Carmel committee advances overhaul of right‑of‑way permitting, keeps application fee at $50

The Land Use and Special Studies Committee voted to send to the full Carmel City Council an ordinance that overhauls right‑of‑way excavation and disturbance permitting, while agreeing to keep the application fee at $50 for the time being.

Chair Dr. Nia Joshi introduced the ordinance as an update to Carmel City Code (chapter 8, article 65, section 8‑65) intended “to change the behavior that was causing distress to people and to damage to property and infrastructure,” and to add modern restoration and ADA protections.

A staff presenter identified as Sergei described the draft as “a very comprehensive overhaul of our right of way permitting process,” saying it modernizes legal language, adds standards for post‑work restoration and inspection, and builds in an appeal process prior to litigation.

City engineering staff proposed several new fees and penalties to cover processing, inspection and warranty tracking: an application charge that staff initially set at $175, a street/roadway cut fee at $500 and a sidewalk/path cut fee at $200. Staff said the figures reflect estimated staff hours and the administrative work needed to track warranties and future restoration claims.

The director of engineering told the committee the city issued 1,492 right‑of‑way permits in 2025 and that most permits are filed by contractors rather than homeowners. The director said the penalty structure is intended as a deterrent: an initial fine for noncompliance commonly cited at $250, with escalating penalties for repeat or prolonged violations and daily fines for ongoing noncompliance.

Committee members pressed staff on effects of the higher application fee on homeowners and small businesses, whether contractors would pass fees to customers, and whether the fee would discourage necessary maintenance. One member urged caution, saying a larger application fee could “be prohibitive to getting work done” for small projects. Staff responded that the proposal targets disturbances of the public right‑of‑way and that many routine homeowner activities would not require a right‑of‑way permit.

Members also debated how fines should be applied — per day, per permit, or per violative act — and asked staff to tighten language on repeat violators and cross‑permit counts. Staff and legal advised clarifying whether penalties attach to a permit, to a contractor, or to each day of noncompliance; they agreed to draft clearer language and consider a moratorium or permit denial for serial violators.

On a package of changes that removed a proposed insurance requirement as redundant with bond requirements, clarified the appeals route (administrative hearing at BPW followed by court if necessary), and preserved the proposed cut and penalty levels, the committee reached agreement to leave the nominal application fee at $50 and to move the ordinance to council for introduction so the full council can review it. Chair Dr. Nia Joshi made the motion to send the ordinance to council for introduction with the amendments discussed; the committee voice‑voted in favor.

The ordinance will next appear on the council agenda for introduction; staff committed to return with data after implementation (and after about a year of enforcement) to evaluate whether fee changes are meeting the goal of reducing damaging behavior without unduly burdening routine work.