Title
A Resolution Establishing 2022 Drainage Basin Fees, Bridge Fees, Detention Pond Facility and Land Fees
Presenter:
Richard Mulledy, P.E., Stormwater Enterprise Manager
Erin Powers, P.E., Stormwater Compliance Program Manager
Body
Summary:
At its November 4, 2021 meeting, the City/County Drainage Board approved a recommendation for a 7% adjustment in drainage, bridge and detention pond facility fees and a 28% adjustment in detention pond land fees for 2022. The proposed fees are set forth in the 2022 Drainage, Bridge and Pond Fees Schedule attached as Exhibit A. The adjustments are based on the annual study of drainage facility construction cost trends conducted by City staff and an increase in the Park Land Dedication Fee.
Background:
City staff performed their annual study of drainage facility construction cost trends. The study evaluated data for 2020 and 2021 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 7% market adjustment to the drainage, bridge, and detention pond facility fees for 2022. Staff also recommends a 28% increase to the detention pond land fees for 2022 to match the increase in the Park Land Dedication Fee from $76,602 per acre for all parks to $98,010 per acre for community parkland. City Code 7.7.902 states the following: “Prior to January 1 of each year, the unit detention reservoir land fee is intended to be raised or lowered by the same percentage as the City of Colorado Springs' park land dedication fee.”
Drainage infrastructure is vital to ensure the City’s ability to protect its citizens and downstream neighbors from potential damage due to stormwater.
Previous Council Action:
On December 8, 2020, the City Council approved Resolution No. 131-20 (Exhibit C) establishing the 2021 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 November 4, 2021, the City/County Drainage Board voted to adjust the drainage, bridge, and detention pond facility fees by 7% and to adjust the detention pond land fees by 28% over the current fee schedule. The staff report for the proposed market adjustment that was presented at the November 4, 2021 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 D).
Alternatives:
Approve a market adjustment of 7% to the city-wide drainage basin fees, bridge fees and detention pond facility fees and a market adjustment of 28% to the city-wide detention pond land fees for 2022 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 2022. Disapprove a market adjustment to the city-wide drainage basin fees, bridge fees, and pond facility and pond land fees for 2022, keeping the Drainage Basin Fees the same as 2021.
Recommended Action
Proposed Motion:
Move to approve the resolution establishing 2022 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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