Eastgate Apartment Owner Required To Pay Underbilled Sewage Fees
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Jennifer Peryam-jperyam@timesuniononline.com
Eastgate Apartment will be required to pay the full amount over a year’s period for underbilled wastewater services for its apartment complex. Warsaw Board of Public Works and Safety Friday approved the apartment complex being required to pay the total $23,238 payment for wastewater services. State statute allows cities and towns to backbill for six years. In early October the wastewater office discovered that there was an additional 10-unit apartment building in the complex that was not billed for wastewater services. The complex was only being billed for nine buildings, according to Mary Lou Plummer, wastewater payment office manager. Plummer said the apartment complex had not been late on any of their other payments to the city. The board Oct. 12 approved the apartment complex to be required to pay the full amount of $23,238 over a year for underbilled wastewater fees. The board Nov. 15 tabled a decision on allowing the complex more time to pay the unpaid wastewater bill. Gerald Kozuch, Eastgate Apartments owner, and Chris Paparis, apartment corporate manager, attended Friday’s meeting and said they were unaware they were being billed for only nine units when a 10th unit was being used. They requested the complex be only required to pay $20,000 of the $23,238 unpaid bill, and instead of a year be allowed five years to pay the $20,000. Paparis said the complex received nine water bills and nine sewage bills separately and other places where they own apartments the bills for water and sewage come on one bill. “I understand they have other complexes in other cities that the sewage and water come on one bill. On the other hand we sent out nine bills and there are 10 buildings and each letter references which building was being billed,” Plummer said. “When he found out there were two buildings on one water meter that would have alerted him there were 10 buildings there and question why he was only getting nine sewage bills.” Paparis, who was responsible for paying the wastewater bills, said the bills came to the South Bend office. He said he was not on site to know there were 10 units and they were not being billed for the 10th unit. “This is the only city where we have property where it is on separate bills,” Paparis said. “We understand we owe you money, we are not disagreeing with that.” Kozuch said the apartment complex cannot afford to pay the additional $3,230. “I don’t think we can do that. I just got a re-loan on that property at a very difficult time and no one is willing to loan you any money on anything as far as apartments and restaurants go,” Kozuch said. “That is a lot of money for us to pay over one year especially when we knew nothing about it,” he added. Warsaw Mayor Joe Thallemer said he would be willing to meet with Kozuch at a later time to discuss the situation, and that the board made its decision in a public meeting. “This board has the authority to make these decisions and I think they have made their decision,” Thallemer said. Charlie Smith, board member, said he was opposed to allowing the complex to only pay $20,000 over five years. Thallemer and Jeff Grose, board member, agreed. “This is a service they have received and there is not any interest or fees on that being charged so in my estimation they are getting a break,” Smith said. Smith said he did not support allowing the time extension for repayment. “In my opinion we are not a bank or financial institution and I don’t want to take on this obligation to pay back on behalf of the city over five years,” he said. Smith said the city is providing lenience and giving the complex 12 months to pay the underbilled payment. “It is not the city’s obligation to figure out how you are going to finance this and how you will pay it back,” Smith said. Grose said he agreed they should be required to pay back the full amount, and did not agree with the five-year period. Thallemer said he was opposed to allowing the complex the five-year period to make its repayment. “All that tells me is the only amount they can pay is $4,000 a year,” Thallemer said.
