Century ups its fees on project

In 2015 representatives of The Paces Foundation, a non-profit organization, sat down with then Century Mayor Freddie Wayne McCall Sr., and Century Town Planner Debbie Nickles to discuss the possibility of building a 50-unit affordable housing complex in the town.

One of the issues before the project could proceed with the bidding process included the tap fees for water, sewer and natural gas.

At that time, the tap fees for water and sewer used by the town the cost would have been $63,750. In October, 2017 the town council passed a new ordinance setting tap fees. Under the new ordinance, the tap fees for the 50-unit Century Park Apartments is $180,250.

The town was issued a check for the $63,750, which was returned to the Paces Foundation Monday night after the town council voted to impose the new fees vs. the old fees which will cost the foundation an additional $116,500.

Former Mayor McCall and Nickles apparently gave a verbal agreement on the tap fees that were in place at the time. The council said since there was no written agreement the new tap fees would be applied.

Brooks said she voted no for the increase because she felt the town should honor agreements made by the previous administration.

"That was a commitment the town made to them," Brooks said. "They are bringing a $10 million investment to our town."

Brooks said she knows Century had issues with its rates and tap fees and those issues have been addressed.

"I believe we should keep our word," Brooks said. "Just because it was an oral contract shouldn't matter. They had every right to believe we told them the truth."

Nickles and McCall said it took about two years to put the project together and to make sure the town's infrastructure could handle the additional sewage.

In a letter dated July 12, 2016, from Engineer Dale Long to Nickles, Long stated the town "has the capacity to provide water (potable and fire) and sanitary sewer service to this development."

McCall told the council Monday he was also interested in the new complex to use natural gas. He said he was told that was not economically feasible.

Rick Haymond, development manager for Paces, told the council they were within a month of being able to put the units up for rent.

He also said the estimates and bids used on the project were based on the tap fees given to him at the time.

"It's a multi-million dollar project," said Councilman Louis Gomez. "But you don't have a signature of any town official on this document."

Haymond said in the many developments he's done he's never had a written agreement on water and sewer fees.

Nickles noted Long was at the first meeting and the fees were set based on the town's current fees.

"We went with documentation in your ordinances and resolutions," Nickles said. "It's the first development of this type in 30 years in Century."

Nickles said the town made a commitment and it should be honored.

Gomez noted he took office in January and the town was operating in the red and has addressed rates.

Brooks noted the town was talking about tap fees, noting the complex will pay the current water and sewer rates.

Century's Water Superintendent Alicia Jernigan said Paces should have known the impact fees were too low to begin with.

She added that the town's water and sewer infrastructure is failing because the rates are too low. She said she understood Pace's concern, but she said the town can't handle what's coming through the lift station now at Pilgrim Lodge and this will only add more.

Haymond noted if they had known that in the beginning, it would have been put in the budget.

Mayor Henry Hawkins noted that the developers decided not to use natural gas, which would have been a plus for the town.

He also said he didn't like that decision and if they wanted water and sewer they would have to pay the new fees.

Hawkins also said Monday night was only the second time he's seen representatives from Paces, noting they only contacted him when the town went up on the tap fees.

"I told you we were changing the way we do business," Hawkins said.

He said the prior council gave Mayor McCall the authority to do whatever he wanted. He said if the council had voted to honor the lower tap fees, he'd say OK and honor the agreement.

Nickles said the town didn't have sewer until 1992 and those rates have not been adjusted.

"I agree with these people," Brooks said. "We can't make them responsible for our problems. We need to live up to our agreement."

Councilman Gary Riley said if the town continues to do business like it has always done, it will get deeper and deeper in the hole.

"This group here needs to look out for that group out there," Riley said referring to the citizens of Century.

Helen Mincy said she resented Riley's comments saying the town wanted to raise the rates on the citizens' bills.

Nickles again noted they weren't talking about monthly rates just the tap fees, noting the new monthly rates will be applied to the new apartment complex.

She also noted the town has never adopted impact fees, only tap fees.

"We need to look out for the citizens of Century," Gomez said. "I'd rather your company take the hit than the people of Century."

Gomez also agreed with Hawkins that if Paces had a contract with the town to honor the lower tap fees he would agree with those fees.

"We gave them what we had to go by in 2015," McCall said. "We weren't looking at 2017 prices."

Jernigan said the town's infrastructure can't handle the addition of the apartments.

Following the discussion the council voted 4-1 to require the $180,250 tap fee. Louis Gomez, Sandra Jackson, Ben Boutwell and Gary Riley voted yes. Ann Brooks voted no.