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HomeMy Public PortalAbout1976_01_12 222 MINUTES OF SPECIAL MEETING OF LEESBURG TOWN COUNCIL, JANUARY 12, 1976 . A special meeting of the Leesburg Town Council was held in the Council Chambers, 10 West Loudoun Street, Leesburg, Virginia on Janu- ary 12, 1976 at 7 : 30 P.M. The meeting was called to order by the Mayor, who announced that the purpose of this meeting is to discuss with the builders the lifting of the sewer moratorium and the pay- ment of availability fees. It is noted that this meeting was set by the Mayor at a regular meeting of the Town Council on December 10, 1975. Present were: Mayor G. Dewey Hill , Councilmen Charles E. Bange, James H. Chamblin, Mary Anne NINmanAORIArQgKndM t in Terry Titus; also Acting Town Manager rWes y 66ve 87 d irector of Community Development Robert C. Forbes . Absent from the meeting was Councilman James A. Rock. Mr. Forbes explained the procedures to be followed from the submiaion of a preliminary subdivision plat by a subdivider to the approval and recording of the final plat, as well as the procedures for submission of a site plan to final approval. He said that there are many instances where a preliminary subdivision plat or a site plan may run into problems. Also, it is possible to be in the process of subdividing and having a site plan approved simultaneously - this speeds up the process, especially for the developer of townhouses. Mr. Fred Spain explained that the problem being encountered by builders, if and when the sewer moratorium is lifted, lies in the fact that the Town now requires the payment of availability and con- nection fees for water and sewer service prior to the issuance of a zoning certificate. This is a hardship on the builder, who must, in the case of one who is building several houses in a subdivision at one time, pay all of these fees "up front. " He suggested, as an alternative, the possibility of paying ten per cent of these fees at the time of the issuance of a zoning certificate, with the bal- ance to be paid before water and/or sewer are connected to the property. He asked that Council modify its position concerning the time of payment of these fees. Mr. Bernard Carlton felt that, once the Town has approved the final site plan or subdivision plat, it is committed to serve that property with water and sewer, regardless of whether the availability fees are paid "up front" or if they are deferred. Mr. John A. Wallace felt that, if the State Water Control Board desires to cut off water and sewer capacity, it will make no differ- ence as to whether or not it has been paid for, except to the builder. He did not believe this would happen in the future. What happened in the past was the result of knowingly allowing infiltration to over- load the system. This has now been partially overcome and the Town is still working on it. He felt that the Town should know how many taps will be coming into the system as final plats and plans are ap- proved. The Town knows its capacity and there is no point in issuing anything beyond its capability. The biggest problem is the payment of this "up front" money - there is no way that a lending institution will go along with this requirement. He felt that they would release such money at the end or perhaps in the middle of the draw, but cer- tainly not at the beginning. He urged Council to consider having these fees payable at the time the meter is set. Mayor Hill asked Mr. Wallace if there is any "up front" money involved in rental property. Mr. Wallace said all that is required is a one-month se- curity deposit. He did not consider this ' up front" money. }tasked why the Town wants this money in the beginning. Mayor Hill said that, once the site plan or subdivision plat is approved, the Town is com- mitted to this project - capacity has been reserved, so why shouldn' t it be paid for. He cited an example of an apartment house project, where the meter was set and the apartments occupied for quite some while before the Town even knew it . The "up front" money would have prevented this. Mr. Bernard Carlton said he would consider the money put up for physical improvements , all to be turned over to the Town, sufficient deposit. Mr. Lester Sorensen, Jr. felt that the proposed policy would present a problem to the builders, as well as to the Town. Under the presently proposed system, they would be unable to record the entire Andover Meadow subdivision at one time. They would probably have to have the engineer redraw it and submit five 8-lot units. This would put a burden on the Council - they would have more work involved, more meetings of the Planning Commission, etc. He felt 223 MINUTES OF SPECIAL MEETING OF JANUARY 12, 1976. that the Town could need some of this "up front" money, however, it is totally unreasonable to collect all of it in this way. The Town, through the issuance of zoning permits , could monitor the amount of flow and notices could be put up when the water is getting low. He hoped Council could arrive at some satisfactory ratio. He suggested $1, 500 per unit, with fifty per cent of the balance to be paid when the connection is made. Mayor Hill felt that the only way it can be monitored is at the end. The Town will advise the Water Control Board of the number of connections made and they will add this to what they already have. They could cut off connections and there could be builders with units well on the way - he did not feel that the Town would be monitoring this. Mr. Sorensen felt that a builder would be watching this situation closely so that he would not lose his connection. Mayor Hill said the Council wants the builders to go forward with a project when they submit a plan, not to sit on it. When the moratorium is lifted, capacity will be on a first come first served basis . The Town does not expect to reserve capacity for large developments for an indefinite time. Mr. John Ours, developer of Virginia Village Shopping Center, agreed basically with Mr. Sorensen' s comments. He did, however, feel there should be a place for commercial builders and suggested that perhaps there might be one tap in every so many reserved for commer- cial use. Mayor Hill said that, at the time the moratorium was im- posed, Mr. Martin, Mr. Titus and he talked with Mr. Ryan in the At- torney General ' s Office. Mr. Ryan suggested 75, 000 gallons bg �- aside for public need, but felt that anything else set aside gorier would be discrimination. Mr. Martin felt that the Appellate Court in Richmond would have to decide whether or not you can re- serve taps . Mr. Wallace felt that these fees could be paid at the time of issuance of a permit, or some given time afterwards if he has not started; otherwise, he would favor paying these fees at the time the meter is installed. It would be a legal requirement for the pay- ment to be made before the meter is installed and before anyone can move in. He did support the idea of getting back to a first come 11 first served basis and doing away with the priority lists. Mr. Lester Sorensen, Sr. also agreed with doing away with the priority lists and having a first come first served basis. He felt that the industry as a whole needs some relief, as do the builders here. He suggested that a percentage of the fees be paid at the beginning, with the balance to be paid when the meter is set or, in the case of a large subdivision, perhaps set six to eight months to come up with the balance. In this way, the Town could monitor the taps . He felt that it can be worked out on a mutual basis. Mr. Spain felt that there is a lack of logic on the part of the Council . This Council has the power to make changes in ordinances as needed, but it should meet some compromise that would be accept- able and affordable to both the Council and the builders . At a later date, when it becomes necessary, stronger policies can be en- acted to take care of the situation at that time. Councilman Chamblin asked if the builders feel there is any ob- ligation on the part of the Town to those on the priority lists at this time if the moratorium is lifted. Mr. Sorensen, Jr. said they are on the priority list and they have no objection. Mr. Spain said he is basically in favor of it, however, he wants to understand thor- oughly what implications it might have as far as he is concerned. At the present time, he has problems with the bonding requirements for his Loudoun Hills Subdivision and is working with the Town on a compromise situation. Mr. Wallace said he is on the list for one tap and it does not disturb him to be on a first come first served basis . Those people on the priority list have been on it for two years and have done nothing. Mr. Carlton said the people on the list have done nothing because they did not have sewer, just as he has done, but he is in favor of seeing the moratorium lifted and being on a first come first served basis. Mr. Chamblin said he hoped the people would agree with these comments and he did not feel that the Town is under any obligation to them. MINUTES OF JANUARY 12, 1976 SPECIAL MEETING. Councilman Titus asked Mr. Wallace and Mr. Ours if they feel that the way proposed is of benefit to them as commercial users, as opposed to residential developers. Mr. Ours said definitely it is so far as commercial is concerned. It is in the Town' s favor as well , so far as tax-wise is concerned. He did feel, however, that Virginia Knolls could be a fast-moving project that would use up a lot of the capacity. Mr. Titus said there has been a lot of criti- cism of the fees in Leesburg and he did not disagree. However, he personally felt that this is the beginning of a tremendous increase, not only here but in other jurisdictions as well , of construction costs and user fees, based on the Federal and State Government' s re- quirements on new construction. He felt that other jurisdictions will be increasing their fees as well and this will have to be ac- cepted . Councilman Titus asked the following questions : (1 ) If the Town is going to guarantee water and sewer to a unit, why shouldn' t the builder pay for this guarantee? ( 2) If the Town allows the fee to be paid at the time the water crock is set, what prevents the builder from setting this crock when settlement is made? Mr. Spain suggested the enactment of an ordinance requiring the payment of water and sewer tap fees and the issuance of an occupancy permit. Mr. Sorensen, Jr. suggested that the Public Works Department of the Town set up a water meter inspection requirement to go along with the County' s requirements before an occupancy permit is is- sued by the County. Mr. Titus asked, in the case of deferring a portion of the payment, when would this be paid and what guarantee would the Town have that it would be paid? Mr. Sorensen, Sr. sug- gested a requirement that the balance be paid six to eight months from date of the initial payment. As to a guarantee, Mr. Spain said a builder cannot start unless he has a completion bond. He cited in- stances where building companies have taken over if a builder is un- able to complete a project, and these fees have been paid and the projects completed. It was felt by all that, if the Town lifts the sewer moratorium and abolishes the priority lists, everyone will have been alertedthere will be no problem with prior commitments. Mr. Titus said onesreculator outside the corporate limits wka was dis- turbed over the proposed resolution because it prevented him from doing anything. Also, one of the bankers in town has said they will not lend a dime until they see that some sort of permit is recorded. He (Mr. Titus) said he would like to see something set up where every- body could benefit from it. Councilman Newman was in favor of the fees being set up on a per- centage basis, but she was not sure just when the balance should be paid. She felt that dealing with large projects such as Heritage Square with 122 houses is quite different than with small develop- ments such as there were in the past. Therefore, she did not feel that paying for taps at the time the meter is set was a wise sugges- tion. Councilman Orr suggested perhaps paying 10 per cent of the total fee at the beginning, with a set number of months to complete the project. If not completed at this time, the 10 per cent would be forfeited to the Town and not refundable. Councilman Bange suggested paying 50 per cent prior to approval by Council of the water and sewer extension and 50 per cent prior to final inspection and approval of acceptance by the Town and prior to the issuance of an occupancy permit. This should satisfy both sides. He liked Dr. Orr' s idea that a percentage be curtailed back to the Tonw if the developer defaults.' Mr. Spain and Mr. Carlton both favored a 10 per cent starting fee. They felt that a 50 per cent fee would be penalizing the builder more than he has already been penalized by the moratorium. Mr. Spain understood that the raise in fees at the time of the moratorium was to help pay for an enlarged plant for the future. It was made clear that the present plant is not yet paid for. Mr. Harry Burt explained that the programmed fees were designed to carry the water and sewer pro- grams of the Town for the next twenty years, to support the borrowing that has been done and will be done to support the new Plant, includ- ing paying off the existing indebtedness, as well as the new water plant. Mr. Spain felt that this is all the more reason to get build- :1 1 MINUTES OF JANUARY 12, 1976 SPECIAL MEETING. ing started. Therefore, the higher the starting fees are, the less development there will be to support this program. Mr. Burt further explained that, when you get Federal Grant monies , there is a process called Industrial Cost Recovery, which applies to those who come in and use the system to dispose of processed wastes . You pro-rate the portion of the Grant attributable to the industry for a period of up to 30 years, keep half the money in the Town, send half of it to Wash- ington. Eighty percent of that kept here would be in trust, the re- maining twenty per cent (or 10 per cent of the total) can be spent in any way. Leesburg does not have this kind of industry yet. However, Mayor Hill said this could develop in the future. Mr. Spain felt that this will have to be reckoned with in the future, but the important 11 thing now is what they can live with and what they can function in. This Council and any future Council has within its power to enact ordi- nances to protect the Town and the stabliity of growth. Mr. Bange felt that, if there were some legal document to bind the developer to this, he would be in favor of doing away with all availability fees in advance and pay everything at the time the meter is hooked in. Councilman Titus said this is not, has not been and will not be a method to control growth, this would be totally illegal. Mr. Carlton felt that an agreement such as suggested by Mr. Bange was completely unreasonable. Mr. Ours said he hoped Council would make up its mind to do something soon. Council- man Titus said there were people present at the first meeting this mat- ter was discussed that wanted to do nothing now, but wanted to wait to lift the moratorium, and they have not been back since. It was felt that there are some legal questions involved in setting up any deferred payment schedule, if this is what Council wants to do. A workshop session was set for 7 : 00 P.M. , Monday, January 19th in the Town Office to consider this matter. Mayor Hill thanked the interested builders for their input and adjourned the meeting at 9 : 40 P.M. 1#r Mayo/ Clerk of e Council