No development activity shall be exempt from the requirements of this chapter, unless the permit is listed below. The following types of permits are not subject to the capacity reservation certificate (CRC) process because they do not create additional long-term impacts on transportation facilities, additional sewer capacity in the city's waste water treatment plant, or a need for more potable water from the city's water system:

Notwithstanding the above, if any of the above permit applications will generate any new p.m. peak hour trips, require additional sewer capacity, or increase water consumption, such application shall not be exempt from the requirements of this chapter.

Transportation. This chapter shall apply to all applications for development or redevelopment if the proposal or use will generate any new p.m. peak-hour trips. Every application for development shall be accompanied by a capacity reservation certificate application. Developments or redevelopments that will generate one or more new projected vehicle trips that will pass through an intersection or roadway section identified with a level of service below the acceptable level noted in the transportation element in the city's comprehensive plan, or that will generate 15 or more new p.m. peak hour trips, shall also be required to submit information for a traffic report pursuant to POMC § 20.180.011(2)(b).

Water. This chapter shall apply to all applications for development or redevelopment if the proposal or use requires water from the city's water system (not West Sound Utilities). In addition, this chapter shall apply to existing developments to the extent that the property owner requires water for a use not disclosed on a previously submitted water service application or a previously submitted application for a capacity reservation certificate.

Sewer. This chapter shall apply to all applications for development or redevelopment if the proposal or use requires sewer from the city's sewer system (not West Sound Utilities). In addition, this chapter shall apply to existing developments to the extent that the property owner requires sewer for a use not disclosed on a previously approved request for sewer service or a previously approved application for a capacity reservation certificate.

Increased Impact on Road Facilities, and/or the City's Water/Sewer System. If a change in use will have a greater impact on road facilities and/or the city's water/sewer system than the previous use, as determined by the director, based on review of information submitted by the applicant and such supplemental information as available, a CRC shall be required for the net increase only. Provided that: the applicant shall provide reasonably sufficient evidence that the previous use has been actively maintained on the site during the five-year period prior to the date of application for the capacity evaluation.

Decreased Impact on Road Facilities and/or the City's Water/Sewer System. If a change in use will have an equal or lesser impact on road facilities and/or the city's water/sewer system than the previous use as determined by the director, based on review of information submitted by the applicant and supplemental information as available, a CRC will not be required.

No Capacity Credit. If no use existed on the site for the five-year period prior to the date of application, no capacity credit shall be issued pursuant to this section.

Demolition or Termination of Use. In the case of a demolition or termination of an existing use or structure, the capacity evaluation for future redevelopment shall be based upon the net increase of the impact on road facilities or the city's water or sewer system for the new or proposed land use, as compared to the land use existing prior to demolition. Provided, that such credit is utilized through a CRC within five years of the date of the issuance of the demolition permit.

Generally. Level of service (LOS) is the established minimum capacity of public facilities or services that must be provided per unit of demand or other appropriate measure of need, as mandated by Chapter 36.70A RCW. LOS standards shall be used to determine if public facilities or services are adequate to support a development's impact. The concept of concurrency is based on the maintenance of specified levels of service through capacity monitoring, allocation and reservation procedures. Concurrency describes the situation in which water, sewer and/or road facilities are available when the impacts of development occur. For road facilities, this time period is statutorily established as within six years from the time of development. (See RCW 36.70A.070(6)(b) and WAC 365-195-210(3), (7), (19).[1])

Roads. The director shall use the LOS standards set forth in the transportation element of the city's comprehensive plan to make concurrency evaluations as part of the review of any application for a transportation concurrency reservation certificate (CRC) issued pursuant to this chapter.

Water. The director shall use the existing water rights as permitted by the Department of Ecology and as identified in the utilities element of the city's comprehensive plan to make concurrency evaluations as part of the review of any application for a water CRC issued pursuant to this chapter.

Sewer. The director shall use the limits and levels established in the city's NPDES permit from the Department of Ecology, and evaluate the remaining capacity in the city's wastewater treatment plan as part of the review of any application for a sewer CRC issued pursuant to this chapter.

A capacity evaluation for transportation, water or sewer shall be required for any of the activities that are not exempt under POMC § 20.180.004(1).

The director shall utilize the method described in POMC § 20.180.013 and this chapter to conduct a capacity evaluation prior to issuance of a CRC. In addition to these requirements, the director may also utilize state law or the Washington Administrative Code, or such other rules regarding concurrency. In cases where LOS standards do not apply, the director shall have the authority to utilize other factors in preparing capacity evaluations to include, but not be limited to, independent LOS analysis.

A capacity reservation certificate (CRC) will not be issued except after a capacity evaluation performed pursuant to this chapter, indicating that capacity is available in all applicable road facilities and/or within the city's water or sewer system.

An application for a CRC and the application for the underlying development permit, or other activity, shall be accompanied by the requisite fee, as determined by city council resolution. An applicant for the CRC shall also submit the following information to the director, on a form provided by the director, together with the underlying development application:

Additional information for transportation capacity evaluations only:

Notice of Application. Issuance of a notice of application for the underlying permit application shall be handled by the community development director or designee, following the process in Chapter 20.25 POMC. The notice of application shall state that an application for a concurrency determination has been received by the city.

Determination of Completeness. The community development director shall immediately forward all CRC applications received with development applications to the public works/engineering staff. Within 28 days after receiving an application for a CRC, the public works/engineering staff shall mail or personally deliver to the applicant a determination which states either:

Additional Information. An application for a CRC is complete for purposes of initial processing when it meets the submission requirements in POMC § 20.180.011. The determination of completeness shall be made when the application is sufficiently complete for review, even though additional information may be required or project modifications may be undertaken subsequently. The director's determination of completeness shall not preclude the director's ability to request additional information or studies.

Incomplete Applications.

Generally. In order to determine concurrency for the purposes of issuance of a transportation, water or sewer CRC, the director shall make the determination described in subsections (2), (3) and (4) of this section. The director may deem the development concurrent with transportation facilities or the city's water or sewer system, with the condition that the necessary facilities or services shall be available through a financial commitment in an enforceable development agreement (see Chapter 20.26 POMC). In no event shall the director determine concurrency for a greater amount of capacity than is needed for the development proposed in the underlying application.

Transportation.

Water.

Sewer.

Lack of Concurrency.

A transportation CRC is a determination by the director that: (a) the proposed development identified in the CRC application does not cause the level of service on a city-owned transportation facility to decline below the standards adopted in the transportation element of the city's comprehensive plan; or (b) that a financial commitment (embodied in a development agreement) is in place to complete the necessary improvements or strategies within six years. Upon issuance of a transportation CRC, the director will reserve transportation facility capacity for this application until the expiration of the underlying development permit or as otherwise provided in POMC § 20.180.020. Although the CRC may identify the number of projected trips associated with the proposed development, nothing in this chapter (including the trip transfer procedures) shall imply that the applicant "owns" or has any ownership interest in the projected trips.

A water CRC is a determination by the director that: (a) the proposed development identified in the CRC application does not exceed the city's existing water rights or the limits of any state-issued permit, or (b) that a financial commitment (embodied in a development agreement) is in place to complete the necessary improvements or strategies prior to the submittal of complete building permit applications. Upon issuance of a water CRC, the director will reserve water capacity for the application until the expiration of the underlying development permit or as otherwise provided in POMC § 20.180.020.

A sewer CRC is a determination by the director that: (a) the proposed development identified in the CRC application does not exceed the city's existing NPDES permit limits or the existing capacity in the city's wastewater treatment plant, or (b) that a financial commitment (embodied in a development agreement) is in place to complete the necessary improvements or strategies prior to the submittal of complete building permit applications. Upon issuance of a sewer CRC, the director will reserve sewer capacity for the application until the expiration of the underlying development permit.

The factors affecting available water or sewer capacity or availability may, in some instances, lie outside the city's control. The city's adoption of this chapter relating to the manner in which the city will make its best attempt to allocate water or sewer capacity or availability does not create a duty in the city to provide water or sewer service to the public or any individual, regardless of whether a water or sewer CRC has issued. Every water availability certificate and water and sewer CRC shall state on its face that it is not a guarantee that water and/or sewer will be available to serve the proposed project.

For Roads.

For Water.

For Sewer. The city may include the options available to the applicant such as a temporary septic system (if allowed by law) which the applicant would agree in a development agreement to install and remove at their own cost when sewer capacity became available.

For All. A statement that the denial letter may be appealed pursuant to the procedures in POMC § 20.180.021.

Expiration. If a certificate of occupancy has not been requested prior to the expiration of the underlying permit or termination of the associated development agreement, the director shall convert the reserved capacity to available capacity for the use of other developments. The act of requesting a certificate of occupancy before expiration of the CRC shall only convert the reserved capacity to used capacity if the building inspector finds that the project actually conforms with applicable codes.

Extensions for Road Facilities. The city shall assume that the developer requests an extension of transportation capacity reservation when the developer is requesting a renewal of the underlying development permit. No unused capacity may be carried forward beyond the expiration of the transportation CRC or any subsequent extension.

Extensions for Water or Sewer. The city shall not extend any water or sewer CRC. If the developer submits an application for an extension of the underlying permit, the applicant shall submit a new application for a concurrency determination for water or sewer under this chapter.

If a CRC has been granted for a rezone or comprehensive plan amendment under POMC § 20.180.006, the CRC shall expire when the development agreement for the comprehensive plan or rezone terminates.

A denial letter may be appealed if the appeal is submitted to the public works director within 10 business days after issuance of the denial letter. The appeal must conform to the requirements in Chapter 20.24 POMC. The denial letter must also be filed prior to issuance of the city's decision on the underlying development application. If an appeal is filed, processing of the underlying development application shall be stayed until the city's final decision on the appeal of the denial letter.

Upon receipt of an appeal of the denial letter, the director shall handle the appeal as follows:

"Capacity" refers to the ability or availability of water in the city's water system. "Capacity" refers to the ability to treat effluent in the city's wastewater treatment plant to the levels and volume limits in the city's NPDES permit. "Capacity" also refers to the ability or availability of road facilities to accommodate users, expressed in an approximate unit of measure, such as LOS for road facilities. "Available capacity" represents a specific amount of capacity that may be reserved by or committed to future users of the city's water or sewer system or road facilities.

There are two capacity accounts to be utilized by the director in the implementation of this chapter for water, sewer and transportation. These accounts are:

Capacity is withdrawn from the available capacity account and deposited into a reserved capacity account when a CRC is issued. Once the proposed development is constructed and an occupancy certificate is issued, the capacity is considered "used." Each capacity account of available or reserved capacity will experience withdrawals on a regular basis. Only the director may transfer capacity between accounts.

The director is responsible for completion of annual transportation, water and sewer capacity availability reports. These reports shall evaluate reserved capacity and permitted development activity for the previous 12-month period, and determine existing conditions with regard to available capacity for road, sewer and water facilities. The evaluations shall report on capacity used for the previous period and capacity available for the six-year capital facilities and utilities element of the city's comprehensive plan, six-year transportation plan for road facilities, based on LOS standards, and the sewer and water comprehensive plans. Forecasts shall be based on the most recently updated schedule of capital improvements, growth projections, water rights, annual water withdrawal volumes, limits of the NPDES permit, public road facility inventories, and revenue projections, and shall, at a minimum, include:

The findings of the annual capacity availability report shall be considered by the council in preparing the annual update to the capital improvement element, any proposed amendments to the CIP and six-year TIP, and shall be used in the review of development permits and capacity evaluations during the next period.

Based upon the analysis included in the annual capacity availability reports, the director shall recommend to the city council each year any necessary amendments to the CIP, TIP, utilities and/or water element of the comprehensive plan, and comprehensive plan. The director shall also report on the status of all capacity accounts when public hearings for comprehensive plan amendments are heard.

The city shall monitor level of service standards through an annual update of the six-year transportation plan which will add data reflecting development permits issued and trip allocations reserved.

A new trip allocation shall be assigned for each traffic analysis zone, based on the results from the traffic demand model used by the city, to ensure that the city is achieving the adopted LOS standards described in this chapter and the transportation element of the comprehensive plan.

Amendments to the trip allocation program that exceed the total aggregate annual trip allocation per zone for any given year shall require an amendment to the comprehensive plan. Monitoring and modeling shall be required and must include anticipated capital improvements, growth projections, and all reserved and available capacity.

This chapter is enacted pursuant to the city's police powers, the Growth Management Act (Chapter 36.70A RCW), the impact fee statutes (RCW 82.02.050 through 82.02.100), the State Subdivision Act (Chapter 58.17 RCW) and the State Environmental Policy Act (SEPA, Chapter 43.21C RCW).

The purpose of this chapter is to:

Chapter 20.184 POMC includes the definitions for this chapter and Chapter 20.180 POMC on concurrency management. The requirements of this chapter apply to all development in the city, as "development" or "development activity" is defined in Chapter 20.12 POMC.

Mitigation of impacts on parks and transportation facilities located in jurisdictions outside the city will be required when:

The director of community development shall be responsible for administering this chapter and the impact fee program for the city.

The city is hereby authorized to impose impact fees on new development.

Impact fees may be required pursuant to the impact fee schedule adopted through the process described herein, or mitigation may be provided through:

Impact fees:

Impact fee schedules setting forth the amount of the impact fees to be paid by developers shall be adopted by ordinance of the city council and incorporated herein by this reference. The impact fee schedules may be revised at any time the city council deems just and appropriate.

For the purpose of road and park impact fees, the entire city shall be considered one service area.

For the purpose of school impact fees, the entire boundary of the school district shall be considered one service area.

Transportation and parks impact fees adopted by the city shall each automatically increase annually per CPI-U (All Urban Consumers Index) (1982-1984=100), not seasonally adjusted, for the Seattle-Tacoma-Bellevue area for that 12-month period from January 1st to December 31st indexed as the annual average, as is specified by the Bureau of Labor Statistics, United States Department of Labor. Increases based on CPI-U shall take effect on March 1st of the following year.

Director Calculates the Fees. The director shall calculate the impact fees set forth in Appendices A, B, and C. Such calculation shall include determining the dates at which the impact fees are due and which rates apply. The city council shall have the final decision on the establishment of the impact fee schedule to be imposed under this chapter as set forth in Appendices A, B, and C. The school district shall propose to the city its requested impact fee schedule to be imposed under this chapter, including specific rates applicable to different project types; however, the council has the authority to establish Appendix C.

Factors Used in Impact Fee Calculations. The calculation of impact fees shall include the factors identified in RCW 82.02.040 through 82.02.070 and shall:

Proportionate Share. In calculating proportionate share, the following factors shall be considered:

Information Supplied by Applicants. Applicants for development shall provide the necessary information to facilitate the application and calculation of impact fees including the square footage of buildings to be constructed, the number of bedrooms in proposed housing units, and/or the trip generation (peak PM trips) for the proposed use (to be coordinated with concurrency review pursuant to Chapter 20.180 POMC). This information must also accompany any request for variation from the impact fee schedule pursuant to POMC § 20.182.090 or any request for impact fee credits pursuant to POMC § 20.182.080.

Accessory dwelling units shall be charged impact fees in accordance with the schedules adopted in POMC § 20.182.070(1), except that pursuant to RCW 36.70A.681(1)(a), the city may not assess impact fees on the construction of accessory dwelling units that are greater than 50 percent of the impact fees that would be imposed on the principal unit. If the impact fee resulting from the use of the rates established in POMC § 20.182.070(1) result in an impact fee on an accessory dwelling unit that is in excess of 50 percent of the fee that would be imposed on the principal unit, then the city shall reduce the amount of impact fee owed on the accessory dwelling unit to 50 percent of the amount that would be owed on the principal dwelling were it to be constructed at the current rate.

Applicants seeking approval for the construction or creation of (an) accessory dwelling unit(s) shall provide the following information with their application for the construction or creation of (an) accessory dwelling unit(s):

An applicant for the construction or creation of an accessory dwelling unit may request a variation from the impact fee schedule in accordance with POMC § 20.182.090.

Unless a variation to the impact fee schedule is granted in accordance with POMC § 20.182.090, the city shall determine the amount of impact fees owed for the creation or construction of accessory dwelling units based on the information supplied by the applicant pursuant to subsection (2) of this section. This information shall be verified by the city by reviewing the currently adopted ITE trip generation estimates for the proposed uses, the number of bedrooms and/or square footage either reported by the Kitsap County assessor or as shown on plans for the accessory dwelling unit and principal structure. Where inconsistencies are found between the applicant-supplied information and the ITE manual or Kitsap County assessor records, the application shall be returned to the applicant for correction. Required corrective action may include, but is not limited to, the following:

The conversion of an ADU to a principal unit or the enlargement of a principal unit shall be considered new development subject to impact fee charges which may apply.

Credit Allowed. The director shall reduce the calculated proportionate share for a particular development by giving credit for the benefit factors described in this section.

Procedure for Obtaining Credit, Time to Request Credit. Requests for credits against impact fees will not be considered unless the developer makes the request in writing, concurrent with the submission of the application for the underlying development permit triggering the impact fee. Impact fee credits may only be granted by use of a development agreement in accordance with the procedures contained in Chapter 20.26 POMC.

Benefit Factors. The director will consider the following benefit factors when determining whether an impact fee credit is appropriate:

Requirement for System Improvement Plan by City. When the director has agreed to a developer's proposal to satisfy some or all of the impact fee through the purchase, installation and/or improvement of park and/or transportation and/or school facilities, the developer shall prepare and submit a system improvement plan to the director for approval prior to recordation of a plat or short plat for subdivisions, and prior to issuance of a building permit for all other developments.

Statutory Benefit Factors. The director may consider any applicable benefit factors, as described in RCW 82.02.060 (as it now exists or may hereafter be amended), that are demonstrated by the applicant not to be included in the calculation of the impact fee.

Amount of Credit. The credit against the impact fee shall be equal to the fair market value of the purchased/dedicated property or equal to the certified cost of the completed system improvements. In those situations in which a developer has not yet installed or constructed system improvements and requests a credit for the system improvement(s), the city engineer shall estimate the cost of the system improvements, which shall be the credit allowed to the developer in the decision on the amount of the impact fee. If a credit is granted for a system improvement that has not been constructed, the developer shall pay the full impact fee without the credit, at the time established in POMC § 20.182.110; provided, however, that if the developer posts a performance bond or provides other security to ensure completion of the system improvement and/or to secure the payment of the impact fees, the city may allow the payment of the impact fees to be deferred until the system improvement is completed and the final maximum impact fee credit has been calculated. If the developer opts to pay the impact fees rather than post a bond, then after the construction and/or installation of the system improvement, the developer may request the credit granted by the city engineer under this subsection, and the city shall refund the difference of the impact fee to reflect the credit; provided, that if the city and the property owner have entered into a development agreement on or before the effective date of the ordinance codified in this section, and the agreement requires the construction of such improvements, the city may allow a credit to be subtracted from the impact fee paid at the time established in POMC § 20.182.110.

PRDs, PUDs and Mobile Home Parks. A developer of a planned residential development, a planned unit development, or a mobile home park may receive credit only for park, school and transportation facilities provided in addition to those normally required under SEPA for such developments, pursuant to the city's SEPA ordinance (Chapter 20.160 POMC).

Credit to Apply Proportionately to Units. The amount of credit determined pursuant to this section shall be credited proportionately among all the units in the development, and the impact fee for each unit for which a permit or approval is applied shall be reduced accordingly.

Limits on Credit Requests. Applicants may not request that an impact fee credit be provided for a proposed development based on taxes, user fees, assessments, improvements, payments or other benefit factors applicable to property that is not included within the proposed development. Credit to be paid back by the city or the school district to a developer under this section shall not exceed the total amount of the impact fees paid by the developer.

Local Improvement Districts. Applicants shall receive credit against the impact fee equal to the amount of an LID assessment paid for transportation-related system improvements identified by the director as increasing transportation system capacity.

Appeals of Credits. The director shall issue a written decision on the developer's request for a credit of the impact fee calculation, which shall explain why the credit was granted or denied. The developer may request reconsideration and appeal the impact fee amount and credit pursuant to POMC § 20.182.160. If the procedures in POMC § 20.182.160 are not timely followed to request an appeal of the credit, the director's decision on the impact fee credit shall be final.

All applicants for development, including changes in use, shall pay an impact fee in accordance with the provisions of this chapter which shall be calculated by the city at the time that the building or other applicable permit is ready for issuance. Applicants/developers may choose to pay impact fees or a portion thereof prior to the city's issuance of a building permit, other applicable permit, or change in use, but if the early payment is less than the fee calculated at the time the building or other applicable permit is ready for issuance or the change in use takes effect, the applicant/developer shall pay the difference. If the early payment is more than the fee calculated at the time the building permit or other applicable permit is ready for issuance or the change of use takes effect, the city or school district shall refund the difference.

The impact fee shall be recalculated if the development is modified or conditioned in such a way as to alter park, school or transportation impacts for the development.

A developer may obtain a preliminary determination of the impact fee before submitting an application for the development permit or use change by providing the director with the information needed for processing together with the applicable fee. Such determinations are provided to the developer as estimates only, and they are not binding on the city, given the limited information needed to calculate the preliminary impact fee amount and the fact that the city or school district annually updates the project list and impact fee schedule. In addition, impact fees are not subject to the vested rights doctrine, and the fee actually paid by the developer will be the impact fee in effect at the time of building or other applicable permit issuance or change of use, regardless of any preliminary determinations unless otherwise agreed by development agreement or impact fee credit agreement.

Payment of any required impact fees shall be made as a condition of the issuance of a building permit or a stormwater permit, except as provided in subsection (4) of this section.

Impact fees may be paid under protest in order to obtain the necessary permits/approvals until an appeal of the fee amount is finally resolved.

When a subdivision or development is conditioned upon the dedication of land, or the purchase, installation or improvement of park, school, and/or transportation facilities, a final plat or short plat shall not be recorded, and a building permit within such plat or development shall not be issued until:

Deferral of Payment of Impact Fees. Payment of impact fees for single-family attached or single-family detached residential dwelling units may be deferred only until issuance of certificate of occupancy or equivalent certification, pursuant to RCW 82.02.050(3), subject to the following provisions:

The director shall annually review the city's parks, open space and recreation plan, the six-year road plan and the projects listed in Appendices A and B and shall:

The director shall use this information to prepare an annual draft amendment to the fee schedule in Appendices A and B, which shall comprise:

The city council, at the same time that it adopts the annual budget and appropriates funds for capital improvement projects, shall, by separate ordinance, establish the annual project list by adopting, with or without modification, the director's draft amendment.

Once a project is integrated into the fee schedule in Appendices A and B, a fee shall be imposed on every development until the project is removed from the project list by one of the following means:

The school district shall annually review and update its capital facilities portion of the city's comprehensive plan and submit such updated plan to the city by July 1st of each year. The school district's updated capital facilities plan shall identify projects that are growth-related, include the amount of school impact fees paid, calculate the impact fees as required by RCW 82.02.050 through 82.02.090, and may include a proposed school impact fee schedule adjustment to Appendix C, for consideration by and adoption by the city council in its sole discretion.

An impact fee fund is hereby created for parks and transportation fees. Separate accounts shall be established for each fee type. The school district shall be responsible for the creation of its own impact fee fund and shall be solely responsible for the deposit of fees in such fund following transfer from the city, and the calculation/use/refund of such fees. The school district shall manage its impact fee funds in accordance with state law and the interlocal agreement between the school district and the city. The director shall be the manager of the city's fund. The city shall place park and transportation impact fees in appropriate deposit accounts within the impact fee fund.

The parks and transportation impact fees paid to the city shall be held and disbursed as follows:

Projects shall be funded by a balance between impact fees and public funds, and shall not be funded solely by impact fees.

Impact fees shall be expended or encumbered for a permissible use for 10 years after receipt, unless there exists an extraordinary or compelling reason for fees to be held longer than 10 years. The director may recommend to the council that the city hold park or transportation fees beyond 10 years in cases where extraordinary or compelling reasons exist. Such reasons shall be identified in written findings by the council. The superintendent of the school district shall prepare written findings evidencing such extraordinary or compelling reason for fees to be held longer than 10 years which findings shall be approved by the board of directors of the school district.

The school district and the director shall prepare an annual report on the impact fee accounts showing the source and amount of all monies collected, earned or received and system improvements that were financed in whole or in part by impact fees. The school district shall be responsible for compliance with RCW 82.02.070.

A developer may request and shall receive a refund from either the city (for parks and transportation impact fees) or the school district (for school impact fees) when the developer does not proceed with the development activity for which impact fees were paid, and the developer shows that no impact has resulted.

If the city or school district fails to expend or encumber the impact fees within 10 years of the date the fees were paid or the date established by the findings adopted under POMC § 20.182.130(4) on public facilities intended to benefit the development activity for which the impact fees were paid. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. The city or school district shall notify potential claimants by first class mail, deposited with the U.S. Postal Service at the last known address of claimants. The request for a refund must be submitted to the city or school district in writing within one year of the date the right to claim the refund arises or the date notice is given, whichever is later. Any impact fees that are not expended within these time limitations and for which no application for refund has been made within the one-year period shall be retained and expended on the indicated capital facilities. Refunds of impact fees under this section shall include interest earned on the impact fees. The school district shall be responsible for compliance with this section and RCW 82.02.080 for school impact fees.

In the event that impact fees are refunded for any reason, they shall be refunded by the city with respect to park and transportation fees (and the school district with respect to school impact fees) and shall be returned with interest earned to the owners as they appear of record with the county assessor at the time of the refund.

When the city seeks to terminate any or all impact fee requirements, all unexpended or unencumbered funds 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 to the last known address of the claimants. 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, or, if applicable, the school district, but must be expended on a project under the adopted plans of the city or school district. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated. The school district shall be responsible for compliance with this section for school impact fees under RCW 82.02.080.

Decision of the Director or Superintendent, Reconsideration and Appeals. The director or the superintendent shall issue a written decision on the parks, school and/or transportation impact fee amount as described in this chapter. Because RCW 82.02.070(5) allows the appeal of an impact fee determination to be handled separately from the processing of the underlying permit application, this procedure is exempt from the permit processing requirements in Chapter 20.25 POMC (pursuant to RCW 36.70B.140).

Burden of Proof in Appeals. In an appeal of the decision of the director or superintendent on reconsideration, the developer shall bear the burden of proving:

Appeals of Hearing Examiner's Decision.

As provided in RCW 82.02.100, a person required to pay a fee pursuant to RCW 43.21C.060 for system improvements shall not be required to pay an impact fee under this chapter for the same system improvements.

Nothing in this chapter shall be construed to limit the city's authority to deny development permits when a proposal would result in probable significant adverse impacts identified in an environmental impact statement and reasonable mitigation measures are insufficient to mitigate the identified impact.