A recent decision by the Oxford Township Board to raise capital and sewer charges for mobile homes has the owner of the Lake Villa Manufactured Home Community extremely upset.
‘To turn around and raise the rates on me without even a notice? was in Lake Villa owner Greg Christopher’s opinion ‘a low class, underhanded? thing for the township to do.
Christopher and Dan Myrick, vice president of Christopher Investment Company, attended last week’s water/sewer committee meeting to protest the township’s recent decision to adopt a new Residential Equivalent Unit (REU) schedule which raises the assignment factor for mobile homes from 0.6 to 1.0.
As a result, beginning April 1, each of the 851 mobile homes in Lake Villa will now pay $32 every three months (instead of the current $19.20) to help pay off the bond debt for improvements to the township water system. This is referred to as a capital charge.
Lake Villa residents will also see their quarterly sewer charges increase from $37.80 to $63 per mobile home due to the increased REU assignment.
‘We would like to see the studies done by the qualified consultants that justified the rate increase,? Myrick told the committee. ‘We want to understand how this came to be.?
An REU is a way to equate higher volume water users to single family homes, which are used as the standard. The single family residence with its value of 1 REU is the basis around which all other facilities? water consumption is estimated.
For instance, a car wash with automatic conveyor is assigned 33 REUs per lane ? which is equal to 33 single family homes ? according to the REU schedule created by the Oakland County Drain Commission.
The county’s REU schedule, used by Oxford Township for decades, was established in the 1950s and revised in 1998, however, not much was changed.
So, township Trustee Doleen Behnke and Planning Commission/ZBA Coordinator Barb Walkaus, with input from the township engineer and building official, developed a new, updated schedule as part of their capstone project to graduate the Master Citizen Planner program.
Behnke said the new REU schedule makes ‘things more fair and square? for everyone on the water system.
But Myrick pointed out that according to the transfer agreement, which gave the township ownership of Lake Villa’s four private wells in September 2006, any increase in the quarterly capital charge must be ‘based upon the results of a study performed by a qualified consultant? working for either the federal, state or county governments or a municipality in Michigan.
In the agreement, a ‘qualified consultant? is defined as ‘a person or entity that is knowlegable in the area and that has performed such water usuage analysis/studies in the past on behalf? of either the federal, state, county or a municipal government.
‘What study was done and by whom?? Myrick asked. ‘Which qualified consultant did this??
Myrick requested a copy of the study under the Freedom of Information Act.
The transfer agreement also states, ‘The parties acknowledge that at present the county’s Residential Equivalent Units factor shall apply. Currently, a factor of 0.6 of (an REU) would be applied to each manufactured home located within the mobile home park.?
Even though the township has assigned mobile homes a value of 1 REU and will be charging residents for sewer based on that amount, Tim Prince, chief engineer for the Oakland County Drain Commission, said the county will still only charge the township for sewer based on 0.6 REU per unit.
‘We have to charge consistently throughout the entire system,? Prince said. ‘Whatever we charge Oxford, we have to charge Oakland Township, Waterford and Independence. We couldn’t charge Oxford one rate, then a different community, a different rate.?
The amount the county charges the township for sewer is ‘what we’re paying Detroit to treat the system plus what it costs for us to get it from Oxford down to Detroit,? he explained.
However, Prince noted that beginning July 1, the county ‘won’t be billing based on (REUs) anymore.?
‘The county is getting away from the (REU) schedule altogether,? Prince said. ‘We’re going to be billing based on metered sewage flow (instead of) REUs because there’s just too many discrepancies.?
Currently, one single family home could put out twice as much sewage as another, yet still be charged the same amount based on REUs, Prince explained.
Christopher was primarily upset that his company had been working with the township on this well transfer for more than two years and no one ever told him they ‘were exploring raising these REUs.?
He accused the township of doing all this ‘behind my back? and not having the ‘common courtesy? to notify him.
‘If you had told me that, I wouldn’t have connected (to the township water system,? Christopher said. ‘I don’t need this aggravation from the people that are broke out there (in Lake Villa). We’re already getting all kinds of complaints now.?
Water/Sewer Committee Member Kallie Roesner said she was ‘shocked? Christopher was portraying the new REU schedule as something that just came up. ‘This discussion has been brought up at many meetings where you have been present,? she told Christopher.
Roesner explained that more than four years ago the township had a committee research other communities and what they were charging in terms of REUs. All of this was done in open meetings, she noted. ‘So, it’s not a surprise that this subject has come up,? she said.
Roesner said she ‘always went on record saying the REUs need to be adjusted? and the recently adopted schedule reflects ‘reality in terms of water use.?
‘A house is a house,? she said. ‘A family is a family.?
Myrick reminded the committee the well transfer was done because the township ‘needed extra capacity? and Lake Villa ‘didn’t want to run a well system? anymore.
‘That’s really what it came down to,? he said. ‘If you don’t want us to be part of the system, just say the word.?
Christopher Investment is willing to ‘void the contract,? if that’s what the township wants, Myrick noted for the record.
Supervisor Bill Dunn, who noted he voted against the new REU schedule, raised another issue.
‘I’ve got a problem with Oxford Township charging the homeowners in Lake Villa a charge of $128 per REU (per year) to pay off the debt for a bond that was taken out to upgrade the water system,? he said. ‘The people out there are not hooked to this water system and aren’t expected to be . . . for some time.?
‘It’s totally wrong to be charging someone to pay off a debt that they are not getting any benefit from whatsoever,? Dunn added.
Building Official Mike Darling agreed with Dunn that Lake Villa residents shouldn’t pay the capital charge until they’re hooked up to the township system.
‘I think morally that’s the right thing to do,? Dunn said.
Although the Lake Villa well system isn’t yet hooked to the township system, Roesner noted the municipality owns and maintains it, so it is responsible for it.
‘It is township water,? she said.
Committee Chair and township Trustee Charlie Kniffen agreed. ‘This is our system, period,? he said.
While he appreciated Dunn’s comments, Myrick noted, ‘The issue for us really isn’t whether we should be participating in the bond charge. It’s at what (REU) rate that should be.?
Myrick said they just want to understand the ‘methodology? and ‘study? used to increase the REUs.
Just in case Lake Villa does cancel the transfer agreement, Kniffen asked the township engineer to find out if the extra capacity discovered at the township’s new well site on Dunlap Rd. is enough to offset the potential loss.
Roesner noted she doesn’t believe Lake Villa intends to pull out of the agreement. She stated they’re just ‘frustrated? because residents are complaining and they need ‘documentation? to ‘justify? the increases to them.