The city council of the City of Kenmore (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 Kenmore will create additional demand and need for public facilities serving the City of Kenmore, and the council finds that new growth and development should pay a proportionate share of the cost of new facilities needed to serve the new growth and development. The City of Kenmore prepared initial studies to support the adoption of these impact fees, and prepared supplemental studies to analyze necessary updates to these fees, all of which document the procedures for measuring the impact of new developments on public facilities. In conjunction with the Northshore School District, the City of Kenmore likewise reviews school impact fee analyses. The City of Kenmore hereby incorporates these studies, as amended, and their analyses into this chapter by reference. Therefore, pursuant to Chapter 82.02 RCW, the council adopts this chapter to assess impact fees for transportation, parks and schools. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the impact fee program.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1); Ord. 19-0483 § 2 (Att. 1))
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. 
“Accessory dwelling unit”
means a separate complete dwelling unit attached to or contained within the structure of the primary dwelling; or contained within a separate structure that is accessory to the primary dwelling unit on the premises.
B. 
“Building permit”
means an official document or certification which is issued by the building official and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure.
C. 
“Capital facilities plan”
means the capital facilities plan element of a comprehensive plan adopted by the City of Kenmore pursuant to Chapter 36.70A RCW, and such plan as amended.
D. 
“City manager”
means the city manager or the city manager’s designee.
E. 
“Council”
means the city council of the City of Kenmore.
F. 
“Development activity”
means any construction, expansion, or change in the use of a building or structure that creates additional demand and need for public facilities.
G. 
“Development approval”
means any written authorization from the City of Kenmore which authorizes the commencement of a development activity.
H. 
“Dwelling unit”
means one or more rooms designed for occupancy by a person or family for living and sleeping purposes, containing kitchen facilities and rooms with internal accessibility, for use solely by the dwelling’s occupants. Micro-housing dwelling units may share kitchen facilities with other dwelling units in place of providing kitchen facilities within each unit.
I. 
“Elderly”
means a person aged 62 or older.
J. 
“Encumbered”
means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for public facilities.
K. 
“Feepayer”
is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity or municipal corporation, commencing a land development activity which creates the demand for additional capital facilities, and which requires the issuance of a building permit. “Feepayer” includes an applicant for an impact fee credit.
L. 
“Gross floor area”
means the total square footage of any building, structure, or use, including accessory uses.
M. 
“Hearing examiner”
means the examiner who acts on behalf of the City in considering and applying land use regulatory codes as provided under this code. Where appropriate, “hearing examiner” also refers to the office of the hearing examiner.
N. 
“Impact fee”
means a payment of money imposed by the City of Kenmore on development activity pursuant to this chapter as a condition of granting development approval in order to pay for the public facilities needed to serve new growth and development. “Impact fee” does not include a reasonable permit fee, an application fee, the administrative fee for collecting and handling impact fees, or the cost of reviewing independent fee calculations.
O. 
“Impact fee account” or “account”
means the account(s) established for each type of public facility for which impact fees are collected. The accounts shall be established pursuant to KMC § 20.47.080 and 20.47.090, and comply with the requirements of RCW 82.02.070.
P. 
“Independent fee calculation”
means the transportation impact calculation, park impact calculation, school impact calculation, and/or economic documentation prepared by a feepayer to support the assessment of an impact fee other than by the use of the rates listed in Article II of this chapter, or the calculations prepared by the city manager where none of the fee categories or fee amounts in Article II of this chapter accurately describe or capture the impacts of the new development.
Q. 
“Interest”
means the average interest rate earned in the last fiscal year by the City of Kenmore.
R. 
“Interlocal agreement”
means the agreement between the Northshore School District and the City governing the operation of the school impact fee program and describing the relationship, duties and liabilities of the parties.
S. 
“ITE Land Use Code”
means the classification code number assigned to a type of land use by the Institute of Transportation Engineers in the version of “Trip Generation” adopted by the City.
T. 
“Low-income housing”
means housing with a monthly housing expense that is no greater than 30 percent of 80 percent of the median family income adjusted for family size in King County, as determined by the United States Department of Housing and Urban Development (HUD). In the event that HUD no longer publishes median income figures for King County, the County may use or determine such other method as it may choose to determine the King County median income, adjusted for household size.
U. 
“Mobility unit”
means one p.m. peak hour person trip end. Each person trip has two trip ends, one each at the origin and destination.
V. 
“Open space”
means for the purposes of this chapter undeveloped public land that is permanently protected from development (except for the development of trails or other passive public access or use).
W. 
“Owner”
means the owner of record of real property, or a person with an unrestricted written option to purchase 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.
X. 
“Parks”
means parks, open space, and recreational facilities, including but not limited to ball fields, golf courses, athletic fields, soccer fields, swimming pools, tennis courts, volleyball courts, neighborhood parks, community parks, and open space.
Y. 
“Parks study”
means the most recent report of the methodology and calculation of impact fees for park facilities kept on file with the city clerk.
Z. 
“Project improvements”
means site improvements and facilities that are planned and designed to provide service for a particular development or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan adopted by the council shall be considered a project improvement.
AA. 
“Public facilities”
means the following capital facilities owned or operated by the City of Kenmore or other governmental entities: (1) public transportation facilities; (2) publicly owned parks, open space, and recreation facilities; and (3) public school facilities.
BB. 
“Transportation study”
means the most recent report of the methodology and calculation of impact fees for transportation projects kept on file with the city clerk.
CC. 
“Residential” or “residential development”
means all types of construction intended for human habitation. This shall include, but is not limited to, single-family, duplex, triplex, and other multifamily development.
DD. 
“School impact fee analysis”
means the school impact fee analysis contained in the Northshore School District Capital Facilities Plan.
EE. 
“Square footage”
means the square footage of the gross floor area of the development.
FF. 
“State”
means the State of Washington.
GG. 
“System improvements”
means public facilities that are included in the capital facilities plan of the City of Kenmore or the Northshore School District as adopted by reference in the City’s comprehensive plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.
HH. 
“Transportation facility”
means public easements or right-of-way that enables motor vehicles, transit vehicles, bicycles and/or pedestrians to travel between destinations.
II. 
“Trip generation”
means the number of mobility units generated by a development activity.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1); Ord. 19-0483 § 2 (Att. 1))
A. 
The City shall collect impact fees, based on the rates in Article II of this chapter, from any applicant seeking development approval from the City for any development activity within the City, where such development activity requires the issuance of a building permit. The City also may collect an application fee as established by the council by resolution to cover the City’s reasonable costs of administration of the impact fee program.
B. 
For mixed use developments, impact fees shall be imposed for the proportionate share of each land use based on the applicable measurement in the impact fee rates set forth in Article II of this chapter.
C. 
For purposes of school impact fees, town-houses, as defined in KMC § 18.20.835, shall be considered multifamily development.
D. 
The payment of a parks impact fee, consistent with this chapter, shall be the preferred method of meeting park space requirements for all new development.
E. 
Impact fees shall be calculated at the time the complete application for a building permit is submitted using the impact fee rates then in effect. Except as provided in subsection H of this section, impact fees shall be paid at the time the permit is issued by the City.
F. 
Applicants that have been awarded credits pursuant to KMC § 20.47.050 prior to the submittal of the complete building permit application shall submit, along with the complete building permit application, a copy of the letter or certificate prepared by the city manager pursuant to KMC § 20.47.050 setting forth the dollar amount of the credit awarded. Except as provided in subsection H of this section, impact fees, as determined after the application of appropriate credits, shall be collected from the feepayer at the time the building permit is issued.
G. 
Except as provided in subsection H of this section, the city manager shall not issue the required permit unless and until the impact fees set forth in Article II of this chapter have been paid in the amount that exceeds exemptions or credits provided pursuant to KMC § 20.47.040 or 20.47.050.
H. 
An applicant for a building permit for a single-family detached or attached residence may request a deferral of the full impact fee payment, deferring collection of the impact fee payment until issuance of a certificate of occupancy or equivalent certification and subject to this subsection H. The certificate of occupancy or equivalent certification shall not be issued until the impact fees have been paid in full. The amount of impact fees that may be deferred must be determined by the fees in effect at the time the permit application is deemed complete. The term of an impact fee deferral under this subsection may not exceed 18 months from the date of building permit issuance. An applicant seeking a deferral under this subsection must grant and record a deferred impact fee lien against the property in favor of the City in the amount of the deferred impact fee. The deferred impact fee lien, which must include the legal description, tax account number, and address of the property, must also be:
1. 
In a form approved by the City;
2. 
Signed and notarized by all owners of the property, with all signatures acknowledged as required for a deed, and recorded in the county where the property is located;
3. 
Binding on all successors in title after the recordation; and
4. 
Junior and subordinate to any mortgage or deed of trust for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees.
If the deferred impact fees are not paid in accordance with a deferral authorized by this subsection, and in accordance with the term provisions established in this subsection, the City may institute foreclosure proceedings in accordance with Chapter 61.12 RCW. Upon receipt of final payment of all deferred impact fees for a property, the City must execute a release of deferred impact fee lien for the property. The property owner at the time of the release, at his or her expense, is responsible for recording the lien release. The extinguishment of a deferred impact fee lien by the foreclosure of a lien having priority does not affect the obligation to pay the impact fees as a condition of final inspection, certificate of occupancy, or equivalent certification. Each applicant for a single-family residential construction permit, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this subsection for the first 20 single-family residential construction building permits per city. A nonrefundable fee, as set forth in a fee resolution adopted by the council, associated with implementing this subsection shall accompany the request.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1); Ord. 19-0478 § 2 (Exh. 1))
A. 
Except as provided for below, the following shall be exempted from the payment of all impact fees:
1. 
Alteration, expansion or replacement of an existing residential structure that does not add any dwelling units;
2. 
Miscellaneous improvements that do not increase the impacts of the development on the City’s public facilities, including, but not limited to, fences, walls, swimming pools, and signs;
3. 
Demolition or moving of a structure;
4. 
Expansion or replacement of an existing single-family residential structure that maintains its single-family character;
5. 
Replacement of a nonresidential structure with a new structure of the same size and use at the same site or lot when such replacement occurs within 12 months of the demolition or destruction of the prior structure. Replacement of a structure with a new structure of the same size shall be interpreted to include any structure for which the gross square footage of the building will not be increased by more than 100 square feet;
6. 
Pursuant to RCW 82.02.060, the council may provide exemptions for low-income housing and other development activities with broad public purposes. Exemptions for school impact fees under this subsection shall be approved by the Northshore School District;
7. 
Accessory dwelling units; provided, that impact fees shall be assessed if at any time the accessory dwelling unit is converted to another land use or dwelling unit, based on the impact fees in effect at the time of conversion.
B. 
Except as provided for below, the following shall be exempted from the payment of school impact fees:
1. 
Reconstruction, remodeling or construction of the following facilities, subject to the recording of a covenant or recorded declaration of restrictions precluding use of the property for other than the exempt purpose; provided, that if the property is used for a nonexempt purpose, the school impact fees then in effect shall be paid:
a. 
Shelters or dwelling units for temporary placement, which provide housing to persons on a temporary basis for not more than four weeks;
b. 
Construction or remodeling of transitional housing facilities or dwelling units that provide housing to persons on a temporary basis for not more than 24 months, in connection with job training, self-sufficiency training and human services counseling, the purpose of which is to help persons make the transition from homelessness to placement in permanent housing; and
c. 
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 in those units.
2. 
Any development activity for which school impacts have been mitigated pursuant to a condition of plat approval to pay fees, dedicate land or construct or improve school facilities, unless the condition of the plat approval provides otherwise; provided, that the condition of the plat approval predates May 22, 2018.
3. 
Any development activity for which school impacts have been mitigated 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; provided, that the agreement predates May 22, 2018.
4. 
Any building permit application that has been submitted to the City before closing time on the business day before the effective date of the ordinance codified in this chapter imposing school impact fees and subsequently determined to be a complete application, based on the information on file as of the effective date of such imposition.
5. 
Subject to approval by the city manager, any building permit application submitted to the City after the effective date of the ordinance codified in this chapter that imposes school impact fees that results from a pre-existing, unexpired approval of a zoning variance, shoreline substantial development permit, shoreline variance, site plan review for uses allowed by zone, or reasonable use exception under KMC § 18.55.180. This exemption shall be limited to approvals directly related to the siting of the proposed building.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1))
A. 
A feepayer can request that a credit or credits for impact fees be awarded to him/her for the total value of dedicated land, improvements, or construction provided by the feepayer. Credits will be given only if the land, improvements, and/or the facility constructed are:
1. 
Included within the capital facilities plan and identified on the list of impact fee projects in the transportation study, parks study or school impact fee analysis; and
2. 
At suitable sites and constructed at acceptable quality as determined by the City or Northshore School District; and
3. 
For parks:
a. 
Such park, recreation or open space land improvements or construction completed shall be adjacent to other publicly owned park, recreation or open space land; or
b. 
Be within an area of the City designated within the City comprehensive plan as in need of park, open space or recreation facility space; or
c. 
Would in some other way further the goals and objectives of the capital facilities plan or other City plans.
B. 
The city manager shall determine if a request for a credit or credits meets the criteria in subsection A of this section. When a feepayer requests a credit for school impact fees, the city manager shall receive input from the Northshore School District before making the decision.
C. 
For each request for a credit or credits the city manager shall select an appraiser or the fee-payer may select an independent appraiser acceptable to the city manager.
D. 
The appraiser must possess an MAI or other equivalent certification and shall not have a fiduciary or personal interest in the property being appraised. A description of the appraiser’s certification shall be included with the appraisal, and the appraiser shall certify that he or she does not have a fiduciary or personal interest in the property being appraised.
E. 
The appraiser shall be directed to determine the total value of the dedicated land, improvements, and/or construction provided by the fee-payer on a case-by-case basis.
F. 
The feepayer shall pay for the cost of the appraisal or request that the cost of the appraisal be deducted from the credit which the city manager may be providing to the feepayer, in the event that a credit is awarded.
G. 
After receiving the appraisal, the city manager shall provide the feepayer with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, the legal description of the site donated where applicable, and the legal description or other adequate description of the project or development to which the credit may be applied. The feepayer must sign and date a duplicate copy of such letter or certificate indicating his or her agreement to the terms of the letter or certificate, and return such signed document to the city manager before the impact fee credit will be awarded. The failure of the feepayer to sign, date, and return such document within 60 calendar days shall nullify the credit.
H. 
No credit shall be given for project improvements.
I. 
Any claim for credit must be made with the impact fee calculation submittal. The failure to timely file such a claim shall constitute a final bar to a later request for any such credit.
J. 
Determinations made by the city manager pursuant to this section shall be subject to the appeals procedures set forth in KMC § 20.47.070.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1); Ord. 19-0483 § 2 (Att. 1))
Pursuant to and consistent with the requirements of RCW 82.02.060, the rate study, the parks study and the school impact fee analysis have provided adjustments for future taxes to be paid by the new development which are earmarked or proratable to the same new public facilities which will serve the new development. The impact fee rates in Article II of this chapter have been reasonably adjusted for taxes and other revenue sources which are anticipated to be available to fund public improvements.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1))
A. 
Appeals of City decisions on transportation impact fees shall be conducted according to KMC § 12.80.090.
B. 
Appeals of City decisions on park and school impact fees shall be conducted as follows:
1. 
Appeals may only be filed by the fee-payer for the property where the development activity will occur.
2. 
The feepayer must first file a request for review by the city manager regarding the impact fees with the city clerk, as follows:
a. 
The request shall be in writing on the form provided by the City;
b. 
The request for review by the city manager shall be filed within 14 calendar days of the feepayer’s payment of the impact fees at issue; the failure to timely file such a request shall constitute a final bar to later seek such review;
c. 
No administrative fee will be imposed for the request for review by the city manager; and
d. 
The city manager shall issue his or her determination in writing.
3. 
Determinations of the city manager under subsection (B)(2) of this section with respect to the applicability of the impact fees to a given development activity, the availability or value of a credit, or the city manager’s decision concerning the independent fee calculation which is authorized in Article II of this chapter, or the fees imposed by the city manager pursuant to Article II of this chapter, or any other determination which the city manager is authorized to make pursuant to this chapter, can be appealed to the hearing examiner.
4. 
Appeals shall be taken within 14 calendar days of the city manager’s issuance of a written determination by filing 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 such decisions. The city manager shall transmit to the office of the hearing examiner all papers constituting the record for the determination, including, where appropriate, the independent fee calculation.
5. 
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 this code. At the hearing, any party may appear in person or by agent or attorney.
6. 
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 this section.
7. 
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 city manager.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1))
A. 
Impact fee receipts shall be earmarked specifically and deposited in special interest-bearing accounts.
B. 
There are hereby established three separate impact fee accounts for the fees collected pursuant to this chapter: the transportation impact account, the parks impact account and the school impact account. The funds from the school impact account shall be transferred to the Northshore School District in accordance with the interlocal agreement described under subsection C of this section. Funds withdrawn from the transportation and parks impact accounts must be used in accordance with the provisions of KMC § 20.47.100 and applicable State law. Interest earned on the fees shall be retained in each of the accounts and expended for the purposes for which the impact fees were collected.
C. 
As a condition of the City’s authorization and adoption of school impact fees, the City and Northshore School 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.
D. 
On an annual basis, the city manager shall provide a report to the council on each of the three impact fee accounts showing the source and amount of all monies collected, earned, or received, and the public improvements that were financed in whole or in part by impact fees.
E. 
Impact fees shall be expended or encumbered within 10 years of receipt, unless the council identifies in written findings an extraordinary and compelling reason or reasons for the impact fees to be held longer than 10 years. If the Northshore School District concludes that there is an extraordinary or compelling reason or reasons for holding school impact fees longer than 10 years, the District must submit to the City at least 60 days before the expiration of the 10-year period draft written findings regarding an extraordinary or compelling reason or reasons for holding school impact fees for longer than 10 years. Under such circumstances, the council shall establish the period of time within which the impact fees shall be expended or encumbered.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1))
The current owner of the property for which an impact fee has been paid may receive a refund of such fees if the City or Northshore School District fails to expend or encumber the impact fees within 10 years of when the fees were paid or such other period of time established by RCW 82.02.070(3) on public facilities intended to benefit the development activity for which the impact fees were paid. Refunds shall be subject to the provisions of RCW 82.02.080. The request for a transportation or park impact fee refund must be submitted to the city manager in writing. For school impact fee refunds, the request must be submitted in writing to the Northshore School District.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1))
A. 
Pursuant to this chapter, impact fees shall:
1. 
Be used for public improvements that will reasonably benefit the new development; and
2. 
Not be imposed to make up for deficiencies in public facilities serving existing developments; and
3. 
Not be used for maintenance or operation.
B. 
Transportation impact fees may be spent for public improvements, including, but not limited to, planning, land acquisition, right-of-way acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized.
C. 
Park impact fees may be spent for public improvements, including, but not limited to, planning for parks that will reasonably benefit the new development, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and capital equipment pertaining to park facilities.
D. 
School impact fees may be spent for public improvements, including, but not limited to, school planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, relocatable facilities (portables), capital equipment pertaining to educational facilities, and any other expenses which could be capitalized and which are consistent with the school impact fee analysis.
E. 
Impact fees may also be used to recoup public improvement costs previously incurred by the City or the Northshore School District to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.
F. 
In the event that bonds or similar debt instruments are or have been issued for the advanced provision of public improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section and are used to serve the new development.
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1))
The council may review and adjust the fee rates set forth in Article II of this chapter as it deems necessary and appropriate in conjunction with the annual update of the capital facilities plan element of the City’s comprehensive plan; provided, that the city manager may adjust transportation and park impact fees annually in accordance with a five-year rolling average of the Washington State Department of Transportation Construction Cost Index (“CCI”).
(Ord. 16-0420 § 7 (Exh. 5); Ord. 18-0463 § 2 (Exh. 1); Ord. 19-0483 § 2 (Att. 1))