HomeMy WebLinkAbout3357 Revising Port Townsend Municipal Code Chapter 3.36, System Development Charges for Water, Sewer, and Stormwater ConnectionsOrdinance 3357
Page 1
Ordinance 3357
AN ORDINANCE OF THE CITY OF PORT TOWNSEND, REVISING PORT
TOWNSEND MUNICIPAL CODE CHAPTER 3.36, SYSTEM DEVELOPMENT
CHARGES FOR WATER, SEWER, AND STORMWATER CONNECTIONS
WHEREAS, Chapter 13.36 of the Port Townsend Municipal Code governs permit, application,
and utility connection fees and allows the City to defer system development charges for
qualifying low-income housing projects, enabling developers to delay payment until later in the
construction process, which reduces upfront costs and support affordable housing feasibility.
WHEREAS, RCW 35.92.385 allows municipalities to waive utility connection charges for low-
income housing projects if the property is legally restricted for such use, with cities permitted to
offset the lost revenue using other funds.
WHEREAS, Senate Bill 5258 requires local system development charges to be calculated based
on a housing unit's proportionate impact, leading to lower fees for smaller homes and
contributing to the overall cost reduction for affordable housing.
WHEREAS, RCW 36.70A.540 encourages cities, towns, and counties in Washington to adopt or
expand affordable housing incentive programs, such as density bonuses, fee waivers, parking
reductions, or expedited permitting, to promotes development of low-income housing units.
WHEREAS, the Connection Housing to Infrastructure Program (CHIP) in Washington helps
affordable housing projects by funding utility connections (water, sewer, and stormwater),
paying for onsite of offsite infrastructure improvements, and reimbursing waived system
development charges.
WHEREAS, the 2025 Housing Needs Assessment found that roughly forty five percent of
households in Port Townsend are considered low income, earning eighty percent of the area
median income. In addition, thirty three percent of households are cost burdened, paying more
than a third of household income, and eighteen percent are severely cost burdened, paying more
than fifty percent of household income.
WHEREAS, the 2025 Housing Element of the Comprehensive Plan found that housing
production barriers increase costs by creating a market where demand outpaces supply and that
high construction costs often make affordable housing projects financially unfeasible for
developers.
WHEREAS, the 2025 Housing Element of the Comprehensive Plan found that there is a strong
demand for a diverse supply of housing types, including middle housing options, and that limited
housing diversity harms affordable housing by creating market imbalances that drive up prices
for residents, and removes housing options specifically designed for people of varying income
levels and life circumstances.
Ordinance 3357
Page 2
WHEREAS, waiving system development charges reduces upfront infrastructure costs,
lowering total development expenses and allowing limited subsidy or equity dollars to stretch
further. By cutting these significant fees, projects face smaller financing gaps, making affordable
housing more financially feasible to build and sustain.
NOW, THEREFORE, the City Council of the City of Port Townsend do ordain as follows:
Section 1. Chapter 13.03 of the Port Townsend Municipal Code is amended as set forth in
Exhibit A. Language to be stricken is indicated by strikeout, and language to be added is
indicated by underlining.
Section 2. Severability. If any 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 or constitutionality of any other section, sentence,
clause, or phrase or work of this ordinance.
Section3. Effective Date. This ordinance shall take effect and be in force five days after the
date of its publication in the manner provided by law. Publication of this ordinance shall be by
summary thereof consisting of this title.
Adopted by the City Council of the City of Port Townsend at a regular meeting thereof, held this
3rd day of November 2025._mm.p
aV;
Mayor
Attest.
.µ..... .................. -_.. .......
Al y ° is gigues
City (,1crk
Ordinance 3357
Page 3
Exhibit A
Sections:
3.36.010
Fees — General.
3.36.011
System development charge, building fees, and utility connection charges
— Deferrals for low-income housing.
3.36.015
Repealed.
3.36.018
Repealed.
3.36.020
Public works and utility billing service fee schedule.
3.36.030
Fees — Sewer connections.
3.36.040
Utility and garbage deposits.
3.36.050
Repealed.
3.36.060
Fees — Police department fee for fingerprinting.
3.36.070
Fees — Street vendor application and license.
3.36.010 Fees — General.
Application fees for the various applications, permits and utility connections set forth below shall
be as provided in this chapter. Unless the city has approved a fee deferral or waiver pursuant to
this chapter or PTMC '"')'09.,0 r'4 �, no application shall be considered, nor shall any permit or
utility connection be allowed, unless and until the fee has been paid to the finance director,
which fee shall not be refundable unless the application is withdrawn in writing prior to the date
of the first hearing scheduled on the application. Any such refund must be approved by the
director of the planning and community development department or the director of public works
and the finance director and all costs incurred by the city deducted from fees paid. (Ord. 3287
§ 5, 2022; Ord. 3235 § 2 (Exh. B), 2019; Ord. 2892 § 1, 2005; Ord. 2507 § 1, 1996; Ord. 2492
§ 1, 1995; Ord. 2173 § 1, 1989; Ord. 2050 § 1, 1986).
3.36.011 System development charge, building fees, and utility connection charges —
Deferrals for low-income housing.
A. Program Established. The city shall allow deferral of payment of system development charges
(SDCs), building fees, and utility connection charges for a private or public nonprofit
organization, Coniiiiunit L nd "frgsts, and I vate developers that developing -or constructing
housing units for low-income households, as defined in and � onsistent with thLi ic e rpgtjj,nts of
this section. The city manager or designee is authorized and directed to administer the program
and may promulgate forms and administrative regulations from time to time to carry out the
intent and purpose of this chapter.
B. Definitions. The following definitions shall apply to the administration of this section:
1. "Low-income household" means a single person, family, or unrelated persons living together
whose adjusted income is at or below 80 percent of the median family income adjusted for family
Ordinance 3357
Page 4
size, for the county where the project is located, as reported by the United States Department of
Housing and Urban Development.
2. "Private or public nonprofit organizations" means nonprofit corporations, municipal corporations,
and other organizations formally established for the charitable purpose of providing low-income or
affordable housing, recognized under the United States Internal Revenue Code as qualified recipients
of tax deductible charitable contributions, including but not limited to organizations having received
approval from the Internal Revenue Service of such status upon the filing of all forms as required for
recognition as a 501(c)(3) corporation. For an entity to qualify as a private or public nonprofit
organization under the provisions of this section, upon making a written request for deferral, the
entity shall provide sufficient proof of such status, including such documentation as the city manager
may deem necessary. For purposes of this section, municipal public housing authorities established
pursuant to Washington law shall be considered public nonprofit organizations.
3.
long-term to individuals � . p
---- « 1 _err jonnc ow
owns land and leases it
or��rarurr�t � an Trust"nor CL (crr 11otcS�na�no�nptofw k t�ra d aw�cr 1�at� IW......__We�.ssh�
T rnc�rns
or f�rr�r�rl�c�
lrc.CLT model lgl is rrrtcrrlcrl to kep tror.p mrwrr air rrrrr �rtly rallirrdak lcstabrlize ��m�trz�����r�Jties, and
IW accrmn)trtr011it!9IAILs�hile tllo iritto b01,c ity in their
.c
homes.
4.. "Pr jK t� d �,clq !r rncwans an indivrclyal or business en Ltythat mvC_�t i I I p aiis lrtranc e ar�el
crntrrr t r rl estatc Wpro c ts„ rr a a5 r wrci t l corm rcr ��rl arrcl rrru d'-use rc crMtrc rtk the
gcaal of arr�irp al comfit 1ror �w �s, rentals,�l king, -term invc,sgper rat 1'rimyrata devc.l apcts ol� rate
rc ticmrp y 1p tl c m the rxr work ayitl rrWblic incentives or
nrdccncrtl ofcr crtrrtcnt crwrrcrslar
5. "Building fee" means the building permit base fee, including related inspections, plan review,
demolition, mechanical, plumbing, energy, addressing and street development permits.
6. "Building fee" does not mean or include state building permit fee, fire code fees (including fire
alarm/fire sprinkler lees), land use fees (including, but not limited to, related to permits or approvals
for platting, environmental, shoreline, critical area, conditional use or variance, design review, or
requests for waiver), technology or record retention fees.
7. "Utility connection charges" means charges to connect to the tc L sewer, or storm yVater�� utility.
� w r rr r vatgr' tnearisµp r no 11 1 rwc)r�I e.c. tic>mrt and snowneltat. the site w irrcl' rciITtmsrrr fac, rraol '
a . r�rag .
ar�cl clrai
C. SDC, Building Fees, and Utility Connection Charge Deferral Requests — Qualified Applicants.
1. Upon the approval of the city manager or designee, collection of system development charges,
building fees, and utility connection charges to serve singlc-faipaily, nILIltrdtirrrrr'l ', err ccc,&µy
Dwqllirpg „knits D11s residences shall be deferred at the request of a private or public
nonprofit organization which is developing or constructing housing units for low-income
households. To qualify for such deferral, deferral requests shall be made on forms provided by
the city.
2. For mixed-income/mixed-use development, the amount of the fees deferred shall be a
percentage proportionate to the low-income housing provided; e.g., if 20 percent of the square-
Ordinance 3357
Page 5
footage of the project is dedicated to low-income housing, 20 percent of the total fees would be
eligible for deferral up to the limit specified in subsection F of this section.
3, For Accessory Dwellin u Unit.(A.Djl) development the amount of the fees deferred shall be
. .... ...... .
tg plicable to the low-ipcome hoqi Lovided. Fee deferrals are,ap _pJicable A(1sLiti9rd natg
) -n Li Lililmildip ),�qsed..fpU)"i )-se s cus
_t4djg�cj_qr�.detached froL( _ q_pEtt(ia j
incidental to the use of the p ildin g..,,j,�acliA2riin�try..Kesi(letice is limited to u - to two
aggessoU.Jiving, units. This may be coMpri sed of a combination of detached ADU(sJ and Qr
attached units. Maii dwelling units andassociated accessory dwelling units shall not be used for
awl or rentals to Lie cljgiblc for system tem deve o csas.p1!L)yjdL in this section, In
ment, char. .... AL
order to be eligible for system development.cha deferrals ,the accessory unit must be limited
to low - i ncoome liogsc11qlda sin )LC PgEs, I)LI r unr�el�jtgd_p�e.-�iqns hyi 10 & �?_ 4L �Y�� !
4dj�,Jncome is al, or below 80.,pereent of the median rami1v income ao ly j usted for famiwe
s,�
for the county where-th ct is located, as reported by the United S4_ Dit—of
Housing and Urban Dcyelopment, . ....... �onsisi�Lent with the provisions in this section. For the purposes
ot'deterriiinin ,�y�s gin deveflopinetIL.L s or utilitv or infrastrUcture re, uir c-
1�a rrly.,rsjdciicc with an acces y d Lin er r
Sol, Lwellirg, unit that does ipLs _get to 01y, wat o
__ -M 6_ __L
sewer smmmmmITervices shall have the same charges and the same iLe( uirements as a i�le:fa sj mily
residence without an
D. Recording. All deferrals granted shall be recorded as a real property lien until the deferral has
been repaid to the city, or waived as provided in this chapter. The lien shall run with the land and
apply to subsequent owners.
E. Repayment of Deferrals. All amounts deferred for low-income siilgl
.111.qftt[qLjii1y, or
AcccssoryJ)w 0,1 �Qtjs) housing applicants pursuant to this section shall be
reimbursed to the city in the applicable utility, as follows:
1. The applicant (private or public nonprofit organizations, Conlintmit Land 't I rus1s, o
d Jevc, log�n )..shall record a real property lien, in a form approved by the city, agreeing and
covenanting that the property will be sold or rented to a person or persons who meet, at the time
of certificate of occupancy, the eligibility requirements of this section. The agreement shall
specify the waiver/repayment period, criteria for waiver, reporting requirements and shall
acknowledge the city's right to audit (pursuant to subsection G of this section).
a. For projects subject to an equivalent housing program: If the applicant conclusively
demonstrates, to the satisfaction of the city manager, that the units will be monitored by a
federal, state, or city program that requires units be reserved for low-income households for a
minimum of 20 years, the city manager may waive the lien, city reporting requirement and
eligible fees.
b. For all other projects: If, after 20 years from the date of certificate of occupancy, the applicant
demonstrates the property has been consistently sold/rented to households meeting the eligibility
requirements in this code, then no repayment is required, subject to subsection fl(l)(c) of this
section.
1. If within 20 years of the date of the certificate of occupancy the property is sold or rented, and
the new buyer or tenant does not meet the eligibility requirements of this section, then repayment
Ordinance 3357
Page 6
of the deferred fee is required in full with interest thereon at a rate commensurate with the annual
one-year U.S. Treasury notes and bonds, adjusted for constant maturities, as published in the
Federal Reserve Bulletin or otherwise available from the Federal Reserve Bank, computed
annually on unpaid balances. Interest calculated pursuant to this section shall not be
compounded.
Repayment of deferred fees shall be secured with a real estate security instrument as approved by
the city attorney. Such instrument shall be senior to all other security instruments securing loans
on the property to the extent allowed by law.
F. Limitation.
1. The program is limited as follows:
a. For eligible single-family units: For building fees and utility connection charges, four dwelling
units per applicant per year; for SDCs, no limit.
b. For eligible multifamily units: For building fees and utility connection charges, up to $10,000
per project; for SDCs, no limit.
c. For eligible Accessary C� ^�, Units DUs : For buildjp p fees and utijit ._c tin eckioii
a i =ht d clliii, flit r � plza _for .'I) s,,_��o liI it
2. Requests for deferrals above the limit are subject to approval by the city council on a case -by -
case basis. The council would evaluate, among other things, number of entities expected to
request deferrals within the current budget cycle, the impact to city department budgets from
processing an increased number of deferral requests.
G. Reporting.
1. Fee Deferral Report Content. Within the time periods specified in subsection (G)(2) of this
section, the owners of property with an active fee deferral shall submit to the city finance
director:
a. A signed affidavit that units are occupied in accordance with the terms of the lien.
b. Any additional information deemed necessary by the finance director to determine compliance
with the terms of the lien.
c. Acknowledgment that the city retains the right to audit as per the terms of the lien.
2. Fee Deferral Report Timing.
a. For units under private ownership, reports are due to the finance director prior to close of
escrow and at the end of the period specified by the lien.
b. For rental units, reports are due to the finance director in the first quarter of each calendar year
and at the end of the period specified by the lien.
3. Budget Impact. At least annually, the finance director or designee shall report to the city
council on the amount of deferral requests and deferred fees. (Ord. 3235 § 2 (Exh. B), 2019; Ord.
3052 § 1 (Exh. A § 1), 2011).
Ordinance 3357
Page 7
3.36.015 Fees - Building and land use.
Repealed by Ord. 2580. Refer to Chapter ,"0,01) PTMC. (Ord. 2526 § 1, 1996; Ord. 2492 § 1,
1995; Ord. 2431 § 2, 1994; Ord. 2416 § 1, 1994; Ord. 2384 § 1, 1993; Ord. 2376 § 1, 1993; Ord.
2329 § 1, 1992; Ord. 2311 § 1, 1992; Ord. 2296 § 16, 1992; Ord. 2269 § 10, 1991; Ord. 2173
§ 3, 1989).
3.36.018 Appeal fees.
Repealed by Ord. 3311. (Ord. 3235 § 2 (Exh. B), 2019; Ord. 2580 § 2, 1997; Ord. 2507 § 2,
1996; Ord. 2492 § 1, 1995; Ord. 2431 § 3, 1994).
3.36.020 Public works and utility billing service fee schedule.
The fees and charges listed in this section for services of the public works department and the
finance department for utility billing are established. Fees for development engineering permits
and inspections shall be as established by council resolution. The fees and charges shall be paid
in advance unless an alternate method of payment is specifically approved by the director of
public works. The continuance or establishment of water and/or sewer service by the city shall be
contingent upon payment of all fees and charges contained in this section. (Ord. 3235 § 2 (Exh.
B), 2019; Ord. 3051 § 1 (Exh. A), 2010; Ord. 2936 § 2 (Exh. A), 2007; Ord. 2763 § 1, 2001; Ord.
2731 § 1, 1999; Ord. 2678 § 1, 1999; Ord. 2619 § 1, 1997; Ord. 2580 § 3, 1997; Ord. 2526 § 2,
1996; Ord. 2516 § 1, 1996; Ord. 2492 § 1, 1995; Ord. 2449 § 1, 1995; Ord. 2423 § 1, 1994; Ord.
2396 § 1, 1994; Ord. 2391 § 1, 1993; Ord. 2383 § 1, 1993; Ord. 2290 § 1, 1992; Ord. 2050 § 2,
1986).
3.36.030 Fees - Sewer connections.
The fee for connection to the sewage system of the city and the connection charge therefor shall
be established under the schedule of fees and charges contained in PTMC ",A. y6,0 0. (Ord. 3235
§ 2 (Exh. B), 2019; Ord. 2492 § 1, 1995; Ord. 2290 § 2, 1992; Ord. 2050 § 3, 1986).
3.36.040 Utility and garbage deposits.
The city may require reasonable advance deposits for utility fees and charges where it is
reasonable and prudent to do so to assure collection of such fees and charges. Where a utility or
garbage customer fails to pay all charges due, the city may collect interest at the maximum legal
rate, costs of collection and attorneys fees incurred in collection from the delinquent customer.
(Ord. 3235 § 2 (Exh. B), 2019; Ord. 2492 § 1, 1995; Ord. 2310 § 1, 1992; Ord. 2290 § 2, 1992).
3.36.050 Fees - Fire department permits and inspections.
Repealed by Ord. 3235. (Ord. 2492 § 1, 1995; Ord. 2340 § 1, 1993).
3.36.060 Fees - Police department fee for fingerprinting.
A. Public fingerprint rolling fee, $5.00 per fingerprint card. (Ord. 3235 § 2 (Exh. B), 2019; Ord.
2526 § 3, 1996).
3.36.070 Fees - Street vendor application and license.
Ordinance 3357
Page 8
The application fee for street vendor licenses issued in accordance with Chapter 4 PTMC,
Sales and Performances on Streets and Sidewalks, shall be $50.00. The annual street vendor
license fee required pursuant to Chapter ? 2 PTMC shall be $350.00. The street performer
license pursuant to Chapter 5, ;.? PTMC, which is valid for 12 months, shall be $100.00. (Ord.
3235 § 2 (Exh. B), 2019; Ord. 3114 § 3, 2014; Ord. 2702 § 1, 1999).