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(1) The school district and the city must, by interlocal agreement, provide for the establishment and maintenance of separate accounts by the city finance director and for the expenditure of fees by the school district in a timely fashion on appropriate capital projects as required by Chapter 82.02 RCW.

(2) The agreement must:

(a) Provide for the keeping of records for each such account whereby collected impact fees can be segregated by type of facility.

(b) Specify the fees the city will charge the school district for the collection of the fees authorized in this chapter.

(c) Provide for the transfer of collected fees from the city to the school district.

(d) Require that if impact fee funds are not encumbered, the school district must notify the city, so that the city may timely notify potential refund claimants.

(e) Detail a refund process, as required by Chapter 82.02 RCW.

(3) Notwithstanding any other provision of this chapter, in the event of any of the following, the city will not impose a school impact fee where:

(a) The school district does not timely provide an updated capital facilities plan to the city for adoption as an element of the city’s Comprehensive Plan; or

(b) The capital facilities plan of the school district does not satisfy the required ordinance or statutory criteria for imposition of a school impact fee; or

(c) The capital facilities plan prepared by the school district results in the calculation of the fee at $0.00.

(4) Provided, however, in no event will any of the events referenced in subsections (3)(a) through (c) of this section be construed as a repeal or waiver of the city’s authority to impose school impact fees generally and the occurrence of any of these referenced conditions will act solely as a suspension of the imposition of the impact fees until the issue(s) in subsections (3)(a) through (c) of this section are cured. Provided further, nothing contained herein may be construed as an intent to refund any school impact fee previously imposed and collected on behalf of the school district by the city. (Ord. 1520 § 1 (Exh. A), 2023).