HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/07/2015 - FIRST READING OF ORDINANCE NO. 071, 2015, AUTHORIZAgenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY July 7, 2015
City Council
STAFF
Jon Haukaas, Water Engr Field Operations Mgr
Ken Sampley, Stormwater/Floodplain Program Mgr
SUBJECT
First Reading of Ordinance No. 071, 2015, Authorizing the Execution of an Intergovernmental Agreement
Pertaining to Stormwater Utility Service Fees Due by Colorado State University for Services Provided by the
City of Fort Collins.
EXECUTIVE SUMMARY
The purpose of this item is to approve an intergovernmental agreement to establish a Stormwater Utility
Service Agreement between the City of Fort Collins Utilities and Colorado State University (CSU). Under this
IGA, CSU will agree to follow the standards, requirements, and conditions related to stormwater management
set forth in Chapter 26 of the City Code. The IGA establishes a baseline of impervious area above which an
additional Plant Investment Fee would be required for an increase of impervious surface. Finally, CSU will be
required to pay monthly Stormwater Utility Fees adjusted by a rate formula that reflects the benefits to the City
system by the additional detention provided on the CSU campus and the costs associated with the operation of
CSU’s own Municipal Separate Storm Sewer System (MS4).
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Fort Collins Utilities provides stormwater utility services through the operation of an extensive system of
collection, detention and conveyance facilities throughout the city. Over time, the City and CSU have been
unable to reach agreement regarding the extent to which CSU is obligated to pay City fees related to the
stormwater system.
The original annexation of the CSU main campus areas included a provision that made that property exempt
from many requirements of City Code. In 1981, the City established a Stormwater Enterprise to meet federal
regulations for stormwater management. As the requirements and fees for this service-based enterprise were
incorporated as part of Chapter 26 of the City Code, it subsequently created a conflict with the original
annexation ordinances. The other service-based enterprises for water, wastewater, and electric service are
also part of our City Code, but CSU has not disputed its obligations in regard to these enterprises.
In recent negotiations, CSU has generally not disputed that a stormwater service fee is appropriate; its primary
concern has been in regards to the methods for calculating that fee. The City and CSU have negotiated in
good faith to develop a mutually acceptable basis for establishing and determining the stormwater fees related
to the CSU Main, South, and West Campus areas.
There are three primary objectives of the IGA: (1) The standards and requirements of stormwater
management, (2) the calculation of impervious area used for Stormwater Plant Investment Fee determination,
and (3) the payment of monthly stormwater fees for the operation of the Utility.
Agenda Item 15
Item # 15 Page 2
CSU generally follows the stormwater quality and control requirements imposed by the City of Fort Collins.
The proposd IGA ensures both parties continue to be aligned as CSU embarks on aggressive redevelopment
on its campuses. In addition, the IGA allows for the use of mutually agreed upon site specific best
management practices that may not yet be recognized by the City Utility guidance manuals.
The IGA establishes the existing impervious area of each campus, generally described as Main, South, and
West Campuses as shown in Attachment 1 (this is also Exhibit A in the IGA). There are known Master
Planned redevelopments that are scheduled to be built over the next five years on the CSU campus sites.
These improvements are included in the allocation of impervious area for each campus. In the future, any
additional development will be required to pay additional Stormwater Plant Investment Fees to reflect the
impact on the City’s stormwater system. In effect, this imposes an upper limit of development impact for
impervious surfaces that CSU will adhere to into the future.
Finally, the IGA establishes that CSU will begin paying monthly stormwater fees effective July 1, 2015. The
basis of the fee starts with the standard calculation that applies to every parcel in the City. CSU is unique in a
number of ways when compared to other properties in the City. CSU also operates an MS4 system for the
campuses. This relieves the Utility of the need to perform these same stormwater management activities for
the campus areas. Therefore, it has been agreed the costs associated with this work should be recognized as
an appropriate credit against the calculated stormwater fees due under City Code. Additionally, CSU owns
and manages a very large contiguous area giving it the ability to detain more runoff than most other properties.
As a result, CSU does, in fact, detain more water in certain areas than would be required under City Code.
This creates a benefit to the stormwater system by relieving that burden from the City. The IGA establishes a
formula to calculate a credit to reflect that “over-detention” by CSU.
Although the City does not currently have other properties with the same unique characteristics as apply to the
three CSU campus areas (i.e. large contiguous land area and MS4 responsibilities), the stormwater fee rate
adjustments reflected in the IGA are designed such that they could be codified and applied to other properties
in the future.
CITY FINANCIAL IMPACTS
The establishment and collection of stormwater management fees from CSU will help to fund the operating
expenses of the Stormwater System and other related costs. To date, these costs have been absorbed by the
general ratepayer base.
BOARD / COMMISSION RECOMMENDATION
This item was discussed with the Water Board at its June 4 Work Session and received their support and
recommendation of approval at the June 18, 2015 regular meeting.
PUBLIC OUTREACH
There has been extensive discussion between CSU Facilities management and City of Fort Collins Utility staff
to come to a resolution on this issue.
ATTACHMENTS
1. CSU Stormwater IGA Agreement Boundary Map (PDF)
2. Water Board minutes (draft), June 18, 2015 (PDF)
0 0.05 0.10.20.30.40.5
Miles
Main
Campus
South
Campus
Laurel St.
Pitkin St.
Lake St.
Prospect Rd.
Drake Rd.
S. College Ave.
Shields St.
Centre Ave.
W. Plum St.
Birch St.
W. Elizabeth St.
EXHIBIT A
West
Campus
Stormwater IGA
Boundary Map ATTACHMENT 1
Excerpt from Unapproved Water Board Minutes June 18, 2015
Intergovernmental Agreement with CSU establishing a Stormwater Utility Service
Agreement
(Attachments available upon request)
Water Engineering & Field Services Operations Manager Jon Haukaas stated the purpose of this
item is to approve an intergovernmental agreement to establish a Stormwater Utility Service
Agreement between the City of Fort Collins Utilities and Colorado State University (CSU).
Under this intergovernmental agreement (IGA), CSU will agree to follow the standards,
requirements, and conditions related to stormwater management set forth in Chapter 26 of the
City Code. The IGA establishes a baseline of impervious area above which an additional Plant
Investment Fee would be required for an increase of impervious surface. Finally, CSU will be
required to pay monthly Stormwater Utility Fees adjusted by a rate formula that reflects the
benefits to the City system by the additional detention provided on the CSU campus and the
costs associated with the operation of CSU’s own Municipal Separate Storm Sewer System
(MS4).
This issue has been a point of disagreement between the City and CSU for about 35 years.
Recent internal reviews by City staff as well as a court decision in United States v. City of
Renton (2012) prompted this issue to be revisited. City and CSU staff worked cooperatively to
develop the proposed methodology for calculating a fair and equitable stormwater fee for CSU.
Discussion Highlights
A board member inquired about the apparent over-watering of CSU turf, causing less
infiltration and more runoff during a storm event, and whether this would have any effect
on the calculation of stormwater fees. Mr. Haukaas replied that only detention volumes
for storage of stormwater runoff factor into the proposed methodology.
A board member inquired if this was new money for the Utility. Mr. Haukaas responded
that the proposed IGA would result in about $500,000 in new revenue to the Utility. Mr.
Haukaas added that this IGA sets a framework for dealing with large landholdings within
the City that have over-detention on their property.
A board member inquired about the City’s efforts and expenses following the 1997
Spring Creek flood event, and whether these have played into the CSU stormwater
program and how we should be viewing this IGA. Mr. Haukaas responded that these
factors were considered.
Board Member Brian Brown made a motion that the Water Board recommend approval to
execute an Intergovernmental Agreement with CSU as presented to establish a Stormwater
Utility Service Agreement. Board Member Michael Brown seconded the motion.
Vote on the motion: It passed unanimously
ATTACHMENT 2
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ORDINANCE NO. 071, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL
AGREEMENT PERTAINING TO STORMWATER UTILITY SERVICE
FEES DUE BY COLORADO STATE UNIVERSITY FOR SERVICES
PROVIDED BY THE CITY OF FORT COLLINS
WHEREAS, the City owns a stormwater utility system through which it collects, detains,
and transmits stormwater runoff throughout the City (the “City Stormwater System”); and
WHEREAS, in 1981, the City established a Stormwater Utility to meet federal
regulations for stormwater management and incorporated into Chapter 26 of the City Code
requirements and service fees for stormwater drainage and management; and
WHEREAS, on July 20, 1993, the City Council adopted Ordinance No. 63, 1993,
establishing the City’s Stormwater Utility as an enterprise under the requirements of Section 20,
Article X of the Colorado Constitution; and
WHEREAS, prior to 1981, portions the Colorado State University (CSU) campuses were
annexed into to the City, pursuant to ordinances that limited the enforcement of the City Code in
the annexed areas; and
WHEREAS, since creation of the City’s Stormwater Utility, CSU has considered the
imposition of stormwater utility service fees on CSU properties to be in conflict with the limited
City Code enforcement language of the annexation ordinances, and CSU has therefore not paid
service fees for campus areas annexed into the City before 1981; and
WHEREAS, the Main, South, and West CSU campuses are unique from other properties
in the City, due to their large land areas, existing stormwater detention facilities, and CSU’s
current level of service to these areas through its Municipal Separate Storm Sewer System
(MS4), which reduce the burden on the City’s Stormwater Utility for service of those areas; and
WHEREAS, CSU does not dispute its obligation to pay service fees as a Stormwater
Utility customer; its primary concern relates to the method of calculating the fee in the City
Code; and
WHEREAS, despite not paying stormwater utility service fees, CSU has developed the
Main, South, and West campus areas in general compliance with the stormwater quality and
control requirements in the City Code and policies; and
WHEREAS, it is in the mutual interests of the City and CSU to enter into a service fee
arrangement for the delivery and management of stormwater from the CSU campus areas that
reflects the respective management and detention services provided by the parties; and
WHEREAS, accordingly, the City and CSU have negotiated the terms and conditions set
forth in the intergovernmental Stormwater Utility Service Agreement for the Main, West, and
South campus areas, attached hereto as Exhibit “A” and incorporated herein by this reference
(the “Agreement”); and
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WHEREAS, under the proposed Agreement, CSU will begin paying monthly stormwater
fees, effective July 1, 2015, using the standard calculation reflected in the City Code as a basis
for the fee, along with a factor for the over-detention provided by CSU on the campus sites; and
WHEREAS, pursuant to C.R.S. §29-1-203(1), the City is authorized to cooperate and
contract with other governmental bodies to provide any function, service, or facility lawfully
authorized to each of them; and
WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”)
additionally provides the City Council may, by resolution or ordinance, enter into contracts with
other governmental bodies to furnish governmental services and make charges for such services,
or enter into cooperative or joint activities with other governmental bodies; and
WHEREAS, Article XII, Section 6 of the Charter provides the City Council shall by
ordinance from time to time fix, establish, maintain, and provide for the collection of such rates,
fees, and charges for water and electricity, as will produce revenues sufficient to pay the cost of
operation and maintenance of the utilities in good repair and working order, and for other
enumerated purposes; and
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE City of Fort
Collins as follows:
Section 1. That the Council hereby approves the Agreement, including the rates, fees,
and charges set forth in the Agreement, and finds and determines the Agreement to be for the
benefit of the City Stormwater Utility and its ratepayers.
Section 2. That the Council hereby authorizes the Mayor to execute the Agreement
on behalf of the City, in substantially the form attached hereto as Exhibit “A”, together with such
modifications and additions as the City Manager, in consultation with the City Attorney,
determines necessary and appropriate to protect the interests of the City or further the purposes
of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 7th day of
July, A.D. 2015, and to be presented for final passage on the 21st day of July, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 21st day of July, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
EXHIBIT A