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001-25 - Ordinance - Impact FeesDocusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 ORDINANCE NO. 001-25 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO IMPACT FEES, ADOPTING NEW SECTION 20.182.075 OF THE PORT ORCHARD MUNICIPAL CODE (POMQ AMENDING POMC 20.184.010 TO ADD DEFINITION FOR BEDROOM; ADOPTING A NEW PARK IMPACT FEE SCHEDULE AND REPEALING THE PRIOR PARK IMPACT FEE SCHEDULE ADOPTED AS EXHIBIT A TO ORDINANCE NO. 013-22; 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 013-22; and WHEREAS, the Washington Legislature passed numerous bills related to housing affordability in 2023 including, but not limited to, SB 5258 and HB 1337; and WHEREAS, SB 5258 includes a requirement codified in RCW 82.02.060 that impact fee schedules reflect the proportionate impact of new housing units, including multifamily and condominium units, based on the square footage, number of bedrooms, or trips generated, in or by the housing unit in order to produce a proportionally lower impact fee for smaller housing units; and WHEREAS, Port Orchard's current park impact fee schedule assesses park impact fees based on housing types (derived from averages of persons per household by housing type), a method that will cease to be permissible under state law after June 30, 2025; and WHEREAS, the City's Director of Community Development undertook a study of the Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 2 of 8 City's existing park impact fee rate structure and the 2022 study which was the basis of the park impact fee rate schedule to provide recommendations on revisions to the fee schedule required to comply with RCW 82.02.060 and presented it to the City Council on February 18, 2025; and WHEREAS, this study compared alternatives for a park impact fee rate schedule comparing a per square foot rate structure to a per bedroom rate structure; and WHEREAS, HB 1337 includes a requirement as codified in RCW 36.70A.681 that cities may not assess impact fees on the construction of accessory dwelling units that are greater than 50 percent of the impact fees that would be imposed on the principal unit; and WHEREAS, the City has prepared additional code language under POMC 20.182.075 that ensures that the City is compliant with RCW 36.70A.681 by allowing a reduction in impact fee assessments if the City's fee schedule were to result in an impact fee amount where the accessory dwelling unit would be required to pay fee that is more than 50% of the fee assessed (or that would have been assessed) to the principal unit; and WHEREAS, on February 18, 2025, the City Council reviewed the alternatives found in the Park Impact Fee Rate Study recommended to achieve compliance with RCW 82.02.060 and the proposed code language prepared by staff to achieve compliance with RCW 36.70A.681; and WHEREAS, Council requested that staff prepare an ordinance for consideration to include a new park impact fee rate study that utilized the "per bedroom" approach and would set a park impact fee rate at $1,616.73 per bedroom, and adopt the proposed code language to ensure that ADUs would not pay impact fees that are greater than 50 percent of the impact fees that would be imposed on the principal unit, and that a public hearing be scheduled for March 11, 2025 to take testimony on the proposed rate structure; and WHEREAS, the City Council finds that the "per bedroom" approach most accurately reflects the likely impact of development on the City's park system because it is most closely associated with the number of residents likely to be living in a housing unit; and WHEREAS, the proposed fee of $1,616.73 per bedroom is derived from a 4-year average for the number of bedrooms found in a new homes in Port Orchard and reflects trends that are expected to continue based on development in the pipeline; and WHEREAS, the per bedroom approach is easier to administer and verify compared to the alternative square footage approach considered; and WHEREAS, The City Council intends to review a future proposal from the South Kitsap School District to revise the school impact fee in compliance with these new statutes at a Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 3 of 8 future date prior to the deadline for compliance; and WHEREAS, the City Council finds that the City's transportation impact fee rate schedule is compliant with RCW 82.02.060 because transportation impact fees are based on trips generated, one of the three approved methods under law; and WHEREAS, a properly noticed public hearing on this Ordinance was conducted on March 11, 2025; and WHEREAS, on March 11, 2025, at its regular meeting and after conducting a public hearing, the City Council considered the updated parks impact fee schedule and revised code language, and public testimony; and WHEREAS, in 2022, by Ordinance No. 013-22, the City Council adopted a new fee schedule for Park Impact Fees as Exhibit A thereto, and desires to update that schedule consistent with this legislation; 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, 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 the "Whereas" sections of this ordinance as findings in support of this ordinance. SECTION 2. Port Orchard Municipal Code Section 20.184.010 is amended in part to add a new definition as follows (amendment shown in legislative marks): POMC 20.184.010 Definitions. Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 4 of 8 "Approving authority" means the city employee, agency or official having the authority to issue the approval or permit for the development activity involved. "Bedroom" means any room or space used or intended to be used for sleeping purposes in either a dwelling unit or a sleeping unit. A bedroom has a minimum size of 70 square feet with a minimum dimension of seven feet in any plan dimension. Rooms intended as studies, nooks, dens, home offices, walk-in closets, and similar functions shall not be counted as bedrooms for the purpose of calculating impact fees. Housing units with zero bedrooms —also known as studio units — shall be treated as a 1-bedroom unit for the purpose of this chapter. "Capacity" means the ability of a public facility to accommodate users, expressed in an appropriate unit of measure, such as average daily trip ends, or "peak p.m. trips," or school facility within the LOS standards for the facility, or fire flow, or sewer treatment plant capacity. SECTION 3. A new Section 20.182.075 of the Port Orchard Municipal Code is hereby adopted to read as follows: 20.182.075 Accessory Dwelling Unit Impact Fee Calculations (1) Accessory dwelling units shall be charged impact fees in accordance with the schedules adopted in POMC 20.182.070 (1), except that pursuant to RCW 36.70A.681 (1) (a), the City may not assess impact fees on the construction of accessory dwelling units that are greater than 50 percent of the impact fees that would be imposed on the principal unit. If the impact fee resulting from the use of the rates established in POMC 20.182.070 (1) result in an impact fee on an accessory dwelling unit that is in excess of 50% of the fee that would be imposed on the principal unit, then the City shall reduce the amount of impact fee owed on the accessory dwelling unit to 50% of the amount that would be owed on the principal dwelling were it to be constructed at the current rate. (2) Applicants seeking approval for the construction or creation of (an) accessory dwelling unit(s) shall provide the following information with their application for the construction or creation of (an) accessory dwelling unit(s): (a) The estimated trip generation pursuant to the currently adopted version of the ITE manual for both the accessory dwelling unit and the principal dwelling unit on the site. (b) The number of bedrooms in the proposed accessory dwelling unit and the principal dwelling unit on the site. If the principal unit is existing, this shall be the number of bedrooms as reported by the Kitsap County Assessor's office for the existing structure. If the principal unit (either new or modified) is being proposed concurrent with the accessory dwelling unit(s), then the proposed number of bedrooms for the Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 5 of 8 principal unit shall be provided consistent with the submitted plans for the principal dwelling. (c) The total finished square footage in the proposed accessory dwelling unit and the principal dwelling unit on the site. If the principal unit is existing, this shall be the finished square footage as reported by the Kitsap County Assessor's office for the existing structure. If the principal unit (either new or modified) is being proposed concurrent with the accessory dwelling unit(s), then the proposed square footage for the principal unit shall be provided consistent with the submitted plans for the principal dwelling. (3) An applicant for the construction or creation of an accessory dwelling unit may request a variation from the impact fee schedule in accordance with POMC 20.182.090. (4) Unless a variation to the impact fee schedule is granted in accordance with POMC 20.182.090, the City shall determine the amount of impact fees owed for the creation or construction of accessory dwelling units based on the information supplied by the applicant pursuant to section (2). This information shall be verified by the city by reviewing the currently adopted ITE trip generation estimates for the proposed uses, the number of bedrooms and/or square footage either reported by the Kitsap County Assessor or as shown on plans for the accessory dwelling unit and principal structure. Where inconsistencies are found between the applicant -supplied information and the ITE manual or Kitsap County Assessor records, the application shall be returned to the applicant for correction. Required corrective action may include, but is not limited to, the following: (a) Correcting the supplied information to match County Assessor Records or submitted construction plans; and/or (b) Requesting amendment to property records or appealing assessments to the Kitsap County Assessor office; and/or (c) Submitting an impact fee variation request in accordance with POMC 20.182.090. (5) The conversion of an ADU to a principal unit or the enlargement of a principal unit shall be considered new development subject to impact fee charges which may apply. SECTION 4. Repealer. The City Council herein repeals Exhibit A to Ordinance No. 013-22, the City's previously adopted Park Impact Fee Schedule, and all previous iterations of the Park Impact Fee Schedule adopted prior to the enactment of Ordinance No. 13-22. SECTION 5. 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 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 11 below and shall replace and supersede any previously adopted parks impact fee schedule. No Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 6 of 8 other Impact Fee Schedules (transportation or school district) are modified by this Ordinance. SECTION 6. Section 5 of this Ordinance is deemed of special effect and shall not be codified. SECTION 7. Effective Date of New Park Impact Fee Schedule. The Park Impact Fee Schedule which is adopted pursuant to Section 4 of this Ordinance shall take effect and be in full force and effect on 12:01 AM on July 1, 2025. SECTION 8. Savings Clause. The Parks Impact Fee Schedule which is repealed and replaced by this ordinance shall remain in force and effect as set out prior to this ordinance until the effective date set out in Section 7 hereof. Such repealer shall not be construed as affecting any existing right acquired under the laws repealed, nor as affecting any proceeding instituted thereunder, nor any rule, regulation or order promulgated thereunder. SECTION 9. 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 10. 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 11. 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 11t" day of March 2025. Signed by: Robert Putaansuu, Mayor ATTEST: Eeb Signed by:vAAJA,o Uilal�a�t, A RA SG SA RRfIfI(ld'IR Brandy Wallace, MMC, City Clerk Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 7 of 8 APPROVED AS TO FORM: /Signed by: Charlotte A. Archer, City Attorney PUBLISHED: March 14, 2025 EFFECTIVE DATE: March 19, 2025 Docusign Envelope ID: DEC9D97E-9702-41BE-BD22-9ABF2A3707B7 Ordinance No. 001-25 Page 8 of 8 Exhibit A City of Port Orchard Park Impact Fee Rate Park Impact Fee Per Bedroom: $1,616.73* *Pursuant to POMC 20.182. 060 (4), the Park Impact Fee Rate shall be subject to a CPI-U increase on March I annually. This rate is valid through February 28, 2026. A new rate will be published by the Department of Community Development once CPI-U information becomes available in early 2026 and annually thereafter.