City sues 31 over unpaid water fees

A list of 31 lawsuits against those who have not paid past stormwater fees includes Chevrolet dealer Herb Adcox, Komatsu America Corp. and Bellsouth Telecommunications, city records show.

PDF: Stormwater Lawsuit with dismissals PDF: Delinquent stormwater Lawsuit filed

A list of property owners delinquent on water quality, or stormwater, fees released Tuesday by the city attorney's office showed they collectively owe the city $128,730 since 2004.

But they don't include governemental agencies, City Attorney Mike McMahan said.

He said Tuesday the state takes the position that it has sovereign immunity from such fees, and some agencies in the federal government takes the position that the water quality fee is a "tax and not a fee."

But he said lawsuits against governmental agencies not been ruled out.

"It's going to take litigation to resolve that," he said.

Mr. McMahan said the city might file lawsuits against federal and state governments as soon as the City Council takes action on a water quality fee.

Mayor Ron Littlefield said earlier this week the city has sued nonprofit agencies for any unpaid stormwater fees. The list provided Tuesday shows no nonprofit agencies or churches listed.

During an editorial board meeting Monday with the Chattanooga Times Free Press, Mr. Littlefield said he wanted everyone who contributes to the city' stormwater problems to help contribute to their solutions, whether they are private or public and whether they are a profitable business or a local charity.

"The rain falls on everyone," Mr. Littlefield said. "We're treating everyone the same now."

Most state and county agencies have not paid the stormwater fees assessed on their buildings, parking lots and other paved surfaces since 1993, according to city records.

So far, the city has yet to take legal action to try to collect from other government agencies, even though they have been billed more than $10 million since the city began its stormwater fees in 1993.

Federal and state agencies have been billed more than $2.1 million for stormwater cleanup since 2005, and that money has not been paid according to the city.

Mr. McMahan said the city has begun taking legal action against private property owners for any overdue stormwater payments since 2004. Before that, the six-year statute of limitations for such tax collections expires, he said.

He said Monday the city first identified 75 entities as being targets of potential lawsuits. Governmental agencies were taken off that list, he said. Then, after research, the city found 31 potential targets for lawsuits of entities that were still in business and could be served papers, he said.

He said there was no reason to include any nonprofit agencies in the lawsuits.

BY THE NUMBERS*$128,730: Total amount of money owed to the city from delinquent payers in lawsuits*75: Total amount of delinquent payers who owe more than $1,000* 31: Total number of payers the city filed suit againstSource: City of Chattanooga

"We've regularly collected from nonprofits throughout the years," he said. "They pay their bill."

The biggest private property owners with unpaid stormwater fees include Komatsu America Corp., which owes $21,147, the Cincinnati New Orleans & Texas Pacific Railroad, which owes $14,122 and a Dayton Boulevard mobile home park -- FMP Tennessee LTD -- which owes $8,142.

Bellsouth Telecommunications owes $1,755.16 from 2007, records show.

Chevrolet dealer Herb Adcox, who still has a $3,389 stormwater bill to pay from 2008, said he faces stormwater fees of nearly $15,000 this year. He said he is waiting on action from the City Council and on how the actions of the independent committee on water quality, headed by Bill Raines, affect the fee.

"The charges they are proposing for the future are unreal," Mr. Adcox said. "I want to leave this to the last minute to see what this committee headed by Bill Raines comes up with."

Follow this link to continue reading

Upcoming Events