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HomeMy WebLinkAboutRES 05-31RESOLUTION NO.05-31 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,DECLARING AS PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE CITY CLERK ENTITLED "APACHE JUNCTION CITY CODE VOLUME II,LAND DEVELOPMENT CODE,CHAPTER 7,ARTICLE 7-1, DEVELOPMENT FEES",SECTION 7-1-2 ROAD DEVELOPMENT FEES. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA: That certain document entitled "APACHE JUNCTION CITY CODE VOLUME II,LAND DEVELOPMENT CODE,CHAPTER 7,ARTICLE 7-1 DEVELOPMENT FEES",SECTION 7-1-2 ROAD DEVELOPMENT FEES three copies of which are on file in the Office of the City Clerk,is hereby declared to be a public record,and said copies are ordered to remain on file with the City Clerk. PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION,ARIZONA,THIS 15TH DAY OF NOVEMBER,2005. SIGNED AND ATTESTED TO THIS 15TH DAY OF NOVEMBER,2005. Mayor ATTEST: KATHLEEN CONNELLY City Clerk RESOLUTION NO.05-31 PAGE 1 OF 2 APPROVED AS TO FORM: to.3).oS R.JOEL STERN City Attorney RESOLUTION NO.05-31 PAGE 2 OF 2 A prepand for THE CITY ••-iF ACHE JUNCTION, ARIZ° prepared by cflann mn associates AUSTIN, TEXAS OCTO ER 2005 CONTENTS INTRODUCTION ...............................................................1 BACKGROUND ................................................................. ROADWAY EXACTIONS ......................................................... SERVICE UNIT ..................................................................2 SERVICE AREA .................................................................3 METHODOLOGY ...............................................................3 MAJOR ROADWAY SYSTEM .....................................................5 COST PER SERVICE UNIT .......................................................9 NET COST PER SERVICE UNIT .................................................11. DEMAND AND COST SCHEDULE ...............................................13 ORDINANCE AMENDMENTS ...................................................18 .APPENDIX A: DEMOGRAPHIC DATA ...........................................19 APPENDIX B:STUDY COST ....................................................20 LIST OF TABLES Table 1:MAJOR ROADWAY INVENTORY ....................................6 Table 2:TRAVEL AND DEMAND ON MAJOR STREET NETWORK .............9 Table 3:ROADWAY CONSTRUCTION COSTS PER LANE -MILE ...............10 Table 4:ALTERNATIVE ROADWAY CONSTRUCTION COSTS PER LANE -MILE 11 Table 5:ROAD COST PER SERVICE UN IT ...................................11 Table 6:ANNUAL ROAD REVENUE ........................................12 Table 7:ROAD REVENUE CREDIT PER VMT ................................12 Table 8:ROAD NET COST PER SERVICE UNIT ..............................13 Table 9:AVERAGE TRIP LENGTH ..........................................14 Table 10:ROAD SERVICE UNIT GENERATION BY LAND USE TYPE ..........15 Table 11:ROAD NET COST BY LAND USE TYPE .............................16 Table 12:POTENTIAL CHANGE IN ROAD FEES ..............................17 Table 13:DWELLING UNITS BY TYPE, 2005 ..................................19 Table 14:EXISTING NONRESIDENTIAL DEVELOPMENT ....................19 Table 15:STUDY COST PER SERVICE UNIT ..................................20 prepared by Duncan Associates Clancy Mullen, Principal Author 13276 Research Boulevard, Suite 208, Austin, TX 78750 (512) 258-7347x204, clancy@duncanplan.com INTRODUCTION Development fees are a way for local governments to require new developments to pay a proportionate of the infrastructure costs they impose on the community.In contrast to traditional "negotiated" developer exactions, development fees are charges that are assessed on new development using a standard formula based on objective characteristics, such as the number of dwelling units constructed or vehicle trips generated.The fees are one-time, up -front charges, with the payment usually made at the time of building permit issuance. Essentially, development fees require that each new development project pay its pro -rata share of the cost of new capital facilities required to serve that development. Since development fees were pioneered in states that lacked specific enabling legislation, such fees have generally been legally defended as an exercise of local government's broad "police power" to regulate land development in order to protect the health, safety and welfare of the community. The courts have developed guidelines for constitutionally valid development fees and exactions, based on "dual rational nexus" and "rough proportionality" standards. The standards set by court cases generally require that a development fee meet a three-part test: 1)The need for new facilities must be created by new development (first prong of the dual rational nexus test); 2)The expenditure of fee revenues must provide benefit to the fee -paying development (second prong of the dual rational nexus test); 3)The amount of fee charged must not exceed a proportional fair share of the cost to serve new development (rough proportionality standard). While Arizona's development fee enabling act for municipalities, Sec. 9-463.05 A.R.S., reflects these constitutional standards, it gives municipalities broad authority to impose development fees. The primary requirement is that the amount of the fee must bear a "reasonable relationship to the burden imposed upon the municipality to provide additional necessary public services to the development." In addition, the fees must "result in a beneficial use to the development," and appropriate credits or offsets must be provided for developer contributions, whether in cash or in kind.This enabling authority is fairly unusual in that (1) it does not expressly list or limit the types of infrastructure for which development fees can be developed, and (2) it does not set forth a specific methodology for the calculation of the fees. Thus, Arizona municipalities can consider the use of development fees to help finance any type of facility for which it can demonstrate a relationship between new development and the need for additional capital facilities that result in "costs to the municipality." A major constraint in the development fee enabling act is the time required to enact or increase development fees.Following completion of the written study, a minimum of 164 days (more than five months) must pass before the new fees can take effect.According to Sec. 9-463.05(C): A municpaliy shall give at least sixty cfrys' advance notice of intention to assess a new or increased development fee and shall release to the public a written report induding all documentation that supports the assessment of a new or increased development fee. The munia'palio shall conduct a public hearing on the proposed new or increased development fee at any time e'er the eNpiration of the sixty day notice of intention to assess a new or increased development fee and at least fourteen days prior to the scheduled Road Development Fee Update Apache Junction, AZ duncan associates October 24, 2005 Page 1 date of adoption of the new or increased fee by the governing body. A development fee assessed pursuant to this section shall not be effective until ninety day O'er its formal adoption by the governing body of the municOaliO. BACKGROUND The City of Apache Junction first adopted road impact fees on 13ecember 17, 1996, with the ordinance becoming effective on March 1, 1997.The fees were phased -in over a two -month period, and were assessed at 100 percent beginning May 1, 1997.Following an update study, a revised ordinance was adopted on February 3, 1998, and the updated fees became effective on May 4, 1998. The most recent update study was prepared in November 2001.The ordinance was adopted on May 7, 2002, and the fees became effective on August 6, 2002. ROADWAY EXACTIONS While the provision of internal local and collector streets is clearly the responsibility of the developer, improvements to the major road system, including arterials and major collectors, are typically funded partially by the private sector and partially by the public sector. The private sector is required to dedicate and construct planned arterials and major collectors that lie within or adjacent to a subdivision, while state and local governments typically pay the cost of widening projects or new roads needed to accommodate the off -site traffic impacts of new development. Road development fees are a means of shifting the cost of off -site improvements to the new development that creates the need, while also ensuring through development fee credits that no development is required to contribute more than its proportionate share of the cost of major road facilities. The City's subdivision regulations require that where a proposed subdivision includes a planned street designated in the adopted Street Classification Plan, such street shall be platted and constructed in conformance with the Plan. Arterials, including section line roads, must have a minimum right-of-way (ROW) width of 100 feet and a minimum pavement width, excluding curbs, of 60 feet. Major collectors, including mid -section line roads, must have a minimum ROW width of 80 feet and a minimum pavement width of 48 feet.Collector streets must have a minimum ROW width of 60 feet and a minimum pavement width of 40 feet. SERVICE UNIT Service units create the link between supply (roadway capacity) and demand (traffic generated by new development). An appropriate service unit for road development fees is vehicle -miles of travel (VMT) during an average weekday. 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 time period was chosen based on the availability of data on average daily trips (AM). The VMT that will be generated by a proposed development is determined, in general terms, by multiplying the trip generation rate by the average length of a trip in miles. The total VMT on the major Road Development Fee Update Apache Junction, AZ diancenlassoclates October 24, 2005 Page 2 road system is determined by multiplying the length, in miles, of each road segment by the average daily traffic count and summing the results for all roadway segments. The supply side is represented by vehicle -miles of capacity (VMC).For a roadway, the VMC provided is simply the product of the capacity of the roadway and the length of the roadway.The capacity supplied by a road improvement is determined by multiplying the capacity of the new lanes by the length of the road improvement. SERVICE AREA The City's road development fee currently applies city-wide.The updated road development fees will not apply within the City's infill incentive districts. The infill districts are three areas along West Apache Trail where the City desires to encourage infill and redevelopment (see Figure 1).The districts were established by Resolution No. 04-25, adopted by the City on October 19, 2004.These areas are to be excluded from the road development fee service area, meaning that no road development fees will be collected in this area, and no road development fee funds will be spent on capital improvements in this area. Figure 1 INFILL AREA EXCLUDED FROM ROAD DEVELOPMENT FEES METHODOLOGY The current road development fee methodology is based on a modified "consumption -based" model. The consumption -based model basically charges a new development the cost of replacing the capacity that it consumes on the major road system.That is, for every service unit of traffic generated by the development, the development fee charges the net cost to construct an additional service unit of capacity. Since travel is never evenly distributed throughout a roadway system, actual roadway systems require more than one VMC for every VMT in order to keep most road segments functioning at an Road Development Fee Update Apache Junction, AZ duneanlassociates October 24, 2005 Page 3 acceptable level of service.Consequently, the consumption -based road development fee model generally underestimates the full cost of growth.It is, however, a conservative, legally sound and relatively simple approach to the calculation of road development fees. While the consumption -based model is probably the most commonly -used approach for road development fees in the nation, many communities have used other models.The most common alternative is the "improvements -driven" model. 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., VMT) projected to be generated by growth over the same planning horizon in order to determine a cost per service unit.This approach requires a sophisticated level of planning, as well as consideration of fiscal constraints in developing the capital improvements plan to ensure that it does not include low priority, marginally -needed improvements. Despite these difficulties, the improvements -driven model can come closer to capturing the full cost of maintaining desired levels of service on most roadway segments than the consumption -based approach. The consultant has developed a modification to the standard consumption -based road development fee model that more accurately identifies the full growth -related cost of maintaining desired service levels, while avoiding the difficulties associated with the improvements -driven approach. Essentially, the idea is that new development should be required to pay for the cost to construct more capacity than it directly consumes in order to maintain the system -wide ratio of capacity to demand. This methodology has been used as the basis of road development fees in several other communities, including Atlanta, Georgia, Rio Rancho, New Mexico and Larimer County, Colorado. In the standard consumption -based model, the VMT generated by a development is multiplied by the cost per VMC of new roadway capacity to develop the development fee.Implicit in this formula is the conversion of the cost per VMC to a cost per VMT.In other words, the standard model implicitly assumes that the ratio of VMC to VMT is One-to-one.The "modified" approach simply makes the implicit VMC/VMT ratio an explicit part of the formula, as shown in Figure 2. Figure 2 ROAD DEVELOPMENT FEE FORMULA FEE =VMT x NET COST/VMT VMT =TRIPS x % NEW x LENGTH —2 NET COST/VMT =COST/VMT - CREDIT/VMT COST/VMT =COST/VMC x VMCNMT Where: VMT =Vehicle -miles of travel placed on the major roadway system during an average week day TRIPS =Average daily trip ends % NEW =Percent of trips that are primary trips, as opposed to passby or diverted -link trips LENGTH =Average length of a trip on major roadway system ÷ 2 =Avoids double -counting trips for origin and destination COSTNMC =Average cost to create a new vehicle -mile of capacity (VMC) VMCNMT =The system -wide ratio of capacity to demand on the major roadway system CREDIT/VMT =Revenue credit_per VMT Road Development Fee Update Apache Junction, AZ chonceralassociates October 24, 2005 Page 4 MAJOR ROADWAY SYSTEM The City's road development fees are designed to cover the costs of capacity -expanding improvements to the City's major roadway system.For the purpose of road development fees, the major roadway system includes all City -maintained roadways designated as arterials or collectors in the City's adopted Street Classification Map,which was most recently revised in July 2001. State -maintained roadways, which in Apache Junction are limited to the Superstition Freeway and portions of Idaho Road and North Apache Trail, are excluded from the definition of the major roadway system because the City has limited responsibility for paying for improvements to state roads. In addition, responsibility for some boundary roads is shared with the adjoining counties, and only one-half of the travel demand and capacity of such roadways is considered to be part of the City's major roadway system. Developers required to construct portions of the major roadway system are eligible for credit against their road development fees. To determine system -wide demand and capacity on the City's major roadway system, an inventory of all roadway segments that are included in the major roadway system and are located within the existing City limits was prepared (see Table 1).Current daily traffic volumes were estimated for each roadway segment from the most recent available traffic data.The daily volumes for each segment were then multiplied by the length of the segment to determine existing VMT. For each segment, existing VMC was determined by multiplying the length of the segment by the capacity of the segment. The actual capacity of an individual roadway segment is affected by a host of factors,including frequency of signalized intersections,signal timing,intersection configuration (including turn lanes), lane width, percent of truck traffic, etc.The engineering analysis required to precisely estimate the capacity of individual segments is generally not appropriate for development fee analysis, however, both because it would be prohibitively expensive and because it is simply not practical to do for future roadway improvements in advance of engineering design.Instead, the planning -level capacity estimates adopted by the local government or used in a regional transportation model are typically used to determine the approximate capacity of existing and future roadways for the purpose of development fee calculations. The previous studies have used a generalized capacity estimate of 6,000 vehicles per day per lane as a reasonable approximation of the capacity of the City's major roadways, and this capacity figure will continue to be used in this update. The inventory of the City's existing major roadway system are summarized in Table 1.The existing major roadway system is illustrated in Figure 2.• Road Development Fee Update Apache Junction, AZ dametwolossociates October 24, 2005 Page 5 Table 1 MAJOR ROADWAY INVENTORY M g = Length •# of % City (mi.)Lanes Maint.ADT VMT VMC Superstition W Apache Trail N Apache Trail Broadway Ave Southern Ave Meridian Drive Ironwood Drive Idaho Road Tomahawk Rd Meridian -Ironwood Ironwood -Idaho Idaho -N Apache Trail N Apache Tr -Tomahawk Tomahawk -Goldfield Goldfield -E. City Limits Meridian -Ironwood lronwood-N Apache Trail W Apache Trail -Idaho Meridian -Ironwood Ironwood -Idaho Idaho -Old West Highway Old West Hwy -Tomahawk Tomahawk -Goldfield Goldfield -Arroyo Meridian -Ironwood Ironwood -1/4 mi. east 1/4 mi. east -Idaho Idaho -Winchester Winchester -Cactus Cactus -Tomahawk Tomahawk -Goldfield McKellips-Lost Dutchman Lost Dutchman -Superstition Superstition -W Apache Tr W Apache Trail -Broadway Broadway -Southern McKellips-Lost Dutchman Lost Dutchman -Superstition Superstition -W Apache Tr W.Apache Trail -Broadway Broadway -Southern Southern -Superstition Fwy Superstition Fwy-Baseline Baseline -Elliot Align McKellips-Lost Dutchman Lost Dutchman -Superstition Superstition -N Apache Tr Superstition Fwy7Baseline Lost Dutchman -SR 88 N Apache Tr -Superstition Superstition Blvd -Broadway Broadway -Old West Hwy Old West Hwy -Southern Southern -Superstition Fwjf 1.00 1.00 0.25 0.75 1.00 0.50 1.00 0.75 0.40 1.00 1.00 0.50 0.50 1.00 0.50 1.00 0.25 0.75 0.25 0.25 0.25 1.00 1.00 1.00 0.50 0.50 1.00 1.00 1.00 0.50 0.50 1.00 0.50 0.50 2.00 1.00 1.00 0.20 0.50 0.40 0.60 1.00 0.33 0.67 0.50 100% 100% 100% 100% 100% 100% .100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50% 50% 100% 50% 50% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 10,824 10,406 10,000 3,427 3,729 2,000 25,063 24,461 4,044 10,710 8,133 2,766 1,859 3,000 2,000 7,061 5,000 5,000 4,000 4,000 4,000 1,000 1,901 7,249 6,806 9,156 7,956 2,090 8,706 8,177 11,887 15,321 18,394 3,000 2,000 1,748 7,666 7,933 1,000 1,000 3,755 1,292 1,159 3,715 5,351 10,824 10,406 2,500 2,570 3,729 1,000 25,063 18,346 1,618 10,710 8,133 1,383 930 3,000 1M00 7,061 1,250 3,750 1,000 1,000 1,000 1,000 951 3,625 3,403 2,289 3,978 2,090 8,706 4,089 5,944 15,321 9,197 1,500 4,000 1,748 7,666 1,587 500 400 2,253 1,292 382 2,489 2,676 30,000 30,000 7,500 9,000 12,000 6,000 36,000 27,000 4,800 24,000 24,000 6,000 6,000 12,000 6,000 12,000 3,000 9,000 6,000 3,000 3,000 12,000 6,000 6,000 6,000 3,000 6,000 12,000 12,000 6,000 15,000 30,000 15,000 6,000 24,000 12,000 12,000 4,800 6,000 4,800 7,200 12,000 3,960 8,040 6,000 Road Development Fee Update Apache Junction, AZ '01411A0M7D associates October 24, 2005 Page 6 N41711=1 Segment Length #1of % City (mi.)Lanes Maint.ADT VMT VMC Goldfield Road Old West Hwy Lost Dutchman Tepee St Cortez Rd Delaware Ave Baseline Rd 16th Avenue S Royal Palm San Marcos Dr S Phelps Drive Superstition Fwy-Baseline Lost Dutchman -Superstition Superstition -Broadway Broadway -Old West Hwy Southern -Superstition Fwy Superstition Fwy-Baseline W Apache Trail -Broadway Broadway -Tomahawk Tomahawk -Goldfield Meridian -Ironwood Ironwood -Idaho Idaho -N Apache Trail N Apache Tr -Goldfield Meridian -Idaho Rd Meridian -Delaware Delaware -Ironwood Ironwood -Idaho Rd Old W Hwy -Lost Dutchman Lost Dutchman -Superstition Superstition -W Apache Tr W Apache Trail -Broadway Broadway -W 16th Ave W 16th Ave -Southern W City Limits -Meridian Meridian -Ironwood Ironwood -Idaho Idaho -Tomahawk Tomahawk -Goldfield Delaware -Ironwood Ironwood -San Marcos San Marcos -Idaho Idaho -S Royal Palm Old West Hwy -Southern Broadway -W 16th Ave W 16th Ave -Southern Apache Tr Intrsct-Broadway 0.50 1.00 1.00 1.00 0.50 0.50 0.90 0.55 1.16 1.00 1.00 1.40 0.60 2.00 0.50 0.50 1.00 2.75 1.00 0.50 0.50 0.50 0.50 0.15 1.00 1.00 1.00 1.00 0.50 0.50 0.50 0.50 1.00 0.50 0.50 0.50 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 2,000 1,000 1,000 2,000 7,000 1,000 17,000 17,000 8,000 4,893 3,000 2,000 1,000 1,000 706 633 639 1,000 1,232 3,044 2,899 2,994 0 3,013 2,474 1,330 1,570 747 1,000 2,000 2,000 1,000 2,000 3,082 3,000 8,056 1,000 1,000 1,000 2,000 3,500 500 15,300 9,350 9,280 4,893 3,000 2,800 600 2,000 353 317 639 2,750 1,232 1,522 1,450 1,497 0 452 2,474 1,330 1,570 747 500 1,000 1,000 500 2,000 1,541 1,500 4,028 12,000 12,000 12,000 12,000 15,000 6,000 21,600 13,200 27,840 12,000 12,000 16,800 7,200 24,000 6,000 6,000 12,000 33,000 12,000 6,000 6,000 6,000 0 1,800 12,000 12,000 12,000 12,000 12,000 12,000 6,000 6,000 12,000 6,000 6,000 6,000 Total 287 84 918,540 Source:Streets are City -maintained roadways identified as urban arterials or urban collectors in the City of Apache Junction Street Classification Map; only road segments within existing City limits are included; number of lanes from Kirkham Michael,City of Apache Junction Small Area Transportation Study,May 2004; boundary roads are shown at reduced "% City -maintained" to reflect shared responsibility with adjoining county where applicable;ADT are 2004 average annual daily traffic (AADT) volumes from City Engineering Department, May 2004; vehicle -miles of travel (VMT) is product of length, % City -maintained and ADT; vehicle -miles of capacity (VMC) is product of length, number of lanes, % City -maintained and daily capacity of 6,000 vehicles/lane. Road Development Fee Update Apache Junction, AZ ellt111711011117)1associates October 24, 2005 Page 7 1 r at a—r W •:•-•411129 41 1 '3 1 e i. 111 —66 1-21.-111 -1 -1111.a3-`.."---11121V17 21IU • 0-4,,>•32 -0 4 -64-0-0:4 -0 -0-ere-331.0-0 ..9".01111.)•flIC00.1 3 3V1 Figure 3 MAJOR ROADWAY SYSTEM f l , .4MM.II•Vi -13.- 8.9 Arterial !ono* Collector 25 i 0 0*0 0 Freeway j 0 6n 0 0 State Rte. i - - -.?1, I, • 25 51-0o340,3a4e4oi..3.3•34-6-3 t • '7„.71 15 :1e6 3 31.3 1466.01E.A.A. i.4.9011 I 1 3 I is 7'77 11- 4: 36 Road Development Fee Update Apache Junction, AZ duncan associates October 24, 2005 Page 8 A comparison of existing VMT and VMC for each seg,inent indicates that none of the roadway segments are currently operating over capacity.As described in the methodology section,however,the appropriate level of service measure for a consumption -based road development fee is not a segment- specific measure, but a system -wide measure. In fact, the City's existing major roadway system currently provides over three units of capacity for every demand unit, as shown in Table 2. FIowever, a considerably lower ratio of 1.5 -to -one is recommended for use in the development fee calculations. Table 2 TRAVEL AND DEMAND ON MAJOR STREET NETWORK Vehicle -Miles of Travel (VMT) Vehicle -Miles of Capacity (VMC) 287,984 918,540 Current Ratio of System -wide VMC to VMT Recommended VMCNMT Ratio 3.19 1.50 Source:VMT and VMC from Table 1. COST PER SERVICE UNIT The costs of adding new capacity to the major roadway network vary significantly from one community to another. Local roadway design standards, including such things as landscaped medians for four -lane arterials, can also significantly affect costs. There are three major capacity -enhancing roadway improvements that were undertaken by the City with proceeds from the 1998 bond issue.The three projects are Broadway from Meridian to Idaho, Ironwood from Apache Trail to Superstition, and Superstition from Meridian to Idaho. All of these are two-lane to four -lane widening projects. However, there arc a number of reasons why the cost per lane- mile used in the fee calculations should not be based on the bonded amounts for these three projects. First, these costs do not include the full cost of paving—the costs in the bond issue reflect a City subsidy of the paving crews' labor. Second, engineering and contract administration costs are real costs of these projects that are not reflected in the bond issue figures.Finally, the cost estimates do not include landscaping costs, which are required by the City's development ordinance. Because of these issues and the limited number of planned capacity projects, an alternative lane -mile cost estimate was prepared based on unit construction cost and quantity estimates. The estimated cost for new four -lane roads and two- to four -lane widening projects averages $871,016 per lane -mile, as shown in Table 3.It should be noted that the cost estimation procedure does not include right-of-way (ROW) costs.The City's current ordinance does not provide for credit against the road development fees for ROW dedication, since ROW costs are not included in the fee. Road Development Fee Update Apache Junction, AZ dItorposanti associa*. October 24, 2005 Page 9 Table 3 ROADWAY CONSTRUCTION COSTS PER LANE -MILE Item , Unit l Unit Cost New Units 4 -Lane Cost/Mile Widen Units 2 -4 -Lane Cost/Mile Excavation c.y.$2.31 15,644 $36,138 9,387 $21,684 Asphalt Concrete Pavement ton $55.39 7,656 $424,066 4,594 $254,462 Aggregate Base ton $13.85 21,859 $302,747 13,116 $181,657 Curb Er Gutter, Type A I.f.$13.85 10,560 $146,256 5,280 $73,128 Loop Detector for Signals ea.$1,154.00 12 $13,848 8 $9,232 Elect. Conduit 2" PVC intersect I.f.$5.77 320 $1,846 320 $1,846 Elect. Conduit 2" PVC st lights I.f.$5.77 10,560 $60,931 5,280 $30,466 Street Light Pole ea.$4,039.00 28 $113,092 14 $56,546 Pullbox (No. 7)ea.$346.20 8 $2,770 8 $2,770 Pole (Type R)ea.$5,139.00 8 $41,112 8 $41,112 Pole Foundation (Type R)ea.$2,077.20 8 $16,618 8 $16,618 Mast Arm (50 Ft)ea.$2,769.60 8 $22,157 8 $22,157 Traffic Signal Face (Type R)ea.$605.85 8 $4,847 8 $4,847 Pedestrian Pushbutton ea.$288.50 8 $2,308 8 $2,308 Control Cabinet (Type IV)ea.$17,310 2 $34,620 2 $34,620 Storm Drain Pipe, 24"I.f.$51.93 560 $29,081 560 $29,081 Storm Drain Pipe, 36"I.f.$80.78 5,280 $426,518 5,280 $426,518 Storm Drain Pipe, 48" w/headwall I.f.$126.94 400 $50,776 200 $25,388 Cross Drain, 45(6 CBC w/headwall I.f.$403.90 200 $80,780 100 $40,390 Catch Basin, MAG Det. 535 type F ea.$2,308.00 28 $64,624 28 $64,624 Manhole (C-18.10)(No. 3)ea.$2,885.00 14 $40,390 14 $40,390 Striping I.f.$1.38 31,680 $43,718 26,400 $36,432 Concrete Sidewalk, MAG Det. 230 s.f.$2.89 52,800 $152,592 26,400 $76,296 Landscaping mi.$131,556 1 $131,556 0.5 $65,778 Construction Cost per Mile $2,243,391 $1,558,350 Construction Cost per New Lane -Mile $560,848 $779,175 Average Construction Cost per New Lane -Mile $670,012 Project Administration/Legal (5%)$33,501 Engineering (Design Er Construction @ 15%)$100,502 Contingency (10%)$67,001 Total Project Cost per Lane -Mile $871,016 Source:Earth Tech, Inc., November 26, 2001, updated to current dollars using Engineering News -Record Construction Cost Index (May 2005/February 2001 = 1.154) This cost per lane -mile is somewhat lower than the cost per lane -mile used in the City's recent transportation plan (see Table 4).Right-of-way costs have not been included in these cost estimates. This slightly higher cost per lane -mile will be used in the road impact fee calculations. Road Development Fee Update Apache Junction, AZ demeamlassociates October 24, 2005 Page 10 Table 4 ALTERNATIVE ROADWAY CONSTRUCTION COSTS PER LANE -MILE New Lanes MVP Lane- Miles Estimated Cost Cost/ Lane -Mile New 6 -Lane Arterial New 4 -Lane Arterial Widen 4-6 Lanes Widen 2-4 Lanes 6 4 2 2 31 3 24 21 186 12 48 42 $120,000,000 $9,000,000 $51,000,000 $63,000,000 $645,000 $750,000 $1,063,000 $1,500,000 Average $990.000 Source:Kirkham Michael,City of Apache Junction Small Area Transportation Study,May 2004.. The next step is to translate the average lane -mile cost into a cost per service unit.As noted in the previous section, an arterial or collector roadway can accommodate about 6,000 daily vehicles per lane. Dividing the average cost of a lane -mile by 6,000 vehicles per day yields the average cost per vehicle -mile of capacity (VMC).Multiplying that by the system -wide ratio of capacity to demand results in the average cost per vehicle -mile of travel (VMT), which is $248.15, as shown in Table 5.To this capital cost, the cost of the development fee study, calculated in Appendix C to be $0.65 per vehicle -mile, can be added. Table 5 ROAD COST PER SERVICE UNIT - - - - - - - - -, Average Cost per Lane -Mile Ca Gaci (Vehicles •er Lane ser Da ) $990,000 6,000 Cost per Vehicle -Mile of Capacity (VMC) VMCNMT Ratio $165.00 1.50 Cost per Vehicle -Mile of Travel (VMT) Stud Cost •er VMT $247.50 $0.65 Total Cost •er VMT $248.15 Source:Average cost per lane -mile from Table 4; capacity per lane assumed; VMC/VMT ratio from Table 2. NET COST PER SERVICE UNIT To avoid double -charging, new development should receive credit in the fee calculations for the additional outside revenues it will generate that will be available for capacity -expanding improvements. The City receives several sources of outside funding for road improvements, including Highway User Revenue Funds (HURF), Pinal County sales tax funds, state Local Transportation Assistance Funds (LTAF), and state and federal highway funds.However, the City is a low priority for state and federal highway funds and has received virtually no funding over the past several years.The Central Arizona Association of Governments Transportation Improvement Program for fiscal years 2003-2007 provides funding only for addressing drainage improvements at Weekes Wash.Current funding dedicated to road maintenance and improvements amounts to about $4.3 million annually, as shown in Table 6. Road Development Fee Update Apache Junction, AZ datinosan associates October 24, 2005 Page 11 Table 6 ANNUAL ROAD REVENUE State Highway User Fees (HURF) County Sales Tax Local Transportation Assistance Funds (LTAF) Federal and State Hiahwav Funds $2,800,000 $1,300,000 $178,100 $0 Total $4.278,100 Source:Actual FY 2003/04 revenues from City of Apache Junction,Annual Budget for the Fiscal Year July 1, 2004 to June 30, 2005. In FY 1998-99, the City Council approved a $6 million bond initiative to fund street construction projects, with the majority of the funding going for the three capacity -expanding improvements identified earlier. The annual debt service on these projects is $752,000, which will be repaid primarily with HURF funds, although road development fees can also be used for this purpose.The credit for future road funding that will be generated by new development and used for capacity -expanding improvements will be based on this funding pattern for the next several years.Assuming that future funding will increase proportionately to growth in travel demand, the net present value of additional outside funding for capital improvements expected to be generated over the next 20 years is estimated to be $34.14 for each additional VMT generated by new development, as shown in Table 7. Table 7 ROAD REVENUE CREDIT PER VMT Annual Capital Funding Existing VMT $752,000 287,984 Annual Capital Funding per VMT Present Value Factor (20 years at 4.44%) $2.61 13.08 a of Capital Funding VMT $34.14 Source:Annual capacity project funding is FY 2004/05 street debt service from City of Apache Junction,Annual Budget for the Fiscal Year July 1, 2004 to June 30, 2005,p. 107; present value factor based on 20 years at discount rate of 4.44%, which is the average yield on 20 -year AAA tax- exempt municipal bonds reported by bloomberg.com on May 17, 2005; existing VMT from Table 2. Deducting the revenue credit results in a net cost of $214.01 per vehicle -mile of travel generated by new development, as shown in Table 8. Road Development Fee Update Apache Junction, AZ associates October 24, 2005 Page 12 Table 8 ROAD NET COST PER SERVICE UNIT Total Cost per Vehicle -Mile of Travel Revenue Credit per Vehicle -Mile of Travel $248.15 $34.14 Net Cost Der Vehicle -Mile of Travel $214.01 Source:Capital cost from Table 5; credit from Table 7. DEMAND AND COST SCHEDULE The number of service units (or VMT) 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 Apache Junction.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. Average daily trip rates are based on information published in the Institute of Transportation Engineers' (ITE)Trip Generation.In the 2001 update, the 1997 sixth edition of the ITE manual was used.This update uses the 2003 seventh edition.Rates were established for specific land use types within the broader categories of residential, retail/commercial, office/institutional and industrial land uses. Rates are per dwelling unit, 1,000 square feet of gross floor area, or other appropriate unit of development. Trip generation rates represent trip ends, or driveway crossings at 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 development 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 length of a trip on the City's major roadway system can be estimated by dividing total daily travel demand (VMT) by the total number of average daily trips generated by existing land uses.As shown in Table 9, the average trip length on Apache Junction's major roadway system is just over two miles. Road Development Fee Update Apache Junction, AZ dlanconlassociates October 24, 2005 Page 13 Table 9 AVERAGE TRIP LENGTH Land Use Type •Existing ADT/Existing Units Units Unit Trips Single -Family Multi -Family Mobile Home Retail/Commercial Office/Institutional Industrial/Warehouse Dwelling Dwelling Dwelling 1,000 sq. ft. •1,000 sq. ft. 1,000 sq. ft. 7,238 2,618 20,252 2,108.037 603.569 264.056 4.79 3.36 2.50 12.45 5.51 2.99 34,670 8,796 50,630 26,245 3,326 790 Total Daily Trips Total Daily VMT on Maior Road System 124,457 287,984 Averaae Trio Lenath (miles 2.31 Source:Existing dwelling units from Table 13; existing nonresidential square footage from Table 14; average daily trip rates from Table 10 (retail is ADT times primary trip factor); total existing VMT from Table 2. The system -wide average trip length should be appropriate for residential, industrial and most office and institutional uses, for which the home -to -work commute is the predominate trip type.On the other hand, trip lengths for retail and some specialized uses tend to be determined by market area and locational characteristics that are likely to be relatively similar from one community to the next. Consequently, published and unpublished data from studies of other communities have been relied upon to derive recommended trip lengths for such uses. The result of combining trip generation, primary trip and trip length information is an equivalency table that establishes the number of service units (VMT) generated by various land use types per unit of development.The recommended equivalency table is presented in Table 10.The development fee ordinance contains a provision allowing the option of independent fee determination studies for those applicants who feel that their developments will have less impact on the need for road facilities than indicated by the fee schedule.• Road Development Fee Update Apache Junction, AZ eilannazonlassocicttes October 24, 2005 Page 14 Table 10 ROAD SERVICE UNIT GENERATION BY LAND USE TYPE Unit Trip Rate Primary Trips Trip Length VIVITLand Use Single -Family Detached Dwelling 4.79 100%2.31 11.06 Multi -Family Dwelling 3.36 100%2.31 7.76 Mobile Home/RV Park Space 2.50 100%2.31 5.78 Assited Livin„g Facilit Dwellin i 1.08 100%2.31 2.49„',. Reta1140omniercial-_ General Retail/Shopping Center 1000 sq. ft.21.47 58%2.31 28.77 Auto Sales/Repair 1000 sq. ft.16.67 75%2.31 28.88 Building Material/Lumber 1000 sq. ft.22.58 75%2.31 39.12 Convenience Store/Gas Station 1000 sq. ft.422.8 16%0.50 33.82 Discount Store 1000 sq. ft.24.61 48%2.31 27.29 Drive -In Bank 1000 sq. ft.123.25 27%0.75 24.96 Hotel/Motel Room 3.45 100%2.31 7.97 Movie Theater 1000 sq. ft.39.03 75%2.31 67.62 Nursery/Garden Center 1000 sq. ft.18.04 75%2.31 31.25 Restaurant, Fast Food 1000 sq. ft.248.06 30%0.50 37.21 Restaurant, Sit -Down 1000 9.ft.44.98 38%0.75 12.82..,R,. Office/Institati na.- General Office Building 1000 sq. ft.5.51 100%2.31 12.73 Medical Office 1000 sq. ft.18.07 100%2.31 41.74 Hospital 1000 sq. ft.8.79 100%2.31 20.30 Nursing Home 1000 sq. ft.3.05 100%2.31 7.05 Church/Synagogue 1000 sq. ft.4.56 100%2.31 10.53 Day Care Center 1000 sq. ft.39.63 24%0.75 7.13 Elementary School 1000 sq. ft.7.25 24%0.75 1.31 High School 1000 s . ft.6.45 50%0.75 2.42--, litdu tne Wats ciii,----:`, - General Light Industrial 1000 sq. ft.3.49 100%2.31 8.06 Warehouse 1000 sq. ft.2.48 100%2.31 5.73 Mini -Warehouse 1000 so. ft.1.25 100%2.31 2.89 Sources:Trip rates =1/2of trip ends on a weekday reported in ITE, Trip Generation, 7th Edition, 2003; ADT for hotel/motel per room averaged; primary trip factors for shopping center, convenience store, discount store, drive-in bank and restaurants from ITE,Trip Generation Handbook,March 2001 (shopping center factor equals non -pass -by percentage based on formula for 200,000 sq. ft. center less 10% for diverted trips); day care center primary trip factor from paper by Hitchens, 1990 ITE Compendium; primary trip factors for other land uses assumed; average trip length from Table 9, other trip lengths assumed. Road Development Fee Update Apache Junction, AZ duncanlassociates October 24, 2005 Page 15 Based on projected travel demand by land use and the net cost per vehicle -mile of travel, the net costs to provide major roadway capacity at the existing system -wide level of service per unit of development are shown in Table 11. Table 11 ROAD NET COST BY LAND USE TYPE Land Use I IUnit Daily VMT Net Cost VMT Net Cost Unit Single -Family Detached 1 Dwelling 11.06 per $214.01 per $2,367 Multi -Family Dwelling 7.76 $214.01 $1,661 Mobile Home/RV Park Space 5.78 $214.01 $1,237 Assisted Living Facility Dwelling 2.49 $214.01 $533. Rita ilidcipme rcial „..,-.---, -....-,.,,,•-J,--k•:. General Retail/Shopping Center 1000 sq. ft.28.77 $214.01 $6,157 Auto Sales/Repair 1000 sq. ft.28.88 $214.01 $6,181 Building Material/Lumber 1000 sq. ft.39.12 $214.01 $8,372 Convenience Store/Gas Station 1000 sq. ft.33.82 $214.01 $7,238 Discount Store 1000 sq. ft.27.29 $214.01 $5,840 Drive -In Bank 1000 sq. ft.24.96 $214.01 $5,342 Hotel/Motel Room 7.97 $214.01 $1,706 Movie Theater 1000 sq. ft.67.62 $214.01 $14,471 Nursery/Garden Center 1000 sq. ft.31.25 $214.01 $6,688 Restaurant, Fast Food 1000 sq. ft.37.21 $214.01 $7,963 Restaurant, Sit -Down 1000 s•ft.12.82 $214.01 $2,744 Office lnsti uponal -,--.s•.,_ ,- __- .:,...0!-: -• General Office Building 1000 sq. ft.12.73 $214.01 $2,724 Medical Office 1000 sq. ft.41.74 $214.01 $8,933 Hospital 1000 sq. ft.20.30 $214.01 $4,344 Nursing Home 1000 sq. ft.7.05 $214.01 $1,509 Church/Synagogue 1000 sq. ft.10.53 $214.01 $2,254 Day Care Center 1000 sq. ft.7.13 $214.01 $1,526 Elementary School 1000 sq. ft.1.31 $214.01 $280 High School 1000 sq. ft.2.42 $214.01 $518 -- $c'-: _ ,-,;.•,.vk ,A:,":-.,-- •tadustriaito aiiiholii . :,..•' '•, General Light Industrial 1000 sq. ft.8.06 $214.01 $1,725 Warehouse 1000 sq. ft.5.73 $214.01 $1,226 Mini -Warehouse 1000 sq. ft.2.89 $214.01 $619 Source:Daily VMT from Table 10; net cost per VMT from Table 8. Road Development Fee Update Apache Junction, AZ duncanlassociates October 24, 2005 Page 16 If the revised road development fees are adopted at 100 percent of the net cost calculated in this report, the fees would increase by just over one-third for most land use categories, as shown in Table 12.Of course, the City Council has the option of adopting the updated fees at any percentage up to 100 percent of these maximum fees. Table 12 POTENTIAL CHANGE IN ROAD FEES Land Use Unit Current Fee Maximum Fee Potential Increase Single -Family Detached Dwelling $1,485 $2,367 59% Multi -Family Dwelling $1,029 $1,661 61% Mobile Home/RV Park Space $747 $1,237 66% Assisted Living Facility ,-,Dwelling,u-$335 $533 59% ''.,. Retail/eorhmerciat',.,x 4 -. 't General Retail/Shopping Center 1000 sq. ft.$3,859 $6,157 60% Auto Sales/Repair 1000 sq. ft.$4,360 $6,181 42% Building Material/Lumber 1000 sq. ft.$4,619 $8,372 81% Convenience Store/Gas Station 1000 sq. ft.$4,923 $7,238 47% Discount Store 1000 sq. ft.$4,214 $5,840 39% Drive -In Bank 1000 sq. ft.$3,908 $5,342 37% Hotel/Motel Room $1,076 $1,706 59% Movie Theater 1000 sq. ft.$9,076 $14,471 59% Nursery/Garden Center 1000 sq. ft.$4,195 $6,688 59% Restaurant, Fast Food 1000 sq. ft.$5,416 $7,963 47% Restaurant, Sit -Down 1000 sq. ft.$1,866 $2,744 47%., pifice '4--•.:,Irtsiii..tOila oi .I.3 •, General Office Building 1000 sq. ft.$1,709 $2,724 59% Medical Office 1000 sq. ft.$5,603 $8,933 59% Hospital 1000 sq. ft.$2,601 $4,344 67% Nursing Home 1000 sq. ft.$729 $1,509 107% Church/Synagogue 1000 sq. ft.$1,413 $2,254 60% Day Care Center 1000 sq. ft.$1,038 $1,526 47% Elementary School 1000 sq. ft.$157 $280 79% High School 1000 sq.ft.$326 $518 59% '-Industriat/War house , 7-,- „ General Light Industrial 1000 sq. ft.$1,082 $1,725 59% Warehouse 1000 sq. ft.$769 $1,226 59% Mini -Warehouse 1000 SQ.ft.$387 $619 60% Source:Maximum fees from Table 11. Road Development Fee Update Apache Junction, AZ duncanlossociates October 24, 2005 Page 17 ORDINANCE AMENDMENTS In addition to substituting Table 11 for the road development fee schedule, the following amendments should be made to the development fee ordinance to implement the updated road development fees. ARTICLE 7-1 DEVELOPMENT FEES SECTION 7-1-1 DEVELOPMENT FEES --GENERAL PROVISIONS C.Service areas I.The following development fee services arc hereby established: a.For the purpose of road development fees, the service area shall be all of the incorporated area of the City, with the exception of the three incentive infill areas designated by the City in Resolution No. 04-25.Road development fees shall not be collected from new development within the infill areas; nor shall any road development fee revenue be used to fund capital improvements located within the infill areas. SECTION .7-1-2 ROAD DEVELOPMENT FEES C.Use of Road Development Fees 1.The revenues from road development fees collected within the service area and accrued interest on such revenues shall be used to finance project costs of qualifying major roadway improvements, as determined by the City Council. 2.Qualifying road improvements are limited to improvements to the City's major roadway system located within the service area.The City's major roadway system consists of all City -maintained roadways or portions thereof that are classified as collectors or arterials by the City of Apache Junction's adopted Street Classification Plan. Road Development Fee Update Apache Junction, AZ duintosonlossociates October 24, 2005 Page 18 APPENDIX A: DEMOGRAPHIC DATA For the purposes of this study, the amount of existing development in the city must be estimated in order to determine existing levels of service.Combining 2000 census data with 2000-2004 building permit data allows us to develop a relatively precise estimate of current year-round dwelling units by housing type.To this must be added the number of mobile home and recreational vehicle pads in existing mobile home and RV parks that are only occupied during the peak season, as shown in Table 13. Table 13 DWELLING UNITS BY TYPE, 2005 Housing Type 2000 2000-2004 Est. 2005 Units New Units Units Single-family Multi -family Mobile home 6,044 2,348 14,379 1,194 270 173 7,238 2,618 14,552 Subtotal, Year -Round Seasonal MH/RV Pads 22,771 5,700 1,637 268 24,408 5,700 Total 28,471 1,905 30,108 Source:2000 year-round units from U.S.Census;2000-2004 new units permitted from City of Apache Junction; seasonal mobile home/RV pads from count by GeoStat, Inc., August 1996 plus permit data from City. Since the Census does not record information on nonresidential development, other data sources must be used. Information from tax records indicates that Apache Junction had about 1.7 million square feet of nonresidential development in 1995.Adding the amount of square footage authorized by building permits issued since 1995, the current amount of nonresidential development is estimated to be about 3.0 million square feet, as shown in Table 14. Table 14 EXISTING NONRESIDENTIAL DEVELOPMENT 1995 1995-2005 Est 2005 Land Use Sq. Ft.Sq Ft.Sq. Ft. Retail/Commercial Office/Institutional Industrial/Warehouse 1,162,598 440,299 128,550 945,439 163,270 135,506 2,108,037 603,569 264,056 Total 1,731,447 1,244,215 2,975,662 Source:1995 square feet from Pinal County Tax Assessor records, April 11, 1995; square feet permitted since 1995 from City of Apache Junction,Development Services Department, April 2005. Road Development Fee Update Apache Junction, AZ clumosonlassociates October 24, 2005 Page 19 APPENDIX B:STUDY COST In addition to the direct cost of capital improvements, the City can also recover the cost of preparing and updating the development fee study from development fees. Since the development fee ordinance mandates that the study be updated every three years, the cost of this study attributable to road development fees should be recovered from development fees over the next three years.Dividing the development fee study cost by the projected number of new service units to be added over the next three years results in the following cost per service unit. Table 15 STUDY COST PER SERVICE UNIT Road Development Fee Update Study Cost $17,250 Estimated New VMT, Next 3 years 26,704 Study Cost per New VMT 50.65 Source:New VMT based on total VMT from Table 2 and 3.0% annual growth in dwelling units from 2000-2005 (see Table 13). Road Development Fee Update Apache Junction, AZ clenno savolassociates October 24, 2005 Page 20