A 60-day delay in implementing the new Residential Equivalent Unit (REU) value for mobile homes in Oxford Township was unanimously recommended last week by the water/sewer committee.
Supervisor Bill Dunn, who sits on the water/sewer committee, made motions recommending the township hold off for 60 days on increasing the REU assignment of mobile homes from 0.6 to 1.0 ‘to allow the (township) board an opportunity to further determine the fair and reasonable cost for this service.?
‘All this does is delay just the trailer parks until we make a determination,? Dunn said. ‘It does not mean it’s going back (to 0.6 REU) forever.?
Last month, the township board adopted a new Residential Equivalent Unit (REU) schedule which raised the unit assignment factor for mobile homes from 0.6 to 1 per home effective April 1.
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 and sewer use is measured.
As a result of the REU hike for mobile homes, each of the 851 units in the Lake Villa Manufactured Home Community is facing increased capital charges (from $19.20 to $32 per quarter) and increased sewer charges (from $37.80 to $63 per quarter).
The township assesses water users $128 a year per REU capital charge to pay off the $12 million worth of improvements made to the system including construction of two new water treatment plants and a new 1 million gallon water tower.
Christopher Investment Company, Inc., owner of Lake Villa, has formally requested the township repeal the REU increase for mobile/manufactured homes and restore them to 0.6 REU based on a number of reasons.
Among reasons cited by Christopher Investment ? mobile homes have less people living in them on average than single family homes; mobile homes have much smaller yards and less cars per home, both of which mean less water usage; and by increasing the REU increase, the township effectively hiked Lake Villa’s annual water/sewer costs by $130,000 without any notice to attend meetings and provide input, which was ‘extremely unfair.?
At a previous meeting, Dan Myrick, vice president of Christopher Investment, also pointed out to officials that, according to the transfer agreement which gave the township ownership of the Lake Villa’s four private wells in September 2006, any increase in the quarterly capital charge must be ‘based on the results of a study performed by a qualified consultant.?
That’s what prompted Dunn’s motion at the water/sewer committee meeting.
‘We do have an (attorney) opinion letter that we may have to have an engineering study,? he said. ‘Until we figure out where we stand, rather than end up in court right away, (my motion) gives the (township) board a chance to review this, talk it over and come to some determination at a later time.?
Dunn said he’s going to recommend the township board have an engineering study performed so if the municipality is taken to court over REU assignments, there’s some basis to defend them.
He also recommended that Christopher Investment be asked to provide information on mobile home parks water and sewer usage ‘as a courtesy.?
‘I want anybody that can back us up so we’re on solid ground,? the supervisor said. ‘I just want good sound information.?
Committee member and township Trustee Doleen Behnke requested Parkhurst Estates, the township’s other mobile home park, also be asked to provide info for the study.
Dunn also made a motion recommending the township board notify Christopher Investment to not collect the quarterly capital charge until Lake Villa is hooked up to the township system and can benefit from the improvements that charge is helping pay off.
‘I can’t see charging a group of individuals a fee to pay back a bond (when they’re not) hooked up,? Dunn said. ‘We’re not improving their system. They’re getting no benefit whatsoever from this.?
The Water/Sewer Committee ultimately failed Dunn’s motion in a 3-1 vote.
Member Kallie Roesner noted that even though Lake Villa isn’t hooked up, the park is ‘absolutely part of the system.?
‘The township has two separate water systems right now and is responsible for the upkeep, the maintenance, and the improvements on both,? she said.
Roesner said the cost of eventually hooking Lake Villa’s wells to the township system was included in the bond calculations. She noted money has already been spent on research and engineering for it, so there is a benefit. ‘There has definitely been money expended from the bond that is directly for the water system in that area,? she explained.
Behnke noted that Christopher Investment agreed to assess the capital charge on residents in lieu of paying the $6,075 per REU tap fee normally required to hook into the township system.
‘I will agree with Mr. Dunn that is not fair to the people out there to pay capital charges, but that’s what Mr. Christopher agreed to in my understanding,? she said.
At 0.6 REU per mobile home, the tap fees would have cost Lake Villa $3.1 million (or $3,645 per home) to hook up all 851 units.