BASE Leads the Charge in CFPUA Changes

CAPE FEAR PUBLIC UTILITY AUTHORITY MAKES CRITICAL ORDINANCE CHANGES

After several months of BASE-led stakeholder meetings between the new Cape Fear Public Utility Authority and the regulated community, decisions have been reached on several critical ordinance issues. At today’s Cape Fear Public Utility Authority meeting, the Board voted to amend several of its ordinances including amending its policy regarding the timing of payment of System Development Charges (read: water and sewer impact fees) and timing of rescinding allocated capacity.

As of July 1, 2008 when the Authority took over water and sewer operations from the City and County, the Authority policy was to collect all System Development Charges (SDCs) at the time of sewer extension application. For a 100 lot subdivision, this would incur System Development Charges of $450,000 at the time of sewer extension application in addition to the water and sewer infrastructure and other road, stormwater, etc. investments made by the developer. Additionally, after paying the fees, CFPUA could rescind the project’s allocation—without refunding these fees—if the allocation was not used in 2.5 years. Clearly, this would be a substantial permitting issue and financial obstacle—especially in these economic times.

BASE has been involved with CFPUA since the beginning in addressing these changes on behalf of the residential and commercial development community. Your BASE Government Affairs staff was the only speaker at the public hearing asking for these ordinances to be changed. In their vote today, the CFPUA Board voted to return to the prior County/City policy of paying System Development Charges at the time of building permit. A general version of language is as follows:
The payment of System Development Charges occurs at the time of building permit application. Once the project has been issued its DENR state permit, if within 3 years no “continual and significant progress” (defined in CFPUA ordinance) is not made, CFPUA shall rescind capacity. If within 5 years of state permit issuance no building permits have been issued CFPUA shall rescind capacity.

BASE staff would like to thank the following CFPUA Board members for their votes today: Burrows Smith, John Tunstall, Commissioner Bobby Greer, Commissioner Bill Caster, Mayor Pro Tem Jim Quinn, Councilman Jason Thompson, Kathryn Johnston, Charles Wells, and Jim Hunter.

Additionally, the Board also clarified in their ordinances provisions regarding grandfathering, appeals, private systems/master meters, developer reimbursements and tenant/landlord billing obligations. A handful of items were continued to the next meeting including discussion on the minimum distance for requirement of water and sewer connections