Development Fees

Review of Development Fees Timeline

Previously reported – February 2018

North Carolina General Assembly – House Bill 1730 / S.L. 2004-96
Enacted on 07/13/2004
Gives us the authority to impose sewer fees
For more information » click here

Holden Beach Sewer Treatment Fee
For more information » click here

House Bill 436 / Public Water and Sewer System Development Fee Act
Enacted on 07/20/2017
Eliminates the authority to charge the sewer fee
Authority to impose fees has been modified
Necessitates us having to retool water and sewer fee rate schedule
Recommends it be prepared by licensed professional engineer
Town must comply not later than July 1, 2018
Town Manager plans to commission McGill and Associates to develop rate schedule
For more information » click here

Previously reported – April 2018
McGill and Associates has prepared the System Development Fees Report for the Town. The report was posted to our website on March 26th and written comments were solicited. The report must be posted for at least 45 days.

In accordance with §162A-209, after expiration of the posting period, the Board needs to hold a public hearing prior to considering the adoption of the analysis. We recommend the Board schedule the public hearing for May 14th.

System Development Fees Report
Click here to view the System Development Fees Report prepared by McGill and Associates in accordance with HB 436. Written comments on the report may be sent to heather@hbtownhall.com. Comments will also be accepted by mail at Town of Holden Beach, Attn: Heather Finnell, 110 Rothschild Street, Holden Beach, NC 28462. The Board will schedule a public hearing prior to considering the adoption of the analysis. Information on the public hearing date will be provided when available.

Previously reported – May 2018
In accordance with §162A-209, after expiration of the posting period, the Board needs to hold a public hearing prior to considering the adoption of the analysis. The Board has scheduled to hold a Public Hearing on May 23rd at 1:00pm

Notice of Public Hearing
The Board of Commissioners of the Town of Holden Beach will hold a Public Hearing on May 23, 2018 at 1:00 p.m. or shortly thereafter in the Town Hall Public Assembly, 110 Rothschild Street, Holden Beach, NC 28462 to hear a presentation on the study of System Development Fees that could be levied by the Town. This hearing, the study and the presentation are in accordance with NC Administrative Code 15A NCAC 18C.0409 and 15A NCAC 02T.011. McGill Associates will present the study results which is posted on our website. Click here to view the study. All interested people are invited to attend.

Previously reported – June 2018
Agenda Packet –
Legislation House Bill 436 required a Public Hearing as one of the steps that must happen before the Town can move forward and implement the charges. HB436 is prescriptive, with precise instructions and the report given is in accordance with the legislation. The next steps are adoption of the study report and creating Ordinance that incorporates the recommended fees into a fee schedule. This process must be completed no later than July 1st. We are required to review the fee schedule and must reevaluate it in a maximum five-year timeframe.

RESOLUTION 18-04 / ADOPTING SYSTEM DEVELOPMENT FEES REPORT
RESOLUTION 18-05 / AMENDING THE HOLDEN BEACH FEE SCHEDULE

Fee Schedule / Water and Sewer System Development Fees

  1. Equivalent Residential Unit (ERU) Capacity Fees- based on a three-bedroom single family dwelling, NC Administrative Code 15A NCAC 18C.000409 & 15A NCAC 02T.0114 and McGill Associates Cost Justified Water and Wastewater System Development Fees Report Capacity dated March 2018.
    . a. Water Capacity Fee = $5,792 ($14.48 per gallon per day)
    . b.Sewer Capacity Fee= $14,785 ($41.07 per gallon per day)
  1. Residential capacities above/below the rated three-bedroom ERU in para 1 above shall be calculated and fees assessed on a pro rata per bedroom basis using the applicable Administrative code and the McGill Report as guide.
  1. Vacant lots that have never been connected to the Town’s sewer system will be credited in an amount equal to the sewer capacity fee for one ERU (3 bedrooms); however, no credit shall be provided for said vacant lots that have not paid sewer share fees to the Town of Holden Beach as previously authorized by Town of Holden Beach Ordinance 02·13 dated 10-14-02 “Chapter 52-04-Share Fees”
  1. Vacant lots that have been previously connected to the Town’s water and sewer systems and are being redeveloped will be credited in an amount equal to the prorated amount of water and sewer capacity fees in para 1 above per bedroom based on the actual number of bedrooms previously connected. The Town of Holden Beach Building Inspector may use any and all public information available to ascertain the number of bedrooms to use for the credit.
  1. Water and sewer service capacity requirements (gallons per day) for other than residential dwellings shall be determined in accordance with the applicable NC Administrative Code referenced above and fees calculated as follows:
    .
    a. Water Capacity Fee= Required gallons per day multiplied by $14.48 per
    . b.
    Sewer Capacity Fee= Required gallons per day multiplied by $41.07 per gallon.
    . c.
    Fee calculations for water and sewer capacity fees based on changes in uses of a property that cause capacity usage changes will provide for determining a credit for the existing use water and sewer capacity charges against the new uses’ water and sewer capacity requirements as established by the NC Administrative Code referenced above.
  2. Sewer Capacity charges and credits shall be calculated and collected at the time a building permit is applied for.

TOWN OF HOLDEN BEACH / RESOLUTION 18-04
RESOLUTION ADOPTING SYSTEM DEVELOPMENT FEES REPORT

WHEREAS, Session law 2017-138 (House Bill 436) known as the “Public Water and Sewer System Development Fee Act” sets certain standards and limitations before a town may adopt a system development fee for water and sewer service; and

WHEREAS, said Act requires that a system development fee be established only after written analysis prepared by a qualified financial professional or qualified licensed professional engineer in a manner as set forth in said Act; and

WHEREAS, the Town of Holden Beach has retained McGill Associates, a qualified and licensed professional engineer and consulting firm, to perform said analysis in accordance with said Act; and

WHEREAS, McGill Associates has performed said analysis and delivered a written report to the

Town of Holden Beach pursuant to said Act; and

WHEREAS, the Audit Committee of the Town of Holden Beach has reviewed the report and had no comment other than it appeared to be accomplished in accordance with the Act; and

WHEREAS, the analysis has been posted on the Town’s website as required in said Act and a public hearing has been held as required in said Act; and

WHEREAS, all other conditions, standards and requirements of said Act has been satisfied.

NOW THEREFORE BE IT RESOLIVED by the Holden Beach Board of Commissioners that the Town hereby adopts and approves the Cost-Justified Water and Wastewater System Development Fees Report created by McGill Associates, dated March 2018.
A decision was made – Approved unanimously

TOWN OF HOLDEN BEACH / RESOLUTION 18-05
RESOULUTION AMENDING THE HOLDEN BEACH FEE SCHEDULE

WHEREAS. the Town of Holden Beach Board of Commissioners adopted the Cost-Justified Water and Wastewater System Development Fees Report created by McGill Associates, dated March 2018; and

WHEREAS, the Holden Beach Fee Schedule needs to be updated to reflect the recommendations in the Report.

NOW THEREFORE BE IT RESOLVED, that the Board of Commissioners of the Town of Holden Beach, North Carolina does hereby approve the deletion of the Impact Fees and the Share Cost sections and the addition of the Water and Sewer System Development Fees (Attachment 1) to the Holden Beach Fee Schedule.
A decision was made – Approved unanimously

Previously reported – July 2018
RESOLUTION 18-04 / ADOPTING SYSTEM DEVELOPMENT FEES REPORT
RESOLUTION 18-05 / AMENDING THE HOLDEN BEACH FEE SCHEDULE

Fee is based on combination of existing system capacity and planned capital improvements to expand capacity

An unintended consequence of System Development Fee adopted in June
.
Seven (7) bedroom permit was $10,000 now costs $30,000 a difference of $20,000
. • Five (5) bedroom permit was $7,000 now costs $21,000 a difference of $14,000

That’s a whapping 300% increase which will negatively impact new construction on the island. By comparison, Ocean Isle Beach had a minor increase since their system is older and already paid for. I’d expect to see both the General Contractors and the Realtors up in arms. Unchanged we will have significantly reduced the future revenue stream from new construction from both our Ad Valorem and Occupancy taxes. Really don’t see how the Board doesn’t have to reevaluate the fee schedule.

Town Attorney Noel Fox walked them through the prescriptive legislation and all the protocols that were followed which was a lengthy and complicated procedure. Most of the community including contractors and realtors were unaware of the significant fee increase. Based on what was presented to the public, a reasonable case could be made that posting System Development Fees without any explanation given as to the effect on construction cost is why no one questioned the report or even knew the building permit fees would be impacted. Although the process was followed as required, they are now aware that people who needed to know didn’t. Thus, the brouhaha. In an attempt to address any misunderstanding, the Board submitted some thirty (30) questions for the Town Manager to complete and post on the Town website. It appears that they are at least willing to give it a second look. They were elected, and it is strictly their call whether to make an adjustment or not. I got the feeling that the Board took umbrage to some of the comments that were made, particularly a lack of understating what the fee schedule change would actually translate to in dollars and cents. In addition, they questioned the negative economic impact that was suggested by some of the speakers. If in fact they decide to reduce the development fee it was established that they can’t make it retroactive.

 


This Board –
. 1)
chose to implement the max recommended fee schedule
. 2)
did not adequately consider whether the increased fee would “unduly burden new development”

Previously reported – August 2018
Water and Sewer System Development Fee
The North Carolina General Assembly passed House Bill 436 in July 2017, amending Chapter 162A of the General Statutes by adding “Article 8, System Development Fees.” This amendment was enacted as “An Act to Provide for Uniform Authority to Implement System Development Fees for Public Water and Sewer Systems in North Carolina and to Clarify the Applicable Statute of Limitations.” in HB436, which requires compliance with designated calculation methodology by July 1, 2018.

In response to the House Bill 436, the Town of Holden Beach retained McGill and Associates to complete a system development fee analysis. Based on the Town of Holden Beach’s combination of existing system capacity and planned capital improvements to expand capacity, the development fee, in accordance with HB 436 rules for an Equivalent Residential Unit (ERU) for water and sewer was calculated to be $20,577. ERU is defined as the water and sewer capacities required to serve the most typical user type, which is a three-bedroom single-family dwelling.

McGill Associates has calculated costs for water and wastewater capacity on a per gallon per day basis for the Town of Holden Beach. This calculation was performed using the Combined Method to account for the Town’s combination of existing capacity and planned future capacity expansion through capital expenditure. This calculation resulted in a development fee of $20,577 for an Equivalent Residential Unit (ERU). ERU is defined as the water and sewer capacities required to serve the most typical user type, which is a three-bedroom single-family dwelling. The fee for other types of development can be calculated by applying the calculated the cost of capacity per gallon of flow per day to the water and wastewater demands for various uses as defined by NC Administrative Code 15A NCAC 18C .0409 and 15A NCAC 02T.0114. Using NC Administrative Code 15A NCAC 18C.0409 and 15A NCAC 02T.0114 ensures that the same standard used to plan, design, construct and finance capital assets is applied as the same cost recovery basis to be applied to new development.

The Town may elect to charge less than the cost-justified System Development Fee documented in this report. Any adjustment must be calculated on a cost per unit volume basis, meaning the same cost per gallon adjustment must be applied equally to all customers.

Repeal the Board’s Previous Vote on Implementation of the Water and Sewer Development Fees

They repealed and replaced the development fee schedule
. 1)
Repealed Resolution 18-05
. 2)
Replaced with the following interim fee schedule:
.
Water Capacity Fee is $100 per bedroom
.
Sewer Capacity Fee is $2,700 per bedroom

A five (5) bedroom in the sewer fee schedule before June 30th was $13,125
A five (5) bedroom in the new interim sewer fee schedule after June 30th is $13,500
A five (5) bedroom in both the old and the new interim water fee schedule is $500
Total cost of $14,000 vs. $13,625, approximately what the fees were before July 1st

For those property owners that already paid their sewer share fee they will get a credit of $2,700 per bedroom up to and including a five-bedroom house; additional bedrooms will be assessed at $2,700 per bedroom

This is an interim fee schedule until they have an opportunity to reevaluate the situation

A decision was made – Approved (3-2)
Vote was three (3) to two (2), no surprise there
Mayor Pro Tem Sullivan and Commissioner Kwiatkowski both voted against the motion

Previously reported – October 2018
Discussion of Activities and Timelines to Re-conduct the Determination of Maximum Sewer and Water System Development Fees and Subsequently Set “Permanent Fees Before the End of 2018 – Commissioner Kwiatkowski

All Pat said is that the interim rates would remain in effect for the next ninety (90) days which takes us into 2019.

No discussion of activities, timelines, or variables being considered were shared with the public.

Previously reported – February 2019

¯\_(ツ)_/¯

This was supposed to be an interim fee schedule
They committed to permanent fees before the end of 2018
Then they said the interim fees would remain in effect for the next ninety (90) days
Well both of those dates have come and gone
A permanent fee schedule has yet to be adopted

Previously reported –September 2019
System Development Fees lawsuit filed on Oak Island
We have filed an Amicus Brief in support of their position
THB will delay activity on our System Development Fees until this has been adjudicated

In split decision, court sides with property owners in Oak Island sewer lawsuit, town plans to appeal
Reversing the decision of the lower court, the Court of Appeals of North Carolina ruled against the Town of Oak Island in a lawsuit raised by property owners of undeveloped lots, despite one judge on the panel dissenting. The issue between property owners and the town dates back to 2015, when owners of undeveloped property on the island filed suit regarding the town’s sewer service fees. Tuesday, Oak Island’s sewer system cost $140 million to install. In 2004, action from North Carolina’s General Assembly allowed the town to charge property owners fees related to the sewer system in order to help reduce the debt the town carried as a result of the sewer installation. The action allows Oak Island to “impose annual fees for the availability of sewer service” on property owners who could or do benefit from the service. From 2010 to 2017, that resulted in developed property owners paying a total of $4,478.57 in fees, while undeveloped property owners would have paid $3,978.08. Additionally, the court pointed out in its ruling that from 2015 to 2017, the owners of undeveloped properties were actually paying more per year than those who owned developed lots. The term “availability” is what the court’s decision ultimately hinged upon, because the plaintiff property owners argued that for those with undeveloped lots, the sewer system is not actually “available” to them. Therefore, they argued, they should not be subject to the fees. They further argued charging undeveloped properties went beyond what the statute establishing the fees allows, and that the collection of the fees was unconstitutional. The appeals court agreed, saying: “although the Session Laws do not define the term ‘availability’ for purposes of imposing the sewer service availability fees, it is clear that the enabling Session Laws do not, as a matter of law, apply to Plaintiffs’ undeveloped property.” Originally, the plaintiffs wanted the court to declare the fees unconstitutional, as well as order the town to refund the fees paid by the owners of the undeveloped properties. In May 2018, when Brunswick County Superior Court Judge James Ammons found in favor of Oak Island, the plaintiffs attempted to change their plea, only asking for the refund. However, the court declined their motion to amend, and instead ruled in favor of Oak Island’s countersuit, therefore upholding the fee structure. As far as those occurrences, the appeals court said it could not weigh in, because the matters were never ruled upon, and therefore couldn’t be appealed. Judge Allegra Collins disagreed with her two fellow judicial colleagues, arguing the opposite with regard to the “availability” language. Collins argues that just because property owners would have to go through the development process in order to connect to the sewer system, doesn’t mean that it isn’t “available” to them. Despite the split decision, the Court of Appeals ruling reverses the ruling and remands the issue back to Brunswick County Superior Court. Town Attorney Brian Edes said in an email Tuesday the town will likely appeal the decision to the state Supreme Court. His statement read: The North Carolina Court of Appeals issued a split opinion today ultimately holding that the subject 2006 N.C. Session Law does not authorize the Town of Oak Island to charge a sewer district fee to owners of undeveloped lots. Naturally, we are disappointed with this holding.
Read more » click here

Previously reported –March 2020
CFPUA wants customer input on proposed system development fee increase
The Cape Fear Public Utility Authority (CFPUA) is looking to raise its ‘system development fees.’ These fees, which new customers pay when they ‘connect’ to the water and sewer system, help fund overall improvements and expansions. The fees have also been cited as a factor in driving up the cost of housing.

New rates have been proposed to come into effect on July 1, 2020, and would increase both the water and sewer system development charges. “The system development charge (or SDC) is the fee that new customers pay to ‘buy-in’ to the water and sewer system. The proposal includes an increase in the water SDC from $1,880 to $1,920 and an increase in the sewer SDC from $1,930 to $2,070,” according to a memo from CFPUA. The rate changes are not yet approved or finalized and CFPUA has opened an online form to receive public comments on the issue.

According to the utility provider, “The objective of CFPUA’s system development charge is to assess new customers their proportionate share of the cost of infrastructure improvements benefitting the new customer that were paid for by past or existing customers.” The logic and reasoning behind the proposed rate change is that new customers drive the need for new infrastructure and using existing customers’ payments to pay for this is not the most equitable way to fund it.

“CFPUA’s SDC calculation seeks to allocate the equity in existing infrastructure assets to new water and sewer customers. “Equity in existing infrastructure” is defined as the assets funded with rate revenues that will benefit new customers less [with] outstanding debt used to acquire or construct those assets,” according to the memo. While the rate increases could potentially hinder future affordable housing construction in the area, CFPUA does have a responsibility to its ratepayers as well to make sure everyone is paying their equal share and hopefully keeping rates low.
Read more » click here

Supreme Court Construes Local Law to Allow “Availability” Fees to be Charged Against Developed Property and Undeveloped Property
Infrastructure fees are a common battleground between landowners/developers and local governments. The Supreme Court decided a case this week that counts as a “win” for the local governments, reversing a Court of Appeals decision. That is, the Supreme Court determined that the unambiguous language of a State law granted to the local government broader powers than the Court of Appeals otherwise thought. Let’s dig in.

The Facts
The Town of Oak Island constructed a sewer system at a cost of $140M. In 2006, the North Carolina General Assembly enacted a local act – which is a State law that relates to one or more local governments – designed to assist the Town in reducing its outstanding debt for the sewer system. The law authorized the Town “to impose annual fees for the availability of sewer service within” its sewer treatment district.

Then Town’s sewer lines run in front of both developed and undeveloped parcels in the district, but the system had the capacity to serve all parcels in the district. Beginning in 2009, owners of developed parcels began paying fees as an additional charge on their monthly sewer bills. Owners of undeveloped parcels began paying fees in 2010, with charges appearing on their real property tax bills.

The Trial Court
In 2015, certain owners of undeveloped property filed suit against the Town challenging the authority to assess the sewer service availability fees against undeveloped properties. In 2018, the trial court granted summary judgment to the Town, which the property owners appealed.

The Appeal
On appeal, the North Carolina Court of Appeals was divided. In a published decision, the majority concluded: “[A]lthough the Session Laws do not define the term “availability” for purposes of imposing the sewer service availability fees, it is clear that the enabling Session Laws do not, as a matter of law, apply to Plaintiffs’ undeveloped property.” The majority determined that the language of the State law was unambiguous, requiring the Court “to give effect to the plain meaning of the statute” and leading the Court to a dictionary definition of “availability” that read: “the quality or state of being available” and ““present or ready for immediate use”. The Court determined that the “complex, costly additional requirements—many of them conditional— that the owner of an undeveloped lot must fulfill in order to benefit from Oak Island’s sewer services foreclose any conclusion that such services are ‘present or ready for immediate use’ by those owners”, such that undeveloped lots did not have the “availability of sewer service” as compared to developed lots; therefore, “annual fees for availability” were not chargeable to the undeveloped lots under State law.

The dissent agrees that the statute is unambiguous and cites to the same dictionary provisions as does the majority, however, the dissent spends more time than does the majority on the Session Law, itself, and reaches a different conclusion as to what “availability” means.

Originally adopted in 2004 (S.L. 2004-96) as applied only to the Town of Holden Beach, the local act was amended in 2006 to apply both to the Town and the Town of Holden Beach. The actual law, as amended, provides: (1) “A municipality may create a fee-supported sewer treatment district for all properties that are or can be served by the sewage collection and treatment plant serving properties within the Town”, (2) “The Town may impose annual fees for the availability of sewer service within the district”, and (3) “Said fees shall be imposed on owners of each dwelling unit or parcel of property that could or does benefit from the availability of sewage treatment”. The dissent focuses on the language of the Session Law, that “fees shall be imposed on owners of each dwelling unit or parcel of property that could or does benefit from the availability of sewage treatment. That is, to the dissent, the statute clearly authorizes the charging of fees to developed property (does benefit) and undeveloped property (could benefit). More to the point, however, the dissent is concerned that the majority’s analysis “would require terms be added to the Session Law, while rendering the terms ‘can be served [,]’ ‘within the district[,]’ and ‘parcel of property that could . . . benefit’ superfluous”, which the dissent notes neglects the judicial duty “not to delete words used or to insert words not used” when construing laws.

The Supreme Court’s Decision
On March 3, 2019, the Supreme Court reversed the Court of Appeals “for the reasons stated in the dissenting opinion”. That is, the Supreme Court agreed with the dissent’s analysis and conclusion regarding the meaning of “availability” and the ability of the Town, pursuant to the local law, to charge sewer system fees to owners of developed and undeveloped properties, alike.
Read more » click here

NC Supreme Court sides with Oak Island in sewer system dispute
North Carolina’s highest court has sided with the town of Oak Island, reversing a lower court’s decision on whether the town has the right to levy sewer fees on undeveloped properties.

The case, which was heard on Feb. 4 with an opinion filed Feb. 28, began when Bobby Boles filed a lawsuit against the town in 2015.

In that suit, Boles argued the town did not have the right to collect the fees established to help offset the cost of the town’s new sewer system — fees made possible by a 2004 action by the North Carolina General Assembly — from the owners of undeveloped properties.

[ In split decision, appeals court sides with property owners ]

From 2010 to 2017, the fee program resulted in developed property owners paying a total of $4,478.57 in fees, while undeveloped property owners would have paid $3,978.08. The appellate court whose decision the supreme court overturned had pointed out in its ruling that from 2015 to 2017, the owners of undeveloped properties were actually paying more per year than those who owned developed lots.

Property owners argued that because their lots were undeveloped and not connected to the sewer system, the sewer service was not truly “available” to them, and therefore they should not be required to pay the fees.

The Court of Appeals ruled in a split judgment on May 2, 2018, in favor of the property owners, but that result has now been reversed. The reversal was just one page and says: “We reverse the decision of the Court of Appeals for the reasons stated in the dissenting opinion.”

Judge Allegra Collins disagreed with her two fellow judicial colleagues, arguing the opposite with regard to the “availability” language.

Collins argued that just because property owners would have to go through the development process in order to connect to the sewer system, doesn’t mean that it isn’t “available” to them.
Read more » click here

Previously reported – July 2020
H2GO increases sewer, system development fees after Realtor, business advocate lobbying Brunswick Regional Water and Sewer H2GO passed multiple rate increases during a four-hour meeting Tuesday, including a $3,400 combined bump in system development fees and a 10% base sewer rate increase. With the possibility of system development fees swelling 124% to $11,200 ($4,700 for water and $6,500 for sewer), the utility’s SDF analysis attracted the attention of northern Brunswick County Realtors and developers. In general, increases in development fees tend to have the effect of slowing development, and realtors and developers often pay close attention to potential fee hikes. After sharing an initial fee hike included in its SDF analysis, H2GO received technical notes and feedback from Business Alliance for a Sound Economy (BASE) — a non-profit advocacy group for business and industry in New Hanover, Brunswick, Pender and Onslow counties — and Cape Fear REALTORS® (CFR). In response, H2GO adjusted its analysis and lowered the overall increase by $2,800 to a combined water ($3,200) and sewer ($5,200) fee of $8,400. The new look at the utility’s system development fees (SDFs) comes as it prepares to finance a $42 million reverse osmosis water treatment plant and bear 47% of the cost of expanding the county’s Northeast Wastewater Treatment Plant, a $52 million project that’s already underway. Base sewer rates for all residential customers will increase 10%, from $12 to $15, effective Jan. 1, 2021. H2GO previously attempted to negotiate a lower overall cost in expanding the NEWWTP, but Brunswick County informed the utility the cost couldn’t be further reduced. Bids for the project came in at $12.8 million over initial estimates.

System development fees (SDFs) are a recently approved fee utilities can charge new developments to cover the cost of improvements or expansions necessary to serve the new projects. Residential customers will likely never see an SDF on any bill; the cost is folded into the final lot or home price. SDFs are different from “tap fees,” which cover the actual cost of physically connecting to the system. Developers are keenly aware of SDFs, one of the largest costs that has to be tackled before a new project is complete. Before SDFs, government utilities illegally charged developers “impact fees,” as outlined in the 2016 N.C. Supreme Court case Quality Built Homes vs. Town of Carthage. In that case, the town was charging builders impact fees to cover the cost of expanding its utility system, even though plans to expand it weren’t in place. The lawsuit triggered House Bill 436 the following year, which essentially legalized and created SDFs under specific and reined in purposes. It meant SDFs couldn’t be charged arbitrarily and required a professional analysis to determine the cost billed to developers.
Read more » click here


Previously reported – August 2020
Agenda Packet –
The Town solicited proposals from qualified professionals to update our Water & Sewer System Development Fee Analysis. Two firms submitted proposals: The Wooten Company, an engineering firm and Raftelis, financial professionals. The proposals are included in theBoard’s packets for your review. Staff seeks guidance on the Board’s preferred firm.

System Development Fee Study – Proposal 1 / Raftelis
For more information » click here

Request was for qualifications only, that is why there is no cost in their proposals. Brief discussion, consensus was this was more of a financial rather than an engineering issue. Board directed the Town Manager to proceed to get a proposed contract from Raftelis the financial firm that responded.

A decision was made – Approved unanimously

Previously reported – September 2020
Board selected financial Raftelis to complete a System Development Fee Study, contract for $23,858

Engagement letter was included in agenda packet for their review and consideration. Just three years later, the cost to do the study has more than doubled. That said, they decided they need to redo study to establish appropriate cost justified fees. Financial firm Raftelis contract was approved.

A decision was made – Approved unanimously


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