Title
A resolution establishing 2017 Drainage Basin Fees, Bridge Fees and Detention Pond Facility and Land Fees
Presenter:
Travis Easton, P.E., Public Works Director
Brian Kelley, P.E., Engineering Manager, Water Resources Engineering Division, Public Works
Body
Summary:
At its January 26, 2017 meeting, the City/County Drainage Board approved a 3.5% adjustment in drainage, bridge and detention pond facility fees for 2017. This fee adjustment affects only the City Drainage Fee Schedule. The proposed fees are set forth in the 2017 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 Engineering staff. The current Fee Schedule is attached as Exhibit B. This item is scheduled to be presented to Council for action at the February 28, 2017 Council meeting.
Previous Council Action:
On June 14, 2016 City Council approved Resolution No. 58-16 establishing the 2016 Drainage Basin Fees, Bridge Fees, and Detention Pond Facility and Land Fees.
Background:
City Engineering staff performed the annual study of drainage facility construction cost trends. Exhibit C is the staff report for the proposed market adjustment that was presented at the January 26, 2017 City/County Drainage Board Meeting. The study evaluated data for 2015 and 2016 from the Colorado Department of Transportation, Engineering News Record, Consumer Price Index (less food and fuel) (“CPI”), and local construction cost data.
Staff recommended a 3.5% market adjustment to the drainage, bridge and detention pond facility fees for 2017. Detention pond land fees will remain unchanged at $76,602 per acre equal to the 2014 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).
The City received a letter of support for the 3.5% adjustment in drainage, bridge, and pond facility fees from the Home Builders Association (“HBA”). The letter of support is attached hereto as Exhibit D.
Drainage infrastructure is vital to insure the City’s ability to protect its citizens and downstream neighbors from potential damage due to stormwater.
Financial Implications:
Drainage, bridge and detention pond facility fees are paid by developers and are used to reimburse other developers who construct drainage improvements within the same drainage basin that cost more than their fee obligation. It is important to keep these fees current with the construction and material cost inflation rates to minimize the disparity between facility reimbursement cost and revenues collected to refund these costs. There are no City budget impacts.
Board/Commission Recommendation:
On January 26, 2017 the City/County Drainage Board voted to adjust the drainage, bridge and pond facility fee by 3.5% over the current fee schedule, with no change to the 2016 pond land fee.
Stakeholder Process:
The industry was contacted as part of the research of the proposed fee adjustment and they provided a letter of support through the Homebuilders Association (“HBA”).
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 2017 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 2017.
Disapprove a market adjustment to the City wide drainage basin fees, bridge fees, and pond facility and pond land fees for 2017, keeping the Drainage Basin Fees the same as 2016.
Recommended Action
Proposed Motion:
Move to approve the resolution establishing 2017 drainage basin fees, bridge fees and detention pond facility and land fees as shown on Exhibit A.
Summary of Ordinance Language
N/A