Urban Transportation Service Districts Overview

What is an Urban Transportation Service District (UTSD)?
A UTSD is an urban area identified by an eligible county where the county would like to provide additional local services, including the maintenance of the roadway network and related appurtenances within the district. 

Who can create a UTSD?
The option to develop a single or multiple UTSDs is currently available to urban counties.  An “urban county” is defined as a county that has a population of greater than 90,000 according to the United States Census of 2000 and did not maintain its roads as of January 1, 2007.

What is the origination of UTSDs? 
UTSDs originated as part of the 2007 General Assembly’s transportation package Chapter 896 of the 2007 Acts of Assembly and can be found in §15.2-2403.1.

Are UTSDs mandatory?
No.  The creation of UTSDs is at the sole discretion of an eligible county.

Who decides where a UTSD should be located, what size it shall be, or how many are allowed per county?
An eligible county must first propose the size and location (and number) of UTSDs.  Ideally, an area(s) proposed for designation should be a high density area that resembles a town in terms of geographic scope and land uses.

When a county is considering the creation of a UTSD, they should contact their local VDOT District office to initiate dialogue between the two parties as to the best location, size and number.  Many aspects should be discussed including:  fragmentation of the network, location of maintenance facilities, etc.

The boundaries of a UTSD are ultimately agreed to by the local governing body and the Commonwealth Transportation Board via a memorandum of agreement. The Commission on Local Government will serve as a mediator if necessary.

How many UTSDs can a county create?
The number of UTSDs is not limited.  However, the number and size of the UTSDs are directly related to their efficiency and functionality, and should be considered during their establishment.

What roads can be part of a UTSD?
All secondary and primary roads within a UTSD will usually fall under the maintenance responsibility of the county.  In certain cases, the locality may work with the Department to discuss the maintenance responsibility for primaries located partially within proposed district boundaries. VDOT prefers to retain operational responsibility for NHS roadways within the UTSD but will work toward a collaborative agreement when the county desires to include these in the UTSD network.  

How will private roads within a potential UTSD be handled?
Counties will not be required to take on the responsibility of private roads within the proposed boundaries of a UTSD and will not be reimbursed for the maintenance and operation of these facilities. 

What stipulations come with the creation of a UTSD?
A county that has an approved urban transportation service district will have the same maintenance responsibilities as cities and towns and will receive the urban maintenance payment (“urban rate”) as specified in § 33.1-41.1. These responsibilities include all operational activities and decisions regarding the roadways that are part of the UTSD.  The memorandum of agreement between the locality and the Commonwealth Transportation Board will address responsibility for operational activities and decisions where roadways under the control of the state intersect those under control of the locality.

How much will a county be reimbursed to maintain the roads within a UTSD?
Counties will receive quarterly payments similar to how cities and towns receive payments to maintain their transportation infrastructure (§ 33.1-41.1).  This methodology provides payments per lane mile depending on the classification of roads.  One payment rate is provided for local and collector roads while another is provided for minor and principal arterials.

FY08 Urban Maintenance Payment Rates
Roadway Classification	Rate (per lane mile)
Local and collector streets	$9,445
Minor and principal arterials	$16,088

How can a county estimate what the payment rates will be for the next six years out?
Currently the CTB provides a 4% annual increase for the maintenance payments program. That 4% provides an increased payment rate and accommodates all mileage additions so the actual maintenance payment rate increase each year will usually be a little less than 4%.

How can a county determine how much it will cost to maintain roads within a UTSD?
Counties will be responsible for determining what the financial ramifications will be based on the size, number and location of the proposed UTSD.  VDOT, in conjunction with two partner counties, developed a simulation model for a county to evaluate costs associated with maintenance and operations of their secondary system based on current Departmental practice.  This tool also allows a county to model higher levels of service for maintenance for such things as drainage, pavement, roadside services, etc.  A copy of the model and more information can be found at:  http://www.virginiadot.org/business/DevolutionOf2ndarySystem.asp.  This model did not address costs associated with primary routes.  Additional research will be required if a county pursues responsibility over an existing primary route.

What is considered “maintenance responsibility”?
These responsibilities include all maintenance, operational activities and operational decisions, collectively known as “asset management,” regarding the roadways that are part of the UTSD. Such items include:  snow removal, pavement resurfacing, signs, signals, permits, review of land development activities, etc.

Appendix E in VDOT’s Urban Construction and Maintenance Program Guidance Manual is a good resource for examples of maintenance responsibilities.  This manual can be found at:
http://www.virginiadot.org/business/resources/Urban_Manual_1-1-07_Final.pdf

Will a county be able to apply its secondary construction allocations to improve facilities within a UTSD?
It will still be the responsibility of the local Board of Supervisors to set priorities for the allocation of secondary allocations for use across the entire county.  This could include transportation improvements within a UTSD.

What benefits come with the creation of a UTSD?
Localities will receive the “urban rate” from the State for maintenance and operational
responsibilities.  Currently, the “urban rate” for local and collector roads is significantly more than the amount spent by VDOT on maintenance and operational responsibilities per lane mile for secondary roads.  Localities may also benefit from having increased control over roadways within the district by potentially providing more responsive service to citizens and other measures which are possible with local control of the road network.

In addition to receiving the “urban rate”, the creation of a UTSD comes with authority to impose impact fees for a number of public facilities.  A county must establish a UTSD, and adopt an impact fee ordinance, by December 31, 2008 in order to take advantage of these types of impact fees.

A county may also choose to implement other powers of service districts that are outlined in Title 15.2 of the Code of Virginia.

What reporting requirements come with the creation of a UTSD?
Similar to cities and towns across the Commonwealth that maintain their streets (in accordance with § 33.1-41.1), a county will be expected to report annually on how, and in which categories, the payments they receive are spent.  This data is collected by UVA’s Weldon Cooper Center.  More information on this can be found at:  http://www.coopercenter.org/econ/SURVEYS/

In addition to reporting on expenditures, counties will be expected to report on the performance of the system within a UTSD.  In the same manner as the urban system is treated, VDOT will conduct annual inspections with the county.  Additionally, VDOT is working with localities on statewide reporting of performance.   Currently VDOT is collecting performance data pertaining to the condition of bridges and pavements within these localities.  Information on this program can be found at VDOT’s Local Assistance webpage under the urban maintenance program at: http://www.virginiadot.org/business/local-assistance-programs.asp#Urban%20Highways.

What role do VDOT standards and regulations play in a county’s administration of a UTSD?
Counties will be responsible for maintaining and operating the system included in a UTSD.  VDOT’s standards and regulations will apply to UTSDs in a similar fashion as they currently apply to localities who maintain their own transportation systems. 

For example, counties wishing to add newly constructed roads to the UTSD inventory must ensure these meet stipulations laid out in the Department’s Secondary Street Acceptance Requirements. 

Other VDOT regulations that must be considered include, but are not limited to: Traffic Impact Analysis Regulations, Access Management Regulations, etc.

How do the broad impact fees associated with UTSDs differ from road impact fees authorized by the Code of Virginia?
Impact fees that are permitted in association with a county’s creation of a UTSD(s) are general in nature and may be applied to defray the costs of public facilities (transportation, stormwater, parks, public safety, education, and libraries).  Other impact fees permitted by the Code may only be imposed to finance road improvements.

Note:  The broad impact fee authority granted with the creation of a UTSD does not apply to counties within the Richmond Metropolitan Statistical Area.

Under what mechanism must a county use to create a UTSD?
A county must adopt an ordinance establishing a UTSD(s) and enter into a memorandum of agreement with the Commonwealth Transportation Board.

What is the deadline for creating a UTSD?
There is no sunset clause associated with the creation of a UTSD.  However, the associated impact fee authority does expire on December 31, 2008, if not enacted.

What is the correlation between a UTSD and an Urban Development Area?
Although these areas have different density requirements, they may overlap and should be evaluated in conjunction with one another.  More information on Urban Development Area requirements can be found in section 15.2-2223.1 of the Code of Virginia. 

Once a UTSD is created, how does a county modify its geographical limits?
Modification of the UTSD boundaries requires that a county amend its memorandum of agreement with the Commonwealth Transportation Board, which spells out the boundaries of the UTSD.  If a county wishes to modify the boundaries of an existing UTSD, they should first contact their local VDOT office to initiate discussions pertaining to the modification of the existing agreement.

How often would a locality be able to adjust its UTSDs? 
While no set frequency has been established, it is anticipated that requests to adjust the UTSD boundaries would be minimal and infrequent. Any adjustment would go through the same review and approval process as the initial request.

What will be the process if a county or VDOT wishes to dissolve a UTSD?
If either party desires to dissolve a UTSD, written notification would be provided to the other party. A cancellation agreement would be established outlining the responsibilities and timing of dissolving the UTSD. The cancellation agreement would be approved by the CTB.

How will VDOT address roadway right of way that is owned by the Commonwealth if it’s to be under the control of a UTSD?
The agreement establishing the UTSD will transfer associated operational responsibility and liability to the locality. The locality will assume all rights and liability as though the right of way were owned by the locality.

How does GASB 34 impact an UTSD?
GASB 34 requires infrastructure to be capitalized. The test for who should capitalize highway infrastructure is who maintains the infrastructure. The locality/government that maintains the infrastructure should report the asset on its Government- wide GASB 34 balance sheet. Additional information can be found on the VDOT public website at the following link: http://www.virginiadot.org/business/Gasb34-information.asp. The site includes information on VDOT’s methodology for valuing assets and links to other important information including the Auditor of Public Accounts website.

Do UTSDs need to be contiguous?
No-this is not a requirement.

Do UTSDs need to be within an Urban Area as defined by the U.S. Census Bureau?
No-they just have to meet the density requirement specified in §15.2-2403.1 which is one residential unit per gross acre or greater.

Can the UTSDs have exceptions or "holes"?
The UTSD has to have a logical boundary that is easily communicated. Therefore, VDOT would have concerns with establishing UTSDs with “holes” or areas where the locality will not have maintenance responsibility. 

Can a UTSD be created to include areas where the county has approved development, but it has not taken place yet?
No - The UTSD density requirement is one dwelling unit per acre and is based on existing conditions at the time of its creation. However VDOT is sensitive to large scale changes in development within localities and the impact that can have upon UTSD boundaries. VDOT will work with localities that are experiencing high development rates on boundary adjustments as requested. 

Are school routes and frontage roads included in the payment calculation?
All roads that are currently included in the inventory of secondary roads would be included in a UTSD.  School routes that are currently designated as secondary roads would also be included.  Frontage roads (in the system) which run along any road that will be maintained by the County should be included as part of a UTSD.