City of Holland, MI
Ottawa County
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[Ord. No. 1417, 6-15-2005; Ord. No. 1431, 11-2-2005]
The following charges and fees shall apply to all connections to the sanitary sewer system of the City of Holland:
(a) 
Lateral fee. If a lateral fee has not been paid or assessed against the premises to be served, a lateral fee, in an amount to be established and adjusted from time to time by a resolution of the City Council, for the installation and use of a sewer lateral line from the sewer line to the property line, shall be payable by each premises connecting to the system provided that no lateral fee shall be payable where the sewer lateral to be utilized was constructed as a part of the development or project in which private parties or the City on behalf of or at the expense of private parties have constructed the sewer lateral. The terms of the payment of the sewer lateral fee shall be established and adjusted from time to time by a resolution of the City Council. This resolution shall specify whether the lateral fee is payable in cash in full at the time application to connect is made or in installments. If the lateral fee is payable in installments, such resolution shall specify the number of installments, the amount of each installment, the date on which each installment is due and payable, the interest rate, if any, on the unpaid balance of the lateral fee, when interest begins, and the date on which interest on the unpaid balance is due and payable. If paid in installments, the unpaid balance of the lateral fee and all interest thereon shall constitute a lien on the premises served.
(b) 
Special assessment. The special assessment procedure as prescribed in Chapter 15 of the City Charter for the construction of sanitary sewer improvements and assessment for sanitary sewer will be followed. A special assessment for sanitary sewer may be authorized by the City; may be accepted upon petition of the property owners; or may be initiated by such other method as specified by City Charter or authorized by law. Following a public hearing and adoption of a resolution of necessity, the project may be authorized by the City Council to proceed. The special assessment placed on the premises shall include the frontage fee and the lateral fee. Notwithstanding the foregoing, the amount of the special assessment shall not exceed the cost of the public improvement as specified by Section 15.9 of the Holland City Charter. The special assessment shall be payable in full or in equal installments as authorized and specified in Chapter 15 of the City Charter. To the extent that an assessment for sanitary sewer does not exceed the cost of the public improvement as required by Chapter 15 of the Charter of the City of Holland, the sanitary sewer special assessment shall be established annually by resolution of the Board of Directors of the Holland Board of Public Works and approved by the City Council. The resolution shall specify whether the frontage charge is payable in cash in full at the time application to connect is made or installments. If the frontage charge is payable in installments, such resolution shall specify the number of installments, the amount of each installment, the date on which each installment is due and payable, the interest rate, if any, on the unpaid balance of the frontage charge, when interest begins, and the date on which interest on the unpaid balance is due and payable. If paid in installments, the unpaid balance of the frontage charge and all interest and penalties thereon shall constitute a lien on the premises served.
(c) 
Trunkage charge.
(1) 
[Provisions regarding charge.] All premises which have not been included in a special assessment district which included a trunkage charge as a part of the assessment shall pay a trunkage charge. Those premises which have previously paid a trunkage charge as a part of a special assessment on a cash or installment basis as provided in this article but later are expanded and the use of the premises is altered so as to increase the amount and intensity of sewer use, shall pay an additional trunkage charge for such increase in sewer use. Those premises which were assessed for trunkage as an unimproved parcel but which are later improved or expanded, resulting in an increase in sewer use, shall pay a trunkage charge for such improvements. The trunkage unit rate shall be calculated based on general system extension costs, which may include, but are not limited to, such items as oversizing, extra depth, nonassessable frontage, lift station, force mains, pump stations, and other costs not included in the special assessment and frontage calculation. The trunkage unit rate shall be established and adjusted from time to time by a resolution adopted by the Holland Board of Public Works and approved by the City Council. The trunkage fee shall be based upon a residential equivalent unit ("REU factor") and applied against the meter size for the proposed or expanded use of the premises. An REU factor will be established for a single-family residential unit. All other types of uses will be calculated based on a schedule of unit factors based upon meter size and using the basic REU rate as the base cost. After initial adoption of the REU rates and factors, the REU rates will be adjusted annually based on the construction cost index as published by the Engineering News Record or such other nationally recognized publication recording costs and inflationary adjustments to cost. The trunkage unit rate shall be the rate in effect on the date the meter is installed to connect to the sewer system. If the premises are already connected to the sewer system, the trunkage unit rate shall be the rate at the time the meter change is made for the expansion or alteration of use.
(2) 
Private development. Sewer trunkage fees will be the only fee required to be paid for building connections made within the proposed private development. The private party must pay in full all existing assessments and any other charges or assessments prior to sanitary sewer system extensions or connections. Costs incurred by the developer which are normally included in the trunkage fee calculation may be credited against the calculated fees in accordance with the resolution adopted by the Holland Board of Public Works and approved by the City Council.
(3) 
Single connections. For premises which have not been specially assessed or were not a part of a private development for which assessments, trunkage, and lateral fees have been charged, the cost of connection to sanitary sewer will be determined based upon the rate formula established in the resolution adopted by the Holland Board of Public Works and approved by the City Council. Any premises which were previously charged under the alternate assessment procedure of the City shall be charged consistent with the terms and conditions of this article. Any previously charged and levied alternate assessments including any ordinances or resolutions thereto are hereby rescinded, revoked, and vacated and, in lieu thereof, all premises will be charged and assessed in accordance with this article. The City Council may choose to permit installment payments of an assessment under those conditions as specified in the resolution adopted by the Holland Board of Public Works and approved by the City Council. The owner of the premises to be served shall sign an agreement with the City stating the amount owed, the interest rate and other payment terms, and that the unpaid charges and all interest and penalties thereon shall constitute a lien on the premises served. If any installment of a lateral fee, frontage charge, trunkage charge, or any interest or penalty thereon is not paid in a timely manner, the City shall have the right to discontinue utility service to the premises and also, if the premises are connected to a sanitary sewer supply, the right to turn off the sanitary sewer to the premises. Sewer service shall not be restored to the premises until all amounts then due and payable are paid in full.
(4) 
Installment payment of trunkage. The City Council may choose to permit installment payments of trunkage charges under those conditions as specified in a resolution adopted by the Holland Board of Public Works and approved by the City Council. This resolution shall specify whether the trunkage charge may be payable in cash in full when the obligation is incurred, or in installments. The resolution shall specify the number of installments, the amount of each installment, the date on which each installment is due and payable, the interest rate, if any, on the unpaid balance of the trunkage charge, when interest begins, the date on which interest on the unpaid balance is due and payable, and the amount of any administrative fee to be charged by the City for the installment payment agreement. If paid in installments, the unpaid balance of the trunkage charge and all interest and penalties thereon shall constitute a lien on the premises served in accordance with the Charter of the City of Holland and the applicable provisions of state law.
(5) 
Agreement. At the time of each application to connect to the sanitary sewer system of the City, and also at the time any additional trunkage charges become payable as provided in Subsection (c)(1) of this section, if any portion of the trunkage charge will be paid over time, as a condition precedent to connection and/or use of the sanitary sewer system, the owner of the premises to be served shall sign an agreement with the City stating the amount owed, the interest rate, and other payment terms, and that the unpaid charges and all interest and penalties thereon shall constitute a lien on the premises served. If any installment of any trunkage charge or any interest or penalties thereon is not paid in a timely manner, the City shall have the right to discontinue sewer service to the premises, and also, if the premises are connected to a public water supply, the right to turn off the water service to the premises. Sewer service and/or water service shall not be restored to the premises until all amounts then due and payable are payable in full.
(6) 
Tax bill collection. If any lateral fee, frontage charge, or trunkage charge, or any interest or penalties thereon is delinquent for three months or more, then on or before November 1 of each year, it shall be certified to the City Treasurer, who shall enter the lien on the next tax roll against the premises to which sewer service has been provided, and the charges shall then be collected and the lien shall be enforced in the same manner as provided for the collection of taxes assessed upon the roll and the enforcement of the lien for taxes.
(7) 
Lien for payment of charges. If an installment of a trunkage charge is not paid, with all interest, on or before its due date, then such delinquent installment shall be treated and have the same status as a delinquent installment of a special assessment pursuant to Public Act No. 188 of 1954 (MCLA § 41.721 et seq.), as amended, or any similar statute, and such delinquent installment shall be collected by the City in the same manner as provided in Public Act 188 or similar successor statute for delinquent installment payments of special assessments in addition to any other remedy provided for in the Ordinance Code of the City of Holland or in an agreement executed by the owner of the premises served and the City.