By PAUL SOUTH
NORFOLK, Va., Oct. 6, 2000 (The Virginian-Pilot and The Ledger-Star)—Calling town regulations governing sewer connection fees "ambiguous," Superior Court Judge William C. Griffin Jr. on Wednesday said that the interpretation relied upon by about 20 Manteo property owners was correct.
Under that interpretation, the property owners were given connection-fee credits, based on the historic use of the property. Seven months later, the town told the plaintiffs that fees should have been based on the existing use of the property.
As a result, the property owners owed additional sewer fees ranging from a handful of dollars to $46,000. In all, the difference was about $125,000.
The owners sued, saying they had relied on the town's original figures in obtaining financing related to the project.
The impact of the order won't be known until Griffin enters his formal written order.
However, speaking from the bench, Griffin upheld the credits for past use. He also said that because of the unclear language in the town code, both interpretations were "logical." However, he ruled for the plaintiffs.
"Considering the evidence of the case and the history of water plants, it appears that the interpretation taken by (Town Manager Kermit Skinner) was most fair to all parties," Griffin said.
At the same time, Griffin ruled that under state law, the town had a "mandate" to recalculate sewer fees that were wrong.
Monday, the town said that fees for one-bedroom apartments in the new properties had been figured wrong. Under state law, connection fees are to be calculated at a design flow of 240 gallons per day, not the 120-gallons-per -day rate that was used.
"It is the court's belief that this was not a mistake, but different readings based on the ambiguity of the ordinance," Griffin said.
Griffin also denied town motions to consider each plaintiff's claim individually, saying the underlying issue in each case was the same. Also, he ruled that the plaintiffs were not entitled to attorney's fees.
Manteo Attorney Dan Merrell declined comment on the ruling until he has a chance to read the order. The town will have 30 days from the day the ruling is entered to appeal. It will be left to the town's Board of Commissioners to make that decision.
The plaintiffs called the judge's ruling "absolutely fair."
"I would like to think that this will be the end of it," said John Wilson IV, a partner in two of the buildings involved in the case. "And that this was nothing more significant than a dispute that's now resolved."
This was the first lawsuit filed since a downtown boom that has revitalized this community.
"This is a small town," Wilson said. "We need to pull together and move forward."
For Bob Oakes, a partner in a commercial laundry, there was a sense of relief after the ruling. But like everyone else, he will wait for Griffin's written order. If the town's interpretation had been upheld, his business would have owed $46,000.
"It wouldn't have put us out of business," he said. "But it would have made the next five years a lot tougher."
Most of the property owners had not paid the additional monies, so the exact impact on the town's water and sewer rates and property taxes is not known. Town officials say the loss of the fees would guarantee that the water and sewer department would lose money.
"I hope we don't have to raise rates," said Mayor Lee Tugwell. "We already have some of the highest rates in the state. We've been doing everything we can to keep those rates low."
One thing may come out of Wednesday's ruling, Tugwell said. A town used to doing things in an easy, small-town manner may not do so anymore.
"We did things in a very informal way, and it jumped up and bit us. This will definitely change the way we do things."
About 700 customers are served by the Manteo plant.
© 2000 The Virginian-Pilot and The Ledger-Star, Norfolk, VA via Bell&Howell Information and Learning Company; All Rights Reserved.
