Department of Utilities
Reference: Mile High Flood District (MHFD) IGA Regarding North Outfall Phase III
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: November 18, 2025
PURPOSE
Requesting City Council’s approval of a resolution authorizing the City Manager, or designee, to execute an intergovernmental agreement (IGA) between the City and MHFD regarding the North Outfall Phase III.
BACKGROUND
This item was originally presented to City Council at the December 9, 2025 City Council Study Session.
The North Outfall system is a regional drainage system that serves the area near Bridge and Telluride Streets. Runoff carried by the system originates from the Bridge Street Widening improvements, Preserve Subdivision, Pheasant Ridge Subdivision, Eagle Ridge Academy, and, in the future, from the Rec Plex.
The City has designed and constructed portions of the North Outfall over many years in numerous phases. There are two remaining phases of the project that remain:
• North Outfall Phase III: connection from regional detention and water quality pond at Eagle Ridge Academy to Bridge Street
• North Outfall Phase IV: connection of Rec Plex to regional pond at Eagle Ridge Academy
Both of these remaining phases are being design and constructed as part of the Rec Plex project. Per the IGA, MHFD will reimburse the City for design and construction of a portion of Phase III that is regional and master planned.
MHFD will contribute $75,000 in 2025 to reimburse the City and is anticipated to contribute an additional $600,000 in 2026 as reimbursement. The IGA will be amended for any additional contributions above the $75,000 for 2025. The City’s Rec Plex project will cover the remainder of the design and construction costs for the outfall and is responsible for procuring a contractor for construction. The City will also be responsible for construction management, which has always been anticipated as a part of the Rec Plex project.
FINANCIAL IMPACT
Sufficient appropriation exists in the 2025 and 2026 budget for the City’s contribution to the project as defined in the IGA.
STAFF RECOMMENDATION
City staff recommend approval of the resolution as drafted, authorizing the City Manager, or designee, to execute the reimbursement agreement.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution
• Final IGA
• PowerPoint presentation