AGENDA #5f

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Response to a Petition from the Meadowmont Community Association Concerning Stormwater Management Utility Fees

DATE:             February 14, 2005

INTRODUCTION

This report responds to a petition dated January 7, 2005, from Ms. Yvonne Mendenhall, Chair of the Meadowmont Community Association Board of Directors.  A copy of the petition is attached.

The petition states that Meadowmont property owners pay a fee to their owners’ association for the maintenance of stormwater management facilities in the Meadowmont development and that an additional fee has subsequently been assessed to owners as a result of the Town’s Stormwater Management Utility Ordinance. The petition requests that the Town grant a 100% credit or exemption for the Stormwater Management Utility fees assessed to the Meadowmont Community Association.

The fees assessed by the owners’ association are used specifically for the operation and maintenance of private stormwater management systems and facilities located on private property and/or in private easements within the Meadowmont development.  The fees assessed by the Town’s Stormwater Management Utility cannot be used in support of private systems and facilities and can be used only for resources and activities associated with the Town’s stormwater management program and involving public systems and facilities on public land or within dedicated public easements.

Under the existing Stormwater Management Utility Ordinance, there are no means for issuing either credits or exemptions for stormwater management fees.  Therefore, we recommend that the Council defer further consideration of the Meadowmont Association’s petition until such time that a decision has been made regarding establishment of a credit system for stormwater management fees.

BACKGROUND

On June 14, 2004, the Town Council enacted the Stormwater Management Utility Ordinance. The Ordinance established fees based on impervious surface area ($39 per year per 2000 square feet or fraction thereof) to provide funds for the operation of a comprehensive, community-wide stormwater management program.

Since the enactment of the Ordinance, the Town has received inquiries and requests-for-assistance from citizens and businesses concerning stormwater fees. The inquiries are generally within the following categories:

1) General requests for information regarding the area and location of impervious surface area on a property.

2) Appeals requesting recalculation of identified impervious surface area on a property.

3) Appeals requesting re-evaluation of existing conditions on a property, typically for the purpose of identifying potential credits or exemptions.

In responding to these requests and appeals, we have identified and corrected billing errors where appropriate. These errors have typically involved incorrect identification/calculation of impervious surface area or incorrect location of property boundary line(s). As these quality control issues come to our attention, we are developing applicable protocols to ensure that similar issues are handled promptly and consistently in the future.

DISCUSSION

The Meadowmont Community Association petition falls under category 3 above, involving requests for credits or exemptions.  Section 23-10, Credits and Exemptions, of the Stormwater Management Utility Ordinance states: “Credits against stormwater management utility service charges are an appropriate means of adjusting fees, rates, rentals, charges, fines, and penalties under some circumstances, to account for applicable mitigation measures. Credit mechanisms may be established by the Town Council and, if established, the means and measures for identifying, issuing and obtaining credits will be provided in a Credit Manual approved by the Town Council”.  

The Town Manager’s June 14, 2004 memorandum recommending enactment of the Stormwater Management Utility Ordinance notes that the issue of establishing a credit system would be explored during the first year of the program and that recommendations would be provided for the Council’s consideration.

With regard to exemptions, the ordinance states that no exemptions will be allowed with the exception of public road rights-of-way that have been conveyed and accepted for maintenance by North Carolina Department of Transportation or the Town of Chapel Hill, and railroad rights-of-way.

We intend to discuss the issue of credits with the Stormwater Management Utility Advisory Board this spring, and we will provide recommendations for the Council’s consideration prior to the next billing cycle.

CONCLUSION

Under the existing Stormwater Management Utility Ordinance, there are no means for issuing either credits or exemptions for stormwater management fees. Therefore, we recommend that the Council defer further consideration of the Meadowmont Association’s petition until such time that a decision has been made regarding establishment of a credit system for stormwater management fees. If such a system is established by the Council, we would evaluate the Association’s petition based on the Council-approved credit criteria and we would return to the Council with our recommendations.

Until such time that a stormwater management fee credit system is authorized by the Town Council, we believe that all owners of property within the stormwater management utility service area are required to pay the applicable fees in accordance with criteria set forth in the Ordinance.

ATTACHMENTS

1. Petition from Ms.Yvonne Mendenhall, Chair, Meadowmont Community Association

(p. 4).