HomeMy Public PortalAbout5c Out of Town ServiceTown of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
MEMO TO: Mayor Vandernail and the Board of Trustees
FROM: Jeff Durbin, Town Manager
DATE: April 27, 2017
SUBJECT: Out of Town Service Agreement for Byers Peak Ranch
MATTER BEFORE THE BOARD
Consideration of an out of town water and sewer service agreement for Byers Peak
Ranch.
ACTION REQUESTED
Approval of an out of town water and sewer service agreement via resolution
EXECUTIVE SUMMARY
Byers Peak Ranch is a 335 acre property located west of Fraser that had previously
been considered for annexation to Fraser, and after Fraser voters overturned an
annexation agreement, the property owners are developing the property as an
unincorporated development served by a new water system and wastewater treatment
plant (WWTP). The property owners challenged the Town Board denial of a special use
permit for the new WWTP in Fraser behind Murdoch’s and after the District Judge
remanded the matter back to the Town Board for reconsideration, both parties agreed to
place that on hold so that the potential for an out of town service agreement could be
considered. It is staff’s opinion that service from Fraser is preferable to new competing
systems adjacent to town. However, time is of the essence because the reconsideration
of the WWTP can only be placed on hold temporarily. A draft service agreement is
provided for Board consideration.
BACKGROUND
The annexation of Byers Peak Ranch to Fraser has been subject of discussion as far
back as the mid 1980’s. The Town Board approval of an annexation agreement in 2013
followed by a referendum that resulted in overturning that approval was highly
controversial in the community. While I don’t think reviving any of the hard feelings from
that time is helpful, it is important to understand how we got here today. And while I
believe that development of the property should happen in Fraser rather than
unincorporated Grand County, given the history, this simply isn’t something the property
owners will consider nor is it something that Fraser can force upon the owners. That
history is also part of the story as relates to the property owner’s efforts to develop new
competing water and sewer systems.
The proposed service agreement provides us with an opportunity to avoid competing
systems, environmental concerns, and to improve the financial position of our water and
sewer enterprise funds.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
In recent years, following the annexation referendum, matters of note related to the
property include the following:
• Grand County has approved a concept plan for the property that includes 1,233
residential units and expansion of the Colorado Adventure Park. The property
would be developed pursuant to Grand County land use code.
• Byers Peak Properties is pursuing a water rights decree for development of a
new water system to serve the development. While this would be a new junior
right, it does look feasible. The Town of Fraser is engaged in that process in
order to protect the Town’s water rights. The primary source of supply would be
an infiltration gallery in Elk Creek.
• Byers Peak Properties ought approval from the Town of Fraser for a new
wastewater treatment plant located in the Town of Fraser behind Murdoch’s. The
Fraser Town Board denied that special permit and after a legal challenge from
the property owners, the District Court has remanded the matter back to the
Town Board for further consideration. The parties have agreed to put that on
hold temporarily pending a potential out of town service agreement as an
alternative.
• Byers Peak Properties has indicated that they are also considering septic fields
as another alternative for wastewater service. Staff’s opinion is that this poses
risks to our water supply over time as they would be located above our water
supply. Further, low density development does not enhance our local economy.
• If the site behind Murdoch’s is not required for a WWTP, Grand Park has
proposed development of nine additional attainable housing units which would
result in a total of fourteen units in this area. These units would be intended to
be part of the Grand Park Attainable Housing Plan provisions.
As requested by the Board, staff has re-evaluated our ability to serve the property and
cost/benefit analysis related to adding this area to our service area.
• Our water engineers provided an analysis to the Board based on full build out of
Byer Peak Ranch and North Fraser. North Fraser is defined by everything in
Fraser excluding Rendezvous and Grand Park, which are served by the
Maryvale Plan for Augmentation. An increase of density in North Fraser of over
60% was modeled. This analysis confirmed ability to serve Byers Peak Ranch
and North Fraser build out without utilizing all of the Town’s current water rights.
• Total cost of capital expenditures necessary to serve this build out scenario are
estimated at $2,000,000 (water) and $3-7,000,000 (wastewater). This does not
include distribution system costs as those would be developer costs. Plant
Investment Fee revenues are estimated at $8,000,000 (water) and $8,000,000
(wastewater). Service fee revenues from the development at buildout would
double current service fee revenues.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
Highlights of the proposed service agreement include:
• Plant investment fees will be paid in full at the time of building permit pursuant to
the Town’s Plant Investment Fee schedule.
• Service fees will include a 10% out of town surcharge.
• The agreement provides that should the Town adopt a water and/or sewer
property tax, a mill levy equivalency surcharge will be added to service fees.
• The agreement further provides that the Town would collect full payment of water
and sewer Plant Investment Fees, and leaves the allocation of those funds
between the two enterprise funds subject to Town discretion. This could allow
the Town to direct more of the funds toward the Water Fund short term given that
the Wastewater Fund currently is in a better financial position.
• Water and sewer infrastructure will be designed, constructed, and dedicated to
the Town in accordance with the Town Code
ALTERNATIVES
• No action, no out of town service agreement. Property owners continue to
pursue development in unincorporated Grand County with service provided by
new water and sewer systems and/ septic fields. Outcome of water decree and
wastewater treatment plant uncertain.
• Authorize water and sewer service under terms of an out of town service
agreement (as proposed or may be amended).
RECOMMENDATION
As noted above, while annexation may be preferable, it is not an option for
consideration. Further, while this out of town service proposal may not be the most
preferable option, given all the factors and the positive financial result on our water and
wastewater enterprises, I believe this is in the ratepayers best interests.
Accordingly, it is my recommendation that the Town Board authorize an out of town
service agreement for Byers Peak Ranch.