§ 114.005. Rates; connection fee; user fee.

Sec. 5. 

A.

Purpose. The rates fixed herein are estimated to be sufficient to provide for the payment of the expenses of administration and operation, and for such expenses for maintenance of said System as are necessary to preserve the same in good repair and working order; to provide for the payment of the contractual obligations of the units of government served by the South County Sewer and Water Authority to the County of Kalamazoo and/or the City of Kalamazoo; and to provide for such other expenditures and funds for said system as this ordinance may require. Such rates shall be fixed and revised from time to time by Municipalities resolution as may be necessary to produce these amounts.

B.

User classes. All users of the System will be included in a user class and each user class will pay for its proportionate share of the use of the System in terms of volume and pollutant loading. User fees are levied to defray the cost of operation, maintenance, replacement (including depreciation), and if authorized, debt retirement of the System. The classes of users, for the purpose of determining the user charges, shall be as defined in this ordinance, section 3 [114.003].

C.

User fees. Use fees to each single family residential premise shall be set as a flat amount, the same to be set by Resolution of the municipal board or council and revised from time to time as recommended by the Authority. The use fee along with any debt retirement charges shall be paid on a not less than quarterly basis. Each user other than a single family residence shall pay the flat fee multiplied by a factor representing a rate of sewer use by such class of users to normal single family residential sewer use as reflected in Appendix A [114.100]. Use fees shall be billed in advance and may include debt retirement charges to be set by Resolution of the municipal board or council and revised from time to time as recommended by the Authority.

D.

Accrual date. User charges and debt service charges shall begin to accrue as of the day of the connection of the building sewer to the public sewer system.

E.

Change in use. After connection of a premises to the public sewer system, subsequent changes in the character of use or type of occupancy of the premises shall not abate the obligation of the user to pay user fees and debt service charges for the premises based upon the number of units originally allocated thereto, unless and until the Authority determines that the number of units allocated to such premises shall be increased or decreased based upon such changes in use or occupancy.

F.

Connection fee payments; how computed. Each house, building or structure required to connect to the system shall pay a direct or indirect connection fee multiplied by a factor representing a ratio of sewer use by such user to normal single-family residential use, as reflected in Exhibit A [114.100].

G.

Connection charges: direct & indirect fees.

1.

Generally. The owner of each lot, parcel or building site who desires to connect to the system shall pay a charge for the privilege of using the facilities and receiving the service of the system as set forth herein. The connection charges will consist of a direct and indirect connection fee (where applicable) as set forth below. The Direct and Indirect Connection Fees shall be set by resolution of the municipal board or council and revised from time to time as may be recommended by the Authority based upon single, family-residential equivalent units as reflected in Exhibit A of this Ordinance. Provided, however, that a credit may be taken on said Direct and Indirect Connection Charges equal to the sum, if any, specially assessed against the property by the municipality for the purpose of defraying part of the cost of the system, providing the credit has not been previously used against other connection charges.

2.

Direct connection. Each lot, parcel or building site shall pay a Direct Connection Fee which shall be as a minimum equal to one residential equivalent unit, which shall be used to defray the cost of installing the public sewer to the lot, parcel or building site.

3.

Indirect connection. For each lot, parcel or building site containing more than one dwelling or dwelling unit not directly connecting to the public sewer or for commercial and industrial structures requiring capacity exceeding one residential equivalent unit, or those lots, parcels or building sites indirectly connecting to the sewer system, there shall be charged an Indirect Connection Fee based upon the residential equivalent units as set forth in Appendix A. These charges shall be used to defray the proportionate share of the necessary oversizing of the treatment facilities, trunklines and pumping stations.

H.

Payment of connection charges. Connection charges as set forth herein shall be due and payable to the Authority in cash upon application for connection to the System, unless the Authority Board authorizes the payment of such charges pursuant to an installment contract. Any installment contract authorized by the Authority Board shall be in writing, shall provide for the first installment to be payable upon application for connection; shall provide for all subsequent installments plus interest to be payable annually thereafter on June 1st shall provide for a rate of interest to be established on a fiscal year basis (April 1 to March 31) by the Authority Board, but not greater than eight percent per annum. Such rate shall be paid annually on the unpaid balance; and shall have a term of not more than ten years, as determined by the Authority Board.

I.

Industrial users; normal strength sewage. Each industrial user that discharges process wastewater which does not exceed the limits of "normal strength sewage" shall be charged and shall make payments to the Authority in amounts based on the actual waste volume and strength from such user as stated elsewhere in this ordinance.

J.

Industrial users to pay proportionate share. Each industrial user shall pay the proportionate share of the operation, maintenance and replacement/depreciation costs of the system that are allowable to the treatment of said user's industrial wastes.

K.

Sewage exceeding normal strength. Each user that proposes to discharge wastewater to the system which exceeds the limits of "normal strength sewage" will be required to either: (a) provide satisfactory pretreatment to reduce the strength of the wastewater to "normal strength sewage", or (b) pay a surcharge determined by the relative concentration of BOD, suspended solids, or other pollutant as compared to "normal strength sewage". Said surcharge shall be set by Resolution of the Municipality from time to time as necessary.

L.

Special Rates. For miscellaneous services or where a premise receives sewer service for which a special rate need be established, such rates may be recommended by the Authority to be fixed by the Municipality by resolution.

M.

Miscellaneous customer fee. The Municipal Board or Council may, from time to time, establish by resolution and impose on one or more users a miscellaneous customer fee, as necessary, for miscellaneous services, repairs and related administrative costs associated with the system and incurred, without limitation, as a result of the intentional or negligent acts of such user or users, including for example with or without limitation, excessive inspection services not covered by the Inspection and administration fee, and costs incurred by the Municipality to shut off and turn on sewer service.

N.

Special arrangements for sewage disposal. No statement contained within this section shall be construed as preventing any contract between the Municipality and the Authority, and any industrial concern whereby an industrial waste of unusual strength and/or character may be accepted by the Authority for treatment, subject to payment therefore by the industrial concern or stipulated to pursuant to judicial or quasi-judicial process.

O.

Inspection and administration fee. The inspection and administration fee shall be determined from time to time by resolution of the Municipal Board or Council. The inspection and administration fee shall be payable with respect to each connection to the system, including additional connections on the same lot or parcel of land as a result of the repair or revision of existing connections, new connection to replace an existing connection on the same premises, or the assignment of additional units to a premises as a result of an increased utilization of the premises.

P.

Delivery of bills. All bills and notices relating to the conduct of the business of the Authority and of the system will be mailed to the person listed on the application for the connection permit at the address listed on the permit, unless a change of address has been filed in writing at the business office of the Authority. The Authority as agent for the Municipality shall not otherwise be responsible for delivery of any bill or notice. Bills or statements for sewer rates and charges shall be sent quarterly in advance by the Authority to each owner of property liable for payment thereof. Such bills or statements shall be payable 30 days after mailing by the Authority. Payments shall be made at the office of the Authority.

Q.

Unpaid sewer rates and charges; penalty. If any charge for sewer rates and charges shall not be paid within 30 days of billing, a penalty of five percent of the amount of such charge shall be added thereto, and shall be payable and collected therewith.

R.

Enforcement. The charges for services (use fees and other) which are under the provisions of Section 21, Act 94, Public Acts of Michigan, 1933, as amended, are made a lien on all property served thereby, and whenever any such charge against any piece of property shall be delinquent for six months, the Authority or officials in charge of the collection thereof shall certify annually on August 1 of each year to the tax assessing officer of the Municipality, the facts of such delinquency, whereupon such charge including penalties shall be by him entered upon the next tax roll as a charge against such property and shall be collected and the lien thereof enforced in the same manner as general Municipal taxes against such property are collected and the lien thereof enforced; provided, however, where notice is given in writing that a tenant is responsible of such charges and service as provided by said Section 21, no further service shall be rendered such property until a cash deposit equal to six months user fees shall have been made as security for payment of such charges and service. In addition to the foregoing, the Municipality and the Authority shall reserve the right to shut off sewer service to any property for which charges are more than three months delinquent, and such service shall not be reestablished until all delinquent charges and penalties and a turn-on charge, to be specified by resolution of the Municipality, have been paid. Further, such charges and penalties may be recovered by the Authority and/or the Municipality by court action, together with such attorney fees and costs as authorized by law.

S.

Re-establishing service; deposit required. In addition to the foregoing, where the sewer service supplied to a house, building or structure has been discontinued for nonpayment of delinquent bills, the Municipality reserves the right to require by Resolution that a sum be placed on deposit with the Authority for the purpose of establishing or maintaining any customer's credit.

T.

Appeals. Any person has the right to appeal the basis for any charges developed in accordance with section 5 [114.005] of this Ordinance. Appeals shall be directed to the Board of Appeals along with any supporting documentation for amendment of the charges in question. Any additional information that may be required to resolve the appeal shall be obtained by said person at his expense. Resolution of appeals shall be made within 60 days by action of the Board of Appeals. In no event shall appeals be accepted which would require a variance in the methods of charge calculations established and in force throughout the system. All bills for sewage service, outstanding during the appeals process, including all penalties or delinquent charges, shall be due and payable. Upon resolution of the appeal, the Authority shall adjust said charges accordingly, including any refunds due. Refunds shall be retroactive to the previous four quarters billings only.

U.

No free service. No free service shall be furnished by said system to any house, building, property, nor to any person, firm or corporation, public or private, nor to any public agency or instrumentality.

V.

Interruption of service. The Authority shall make all reasonable efforts to eliminate interruptions of service and, when such interruptions occur, will endeavor to reestablish service with the shortest possible delay. Whenever service is interrupted for the purpose of working on the systems, all persons affected by such interruption will be notified in advance whenever it is reasonably possible to do so.

(Ord. No. 122, 9-11-00; Ord. No. 131, 7-14-03)