SHELBY - In split votes Tuesday, August 25, Shelby Village Council passed three resolutions related to village fees and services.
First, the council considered and voted to approve a new fee waiver policy outlined in a two-page document accompanying the resolution. Council member Dan Zaverl said he didn’t think the council could pass the resolution until they checked with the village attorney. Village Administrator Phil Morse further explained the approval wasn’t waiving any fees, only giving council the authority to waive fees when it is within their legal right to do so. Council member Mike Termer moved and Crystal Heykoop seconded the motion. Termer and Heykoop, along with council members Curt Trott, Samantha Gottschalk, Steve Crothers and Village President John Sutton voted yes; Zaverl cast the lone no vote, thus the Fee Waiver Policy was formally adopted.
For the second resolution, the council considered a Shelby Acres Development (SAD) request asking to connect their new park (now under construction and located along Aspen Hill Drive) to the village’s sewer system, adjacent to the park property. In April, the village and SAD entered into a Memo of Understanding stating that in exchange for conducting routine maintenance at the park, the park would become a part of the village park system and available for residents to use.
“This request is unique because the park is in the township (but) there are no village sewer connections in the township. I recommend we do this for the following reasons: it doesn’t cost us any more, it will create more revenue for us, it would have minimal lagoon impact and it would be a goodwill contribution to community development,” Morse said.
Zaverl asked why the request was coming before the council now and not before the project was started. He said it feels like every time this entity does the work, the village is informed afterward, and the village doesn’t have a choice in the matter. “I don’t like it,” he said.
Morse apologized, saying he wishes he’d thought to ask earlier, “I wish I would have known ahead of time too.”
The second part of the resolution granted special approval for the connection at the same rate as the rest of the sewer customers in the subdivision. “Not the one and a half rate like water, but at the current rate because it’s (the connection) right there,” Morse said.
Council member Heykoop moved to grant the requested sewer connection request and bill the ready-to-serve and sewer usage fees at the current rate, and Termer supported the motion. They, along with councilors Crothers, Gottschalk, Trott and village president Sutton voted in favor of the motion. Zaverl voted in opposition. The request was approved.
Third and lastly, the council deliberated somewhat at length over a water and sewer tap interpretation and clarification resolution. With the creation of the new park in the Shelby Acres subdivision, the developer believes the utility tap fees associated with the park’s construction should be waived based on the Planned Unit Development’s (PUD) agreement signed in 2023.
The PUD agreement states, “The Shelby Village Council commits to adopting a resolution waiving all Right-of-Way Permit fees for Phase I of the Development and each subsequent phase if the development is constructed by a nonprofit developer.”
Morse told council, “While the PUD states a resolution would be adopted, we never did pass a resolution. I think it got missed.”
Morse was looking for interpretation and feedback on the following: “Whether the village’s intent in supporting the Shelby Acres PUD should be interpreted to include the waiver of utility tap fees associated with Shelby Acres Park, including the recently installed 2-inch water tap and the pending 4-inch sewer tap.”
“As Dan has stated, this is coming after the fact,” Morse said.
After a few comments and questions from the council, audience member Alex Katt asked if he could speak, “My water bill is over $100. If the village waives $8,500 in fees, that’s equal to the water bills from 80 houses. If you look at all of the (village) parks, will residents go over there? What is going to benefit the village more?”
“They see the whole project as one investment,” Morse said of the Oceana County Development Corporation. “They see this as philanthropic, something for the community, not for business. They have skin in the game.”
“I’m not in favor. We can’t have a meeting telling residents that we need to raise water fees, then start waiving them. If you only take care of big developers and not regular residents, what does that say,” Heykoop said.
Council member Crothers weighed in saying, “I would think that we should include this in the original PUD. We will be getting water and sewer revenue from them.”
Termer then added, “But it’s the blemish people see. At times like these you have to make decisions based on what people’s perception is.”
“Our job is to look at the whole picture; the public doesn’t hear everything (that is discussed). I don’t think they are here to make money,” Gottschalk said.
“It’s nice to be able to help out businesses, but considering (the)raising of water bills, I’m not sure what is best,” said Trott.
Crothers moved to approve the resolution waiving the village’s 2-inch water tap fee and 4-inch sewer tap fee for Shelby Acres Park, finding that the park is part of the overall Shelby Acres Development and that the fee waiver is consistent with the village council’s intent to support the project; Gottschalk seconded the motion. They, along with Trott and Sutton voted in support. Termer, Zaverl and Heykoop voted against the motion. The resolution was formally adopted.
The next regularly scheduled village council meeting will be Monday, September 14 at 6 p.m. at the Shelby village hall.
