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HomeMy WebLinkAboutOrdinance 4973 ORDINANCE NO. 4973 201 J A'� LG PrI 2' ' 6 r3 • 0 0 i iDS pr"it i li U. JrH!TITLE XV UNIF I I l DEVELOPMENTAN ORDINANCCODE OF FAYETO T EVILLE, CHAPTER tI 'GTGh K. FEES BY ENACTING § 159.05 ROAD IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE AND TO REFER THIS ORDINANCE TO THE VOTERS FOR THEIR ADOPTION OR REJECTION WHEREAS, the protection of the health, safety, and general welfare of the citizens of Fayetteville require that the streets and roads identified in the Capital Improvement Program, the 2003 Traffic and Transportation Study, and the 2006 Sales Tax Bond Proposal (collectively hereinafter "Capital Plan") as a Public Facility of the City be expanded and improved to meet the demands of new development; and WHEREAS, the creation of an equitable development impact fee system would enable the City to generate revenue for funding or for recouping the costs of required Capital Plan' s capacity improvements that those developments create; and WHEREAS the City has comprehensively studied the future needs of its citizens and what the City needs to do to meet those needs and adopted a Comprehensive General Plan, the 2025 Plan. The City also annually updates its Capital Improvement Program list of future necessary capital improvements for all city services including streets and roads; and WHEREAS, the City commissioned an in-depth Road Impact Fee Study designed to study future street and road capital needs, and the fair and equitable proportion of those capacity improvement needs that new development should pay. This Impact Fee Study was completed in September 23 , 2005, updated on May 2, 2006, and later adopted by the City Council on June 20, 2006 ; and WHEREAS, the Road Impact Fee Study sets forth reasonable methodologies and analyses for determining the impacts of various types of development on the City' s need for additional road capacity improvements; and WHEREAS, the Road Impact Fees described in this Ordinance are based on the updated Impact Fee Study, and are designated to generate revenue for funding or for recouping expenditures by the City of Fayetteville that are reasonably attributable to the use and occupancy of the new developments that will pay the fees; and WHEREAS, the Master Street Plan and the Capital Plan constitute an interrelated system that provides service throughout Fayetteville, and it is therefore appropriate and proper to treat the entire city as a single service area; and i Page 2 Ord. 4973 WHEREAS, there is both a rational nexus and a rough proportionality between the development impacts created by each type of new development covered by this Ordinance and the impact fees that such development will be required to pay; and WHEREAS, this Ordinance creates a system by which Road Impact Fees paid by new developments will be used so that the new development that pays each fee will receive a corresponding benefit within a reasonable period of time after the fee is paid. NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 : That the City Council of the City of Fayetteville, Arkansas hereby amends Chapter 159 of the Unified Development Code by enacting § 159.05 Road Impact Fees as shown on Exhibit A attached hereto. Section 2 : That the City Council of the City of Fayetteville, Arkansas hereby refers to the people of the City of Fayetteville the above proposed ordinance enacting § 159.05 Road Impact Fees for their adoption or rejection in an election to be held within the City of Fayetteville pursuant to Amendment 7 of the Arkansas Constitution on or about the lou' day of April, 2007. If a majority of electors vote to adopt the proposed ordinance, then § 159.05 Road Impact Fees shall then become the law in Fayetteville effective on July 1 , 2007. If a majority of electors vote to reject the proposed ordinance, the Road Impact Fees will not go into effect and § 159.05 shall not be enacted. Section 3 : That the City Council of the City of Fayetteville, Arkansas hereby determines that all projects for which valid building permits have been issued by the City prior to July 1 , 2007, shall be exempt from Road Impact Fees for the structure constructed pursuant to that building permit. Y OA SG PASSED and APPROVED this 16th day of January, 2007. APPROVED: ATTEST: : FAYETTEVILLE: `SpkANSP�J=; By. By: I rwin/� „nuuu� DAN COODY, Mayor SONDRA SMITH, City Clerk/Treasurer EXHIBIT "A" 159.05 Road Impact Fees (5) This road impact fee is based upon previous and current City Five Year Capital (A) Applicability Improvement Program documents approved annually by City Council Resolution, the 2003 (1 ) The following provisions shall apply Traffic and Transportation Study, and the Sales to all of the territory within the City's corporate Tax Bond Proposal for street improvements city limits, and any area near the corporate limits (hereinafter collectively referred to as the if specifically agreed by the owner. "Capital Plan") and level of service standards adopted within the Road Impact Fee Study of (2) The following types of development September, 2005, as updated in May, 2006, and shall be required to pay a Road Impact Fee: elsewhere by the City Council. The Impact Fee t Study of May 2, 2006, is incorporated herein and (a) New development within one of shall be filed in the City Clerk's Office and is the categories of development in Table A. attached to this Exhibit "A" to explain the methodology and formulas for the Road Impact (b) Redevelopment involving the Fees, the levels of services and increases in construction of one or more additional units capacity needed for the Capital Plan. within one of the categories of development in Table A. (6) It is not the intent of this section that any monies collected for the road impact fee (B) Intent ever be commingled or ever be used for a type of facility different from that for which the fee was (1) The intent of the Road Impact Fee paid. No impact fee revenue may be used for is to offset costs to the City of Fayetteville operational expenses. taxpayers that are reasonably attributable to providing necessary capacity improvements to (C) Time of Collection collector or arterial streets to serve new developments. This impact fee shall be paid to the City by the owner of the property before a certificate (2) This impact fee charged to new of occupancy is issued for the new development development is to generate revenue for funding or at the closing on the property by the or recouping expenditures of the City of purchasing owner. Fayetteville that are reasonably attributable to the use and occupancy of the new development. (D) Fee Determination (3) This impact fee is to be collected (1) Road Impact Fee Table. and expended only for the planning, design or construction of new collector or arterial streets or The Impact Fee Administrator shall of capital improvements to existing collector or determine the correct amount of the Road Impact arterial streets that expand their capacity or for Fee by use of Table A and information about the the recoupment of prior capital improvements to type and size of the new development. such collector or arterial streets that created capacity available to serve new development. (4) The intent of this impact fee requirement is to ensure that new development bears a proportionate share of the costs of capacity improvements to the collector and arterial streets, but also to ensure that this proportional share does not exceed the costs of the demand for additional capacity in those streets that is reasonably attributable to providing these streets to the use and occupancy of that new development. EXHIBIT "A" from payment of impact fees pursuant TABLE A to this ordinance by the Impact Fee Administrator. ROAD IMPACT FEES (b) Appeal. A person aggrieved by the Impact Impact Fee Administrator's refusal to grant an Land Use Unit Fee Affordable Housing Exemption may appeal the Residential Dwelling $2,363 denial to the Planning Commission. Mobile Home Park Pad $1 ,779 (E) Use of Fees. Hotel/Motel Room $1 ,319 (1) Establishment of Accounts. A Road Commercial/Office 1000 sq. ft. $2,701 Impact Fee Fund that is distinct from the General Fund of the City is hereby created, and the Nursing Home 1000 sq. ft. $ 1 ,495 impact fees received will be deposited in this Church/School Road Impact Fee Account. Industrial/Warehouse 1000 sq. ft. $ 13676 (2) Impact Fee Account. The Road Impact Mini-Warehouse 1000 sq. ft. $ 587 Fee Account shall contain only those impact fees collected pursuant to this Ordinance plus any (2) Redevelopment, Reconstruction, interest which may accrue from time to time on such accounts. Change of Use. In the event of a redevelopment, reconstruction or change of use from an existing (F) Order of Use. Monies in the Road Impact development or use, the fee shall be the Fee Account shall be considered to be spent in difference between what the fee would be for the the order collected, on a first-in/first-out basis. entire redevelopment or reconstruction project and what the fee would have been for the (G) Use of Fees. The funds in the Road Impact existing development or use. Enlargement of a Fee Account shall be used only for the single family home will not require any impact following: fee. ( 1 ) The use of the Road Impact Fees (3) Mixed Use. If the proposed development shall be to offset costs to the City of Fayetteville includes a mix e. the residential, commercial, industrial or other uses listed in the impact fee taxpayers that are reasonably attributable to schedule, the fee shall be determined by adding providing necessary collector up all the road impact fees that would be capacity improvement to new development. or arterial street applicable for each use type as if it was a (2) This impact fee charged to new freestanding land use type. development shall generate revenue for funding or recouping expenditures of the City of (4) Affordable Housing Exemption. Fayetteville that are reasonably attributable to a Single family and non-profit multi- the use and occupancy of the new development. O g Y p family supportive housing. Construction (3) This impact fee shall be collected of single family and non-profit multi- and expended only for the planning, design or family supportive housing funded construction of new collector or arterial streets or wholly or primarily by federal of capital improvements to existing collector or Community Development Block arterial streets that expand their capacity or for Grants, non-profit service organizations the recoupment of prior capital improvements to such as Habitat for Humanity, Housing such collector or arterial streets that created and Urban Development housing loans capacity available to serve new development. and similar programs designed to provide affordable, owner-occupied, (4) No monies collected for the Road single family residences to low income Impact Fee shall ever be commingled or ever be individuals and non-profit multi-family used for a type of facility different from that for supportive housing shall be exempted which the fee was paid. EXHIBIT "A" (5) No impact fee revenue shall be used for operational expenses. (6) All Road Impact Fee revenues shall be spent in accordance with subsection (B) Intent. (H) Refunds. ( 1 ) The City of Fayetteville shall refund the portion of collected development impact fees, including the accrued interest that has not been expended seven (7) years from the date the fees were paid. Interest shall be based on a four percent (4%) annual rate. (2) A refund shall be paid to the present owner of the property that was the subject of new development and against which the fee was assessed and collected. (3) Notice of the right to a refund, including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property no later than thirty (30) days after the date which the refund becomes due. The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice. (4) The refund shall be made on a pro rata basis, and shall be paid in full no later than ninety (90) days after the date certain upon which the refund becomes due. (5) At the time of payment of the Road Impact Fee under this Ordinance, the Impact Fee Administrator shall provide the applicant paying such fee with written notice of those circumstances under which refunds of such fees will be made. Failure to deliver such written notice shall not invalidate any collection of any impact fee under this ordinance. ` F ROAD IMPACT FEE STUDY FAYETTEVILLE ,FARKANSAS Y 3 F prepared by duncanlassociates May 2006 CONTENTS EXECUTIVE SUMNI M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 LEGAL FRAMEWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 DEVELOPER EXACTIONS AND CREDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 SERVICE UNITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 IMPACT FEE METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 MAJOR ROADWAY SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 EXISTING DEFICIENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 COST PER SERVICE UNIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 REVENUE CREDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 TRAVEL DEMAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 POTENTIAL FEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 APPENDIX A: MAJOR ROADWAY INVENTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 APPENDIX 13: ARKANSAS IMPACT FEE ENABLING ACT' . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 LIST OF TABLES AND FIGURES Table 1 : ROAD IMPACT I4FF. SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Table 2: CAPITAL FUNDING BY SOURCE, 2004-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 '.'able 3: SALES TAX CAPITAL FUNDING, 2004-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Table 4: OUTSTANDING DF_13T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Table 5: POPULATION GRO\Xrl'I I, 1990-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 6: RESIDENTIAL BUILDING PERMITS, 1996-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 7: EXISTING HOUSING UNITS BY TYI'L- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table 8: TOTAL DAILY VEHICLE MILES OF TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . 14 'fable 9: TOTAL DAILY VEFIICLI A4ILES OF CAPACITY . . . . . . . . . . . . . . . . . . . . . . . . 14 Table 10: SYSTEMWIDE RATIO OF CAPACITY TO DEMAND . . . . . . . . . . . . . . . . . . . . 15 Table 11 : PLANNED ROAD 1NIPROVFMFNT COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Table 12: ROAD COST PER SERVICE UNIT' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Table 13: FFDER 1L/STA'K'E 11IGHXX%AY FUNDING, 2001 -2025 . . . . . . . . . . . . . . . . . . . . 17 1"able 14: CITY SALES TAX FUNDING, 2004-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Table 15: ROAD REVENUE CREDIT PER SERVICE UNIT . . . . . . . . . . . . . . . . . . . . . . . . 19 Table 16: ROAD NET COST PER SERVICE UNIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 "fable 17: AVERAGE TRIP LENGTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Table 18: AVERAGE TRIP LENGTH BY TRIP PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Table 19: "TRAVEL DF_NfAND SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . 23 Table 20: ROAD NET COST SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Table 21 : POTENTIAL ROAD IMPACT FEE REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Table 22: MAJOR ROADWAY INVENTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Figure 1 : PLANNING AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 lf1C"1J° lORKf _Fgure : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Figure 3: EXISTING MAJOR ROADWAY SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 prepared be Duncan Associates Clancy- \9ullen, Principal Author 13276 Research Boulevard, Suite 208, Austin, TX 78750 (512) 258-7347 x 204; clancl a duncanplan.com EXECUTIVE SUMMARY This study calculates maximum impact fees that could be adopted by the Citv of Fayetteville to help fund growth-related infrastructure improvements for major roads. "l'he road impact fees have been calculated with and -without the inclusion of right-of-way (RO\\0 costs. If road impact fees are adopted, the City would need to give developers credit against their impact fees for the cost of any required land dedication or capacity improvement that adds through lanes to any adjacent or internal arterial or collector roadway. . However, if ROW costs are excluded from the road impact fee, credit -would need to be given only for improvement costs. T7tis report relies heavily on the road impact fee analysis contained in the ]une 2004 Impact Fee Study. Road, Fire and Pa/ice that we previously prepared for the City. T7ie major change was to substitute the proposed bond program projects for the historical projects used as the basis for the road impact fees. T11e calculated maximum fees for selected land uses and potential annual impact fee revenues are summarized in Table 1 . The maximum road impact fees and potential revenues would be 8 percent lower if ROW costs are excluded. It should be kept in mind that the City will need to give credit against the road impact fees for the value of some developer dedications or improvements, and consequently, actual road impact fee revenues received in cash will likely be less than indicated in the table below. Table 1 ROAD IMPACT FEE SUMMARY Land Use Unit Without ROW With ROW Single-Family Detached Dwelling $3,409 $3,722 Multi-Family Dwelling - $2,363 $2,580 Mobile Home Dwelling $1 ,779 $1 ,943 Retail 1 ,000 sq. ft. $4,023 $4,393 Office 1 ,000 sq. ft. $2,701 $2,950 Industrial 1 ,000 sq. ft. $2,353 $2,569 Potential Annual Revenue $4, 108,043 $4,485,558 Source: Maximum road fees from Table 20: potential revenues from Table 21 . duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 1 LEGAL FRAMEWORK Municipalities in Arkansas are authorized by state law to enact impact fee ordinances, provided that they follow the requirements of Arkansas Statutes 4 14-56-102, Development Impact Fees. This section provides a brief summary of those requirements most relevant to the City of Fayetteville. The entire statute is reproduced in Appendix B. Impact fees area one-time fee that can only be assessed on new development. Water and wastewater impact fees can be assessed at the time of purchase of the water meter, but all other types of impact fees must be assessed at the time of issuance of the certificate of occupancy. The amount of impact fees paid for a newly-constructed building must be separately itemized on the closing statement at the time the property is sold. The City can allow the fee to be paid in installments. Impact fees must be spent for capital improvements that provide benefit to the fee-paying development. This can include existing improvements that have excess capacity that was built to accommodate future growth. Section 14-56-102(c)(1) provides that the fees can only be used for: ... Me planning, design and construction of new public facililies or of capital inprovements to existing pnhlit fay lines that expand its capacity orfor the recoupment of prior capital improvements to publir facilities that created rapacity that is available to sense new development. Impact fees can be pledged to repay bonds that have been issued to fund growth-related capital improvements. However, they cannot be used to pay for: the operation or maintenance of ark prchlic facility{ or for the construction or improvement of public facilities, that does not create additional capacit� (Section 14-56-102(c)(3)) In Arkansas, impact fees can only be adopted to fund certain types of public ,facilities. Section 14-56- 102(b) limits the use ofimpact fees to "providing necessary public facilities," and Section 14-56-102(x)(7) defines "public facilities" to include only the following: (A) Eater srpp/y, treatment, and distribution,for either domestic water orforsrppressionoffires; (13) I i%astewaler treatment and sanitary sewerage, (C) Stornmater drainage (D) Roads, streets, sidewalks, highways mrd public lean,partation; (T) Librvp; (1 ) Parks, open space, and recreation areas, (G) Police orpublic safety; (H) Fir, protection; and (1) Ambulance or emergeng medical transportation and response. To assess impact fees, a city must first adopt an ordinance. The ordinance must be preceded by the development of a capital plan and level of service standards for the types of facilities for which the impact fees are to be imposed. The capital plan must include: duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 2 a description of new public facilities or of new capital improvements to existing public facilities or of previous capital improvements to public facilities that continue to provide capacity available jar new development that includes cost estimates, and ca ,pacio available to sense new development ... (Section 14-56-102(1)(1) As noted, prior to adopting a road impact fee ordinance, the City must adopt a capital plan and a level of service standard for roads, pursuant to Section 14-56- 102(e)(2). The capital plan, which describes the projects that would be eligible for funding with the City's road impact fees, is shown Table 11 . The level of service on which the fees calculated in this report are based is a one-to-one system wide ratio of vehicle-miles of capacity to vehicle-miles of travel (see the discussion in the sections on "Road Impact Fee Methodology" and "Existing Deficiencies," as well as the formula in Figure 2). Pursuant to Section 14-56-102(e)(3), the impact fee ordinance must contain the following: (A) A statement of the newpublie facilities and capital improvements to existing public facili ies that are to be financed by impact fees and the level of service standards included in the capital plan for the public facilities that are to be financed with impact fees; 03) The actual formula or for a las far asses.dng the impact fee, wbich shall be consistent with the level of service standanh; (C) The procedure by which impact fees are to be assessed and collected; and (D) The procedure for refund of excess impacifees, in accordance witb subsection (b) of this section. Impact fees collected must be deposited into a separate interest-bearing account and spent only, for the type of improvements for which they were collected. Interest earned on these accounts shall be spent for the same purposes as the impact fees themselves. Any funds not spent within seven years must be refunded to the fee-payer. dun canlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 3 BACKGROUND An impact fee is a form of "exaction," through which a developer or builder is required to contribute to the costs of public improvements required to serve the development. Generally, impact fees are designed to pay for the new development's proportionate share of the cost of off-site improvements, and credit against the fees is given if the developer is required to contribute to the system of facilities for which the fees are charged through on-site dedication, construction or monetary payment. Typically the fee is levied on some easily measurable unit of activity, such as the construction of one dwelling unit or 1 ,000 square feet of commercial or industrial space. In Arkansas, impact fees are generally collected at the time of certificate of occupancy or water meter purchase. llne Cin' finances most capital improvements on a pay-as-vou-go basis. This is done utilizing revenues from the one-percent City sales tax renewed in 2002 (of which, by City Council resolution, 50 percent is used to fund capital projects), the one-percent Hotel, Motel, Restaurant sales tax adopted in 1996 to fund park improvements, and operating revenues from the City's enterprise funds, including water, wastewater and solid waste. The City's last five-year capital improvements program (CIP), excluding non-recurring funding such as one-time bond proceeds, included over $66.6 million in capital funding for the five-year period. Over half olthe pay-as-you-go funding is from the one-percent sales tax, as shown in Table 2. Table 2 CAPITAL FUNDING BY SOURCE, 2004-2008 Revenue Source Amoun arc Sales Tax $36,854,000 55.4% Water & Sewer Fund $12,983,000 19.5% Airport Fund $6,755,000 10. 1 % Shop Fund $6,625,000 10.0% Parks Development Fund $2,391 ,000 3.6% Solid Waste Fund $854,000 1 .3% Off-Street Parkin Fund $113,000 0.2% Total $66,575,000 100.0% Source: City of Fayetteville, Capital Improvements Program, 2004- 2008, 0042008. December 2003 (excludes bond proceeds). The City's sales tax capital funding is spent on a wide variety of improvements. Foremost among these are streets and traffic signals, other transportation improvements and parks, as shown in Table 3. r duncanjassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 4 Table 3 SALES TAX CAPITAL FUNDING, 2004-2008 Streets and Signals $12,682,000 34.4% Other Transportation $7,706,000 20.9% Parks $4,565,000 12.4% Bridge & Drainage $3,444,000 9.3% Other $3,122,000 8.5% Fire $2,455,000 6.7% Police $1,290,000 3.5% Library $1.590,000 4.3% Source: City of Fayetteville, Five Year Capital Improvements Program, 2004-2008, December 2003. The City has about $62 million in outstanding debt, as shown in Table 4. However, none of that debt is related to road facilities. The new 2005 Sales and Use Tax bond issue will consist of $26.235 million in refunding bonds and $65 million in new debt for a total of $91.235 million. Table 4 OUTSTANDING DEBT Sales Tax, Series 1997 (Walton Arts Center) Water & Sewer, Series 1999 (Water Main(Tanks) Water & Sewer, Series 2002A and 2002B Sales Tax, Series 2002 (Wastewater Treatment/Sewerage) Hotel & Restaurant, Series 2003 (Town Center) as of December 31. 2004 Source: City of Fayetteville, Annual Budget and Work Program, 2005. 1997 $2,610,000 $290,000 1999 $8,365,000 $5,840,000 2002 $9,270,000 $7,700,000 2002 $25,000,000 $7,290,000 2003 $6,335,000 $6,215,000 Impact fees are most appropriate for communities that are experiencing rapid growth. The Fayetteville - Springdale -Rogers Metropolitan Statistical Area (MSA), comprised of Washington and Benton Counties, was the sixth fastest growing MSA in the country in the 1990s.' Washington County, of which Fayetteville is the county seat, has been growing at a compound annual growth rate of 3.4 percent since 1990, and one-third of the population added since then has been in Fayetteville. The city itself has been growing at 3.2 percent annually, over twice as fast as the state as a whole. Fayetteville's population is estimated to be 64,190 as of July 1, 2004. It is not surprising that this pace of growth has created problems in terms of the City's ability to finance the capital improvements needed to accommodate new development. 'U.S. Census Bureau, Statistical Abstract of the United States: 2000, Table No, 34, p. 33. duneanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 5 Table 5 POPULATION GROWTH, 1990-2000 ••1 411111 Fayetteville 42,249 58,047 15,798 3.23% Springdale * 29,941 43,787 13,846 3.87% Other Municipalities* 10,503 17,540 7,037 5.26% Unincorporated 30,716 38,341 7,625 2.24% Washington County 113,409 157,715 44,306 3.35% State of Arkansas 2350,624 2,673,400 322,776 1.30% * only the Washington County portion of Springdale and Elm Springs Source.* U.S. Census Bureau; Northwest Regional Planning Commission The City has been issuing permits for an average of almost 400 single-family homes annually since 2000, as shown in Table 6. The number of multi -family permits issued annually has increased from about 470 per year in the late 1990s to almost 700 per year in the last five years. Table 6 RESIDENTIAL BUILDING PERMITS, 1996-2004 1996 445 154 599 1997 265 281 546 1998 272 40 312 1999 357 515 872 2000 279 272 551 2001 258 440 698 2002 239 792 1,031 2003 611 1,258 1,869 2004 583 711 1,294 Avg., 1996-99 335 469 804 Avg., 2000-04 394 695 1,089 Source: City of Fayetteville, Inspection Department. Based on building permits issued since the 2000 Census, it is estimated that Fayetteville has about 31,000 dwelling units as of April 2005, as shown in Table 7. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 6 Table 7 EXISTING HOUSING UNITS BY TYPE III II Single -Family 12,663 1,970 14,633 Multi -Family 11,808 3,473 15,281 Mobile Home/Other 855 n/a 855 Total 25,326 5,443 30,769 Source: 2000 U.S. Census for Fayetteville, AR, SF -311 in 6 sample data) permits from January 2000 through December 2004 from Table 6 In addition to development within its incorporated limits, the City is also affected by, and has some control over, development in unincorporated areas within its extraterritorial jurisdiction. Within this area, which extends up to five miles from the corporate limits or half the distance to any adjoining municipality, the City exercises joint subdivision authority with Washington County. The area covered by the City's extraterritorial jurisdiction is larger than the area within its corporate limits. The combined corporate and extraterritorial jurisdictions are referred to as the City's planning area, which covers approximately 92 square miles. Figure 1 PLANNING AREA + IJ PcT N+Jlt��,LLr �r�*l� li t`r �!'"mot• 1 i. Xc2IIIJ 7 9h[ .�?�1! I - - City Limits r y1-1 I - - Extraterritorial I + Jurisdiction duneanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 7 DEVELOPER EXACTIONS AND CREDITS The City does not impose a road impact fee on new development, but there are a number of developer exactions for roads in the City's Unified Development Code- A "large scale development," defined as any development larger than one acre, must dedicate sufficient right-of-way (RO\\V) to bring ant' abutting or intersecting major road to the standards of the master street plan. A lesser dedication may be recommended by the Planning Commission and approved by the City Council in cases of undue hardship or practical difficulties. Developers of large-scale developments may also be required to make off -site street and other improvements, "where the need for such improvements is created in whole or in part by the proposed large scale development."2 When commercial, industrial or multi -family development is proposed adjacent to any street not constructed to current city standards, the developer is required to dedicate sufficient ROW and install paving, curb and gutter, and sidewalks necessary to bring the street into conformity with current standards. The regulation provides that the City Council may reduce the dedication requirement, and the cost of required improvements shall be in proportion to the needs created by the development.' Finally, off -site road improvements may be required where a proposed subdivision has access to paved streets only by way of substandard or unimproved streets. In such cases, the subdivider is required to contribute a proportionate share of the cost of the off -site improvements. The proportionate share is based on the acreage of the subdivision as a share of the acreage of all property benefitting from the improvement, or by an alternative method determined by the planning commission.' In general, these requirements mean that development abutting an unimproved or substandard street must dedicate the required ROW and construct the adjacent half of the street improvement. ]'he developer does have the option to do a traffic study to attempt to demonstrate that the required improvement exceeds the impact of the development. Even lot splits can trigger the requirements to improve abutting roadways. The proposed road impact fees differ from the Fayetteville's exist:ingwater and wastewater fees, and from the proposed fire and police fees, in that a significant portion of the fees may need to be used to compensate developers who have frontage on major roadways and are required to construct or improve them. If the road impact fees calculated in this report are adopted, the City would need to give credit against the fees to developers for the value of required improvements to arterial and collector roadways. No credit would need to be given for the value of ROW dedications if ROW costs are not included in the impact fee calculations. There are a variety of ways that credit provisions can be structured, and these issues should be addressed in the impact fee ordinance. One thing that needs to be defined in the ordinance is what constitutes a capacity -expanding improvement eligible for funding with road impact fees. The definition should exclude bringing an existing substandard two-lane arterial or collector road up to current standards. ' Section 166.05: Large scale development. 3 Section 171.03: Street improvements Section 166.07: Required off -site improvements. duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 8 Developers are often required to make such improvements to adjacent roads, and the ordinance should make clear that this is not the type of improvement that is eligible for impact fee funding or impact fee credit. For example, the ordinance could define eligible improvements as capacity -expanding improvements to the major roadway system, including building new roads, widening existing roads by adding additional lanes, and intersection improvements that add signalization or turn lanes. In the event that the City Council chooses to adopt road impact fees at a level that excludes the cost of ROW, the ordinance will need to address whether the impact fee revenues can be expended to acquire ROW. The consultant recommends that if developers are not going to be given credit for the value of ROW they are required to dedicate, the ordinance should prohibit the expenditure of impact fee funds for ROW acquisition. Such a prohibition may not be legally required, but it would serve as an important clarification that ROW is not any part of the road impact fee program. Another issued to be addressed in the ordinance is whether a developer will be reimbursed directly from impact fee funds collected from all developments, or whether the impact fees paid within the developer's project will be reduced. Our recommendation is that credit be provided as a direct reimbursement to the developer that dedicated the RO\V or made the improvement. One approach would be to set aside a maximum percentage of annual impact fee revenues to be used for such reimbursements. If the outstanding reimbursements owed in any given year exceed the amount available from impact fee revenues, each developer would receive a proportionate share of their outstanding reimbursement, and be eligible for more reimbursement in subsequent years. This approach would make collecting impact fees much easier, since the fees would be collected in full on all building permits, without the permit clerk having to check to see if a fee reduction due to credits is required. The impact fee ordinance will also need to deal with other credit issues, such as the following. o If credits are provided in the form of fee reductions, what happens when the amount of the credit exceeds the impact fees that would be due from the development project? o To what extent should credits be given for past contributions for development projects that have not yet been completed? SERVICE UNITS Service units create the link between supply (roadway capacity) and demand (traffic generated by new development). An appropriate service unit basis for road impact fees is vehicle -miles of travel (VM1). vehicle -miles is a combination of the number of vehicles traveling during a given time period and the distance (in miles) that these vehicles travel. The_unit of capacity that is consumed by the demand unit represented by a VMT is a vehicle -mile of capacity (VMC). VMC is calculated as the capacity of a roadway segment multiplied by the length of the segment in [Hiles. The two time periods most often used in traffic analysis are the 24 -hour day (average daily trips or ADT) and the single hour of the day with the highest traffic volume (peak hour trips or Plg1). Available traffic duneanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 9 counts for area roadways are for average daily trips. Consequently, average daily VMT will be used as the service unit for Fayetteville's road impact fees. IMPACT FEE METHODOLOGY The major alternative methodologies for calculatingroad impact fees are the "improvements -driven" and "consumption -based" approaches. These are briefly described below. The "improvements -driven" approach essentially divides the cost. of growth -related improvements required over a fixed planning horizon (or to build -out) by the number new service units (e.g., vehicle trips) projected to be generated by growth over the same planning horizon in order to determine a cost per service unit. The improvements -driven approach depends on accurate planning and forecasting. .For example, the fees will be accurate only if the forecasted increase in traffic actually necessitates all of the improvements identified in the transportation master plan. If many of the planned improvements will provide excess capacity that will be available to serve additional development beyond the planning horizon on which the fees are based, the fees may be too high. The "consumption -based" approach does not depend on knowing in advance what improvements will be made or what type or density of development will occur. The consumption -based model simply charges a new development the cost of replacing the capacity that it consumes on the major roadway system. Thatis, for every service unit of traffic (e.g., mile of vehicle travel) generated by the development, the road impact fee charges the net cost to construct an additional service unit of capacity. The consumption -based system can be based on a transportation plan, but the total cost of the plan does not affect the amount of the fee, which is based on the unit cost of creating new capacity. A strength of the consumption -based system is that it is very legally defensible because it generally under- estimates the full cost of growth. Since travel is never evenly distributed throughout a roadway system, actual roadway systems require more than one unit of capacity for every unit of demand in order for the system to function at an acceptable level of service. Suppose, for example, that the City completes a major arterial widening project. The completed arterial is likely to have a significant amount of excess capacity for some period of time. If the entire system has just enough capacity to accommodate all of thevehicle-miles of travel, then the excess capacity on this segment must be balanced by another segment being over -capacity. Clearly, roadway systems in the real world need more total aggregate capacity than the total aggregate demand, because the traffic does not always precisely match the available capacity. Consequently, the standard consumption -based model generally underestimates the full cost of growth. The consumption -based system is a conservative, legally sound and relatively simple approach to the calculation of road impact fees. This is the recommended approach for Fayetteville. The recommended formula for the road impact fees is shown in Figure 2. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 10 Figure 2 IMPACT FEE FORMULA MAXIMUM FEE _ Where: VMT = NET COST/VMT = Where: TRIPS % NEW LENGTH +2 COST/VMT VMT x NET COST/VMT TRIPS x % NEW x LENGTH - 2 COSTNMT• CREDITNMT Trip ends during a weekday % of trips that are primary, as opposed to passby or diverted -link trips Average length of a trip on the major roadway system Avoids double -counting trips for origin and destination Average cost per lane -mile divided by average daily capacity per lane Revenue credit per daily VMT duncan[associates Fayetteville\Road Impact Fee Study May 2, 2006, Page 11 MAJOR ROADWAY SYSTEM A road impact fee system should include a clear definition of the major roadway system that is to be funded with the impact fees. The major roadway system to be funded with the proposed impact fees is comprised of arterials and collectors within the City's incorporated area, including most state roads but excluding freeways and expressways. These roadways are identified on the City'sMasler Street Plan, which is an official map that is used in conjunction with the Circulation Element of the 2020 Genera/Plan. It classifies streets into a number of functional types, including freeway/expressways, principal arterials, minor arterials, collectors and local streets. The Master Street Plan shows the location of new roads and allows the City to preserve corridors for roadways expected to need widening or extension. An inventory of the existing major roadway system was compiled in order to identify existing capacity deficiencies and to determine the average length of a trip on the major roadway system (see Appendix A). The roadway segment descriptions include the street name, roadway termini, number of lanes and roadway length and width. Average daily traffic volumes were estimated for most segments from state highway department counts. The existing major roadway system withinFayettevillcsincorporatedlimits is illustrated in Figure 3. Figure 3 EXISTING MAJOR ROADWAY SYSTEM Arterials Collectors duneanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 12 EXISTING DEFICIENCIES In most rapidly growing communities, some roadways will be experiencing an unacceptable level of congestion at any given point in time. One of the principles of impact fees is that new development should not be charged, through impact fees, for a higher level -of -service than is provided to existing development. Another common way of expressing this concept, although it is somewhat less precise and subject to misinterpretation, is that impact fees should not be used to pay for remedying existing deficiencies. In the context of road impact fees, this has sometimes been interpreted to mean that impact fees should not be spent on roadways that are already over -capacity. A variant of this approach is that impact fees should only be used to fund a percentage of the project that can be attributed to providing additional capacity beyond what is needed to remedy any existing deficiency. There are a number of practical problems with these approaches. First, impact fees are restricted from being spent on roadways that are most in need of improvement, while the fact that fee -funded improvements to other roadways may also relieve the deficient segments is ignored. Second, these approaches complicate impact fee administration by requiring that the portion of the cost of each improvement that is attributable to remedying deficiencies be funded from a different source than impact fees. The most significant objection to these approaches, however, is that they are not consistent with the conservative nature of the consumption -based road impact fee methodology. The consumption -based system does not promise that all road segments will function at a given level of service (e.g., LOS C or LOS D). All the consumption -based model does is assume that for every unit of capacity that is consumed, another will be constructed to replace it. Implicitly, the level of service used in a consumption -based impact fee is a one-to-one ratio of capacity to demand in the major roadway system as a whole. As long as the current system provides at least this capacity/demand ratio, the impact fees are not charging for a higher level of service. To determine the capacity/demand ratio, the first step is to estimate total VMT on the major roadway system. This figure will also be used in the average trip length and revenue credit calculations. Recent daily traffic counts are available for road segments accounting for almost three -fourths of all lane -[Hiles in the major roadway system. Adding estimated traffic from road segments for which counts were not available, on the assumption that such segments would carry about three-quarters the volume of segments with counts, yields a estimate of about 1.1 million daily vehicle -miles of travel on Fayetteville's major roadway system. duneanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 13 Table 8 TOTAL DAILY VEHICLE -MILES OF TRAVEL Principal Arterials 687,943 162.32 4,238 168.48 707,523 Minor Arterials 137,277 36.30 3,782 44.09 159,373 Collectors 83,653 42.20 1,982 101.96 172,486 Historic Collectors 70,292 25.69 2,736 32.15 83,548 Total 979,166 266.51 346.68 1,122,931 Source: Table 22; counted VMT is product of miles and ADT for segments with traffic counts; lane -miles with counts is product of miles and existing number of lanes for segments with counts; total lane -miles includes segments without counts; total VMT assumes segments without traffic counts carry 3/4 as many vehicles as the average of segments of the same classification with counts. The next step is to estimate total vehicle -miles of capacity in the major roadway system. The City's recently -completed transportation plan uses a general planning -level capacity estimate of 8,000 vehicles per lane per day at LOS D. Using that capacity figure, total system capacity is about 2.8 million daily vehicle -miles, as shown in Table 9. This is considerably more than the total VMTin the system. Clearly, the one-to-one ratio of capacity to demand on which the impact fees are based is not resulting in new development being charged for a higher level of service than is being enjoyed by existing development. Table 9 TOTAL DAILY VEHICLE -MILES OF CAPACITY Principal Arterials 168.48 8,000 1,347,840 Minor Arterials 44.09 8,000 352,720 Collectors 101.96 8,000 815,680 Historic Collectors 32.15 8,000 257,200 Total 342.63 8,000 2,773,440 Source. Total lane -miles from Table 22; capacity per lane at LOS D from B WR, Traffic and Transportation Studyprepared for the City of Fayetteville, Arkansas, October 2003; total vehicle -miles of capacity IVMC) is lane -miles times capacity per lane. While there are a few individual road segments that appear to be over -capacity, the extent of existing segment -specific capacity deficiencies is relatively small compared to the total amount of daily travel. The bottom line, however, is that a segment -by -segment analysis of capacity deficiencies is not necessary or appropriate in the context of a consumption -based road impact fee. The system -wide ratio of capacity to demand is the appropriate level of service measure, and it is clear that the fees are based on a one-to- one ratio that is considerably lower than the existing ratio. As shown in Table 10, Fayettevillc's major road system currently has significantly more capacity than existing demand- Consequently, there are no existing deficiencies on a system -wide basis. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 14 Table 10 SYSTEMWIDE RATIO OF CAPACITY TO DEMAND Daily Vehicle -Miles of Capacity (VMC) 2,773,440 Daily Vehicle -Miles of Travel (VMT) 1,122,931 Systemwide Capacity/Demand Ratio 2.47 Source: VMT from Table 8; VMC from Table 9 COST PER SERVICE UNIT Right-of-way is the most variable component of road improvement costs, as well as the most common type of developer exaction for roads. If RO\V costs arc excluded from the impact fee calculations, the fees will be lower, and the City will not have to give credit against the fees for RO\V that is dedicated by developers. In order to give the City the option to include or exclude RO\V costs, the road impact fees will be calculated both ways in this report. The average cost to create an additional vehicle -mile of capacity can be derived by dividing the cost of a representative set of improvements by the additional capacity created by the improvements. Most of the planned capacity -expanding improvements are widening projects, and widening projects generally entail the reconstruction of the existing lanes. While this cost could be covered by impact fees under the argument that the reconstruction of the existing lanes is incidental to the primary purpose of adding capacity, the costs of lane reconstruction are excluded from the cost estimates in the following calculations. The cost of planned capacity -expanding road improvements to be undertaken by the City pursuant to the proposed road bond program, including construction, engineering and ROW costs, totals $80,550,000, as summarized in Table 11. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 15 Table 11 PLANNED ROAD IMPROI Crossover (Mission to City Limits) 0.81 2 5 2.43 $7,087,000 $7,087,000 Fifteenth Street (Happy Hollow to S. College) 1.61 2 4 3.22 $4,253,000 $4,693,000 Garland (North to Melmar) 0.70 2 5 2.10 $4,638,000 $6,338,000 Garland (Drake to Truckers) 0.53 2 5 1.59 $1,520,000 $1,630,000 Garland (1-540 to Howard Nickell) 0.57 2 5 1.71 $3,151,000 $3,371,000 Howard Nickell/Van Asche (Rupple to Garland) 2.18 2 4 4.36 $8,246,000 $9,291,000 Huntsville (Happy Hollow to Stonebridge) 0.66 2 4 1.32 $2,415,000 $2,470,000 Huntsville (Stonebridge to Falcon) 1.40 2 4 2.80 $7,046,000 $7,156,000 Mall Avenue (Joyce to Mud Creek) 0.28 2 3 0.28 $632,000 $832,000 Mount Comfort (Rupple to Alpine) 1.14 2 4 2.28 $4,663,000 $5,653,000 Rupple Road (6th to Persimmon) 1.70 0 5 8.50 $7,580,000 $6,155,000 Rupple Road (Persimmon to Wedington) 0.53 2 5 1.59 $1,438,000 $1,438,000 Rupple Road (Wedington to Mt. Comfort) 0.97 2 5 2.91 $6,941,000 $8,316,000 Rupple Road (Mt. Comfort to Howard Nickell) 1.59 3 5 3.18 $3,416,000 $3,581,000 Shiloh Drive (Cato Springs to Summerhouse) 0.66 0 3 1.98 $1,997,000 $2,237,000 Shiloh Drive (Mt. Comfortto Wedington) . 0.52 0 3 1.56 $3,231,000 $3,341,000 Van Asche (Greao to Garland) 1.63 2 5 4.89 $4,083,500 $4,961,000 " existing lanes not reconstructed Source: Proposed bond program information provided by City of Fayetteville, May 1, 2006; costs exclude cost to reconstruct existing lanes, estimated to cost $255,145 per lane -mile by City Engineer, July 28, 2005 memorandum. Dividing the average cost per lane -mule by the average capacity of a lane yields the average cost per vehicle -mile of capacity, as shown in Table 12. Table 12 ROAD COST PER SERVICE UNIT Source: Total cost and lane -miles from Table 11; daily capacity per lane from Table 9. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 16 REVENUE CREDITS In the calculation of impact fees, credit must be given for dedicated or intergovernmental revenues that will be generated by new development and used to pay for the same kind of facilities funded through the impact fees. In the case of road impact fees, revenue credits will be calculated for state and federal funding for City arterial and collector road improvements. No credit needs to be calculated for outstanding debt payments for road bonds, since the City has no outstanding debt for past road projects. Finally, a credit needs to be provided for sales tax revenues that will be used for capacity -expanding road improvements. A review of the 2025 Region/Transportation Plan indicates that all of the planned direct federal and state funding for the improvement of roads in Fayetteville is for state roads. Total federal and state funding for Fayetteville amounts to $2.6 trillion annually over the next 25 years, as shown in Table 13. Table 13 FEDERAL/STATE HIGHWAY FUNDING. 2001-2025 Hwy 112, Maple St to Hwy 112 S $1,500,000 AR 45, North St to City Limit $7,000,000 AR 16, Happy Hollow to W.F. Bridge $3,150,000 AR 180, Gregg to US 71 B $2,500,000 AR 265, AR 45 to N City Limits $11,000,000 AR 180, Township to US 71 $2,800,000 AR 112, North St to 1-540 $6,250,000 AR 112, 15th to Maple $2,800,000 AR 112, Razorback to Garland $2,500,000 AR 16, Meadowland to W City Limit $5,500,000 US 71 Flyover, College to US 71W $4,000,000 AR 16 Bypass, Washington to Happy Hollow $4,000,000 Total, 2001-2025 $64,750,000 Source: Northwest Arkansas Regional Planning Commission, 2025 Regional Transportation Plan for Metropolitan Northwest Arkansas, February 2001. An equally significant source of funding for City thoroughfares is the one -cent sales tax. As noted in the Background section, the sales tax is the primary source of funds for the City capital improvements program, and 34 percent of sales tax -funded capital improvements in the five-year CIP are for street and traffic signal improvements. The City plans on spending about $2.5 million annually in sales tax funds •on capacity -expanding road improvements over the five-year CIP period. Excluding expenditures for ROW acquisition, annual expenditures for construction are anticipated to be about $1.8 million, as shown in I able 14. duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 17 Table 14 Gregg Ave Mission & Maple Shiloh, Gregg & Fulbright Gregg Ave & Poplar St School & Archibald Huntsville/Happy Hollow Millsap Rd & North College West Avenue 8 Maple St Township* Mount Comfort Rd ROW/Intersec Cost Shares Mount Comfort Rd. Highway 265 ROW Morningside Dr & 15" St Zion/College to Frtg Rd Van Asche Blvd Gregg Ave & North St Old Wire & Old Missouri Mission & Old Wire College/Roll Hills/Appleby Traffic Signals Total Funding, 2004-2008 Township to Fulbright Intersection and Signalization Turn Lanes Intersection and Signalization Intersection Intersection Intersection Signalization Gregg to North College Widening 8 Turn Lanes Mission to Township at Shiloh Dr Mission to City Limits Signalization Intersection Steele Blvd to Gregg Ave Turn Lanes Intersection Intersection Intersection Various Inte ROW assumed to be 25% of total Source: City of Fayetteville, 2004-2008 Capital Improvements Pm gram, May 2004. $0 $150,000 $400,000 $175,000 $100,000 $650,000 $100,000 $100,000 $1,560,000 $900,000 $515,000 $0 $0 $221,000 $200,000 $950,000 $650,000 $324,000 $300,000 $800,000 $8,791,000 $360,000 $150,000 $400,000 $175,000 $100,000 $650,000 $100,000 $100,000 $2,080,000 $900,000 $515,000 $1,500,000 $1,511,000 $221,000 $200,000 $950,000 $650,000 $324,000 $300,000 $800,000 $12,682,000 Over the 25 -year period that is typical of the useful life of road improvements, new development will generate sales tax revenues and highway user fees that will be returned to the City in the form of State and Federal funding for capacity expandingroad improvements that is equivalent to about $57 per VMT generated by the new development. Excluding funding for RO\V, the revenue credit per VMTis about $48, as shown in Table 15. duneanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 18 Table 15 ROAD REVENUE CREDIT PER SERVICE UNIT Source: Annual Federal/State funding from Table 13: annual sales tax funding from Table 14: existing VMT from Table 8: discount rate for present value factor is average interest rate on 20 -year AAA municipal bonds as of May 31, 2004 according to bloomberg.com, fmsbonds.com, and bondsonline.com. In addition to its current road funding, the City intends to seek voter approval for a Transportation Bond Program of about $145 million funded by a dedicated one percent sales and use tax. The proposed sales and use tax is split into two parts: one-fourth percent that would be levied immediately and three -fourths percent that would be directed to the Transportation Bond Program once the Wastewater System Improvements Bonds are fully paid. The City also intends to use road impact fee revenues primarily to help refire the Transportation Bonds. The sales and use tax would expire when the bonds arc paid off. Of the total cost of the proposed bond program, only $81 million is eligible for impact fee funding ($72 million if ROW costs are excluded), as shown earlier in Table 11. Revenue from road impact fees, if adopted at the maximum levels calculated in this report, over the 20 -year life of the bonds could pay for the principal associated with these eligible projects. Based on the annual number of permits issued in recent years, the proposed road impact fees could generate $82 million to $90 million over 20 years, as shown in Table 21. Of course, actual revenues may be somewhat lower than these estimates, because the City will need to give credit against the fees whenever it requires new development to add capacity to the major road system by adding lanes to adjacent arterial or collector roads. As shown above, road impact fee revenues should be adequate to refire that portion of the debt service attributable to the principal associated with growth -related, impact fee -eligible projects. The sales tax revenues could be used for paying the interest costs for the growth -related projects and for principal and interest payments on the non -growth -related projects. Under this reasonable scenario, there is no need for a credit for the sales tax payments that would be generated by new development, because these payments would be going for interest costs, which are not included in the impact fee calculations, or for non -growth -related improvements, which are not eligible for impact fees. Clearly, new development would not be paying twice for growth -related improvements. In the event that the Council decides not to charge the maximum road impact fees, it is likely that some sales tax funding would be needed to fund some of the growth -related improvement cost. Even under these circumstances, however, a credit would not be warranted, because the impact fees are not covering the full impacts of new development, and the governing body is simply allowing new development to pay for some of its attributable costs through the sales tax instead of impact fees. duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 19 Subtracting the revenue credit from the cost per service unit yields the net cost per service unit. Depending on whether RO\V costs are included in the fees, the net cost per service unit ranges from $145 to $159 per daily vehicle -mile of travel. Table 16 ROAD NET Average Cost per VMT $193.62 $215.60 1 Revenue Credit per VMT $48.38 $57.00 Net Cost per VMT $145.24 $158.60 Source: Average cost per VMT from Table 12; revenue credit per VMT from Table 15. duneanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 20 TRAVEL DEMAND FACTORS The travel demand generated by specific land use types is a product of three factors: 1) trip generation, 2) percent primary trips and 3) trip length. The first two factors are well documented in the professional literature, and the average trip generation characteristics identified in studies of communities around the nation should be reasonably representative of trip generation characteristics in Fayetteville. In contrast, trip lengths arc much more likely to vary between communities, depending on the geographic size and shape of the community and its major roadway system. Trip generation rates were based on information published in the most recent edition of the Institute of Transportation Engineers' @TE) Trip Generation manual. Rates were established for specific land use types within the broader categories of residential, commercial, office/institutional and industrial land uses. Trip generation rates represent trip ends, or driveway crossings from the site of a land use. Thus, a one-way trip from home to work counts as one trip end for the residence and one trip end for the work place. To avoid over -counting, all trip rates have been divided by two. This places the burden of travel equally between the origin and destination of the trip and eliminates double -charging for any particular trip. Trip rates also need to be adjusted by a "primary trip factor" to exclude pass -by and diverted trips. This adjustment is intended to reduce the possibility of over -counting by only including primary trips generated by the development. Pass -by trips are those trips that are already on a particular route for a different purpose and simply stop at a particular development on that route. For example, a stop at a convenience store on the way home from the office is a pass -by trip for the convenience store. A pass -by trip does not create an additional burden on the street system and therefore should not be counted in the assessment of impact fees. A diverted trip is similar to a pass -by trip, but a diversion is made from the regular route to make an interim stop. The reduction for pass -by- and diverted trips was drawn from the ITE manual and other published information. The average trip length is the most difficult travel demand factor to determine. In the context of a road impact fee based on a consumption -based methodology, we are interested in determining the average length of a trip on the major roadway system within Fayetteville. This can be approximated by dividing the total daily travel demand (VNIT) on the major roadway system by the total number of average daily trips generated by existing development in the city. Existing land uses in each of six general categories are multiplied by average daily trip generation rates and summed to determine a reasonable estimate of total city-wide trips. Dividing the total vehicle -miles of travel (VM i) on the major roadway system determined from the inventory (see Table 22) by the estimated trips generated by existing land uses in Fayetteville yields a reasonable estimate of the average distance traveled on the City s major roadway system per daily trip, as shown in Table 17. duneanlassociates * Fayetteville\Road Impact Fee Study May 2, 2006, Page 21 Table 17 Single -Family Dwelling 14,633 4,79 70,092 Multi -Family Dwelling 15,281 3.32 50,733 Mobile Home Dwelling 855 2.50 2,138 Commercial 1,000 sq. ft. 7,647 9.98 76,317 Civic 1,000 sq. ft. 4-,246 6.15 26,113 Industrial 1,000 sq. ft. 6,571 3.48 22,867 Total Daily Trips 248,260 Total Daily VMT on Major Roadway System 1.122.931 Source: 2005 dwelling units from Table 7; nonresidential square feet from Washington County Assessor, 2004 plus new square footage permitted in 2004 from Fayetteville Planning Department, October 7. 2005; trip rates are one-half of average daily trip ends on a weekday reported in Institute of Transportation Engineers (ITE), Trip Generation, Seventh Edition, 2003 for ITE land use codes 210 (Single -Family Detached), 220 (Apartment), 240 (Mobile Home Park), 820 (Shopping Center), 710 (General Office Building), and 130 (Industrial Park): existing VMT from Table 8. The ratio of the average local trip length on Fayetteville's major roadway system to the national average trip length identified in the U.S. Department of Transportation's 2001 Nation/ 1-louseho/d Trave/Survey' is computed in Table 18. Fayetteville's, average trip length on the major roadway system is lower than thenational average because the major roadway system excludes travel on freeways/expressways, arterials and collectors outside the city limits, and local streets. Using this ratio, reasonable trip lengths were derived for specific trip purposes, including home -to -work trips, shopping, school/church and other personal trips. In addition, a residential trip length was determined, using a weighting of 40 percent work trips and 60 percent average trips. Table 18 AVERAGE TRIP LENGTH BY TRIP PURPOSE To or from work 12.07 na 0.46 5.6 Residential na na na 4.9 Doctor/Dentist - 9.78 na 0.46 4.5 Average 9.71 4.50 0.46 4.5 School/Church 7.42 na 0.46 3.4 Family/Personal 7.35 na 0.46 3.4 Sh000ina 6.56 na 0.46 3.0 Source: Average trip lengths in miles; national data from US. Department of Transportation, National Household TravelSurvey, 2001; local data from Table 17; ratio is average local divided by average national trip length; estimated local trip lengths are products of national data by ratio, estimated local residential trip length is weighted 40% local work trip length and 60% average trip length. duncantassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 22 Average daily travel demand must be estimated for a broad variety of land uses in order to develop the fee schedule. The result of combining trip generation rates, new trip factors and average trip lengths is a travel demand schedule that establishes the vehicle -miles of travel (VMT) during the average weekday generated byvarious land use types per unit of development. The recommended travel demand schedule is presented in Table 19. Table 19 TRAVEL DEMAND SCHEDULE Single -Family Detached 210 Dwelling 9.57 4.79 100% 4.9 23.47 Multi -Family 220 Dwelling 6.72 3.32 100% 4.9 16.27 Mobile Home/RV Park 240 Pad 4.99 2.50 100% 4.9 12.25 Hotel/Motel 310/320 Room 6.90 3.45 80% 4.9 13.52 Retail/Commercial 820 1000 sq. ft. 42.94 21.47 43% 3.0 27.70 Office/Institutional 710 1000 sq. ft. 11.01 5.51 75% 4.5 18.60 Nursing Home 620 1000 sq. ft. 6.10 3.05 75% 4.5 10.29 Church 560 1000 sq. ft. 9.11 4.56 75% 3.4 11.63 Industrial 130 1000 sq. ft. 6.96 3.48 95% 4.9 16.20 Warehouse 150 1000 sq. ft. 4.96 2.48 95% 4.9 11.54 Source: Trip Ends" is average daily trips (ADT) during weekday from Institute of Transportation Engineers (ITEI. Trip Generation. 7th ad., 2003; "1 -Way Trips" _ '/] Trip Ends; "ITE Code" is land use code from ITE manual used for land use category (where more than one code shown, rates were averaged): new trip percentage for. retail/commercial from ITE, Trip Generation Handbook, October 2003; percentages for other land uses taken from Kimley-Horn and Associates, Inc., Lee County Impact Fee Transportation Data, 1990; average trip lengths from Table 18; average trip length reduced by 50% for convenience stores and fast food restaurants; average trip length used for office uses and residential trip length used for industrial/warehousing uses. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 23 POTENTIAL FEES Based on the impact fee formula and the inputs calculated in this report, the maximum road impact fees per unit of development for various land uses, with and without ROW costs, are shown in Table 20. Impact fees could be adopted at less than 100 percent of the levels shown in the net cost schedules, provided that the reduction is applied uniformly across all land use categories in order to retain the proportionality of the fees. The impact fee ordinance will contain a provision allowing the option of independent fee determination studies for those applicants who can demonstrate that their development will have less impact on the need for road facilities than indicated by the fee schedule. Table 20 ROAD NET COST SCHEDULE Single -Family Detached Dwelling 23.47 $158.60 $145.24 $3,722 $3,409 Multi -Family Dwelling 16.27 $158.60 $145.24 $2,580 $2,363 Mobile Home/RV Park Pad 12.25 $158.60 $145.24 $1,943 $1,779 Hotel/Motel Room 13.52 $158.60 $145.24 $2,144 $1,964 Retail/Commercial 1000 sq. ft. 27.70 $158.60 $145.24 $4,393 $4,023 Office/Institutional 1000 sq. ft. 18.60 $158.60 $145.24 $2,950 $2,701 Nursing Home 1000 sq. ft. 10.29 $158.60 $145.24 $1,632 $1,495 Church 1000 sq, ft. 11.63 $158.60 $145.24 $1,845 $1,689 Industrial 1000 sq. ft. 16.20 $158.60 $145.24 $2,569 $2,353 Warehouse 1000 sq. ft. 11.54 $158.60 $145.24 $1,830 $1,676 Source: Daily VMT per unit from Table 19: net cost per VMT from Table 12. Based on the annual number of permits issued in recent years, annual road impact fee revenue could amount to $4.1 million to $4.5 million, as shown in Table 21. Over 20 years, the impact fees could generate $82 million to $90 million. These estimates include in -kind contributions from developers, for which they would get impact fee credit, so that cash revenues received by the City would likely be lower. duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 24 Table 21 POTENTIAL ROAD IMPACT FEE REVENUE Source: Potential fees from Table 20; average annual new residential units are averages for 2000-2004 from Table 6: average annual new nonresidential units are amounts permitted in 2004 from Fayetteville Planning Department, October 7. 2005. duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 25 APPENDIX A: MAJOR ROADWAY INVENTORY Table 22 MAJOR Archibald Yell Blvd 6th St 15th St 15th St Co. Rd. 649 College Ave College Ave College Ave College Ave College Ave College Ave Crossover Rd Crossover Rd Garland Ave Garland Ave Happy Hollow Rd Highway 112 Highway 112 Huntsville Rd Joyce Blvd Joyce Blvd Joyce Blvd Joyce Blvd Maple St Mission Blvd North St North St Old Missouri Rd Razorback Rd Razorback Rd Razorback Rd School Ave School Ave Steele Blvd Sunshine Rd Van Asche Dr Van Asche Dr Van Asche Dr Wedington Dr College Ave School Ave Happy Hollow Rd College Ave City Limits Archibald Yell Blvd North St Millsap Rd 560' S of Joyce Blvd 980' N of Joyce Blvd 1973' Sot City Limits Old Missouri Rd Mission Blvd 1-540 Wedington Dr Huntsville Rd 1,286 E of Cris Hollow 1-540 City Limits City Limits College Ave Frontage Rd 228'S of Front St Garland Ave North St Garland Ave Gregg Ave City Limits Maple St 15th St Ramp Archibald Yell Blvd 3,477' Sot Willoughby Van Asche Dr 1510'S Jess Anderson Highway 112 1,073' W of Gregg Ave 523' W of Steele Blvd City Limits School Ave 4 0.45 1.80 1.80 13,000 5,850 City Limits 5 3.45 17.25 17.25 25,330 87,389 College Ave 2 1.27 2.54 2.54 12,000 15,240 Razorback Rd 4 1.26 5.04 5.04 10,350 13,041 Persimmon St 2 1.00 2.00 0.00 n/a 0 North St 4 1.13 4.52 4.52 25,000 28,250 Millsap Rd 5 2.72 13.60 13.60 29,000 78,880 560' S of Joyce Blvd 4 0.97 3.88 3.68 35,000 33,950 980' N of Joyce Blvd 6 0.26 1.56 1.56 35,000 9,100 1973' Sot City Limits 4 0.51 2.04 2.04 35,000 17,850 City Limits 6 0.37 2.22 2.22 35,000 12,950 Mission Blvd 3 4.12 12.36 12.36 16,000 65,920 Huntsville Rd 5 2.39 11.95 11.95 14,250 34,058 Wedington Dr 2 2.03 4.06 4.06 11,000 22,330 Maple St 4 0.25 1.00 1.00 14,000 3,500 15th St 4 0.28 1.12 1.12 8,900 2,492 399' w/o D. Solomon 2 0.74 1.48 1.48 4,300 3,182 Van Asche Dr 2 0.81 1.62 1.62 5,300 4,293 Happy Hollow Rd 2 5.10 10.20 10.20 9,800 49,980 College Ave 5 0.76 3.80 3.80 18,000 13,680 Frontage Rd 6 0.09 0.54 0.54 18,000 1,620 228' S of Front St 5 0.11 0.55 0.55 19,000 2,090 Crossover Rd 4 1.37 5.48 5.48 8,900 12,193 Razorback Rd 2 0.25 0.50 0.50 15,000 3,750 City Limits 2 2.37 4.74 4.74 9,780 23,179 Gregg Ave 4 0.50 2.00 2.00 16,000 8,000 Mission Blvd 2 1.01 2.02 2.02 12,310 12,433 Crossover Rd 3 0.22 0.66 0.66 14,000 3,080 15th St 2 1.50 3.00 3.00 11,250 16,875 Ramp 5 0.84 4.20 4.20 6,100 5,124 Highway 71 3 0.09 0.27 0.27 6,100 549 3,477'S of Willoughby 5 3.33 16.65 16.65 10,700 35,631 City Limits 4 0.65 2.60 2.60 7,800 5,070 Joyce Blvd 4 0.50 2.00 0.00 n/a 0 Adams Rd 2 0.33 0.66 0.00 n/a 0 244' E of 1-540 2 0.24 0.48 0.48 1,100 264 Gregg Ave 2 0.20 0.40 0.40 1,100 220 Steele Blvd 4 0.10 0.40 0.40 1,100 110 709' W of 46th Ave 2 1.76 3.52 3.52 7,800 13,728 duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 26 Wedington Dr 709 W of 46th Ave Shiloh Dr 5 1.19 5.95 5.95 14,793 17,604 Wedington Dr Shiloh Dr Garland Ave 4 1.58 6.32 6.32 15,500 24,490 Willoughby Rd 3981' E of School Ave School Ave 2 0.75 1.50 0.00 n/a 0 Subtotal, Principal Arterials 168.48 162.32 687,943 Black Oak Rd Armstrong Rd City Limits 2 1.79 3.58 3.58 5,000 8,950 Armstrong Rd 15th St Black Oak Rd . 2 1.08 2.16 2.16 5,000 5,400 Cato Springs Rd School Ave Razorback Rd 2 0.99 1.98 1.98 1,700 1,683 Dead Horse Mtn Rd Goff Farm Rd City Limits 2 1.14 2.28 2.28 800 912 Deane St Garland Ave Porter Rd 2 1.00 2.00 2.00 6,100 6,100 Double Springs Rd City Limits 299' N of Dot Tipton Rd 2 0.90 1.80 0.00 n/a 0 Drake St Gregg Ave Garland Ave 2 0.78 1.56 1.56 5,200 4,056 Gregg Ave City Limits 1103'S of City Limits 4 0.21 0.84 0.84 6,000 1,260 Gregg Ave 1103'S of City Limits Township St 2 1.72 3.44 3.44 16,000 27,520 Gregg Ave. Township St North St 4 1.30 5.20 5.20 19,000 24,700 Huntsville Rd Mashburn Ave Happy Hollow Rd 2 0.73 1.46 1.46 10,000 7,300 Mount Comfort Rd City Limits 1-540 2 1.81 3.62 3.62 8,200 14,842 Old Wire Rd Mission Blvd Skillern Rd 2 2.64 5.28 5.28 8,400 22,176 Porter Rd Deane St Shiloh Dr 2 0.36 0.72 0.72 6,800 2,448 Pump Station Rd 567' E of City Lake Rd Armstrong Rd 2 0.67 1.34 0.00 n/a 0 Rupple Rd 174' N of Double Tree Mount Comfort Rd 2 0.42 0.84 0.00 n/a 0 Rupple Rd Rupple Rd Persimmon St 2 1.14 2.28 0.00 n/a 0 Shiloh Dr Steele Blvd Gregg Ave 2 0.39 0.78 0.00 n/a 0 Skillern Rd Old Wire Rd City Limits 2 0.65 1.30 1.30 7,830 5,090 Steele Blvd Shiloh Dr Van Asche Dr 3 0.25 0.75 0.00 n/a 0 Subtotal, Minor Arterials 44.09 36.30 137,277 Betty Jo Dr Persimmon St Wedington Dr 2 0.51 1.02 0.00 n/a 0 Beechwood Ave 15th St 18th St 2 0.25 0.50 0.00 n/a 0 Austin Dr Ash St Poplar St 2 0.15 0.30 0.00 n/a 0 Ash St Walnut Ave Samantha 2 0.58 1.16 0.00 n/a 0 Appleby Rd Gregg Ave Plainview Ave Ext. 2 1.03 2.06 0.00 n/a 0 15th St Beachwood Ave Razorback Rd 2 0.22 0.44 0.00 n/a 0 18th St Futrall Dr Beechwood Ave 2 .0.26 0.52 0.00 n/a 0 54th Ave Persimmon St Wedington Dr 2 0.65 1.30 0.00 n/a 0 59th Ave Wedington Dr 1071' N of Wedington Dr 2 0.20 0.40 0.00 n/a 0 Brooks Ave 15th St Boone St 2 0.21 0.42 0.00 n/a 0 Broyles Ave City Limits Persimmon 2 1.25 2.50 0.00 n/a 0 Cato Springs Rd Highway 71 1-540 3 0.18 0.54 0.00 n/a 0 Cato Springs Rd 1-540 City Limits 2 0.58 1.16 0.00 n/a 0 Charlee Ave Mission Blvd Charlee Ave Ext. 2 0.23 0.46 0.00, n/a 0 City Lake Rd Pump Station Rd Willoughby Rd 2 1.39 2.78 2.78 1,600 2,224 Cliffs Blvd - Crossover Blvd 218' W of Crossover 4 0.04 0.16 0.00 n/a 0 Cliffs Blvd 218' W of Crossover Happy Hollow Rd 4 0.48 1.92 0.00 n/a 0 duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 27 Deane Solomon Rd Dinsmore Trl Drake St Drake St Ernie Jacks Blvd Front St Frontage Rd Futrall Dr Futrall Dr Futrall Dr Futrall Dr Garland Ave Garrett Dr Goff Farm Rd Gypsum Dr Happy Hollow Rd Happy Hollow Rd Harold St Hollywood Ave Joyce St Leverett Ave Longview St Mall Ave Mall Ave Mally Wagnon Rd Mcconnell Ave Miller St Millsap Rd Millsap Rd Monte Painter Dr Morningside Dr New Bridge Rd Northhills Blvd Old Farmington Rd Old Missouri Rd Old Wire Rd Persimmon St Plainview Ave Poplar St Porter Rd Raven Ln Roberts Rd Rolling Hills Dr Rupple Rd Salem Rd West Mount Comfort Rd 6th St McConnell 1,278' W of Gregg Ave Garland Ave Millsap Rd Joyce Blvd Wedington Dr Freeway Ramp 455' S of 6th St Gregg Ave Cato Springs Rd Ernie Jacks Blvd Dead Horse Mtn Rd Salem Rd Cliffs Blvd 886 S of Cliffs Blvd College Ave 6th St Joyce Blvd North St Plainview Ave Joyce Blvd 1,211'S of Joyce Blvd City Limits Knapp Dr Yates Ave Futrall Dr 504' E of Plainview Ave Northhills Blvd Huntsville Rd 155' E of High Ave Monte Painter Dr 6th St Old Wire Rd City Limits 46th St 367'S of Kenray St Yates Ave Wedington Dr Mount Comfort Rd Huntsville Rd College Ave 600'S of New Bridge Deane Solomon Rd Highway 112 2 1.76 3.52 3.52 1,100 1,936 City Limits 2 0.40 0.80 0.00 n/a 0 Garland Ave 2 0.15 0.30 0.00 n/a 0 Highway 71 4 0.62 2.48 0.00 n/a 0 314'W of GarrettDr 2 0.13 0.26 0.00 n/a 0 Joyce Blvd 2 0.62 1.24 0.00 n/a 0 Zion Rd 2 0.49 0.98 0.98 8,000 3,920 Freeway Ramp 2 1.74 3.48 3.48 4,000 6,960 455'S of 6th St 3 0.21 0.63 0.63 3,200 672 18th St 2 0.54 1.08 1.08 3,200 1,728 Millsap Rd 2 0.60 1.20 0.00 n/a 0 Brooks Ave 2 0.33 0.66 0.00 n/a 0 1,353' E of Leverett Ave 2 0.36 0.72 0.00 n/a 0 City Limits 2 0.80 1.60 0.00 n/a 0 Raven Ln 2 0.28 0.56 0.00 n/a 0 886'S of Cliffs Blvd 4 0.17 0.68 0.00 n/a 0 Huntsville Rd 2 0.55 1.10 1.10 480 264 Stubblefield Rd 2 0.25 0.50 0.00 n/a 0 1210'S of 6th St 2 0.23 0.46 0.00 n/a 0 City Limits 2 0.45 0.90 0.00 n/a 0 Garrett Dr 2 0.96 1.92 1.92 6,800 6,528 College Ave 2 0.15 0.30 0.00 n/a 0 1,211'S of Joyce Blvd 2 0.23 0.46 0.00 n/a 0 Shiloh Dr 3 0.29 0.87 0.00 n/a 0 Huntsville Rd 2 0.25 0.50 0.00 n/a 0 Drake St 2 0.52 1.04 0.00 n/a 0 Gregg Ave 2 0.11 0.22 0.00 n/a 0 504' Eat Plainview Ave 3 0.36 1.08 0.00 n/a 0 Vantage Dr 2 0.32 0.64 0.00 n/a 0 Wimberly Dr 2 0.16 0.32 0.00 n/a 0 Pump Station Rd 2 0.96 1.92 0.00 n/a 0 Settlemen Ln 2 0.51 1.02 0.00 n/a 0 Futrall Dr 4 0.21 0.84 0.00 n/a 0 Shiloh Dr 2 0.88 1.76 0.00 n/a 0 Zion Rd 3 2.01 6.03 6.03 6,600 13,266 1,570' N of Skillern Rd 2 0.46 0.92 0.92 1,700 782 54th Ave 2 0.75 1.50 0.00 n/a 0 Millsap Rd 2 0.34 0.68 0.00 n/a 0 College Ave 2 0.37 0.74 0.00 n/a 0 Deane St 2 0.58 1.16 1.16 2,200 1,276 145' N of Quail Dr - 2 0.22 0.44 0.00 n/a 0 City Limits 2 0.16 0.32 0.00 n/a 0 Old Missouri Rd 2 0.71 1.42 1.42 11,000 7,810 Old Mt Comfort 2 0.44 0.88 0.00 n/a 0 City Limits 2 0.15 0.30 0.00 n/a 0 duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 28 m Rd North m Rd North antha Ave )herd In )h Dr )h Dr )h Dr )h Dr )h Dr )h Dr )h Dr )h Dr Dr ms St blefield Rd )ridge Dr amore St amore St amore St nship St ker's Dr Asche Dr age Dr age Dr Willoughby Rd Wimberly Dr Wyman Rd Yates Ave Zion Rd Subtotal, Collectors City Limits 1.984'S of Mt Comfort 116'S of Ash St Frontage Rd Joyce Blvd Mall Ave Highway 112 1,678' N of Wedington 433' N of 6th St 6th St 345' S of 6th St 326'S of Cato Springs Mission Blvd Joyce Blvd Harold St Villa Blvd Garland Ave Leverett Ave Gregg Ave College Ave Gypsum Dr Steele Blvd Stearns St Joyce Blvd Sycamore St City Lake Rd Monte Painter Dr City Limits Poplar St City Limits Mount ComfortRd 2 1.16 2.32 0.00 n/a 0 Wedington Dr 2 0.67 1.34 0.00 n/a 0 Ash St 2 0.02 0.04 0.00 n/a 0 195' E of Frontage Rd 2 0.04 0.08 0.00 n/a 0 1,157' S of Joyce Blvd 2 0.22 0.44 0.00 n/a 0 Steele Blvd 3 0.39 1.17 0.00 n/a 0 1,925'S of Mt Comfort 2 1.73 3.46 0.00 n/a 0 433' N of 6th St 2 2.02 4.04 4.04 620 1,252 6th St 4 0.08 0.32 0.32 3,700 296 345'S of 6th St 3 0.07 0.21 0.00 n/a ' 0 2,010' N of Cato Springs 2 1.09 2.18 0.00 n/a 0 End of Shiloh Dr 2 0.23 0.46 0.00 n/a 0 City Limits 2 0.64 1.28 1.28 n/a 0 120' E of Remington Dr 2 0.11 0.22 0.22 n/a 0 Old Missouri Rd 2 0.56 1.12 1.12 n/a 0 College Ave 2 0.08 0.16 0.00 n/a 0 LeverettAve 2 0.25 0.50 0.50 5,100 1,275 Gregg Ave 4 0.32 1.28 1.28 8,200 2,624 Walnut Ave 2 0.68 1.36 1.36 5,150 3,502 Crossover Rd 2 1.75 3.50 3.50 8,400 14,700 Crystal Spgs subdiv 2 0.17 0.34 0.00 n/a 0 Mall Ave 3 0.37 1.11 0.00 n/a 0 Zion Rd 2 0.37 0.74 0.00 n/a 0 169' N of Joyce Rd 2 0.03 0.06 0.00 n/a 0 Ash St 2 0.13 0.26 0.00 n/a 0 135' S of City Lake 2 0.03 0.06 0.00 n/a 0 Futrall Dr 2 0.23 0.46 0.00 n/a 0 Crossover Rd 2 0.84 1.68 0.00 n/a 0 Miller St 2 0.07 0.14 0.00 n/a 0 College Ave 2 1.78 3.56 3.56 7,100 12,638 101.96 42.20 83,653 Block Ave Dickson St Center St 2 0.25 0.50 0.00 n/a 0 Block Ave Center St Mountain St 1 0.05 0.05 0.00 n/a 0 Assembly Rd Skyline Dr Mission Blvd 2 0.60 1.20 1.20 400 240 6th St School Ave Huntsville Rd 2 0.72 1.44 1.44 8,100 5,832 11th St Duncan Ave Hill Ave 2 0.08 0.16 0.16 1,200 96 Arkansas Ave Dickson St Maple St 2 0.25 0.50 0.50 8,900 2,225 California Blvd Center St Leroy Pond Rd 2 0.36 0.72 0.00 n/a 0 Center St California Blvd Block Ave 2 0.67 1.34 1.34 5,000 3,350 Center St Block Ave East Ave 1 0.05 0.05 0.05 5,000 250 Center St East Ave College Ave 2 0.10 0.20 0.20 5,000 500 Cleveland St Sang Ave Arkansas Ave 2 1.15 2.30 2.30 3,300 3,795 College Ave Rock St 15th St 2 0.87 1.74 1.74 2,300 2,001 Dickson St Fletcher Ave College Ave 2 0.42 0.84 0.84 5,000 2,100 duncanIassociates Fayetteville\RoadImpact Fee Study May 2, 2006, Page 29 Dickson St College Ave Arkansas Ave 2 0.60 1.20 1.20 11,000 6,600 Duncan Ave 15th St 11th St 2 0.25 0.50 0.50 1,200 300 East Ave Mountain St Dickson St 1 0.30 0.30 0.30 7,000 2,100 Fletcher Ave Dickson St Lafayette St 2 0.15 0.30 0.00 n/a 0 Government Ave Prairie St 6th St 2 0.09 0.18 0.18 560 50 Greenview Dr Mission Blvd Viewpoint Dr 2 0.13 0.26 0.00 n/a 0 Hill Ave 6th St 11th St 2 0.31 0.62 0.62 200 62 Huntsville Rd Mill Ave Mashburn Ave 2 0.39 0.78 0.00 n/a 0 Lafayette St Mission Blvd Arkansas Ave 2 1.04 2.08 2.08 7,800 8,112 Leroy Pond Dr California Blvd Razorback Rd 2 0.21 0.42 0.00 n/a 0 Leverett Ave Maple St North St 2 0.50 1.00 1.00 7,800 3,900 Maple St Mission Blvd Garland Ave 2 1.43 2.86 2.86 13,000 18,590 Mashburn Huntsville Rd 6th St 2 0.03 0.06 0.00 n/a 0 Mill Ave Rock St Huntsville Rd 2 0.08 0.16 0.00 n/a 0 Mission Blvd Lafayette St North St 2 0.60 1.20 1.20 12,000 7,200 Mountain St School Ave Block Ave 2 0.21 0.42 0.00 n/a 0 Mountain St Block Ave East Ave 1 0.05 0.05 0.00 n/a 0 Mountain St East Ave College Ave 2 0.10 0.20 0.00 n/a 0 Pembroke Rd Rockwood Trail Ridgeway Dr 2 0.27 0.54 0.54 450 122 Prairie St West Ave Government Ave 2 0.12 0.24 0.00 n/a 0 Ridgeway Dr Pembroke Rd Viewpoint Dr 2 0.16 0.32 0.00 n/a 0 Rock St College Ave Mill Ave 2 0.10 0.20 0.20 4,400 440 Rockwood Trail Mission Blvd Pembroke Rd 2 0.69 1.38 1.38 400 276 Sang Ave Cleveland St Wedington Dr 2 0.25 0.50 0.00 n/a 0 School Ave Dickson St Archibald Yell Blvd 2 0.58 1.16 1.16 3,000 1,740 Skyline Dr Assembly Rd Assembly Rd 2 0.88 1.76 1.76 190 167 Viewpoint Dr Ridgeway Dr Viewpoint Dr 2 0.47 0.94 0.94 520 244 West Ave Prairie St Lafayette St 2 0.74 1.48 0.00 n/a 0 Subtotal, Historic Collectors 32.15 25.69 70,292 Total 346.68 266.51 979,166 Source: Segment descriptions, number of lanes and segment length in miles from City of Fayetteville Public Works Department. verified June 21. 2004; total lane -miles is product of lanes times miles; lane -miles with counts is lane -miles for segments with traffic counts; ADT is annual average dailytraffic estimates from Arkansas State Highway and Transportation Department, "2002 Traffic Volumes Map of Fayetteville -Springdale. Washington and Benton Counties" or. where 2002 counts not available. 1992 estimated volumes from DeShazo. Starek 8 Tang. Inc.. Prioritization of Roadway Improvements in Fayetteville, Arkansas. August 1992; VMT is product of miles times ADT. duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 30 APPENDIX B: ARKANSAS IMPACT FEE ENABLING ACT ARKANSAS CODE, TITLE 14, CHAPTER 56, SUBCHAPTER 1 14-56-102. Development impact fees. (a) As used in this section: (1) "Capital plan" means a description of new public facilities or of new capital improvements to existing public facilities or of previous capital improvements to public facilities that continue to provide capacity available for new development that includes cost estimates, and capacity available to serve new development; (2) "Development" means any residential, multi -family, commercial, or industrial improvement to lands within the municipality or within the municipal service agency's area of service; (3) "Development impact fee" means: (A) A fee or charge imposed by the municipality or by a municipal service agency upon or against a development in order to generate revenue for funding or for recouping expenditures of the municipality or municipal service agency that are reasonably attributable to the use and occupancy of the development; and (13) Shall not include any ad valorem real property taxes, any special assessments for an improvement district, any utility hookup fees or access fees, or any fees for filing development plats or plans, for building permits or for construction permits assessed by a municipality or a municipal service that are approximately equal to the cost of the plat, plan, or permit review process to the municipality or the municipal service agency; (4) "Municipality" means a city of the first class, city of the second class, or an incorporated town; (5) "Municipal service agency" means: (A) Any department, commission, utility or agency of a municipality, including any municipally -owned or controlled corporation; (13) Any municipal improvement district, consolidated public or municipal utility system improvement district, or municipally -owned nonprofit corporation that owns or operates any utility service; (C) Any municipal water department, waterworks or joint waterworks, or a consolidated waterworks system operating under the Consolidated Waterworks Authorization Act; (D) Any municipal wastewater utility or department; duncanIassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 31 (E) Any municipal public facilities board; or (F) Any of these municipal entities operating with another similar entity under a interlocal agreementin accordance with §§ 25-20-101 through 25-20-108 or §§ 25-20-201 through 25- 20-207; (6) "Ordinance" means an municipal impact fee ordinance of municipality or an authorizing rate resolution by a board of commissioners ofa consolidated waterworks system authorized to set rates for its customers under the Consolidated Waterworks Authorization Act; (7) "Public facilities" means publicly -owned facilities that are one (1) or more of the following systems, or a portion of those systems: (A) Water supply, treatment, and distribution, for either domestic water or for suppression of fires; (B) Wastewater treatment and sanitary sewerage; (C) Stormwater drainage; (D) Roads, streets, sidewalks, highways and public transportation; (E) Library; (F) Parks, open space, and recreation areas; (G) Police or public safety; (H) Fire protection; and (I) Ambulance or emergency medical transportation and response. (b) A municipality or a municipal service agency may assess, by ordinance, a development impact fee to offset costs to the municipality or to a municipal service agency that are reasonably attributable to providing necessary public facilities to new development. (c) (1) A municipality or municipal service agency may assess, collect, and expend development impact fees only for the planning, design and construction of new public facilities or of capital improvements to existing public facilities that expand its capacity or for the recoupment of prior capital improvements to public facilities that created capacity that is available to serve new development. (2) The development impact fee may be pledged to the payment of bonds issued by the municipality or municipal service agency to finance capital improvements or public facilities for which the development impact fee may be imposed. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 32 (3) No development impact fee shall be assessed for, or expended upon, the operation or maintenance of any public facility, or for the construction or improvement of public facilities, that does not create additional capacity. (d) (1) A municipality or a municipal service agency may assess and collect impact fees only from new development and only against a particular new development in reasonable proportion to the demand for additional capacity in public facilities that are reasonably attributable to the use and occupancy of that new development. (2) The owner, resident, or tenant of a property that was assessed an impact fee and paid it in full shall have the right to make reasonable use of all public facilities that were financed by the impact fee. (e) (1) A municipality or municipal service agency may assess, collect, and expend impact fees only under a development impact fee ordinance adopted and amended under this section. (2) A development impact fee ordinance shall be adopted or amended by the governing body of a municipality or municipal service agency only after the municipality or a municipal service agency has adopted a capital plan and level of service standards for all of the public facilities that are to be so financed. (3) The development impact fee ordinance shall contain: (A) A statement of the new public facilities and capital improvements to existing public facilities that are to be financed by impact fees and the level of service standards included in the capital plan for the public facilities that are to be financed with impact fees; (13) The actual formula or formulas for assessing the impact fee, which shall be consistent with the level of service standards; (C) The procedure by which impact fees are to be assessed and collected; and (D) The procedure for refund of excess impact fees, in accordance with subsection (h) of this section. (E] (1) The municipality or municipal service agency shall collect the development impact fee at the time and manner and from the party as prescribed in the ordinance and shall collect the fee separate and apart from any other charges to the development. (2) (A) A development impact fee shall be collected at either the closing on the property by the owner or the issuance of a certificate of occupancy by the municipality." (13) However, a municipal water or wastewater department, waterworks, or joint waternrorks, or a consolidated waterworks system operating under the Consolidated Waterworks duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 33 Authorization Act may collect a development impact fee in connection with and as a condition to the installation of the water meter serving the property. (3) At closing, the development impact fee that has been paid or will be paid for the property shall be separately enumerated on the closing statement. (4) The ordinance may include that the development impact fee may be paid in installments at a reasonable interest rate for a fixed number of years or that the municipality or municipal service agency may negotiate agreements with the owner of the property as to the time and method of paying the impact fee. (g) (1) The funds collected under a development impact fee ordinance shall be deposited into a special interest -bearing account. (2) The interest earned on the moneys in the separate account shall be credited to the special fund and the funds deposited into the special account and the interest earned shall be expended only in. accordance with this section. (3) No other revenues or funds shall be deposited into the special account. (h) (1) The municipality or municipal service agency shall refund the portion of collected development impact fees, including the accrued interest, that has not been expended seven (7) years from the date the fees were paid. (2) (A) A refund shall be paid to the present owner of the of the property that was the subject of new development and against which the fee was assessed and collected. (B) Notice of the right to a refund, including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property not later than thirty (30) days after the date which the refund becomes due. (C) The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice. (3) (A) The refund shall be made on a pro rata basis, and shall be paid in full not later than ninety (90) days after the date certain upon which the refund becomes due. (B) If the municipality or municipal service agency does not pay a refund in full within the period set in this subsection to any person entitled to a refund, that person shall have a cause of action against the municipality for the refund or the unpaid portion in the circuit court for the county in which the property is located. (i) (1) (A) On and after the effective date of this section, a municipality or municipal service agency shall levy and collect a development impact fee only if levied and collected under ordinances enacted in compliance with this section. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 34 (B) Beginning January 1, 2004, a municipality or municipal service agency shall collect development impact fees under ordinances enacted before the effective date of this section or under ordinances amended after the effective date of this section only if collected in compliance with subsections (0, (g), and (h) of this section. (2) However, except for the compliance with the collection requirements under subsections (f), (g), and (h) of this section, this section does not invalidate any development impact fee or a similar fee adopted by a municipality or municipal service agency before the effective date of this section, nor does this section apply to funds collected under any development impact fee or similar fee adopted before the effective date of this section. (3) In addition, a municipality with a park land or green space ordinance that has been in existence for ten (10) years on the effective date of this section, and any amendments to the ordinance, which allows the option to pay a fee or to dedicate green space or park land in lieu of a fee may continue to be administered under the existing ordinance. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 35 City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 1/2/2007 City Council Meeting Date Tim Conklin - Planning and Development Mgt. Operations Submitted By Division Department Action Required: AN ORDINANCE TO AMEND TITLE XV UNIFIED DEVELOPMENT CODE OF FAYETTEVILLE, CHAPTER 159. FEES BY ENACTING §159.05 ROAD IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE AND TO REFER THIS ORDINANCE TO THE VOTERS FOR THEIR ADOPTION OR REJECTION. 1 1((a /f'% q473 Cost of this request Account Number E Cd Category / Project Budget Funds Used to Date Program Category / Project Name Program / Project Category Name Project Number Remaining Balance Fund Name Budgeted Item EJ Budget Adjustment Attached Previous Ordinance or Resolution # js Department Dir ctor Date Original Contract Date: Original Contract Number:' j'(- ,( ! on I,t /.tad,n t ///a7 City Council Meeting of January 2, 2007 Agenda Item Number CITY COUNCIL AGENDA MEMO TO: Mayor Dan Coody Fayetteville City Council ,! FROM: Tim Conklin, Planning and Development Management Director DATE: December 15, 2006 SUBJECT: AN ORDINANCE TO AMEND TITLE XV UNIFIED DEVELOPMENT CODE OF FAYETTEVILLE, CHAPTER 159. FEES BY ENACTING §159.05 ROAD IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE AND TO REFER THIS ORDINANCE TO THE VOTERS FOR THEIR ADOPTION OR REJECTION. RECOMMENDATION ' f Approval of an ordinance to amend Title XV Unified Development Code of Fayetteville, Chapter 159. Fees by enacting § 159.05 Road Impact Fees of the Unified Development Code and to refer this ordinance to the voters for their adoption or rejection. BACKGROUND The City Council passed Resolution No. 114-06 to accept and adopt the May 2006 Road Impact fee Study by Duncan and Associates. Duncan Associates updated the Road Impact Fee study based on the estimated street bond program costs as proposed in 2006. The road projects that expand capacity of the roadway are included in the in the methodology to calculate the impact fees. The fees are calculated with and without right-of-way costs. ORDINANCE NO. AN ORDINANCE TO AMEND TITLE XV UNIFIED DEVELOPMENT CODE OF FAYETTEVILLE, CHAPTER 159. FEES BY ENACTING §159.05 ROAD IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE AND TO REFER THIS ORDINANCE TO THE VOTERS FOR THEIR ADOPTION OR REJECTION WHEREAS, the protection of the health, safety, and general welfare of the citizens of Fayetteville require that the streets and roads identified in the Capital Improvement Program, the 2003 Traffic and Transportation Study, and the 2006 Sales Tax Bond Proposal (collectively hereinafter "Capital Plan") as a Public Facility of the City be expanded and improved to meet the demands of new development; and WHEREAS, the creation of an equitable development impact fee system would enable the City to generate revenue for funding or for recouping the costs of required Capital Plan's capacity improvements that those developments create; and WHEREAS the City has comprehensively studied the future needs of its citizens and what the City needs to do to meet those needs and adopted a Comprehensive General Plan, the 2025 Plan. The City also annually updates its Capital Improvement Program list of future necessary capital improvements for all city services including streets and roads; and WHEREAS, the City commissioned an in-depth Road Impact Fee Study designed to study future street and road capital needs, and the fair and equitable proportion of those capacity improvement needs that new development should pay. This Impact Fee Study was completed in September 23, 2005, and later adopted by the City Council; and WHEREAS, the Road Impact Fee Study sets forth reasonable methodologies and analyses for determining the impacts of various types of development on the City's need for additional road capacity improvements; and WHEREAS, the Road Impact Fees described in this Ordinance are based on the Impact Fee Study, and are designated to generate revenue for funding or for recouping expenditures by the City of Fayetteville that are reasonably attributable to the use and occupancy of the new developments that will pay the fees; and WHEREAS, the Master Street Plan and the Capital Plan constitute an interrelated system that provides service throughout Fayetteville, and it is therefore appropriate and proper to treat the entire city as a single service area; and WHEREAS, there is both a rational nexus and a rough proportionality between the development impacts created by each type of new development covered by this Ordinance and the impact fees that such development will be required to pay; and WHEREAS, this Ordinance creates a system by which Road Impact Fees paid by new developments will be used so that the new development that pays each fee will receive a corresponding benefit within a reasonable period of time after the fee is paid. NOW, THEREFORE, BE IT ENACTED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville. Arkansas hereby amends Chapter 159 of the Unified Development Code by enacting §159.05 Road Impact Fees as shown on Exhibit A attached hereto. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby refers to the people of the City of Fayetteville the above proposed ordinance enacting §159.05 Road Impact Fees for their adoption or rejection in an election to be held within the City of Fayetteville pursuant to Amendment 7 of the Arkansas Constitution on or about the 10th day of April, 2007. If a majority of electors vote to adopt the proposed ordinance, then §159.05 Road Impact Fees shall then become the law in Fayetteville effective on July 1, 2007. If a majority of electors vote to reject the proposed ordinance, the Road Impact Fees will not go into effect and §159.05 shall not be enacted. PASSED and APPROVED this 2"d day of January, 2007. APPROVED: By: DAN COODY, Mayor ATTEST: By: SONDRA SMITH, City Clerk N*94awl 1 ti it Irani 159.05 Road Impact Fees (A) Applicability (1) The following provisions shall apply to all of the territory within the City's corporate city limits, and any area near the corporate limits if specifically agreed by the owner. (2) The following types of development shall be required to pay a Road Impact Fee: (a) New development within one of the categories of development in Table A. (b) Redevelopment involving the construction of one or more additional units within one of the categories of development in Table A. (B) Intent (1) The intent of the Road Impact Fee is to offset costs to the City of Fayetteville taxpayers that are reasonably attributable to providing necessary capacity improvements to collector or arterial streets to serve new developments. (2) This impact fee charged to new development is to generate revenue for funding or recouping expenditures of the City of Fayetteville that are reasonably attributable to the use and occupancy of the new development. (3) This impact fee is to be collected and expended only for the planning, design or construction of new collector or arterial streets or of capital improvements to existing collector or arterial streets that expand their capacity or for the recoupment of prior capital improvements to such collector or arterial streets that created capacity available to serve new development. (4) the intent of this impact fee requirement is to ensure that new development bears a proportionate share of the costs of capacity improvements to the collector and arterial streets, but also to ensure that this proportional share does not exceed the costs of the demand for additional capacity in those streets that is reasonably attributable to providing these streets to the use and occupancy of that new development. 5) This road impact fee is based upon previous and current City Five Year Capital Improvement Program documents approved annually by City Council Resolution, the 2003 Traffic and Transportation Study, and the Sales Tax Bond Proposal for street improvements (hereinafter collectively referred to as the "Capital Plan") and level of service standards adopted within the Road Impact Fee Study of September, 2005 and elsewhere by the City Council. Pages 10 through 24 of the Impact Fee Study are incorporated herein and attached as Exhibit I to explain the methodology and formulas for the Road Impact Fees, the levels of services and increases in capacity needed for the Capital Plan. (6) It is not the intent of this section that any monies collected for the road impact fee ever be commingled or ever be used for a type of facility different from that for which the fee was paid. No impact fee revenue may be used for operational expenses. (C) Time of Collection This impact fee shall be paid to the City by the owner of the property before a certificate of occupancy is issued for the new development or at the closing on the property by the purchasing owner. (D) Fee Determination (I) Road Impact Fee Table. The Impact Fee Administrator shall determine the correct amount of the Road Impact Fee by use of Table A and information about the type and size of the new development. EXHIBIT "A" TABLE A ROAD IMPACT FEES Impact Land Use Unit Fee Single -Family Detached Dwelling $3,409 Multi -Family Dwelling $2,363 Mobile Home Park Pad $1,779 Hotel/Motel Room $1,964 Retail/Commercial 1000 sq. ft. $4,023 Office/Institutional 1000 sq. ft. $2,701 Nursing Home 1000 sq. ft. $1,495 Church 1000 sq. ft. $1,689 Industrial 1000 sq. ft. $2,353 Warehouse 1000 sq. ft. $1,676 Mini -Warehouse 1000 sq. ft. $ 587 (2) Redevelopment, Reconstruction, Change of Use. In the event of a redevelopment, reconstruction or change of use from an existing development or use, the fee shall be the difference between what the fee would be for the entire redevelopment or reconstruction project and what the fee would have been for the existing development or use. Enlargement of a single family home will not require any impact fee. (3) Mixed Use. If the proposed development includes a mix of the residential, commercial, industrial or other uses listed in the impact fee schedule, the fee shall be determined by adding up all the road impact fees that would be applicable for each use type as if it was a freestanding land use type. (4) Affordable Housing Exemption. (a) Single family housing. Construction of single family housing funded wholly or primarily by federal Community Development Block Grants, non-profit service organizations such as Habitat for Humanity, Housing and Urban Development housing loans and similar programs designed to provide affordable, owner - occupied, single family residences to low income individuals shall be exempted from payment of impact fees pursuant to this ordinance by the Impact Fee Administrator. (b) Appeal. A person aggrieved by the Impact Fee Administrator's refusal to grant an Affordable Housing Exemption may appeal the denial to the Planning Commission. (E) Use of Fees. (1) Establishment of Accounts. A Road Impact Fee Fund that is distinct from the General Fund of the City is hereby created, and the impact fees received will be deposited in this Road Impact Fee Account. (2) Impact Fee Account. The Road Impact Fee Account shall contain only those impact fees collected pursuant to this Ordinance plus any interest which may accrue from time to time on such accounts. (F) Order of Use. Monies in the Road Impact Fee Account shall be considered to be spent in the order collected, on a first-in/first-out basis. (G) Use of Fees. The funds in the Road Impact Fee Account shall be used only for the following: (I) The use of the Road Impact Fees shall be to offset costs to the City of Fayetteville taxpayers that are reasonably attributable to providing necessary collector or arterial street capacity improvement to new development. (2) This impact fee charged to new development shall generate revenue for funding or recouping expenditures of the City of Fayetteville that are reasonably attributable to the use and occupancy of the new development. (3) This impact fee shall be collected and expended only for the planning, design or construction of new collector or arterial streets or of capital improvements to existing collector or arterial streets that expand their capacity or for the recoupment of prior capital improvements to such collector or arterial streets that created capacity available to serve new development. EXHIBIT "A" (4) No monies collected for the Road Impact Fee shall ever be commingled or ever be used for a type of facility different from that for which the fee was paid. (5) No impact fee revenue shall be used for operational expenses. (6) All Road Impact Fee revenues shall be spent in accordance with subsection (B) Intent. (H) Refunds. (1) The City of Fayetteville shall refund the portion of collected development impact fees, including the accrued interest that has not been expended seven (7) years from the date the fees were paid. Interest shall be based on a four percent (4%) annual rate. (2) A refund shall be paid to the present owner of the property that was the subject of new development and against which the fee was assessed and collected. (3) Notice of the right to a refund. including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property no later than thirty (30) days after the date which the refund becomes due. The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice. (4) The refund shall be made on a pro rata basis, and shall be paid in full no later than ninety (90) days after the date certain upon which the refund becomes due. (5) At the time of payment of the Road Impact Fee under this Ordinance, the Impact Fee Administrator shall provide the applicant paying such fee with written notice of those circumstances under which refunds of such fees will be made. Failure to deliver such written notice shall not invalidate any collection of any impact fee under this ordinance. E Cu 01 0 a v C 0 fLl I- -C) C y 2c O y d3 o" O. E c O N O 0 O. C C Cu r F two E H10 z HID Iwo two £H10 m_ z HID t HID OHIO E HID R z HID I HID OHIO CHID R L HIO I HID P HID £H1D z HID L810 OHIO two zz HID I HID rwD two z81D I HID e HID E HID ZX10 I HID O H1D two —as L •O U cool O C)0 C Er' V, 0 Q In € € Q P . IC U SI 111 114 fil u ifs E C,2 p L g E E H' C it; • ... S S 2 Co g `n a o m a a 4. C C C y O t • u Y = a 0 S 9 e p T O e $ 6 0 2 T v 0. C O pq • m L V < ¢ n C o y n . • O Co 2 a R W L p U j ? Z u rLo o P [ C 2 V 0 L G 9 E E .p. O • V a ;^ ¢ n O ¢yy < • e • 5< l P q a qO V N C '3 en i O N ' to a T Ol pS T L C Yp O ^^— RESOLUTION NO. 114-06 A RESOLUTION TO ACCEPT AND ADOPT THE MAY • 2006 ROAD IMPACT FEE STUDY BY DUNCAN ASSOCIATES WHEREAS, the City hired Duncan Associates to update the Road Impact Fee Study (first completed in 2004) based upon the estimates street bond program costs as proposed in 2006; and WHEREAS, the impact fees for roads within the Study are "consumption based" which charges new development the cost of replacing the road capacity the new development consumes of the major roadway system; and WHEREAS, the City Council must determine whether or not to include the cost of right of way acquisition within the road impact fee. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the May 2006 Road Impact Fee Study by Duncan Associates attached as Exhibit "A". Section 2: That the City Council of the City of Fayetteville, Arkansas hereby determines that if Road Impact Fees are enacted they will not include right of way � acquisition costs. `.G`�R,//i, 'N l '^,,' £A ; G\T Y o, - c-3 PASSED and APPROVED this 20th day of June, 2006. ?c;: :t :FAYETTEVILLE* ATTEST: Ll__lJli �l��TiWR==1 rV R OMB - s v. City Council Meeting of June 20, 2006 Agenda Item Number CITY COUNCIL AGENDA MEMO TO: Mayor Dan Coody Fayetteville City Council FROM: Tim Conklin, Planning and Development Management Director DATE: June 2, 2006 SUBJECT: Adoption of the Road Impact Fee Study, May 2006, as prepared by Duncan Associates RECOMMENDATION Staff recommends adoption of the road impact fee study, May 2006, as prepared by Duncan Associates. BACKGROUND •Duncan Associates has completed the update to the road impact fee study based on the estimated street bond program costs as proposed in 2006 (please see attached). The road projects that expand capacity and are included in the proposed bond program were utilized to calculate the fees. The fees are calculated with and without right-of-way costs. Table 1 ROAD IMPACT FEE Single -Family Detached Dwelling $3,409 $3,722 Multi -Family Dwelling $2,363 $2,580 Mobile Home. Dwelling $1,779 $1,943 Retail 1,000 sq. ft. $4,023 $4,393 Office 1,000 sq. ft. $2,701 $2,950 Industrial 1,000 sq. ft. $2,353 $2,569 Potential Annual Revenue $4,108,043 $4,485,! Source: Maximum road fees from Table 20; potential revenues from Table 21. t ROAD IMPACT FEE STUDY i FAYETTEVILLE, ARKANSAS �.l�� i 't'j12%.. $tn prepared by duncanlassociates May 2006 CONTENTS EXECUTIVE SUMMARY.............................................................. 1 LEGAL FRAMEWORK................................................................ 2 BACKGROUND...................................................................... 4 DEVELOPER EXACTIONS AND CREDITS ............................................ 8 SERVICEUNITS.............................................................I........ 9 IMPACT FEE METHODOLOGY...................................................... 10 MAJOR ROADWAY SYSTEM......................................................... 12 EXISTING DEFICIENCIES.......................................................... 13 COST PER SERVICE UNIT........................................................... 15 REVENUE CREDITS................................................................ 17 TRAVEL DEMAND FACTORS....................................................... 21 POTENTIAL FEES.................................................................. 24 APPENDIX A: MAJOR ROADWAY INVENTORY.....................................26 APPENDIX B: ARKANSAS IMPACT FEE ENABLING ACT ............................ 31 LIST OF TABLES AND FIGURES Table 1: ROAD IMPACT FEE SUMMARY.........................................I Table 2: CAPITAL FUNDING BY SOURCE, 2004-2008 ............................. 4 Table 3: SALES TAX CAPITAL FUNDING, 2004-2008 ............................. 5 Table 4: OUTSTANDING DEBT ................................................. 5 Table 5: POPULATION GROWTH,1990-2000..................................... 6 Table 6: RESIDENTIAL BUILDING PERMITS, 1996-2004 .......................... 6 Table 7: EXISTING HOUSING UNITS BY TYPE..................................7 Table 8: TOTAL DAILY VEHICLE -MILES OF TRAVEL .......................... 14 Table 9: TOTAL DAILY VEHICLE -MILES OF CAPACITY ........................ 14 Table 10: SYSTEMWIDE RATIO OF CAPACITY TO DEMAND .................... 15 Table 11: PLANNED ROAD IMPROVEMENT COSTS 16 ............................. Table 12: ROAD COST PER SERVICE UNIT ...................................... 16 Table 13: FEDERAL/STATE HIGHWAY FUNDING, 2001-2025 .................... 17 Table 14: CITY SALES TAX FUNDING, 2004-2008 ................................. 18 Table 15: ROAD REVENUE CREDIT PER SERVICE UNIT ........................ 19 Table 16: ROAD NET COST PER SERVICE UNIT.................................20 Table 17: AVERAGE TRIP LENGTH ............................................. 22 Table 18: AVERAGE TRIP LENGTH BY TRIP PURPOSE ............:............. 22 Table 19: Table 20: TRAVEL DEMAND SCHEDULE ........................................ ROAD NET COST SCHEDULE ......................................... 23 24 Table 21: Table 22: POTENTIAL ROAD IMPACT FEE REVENUE ........................... MAJOR ROADWAY INVENTORY......................................26 25 Figure 1: PLANNING AREA ...................................................... 7 Figure 2: IMPACT FEE FORMULA ............................................... 11 Figure 3: EXISTING MAJOR ROADWAY SYSTEM ................................ 12 prepared by Duncan Associates Clancy Mullen, Principal Author 13276 Research Boulevard, Suite 208, Austin, TX 78750 (512) 258-7347 x 204; clancy@duncanplan.com EXECUTIVE SUMMARY This study calculates maximum impact fees that could be adopted by the City of Fayetteville to help fund growth -related infrastructure improvements for major roads. The road impact fees have been calculated with and without the inclusion of right-of-way (ROW) costs. If road impact fees are adopted, the City would need to give developers credit against their impact fees for the cost of any required land dedication or capacity improvement that adds through lanes to any adjacent or internal arterial or collector roadway. However, if ROW costs are excluded from the road impact fee, credit would need to be given only for improvement costs. This report relies heavily on the road impact fee analysis contained in the June 2004 Impact Fee Study: Road, Fire and Police that we previously prepared for the City. The major change was to substitute the proposed bond program projects for the historical projects used as the basis for the road impact fees. The calculated maximum fees for selected land uses and potential annual impact fee revenues are summarized in Table 1. The maximum road impact fees and potential revenues would be 8 percent lower if ROW costs are excluded. It should be kept in mind that the City will need to give credit against the road impact fees for the value of some developer dedications or improvements, and consequently, actual road impact fee revenues received in cash will likely be less than indicated in the table below. Table 1 iCT FEE SUMMARY Single -Family Detached Dwelling $3,409 $3,722 Mufti -Family Dwelling $2,363 $2,580 Mobile Home Dwelling $1,779 $1,943 Retail 1,000 sq. ft. $4,023 $4,393 Office 1,000 sq. ft. $2,701 $2,950 Industrial 1,000 sq. ft. $2,353 $2,569 Potential Annual Revenue $4,108,043 $4,485,! Source: Maximum mad fees from Table 20: potential revenues from Table 21. Municipalities in Arkansas are authorized by state law to enact impact fee ordinances, provided that they follow the requirements of Arkansas Statutes § 14-56-102, Development Impact Fees. This section provides a brief summary of those requirements most relevant to the City of Fayetteville. The entire statute is reproduced in Appendix B. Impact fees are a one-time fee that can only be assessed on new development. Water and wastewater impact fees can be assessed at the time of purchase of the water meter, but all other types of impact fees must be assessed at the time of issuance of the certificate of occupancy. The amount of impact fees paid for a newly -constructed building must be separately itemized on the dosing statement at the time the property is sold. The City can allow the fee to be paid in installments. Impact fees must be spent for capital improvements thatprovide benefit to the fee -paying development. This can include existing improvements that have excess capacity that was built to accommodate future growth. Section 14-56-102(c)(1) provides that the fees can only be used for: the planning design and construction of new public facilities or of capital improvements to existing public facilities that expand its capacity or for the recoupment of prior capital improvements to public facilities that created capacity that is available to serve new development Impact fees can be pledged to repay bonds that have been issued to fund growth -related capital improvements. However, they cannot be used to pay for: the operation or maintenance of any public facility, or jar the construction or improvement of public facilities, that does not create additional capadty. (Section 14-56-102(c)(3)) In Arkansas, impact fees can only be adopted to fund certain types of public facilities. Section 14-56- 102(b) limits the use ofimpact fees to "providing necessarypublic facilities," and Section 14-56-102(a) (7) defines "public facilities" to include only the following. (A) Water supply, treatment, and distribution, for either domestic water or for suppression of fens; (B) Wastewater treatment and sanitary sewerage; (C) Stormwater drainage; (D) Roads, streets, sidewalks, highways and public transportation; (E) library; (F) Parks, open space, and recreation areas; (G) Police orpublic safety; (I -I) Fire protection; and (L) Ambulance or emergeng medical transportation and response. To assess impact fees, a city must first adopt an ordinance. The ordinance must be preceded by the development of a capital plan and level of service standards for the types of facilities for which the impact fees are to be imposed. The capital plan must include: dunean$associates Fayett eville\Road Impact Fee Study May 2, 2006, Page 2 a description of new public facilitus or of new capital improvements to existing public fatalities or of previous capital improvements to public facilities that continue to provide capacity available for new development that includes cost estimates, and capacity available to serve new development ... (Section 14-56-102(1)(1) As noted, prior to adopting a road impact fee ordinance, the City must adopt a capital plan and a level of service standard for roads, pursuant to Section 14-56-102(e)(2). The capital plan, which describes the projects that would be eligible for funding with the City's road impact fees, is shown Table 11. The level of service on which the fees calculated in this report are based is a one-to-one system -wide ratio of vehicle -miles of capacity to vehicle -miles of travel (see the discussion in the sections on "Road Impact Fee Methodology" and "Existing Deficiencies," as well as the formula in Figure 2). Pursuant to Section 14-56-102(e)(3), the impact fee ordinance must contain the following: (A) A statement of the new public facilities and capital improvements to existing public facilities that are to be financed by impact fees and the level of service standards included in the capital plan for the publie facilities that are to be financed with impact fees; (B) The actual formula orformulas for assessing the impact fee, which shall be consistent with the level of service standards; (C) The procedure by which impact fees are to be assessed and collected; and (D) The procedure for refund of excess impact fees, in accordance witb subsection (h) of this section. Impact fees collected must be deposited into a separate interest -bearing account and spent only for the type of improvements for which they were collected. Interest earned on these accounts shall be spent for the same purposes as the impact fees themselves. Any funds not spent within seven years must be refunded to the fee -payer. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 3 BACKGROUND An impact fee is a form of "exaction," through which a developer or builder is required to contribute to the costs of public improvements required to serve the development. Generally, impact fees are designed to pay for the new development's proportionate share of the cost of off -site improvements, and credit against the fees is given if the developer is required to contribute to the system of facilities for which the fees are charged through on -site dedication, construction or monetary payment. Typically the fee is levied on some easily measurable unit of activity, such as the construction of one dwelling unit or 1,000 square feet of commercial or industrial space. In Arkansas, impact fees are generally collected at the time of certificate of occupancy or water meter purchase. - The City finances most capital improvements on a pay-as-you-go basis. This is done utilizing revenues from the one -percent City sales tax renewed in 2002 (of which, by City Council resolution, 50 percent is used to fund capital projects), the one -percent Hotel, Motel, Restaurant sales tax adopted in 1996 to fund park improvements, and operating revenues from the City's enterprise funds, including water, wastewater and solid waste. The City's last five-year capital improvements program (CIP), excluding non -recurring funding such as one-time bond proceeds, included over $66.6 million in capital funding for the five-year period. Over half of the pay-as-you-go funding is from the one -percent sales tax, as shown in Table 2. Table 2 Sales Tax $36,854,000 55.4% Water & Sewer Fund $12,983,000 19.5% Airport Fund $6,755,000 10.1% Shop Fund $6,625,000 10.0% Parks Development Fund $2,391,000 3.6% Solid Waste Fund $654,000 1.3% Off -Street Parkina Fund $113.000 0.2% Source: City of Fayetteville. Capital Improvements Program, 2004- 2008, December 2003 (excludes bond proceeds). The City's sales tax capital funding is spent on a wide variety of improvements. Foremost among these are streets and traffic signals, other transportation improvements and parks, as shown in Table 3. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 4 Table 3 SALES TAX CAPITAL FUr Streets and Signals $12,682,000 34.4% Other Transportation $7,706,000 20.9% Parks $4,565,000 12.4% Bridge & Drainage $3,444,000 9.3% Other $3,122,000 8.5% Fire $2,455,000 6.7% Police $1,290,000 3.5% Source: City of Fayetteville. Five Year Capital Improvements Program, 20042008, December 2003. The City has about $62 million in outstanding debt, as shown in 'Fable 4. However, none of that debt is related to road facilities. The new 2005 Sales and Use Tax bond issue will consist of $26.235 million in refunding bonds and $65 million in new debt for a total of $91.235 million. Table 4 OUTSTANDING DEBT Sales Tax, Series 1997 (Walton Arts Center) 1997 52,610,000 $290,000 Water & Sewer, Series 1999 (Water Main/Tanks) 1999 $8,365,000 $5,840,000 Water & Sewer, Series 2002A and 20028 2002 $9,270,000 $7,700,000 Sales Tax, Series 2002 (Wastewater Treatment/Sewerage) 2002 $25,000,000 $7,290,000 Hotel & Restaurant, Series 2003 (Town Center) 2003 $6,335,000 $6,215,000 • as of December 31, 2004 Source: City of Fayetteville. Annual Budget and Work Program, 2005. Impact fees are most appropriate for communities that are experiencing rapid growth. The Fayetteville - Springdale -Rogers Metropolitan StatisticalArea (MSA), comprised of Washington and Benton Counties, was the sixth fastest growing MSA in the country in the 1990s' Washington County, of which Fayetteville is the county seat, has been growing at a compound annual growth rate of 3.4 percent since 1990, and one-third of the population added since then has been in Fayetteville. The city itself has been growing at 3.2 percent annually, over twice as fast as the state as a whole. Fayetteville's population is estimated to be 64,190 as of July 1, 2004. It is not surprising that this pace of growth has created problems in terms of the City's ability to finance the capital improvements needed to accommodate new development. _ 'U.S. Census Bureau, Statistical Abstract of the United States: 2000, Table No. 34, p. 33. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 5 Table 5 Fayetteville 42,249 58,047 15,798 3.23% Springdale * 29,941 43,787 13,846 3.87% Other Municipalities* 10,503 17,540 7,037 5.26% Unincorporated 30,716 38,341 7,625 2.24% Washington County 113,409 157,715 44,306 3.35% • only the Washington County portion of Springdale and Elm Springs Source: U.S. Census Bureau; Northwest Regional Planning Commission The City has been issuingpermits for an average of almost 400 single-family homes annually since 2000, as shown in Table 6. The number of multi -family permits issued annually has increased from about 470 per year in the late 1990s to almost 700 per year in the last five years. Table 6 RESIDENTIAL BUILDING PERMITS, 1996.2004 1ilI'iLl n• cams vxuu n. . . 1996 445 154 599 1997 265 281 546 1998 272 40 312 1999 357 515 872 2000 279 272 551 2001 258 440 698 2002 239 792 1,031 2003 611 1,258 1,869 2004 583 711 1,294 Avg., 1996-99 335 469 804 Avg., 2000-04 394 695 1,089 Source: City of Fayetteville, Inspection Department Based on building permits issued since the 2000 Census, his estimated that Fayetteville has about 31,000 dwelling units as of April 2005, as shown in Table 7. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 6 Table 7 Single -Family 12,663 • 1,970 14,633 Mufti -Family 11,808 3,473 15,281 Source: 2000 U.S. Census for Fayetteville, AR. SF -3 (1 in 6 sample date) permits from January 2000 through December 2004 from Table 6 In addition to development within its incorporated limits, the City is also affected by, and has some control over, development in unincorporated areas within its extraterritorial jurisdiction. Within this area, which extends up to five miles from the corporate limits or half the distance to any adjoining municipality, the City exercises joint subdivision authority with Washington County. The area covered by the City's extraterritorial jurisdiction is larger than the area within its corporate limits. The combined corporate and extraterritorial jurisdictions are referred to as the City's planning area, which covers approximately 92 square miles. Figure 1 PLANNING AREA duncanlassociates Fayett Impact Fee Study May 2, 2006, Page 7 DEVELOPER EXACTIONS AND CREDITS The City does not impose a road impact fee on new development, but there are a number of developer exactions for roads in the City's Unified Development Code. A "large scale development," defined as any development larger than one acre, must dedicate sufficient right-of-way (ROW) to bring any abutting or intersecting major road to the standards of the master street plan. A lesser dedication may be recommended by the Planning Commission and approved by the City Council in cases of undue hardship or practical difficulties. Developers of large-scale developments may also be required to make off -site street and other improvements, "where the need for such improvements is created in whole or in part by the proposed large scale development"' When commercial, industrial or multi -family development is proposed adjacent to any street not constructed to current city standards, the developer is required to dedicate sufficient ROW and install paving, curb and gutter, and sidewalks necessary to bring the street into conformity with current standards. The regulation provides that the City Council may reduce the dedication requirement, and the cost of required' improvements shall be in.proportion to the needs created by the development' Finally, off -site road improvements may be required where a proposed subdivision has access to paved streets only by way of substandard or unimproved streets. In such cases, the subdivider is required to contribute a proportionate share of the cost of the off -site improvements. The proportionate share is based on the acreage of the subdivision as a share of the acreage of all property benefitting from the improvement, or by an alternative method determined by the planning commission' In general, these requirements mean that development abutting an unimproved or substandard street must dedicate the required ROW and construct the adjacent half of the street improvement. The developer does have the option to do a traffic study to attempt to demonstrate that the required improvement exceeds the impact of the development. Even lot splits can trigger the requirements to improve abutting roadways. The proposed road impact fees differ from the Fayetteville's existingwater and wastewater fees, and from the proposed fire and police fees, in that a significant portion of the fees may need to be used to compensate developers who have frontage on major roadways and are required to construct or improve them. If the road impact fees calculated in this report are adopted, the City would need to give credit against the fees to developers for the value of required improvements to arterial and collector roadways. No credit would need to be given for the value of ROW dedications if ROW costs are not included in the impact fee calculations. There are a variety of ways that credit provisions can be structured, and these issues should be addressed in the impact fee ordinance. One thing that needs to be defined in the ordinance is what constitutes a capacity -expanding improvement eligible for funding with road impact fees. The definition should exclude bringing an existing substandard two-lane arterial or collector road up to current standards. Section 166.05: Large scale development. Section 171.03: Street improvements. ° Section 166.07: Required off -site improvements. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 8 Developers are often required to make such improvements to adjacent roads, and the ordinance should make clear that this is not the type of improvement that is eligible for impact fee funding or impact fee credit. For example, the ordinance could define eligible improvements as capacity -expanding improvements to the major roadway system, including building new roads, widening existing roads by adding additional lanes, and intersection improvements that add signalization or turn lanes. In the event that the City Council chooses to adopt road impact fees at a level that excludes the cost of ROW, the ordinance will need to address whether the impact fee revenues can be expended to acquire ROW. The consultant recommends that if developers are not going to be given credit for the value of ROW they are required to dedicate, the ordinance should prohibit the expenditure of impact fee funds for ROW acquisition. Such a prohibition may not be legally required, but it would serve as an important clarification that ROW is not any part of the road impact fee program. Another issued to be addressed in the ordinance is whether a developer will be reimbursed directly from impact fee funds collected from all developments, or whether the impact fees paid within the developers project will be reduced. Our recommendation is that credit be provided as a direct reimbursement to the developer that dedicated the ROW or made the improvement. One approach would be to set aside a maximum percentage of annual impact fee revenues to be used for such reimbursements. If the outstanding reimbursements owed in any given year exceed the amount available from impact fee revenues, each developer would receive a proportionate share of their outstanding reimbursement, and be eligible for more reimbursement in subsequent years. This approach would make collecting impact fees much easier, since the fees would be collected in full on all building permits, without the permit clerk having to check to see if a fee reduction due to credits is required. The impact fee ordinance will also need to deal with other credit issues, such as the following. If credits are provided in the form of fee reductions, what happens when the amount of the credit exceeds the impact fees that would be due from the development project) To what extent should credits be given for past contributions for development projects that have not yet been completed? SERVICE UNITS Service units create the link between supply (roadway capacity) and demand (traffic generated by new development). An appropriate service unit basis for road impact fees is vehicle -miles of travel (VMT). Vehicle -miles is a combination of the number of vehicles traveling during a given time period and the distance (in miles) that these vehicles travel. The unit of capacity that is consumed by the demand unit represented by a VMT is a vehicle -mile of capacity (VMC). VMC is calculated as the capacity of a roadway segment multiplied by the length of the segment in miles. The two time periods most often used in traffic analysis are the 24 -hour day (average daily trips or ADD and the single hour of the day with the highest traffic volume (peak hour trips or P1 -IT). Available traffic duneanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 9 counts for area roadways are for average daily trips. Consequently, average daily VMT will be used as the service unit for Fayetteville's road impact fees. IMPACT FEE METHODOLOGY The major alternative methodologies for calculatingroadimpact fees are the "improvements -driven" and "consumption -based" approaches. These are briefly described below. The "improvements -driven" approach essentially divides the cost of growth -related improvements required over a fixed planning horizon (or to build -out) by the number new service units (e.g., vehicle trips) projected to be generated by growth over the same planning horizon in order to determine a cost per service unit. The improvements -driven approach depends on accurate planning and forecasting. For example, the fees will be accurate only if the forecasted increase in traffic actually necessitates all of the improvements identified in the transportation master plan. If many of the planned improvements will provide excess capacity that will be available to serve additional development beyond the planning horizon on which the fees are based, the fees may be too high. I The "consumption -based" approach does not depend on knowing in advance what improvements will be made or what type or density of development will occur. The consumption -based model simply charges a new development the cost of replacing the capacity that it consumes on the major roadway system. That is, for every service unit of traffic (e.g., mile of vehicle travel) generated by the development, the road impact fee charges the net cost to construct an additional service unit of capacity. The consumption -based system can be based on a transportation plan, but the total cost of the plan does not affect the amount of the fee, which is based on the unit cost of creating new capacity. A strength of the consumption -based system is that it is very legally defensible because it generally under- estimates the full cost of growth. Since travel is never evenly distributed throughout a roadway system, actual roadway systems require more than one unit of capacity for every unit of demand in order for the system to function at an acceptable level of service. Suppose, for example, that the City completes a major arterial widening project. The completed arterial is likely to have a significant amount of excess capacity for some period of time. If the entire system has just enough capacity to accommodate all of the vehicle -miles of travel, then the excess capacity on this segment must be balanced by another segment being over -capacity. Clearly, roadway systems in the real world need more total aggregate capacity than the total aggregate demand, because the traffic does not always precisely match the available capacity. Consequently, the standard consumption -based model generally underestimates the full cost of growth. The consumption -based system is a conservative, legally sound and relatively simple approach to the calculation of road impact fees. This is the recommended approach for Fayetteville. The recommended formula for the road impact fees is shown in Figure 2. duncanlassociates Fayetteville\Road Impact Fee Study ay 2, 2006, Page 10 Figure 2 MAXIMUM FEE = VMT x NET COSTNMT Where: VMT = TRIPS x % NEW x LENGTH_2 2 - NET COSTNMT = COSTIVMT • CREDITNMT Where: TRIPS = Trip ends during a weekday % NEW = % of trips that are primary, as opposed to passby or diverted -link trips LENGTH = Average length of a trip on the major roadway system 2 = Avoids double -counting trips for origin and destination COSTNMT = Average cost per lane -mile divided by average daily capacity per lane CREDITNMT = Revenue credit perdail VMT duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 11 MAJOR ROADWAY SYSTEM A road impact fee system should include a clear definition of the major roadway system that is to be funded with the impact fees. The major roadway system to be funded with the proposed impact fees is comprised of arterials and collectors within the City's incorporated area, including most state roads but excluding freeways and expressways. These roadways are identified on the City's MarterStnetP/an,which is an official map that is used in conjunction with the Circulation Element of the 2020 Genera/P/on. It classifies streets into a number of functional types, including freeway/expressways, principal arterials, minor arterials, collectors and local streets. The Master Street Plan shows the location of new roads and allows the City to preserve corridors for roadways expected to need widening or extension. An inventory of the existing major roadway system was compiled in order to identify existing capacity deficiencies and to determine the average length of a trip on the major roadway system (see Appendix A). The roadway segment descriptions include the street name, roadway termini, number of lanes and roadway length and width. Average daily traffic volumes were estimated for most segments from state highway department counts. The existing major roadway system within Fayetteville's incorporated limits is illustrated in Figure 3. Figure 3 EXISTING MAJOR ROADWAY SYSTEM Arterials Collectors duneanjassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 12 EXISTING DEFICIENCIES In most rapidly growing communities, some roadways will be experiencing an unacceptable level of congestion at any given point in time. One of the principles of impact fees is that new development should not be charged, through impact fees, for a higher level -of -service than is provided to existing development. Another common way of expressing this concept, although itis somewhatless precise and subject to misinterpretation, is that impact fees should not be used to pay for remedying existing deficiencies. In the context of road impact fees, this has sometimes been interpreted to mean that impact fees should not be spent on roadways that are already over -capacity. A variant of this approach is that impact fees should only be used to fund a percentage of the project that can be attributed to providing additional capacity beyond what is needed to remedy any existing deficiency. There are a number of practical problems with these approaches. First, impact fees are restricted from being spent on roadways that arc most in need of improvement, while the fact that fee -funded improvements to other roadways may also relieve the deficient segments is ignored. Second, these approaches complicate impact fee administration by requiring that the portion of the cost of each improvement that is attributable to remedying deficiencies be funded from a different source than impact fees. The most significant objection to these approaches, however, is that they are not consistent with the conservative nature of the consumption -based road impact fee methodology. The consumption -based system does not promise that all road segments will function at a given level of service (e.g., LOS C or LOS D). All the consumption -based model does is assume that for every unit of capacity that is consumed, another will be constructed to replace it. Implicitly, the level of service used in a consumption -based impact fee is a one-to-one ratio of capacity to demand in the major roadway system as a whole. As long as the current system provides at least this capacity/demand ratio, the impact fees are not charging for a higher level of service. To determine the capacity/demand ratio, the first step is to estimate total VMT on the major roadway system. This figure will also be used in the average trip length and revenue credit calculations. Recent daily traffic counts are available for road segments accounting for almost three -fourths of all lane -miles in the major roadway system. Adding estimated traffic from road segments for which counts were not available, on the assumption that such segments would carry about three-quarters the volume of segments with counts, yields a estimate of about 1.1 million daily vehicle -miles of travel on Fayetteville's major roadway system. - duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 13 Table 8 TOTAL DAILY VEHICLE -MILES OF TRAVEL Principal Arterials 687,943 162.32 4,238 168.48 707,523 Minor Arterials 137,277 36.30 3,782 44.09 159,373 Collectors 83,653 42.20 1,982 101.96 172,486 Historic Collectors 70.292 25.69 2.736 32.15 83,548 Source: Table 22; counted VMT is product of miles end ADT for segments with traffic counts; lane -miles with counts is product of miles and existing number of lanes for segments with counts; total lane -miles includes segments without counts; total VMT assumes segments without traffic counts carry 3/4 as many vehicles as the average of segments of the same classification with counts. The next step is to estimate total vehicle -miles of capacity in the major roadway system. The City's recently -completed transportation plan uses a general planning -level capacity estimate of 8,000 vehicles per lane per day at LOS D. Using that capacity figure, total system capacity is about 2.8 million daily vehicle -miles, as shown in Table 9. This is considerably more than the total VMT in the system. Clearly, the one-to-one ratio of capacity to demand on which the impact fees are based is not resulting in new development being charged for a higher level of service than is being enjoyed by existing development. Table 9 DAILY VEHICLE -MILES OF Principal Arterials 168.48 8,000 1,347,840 Minor Arterials 44.09 8,000 352,720 Collectors 101.96 8,000 815,680 Source: Total lane -miles from Table 22; capacity per lane at LOS D from BWR, Traffic and Transportation Studypreparedforthe Cityo/Payette ville, Arkansas, October 2003; total vehicle -miles of capacity (VMC) is lane -miles times capacity per lane. While there are a few individual road segments that appear to be over -capacity, the extent of existing segment -specific capacity deficiencies is relatively small compared to the total amount of daily travel. The bottom line, however, is that a segment -by -segment analysis of capacity deficiencies is not necessary or appropriate in the context of a consumption -based road impact fee. The system -wide ratio of capacity to demand is the appropriate level of service measure, and it is clear that the fees are based on a one-to- one ratio that is considerably lower than the existing ratio. As shown in Table 10, Fayetteville's major road system currently has significantly more capacity than existing demand. Consequently, there are no existing deficiencies on a system -wide basis. duncanlassociates Fayetteville\Road/mpactFee Study - May 2, 2006, Page 14 Table 10 SYSTEMWIDE RATIO OF CAPACITY TO DEMAND rehicle-Miles of Capacity (VMC) 2,773,440 ehicle-Miles of Travel {VMT) 1,122,931 Systemwide Capacity/Demand Ratio 2.47 Source: VMT from Table 8; VMC from Table 9 COST, PER SERVICE UNIT Right-of-way is the most variable component of road improvement costs, as well as the most common type of developer exaction for roads. If ROW costs are excluded from the impact fee calculations, the fees will be lower, and the City will not have to give credit against the fees for ROW that is dedicated by developers. In order to give the City the option to include or exclude ROW costs, the road impact fees will be calculated both ways in this report. The average cost to create an additional vehicle -mile of capacity can be derived by dividing the cost of a representative set of improvements by the additional capacity created by the improvements. Most of the planned capacity -expanding improvements are widening projects, and widening projects generally entail the reconstruction of the existing lanes. While this cost could be covered by impact fees under the argument that the reconstruction of the existing lanes is incidental to the primary purpose of adding capacity, the costs of lane reconstruction are excluded from the cost estimates in the following calculations. The cost of planned capacity -expanding road improvements to be undertaken by the City pursuant to the proposed road bond program, including construction, engineering and ROW costs, totals $80,550,000, as summarized in Table 11. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 15 Table 11 PLANNED ROAD IMPROVEMENT COSTS Crossover (Mission to City Limits) 0.81 2 5 2.43 $7,087,000 $7,087,000 Fifteenth Street (Happy Hollow to S. College)* 1.61 2 4 3.22 $4,253,000 - $4,693,000 Garland (North to Melmar) 0.70 2 5 2.10 - $4,638,000 $6,338,000 Garland (Drake to Truckers) 0.53 2 5 1.59 $1,520,000 $1,630,000 Garland (1-540 to Howard Nickell) 0.57 2 5 1.71 $3,151,000 $3,371,000 Howard Nickel Wan Asche (Rupple to Garland) 2.18 2 4 4.36 $8,246,000 $9,291,000 Huntsville (Happy Hollow to Stonebridge) 0.66 2 4 1.32 $2,415,000 $2,470,000 Huntsville (Stonebridge to Falcon) 1.40 2 4 2.80 $7,046,000 $7,156,000 Mall Avenue (Joyce to Mud Creek) 0.28 2 3 0.28 $632,000 $832,000 Mount Comfort (Rupple to Alpine) 1.14 2 4 2.28 $4,663,000 $5,653,000 Rupple Road (6th to Persimmon) 1.70 0 5 8.50 $7,580,000 $8,155,000 Rupple Road (Persimmon to Wedington) 0.53 2 5 1.59 $1,438,000 $1,438,000 Rupple Road (Wedington to Mt. Comfort) 0.97 2 5 2.91 $6,941,000 $8,316,000 Rupple Road (Mt. Comfort to Howard Nickell) 1.59 3 5 3.18 $3,416,000 $3,581,000 Shiloh Drive (Cato Springs to Summerhouse) 0.66 0 3 1.98 $1,997,000 $2,237,000 Shiloh Drive (ML Comfort to Wedington) 0.52 0 3 1.56 $3,231,000 $3,341,000 Van Asche (Gregg to Garland) 1.63 2 5 4.89 $4,083,500 $4,961,000 Total 17.48 46.70 $72,337,500 $80.550,000 * existing lanes not reconstructed Source: Proposed bond program information provided by City of Fayetteville. May 1.2006; costs exclude cost to reconstruct existing lanes, estimated to cost $255,145 per lane -mile by City Engineer, July 28, 2005 memorandum. Dividing the average cost per lane -mile by the average capacity of a lane yields the average cost per vehicle -mile of capacity, as shown in Table 12. Table 12 ROAD COST PER SERVICE UNIT Total Cost $72,337,500 $80,550,000 Total Lane -Miles 46.70 46.70 Average Cost per Lane -Mile $1,548,983 $1,724,839 Daily Vehicle Capacity er Lane 8,000 8.000 Cost per Vehicle -Mile $193.62 $215.60 Source: Total cost and lane -miles from Table 11; daily capacity per lane from Table 9. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 16 REVENUE CREDITS In the calculation of impact fees, credit must be given for dedicated or intergovernmental revenues that will be generated by new development and used to pay for the same kind of facilities funded through the impact fees. In the case of road impact fees, revenue credits will be calculated for state and federal funding for City arterial and collector road improvements. No credit needs to be calculated for outstanding debt payments for road bonds, since the Cityhas no outstanding debt for past road projects. Finally, a credit needs to be provided for sales tax revenues that will be used for capacity -expanding road improvements. A review of the 2025 Regional Transportation Plan indicates that all of the planned direct federal and state funding for the improvement of roads in Fayetteville is for state roads. Total federal and state funding for Fayetteville amounts to $2.6 million annually over the next 25 years, as shown in Table 13. Table 13 Hwy 112, Maple St to Hwy 112 S $1,500,000 AR 45, North St to City Limit $7,000,000 AR 16, Happy Hollow to W.F. Bridge $3,150,000 AR 180, Gregg to US 71B $2,500,000 AR 265, AR 45 to N City Limits $11,000,000 AR 180, Township to US 71 $2,800,000 AR 112, North St to 1-540 $6,250,000 AR 112, 15th to Maple $2,800,000 AR 112, Razorback to Garland $2,500,000 AR 16, Meadowland to W City Limit $5,500,000 US 71 Flyover, College to US 71W $4,000,000 AR 16 Bypass, Washington to Happy Hollow $4,000,000 AR 16E, W.F. Bridge to E City Limit $11,750,000 Total, 2001.2025 $64,750,000 Source: Northwest Arkansas Regional Planning Commission. 2025 Regional Transportation Plan for Metropolitan Northwest Arkansas, February 2001. An equally significant source of funding for City thoroughfares is the one -cent sales tax. As noted in the Background section, the sales tax is the primary source of funds for the City capital improvements program, and 34 percent of sales tax -funded capital improvements in the five-year CIP are for street and traffic signal improvements. The City plans on spending about $2.5 million annually in sales tax funds on capacity -expanding road improvements over the five-year CIP period. Excluding expenditures for ROW acquisition, annual expenditures for construction are anticipated to be about $1.8 million, as shown in Table 14. duneanlassociates Fayettevillev?oad Impact Fee Study May 2, 2006, Page 17 Table 14 Gregg Ave Mission & Maple Shiloh, Gregg & Fulbright Gregg Ave & Poplar St School & Archibald Huntsville/Happy Hollow Milisap Rd It North College West Avenue & Maple St Township' Mount Comfort Rd ROW/Intersec Cost Shares Mount Comfort Rd. Highway 265 ROW Morningside Dr & 15°' St Zion/College to Frtg Rd Van Asche Blvd Gregg Ave & North St Old Wire & Old Missouri Mission & Old Wire College/Roll Hills/Appleby Total Funding, 2004-2008 Township to Fulbright Intersection and Signalization Turn Lanes Intersection and Signalization Intersection Intersection Intersection Signalization Gregg to North College Widening & Turn Lanes Mission to Township at Shiloh Dr Mission to City Limits Signalization Intersection Steele Blvd to Gregg Ave Turn Lanes Intersection Intersection Intersection * ROW assumed to be 25% of total Source: City of Fayetteville, 2004-2008 Capital Improvements Program, May 2004. $0 $150,000 $400,000 $175,000 $100,000 $650,000 $100,000 $100,000 $1,560,000 $900,000 $515,000 $0 $0 $221,000 $200,000 $950,000 $650,000 $324,000 $300,000 $800,000 $8,791,000 $360,000 $150,000 $400,000 $175,000 $100,000 $650,000 $100,000 $100,000 $2,080,000 $900,000 $515,000 $1,500,000 $1,511,000 $221,000 $200,000 $950,000 $650,000 $324,000 $300,000 $800,000 $12,682,000 Over the 25 -year period that is typical of the useful life of road improvements, new development will generate sales tax revenues and highway user fees that will be returned to the City in the form of State and Federal funding for capacity expanding road improvements that is equivalent to about$57 per VMT generated by the new development. Excluding funding for ROW, the revenue credit per VMT is about $48, as shown in Table 15. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 18 Table 15 ;REDIT PER SERVICE Annual Federal/State Funding for Capacity Road Improvements $2,590,000 $2,590,000 Annual Sale Tax Funding for Capacity City Road Improvements $1,758,000 $2,536,000 Total Annual Funding for Capacity City Road Improvements $4,348,000 $5,126,000 Existing Vehicle -Miles of Travel (VMT) on Major Roadway System 1,122,931 - 1,122,931 Annual Funding per VMT $3.87 $4.56 Net Present Value Factor (25 Years at 4.96% discount rate) 12.50 12.50 Source: Annual Federal/State funding from Table 13: annual sales tax funding from Table 14; existing VMT from Table 8; discount rate for present value factor is average interest rate on 20 -year AAA municipal bonds as of May 31, 2004 according to bloomberg.com, fmsbonds.com, and bondsonline.com. In addition to its current road funding, the City intends to seek voter approval for a Transportation Bond Program of about $145 million funded by a dedicated one percent sales and use tax. The proposed sales and use tax is split into two parts: one-fourth percent that would be levied immediately and three -fourths percent that would be directed to the Transportation Bond Program once the Wastewater System Improvements Bonds are fully paid. The City also intends to use road impact fee revenues primarily to help retire the Transportation Bonds. The sales and use tax would expire when the bonds are paid off. Of the total cost of the proposed bond program, only $81 million is eligible for impact fee funding ($72 million if ROW costs are excluded), as shown earlier in Table 11. Revenue from road impact fees, if adopted at the maximum levels calculated in this report, over the 20 -year life of the bonds could pay for the principal associated with these eligible projects. Based on the annual number of permits issued in recent years, the proposed road impact fees could generate $82 million to $90 million over 20 years, as shown in Table 21. Of course, actual revenues may be somewhat lower than these estimates, because the City will need to give credit against the fees whenever it requires new development to add capacity to the major road system by adding lanes to adjacent arterial or collector roads. As shown above, road impact fee revenues should be adequate to retire that portion of the debt service attributable to the principal associated with growth -related, impact fee -eligible projects. The sales tax revenues could be used for paying the interest costs for the growth -related projects and for principal and interest payments on the non -growth -related projects. Under this reasonable scenario, there is no need for a credit for the sales tax payments that would be generated by new development, because these payments would be going for interest costs, which are not included in the impact fee calculations, or for non -growth -related improvements, which are not eligible for impact fees. Clearly, new development would not be paying twice for growth -related improvements. In the event that the Council decides not to charge the maximum road impact fees, it is likely that some sales tax funding would be needed to fund some of the growth -related improvement cost. Even under these circumstances, however, a credit would not be warranted, because the impact fees are not covering the full impacts of new development, and the governing body is simply allowing new development to pay for some of its attributable costs through the sales tax instead of impact fees. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 19 Subtracting the revenue credit from the cost.per service unit yields the net cost per service unit. Depending on whether ROW costs are included in the fees, the net cost per service unit ranges from $145 to $159 per daily vehicle -mile of travel. Table 16 ROAD NET COST PER SERVICE UNIT Average Cost per VMT $193.62 $215.60 Revenue Credit per VMT $48.38 ' $57.00 Net Cost oer VMT $145.24 $158.60 Source: Average cost per VMT from Table 12; revenue credit per VMT from Table 15 duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 20 TRAVEL DEMAND FACTORS The travel demand generated by specific land use types is a product of three factors: 1) trip generation, 2) percent primary trips and 3) trip length. The first two factors are well documented in the professional literature, and the average trip generation characteristics identified in studies of communities around the nation should be reasonably representative of trip generation characteristics in Fayetteville. In contrast, trip lengths are much more likely to vary between communities, depending on the geographic size and shape of the community and its major roadway system. Trip generation rates were based on information published in the most recent edition of the Institute of Transportation Engineers(ITE) Trip Generation manual. Rates were established for specific land use types within the broader categories of residential, commercial, office/institutional and industrial land uses. Trip generation rates represent trip ends, or driveway crossings from the site of a land use. Thus, a one-way trip from home to work counts as one trip end for the residence and one trip end for the work place. To avoid over -counting, all trip rates have been divided by two. This places the burden of travel equally between the origin and destination of the trip and eliminates double -charging for any particular trip. Trip rates also need to be adjusted by a "primary trip facto?" to exclude pass -by and diverted trips. This adjustment is intended to reduce the possibility of over -counting by only including primary trips generated by the development. Pass -by trips are those trips that are already on a particular route for a different purpose and simply stop at a particular development on that route. For example, a stop at a convenience store on the way home from the office is a pass -by trip for the convenience store. A pass -by trip does not create an additional burden on the street system and therefore should not be counted in the assessment of impact fees. A diverted trip is similar to a pass -by trip, but a diversion is made from the regular route to make an interim stop. The reduction for pass -by and diverted trips was drawn from the ITE manual and other published information. The average trip length is the most difficult travel demand factor to determine. In the context of a road impact fee based on a consumption -based methodology, we are interested in determining the average length of a trip on the major roadway system within Fayetteville. This can be approximated by dividing the total daily travel demand (VMT) on the major roadway system by the total number of average daily trips generated by existing development in the city. Existing land uses in each of six general categories are multiplied by average daily trip generation rates and summed to determine a reasonable estimate of total city-wide trips. Dividing the total vehicle -miles of travel (VMT) on the major roadway system determined from the inventory (see Table 22) by the estimated trips generated by existing land uses in Fayetteville yields a reasonable estimate of the average distance traveled on the City's major roadway system per daily trip, as shown in Table 17. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 21 Table 17 Single -Family Dwelling 14,633 4.79 70,092 Multi -Family Dwelling 15,281 3.32 50,733 Mobile Home Dwelling 855 2.50 2,138 Commercial 1,000 sq. ft. 7,647 9.98 76,317 Civic 1,000 sq. ft. 4,246 6.15 26,113 Daily Trips 248,260 Source: 2005 dwelling units from Table 7; nonresidential square feet from Washington County Assessor, 2004 plus new square footage permitted in 2004 from Fayetteville Planning Department. October 7. 2005; trip rates are onehaf of average daily trip ends on a weekday reported in Institute of Transportation Engineers (ITE), Trip Generation, Seventh Edition, 2003 for ITE land use codes 210 (Single -Family Detached). 220 (Apartment). 240 (Mobile Home Park), 820 (Shopping Center), 710 (General Office Building), and 130 (Industrial Park); existing VMT from Table 8. The ratio of the average local trip length on Fayetteville's major roadway system to the national average trip length identified in the U.S. Department of Transportation's 2001 National Household Travel Survey is computed in Table 18. Fayetteville's average trip length on the major roadway system is lower than the national average because the major roadway system excludes travel on freeways/expressways, arterials and collectors outside the city limits, and local streets. Using this ratio, reasonable trip lengths were derived for specific trip purposes, including home -to -work trips, shopping, school/church and other personal trips. In addition, a residential trip length was determined, using a weighting of 40 percent work trips and 60 percent average trips. Table 18 TRIP LENGTH BY TRIP PURPOSE To or from work 12.07 na 0.46 5.6 Residential na na na 4.9 Doctor/Dentist 9.78 na 0.46 4.5 Average 9.71 4.50 0.46 4.5 School/Church 7.42 na 0.46 3.4 Family/Personal 7.35 na 0.46 3.4 Source: Average trip lengths in miles; national date from US. Department of Transportation, Nations/Household Travel Survey. 2001; local data from Table 17; ratio is average local divided by average national trip length; estimated local trip lengths are products of national date by ratio, estimated local residential trip length is weighted 40% local work trip length and 60% average trip length. duncanlassociates Fayetteville\Road impact Fee Study May 2, 2006, Page 22 Average daily travel demand must be estimated for a broad variety of land uses in order to develop the fee schedule. The result of combining trip generation rates, new trip factors and average trip lengths is a travel demand schedule that establishes the vehicle -miles of travel (VMT) during the average weekday generated byvarious landuse types per unit of development. The recommended travel demand schedule is presented in Table 19. Table 19 Single -Family Detached 210 Dwelling 9.57 4.79 100% 4.9 23.47 Multi -Family 220 Dwelling 6.72 3.32 100% 4.9 16.27 Mobile Home/RV Park 240 Pad 4.99 2.50 100% 4.9 12.25 Hotel/Motel 310/320 Room 6.90 3.45 80% 4.9 13.52 Retail/Commercial 820 1000 sq. ft. 42.94 21.47 43% 3.0 27.70 Office/Institutional 710 1000 sq. ft. 11.01 5.51 75% .4.5 18.60 Nursing Home 620 1000 sq. ft. 6.10 3.05 75% 4.5 10.29 Church 560 1000 sq. ft. 9:11 4.56 75% 3.4 11.63 Industrial 130 1000 sq. ft. 6.96 . 3.48 95% 4.9 16.20 Warehouse 150 1000 sq. ft. 4.96 2.48 95% 4.9 11.54 Source: "Trip Ends" is average daily trips (ADT) during weekday from Institute of Transportation Engineers (ITE). Trip Generation. 7th ed., 2003; "1 -Way Trips" _ 'h Trip Ends; "ITE Code" is land use code from ITE manual used for land use category (where more than one code shown, rates were averaged): new trip percentage for retail/commercial from ITE. Trip Generation Handbook, October 2003; percentages for other land uses taken from Kimley-Horn and Associates, Inc.. Lee County Impact Fee Transportation Data, 1990; average trip lengths from Table 18; average trip length reduced by 50% for convenience stores and fast food restaurants; average trip length used for office uses and residential trip length used for industrial/warehousing uses. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 23 POTENTIAL FEES Based on the impact fee formula and the inputs calculated in this report, the maximum road impact fees per unit of development for various land uses, with and without ROW costs, are shown in Table 20. Impact fees could be adopted at less than 100 percent of the levels shown in the net cost schedules, provided that the reduction is applied uniformly across all land use categories in order to retain the proportionality of the fees. The impact fee ordinance will contain a provision allowing the option of independent fee determination studies for those applicants who can demonstrate that their development will have less impact on the need for road facilities than indicated by the fee schedule. Table 20 ROAD NET COST S Single -Family Detached Dwelling 23.47 $158.60 $145.24 * $3,722 $3,409 Muhi-Family Dwelling 16.27 $158.60 $145.24 $2,580 $2,363 Mobile Home/RV Park Pad 12.25 $158.60 $145.24 $1,943 $1,779 Hotel/Motel Room 13.52 $158.60 $145.24 $2,144 $1,964 Retail/Commercial 1000 sq.ft. 27.70 . $158.60 $145.24 $4,393 $4,023 Office/Institutional 1000 sq. ft. 18.60 $158.60 $145.24 $2,950 $2,701 Nursing Home 1000 sq. ft. 10.29 $158.60 $145.24 $1,632 $1,495 Church 1000 sq. ft. 11.63 $158.60 $145.24 $1,845 $1,689 Industrial 1000 sq. ft. 16.20 $158.60 $145.24 $2,569 $2,353 Warehouse 1000 sq. ft. 11.54 $158.60 $145.24 $1,830 $1,676 Source: Deily VMT per unit from Table 19; net cost per VMT from Table 12. Based on the annual number of permits issued in recent years, annual road impact fee revenue could amount to $4.1 million to $4.5 million, as shown in Table 21. Over 20 years, the impact fees could generate $82 million to $90 million. These estimates include in -kind contributions from developers, for which they would get impact fee credit, so that cash revenues received by the City would likely be lower. 9 duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 24 Table 21 POTENTIAL ROAD IMPACT FEE REVENUE rrr rrr . . Potential Fee without ROW Costs $3,409 $2,363 $4,023 $2,701 Potential Fee with ROW Costs $3,722 $2,580 $4,393 $2,950 Average New Units, 2000-04 394 695 130 222 ._ Annual Revenue without ROW Costs $1,343,146 $1,642,285 $522,990 $599,622 $4,108,043 Annual Revenue with ROW Costs $1,466,468 $1,793,100 $571,090 $654,900 $4,485,558 20 -Year Revenue without ROW Costs $26,862,920 $32,845,700 $10,459,800 $11,992,440 $82,160,860 20 -Year -Revenue with ROW Costs $29,329,360 $35,862,000 $11,421,800 $13,098,000 $89,711,160 Source: Potential fees from Table 20; average annual new residential units are averages for 2000-2004 from Table 6; average annual new nonresidential units are amounts permitted in 2004 from Fayetteville Planning Department. October 7.2005.': duncanlassociates Fayetteville\Road /mpact Fee Study May 2, 2006, Page 25 ------- APPENDIX A: MAJOR ROADWAY INVENTORY Table 22 Archibald Yell Blvd ith St 15th St 15th St Co. Rd. 649 College Ave College Ave College Ave College Ave College Ave College Ave Crossover Rd Crossover Rd Garland Ave Garland Ave Happy Hollow Rd Highway 112 Highway 112 Huntsville Rd Joyce Blvd Joyce Blvd Joyce Blvd Joyce Blvd Maple St Mission Blvd Old Missouri Rd Razorback Rd Razorback Rd Razorback Rd School Ave School Ave Steele Blvd Sunshine Rd Van Asche Dr Van Asche Dr Van Asche Or Wedington Or College Ave School Ave Happy Hollow Rd College Ave City Limits Archibald Yell Blvd North St Millsap Rd 560'S of Joyce Blvd 980' N of Joyce Blvd 1973'S of City Limits Old Missouri Rd Mission Blvd 1-540 Wedington Dr Huntsville Rd 1,286' E of Cris Hollow 1-540 City Limits City Limits College Ave Frontage Rd 228' S of Front St Garland Ave North St Garland Ave Gregg Ave City Limits Maple St 15th St Ramp Archibald Yell Blvd 3,477'S of Willoughby Van Asche Dr 1510'S Jess Anderson Highway 112 1,073' W of Gregg Ave 523' W of Steele Blvd City Limits School Ave 4 0.45 1.80 1.80 13,000 5,850 City Limits 5 3.45 17.25 17.25 25,330 87,389 College Ave 2 1.27 2.54 2.54 12,000 15,240 Razorback Rd 4 1.26 5.04 5.04 10,350 13,041 Persimmon St 2 1.00 2.00 0.00 n/a 0 North St 4 1.13 4.52 4.52 25,000 28,250 Millsap Rd 5 2.72 13.60 13.60 29,000 78,880 560' S of Joyce Blvd 4 0.97 3.88 3.88 35,000 33,950 980'N of Joyce Blvd 6 0.26 1.56 1.56 35,000 9,100 1973'S of City Limits 4 0.51 2.04 2.04 35,000 17,850 City Limits 6 0.37 2.22 2.22 35,000 12,950 Mission Blvd 3 4.12 12.36 12.36 16,000 65,920 Huntsville Rd 5 2.39 11.96 11.95 14,250 34,058 Wedington Dr 2 2.03 4.06 4.06 11,000 22,330 Maple St 4 0.26 1.00 1.00 14,000 3,500 15th St 4 0.28 1.12 1.12 8,900 2,492 399' w/o D. Solomon 2 0.74 1.48 1.48 4,300 3,182 Van Asche Dr 2 0.81 1.62 1.62 5,300 4,293 Happy Hollow Rd 2 5.10 10.20 10.20 9,800 49,980 College Ave 5 0.76 3.80 3.80 18,000 13,680 Frontage Rd 6 0.09 0.54 0.54 18,000 1,620 228' S of Front St 5 0.11 0.55 0.55 19,000 2,090 Crossover Rd 4 1.37 5.48 5.48 8,900 12,193 Razorback Rd 2 0.25 0.50 0.50 15,000 3,750 City Limits 2 2.37 4.74 4.74 9,780 23,179 Gregg Ave 4 0.50 2.00 2.00 16,000 8,000 Mission Blvd 2 1.01 2.02 2.02 12,310 12,433 Crossover Rd 3 0.22 0.66 0.66 14,000 3,080 15th St 2 1.50 3.00 3.00 11,250 16,875 Ramp 5 0.84 4.20 4.20 6,100 5,124 Highway7l 3 0.09 0.27 0.27 6,100 549 347715 of Willoughby 6 3.33 16.65 16.65 10,700 35,631 City Limits 4 0.65 2.60 2.60 7,800 5,070 Joyce Blvd 4 0.50 2.00 0.00 n/a 0 Adams Rd 2 0.33 0.66 0.00 n/a 0 244' E of 1-540 2 0.24 0.48 0.48 1,100 264 Gregg Ave 2 0.20 0.40 0.40 1,100 22D Steele Blvd 4 0.10 0.40 0.40 1,100 110 709'W of 46th Ave 2 1.76 3.52 3.52 7,800 13,728 duncaniassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 26 Wedington Dr 709' W of 46th Ave Shiloh Dr 5 1.19 5.95 5.95 14,793 17,604 Wedington Or Shiloh Dr Garland Ave 4 1.58 6.32 6.32 15,500 24,490 Willoughby Rd 3981' E of School Ave School Ave 2 0.75 1.50 0.00 n/a 0 Subtotal, Principal Arterials 168.48 162.32 687,943 Black Oak Rd Armstrong Rd City Limits 2 1.79 3.58 3.58 5,000 8,950 Armstrong Rd 15th St Black Oak Rd 2 1.08 2.16 2.16 5,000 5,400 Cato Springs Rd School Ave Razorback Rd 2 0.99 1.98 1.98 1,700 1,683 Dead Horse Mtn Rd Goff Farm Rd City Limits 2 1.14 2.28 2.28 800 912 Deane St Garland Ave Porter Rd 2 1.00 2.00 2.00 6,100 6,100 Double Springs Rd City Limits 299' N of Dot Tipton Rd 2 0.90 1.80 0.00 n/a 0 Drake St Gregg Ave Garland Ave 2 0.78 1.56 1.56 5,200 4,056 Gregg Ave City Limits 1103'S of City Limits 4 0.21 0.84 0.84 6,000 1,260 Gregg Ave 1103' S of City Limits Township St 2 1.72 3.44 3.44 16,000 27,520 Gregg Ave Township St North St 4 1.30 5.20 5.20 19,000 24,700 Huntsville Rd Mashburn Ave Happy Hollow Rd 2 0.73 1.46 1.46 10,000 7,300 Mount Comfort Rd City Limits 1-540 2 1.81 3.62 3.62 8,200 14,842 Old Wire Rd Mission Blvd Skillern Rd 2 2.64 5.28 5.28 8,400 22,176 Porter Rd . Deane St Shiloh Dr 2 0.36 0.72 0.72 6,800 2,448 Pump Station Rd 567' E of City Lake Rd Armstrong Rd 2 0.67 1.34 0.00 n/a 0 Rupple Rd 174' N of Double Tree Mount Comfort Rd 2 0.42 0.84 0.00 n/a 0 Rupple Rd Rupple Rd Persimmon St 2 1.14 2.28 0.00 n/a 0 Shiloh Dr Steele Blvd Gregg Ave 2 0.39 0.78 0.00 n/a 0 Skillern Rd Old Wire Rd City Limits 2 0.65 1.30 1.30 7,830 5,090 Steele Blvd Shiloh Dr Van Asche Dr 3 0.25 0.75 0.00 n/a 0 4 Minor Arterials 44.09 36.30 137,277 Betty Jo Dr Persimmon St Wedington Dr 2 0.51 1.02 0.00 n/a 0 Beachwood Ave 15th St 18th St 2 0.25 0.50 0.00 n/a 0 Austin Dr Ash St Poplar St 2 0.15 0.30 0.00 n/a 0 Ash St Walnut Ave Samantha 2 0.58 1.16 0.00 n/a 0 Appleby Rd Gregg Ave Plainview Ave Ext. 2 1.03 2.06 0.00 n/a ' 0 15th St Beachwood Ave Razorback Rd 2 0.22 0.44 0.00 Wa 0 18th St Futrall Or- Beachwood Ave 2 0.26 0.52 0.00 n/a 0 54th Ave Persimmon St Wedington Or 2 0.65 1.30 0.00 n/a 0 59th Ave Wedington Dr 1071' N of Wedington Dr 2 0.20 0.40 0.00 n/a 0 Brooks Ave 15th St Boone St 2 0.21 0.42 0.00 n/a 0 Broyles Ave City Limits Persimmon 2 1.25 2.50 0.00 n/a 0 Cato Springs Rd Highway 71 1-540 3 0.18 0.54 0.00 n/a 0 Cato Springs Rd 1-540 City Limits 2 0.58 1.16 0.00 n/a 0 Charlee Ave Mission Blvd Charlee Ave Ext. 2 0.23 0.46 0.00 n/a 0 City Lake Rd Pump Station Rd Willoughby Rd 2 1.39 2.78 2.78 1,600 2,224 Cliffs Blvd Crossover Blvd 21B W of Crossover 4 0.04 0.16 0.00 n/a 0 Cliffs Blvd 218' W of Crossover Happy Hollow Rd 4 0.48 1.92 0.00 n/a 0 duncanjassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 27 _. Deane Solomon Rd Dinsmore Trl Drake St Drake St Ernie Jacks Blvd Front St. Frontage Rd Futrall Dr Futrell Dr Futrell Dr Futrall Dr Garland Ave Garrett Dr Goff Farm Rd Gypsum Dr Happy Hollow Rd Happy Hollow Rd Harold St Hollywood Ave Joyce St Leverett Ave Longview St Mall Ave Mall Ave Mally Wagnon Rd Mcconnell Ave Miller St Millsap Rd Millsap Rd Monte Painter Dr Morningside Dr New Bridge Rd Northhills Blvd Old Farmington Rd Old Missouri Rd Old Wire Rd Persimmon St Plainview Ave Poplar St Porter Rd Raven Ln Roberts Rd Rolling Hills Dr Rupple Rd Salem Rd West Mount Comfort Rd 6th St McConnell 1,278' W of Gregg Ave Garland Ave Millsap Rd Joyce Blvd Wedington Dr Freeway Ramp 455'S of6th St Gregg Ave Cato Springs Rd Ernie Jacks Blvd Dead Horse Mtn Rd Salem Rd Cliffs Blvd 886'S of Cliffs Blvd College Ave 6th St Joyce Blvd North St Plainview Ave Joyce Blvd 1,211 S of Joyce Blvd City Limits Knapp Dr Yates Ave Futrell Dr 504' E of Plainview Ave Northhills Blvd Huntsville Rd 155' E of High Ave Monte Painter Dr 6th St Old Wire Rd City Limits 46th St . 367'S of Kenray St Yates Ave Wedington Dr Mount Comfort Rd Huntsville Rd College Ave 600' S of New Bridge Deane Solomon Rd Highway 112 2 1.76 3.52 3.52 1,100 1,936 City Limits 2 0.40 0.80 0.00 n/a 0 Garland Ave 2 0.15 0.30 0.00 n/a 0 Highway 71 4 0.62 2.48 0.00 n/a 0 314' W of Garrett Dr 2 0.13 0.26 0.00 n/a 0 Joyce Blvd 2 0.62 1.24 0.00 n/a 0 Zion Rd 2 0.49 0.98 0.98 8,000 3,920 Freeway Ramp 2 1.74 3.48 3.48 4,000 6,960 455'S of 6th St 3 0.21 0.63 0.63 3,200 672 18th St 2 0.54 1.08 1.08 3,200 1,728 Millsap Rd 2 0.60 1.20 0.00 n/a 0 Brooks Ave 2 0.33 0.66 0.00 n/a 0 1,353' E of Leverett Ave 2 0.36 0.72 0.00 n/a 0 City Limits 2 0.80 1.60 0.00 We 0 Raven Ln 2 0.28 0.66 0.00 • Wa 0 886' S of Cliffs Blvd 4 0.17 0.68 0.00 n/a 0 Huntsville Rd 2 0.55 1.10 1.10 480 264 Stubblefield Rd 2 0.25 0.50 0.00 n/a 0 1210'S of 6th St 2 0.23 0.46 0.00 n/a 0 City Limits 2 0.45 0.90 0.00 n/a 0 Garrett Dr 2 0.96 1.92 1.92 6,800 6,528 College Ave 2 0.15 0.30 0.00 n/a 0 1,211'S of Joyce Blvd 2 0.23 0.46 0.00 n/a 0 Shiloh Dr 3 0.29 0.87 0.00 n/a 0 Huntsville Rd 2 0.25 0.50 0.00 - Na 0 Drake St 2 0.52 1.04 0.00 n/a 0 Gregg Ave 2 0.11 0.22 0.00 n/a 0 504' E of Plainview Ave 3 0.36 1.08 0.00 n/a 0 Vantage Dr 2 0.32 0.64 0.00 n/a 0 Wimberly Dr 2 0.16 0.32 0.00 n/a 0 Pump Station Rd 2 0.96 1.92 0.00 n/a 0 Settlemen Ln 2 0.51 1.02 0.00 n/a 0 Futrall Dr 4 0.21 0.84 0.00 n/a 0 Shiloh Dr 2 0.88 1.76 0.00 n/a 0 Zion Rd 3 2.01 6.03 6.03 6,600 13,266 1,570' N of Skillern Rd 2 0.46 0.92 0.92 1,700 782 54th Ave 2 0.75 1.50 0.00 - n/a 0 Millsap Rd 2 0.34 0.68 0.00 n/a 0 College Ave 2 0.37 0.74 0.00 n/a 0 Deane St 2 0.58 1.16 1.16 2,200 1,276 145' N of Quail Dr 2 0.22 0.44 0.00 Wa 0 City Limits 2 0.16 0.32 0.00 n/a 0 Old Missouri Rd 2 0.71 1.42 1.42 11,000 7,810 Old Mt Comfort 2 0.44 0.88 0.00 n/a - 0 City Limits 2 0.15 0.30 0.00 n/a 0 duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 28 Salem Rd North Salem Rd North Samantha Ave Shepherd Ln Shiloh Dr Shiloh Dr Shiloh Or Shiloh Dr Shiloh Dr Shiloh Dr Shiloh Dr Shiloh Dr Starr Dr Stearns St Stubblefield Rd Sunbridge Dr Sycamore St Sycamore St Sycamore St Township St Trucker's Dr Van Asche Dr Vantage Dr Vantage Dr Walnut Ave Willoughby Rd Wimberly Dr Wyman Rd Yates Ave Subtotal, Collectors City Limits 1,984' S of Mt Comfort 116'S of Ash St Frontage Rd Joyce Blvd Mall Ave Highway 112 1,678' N of Wedington 433' N of 6th St 6th St 345' S o₹ 6th St 326'S of Cato Springs Mission Blvd Joyce Blvd Harold St Villa Blvd Garland Ave Leverett Ave Gregg Ave College Ave Gypsum Dr Steele Blvd Stearns St Joyce Blvd Sycamore St City Lake Rd Monte Painter Dr City Limits Poplar St Mount ComfortRd 2 1.16 2.32 0.00 n/a 0 Wedington Dr - 2 0.67 1.34 0.00 n/a 0 Ash St 2 0.02 0.04 0.00 n/a 0 195' E of Frontage Rd 2 0.04 0.08 0.00 n/a 0 1,157'S of Joyce Blvd 2 0.22 0.44 0.00 n/a 0 Steele Blvd 3 0.39 1.17 0.00 n/a 0 1,925'S of Mt Comfort 2 1.73 3.46 0.00 n/a 0 433' N of 6th St 2 2.02 4.04 4.04 620 1,252 6th St 4 0.08 0.32 0.32 3,700 296 345'S of 6th St 3 0.07, 0.21 0.00 n/a 0 2,010' Not Cato Springs 2 1.09 2.18 0.00 n/a 0 End of Shiloh Dr 2 0.23 0.46 0.00 n/a 0 City Limits 2 0.64 1.28 1.28 n/a 0 120' E of Remington Dr 2 0.11 0.22 0.22 n/a 0 Old Missouri Rd 2 0.56 1.12 1.12 n/a 0 College Ave 2 0.08 0.16 0.00 n/a 0 Leverett Ave 2 0.25 0.50 0.50 5,100 1,275 Gregg Ave 4 0.32 1.28 1.28 8,200 2,624 WalnutAve 2 0.68 1.36 1.36 5,150 3,502 Crossover Rd 2 1.75 3.50 3.50 8,400 14,700 Crystal Spgs subdiv 2 0.17 0.34 0.00 n/a 0 Mall Ave 3 0.37 1.11 0.00 n/a 0 Zion Rd 2 0.37 0.74 0.00 n/a 0 169' N of Joyce Rd 2 0.03 0.06 0.00 n/a 0 Ash St 2 0.13 0.26 0.00 n/a 0 135'S of City Lake 2 0.03 0.06 0.00 n/a 0 Futrall Dr 2 0.23 0.46 0.00 n/a 0 Crossover Rd 2 0.84 1.68 0.00 n/a 0 Miller St 2 0.07 0.14 0.00 n/a 0 101.96 42.20 83,653 Block Ave Dickson St Center St 2 0.25 0.50 0.00 Ma 0 Block Ave Center St Mountain St 1 0.05 0.05 0.00 n/a 0 Assembly Rd Skyline Dr Mission Blvd 2 0.60 1.20 1.20 400 240 6th St School Ave Huntsville Rd 2 0.72 1.44 1.44 8,100 5,832 11th St Duncan Ave Hill Ave 2 0.08 0.16 0.16 1,200 96 Arkansas Ave Dickson St Maple St 2 0.25 0.50 0.50 8,900 2,225 California Blvd Center St Leroy Pond Rd 2 0.36 0.72 0.00 n/a 0 Center St California Blvd Block Ave 2 0.67 1.34 1.34 5,000 3,350 Center St Block Ave East Ave 1 0.05 0.05 0.05 5,000 250 Center St East Ave College Ave 2 0.10 0.20 0.20 5,000 500 Cleveland St Sang Ave Arkansas Ave 2 1.15 2.30 2.30 3,300 3,795 College Ave Rock St 15th St 2 0.87 1.74 1.74 2,300 2,001 Dickson St Fletcher Ave College Ave 2 0.42 0.84 0.84 5,000 2,100 duncanlassociates Fayette 1 e\Road Impact Fee Study May 2, 2006, Page 29 Dickson St College Ave Arkansas Ave 2 0.60 1.20 1,20 11,000 6,600 Duncan Ave 15th St 11th St 2 0.25 0.50 0.50 1,200 300 East Ave Mountain St Dickson St 1 0.30 0.30 030 7,000 2,100 Fletcher Ave Dickson St Lafayette St 2 0.15 0.30 0.00 n/a 0 Government Ave Prairie St 6th St 2 0.09 0.18 0.18 560 50 Greenview Dr Mission Blvd Viewpoint Dr 2 0.13 0.26 0.00 . n/a 0 Hill Ave 6th St 11th St 2 0.31 0.62 0.62 200 62 Huntsville Rd Mill Ave Mashburn Ave 2 0.39 0.78 0.00 n/a 0 Lafayette St Mission Blvd Arkansas Ave 2 1.04 2.08 2.08 7,800 8,112 Leroy Pond Dr California Blvd Razorback Rd 2 0.21 0.42 0.00 Na 0 Leverett Ave Maple St North St 2 0.50 1.00 1.00 7,800 3,900 Maple St Mission Blvd Garland Ave 2 1.43 2.86 2.86 13,000 18,590 Mashburn Huntsville Rd 6th St 2 0.03 0.06 0.00 Na 0 Mill Ave Rock St Huntsville Rd 2 0.08 0.16 0.00 Na 0 Mission Blvd Lafayette St North St 2 0.60 1.20 1.20 12,000 7,200 Mountain St School Ave Block Ave 2 0.21 0.42 0.00 n/a 0 Mountain St Block Ave East Ave 1 0.05 0.05 0.00 n/a 0 Mountain St East Ave College Ave 2 0.10 0.20 0.00 n/a 0 Pembroke Rd Rockwood Trail Ridgeway Dr 2 0.27 0.54 - 0.54 450 122 Prairie St West Ave Government Ave 2 0.12 0.24 0.00 n/a 0 Ridgeway Or Pembroke Rd Viewpoint Dr 2 0.16 0.32 0.00 n/a 0 Rock St College Ave Mill Ave 2 0.10 0.20 0.20 4,400 440 Rockwood Trail Mission Blvd Pembroke Rd 2 0.69 1.38 1.38 400 276 Sang Ave Cleveland St Wedington Dr 2 0.25 0.50 0.00 n/a 0 School Ave Dickson St Archibald Yell Blvd 2 0.58 1.16 1.16 3,000 1,740 Skyline Dr Assembly Rd Assembly Rd 2 0.88 1.76 1.76 190 167 Viewpoint Dr Ridgeway Dr Viewpoint Dr 2 0.47 0.94 0.94 520 244 Subtotal, Historic Collectors 32.15 25.69 70,292 Source: Segment descriptions, number of lanes and segment length in miles from Cityof Fayetteville Public Works Department, verified June 21, 2004; total lane -miles is product of lanes times miles; lane -miles with counts is lane+niles for segments with traffic counts; ADT is annual average daily traffic estimates from Arkansas State Highway and Transportation Department. 02002 Traffic Volumes Map of Fayetteville -Springdale. Washington and Benton Counties" or. where 2002 counts not available, 1992 estimated volumes from DeShazo. Starek 8 Tong, Inc., Prioritization of Roadway Improvements in Fayetteville. Arkansas, August 1992: VMT is product of miles times ADT. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 30 APPENDIX B: ARKANSAS IMPACT FEE ENABLING ACT ARKANSAS CODE, TITLE. 14, CHAPTER 56, SUBCHAPTER 1 14-56-102. Development impact fees. (a) As used in this section: (1) "Capital plan" means a description of new public facilities or of new capital improvements to existing public facilities or of previous capital improvements to public facilities that continue to provide capacity available for new development that includes cost estimates, and capacity available to serve new development; (2) "Development" means any residential, multi -family, commercial, or industrial improvement to lands within the municipality or within the municipal service agency's area of service; (3) `Development impact fee" means: (A) A fee or charge imposed by the municipality or by a municipal service agency upon or against a development in order to generate revenue for funding or for recouping expenditures of the municipality or municipal service agency that are reasonably attributable to the use and occupancy of the development; and (B) Shall not include any ad valorem real property taxes, any special assessments for an improvement district, any utility hookup fees or access fees, or any fees for filing development plats or plans, for building permits or for construction permits assessed by a municipality or a municipal service that are approximately equal to the cost of the plat, plan, or permit review process to the municipality or the municipal service agency; (4) "Municipality" means a city of the first class, city of the second class, or an incorporated town; (5) "Municipal service agency" means: (A) Any department, commission, utility or agency of a municipality, including any municipally -owned or controlled corporation; (B) Any municipal improvement district, consolidated public or municipal utility system improvement district, or municipally -owned nonprofit corporation that owns or operates any utility service; (C) Any municipal water department, waterworks or joint waterworks, or a consolidated waterworks system operating under the Consolidated Waterworks Authorization Act; (D) Any municipal wastewater utility or department; duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 31 (F) Any municipal public facilities board; or (F) Any of these municipal entities operating with another similar entity under a interlocal agreement in accordance with §§ 25-20-101 through 25-20-108 or §§ 25-20-201 through 25- 20-207; (6) "Ordinance" means an municipal impact fee ordinance of municipality or an authorizing rate resolution by a board of commissioners of a consolidated waterworks system authorized to set rates for its customers under the Consolidated Waterworks Authorization Act; (7) "Public facilities" means publicly -owned facilities that are one (1) or more of the following systems, or a portion of those systems: (A) Water supply, treatment, and distribution, for either domestic water or for suppression of fires; (B) Wastewater treatment and sanitary sewerage; (C) Stormwater drainage; (D) Roads, streets, sidewalks, highways and public transportation; (F.) Library; (F) Parks, open space, and recreation areas; (G) Police or public safety, (H) Fire protection; and (I) Ambulance or emergency medical transportation and response. (b) A municipality or a municipal service agency may assess, by ordinance, a development impact fee to offset costs to the municipality or to a municipal service agency that are reasonably attributable to providing necessary public facilities to new development. (c) (1) A municipality or municipal service agency may assess, collect, and expend development impact fees only for the planning, design and construction of new public facilities or of capital improvements to existing public facilities that expand its capacity or for the recoupment of prior capital improvements to public facilities that created capacity that is available to serve new development. (2) The development impact fee may be pledged to the payment of, bonds issued by the municipality or municipal service agency to finance capital improvements or public facilities for which the development impact fee may be imposed.' duncanjassociates Fayetteville\RoadImpact Fee Study May 2, 2006, Page 32 (3) No development impact fee shall be assessed for, or expended upon, the operation or maintenance of any public facility, or for the construction or improvement of public facilities, that does not create additional capacity. (d) (1) A municipality or a municipal service agency may assess and collect impact fees only from new development and only against a particular new development in reasonable' proportion to the demand for additional capacity in public facilities that are reasonably attributable to the use and occupancy of that new development. (2) The owner, resident, or tenant of a property that was assessed an impact fee and paid it in full shall have the right to make reasonable use of all public facilities that were financed by the impact fee. (e) (1) A municipality or municipal service agency may assess, collect, and expend impact fees only under a development impact fee ordinance adopted and amended under this section. (2) A development impact fee ordinance shall be adopted or amended by the governing body of a municipality or municipal service agency only after the municipality or a municipal service agency has adopted a capital plan and level of service standards for all of the public facilities that are to be so financed. ' (3) The development impact fee ordinance shall contain: (A) A statement of the new public facilities and capital improvements to existing public facilities that are to be financed by impact fees and the level of service standards included in the capital plan for the public facilities that are to be financed with impact fees; (B) The actual formula or formulas for assessing the impact fee, which shall be consistent with the level of service standards; (C) The procedure by which impact fees are to be assessed and collected; and (D) The procedure for refund of excess impact fees, in accordance with subsection @) of this section. (f) (1) The municipality or municipal service agency shall collect the development impact fee at the time and manner and from the party as prescribed in the ordinance and shall collect the fee separate and apart from any other charges to the development. (2) (A) A development impact fee shall be collected at either the dosing on the property by the owner or the issuance of a certificate of occupancy by the municipality." (B) However, a municipal water or wastewater department, waterworks, or joint waterworks, or a consolidated waterworks system operating under the Consolidated Waterworks duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 33 .. .. .. •I: . ..-. ..-. f:.,... _ ..:9 -.:.-:. -._-.mac .-......�.. . .... .. ..... ..-...... �. .. Authorization Act may collect a development impact fee in connection with and as a condition to the installation of the water meter serving the property. (3) At closing, the development impact fee that has been paid or will be paid for the property shall be separately enumerated on the dosing statement. (4) The ordinance may include that the development impact fee may be paid in installments at a reasonable interest rate for a fixed number of years or that the municipality or municipal service agency may negotiate agreements with the owner of the property as to the time and method of paying the impact fee. (gi (1) The funds collected under a development impact fee ordinance shall be deposited into a special interest -bearing account. (2) The interest earned on the moneys in the separate account shall be credited to the special fund and the funds deposited into the special account and the interest earned shall be expended only in accordance with this section. (3) No other revenues or funds shall be deposited into the special account. (h) (1) The municipality or municipal service agency shall refund the portion of collected development impact fees, including the accrued interest, that has not been expended seven (7) years from the date the fees were paid. (2) (A) A refund shall be paid to the present owner of the of the property that was the subject of new development and against which the fee was assessed and collected. (B) Notice of the right to a refund, including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property not later than thirty (30) days after the date which the refund becomes due. (C) The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice. (3) (A) The refund shall be made on a pro rata basis, and shall be paid in full not later than ninety (90) days after the date certain upon which the refund becomes due. (B) If the municipality or municipal service agency does not pay a refund in full within the period set in this subsection to any person entitled to a refund, that person shall have a cause of action against the municipality for the refund or the unpaid portion in the circuit court for the county in which the property is located. (t) (1) (A) On and after the effective date of this section, a municipality or municipal service agency shall levy and collect a development impact fee only if levied and collected under ordinances enacted in compliance with this section. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 34 (B) Beginning January 1, 2004, a municipality or municipal service agency shall collect development impact fees under ordinances enacted before the effective date of this section or under ordinances amended after the effective date of this section only if collected in compliance with subsections (E), (g), and (h) of this section. (2) However, except for the compliance with the collection requirements under subsections (f), (g), and (h) of this section, this section does not invalidate any development impact fee or a similar fee adopted by a municipality or municipal service agency before the effective date of this section, nor does this section apply to funds collected under any development impact fee or similar fee adopted before the effective date of this section. (3) In addition, a municipality with a park land or green space ordinance that has been in existence for ten (10) years on the effective date of this section, and any amendments to the ordinance, which allows the option to pay a fee or to dedicate green space or park land in lieu of a fee may continue to be administered under the existing ordinance. D A D A D D D 'n d d1 d� N- N J J o 0 OJ o Z T n r m t In 0 •N 0 m p .. a }zyC •d Vm; N N N N Q'a: O O N a. CM + O N Zoo Oa0 (a. a pa O N P O P O P O C"n` } S. g . �$ N. 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F �t. i'!: r' _ •_ " - r j- F 1 r • n v - , + I i. .. i f. { s f !- J - S i • _ <_ _ _ _ - •s ; • t J a + r i. ..•t S I: u_ _ I, ,,. r r a €e Yr Y- - v E _ ' - s n ' {,• r I • - ` et ] ,r- i f- 4- J- i- � �- ' '- '- fir. ' VS I Fu I i I f r • i ' i i r i t F r t v i F F I ( I } I i Y S i ! ' t� i l i Y 1 i 1 4 i 4 t I — — 7' u a 1 e e r — C_ { C 1 { I t •' J i + — `• 1 a e n i F i I J ° 1 ' � i From: Clarice Pearman To: Conklin, Tim Date: 1.22.07 4:56 PM Subject: Ord. 4973 and 4975 Attachments: 4975 Amend 159.02-159.05.pdf; 4973 Amend 159 & Sp. Election -Impact Fees.pdf CC: Audit Tim: Attached is a copy of the above ordinances passed by the City Council, January 16, 2007. As you can see it was filed at the County Clerk's office today. Let me know if there anything else needed. Thanks. Clarice Clarice Buffalohead-Pearman, CMC City Clerk/Treasurer Division 113 West Mountain Fayetteville, AR 72701 479-575-8309 cpearman@ci.fayetteville.ar.us NORTHWEST ARKANSAS EDITION Benton County Daily Record P. O. BOX 1607 FAYETTEVILLE, AR 72702 PHONE: 479-571-6415 AFFIDAVIT OF PUBLICATION I, Karen Caler, do solemnly swear that I am Legal Clerk of the Arkansas Democrat Gazette newspaper. Printed and published in Benton County Arkansas, (Lowell) and that from my own personal knowledge and reference to the files of said publication, the advertisement of: Ordinance 4973 Was inserted in the Regular Editions: January 25, 2007 Publication Charge: $353.42 Subscribed and sworn to before me Thiday of� culwan' H200' Notary Public My Commission Expires: Sharlene D. Williams Notary Public State of Arkansas My Commission Expires October 18, 2014 RECEIVED JAN2g g 2007 CITY OF FAYETTEy1LL: CITY CLERKS OFFIC: ORDINANCE NO. 4973 AN ORDINANCE TO AMEND TITLE XV UNIFIED DEVELOPMENT CODE OF ING §E15905 CHAR MIR 159. FEES By ENACTING § 159.05 ROAD a e evl IMPACT FEES OF THE UNIFIED DEVELOPMENT Y CODE AND TO REFER THIS ORDINANCE TO THE VOTERS FOR THEIR ADOPTION OR REJECTION ARKANSAS WHEREAS, the protection of the health, safety, and I general welfare of the citizens of Fayetteville require that the streets and roads identified in he capital Improvement Program. the 2003 Traffic and Transportation Study, and Me 2006 Sat!! , ax Bond Proposal (collectively hereinafter Capital Plan') as a Public Facility of the City be expanded and improved to meet the demands of new development; and r WHEREAS, the creation of an equitable development impact fee system would enable the Cal to generate revenue for funding or for recouping the costs of required Capital Plans capacity irrpa ,e- tlents that those developments create: and .1 WHEREAS the City has comprehensively studied the future needs of its citizens and what the city 'reeds to do to meet those needs and adopted a Comprehensive General Plan, the 2025 Plan. The Cary also annually updates its Capital Improvement Program list of future necessary capital knpr ,e- 'nents for all city services including streets and roads: and , WHEREAS, the City commissioned an in-depth Road Impact Fee Study designed to study future street and road capital needs, and the lair and equitable proportion of those capacity improsenlerrt 'reeds that new development should pay. This Impact Fee Study was completed in September'23, 2005. updated on May 2, 2006, and later adopted by the City Council on June 20, 2006 and WHEREAS, the Road Impact Fee Study sets form reasonable methodologies and analysestfor determining the impacts of various types of development 'on the City's need for additional ,pad rapacity improvements: and I WHEREAS, the Road Impact Fees described in this Ordinance are based on the updated Impact 'ee Study, and are designated to generate revenue for funding or for recouping expenditures byMe City of Fayetteville that are reasonably attributable to the use and occupancy of the new dev4p- nests that will pay the fees: and WHEREAS, the Master Street Plan and the Capital Plan constitute an interrelated system that pro - Ades service throughout Fayetteville, and it is therefore appropriate and proper to treat the entire city as a single service area: and WHEREAS, there is both a rational nexus and a rough proportionality between the development mpacts created by each type of new development covered by this Ordinance and the impact faes hat such development will be required to pay: and WHEREAS, this Ordinance creates a system by which Road Impact Fees paid by new dev4Ly_r nents will be used so that the new development that pays each fee will receive a correen9 aenefit within a reasonable period of time after the lee is paid. SOW, THEREFORE, EE IT ENACTED EY THE CITY COUNCIL OF THE CRY OF FAY. ii ARKANSAS, Section 1: That the City Council of the City of Fayetteville, Arkansas hereby amends Chapter 1 the Unified Development Code by enacting § 159.05 Road Impact Fees as shown on Edl attached hereto. Section 2: That the City Council of the City of Fayetteville. Arkansas hereby refers to the pep the City of Fayetteville the above proposed ordinance enacting § 159.05 Road Impact Fees fo adoption or rejection in an election to be held within the City of Fayetteville pursuant to AmeM 7 of the Arkansas Constitution on or about the 10th day of April, 2007. If a majority of electon to adopt the proposed ordinance, then § 15905 Road Impact Fees shall then become the I Fayetteville effective on July 1, 2007. If a majority of electors vote to reject the proposed ordin the Road Impact Fees will not go into effect and § 159.05 shall not be enacted. Section 3'. That the City Council of the City of Fayetteville. Arkansas hereby determines that al acts for which valid building permits have been issued by the City prior to July 1, 2007, sh exempt from Road Impact Fees for the structure constructed pursuant to that building permit. PASSED and APPROVED this 16th day of January, 2007. APPROVED. ATTEST By: BY DAN COODYY Mayer SONDRA SMITH, City CNNMYaaa,War 159.05 Road Impact Fees (A) Applicability (1) The following provisions shall apply to all of the territory within the Cm's corporate city limits, and any area near the corporate limits if specifically agreed by Me owner. 2) The following types of development shall be required to pay a Road Impact Fee: a) New development within one of the categories of development in Table A. (b) Redevelopment involving the construction of one or more additional units within one of the tat- egones of development in Table A. (B) Intent (1) The intent of the Road Impact Fee is to offset costs to the City of Fayetteville laxpayers that ere reasonably attributable to providing necessary capacity improvements to collector or arterial streets b serve new developments. 1 (2) This impact fee charged to new development is to generate revenue for funding or rac log expenditures of the City of Fayetteville that are reasonably attributable to the use and occupan of the new development. 1 (3) This impact fee is to be collected and expended only for the planning, design or construction of new collector or arterial streets or of capital improvements to existing collector or arterial streets that expand their capacity or for the recoupment of prior capital improvements to such collectd or arterial streets that created capacity available to serve new development 1 (4) The intent of this impact fee requirement is to ensure that new development bears a proport(on- ate share of the costs of capacity improvements to the collector and arterial streets, but alsp to ensure that this proportional share does not exceed the costs of the demand for additional capac- ity in those streets that is reasonably attributable to providing these streets to the use and occu- pancy of that new development. 5) This malt impact fee is based upon previous and current City Five Year Capital Irrprov m arngram documents approved annually by City Council Resolution, Me 2003 Trafficerl�}ar�d transportation Study and the Sales Tax Bond Proposal for street improvements (hereinafter ccl - lively referred to as the Capital Plan') and level of service standards adopted within the Road Impact Fee Study of September, 2005, as updated in May, 2006, and elsewhere by the City Council. The Impact Fee Study of May 2, 2006, is incorporated herein and shall be filed in the City Clerks Office and is attached to this Exhibit "A" to explain the methodology and formulas for the d Impact Fees, the levels of services and increases in capacity needed for the Capital Plan. t (6) It is not the intent of this section that any monies collected for the road impact fee ever be mingled or ever be used for a type of facility different from that for which the fee was paid. No i ct fee revenue may be used for operational expenses. (C) Time of Collection This impact fee shall be paid to Me City by the owner of the property before a certificate of odcu- pancy is issued for the new development or at the closing on the property by the purchasing ostler D) Fee Determination (I) Road Impact Fee Table Ii the Impact Fee Administrator shall determine the correct amount of Me Road Impact Fee by uep of Table A and information about the type and size of the new development TABLE A ROAD IMPACT FEES Impact Unit Fee Dwelling $2,363 Pad $1,779 !I` Room $1,319 1000 sq. fl. $2,701 1000 sq. fl. $1,495 1000 sq. fl. $1,676 1000 sq. fl. $ 597 I Redevelopment. Reconstruction, Change of Use. In the event of a redevelopment, recon n or change of use from an existing development or use, the fee shall be the difference bet at the tee would be for the entire redevelopment a reconstruction project and what Me fee ve been for the existing development or use. Enlargement of a single family home will not rf y impact fee. I Mixed Use. If the proposed development includes a mix of the residential, commercial, inc or other uses listed in the impact fee schedule, the lee shall be determined by adding up I ad impact fees that would be applicable for each use type as i1 it was a freestanding land use I Single family and non-profit multi -family supportive housing. Construction of single famil n -profit multi -family supportive housing funded wholly or primarily by federal Comn Nelopment Block Grants, non-profit service organizations such as Habitat for Humanity. He d Urban Development housing bans and similar programs designed to provide affordable, a cupled, single family residences to low income individuals and non-profit multi -family supp using shall be exempted from payment of impact fees pursuant to this ordinance by the In a Administrator. ) Appeal. A person aggrieved by the Impact Fee Adrrnistrator's refusal to grant an Affa fusing Exemption may appeal Me denial to the Planning Commission. ) Use of Fees. I Establishment of Accounts. A Road Impact Fee Fund that is distinct from the General Fr 3 City is hereby created, and the impact fees received will be deposited in this Road Impar I Impact Fee Account. The Road Impact Fee Account shall contain only those impact fee xed pursuant to this Ordinance plus any interest which may accrue from time to time on (F) Order of Use. Monies in the Road Impact Fee Account shall be considered to be spent in'the order collected, on a first-in/first-out basis. I (G) Use of Fees. The funds in the Road Impact Fee Account shall be used only for the follow g: (1) The use of the Road Impact Fees shall be to offset costs to the City of Fayetteville taxpayers that are reasonably attributable to providing necessary collector or arterial street capacity improvement to new development. (2) This impact fee charged to new development shall generate revenue for funding or recouping expenditures of the City of Fayetteville that are reasonably attributable to the use and occupancy of he new development. (3) This impact fee shall be collected and expended only for the planning, design or constr4lon of new collector or arterial streets or of capital improvements to existing collector or arterial streets that expand their capacity or for the recoupment of prior capital improvements to such collector or arterial streets that created capacity available to serve new development. 1 (4) No monies collected for the Road Impact Fee shall ever be commingled or ever be used for a type of facility different from that for which the fee was paid. (5) No impact tee revenue shall be used for operational expenses. (6) All Road Impact Fee revenues shall be spent in accordance with subsection (B) Intent. i (1) The City of Fayetteville shall refund the portion of collected development impact fees, including Me accrued interest that has not been expended seven (7) years from the date the fees were paid. Interest shell be based on a four percent (4%) annual rate. (2) A refund shall be paid to the present owner of the property that was the subject of new ddvel- opment and against which the fee was assessed and collected. (3) Notice of Me right to a refund, including the amount of the refund and the procedure for apply- ing for and receiving the refund, shall be sent or served in writing to the present owners of the piop- arty no later Man thirty (30) days after the date which the refund becomes due. The sending by reg- ular mail of Me notices to all present owners of record shall be sufficient to solsly the requirement of notice. ' (4) The refund shall be made on a pro rata basis, and shall be paid in full no later than ninety 190) days alter Me date certain upon which the refund becomes due. • i (5) Al the time of payment of the Road Impact Fee under this Ordinance, the Impact fee Administrator shall provide the applicant paying such fee with written notice of those circumstances under which refunds of such lees will be made Failure to deliver such written notice shall not IMa- Idate any collection of any impact fee under this ordinance. '