Pelham holds hearing on city takeover of Holland Lakes sewer lift stations; estimated $647,000 in repairs

The Pelham City Council recessed its May 7 meeting for a public hearing on whether the city should assume ownership and maintenance of two privately owned sewer lift stations in the Holland Lakes subdivision, with costs to be paid by a special assessment on property owners.

Assistant City Manager (name not given) reviewed the statutory process and the neighborhood history, saying the city purchased the former Oak Mountain Amphitheater site in June 2025 and has used input from a charrette to shape development priorities. He said municipalities cannot take over deficient infrastructure until it meets city standards, and described two options: the HOA can upgrade the stations to city standards before transfer, or deed the property to the city and have the city do the work and then assess homeowners under Alabama law.

The assistant city manager presented the January 2026 cost estimate to bring the two lift stations up to standard: $284,000 for Lift Station 1 and $268,000 for Lift Station 2 for a total of about $647,000. Spread across the neighborhood's 160 lots, he said, that estimate equates to roughly $4,000 per property; Alabama law allows the city to split assessments into up to 10 equal payments, which would be about $400 annually under that repayment plan. He noted the estimate is provisional and the final assessment will be based on actual contract bids the city receives.

Kyle Lobson, identified as the Holland Lakes HOA president, told the council the HOA has rolled over maintenance costs for years and faced a major pump failure in 2025 that cost about $17,000, with total 2025 maintenance and repairs near $50,000. Lobson said city takeover would free HOA funds for neighborhood amenities.

Several residents spoke during the comment period. Beth Blackburn of Creekside Lane said she appreciates the need for repairs but opposed the assessment on principle because estimates can grow and because she owns her home outright and would not welcome a lien. Michael Wallace, a Holland Lakes resident, said he supports city takeover but urged the city to solicit competitive bids ("more than two, three, maybe four proposals") and requested that homeowners be notified within 30 days if costs change.

Assistant City Manager responses and council remarks emphasized the required bidding process and the city's prior experience with a similar Eagle Cove lift station transfer; the assistant manager said the city had sent certified notice to all 160 lots as required and had received one written objection at the time of the hearing. The council said staff would keep homeowners informed throughout the process, and that a subsequent hearing would be held after work is completed to set final assessments based on actual costs.

The hearing record includes that if 50% plus one of the property owners object, the improvement cannot proceed unless overridden by a supermajority of the council; with 160 lots, 81 objections would block the improvement absent a supermajority override.

Next steps the assistant city manager described: the city will procure required studies and bids, finalize any required feasibility work and, if the city proceeds, return for a later hearing to set assessments based on the actual cost of the work.