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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2017 - BOXELDER BASIN REGIONAL STORMWATER AUTHORITY (BBRSAgenda Item 23 Item # 23 Page 1 AGENDA ITEM SUMMARY December 19, 2017 City Council STAFF Mike Beckstead, Chief Financial Officer Judy Schmidt, Legal SUBJECT Boxelder Basin Regional Stormwater Authority (BBRSA) Fee Payments. EXECUTIVE SUMMARY The purpose of this item is to authorize the City Manager to pay fees normally due in 2018 to Boxelder Basin Regional Stormwater Authority (BBRSA) in 2017. Ordinance No. 009, 2017, adopted on February 7, 2017, appropriated the amount of $330k for this pre-payment in 2017. Staff has been working with the members of BBRSA to develop an Intergovernmental Agreement (Agreement) to resolve various financial concerns of the members. With the adoption of the Agreement and members’ completion of various actions defined in the Agreement, BBRSA will have adequate funds to meet all 2017 obligations. In the event of a delay in approval of the Agreement by all members and Timnath the payment of Fort Collins 2017 estimated annual stormwater service and development fees normally due and payable to the Authority in 2018, will allow BBRSA to meet all obligations while members finalize the Agreement. STAFF RECOMMENDATION Staff recommends adoptions of the following motion: I move that the City Council authorize the City Manager to pay to the Boxelder Basin Stormwater Authority the estimated annual stormwater service and development fees for 2017 normally due and payable by the City in 2018, in the amount of $330,000. BACKGROUND / DISCUSSION The Boxelder Basin Regional Stomwater Authority (BBRSA) was established in 2008 by Larimer County, Fort Collins and Wellington as founding Members under an Intergovernmental Agreement for Stormwater Cooperation and Management dated August 20, 2008, and First Amendment to Intergovernmental Agreement for Stormwater Cooperation and Management dated June 16, 2014, (collectively, the Boxelder IGA). Staff has been working with the members of BBRSA to develop a separate Intergovernmental Agreement (Agreement) to resolve various financial concerns of the members. Representatives of the member entities have also been working with Timnath to participate in the Agreement with respect to the future funding for long-term maintenance and operation of one of the BBRSA facilities known as the East Side Detention Facility that is of particular benefit to Timnath (Timnath Development Authority of Colorado is already participating in payment of construction and financing costs for this facility through a separate intergovernmental agreement with the BBRSA). The Agreement was presented to Council for approval on December 12, 2017, pursuant to Resolution 2017-016. To position the City so that the City Manager can authorize payment of the City’s 2017 estimated annual stormwater service and development fees normally due and payable to the Authority in 2018 under the Boxelder IGA before the end of 2017, staff recommends adoption of the proposed motion. Agenda Item 23 Item # 23 Page 2 Payment of the City’s fees early will provide sufficient funds so that the BBRSA can make the final payment due under a settlement agreement with the Day family pertaining to the Authority’s acquisition of real property for the East Side Detention Facility if there is a delay in final approval of the new Agreement by all parties. Prior Actions by Council: • On February 7, Council adopted Ordinance 009, 2017 on 2nd Reading appropriating $330K for pre- payment of 2017 fees to the BBRSA. • On May 9, 2017, the City Council adopted Resolution 2017-041 supporting a framework for resolution of outstanding issues and the participation of City-named representatives in the working group for that purpose. • On June 6, 2017, the City Council adopted Resolution 2017-054 expressing commitment to work in good faith through the working group in an effort to reach agreement allocating the Authority’s long term obligations for perpetual maintenance and operation of the Projects, identifying recommended changes to the ongoing operation and maintenance costs related the operation of the Authority, and facilitating retention by the Authority of fee revenue to fill its ongoing obligations until payment in full of all outstanding obligations. • On December 12, 2017, City Council adopted Resolution 2017-106 authorizing execution of the new Agreement by the City. ATTACHMENTS 1. Ordinance No. 009, 2017 (PDF) ATTACHMENT 1