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Brookings council authorizes bulk water purchase agreement with Rainbow Rock Service Association
Summary
Council approved a bulk water purchase agreement allowing Rainbow Rock Service Association to tap an existing hydrant, pay SDCs (about $27,000) and infrastructure costs, and indicated possible future annexation for wastewater services; staff, Rainbow Rock’s president and councilors discussed capacity and rate discount provisions.
The Brookings City Council voted Feb. 26 to authorize a bulk water purchase agreement with Rainbow Rock Service Association, allowing the association to tap an existing hydrant rather than requiring the city to install new main, and obligating Rainbow Rock to pay required infrastructure costs and system development charges (SDCs).
City staff summarized an eight-year negotiation and said the arrangement would let Rainbow Rock access potable water via an existing tapping point; staff said the association will pay the SDCs (approximately $27,000) and cover the infrastructure needed to connect. Staff also described a negotiated out-of-city rate that includes a roughly 15% discount compared with in-city commercial rates; the city manager said the discount is modeled on practices used by neighboring communities.
Councilors asked about capacity and potential impacts on in-city customers. Staff responded that peak-season modeling indicates roughly half the city’s capacity would remain in August peak conditions and that rationing and termination provisions are included in the agreement to protect city service levels. The Rainbow Rock Service Association’s president thanked the council for its consideration and for city staff engagement over the years.
The agreement also leaves open a separate, future conversation about wastewater service: staff said any discussion of providing wastewater treatment services would require annexation and a separate negotiation. Council moved and authorized the city manager to sign the water purchase agreement; the motion carried by recorded affirmative votes at the meeting.
What’s next: Staff will finalize the agreement documents and coordinate with Rainbow Rock on infrastructure installation and SDC payment; annexation and wastewater service remain subject to future council decisions and separate approvals.
