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HomeMy WebLinkAbout114-06 RESOLUTION• 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� • • •� • Vis,, cq •``�RK/TR ,.a .•- Os •• -PS F. :FAYETTEVILLE: APPROVE ATTEST: 9••.9 5 •'ti 9.0 NSP.;)+." . "ti�hQTO$ C°'' PASSED and APPROVED this 20th day of June, 2006. By: ..4, DAN COODY, Mayor, SONDRA SMITH, City Clerk Tim Conklin Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 6/20/2006 City Council Meeting Date Planning and Development Mgt Division Action Required: "265 //et kd Imetrt G c. Operations Department Adoption of the Road Impact Fee Study, May 2006, as prepared by Duncan Associates. Cost of this request Account Number Project Number Budgeted Item Category / Project Budget Funds Used to Date Remaining Balance Budget Adjustment Attached Program Category / Project Name Program / Project Category Name Fund Name Department irec or Date City Attorne FinaJ7(at4etilA Internal Service Director Mayor Comments: Date 44Dale/0(0 Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office Received in Mayor's Office /ENTENED Wad Vat City Council Meeting of June 20, 2006 Agenda Item Number CITY COUNCIL AGENDA MEMO TO: FROM: DATE: SUBJECT: Mayor Dan Coody Fayetteville City Council Tim Conklin, Planning and Development Management Director June 2, 2006 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 SUMMARY Land Use Unit Without ROW With ROW Single -Family Detached Multi -Family Mobile Home Retail Office Industrial Dwelling Dwelling Dwelling 1,000 sq. ft. 1,000 sq. ft. 1,000 sq. ft. $3,409 $2,363 $1,779 $4,023 $2,701 $2,353 $3,722 $2,580 $1,943 $4,393 $2,950 $2,569 Potential Annual Revenue $4,108,043 $4,485,558 Source: Maximum road fees from Table 20; potential revenues from Table 21. RESOLUTION NO. 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. PASSED and APPROVED this 20th day of June, 2006. ATTEST: By: SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, Mayor ROAD IMPACT FEE STUDY FAYETTEVILLE, ARKANSAS prepared by I duncanlassociates May 2006 CONTENTS EXECUTIVE SUMMARY LEGAL FRAMEWORK BACKGROUND DEVELOPER EXACTIONS AND CREDITS SERVICE UNITS IMPACT FEE METHODOLOGY MAJOR ROADWAY SYS ITEM EXISTING DEFICIENCIES COST PER SERVICE UNIT REVENUE CREDITS TRAVEL DEMAND FACTORS POTENTIAL FEES APPENDIX A: MAJOR ROADWAY INVENTORY 26 APPENDIX B: ARKANSAS IMPACT FEE ENABLING ACT 31 LIST OF TABLES AND FIGURES 1 2 4 8 9 10 12 13 15 17 21 24 Table 1: ROAD IMPACT FEE SUMMARY 1 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: SYS I EMWIDE 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: TRAVEL DEMAND SCHEDULE 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 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 RO\V 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 S/mjy: 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 ROAD IMPACT FEE SUMMARY Land Use Unit Without ROW With ROW Single -Family Detached Multi -Family Mobile Home Retail Office Industrial Potential Annual Revenue Dwelling Dwelling Dwelling 1,000 sq. ft. 1,000 sq. ft. 1,000 sq. ft. $3,409 $2,363 $1,779 $4,023 $2,701 $2,353 $3,722 $2,580 $1,943 $4,393 $2,950 $2,569 $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 § 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. \Vater 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: ... the planning, design and construction of new public facilities or of capital improvements to existing public facilities that expand its capaciry or far 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 faciliry, or for the construction or improvement of public facilities, that does not create additional capacity. (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 of impact fees to "providing necessary public facilities," and Section 14-56-102(a)(7) defines "public facilities" to include only the following: (A) Water sappy, treatment, and distribution, for either domestic water or for suppression of fires; (B) IVastewater treatment and sanitary; sewerage; (C) Stormwater drainage; (D) Roads, streets, sidewalks, highways and public transportation; (E) Library; (t) Parks, open space, and recreation areas; (G) Police orpublic safety; (H) .Fire protection; and (L) Ambulance or emergency 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 descnption of new public facilities or of new capital improvements to existing pcb/ic facilities or of previous capita/ improvements to public facilities that continue to provide capacity available for new development that includes cost estimate., and capacihy 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 sense 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 pnb/ic facilities that are to be financed by impact fees and the /eve/ of service standards included in the capital plan for the public facilities that am to befinanced 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 an. to be assessed and collected; and (D) The procedure for refund of excess impaclfees, in accordance with 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. 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 CAPITAL FUNDING BY SOURCE, 2004-2008 Revenue Source Amount Percent Sales Tax Water 8 Sewer Fund Airport Fund Shop Fund Parks Development Fund Solid Waste Fund Off -Street Parking Fund $36,854,000 $12,983,000 $6,755,000 $6,625,000 $2,391,000 $854,000 $113,000 55.4% 19.5% 10.1% 10.0% 3.6% 1.3% 0.2% Total $66,575,000 100.0% 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 FUNDING, 2004-2008 Project Type Amount Percent Streets and Signals Other Transportation Parks Bridge 8 Drainage Other Fire Police Library $12,682,000 $7,706,000 $4,565,000 $3,444,000 $3,122,000 $2,455,000 $1 290,000 $1,590,000 34.4% 20.9% 12.4% 9.3% 8 5% 6.7% 3.5% 4.3% Total $36,854,000 100.0% 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 Bond Issue Ori • inal Issue Ori • inal Amount Outstandin • Sales Tax, Series 1997 (Walton Arts Center) Water 8 Sewer, Series 1999 (Water Main/Tanks) Water 8 Sewer, Series 2002A and 20026 Sales Tax, Series 2002 (Wastewater Treatment/Sewerage) Hotel 8 Restaurant, Series 2003 (Town Center) Sales Tax, Series 2004 1997 1999 2002 2002 2003 2004 $2,610,000 $8,365,000 $9,270,000 $25,000,000 $6,335,000 $35,000,000 $290,000 $5,840,000 $7,700,000 $7,290,000 $6,215,000 $35,000,000 Total $86,580,000 $62,335,000 * 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 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, Statistica/ Abstract of the United States: 2000, Table No. 34, p. 33. duncanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 5 Table 5 POPULATION GROWTH, 1990-2000 1990 2000 Increase Annual Rate Fayetteville Springdale * Other Municipalities* Unincorporated 42,249 29,941 10,503 30,716 58,047 43,787 17,540 38,341 15,798 13,846 7,037 7,625 3.23% 3.87% 5.26% 2.24% Washington County State of Arkansas 113,409 157,715 44,306 3.35% 2,350,624 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 Year Sin . le-Famil Multi-Famil Total 1996 1997 1998 1999 2000 2001 2002 2003 2004 445 265 272 357 279 258 239 611 583 154 281 40 515 272 440 792 1,258 711 599 546 312 872 551 698 1,031 1,869 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/mpactFee Study May 2, 2006, Page 6 EXISTING Table 7 HOUSING UNITS BY TYPE Housing Type 2000 Census 5 yrs. of Permits Estimated Apr. 2005 Single -Family Multi Family Mobile Home/Other 12,663 11,808 855 1,970 3,473 n/a 14,633 15,281 855 Total 25,326 5,443 30,769 Source: 2000 U.S. Census for Fayetteville. AR, SF -3 11 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 duncanlassociates 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 (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 existing water 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 RO\V 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. E 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 developer's 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. 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 (VMI). 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 ADT) and the single hour of the day with the highest traffic volume (peak hour trips or PHT). Available traffic duncanlassociates 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 calculating road 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. 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 May 2, 2006, Page 10 Figure 2 IMPACT FEE FORMULA MAXIMUM FEE = VMT x NET COST/VMT Where: VMT = TRIPS x % NEW x LENGTH + 2 NET COSTNMT = COSTNMT • 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 per daily 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'sMaster StreetPlan, which is an official map that is used in conjunction with the Circulation Element of the 2020 General 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 within Fayetteville's incorporated limits is illustrated in Figure 3. Figure 3 EXISTING MAJOR ROADWAY SYSTEM duncanlassociates 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 -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 TOTAL 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 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 VMT in the system. Clearly, the one-to-one ratio of capacity to demand on which the impact fees arc 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 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 Total 342.63 8,000 2,//3,440 Source: Total lane -miles from Table 22; capacity per lane at LOS D from BWR. Traffic and Transportation Study prepared for the City ofFayetteville, Arkansas. October 2003; total vehicle -miles of capacity IVMCI is lane -miles times capacity per lane. \Vhile 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. duneanlassociates 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 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. dunaanlassociates 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 (I -540t0 Howard Nickell) 0.57 2 5 1.71 $3,151,000 $3,371,000 Howard NickellNan 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 (Mt. Comfort to Wedington) 0.52 0 3 1.56 $3,231,000 $3,341,000 Van Asche (Greggto 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 5255,145 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 -[Wile 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 er 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 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 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 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 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 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 & Maple St Township• Mount Comfort Rd ROW/Intersec Cost Shares Mount Comfort Rd. Highway 265 ROW Morningside Dr & 15h St Zion/College to Frtg Rd Van Asche Blvd Gregg Ave & North St Old Wire It Old Missouri Mission & Old Wire College/Roll Hills/Appleby Traffic Sianals Total Funding, 2004-2008 Township to Fulbright Intersection and Signalization Turn Lanes Intersection and Signalization Intersection Intersection Intersection Signalization Gregg to North College Widening ft 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 Intersections * 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 expandingroad 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. duneanjassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 18 Table 15 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. duneanjassociates 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 ST PER SERVICE UNIT Average Cost per VMT $193.62 $215.60 Revenue Credit per VMT $48.38 $57.00 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 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 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 (VD4T) 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 (VIvfT) 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. duncanjassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 21 Table 17 AVERAGE TRIP LENGTH rr r. 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 Average Trip Length, Miles 4.50 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 B. 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 AVERAGE TRIP LENGTH BY TRIP PURPOSE •IIIII1uIl.I.Mi. p. llJ 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 Shopping 6.56 na 0.46 3.0 Source: Average trip lengths in miles; national data from US. Department of Transportation, National 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 data by ratio, estimated local residential trip length is weighted 40% local work trip length and 60% average trip length. duneanlassociates 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 by various land use 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 1000sq.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 dailytrips 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 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. duneanlassociates Fayetteville\Road Impact Fee Study May 2, 2006, Page 24 Table 21 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 Impact Fee Study May 2, 2006, Page 25 APPENDIX A: MAJOR ROADWAY INVENTORY Table 22 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'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 11.95 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 Wedington Dr Shiloh Dr Subtotal, Principal Arterials Black Oak Rd Armstrong Rd Cato Springs Rd Dead Horse Mtn Rd Deane St Double Springs Rd Drake St Gregg Ave Gregg Ave Gregg Ave Huntsville Rd Mount Comfort Rd Old Wire Rd Porter Rd Pump Station Rd Rupple Rd Rupple Rd Shiloh Dr Skillern Rd Steele Blvd Armstrong Rd 15th St School Ave Goff Farm Rd Garland Ave City Limits Gregg Ave City Limits 1103'S of City Limits Township St Mashburn Ave City Limits Mission Blvd Deane St 567 E of City Lake Rd 174' N of Double Tree Rupple Rd Steele Blvd Old Wire Rd Shiloh Dr Subtotal, Minor Arterials Betty Jo Dr Beachwood Ave Austin Dr Ash St Appleby Rd 15th St 18th St 54th Ave 59th Ave Brooks Ave Broyles Ave Cato Springs Rd Cato Springs Rd Charlee Ave City Lake Rd Cliffs Blvd Cliffs Blvd Persimmon St 15th St Ash St Walnut Ave Gregg Ave Beachwood Ave Futrall Dr Persimmon St Wedington Dr 15th St City Limits Highway 71 1-540 Mission Blvd Pump Station Rd Crossover Blvd 218' W of Crossover Shiloh Dr 5 1.19 5.95 5.95 14,793 17,604 Garland Ave 4 1.58 6.32 6.32 15,500 24,490 School Ave 2 0.75 1.50 0.00 n/a 0 168.48 162.32 687,943 City Limits 2 1.79 3.58 3.58 5,000 8,950 Black Oak Rd 2 1.08 2.16 2.16 5,000 5,400 Razorback Rd 2 0.99 1.98 1.98 1,700 1,683 City Limits 2 1.14 2.28 2.28 800 912 Porter Rd 2 1.00 2.00 2.00 6,100 6,100 299' N of Dot Tipton Rd 2 0.90 1.80 0.00 n/a 0 Garland Ave 2 0.78 1.56 1.56 5,200 4,056 1103'S of City Limits 4 0.21 0.84 0.84 6,000 1,260 Township St 2 1.72 3.44 3.44 16,000 27,520 North St 4 1.30 5.20 5.20 19,000 24,700 Happy Hollow Rd 2 0.73 1.46 1.46 10,000 7,300 1-540 2 1.81 3.62 3.62 8,200 14,842 Skillern Rd 2 2.64 5.28 5.28 8,400 22,176 Shiloh Dr 2 0.36 0.72 0.72 6,800 2,448 Armstrong Rd 2 0.67 1.34 0.00 n/a 0 Mount ComfortRd 2 0.42 0.84 0.00 n/a 0 Persimmon St 2 1.14 2.28 0.00 n/a 0 Gregg Ave 2 0.39 0.78 0.00 n/a 0 City Limits 2 0.65 1.30 1.30 7,830 5,090 Van Asche Dr 3 0.25 0.75 0.00 n/a 0 College Ave 2 0.44 0.88 0.88 11,000 4,840 44.09 36.30 137,277 Wedington Dr 18th St Poplar St Samantha Plainview Ave Ext. Razorback Rd Beachwood Ave Wedington Dr 1071' N of Wedington Dr Boone St Persimmon 1-540 City Limits Charlee Ave Ext. Willoughby Rd 218' W of Crossover Happy Hollow Rd 2 0.51 1.02 0.00 n/a 0 2 0.25 0.50 0.00 n/a 0 2 0.15 0.30 0.00 n/a 0 2 0.58 1.16 0.00 n/a 0 2 1.03 2.06 0.00 n/a 0 2 0.22 0.44 0.00 n/a 0 2 0.26 0.52 0.00 n/a 0 2 0.65 1.30 0.00 n/a 0 2 0.20 0.40 0.00 n/a 0 2 0.21 0.42 0.00 n/a 0 2 1.25 2.50 0.00 n/a 0 3 0.18 0.54 0.00 n/a 0 2 0.58 1.16 0.00 n/a 0 2 0.23 0.46 0.00 n/a 0 2 1.39 2.78 2.78 1,600 2,224 4 0.04 0.16 0.00 n/a 0 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 Futrall Dr Futrell Or Futrell Dr Garland Ave Garrett Or 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 Wag non 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'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 C College Ave 2 0.37 0.74 0.00 n/a 0 Deane St 2 0.58 1.16 1.16 2,200 1,27E 145' N of Quail Dr 2 0.22 0.44 0.00 n/a C City Limits 2 0.16 0.32 0.00 n/a C Old Missouri Rd 2 0.71 1.42 1.42 11,000 7,81C Old Mt Comfort 2 0.44 0.88 0.00 n/a C City Limits 2 0.15 0.30 0.00 n/a C 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 Dr 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'Sof6th 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' 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 Futrell 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 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 duncanlassociates Fayetteville\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 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 LeverettAve 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 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 daily traffic 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 & Tang, 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 (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 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; (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. duneanlassociates 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; (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 (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." (B) However, a municipal water or wastewater department, waterworks, or joint waterworks, or a consolidated waterworks system operating under the Consolidated Waterworks duneanlassociates 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. duneanlassociates 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 (0, (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 From: Clarice Pearman To: Conklin, Tim Date: 6.26.06 12:55PM Subject: Res. 114-06 Tim, Attached is a copy of the above resolution passed by City Council, June 20, 2006. Thanks. Clarice CC: Audit