AGENDA #4j

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Revisions to the Stormwater Management Utility Ordinance

 

DATE:             March 7, 2005

 

 

The attached ordinance revisions would amend Sections 23-3, 23-7, and 23-8 of the Town Code of Ordinances to clarify and/or supplement billing procedures described in the Stormwater Management Utility Ordinance.  The Town Manager recommends enactment of the ordinance.

 

BACKGROUND AND DISCUSSION

 

On June 14, 2004, the Town Council enacted an ordinance establishing a Stormwater Management Utility and a Stormwater Management Utility Advisory Board.  Section 23-3, Definitions, defines terms included in the Stormwater Management Utility Ordinance.  Section 23-7, Schedule of Fees and Charges, establishes the utility’s billing unit (Equivalent Rate Unit) and fee rate. Section 23-8, Billing and Collection, describes the billing method, delinquency procedures, and appeals process.

 

The stormwater management utility fee was included on Orange County property tax bills mailed to property owners in August 2004.  Payment was due on or before January 5, 2005.  We have identified the following ordinance revisions intended to resolve questions and issues that arose during this initial billing cycle:

 

1.         The proposed revisions to Section 23-3, Definitions, include additional terms with definitions to clarify the intent and meaning of certain provisions of the Ordinance.  The proposed terms are: “Customer”, “Easement”, “Governmental unit”, “Lot”, “Owner”, “Person”, and “Real property”.

 

2.         The proposed revisions to Section 23-7, Schedule of Fees and Charges, are intended to clarify that the property owner of record on January 1st of each year is responsible for payment of the stormwater management fee and that the period covered by the annual fee is based on the calendar year.  It further clarifies that the fees are intended for use in the fiscal year.  These revisions are consistent with property tax billing procedures used by the Orange County Revenue Department.

 

3.         The proposed revisions to Section 23-8, Billing and Collection, respond to questions and procedural issues associated with billing for impervious surface area within townhouse and condominium developments where the existence of multiple ownership, owners’ associations, and common areas are not adequately addressed in the current Ordinance language.

 

Depending on the legal structure of property ownership within townhouse and condominium developments, we believe that the applicable stormwater management fees can be equitably billed in any of the following ways:

 

a.      The total fee for the development can be divided by the total number of units, and each unit owner would receive an equal bill.

b.    The total fee can be billed to an owners’ association or designated agent.

c.     The total fee can be apportioned and billed to unit owners based on the interior square footage of each unit as a percentage of the total interior square footage contained in the entire development.

d.     The fee for commonly owned impervious surface area can be billed to an owners’ association or designated agent; and the fee for individually owned impervious surface area can billed separately to each owner.

 

Method a. would be the default procedure for billing townhouse and condominium developments, however, we would utilize one of the other billing procedures if unanimously requested by owners of property within a development; or if requested by an owners’ association on behalf of individual property owners within a development.

 

4.         We also propose a revision to Section 23-8 that would clarify that the stormwater management fee for impervious surface area contained within easements (such as greenway trails, bikeways and pedestrian paths) would be billed to the person or entity responsible for the construction and maintenance of the impervious surfaces in the easement, not necessarily to the underlying property owner.

 

5.         Section 23-8 would further be revised to specify the date the stormwater fees are due and payable.

 

6.         Finally, we propose revising Section 23-8 to specify that the Town Manager has discretionary authority with regard to the assessment of penalties and the time allowed for appeals when situations such as billing errors, incorrect addresses, or processing delays warrant relief in the opinion of the Town Manager.

 

The Stormwater Management Utility Advisory Board discussed the proposed ordinance amendments at its February 22nd meeting.  The Board recommended an additional clarification, which has been incorporated in the proposed amendments.  With this clarification, the Board unanimously recommended approval of the ordinance amendments.

 

We believe that the proposed revisions maintain the intent of the Stormwater Management Utility Ordinance while clarifying and/or supplementing procedures and responsibilities included in the Ordinance.

 

MANAGER’S RECOMMENDATION

 

The Town Manager recommends enactment of the attached ordinance that would amend Sections 23-3, 23-7, and 23-8 of the Town Code of Ordinances to clarify and/or supplement procedures and responsibilities included in the Stormwater Management Utility Ordinance.

 

AN ORDINANCE AMENDING CHAPTER 23 OF THE CODE OF ORDINANCES ON THE STORMWATER MANAGEMENT UTILITY ORDINANCE (2005-03-07/O-8)

 

BE IT ORDAINED by the Council of the Town of Chapel Hill as follows: 

 

Section 1.  Section 23-3 of the Town Code is hereby revised by adding the following terms and definitions in the proper alphabetical listing location.

 

“Customer shall mean the person or entity to which the stormwater fee is billed.”

 

“Easement shall mean a grant of rights by a property owner to a portion of land for a specified purpose as defined in a recorded deed, as delineated on a recorded plat, or as established in another legal document.”

 

“Governmental unit shall mean a city, county, school administrative unit, sanitary district, fire district, the State, or any other public district, authority, department, agency, board, commission, or institution.”

 

“Lot shall mean land bounded by lines legally established for the purpose of property division.  As used in this Chapter, unless the context indicates otherwise, the term refers to a zoning lot.”  

 

“Owner shall mean the legal or beneficial owner of land, as shown in the county land records.” 

 

“Person shall mean any person, firm, partnership, association, corporation, company, governmental unit or organization of any kind.”

 

“Real Property shall mean land, tenements, and hereditaments.”

 

 

Section 2.  Section 23-7 of the Town Code is hereby revised to read as follows:

 

“Sec. 23-7.  Schedule of Fees and Charges.

 

(a)         The schedule of fees and charges set out in this section is hereby adopted and shall apply to all zoning lots and tracts within the corporate limits of the Town, except as may be altered by credits or exemptions provided in this Article.

 

(1)    The person who is the owner of record on January 1st of each year of All each zoning lots and tracts of land within the corporate limits of the Town, shall be billed for one (1) Equivalent Rate Unit for each 2,000 square feet or fraction thereof of impervious surface area on the subject zoning lot or tract., except as noted in Section 23-8, ‘Billing and Collections,’ below. 

 

(2)    The first year service charge per Equivalent Rate Unit shall be $39.00.

 

(2)(3) Thereafter, Tthe annual service charge per Equivalent Rate Unit shall be $39.00 per calendar year.  The fees charged under this Section are intended for the fiscal year in which the fees become due.

 

(b)    There will be no service charge for zoning lots or tracts with fewer than 200 square feet of impervious surface area.”

 

Section 3.  Section 23-8 of the Town Code is hereby revised to read as follows:

 

“Sec. 23-8.  Billing and Collection.

 

(a)        Method of billing.  Billing and collection of the Stormwater Management Utility service charges and any other rents, rates, fees, charges, and penalties for stormwater management services and facilities shall be administered by the Town Manager.  Additional guidelines concerning billing may be developed by the Town Manager.

 

(b)        Townhouse, condominium, and similar developments containing impervious surface area in common and individual ownership.  The stormwater fee for townhouse and condominium developments and other similar developments containing impervious surface area in common and individual ownership shall be based on the total impervious surface area of all commonly-owned and individually-owned real property within the development.  The total stormwater fee for the entire development is divided by the number of units to calculate the fee for each unit.  The stormwater fee shall be sent to each unit owner unless the owners’ association has requested one of the fee redistribution options below.  The billing option(s) described in this subsection (b) and in subsection (c) below shall not apply to a detached single-family house, a duplex, or a manufactured home or mobile home located on an individual lot rather than in a manufactured home or mobile home park.  Billing options listed herein may not all be available in some cases depending on the legal structure of ownership.  

 

(c)        Fee redistribution.  Upon official request of an owners’ association reflecting a vote in accordance with the association’s bylaws, the stormwater fee for townhouse and condominium developments may be redistributed using one of the options listed below.  A request for fee redistribution shall contain all the information required by the Town and shall be binding for the period of time specified by the Town.  Approved fee redistribution requests shall become effective in the following billing year.

 

1.           Consolidated billing to the owners’ association or designated agent.  The stormwater fee shall be based on the total impervious surface area of all commonly-owned and individually-owned real property within the development and a single bill shall be sent to either the owners’ association or designated agent.

 

2.            Shared billing between unit owners and the owners’ association or designated agent.

 

i.       The stormwater fee for the impervious surface area on commonly-owned real

property shall be calculated and billed to the owners’ association or designated agent.  The remaining impervious surface area contained on individually-owned real property(ies) is summed; the total stormwater fee is calculated and then divided by the total number of units; and the stormwater fee for each unit shall be sent to the unit owner; or 

 

ii.      The stormwater fee for the impervious surface area on commonly-owned real

property shall be calculated and billed to the owners’ association or designated agent. The stormwater fee for the impervious surface area contained on individually-owned real property is calculated and sent to the property owner.

 

3.           Proportional billing to unit owners.  The stormwater fee shall be based on the total impervious surface area on all commonly-owned and individually-owned real property within the development.  The total stormwater fee for the entire development is divided proportionally among the units, based on each unit’s interior floor area as a percentage of the total interior floor area within the development as a whole.  The stormwater fee for each unit shall be sent to the unit owner.

 

(d)    Easements.  Stormwater fees for impervious surface area contained within an easement outside a public street or highway shall be billed to the person or entity responsible for the construction and maintenance of the impervious surfaces within the easement.

 

(b)(e)Delinquencies.  Stormwater Management Utility service charge billings or other billings

          for rents, rates, fees, charges, and penalties associated with the Stormwater Management

Utility are due and payable on September 1 of the fiscal year for which the fees are charged.  Stormwater fees shall be declared delinquent if not paid on or before January 5 of the year following the year that billings are issued.  Delinquent billings shall accumulate additional penalties at the rate of 2% for the month of January, and ¾ if of 1% for each month thereafter.  This penalty shall be termed a delinquent payment penalty charge.  The Town Manager shall have discretionary authority with regard to the assessment of penalties and the time allowed for appeals when situations such as billing errors, incorrect addresses, or processing delays warrant relief in the opinion of the Manager.

 

(c)(f)Appeal of disputed bills and adjustments.  If any citizen customer wishes to dispute a

stormwater utility service charge billing or any other rents, rates, fees, charges, or penalties adopted pursuant to this Article, that citizen customer must submit a written appeal within 60 90 days of receipt of the billing, stating the reasons for the appeal, and providing information pertinent to the calculation of the billed charge.  A timely appeal shall stay the penalty deadlines.  An appeal of a disputed bill shall be filed with the Town’s stormwater manager for review and disposition.  If the citizen customer is not satisfied with the disposition of the appeal, the citizen customer may further appeal the disputed charge to the Town Manager or his designee who shall make the final ruling on the validity of the appeal. 

(d)(g)Collection of delinquencies: The administrative remedies provided in this chapter shall be

exhausted before recourse to a court of competent jurisdiction.”

 

Section 4.  This Ordinance is effective upon enactment.

 

This the 7th day of March, 2005.