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Westminster staff propose modernizing right-of-way fees, cite roughly $600,000 funding gap
Summary
City staff told council that current right-of-way permit fees are insufficient to fund permit administration, inspections and traffic-control review; staff estimated a funding gap of about $600,000 and proposed adding inspection and traffic-control plan-review fees as part of the 2027 budget process.
Paul Knippel, public works and utilities director, told the council that "the current right-of-way permit fees are insufficient" to protect pavement life and to fund the inspection and follow-up work needed after utility or contractor cuts in the roadway.
Knippel explained that right-of-way permits cover construction and repair work in the public right-of-way (directional drilling, potholing, street cuts, sidewalk or utility work). Staff said the permits and follow-up inspections are intended to preserve pavement life, reduce impacts to residents and ensure proper restoration after excavations. Knippel told the council staff estimate a funding gap of around $600,000 to provide sufficient resources for permit processing, inspections and enforcement.
Staff described the city's current and proposed fee elements in plain terms: an administrative/permitting fee (currently discussed at $50), a potholing fee (about $200 per pothole), and a street-cut fee (roughly $150 for a 10-by-10 cut, presented as an example). Staff proposed to add a dedicated inspection fee for in-field inspection work and a traffic-control plan review fee to cover staff time that reviews lane-closure, signage and flagger plans. Paul Knippel said the intent is to align cost responsibility with the parties creating the impact (contractors and utilities), not to shift fees onto residents.
Councilors asked practical questions. Mr. Canfield and Knippel said franchise agreements (such as for long-standing utility franchises) have separate terms and payments and should not be upended by these permit adjustments; Knippel said franchise companies operating under existing agreements will continue to pay under their contracts. Council members also asked whether city-owned projects would be charged; staff said permit documentation should be issued for city activity but that internal charging policies could differ.
Knippel compared neighboring cities' charges and said Westminster is at the lower end of a range staff collected: staff cited comparable pothole/repair fees in nearby cities in the $320–$645 range, while Westminster's baseline examples were presented closer to $250. Council and staff agreed that staff would bring a concrete proposed right-of-way fee modernization back to council for incorporation into the 2027 budget and that staff would return with more information on June 15.
The discussion was informational; no ordinance or fee ordinance was adopted at the meeting. Staff will prepare a proposal with recommended fee schedules and impacts for council consideration in the upcoming budget process.
