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HomeMy WebLinkAboutO-2997 - Amends Sec. 22A.010.160, 22D.020.030, 22D.030.070(9) and 22D.040.060, development impact fees (22A.010, 22D.020, 22D.030, 22D.040)CITY OF MARYSVILLE Marysville, Washington ORDINANCE NO. J 99 ·7 AN ORDINANCE OF THE CITY OF MARYSVILLE, WASHINGTON, RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 22D.020.030 OF MMC CHAPTER 22D.020 RELATING TO DEFERRAL OF PARK, RECREATION, OPEN SPACE AND TRAIL IMPACT FEES; AMENDING SECTION 22D.030.070 OF MMC CHAPTER 22D.030 RELATING TO DEFERRAL OF TRAFFIC IMPACT FEES; AMENDING SECTION 22D.040.060 OF MMC CHAPTER 22D.040 RELATING TO DEFERRAL OF SCHOOL IMPACT FEES; AND AMENDING MMC SECTION 22A.010.160 GENERAL ADMINISTRATION, RELATED TO TRACKING AMENDMENTS TO THE CITY'S UNIFORM DEVELOPMENT CODE; PROVIDING FOR SEVERABILITY AND EFFECTIVE DATE. WHEREAS, the Marysville City Council approved Ordinance No. 2904 on July 9, 2012 providing options for deferral of park impact fees, traffic impact fees and school impact fees; WHEREAS, the impact fee deferral process provided by Ordinance N o. 2904 has worked as intended in regard to single-family residential development and commercial and industrial development; and WHEREAS, the City wishes to continue to utilize the impact fee deferral process of Ordinance No. 2904 for single-family residential development and commercial and industrial development; and WHEREAS, the impact fee deferral process provided by Ordinance No. 2904 is no longer warranted or needed to encourage multi-family residential development; and WHEREAS, RCW 82.02.050 was am ended by section 1, chapter 241 , Laws of 2015, to mandate an impact fee deferral process for any city, except those cities that have an impact fee deferral process in effect on or before April 1, 2015, and that remains in effect after September !, 201 6;and WHEREAS, the impact fee deferral process mandated by section 1, chapter 241 , Laws of 2015 is more cumbersome than the process provided by Ordinance 2904; and WHEREAS, the impact fee deferral provisions in Ordinance No. 2904 automatically terminate on July 23, 2015; WHEREAS, by repealing the provisions of Ordinance 2904 that automatically terminate the impact fee deferral process for single family residential, commercial, and industrial development on July 23, 2015, the City can continue to utilize the more efficient impact fee deferral process of Ordinance 2904; and WHEREAS, the continued use of the impact fee deferral process of Ordinance 2904 will support the continued recovery of the single family and commercial/industrial real estate market in Marysville; and WHEREAS, the Marysville Planning Commission held a public workshop on June 9, 2015 , on the proposed amendments to MMC 22D.020.030, MMC 22D.030.070, AND MMC 22D.040.060 amendments; and WHEREAS, the Marysville Planning Commission held a public hearing on June 30, 2015 to consider the draft ordinance and proposed amendments of MMC 22D.020.030, MMC 22D.030.070, AND MMC 22D.040.060; and WHEREAS, the City Council was briefed by City staff and deliberated in an open public meeting on July 13, 2015 to consider the Planning Commission's recommendations and proposed ordinance; and WHEREAS, the Marysville City Council considered the entire hearing record including the written and oral testimony submitted during the Planning Commission's hearings, the Planning Commission's recommendation, and the written and oral testimony submitted during the Council hearings; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 22D.020.030 of MMC Chapter 22D.020 Parks, Recreation, Open Space and Trails Impact Fees is hereby amended to read as follows: 22D.020.030-Payment of impact fees required. (1) Payment of impact fees required~ Any person who applies for a building permit for any development activity or who undertakes a.ny development activity shall pay the impact fees set in MMC 22D.020.060 or 22D.020.070 to the city of Marysville finance department or its designee. Except as otherwise provided in this section and Title 22 MMC, no new building permit shall be issued until the required impact fees have been paid to the city of Marysville finance department or its designee or successor. Where a building permit is not required for a development activity, the impact fees shall be paid to the city of Marysville finance department or its designee before undertaking the development activity. (2) Deferral of impact fee payments allowed. (a) Reguired impact fee payments may be deferred to final inspection for single family detached or attached residential dwellings. (b) The Community Development Department shall allow an applicant to defer payment of the impact fees when, prior to submission of a building permit application for deferment under subsection (a), the applicant: (i) Submits a signed and notarized deferred impact fee application and acknowledgement form for the development for which the property owner wishes to defer payment of the impact fees. (c) Compliance with the reguirements of the deferral option shall constitute compliance with the conditions pertaining to the timing of payment of the impact fees. Section 2. Subsection 22D.030.070(8) of MMC Chapter 22D.030 Traffic Impact Fees and Mitigation is amended to read as follows: (9) Administration of Traffic Impact Fees. (a) Any traffic impact fees made pursuant to this title shall be subject to the following provisions: (i) Except as otherwise provided in this section and MMC Title 22, the traffic impact fee payment is required prior to building permit issuance unless the development is a subdivision or short subdivision, in which case the payment shall be made prior to the recording of the subdivision or short subdivision; provided, that where no building permit will be associated with a change in occupancy or conditional use _permit then payment is required prior to approval of occupancy. (ii) The traffic impact fees shall be held in a reserve account and shall be expended to fund improvements on the road system. (iii) An appropriate and reasonable portion of traffic impact fees collected may be used for administration of this title. (iv) The fee payer may receive a refund of such fees if the city fails to expend or encumber the impact fees within six years of when the fees were paid, or other such period of time established pursuant to RCW 82.02.070(3), on transportation facilities intended to benefit the development for which the traffic impact fees were paid, unless the city council finds that there exists an extraordinary and compelling reason for fees to be held longer than six years. These findings shall be set forth in writing and approved by the city council. In determining whether traffic impact fees have been encumbered, impact fees shall be considered encumbered on a first-in/first-out basis. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of claimants. (v) The request for a refund must be submitted by the applicant to the city in writing within 90 days of the date the right to claim the refund arises, or the date that notice is given, whichever is later. Any traffic impact fees that are not expended within these time limitations, and for which no application for a refund has been made within this 90-day period, shall be retained and expended on projects identified in the adopted transportation element. Refunds of traffic impact fees under this subsection shall include interest earned on the impact fees. (b) Off-site improvements include construction of improvements to mitigate an arterial unit in arrears and/or specific inadequate road condition locations. If a developer chooses to construct improvements to mitigate an arterial unit in arrears or inadequate road condition problem, and the improvements constructed are part of the cost basis of any traffic impact fees imposed under this title to mitigate the development's impact on the future capacity of city roads, the cost of these improvements will be credited against the traffic impact fee amount; provided, that the amount of the cost to be credited shall be the estimate of the public works director as to what the city's cost would be to construct the improvement. Any developer who volunteers to pay for and/ or construct off-site improvements of greater value than any traffic impact fees imposed under this title, to mitigate the development's impact on the future capacity of city roads, based on the cost basis contained within d1e transportation element, or which are not part of the cost basis of .any traffic impact fees imposed under this title to mitigate the development's impact on the future capacity of city roads, and therefore not credited against the traffic impact fees, may apply for a reimbursement contra·ct. (c) Deferral of impact fees allowed. (i) Required payment of impact fees may be deferred to final inspection for single family detached or attached residential dwelling . Payment of required impact fees for a commercial building, or industrial building, may be deferred from the time of building permit issuance in accordance with following: (A) Fifty percent (50%) of the impact fees shall be paid prior to approved occupancy of the structure; and (B) The remaining fifty percent (50%) of the impact fees shall be paid within eighteen (18) months from the date of building occupancy, or when ownership of the property is transferred, whichever is earlier. (iii) The Community Development Department shall allow an applicant to defer payment of the impact fees when, prior to submission of a building permit application for deferment under subsection (c)(i) or prior to final inspection for deferment under subsection (c)(ii), the applicant: (A) Submits a signed and notarized deferred impact fee application and acknowledgement form for the development for which the property owner wishes to defer payment of the impact fee s; and (B) With regard to deferred payment under subsection (c)(ii), records a lien for impact fees against the property in favor of the City in the total amount of all deferred impact fees for the development. The lien for impact fees shall: 1. Be in a form approved by the city attorney; 2. Include the legal description, tax account number and addr.ess of the property 3. Be signed by all owners of the property, with all signatures as required for a deed, and recorded in the county in which the property is located; 4. Be binding on all successors in title after the recordation; and 5. Be junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees . (iv) In the event that the impact fees are not paid in accordance subsection ( c)(ii), the city shall institute foreclosure proceedings under the process set forth in Chapter 61.12 RCW, except as revised herein. In addition -ro any unpaid impact fees, the city shall be entitled to interest on the unpaid impact fees at the rate provided for in RC\V' 19.52.020 and the reasonable attorney fees and costs incurred by the city in the foreclosure process. Notwithstanding the foregoing, prior to commencement of foreclosure, the City shall give not less than thirty (30) days written notice to the person or entity whose name appears on the assessment rolls of the county assessor as owner of the property via certified mail with return receipt requested and regular mail advising of its intent to commence foreclosure proceedings. If the impact fees are paid in full to the city within the thirty (30) day notice period, no attorney fees, costs and interest will be owed. (v) In the event that the deferred impact fees are not paid in accordance with this section, and in addition to foreclosure proceedings provided in subsection (c)(iv), the city may initiate any other action(s) legally available to collect such impact fees. (vi) Upon receipt of final payment of all deferred impact fees for the development, the department shall execute a separate lien release for the property in a form approved by the city attorney. The property owner, at their expense, will be responsible for recording each lien release. (vii) Compliance with the requirements of the deferral option shall constitute compliance with the conditions pertaining to the timing of payment of the impact fees. Section 3. Section 22D.040.060 of MMC Chapter 22D.040 School Impact Fees and Mitigation is amended to read as follows : 22D.040.060 Impact fee accounting. (1) Collection and Transfer of Fees, Fund Authorized and Created. (a) Except as otherwise provided in this section and MMC Title 22, school impact fees shall be due and payable to the city by the developer at or before the time of issuance of residential building permits for all development activities. (b) In conjunction with the adoption of the city budget, there is hereby authorized the creation and establishment of a fund to be designated the "school impact fee fund." The city shall temporarily deposit all impact fees collected on behalf of a district pursuant to this chapter and any interest earned thereon in the school impact fee fund with specific organizational identity for a district until the transfer of the fees to the school district's school impact fee account pursuant to the interlocal agreement between the city and the district. ( c) Districts eligi ble to receive school impact fees collected by the city shaII establish an interest-bearing account separate from all other district accounts. The city shall deposit school impact fees in the appropriate district account within 10 days after receipt, and shall contemporaneously provide the receiving district with a notice of deposit. ( d) Each district shall institute a procedure for the disposition of impact fees and providing for annual reporting to the city that demonstrates compliance with the requirements of RCW 82.02.070, and other applicable laws. (2) Use of Funds. (a) School impact fees may be used by the district only for capital facilities that are reasonably related to the development for which they were assessed and may be expended only in conformance with the district's adopted capital facilities plan. (b) In the event that bonds or similar debt instruments are issued for the advance provision of capital facilities for which school impact fees may be expended, and where consistent with the provisions of the bond covenants and state law, school impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the capital facilities provided are consistent with the requirements of this title. (c) The responsibility for assuring that school impact fees are used for authorized purposes rests with the district receiving the school impact fees. All interest earned on a school impact fee account must be retained in the account and expended for the purpose or purposes for which the school impact fees were imposed, subject to the provisions of subsection (3) of this section. (d) Each district shall provide the city an annual report showing the source and the amount of school impact fees received by the district and the capital facilities financed in whole or in part with those school impact fees. (3) Deferral of School Impact Fee Payments Allowed. (a) Required school impact fee payments may be deferred to final inspection for a single family detached or attached residential dwelling. (b) The Community Development Department shall allow an applicant to defer payment of the impact fees when, prior to submission of a building permit application for deferment under subsection (a) or prior to final inspection for deferment under subsection (b), the applicant: (i) Submits a signed and notarized deferred impact fee application and acknowledgement form for the development for which the property owner wishes to defer payment of the impact fees. (c), the city may initiate a-ny other action(s) legally available to collect such school impact fees. (d) Compliance with the requirements of the deferral option shall constitute compliance with the conditions pertaining to the timing of payment of the impact fees. ( 4) Refunds. (a) School impact fees not spent or encumbered within six years after they were collected shall, upon receipt of a proper and accurate claim, be refunded, together with interest, to the then current owner of the property. In determining whether school impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis. At least annually, the city, based on the annual report received from each district pursuant to subsection (2)(d) of this section, shall give notice to the last known address of potential claimants of any funds, if any, that it has collected that have not been spent or encumbered. The notice will state that any persons entitled to such refunds may make claims. (b) Refunds provided for under this section shall be paid only upon submission of a proper claim pursuant to city claim procedures. Such claims must be submitted to the director within one year of the date the right to claim the refund arises, or the date of notification provided for above, where applicable, whichever is later. (5) Reimbursement for City Administrative Costs, Legal Expenses, and Refund Payments. Each participating school district shall enter into an agreement with the city of Marysville providing for such matters as the collection, distribution and expenditure of fees and for reimbursement of any legal expenses and staff time associated with defense of this chapter as more specifically set forth in an interlocal agreement between the city and a school district, and payment of any refunds provided under subsection (3) of this section. The city's costs of administering the impact fee program shall be paid by the applicant to the city as part of the development application fee. Said fee shall be as set forth in Chapter 22G.030 MMC and shall be an amount that approximates, as nearly as possible, the actual administrative costs of administering the school impact fee program. Section 4. MMC 22A.010.160, Amendments, of MMC Chapter 22A.010, General Administration, is hereby amended as follows by adding reference to this adopted ordinance in order to track amendments to the City's Unified Development Code: "22A.010.160 Amendments. The following amendments have been made to the UDC subsequent to its adoption: Ordinance Title (description) Effective Date Impact Fee Deferment J /z3 /6" '2015" I Section 4. Severability. If any section, sentence, clause or phrase of this ordinance is held to be invalid or unconstitutional by the Growth Management Hearings Board (Board) or a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Provided, however that if any section, sentence, clause or phrase of this ordinance is held to be invalid by the Board or a court of competent jurisdiction, then the section, sentence, clause or phrase in effect prior to the effective date of this ordinance shall be in full force and effect for that individual section, sentence, clause or phrase as if this ordinance had never been adopted. Section 5. Effective Date. This ordinance shall become effective five days after the date of its publication by summary. PASSED by the City Council and APPROVED by the Mayor this 1fJ diy of zr t.-0 T ___ ,2015. CITY OF MARYSVILLE ATTEST: By ~g~ SAN ~~'CITY CLERK t\?R,-1 t_)0·,~1<'!.1'.l ~u;t-'i Approved as to form: ~~ By -~KER, CITY ATTORNEY Date of Publication: __ 7,_,/;,_,'"""9'~/'""'1_S...__ ___ _ I I Effective Date (5 days after publication):