Chip Landman testifies before the Colorado Springs City Council, sitting in its dual role as the Utilities Board, on Sept. 21, 2011.
In 2006, Chip Landman bought a dilapidated building out of foreclosure and started making plans to restore it — exactly the kind of “infill” development City Hall has promoted for years.
Due to the recession, the building sat until 2009 when Landman learned from Colorado Springs Utilities that it would cost him thousands to reconnect the water and sewer services, which had been shut off when the bank took the property back years earlier.
The huge cost of essentially turning a water valve created what Landman called “a chilling effect on redevelopment of old blighted properties.”
It seems most of the Colorado Springs City Council agree and will consider slashing fees for restoring utility service based on sweeping changes suggested by Utilities staff.
Colorado Springs City Council president Scott Hente
“I’ve heard support for bringing this forward to City Council,” council President Scott Hente told the staff at an Oct. 19 meeting of the council, sitting as the Utilities Board. The council is expected to consider the new fees Dec. 13.
Besides making it cheaper to redevelop commercial property, the proposed fee reductions would apply to residential properties, which have gone into foreclosure by the thousands.
For decades, Utilities didn’t charge to restore utilities unless a property sat disconnected five years or longer. At that point it was deemed abandoned and fees imposed.
In 2006, the codes changed and service was not considered abandoned until 10 years elapsed. Also, Utilities instituted a two-year grace period, after which service restoration fees were imposed. Beginning in 2010, the abandonment period was extended to 20 years.
Dave Munger, president of the Council of Neighbors and Organizations
Under the proposal Utilities proposed, the two-year grace period would grow to five years. And fees would drop. For example, instead of paying about $10,000 to reconnect residential service deemed abandoned, it would be capped at $3,008.
Savings would be even greater for commercial customers. For a 2-inch meter inactive 10 years, reconnection would drop from about $14,000 to about $4,600. And restoring abandoned service would plunge from the current $116,000 to $14,000.
The proposed fee reduction is welcome news to neighborhood activist Dave Munger, president of the Council of Neighbors & Organizations. He said he’s heard many complaints about the fees.
“It’s in everyone’s best interest to figure out ways to encourage infill,” Munger said. “I’m glad to hear Utilities is rethinking its position on reconnection fees.”
Andrew Knauf stands outside his house on West Pikes Peak Avenue. He turned off the utilities in 1993. When he called to get service reconnected about three months ago, he was told it would cost more than $11,000. He is appealing.
It’s unclear if the new fees will help Andrew Knauf, who turned off utilities in 1993 to a house he owns on West Pikes Peak Avenue.
When he tried to restore water and sewer a few months ago, he was told it would cost more than $11,000. He is appealing.
“We’re talking about turning a valve,” Knauf said. “I can’t afford $11,000.”
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Charges should be related to actual costs, The home owner can check the water line for leaks with an air compressor. If the lines hold pressure he could pressurize them with a neighbors water through a hose connection. There maybe leaky valves that can be replaced or repaired so that when the utility shoes up there are no suprises. If the homeowner is not skilled enough to take these steps a licensed plumber will do it for much less than utility . The utility should be required to accept the plumbers report on the condition of the plumbing and be released from any liability for water damage from leaks.