Title
A Resolution establishing 2020 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 its October 3, 2019 meeting, the City/County Drainage Board approved a 4.0% adjustment in drainage, bridge and detention pond facility fees for 2020. The proposed fees are set forth in the 2020 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 2018 and 2019 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 4.0% market adjustment to the drainage, bridge and detention pond facility fees for 2020. Detention pond land fees will remain unchanged at $76,602 per acre.
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 11, 2018, the City Council approved Resolution No. 159-18 establishing the 2019 Drainage Basin Fees, Bridge Fees, and Detention Pond Facility and Land Fees. Incremental increases to the Sand Creek Drainage Fee of $28.00 by Resolution No. 94-19 and $124.00 by Resolution No. ___-19 were approved by City Council on October 8th, 2019 and ________, 2019, respectively.
Financial Implications:
Drainage fees are paid by developers and 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 3, 2019, 2019 the City/County Drainage Board voted to adjust the drainage, bridge and pond facility fees by 4.0% over the current fee schedule, with no change to the 2019 pond land fee. The staff report for the proposed market adjustment that was presented at the October 3, 2019 City/County Drainage Board Meeting is identified as Exhibit B.
The City Council Budget Committee has reviewed this fee change at the meeting on November 21, 2019.
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 4.0% to the city-wide drainage basin fees, bridge fees and pond facility and pond land fees for 2020 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 2020.
Disapprove a market adjustment to the City wide drainage basin fees, bridge fees, and pond facility and pond land fees for 2020, keeping the Drainage Basin Fees the same as 2019.
Recommended Action
Proposed Motion:
Move to approve the resolution establishing 2020 drainage basin fees, bridge fees and detention pond facility and land fees as shown on Exhibit A.
Summary of Ordinance Language
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