Yakima staff to seek RFQ to scope impact‑fee study after council discussion

Bill Preston (staff) summarized how impact fees work and told the council the study to set legally defensible rates is detailed and requires outside expertise. “So what are impact fees? So impact fees are 1 time charges assessed by a local government against a new development project to help pay for any new or expanded public capital facilities that will directly address the increased demand for services created by that development,” Preston said.

Preston and councilmembers discussed statutory limits and required elements for any impact‑fee program: fees must be tied to capital facilities shown in the city’s capital facilities plan, must reflect the proportionate share of impacts caused by a particular development, must account for other funding sources, and must be updated periodically. Preston told the council that state rules also require jurisdictions to spend collected impact‑fee revenues within 10 years or risk legal exposure.

Staff estimated the scope‑definition step (an RFQ to prepare a formal rate‑study RFP) could cost roughly $5,000–$10,000 in staff and consultant time; the full rate study would likely be a separate contract and could run into the tens of thousands (staff estimated $50,000 or more depending on scope). Preston said the planning budget does not include funds for the study and that staff would consult finance on funding options.

Council consensus, without a formal roll‑call motion, directed staff to prepare an RFQ to scope an impact‑fee rate study and to return with cost estimates and examples of revenue collected by similar jurisdictions. Councilmembers asked staff to report comparable collections from nearby cities and to explore potential grant funding or timing alignments with the comp‑plan update.

Why it matters: an impact‑fee program could shift some capital costs for transportation, parks and fire facilities to new development. Staff emphasized the legal and technical complexity of setting defensible rates and the need for outside consultants to compile the required data and formulas.

Next steps: staff will seek council guidance on funding the RFQ (staff flagged the planning budget has no line for the study), will consult finance about possible sources and will return with a cost estimate and sample revenue figures from peer cities.