The Tucson Department of Transportation and Mobility intends to revise existing Right-of-Way (ROW) staff review and permit fees, and to add two new fees: Loss of Use / Capacity Reduction Fee and Loss of Value / Pavement Degradation Fee. A schedule of these proposals is included here: Right-of-Way Rates and Fees Revisions Proposal
These fees were recommendations included in the 2025 User Study conducted by Willdan Financial Services.
Proposed Adjustments
Permit and Staff Review Fees
The proposed structure simplifies the current fee schedule by replacing numerous flat fees with a standard application fee plus hourly charges based on actual staff time. This approach aligns fees with the full cost of service and reduces the total number of fees from 37 to 23.
Staff recommends implementing these revised fees at 100% of the calculated cost beginning July 1, 2026.
Loss-of-Use (LOU) Fees
Loss-of-Use (LOU) fees reflect reductions in roadway capacity when the ROW is temporarily restricted. Fees scale based on traffic volume and severity of restrictions.
A User Study was developed by Willdan Financial Services in 2025. The Study’s methodology assumed maximizing revenue as a policy objective. DTM staff recommends an alternative schedule that better reflects traffic impacts and moderates costs for ROW users. These fees are intended primarily to encourage efficient project completion rather than to maximize revenue.
LOU fees would apply to private and utility ROW users but are proposed not to apply to City of Tucson departments or work performed under annual utility maintenance permits.
Loss-of-Value (LOV) Fees
Loss-of-Value (LOV) fees address pavement degradation caused by ROW work. Fees scale based on pavement cut size and pavement age, with higher fees for newer pavement.
LOV fees would apply to private and utility ROW users but not to City of Tucson departments. Depending on pavement age, applicants may perform enhanced pavement restoration in lieu of degradation fees, although a base pavement cut fee will apply.
Implementation and Revenue Impacts
Staff recommends implementing LOU and LOV fees over three years to allow the market to adjust. Revised permit and review fees would begin at full cost recovery in FY 2027.