South Elgin deals with an OCWRD situation
By Janelle Walker For The Courier-News January 8, 2013 6:22PM
Updated: February 10, 2013 6:09PM
SOUTH ELGIN — The South Elgin Village Board plans to consider action later this month overturning two resolutions passed by the Otter Creek Water Reclamation District the day before the water district folded.
Otter Creek Water Reclamation District (OCWRD) dissolved itself on Aug. 31. On that day, the village of South Elgin took over operations — as well as the debts and assets — of the water district, which served far-west South Elgin.
“On the last day of their existence, the Otter Creek board passed two recaptures,” Steve Super, director of community development, told the village board Monday night.
Those two “recaptures” would charge the owners of two parcels on the southwest and southeast corners of Silver Glen and Randall roads “150 percent of the actual cost at a 7.5 percent interest rate” to tap into a water main and sanitary lift station built by OCWRD, Super said.
South Elgin has used similar “recaptures” for development to the west, explained Derke Price, village attorney. “One developer brings in a pipe larger than it needs” and pays for the installation, he explained. As other developments are brought online, the developer pays for the portion of the water and sewer line it would use.
For a development that would use 30 percent of the line’s capabilities, for example, the OCWRD resolution would have charged the development for 45 percent.
For each year the development did not tap into the line, another 7.5 percent interest rate would apply, Price said.
“This was just Otter Creek trying to say … this is our internal assignment of cost to these people,” Price said. “This is an essential government service — don’t know how you get to charge 150 percent of anything.”
The charges as approved by the Otter Creek board would make the properties a hard sell to developers, Super said — one of the reasons the village’s community development staff wanted to see the resolution rescinded.
The board will consider rescinding the resolutions at the Jan. 21 board meeting.