[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.
