Fifteen commercial and industrial sewer customers in Oxford Twp. won’t have to make any retroactive payments for all the years they were mistakenly under-billed, but they will be required to continue paying much more than they used to.
‘I can’t go back and recharge my customers,? said Al DiSipio, owner of Al’s Auto Wash, one the affected businesses. ‘Or even charge my customers today a surcharge to wash their car because I’m paying for expenses that occurred a few years back. Obviously, in my business, this is detrimental.?
The township board agreed and voted 5-1 to continue billing the 15 sewer users the correct amount.
‘What we did in the past was our mistake,? said Clerk Clara Sanderson, whose department is responsible for all sewer billings in the township (not including the village).
When the township switched computer systems for its sewer billings, it was discovered that 15 commercial and industrial users were being billed on a flat rate instead of on a consumption basis through water meter readings.
‘We should have been charging you by the meter reads and we were not,? Sanderson explained. ‘That’s why last October you all received a bill that just skyrocketed and that was because we were now billing it correctly. And these will be your normal bills from now on.?
For example, Al’s Auto Wash went from a steady quarterly bill of $105.66 to a $1,962.66 bill in October, $1,420.47 in January and $2,160.47 in April.
Back when he opened his car wash in May 2003, DiSipio questioned the sewer rate. ‘I was told it was the correct rate,? he said. ‘I took that in trust and honor.?
Finding out five years later that he may have to ‘back pay? was ‘unacceptable? to DiSipio. ‘It’s not my fault and it shouldn’t be my problem,? he said.
Joe Saigh, owner of Uncle Boomba’s, saw his quarterly sewer bill jump from $105.66 to $986.66 in October 2007.
‘I’ve been (in business) almost 27 years now and my sewer bill went up 10 times the normal (amount) what I’d been paying,? he said. ‘I have a hard time accepting the fact that it costs me quite a bit more money for sewer than it does to get clean drinking water. I can’t understand that.?
Sanderson explained that unlike township water, which is pumped from local wells and treated in local plants, the sewer must be sent to Detroit, which makes it ‘more costly.?
‘We get charged by the flow ? how much we send down to Detroit,? said Supervisor Bill Dunn.
Businesses were the only ones affected by the under-billing boo-boo. Sewer bills increased for the Oxford Public Library, Oxford High School and Oxford Fire Department Station #2 on W. Drahner Rd.
Library Director Bryan Cloutier expressed his displeasure over a quarterly bill that went from a consistent $80.07 to $277.07 in October, $685.65 in January and $265.65 in April.
‘It’s 600 percent for me,? he said. ‘It’s not a huge amount of money, but in an economy such as this, when we’re not pulling the tax dollars that we anticipated ? making the cuts that I’m already making ? 600 percent is a bit.?
During the course of the discussion, officials revealed the township has a ‘pretty healthy? sewer fund with a balance of approximately $5.6 million.
‘Why wouldn’t we reduce rates then if it’s so healthy?? asked Saigh. ‘Why are rates going up if you have an excess amount of money in the fund??
Officials explained reserves are needed for repair, maintenance and eventual replacement of the aging sewer system built in the 1970s. The township, not Detroit or Oakland County, is responsible for all this.
Dunn told Saigh he wants to take a look at the sewer fund in relation to rates.
‘You should have some sort of healthy fund balance, but not excessive,? the supervisor said.