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HomeMy WebLinkAbout12-19-2005 ITEM VIII-A-4CITY OF _ , AGENDA BILL APPROVAL FORM ---0" WASHINGTON Agenda Subject: Date: Ordinance No. 5977 December 13, 2005 Department: Attachments: Budget Impact: Finance Ordinance No. 5977 Administrative Recommendation: City Council introduce and adopt Ordinance No. 5977. Background Summary: Ordinance No. 5977 authorizes the creation of a new chapter to City Code (Chapter 19.06) providing for the collection of impact fees for fire protection facilities. N1219-4 F4.3 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&O ❑ Airport ® Finance ❑ Cemetery ❑ Mayor ❑ Hearing Examiner ® Municipal Serv. ® Finance ❑ Parks ❑ Human Services ❑ Planning & CD ❑ Fire ❑ Planning ❑ Park Board [-]Public Works ❑ Legal ❑ Police ❑ Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources ❑ Information Services Action: Committee Approval: ❑Yes ❑No Council Approval: ❑Yes ❑No Call for Public Hearing _!_! Referred to Until _/_/ Tabled Until _!_/_ Councilmember: Backus Staff: Coleman Meeting Date: December 19, 2005 1 Item Number: VIII.A.4 AUBURN* MORE THAN YOU IMAGINED ORDINANCE NO. 5 9 7 7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, CREATING A NEW CHAPTER 19.06 TO THE AUBURN CITY CODE, AUTHORIZING THE COLLECTION OF IMPACT FEES FOR FIRE PROTECTION FACILITIES WHEREAS, the City Council of the City of Auburn (the "Council') finds that development activity in the City of Auburn will create additional demand and need for fire protection facilities; and WHEREAS, the City of Auburn is authorized by Chapter 82.02 RCW to require new growth and development within the City of Auburn 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 WHEREAS, impact fees assessed pursuant to Chapter 82.02 RCW must be based upon a showing that new development activity creates additional demand and need for fire protection facilities, that the impact fees do not exceed a proportionate share of the costs of such additional fire protection facilities, and that the fees are spent for facilities reasonably related to the new development; and WHEREAS, impact fees may be collected and spent for fire protection facilities that are included within a capital facilities plan element of a comprehensive plan; and WHEREAS, the City of Auburn is authorized by Chapter 82.02 RCW to impose impact fees for system improvement costs previously incurred by the City of Auburn to the extent that new growth and development will be served by the previously constructed improvements; and ------------------- Ordinance No. 5977 December 13, 2005 Pagel WHEREAS, the City of Auburn has conducted a study documenting the formulas and procedures for measuring the impact of new developments on fire protection facilities, and has prepared a technical report which serves as the basis for the actions taken by the Council; and WHEREAS, the Council hereby incorporates the following study into this ordinance by reference: "Impact Fees for Fire Protection Facilities in Auburn, Washington," dated February 16, 2005. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN DO ORDAIN as follows: SECTION ONE CREATION OF NEW CHAPTER TO CITY CODE: A new Chapter 19.06 of the Auburn City Code is hereby created, providing for the collection of impact fees for fire protection facilities, to read as follows: Chapter 19.06 Fire Impact Fee Sections: 19.06.010 Findings and authority. 19.06.020 Definitions. 19.06.030 Reserved. 19.06.040 Assessment of impact fees. 19.06.050 Independent fee calculations. 19.06.060 Credits and adjustments. 19.06.070 Exemptions. 19.06.080 Appeals. 19.06.090 Establishment of impact fee account for fire protection. 19.06.100 Refunds. 19.06.110. Use of funds. 19.06.120 Review and update of impact fees. 19.06.130 Miscellaneous provisions. 19.06.010 Findings and authority. The council of the city of Auburn (the "council') hereby finds and determines that new growth and development, including but not limited to new residential, commercial, retail, office, and industrial development, in the city of Auburn will create additional demand and need for fire protection facilities in the city of Auburn, and the council finds that new growth and development should pay a proportionate share of the cost of fire protection facilities needed to serve ------------------- Ordinance No. 5977 December 13, 2005 Page 2 the new growth and development. The city of Auburn has conducted a study documenting the procedures for measuring the impact of new developments on fire protection facilities. This study has contributed to the rates as established in the fee schedule of the city of Auburn. Therefore, pursuant to Chapter 82.02 RCW, the council adopts this chapter to assess impact fees for fire protection 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. 19.06.020 Definitions. The following words and terms shall have the following meanings for the purposes of this chapter, unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual and customary meaning. A. "Act" means the Growth Management Act, Chapter 36.70A RCW as now in existence or as hereafter amended. B. "Building permit" for the purposes of this chapter only, means an official document or certification which is issued by the city and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure. In the case of increased impacts on fire protection facilities caused by a change in use or occupancy of an existing building or structure, and where no building permit is required, the term "building permit" shall specifically include business registrations. C. "Capital facilities plan" means the capital facilities plan element of the city's comprehensive plan adopted pursuant to Chapter 36.70A RCW, and such plan as amended. D. "City" means the city of Auburn. E. "Council" means the city council of the city of Auburn. F. "Department" means the department of planning and community development. G. "Development activity" means any 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 and need for fire protection facilities. H. "Director" means the director of the department of planning and community development or the director's designee. I. "Downtown plan area" means the study area as identified and adopted in the City of Auburn Downtown Plan dated May 2001 that is defined by the boundary of the Union Pacific Railroad on the west and State Route 18 on the south. The eastern boundary is defined as F Street SE from State Route 18 to East Main Street, East Main Street from F Street SE to E Street SE, and E Street NE from East Main Street to 4th Street NE. The northern boundary is defined as 2nd Street NW from the Interurban Trail to D Street NW, 3`d Street NW/NE from D Street NW to Auburn Avenue, and 4th Street NE from Auburn ------------------- Ordinance No. 5977 December 13, 2005 Page 3 Avenue to E Street NE. For the purposes of this chapter, the downtown plan boundary has been slightly modified to avoid bisecting properties. J. "Dwelling unit" means a building, or portion thereof, designed for residential occupancy, consisting of one or more rooms which are arranged, designed or used as living quarters for one family only. K. "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 fire protection facilities. L. "Feepayer" is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity commencing a land development activity which creates the demand for additional fire protection facilities, and which requires the issuance of a building permit. "Feepayer" includes an applicant for an impact fee credit. M. "Fire protection facilities" means fire trucks and apparatus, and fire stations, and any furnishings and equipment that are used with fire trucks and apparatus or fire stations and which can be capitalized. N. "Fire protection project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development or users of the project, and are not fire protection system improvements. No fire protection improvement or facility included in a capital facilities plan approved by the council shall be considered a fire protection project improvement. O. "Fire protection system improvements" means fire protection facilities that are included in the city of Auburn's capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to fire protection project improvements. P. "Hearing examiner" means the examiner who acts on behalf of the council in considering and applying land use regulatory codes as provided under Chapter 18.66 ACC. Where appropriate, "hearing examiner" also refers to the office of the hearing examiner. Q. "Impact fee" means a payment of money imposed by the city of Auburn on development activity pursuant to this chapter as a condition of granting development approval in order to pay for the fire protection facilities needed to serve new growth and development. R. "Impact fee account" or "account" means the account established for the fire protection facilities impact fees collected. The account shall be established pursuant to ACC 19.06.090, and comply with the requirements of RCW 82.02.070. S. "Independent fee calculation" means the fire protection impact calculation prepared by a feepayer to support the assessment of an impact fee other than by the use of the attached schedules. T. "Interest" means the interest rate earned by local jurisdictions in the State of Washington Local Government Investment Pool, if not otherwise defined. ------------------- Ordinance No. 5977 December 13, 2005 Page 4 U. "Owner" means the owner of record of real property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the real property. V. "State" means the state of Washington. 19.06.030 Reserved. 19.06.040 Assessment of impact fees. A. Effective May 1, 2005, the city shall collect impact fees, based on the fee schedule of the city of Auburn, from any applicant seeking development approval from the city for any development activity within the city. B. The amount of impact fees shall be determined at the time an applicant submits a complete application for a building permit, using the impact fee schedules then in effect, or pursuant to an independent fee calculation accepted by the director pursuant to ACC 19.06.050, and adjusted for any credits pursuant to ACC 19.06.060. C. Payment of impact fees shall be made by the feepayer at the time the building permit is issued for each unit in the development. The amount to be paid shall not be increased for any applicant that submitted a complete application for the building permit before the city established the impact fee rates. D. Applicants that have been awarded credits prior to the submittal of the complete building permit application pursuant to ACC 19.06.060 shall submit, along with the complete building permit application, a copy of the letter or certificate prepared by the director pursuant to ACC 19.06.060 setting forth the dollar amount of the credit awarded. Impact fees, as determined after the application of appropriate credits, shall be collected from the feepayer at the time the building permit is issued. E. The department shall not issue a building permit unless and until the impact fees have been paid or credit(s) awarded. 19.06.050 Independent fee calculations. A. If in the judgment of the director, none of the fee categories or fee amounts set forth in the attached schedule accurately describes or captures the impacts of the new development, the applicant shall conduct an independent fee calculation and the director may impose alternative fees on a specific development based on those calculations, once accepted by the city. B. Feepayers may opt not to have the impact fees determined according to the attached schedule. Such feepayers shall prepare and submit to the director an independent fee calculation for the development activity for which a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. C. A nonreimbursable administrative fee shall be charged for each independent fee calculation. The fee shall be deposited with the city to pay for city review of the independent fee calculation upon submittal of the documented independent fee study. ------------------- Ordinance No. 5977 December 13, 2005 Page 5 D. After the city completes its review, the actual fees and expenses will be determined and the cash deposit shall be adjusted to provide for a refund by the city or additional payment by the feepayer. E. While there is a presumption that the calculations set forth in the attached schedule are valid, the director shall consider the documentation submitted by the feepayer, but is not required to accept such documentation which the director reasonably deems to be inaccurate or not reliable, and may, in the alternative, require the feepayer 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 where adjustment is deemed by the director to be appropriate based on principles of fairness under the circumstances of the case. F. Determinations made by the director pursuant to this section may be appealed to the office of the hearing examiner subject to the procedures set forth in ACC 19.06.080. 19.06.060 Credits and adjustments. A. A feepayer can request that a credit or credits for fire protection impact fees be awarded to him/her for fire protection system improvement projects provided by the feepayer in excess of the standard re3quirements for the feepayer's development if the land, improvements, and/or the facility constructed are identified as fire protection system improvements that provide capacity to serve new growth in the capital facilities plan, or the director, at his/her discretion, makes the finding that such land, improvements, and/or facilities would serve the fire protection goals and objectives of the capital facilities plan. B. For each request for a credit or credits, the 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 department to determine the value of the land being dedicated. The value of improvements will be determined through documentation submitted by the feepayer. C. 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. D. After receiving the appraisal, the 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 his/her agreement to the terms of the letter or certificate, and return such signed document to the 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. Ordinance No. 5977 December 13, 2005 Page 6 E. 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. F. Determinations made by the director pursuant to this section shall be subject to the appeals procedures set forth in ACC 19.06.080. G. Pursuant to and consistent with the requirements of RCW 82.02.060, the fee rate in the fee schedule has been reasonably adjusted for other revenue sources which are earmarked for, or proratable to, funding fire protection facilities. 19.06.070 Exemptions. A. The following shall be exempted from the payment of fire protection impact fees: 1. Replacement of a structure with a new structure of the same size and use at the same site or lot when such replacement occurs within twelve (12) months of the demolition or destruction of the prior structure. 2. 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. 3. Alterations of an existing non-residential structure that does not expand the useable space and that does not involve a change in use. 4. Miscellaneous improvements, including but not limited to fences, walls, swimming pools, and signs. 5. Demolition or moving of a structure. 6. Any building permit application that has been submitted to the department before 5:00 p.m. the business day before the first effective date of the fire protection impact fee rate schedule and subsequently determined to be a complete application by the city. 7. All development activity within the "downtown plan area" as defined in ACC 19.06.020(1); provided, that this exemption shall sunset on December 31, 2006, unless otherwise extended by the city council. In order to comply with RCW 8.02.060(2), impact fees for development activity in the downtown plan area shall be paid for with public funds other than from impact fee accounts during the exemption period set forth herein. B. The director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section. Determinations of the director shall be subject to the appeals procedures set forth in ACC 19.06.080 below. 19.06.080 Appeals. A. Any feepayer may pay the impact fees imposed by this chapter under protest in order to obtain a building permit. Appeals regarding the impact fees imposed on any development activity may only be made by the feepayer of the property where such development activity will occur. No appeal submitted under protest shall be permitted unless and until the impact fees at issue have ------------------- Ordinance No. 5977 December 13, 2005 Page 7 been paid. Alternatively, any feepayer may appeal the impact fees determined by the director without first paying the fees, providing the applicant is willing to provide a satisfactory security of the appealed fee amount in accordance with the requirements of ACC 17.08.010(A) prior to issuance of the building permit. Alternatively, any feepayer may appeal the impact fees determined by the director without first paying the fees provided the applicant is willing to postpone issuance of the building permit until after the appeal process when the revised final fee is known. B. 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 with respect to the independent fee calculation, or any other determination which the director is authorized to make pursuant to this chapter, can be appealed to the hearing examiner. C. Appeals shall be taken within ten (10) days of the director's issuance of a written determination by filing with the office of the hearing examiner a notice of appeal specifying the grounds thereof, and depositing the necessary fee, which is set forth in the existing fee schedules for appeals of administrative decisions. The director shall transmit to the office of the hearing examiner all papers constituting the record for the determination, including, where appropriate, the independent fee calculation. D. The hearing examiner shall fix a time for the hearing of the appeal, give notice to the parties in interest, and decide the same as provided in Chapter 18.66 ACC. At the hearing, any party may appear in person or by agent or attorney. E. The hearing examiner is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of the credit, or the accuracy or applicability of an independent fee calculation. The decision of the Hearing examiner shall be final, except as provided in subsection (G) of this section. F. The hearing examiner may, so long as such action is in conformance with the provisions of this chapter, reverse or affirm, in whole or in part, or may modify the determinations of the director with respect to the amount of the impact fees imposed or the credit awarded upon a determination that it is proper to do so based on principles of fairness, and may make such order, requirements, decision or determination as ought to be made, and to that end shall have the powers which have been granted to the director by this chapter. G. Any feepayer aggrieved by any decision of the office of the hearing examiner may appeal the hearing examiner's final decision as provided in Chapter 18.66 ACC. 19.06.090 Establishment of impact fee account for fire protection. A. Impact fee receipts shall be earmarked specifically and deposited in special interest-bearing accounts. The fees received shall be prudently invested in a manner consistent with the investment policies of the city. ------------------- Ordinance No. 5977 December 13, 2005 Page 8 B. There is hereby established a separate impact fee account for the fees collected pursuant to this chapter: the fire protection facilities impact fee account. Funds withdrawn from these accounts must be used in accordance with the provisions of ACC 19.06.110. Interest earned on the fees shall be retained in the account and expended for the purposes for which the impact fees were collected. C. On an annual basis, the financial director shall provide a report to the council on the fire protection impact fee account showing the source and amount of all moneys collected, earned, or received, and the fire protection system improvements that were financed in whole or in part by impact fees. D. Impact fees shall be expended or encumbered within six years of receipt, unless the council identifies in written findings an extraordinary and compelling reason or reasons for the delay. 19.06.100 Refunds. A. If the city fails to expend or encumber the impact fees within six years of when the fees were paid, or where extraordinary or compelling reasons exist, such other time periods as established pursuant to ACC 19.06.090, 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. B. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant or claimant must be the owner of the property. C. 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. D. Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the city and expended on the appropriate fire protection facilities. E. Refunds of impact fees under this section shall include any interest earned on the impact fees by the city. F. If and when the city seeks to terminate any or all components of the fire protection 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 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, but must be expended for the appropriate fire protection facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within an account or accounts being terminated. ------------------- Ordinance No. 5977 December 13, 2005 Page 9 G. The city shall also refund to the developer 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. 19.06.110. Use of funds. A. Pursuant to this chapter, impact fees: 1. Shall be used for fire protection system improvements that will reasonably benefit the new development; and 2. Shall not be imposed to make up for deficiencies in fire protection facilities serving existing developments; and 3. Shall not be used for maintenance or operations. B. As a general guideline, fire protection impact fees may be used for any fire protection system improvements which could otherwise be funded by a bond issue of the city. C. Fire protection facilities impact fees may be spent for fire protection system improvements, including but not limited to fire trucks, apparatus, and fire stations, including planning, land acquisition, site improvements, necessary off- site improvements including mitigation, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized. D. Impact fees may be used to recoup fire protection 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. E. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of fire protection system 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. 19.06.120 Review and update of impact fees. A. The fee rate schedules set forth in the fee schedule of the city of Auburn shall be reviewed by the council no later than two years after the effective date of the attached fee rate schedule, and no more than every two years thereafter. B. The fee schedules set forth in the fee schedule of the city of Auburn shall be reviewed by the council as it may deem necessary and appropriate in conjunction with the annual update of the capital facilities plan element of the city's comprehensive plan. 19.06.130 Miscellaneous provisions. A. Existing Authority Unimpaired. Nothing in this chapter shall preclude the city from requiring the feepayer or the proponent of a development activity to ------------------- Ordinance No. 5977 December 13, 2005 Page 10 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 the provisions of RCW 82.02.050(1) (c) . B. Captions. The chapter and section captions used in this chapter are for convenience only and shall not control or affect the meaning or construction of any of the provisions of this chapter. C. Severability. If any portion of this chapter is found to be invalid or unenforceable for any reason, such finding shall not affect the validity or enforceability of any other section of this chapter. SECTION TWO IMPLEMENTATION: The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. SECTION THREE CONSTITUTIONALITY OR INVALIDITY: If any section, subsection, clause, phrase, or sentence of this Ordinance, is for any reason held to be invalid or unconstitutional, such invalidity or unconstitutionality of the remaining portions of this ordinance, as it is being hereby expressly declared that this ordinance and each section, subsection, clause, phrase, or sentence, hereof would have been prepared, proposed, adopted, and approved and ratified irrespective of the fact that any one or more section, subsection, clause, phrase, or sentence, be declared invalid or unconstitutional. SECTION FOUR EFFECTIVE DATE: This Ordinance shall take effect and be in force five (5) days from and after its passage, approval, and publication, as provided by law, and on January 1, 2006. INTRODUCED: PASSED: APPROVED: PETER B. LEWIS, Mayor ------------------- Ordinance No. 5977 December 13, 2005 Page 11 ATTEST: Danielle E. Daskam, City Clerk vii9Ww4d a- ro, P I PUBLISHED: ------------------- Ordinance No. 5977 December 13, 2005 Page 12