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City stiffs sewer customers on bill for nothing

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ALLEGAN, Mich. (WOOD) — A big sewer backup: It was the first whiff of trouble that would eventually cost thousands of dollars and leave an Allegan couple wondering if they still want to live in the quaint community.

Keith and Marianne Somers' bathroom toilet just kept overflowing. It ruined a lot of stuff.

At first, they thought it was just some sort of plumbing problem. A series of plumbers came and went before the guy who charged the least figured it out in five minutes.

"He came in and said, 'You didn't tell me you were on a septic system.' And I said, 'We're not on septic,'" Marianne Somers recalled. "I said, 'We're on city water and city sewage.'"

But the plumber was right. Their lovely home on a bluff overlooking the Kalamazoo River was not connected to the Allegan sewer system. They had two septic tanks. They had no idea.

It's why they had the expensive overflow into their house. Every now and then, somebody has to clean out septic tanks. Since they didn't know they had them, the Somerses never had their tanks cleaned, so they eventually overflowed into their home.

"We were stunned," Marianne Somers said.

BILLED FOR CITY SEWER FOR YEARS

How could they not know? There are two good reasons.

They showed Target 8 a real estate listing from 14 years ago when they bought the house. It says they have public sewer.

And then there's the sewer bill they've been getting from the City of Allegan every month for the last 14 years — for service they didn't have. Even the City of Allegan thought they were on the public sewer system. No wonder the Somerses thought so, too.

Somers home
Keith and Marianne Somers' home in Allegan.

Allegan Public Works Director Aaron Haskin says it "looks like previous owners in the '70s actually paid the hookup fee." But that owner never followed through. The city never checked and at some point started billing for the nonexistent service.

"It's back from the '70s," Haskin said, "so I don't know what happened back then. Now we do verify that they've been connected."

CITY SAYS IT WILL REFUND LESS THAN HALF OF FEES

After their bad experience, "I think they should be nice to us; kind to us," Marianne Somers said — especially since the overflow damage and finally hooking up to the city sewer system put them out some $18,000, they say.

But they can't even get the City of Allegan to refund all the money they paid for the sewer service they didn't have for the last 14 years.

Allegan will refund payments for only six of the 14 years — just $700. And that's not real money. The city will give it to the couple only as a credit against future sewer bills now that they are finally connected.

The city is relying on a six-year statute of limitations on old debts. It says it is following the law.

Target 8 investigators wanted an independent legal opinion and got one from John Smietanka, a former U.S. Attorney for West Michigan.

"Statute of limitations is aimed at protecting not only municipalities but companies, people, from old, old, old claims" that they can't defend against, Smietanka explained.

"The problem here," he continued, "is this is being interpreted as an absolute rule and it's not absolute."

In other words, the City of Allegan is not bound by the six-year limit if it doesn't want to be. It could decide to refund the Somerses the full 14 years of bogus sewer fees, according to Smietanka. It's up to the city government. Smietanka said people waive the law all the time and pay up way past the six-year limit in order to do the right thing.

SEPARATE BILLING MISTAKE FOR ALLEGAN

The Somerses' case is not the only sewer refund the City of Allegan is working on.

In late October, the city council raised the sewer rate to pay for a $1.3 million overbilling to a major sewer customer, Perrigo -- the international pharmaceutical company that is a mainstay of the local economy. A news report of that meeting said the overbilling had gone on eight years.

Perrigo Co. corporate headquarters in Allegan. (Nov. 13, 2015)
Perrigo Co. corporate headquarters in Allegan. (Nov. 13, 2015)

When Target 8 investigators questioned Interim City Manager Rick Hoyer, who is also the police chief, he said the city is only going back six years to refund the company, as it did with the Somers case.

Still, it's possible the city may handle the cases differently. Hoyer said the city hasn't decided yet, but it could make actual refund payments to Perrigo while it gives the Somerses only credits against future bills.

"We don't want that," Keith Somers said. "We need cash to help pay for this mess."

He said they are now paying for their own service and helping pay for the Perrigo double-billing debacle through the rate increase.

"I don't think it's fair," he said. "It's stealing. They took our money and they won't give it back."


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