CCR2025.005-Procedure to collect REC chargesCOMMON COUNCIL - CITY OF MUSKEGO
RESOLUTION #005-2025
RESOLUTION ADOPTING PROCEDURE TO COLLECT
OUTSTANDING COMMERCIAL REC CHARGES IN THE CITY OF MUSKEGO
WHEREAS, on November 19, 2024, the Committee of the Whole (COW) reviewed and
discussed the manner in which residential equivalent connection charges (REC) are
calculated and collected for residential and commercial properties in the City of
Muskego; and
WHEREAS, presentations about the cost components of sewer charges in general, the
reserve capacity assessment charge (RCA), and the REC calculation process were
made by Ken Ward of Ruekert and Mielke and Scott Kroeger, Director of Public Works
and Development for the City of Muskego; and
WHEREAS, the discussion focused on the City's process for calculating and collecting
REC charges for commercial properties; that RECs are defined as a specific flow of
water based on a typical single-family residential dwelling; that every residential and
commercial connection to the sewer system is assigned 1.0-unit REC; that additional
RECs for a commercial property as the business expands are based upon the peak
ultimate flow of water; and
WHEREAS, per Section 290-7 of the City's Code of Ordinances, when a commercial
business opens, it is assigned 1.0-unit REC for the first year of operation; that as
businesses grow, its usage of water increases resulting in additional REC charges as a
means of offsetting the annual RCA charge paid to Milwaukee Metropolitan Sewerage
District (MMSD) by the City for capital costs of maintaining peak flow in the sewer
system; and
WHEREAS, the City sends out an annual survey for each business to determine
whether its growth warrants the need to purchase additional RECs; that businesses are
on an honor basis to complete and return the survey; that if the City determines from the
survey that additional RECs are required, a letter is provided to the business for
payment; that historically businesses have failed to return the survey which has created
billing problem for the City; and
WHEREAS, it was determined by City staff that although surveys had previously been
sent out to commercial properties, because many were never returned, follow up
determinations for additional RECs owing were not all calculated correctly and thus
billings were never generated or sent out until an in-depth audit had been conducted;
and
WHEREAS, in rectifying the above situation, City staff has created the attached
spreadsheet (Exhibit "A") which shows businesses that currently owe additional RECs,
the number of RECs owed and the calendar year upon which the REC should have
been billed by the City and paid by the business; and
WHEREAS, the COW discussed the significant amounts depicted on Exhibit "A" and
whether consideration should be given to said businesses to provide a fair collection
process due to the unusual and unique situation with billing described herein; and
Resolution #005-2025
Page 2
WHEREAS, after careful deliberation, the COW decided to implement the following plan
and recommends to Common Council for approval of the same:
1. That some form of consideration should be adopted to allow businesses the
opportunity to pay the outstanding debts listed on Exhibit "A" in a fair and
reasonable manner.
2. That since the cost of REC units increase on an annual basis, a business listed
on Exhibit "A" should pay the rate charged for REC units associated with the
calendar year for which the charges were owed and should have been billed.
3. That the provision contained in Section 290-7 of the City's Ordinance that allows
a user to pay for a RECs on an installment plan basis over a five (5) year period
at eight percent (8%) interest is fair and reasonable and should remain in place
and be used for any business on Exhibit "A" that owes 1.0 or less RECs;
For businesses on Exhibit "A" owing over 1.0 RECs, the installment plan period
shall be extended to ten (10) years at eight percent (8%) interest.
4. That the Utility Clerk is authorized to create billing invoices in line with this
Resolution and provide them to all businesses listed on Exhibit "A".
5. That the Mayor and City staff will provide Council with a proposed modification to
Section 290-7 of the City's Ordinances addressing a timeframe upon which the
annual surveys discussed herein are due back along with a penalty provision by
means of Municipal Ordinance Citation and Forfeiture for businesses who don't
return the survey in said time period.
NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of
Muskego, upon the recommendation of the Committee of the Whole, does hereby adopt
the terms and conditions of this Resolution and authorizes City Staff to implement it as
stated herein.
DATED THIS 14th DAY OF JANUARY 2025.
SPONSORED BY:
COMMITTEE OF THE WHOLE
This is to certify that this is a true and accurate copy of Resolution #005-2025, which
was adopted by the Common Council of the City of Muskego.
City Clerk
1 /25cmc