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Posted: September 05, 2019
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF091119 09

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign Amendment to Agreement for Utility Relocation Between the City of Rapid City and Black Hills Power, Inc. for Reimbursement of Power Transmission/Distribution Line Relocation Costs for the Civic Center Expansion Project No. 18-2452

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
09/11/2019
City Council Hearing Date:
09/16/2019
Staff Contact:
Joel Landeen, City Attorney; Craig Baltzer, Civic Center Director
Agenda Item Summary:
On July 1, 2019, Council approved the Agreement with Black Hills Power for relocation of its utilities to accommodate the Civic Center Expansion Project. After approval of the agreement, Black Hills Power contracted to relocate its utility infrastructure, and that work is substantially complete. While the City and BPH negotiated while drafting the agreement to include federal tax charged on the City’s payment to Black Hills Power, that amount was inadvertently omitted from the Agreement. The Agreement also did not include the City’s payment of state excise tax which would be charged for BHP’s work. This Amendment adds in those amounts for federal tax and state excise tax to the City’s payment to Black Hills Power.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
The funding source is the Vision Account. The relocation is included in the budget for the Civic Center expansion project.

Recommendations:

Origination Recommendation Action:
Approve
Published in 2019 - LF Agenda Items

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