HomeMy WebLinkAbout002-25 - Ordinance - School Impact FeesDocusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
ORDINANCE NO. 002-25
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
RELATING TO IMPACT FEES, AMENDING SECTION 20.182.070 OF THE
PORT ORCHARD MUNICIPAL CODE (POMC) TO REQUIRE APPLICANTS TO
PROVIDE CERTAIN INFORMATION FOR IMPACT FEE CALCULATION
PURPOSES; AMENDING POMC 20.184.010 TO ADD DEFINITION FOR
SQUARE FOOTAGE; ADOPTING A NEW SCHOOL IMPACT FEE SCHEDULE
AND REPEALING THE PRIOR SCHOOL IMPACT FEE SCHEDULE REAFFIRMED
AS EXHIBIT "C" TO ORDINANCE NO. 007-21; 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 of 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 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 Ordinances 007-21, 013-
22, and 001-25; and
WHEREAS, the Washington Legislature passed numerous bills related to housing
affordability in 2023 including, but not limited to, SB 5258; 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 school impact fee schedule assesses school impact
fees based on housing types (single family or multi family), a method that will cease to be
Docusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
Ordinance No. 002-25
Page 2 of 7
permissible under state law after June 30, 2025; and
WHEREAS, the South Kitsap School District hired FCS Group to study of the existing
school impact fee rate structure as adopted by Port Orchard on behalf of the district pursuant
to interlocal agreement (C035-22) which was presented to the City Council on January 25,
2022; and
WHEREAS, this study provided a recommendation for scaling the existing fee
structure to a new square footage based rate; and
WHEREAS, on March 18, 2025, the City Council reviewed the FCS Group Study
outlining a new rate structure that is recommended to achieve compliance with RCW
82.02.060; and
WHEREAS, Council requested that staff prepare an ordinance for consideration to
include a new school impact fee rate as recommended in the FCS Group Study setting the
school impact fee rate at $0.56 per sq ft with a minimum and maximum fee per unit of
housing, and that a public hearing be scheduled for April 8, 2025 to take testimony on the
proposed rate structure; and
WHEREAS, the park impact fee rate structure was recently amended by Ordinance
001-25 to ensure compliance with the recent changes to state law; 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, City staff has recommended additional amendments to POMC 20.182.070
to provide clarification related to the utilization of trip generation, square footage, and per
bedroom methods of calculating impact fees; and
WHEREAS, City staff has also recommended that a definition for square footage be
added to POMC 20.184.010 in line with draft guidance from the Department of Commerce;
and
WHEREAS, a properly noticed public hearing on this Ordinance was conducted on
April 8, 2025 and no public testimony was received; and
WHEREAS, on April 8, 2025, at its regular meeting and after conducting a public
hearing, the City Council considered the updated school impactfee schedule and revised code
language, and public testimony; and
WHEREAS, in 2021, by Ordinance No. 007-21, the City Council reaffirmed the previous
Docusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
Ordinance No. 002-25
Page 3 of 7
school impact fee rate schedule as shown on Exhibit C and desires to update that schedule
consistent with the new 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.
"Service area" means the geographic area defined by the city, school district, or
interlocal agreement, in which a defined set of public facilities provides service to development
in the area. Service areas shall be designated on the basis of sound engineering or planning
principles or by law. (RCW 82.02.090(8).)
"Square Footage" or "Sq Ft" means the total area of a residential unit as measured using
the interior dimension of the exterior building walls. This measurement does not include areas
beneath roof eaves, porches, or covered unenclosed outdoor rooms, and, for multi -unit
buildings, does not include common areas, service areas, mechanical rooms, hallways,
stairwells, elevator shafts, storage areas, and other interior spaces shared between the units.
"Subdivision" means all subdivisions as defined in Chapter 20.12 POMC, and all short
subdivisions as defined in that chapter.
Docusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
Ordinance No. 002-25
Page 4 of 7
SECTION 3. Section 20.182.070 of the Port Orchard Municipal Code is amended to read
as follows (amendment shown in legislative marks):
20.182.070 Calculation of impact fees.
(1) Director Calculates the Fees. The director shall calculate the impact fees set forth in
Appendices A, B, and C. Such calculation shall include determining the dates at which the
impact fees are due and which rates apply. 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 chapter, 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 system improvements in the form of user fees,
Docusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
Ordinance No. 002-25
Page 5of7
debt service payments, taxes or other payments earmarked for or proratable to
the particular system improvement.
4) Information supplied by applicants. Applicants for development shall provide the necessary
information to facilitate the application and calculation of impact fees including the square
footage of buildings to be constructed, the number of bedrooms in proposed housing units.
and/or the trip generation (Peak PM trips) for the proposed use (to be coordinated with
concurrence review pursuant to POMC 20.180L This information must also accompany any
request for variation from the impact fee schedule pursuant to POMC 20.182.090 or any
request for impact fee credits pursuant to POMC 20.182.080.
SECTION 4. Repealer. The City Council herein repeals Exhibit C to Ordinance No. 007-21,
the City's previously adopted School Impact Fee Schedule, and all previous iterations of the
School Impact Fee Schedule adopted prior to the enactment of Ordinance No. 007-21.
SECTION 5. Adoption of School Impact Fee Schedule. In accordance with POMC
20.182.060, the City Council hereby adopts a new School Impact Fee Schedule which is attached
to this Ordinance as Exhibit "C" and incorporated herein by this reference as if set forth in full.
This School impact fee schedule shall become effective on the effective date established in
Section 11 below and shall replace and supersede any previously adopted School impact fee
schedule. No other Impact Fee Schedules (transportation or parks) 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 School Impact Fee Schedule. The School Impact Fee
Schedule which is adopted pursuant to Section 5 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 School 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
Docusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
Ordinance No. 002-25
Page 6 of 7
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 8t" day of April 2025.
ATTEST:
Signed by:
BranCy Wa��ate, MMC, City Clerk
APPROVED AS TO FORM:
L
by:
tF
a°rlOf aT.57Archer, City Attorney
PUBLISHED: April 11, 2025
EFFECTIVE DATE: April 16, 2025
Signed by:
b p4aausw
offgTJzV finsuu, Mayor
Q QRT ORi+rrrrir,',��
C ,r.,,
oc 0% a+� �r�`• 'f,,:
- SEA o
LO
�•
�f''� OF WAV' �`�,
Docusign Envelope ID: 96123DBO-1734-4454-ACA9-5EO80DC7465C
Exhibit C
City of Port Orchard
School Impact Fee Rates
Scaled Impact Fee per Sq Ft $
Minimum Impact Fee
Maximum Impact Fee
Ordinance No. 002-25
Page 7 of 7
XW O,
54.62
2,009.27
*Pursuant to POW 20.182.075, an Accessory Dwelling Unit may be assessed a fee lower than
the minimum school impact fee under certain circumstance.