A. Determination: The Purchasing and Property Management Division will determine reasonable and necessary fees for encroachments on the public right-of-way. Such fees will reflect the size of the encroachment, surface, subsurface or aerial use, as well as market interest rates.
B. Market Value: The market value for the area of encroachment shall be determined by using the appraised value of the abutting property. The right-of-way shall have the same utility value as that of the abutting property.
C. Appraisal Waiver: The City may waive the appraisal requirement when the value of the encroachment area has been determined to be less than the cost of appraising the property. In such cases, the Salt Lake County assessment or other comparable values may be applied, if the values are within the market value for the general geographic area.
D. Market Rate Of Interest: The market rate of interest will be established annually by the Purchasing and Property Management Division.
E. Increases, Decreases: The City reserves the right to increase or decrease the annual fee for encroachments on the public right-of-way. Fee increases or decreases will be applied to new encroachment permits and existing permits as they are renewed.
F. Encroachment Without Agreement: If an encroachment is made under, on or over a public right-of-way without first having obtained a written agreement, an assessment equal to the first year's lease payment shall be required in addition to the annual payment, prior to the issuance of a subsequent written agreement. (2019 Compilation)