Title
Approval of an Ordinance Amending Olympia Municipal Code Chapter 18.70 Related to Project Permitting Timelines to Ensure Compliance with Updates to State Law
Recommended Action
Committee Recommendation:
The Planning Commission recommends approval an ordinance amending Olympia Municipal Code Chapter 18.70 related to project permitting timelines to ensure compliance with updates to State law.
City Manager Recommendation:
Move to approve on second reading, an ordinance amending Olympia Municipal Code Chapter 18.70 related to project permitting timelines to ensure compliance with updates to State law.
Report
Issue:
Whether to approve on second reading, an ordinance amending Olympia Municipal Code Chapter 18.70 related to project permitting timelines to ensure compliance with updates to State law.
Staff Contact / Presenter:
Nicole Floyd, Principal Planner, Community Planning and Development, 360.570.3768
Background and Analysis:
Background and analysis have not changed from first to second reading.
In 1995, the State of Washington underwent regulatory reform which resulted in a consistent approach to permit processing statewide. This included a standardized 120-day timeline for most permits and annual reporting requirements. Many jurisdictions, including Olympia, have struggled meeting the standardized timeline, especially as the technical challenges of developing the remaining vacant sites has increased.
Senate Bill 5290 attempts to update the Local Project Review Act to reflect a more modern approach. Some of the bill focuses on ways to help jurisdictions create a digital permitting system, update permitting structures, and assistance with reporting; all of which Olympia has already implemented. Applicable to Olympia are requirements for:
1. Increased clarity regarding permit completeness.
2. Establishing a range of timelines from 65-170 days depending on permit type, rather than a static 120 day clock for all permit types.
3. Creating a framework for refund potential of 10%-20% when timelines are not met. Exemptions and incentives apply when the jurisdiction implements best management practices for efficient project review practices.
Olympia has a long-standing commitment to tracking, measuring, reporting, and consistently improve permit processing timelines including a move to an entirely online permit system in 2018. This significantly advanced the City’s ability to accurately track permit data allowing us to further refine our understanding of the time-consuming parts within a permit life cycle. In 2023, the City adopted code amendments that consolidated and updated permit processing chapters to improve readability. Olympia staff have a solid understanding of how long permits take, and why. The City’s long-standing commitment to quality permit review and tracking has resulted in a need for only limited amendments to achieve compliance with new State guidelines. In this way, Olympia is further ahead of most Washington jurisdictions.
Proposed amendments modify the existing 120-day clock by breaking them into “buckets” based on public involvement as follows:
• Type I: no public process: 65 days
• Type II: public comment: 120 days
• Type III: public comment and hearing: 170 days
Proposed amendments were unanimously recommended by the Olympia Planning Commission following a public hearing. The recommendation letter is attached.
These amendments are consistent with the timelines established in State law, however the Planning Commission unanimously recommends the City adopt two specific provisions to:
1. Accommodate for complicated sites such as those with critical areas and stormwater design issues. These sites typically take longer to review because of interjurisdictional regulations and increased code complexity. The proposal allows an additional 70 days for Type III permits, which will provide time for coordination and an additional round of review.
2. Retaining 120 days for Type II permits rather than reducing the timeline to 100 days. Additional time is warranted for Type II permits because of the City’s commitment to increased public engagement in its permit review process. A modification to the City’s land use review process would be recommended if the City were to adopt the State recommended timeline of 100 days.
Climate Analysis:
This proposal addresses procedural aspects of the City’s development code and will not likely result in physical changes to actual construction that would create or reduce climate impacts.
Equity Analysis:
Access to information about permits is most conveniently available through the City’s on-line permit portal. This generally provides advantages to those who have phones and computers, however those without can still access information in person at City Hall. Processing permits faster is intended to help address the housing crisis by adding to the housing supply as quickly as possible. There is a balance between timely permit review, quality of the review, and opportunity for public input that factors into what is equitable and for whom.
Financial Impact:
None, processing of these amendments is covered by the department’s annual budget.
Neighborhood/Community Interests (if known):
Community members typically want a robust public process and opportunity to make comments on projects. Careful balance between speed and public engagement opportunities is critical to government transparency.
Options:
1. Move to approve on second reading, an ordinance amending Olympia Municipal Code Chapter 18.70 related to project permitting timelines to ensure compliance with updates to State law.
2. Move to approve on second reading, an ordinance amending Olympia Municipal Code Chapter 18.70 related to project permitting timelines to ensure compliance with updates to State law with revisions.
3. Do not approve an ordinance amending Olympia Municipal Code Chapter 18.70 related to project permitting timelines to ensure compliance with updates to State law.
Attachments:
Ordinance
Olympia Planning Commission Recommendation