Ordinance No. 2025-04 Traffic Impact Fees (Approved 022525)
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ORDINANCE NO. 2025-04
AN ORDINANCE of the City of Bainbridge Island, Washington,
relating to amending Title 15, Chapter 15.30 of the Bainbridge
Island Municipal Code (BIMC) to modify existing regulations
related to the Traffic Impact Fee Program for clarity, and to reduce
the burden of fees on commercial tenants occupying existing
commercial space
WHEREAS, the City of Bainbridge Island (the “City”) Municipal Code (BIMP) contains
Title 15 Buildings and Construction, and Chapter 15.30 Transportation Impact Fees; and
WHEREAS, Chapter 15.30 requires new commercial businesses occupying existing
commercial spaces to pay Traffic Impact Fees; and
WHEREAS, Chapter 15.30 contains reference to “P.M. peak hour trips” as it relates to
the calculation of traffic impacts associated with development; and
WHEREAS, at the June 18, 2024, City Council Study Session the City Council was
provided with a presentation on the Traffic Impact Fee program and recommended that staff
bring back changes to the program that would reduce the financial burden on small commercial
businesses occupying existing commercial space; and
WHEREAS, removing reference to “P.M. peak hour trips” would eliminate confusion
and allow City staff the desired flexibility under the existing code to regulate the Traffic Impact
Fee calculation; and
WHEREAS, commercial businesses of all types represent 20% or less of the City’s
annual Traffic Impact Fee revenue; and
WHEREAS, other municipalities in the State of Washington have similar provisions for
reducing the impact of Traffic Impact Fees on commercial businesses occupying existing
commercial space; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE
ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS:
Section 1. Bainbridge Island Municipal Code Section 15.30.030 Definitions is hereby
amended to read as follows:
15.30.030 Definitions.
The following words and terms shall have the following meanings for the purposes of this
chapter, unless the context clearly requires otherwise. Terms not defined herein shall be
defined pursuant to RCW 82.02.090 or given their usual and customary meaning.
A. “Applicant” means a person who applies for a building permit under the BIMC and who
is the owner of the subject property or the authorized agent of the property owner.
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B. “Building permit” means an official document or certification which is issued by the
city and which authorizes the construction, alteration, enlargement, conversion,
reconstruction, remodeling, rehabilitation, erection, demolition, moving, or repair of a
building or structure.
C. “Capital facilities plan” means the capital facilities element of the city’s comprehensive
plan adopted pursuant to Chapter 36.70A RCW and such plan as amended.
D. “Development” means any construction or expansion of a building, structure, or use for
which a permit, approval, or other authorization is required that creates additional demand
and need for transportation improvements; provided, that such development generates at
least one new p.m. peak hour trip, when the permit, approval, or other authorization for the
development is processed pursuant to BIMC Title 17 (Subdivisions and Boundary Line
Adjustments), or in the case of tenant improvement permits, “development” means any
proposed new use or expanded existing use that generates additional trips per unit
according to the trip generation rates established in the transportation impact fee rate
schedule in BIMC 15.30.200. Development does not include buildings or structures
constructed by a regional transit authority.
E. “Development approval” means any written authorization from the city which
authorizes the commencement of a development activity.
F. “Director” means the director of the department of public works of the city of Bainbridge
Island or her/his designee.
G. “Encumber/encumbered” means to reserve, set aside, or otherwise earmark the TIFs in
order to pay for commitments, contractual obligations, or other liabilities incurred for
system improvements.
H. “TIF rate schedule” means the representative list of TIF rates for common land use
categories on Bainbridge Island as set forth in BIMC 15.30.200.
I. “Hearing examiner” means the hearing examiner operating pursuant to the powers and
duties set forth by BIMC 2.14.030.
J. “Independent fee calculation” means the street and road impact calculation, and/or
economic documentation prepared by an applicant, to support the assessment of a TIF other
than by the use of the rates listed in the TIF rate schedule.
K. “P.m. peak hour trips” means the total vehicular trips entering and leaving a place of
new development activity on the adjacent public streets or roads during the p.m. peak hour.
The p.m. peak hour is the highest volume of traffic for a continuous hour between 4:00
p.m. and 6:00 p.m. on weekdays.
LK. “Project improvements” means site improvements and facilities that are planned and
designed to provide service for a particular development activity and are necessary for the
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use and convenience of the occupants or users of the project and are not system
improvements.
ML. “RCW” means the Revised Code of Washington or, when followed or preceded by a
numerical designation, a provision of the Revised Code of Washington.
NM. “Service area” means a geographic area over which a particular TIF is applied. For
the city of Bainbridge Island, the service area encompasses the current city limits.
ON. “Square footage” means the square footage of the gross floor area of the development
as defined in the BIMC.
PO. “Street” or “road” means a public right-of-way and all related appurtenances, which
enables motor vehicles, transit vehicles, bicycles, and pedestrians to travel between
destinations, and affords the principal means of access to abutting property, including
avenue, place, way, drive, lane, boulevard, highway, street, and other thoroughfare. For
purposes of this chapter, public streets and roads are collectively referred to as
transportation facilities.
QP. “System improvements” means transportation improvement projects that are included
in the city of Bainbridge Island comprehensive plan transportation element, and such plan
as amended, and are designed to provide service to service areas within the commun ity at
large, in contrast to project improvements that serve specific development.
RQ. “Transportation facilities” means any and all transportation infrastructure of the city
constructed pursuant to city design and development standards and requirements, including
without limitation roads, bridges, overpasses, sidewalks, curbs, turn lanes, bike lanes,
traffic signals, roundabouts, traffic signs, HOV lanes, bus shelters, and associated
landscaping. The cost of the transportation improvement shall include any debt service
payments, including interest, for any of these improvements.
SR. “Transportation impact fee (TIF)” means a payment of money imposed by the city on
development activity pursuant to this chapter as a condition of granting development
approval to pay for transportation improvements needed to serve new growth and
development, and that is reasonably related to the new development that creates additional
demand and need for transportation improvements, that is a proportionate share of the cost
of the transportation improvements, and that is used for improvements that reasonably
benefit the new development. “Transportation impact fee” does not include a building
permit fee, administrative fee for collecting and handling TIFs, appeal fee, or independent
fee calculation review fee.
TS. “TIF rate study” means the “Transportation Impact Fee Rate Study” dated July 2023,
prepared by Fehr and Peers, and other studies relied upon by the city in establishing the
TIF methodology and TIF rate schedule.
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UT. “Transportation impact fee fund(s)” means the fund(s) established for the TIFs that
are collected. The fund(s) shall be established pursuant to BIMC 15.30.100, and shall
comply with the requirements of RCW 82.02.070. (Ord. 2023-19 § 1, 2023; Ord. 2017-21
§ 1, 2017; Ord. 2015-07 § 1, 2015)
Section 2. Bainbridge Island Municipal Code Section 15.30.070 Exemptions is hereby
amended to read as follows:
15.30.070 Exemptions.
A. The following development activity shall be exempted from the payment of TIFs:
1. Alteration, expansion, or replacement of an existing single-family home.
2. Miscellaneous improvements that do not generate increased p.m. peak hour trips
including, but not limited to, fences, walls, residential swimming pools, and signs.
3. Demolition or moving of a structure when additional p.m. peak hour trips are not
generated.
4. A change of use that does not generate additional trips per unit of development
according to the trip generation rates established in the transportation impact fee rate
schedule in BIMC 15.30.200.
5. Any change of use of an existing building or tenant space 5,000 square feet or less,
unless said building or tenant space has been vacant for more than 12 consecutive
months, as determined by the Director.
56. Miscellaneous permits for activities that do not generate any new trips.
67. Rezones, comprehensive plan amendments, subdivisions, boundary line adjustment
and lot line eliminations, or any other land use permits.
78. Buildings or structures constructed by a regional transit authority pursuant to
RCW 82.02.090.
89. Any building permit application that has been submitted to the city before 4:00 p.m.
the business day before the effective date of the ordinance codified in this chapter that
has been deemed complete based on the information on file as of the effective date of
the ordinance codified in this chapter.
910. Affordable housing as defined by BIMC 18.21.020 and 18.36.030 or their successors.
1011. Pursuant to RCW 82.02.060, the city may provide exemptions for development
activities with broad public purposes; provided, that the impact fees from such
development activity shall be paid from public funds other than impact fee funds. The
director shall be authorized to determine whether a particular development activity falls
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within an exemption identified in this section or under other applicable law.
Determinations of the director shall be in writing and shall be subject to the appeals
procedures established in Chapter 2.16 BIMC. (Ord. 2017-21 § 4, 2017: Ord. 2016-16
§1, 2016: Ord. 2015-07 § 1, 2015)
Section 2. Severability. If any one or more section, subsections, or sentences of this
ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the
remaining portion of this ordinance and the same shall remain in full force and effect.
Section 3. Effective Date. This ordinance shall take effect on and be in force on March 10,
2025, after its passage, approval, and publication as required by law.
PASSED BY THE CITY COUNCIL this 25th day of February 2025.
APPROVED BY THE MAYOR this 25th day of February 2025.
Ashley Mathews, Mayor
ATTEST/AUTHENTICATED:
Christine Brown, MMC, City Clerk
FILED WITH THE CITY CLERK: January 31, 2025
PASSED BY THE CITY COUNCIL: February 25, 2025
PUBLISHED: March 5, 2025
EFFECTIVE DATE: March 10, 2025
ORDINANCE NO. 2025-04
ATTACHED: