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Council rejects code to automate billing for stormwater pond maintenance tied to disbanded HOAs
Summary
A proposal to amend municipal code (ordinance 1150) to authorize the city to maintain stormwater facilities and bill property owners where homeowners associations have disbanded failed after councilors questioned authority to charge homeowners, definitions of 'active HOA,' notice and appeal rights, and renter impacts.
Council debated ordinance 1150 for an extended period before voting; the ordinance would have added enforcement authority and a billing mechanism to maintain stormwater facilities where homeowners associations (HOAs) have disbanded.
Staff said the change targets disbanded HOAs that previously held responsibility for stormwater ponds and aims to provide a clear mechanism to recoup small maintenance costs by placing a modest charge on the city’s stormwater bill when homeowners refuse to pay. A staff member said the approach is intended as a last resort after outreach to HOAs and homeowners, and that the code would enable the city to either require the HOA to maintain facilities or, when the HOA is disbanded, to record billing through utility processes.
Councilors raised repeated legal and practical concerns. Councilor Johnstone pressed that the term “active HOA” was not well defined and argued there may not be a legal mechanism to automatically attribute ownership of HOA-held property to individual homeowners without examining recorded covenants or disbanding documents. Others asked whether the city already had stormwater maintenance agreements in place and whether those agreements could be enforced without changing code. Council members also asked about notice, appeal rights, and the risk of shifting costs onto renters; staff said notices go to property owners and unpaid amounts could result in a property lien through standard processes.
After debate and a recorded voice/roll-call sequence in the transcript, the motion to adopt ordinance 1150 failed. Several councilors voted against adoption and the clerk declared the motion failed.
The record shows the council requested clarifications about definitions and legal authority. Staff indicated the ordinance was intended specifically for disbanded HOAs and that the city’s attorney had reviewed the language; councilors asked staff to return with clearer definitions and legal justification if the matter is to be pursued again.
