Loading...
HomeMy Public PortalAbout5a TB Briefing Out of Town Service BPPTown 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.