopted park and open space plan, park project list, and related documents, as appended to the city’s comprehensive plan. All development activity located within the city shall be charged a park impact fee; provided, that the following exemptions apply.

(2) The following shall be exempt from parks impact fees:

(a) Replacement of a structure with a new structure having the same use, at the same site, and with the same gross floor area, when such replacement is within 12 months of demolition or destruction of the previous structure.

(b) Alteration, expansion, or remodeling of an existing residential dwelling or structure where no new units are created and the use is not changed.

(c) Demolition of existing structures.

(d) Moving an existing structure within the city from one site to another.

(e) A development permit for a change of use that has less impact than the existing use.

(f) Building permits that do not result in an increased impact on parks.

(g) Minor changes in tenancies that are consistent with the general character of the included structure, building, or previous use.

(3) The community development director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section. Determinations of the community development director shall be subject to the appeals procedures set forth in FWRC 19.92.150(4).

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.090 Credits.

(1) A feepayer can request that a credit or credits for parks and recreation impact fees be awarded to them for parks and recreation improvement projects provided by the feepayer in excess of the standard requirements for the feepayer’s development if the land, improvements, and/or the facility constructed are identified as parks and recreation system improvements that provide capacity to serve new growth in the capital facilities plan, or the parks director, at their discretion, makes the finding that such land, improvements, and/or facilities would serve the parks and recreation goals and objectives of the capital facilities plan.

(2) For each request for a credit or credits, the parks director shall determine the value of dedicated land by using available documentation or selecting an appraiser from a list of independent appraisers maintained by the parks department to determine the value of the land being dedicated. The value of improvements will be determined through documentation submitted by the feepayer.

(3) The feepayer shall pay the cost of the appraisal and shall deposit on account the estimated cost of the appraisal as determined by the city at the time the feepayer requests consideration for a credit.

(4) After receiving the appraisal, the parks director shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating their agreement to the terms of the letter or certificate and return such signed document to the parks director before the impact fee credit will be awarded. The failure of the applicant to sign, date, and return such document within 60 days shall nullify the credit.

(5) Any claim for credit must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived.

(6) Determinations made by the parks director pursuant to this section shall be subject to the appeals procedures set forth in FWRC 19.92.150(4).

(7) Pursuant to and consistent with the requirements of RCW 82.02.060, the fee rate in the impact fee schedule has been reasonably adjusted for other revenue sources which are earmarked for, or proratable to, funding parks and recreation facilities.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.100 Establishment of park impact fee accounts.

(1) Park impact fee receipts shall be earmarked specifically and deposited in one or more special, interest-bearing accounts.

(2) The city shall establish one or more separate park impact fee accounts for the fees collected pursuant to this chapter. Funds withdrawn from the account or accounts must be used in accordance with the provisions of this chapter and applicable state law. Interest earned on the fees shall be retained in the account(s) and expended for the purposes for which the park impact fees were collected.

(3) On an annual basis, the finance director shall provide a report to the council on the park impact fee account showing the source and amount of all moneys collected, earned, or received, and the parks and recreation system improvements that were financed in whole or in part by impact fees.

(4) Impact fees shall be expended or encumbered within 10 years of receipt, unless the council identifies in written findings an extraordinary and compelling reason or reasons for the delay.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.110 Administrative guidelines.

The parks and community development directors are hereby authorized to adopt internal guidelines for the administration of park impact fees, which include the adoption of procedural rules.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.120 Refunds.

(1) If the city fails to expend or encumber the park impact fees within 10 years of the date the fees were paid, unless extraordinary or compelling reasons are established pursuant to FWRC 19.92.130, the current owner of the property on which park impact fees have been paid may receive a refund of such fees. In determining whether park impact fees have been expended or encumbered, park impact fees shall be considered expended or encumbered on a first-in, first-out basis.

(2) 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 must be the current owner of record of the real property against which the park impact fee was assessed.

(3) Owners seeking a refund of park impact fees must submit a written request for a refund of the fees to the parks director within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

(4) Any park 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 system improvements for which they were collected.

(5) Refunds of park impact fees or offsets against subsequent park impact fees under this section shall include any interest earned on the park impact fees by the city.

(6) When the city seeks to terminate any or all components of the park 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 times and shall notify all potential claimants by first class mail at the last known address of the claimant. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the public facilities for which the park impact fees were collected. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

(7) The city shall also refund to the current owner of property for which park impact fees have been paid, all park impact fees paid including interest earned on the park impact fees, if the development activity for which the park impact fees were imposed did not occur; provided, however, that if the city has expended or encumbered the park impact fees in good faith prior to the application for a refund, the parks director may decline to provide the refund. If, within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the parks director for an offset in the amount of the fee originally paid and not refunded. The petitioner must provide receipts of park impact fees previously paid for a development activity of the same or substantially similar nature on the same real property or some portion thereof. Determinations of the parks director shall be in writing and shall be subject to the appeals procedures set forth in FWRC 19.92.150(4).

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.130 Use of park impact fees.

(1) Pursuant to this chapter, park impact fees shall be used for parks and recreation facilities that will reasonably benefit growth and development, and only for park facilities addressed by the city’s capital facilities element of the comprehensive plan.

(2) Park impact fees shall not be used to make up deficiencies in city facilities serving an existing development.

(3) Park impact fees shall not be used for maintenance and operations, including personnel.

(4) Park impact fees may be used for but not limited to land acquisition, site improvements, engineering and architectural services, permitting, financing, administrative expenses, planning, mitigation costs, capital equipment pertaining to parks facilities, and any other expenses which can be capitalized.

(5) Park impact fees may also be used to recoup public improvement costs incurred by the city to the extent that growth and development will be served by the previously constructed improvement.

(6) In the event bonds or similar debt instruments are or have been issued for parks facility improvements, park impact fees may be used to pay the principal and interest on such bonds.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.140 Administrative fees.

(1) For each park impact fee imposed, there shall be charged an administrative fee, the amount of which shall be set by council resolution. The administrative fee shall be deposited into an administrative fee account within the park impact fee account(s). Administrative fees shall be used to defray the city’s actual costs associated with the assessment and collection and update of the park impact fees. An administrative fee is not refundable or creditable.

(2) The administrative fee shall be paid by the feepayer at the same time as the park impact fee.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.150 Appeals.

(1) The applicant may pay the park impact fees under protest pending appeal to avoid delays in the issuance of building permits or change of use permits. No appeal shall be permitted until the impact fees at issue have been paid.

(2) 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.

(3) The applicant must first file a request for review regarding impact fees with the parks director, as provided herein:

(a) The request shall be in writing on the form provided by the city;

(b) The request for review by the parks director shall be filed within 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;

(c) No administrative fee will be imposed for the request for review by the director; and

(d) The parks director shall issue his/her determination in writing.

(4) Determinations of the parks or community development director with respect to the applicability of the impact fees to a given development activity, the availability or value of a credit, the independent fee calculation which is authorized in FWRC 19.92.070, the extension of the two-year period in FWRC 19.92.060(5), or any other determination which the parks or community development director is authorized to make pursuant to this chapter, may be appealed by the applicant or owner using the same process as the underlying development permit application or process I of this title if there is no underlying development permit, substituting the parks director for the community development director as necessary. The appeal, in the form of a letter of appeal, must be delivered to the appropriate department within 14 calendar days after issuance of the decision under appeal. 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.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.160 Existing authority unimpaired.

Nothing in this chapter shall preclude the city from requiring the feepayer or the proponent of a development activity to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with Chapters 43.21C and 82.02 RCW.

(Ord. No. 23-957, § 3, 6-6-23.)

19.92.170 Periodic adjustment of rates.

Beginning January 1, 2027, and for every year thereafter, the park impact fee in the fee schedule shall be adjusted by the percentage change in the previous calendar year’s average monthly Engineering News-Record (ENR) Seattle Area Construction Cost Index values, relative to the corresponding average monthly ENR Construction Cost Index values for the preceding year, as calculated from August 1st through July 31st.

(Ord. No. 25-1009, § 5, 4-15-25.)

19.95.010 Findings and authority.

The city council of the city of Federal Way (the “council”) hereby finds and determines that continuing growth and development in the city of Federal Way will create additional demand and need for school facilities, and the council finds that the Washington State Growth Management Act requires that new growth and development should pay a proportionate share of the cost of new facilities needed to serve the new growth and development.

Therefore, pursuant to Chapter 82.02 RCW, the council adopts this title to assess school impact fees. The provisions of this title shall be liberally construed in order to carry out the purposes of the council in establishing the school impact fee program.

(Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-209.)

19.95.020 Definitions.

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. To the extent they do not conflict with this section, the definitions in RCW 82.02.090 are adopted and apply throughout this chapter unless the context clearly requires otherwise. Terms not defined here or in RCW 82.02.090 are defined according to FWRC 1.05.020.

“Capital facilities plan” means the district’s capital facilities plan adopted by the school board consisting of:

(1) A forecast of future needs for school facilities based on the district’s enrollment projections;

(2) The long-range construction and capital improvements projects of the district;

(3) The schools under construction or expansion;

(4) The proposed locations and capacities of expanded or new school facilities;

(5) At least a six-year financing plan component, updated as necessary to maintain at least a six-year forecast period, for financing needed school facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues authorized by the voters and projected bond issues not yet authorized by the voters;

(6) Any other long-range projects planned by the district; and

(7) A recommended impact fee amount per dwelling unit type.

“Classrooms” means educational facilities of the district required to house students for its basic educational program. Specialized facilities as identified by the district, including but not limited to gymnasiums, cafeterias, libraries, administrative offices, and child care centers, are not classrooms.

“Construction cost per student” means the estimated cost of construction of a permanent school facility in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.

“Design standard” means the space required, by grade span and taking into account the requirements of students with special needs, which is needed in order to fulfill the educational goals of the district as identified in the district’s capital facilities plan.

“Developer” means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.

“Development activity” means any residential construction or expansion of a building, structure or use, any change in use of a building or structure, or any change in the use of land that creates additional demand for school facilities.

“Development approval” means any written authorization from the city which authorizes the commencement of a development activity or use.

“District” means the Federal Way School District No. 210, King County, Washington.

“Elderly” means a person aged 62 or older.

“Encumbered” means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for public facilities.

“Grade span” means the categories into which a district groups its grade of students, i.e., elementary school, middle or junior high school, and high school.

“Interlocal agreement” means the interlocal agreement by and between the city and the district as authorized in FWRC 19.95.090.

“Permanent facilities” means the facilities of the district with a fixed foundation which are not relocatable facilities.

“Relocatable facilities cost per student” means the estimated cost of purchasing and siting a relocatable facility in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.

“Relocatable facility” means any factory-built structure, transportable in one or more sections, that is designed to be used as an education space and is needed to prevent the overbuilding of school facilities, to meet the needs of service areas within the district, or to cover the gap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities.

“Site cost per student” means the estimated cost of a site in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.

“Standard of service” means the standard adopted by the district which identifies the program year, the class size by grade span and taking into account the requirements of students with special needs, the number of classrooms, the types of facilities the district believes will best serve its student population, and other factors as identified by the district. The district’s standard of service shall not be adjusted for any portion of the classrooms housed in relocatable facilities which are used as transitional facilities or for any specialized facilities housed in relocatable facilities. Except as otherwise defined by the school board pursuant to a board resolution, “transitional facilities” shall mean those facilities that are used to cover the time required for the construction of permanent facilities called for in the capital facilities plan, where the district has the necessary financial commitments in place to complete the permanent facilities.

“Student factor” means the number derived by the district to describe how many students of each grade span are expected to be generated by a dwelling unit. Student factors shall be based on district records of average actual student generation rates for new developments constructed over a period of not more than five years prior to the date of the fee calculation, unless such information is not available in the district, in which case data from adjacent districts, districts with similar demographics, or county-wide averages may be used. Student factors must be separately determined for single-family and multifamily dwelling units, and for grade spans.

(Ord. No. 23-958, § 3, 6-6-23; Ord. No. 09-600, § 16, 1-6-09; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-210.)

19.95.030 Impact fee program elements.

(1) Impact fees will be assessed on all residential development activity in the city based on the provisions of this chapter.

(2) The impact fee shall be reasonably related to the impact caused by the development and shall not exceed a proportionate share of the cost of system improvements that are reasonably related to the development.

(3) The recommended impact fee shall be based on a capital facilities plan developed by the district and approved by the school board.

(Ord. No. 23-958, § 4, 6-6-23; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-211.)

19.95.040 Recommended fee calculations.

(1) The recommended impact fees calculation for the district shall be based on the formula set forth in Exhibit A attached to the original ordinance codified in this chapter. A copy of the fee calculation formula shall be kept on file with the ordinance codified in this chapter in the office of the Federal Way city clerk. Such formula shall take into account the following: The capital facilities needs of the district as identified in the capital facilities plan, the district’s student generation rates for single-family and multifamily dwelling units, the school site and school construction costs per student per grade level, the district’s standard of service, and the relocatable facilities cost per student per grade level.

(2) Separate fees shall be calculated for single-family and multifamily dwelling units, and separate student generation rates must be determined by the district for each type of dwelling unit. For purposes of this chapter, manufactured homes shall be treated as single-family dwelling units and duplexes shall be treated as multifamily dwelling units.

(3) The recommended fee calculations shall be made on a district-wide basis to assure maximum utilization of all school facilities in the district currently used for instructional purposes. Impact fees shall be calculated annually and set forth in the city fee schedule pursuant to FWRC 19.95.100 and 19.95.110.

(4) The formula in Exhibit A provides a credit for the anticipated tax contributions that would be made by the development based on historical levels of voter support for bond issue in the district, which historical levels shall be determined by the district.

(5) The formula also provides for a credit for school sites or facilities actually provided by a developer which the district finds to be acceptable as provided for in FWRC 19.95.060.

(Ord. No. 23-958, § 5, 6-6-23; Ord. No. 97-293, § 1, 4-15-97; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-212.)

19.95.045 Impact fee maximum.

(1) For developments in the CC-C, CC-F, or BC zones, notwithstanding the recommended fee calculation under FWRC 19.95.040, the impact fee assessed under FWRC 19.95.040 for studio, one-bedroom, and two-bedroom dwelling units in the development may not exceed $0.00.

(2) For other dwelling units in developments in the CC-C, CC-F, or BC zones, and developments outside the CC-C, CC-F, and BC zones, notwithstanding the recommended fee calculation under FWRC 19.95.040, the impact fee assessed under FWRC 19.95.040 may not exceed:

(a) Three thousand six hundred four dollars per single-family dwelling unit; or

(b) Two thousand two hundred twenty-two dollars per multifamily dwelling unit.

(3) Starting in 2025, the impact fee maximum established in subsection (2) of this section shall be increased by five percent or by the percentage change in the previous calendar year’s average monthly Engineering News-Record (ENR) Seattle Area Construction Cost Index values, relative to the corresponding average monthly ENR Construction Cost Index values for the preceding year, as calculated from August 1st through July 31st, whichever is lower.

(Ord. No. 23-958, § 11, 6-6-23.)

19.95.047 Council discretion in adopting impact fee.

As provided in FWRC 19.95.040 and 19.95.045, the impact fee adopted by city council in the fee schedule shall be based on the recommended fee calculation, and no higher than the impact fee maximum. The city council may, at its discretion, impose a lesser impact fee than the recommended fee calculation amount and/or impact fee maximum.

(Ord. No. 23-958, § 12, 6-6-23.)

19.95.050 Assessment of impact fees.

(1) The city shall collect school impact fees in the amounts specified in the fee schedule adopted by city council, from any applicant seeking development approval from the city where such development activity requires the issuance of a residential building permit or a manufactured home permit.

(2) For all applications for single-family, multifamily residential building permits, and manufactured home permits, the total amount of the impact fees shall be calculated at the time of the earliest complete application for a development approval required for the development activity using the fee schedule then in effect and shall be collected from the applicant when the residential building permit or manufactured home permit is issued. Notwithstanding the foregoing, for all residential building permits or manufactured home permits associated with the development activity not issued within two years of the earliest complete application for a development approval applicable to the development activity, the total amount of the impact fees for such permits shall instead be calculated and collected at the time each permit is issued, using the fee schedule then in effect. Irrespective of the date that the application for a residential building permit or manufactured home permit was submitted, no permit shall be issued until the required school impact fees set forth in the fee schedule have been paid, except as authorized under FWRC 19.95.055.

(3) No less than 60 days prior to the end of the two-year period in subsection (2) of this section, an applicant may submit a written request with supporting documentation to the department of community development requesting an extension of the two-year period for up to one additional year. The community development director may approve such a request only if it meets the following criteria:

(a) The applicant has made substantial progress toward residential building permit or manufactured home permit issuance since the complete application for the development approval;

(b) There are circumstances beyond the applicant’s control which prevented issuance of the residential building permit or manufactured home permit; and

(c) The extension will not create or continue conditions that constitute a code violation or an attractive nuisance, contribute to erosion and sedimentation problems, or impact the public health, safety, and welfare.

Determinations of the community development director under this section shall be subject to the appeal procedures set forth in FWRC 19.95.070.

(Ord. No. 23-958, § 6, 6-6-23; Ord. No. 16-822, § 6, 8-9-16; Ord. No. 97-293, § 2, 4-15-97; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-213.)

19.95.055 Option for deferred payment of school impact fee.

An applicant may request, at any time prior to building permit issuance, and consistent with the requirements of this section, to defer to final building inspection the payment of a school impact fee for a single-family residential dwelling unit pursuant to FWRC 19.100.075.

(Ord. No. 16-822, § 7, 8-9-16.)

19.95.057 Administrative fees.

(1) For each impact fee imposed, there shall be charged an administrative fee for the administration of the school impact fee program in the amount specified in the city fee schedule. The administrative fee shall be deposited into an administrative fee account within the school impact fee fund provided for in FWRC 19.95.080. Administrative fees shall be used only to defray the cost incurred by the city in performing actions related to implementation of this chapter and update of the school impact fee program. The administrative fee is not creditable or refundable.

(2) The administrative fee shall be paid by the applicant at the same time as the impact fee.

(Ord. No. 23-958, § 13, 6-6-23.)

19.95.060 Exemptions and credits.

(1) The following shall be exempt from the application of impact fees:

(a) Any form of housing exclusively for the elderly, including nursing homes and retirement centers, so long as these uses are maintained in perpetuity and the necessary covenants or declarations of restrictions are recorded on the property to ensure that no children will reside in the development; or

(b) The replacement of a structure with a new structure of substantially the same size and use at the same site or lot when such replacement occurs within 12 months of the demolition or destruction of the prior structure; or

(c) Alterations or expansion or enlargement or remodeling or rehabilitation or conversion of an existing dwelling unit where no additional units are created and the use is not changed;

(d) Accessory dwelling units (“ADUs”).

(2) Arrangement may be made for later payment with the approval of the district only if the district determines that it will be unable to use or will not need the payment until a later time; provided, that sufficient security, as defined by the district in its sole reasonable discretion, is provided to assure payment. Security shall be made to and held by the district, which will be responsible for tracking and documenting the security interest.

(3) The developer shall receive a credit for any payment which has already been made for the lot or development activity in question, either as a condition of development approval or pursuant to the terms of a voluntary mitigation agreement. The fee amount due on the development activity shall be reduced by the amount of the credit.

(4) The developer can request that a credit or credits be awarded for the value of dedicated land, improvements, or construction provided by the developer. The district shall first determine the general suitability of the land, improvements, and/or construction for district purposes. Second, the district shall determine whether the land, improvements, and/or the facility constructed are included within the district’s adopted capital facilities plan or the board of directors for the district may make the finding that such land, improvements, and/or facilities would serve the goals and objectives of the capital facilities plan of the district. The district shall forward its determination to the city, including cases where the district determines that the dedicated land, improvements, and/or construction are not suitable for district purposes.

(5) For each request for a credit or credits, if appropriate, the district shall select an appraiser from a list of independent appraisers. The appraiser shall be directed to determine the value of the dedicated land, improvements, or construction provided by the developer for the district. The developer shall pay for the cost of the appraisal.

(6) After receiving the appraisal, the district shall provide the developer with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date such letter or certificate indicating his/her agreement to the terms of the letter or certificate, and return such signed document to the district before the city will award the impact fee credit. The failure of the applicant to sign, date, and return such document within 60 calendar days shall nullify the credit.

(7) Any claim for credit must be made no later than 20 calendar days after the submission of an application for a building permit.

(8) In no event shall the credit exceed the amount of the impact fees due.

(Ord. No. 23-963, § 7, 7-5-23; Ord. No. 96-265, § 1, 4-2-96; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-214.)

19.95.070 Appeals and independent calculations.

(1) The city may adjust the amount of the school impact fee assessed if one of the following circumstances exist; provided, that the developer can demonstrate to the city’s satisfaction that the discount included in the fee formula set forth in the district’s capital facilities plan fails to adjust for the error in the calculation or fails to ameliorate for the unfairness of the fee:

(a) The developer demonstrates to the city’s satisfaction that an impact fee assessment was incorrectly calculated; or

(b) Unusual and unique circumstances identified by the developer demonstrate that if the standard impact fee amount were applied to the development, it would be unfair, unjust or unlawful.

(2) Requests for fee adjustments, and the administrative appeals process for the appeal of an impact fee, shall follow the process for the appeal of the underlying development application.

(3) A developer may provide studies and data to demonstrate that any particular factor used by the district may not be appropriately applied to the development proposal, but the district’s data shall be presumed valid unless clearly demonstrated to be otherwise by the developer. The developer shall pay for the cost of the studies and data, and must demonstrate to the city’s satisfaction that the discount included in the fee formula set forth in the district’s capital facilities plan fails to adjust for the error in the factor or in the fee calculation.

(4) Any appeal of the decision of the city’s hearing examiner with regard to fee amounts shall follow the appeals process for the underlying development application and not be subject to a separate appeal process. Any errors in the fee formula identified as a result of an appeal should be referred to the council for possible modification.

(5) Impact fees may be paid under protest in order to obtain a permit or other development approval.

(Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-215.)

19.95.080 The impact fee account – Uses of impact fees and refunds.

(1) Impact fee receipts shall be earmarked specifically and retained in a special interest-bearing account established by the district solely for the district’s school impact fees as provided for in FWRC 19.95.090. All interest shall be retained in the account and expended for the purpose or purposes identified in subsection (2) of this section. Annually, the city, based on the report submitted by the district pursuant to FWRC 19.95.100, will forward a copy of the district’s report to the state of Washington, Growth Management Section, pursuant to RCW 82.02.070 which shows the source and amount of all monies collected, earned or received, and capital or system improvements that were financed in whole or in part by impact fees.

(2) Impact fees for the district’s system improvements shall be expended by the district for capital improvements including but not limited to school planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, relocatable facilities, capital equipment pertaining to educational facilities, and any other expenses which could be capitalized, and which are consistent with the district’s capital facilities plan.

(3) In the event that bonds or similar debt instruments are issued for the advanced provision of capital facilities for which impact fees may be expended and where consistent with the provisions of the bond covenants, 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.

(4) School impact fees shall be expended or encumbered within six years of receipt, unless the council identifies in written findings extraordinary and compelling reason or reasons for the district to hold the fees beyond the six-year period. The district may petition the council for an extension of the six-year period and the district set forth any such extraordinary or compelling reason or reasons in its petition. Where the council identifies the reason or reasons in written findings, the council shall establish the period of time within which the impact fees shall be expended or encumbered, after consultation with the district.

(5) The current owner of property on which an impact fee has been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within six years of receipt of the funds by the city, except as provided for in subsection (4) of this section. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. The city shall notify potential claimants by first-class mail deposited with the United States postal service addressed to the owner of the property as shown in the city’s tax records.

(6) An owner’s request for a refund must be submitted to the council in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever date is later. Any impact fees that are not expended or encumbered within the limitations in subsection (4) of this section, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section. Refunds of impact fees shall include any interest earned on the impact fees.

(7) Should the city seek to terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which a school impact fee was paid. 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 times and shall notify all potential claimants by first-class mail addressed to the owner of the property as shown in the city’s tax records. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the district, consistent with the provisions of this section. The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

(8) A developer may request and shall receive a refund, including interest earned on the impact fees, when:

(a) The developer does not proceed to finalize the development activity as required by statute or city code or the Uniform Building Code; and

(b) No impact on the district has resulted. “Impact” shall be deemed to include cases where the district has expended or encumbered the impact fees in good faith prior to the application for a refund. In the event that the district has expended or encumbered the fees in good faith, no refund shall be forthcoming. However, if within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner shall be eligible for a credit. The owner must petition the city and provide receipts of impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof. The city shall determine whether to grant a credit, and such determinations may be appealed by following the procedures set forth in FWRC 19.95.070.

(9) Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the city or the district on invested funds throughout the period during which the fees were retained.

(Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-216.)

19.95.090 Interlocal agreement.

(1) The mayor is authorized to execute, on behalf of the city, an interlocal agreement for the collection, expenditure, and reporting of school impact fees; provided, that such interlocal agreement complies with the provisions of this section, be in form and content acceptable to the city attorney and be approved by the city council.

(2) The district shall establish a school impact fee account with the office of the King County treasurer, who serves as the treasurer for the district. The account shall be an interest-bearing account, and the school impact fees received shall be prudently invested in a manner consistent with the investment policies of the district.

(3) For administrative convenience while processing the fee payments, school impact fees may be temporarily deposited in a city account. On a monthly basis, the city shall deposit the school impact fees collected for the district in the district’s school impact fee account.

(4) The district shall agree to indemnify and hold the city, its elected officials, officers, employees, agents, and volunteers harmless from any and all claims, demands, losses, actions and liabilities (including costs and all attorney fees) to or by any and all persons or entities, including, without limitation, their respective agents, licensees, or representatives, arising from, resulting from, or connected with the collection of impact fees or any other actions taken by the city pursuant to the terms of the ordinance codified in this chapter or pursuant to the terms of the interlocal agreement.

(Ord. No. 10-669, § 70, 9-21-10; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-217.)

19.95.100 Submission of district capital facilities plan and data.

On an annual basis, no later than May 1st of each year, the district shall submit the following materials to the city:

(1) The annual update of the district’s capital facilities plan;

(2) An updated fee calculation, and a proposed revised fee schedule which reflect the update to the district’s capital facilities plan; and

(3) An annual report on the school impact fee account, showing the source and amount of all monies collected, earned, or received, and the public improvements that were financed in whole or in part by impact fees.

(Ord. No. 97-293, § 3, 4-15-97; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-218.)

19.95.110 Review.

The city council shall review on an annual basis the materials received from the district and required under FWRC 19.95.100. The city council may make adjustments to the fee schedule as necessitated by its review, or applicable law and if the city council deems appropriate, shall adopt the fee schedule by resolution. The review and fee schedule adopted decision may occur in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan.

(Ord. No. 97-293, § 4, 4-15-97; Ord. No. 95-249, § 1, 11-21-95. Code 2001 § 14-219.)


Cross reference: Taxation, FWRC Title 3, Division I.


19.96.010 Purpose and intent.

The city council has determined that it is in the public interest to enact and impose surface and stormwater utility system development charges (SDC) for the purpose of recovering the equitable share of the cost of impacts to the city of Federal Way surface and stormwater utility facilities that result from development that increases impervious surfaces or changes pervious surfaces resulting in an increase in rainfall runoff.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.020 Definitions.

The following words and terms shall have the following meanings for the purposes of this chapter. Terms otherwise not defined herein shall be defined pursuant to Chapter 19.05 FWRC or given their usual and customary meaning.

“Equivalent service unit (ESU)” means the average amount of impervious surface area on single-family residential parcels within the city of Federal Way. Impervious surface area includes the single-family residence, driveway, walkway, paved areas, and other surfaces that do not allow penetration of stormwater runoff into the ground. The ESU value for the city of Federal Way has been calculated to be 3,200 square feet.

“Impervious surface area” means the nonvegetated surface area that either prevents or retards the entry of water into the soil mantle as under natural conditions prior to development and/or that causes water to run off the surface in greater quantities or at an increased rate of flow from the flow present under natural conditions prior to development. Common impervious surfaces include, but are not limited to, rooftops, walkways, patios, driveways, parking lots or stormwater areas, concrete or asphalt paving, gravel roads, packed earthen materials, and oiled, macadam or other surfaces that similarly impede the natural infiltration of stormwater.

“Redevelopment” for the purpose of assessing SDCs means a site that is already substantially developed (i.e., has 35 percent or more of existing hard surface coverage); the creation or addition of hard surfaces; the expansion of a building footprint or addition or replacement of a structure; structural development including construction, installation or expansion of a building or other structure; replacement of hard surface that is not part of a routine maintenance activity.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.030 System development charges methodology and applicability.

(1) System development charges (SDCs) are one-time fees that will be paid at the time of development and are intended to recover a share of the cost of system capacity needed to serve growth. No building permit, land use approval, short subdivision or subdivision approval, or any other permit allowing development within the city shall be granted except upon payment of the SDC required under this chapter. The annual SDC rate shall be included within the 2020 city of Federal Way fee schedule and will be calculated as a dollar amount per ESU. The SDC will be reviewed each year and any changes in the SDC rate shall be published in the city of Federal Way fee schedule. All development, which includes redevelopment, in the city that increases impervious surfaces will be assessed an SDC.

(2) SDCs do not include permit fees, application fees, the administrative fee for collecting and handling SDCs, or any other charge, fee, or tax imposed or required by the FWRC or any other entity.

(3) The SDC for 2020 shall be $981.00 per ESU.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.040 Assessment of system development charges.

(1) For the purposes of assessing an SDC, development of a single-family detached dwelling unit parcel as a single-family detached dwelling unit shall be assessed an SDC of one ESU, regardless of lot size or total square footage of new impervious surface area.

(2) For all other development, ESUs will be based on the total increase in square footage of impervious surface area. The total increase in square footage of impervious surface area will be identified at the time of the development review.

(3) Assessed SDCs shall be paid to the SWM SDC account prior to connection of private stormwater infrastructure to the city’s public drainage system.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.050 Deposit and use of system development charge funds.

(1) All monies obtained pursuant to this chapter shall be segregated, credited, and deposited to the credit of the storm and surface water utility. The monies deposited shall be expended only for administering, operating, maintaining, or improving storm and surface water facilities, including, but not limited to, all or any part of the cost of administering, planning, permitting, designing, financing, acquiring, constructing, maintaining, repairing, replacing, improving, or operating present or future storm and surface water facilities and/or property owned by the utility. Monies shall not be transferred to any other funds of the city except to pay for expenses directly attributable to the storm and surface water utility.

(2) In the event that bonds or similar debt instruments are or have been issued for the advanced provision of public improvements for which monies obtained pursuant to this chapter may be expended, said monies 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 development and redevelopment.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.060 Administrative guidelines.

The public works director is hereby authorized to adopt internal guidelines for the administration of SDCs, which may include the adoption of a procedures guide for SDCs.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.070 Annual adjustment.

Beginning January 1, 2021, and for every year thereafter, the SDC shall be adjusted by the annual change in the June CPI for the Seattle area.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.080 Administrative fee.

(1) There shall be a fee for the administration of the SDC program in an amount equal to five percent of the amount of the total assessed SDC. The administrative fee shall be deposited into an administrative fee account to the credit of the surface and stormwater utility. Administrative fees shall be used to defray the cost incurred by the city in the administration and update of the SDC program.

(2) The administrative fee, which is in addition to the assessed SDC, shall be paid by the applicant at the same time as the SDC.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.090 Appeals.

A person aggrieved by a decision of the public works director regarding the applicability or amount of SDCs to any development required under the provisions of this chapter may appeal the decision to the city’s hearing examiner using Process IV, Chapter 19.70 FWRC, within 14 calendar days of the issuance of the SDC decision. In those cases where the proposed development activity may require a hearing under the authority of other chapters of this Code, the hearings may be combined.

(Ord. No. 19-880, § 3, 12-3-19.)

19.96.100 Existing authority unimpaired.

Nothing in this chapter shall impair or preclude the city from requiring the applicant or the proponent of a development activity to mitigate the development impacts and/or adverse environmental impacts of a specific development pursuant to any provision of the FWRC, the State Environmental Policy Act, Chapter 43.21C RCW, and/or any other applicable federal, state, or local law, regulation, or standard 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 Chapters 43.21C and 82.02 RCW.

(Ord. No. 19-880, § 3, 12-3-19.)

19.100.010 Purpose.

It is the purpose of this chapter to provide alternatives for prospective developers of land within the city to mitigate the direct impacts that have been specifically identified by the city as a consequence of proposed development, and to make provisions for, including, but not limited to, the public health, safety and general welfare, for open spaces, drainageways, streets, alleys, other public ways, water supplies, sanitary wastes, parks, playgrounds and sites for schools and school grounds.

(Ord. No. 90-39, § 1(22.10), 2-27-90. Code 2001 § 19-41.)

19.100.020 Definition.

For purposes of this chapter, the term “development” shall include, but not be limited to, subdivisions, short subdivisions, binding site plans and any other development activity defined by FWRC Title 19, Zoning and Development Code.

(Ord. No. 90-39, § 1(22.20), 2-27-90. Code 2001 § 19-42.)

19.100.030 Determination of direct impact.

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;

(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.

(Ord. No. 10-658, § 4, 5-18-10; Ord. No. 90-39, § 1(22.30), 2-27-90. Code 2001 § 19-43.)

19.100.040 Costs.

The cost of any investigations, analysis or reports necessary for a determination of direct impact shall be borne by the applicant.

(Ord. No. 90-39, § 1(22.40), 2-27-90. Code 2001 § 19-44.)

19.100.050 Mitigation of direct impacts.

The official or body charged with granting the necessary approval for a proposed development shall review an applicant’s proposal for mitigating any identified direct impacts and determine whether such proposal is an acceptable mitigation measure considering the cost and land requirements of the required improvement and the extent to which the necessity for the improvement is attributable to the direct impacts of the proposed development. No official or body shall approve a development unless provisions have been made to mitigate identified direct impacts that are consequences of such development.

(Ord. No. 90-39, § 1(22.50), 2-27-90. Code 2001 § 19-45.)

19.100.060 Methods of mitigation.

(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 payment 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 applicable time limitations of Chapter 82.02 RCW, unless otherwise agreed to by the developer.

(d) Unless the property owner elects to defer payments authorized in FWRC 19.100.075, any payment not expended within applicable 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 applicable 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 a specified period of time 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.

(f) 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.

(Ord. No. 16-822, § 8, 8-9-16; Ord. No. 10-658, § 5, 5-18-10; Ord. No. 90-39, § 1(22.60.10 – 22.60.30), 2-27-90. Code 2001 § 19-46.)

19.100.070 Timing of fee payments.

Various sections of this Code require payment of fees to mitigate direct impacts of the development approval. Notwithstanding those fees eligible for deferment pursuant to subsections (1)(b), (1)(c) and (3)(c) of this section, the following describes when such fees shall be calculated and paid:

(1) Open space fee-in-lieu.

(a) As provided in FWRC 18.55.060 and 19.115.115, a fee in lieu of open space may be made to satisfy 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, or prior to building permit issuance for multifamily developments in the community business, city center core and city center frame zoning districts, unless deferred as noted below. The fee shall be calculated based upon the square footage of open space which otherwise would have been required to be provided multiplied by the subject property’s assessed or appraised value.

(b) For those residential land divisions vested prior to July 2, 2015, open space fees-in-lieu may be deferred, but shall be paid no later than the closing of sale of each individual house or five years from deferment of the fee, whichever is earlier. Covenants prepared by the city shall be recorded at the applicant’s expense on each lot at the time of plat recording to enforce payment of deferred fees. The fee shall be calculated at the time of plat recording and divided equally among all newly created lots. The fee shall be calculated based upon the square footage of open space which otherwise would have been required to be provided multiplied by the subject property’s assessed or appraised value. As consideration for the ability to defer open space fee-in-lieu payments beyond plat recording, the applicant agrees to waive the right to interest and/or a refund if payment is not expended within five years of collection.

(c) For multifamily developments in the community business, city center core and city center frame zones, open space fees-in-lieu may be deferred, but shall be paid no later than the completion of construction and prior to receipt of certificate of occupancy/approval to occupy for each floor or each building if phased, or five years from the recording of the deferment covenants, whichever is earlier. Covenants prepared by the city shall be recorded at the applicant’s expense, prior to building permit issuance, to enforce payment of deferred fees. The fee shall be calculated at the time of recording of the covenants and shall be divided equally among all residential units within the project. The fee shall be calculated based upon the square footage of open space that otherwise would have been required to be provided multiplied by the subject property’s assessed or appraised value. As consideration for the ability to defer open space fee-in-lieu payments beyond building permit issuance, the applicant agrees to waive the right to interest and/or a refund if payment is not expended within five years of collection.

(2) Regional stormwater facility fee-in-lieu. Developments may be able to utilize stormwater detention in one of the city’s regional stormwater facilities based on an area fee-in-lieu established by the city. Fees are used for construction cost recovery and shall be paid at the time of plat recording for residential land divisions and prior to building permit issuance for commercial and multifamily developments.

(3) Transportation impact fee. 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 and paid per the following:

(a) For commercial developments, fees shall be calculated based on the impact fee schedule in effect at the time a completed building permit application is filed and paid prior 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) The city shall collect transportation impact fees, based on the fee schedule adopted by city council, from any applicant seeking development approval from the city where such development activity requires the issuance of a residential building permit or a manufactured home permit.

(c) For all applications for single-family, multifamily residential building permits, and manufactured home permits, the total amount of the impact fees shall be assessed and collected from the applicant when the building permit is issued, using the fee schedule then in effect. Irrespective of the date that the application for a building permit or manufactured home permit was submitted, no permit shall be issued until the required transportation impact fees set forth in the fee schedule have been paid, except as authorized under FWRC 19.100.075.

(d) Where a building permit is not required for the development activity, the transportation impact fees shall be paid prior to issuance of the permit that authorizes the activity.

(Ord. No. 23-968, § 9, 9-5-23; Ord. No. 16-822, § 9, 8-9-16; Ord. No. 12-727, § 6, 9-18-12; Ord. No. 10-658, § 6, 5-18-10.)

19.100.075 Option for deferred payment of transportation and school impact fee.

An applicant may request, at any time prior to building permit issuance, and consistent with the requirements of this section, to defer to final building inspection the payment of a transportation impact fee and/or a school impact fee for a single-family residential dwelling unit. The following shall apply to any request to defer payment of an impact fee:

(1) The applicant shall submit to the city a written request to defer the payment of an impact fee for a specifically identified building permit. The applicant’s request shall identify, as applicable, the applicant’s corporate identity and contractor registration number, the full names of all legal owners of the property upon which the development activity allowed by the building permit is to occur, the legal description of the property upon which the development activity allowed by the building permit is to occur, the tax parcel identification number of the property upon which the development activity allowed by the building permit is to occur, and the address of the property upon which the development activity allowed by the building permit is to occur. All applications shall be accompanied by an administrative fee as provided for in the city’s adopted permit and impact fee schedule.

(2) The impact fee amount due under any request to defer payment of impact fees shall be based on the schedule in effect at the time the applicant provides the city with the information required in subsection (1) of this section.

(3) Prior to the issuance of a building permit that is the subject of a request for a deferred payment of the impact fee, all legal owners of the property upon which the development activity allowed by the building permit is to occur must sign a deferred impact fee payment lien in a form acceptable to the city attorney. The deferred impact fee payment lien shall be recorded against the property subject to the building permit and be granted in favor of the city in the amount of the deferred impact fee. Any such lien shall be junior and subordinate only to one mortgage for the purpose of construction upon the same real property subject to the building permit. In addition to the administrative fee required in subsection (1) of this section, the applicant shall pay to the city the fees necessary for recording the lien agreement with the King County recorder.

(4) The city shall not approve a final inspection until the impact fees identified in the deferred impact fee payment lien and the administrative deferral fee are paid in full.

(5) In no case shall payment of the impact fee be deferred for a period of more than 18 months from the date of building permit issuance. Eighteen months after building permit issuance, the impact fee shall be paid regardless of the status of the building permit, unless the building permit has been canceled by the city.

(6) Upon receipt of final payment of the deferred impact fee as identified in the deferred impact fee payment lien, the city shall execute a release of lien for the property. The property owner may, at his or her own expense, record the lien release.

(7) In the event that the deferred impact fee is not paid within the time provided in this section, the city may institute foreclosure proceedings under the process set forth in Chapter 61.12 RCW. The school district may also institute foreclosure proceedings as set forth in RCW 82.02.050(3).

(8) An applicant is entitled to defer impact fees pursuant to this section for no more than 20 single-family dwelling unit building permits per year in the city. For purposes of this section, an “applicant” includes an entity that controls the applicant, is controlled by the applicant, or is under common control with the applicant.

(Ord. No. 16-822, § 10, 8-9-16.)


Cross references: Parks and recreation, Chapter 4.05 FWRC; streets and sidewalks, FWRC Title 4, Division II; utilities, FWRC Title 11; water quality and waterways, Chapter 16.45 FWRC; subdivisions, FWRC Title 18; public use easements, FWRC 19.05.330; building site requirements, FWRC 19.105.010; calculating lot coverage requirements, FWRC 19.110.020; land modification restrictions and requirements, Chapter 19.120 FWRC; fences, FWRC 19.125.120 et seq.; administration of the provisions regarding environmentally critical areas, Chapter 19.145 FWRC, Article I.