North Carolina Association of County Commissioners January 12, 2016 Senate Bill 581 Report Progress Update Delbert Roddenberry, Operations Programs Manager North Carolina Department of Transportation

Transportation Session Law Senate Bill 581 AN ACT TO DIRECT THE DEPARTMENT OF TRANSPORTATION TO STUDY THE PROCESS FOR ACCEPTING SUBDIVISION STREETS DEDICATED AS PUBLIC ON THE STATE HIGHWAY SYSTEM FOR MAINTENANCE AND TO AMEND THE PERCENTAGE OF PROPERTY OWNERS NEEDED TO APPROVE TRAFFIC CALMING DEVICES IN CERTAIN SUBDIVISIONS. …study the process that must be followed and the requirements that must be met...

Transportation Session Law Senate Bill 581 Four Parts: i.whether the process that must be followed is efficient and timely ii.whether the minimum right-of-way and construction standards established by the Board of Transportation for acceptance on the State highway system are reasonable iii.what the financial impact is on the State and homeowners when subdivision streets are or are not accepted on the State highway system for maintenance, and iv.any other matters the Department of Transportation deems relevant to the study

Transportation Study Approach INTERNAL: Study Group Formed within NCDOT - District Engineers - Right of Way - Roadway Design - Chief Engineer’s Office OUTREACH: Stakeholders and Interest Groups - Home builders - Real estate associations and law firms - County Government - Land records task force

Transportation Study Area I - Process Basics (NCDOT) Plan Review - Review relative to design standards of S/D manual - Formal plan review letter - Plat recordation requires NCDOT certification Construction Compliance Review - Compliance certification, inspections - Basic submittal letter verification of minimum standards Petition Process - SR-1 petition form - Investigative report - Approve or list of deficiencies sent to petitioner

Transportation Study Area I - Process Basics (Local Review) Subdivision submittals also subject to local jurisdictions Local ordinances that protect local interests Process may include performance bonds

Transportation Study Area II - Minimum Right of Way & Construction Based on input from both NCDOT and external stakeholders, minimum standards appropriate to ensure safe operation and accommodation of anticipated traffic volumes and vehicle types Substantial flexibility to apply reasonable adjustments, provided safety and maintenance practices not compromised

Transportation Study Area III – Financial Impacts Financial Impacts When Subdivision Streets Are Added To The System To StateTo Property Owners All financial responsibility is assumed (Can be estimated by life cycle cost by type and level of service) Financial responsibility is eliminated for street maintenance. Potential cost for maintaining encroachments (ex. Plantings/sidewalks) Financial Impacts When Subdivision Streets Are Not Added To The System To StateTo Property Owners State is responding to citizens regarding statusStreet maintenance costs Costs of site inspections. (Can require multiple inspections over several years) Lack of public services such as public school bus and postal service Access to emergency services Vehicle maintenance cost for locations with severe issues Possible decrease of property values Ability to sell real estate (Mortgage Financing)

Transportation General Maintenance Activities Recurring Annual Activities $500-$1,500/mile Roadside mowing Snow and Ice/Storm debris Individual service requests Ex. Stone at mailbox turn out/driveways Litter/dead animals Shoulder/ditch maintenance Periodic Major Maintenance Activities (10-year cycle) $10K-$17K/mile Pavement patching Crack sealing Ditch and pipe maintenance Tree trimming/vegetation management Sign replacement Pavement Resurfacing (20-year cycle) $100K-$150K/mile* Repair structure pavement failures Correct pavement rutting Overlay roadway w/ thin lift asphalt plant mix 9

Transportation Overview of Maintenance Costs 10

Transportation Study Area IV – Other Matters “Orphaned Roads” - roads that were dedicated to the public, designed and constructed to NCDOT standards, but not successfully added to the State highway system which potentially places property owners in a position to contend with maintenance responsibilities for streets intended for public maintenance.

Transportation Road Addition Packages

Transportation Reasons for Delay

Transportation Reason for Delay info

Transportation Study Conclusions (Under Review) The Department’s well established minimum construction requirements and processes are effective in ensuring that streets added to the State system adequately and safely accommodate users with reasonable construction and maintenance costs. The petition process facilitates successful road additions if followed through to completion by the developer or property owners. Unfortunately a substantial portion of road addition requests are unsuccessful predominately due to ineligibility resulting from maintenance conditions issues or lack of adequate housing density. This condition appears to be exacerbated by factors such as the voluntary nature of the road addition petition process, limited developer liability and limited authority of local and State agencies, economic challenges faced by the industry, lack of disclosure and understanding by property owners.

Transportation Recommendations for Improvements to NCDOT Process (under review) Require early submittals of utility encroachment agreements Modify current housing density requirements (minimum of 4 homes) Consider elimination or move toward “blanket” resolutions Conduct periodic critical review of minimum construction requirements for subdivision roads and implement updates as needed to address new issues Revise language of District Engineer’s certificate of approval statements that will add clarity to its true meaning as stipulated by GS

Transportation Suggestions from Industry Partners and Local Governments (under review) Re-establish local government authority to require a maintenance bond (or tweak development bond) Consider lowering the minimum home density requirements Letter of acceptance to petitioner needs to be recorded with register of deeds Develop an electronic database to quantify the problem and monitor trends Centerline miles Cost to get roads up to standard Local governments implement proactive strategies including annual inspections that encourage developers to petition roads for public maintenance

Transportation Suggestions from Industry Partners and Local Governments (under review) Allow extended repayment period up to 20 years if county desires use its statutory authority under Article 9 to pay initial costs for bringing roads up to minimum standards for acceptance on the state maintenance system. Enhance DOT certification letter – needs more clarity regarding road maintenance responsibility Study a means to penalize developers who are not following rules without being burdensome for those who are Look at a means to reduce/eliminate unlawful encroachments after first inspection Clarify road maintenance disclosure statements on real estate transaction documents to provide more consumer protection.

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