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HomeMy WebLinkAboutMemo - Mail Packet - 5/5/2020 - Memorandum From Theresa Connor Re: Stormwater Utility Fee In For Annexed PropertiesUtilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221.6700 970.221.6619 – fax 970.224.6003 – TDD utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: April 22, 2020 TO: Mayor Troxell and Councilmembers THROUGH: Darin Atteberry, City Manager Carrie Dagget, City Attorney Jeff Mihelich, Deputy City Manager Kevin R. Gertig, Utilities Executive Director Lance Smith, Utilities Strategic Finance Director FROM: Theresa Connor, P.E., Utilities Deputy Director, Water Field Operations & Engineering RE: Stormwater Utility Fee in for Annexed Properties Bottom Line: As properties are annexed into the City of Fort Collins, they become part of the Stormwater Utility’s service area and receive monthly bills from Fort Collins Utilities (Utilities) for the stormwater utility fee. Some of these property owners push back against this fee because they have not had to pay a stormwater fee before and believe that their large urban estate parcels do not generate frequent runoff. Based on how the stormwater utility fee is calculated for these urban estate lots, it is up to 75% less than that what it would be for a fully-developed property because these lots have substantial green areas (pervious area) without extensive hard services (impervious area). Utilities collects this fee since the design storm for the stormwater system is the 100-year storm of 3.67 inches in 2 hours. The large lots will generate substantial runoff in larger storms as the infiltration capacity of the soil is overwhelmed and the rainfall becomes runoff once that happens. Utilities has the ability to work with landowners and City Council during the annexation process to temporarily reduce the stormwater utility fee in order to mitigate the economic impacts to the annexed properties in light of the relevant circumstances. This has been discussed in previous annexation processes, but not implemented. Background: The City’s Stormwater Utility provides protection for people, property, and the environment by managing stormwater in a sustainable manner through the operation of a Municipal Separate DocuSign Envelope ID: 5C35DDAA-95D3-4E92-B632-E21D0B3268A6 Storm Sewer System (MS4) under a statewide permit. This takes a Fort Collins-wide effort to protect homes, business, and streets from flooding and manage the runoff to prevent water quality degradation and stream erosion. The stormwater utility fee provides funding for operations and maintenance of the existing MS4 system and capital improvements to provide a common level of service throughout the community. The stormwater utility fee is based upon the size of parcels and the amount of impervious area on the parcels. Large urban estate lots with a small footprint of hardscape such as roofs and driveways and large open spaces can receive a smaller fee of up to 75% since they do not generate runoff into the City stormwater system frequently. But in the large storms, such as the 100-year storm of 3.67 inches that Utilities designs the stormwater system to handle, the large properties can generate substantial runoff to the Stormwater Utility’s system since the infiltration capacity of the soil becomes overwhelmed and the rainfall becomes runoff at that point. As properties are annexed from Larimer County into the City of Fort Collins and the Stormwater Utility’s service area; the property owners will start to receive a stormwater utility fee for stormwater service. Larimer County has some areas that pay a stormwater fee, but typically, Utilities’ stormwater utility fee is a new fee to those residents that have been involuntarily annexed. Some do not perceive value from the Stormwater Utility to their property. However, the Stormwater Utility does provide substantial benefit to their property and to the community through sustainably managing stormwater runoff to protect residents from flooding in their homes and businesses, maintaining passable roadways for emergency vehicles and regular traffic, and maintaining the health of the creeks and rivers in Fort Collins. Runoff from all parcels impacts Utilities’ stormwater system. City Code establishes a process for property owners to appeal the amount of their stormwater utility fee. It first goes to the Utilities Executive Director and can be appealed to the Water Board and then that can be appealed to City Council. We have had a property owner appeal their stormwater utility fee through to Water Board, which upheld the fee. In addition, City Code Section 26-514(b) permits City Council to apply a temporary reduction of the stormwater utility fee at the time of annexation for a lot or parcel to mitigate the economic impacts to the annexed property in light of relevant circumstances. This has been discussed in previous annexations but not implemented. This is a tool that City Council has to address the unique issues that arise with respect to property owners in forced annexation cases. The provision for a temporary reduction must be discussed ahead of and included in the annexation ordinance. If there are any questions about how the stormwater utility Fee is applied or about the Stormwater Utility in general, please let us know. Our intent is to provide high value for the community. CC: Judy Schmidt, Senior Assistant City Attorney Eric Potyondy, Assistant City Attorney Ken Sampley, Director, Stormwater Engineering and Development Review DocuSign Envelope ID: 5C35DDAA-95D3-4E92-B632-E21D0B3268A6