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Posted: September 06, 2019
Rapid City
Agenda Item Summary

Agenda Item Ref. #: PW091019-15

Agenda Item Title:

Resolution No. 2019-080 Amending the Policy of the City of Rapid City to Defray the Cost of Cleaning of Property Damaged by Sewer Backups

Origination Group:
Public Works Committee
Origination Meeting Date:
09/10/2019
City Council Hearing Date:
09/16/2019
Staff Contact:
Joel Landeen, City Attorney
Agenda Item Summary:
Staff has reviewed the current policy to help defray the cost of cleanup for property owners who have experienced a sewer backup. Staff is recommending the policy be updated to increase the amount paid to property owners to $4 per square foot and remove the requirement that a property owner have a professional cleaner perform the work in order to be reimbursed. While these recommendations address some of the concerns raised by property owners, concerns related to being reimbursed for property damage are not addressed. Staff is not recommending the policy be changed to include property damage, or eliminate the requirement that property owners receiving a payment under the policy must sign a release of any additional claims. While City staff recognizes how expensive and horrible a sewer back up is for someone to experience, changing the policy to pay for property damage would result in a significant expense that would either necessitate an increase in rates to cover the cost, or a significant cut in projects which would ultimately exacerbate the issue. A review of how other communities handle a sewer back up demonstrates that even without paying for property damage, Rapid City’s policy is one of the more generous in the region. I have attached a memorandum which covers this issue in more detail.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Funding Source & Fiscal Impact Notes:
The reimbursement will continue to come out of the operational budget of the sewer and water enterprise fund. While staff has not conducted a detailed analysis of the fiscal impact, based on the number of back up events and the general cost, staff is comfortable the fund can absorb these changes.

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Action: Approve the two recommended changes. Notes: In addition to deciding on approving the two changes, you will also need to address whether you want them to apply retroactively and if so, how far back you should go.
City Council Options:
In addition to approving the recommended changes, you could consider making additional changes based on the comments by those impacted. The main suggestions are allowing customers who have a back up to collect the cleanup reimbursement without waiving any damages claims, and/or paying for property damage in addition to helping with cleanup costs.
Published in 2019 - PW Agenda Items
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