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06/28/2022 - Regular - Additional Docs Received#, Public Hearing -� 2022 Comp Plan Amendments (6A) June 28.. 2022 Each speaker may address the Council once regarding tonight's public hearing. *Names and addresses may be subject to public disclosure. Name (please print) Full Address Home Phone Email v, 7$0 SE.Mt1e b 36O95:0We-- r ffi D 'c c Dh 01 Ir ,66 P, ir - 09 Alternative 1 Rene. ORDINANCE NO. I�/� JUN �� t AN ORDINANCE OF THE CITY OF PORT ORCHARD, WAS"TON, ' 8 �0 RELATING TO PARK AND SCHOOL IMPACT FEES, AME J,' CHAPTER 20.182 OF THE PORT ORCHARD MUNICIPAL CODE, 4L ti/7g AMENDING SECTIONS 20.182.020, 20.182.070, 20.182.080, 20.182.090, 20.182.100, 20.182.110, 20.182.120, 20.182.130 TO UPDATE THE CALCULATION, COLLECTION AND DISTRIBUTION PROCEDURES FOR SCHOOL IMPACT FEES TO MAKE CONSISTENT WITH THE INTERLOCAL AGREEMENT BETWEEN PORT ORCHARD AND SOUTH KITSAP SCHOOL DISTRICT AND MAKING HOUSEKEEPING AMENDMENTS CONSISTENT WITH EXISTING ADMINSTRATIVE PROCEDURES; AMENDING SECTION 20.182.060 OF THE PORT ORCHARD MUNICIPAL CODE TO PROVIDE FOR ANNUAL CPI-U ADJUSTMENTS TO PARK IMPACT FEES; ADDING A NEW SECTION 20.182.128 TO THE PORT ORCHARD MUNCIPAL CODE TO IDENTIFY THE PARKS RECREATION AND OPEN SPACE PLAN AS THE CAPITAL PLAN FOR PARKS; ADOPTING A NEW PARK IMPACT FEE SCHEDULE; PROVIDING FOR SEVERABILITY AND CORRECTION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the State of Washington Growth Management Act, Chapter 36.70A RCW and related sections ("GMA") requires the City to adopt a Comprehensive Plan that provides adequate public facilities to serve development; and WHEREAS, counties, cities, and towns that are required or choose to plan under RCW 36.70A.040 are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing or system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees; and WHEREAS, RCW 82.02.050 -.110 and WAC 365-196-850 authorize counties, cities, and towns planning under the Growth Management Act (GMA) to impose impact fees for public streets and roads, publicly owned parks, open space, and recreation facilities, and school facilities, and fire protection facilities; and WHEREAS, the City of Port Orchard has adopted transportation, school, and park impact fees, as codified in subsection 20.182.060 of the Port Orchard Municipal Code (POMC) and Appendices A-C in Exhibit 1 of Ordinance 019-17, as amended by Ordinance 007-21; and WHEREAS, the City Council finds that new development activity in the City of Port Orchard will create additional demand and need for public facilities; and Page 1 of 18 1580933.4 - 366922 -0032 Ordinance No. OXX Page 2 of 18 WHEREAS, the City of Port Orchard has previously adopted a park impact fee program pursuant to the authority provided in Chapter 82.02 RCW; and WHEREAS, the City of Port Orchard last updated its park impact fee rates in 2011; and WHEREAS, the City spent more than a year studying its parks and recreation system and updating its Parks, Recreation and Open Space (PROS) Plan while also studying the financial strategies and feasibility of funding its parks system; and WHEREAS, that review included public outreach, Planning Commission study and public hearing, as well as study sessions by the City Council; and WHEREAS, on June 28, 2022, the City Council adopted a new Parks, Recreation and Open Space Plan (PROS Plan) as part of the City's Comprehensive Plan, including updating the capital project lists and capital facilities plan (Ordinance ); and WHEREAS, the City contracted with Beckwith Consulting Group to prepare an updated parks impact fee rate study and recommended impact fee rate, which was provided to the City in April, 2021; and WHEREAS, the City has prepared an updated parks impact fee schedule based on the findings and recommendations of the study prepared by Beckwith Consulting Group; and WHEREAS, on April 19, 2022, the City held a work study session on the updated parks impact fee schedule; and WHEREAS, on June 28, 2022, at its regular meeting the City Council considered the updated parks impact fee schedule and the public testimony, and reviewed the ordinance proposed for its adoption; and WHEREAS, following the public hearing the City Council decided to reduce the impact fees rate; and WHEREAS, following the public hearing, upon the recommendation of staff, the City Council also decided to add additional projects to the PROS Plan which projects were reflected in the impact fee calculation; and WHEREAS, the Council desires to have the impact fee take effect in two steps to ease implementation and impacts on the payors; and WHEREAS, the City Council desires to adopt an updated parks impact fee schedule to ensure that all projects on the current parks capital facilities plan receive appropriate impact fee funding per RCW Section 82.02.050; and 1580933.4 - 366922 -0032 Ordinance No. OXX Page 3 of 18 WHEREAS, on February 9, 2010, the Port Orchard City Council adopted Ordinance No. 001-10 to implement impact fees on behalf of the South Kitsap School District; and WHEREAS, the District and the City have recently negotiated an Interlocal Agreement for how school impact fees will be calculated, collected, and managed; and WHEREAS, the City Council authorized the updated Interlocal Agreement by passage of Resolution No. 017-22 on January 25, 2022 and the Agreement was executed by the City on February 28, 2022; and WHEREAS, in order to make the City's impact fee chapter (Chapter 20.182 POMC) consistent with the Interlocal Agreement, updates are needed; and WHEREAS, additional housekeeping amendments are needed to provide consistency with City practices; and WHEREAS, in accordance with RCW 36.70A.106 and WAC 365-196-630, a notice of intent to adopt the proposed new development regulations was sent to the State of Washington Department of Commerce and to other state agencies to allow for an expedited 15-day review and comment period, which comment period ended prior to adoption of this ordinance; and WHEREAS, the City Council conducted a public hearing on the substance of this Ordinance on May 24, 2022, and recommended its adoption by the City Council; and WHEREAS, this Ordinance is exempt from the requirements of the State Environmental Policy Act (SEPA), Chapter 43.21C RCW, and the City's environmental regulations, Chapter 20.160 POMC; and WHEREAS, the City Council finds that the amendments herein are consistent with goals and policies of the City's Comprehensive Plan and related regulations, and serve the public health, safety, and general welfare of the citizens of Port Orchard; NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. The City Council adopts all of the "Whereas" sections of this ordinance as findings in support of this ordinance. SECTION 2. Section 20.182.020 of the Port Orchard Municipal Code is hereby amended to read as follows: 1580933.4 - 366922 -0032 Ordinance No. OXX Page 4 of 18 20.182.020 Applicability and definitions. (1) Chapter 20.184 POMC includes the definitions for this chapter and Chapter 20.180 POMC on concurrency management. The requirements of this chapter apply to all development in the city, as "development" or "development activity" is defined in Chapter 20.12 POMC. (2) Mitigation of impacts on parks and transportation facilities located in jurisdictions outside the city will be required when: (a) The other affected jurisdiction has reviewed the development's impact under its adopted impact fee/mitigation regulations and has recommended to the city that there be a requirement to mitigate that impact; and (b) There is an interlocal agreement between the city and the affected jurisdiction specifically addressing impact identification and mitigation. (3) The director of community development shall be responsible for administering this chapter and the impact fee program for the city. SECTION 3. Subsection 20.182.060 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.060 Fee schedules and establishment of service area. (1) Impact fee schedules setting forth the amount of the impact fees to be paid by developers shall be adopted by ordinance of the city council and incorporated herein by this reference. The impact fee schedules may be revised at any time the city council deems just and appropriate. (2) For the purpose of road and park impact fees, the entire city shall be considered one service area. (3) For the purpose of school impact fees, the entire boundary of the school district shall be considered one service area. (4) Transportation and narks impact fees adopted by the city shall each automatically increase annually per CPI-U (All Urban Consumers Index) (1982-1984=100), not seasonally adjusted, for the Seattle -Tacoma -Bellevue area for that 12-month period from January 1st to December 31st indexed as the annual average, as is specified by the Bureau of Labor Statistics, United States Department of Labor. Increases based on CPI-U shall take effect on March 1st of the following year. SECTION 4. Section 20.182.070 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.070 Calculation of impact fees. (1) Director Calculates the Fees. The director shall calculate the impact fees set forth in Appendices A,a-R4 B, and C. Such calculation shall include determin,ingthg 1580933.4 - 366922 -0032 Ordinance No. OXX Page 5 of 18 dates at which the impact fees are due and which rates annl,y. C. The city council shall have the final decision on the establishment of the impact fee schedule to be imposed under this chapter as set forth in Appendices A, B, and C. The school district shall propose to the City its requested impact fee schedule to be imposed under this chanter, including specific rates applicable to different project types, however the Council has the authority to establish Appendix C. (2) Factors Used in Impact Fee Calculations. The calculation of impact fees shall include the factors identified in RCW 82.02.040 through 82.02.070 and shall: (a) Determine the standard fee for similar types of development, which shall be reasonably related to each development's proportionate share of the cost of projects described in the project list for each type of impact fee. (b) Reduce the proportionate share by applying the benefit factors described in POMC 20.182.080. (3) Proportionate Share. In calculating proportionate share, the following factors shall be considered: (a) Identification of all park, school and transportation facilities that will be impacted by users from development; (b) Identification of the point at which the capacity of a park, school or transportation facility has been fully utilized; (c) Updating of the data as often as practicable, but at least annually; (d) Estimation of the cost of construction of the projects in the project list (see POMC 20.182.120) for roads at the time they are placed on the list; the cost of maintaining the city's level of park service as shown on Appendix B; and the costs relating to the construction of school facilities, and to then update the cost estimates at least annually, considering the: (i) Availability of other means of funding park, school and transportation facilities; (ii) Cost of existing park, school and transportation facility improvements; (iii) Methods by which park, school and transportation facility improvements were financed; and (iv) An adjustment to the cost of the park, school and transportation facilities for past or future payments or reasonably anticipated to be made by new development to pay for particular 1580933.4 - 366922 -0032 Ordinance No. OXX Page 6 of 18 system improvements in the form of user fees, debt service payments, taxes or other payments earmarked for or proratable to the particular system improvement. SECTION 5. Section 20.182.080 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.080 Credits. (1) Credit Allowed. The director, OF, iA the Ease of r.,r--.hegl impactees, the r4.nerintendent shall reduce the calculated proportionate share for a particular development by giving credit for the benefit factors described in this section. (2) Procedure for Obtaining Credit, Time to Request Credit. Requests for credits against impact fees will not be considered unless the developer makes the request in writing, concurrent with the submission of the application for the underlying development permit triggering the impact fee. Impact_ fee credits mav_anly be ranted by use of a development agreement in accordance with the procedures contained in Chapter 20.26 POMC. ^ (3) Benefit Factors. The director and/er superintendent will consider the following benefit factors when determining whether an impact fee credit is appropriate: (a) Developer's dedication of land and/or construction of system improvements. The value of any dedication of land for, improvement to, or new construction of any system improvements provided by the developer, to facilities required by the city that are identified in the capital facilities plan and that are required by the city as a condition of approving the development activity, as long as the following conditions are satisfied. For school impact fees, toe superintendent -;hall c-ansider the director shall consult with, _the superintendent in considering the value of any dedication of land provided by the developer identified in the school district's capital facilities plan as long as the following conditions are satisfied to the extent applicable: (i) The system improvements are located on land owned by the city (or in the case of school impact fees, by the school district); and (ii) A designated public owner is responsible for permanent, continuing maintenance and operation of the system improvements; and (iii) The director determines that the system improvements correspond to the type(s) of parks an4-transportation, or school system improvements that are reasonably related to the development as determined pursuant to this chapter; 1580933.4 - 366922 -0032 Ordinance No. OXX Page 7 of 18 (iv) The director determines, after consultation with the school district, as applicable, and after an analysis of supply and demand data, the parks, open space and recreation plan, the six -year road plan and the adopted park and transportation plan, that the proposed park and transportation system improvements better meet the city's need for park and transportation system improvements than would payment of funds to mitigate the park and transportation impacts of the development; (v) In the determination of credit toward the impact fee, the director eF the PR shall also consider the extent to which the proposed dedication or conveyance meets the following criteria: (A) The land should result in an integral element of the city park/road system or in the school system; (B) The land is suitable for future park, school and/or transportation facilities; (C) The land is of appropriate size and of an acceptable configuration; (D) The land has public access via a public street or an easement of an equivalent width and accessibility; (E) The land is located in or near areas designated by the city or county on land use plans for park, trail or recreational purposes, or, in the case of schools, is appropriately located for school facilities; (F) The land provides linkage between county and/or other publicly owned recreation and transportation properties; (G) The land has been surveyed or adequately marked with survey monuments, or is otherwise readily distinguishable from adjacent privately owned property; (H) The land has no known physical problems associated with it, such as the presence of hazardous waste, drainage erosion or flooding problems which the director or superintendent determines would cause inordinate demands on public resources for maintenance and operation; (1) The land has no known safety hazards; 1580933.4 - 366922 -0032 Ordinance No. OXX Page 8 of 18 (J) The developer is able to provide documentation, as nearly as practicable, of the land's compliance with the criteria of this subsection, and of clear title; (K) The developer is able to provide and fund a long-term method, acceptable to the director ^F superintendent, for the management and maintenance of the land, if applicable. (4) Requirement for System Improvement Plan by City. When the director has agreed to a developer's proposal to satisfy some or all of the impact fee through the purchase, installation and/or improvement of park and/or transportation and/or school facilities, the developer shall prepare and submit a system improvement plan to the director for approval prior to recordation of a plat or short plat for subdivisions, and prior to issuance of a building permit for all other developments. (5) Statutory Benefit Factors. The director 9F supeFiRten ent may consider any applicable benefit factors, as described in RCW 82.02.060 (as it now exists or may hereafter be amended), that are demonstrated bythe applicant not to be included in the calculation of the impact fee. (6) Amount of Credit. The credit against the impact fee shall be equal to the fair market value of the purchased/dedicated property or equal to the certified cost of the completed system improvements. In those situations in which a developer has not yet installed or constructed system improvements and requests a credit for the system improvement(s), the city engineer shall estimate the cost of the system improvements, which shall be the credit allowed to the developer in the decision on the amount of the impact fee. If a credit is granted for a system improvement that has not been constructed, the developer shall pay the full impact fee without the credit, at the time established in POMC 20.182.110" provided however that if the developer posts a performance bond or provides other security t❑ ensure completion of the system improvement and/or to secure he payment of the impact fees. the City may allow the payment of the impact fees to be deferred until the system improvement is completed and the final maximum impact fee credit has been calculated. If the developer opts to pay the impact fees rather than post _a bond, then after the A4construction and/or installation of the system improvement, the developer may request the credit granted by the city engineer under this subsection, and the city shall refund the difference of the impact fee to reflect the credit; provided, that if the city and the property owner have entered into a development agreement on or before the effective date of the ordinance codified in this section, and the agreement requires the construction of such improvements, the city may allow a credit to be subtracted from the impact fee paid at the time established in POMC 20.182.110. 1580933.4 - 366922 -0032 Ordinance No. OXX Page 9 of 18 (7) PRDs, PUDs and Mobile Home Parks. A developer of a planned residential development, a planned unit development, or a mobile home park may receive credit only for park, school and transportation facilities provided in addition to those normally required under SEPA for such developments, pursuant to the city's SEPA ordinance (Chapter 20.160 POMC). (8) Credit to Apply Proportionately to Units. The amount of credit determined pursuant to this section shall be credited proportionately among all the units in the development, and the impact fee for each unit for which a permit or approval is applied shall be reduced accordingly. (9) Limits on Credit Requests. Applicants may not request that an impact fee credit be provided for a proposed development based on taxes, user fees, assessments, improvements, payments or other benefit factors applicable to property that is not included within the proposed development. Credit to be paid back by the city or the school district to a developer under this section shall not exceed the total amount of the impact fees paid by the developer. (10) Local Improvement Districts. Applicants shall receive credit against the impact fee equal to the amount of an LID assessment paid for transportation -related system improvements identified by the director as increasing transportation system capacity. (11) Appeals of Credits. The director ^• ^^r'RWRGIAM shall issue a written decision on the developer's request for a credit of the impact fee calculation, which shall explain why the credit was granted or denied. The developer may request reconsideration and appeal the impact fee amount and credit pursuant to POMC 20.182.160. If the procedures in POMC 20.182.160 are not timely followed to request an appeal of the credit, the director's aF superintendem4_decision on the impact fee credit shall be final. SECTION 6. Section 20.182.090 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.090 Variation from impact fee schedule. With respect to the transportation or park impact fee, if a developer submits information demonstrating a significant difference between the age, social activity or interest characteristics of the population of a proposed subdivision or development and the data used to calculate the impact fee schedule, the director may allow a special calculation of the impact fee requirements for the subdivision or development to be prepared by the developer's consultant, at the developer's cost; provided, that: the director shall have prior approval of the qualifications and methodology of the developer's consultant in making such calculation, and any 1580933.4 - 366922 -0032 Ordinance No. OXX Page 10 of 18 time period mandated by statute or ordinance for the approving authority's final decision on the development shall not include the time spent in preparing the special calculation. Whether the director accepts the data provided by the special calculation shall be at the discretion of the director. With respect to a school impact fee, if a developer submits evidence demonstrating that a development has obtained approval of an age -restricted development in accordance with applicable federal regulations or that a development has recorded a covenant against the development prohibiting occupancy of the development by a population who are not eligible to attend schools within the school district, the director su peFiRt@R,d^^+ may allow a special calculation of the impact fee requirement for the development after consultation with U the .dige-rA+i.,m of the superintendent of the school district. SECTION 7. Section 20.182.100 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.100 Payment of fees. (1) All applicants for development, including changes in use, shall pay an impact fee in accordance with the provisions of this chapter which shall be calculated by the city ^r rrh ,.,1 rlir+rir+ at the time that the building or other applicable permit is ready for issuance. Applicants/developers may choose to pay impact fees or a portion thereof prior to the city's issuance of a building permit, gthe��licable permit, or change in use, but if the early payment is less than the fee calculated at the time the building or other applicable permit is ready for issuance or the chanee in use takes effect, the applicant/developer shall pay the difference. If the early payment is more than the fee calculated at the time the building permit or other applicable permit is ready for issuance or the change of use takes effect, the city or school district shall refund the difference. (2) The impact fee shall be recalculated if the development is modified or conditioned in such a way as to alter park, school or transportation impacts for the development. (3) A developer may obtain a preliminary determination of the impact fee before submitting an application for the development permit or use change by providing the director er suR&ri,9tenden with the information needed for processing together with the applicable fee. Such determinations are provided to the developer as estimates only, and they are not binding on the city, given the limited information needed to calculate the preliminary impact fee amount and the fact that the city or school district annually updates the project list and impact fee schedule. In addition, impact fees are not subject to the vested rights doctrine, and the fee actually paid by the developer will be the impact fee in effect at the 1580933.4 - 366922 -0032 Ordinance No. OXX Page 11 of 18 time of building or other applicable permit issuance or change of use, regardless of any preliminary determinations unless otherwise agreed by development agreement or impact fee credit agreement. SECTION 8. Section 20.182.110 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.110 Time of payment of impact fees. (1) Payment of any required impact fees shall be made as a condition of the issuance of a building permit or a stormwater permit, except as provided in subsection (4) of this section. Selaool impar-A fees shall be paid to the scheol sc4eel distr et to the city for issuance of the b lildiRg erm1z (2) Impact fees may be paid under protest in order to obtain the necessary permits/approvals until an appeal of the fee amount is finally resolved. (3) When a subdivision or development is conditioned upon the dedication of land, or the purchase, installation or improvement of park, school, and/or transportation facilities, a final plat or short plat shall not be recorded, and a building permit within such plat or development shall not be issued until: (a) The director has determined in writing that the land to be dedicated is shown on the face of the final plat or short plat, or a deed conveying the land to the city, the school district or special purpose district, as appropriate, has been recorded with the county auditor; and (b) The director has determined in writing, after consultation with the designated public owner responsible for permanent, continuing maintenance and operation of the facilities that the developer has satisfactorily undertaken or guaranteed to undertake in a manner acceptable to the director or superintendent, any required purchase, installation or improvement of school, park or transportation facilities. (4) Deferral of Payment of Impact Fees. Payment of impact fees for single-family attached or single-family detached residential dwelling units may be deferred only until issuance of certificate of occupancy or equivalent certification, pursuant to RCW 82.02.050(3), subject to the following provisions: (a) Each applicant, in accordance with his or her contractor registration number or other unique identification number, is entitled to annually receive deferrals under this section for the first 20 single-family residential construction building permits per city. Any single-family residential building construction permits beyond 20 for the same applicant are subject to payment of impact fees 1580933.4 - 366922 -0032 Ordinance No. OXX Page 12 of 18 at the time of building permit issuance as required by subsection (1) of this section. (b) A request for deferral must be submitted prior to issuance of a building permit. (c) Application for deferral must be made on a form provided by and acceptable to the city and must include the following information and fees: (i) Name, address, telephone number and email address of the applicant. (ii) The specific address, legal description and tax identification number of the single-family dwelling for which deferral is being requested. (iii) The building permit application number associated with the requested deferral. (iv) The registration number or other unique identification number for the contractor that will be building the structure. (v) A statement by the contractor describing how many deferrals have been granted during the current year for said contractor, describing how many have been requested during the current year, and attesting that the number provided and/or requested is less than 20 for the current calendar year. (vi) Applicable fees for processing the application and for future monitoring of the deferred payment of impact fees are required in addition to fees required by this chapter. Deferral application fees shall include: (A) Minimum of four hours base administration fee, at the hourly staff rate required by the development fee schedule adopted in the city's fee resolution, and payable at the time of application submittal. (B) Minimum of four hours administration fee at the current hourly staff rate to cover additional time spent processing of final payment of impact fees, including but not limited to preparation of lien release documents, payable before the lien release document shall be released to the applicant. (d) No more than one single-family dwelling may be included on a single application for impact fee deferral. 1580933.4 - 366922 -0032 Ordinance No. OXX Page 13 of 18 (e) Impact fees shall be calculated on the fees in place at the time that the applicant applies for a deferral. (f) Impact fees deferred under this section are due no later than the following events, whichever occur first: (i) Issuance of certificate of occupancy or equivalent certification for the single-family dwelling; or (ii) Eighteen months from the date of the building permit issuance. (g) 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 of Port Orchard. The deferred impact fee lien must include the legal description, tax account number, and address of the property, and must also be: (i) In a form approved by the city attorney which ensures that it is binding on all successors on the title to the property after recordation; (ii) Signed by all owners of the property, with all signatures acknowledged as required for a deed, and recorded with the Kitsap County auditor's office; and (iii) 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. (h) The city may withhold a certificate of occupancy or equivalent certification until the impact fees are paid in full. Upon receipt of final payment of all deferred impact fees for a property, and upon payment of all applicable administration fees in the city's fee resolution, 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. (i) Foreclosure Proceedings. If impact fees are not paid in accordance with a deferral authorized by this section, the city may institute proceedings to enforce the lien in accordance with Chapter 61.12 RCW. (j) Obligation to Pay. 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 issuance of certificate of occupancy or equivalent certification. (k) Deferral Process Not Subject to Review Proceedings. Per RCW 36.70B.140(2), the processing of an impact fee deferral application is not subject to the project permit review requirements of Chapter 36.706 RCW. 1580933.4 - 366922 -0032 Ordinance No. OXX Page 14 of 18 SECTION 9. Section 20.18.120 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.120 Project list. (1) The director shall annually review the city's parks, open space and recreation plan, the six -year road plan and the projects listed in Appendices A and B and shall: (a) Identify each project in the comprehensive plan that is growth -related and the proportion of each such project that is growth -related; (b) Forecast the total money available from taxes and other public sources for park and transportation improvements for the next six years; (c) Update the population, building activity and demand and supply data for park and transportation facilities and the impact fee schedule for the next six -year period; (d) Calculate the amount of impact fees already paid; (e) Identify those comprehensive plan projects that have been or are being built but whose performance capacity has not been fully utilized. (2) The director shall use this information to prepare an annual draft amendment to the fee schedule in Appendices A and B, which shall comprise: (a) The projects in the comprehensive plan that are growth -related and that should be funded with forecast public monies and the impact fees already paid; and (b) The projects already built or funded pursuant to this chapter whose performance capacity has not been fully utilized. (3) The city council, at the same time that it adopts the annual budget and appropriates funds for capital improvement projects, shall, by separate ordinance, establish the annual project list by adopting, with or without modification, the director's draft amendment. (4) Once a project is integrated into the fee schedule in Appendices A and B, a fee shall be imposed on every development until the project is removed from the project list by one of the following means: (a) The city council by ordinance removes the project from the project list and Appendix A and/or B, in which case the fees already collected will be refunded if necessary to ensure that impact fees remain reasonably related to the park and transportation impacts of development that have paid an impact fee; provided, that a refund shall not be necessary if the council transfers the fees to the budget 1580933.4 - 366922 -0032 Ordinance No. OXX Page 15 of 18 of another project that the council determines will mitigate essentially the same park and transportation impacts; or (b) The capacity created by the project has been fully utilized, in which case the director shall remove the project from the project list. (5) The school district shall annually review and update its capital facilities portion of the city's comprehensive plan and submit such updated plan to the city by July 1st of each year. The school district's updated capital facilities plan shall identify projects that are growth -related, include the amount of school impact fees paid, calculate the impact fees as required by RCW 82.02.050 through 82.02.090, and may include a proposed school impact fee schedule adjustment to Appendix C, for consideration by and adoption by the city council in its sole discretion. SECTION 10. A new Section 20.182.128 is hereby added to the Port Orchard Municipal Code to read as follows: 20.182.128 Designation of capital facilities plan for parks. The city designates the Parks Recreation and Open Space Plan (PROS Plan) as the city's comprehensive capital facilities plan for the purpose of identifying the proposed parks improvement projects reasonable and necessary to meet the future development needs of the service area consistent with the city's level of service policy, as required by RCW 82.02.050. The PROS Plan identifies the specific subset of parks improvements in the impact fee project list that forms the basis for the parks impact fee program. SECTION 11. Section 20.182.130 of the Port Orchard Municipal Code is hereby amended to read as follows: 20.182.130 Funding of projects. (1) An impact fee fund is hereby created for parks and transportation fees. Separate accounts shall be established for each fee type. The school district shall be responsible for the creation of its own impact fee fund and shall be solely responsible for the deposit of fees in such fund following transfer from the cit , and the calculation/use/refund of such fees. The school district shall manage its impact fee funds in accordance with State law and the Interlocal AP reement between the school district and the city. The director shall be the manager of the city's fund. The city shall place park and transportation impact fees in appropriate deposit accounts within the impact fee fund. (2) The parks and transportation impact fees paid to the city shall be held and disbursed as follows: (a) The fees collected for each project shall be placed in a deposit account 1580933.4 - 366922 -0032 Ordinance No. OXX Page 16 of 18 within the impact fee fund, with the exception of school impact fees, which shall be collected by the &G-h-A-01 dtstFiCcity and then transferred to the school district for deposit into the school district impact fee fund; (b) When the council appropriates capital improvement project (CIP) funds for a park or transportation project on the project list, the park or transportation fees held in the impact fee fund shall be transferred to the CIP fund. The nonimpact fee monies appropriated for the project shall comprise both the public share of the project cost and an advancement of that portion of the private share that has not yet been collected in park or transportation impact fees; (c) The first money spent by the director on a project after a council appropriation shall be deemed to be the fees from the impact fee fund; (d) Fees collected after a project has been fully funded by means of one or more council appropriations shall constitute reimbursement to the city of the funds advanced for the private share of the project. The public monies made available by such reimbursement shall be used to pay the public share of other projects; (e) All interest earned on impact fees paid shall be retained in the account and expended for the purpose or purposes for which the impact fees were imposed. (3) Projects shall be funded by a balance between impact fees and public funds, and shall not be funded solely by impact fees. (4) Impact fees shall be expended or encumbered for a permissible use for 10 years after receipt, unless there exists an extraordinary or compelling reason for fees to be held longer than 10 years. The director may recommend to the council that the city hold park or transportation fees beyond 10 years in cases where extraordinary or compelling reasons exist. Such reasons shall be identified in written findings by the council. The superintendent of the school district shall prepare written findings evidencing such extraordinary or compelling reason for fees to be held longer than 10 years which findings shall be approved by the board of directors of the school district. (5) The school district and the director shall prepare an annual report on the impact fee accounts showing the source and amount of all monies collected, earned or received and system improvements that were financed in whole or in part by impact fees. The school district shall be responsible for compliance with RCW 82.02.070. SECTION 12. Adoption of Parks Impact Fee Schedule. In accordance with POMC 20.182.060, the City Council hereby adopts a new parks impact fee schedule which is attached to 1580933.4 - 366922 -0032 Ordinance No. OXX Page 17 of 18 this Ordinance as Exhibit A and incorporated herein by this reference as if set forth in full. This parks impact fee schedule shall become effective on the effective date established in Section 16 below and shall replace and supersede any previously adopted parks impact fee schedule. No other Impact Fee Schedules (transportation or school district) are modified by this Ordinance. SECTION 13. Special effect. Section 12 of this Ordinance is deemed of special effect and shall not be codified. SECTION 14. Effective Date of New Park Impact Fee Schedule. The Park Impact Fee Schedule which is adopted pursuant to Section 12 of this Ordinance shall take effect and be in full force and effect on 12:01 AM on August 1, 2022 with the second increase taking effect on 5:00 PM on February 28, 2023 as set forth in Exhibit A. SECTION 15. Severability. If any section, sentence, clause, or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of constitutionality of any other section, sentence, clause or phrase of this ordinance. SECTION 16. Corrections. Upon the approval of the city attorney, the city clerk and/or code publisher is authorized to make any necessary technical corrections to this Ordinance, including but not limited to the correction of scrivener's/clerical errors, references, Ordinance numbering, section/subsection numbers, and any reference thereto. SECTION 17. Effective Date. This ordinance shall be posted and published as required by law and shall be effective and in full force five (5) days following publication. A summary of this ordinance may be published in lieu of publishing the ordinance in its entirety. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this _ day of , 2022. Robert Putaansuu, Mayor ATTEST: Brandy Wallace, CIVIC, City Clerk 1580933.4 - 366922 -0032 APPROVED AS TO FORM: Sponsored by: Charlotte A. Archer, City Attorney PUBLISHED: EFFECTIVE DATE: Ordinance No. OXX Page 18 of 18 , Councilmember 1580933.4 - 366922 -0032 1%c, . Exhibit A to Ordinance No. XXX-22 nil 4'-W Park Impact Fee Effective August 1, 2022 at 12:01am through February 28, 2023 at ���� 20 A ril 2022 Impact ELOS/ Persons/ Percent fee/ Housing product person unit charged unit Single-family $3,349 2.84 35% $3,329 Accessory Dwelling Unit $3,349 1.00 3S% $2,344 Duplex $3,349 2.05 35% $2,403 Tri and Quadplex $3,349 2.01 3S% $2,356 Multiplex - 5 or more units $3,349 2.00 35% $2,344 Manufactured homes $3,349 2.37 35% $2,778 Sources: ELOS Value - Port Orchard Park, Recreation, & Open Space (PROS) Plan, 2021 Persons/type housing unit - OFM 2021, ADU Based on City Estimate Park Impact Fee Effective February 28th, 2023, at 5:00 pm: 20 April 2022 Impact ELOS/ Persons/ Percent fee/ Housing product person unit charged unit Single-family $3,349 2.84 57% $5,421 Accessory Dwelling Unit $3,349 1.00 57% $2,344 Duplex $3,349 2.05 57% $3,913 Tri and Quadplex $3,349 2.01 57% $3,837 Multiplex - 5 or more units $3,349 2.00 57% $3,818 Manufactured homes $3,349 2.37 57% $4,524 Sources: ELOS Value - Port Orchard Park, Recreation, & Open Space (PROS) Plan, 2021 Persons/type housing unit - OFM 2021, ADU Based on City Estimate