HomeMy WebLinkAboutAnalysis of Transportation Fee to Replace Special Assessments 46w
Oshkosh
TO: Honorable Mayor and Members of the Common Council
FROM: James Rabe,Public Works Director
Trena Larson, Finance Director
DATE: May 31, 2019
RE: Analysis of Transportation Fee to Replace Special Assessments
Attached is a summary of the analysis performed by staff in response to the recommendation by
the Long Range Finance Committee and the request of the Common Council to replace street
special assessments with a Transportation Fee. The results of the analysis are shown in the table
and chart below.
Staff is recommending a monthly fee of$4.50 per developed area unit(DAU) to achieve this goal.
The components of the recommended fee are as follows:
Category Average Annual$ $/DAU/month
Concrete Paving $1,750,000 $2.42
Asphalt Paving $400,000 $0.55
Driveway Aprons $250,000 $0.35
New Sidewalk $50,000 $0.07
Sidewalk Rehab $800,000 $1.11
Total $3,250,000 $4.50
Rate Breakdown by Category
$0.07
a Concrete Paving mu Asphalt Pavina Driveway Aprons ow New Sidewalk mo Sidewalk Rehab
Also attached is a summary table comparing how various aspects of projects are currently paid
for and how they would be paid for utilizing the Transportation Fee. The final two pages are
comparisons of Special Assessment totals for typical lots in the Single Family Residential,Multi-
Family Residential, and Non-Residential areas as well as a comparison of selected actual
properties from the 2019 CIP as well as a comparison to certified Special Assessment totals from
the 2017 CIP.
As explained in the analysis, special assessments will continue for utility lateral replacements,
as these improvements are directly related to a specific property. Special assessments will also
continue in those cases where the city takes the lead on new street and or utility construction,
primarily for new development.
Staff believes that the proposed Transportation Fee meets Council's objectives of an equitable
fee to replace the street and sidewalk special assessments,which will lessen the financial burden
for residential, commercial,industrial, and institutional properties. The fee equitably distributes
the financial burden of these public improvements across all of the above mentioned land uses.
Finally, the fee will eliminate the need for the city to finance special assessments through
additional city borrowing.
Analysis of Transportation Fee to Replace Special Assessments
The Common Council and the Long Range Finance Committee have been discussing many options to
replace Special Assessments for items such as street reconstruction and sidewalk rehabilitation.
Through those various conversations, direction had been given to develop a Transportation Fee setup
to replace special assessments not related to the construction of utilities or utility service laterals.
In analyzing the potential to replace special assessments, an analysis of the past three years'worth
(2016-2018) of special assessments was conducted. The distribution of special assessments by type of
activity is presented in Table 1 below.
Category Average Annual$
Concrete Paving: $1,750,000
Asphalt Paving: $400,000
Driveway Aprons: $250,000
New Sidewalk: $50,000
Sidewalk Rehab: $800,000
$3,250,000
Table 1:Special Assessments by Category
One of the greatest challenges in the overall analysis is to determine how to assign the costs to fund the
special assessments. In reviewing various methods of funding, it was determined that the best method
for handling all residential properties is to count the number of dwelling units present. In this manner,
residential properties are all treated equally. In analyzing non-residential properties, the amount of
development on a property is utilized as a surrogate for the amount of transportation impacts on the
City's infrastructure system. By incorporating a maximum amount, or cap (100 Units) on that
developed area, the largest of developed properties that may not as accurately reflect on the
transportation impact have their fee impact lessened. Mixed use properties are considered and
calculated as non-residential properties. The overall breakdown of the amount of Developed Area
Units is shown below in Table 2 and shown in Chart 1.
Classification % of DAU
Residential 47.42%
Commercial 20.69%
Industrial 17.59%
Institutional 14.30%
Total 100.00%
Table 2:Developed Area Units by Parcel Classification
Percentage Breakdown by Classification
1 q,3o%
1 ,
6
,r
an Residential <orimercial Industrial Ir7stitu Lima I
Chart 1:Developed Area Units by Parcel Classification
In order to provide the revenue necessary to replace the special assessment amounts shown above, a
rate of$4.50 per Developed Area Unit per month would be necessary. The breakdown of how each
activity impacts the rate is shown below in Table 3 and Chart 2.
Category $/DAU/month
Concrete Paving $2.42
Asphalt Paving $0.55
Driveway Aprons $0.35
New Sidewalk $0.07
Sidewalk Rehab $1.11
$4.50
Table 3:Transportation Fee by Construction Category
Date Breakdown by Category
$0.07
uc.Concrete Paving Asplialt Paving Driveway Aprons New Sidewall< m Sidewalk Rehab
W;;hart 2:Trmisportatiori Fee by Constr uaaion Catei cwy
At first blush, this rate is higher than previously estimated by staff. The primary reason for that is the
inclusion of the asphalt pavement programs and the driveway apron replacement. During previous
data gathering, the asphalt programs were not included in the analysis. The previous analysis also was
conducted under an assumption that the cost of improving and replacing driveway aprons would
remain a cost to be borne by the property owners that directly receive the benefit of those aprons. Staff
believes that the Council's intent was to include the costs of special assessments for both the asphalt
programs and the driveway aprons in the calculation of the transportation fee, so we have included
them in this analysis.
Sample Calculations for Transportation Fee Impact
Single Family Residential
Lot Total Without Transportation Fee Total With Transportation Fee
Width Pavement Utilities Total Pavement Utilities Total Difference
50 Feet $ 7,467.50 $ 3,250.00 $ 10,717.50 $ - $ 3,390.00 $ 3,390.00 $ 7,327.50
80 Feet $ 11,363.00 $ 3,250.00 $ 14,613.00 $ - $ 3,390.00 $ 3,390.00 $ 11,223.00
100 Feet $ 13,960.00 $ 3,250.00 $ 17,210.00 $ - $ 3,390.00 $ 3,390.00 $ 13,820.00
Multi-Family Residential
Lot Total Without Transportation Fee Total With Transportation Fee
Width Pavement Utilities Total Pavement Utilities Total Difference
80 Feet $ 12,395.00 $ 7,000.00 $ 19,395.00 $ - $ 7,140.00 $ 7,140.00 $ 12,255.00
125 Feet $ 18,818.75 $ 7,000.00 $ 25,818.75 $ $ 7,140.00 $ 7,140.00 $ 18,678.75
175 Feet $ 25,956.25 $ 7,000.00 $ 32,956.25 $ - $ 7,140.00 $ 7,140.00 $ 25,816.25
Non-Residential
Lot Total Without Transportation Fee Total With Transportation Fee
Width Pavement Utilities Total Pavement Utilities Total Difference
100 Feet $ 19,830.00 $ 7,500.00 $ 27,330.00 $ - $ 7,640.00 $ 7,640.00 $ 19,690.00
150 Feet $ 29,257.50 $ 7,500.00 $ 36,757.50 $ - $ 7,640.00 $ 7,640.00 $ 29,117.50
200 Feet $ 38,685.00 $ 7,500.00 $ 46,185.00 1 $ - $ 7,640.00 $ 7,640.00 1 $ 38,545.00
Assumptions:
42'foot wide concrete street reconstruction(similar to Hazel Street north of Merritt Avenue)
Pavement Total includes Street,Sidewalk and Driveway Aprons
Utilities Total includes Sanitary,Water and Storm Laterals
150 square foot driveway apron requires replacement
75%of sidewalk along lot frontage requires replacement due to rehab
Sanitary sewer lateral is replaced
New storm lateral with lateral inlet is installed for Residential 1 properties
New 8" storm lateral installed for Residential 2 properties
New 12"storm lateral installed for Non-Residential properties
I:\Engineering\Transportation Fee Analysis\Impact of Transportation Fee on Special Assess ments.xlsx
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