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HomeMy WebLinkAbout02. G) Presentation by Staff City r-4 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 14 ■Concrete Paving ■Asphalt Paving ■Driveway Aprons ■New Sidewalk ■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 ■Residential ■Commercial us Industrial Institutional 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 Rate Breakdown by Category $0.07 MOOMM-0- $0.3 ■Concrete Paving ■Asphalt Paving ■Driveway Aprons ■New Sidewalk ■Sidewalk Rehab Chart 2:Transportation Fee by Construction Category 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 $ - $ 7,640.00 $ 7,640.00 $ 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 Specific Property Examples for Transportation Fee Impact Single Family Residential Total Without Transportation Fee Total With Transportation Fee Transportation Fee Address Lot Width Pavement Utilities Total Pavement Utilities Total Difference Monthly Annually 1930 OREGON ST 50 $ 6,575.85 $ 2,950.00 $ 9,525.85 $ $ 3,090.00 $ 3,090.00 $ 6,435.85 $ 4.50 $ 54.00 197 W 21ST AVE 50.5 $ 8,255.38 $ 2,950.00 $ 11,205.38 $ $ 3,090.00 $ 3,090.00 $ 8,115.38 $ 4.50 $ 54.00 559 HAZEL ST 45.06 $ 5,883.87 $ 2,950.00 $ 8,833.87 $ $ 3,090.00 $ 3,090.00 $ 5,743.87 $ 4.50 $ 54.00 519 HAZEL ST 55.13 $ 10,081.27 $ 2,950.00 $ 13,031.27 $ $ 3,090.00 $ 3,090.00 $ 9,941.27 $ 4.50 $ 54.00 Multi-Family Residential Total Without Transportation Fee Total With Transportation Fee Transportation Fee Address Lot Width Pavement Utilities Total Pavement Utilities Total Difference Monthly Annually 680 OAK ST 350 $ 39,672.50 $ 9,750.00 $ 49,422.50 $ $ 9,890.00 $ 9,890.00 $ 39,532.50 $ 261.00 $ 3,132.00 1432 MARICOPA DR 120 $ 12,388.57 $ 3,513.15 $ 15,901.72 $ $ 3,624.35 $ 3,624.35 $ 12,277.37 $ 15.00 $ 216.00 1420 MARICOPA DR 144.1 $ 14,365.41 $ 1,833.15 $ 16,198.56 $ $ 1,888.75 $ 1,888.75 $ 14,309.81 $ 36.00 $ 432.00 Non-Residential Total Without Transportation Fee Total With Transportation Fee Transportation Fee Address Lot Width Pavement Utilities Total Pavement Utilities Total Difference Monthly Annually 215 W 20TH AVE 254.71 $ 50,471.45 $ 6,950.00 $ 57,421.45 $ $ 7,090.00 $ 7,090.00 $ 50,331.45 $ 57.17 $ 1,046.10 1561 OREGON ST 52.56 $ 14,365.19 $ 5,900.00 $ 20,265.19 $ $ 6,040.00 $ 6,040.00 $ 14,225.19 $ 11.13 $ 133.53 631 HAZEL ST 379.47 $ 70,731.28 $ 11,700.00 $ 82,431.28 $ $ 11,840.00 $ 11,840.00 $ 70,591.28 $ 243.51 $ 2,922.08 606 E MURDOCK AVE 690.52 $ 141,525.43 $ 30,724.45 $ 172,249.88 $ $ 30,891.25 $ 30,891.25 $ 141,358.63 $ 450.00 $ 5,400.00 Notes: 197 W 21st Avenue is a comer lot,and has pavement costs on both streets 680 Oak Street is a corner lot and receives a 75'reduction due to Hazel being the"long side" 1432 Maricopa Drive is the certified amount from Contract 17-05 1420 Maricopa Drive is the certified amount from Contract 17-05 215 W 20th Avenue is a comer lot,and has pavement costs on both streets 1561 Oregon Street is a comer lot,and has pavement costs on both streets 631 Hazel Street is a comer lot,and has pavement costs on both streets 606 E Murdock Avenue is a comer lot and is the certified amount from Contract 17-05 I:\Engineering\Transportation Fee Analysis\Impact of Transportation Fee on Special Assessments.xlsx Proposed Special Assessment Cost Allocation Revisions Cost Responsibility Item Current Policy Proposed Policy Concrete Street Reconstruction Property Owner Transportation Fee New Concrete Street in Development(i.e.Subdivision) Property Owner/Developer Property Owner/Developer Asphalt Overlay(Cold Mix and Hot Mix) Property Owner Transportation Fee Sidewalk Rehabilitation Squares(Rehab Program or Reconstruction Property Owner Transportation Fee Projects) Sidewalk Ordered In(new/first time installation) Property Owner Transportation Fee New Sidewalk in Development(i.e.Subdivision) Property Owner/Developer Property Owner/Developer "Project"Sidewalk Squares 1 City City Sidewalk Replaced for Utility Lateral Construction Property Owner Property Owner(first two squares as part of lateral cost). Transportation Fee(additional squares beyond first two). Curb Ramps City City Driveway Aprons Property Owner Transportation Fee Notes: I"Project'Sidewalk Squares are squares that are not required to be removed for rehabilitation,but are removed to facilitate construction.