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SKP Lawsuit settled
Thelma Grimes
San Pedro Valley News-Sun
Approving an agreement that will cost the city more than $342,500, the Benson City Council Monday officially settled a lawsuit with the SKP Saguaro Co-op of Arizona, Inc.
The council had been discussing details to the proposed settlement out of the public's eye for the last month. City Attorney Ann Roberts had refused to provide the News-Sun a copy of the proposed settlement until Monday, after the council officially approved it.
Since the co-op claimed the city had overcharged park residents for water and sewer since 1994, the city agreed to repay park members $85,000 as future credits toward utility bills over the next 10 years. The credit will be paid at $8,500 per year with no interest.
The city will also resume responsibility of improving Saguaro Drive, which serves as an entrance to the park located off State Route 80. Before the city agreed to take it over, SKP estimated the costs to improve the road to be $100,000.
The city will also be waiving development and impact fees as the park expands. The value of the waiver is worth $150,000.
The city also agreed to waive $7,500 in attorney's fees awarded to the city by Cochise County Superior Court Judge Stephen Desens.
Desens ruled SKP Park would be responsible for the attorney's fees after he dismissed the case last February. At the time, Desens granted the city's motion to dismiss the case entirely, citing the one-year statute of limitations.
At the time, Roberts said the lawsuit had no merit.
SKP Park then filed an appeal, which is when the city agreed to settle. SKP Park claims it is a recreational RV park, and the city should not be charging residential water and sewer fees.
In the settlement, the council agreed to charge the park for sewer services as a commercial or multi-family residential customer under the provisions of the Benson City Code. Accordingly, the park shall be charged a monthly sewer availability fee based on the size of the two water meters servicing the park.
Mayor George Scott has said settling not only takes care of the lawsuit, but also saves the city the cost of attorney's fees. Scott said if they fought the issue through appeals court it could take years to settle.
San Pedro Valley News-Sun
Approving an agreement that will cost the city more than $342,500, the Benson City Council Monday officially settled a lawsuit with the SKP Saguaro Co-op of Arizona, Inc.
The council had been discussing details to the proposed settlement out of the public's eye for the last month. City Attorney Ann Roberts had refused to provide the News-Sun a copy of the proposed settlement until Monday, after the council officially approved it.
Since the co-op claimed the city had overcharged park residents for water and sewer since 1994, the city agreed to repay park members $85,000 as future credits toward utility bills over the next 10 years. The credit will be paid at $8,500 per year with no interest.
The city will also resume responsibility of improving Saguaro Drive, which serves as an entrance to the park located off State Route 80. Before the city agreed to take it over, SKP estimated the costs to improve the road to be $100,000.
The city will also be waiving development and impact fees as the park expands. The value of the waiver is worth $150,000.
The city also agreed to waive $7,500 in attorney's fees awarded to the city by Cochise County Superior Court Judge Stephen Desens.
Desens ruled SKP Park would be responsible for the attorney's fees after he dismissed the case last February. At the time, Desens granted the city's motion to dismiss the case entirely, citing the one-year statute of limitations.
At the time, Roberts said the lawsuit had no merit.
SKP Park then filed an appeal, which is when the city agreed to settle. SKP Park claims it is a recreational RV park, and the city should not be charging residential water and sewer fees.
In the settlement, the council agreed to charge the park for sewer services as a commercial or multi-family residential customer under the provisions of the Benson City Code. Accordingly, the park shall be charged a monthly sewer availability fee based on the size of the two water meters servicing the park.
Mayor George Scott has said settling not only takes care of the lawsuit, but also saves the city the cost of attorney's fees. Scott said if they fought the issue through appeals court it could take years to settle.
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