HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/02/2019 - SECOND READING OF ORDINANCE NO. 076, 2019, APPROVIAgenda Item 3
Item # 3 Page 1
AGENDA ITEM SUMMARY July 2, 2019
City Council
STAFF
Ken Sampley, Water Systems Engineering Manager
Theresa Connor, Water Engineering Field Operations Mrg
Shane Boyle, Civil Engineer III
Lance Smith, Utilities Strategic Finance Director
Judy Schmidt, Legal
SUBJECT
Second Reading of Ordinance No. 076, 2019, Approving, Affirming and Ratifying Funding of the Non-City
Share of the NECCO Project by Offering to Owners and Developers of Property Within the NECCO Area a
Proportionate Buy-In to Connect to the NECCO Project.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 4, 2019, adopts the cost share concept
whereby development and redevelopment draining into the Northeast College Corridor Outfall (NECCO)
stormwater system are required to pay their proportional cost share of the NECCO improvements if they
choose to use the NECCO system in lieu of constructing separate stormwater facilities. The NECCO
stormwater system (or NECCO Project) was designed to provide an adequate stormwater outfall for the area
north of Vine Drive and east of College Avenue in order to alleviate existing drainage problems and to facilitate
development and redevelopment in the area.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, June 4, 2019 (w/o attachments) (PDF)
2. Ordinance No. 076, 2019 (PDF)
Agenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY June 4, 2019
City Council
STAFF
Ken Sampley, Water Systems Engineering Manager
Theresa Connor, Water Engineering Field Operations Mrg
Shane Boyle, Civil Engineer III
Lance Smith, Utilities Strategic Finance Director
Judy Schmidt, Legal
SUBJECT
First Reading of Ordinance No. 076, 2019, Approving, Affirming and Ratifying Funding of the Non-City Share
of the NECCO Project by Offering to Owners and Developers of Property Within the NECCO Area a
Proportionate Buy-In to Connect to the NECCO Project.
EXECUTIVE SUMMARY
The purpose of this item is to adopt the cost share concept whereby development and redevelopment draining
into the Northeast College Corridor Outfall (NECCO) stormwater system are required to pay their proportional
cost share of the NECCO improvements if they choose to use the NECCO system in lieu of constructing separate
stormwater facilities. The NECCO stormwater system (or NECCO Project) was designed to provide an adequate
stormwater outfall for the area north of Vine Drive and east of College Avenue in order to alleviate existing
drainage problems and to facilitate development and redevelopment in the area.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Project History
The Northeast College Corridor Outfall (NECCO) Project was initiated in response to large development potential
north of Vine Drive and east of College Avenue. At that time, there was no adequate stormwater outfall for this
area of the city, which created a significant hinderance to development and redevelopment. There were also
drainage problems in this area from existing development, mainly due to a lack of stormwater regulations when
this area of the City originally developed. The NECCO area map is Exhibit A to Ordinance No. 076, 2019.
In response to development interest in the area, design was initiated on a stormwater system that would help
mitigate existing drainage issues in the area, as well as provide an adequate stormwater outfall. The NECCO
stormwater design was managed by the City’s Stormwater Capital Improvement Program group and was
completed in 2009. The NECCO stormwater system schematic is Attachment 1 to this AIS. Construction of
the “backbone” storm sewer system occurred in 2016-2017 and the regional pond was constructed in 2018.
Other portions of the NECCO stormwater system have been completed by development, and were funded
partially through the Developer Repay program and partially through the NECCO buy-in paid by the
development. Another section of the system is under design and will be constructed as part of Planning,
Development and Transportation’s Suniga Road capital project.
Cost Share Concept
ATTACHMENT 1
Agenda Item 11
Item # 11 Page 2
Entities proposing to develop in this area (Developers) can choose to connect into the NECCO stormwater
system in order to receive the benefits of the system. Developers that choose to connect pay a proportionate
share of the NECCO stormwater system cost as described below. Developers that choose not to connect to the
NECCO stormwater system are required to meet typical stormwater requirements without the benefit of NECCO.
Since the NECCO proportionate cost for a development only covers its respective share of the NECCO
stormwater system, all properties still pay the standard stormwater plant investment fees (PIFs) in addition to
their respective share of the NECCO stormwater system cost.
The NECCO area was originally analyzed to determine which portions of the area are developed and
undeveloped. To define proportionate cost shares, the NECCO stormwater system was broken down into
individual project components and the cost of each component was divided among the area benefitting from that
component (e.g., only those areas receiving a benefit from the regional pond pay for the regional pond). The
analyses determined that the City’s share of the NECCO Project would be approximately 49% and the
appropriate developer share would be approximately 51%. The NECCO stormwater system cost allocation
spreadsheet is Exhibit B to Ordinance No. 076, 2019.
To date, the City has been constructing improvements and is being repaid for a pro-rata share of costs for the
developer share of the Project as development occurs through development and/or repay agreements. It is
anticipated the City will stop collecting allocated costs once the appropriate developer shares of NECCO
improvements have been received. Current costs are based on a combination of estimated and actual
construction costs. The cost estimate will be updated to reflect actual construction costs as improvements are
constructed.
Although the NECCO Project has a long history and is partially constructed, the purpose of the proposed
Ordinance is to formalize the allocation of costs between the City and benefitted development, and the allocation
of the developer share of improvement costs among benefitted properties as they develop or redevelop.
CITY FINANCIAL IMPACTS
The intent of this Ordinance is to establish a cost sharing mechanism that allows the City to recover the portion
of costs incurred to date for this project that is associated with new development and anticipated redevelopment.
To date the City has recovered $1M of the $6M developer’s share of project cost. While this project is a very
cost-effective solution to the required stormwater infrastructure for future development and redevelopment, there
is the possibility that future development may choose to build alternative stormwater drainage. Staff considers
this risk to be minimal based on the alternatives considered before constructing this project and the participation
of development to date.
BOARD / COMMISSION RECOMMENDATION
At its February 21, 2019 meeting, the Water Board unanimously recommended that City Council adopt the
Ordinance. (Attachment 2)
At its April 15, 2019 meeting, the NECCO Stormwater system funding approach was presented to the Council
Finance Committee (CFC) which supported going forward with this topic for Council consideration. (Attachment
3)
PUBLIC OUTREACH
Significant public outreach has been completed over the course of the NECCO planning and various capital
projects since inception in 2008 to the present. Outreach has been focused on property owners in the vicinity of
the NECCO infrastructure that can be served by the improvements, the North College Citizen’s Advisory Group,
and the Urban Renewal Authority.
Agenda Item 11
Item # 11 Page 3
ATTACHMENTS
1. Pipe Schematic (PDF)
2. Water Board minutes, February 21, 2019 (PDF)
3. Council Finance Committee minutes, April 15, 2019 (PDF)
-1-
ORDINANCE NO. 076, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING, AFFIRMING AND RATIFYING FUNDING OF THE NON-CITY
SHARE OF THE NECCO PROJECT BY OFFERING TO OWNERS AND
DEVELOPERS OF PROPERTY WITHIN THE NECCO AREA A
PROPORTIONATE BUY-IN TO CONNECT TO THE NECCO PROJECT
WHEREAS, on June 1, 2004, City Council adopted Ordinance No. 057, 2004, adopting
updated Master Drainage Plans for the City, including the Dry Creek Master Plan, December 2002,
which identified stormwater drainage improvement projects within the basin; and
WHEREAS, on December 21, 2004, City Council adopted Resolution 2004-151 finding
the area in and around North College Avenue described therein (the “North College Area”) to be
blighted and Resolution 2004-152 approving the North College Avenue Urban Renewal Plan to
facilitate elimination and prevention of such blight and promote the redevelopment, conservation,
and rehabilitation of the North College Area under the governance of the Urban Renewal Authority
(“URA”), all in accordance with the Colorado Urban Renewal Law (CRS Section 31-25-1010, et
seq.); and
WHEREAS, the City designed and constructed the Dry Creek Drainage Improvements
(consisting of the Douglas Dam fuseplug, Flood Control Basins 1 and 2, improvements to the
Larimer and Weld Canal, a SCADA system at the Larimer and Weld Canal headgate motors, and
the East Vine Diversion channel) to reduce and mitigate flooding risks in the drainage basin; and
WHEREAS, on June 17, 2008, the Federal Emergency Management Agency (FEMA)
adopted a new, reduced 100-year Dry Creek floodplain in conjunction with a Physical Map
Revision that identified reduction of flooding risk because of the Dry Creek Drainage
Improvements; and
WHEREAS, the Dry Creek Master Plan, December 2002 did not identify stormwater
improvements for the North College Area, a portion of which came to be referred to as the
Northeast College Corridor Outfall (“NECCO”) project; and
WHEREAS, the North College Drainage Improvement Design Report, February 2006
(Ayres Associates), identified master planned regional stormwater improvements serving the
North College Area and the NECCO area; and
WHEREAS, on March 20, 2007, City Council adopted Resolution 2007-032 adopting the
updated North College Corridor Plan as an element of the City’s Comprehensive Plan, recognizing
resolution of Dry Creek flooding issues in the North College Area by completion of a system of
upstream facilities over multiple years, citing lack of adequate drainage as the primary obstacle to
creation of the desired street patterns and development within the Area and including regional
detention ponds to eliminate the need for on-site detention in individual (re)development projects
and provide a simple and efficient stormwater solution; and
-2-
WHEREAS, in response to a proposed development in 2009, which was not subsequently
completed, Stormwater Utility staff completed engineering plans for construction of the NECCO
project as a unified regional stormwater system for an area east of College Avenue to Lemay
Avenue and South of Willox Avenue to East Vine Drive, including a regional detention pond west
of Redwood Drive, (the “NECCO Area”) generally depicted on attached Exhibit “A,” which is
incorporated by this reference, and an outfall pipe connecting the pond to the East Vine Drive
Diversion channel east of Lemay Avenue (collectively, the “NECCO Project”) and
WHEREAS, on May 4, 2010, City Council adopted Resolution 2010-023 approving the
North College Infrastructure Funding Plan as a framework for coordinating work efforts and
decision-making related to a prioritized list of infrastructure projects needed in the North College
Area, including the NECCO Project; and
WHEREAS, the City Stormwater Utility purchased the real property for the NECCO
regional pond in June 2010; and
WHEREAS, City Council subsequently approved a loan in the amount of $326,472 from
the Stormwater Utility to the URA (Resolution 2011-032) and appropriated the funds for that loan
(Ordinance No. 061, 2011) for the URA’s contribution to the cost of acquiring the NECCO pond
site to facilitate regionalized stormwater control in the NECCO Area, facilitate redevelopment and
improve watershed health impacted by uncontrolled runoff from the Area; and
WHEREAS, based on an analysis of the existing drainage issues and regional stormwater
needs, the existing state of development within the area (developed v. undeveloped), the future
development/redevelopment stormwater needs in the NECCO Area and an analysis of the benefit
to the properties available for development/redevelopment, Utility Stormwater staff developed a
system of allocating the estimated costs of the NECCO Project to be borne by the City (49% of
the total estimated cost, referred to as the “City Share”) and by the properties available for new
development (and redevelopment) within the NECCO Area (51% of the total estimated costs,
referred to as the “Non-City Share”); and
WHEREAS, the cost of each individual component of the NECCO Project included in the
Non-City Share was further allocated among the areas benefitting from that component (for
example, the Non-City Share of the cost of the regional pond is allocated among property within
the NECCO Area based on the benefit received from the regional pond), as shown on the map of
the NECCO Area attached as Exhibit “A,” to calculate the “Development Proportionate Buy-In”;
and
WHEREAS, the methodology for calculating the Development Proportionate Buy-In for
benefitted properties is generally illustrated on Exhibit “B” attached hereto (although dollars
shown are estimates in some cases and are not intended to be fixed); and
WHEREAS, in the 2013-2014 budget cycle, Council’s approved budget included funding
of $1.1M for the NECCO Regional Pond (BFO Offer 202.2 NECCO); and
-3-
WHEREAS, on November 21, 2013, the City entered into a Development Agreement with
Breckenridge Group Fort Collins Colorado, LLC for the Aspen Heights project pursuant to which
the Developer constructed certain off-site stormwater improvements that are part of the NECCO
Project at a total cost $1,021,030 and the City agreed to repay the developer for that portion of the
regional improvements in excess of the development’s agreed upon portion of costs ($372,569),
up to a maximum repayment of $648,461; and
WHEREAS, in the 2015-2016 budget cycle, Council’s approved budget included funding
of $.5M - $2.5M in 2015 and $2.5M in 2016 for the NECCO Project (2015-2016 BFO – Offer
71.2 Utilities Capital Project: Stormwater NECCO Improvements (phase 2)); and
WHEREAS, in the 2017-2018 budget cycle, Council’s approved budget included funding
of $3.3M - $1.6M in 2017 and $1.7M in 2018 for the NECCO Project (2017-2018 BFO – Offer
8.21 Capital Project – Utilities: Stormwater Phase 3); and
WHEREAS, it is anticipated the remainder of the NECCO Improvements will be funded
by a combination of City Capital Improvement Projects and Development Proportionate Buy-In;
and
WHEREAS, the City and Sasick Properties (doing business as Raw Urth) entered into a
Development Agreement dated March 24, 2016, pursuant to which the developer agreed to pay a
Development Proportional Buy-In of $26,047 for development of its property within the NECCO
Area; and
WHEREAS, the City and Crowne at Old Towne North entered into a Development
Agreement dated April 4, 2018, pursuant to which the developer constructed a portion of the
NECCO Improvements and the City agreed to reimburse the developer in an amount not to exceed
$298,339 for the City’s Share of such Improvements, with the unreimbursed cost being the agreed
upon Development Proportional Buy-In in exchange for its right to connect its property to the
NECCO Project; and
WHEREAS, the City and OTN FC, LLC (Old Town North Third) entered into a
Development Agreement dated April 11, 2018, pursuant to which the developer agreed to pay its
applicable Development Proportionate Buy-In, to be allocated to and paid with building permit
fees for each lot in the development in exchange for its right to connect its property to the NECCO
Project; and
WHEREAS, City stormwater utility staff continues to offer (re)developments of property
in the NECCO Area the opportunity to pay its Development Proportionate Buy-In in order to
connect to the NECCO Project in lieu of providing separate stormwater facilities to meet City
development standards; and
WHEREAS, the City Stormwater Utility desires to formalize the arrangement to offer
(re)development in the NECCO Area Development Proportionate Buy-In moving forward and
recommends that Council formally approve, affirm and ratify this approach to funding the Non-
City Share of the NECCO Project estimated costs of 51% ($6,445,155), which portion is available
-4-
to serve the stormwater needs of private development/redevelopment within the NECCO Area that
may otherwise be required to provide private stormwater facilities on site to meet City
development standards.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and findings
contained in the recitals set forth above.
Section 2. That the City Council hereby approves, affirms and ratifies funding the
Non-City Share of the NECCO Project by offering to owners and developers of property within
the NECCO Area the opportunity to pay its Development Proportionate Buy-In in order to connect
to the NECCO Project in lieu of providing separate stormwater facilities to meet City development
standards; and
Section 3. That the City Council hereby authorizes the City Manager or his designee
to enter into development agreements with and as requested by developers and owners of property
within the NECCO Area that include payment of a Development Proportionate Buy-In calculated
in accordance with the methodology generally illustrated on Exhibit “B” attached hereto as a
condition to connecting to and utilizing the NECCO PROJECT to serve such property, in lieu of
providing private stormwater facilities to meet City development standards.
Introduced, considered favorably on first reading, and ordered published this 4th day of
June, A.D. 2019, and to be presented for final passage on the 2nd day of July, A.D. 2019.
__________________________________
Mayor Pro Tem
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 2nd day of July, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
/DULPHU:HOG&DQDO
9LQH'ULYH
6XQLJD
&RQLIHU
+LFNRU\
&RQLIHU
&ROOHJH
/HPD\
EXHIBIT EXHIBIT A
Larimer Weld Canal
Suniga
Hickory
Conifer
Conifer
Vine Drive
NECCO Cost Breakdown Analysis
By: SB
Date: 1/23/2011 (Updated 5-17-2018 to reflect actual costs for backbone and regional pond)
Contributing
Total Area
NECCO Improvement Cost (acres)
Pipe Network Into Regional Pond $5,721,600 237.5 Includes all areas that are conveyed to the regional pond via the proposed pipe network.
Regional Detention Pond $1,310,000 187.0 Includes all areas that are served by the regional pond, including water quality capture volume (See subsets below for pond volume).
WQ Volume (acre-ft) 10.44 Pink (Except Basin 102), Orange, Red, Blue Water quality volume subset.
Detention Volume (acre-ft) 30.02 Orange, Blue Detention volume subset.
Redwood Pond and Outfall $621,450 118.2 Includes all areas served by the Redwood detention pond and associated outfall.
Outfall From Regional Pond to Vine Drive $4,990,000 647.3 Includes all basins tributary to the project.
Total Project Cost = $12,643,050
Map Area Basin Allocated Basin WQ+Det WQ+Det Detention Allocated Basin Allocated Basin Allocated Total Cost
Color Basin (acres) Contribution? Areal % Cost Contribution? Vol (ac-ft) Vol % Areal % Cost Contribution? Areal % Cost Contribution? Areal % Cost Cost per acre
PINK GROUP SUMMARY 75.7 Yes 31.87% $1,823,685 Yes 1.65 4.08% 0.00% $53,423 No 0.00% $0 Yes 11.69% $583,567 $2,460,675 $32,506
ORANGE GROUP SUMMARY 118.6 Yes 49.94% $2,857,186 Yes 18.60 45.98% 63.42% $602,383 No 0.00% $0 Yes 18.32% $914,281 $4,373,850 $36,879
BLUE GROUP SUMMARY 68.4 Yes 18.19% $1,040,729 Yes 20.21 49.94% 36.58% $654,194 No 0.00% $0 Yes 10.57% $527,292 $2,222,215 $32,489
GREEN GROUP SUMMARY 118.2 No 0.00% $0 No 0 0.00% 0.00% $0 Yes 100.00% $621,450 Yes 18.26% $911,197 $1,532,647 $12,967
YELLOW GROUP SUMMARY 228.6 No 0.00% $0 No 0 0.00% 0.00% $0 No 0.00% $0 Yes 35.32% $1,762,265 $1,762,265 $7,709
GOLD GROUP SUMMARY 37.8 No 0.00% $0 No 0.00% 0.00% $0 No 0.00% $0 Yes 5.84% $291,398 $291,398 $7,709
Totals 100.00% $5,721,600 100.00% 100.00% $1,310,000 100.00% $621,450 100.00% $4,990,000 $12,643,050
Contributing Areas
(map color)
Pink, Orange, Red, Blue (Except Basins 126, 127, 526)
Redwood Pond and Outfall Outfall From Regional Pond to Vine Dr
Green
All
Pipe Network Into Regional Pond Regional Detention Pond
NOTE: dollars may be estimates for improvements not completed at any point in time and are subject to adjustment.
EXHIBIT B