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HomeMy WebLinkAboutPackets - Council Packets (776) AGENDA ORO VALLEY TOWN COUNCIL STUDY SESSION JUNE 25, 2008 ORO VALLEY TOWN COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE STUDY SESSION - AT OR AFTER 5:30 p.m. CALL TO ORDER ROLL CALL 1. Discussion of the TischlerBise, Inc. Development Impact Fee Studies a. Executive Summary (pgs. 1-7) b. Police (pgs. 25-34) c. Parks & Recreation (pgs. 8-17) d. Transportation (pgs. 45-60) e. Demographic Memo (pgs. 61-74) ADJOURNMENT POSTED: 06/18/08 4:00 p.m. cp The Town of Oro Valley complies with the Americans with Disabilities Act(ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk's Office at (520)229-4700. TOWN OF ORO VALLEY Page 1 of 2 COUNCIL COMMUNICATION MEETING DATE: 06/25/08 TO: HONORABLE MAYOR AND COUNCIL FROM: DAVID ANDREWS, TOWN MANAGER SUBJECT: DISCUSSION REGARDING THE POTENTIAL ADOPTION OF DEVELOPMENT IMPACT FEES IN THE AREAS OF POLICE, PARKS AND RECREATION, AND TRANSPORTATION SUMMARY: On August 1, 2007 the Town Council voted to contract with TischlerBise Inc. for Phase I of a development impact fee feasibility/cost of service study to determine whether the Town could support the creation of additional development impact fees. Based on land use and population data, interviews with staff, and established demand factors, Paul Tischler of TischlerBise completed a comprehensive cost of service study and provided a draft report of his findings. The results of Phase I of the project were presented to Council on October 24, 2007. In his report, Mr. Tischler recommended that the Town pursue fee development in the areas of police, parks and recreation, transportation, library, and municipal facilities and equipment (now referred to as general government). TischlerBise estimated the cost of these new development fees could range anywhere from $1,000 to $4,000, which would be used to fund capital costs associated with maintaining current service levels as growth occurs. On November 7, 2007 the Council chose to proceed with Phase II and asked TischlerBise to create a sound methodology for formulating development impact fees in the five areas recommended to Council. Through the data collection and analysis portion of the fee development process, TischlerBise has been able to provide accurate data on the cost of maintaining the current levels of service for the areas selected and calculate legally defensible impact fees for the Town that will require new growth to pay its proportionate share of capital costs. On May 7, 2008, the Council adopted the notice of intent to establish new fees in the areas of police, parks and recreation, transportation, library, and general government; however the Mayor expressed an interest in spending additional time on each of the fees prior to the public hearing scheduled for July 16, 2008. This evening will be the first of two study sessions to discuss the proposed development impact fees, with the library fee and the general government fee to be discussed on July 9, 2008. If necessary, Yvonne Dawson of TischlerBise is here to answer any of the questions that the Council may have in regards to the police, parks and recreation, or transportation fees being discussed tonight. The fee adoption schedule has changed due to the cancellation of the Regular Session meeting on August 20, 2008. Below is the revised schedule: Study Session on proposed development impact fees April 23, 2008 Notice of Intent to adopt new fees May 7, 2008 (60 day waiting period) Public Hearing on potential new fees July 16, 2008 (30 day waiting period) Adoption of potential new fees September 3, 2008 (90 day waiting period) Effective date of newly adopted fees December 2, 2008 TOWN OF ORO VALLEY Page 2 of 2 COUNCIL COMMUNICATION MEETING DATE: 06/25/08 ATTACHMENTS: 1. Copy of the police, parks and recreation, and transporation sections of the final report from TischlerBise Inc. avi j; 1440,./4. David Andrews, Town Manager TischleiBise 4701 SANGAMORE ROAD I SUITE S240 I BETHESDA, MD 20816 T: 800.424.4318 F: 301.320.4860 Fiscal,Economic & Planning Consultants 80 ANNANDALE ROAD I PASADENA, CA 91105-1404 T: 81 8.790.6170 1 F: 81 8.790.6235 WWW.TISCHLERBISE.COM Executive Summary The Town of Oro Valley,Arizona has contracted with TischlerBise to calculate development fees for the following infrastructure categories: • Parks & Recreation; • Library; • Police; • General Government; and • Transportation. DEVELOPMENT FEE OVERVIEW Development fees are one-time payments used to construct system improvements needed to accommodate new development. A development fee represents new growth's fair share of capital facility needs. By law, development fees can only be used for capital improvements, not operating or maintenance costs. Development fees are subject to rigorous legal standards, which require the fulfillment of three key elements: demand, benefit and proportionality. First, to justify a fee for public facilities, it needs to be demonstrated that new development will create a demand for capital improvements. Second, new development must derive a benefit from the payment of the fees (i.e., in the form of public facilities constructed within a reasonable timeframe). Third, the fee paid by a particular type of development should not exceed its proportional share of the capital cost for system improvements. The development fee methodologies established in this report show that: • The capital facilities for which the fees are prepared are a consequence of new development, • Development fees will substantially benefit new development; and that • Development fees are proportionate and reasonably related to the capital facility service demands of new development. Another general requirement common to development fee methodologies is the evaluation of credits. Two types of credits should be considered: future revenue credits and site- specific credits. Future revenue credits are necessary to avoid potential double payment situations arising from a one-time development fee payment plus the payment of other revenues that may also fund growth-related capital improvements. Future revenue credits are dependent upon the development fee methodology used in the cost analysis. As new development will provide front-end funding of infrastructure, there is a potential for double payment of capital costs due to future principal payments on existing Fiscal impact Analysis.Impact Fees• Revenue Strategies Economic impact Analysis•Fiscat software Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan debt, for public facilities. A credit is not necessary for interest payments if interest costs are not included in the development fees. The second type of credit is a site-specific credit for system improvements that have been included in the development fee calculations. Policies and procedures related to site-specific credits for system improvements should be addressed in the Town's development fee ordinance. However, the general concept is that developers may be eligible for site-specific credits or reimbursements only if they provide ystem improvements that have been included in the development fee calculations. Project improvements normally required as part of the development approval process are not eligible for credits against development fees. INFRASTRUCTURE IMPROVEMENTS PLAN REQUIREMENTS Arizona's current development fee legislation requires that municipalities adopt an infrastructure improvements plan prior to assessing new or modified development fees. Development fees for municipalities in Arizona are authorized by Arizona Revised Statutes (A.R.S.) 9-463.05. The complete legislation is included in Appendix 2 of this report. Subsection E states that, "for each necessary public service that is the subject of a development fee, the infrastructure improvements plan shall: 1. Estimate future necessary public services that will be required as a result of new development and the basis for the estimate. 2. Forecast the costs of infrastructure, improvements, real property, financing, other capital costs and associated appurtenances, equipment, vehicles, furnishings and other personalty that will be associated with meeting those future needs for necessary public services and estimate the time required to finance and provide the necessary public services." Each development fee component in this report includes a corresponding Infrastructure Improvements Plan (IIP). Based on development projections, the IIP illustrates projected demand for public facilities, the amount of capital facility required to serve projected growth and the associated capital costs to new residential and nonresidential development. DEVELOPMENT FEE AND IIP CALCULATION METHODOLOGIES TischlerBise evaluated several possible methodologies to determine the best measure of the demand created by new development for additional infrastructure capacity. This report documents the appropriate methodology and demand indicators by type of development for each IIP. The report documents the relationship between the IIP and the development fees. Specific capital costs have been identified using local data and current dollars. The general formula for calculating the development fees and corresponding IIP is shown in Figure 1. The formula used to calculate each development fee is diagrammed in a flow chart at the beginning of each section. Also, each fee category includes a summary table indicating the specific factors used to derive the development fee. These factors are also referred to as level-of-service (LOS) standards. There are three basic methods used to calculate the various components of Oro Valley's IIP and development fees. A plan-based method is best suited for public facilities that have adopted plans or commonly accepted service delivery standards to guide capital improvements. Under the plan-based methodology, there are two approaches considered. lischlerBise Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan The average approach is used for projects that are the result of both new and existing development. The planned costs are allocated to both new and existing development which ensures that new growth only pays its share of the costs. The marginal approach is used for projects that are the result of only new growth. The planned costs are allocated to the net increase in new growth. The incremental expansion method documents the current level-of-service (LOS) for each type of public facility. LOS standards are determined using the Town's current inventory of capital facilities and assets as well as current costs to construct or purchase comparable facilities or assets. However, Oro Valley will not use the funds for renewal and/or replacement of existing facilities. Rather the Town's intent is to use development fee revenue to expand or provide additional facilities, as needed to accommodate new development. A third method, known as the cost recovery method, is best suited for facilities that have been oversized in anticipation of growth and have excess capacity available. New development would buy-in to the excess capacity of the facility. The rationale for the cost recovery approach is that new development will pay for its share of the useful life and remaining capacity of recently constructed facilities. The generic formula used to calculate the IIP and development fee is diagrammed in Figure 1. The diagram starts in the upper left corner and progresses left-to-right and down through the lower right corner. lischlerBise 3 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Figure 1. Infrastructure Improvement Plan (IIP) and Development Fee Formula INFRASTRUCTURE IMPROVEMENT PLAN INFRASTRUCTURE FORECAST FOR NEW DEVELOPMENT Level-of- New Infrastructure Service to be Provided x Development = Demanded by to New Development Projections New Development (e.g.acres per person, (e.g.new persons (e.g.total number of square feet of facilities and/or jobs from acres,total number per person and job) new development) square feet demanded by new development) COST FORECAST FOR NEW INFRASTRUCTURE Infrastructure Planned Cost Total Cost to Provide Projected Demand Cost per Demanded by x per Unit of = Infrastructure to ± Units Served by = Demand New Development Infrastructure New Development New Infrastructure Unit (e.g.total number of (e.g.cost per acre, (total dollar amount) (e.g.new persons (e.g.cost per person acres,total number cost per square foot and/or jobs from and/or per job to square feet demanded of facility) new development) provide the new by new development) infrastructure) NOTE: The infrastructure forecast and cost forecast calculations are repeated for each component of the infrastructure category. DEVELOPMENT FEE Total Cost per Demand Units Development Fee Demand Unit for x per Development = per Development Complete IIP Unit Unit (Includes all (e.g.person per (dollar amount by components for the household,jobs per type of housing unit, infrastructure category) square foot,trips per dollar amount per housing unit/square square foot by type foot) of nonresidential development) SUMMARY OF DEVELOPMENT FEE CALCULATIONS BY FACILITY CATEGORY As noted above, TischlerBise, Inc. calculated the IIP and development fees for five types of public facilities in Oro Valley: parks and recreation, library, police, general government and transportation. All types of development—residential and non-residential— create a demand for capital facilities. This analysis determines those capital needs — and the related costs — brought about by new development. The resulting IIP and maximum supportable development fee amount represents each type of land uses' fair share of the capital cost for different improvements. For parks and recreation and library, residential development is the only type of land use that directly drives the need for additional facilities. The need for police, general government and transportation improvements, however, is brought about by both residential and non-residential development. Therefore, calculations for these development fees are based on both residential and non-residential demand, with the TischlerBise 4 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan resulting development fee amount reflecting each type of development's fair share of related costs. The following summarizes the methodologies used in each fee category. Also presented is the maximum supportable development fee amount. Parks and Recreation The parks and recreation development fee is allocated to residential development. The fee utilizes the incremental-expansion method for all fee components. The development fee is calculated based on household size and the capital cost per person for parkland acquisition and development, park amenities, park recreational facilities, park vehicles/equipment and the parks and recreation component of the development fee study. The maximum supportable development fee amounts for parks and recreation are: $2,699 for a single family housing unit and $1,607 for all other housing types. Library The library development fee is allocated to residential development. The fee utilizes the incremental-expansion method for all fee components. The development fee is calculated based on household size and the capital cost per person for the library facility, land for the library facility, collection materials and the library component of the development fee study. The maximum supportable development fee amounts for library are: $694 for a single family housing unit and $413 for all other housing types. Police The police development fee calculates new growth's contribution for the planned police facility at the Municipal Operations Center, the land acquisition for the police facility, police vehicles/equipment and the police component of the development fee study. As demand for police facilities is driven by residents and businesses, the development fee is allocated to both new residential and nonresidential development. The maximum supportable residential development fee amounts for police are: $513 for single family housing units and $305 for all other housing types. Non-residential development fees vary based on the use and/or size of the development. General Government The general government development fee uses the incremental-expansion method to calculate new growth's contribution for future general government facilities, general govt. vehicles/equipment, transit vehicles and the general government facilities component of the development fee study. As demand for general government facilities is driven by residents and businesses, the development fee is allocated to both new residential and nonresidential development. The maximum supportable residential development fee amounts for general government facilities are: $389 for single family housing units and $232 for all other housing types. Non-residential development fees vary based on the use and/or size of the development. Transportation The plan-based method is used to calculate the road construction portion of the Town's transportation development fee based on projects defined in the Pima County Transportation Improvement Plan and the Regional Transportation Authority Regional Transportation Plan. The development fee provides the per development unit cost for the T 5 An1200, 771:=ZIEWX32=,..121,Fii.=EMLW,4,`,..k--,.....,--.'. ..''.*,.. Ise e ise Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan , ._-_- z -- -r. „� 9 ,, �� .� ��- �� _,.. Town's planned expansion of its transportation system. The plan-based method is also used to calculate the expansion of Public Works facilities at the Municipal Operations Center Other fee components are calculated using cost recovery method (public works portion of land acquired at Municipal Operations Center) and the incremental expansion method (road vehicles and equipment). Demand for the transportation system is driven by residents and businesses, so the development fee is allocated to both new residential and nonresidential development. The maximum supportable development fee amounts for transportation are: $1,908 for single family housing units and $1,314 for all other housing types. Noll-residential development fees vary based on the use and/or size of the development. SUMMARY OF MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS Figure 2 provides a schedule of the maximum supportable development fee amounts for residential and non-residential development in Oro Valley. The development fees shown are for parks and recreation, library, police, general government, and transportation. For a single family housing unit, the maximum supportable development fee amount is $6,203 and for all other housing units, $3,871. Non-residential development fees vary based on the use and/or size of the development. The maximum supportable development fee for a commercial/shopping center from 100,001-200,000 sq. ft. is $3,654 per 1,000 sq. ft., while the maximum supportable development fee for warehousing is $580 per 1,000 sq. ft. The maximum supportable development fee for a lodging room is $595. Figure 2: Schedule of Maximum Supportable Development Fees Residential-Per Housing Unit Parks and General Recreation Library Police Govt. Transportation Total Single Family $2,699 $694 $513 $389 $1,908 $6,203 All Other Housing $1,607 $413 $305 $232 $1,314 $3,871 Non-Residential-Per 1,000 Square Feet of Floor Area Parks and General Recreation Library Police Govt. Transportation Total Corn/ Shop Ctr 25,000 SF or less N/A N/A $199 $209 $5,462 $5,870 Com/ Shop Ctr 25,001-50,000 SF N/A N/A $172 $179 $4,745 $5,097 Corn/ Shop Ctr 50,001-100,000 SF N/A N/A $144 $157 $3,963 $4,264 Com/ Shop Ctr 100,001-200,000 SF N/A N/A $123 $139 $3,392 $3,654 Com/ Shop Ctr 200,001-400,000 SF N/A N/A $105 $125 $2,883 $3,113 Office/ Inst 25,000 SF or less N/A N/A $59 $260 $1,789 $2,109 Office/ Inst 25,001-50,000 SF N/A N/A $50 $245 $1,526 $1,822 Office/ Inst 50,001-100,000 SF N/A N/A $43 $231 $1,301 $1,575 Office/ Inst 100,001-200,000 SF N/A N/A $37 $219 $1,109 $1,364 Business Park N/A N/A $41 $198 $1,244 $1,483 Light Industrial N/A N/A $22 $145 $680 $847 Warehousing N/A N/A $16 $80 $484 $580 Manufacturing N/A N/A $12 $112 $373 $497 Non-Residential-Per Room Lodging N/A N/A $18 $28 $5491 $595 IIMEMINESSIEVOINEEMEF TischlerBise 6 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan All costs in the development fee calculations are given in current dollars with no assumed inflation rate over time. Necessary cost adjustments should be made as part of the recommended annual evaluation and update of development fees. The Town will use the Engineering News Record Construction and/or Materials Cost Index for the annual update of the transportation development fee. The Marshall Swift Valuation Service will be used to annually update the remaining development fee categories (parks and recreation, library, police and general government). The multipliers will be applied against the calculated development fee. If cost estimates and/or growth projection change significantly, the Town should redo the fee calculations. A note on rounding: Calculations throughout this report are based on an analysis conducted using Excel software. Results are discussed in the report using one-and two-digit places (in" most cases), which represent rounded figures. However, the analysis itself uses figures carried to their ultimate decimal places; therefore the sums and products generated in the analysis may not equal the sum or product if the reader replicates the calculation with the factors shown in the report (due to the rounding of figures shown, not in the analysis). Fiscal,Economic S,Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Police METHODOLOGY The plan-based method is used to calculate the training and property ID facility component of the police development fee. The cost-recovery method is used for the land portion of the fee. The other components of the police development fee are calculated using the incremental expansion method, including police vehicles/equipment and the police portion of the development fee study. The Oro Valley Police Department serves both residential and non-residential development, providing protection to residents and businesses. As shown in Figure 23, this development fee is allocated on a per capita basis for residential development. For nonresidential development, the methodology allocates the capital cost on a per nonresidential vehicle trip basis. TischlerBise recommends using nonresidential vehicle trips as the best demand nonresidential demand indicator for police facilities and vehicles. Other possible nonresidential demand indicators, such as employment or floor area, do not accurately reflect the demand for police facilities. If employees per thousand square feet were used as the demand indicator, development fees would be too high for office/institutional development. If floor area were used as the demand indicator, development fees would be too high for industrial development. Figure 23: Police Development Fee Methodology Chart 1 [ Residential Development Nonresidential Development Persons Per Housing Unit Vehicle Trips Per 1,000 By Housing Type Square Feet of Floor Area Training and Property ID Facility Training and Property ID Facility Cost Per Person Cost Per Trip Land for Police Facility Land for Police Facility Cost Per Person Cost Per Trip Police Vehicles/Equipment Police Vehicles/Equipment Cost Per Person Cost Per Trip Development Fee Study Development Fee Study ost Per Person Cost Per Trip r TischlerBise 25 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan PROPORTIONATE SHARE FACTOR—RESIDENTIAL/NON-RESIDENTIAL The Oro Valley Police Department distinguished calls by residential and nonresidential land uses. These results (shown in Figure 24), are used to determine residential and nonresidential proportionate share factors. Of the 18,918 Oro Valley calls received during the sample period that can be assigned to a land use, 17,916 calls (95%) were to residential land uses and nonresidential uses accounted for 1,002 calls (5%). Figure 24: Oro Valley Calls for Service by Land Use Type, Dec. 2006-Nov. 2007 Land Use Type Calls* Residential 17,916 95% Nonresidential 1,002 5% Total 18,918 100% *Source: Oro Valley Police Department POLICE TRAINING AND PROPERTY ID FACILITY—PLANNED The plan-based methodology is used to derive the police training and property ID facility portion of the police development fee. Figure 25 provides the planned square footage and the construction cost for the facility,which will be built at the planned Municipal Operations Center at Rancho Vistoso. As the facility will provide a level of service improvement, the demand for this facility is generated both by existing and new development. The facility is expected to serve the Town through 2025,which corresponds with the end of the Town's debt service for the facility. To calculate the residential level of service, the square footage of the planned police facility (22,026 sq. ft.) is multiplied by the residential proportionate share factor of 95% (see Figure 24) and then divided by the total population in 2025 of 54,641, resulting in .38 sq. ft. per person. See the Appendix for detail on population projections. Nonresidential level of service is calculated by multiplying the nonresidential proportionate share factor of 5% (see Figure 24) and dividing by the total nonresidential average daily vehicle trips in 2025 (180,444), providing for .01 sq. ft. per trip. See the Appendix for detail on trip projections. The police facility cost per person is calculated in a similar fashion, using the total replacement cost of $6,995,095. This results in a police facility cost of $121.24 per person ($6,995,095 x 95%)/54,641 = $121.24) and $2.05 per trip (($6,995,095 x 5%)/180,444 = $2.05). "L c 75� w m�rcr _ _°a: . ,+� s-a;t 'r.€ ,qst, ,; ,fEat, -.., ••:4 �,,. .e T26 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan ;e. _-.-_ ��� ,: -,�-_ -� :���.-^.€_�.::. sr#�� - :=. .a .--.•-- su..�:-ter .- _..gip_..::----_•-� .�-_ - - Figure 25: Police Facility Level of Service and Cost Standards Facility Year Sq.Ft. Replace.Cost/Sq.Ft." Replacement Cost Training and Property ID 2010 22,026 $318 $6,995,095 TOTAL 22,026 $6,995,095 Proportionate 2025 Sq.Ft.per Cost per Share Demand Units Demand Unit Demand Unit Residential 95% 54,641 54,641 population 0.38 $121.24 Nonresidential 5%_ 180,444 nonres trips 0.01 $2.05 *Source:Town of Oro Valley Rancho Vistoso Master Planning report,January 2008. Figure 26 shows the Infrastructure Improvements Plan (IIP) for the planned police facility. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons and 23,191 nonresidential trips. Based on the existing LOS standards of.38 sq. ft. per person and .01 sq. ft. per nonresidential trip, this amount of residential development will require approximately 1,274 sq. ft. and non-residential development will require 150 sq. ft. The projected cost of this demanded infrastructure totals $452,328 over the next five years. Of this, $404,711 is attributable to new residential development. This equates to $121.24 per person ($404,711/3,338 persons = $121.24). The remainder, $47,618, is attributable to new nonresidential development. This equates to $2.05 per nonresidential trip ($47,618/23,191 trips = $2.05). The Town's costs for the new police facility totals $5.1 million. The IIP illustrates new growth's demand for the capital facility and associated costs through FY 2013. The police facility is expected to serve existing and new growth through 2025, so the remainder of the cost is attributable to existing growth and new growth during the FY 2014-2025 period. ws+,a.xR"asci- -sG �s;3Tn313.v"3,'�,�,.:svfi, 4z<fi'_icsn:?i--•a ^1.,:.-#;.`°§�=ri4s-4ar.:rirAsii'._:-:se 4r:�-r�7.'P-'-. '.- ars'7'� 11�� 27 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan xt�"k.t'��.r"--'=. .---m�`�.,�:'«��-�'�:.;��:� -_-:-�'.rr�s;�w�.s....-..-+�,.__,_u.w,.v.,��a Figure 26: Police Facility Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 Nonresidential Average Weekday Vehicle Trip Projections 102,025 106,639 111,658 116,178 120,697 125,217 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change in Population 631 677 677 677 677 3,338 Net Change in Nonresidential Trips 4,614 5,019 4,519 4,519 4,519 23,191 POLICE FACILITY 2008 2009 2010 2011 2012 Planned LOS-Sq.Ft.per Person 0.38 0.38 0.38 0.38 0.38 Planned LOS-Sq.Ft.per Nonres Trip 0.01 0.01 0.01 0.01 0.01 5-Year Total Sq.Ft.Demanded by New Res.Development 241 258 258 258 258 1,274 Sq.Ft.Demanded by New Nonres.Development 30 32 29 29 29 150 Cost per Sq.Ft. $318 $318 $318 $318 $318 5-Year Total Police Facility Cost For New Res.Development $76,514 $82,049 $82,049 $82,049 $82,049 $404,711 Police Facility Cost For New Nonres.Development $9,473 $10,306 $9,280 $9,280 $9,280 $47,618 TOTAL COSTS FOR NEW DEVELOPMENT $85,987 $92,355 $91,329 $91,329 $91,329 $452,328 POLICE FACILITY CONSTRUCTION COST 2008 2009 2010 2011 2012 5-Year Total Police Facility Construction Cost $6,995,095 $6,995,095 Less Income from Development Fees $85,987 $92,355 $91,329 $91,329 $91,329 $452,328 NET DEFICIT $6,542,767 LAND FOR POLICE TRAINING AND PROPERTY ID FACILITY- COST RECOVERY The cost recovery methodology is used to derive the land for police training and property ID facility portion of the police development fee. Figure 27 provides the acquired acreage and original land acquisition cost for the police portion of the Municipal Operations Center site. The Town acquired the site in 2005, and the Figure reflects the cost to acquire the police portion of the site at that time. The police portion of the site corresponds with the share of the debt issuance assigned to the general fund. As the police facility will provide a level of service improvement, demand for this site is generated both by existing and new development. The site is expected to serve the Town through 2025, which corresponds with the end of the Town's debt service for the land acquisition. To calculate the residential level of service, the acreage of the site for the planned police facility (2.2 acres) is multiplied by the residential proportionate share factor of 95% (see Figure 24) and then divided by the total population in 2025 of 54,641, resulting in .00004 acres per person. See the Appendix for detail on population projections. Nonresidential level of service is calculated by multiplying the nonresidential proportionate share factor of 5% (see Figure 24) and dividing by the total nonresidential average daily vehicle trips in 2025 (180,444), providing for .000001 acres per trip. See the Appendix for detail on trip projections. = isc e Ise r _ s 28 ;`,``- ti4t,:'. _-- _.'?_- .r'_'--"'-.'• -•.,__, -.-n°`?sra__.-,rpe.3*?�.rrr.t:.s._..i.ie. ... s °.t. ..__- _.-- Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan .- �€:-,:"Y_-.:___ ,._ -. .u.- r....-: - :..•.,_ _. _"_ .. :,`.,:•..:_.,_.:*st 'a"e.''-g ';ac�""_'.c+-'. __��'f, tEan^.•:___ SiY`. -.. .. -f."'c`.-. ... -- = �� -_ d`_ €"-�`-��E�_. The land for police facility cost per person is calculated in a similar fashion, using the police share of the original land acquisition cost of$787,405. This results in a land for police facility cost of$13.65 per person ($787,405 x 95%)/54,641 = $13.65) and $.23 per trip (($787,405 x 5%)/180,444 = $.23). Figure 27: Land for Police Facility Level of Service and Cost Standards Acquisition Cost Police Share of Sit:Area Yccr Acquired Acres Police Share Per Acre* Acquisition Cost Future Police Facility at Municipal Operations Center 2005 2.2 17% $357,197 $787,405 TOTAL 2.2 $787,405 Proportionate 2025 Acres per Cost per Share Demand Units Demand Unit Demand Unit Residential 95% 54,641 population 0.00004 $13.65 Nonresidential 5% 180,444 nonres trips 0.000001 $0.23 *Source:Town of Oro Valley,AZ.Police's share corresponds with current allocation of debt service associated with land acquisition bonds. Figure 28 shows the Infrastructure Improvements Plan (IIP) for the site of the planned police facility. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons and 23,191 nonresidential trips. Based on the existing LOS standards of.00004 acres per person and .000001 acres per nonresidential trip, this amount of residential development will require approximately .13 acres and non- residential development will require .02 acres. The projected cost of this demanded infrastructure totals $50,916 over the next five years. Of this, $45,556 is attributable to new residential development. This equates to $13.65 per person ($45,556/3,338 persons = $13.65). The remainder, $5,360, is attributable to new nonresidential development. This equates to $.23 per nonresidential trip ($5,360/23,191 trips = $.23). TischlerBise 29 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 28: Land for Police Facility Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 Nonresidential Average Weekday Vehicle Trip Projections 102,025 106,639 111,658 116,178 120,697 125,217 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change in Population 631 677 677 677 677 3,338 Net Change in Nonresidential Tris 4,614 5,019 4,519 4,519 4,519 23,191 LAND FOR POLICY FACILITY 2008 2009 2010 2011 2012 Cost Recovery LOS-Acres per Person 0.00004 0.00004 0.00004 0.00004 0.00004 Cost Recovery LOS-Acres per Nonres Trip 0.000001 0.000001 0.000001 0.000001 0.000001 5-Year Total Vehicles/Equipment Demanded by New Res.Development 0.02 0.03 0.03 0.03 0.03 0.13 Vehicles/Equipment Demanded by New Nonres.Development 0.00 0.00 0.00 0.00 0.00 0.02 Cost per Acre $357,197 $357,197 $357,197 $357,197 $357,197 5-Year Total Land for Police Facility Cost For New Res.Development $8,613 $9,236 $9,236 $9,236 $9,236 $45,556 Land for Police Facility Cost For New Nonres.Development $1,066 $1,160 $1,045 $1,045 $1,045 $5,360 TOTAL COSTS FOR NEW DEVELOPMENT $9,679 $10,396 $10,280 $10,280 $10,280 $50,916 Land for Police Facility Cost Per Person $13.65 Land for Police Facility Cost Per Nonres Trip $0.23 POLICE VEHICLES/EQUIPMENT-INCREMENTAL EXPANSION The incremental expansion methodology is used to derive the vehicles/equipment component of the police development fee. Figure 29 provides an inventory of current police vehicles/equipment. Current replacement cost for vehicles/equipment is provided by the Oro Valley Police Department. To calculate the residential level of service, the 120 vehicles/equipment are multiplied by the residential proportionate share factor 95% (see Figure 24) and then divided by the 2007 population of 42,551, resulting in .0027 vehicles/equipment per person. See the Appendix for detail on the 2007 population estimate. Nonresidential level of service is calculated by multiplying vehicles/equipment by the nonresidential proportionate share factor of 5% (see Figure 24) and divided by the number of nonresidential vehicle trips in the Town in 2007 (63,428 trips), providing for .0001 vehicles/equipment per nonresidential average daily vehicle trip. See the Appendix for detail on the 2007 nonresidential trip estimate. The police vehicle/equipment cost per person is calculated in a similar fashion, using the total replacement cost of $4,122,632. This results in a police vehicle/equipment cost of $91.76 per person (($4,122,632 x 95%)/42,551 = $91.76) and $3.44 per trip (($4,122,632 x 5%)/63,428 = $3.44). TischlerBise 30 Fiscal.Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan -.z fie,-_-;F' Y-.�' e'.e4_�- .e+r.II_F-.-x_cc'+�-ate,•�.•t- -_ #'�S'.. --_ _'� - b�-'•� _.- ..:... .... --_ _.... _..: _-.._..;'.'�4Y�' ...slq�• �_'.:3�..-__.-_'t #C'7 r_} - .ITOM1es"-4FS`^"45.-__ _-- -7-V;.1F Figure 29: Police Vehicles/Equipment Level of Service and Cost Standards Type of Units in Unit Total Replacement Vehicle/Equipment Service Replacement Cost* Cost Marked Patrol Sedan 43 $43,885 $1,887,055 Marked DUI Patrol Sedan 2 $50,645 $101,290 Marked K-9 Patrol Sedan 4 $46,557 $186,228 Marked K-9 Patrol Truck 1 $52,526 $52,526 Marked Patrol SUV 4 $49,917 $199,668 Marked Patrol 1 1/2 Ton Truck 1 $47,361 $47,361 Marked Motorcycle 11 $28,112 $309,232 Unmarked Trucks 4 $24,978 $99,912 Large Sport Wagon 1 $45,031 $45,031 3/4 Ton Truck 1 $36,568 $36,568 Unmarked Mid-size Sedan 30 $24,302 $729,060 Unmarked Full-size Sedan 3 $34,582 $103,746 Unmarked Van 2 $17,942 $35,884 Command Post 1 $132,667 $132,667 ATV 1 $5,200 $5,200 Property and Indentification Vans 3 $26,793 $80,379 8 Passenger Van 1 $17,391 $17,391 15 Passenger Van 1 $20,460 $20,460 Trailers 6 $5,496 $32,974 TOTAL/AVERAGE 120 $34,355 $4,122,632 Proportionate 2007 Vehicles per Cost per Share Demand Units Demand Unit Demand Unit Residential 95% 42,551 population 0.0027 $91.76 Nonresidential 5% 63,428 nonres trips 0.0001 $3.44 *Source:Oro Valley Police Department Figure 30 shows the Infrastructure Improvements Plan (IIP) for police vehicles/equipment. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons and 23,191 nonresidential trips. Based on the existing LOS standards of.0027 units per person and .0001 units per nonresidential trip, this amount of residential development will require approximately 8.92 units of vehicles/equipment and non-residential development will require 2.32 vehicles/equipment. The projected cost of this demanded infrastructure totals $386,132 over the next five years. Of this, $306,293 is attributable to new residential development. This equates to $91.76 per person ($306,293/3,338 persons = $91.76). The remainder, $79,839, is attributable to new nonresidential development. This equates to $3.44 per nonresidential trip ($79,839/23,191 trips = $3.44). TischlerBise 31 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 30: Police Vehicles/Equipment Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 Nonresidential Average Weekday Vehicle Trip Projections 102,025 106,639 111,658 116,178 120,697 125,217 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change in Population 631 677 677 ,677 677 3,338 Net Change in Nonresidential Trips 4,614 5,019 4,519 4,519 4,519 23,191 POLICE VEHICLES AND EQUIPMENT 2008 2009 2010 2011 2012 Incremental LOS-Vehicles/Equipment per Person 0.0027 0.0027 0.0027 0.0027 0.0027 Incremental LOS-Vehicles/Equipment per Nonres Trip 0.0001 0.0001 0.0001 0.0001 0.0001 5-Year Total Vehicles/Equipment Demanded by New Res.Development 1.69 1.81 1.81 1.81 1.81 8.92 Vehicles/Equipment Demanded by New Nonres.Developm€ 0.46 0.50 0.45 0.45 0.45 2.32 Cost per Vehicle/Equipment $34,355 $34,355 $34,355 $34,355 $34,355 5-Year Total Vehicles/Equipment Cost For New Res.Development $57,907 $62,097 $62,097 $62,097 $62,097 $306,293 Vehicles/Equipment Cost For New Nonres.Development $15,883 $17,280 $15,559 $15,559 $15,559 $79,839 TOTAL COSTS FOR NEW DEVELOPMENT $73,790 $79,376 $77,655 $77,655 $77,655 $386,132 Police Vehicles/Equipment Cost Per Person $91.76 Police Vehicles/Equipment Cost Per Nonres Trip $3.44 POLICE DEVELOPMENT FEE STUDY The Town plans to update its development fees every three years to ensure the methodologies, assumptions, and cost factors used in the calculations are still valid and accurate. TischlerBise has included the cost of preparing this portion of the study in the development fee calculations in order to create a source of funding to conduct this regular update. The cost of this component ($11,300) is allocated to the projected increase in population and nonresidential trips over the next three years. This results in a development fee study cost per demand unit of $.70 per person and per nonresidential trip ($11,300/16,137 people and nonresidential trips = $.70). POLICE DEVELOPMENT FEE INPUT VARIABLES Figure 31 shows level of service standards and cost factors for police development fees for Oro Valley. Development fees for police are based on household size (i.e., persons per housing unit) and average daily vehicle trips per 1,000 square feet of floor area for non- residential development. Level of service standards are based on current costs per demand unit for the training and property identification facility, land for the police facility, police vehicles/equipment and the police component of the development fee study. TischlerBise 32 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Figure 31: Police Development Fee Input Variables INPUT VARIABLES Residential Nonresidential Persons Per Housing Unit Single Family 2.26 All Other Housing 1.34 Weekday Vehicle Trip Ends per 1,000 Square Feet Corn/ Shop Ctr 25,000 SF or less 110.32 Corn/ Shop Ctr 25,001-50,000 SF 86.56 Corn/ Shop Ctr 50,001-100,000 SF 67.91 Corn/ Shop Ctr 100,001-200,000 SF 53.28 Com/Shop Ctr 200,001-400,000 SF 41.80 Office/ Inst 25,000 SF or less 18.35 Office/ Inst 25,001-50,000 SF 15.65 Office/ Inst 50,001-100,000 SF 13.34 Office/ Inst 100,001-200,000 SF 11.37 Business Park 12.76 Light Industrial 6.97 Warehousing 4.96 Manufacturing 3.82 Weekday Vehicle Trip Ends per Room Lodging 5.63 Trip Adjustment Factors Corn/Shop Ctr 25,000 SF or less 28% Corn/ Shop Ctr 25,001-50,000 SF 31% Corn/ Shop Ctr 50,001-100,000 SF 33% Corn/ Shop Ctr 100,001-200,000 SF 36% Corn/Shop Ctr 200,001-400,000 SF 39% All Other Nonresidential Development 50% Cost Factors Per Person Per Trip Planned Component for Police Training/Property ID $121.24 $2.05 Cost Recovery Component for Police Facility Land $13.65 $0.23 Incremental Expansion Component for Police Vehicles/Equip. $91.76 $3.44 Development Fee Study Cost $0.70 $0.70 Total Capital Cost Per Demand Unit $227.34 $6.43 MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS FOR POLICE Figure 32 contains a schedule of the maximum supportable police development fees for Oro Valley. Residential development fee amounts are calculated by multiplying the persons per housing unit for each type of housing by the total capital cost per person. For example, for a single family unit, the persons per housing unit figure of 2.26 is multiplied by the total capital cost per person of $227.34 for a development fee amount of $513 per single family unit. The calculation is repeated for the all other housing type category. For non-residential development, average weekday vehicle trips per 1,000 sq. ft. are multiplied the applicable trip adjustment factor, then by the total capital cost per trip. For example, for a commercial/shopping center from 50,001 to 100,000 sq. ft., 67.91 trips per 1,000 sq. ft. is multiplied by the trip adjustment factor of 33% and then by $6.43 per trip for a total development fee of $144 per 1,000 sq. ft. This calculation is repeated for the remaining nonresidential categories. Trip adjustment factors are discussed further in the Appendix. TischlerBise 33 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Figure 32: Police Development Fee Schedule MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS Residential Per Housing Unit Single Family $513 All Other Housing $305 Nonresidential Per 1,000 Sq.Ft. Com/ Shop Ctr 25,000 SF or less $199 Corn/ Shop Ctr 25,001-50,000 SF $172 Corn/ Shop Ctr 50,001-100,000 SF $144 Com/ Shop Ctr 100,001-200,000 SF $123 Com/ Shop Ctr 200,001-400,000 SF $105 Office/ Inst 25,000 SF or less $59 Office/ Inst 25,001-50,000 SF $50 Office/ Inst 50,001-100,000 SF $43 Office/ Inst 100,001-200,000 SF $37 Business Park $41 Light Industrial $22 Warehousing $16 Manufacturing $12 Per Room Lodging $18 TischlerBise 34 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan r . ---- �-�- �--�-..- - �- ��.-- - ._ '��<� ,�_ �-..t.-sem r ^r� . }s:-.__ *,�..-�-- � �� -- - - - - .� Parks and Recreation METHODOLOGY The components of this development fee include parkland acquisition and development, park amenities, recreational facilities, vehicles/equipment and the parks and recreation component of the development fee study. The incremental expansion methodology is used for all development fee components. All capital costs have been allocated to residential development. Standards have been shown on a per capita basis. Persons per housing unit is used to differentiate the development fees by type of housing unit (see Appendix 1 for demographic information). All components in this development fee have a Town wide service area. Figure 3: Parks and Recreation Development Fee Methodology Chart Parks and Recreation Development Fee . 1 Persons per Housing Unit Multiplied by Total Capital By Housing Type Cost Per Person Parkland Acquistion and Development Cost Per Person Park Amenities I Cost Per Person Recreational Facilities Cost Per Person Vehicles and Equipment Cost Per Person Development Fee Study I Cost Per Person I 8 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan a....-r-.,e ,..3-+ams..s�+ o-.� •-:v+n.+e=..:t^-,a•e-R--xc-"scm^. se.zs�-+ar_.. e*x__._.-=°a?`s7i}`:.'..`e.`—Ram""'" ___.` •�. .:.3.^ _ _ _ - u'+'� ?.'...: _ — ,�is�w�r:+�"3. PARKLAND ACQUISITION AND DEVELOPMENT—INCREMENTAL EXPANSION The parkland acquisition and development component of the parks and recreation development fee is calculated using the incremental expansion methodology. Figure 4 provides an inventory of the Town of Oro Valley's developed (active) parkland. The current acquisition cost for parkland is estimated at $49,000 per acre based on recent parkland acquisition by Pima County. The cost per acre of development (grading and slope treatment) is estimated at $68,769/acre based on the Town's plans for the Naranja Town Site, bringing the total cost per acre to $117,769. This results in a total parkland value of approximately $8,479,350. To calculate the level of service (LOS) for parkland, 72 acres is divided by the Town's population in 2007 of 42,551 persons (72 acres / 42,551 persons = .0017 acres per person, or 1.69 acres per 1,000 persons). See the Appendix for detail on the 2007 population estimate. The parkland acquisition cost per person is calculated in a similar fashion, using the total parkland value of$8,479,350. This results in a parkland acquisition cost of$199.27 per person ($8,479,350 / 42,551 = $199.27). TischlerBise 9 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan a _. v-.C�. '.^craa::a-Yt�`3'S�F`i`''''-.+r.3i�+rt 3`_'•+J'?'eP+oS.,"a"f„ .. -s.MtP$`e.-.__, ... .... ,_.. Figure 4: Parkland Level of Service and Cost Standards Parks Developed Acres* Canada Del Oro Riverfront Park 20 James D.Kreigh Park 12 W. Lambert Lane Park 40 Total Developed Park Acres 72 Land Acquisition Cost/Acre** $49,000 Development Cost/Acre** $68,769 Total Cost/Acre $117,769 Acres x Price Total Cost $8,479,350 Population in 2007 42,551 Acres per 1,000 residents 1.69 Land Cost Per Acre $49,000 Land Cost Per Person $199.27 *Source: Town of Oro Valley,AZ. Passive parkland(Naranja Town Site, W. Lambert Lane Park,5 acres at Jame D. Kriegh Park, 10 acres at Canada del Oro Riverfront Park)is not included. **Source:Land acquisition cost based on recent parkland acquistion by Pima County. The Town of Oro Valley expects that future land acquistion costs will be comparable to those of the County. Development(grading and slope treatment)cost based on Naranja Town Site Plans ($5,501,500/80 acres = $68,769/acre). T . 10 r-7,77-4.7-z7,;- ZZE2BEEINEELM=Z..M.- ,,-, --- ---.',---,--, --71=Via.WINJERM,Z= -- ,---",",, isc e Ise Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Figure 5 shows the Infrastructure Improvements Plan (IIP) for parkland acquisition and development. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons. Based on the LOS standard of.0017 acres per person, this amount of residential development will require approximately 5.65 acres of parkland. The projected cost of this demanded infrastructure totals $665,212 over the next five years. This is the equivalent of $199.27 per person ($665,212 /3,338 persons = $199.27). Figure 5: Parkland Acquisition and Development Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change 631 677 677 677 677 3,338 PARKLAND ACQUISITION AND DEVELOPMENT 2008 2009 2010 2011 2012 Incremental LOS-Acres per Person 0.0017 0.0017 0.0017 0.0017 0.0017 5-Year Total Acres Demanded by New Development 1.07 1.15 1.15 1.15 1.15 5.65 Parkland Acquisition and Dev.Cost per Acre $117,769 $117,769 $117,769 $117,769 $117,769 5-Year Total Parkland Acquisition and Dev.Cost For New Res.Development $125,764 $134,862 $134,862 $134,862 $134,862 $665,212 Parkland Acquisition and Development Cost Per Person $199.27 PARK AMENITIES—INCREMENTAL EXPANSION The incremental expansion methodology is used to derive the park amenity component of the parks and recreation development fee. Figure 6 lists the park amenities by Town park, including lighted baseball and softball fields, lighted soccer fields, lighted racquetball court, walking paths, lighted tennis court, horseshoe pits, lighted armadas, playgrounds, restrooms and a dog park. Also shown is the estimated cost per amenity unit. Unit costs are from the Town's plans for the Naranja Town Site. To calculate the LOS for park amenities, 33.75 amenities is divided by the Town's population in 2007 of 42,551 persons (33.75 amenities / 42,551 persons = .001 amenities per person). See the Appendix for detail on the 2007 population estimate. The park amenity cost per person is calculated in a similar fashion, using the total amenity value of$4,350,400. This results in a park amenity cost of$102.24 per person ($4,350,400 /42,551 = $102.24). TuschlerBise 11 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 6: Park Amenities Level of Service and Cost Standards Lighted Lighted Lighted Lighted Lighted Baseball, Soccer Racquetball Basketball Walking Tennis Horse- Lighted Play- Rest- Parks Softball Field Field Court Court Path(Mi.) Court shoe Pit Ramada ground room Dog Park TOTAL Canada Del Oro Riverfront Park 2 2 _ 1 0.75 1 2 3 1 2 14.75 James D.Kriegh Park 1 2 4 _ 2 3 2 1 15 West Lambert Lane Park 1.00 _ 1 Naranja Town Site 3.00 3 Total 3 4 4 1 4.75 1 2 5 4 4 1 33.75 Unit Cost* $250,000 $210,000 $50,000 $100,000 $54,400 $140,000 $1,000 $90,000 $150,000 $215,000 $150,000 Units x Cost $750,000 $840,000 $200,000 $100,000 $258,400 $140,000 $2,000 $450,000 $600,000 $860,000 $150,000 $4,350,400 Population in 2007 42,551 Amenities Per Capita 0.001 Cost Per Capita $102.24 *Source:Oro Valley Parks and Recreation Department.Costs from plans for Naranja Town Site. Figure 7 shows the Infrastructure Improvements Plan (IIP) for park amenities. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons. Based on the LOS standard of.001 amenities per capita, this amount of residential development will require approximately 2.65 amenities. The projected cost of this demanded infrastructure totals $341,292 over the next five years. This is the equivalent of $102.24 per person ($341,292/3,338 persons = $102.24). Figure 7: Park Amenities Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change 631 677 677 677 677 3,338 PARK AMENITIES 2008 2009 2010 2011 2012 Incremental LOS-Amenities per Person 0.001 0.001 0.001 0.001 0.001 5-Year Total Amenities Demanded by New Development 0.50 0.54 0.54 0.54 0.54 2.65 Cost per Amenity $128,901 $128,901 $128,901 $128,901 $128,901 5-Year Total Park Amenity Cost For New Res.Development $64,524 $69,192 $69,192 $69,192 $69,192 $341,292 Park Amenity Cost Per Person $102.24 0 TischlerBise 12 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan RECREATIONAL FACILITIES—INCREMENTAL EXPANSION The incremental expansion methodology is used to derive the recreational facilities component of the parks and recreation development fee. Figure 8 provides an inventory of park recreational facilities. Current replacement cost is provided by the Town based on plans for the Naranja Town Site. TQ.,calculate the LOS ,for recreational facilities,_._.3 facilities is divided by the Town's population in 2007 of 42,551 persons (3 facilities / 42,551 persons = .0001 facilities per person). See the Appendix for detail on the 2007 population estimate. The recreational facilities cost per person is calculated in a similar fashion, using the total replacement cost of $37,517,900. This results in a recreational facilities cost of $881.72 per person ($37,517,900/42,551 = $881.72). Figure 8: Recreational Facilities Level of Service and Cost Standards Facility Park Facilities Replace. Cost/Facility* Replacement Cost Outdoor Amphitheater Canada Del Oro 1 $34,795,900 $34,795,900 Swimming Pools (2) James.D.Kriegh 2 $1,361,000 $2,722,000 TOTAL/AVERAGE 3 $12,505,967 $37,517,900 Population in 2007 42,551 Facilities Per Capita 0.0001 Cost Per Capita $881.72 *Source:Oro Valley Parks and Recreation Department. Costs from plans for Naranja Town Site. Figure 9 shows the Infrastructure Improvements Plan (IIP) for recreational facilities. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons. Based on the existing LOS standard of .0001 facilities per person, this amount of residential development will require approximately .24 facilities. The projected cost of this demanded infrastructure totals $2,943,309 over the next five years. This is the equivalent of$881.72 per person ($2,943,309/3,338 persons = $881.72). "'"Y ^r_E w--._ .-F' sxz-si�°&3?..�ti. 'Y:-:-. i r r%_;.. TuschlerBise 1 3 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan '? _..,�. _-_s.=_ 3-^.,..�.e-.�q �: .f^^-i �" �-"'E '_77, ..'. ? -" - r , "'K ''^3 •• "_a ...,-..,.^n--.Y-cs tea:,.--+..r te^a= _ Figure 9: Recreational Facilities Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change 631 677 677 677 677 3,338 PARK RECREATIONAL FACILITIES 2008 2009 2010 2011 2012 Incremental LOS-Facilities per Person 0.0001 0.0001 0.0001 0.0001 0.0001 5-Year Total Facilities Demanded by New Development 0.04 0.05 0.05 0.05 0.05 0.24 Cost per Facility $12,505,967 $12,505,967 $12,505,967 $12,505,967 $12,505,967 5-Year Total Park Recreational Facilities Cost For New Res.Development $556,457 $596,713 $596,713 $596,713 $596,713 $2,943,309 Park Recreational Facilities Cost Per Person $881.72 PARK VEHICLES/EQUIPMENT—INCREMENTAL EXPANSION The incremental expansion methodology is used to derive the vehicle/equipment cost component of the parks and recreation development fee. Figure 10 provides an inventory of current park vehicles/equipment. Current replacement cost for Town park vehicles/equipment is provided by the Town of Oro Valley. To calculate the LOS for park vehicles/equipment, 14 units is divided by the Town's population in 2007 of 42,551 persons (14 units /42,551 persons = .0003 units per person). See the Appendix for detail on the 2007 population estimate. The park vehicle/equipment cost per person is calculated in a similar fashion, using the total replacement cost of $272,144. This results in a park vehicles/equipment cost of $6.40 per person (($272,144 /42,551 = $6.40). TischlerBise 14 Fiscal,Economic Ec Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan = few.i�....a�+�w�isl�.�c.��,wc.ww.e,3�_.... + .._ _ _ _ _ - _ YGr_—..._ s.--..__... - 'c-�'�... -�-�: •�-..._ �".:_.. ._ S�t_ _• i � _ A^e-_p• ^--,-h%�-'t{..tom 0�3 Figure 10: Park Vehicles/Equipment Level of Service and Cost Standards Type of Units in Unit Total Replacement Vehicle/Equipment Service Replacement Cost* Cost 1/2 Ton Pickup Truck 3 $26,000 $78,000 3/4 Ton Pickup Truck 1 $28,050 $28,050 1 Ton Pickup Truck 1 $31,050 $31,050 Utility Tractor with Backhoe,Loader,and-vlowei -1 $30,166 - $30,166 Backhoe with 12" Bucket 1 $7,417 $7,417 Tractor 1 $18,419 $18,419 Bunker Rake 2 $18,706 $37,412 4wd utility vehicle 2 $14,210 $28,420 Aerifier 1 $6,221 $6,221 Fertilizer and sand spreader 1 $6,989 $6,989 TOTAL/AVERAGE 14 $19,439 $272,144 Population in 2007 42,551 Vehicles/Equipment Per Capita 0.0003 Cost Per Capita $6.40 *Source:Town of Oro Valley,AZ Figure 11 shows the Infrastructure Improvements Plan (IIP) for park vehicles and equipment. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figures listed above. Over the next five years, there is a projected increase of 3,338 persons. Based on the existing LOS standard of .0003 vehicles/equipment per person, this amount of residential development will require approximately 1.10 vehicle/equipment. The projected cost of this demanded infrastructure totals $21,350 over the next five years. This is the equivalent of $6.40 per person ($21,350/3,338 persons = $6.40). _ TischlerBise 1 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan -._..... --'--�-'.-.-.-y_._ --:€€'R•^-:-' .�__>.:,:mss"'. '3�€"-^-�...��-iRa.'A 33tr— -.--['s--!- �n,�,�'s^'� �+m- _-;r. _ -zT.s -_ '€-_'.�>� �-g Figure 11: Park Vehicles/Equipment Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 Population Projections 43,182 43,813 44,490 45,167 45,844 46,520 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change 631 677 677 677 677 3,338 PARK VEHICLES AND EQUIPMENT 2008 2009 2010 2011 2012 Incremental LOS-Vehicles/Equipment per Person 0.0003 0.0003 0.0003 0.0003 0.0003 5-Year Total Vehicles/Equipment Demanded by New Development 0.21 0.22 0.22 0.22 0.22 1.10 Cost per Vehicle/Equipment $19,439 $19,439 $19,439 $19,439 $19,439 5-Year Total Park Vehicle/Equipment Cost For New Res.Development $4,036 $4,328 $4,328 $4,328 $4,328 $21,350 Park Vehicle and Equipment Cost Per Person $6.40 PARKS AND RECREATION DEVELOPMENT FEE STUDY The Town plans on updating its development fees study every three years to ensure the methodologies, assumptions, and cost factors used in the calculations are still valid and accurate. TischlerBise has included the cost of preparing this portion of the study in the parks and recreation development fee calculations in order to create a source of funding to conduct this regular update. The cost of this component ($13,600) is allocated to the projected increase in population over the next three years (2008-2011). This results in a development fee study cost per demand unit of$6.85 per person ($13,600/1,985 people). PARKS AND RECREATION DEVELOPMENT FEE INPUT VARIABLES Figure 12 shows level of service standards and cost factors for the Oro Valley parks and recreation development fees. Development fees for parks and recreation are based on household size (i.e., persons per housing unit) and are charged to residential development. Level of service standards are based on current costs per person for parkland acquisition and development, park amenities, recreational facilities, park vehicles/equipment and the parks and recreation component of the development fee study. TischlerBise 16 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Figure 12: Parks and Recreation Development Fee Input Variables INPUT VARIABLES Residential Persons Per Housing Unit Single Family 2.26 All Other Housing 1.34 Level Of Service Park Land Acquisition and Development(Incremental-Expansion) Park Land Cost per Person $199.27 Park Amenities(Incremental-Expansion) Park Amenities Cost per Person $102.24 Recreational Facilities(Incremental-Expansion) Recreational Facilities Cost Per Person $881.72 Park Vehicles and Equipment(Incremental-Expansion) Park Vehicles and Equipment Cost Per Person $6.40 Development Fee Study Development Fee Study Cost Per Person $6.85 Total Capital Cost per Person $1,196.48 MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS FOR PARKS AND RECREATION Figure 13 contains a schedule of maximum supportable parks and recreation development fees for Oro Valley. The amounts are calculated by multiplying the persons per housing unit for each type of unit by the total capital cost per person. For example, for a single family unit, the persons per housing unit figure of 2.26 is multiplied by the total capital cost per person of$1,196.48 for a parks and recreation development fee amount of$2,669 per single family unit. The calculation is repeated for the all other housing category. Figure 13: Parks and Recreation Development Fee Schedule MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS Residential Development Fee per Housing Unit Single Family $2,699 All Other Housing $1,607 TischIeise Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan �:.:s�-:#±�w.r -.4 `-,::: '--`. -.. -._ ---r.�-. -..:,?r^xr"g'"'_"'=_k.=a':�:--,_a.#_:'_, =c Utz -� _ -_. __ -_a" ,€e�a"- ^s^ss_-,>�- ,:z'�..•g? _ �. ��^�.- : ._ .-•cam ..:., '- _�r' �+..'--.._:.-... �T....._...- :.--... .. .. sar--.._:.,.:,-- __._ _._- __-_,- Transportation METHODOLOGY The Town of Oro Valley transportation development fee is derived using a plan-based methodology linked to the Pima Association of Governments Transportation Improvement Plan 2008-2012 and the 20-year Regional Transportation Authority Regional Transportation Plan (adopted in 2006). As shown in Figure 43, trip generation rates by type of development are multiplied by the total capital cost per vehicle mile of travel (VMT) to yield the transportation development fees. The methodology includes trip adjustment factors for commuting patterns, pass-by trips and average trip length variation by type of land use. TischlerBise 45 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan - =: f..*nor»-c- -^--moi - Figure 43: Transportation Development Fee Methodology Average Weekday Vehicle Trip Ends By Type of Development Multiplied by Trip Adjustment Factors (Commuting, Pass-By Trips and Trip Length Adjustments) Multiplied by Total Capital Cost Per Vehicle Miles of Travel Arterial Marginal Cost Road Improvements Arterial Average Cost Road Improvements Collector Average Cost Road Improvments Public Works Facility Land for Public Works Facility Vehicles and Equipment VEHICLE TRIPS Vehicle trip generation rates are from the reference book Trip Generation (Institute of Transportation Engineers, 2003). Oro Valley's transportation development fees are based on average weekday vehicle trip ends. A vehicle trip end represents a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway). To calculate the development fees, trip generation rates are adjusted to avoid double counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is 50%. As discussed further below, the development fee methodology includes additional adjustments to make the fees proportionate to the infrastructure demand for particular types of development. TischlerBise 46 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan n -.eLi•ar 'e"S•R"'- Adjustment for Journey-To-Work Commuting Residential development has a higher trip adjustment factor of 63% to account for commuters leaving Oro Valley for work (see calculation in Figure 44). According to the National Household Travel Survey (see Table 29, Federal Highway Administration, 2001) home-based work trips are typically 31% of production trips (i.e., all out-bound trips, which are 50% of all trip ends). Also, Census 2000 data from Table P27 in Summary File 3 indicates that 83% of Oro Valley's workers travel outside the Town for work. In combination, these factors (0.31 x 0.50 x 0.83 = 0.13) account for 13% of production trips. The total adjustment factor for residential includes attraction trips (50% of trip ends) plus the journey-to-work commuting adjustment (13% of production trips) for a total of 63%. Figure 44: Trip Adjustment for Journey to Work Commuting Share of Home Based Trips for Work 31% Outbound Trips 50% Workers Traveling Outside Oro Valley for Work 83% Journey to Work Commuting Adj. 13% Attraction Trips 50% Journey to Work Commuting Adj. 13% Residential Adjustment Factor 63% Source: National Household Transportation Survey 2001 (Table 29) and 2000 U.S.Census,Table P27. Adjustment for Pass-by Trips A simple trip adjustment factor of 50% has been applied to the office, public sector and goods production categories. The commercial/retail category has a trip factor of less than 50% because this type of development attracts vehicles as they pass-by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. As documented in Trip Generation, there is an inverse relationship between shopping center size and pass-by trips. Therefore, appropriate trip adjustment factors have been calculated according to shopping center size. For this type of development, the trip adjustment factor is less than 50 percent because retail uses attract vehicles as they pass by. For example, the ITE Manual indicates that on average 45% of the vehicles entering shopping centers under 25,000 square feet are passing by on the way to some other primary destination and 55% of the attraction trips have the shopping center as their primary destination. Therefore, the adjusted trip factor is 28% (0.55 x 0.50). TischlerBise 47 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan , ..' . '. Figure 45: Commercial/Shopping Center Trip Rates and Pass-By Adjustments Weekday 72003 Data Floor Area Commercial Commercial Shopping Centers General Office in thousands Pass-by Trip Adj ITE 820 ITE 710 (KSF) Trips* Factor** Trip Ends Rate/KSF Trip Ends Rate/KSF 10 52% 24% 1,520 152.03 227 22.66 25 45% 28% 2,758 110.32 459 18.35 50 39% 31% 4,328--- 86.56 782 15.65 100 34% 33% 6,791 67.91 1,334 13.34 200 29% 36% 10,656 53.28 2,275 11.37 400 23% 39% 16,722 41.80 3,879 9.70 800 18% 41% 26,239 32.80 6,615 8.27 Source: Trip Generation,Institute of Transportation Engineers,2003. * Based on data published by ITE in Trip Generation Handbook(2004),the best trendline correlation between pass-by trips and floor area is a logarithmic curve with the equation((- 7.6812*LN(KSF)) +69.293). ** To convert trip ends to vehicle trips,the standard adjustment factor is 50%. Due to pass- by trips,commercial trip adjustment factors are lower,as derived from the following formula (0.50*(1-passby pct)). GROWTH-RELATED DEMAND FOR TRANSPORTATION IMPROVEMENTS The Regional Transportation Authority Regional Transportation Plan identifies regional transportation improvements needed to accommodate new growth through 2025. In addition, the Pima Association of Government TIP list projects approved for construction during the 2008-2012 time frame. These improvements will expand the street network by 29.80 lane miles, at an average cost of $1.32 million per arterial lane mile and $1.22 for collector lane mile. Figure 46 summarizes the cost of arterial system improvements that will be needed to accommodate projected increases in traffic through 2025. Planned collector road capacity improvements are listed in Figure 47. The top section of the Figure 46 lists those growth- related arterial road projects needed to accommodate new development. As these projects would not be constructed if the Town were to stop growing, construction cost are allocated to the net increase in VMT from 2008-2025. These growth-related capacity projects have a total cost of$31 per vehicle mile of travel. The bottom section of the figure presents arterial capacity projects that will benefit existing and new development through reconstruction of the existing road paired with a capacity expansion. Construction costs for these projects are allocated to all VMT in 2025. These growth-related capacity projects have a total cost of$50 per vehicle mile of travel. This brings the total arterial construction cost to $81 per vehicle mile of travel. isc a Ike 48 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan ,.- :.__. -- .--..14.��.-z._ ..-. _ •sw:'i -.-_- .__-+.P3^.�ri` :, _-- _.:�_�.:�.n`sc.�e-§k�sK2#�-'S_k+a€sa - -- _ 'e°3'a'F�___ ��c�z---2P?--__ '�-`.....�^'c-csrcr:Y.ea.*.^.fb.. - c��.a+.�,a.+..3 Figure 46: Arterial Road Infrastructure Improvements Plan A.Arterial Capacity Projects That Benefit Future Development State,RTA,12.6% Total Project Name&Location* New Lane Miles Estimated Project Cost Funds Local Share ILa Canada Dr.Ext.(Tangerine Rd.to Moore Rd.) 1 4.001 $7,745,0001 $2,331,0001 $5,596,711 TOTAL 4.00 $7,745,000 $2,331,000 $5,596,711 Net Increase in VMT through 2025 175,297 Marginal Cost Per VMT $31 B.Arterial Capacity Projects That Benefit Existing and Future Development State,RTA,12.6% Total Project Name&Location* New Lane Miles Estimated Project Cost Funds Local Share First Ave.(Oracle to Tangerine) 3.60 $12,375,028 $1,500,000 $10,875,028 La Canada(Naranja to Tangerine) 2.00 $10,540,054 $6,250,000 $4,290,054 La Cholla Blvd.(Overton to Tangerine)** 7.00_ $25,083,748 $24,050,000 $1,033,748 Lambert Lane(La Cholla to 1st) 5.20 $17,977,977 $6,400,000 $11,577,977 Tangerine Rd.(Shannon to La Canada)** 4.00 $14,226,998 $13,400,000 $826,998 TOTAL 21.80 $80,203,805 $51,600,000 $28,603,805 VMT in 2025 561,183 Average Cost Per VMT $50 TOTAL 25.80 $34,200,516 Cost Per Lane Mile(Local Share) $1,325,601 Cost Per VMT $81 *Source:Pima Association of Governments,2008-2012 TIP Projects,Oro Valley.Also includes Oro Valley's construction management costs. **These projects are also included in the Regional Transportation Authority's Regional Transportation Plan. Figure 47 summarizes the cost of collector system improvements that will be needed to accommodate projected increases in traffic through 2025. Figure 47 presents collector capacity projects that will benefit existing and new development through reconstruction of the existing road paired with a capacity expansion. Construction costs for these projects are allocated to all VMT in 2025. These growth-related collector capacity projects have a total cost of$62 per vehicle mile of travel. Figure 47: Collector Road Infrastructure Improvements Plan Collector Capacity Projects That Benefit Existing and Future Development State,RTA,12.6% Total Project Name&Location* New Lane Miles Estimated Project Cost Funds Local Share Hardy Road(Northern Ave.\Calle Buena Vista to Oracle) 0.00 $964,000 $875,000 $92,004 Magee Road(Oracle Rd.to N.First Ave.) 4.00 $2,500,000 $1,250,000 $1,292,185 Naranja(Shannon to La Canada) 0.00_ $5,000,000_ $1,610,000 $3,504,405 TOTAL 4.00 $8,464,000 $3,735,000 $4,888,594 VMT in 2025 78,624 Average Cost Per VMT $62 TOTAL 4.00 $4,888,594 Cost Per Lane Mile(Local Share) $1,222,148 Cost Per VMT $62 *Source:Pima Association of Governments,2008-2012 TIP Projects,Oro Valley.Also includes Oro Valley's construction management costs. TischlerBise 49 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan "eAt+eTn»rw.--.. -s_r'-�S,!.?'"y2z",9"-^.sa yam?'u+r..'a= 4"'^.`, zi-'4 as,:fe't-e-.r_;s,..+-�x_..�„*�rt"etlf"aYTS.. -.::'R'v J 4v - ::Gr. r..._- .x;'��•r-s._ee- VEHICLE TRIPS FROM DEVELOPMENT IN ORO VALLEY In addition to the cost per lane mile, development fees are determined by lane capacity and travel demand factors such as the amount of new development, trip generation rates and average trip length. Figure 48 summarizes projected travel demand data for Oro Valley through the year 2025. Trip generation rates and trip adjustment factors, as used in the development fee calculations, convert projected development into average weekday vehicle _� trips on arterials,_indicated by.grey,shading in the middle section of Figure 48. At_the bottom . of the table are data on projected Vehicle Miles of Travel (VMT) and the need for additional lane miles. A Vehicle Mile of Travel (VMT) is simply a measurement unit equal to one vehicle traveling one mile. In the aggregate, VMT is the product of vehicle trips multiplied by the average trip length. This calculation is repeated in Figure 49 for collector roads. Lane Capacity Based on information provided by the Town, the transportation development fee is based on an arterial lane capacity standard of 8,925 vehicles per lane and 8,000 vehicles per lane for collectors. Average Trip Length Knowing the increase in vehicle trips,lane-miles need to accommodate future travel and lane capacity, it is possible to derive the average trip length. The average trip length on planned improvements is determined through a series of iterations using spreadsheet software because the VMT calculations include the same adjustment factors used in the development fee calculations (i.e., residential journey-to-work and commercial pass-by adjustments and average trip length adjustment by type of land use (see below)). Given the projected number of vehicle trips (summarized Figure 48, detail on assumptions provided in Appendix), arterial lane capacity standard and projected need for 25.80 lane miles of additional arterial road capacity (see Figure 46), TischlerBise derived an average trip length on planned arterial system improvements in Oro Valley of 1.92 miles.' I The basis formula for calculating the average trip length is to multiply the lane miles by the capacity and divide by the number of trips. ei,-.7:„€-.4,,,,,,r.4,t,. f=^- ...'-e. ,-. ,,.'0,,,--.....,...,: r{ ..... _,-,.,.,,Z.,,,,,t r'4°..f i. < - a.-. TaschIeise 50 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 48: Projected Travel Demand and Road Needs on Planned Arterial Roads 5-Year Increments Oro Valley,AZ-Arterials 2007 2008 2009 2010 2015 2020 2025 Cumulative DEMAND DATA Increase SF UNITS 15,873 16,123 16,373 16,673 18,173 19,673 21,173 ALL OTHER HOUSING UNITS 2,264 2,314 2,364 2,364 2,364 2,364 2,364 RETAIL/COMM KSF 2,114 3,657 3,837 4,018 4,921 5,825 6,728 OFFICE/INST KSF 683 1,121 1,172 1,223 1,480 1,736 1,993 PUBLIC SECTOR KSF 1,062 1,062 1,072 1,127 1,235 1,235 1,235 GOODS PRODUCTION KSF 13 131 13 13 13 13 13 SF TRIPS 95,447 96,950 98,454' 100,258 109,277 118,297 127,317 ALL OTHER HOUSING TRIPS 9,560 9,771 9,982 9,982 9,982 9,982 9,982 RETAIL/COMM TRIPS 47,370 81,950 85,998 90,047 110,292 130,536 150,781 OFFICE/INST TRIPS 6,266 10,284 10,755 11,225 13,578 15,931 18,284 PUBLIC SECTOR TRIPS 9,745 9,745 9,839 10,339 11,333 11,333 11,333 GOODS PRODUCTION TRIPS 47 47 47 47 47 47 47 TOTAL TRIPS 168,434 208,746 215,074 221,898 254,509 286,126 317,743 ARTERIAL ROAD VMT 330,936 385,886 396,001 406,910 459,289 510,236 561,183 ANL ARTERIAL ROAD LN MI 6.1 1.2 1.2 1.3 1.2 1.2 25.8 ANL ARTERIAL ROAD COST(Millions) $8.09 $1.59 $1.59 $1.72 $1.59 $1.59 $34.20 This calculation is repeated for collectors in Figure 49 based on the projected need for 4 miles of additional collector road capacity (see Figure 47), with a derived average trip length on planned collector system improvements in Oro Valley of.27 miles. Figure 49: Projected Travel Demand and Road Needs on Planned Collector Roads 5-Year Increments Oro Valley,AZ -Collectors 2007 2008 2009 2010 2015 2020 2025 Cumulative DEMAND DATA Increase SF UNITS 15,873 16,123 16,373 16,673 18,173 19,673 21,173 ALL OTHER HOUSING UNITS 2,264 2,314 2,364 2,364 2,364 2,364 2,364 RETAIL/COMM KSF 2,114 3,657 3,837 4,018 4,921 5,825 6,728 OFFICE/INST KSF 683 1,121 1,172 1,223 1,480 1,736 1,993 PUBLIC SECTOR KSF 1,062 1,062 1,072 1,127 1,235 1,235 1,235 GOODS PRODUCTION KSF 13131 13J 131 13 13 13 SF TRIPS 95,447 96,950 98,454 100,258 109,277 118,297 127,317 ALL OTHER HOUSING TRIPS 9,560 9,771 9,982 9,982 9,982 9,982 9,982 RETAIL/COMM TRIPS 47,370 81,950 85,998 90,047 110,292 130,536 150,781 OFFICE/INST TRIPS 6,266 10,284 10,755 11,225 13,578 15,931 18,284 PUBLIC SECTOR TRIPS 9,745 9,745 9,839 10,339 11,333 11,333 11,333 GOODS PRODUCTION TRIPS 47 47 47 47 47 47 47 TOTAL TRIPS168,434. 208,746 215,074; 221,898 254,509 286,126 317,743 COLLECTOR ROAD VMT 46,366 54,064 55,481 57,010 64,348 71,486 78,624 COLLECTOR ROAD LN MI 1.0 0.1 0.2 0.2 0.1 0.2 4.0 ANL COLLECTOR ROAD COST(Millions) $1.2 $0.1 $0.2 $0.2 $0.1 $0.2 $4.88 Average Trip Length Adjustment by Type of Land Use The average trip length is weighted to account for trip length variation by type of land use. As documented by the National Household Travel Survey (see Table 6 in the 2001 publication by the Federal Highway Administration), vehicle trips from residential development, for home-based work trips, social and recreation purposes, are approximately 122% of the average trip length. Conversely, shopping trips associated with commercial development are roughly 68% of the average trip length while other nonresidential development typically account for trips that are 75% of the average trip length. lischlerBise 51 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan PUBLIC WORKS FACILITY—PLAN-BASED The plan-based methodology is used to derive the public works facility component of the transportation development fee. Public Works will be expanding into the planned Municipal Operations Center. Figure 50 shows the square footage for the public works share of the facility and the corresponding costs for that portion of the facility. The construction cost is provided by the Town. The facility is expected to serve the Town through 2025 when the Town's debt service expires. Need fat- the facility is generated by new growth, so the costs are allocated to the net increase in arterial vehicle miles of travel through 2025. Figure 50: Public Works Facility Level of Service and Cost Standards Facility Year Sq. Ft.* Cost/Sq.Ft.** Construction Cost Public Works Space in Future Municipal Operations Center 2010 17,060 $268 $4,564,091 TOTAL 17,060 $4,564,091 Net Increase in Arterial VMT through 2025 175,297 Sq.Ft.per VMT 0.097 Marginal Cost per VMT $26.04 *Source:Town of Oro Valley,AZ. Square footage in planned facility less water operations and water utility production space. **Source:Town of Oro Valley,AZ Figure 51 shows the Infrastructure Improvements Plan (IIP) for public works facilities. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figure listed above. Over the next five years, there is a projected increase of 8,930 residential vehicle miles of travel and 55,313 nonresidential vehicle miles of travel. This brings the increase in vehicle miles of travel over the next five years to 64,243. Based on the planned LOS standard of.09 sq. ft. per VMT, this amount of residential development will require approximately 869 sq. ft. and non-residential development will require 5,383 sq. ft. The projected cost of this demanded infrastructure totals $1,672,648 over the next five years. This equates to $26.04 per VMT ($1,672,648/64,243 = $26.04). The Town's cost for the new public works facility totals $6.9 million. The IIP illustrates new growth's demand for the capital facility and associated costs through FY 2013. The public works facility is expected to serve new growth through 2025, so the remainder of the cost is attributable to new growth during the FY 2014-2025 period. TischlerBise52 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 51: Public Works Facility Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 VMT Projections-Residential 106,721 108,435 110,239 112,043 113,847 115,651 VMT Projections-Nonresidential 310,772 321,713 333,556 344,399 355,242 366,084 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change in VMT from New Res.Development 1,714 1,804 1,804 1,804 1,804 8,930 Net Change in VMT from New Nonres.Development 10,942 11,843 10,843 10,843 10,843 55,313 PUBLIC WORKS FACILITY 2008 2009 2010 2011 2012 Planned LOS-Sq.Ft.per Average Daily VMT 0.10 0.10 0.10 0.10 0.10 5-Year Total Sq.Ft.Demanded by New Res.Development 167 176 176 176 176 869 Sq.Ft.Demanded by New Nonres.Development 1,065 1,153 1,055 1,055 1,055 5,383 Cost per Sq.Ft. $268 $268 $268 $268 $268 5-Year Total Public Works Facility Cost For New Res.Development $44,637 $46,968 $46,968 $46,968 $46,968 $232,510 Public Works Facility Cost For New Nonres.Development $284,881 $308,340 $282,306 $282,306 $282,306 $1,440,139 TOTAL COSTS FOR NEW DEVELOPMENT $329,518 $355,308 $329,274 $329,274 $329,274 $1,672,648 PUBLIC WORKS FACILITY CONSTRUCTION COST 2008 2009 2010 2011 2012 5-Year Total Public Works Construction Cost $4,564,091 $4,564,091 Less Income from Development Fees $329,518 $355,308 $329,274 $329,274 $329,274 $1,672,648 NET DEFICIT $2,891,443 Public Works Facility Cost Per VMT $26.04 LAND FOR PUBLIC WORKS FACILITY-COST-RECOVERY The cost recovery methodology is used to derive the land for public works facility portion of the transportation development fee. Figure 52 provides the acquired acreage and original land acquisition cost for the public works portion of the Municipal Operations Center site. The Town acquired the site in 2005, and the figure reflects the cost to acquire the public works portion of the site at that time. The police portion of the site corresponds with the share of the debt issuance assigned to public works. This site area for the public works facility will address demand generated by new development. The site is expected to serve the Town through 2025,which corresponds with the end of the Town's debt service for the land aquisition. The cost for the original site acquisition is allocated to new VMT through 2025. To derive the cost per VMT, the original site acquisition cost (public works share) is divided by the net increase in VMT through 2025 ($2,357,500/175,297 VMT = $13.45 per VMT) _ „ . _ lischierBise 53 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan .._ _- -.. _ ...-. -.-. -s._ _- _ _ t+.^n2, _ -.Y _.. '.v..-�__-_.e+,f_ -- :I?eib'C II3,'.' Breva{^^F•-�_1t"a -_ _ Figure 52: Land for Public Works Facility Level of Service and Cost Standards Acquisition Cost PW Sluzre of Site Area Year Acquired Acres PW Share Per Acre* Acquisition Cost Future Municipal Operations Center 2005 6.6 50% $357,197 $2,357,500 TOTAL 6.6 $2,357,500 Net Increase in Arterial VMT through 2025 175,297 Acres per VMT 0.00004 Marginal Cost per.VMT _$13.45 *Source:Town of Oro Valley,AZ.Public Works share corresponds with current allocation of debt service associated with land acquisition bonds. Figure 53 shows the Infrastructure Improvements Plan (IIP) for land for the public works facility. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figure listed above. Over the next five years, there is a projected increase of 8,930 residential vehicle miles of travel and 55,313 nonresidential vehicle miles of travel. This brings the increase in vehicle miles of travel over the next five years to 64,243. Based on the cost recovery LOS standard of .00004 acres per VMT, this amount of residential development will require approximately .34 acres and non-residential development will require 2.08 acres The projected cost of this demanded infrastructure totals $863,977 over the next five years. This equates to $13.45 per VMT ($863,977/64,243 = $13.45). TischlerBise Fiscal,Economic&Planning consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 53: Land for Public Works Facility Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 VMT Projections-Residential 106,721 108,435 110,239 112,043 113,847 115,651 VMT Projections-Nonresidential 310,772 321,713 333,556 344,399 355,242 366,084 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change in VMT from New Res.Development 1,714 1,804 1,804 1,804 1,804 8,930 Net Change in VMT from New Nonres.Development 10,942 11,843 10,843 10,843 10,843 55,313 LAND FOR PUBLIC WORKS FACILITY 2008 2009 2010 2011 2012 Cost Recovery LOS-Acres per Average Daily VMT 0.00004 0.00004 0.00004 0.00004 0.00004 5-Year Total Acres Demanded by New Res.Development 0.06 0.07 0.07 0.07 0.07 0.34 Acres Demanded by New Nonres.Development 0.41 0.45 0.41 0.41 0.41 2.08 Cost per Acre $357,197 $357,197 $357,197 $357,197 $357,197 5-Year Total Land for Public Works Facility Cost For New Res.Development $23,056 $24,261 $24,261 $24,261 $24,261 $120,099 Land for Public Works Facility Cost For New Nonres.Development $147,150 $159,267 $145,820 $145,820 $145,820 $743,878 TOTAL COSTS FOR NEW DEVELOPMENT $170,207 $183,528 $170,081 $170,081 $170,081 $863,977 Land for Public Works Facility Cost Per VMT $13.45 TRANSPORTATION VEHICLES AND EQUIPMENT-INCREMENTAL EXPANSION The incremental expansion methodology is used to derive the vehicles and equipment component of the transportation development fee. Figure 54 provides an inventory of the Town's public works vehicles and equipment. Current replacement cost for transportation vehicles and equipment was provided by the Town. Vehicle and equipment value is estimated at $1,867,222 for a per VMT cost of $5.64 (1,867,222 /330,936 arterial VMT = $5.64). TischlerBise 55 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 54: Transportation Vehicles and Equipment and Level of Service and Cost Standards Type of Units in Unit Total Replacement Vehicle/Equipment Service Replacement Cost* Cost Compact Pickup Truck 3 $14,973 $44,919 1/2 Ton Pickup Truck 14 $26,000 $364,000 3/4 Ton Pickup Truck 2 $28,050 $56,100 1 Ton Pickup Truck 5 $31,050 $155,250 Lift Truck 1 $77,000 $77,000 Mid-size SUV 4 $28,123 $112,492 Full-size Sedan 1 $23,285 $23,285 Off Road Sweeper 1 $70,933 $70,933 Street Sweeper 1 $205,336 $205,336 Crack Sealer with Vacuum 1 $50,485 $50,485 Loader 1 $11,342 $11,342 Dump Truck 2 $83,847 $167,694 Motor Grader 1 $211,631 $211,631 Broom 1 $34,178 $34,178 Water Tank 1 $50,974 $50,974 Backhoe 1 $89,000 $89,000 Heavy Duty Lift 1 $9,758 $9,758 Wheel Loader 1 $117,759 $117,759 Water Trailer 1 $6,747 $6,747 Equipment Trailer 1 $8,339 $8,339 TOTAL/AVERAGE 44 $42,437 $1,867,222 VMT in 2007 330,936 Vehicles Per VMT 0.0001 Cost Per VMT $5.64 *Source: Town of Oro Valley,AZ Figure 55 shows the Infrastructure Improvements Plan (IIP) for transportation vehicles/equipment. The IIP is calculated using the development projections from Appendix 1 at the back of the report and the LOS and cost figure listed above. Over the next five years, there is a projected increase of 8,930 residential average daily vehicle trips and 55,313 nonresidential average daily vehicle trips. This brings the total number of new VMT over the period to 63,703. Based on the existing LOS standard of .0001 vehicles/equipment per VMT, this amount of residential development will require approximately 1.19 vehicles/equipment and non-residential development will require 7.35 vehicles/equipment. The projected cost of this demanded infrastructure totals $363,474 over the next five years. This equates to $5.64 per VMT ($363,474/63,703 VMT = $5.64). TischlerBise 5 6 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure 55: Transportation Vehicles/Equipment Infrastructure Improvements Plan NEW DEVELOPMENT PROJECTIONS 2008 2009 2010 2011 2012 2013 VMT Projections-Residential 106,721 108,435 110,239 112,043 113,847 115,651 VMT Projections-Nonresidential 310,772 321,713 333,556 344,399 355,242 366,084 '08-'09 '09-'10 '10-'11 '11-'12 '12'-13 5-Year Total Net Change in VMT from New Res.Development 1,714 1,804 1,804 1,804 1,804 8,930 Net Change in VMT from New Nonres.Development 10,942 11,843 10,843 10,843 10,843 55,313 TRANSPORTATION VEHICLES AND EQUIPMENT 2008 2009 2010 2011 2012 Incremental LOS-Vehicles/Equipment per VMT 0.0001 0.0001 0.0001 0.0001 0.0001 5-Year Total Vehicles/Equipment Demanded by New Res.Development 0.23 0.24 0.24 0.24 0:24 1.19 Vehicles/Equipment Demanded by New Nonres.Developm 1.45 1.57 1.44 1.44 1.44 7.35 Cost per Vehicle/Equipment $42,437 $42,437 $42,437 $42,437 $42,437 5-Year Total Vehicles/Equipment Cost For New Res.Development $9,673 $10,178 $10,178 $10,178 $10,178 $50,386 Vehicles/Equipment Cost For New Nonres.Development $61,736 $66,819 $61,178 $61,178 $61,178 $312,088 TOTAL COSTS FOR NEW DEVELOPMENT $71,409 $76,998 $71,356 $71,356 $71,356 $362,474 Transportation Vehicles/Equipment Cost Per VMT $5.64 TRANSPORTATION DEVELOPMENT FEE STUDY The Town plans to update its development fees every three years to ensure the methodologies, assumptions, and cost factors used in the calculations are still valid and accurate. TischlerBise has included the cost of preparing this portion of the study in the transportation development fee calculations in order to create a source of funding to conduct this regular update. The cost of this component ($19,600) is allocated to the projected increase in residential and non-residential vehicle trips over the next three years. This results in a development fee study cost per demand unit of $.63 per VMT ($19,600/31,214 VMT). TRANSPORTATION INPUT VARIABLES Figure 56 shows the factors used to derive the transportation development fees for the Town of Oro Valley. The total capital cost per average trip length by type of development is derived from level-of-service components shown near the bottom of Figure 56. The capital cost of the arterial average length trip is the product of the average trip length on planned arterials multiplied by the trip length adjustment factor and the capital cost per arterial vehicle mile of travel. Next, this calculation is repeated for collectors and then for the planned public works facility, land for public works facility, vehicles and equipment and the transportation component of the development fee study. For example, the capital cost of the arterial average length trip from residential development is calculated as follows: the average trip length in Oro Valley on planned arterial improvements of 1.92 miles is multiplied by the residential trip length adjustment of 122% and then by the arterial capital cost per VMT of $81, generating a cost per average residential trip length of$190. This calculation is repeated with collectors. The capital cost of the collector average length trip from residential TuschlerBise 57 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan development is calculated as follows: the average trip length in Oro Valley on planned collector improvements of.27 miles is multiplied by the residential trip length adjustment of 122% and then by the collector capital cost per VMT of$62, generating a cost per average residential trip length of$20. Next, the average trip length in Oro Valley on planned arterial improvements of 1.92 is multiplied by the residential trip length adjustment of 122% and then by the sum of the capital cost for the planned public works facility, land for the public works facility, transportation vehicles and equipment and the transportation component of the development fee study ($26.04 + $13.45 + $5.64 + $.63 Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan r- t ,..s-:.-?a�s:W:;x�„s:rars.r#':�c..,>,�a.it ,..•#�µ'-:±sbes'- .-f'�t�t-p:'s--_...:_.-- :_.F�.sz __ .... :� .;.,r.-"'.,-. .-a._. Figure 56: Transportation Input Variables Commercial/ INPUT VARIABLES Shopping Residential Centers Other Nonres Residential Weekday Vehicle Trips per Housing Unit Single Family Detached 9.57 All Other Housing 6.59 Nonresidential Weekday Vehicle Trips per 1,000 Square Feet Corn/Shop Ctr 25,000 SF or less 110.32 Corn/Shop Ctr 25,001-50,000 SF 86.56 Corn/Shop Ctr 50,001-100,000 SF 67.91 Com/Shop Ctr 100,001-200,000 SF 53.28 Corn/Shop Ctr 200,001-400,000 SF 41.80 Office/Inst 25,000 SF or less 18.35 Office/Inst 25,001-50,000 SF 15.65 Office/Inst 50,001-100,000 SF 13.34 Office/Inst 100,001-200,000 SF 11.37 Business Park 12.76 Light Industrial 6.97 Warehousing 4.96 Manufacturing 3.82 Lodging 5.63 Trip Adjustment Factors 63% 50% Corn/Shop Ctr 25,000 SF or less 28% Corn/Shop Ctr 25,001-50,000 SF 31% Corn/Shop Ctr 50,001-100,000 SF 33% Corn/Shop Ctr 100,001-200,000 SF 36% Corn/Shop Ctr 200,001-400,000 SF 39% Level of Service Cost Summary Arterial Road Construction Arterial Average Trip Length(miles) 1.92 1.92 1.92 Average Trip Length Adjustment 122% 68% 75% Capital Cost Per Arterial VMT $81 $81 $81 Arterial Construction Cost for an Average Trip Length $190 $106 $117 Collector Road Construction Collector Average Trip Length(miles) 0.27 0.27 0.27 Average Trip Length Adjustment 122% 68% 75% Capital Cost Per Collector VMT $62 $62 $62, Collector Construction Cost for an Average Trip Length $20 $11 $13 Public Works Facilities and Vehicles Average Trip Length(miles) 1.92 1.92 1.92 Average Trip Length Adjustment 122% 68% 75% Public Works Facility Cost Per VMT $26.04 $26.04 $26.04 Public Works Facility Land Cost Per VMT $13.45 $13.45 $13.45 Transportation Vehicles Cost per VMT $5.64 $5.64 $5.64 Development Fee Study Cost per VMT $0.63 $0.63 $0.63 Subtotal $45.76 $45.76 $45.76 PW Facilities and Vehicles Cost for an Average Trip Length $107 $60 $66 Total Capital Cost for an Average Trip Length $317 $177 $195 MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS FOR TRANSPORTATION Figure 57 shows the schedule of maximum supportable development fee amounts for. transportation in the Town of Oro Valley. The amounts are calculated by multiplying the , -z ... TischlerBise Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan vehicle trip ends for each type of development by the trip adjustment factor by the total capital cost per average trip length. For example, for a single family unit, the vehicle trip rate of 9.57 is multiplied by the adjustment factor of 63% and then multiplied by the total capital cost of$317 for a development fee amount of$1,908 per single family unit. The calculation is repeated for the all other housing unit category. Transportation development fees for nonresidential development are shown on a per 1,000 square feet of floor area basis and by room for lodging. Trip adjustment factors are discussed further in the Appendix. Figure 57: Maximum Supportable Transportation Development Fee Schedule MAXIMUM SUPPORTABLE DEVELOPMENT FEE AMOUNTS Residential Per Housing Unit Single Family Detached $1,908 All Other Housing $1,314 Nonresidential-Commercial/Shopping Centers Per 1,000 Sq.Ft. Com/Shop Ctr 25,000 SF or less $5,462 Com/Shop Ctr 25,001-50,000 SF $4,745 Com/Shop Ctr 50,001-100,000 SF $3,963 Com/Shop Ctr 100,001-200,000 SF $3,392 Com/Shop Ctr 200,001-400,000 SF $2,883 Other Nonresidential Per 1,000 Sq.Ft. Office/Inst 25,000 SF or less $1,789 Office/Inst 25,001-50,000 SF $1,526 Office/Inst 50,001-100,000 SF $1,301 Office/Inst 100,001-200,000 SF $1,109 Business Park $1,244 Light Industrial $680 Warehousing $484 Manufacturing $373 Per Room Lodging $549 TischlerBise 60 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Appendix 1: Demographic Estimates and Development Projections As specified in Task 1 of our Work Scope, TischlerBise has prepared documentation on current demographic estimates and development projections that will be used in the Oro Valley Development Fee Study. The following sections will review in detail the residential and non-residential demand factors that will be used to calculate development fees for the Town of Oro Valley. Residential Estimates and Projections PERSONS PER HOUSING UNIT A differentiation by type of housing is necessary to make residential development fees proportionate and reasonably related to the demand for public facilities. Persons per housing unit is an important demographic factor that helps account for variations in service demand by type of housing. The best source of this data is the 2000 U.S. Census, Summary File 3. The data for Oro Valley is shown in Figure Al below. Persons per housing unit (PPHU) is distinguished from persons per household (PPH) as PPHU accounts for housing vacancy. Two housing unit categories are recommended based on the demographic characteristics of Oro Valley: single-family and all other housing types. Single-family units, which include unattached and attached single family units, have on average 2.26 persons per housing unit and all other housing types have an average PPHU of 1.34. TISCh lerBise 61 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Figure Al: Persons Per Housing Unit in Oro Valley Units in Renter&Owner Combined Structure Persons Hsehlds Hsg Units PPHU 1-Detached 25,025 9,814 10,660 2.35 1-Attached 1,459 823 1,080 1.35 Two 116 63 63 1.84 3-4 269 140 209 1.29 5-9 513 306 428 1.20 10-19 735 460 666 1.10 20-49 146 65 110 1.33 50 or more 826 441 470 1.76 Mobile Homes 416 216 309 1.35 Other 19 9 9 2.11 Total SF3 Sample Data 29,524 12,337 14,004 2.11 100-Percent Data 29,541 12,249 13,946 2.12 Vacant HU 1,667 Occupancy Rate 88% Persons Per Housing Unit by Type-2000 Persons Hsehlds Hsg Units PPHU Hhld Mix Hsg Mix Single Family 26,484 10,637 11,740 2.26 86% 84% All Other Housing Types 3,040 1,700 _ 2,264 1.34 14% 16% Total Less Group Quarters 29,524 12,337 14,004 2.39 100% 100% Group Quarters'',740,41 Sample Difference (88) (58) TOTAL 29,683 12,249 13,946 Notes to Tables Source: 2000 U.S.Census,Summary File 3:Tables P1,P3,P9,H1,H3,H8,H30,H32,H33 2007 HOUSING UNIT ESTIMATE To estimate housing units in 2007, TischlerBise reviewed the Town's building permit data for residential construction over the past 8 years. During the 2000-2007 period, the Town added 4,133 housing units, for an average of 517 housing units per year. The pace has slowed over the last three years, with an average of 348 units annually over the 2005-2007 period. This is shown in Figure A2. TuschlerBise 62 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan - 4 Figure A2: Oro Valley Residential Building Permits, 2000-2007 Average Average 2000 2001 2002 2003 2004 2005 2006 2007 Total 2001-2007 2005-2007 Single Family 994 738 426 461 470 356 354 334 4,133 517 348 All Other Housing Types 0 0 0 0 0 0 0 0 0 0 0 Total 994 738 426 461 470 356 354 334 4,133 517 348 Source:Years 2000-2001 from the U.S.Census,other years from the Town of Oro Valley.2007 data is through November. Adding these new housing units to the existing stock of 14,004 occupied and vacant housing units in 2000 (shown in Figure Al), the total number of housing units in the Town is estimated at 18,137 in 2007 (15,873 single family and 2,264 all other housing types). Figure A3: 2007 Housing Unit Estimate 2000 New Units Total 2007 Census 2001-2007 Housing Units Single Family Detached and Attached 11,740 4,133 15,873 All Other Housing Types 2,264 0 2,264 Total 14,004 4,133 18,137 The Town expects that future single family housing construction will take place at a pace somewhat slower than the 2005-2007 period (348 units/year). The Town expects to experience 250 new single family units per year for 2008 and 2009. Beyond that point, the Town expects that construction will rise to 300 units per year. The Town has not experienced any multi-family development in the 2000-2007 period, though it expects a small amount of new multi-family units to be constructed in the next few years. At present, two multi-family projects are approved, though the developers have not submitted building plans. The Town estimates that these projects will generate 50 multi- family units in 2008 and 50 units in 2009. No multi-family projections are made for future years. Based on an analysis of existing developable land, expected rezoning and anticipated annexations, the Town expects to reach buildout in 2020. Figure A4 presents projected housing unit growth through 2020 by housing type. Figure A4: Oro Valley Housing Unit Projections Through 2020 Base Year Five-Year Increments HOUSING UNITS* Annual Growth 2007 2008 2009 2010 2015 2020 Single Family See note below 15,873 16,123 16,373 16,673 18,173 19,673 All Other Housing Types 2,264 2,314 2,364 2,364 2,364 2,364 TOTAL 18,137 18,437 18,737 19,037 20,537 22,037 *The Town expects 250 new single family units per year in 2008 and 2009.Beyond that,the Town expects construction to increase to a pace of 300 single family units/year.Based on plans approved by the Town hut not yet permitted,the Town expects approximately 50 multi family units in 2008 and an additional 50 units in 2009.No additional multi family units are projected. TuschlerBise 63 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan POPULATION ESTIMATES AND PROJECTIONS State of Aric.zona 2007 Population Estimate The Arizona Department of Economic Security estimates a population for the Town of Oro Valley of 42,551 persons as of July 1, 2007. The breakdown of population by housing type is estimated based on the existing mix of housing types. Household Population Projections To project future household population (Figure A5), TischlerBise multiplied the annual increase in housing units from Figure A4 by the 2000 Census persons per housing unit by housing type (shown in Figure Al). For example, in 2008, 250 new single family housing units are multiplied by the persons per housing unit factor of 2.26. This generates an estimated 564 new persons in Oro Valley. This is repeated for all other housing types (1.34 persons per housing unit) generating 67 additional Oro Valley residents. This brings the total anticipated population growth in 2008 to 631 persons. Added to the 2007 State population estimate of 42,551 persons, there will be an anticipated 43,182 persons in Oro Valley in 2008. Figure A5: Population Estimates and Projections Base Year Five-Year Increments HOUSEHOLD POPULATION Persons per Housing Unit 2007 2008 2009 2010 2015 2020 Single Family 2.26 39,221 39,785 40,349 41,026 44,410 47,794 All Other Housing Types 1.34 3,330 3,397 3,464 3,464 3,464 3,464 TOTAL 42,551 43,182 43,813 44,490 47,874 51,258 �: r TischlerBise 64 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan Nonresidential Estimates and Projections In addition to data on residential development, the calculation of development fees requires data on nonresidential construction in Oro Valley. The following sections show estimates and projections of employment, nonresidential square footage and vehicle trips. JOB &NONRESIDENTIAL SQUARE FOOTAGE ESTIMATES , �~ TischlerBise obtained employment data for jobs located in the Town in 2007 from ESRI Business Information Solutions. These estimates indicate that close to 5,800 persons were employed in the Town in 2007. To this is added an additional 326 public sector/government jobs based on input from the Town of Oro Valley,bringing the total estimated jobs to 6,091. Using the Town's Business Navigator GIS database, Town staff estimated the square footage of Town businesses by the following categories: commercial/retail, office, public sector and goods production. As shown in Figure A6, the Town estimates there is 3.8 million square feet of nonresidential development in Oro Valley in 2007. Figure A6:Job and Nonresidential Square Footage Estimates 2007 Pct at Nonres 2007 Nonres Floor Jobs* Locations Area (rounded)** CommerciaVRetail Retail Trade 789 Arts,Entertainment and Recreation 316 Accomodation and Food Service 1,192 Subtotal 2,297 38% 2,113,782 Office Finance,Insurance and Real Estate 1,070 Other Services*** 1,342 Subtotal 2,412 40% 682,903 Public Sector Public Sector 1,065 Subtotal 1,065 17% 1,062,082 Goods Production Agriculture&Mining 26 Utilities 20 Construction 138 Manufacturing 83 Wholesale Trade 50 Subtotal 317 5% 13,441 TOTAL at Nonresidential Locations 6,091 100% 3,872,208 *ESRI Business Information Solutions, 2007. 2007 Public sector employment increased to 1,065 from 741 (as reported by ESRI) based on input from the Town of Oro Valley. **Town of Oro Valley,AZ ***Other services includes the following industries:administrative and support and waste management and remediation,health care and social assistance and other service(except public administration). TischlerBise 65 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan NONRESIDENTIAL SQUARE FOOTAGE PROJECTIONS The nonresidential square footage projection for 2008 reflects developments approved by the Town, .including retail/shopping, office and high tech/bio tech projects. These are shown in Figure A7. Nonresidential development in 2008 is expected to total 1.9 million sq. ft. This represents a considerable increase over 2007, with nonresidential development growing over 50% in one year from 3.8 million sq. ft. in 2007 to a total of 5.8 million sq. ft. by the end of 2008. Figure A7: 2008 Planned Nonresidential Development— Oro Valley,AZ RetaiVShopping Square Feet Oro Valley Marketplace 880,000 Steam Pump Village 300,000 Mercado del Rio 100,000 Beztak 32,000 Big Horn Commerce 30,000 Garden Gate Nursery 50,000 Mercado at Canada Hills 60,000 Oracle&Hardy 25,000 Palisades 40,000 Plaza at Vistoso 16,000 Unnamed 10,000 Subtotal-Retail/Shopping 1,543,000 Office and High Tech/Bio Tech Square Feet Copeland Office Building 8,400 Easy Care 10,000 Miscellaneous 10,000 Pulte Home Headquarters 60,000 Sanofi-Aventis 110,500 Suffolk Hills 6,000 Ventana Medical Systems 134,000 Venture West Medical 100,000 Subtotal-Office and High Tech/Bio Tech 438,900 TOTAL NONRESIDENTIAL SQ. FT.-2008 1,981,900 *Source: Town of Oro Valley,AZ lischlerBise 66 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan To project future nonresidential development beyond 2008, Town staff examined nonresidential construction over the 2004-2007 time frame. As shown in Figure A8, an average of 231,956 nonresidential sq. ft. was constructed annually over the four year period. The Town anticipates that nonresidential development will return to this level in the years following 2008. However, actual nonresidential construction is often built in irregular intervals compared to residential development, with minor construction followed by large- scale projects. Based on feedback from the 'town, future development is allocated by type (commercial/retail or office) based on the breakdown of planned development in 2008 (78% commercial/retail and 22% office). For the purposes of the projections, high tech/bio tech is considered to be office space. Increases in public sector sq. ft. reflects the town's planned construction of the 55,000 sq. ft. Municipal Operations Center (2010) and 10,000 sq. ft. addition to Town Hall (2009) and well as the addition of a middle school. No projected increases are shown for the goods production category. The nonresidential square footage projections are shown in Figure Al0 with job projections (discussed below). Figure A8: Nonresidential Development Trends —2004-2007, Oro Valley,AZ Average 2004 2005 2006 2007 2004-2007 New Nonresidential Sq.Ft. 401,977 57,050 261,102 207,695 231,956 Source: Town of Oro Valley,AZ EMPLOYMENT PROJECTIONS To convert future gross floor area of nonresidential development projections into employment projections, average square feet per employee multipliers are used. These multipliers are also used to calculate the number of average weekday vehicle trips from nonresidential development in Oro Valley. The far right column of Figure A9 show square footage per employee by land use type and size. These multipliers are derived from national data published by the Institute of Transportation Engineers (ITE) and the Urban Land Institute (ULI). The multipliers used in the Oro Valley study reflect existing development in the Town, anticipating that future development will be of a similar scale, and are highlighted in grey. k. .- ------;---?. `a.,?-- T^.Exe -={=..r--------- , --- ---:.-r ,--, —4---::k..a NeB"a.-— —k '�'r4-:axY-"s - TuschlerBise 67 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure A9: Floor Area Per Employee and Nonresidential Trip Rates ITE Land Use/Size Demand Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft Code Unit Per Dmd Unit* Per Employee* Dmd Unit** Per Emp Commercial/Shopping Center 820 10K gross leasable area 1,000 Sq Ft 152.03 na 3.33 300 821 25K gross leasable area 1,000 Sq Ft 110.32 na 3.33 300 820 50K gross leasable area 1,000 Sq Ft 86.56 na 2.86 350 820 100K gross leasable area 1,000 Sq Ft ;; 67.91 na 2.50 400 820 200K gross leasable area 1,000 Sq Ft 53.28 na 2.22 4S0 820 _400K gross leasable area 1,000 Sq Ft 41.80 na 2.00 500 General Office 710 10K gross floor area 1,000 Sq Ft 22.66 5.06 4.48 223 710 25K gross floor area 1,000 SQ_Ft 18.35 4.43 4.15 241 710 50K gross floor area 1,000 Sq Ft 15.65 4.00 3.91 256 710 100K gross floor area 1,000 Sq Ft 13.34 3.61 3.69 271 710 _200K gross floor area _1,000 Sq Ft_ 11.37 _ 3.26 3.49 _ 287 Industrial 770 Business Park*** 1,000 Sq Ft 12.76 4.04 3.16 317 151 Mini-Warehouse 1,000 Sq Ft 2.50 56.28 0.04 22,512 150 Warehousing _1,000 Sq Ft 4.96 3.89 1.28 784 140 Manufacturing 1,000 Sq Ft 3.82 2.13 1.79 558 110 Light Industrial _1,000 Sq Ft 6.97 3.02 2.31 433 Other Nonresidential 720 Medical-Dental Office 1,000 Sq Ft 36.13 8.91 4.05 247 620 Nursing Home bed 2.376.55 0.36 na _ 610 Hospital 1,000 Sq Ft 17.57 _ 5.20 3.38 296 565 Day Care student 4.48 28.13 0.16 na 530 High School student 1.71 _ 19.74 0.09 na 520 Elementary School student 1.29 15.71 0.08 na 520 Elementary School 1,000 Sq Ft 14.49 15.71 0.92 1,084 320 Lodging _ room 5.63 12.81 0.44 na * Trip Generation,Institute of Transportation Engineers,2003. ** Employees per demand unit calculated from trip rates,except for Shopping Center data,which are derived from Development Handbook and Dollars and Cents of Shopping Centers,published by the Urban Land Institute. *** According to ITE,a Business Park is a group of flex-type buildings served by a common roadway system. The tenant space includes a variety of uses with an average mix of 20-30%office/commercial and 70-80%industrial/warehousing. TuschlerBise Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan Figure A 10 lists the projected nonresidential square footage and the number and type of jobs in Oro Valley through 2020, based on the methodologies described above. Figure A10: Nonresidential Square Footage and Job Projections Base Year Five-Year Increments Year=> 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 jobs Population* 42,551 43,182 43,813 44,490 45,167 45,844 46,520 47,197 47,874 51,258 Jobs** 6,091 11,766 12,473 13,364 14,028 14,693 15,358 16,022 16,787 20,109 Nonresidential Floor Area(1,000 SF)*** Commercial/Retail 2,114 3,657 3,837 4,018 4,199 4,379 4,560 4,741 4,921 5,825 Office 683 1,121 1,172 1,223 1,275 1,326 1,377 1,429 1,480 1,736 Public Sector 1,062 1,062 1,072 1,127 1,127 1,127 1,127 1,127 1,235 1,235 Goods Production 13 13 13 13 13 13 13 13 13 13 TOTAL Floor Area 3,872 5,853 6,095 6,382 6,614 6,846 7,078 7,310 7,650 8,810 Employment** SF/Employee Commercial/Retail 400 2,297 6,155 6,606 7,058 7,510 7,961 8,413 8,865 9,316 11,575 Office 241 2,412 4,230 4,443 4,655 4,868 5,081 5,294 5,507 5,720 6,784 Public Sector 241 1,065 1,065 1,108 1,334 1,334 1,334 1,334 1,334 1,434 1,434 Goods Production 433 317 317 317 317 317 317 317 317 317 317 TOTAL Jobs in Town 6,091 11,766 12,473 13,364 14,028 14,693 15,358 16,022 16,787 20,109 *2007 population estimate from the Arizona Department of Economic Security. **2007 einployment estimate from ESRI Business Information Solutions,with 326 public sector jobs added to estimate per the Town of Oro Valley.Projections for future years calculated by applying ITE eniployeni.ent by square feet factors to nonresidential square footage projections. ***2007 nonresidential floor area estimate from the Town of Oro Valley.2008 nonresidential floor area projection includes planned retail/shopping and office development in Oro Valley.Nonresidential floor area for years beyond 2008 reflect trends of nonresidential growth in Oro Valley from 2004-2007,with additions for planned Town projects for addition to Town Hall(2009)Municipal Operations Center(2010 and future middle school(2015).School nonresidential floor area projections made using ITE trip rate for school. AVERAGE DAILY VEHICLE TRIP ESTIMATES Figure A11 below provide a summary of the residential and nonresidential vehicle trip calculations used in this analysis. Average Weekday Vehicle Trip Ends are from the reference book, Trip Generation, published by the Institute of Transportation Engineers (ITE), in 2003. A "trip end" represents a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway). Trip rates have been adjusted to avoid overestimating the number of actual trips because one vehicle trip is counted in the trip rates of both the origination and destination points. A simple factor of 50% has been applied to the office, public sector and goods production categories. The residential category has a factor greater than 50% due to journey-to-work trips outside the Town of Oro Valley. This is described in more detail in the transportation portion of the report. The commercial/retail category has a trip factor of less than 50% because this type of development attracts vehicles as they pass-by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. The ITE Manual indicates that on average 33% of the vehicles entering shopping centers under 100,000 square feet are passing by on the way to some other primary destination and 66% of the attraction trips have the shopping center as their primary destination. Therefore, the adjusted trip factor is 33% (0.66 x 0.50). The pass- by adjustment factor varies by the size of the commercial development. TischlerBise 69 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan There is an estimated average of 168,434 vehicle trips generated by existing development in Oro Valley on an average weekday. As the table below indicates, residential development is estimated to generate 105,007 vehicle trips and nonresidential development generates 63,428 vehicle trips on an average weekday. Figure All: Average Daily Trips Residential Vehicle Trips on an Average Weekday(2007) Residential Units W Assumptions Single Family 15,873 All Other Housing Types 2,264 Average Weekday Vehicle Trip Ends per Unit* Trip Rate Trip Factor Single Family 9.57 63% All Other Housing Types 6.72 63% Residential Vehicle Trip Ends of an Average Weekday Single Family 95,447 All Other Housing Types 9,560 Total Residential Trips 105,007 Nonresidential Vehicle Trips on an Average Weekday Nonresidential Gross Floor Area(1,000 sq.ft.)** Assumptions Retail/Commercial 2,114 Office 683 Public Sector 1,062 Goods Production 13 Average Weekday Vehicle Trips Ends per 1,000 Sq.Ft.* Trip Rate Trip Factor Retail/Commercial 67.91 33% Office 18.35 50% Public Sector 18.35 50% Goods Production 6.97 50% Nonresidential Vehicle Trips on an Average Weekday Retail/Commercial 47,370 Office 6,266 Public Sector 9,745 Goods Production 47 Total Nonresidential Trips 63,428 TOTAL TRIPS 168,434 *Trip rates are from the Institute of Transportation Engineers(ITE)Trip Generation Manual(2003) *'Floor area estimates were derived using sq.ft.per employee factors from ULI and ITE TischlerE3ise Fiscal,Economic&Planning Consultants , Town of Oro Valley,Arizona-Development Fee Study and Infrastructure Improvements Plan SUMMARY OF DEVELOPMENT PROJECTIONS 2007-2020 Annual demographic and development projections for the development fee study are summarized in Figure Al2 below. The Town of Oro Valley is projected to add approximately 300 housing units and 670 persons per year over the next thirteen years. 0 TischlerBise projects an average annual increase in employment of 1,078 jobs and approximately 380,000 square feet of nonresidential floor area. Figure Al2: Development Projections 2007-2020 Base Year Five-Year Increments 2007-2020 2007 2008 2009 2010 2015 2020 Total Increase Annual Increase Housing Units 18,137 18,437 18,737 19,037 20,537 22,037 3,900 300 Household Population 42,551 43,182 43,813 44,490 47,874 51,258 8,707 670 Jobs 6,091 11,766 12,473 13,364 16,787 20,109 14,018 1,078 Nonresidential Sq.Ft.(1,000's) 3,872 5,853 6,095 6,382 7,650 8,810 4,938 380 Ave Wkdy Res.Vehicle Trips 105,007 106,721 108,435 110,239 119,259 128,279 23,272 1,790 Ave Wkdy Nonres Vehicle Trips 63,428 102,025 106,639 111,658 135,250 157,847 94,420 7,263 Housing Units Single Family 15,873 16,123 16,373 16,673 18,173 19,673 3,800 292 All Other Housing Types 2,264 2,314 2,364 2,364 2,364 2,364 100 8 Jobs Retail/Commercial 2,297 6,155 6,606 7,058 9,316 11,575 9,278 714 Office 2,412 4,230 4,443 4,655 5,720 6,784 4,372 336 Public Sector 1,065 1,065 1,108 1,334 1,434 1,434 369 28 Goods Production 317 317 317 317 317 317 0 0 Nonresidential SF(1,000's) Retail/Commercial 2,114 3,657 3,837 4,018 4,921 5,825 3,711 285 Office 683 1,121 1,172 1,223 1,480 1,736 1,053 81 Public Sector 1,062 1,062 1,072 1,127 1,235 1,235 173 13 Goods Production 13 13 13 13 13 13 0 0 Ave Wkdy Vehicle Trips Single Family 95,447 96,950 98,454 100,258 109,277 118,297 22,850 1,758 All Other Housing 9,560 9,771 9,982 9,982 9,982 9,982 422 32 Retail/Commercial 47,370 81,950 85,998 90,047 110,292 130,536 83,166 6,397 Office 6,266 10,284 10,755 11,225 13,578 15,931 9,665 743 Public Sector 9,745 9,745 9,839 10,339 11,333 11,333 1,589 122 Goods Production 47 47 47 47 47 47 0 0 TOTAL 168,434 208,746 215,074 221,898 254,509 286,126 117,692 9,053 TischlerBise 71 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan -'.:aa. ..rr..<«.s... ,"_"ywa _.-r'_.+-xm, _._.tr_^ 3r^._s7.=g.: Yi ^snz_s+^+�F,s^.xYdz-'.+s?s '-:T'-'°9';+' - s.ax3---�a--• "'-.'9'.,. .._��-r-";n9'- <_. _ - - , Appendix 2: Arizona Development Fee Legislation Development fees for municipalities in Arizona are authorized by Arizona Revised Statutes (A.R.S.) 9-463.05. The legislation is provided below. A. A municipality may assess development fees to offset costs to the municipality associated with providing necessary public services to a__ development, including the costs of infrastructure, improvements, real property, engineering and architectural services, financin , g other capital costs and associated appurtenances, equipment, vehicles, furnishings and other personalty. B. Development fees assessed by a municipality under this section are subject to the following requirements: 1. Development fees shall result in a beneficial use to the development. 2. Monies received from development fees assessed pursuant to this section shall be placed in a separate fund and accounted for separately and may only be used for the purposes authorized by this section. Monies received from a development fee identified in an infrastructure improvements plan adopted or amended pursuant to subsection D of this section shall be used to provide the same category of necessary public service for which the development fee was assessed. Interest earned on monies in the separate fund shall be credited to the fund. 3. The schedule for payment of fees shall be provided by the municipality. The municipality shall provide a credit toward the payment of a development fee for the required dedication of public sites, improvements and other necessary public services included in the infrastructure improvements plan and for which a development fee is assessed, to the extent the public sites, improvements and necessary public services are provided by the developer. The developer of residential dwelling units shall be required to pay development fees when construction permits for the dwelling units are issued, or at a later time if specified in a development agreement pursuant to section 9-500.05. If a development agreement provides for fees to be paid at a time later than the issuance of construction permits, the deferred fees shall be paid no later than fifteen days after the issuance of a certificate of occupancy. The development agreement shall provide for the value of any deferred fees to be supported by appropriate security,including a surety bond, letter of credit or cash bond. 4. The amount of any development fees assessed pursuant to this section must bear a reasonable relationship to the burden imposed upon the municipality to provide additional necessary public services to the development. The municipality, in determining the extent of the burden imposed by the development, shall consider, among other things, the contribution made or to be made in the future in cash or by taxes, fees or assessments by the property owner towards the capital costs of the necessary public service covered by the development fee. 5. If development fees are assessed by a municipality, such fees shall be assessed in a nondiscriminatory manner. 6. In determining and assessing a development fee applying to land in a community facilities district established under title 48, chapter 4, article 6, the municipality shall take into account all public infrastructure provided by the district and capital costs paid by the district for TischlerBise 72 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan _...,, __ ._. ..-:-�xatg ..___-3'.-._. -•':�.•-•>,f.. �€.#.':.�'.-#��`_.-,-' '-�;s:=+,#' z_.zaay �.- .- - _ - '- �,' 'o"TaaaTs�o:rz^_'- _ "T':'- --- t=sn:.r.�;a�sm.._' \ necessary public services and shall not assess a portion of the development fee based on the infrastructure or costs. C. A municipality shall give at least sixty days' advance notice of intention to assess a new or modified development fee and shall release to the public a written report that identifies the methodology for calculating the amount of the development fee, explains the relationship between the development fee and the infrastructure improvements plan, includes documentation that supports the assessment of a new or modified development fee and identifies any index or indices to be used for automatic adjustment of the development fee pursuant to subsection F of this section and the timing of those adjustments. The municipality shall conduct a public hearing on the proposed new or modified development fee at any time after the expiration of the sixty day notice of intention to assess a new or modified development fee and at least thirty days prior to the scheduled date of adoption of the new or modified fee by the governing body. A development fee assessed pursuant to this section shall not be effective until seventy-five days after its formal adoption by the governing body of the municipality. Nothing in this subsection shall affect any development fee adopted prior to July 24, 1982. D. Before the assessment of a new or modified development fee, the governing body of the municipality shall adopt or amend an infrastructure improvements plan. The municipality shall conduct a public hearing on the infrastructure improvements plan at least thirty days before the adoption or amendment of the plan. The municipality shall release the plan to the public, make available to the public the documents used to prepare the plan and provide public notice at least sixty days before the public hearing, subject to the following: 1. An infrastructure improvements plan may be adopted concurrently with the report required by subsection C of this section, and the municipality may provide for and schedule the notices and hearings required by this subsection together with the notices and hearings required by subsection C of this section. 2. A municipality may amend an infrastructure improvements plan without a public hearing if the amendment addresses only elements of necessary public services that are included in the existing infrastructure improvements plan. The municipality shall provide public notice of those amendments at least fourteen days in advance of their effective date. E. For each necessary public service that is the subject of a development fee, the infrastructure improvements plan shall: 1. Estimate future necessary public services that will be required as a result of new development and the basis for the estimate. 2. Forecast the costs of infrastructure, improvements, real property, financing, other capital costs and associated appurtenances, equipment, vehicles, furnishings and other personalty that will be associated with meeting those future needs for necessary public services and estimate the time required to finance and provide the necessary public services. F. A municipality may automatically adjust a development fee on an annual basis without a public hearing if the adjustment is based on a nationally recognized index applicable to the cost of the necessary public service that is the subject of the development fee and the adjustment mechanism is identified in the report required by subsection C of this section. The municipality shall provide public notice of those adjustments at least thirty days in advance of their effective date. TischlerBise 73 Fiscal,Economic&Planning Consultants Town of Oro Valley,Arizona—Development Fee Study and Infrastructure Improvements Plan G. Each municipality that assesses development fees shall submit an annual report accounting for the collection and use of the fees. The annual report shall include the following: 1. The amount assessed by the municipality for each type of development fee. 2. The balance of each fund maintained for each type of development fee assessed as of the beginning and end of the fiscal year. 3. The amount of interest or other earnings on the monies in each fund as of the end of the fiscal year. 4. The amount of development fee monies used to repay: (a) Bonds issued by the municipality to pay the cost of a capital improvementpjroect that is the subject of a development fee assessment. (b) Monies advanced by the municipality from funds other than the funds established for development fees in order to pay the cost of a capital improvementpj roect that is the subject of a development fee assessment. 5. The amount of development fee monies spent on each capital improvementpl roject that is the subject of a development fee assessment and the physical location of each capital improvement project. 6. The amount of development fee monies spent for each purpose other than a capital improvement project that is the subject of a development fee assessment. H. Within ninety days following the end of each fiscal year, each tY a municipli shall submit a copy of the annual report to the city clerk. Copies shall be made available to thep ublic on request. The annual report may contain financial information that has not been audited. I. A municipality that fails to file the report required by this section shall not collect development fees until the report is filed. J. Any action to collect a development fee shall be commenced within twoY ears after the obligation to pay the fee accrues. K. For the purposes of this section, "infrastructure improvements plan" means one or more written plans that individually or collectively identify each public service that isp pro osed to be the subject of a development fee and otherwise complies with the requirements of this section, and may be the municipality's capital improvements plan. Sec. 2. Applicability Section 9-463.05, Arizona Revised Statutes, as amended by this act, applies to development fees adopted or amended on or after the effective date of this act and shall not affect development fees duly adopted or amended before the effective date of this act. The effective date is September 19, 2007. TuschlerBise 74 Fiscal,Economic&Planning Consultants