Committee denies Warrior Wash appeal of $63,600 sewer-capacity assessment, refers matter to council

The Muskegon Public Works and Safety Committee voted unanimously July 21 to deny an appeal by Warrior Wash LLC of a $63,600 residential-equivalent-connection (REC) assessment and directed the business to take the dispute to city council and the city attorney. The appeal, presented by Attorney Lisa Wood of Amundson Davis LLC and Carrie Pietrokovsky, owner of Warrior Wash, argued the city lacked authority to retroactively bill REC assessments after an internal audit discovered they were not issued when first due. "I don't believe that the city has the authority to back charge assessments," Attorney Lisa Wood said, urging the committee to reject the late billing or accept a negotiated alternative the parties had discussed. The committee and city staff described the charge as a capacity fee assessed under city ordinance, not a monthly usage fee. The mayor explained the ordinance treats REC charges as a purchase of sewer capacity and said timing of invoicing does not eliminate the obligation: "This is not a back charge ... capacity is capacity," the mayor said, describing the city's position that the assessed capacity liability remains regardless of when an invoice was sent. City staff and the committee described prior staff review and a November resolution that authorized mailing the late bills after the audit. The city’s utility staff, who said the REC calculation method applied to all car washes, noted the November resolution set the payment terms: the assessed amount is due Nov. 1, 2025, and may be paid over 10 years at 8% interest, per staff memo presented at the meeting. Warrior Wash told the committee its business has fallen about 30% since three additional car washes opened nearby, and said the assessed amount could put the small business out of operation. In phone and in-person staff meetings, the parties discussed averaging four quarters of usage rather than using a prior peak to compute RECs; that approach produced the $63,600 figure Warrior Wash presented as a potential compromise. City staff said no negotiated settlement had been adopted. The committee moved to deny the appeal and recommended that Warrior Wash pursue an appeal before council and, if necessary, legal adjudication with the city attorney involved. Committee members voted unanimously to deny the appeal and forward the matter to council for formal consideration. The committee’s decision does not itself change the assessment; the owner was told they may file a formal claim or appeal with the council and city attorney for further legal review.