House Bill HB25-1211 is a ‘Hail Mary” attempt by big developers to force their will on local water districts. Opposition last year killed this concept (Chris deGruy Kennedy’s HB-1313) with the uniform opposition of the Water Districts.  This new bill is essentially Chris deGruy Kennedy’s bill repackaged to force Green Mountain Water District to extend service to the developers of the 59 acres located between 4th and 6th Ave. and east of Union Blvd.

         More importantly, the net effect is to remove local control over the fundamental operation of these district and insert State control and direction. The Lakewood City Council is supporting this bill which is actually ignoring the impact that adding 1,800 apartments (with no limits on the number of people in each apartment) would have on demand.

       When the legislature in the last session (2024) force-fed “additional dwelling units” for all properties and established “high density” building corridors for one-half mile on either side of a transit corridor, they significantly increased the total potential population for every water district and supplier of water. The Legislature never explained from where the extra water and infrastructure capital necessary to handle the increase demand would come. The key issue is the increase demand in demand for water which is driven not by “taps” but by the increase in the number of people being serviced. 

 
Here are key talking points in opposition to House Bill 25-1211 based on principles of liberty, property rights, and limited government: 

 OPPOSE HB25-1211 - Tap Fees Imposed by Special Districts 

This bill is unnecessary and duplicative, and also imposes new requirements on Special Districts. 

    ➔ CRS 29-20-104.5 already requires that tap fees be “no greater than necessary to defray such impacts directly related to proposed development.” 

     ➔ Imposing state-mandated conservation measures on Special Districts shifts infrastructure costs from one property owner to another 

ACCESS TO WATER FOR NEW CONSTRUCTION PROJECTS 

        New construction projects, whether housing or business, have to access needed services through the providers in their area. Two of the most important services are electricity and water. 

WATER PROVIDERS 

         Water providers come in many different structures - Water Districts, Metro Districts, Municipal Water Companies, etc. These entities have a responsibility to provide water to consumers within their boundaries. The cost of providing those services is generally paid through both System Development Fees, otherwise known as “tap fees” (initial access to the water system), and ongoing user fees, which covers the cost of water usage.. 

TAP FEES 

         As mentioned, tap fees are charged to a project developer to initially access an existing water system. These fees are directly tied to the infrastructure costs of each specific district - current law (CRS 29-20-104.5) already requires that tap fees be “no greater than necessary to defray such impacts directly related to proposed development.” 

        These fees include a share of existing infrastructure costs, along with the cost of any new infrastructure needed to serve a project, such as upgraded pipes, large-scale treatment plants, lift stations and other infrastructure necessary to address capacity issues. 

    ➔  One-time charge 

   ➔  Fee for new customer demand only

           ◆ Fee required of all new customers for their share of capacity 

           ◆ Fee required for existing customers requesting increases in capacity 

   ➔  Fee based on the value of the utility’s capacity and the amount of capacity needed by the new customer 

        In short, if a new housing project is proposed, whether single family or multi-unit - that new project must pay their share of the costs associated with “tapping” into the service. 

MANDATES REDUCED FEES - Only Shifts Costs to Other Users 

       This bill also requires reduced tap fees for projects with the potential to have reduced water demand based on a number of factors such as bedrooms in a home, square footage, landscaping, appliances and fixtures. This concept is flawed as these factors do not guarantee an impact on water demand. 

      ➔ Examples: Two people living in a 3 bedroom, 3000 square foot, house may actually use less water than four people living in a 2 bedroom apartment. -OR- A home that “taps” in with xeriscaping may later redo their yard and incorporate a sprinkler system. 

       Would these projects then have to pay an additional tap fee to the water district? How would a water district without a large staff police and enforce these provisions? 

COSTS VARY ACROSS COLORADO 

Tap fees vary across the various water providers in Colorado-ranging from as low as $3,000 to greater than $60,000. This is a direct result of the different service structures, size of the area served, age of the infrastructure, and a number of other factors. 

➔ Green Mountain Water and Sanitation District’s fees are determined using the American Water Works Association’s Buy-In method, along with the Replacement Cost New approach for system valuation.