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HomeMy WebLinkAbout50781 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ORDINANCE NO. $ 0 7 8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, ADOPTING A NEW TITLE 19 OF THE AUBURN CITY CODE ENTITLED "IMPACT FEES," AUTHORIZING THE IMPOSITION AND COLLECTION OF IMPACT FEES FOR SCHOOL DISTRICTS WHICH HAVE ADOPTED CAPITAL FACILITY PLANS IN THE CITY'S COMPREHENSIVE PLAN; PROVIDING PURPOSE, DEFINITIONS, DETERMINATION OF IMPACT FEES, INTERLOCAL AGREEMENT(S), CAPITAL FACILITIES PLAN(S), ANNUAL CITY COUNCIL REVIEW, FEE COLLECTION, EXEMPTIONS, ADJUSTMENTS, EXCEPTIONS AND APPEALS AND IMPACT FEE ACCOUNTS AND REFUNDS. WHEREAS, the Auburn City Council finds that development activity in the City will create additional demand and need for public facilities within the City, including school facilities; and WHEREAS, although Article IX of the Washington State Constitution states that "It is the paramount duty of the State to make ample provision for the education of all children residing within its border...", existing state and local funding sources for schools have not been sufficient to meet the demand for additional school facilities generated by new residential development; and WHEREAS, the City of Auburn is authorized by Chapter 82.02 RCW to require new growth and development within the City to pay a proportionate share of the cost of new facilities to serve such new growth and development through the assessment of impact fees; and impact fees may be collected and spent for school facilitis; and Ordinance No. 5078 March 2, 1998 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 WHEREAS, RCW 82.02.050(4) as amended provides that "after the date a county, city, or town is required to adopt its development regulations under Chapter 36.70A RCW, continued authorization to collect and expend impact fees shall be contingent on the county, city, or town adopting or revising a comprehensive plan in compliance with RCW 36.70A.070," and in the Capital Facilities Plan identifying deficiencies and how such deficiencies will be eliminated, additional demands due to new development, and additional public facility improvements required to serve new development; and WHEREAS, the City of Auburn has adopted its Comprehensive Plan, including the Capital Facilities Plan for the Dieringer School District, has amended the Comprehensive Plan in compliance with RCW 36.70A.070, and has complied with the requirements of RCW 82.02.050(4) for the assessment of impact fees; and WHEREAS, the school districts located in theCity of Auburn are duly authorized to provide public education for the majority of the residents in Auburn, Washington; and WHEREAS, the Auburn City Council is authorized by Chapter 82.02 RCW to impose impact fees on behalf of and for the benefit of school districts in the City of Auburn; and WHEREAS, the City of Auburn and school districts located in the City of Auburn are authorized by Chapter 39.34 RCW to enter into interlocal agreements Ordinance No. 5078 March 2, 1998 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 for cooperative action, and the City and school districts in the City of Auburn may enter into interlocal agreements for the collection, expenditure, and reporting of school impact fees; and WHEREAS, this Ordinance provides a framework for school districts in the City of Auburn to request that fees be collected on their behalf in a monetary amount determined separately for each district pursuant to the formula adopted therefor; and WHEREAS, a person required to pay an impact fee for schools capital facilities, consistent with RCW 82.02.100 and RCW 43.21C.065, is not required to pay for the same capital facility system improvements pursuant to the State Environmental Protection Act and the Subdivision Act; and WHEREAS, pursuant to Chapters 82.02 RCW, the City Council of the City of Auburn is authorized to assess impact fees and to provide for adjustments of the impact fees. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. A new Title 19 of the Auburn City Code entitled "Impact Fees" is hereby adopted as shown in Exhibit "A", attached hereto and incorporated herein by reference.The above cited Findings of Fact are herewith approved and incorporated in this Ordinance. Ordinance No. 5078 March 2, 1998 Page 3 1 2 3 4 5 6 7 8 9 lO 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 Section 2. if any provision of this Ordinance or its application to any person or circumstance is held invalid, the remainder of this Ordinance or the application of the provision to other persons or circumstances shall not be affected. Section 3. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 4. This Ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication, as provided by law. INTRODUCED: March 2, 1998 PASSED: March 2, 1998 APPROVED: March 2, 1998 CHARLES A, BOOTH MAYOR Ordinance No. 5078 March 2, 1998 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Michael J. Reynolds, City Attorney Published: Ordinance No. 5078 March 2, 1998 Page 5 TITLE 19 IMPACT FEES Chapters: 19.02 School Impact fees Sections: 19.02.0t0 19.02,020 19.02.030 19.02.040 19.02.050 19.02.060 19.02.070 19.02.080 19.02.090 19.02.100 Purpose Definitions Determination of impact fees Interlocal agreement Capital facilities plan Annual City Council review Fee collection Exemptions Adjustments, exceptions and appeals Impact fee accounts and refunds 19.02.010 Purpose The City Council hereby finds and determines that continuing growth and development in the City of Auburn will create additional need and demand for school facilities, and that new growth and development should pay a proportionate share of the cost of developing new facilities needed as a result. Therefore, pursuant to RCW Chapter 82.02, the Council adopts this chapter to address identified impacts of new residential development on schools and to ensure that new development bears a proportionate share of the cost of capital expenditures necessary to meet demands for schools in order to protect the public health, safety and welfare. 19.02.020 Definitions For purposes of this chapter, the following terms shall have the indicated meanings: A. "Capacity" means the number of students the District's facilities can accommodate district-wide, based on the District's standard of service, as determined by the District. B. "Capital Facilities Plan" means the District's 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. an identification of additional demands placed on existing public facilities by new development; Page l Exhibit "A" to Ord. 5078 March 2, 1998 3. the long-range construction and capital improvement projects of the District; 4. the schools under construction or expansion; facilities; the proposed locations and capacities of expanded or new school 6. an inventory of existing school facilities, including permanent, transitional and relocatable facilities; 7. at least a six year financing component, updated as necessary to maintain at least a six-year forecast period, for financing needed for school facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues authorized by the voters; and 8. an identification of deficiencies in school facilities serving the student populations and the means by which existing deficiencies will be eliminated within a reasonable period of time; and 9. any other long-range projects planned by the District. C. "Capital Improvement" means land, improvements to land, structures and relocatable structures, (including site planning, acquisition, design, permitting and construction), initial furnishings and selected equipment. Capital improvements have an expected useful life of at least 10 years. Other capital costs, such as motor vehicles and motorized equipment, computers and office equipment, office furnishings, and small tools are considered to be minor capital expenses and are not considered capital improvements. D. "City" means the city of Auburn. E. "Classrooms" means educational facilities of the District required to house students for its basic educational program. The classrooms are those facilities the District determines are necessary to best serve its student population. Specialized facilities as identified by the district, including but not limited to gymnasiums, cafeteria, libraries, administrative offices, and child care centers, shall not be counted as classrooms. F. "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. Exhibit "A" to Ord. 5078 March 2, 1998 Page 2 G. "Design Standard" means the space required, by grade span and taking into account the requirements of students with special needs, that is needed in o~der to fulfill the educational goals of the District as identified in the District's capital facilities plan. H. "Developer" means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed. I. "Development activity" means any residential construction, including the placement of a mobile home, or expansion of a building, structure or use, an,y change in use of a building or structure, or any change in the use of land that creates additional demand for school facilities. J. "District" means the Auburn, Kent, Federal Way or Dieringer School District or successor entities. K. "Elderly" means a person aged 55 or older. L. "Encumbered" means to reserve, set aside, or otherwise earmark the impact fees to pay for commitments, contractual obligations, or other liabilities incurred for public facilities as set out in the adopted capital facilities plan. M. "Grade Span" means the categories into which the District groups its grade of students; e.g., elementary, middle or junior high school, and high school. N. "Impact Fee" means a payment of money imposed upon development as a condition of development approval to pay for school facilities needed to serve new growth and development, that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the school facilities, and that is used for such facilities that reasonably benefit the new development. "Impact Fee" does not include a reasonable permit or application fee. O. "Impact Fee Schedule" means the impact fees to be charged per dwelling unit of development that shall be paid as a condition of residential development within the City. P. "lnterlocal Agreement" means the agreement between the District and the City, governing the operation of the school impact fee program and describing the relationship, duties and liabilities of the parties. Q. "Permanent Facilities" means facilities of the District with a fixed foundation which are not relocatable facilities. R. "Relocatable Facilities" means any structure, transportable in one or more sections that is intended to be used as an education space to meet the needs of service areas within the District, to provide specialized facilities, or to cover the gap between the time that families move into new residential developments and the date that c, onstruction is completed on permanent school facilities. Page 3 Exhibit "A" to Ord. 5078 March 2, 1998 S. "Relocatable Facilities Cost Per Student" means the estimated cost of purchasing and siting a relocatable facility in the District for the grade span of the school to be provided, as a function of District's design standard per grade span. T. "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 standards per grade span. U. "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 requirement 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 any other specialized facilities housed in relocatable facilities. V. "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 generated rates for comparable developments constructed over a period of not more than five years prior to the date of the fee calculation; provided that, if such information is not available in the District, data from adjacent districts, or districts with similar demographics or county wide averages may be used. Student factors must be updated on an annual basis, and separately determined for single family and multifamily dwelling units and for grade spans. W. "Transitional Facilities" means those school facilities that are being used pending the construction of permanent facilities, provided that the necessary financial commitments are in place to construct the permanent facilities. '19.02.030 Determination of the amount of the impact fees The amount of the impact fees shall be determined for each school district as agreed to by the City and the applicable school district. The methodology to determine the fees will be based upon what other jurisdictions have used to determine their school impact fees and will address the terms and concepts defined in section 19.02.020, "Definitions." The City shall only consider requiring impact fees for any school district upon receipt of a written request dulv executed from the applicable school district. The City shall adopt by a separate ordinance an impact fee schedule for each applicable school district. A. If the City annexes property and the affected school district has an impact fee schedule, approved by the applicable County, then if the affected school district has adopted a Capital Facilities Plan which has been incorporated into the City's Comprehensive Plan under the Growth Management Act that schedule shall continue in effect on an interim basis and the City shall consider adopting by reference the fee amounts that the County has imposed together with any formulas or methodologies used to arrive at the fee amounts. Page 4 Exhibit "A" to Ord. 5078 March 2, 1998 B. If residential development occurs within a school district, that is within the City of Auburn, and an impact fee schedule has been approved for that school district by another legislative authority, other than the City of Auburn, then if the affected school district has adopted a Capital Facilities Plan which has been incorporated into the City's Comprehensive Plan under the Growth Mana.qement Act that schedule shall ,continue in effect on an interim basis and the City shall consider adopting by reference the fee amounts that have been imposed by the other legislative authority together with any formulas or methodologies used to arrive at the fee amounts. C. Any impact fee imposed 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 new development. The impact fee formula shall take into account the future revenues the District will receive from the development, along with system costs related servinq the new development. D. The impact fee shall be based on a capital facilities plan adopted by the District and incorporated by reference by the City as part of the capital facilities element of the City's Comprehensive Plan, adopted pursuant to RCVV Chapter 36.70A, for the purpose of establishing the fee program. E. Separate fees shall be calculated for single family and multi-family types of dwelling units, and separate student generation rates must be determined by the District for each type of dwelling unit. For the purpose of this chapter, mobile homes shall be treated as single family dwellings and; duplexes and attached single family dwellings shall be treated as multifamily dwellings. F. The fee shall be calculated on a district-wide basis using the appropriate factors and data to be supplied by the District. The fee calculations shall also be made on a district-wide basis to assure maximum utilization of all available school facilities in the District which meet District standards. G. Credit shall be given for school facilities or sites offered by the developer which the District accepts and approves as meeting District needs and standards, consistent within Capital Facilities Plan. 19.02.040 Interlocal agreement between the City and District. As a condition of the City's authorization and adoption of a school impact fee ordinance the City and the applicable District shall enter into an Interlocal agreement governing the operation of the school impact fee program, and describing the relationship and liabilities of the parties thereunder. The agreement must provide that the District shall be liable and hold the City harmless for all damages which may occur as a result of any failure by the District to comply with the provisions of this chapter, RCW Chapter 82.02 or other applicable law. The agreement must provide that the District shall be liable, hold the City harmless and reimburse the City for defense and payment of all claims, including claims for damages, which may occur or arise as n Page 5 Exhibit "A" to Ord. 5078 March 2, 1998 result of'any failure or alle,qed fa ure to comply with the provisions of this chapter1 RCW Chapter 82.02 or other applicable law in the adoption, administration, or implementatio~ of this chapter and any actions related to it. 19.02.050 Submission of District Capital Facilities Plan and Data. A. On an annual basis (by July 1 or on a date agreed to by the District and the City and stipulated in the interlocal agreement) any District, for which the City is collecting impact fees, shall submit the following materials to the City Council: 1. The District's capital facilities plan (as defined herein) ss adopted by the school board; 2. The District's enrollment projections over the next six (8) years, its current enrollment and the district's enrollment projections and actual enrollment from the previous year; 3. The District's adopted standard of service; 4. The District's overall capacity over the next six (6) years, which shall take into account the available capacity from school facilities planned by the District but not yet built and be a function of the District's standard of s;ervice as measured by the number of students which can be housed in District facilities; 5. An inventory of the District's existing facilities. B. To the extent that the District's standard of service identifies a deficiency in its existing facilities, the District's capital facilities plan must identify the sources of funding other than impact fees, for building or acquiring the necessary facilities to serve the existing student population in order to eliminate the deficiencies within a reasonable period of time. C. Facilities to meet future demand shall be designed to meet the adopted standard of service. If sufficient funding is not projected to be available to full!/fund a capital facilities plan which meets the adopted standard of service, the District's capital facilities plan should document the reason for the funding gap, and identify all sources of funding that the District plans to use to meet the adopted standard of service. D. The District shall also submit, annually to the City, a report showing the capital improvements for which the impact fees have been used. E. In its development of the Financing Plan Component, of its Capital Facilities Plan, the District shall plan on a six year horizon and shall demonstrate its best efforts by taking the following steps: Exhibit "A" to Ord. 5078 March 2, 1998 P~e6 1. Establish a six-year financing plan, and propose the necessary, bond issues, levies, and/or financing measures required by and consistent with that plan and as approved by the school board consistent with state law; and 2. Where applicable apply to the state for funding, and comply with the state requirements for eligibility to the best of the District's ability. '19.02.060 Annual Council Review. On at least an annual basis, the City Council shall review the information submitted by the District pursuant to Section 19.02.050. The review shall be in conjunction with any update of the capital facilities plan element of the City's Comprehensive Plan. The City Council may also at this time determine if an adjustment to the amount of the impact fees is necessary. 19.02.070 Fee Collection. The school impact fee shall be imposed, based on the impact fee schedule, at the time of application to the City for a development activity permit. The school impact fee shall be imposed based on the impact fee schedule adopted for the applicable school district. The impact fee and the application fee shall be collected by the City and maintained in separate accounts. All school impact fees shall be paid to the District from the school impact fee account monthly. The City shall retain all application fees associated with the City's administration of the impact fee program. A. Impact fees shall be imposed upon development activity in the City, based upon the adopted fee and collected by the City from any applicant where such development activity requires issuance of a residential building permit or a mobile home park permit or for site plan approval for proposed mobile home parks and the fee has not been previously paid. Impact fees are only collected and disbursed withir~ the boundaries of a school district that has executed an Interlocal Agreement with the City of Auburn. B. Applicants for single family and multi-family residential building permits, and for mobile home permits on existing lots and for site plan approval for proposed mobile home parks shall pay the total amount of the impact fees assessed before the building permit is issued, using the impact fee schedules then in effect. C. The City shall not issue the required building permit or mobile home permit nor grant the required site plan approval for a mobile home park unless and until the impact fees set forth in the impact fee schedule have been paid. D. The City will impose an application fee of $50.00 per dwelling unit which is subject to and not otherwise exempt from this chapter to cover the reasonable cost of administration of the impact fee program. The fee is not refundable and is collected from the applicant, of the development activity permit, at the time of permit issuance, 19.02.080 Exemptions. The following development activities are exempt from the requirement of this chapter: P~e7 Exhibit "A" to Ord. 5078 March 2, 1998 A. Reconstruction, remodeling or construction of any form of housing for the elderly, including nursing homes, retirement centers, and any type of housing units for persons age 55 and over, which have recorded covenants or recorded declaration of restrictions precluding school-aged children as residents of those units. Where such covenants have not already been recorded, but the exemption is sought, the City may require the recording of a covenant or recorded declaration of restriction precluding use of the property for other than the exempt purpose. If property~...._.."*'~--;'-'-.~ using this exemption is subsequently used for a non-exempt purpose, then the school impact fees then in effect shall be paid. B. Rebuilding of legally established dwelling unit(s) destroyed or damaged by fire, flood, explosion, act of nature or other accident or catastrophe, provided that such rebuilding takes place within a period of one year after destruction and t~at no additional dwelling units are created. C. Alteration, expansion, reconstruction, remodeling, or rebuilding of existing single family or multi-family dwelling units provided that no additional dwelling units are created. D. Condominium projects in which existing dwelling units are converted into condominium ownership and where no new dwelling units are created. E. Any development activity that is exempt from the payment of an impact fee pursuant to RCW 82 02 100 '~' '" *" '-~;*;'-"~;-'~ -'~ *~- ......... *~,--; .......... ~ . .,.,~. +~..~ o~..+~ :,.,,; ...... +"~ Pc!!cy P. ct (SEPP.) F. Any development activity for which school impacts have been mitigated pursuant to a condition of a plat, PUD or similar approval to pay fees, dedicate land or construct or improve school facilities, unless the condition of the plat or PUD approval provides otherwise. The condition of the plat, PUD or similar approval must also predate the effective date of fee imposition by the City or its predecessor in interest as provided herein and/or was actually imposed by the City or its predecessor in interest, specifically as a mitigation for impacts addressed in this chapter. Proof must also be submitted, to the City, that the required mitigation has been tendered for the development activity which would otherwise be subject to this ordinance. G. Any development activity for which school impacts have been rnitigated pursuant to a voluntary agreement entered into with the District to pay fees, dedicate land or construct or improve school facilities, unless the terms of the voluntary agreement provide otherwise. The agreement and development activity application must also predate the effective date of fee imposition by the City or its predecessor in interest as provided herein. Proof must also be submitted to the City, prior to issuance of the development activity permit, that the required mitigation has been tendered for the development activity which would otherwise be subject to this ordinance. H. The replacement of a mobile home, with another mobile home, within an existing mobile home park. Exhibit "A" to Ord. 5078 March 2, 1998 Page 8 19~02.09~ Adjustments, Exceptions and Appeals. A. Arrangements may be made for later payment of the impact fee 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, 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. B. The fee amount established in the schedule shall be reduced hy the amount of any eligible payment previously made for the lot or development activity in question, either as a condition of approval or pursuant to a voluntary agreement. C. Whenever a development is granted approval subject to a condition that the development actually provide a school site or facility acceptable to the District, the developer shall be entitled to a credit for the value of the facility, based on the, actual cost of providing the facility, against the fee that would be required by this chapter. The value of the facility shall be estimated at the time of approval, but must be dooumented, and the documentation confirmed after the facility is completed to assure that an accurate credit amount is provided. If facility value, based on actual costs is less than the calculated fee amount the difference remaining shall be chargeable as a school impact fee. D. The standard impact fees may be adjusted by the Planning Director, if one of the following circumstances exist: 1. The developer demonstrates that an impact fee assessment was improperly calculated; or 2. Unusual circumstances identified by the developer demonstrate that if the standard impact fee amount was applied to the development, it would be unfair or unjust taking into account the purposes and intent of this chapter and RCW Chapter 82.02. E. In cases where a developer requests a fee calculation adjustment, exception or a credit pursuant to section 19.02.090(O) of this chapter the Planning Director shall consult with the District and the District shall advise the Planning Director prior to the Planning Director making the final impact fee determination. F. A developer may provide, and the Planning Director shall review, studies and data as a part of a request for a fee calculation adjustment, exception, or credit. G. Any appeal of the final decision of the Planning Director with regard to fee amounts may be made by the developer, district, or other aggrieved party and shall follow the process for the appeal of the underlying development application, as set forth in the Auburn Municipal Code. The Planning Director's decision shall be given substantial weight and the appellant shall have the burden of proof that the final fee determination is unfair, taking into account the purposes and intent of RCW Chapter 82.02 and this chapter. P~e9 Exhibit "A" to Ord. 5078 March 2, 1998 Impact fees may be paid under protest in order to obtain a permit or other approval of development activity. However, such payment under protest shall not excuse the applicant's obligation to timely exhaust all administrative remedie.,~ and to comply with all applicable time limitation periods. '19.02.'100 Impact Fee Accounts and Refunds. A. 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. All interest shall be retained in the account and expended for the purpose or purposes for which impact fees were imposed. Annually, the District, based in part on its report prepared pursuant to section 19.02.050, shall prepare a report on the impact fee account showing the source and amount of all moneys collected, earned or received, and capital or system improvements for which impact fees were used. The District shall submit a copy of this report to the City. The City Finance'Director shall maintain separate school impact fee and administration fee accounts pursuant to Section 19.02.070, and shall prepare, for the City Council, a report on the source and amount of all school impact fees collected and transferred to the District. B. Impact fees for the District's capital improvements shall be expended by the District only in conformance with the capital facilities plan element of the City's comprehensive plan. C. Impact fees shall be expended or encumbered by the District for a permissible use within six (6) years of receipt by the District, unless there exists an extraordinary or compelling reason for fees to be held longer than six (6) years. Such extraordinary or compelling reasons shall be identified to the City by the District in a written report. In any decision approving such an extension, the City Council shall identify the District's extraordinary and compelling reasons for the fees to be held longer than six years in the written findings. D 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 er~cumbered within six (6) years or an extension granted under section 19.02.100(C) of receipt of the funds by the District on school facilities intended to benefit the development activity for which the impact fees were paid. Impact fees shall be considered encumbered on a first in, first out basis. The District shall notify potential claimants by first-class mail deposited with the United States postal service addressed to the current owner of the property as shown in the County tax records. E. An owner's request for a refund must be submitted to the District in writing within one (1) 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 by the District in conformance with the capital facilities plan within these time limitations, and for which no application for a refund has been made within this one (1) 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. Exhibit "A" to Ord, 5078 March 2, 1998 P~el0 F. 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 findings that any or all fee requirements are to be terminated, the City shall place notice of such termination and the availability of the 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 County tax records. All funds available for refund shall be retained for a period of one (1) year. At the end of one (1) year, any remaining funds shall be retained by the District, but must be expended by 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. G. A developer may request and shall receive a refund, includin9 interest earned on the impact fees, when: 1. The developer does not proceed to finalize the development activity as required by statute or City provisions including the Uniform Building Code; and 2. 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 (3) years, the same or subsequent owner of the property proceeds with the substantially similar development activity, the owner shall be eligible for a credit. The owner must petition the District 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 District shall determine whether to grant a credit and such determinations may be appealed by following the procedures set forth in Section 19.02.090. H. Interest due upon the refund of impact fees required by this Section shall be calculated according to the average rate received by the District on invested funds throughout the period during which the fees were retained. Impactr5 Exhibit "A" to Ord. 5078 March 2, 1998 Page 11