Salem City Hall, pictured last summer. (Salem Reporter files)
A Salem-based law firm has threatened to sue the city of Salem for charging fees it alleges are unconstitutional to property owners.
James Vick, a partner at Glantz Law Group in downtown Salem, claims the city’s stormwater and streetlight fees charge property owners “beyond” what’s allowed under the Oregon Constitution. He claims to represent multiple property owners.
Such fees help a city maintain infrastructure and services, such as water treatment. Cities throughout Oregon use them.
In a Feb. 26 letter to the city, Vick wrote that its stormwater and streetlight fees technically are “incurred charges” as described in Measure 5 of the constitution, but, in practice, work more like taxes.
Because Measure 5 also prevents property taxes from rising by more than 3 percent in a given year, Vick said the property owners he represents believe they are being charged more than the constitution allows.
The notice also calls franchise fees, which cities often charge businesses to use the public right-of-way, unconstitutional. A common example is a cell tower.
On March 13, in a semi-regular newsletter, City Manager Steve Powers wrote that the fees were “vigorously researched for state measures 5 and 50 compliance before they were implemented, and staff believes the allegation is without merit.”
“The legality of franchise fees are well established. Staff will be responding to the plaintiff’s attorneys,” Powers wrote.
READ: The two page letter from James Vick, dated Feb. 26, 2019.
Vick cited the constitution where it states incurred charges only apply to fees that “can be controlled or avoided by the property owner.”
“The city of Salem’s charges for stormwater runoff, street lights and franchise fees do not provide for or allow the property owner to control or avoid these assessments,” he wrote. “These so-called fees are assessed against all property within the limits of the city.”
Vick told the city to “rectify this matter” within 30 days of the letter. No lawsuit has been filed yet. Vick told Salem Reporter on Wednesday he only just received the city of Salem’s response.
“We are not ready to commit to any action at this time,” he said in an email.
Salem Reporter on Wednesday asked the city for its response but has not heard back.
Vick’s notice demands Salem stop charging the fees now and in the future, and refund payments with interest to property owners.
“If the city will not agree to these conditions, a class action suit will be filed once this notice period expires,” he wrote.
The city made nearly $2 million from streetlight fees, licenses and permits in 2018, according to its annual financial report, and $12 million from stormwater fees.
Have a tip? Contact reporter Troy Brynelson at 503-575-9930, [email protected] or @TroyWB.
