Title
A Resolution to Amend Resolution Nos. 208-23 and 59-24 Increasing the 2024 Mesa Basin and Sand Creek Basin Drainage Fees.
Presenter:
Richard Mulledy, P.E., Public Works Director;
Erin Powers, P.E., Stormwater Compliance Program Manager
Summary:
The Colorado Springs/El Paso County Drainage Board, at their August 13, 2024 meeting, approved a recommendation for an increase of $22,405 per acre to the drainage fee for the Mesa Drainage Basin for property to be platted and unplatted property in relation to the consolidated landfill as delineated by the Ownership Exhibit (Exhibit B), and $8,557 per acre for all other unplatted property. The existing 2024 drainage fee for this basin is $31,445 per acre. The new drainage fee for this basin would be $53,850 per acre for MVS Development, LLC property including the consolidated landfill, and $40,002 per acre for the remaining unplatted acreage within the Mesa Basin.
The Colorado Springs / El Paso County Drainage Board, at their September 10, 2024 meeting, approved a recommendation for an increase of $1,661 per acre to the drainage fee for the Sand Creek Drainage Basin. The existing 2024 drainage fee for this basin is $23,688 per acre. The new drainage fee for this basin would be $25,349 per acre.
Background:
Action by the Drainage Board to increase the Sand Creek Basin and Mesa Basin drainage fees to cover drainage basin costs represents a common practice used by the Drainage Board to cover unanticipated drainage costs in new subdivision development. Unanticipated costs can be described as costs not shown in the Drainage Basin Planning Study for the drainage basin and/or costs that were not included in the original fee calculation for the basin.
The Drainage Board’s action to increase the Sand Creek Basin drainage fee originated with a request by Classic Consulting, the engineer for Greenways Neighborhood Park Filing No. 1, and Greenway Investments, LLC., the developer for Greenways Neighborhood Park Filing No. 1. Portions of the Sand Creek Basin were previously platted and then vacated. The drainage corridor associated with a neighborhood park consisting of 37.2 acres was recommended to be removed from the plat area subject to drainage fees because the area had been previously platted. This fee increase is intended to compensate for the change in future platted acreage subject to drainage fees.
The Drainage Board’s action to increase the Mesa Basin drainage fee originated with a request by Classic Consulting, the engineer for Allaso Peak Filing No. 1, and MVS Development, LLC., the developer for Allaso Peak Filing No. 1. A detention facility was required to support the development of 253-mulit-family apartment units per criteria and identified in the Drainage Basin Planning Study (DBPS) for the Mesa Basin. The 1986 Mesa Basin Drainage Basin Planning Study included a detention facility in the development area with an associated reimbursable cost of $85,121.14 (adjusted for inflation). The engineering cost estimate in the
September 2022 Master Development Drainage Plan and Final Drainage Report for Lot 1, Allaso Peak Filing No. 1 was $70,851.50. The engineer’s as-paid bills total $885,552.23,
exceeding the DBPS estimated cost by $800,431.09. This fee increase is intended to cover the excess cost for the reimbursable improvements. The developer proposed to pay a higher future fee per acre and receive a higher upfront reimbursement rather than receive an adjusted reimbursement and paying the same fee per acre for remaining property. The Drainage Board agreed with the request, as reflected in the higher fee for the area shown on Exhibit A.
Previous Council Action:
On December 12, 2023, the City Council approved Resolution 208-23 establishing the 2024 Drainage Basin Fees. City Council approved Resolution No. 59-24 on June 24, 2023, re-establishing the 2024 Mesa Drainage Basin Fee.
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 the drainage fee program. The revenue and expenditures for drainage fees are tracked in a separate fund. There is no impact to the General Fund.
City Council Appointed Board/Commission/Committee Recommendation:
The Colorado Springs/El Paso County Drainage Board, at their August 13, 2024 meeting, approved a recommendation to increase the Mesa Basin Drainage Fee from $31,445 per acre to $53,850 per acre for property to be platted in the consolidated landfill area as delineated on the Exhibit B, and $40,002 per acre for all other unplatted property in the Mesa Drainage Basin. The Drainage Board, at their September 10, 2024 meeting, approved a recommendation to increase the Sand Creek Basin Drainage Fee from $23,688 to $25,349 per acre.
Stakeholder Process:
There was no public comment on the item presented at the Drainage Board Meeting.
Alternatives:
Leave the drainage fee for the Mesa Basin at its current amount. This would result in the fee being too low to cover all the reimbursable drainage facility costs in the basin.
Recommended Action
Proposed Motion:
Move to approve the resolution to increase the 2024 Sand Creek Drainage Fee to $25,349 per acre, and to increase the 2024 Mesa Basin Drainage Fee to $53,850 per acre for property to be platted as shown on Exhibit B and $40,002 per acre for all other property in Mesa Basin.
Summary of Ordinance Language
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