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Posted: March 05, 2021
Rapid City
Agenda Item Summary

Agenda Item Ref. #: WS031021-13

Agenda Item Title:

Authorize Mayor and Finance Director to Sign Resolution 2021-018 Repealing Utility Construction Fees for Nonconforming Services Lines by Repealing Resolutions Nos. 2010-106, 2010-164, 2011-001, 2012-132, 2013-031, 2014-086, AND 2014-087.

Origination Group:
City Council Working Session
Origination Meeting Date:
City Council Hearing Date:
Staff Contact:
Nicole Lecy
Fulton Street, 12th Street, 9th Street, 6th Street, Tomahawk Drive
Agenda Item Summary:
In discussions with the City Attorney’s Office, utility construction fees cannot be charged until a resolution is adopted by Council, and also cannot be charged retroactively. Additionally, all lots benefiting from the construction of new water or sewer mains must be included in the fee calculation, and therefore lots already fully developed and already connected to City water or sewer become unrecoverable. In the past, the City has imposed some construction fees on properties which were already connected to City water or sewer through non-conforming service lines. Prior to an ordinance revision in 2015 properties with non-conforming water and sewer services were required to pay a fee when connecting to a new conforming public water or sewer main. After an ordinance revision in 2015, the financial responsibility for properties that had been connected to City water or sewer by a non-conforming main was eliminated as those properties had been connected and contributing to the water and/or sewer enterprise funds. Approval of this resolution will repeal construction fee for properties that are already connected and the fees cannot be collected. The original resolutions creating these fees that are to be repealed this this action are attached for reference.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center