Title
A Resolution Establishing 2021 Drainage Basin Fees, Bridge Fees, Detention Pond Facility and Land Fees
Presenter:
Richard Mulledy, P.E., Stormwater Enterprise Manager
Erin Powers, P.E., Senior Technical Engineer, Stormwater Enterprise
Body
Summary:
At the October 1, 2020 meeting, the City/County Drainage Board approved a recommendation for a 3.5% adjustment in drainage basin fees, bridge fees, and detention pond facility fees for 2021. The proposed fees are set forth in the 2021 Drainage, Bridge and Pond Fees Schedule attached as Exhibit A. The adjustment is based on the annual study of drainage facility construction cost trends conducted by City staff.
Background:
City staff performed their annual study of drainage facility construction cost trends. The study evaluated data for 2019 and 2020 from the Colorado Department of Transportation Colorado Construction Index Report (CCI), Engineering News Record (ENR) Materials and Labor Indices for Denver, Denver-Boulder-Greeley Consumer Price Index (CPI), UCCS Economic Forum statistics for the local economy, and local construction cost data. The local construction cost data input was received from several local developers, contractors, consultants, suppliers, and vendors regularly involved in the drainage construction industry.
Staff recommends a 3.5% market adjustment to the drainage, bridge, and detention pond facility fees for 2021. Detention pond land fees will remain unchanged at $76,602 per acre, equal to the 2020 School/Park Land Dedication Fee. The School/Park Fee is governed by City Code 7.7.1207.C.2, which states that the School/Park Fee Advisory Committee shall meet annually and advise City Council for the school and park fees in lieu of dedication for residential development.
Drainage infrastructure is vital to insure the City’s ability to protect its citizens and downstream neighbors from potential damage due to stormwater.
Previous Council Action:
On December 10, 2019, the City Council approved Resolution No. 153-19 establishing the 2020 Drainage Basin Fees, Bridge Fees, and Detention Pond Facility and Land Fees.
Financial Implications:
Drainage fees are paid by developers and are used to reimburse other developers who construct drainage improvements. These basin fees are not utilized by the City of Colorado Springs for drainage infrastructure, maintenance, or improvements. Instead, the fees are used
to help offset the costs that developers incur to build public infrastructure that is beyond their obligation. The increases to the drainage, bridge, and detention pond facility fees should help preserve the financial integrity of this drainage basin. The revenue and expenditures for drainage, bridge, and detention pond facility fees are tracked in a separate fund. There is no impact to the General Fund.
City Council Appointed Board/Commission/Committee Recommendation:
On October 1, 2020, the City/County Drainage Board voted to adjust the drainage, bridge, and pond facility fees by 3.5% over the current fee schedule, with no change to the 2020 pond land fee. The staff report for the proposed market adjustment that was presented at the October 1, 2020 City/County Drainage Board Meeting is identified as Exhibit B.
Stakeholder Process:
The industry was contacted as part of the research and stakeholder process and they provided a letter of support through the Housing and Building Association (Exhibit C).
Alternatives:
Approve a market adjustment of 3.5% to the city-wide drainage basin fees, bridge fees, and pond facility and pond land fees for 2021 as shown on Exhibit A. Approve a different percentage adjustment to the drainage basin fees, bridge fees, and pond facility and pond land fees for 2021. Disapprove a market adjustment to the City wide drainage basin fees, bridge fees, and pond facility and pond land fees for 2021, keeping the Drainage Basin Fees the same as 2020.
Recommended Action
Proposed Motion:
Move to approve the resolution establishing 2021 drainage basin fees, bridge fees, and detention pond facility and land fees as shown on Exhibit A.
Summary of Ordinance Language
N/A