Bill Text: MI SB0763 | 2011-2012 | 96th Legislature | Engrossed

---

Bill Title: Counties; boards and commissions; powers of a county department of public works; expand to include acquiring or establishing renewable energy systems. Amends secs. 1, 7, 8, 10, 11, 12 & 14 of 1957 PA 185 (MCL 123.731 et seq.).

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2012-06-07 - Referred To Committee On Energy And Technology [SB0763 Detail]

Download: Michigan-2011-SB0763-Engrossed.html

---

SB-0763, As Passed Senate, June 6, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 763

 

 

October 19, 2011, Introduced by Senators JANSEN and PAPPAGEORGE and referred to the Committee on Energy and Technology.

 

 

 

     A bill to amend 1957 PA 185, entitled

 

"An act to authorize the establishing of a department and board of

public works in counties; to prescribe the powers and duties of any

municipality subject to the provisions of this act; to authorize

the incurring of contract obligations and the issuance and payment

of bonds or notes; to provide for a pledge by a municipality of its

full faith and credit and the levy of taxes without limitation as

to rate or amount to the extent necessary; to validate obligations

issued; and to prescribe a procedure for special assessments and

condemnation,"

 

by amending sections 1, 7, 8, 10, 11, 12, and 14 (MCL 123.731,

 

123.737, 123.738, 123.740, 123.741, 123.742, and 123.744), sections

 

11 and 12 as amended by 2002 PA 407.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Members elect" means when applied to the county board of

 

commissioners, both members elected and appointed.

 

     (b) "Acquire" means acquisition by purchase, construction, or

 

any other method.

 

     (c) "Water supply system" means all plants, works,

 

instrumentalities, and properties, used or useful in connection

 

with obtaining a water supply, the treatment of water, or the

 

distribution of water, or any portion or any combination thereof.

 

     (d) "Sewage disposal system" means all sanitary sewers, storm

 

sewers, combined sanitary and storm sewers, plants, works,

 

instrumentalities, and properties, used or useful in connection

 

with the collection, treatment, or disposal of sewage including

 

storm water, sanitary sewage, or industrial wastes, or any portion

 

or any combination thereof.

 

     (e) "Refuse system" means disposal, including all equipment

 

and facilities for storing, handling, processing, and disposing of

 

refuse, including plants, works, instrumentalities, and properties,

 

used or useful in connection with the salvage or disposal of refuse

 

and used or useful in the creation, sale, or disposal of by-

 

products, including rock, sand, clay, gravel, or timber, or any

 

portion or any combination thereof.

 

     (f) "Refuse" means putrescible and nonputrescible solid

 

wastes, except body wastes, and includes garbage, rubbish, ashes,

 

incinerator ash, incinerator residue, street cleanings, and

 

industrial wastes.

 

     (g) "Lake improvements" means any improvements now or

 

hereafter authorized by law to be made to any waters of the this

 

state by a municipality or any board or body which may be

 

established by a municipality for that purpose, or any portion or

 

any combination thereof.

 

     (h) "Erosion control" means installation of structures

 

designed to control erosion or protect property adjacent to the

 

great lakes Great Lakes or property affected by levels of the great

 

lakes Great Lakes from erosion.

 

     (i) "Municipality" means a county, city, village, township,

 

charter township, district, or authority existing under the laws of

 

this state.

 

     (j) "Resolution" means a resolution or an ordinance, if the

 

governing body of a municipality chooses to act by ordinance rather

 

than by resolution.

 

     (k) "Governing body" means, in the case of a county, the

 

county board of commissioners; in the case of a city, the council,

 

common council, commission, or other body having legislative

 

powers; in the case of a village, the council, common council,

 

commission, board of trustees, or other body having legislative

 

powers; in the case of a township, the township board; in the case

 

of a charter township, the township board; in the case of a

 

drainage district, the drain commissioner or the drainage board;

 

and in the case of another district or of an authority, the body in

 

which is lodged general governing powers.

 

     (l) "Renewable energy system" means that term as defined in

 

section 11 of the clean, renewable, and efficient energy act, 2008

 

PA 295, MCL 460.1011.

 

     Sec. 7. A county establishing a department of public works

 

shall have the following powers to be administered by the board of

 

public works subject to any limitations thereon:

 

     (a) To acquire a water supply system within 1 or more areas in

 

the county and to improve, enlarge, extend, operate, and maintain

 

the system.

 

     (b) To acquire a sewage disposal system within 1 or more areas

 

in the county and to improve, enlarge, extend, operate, and

 

maintain the system.

 

     (c) To acquire a refuse system within 1 or more areas in the

 

county and to improve, enlarge, extend, operate, and maintain the

 

system.

 

     (d) To make lake improvements within 1 or more areas in the

 

county and to improve, enlarge, extend, operate, and maintain the

 

improvements.

 

     (e) To acquire an erosion control system within 1 or more

 

areas in the county and to improve, enlarge, extend, operate, and

 

maintain the improvements.system.

 

     (f) To acquire a renewable energy system within 1 or more

 

areas in the county and to improve, enlarge, extend, operate, and

 

maintain the system.

 

     Sec. 8. A county operating under this act may acquire outside

 

its corporate limits any part of a water supply system which that

 

is necessary for the purpose of securing a source of supply and may

 

acquire outside its corporate limits any part of a sewage disposal

 

system or refuse system which that is necessary for the purpose of

 

disposing, including treatment or incineration, of its sewage or

 

refuse. A county operating under this act may also acquire any part

 

of a water supply system, a sewage disposal system, a renewable

 

energy system, a refuse system or make lake improvements, or

 

acquire erosion control systems in an adjoining county or counties

 

upon the consent expressed by contract with or resolution of the

 

governing body of the municipality or municipalities in such that

 

adjoining county or counties in which such that part of the system

 

or lake improvements is to be located or which is to be served by

 

such that part of the system. The exercise by any county of such

 

those powers outside its corporate limits shall be are subject to

 

all constitutional provisions relating thereto.

 

     Sec. 10. The establishment of a county water supply system,

 

sewage disposal system, renewable energy system, or refuse system,

 

or the making of county lake improvements or erosion control

 

systems, shall be approved by a majority of the members elect of

 

the county board of commissioners. Prior to Before approval of lake

 

improvements, the county board of commissioners shall submit to the

 

department of natural resources preliminary plans which that

 

provide for making the lake improvements for the department of

 

natural resources' review and approval. Before approval of erosion

 

control systems, the county board of commissioners shall submit to

 

the department of natural resources preliminary plans for the

 

department's review and approval. Before construction of erosion

 

control systems, final plans and specifications shall be approved

 

by the department. After the county board of commissioners'

 

approval, the board of public works shall have power to acquire the

 

system or make improvements and to improve, enlarge, extend,

 

operate, and maintain the same, subject to any restrictions placed

 

thereon by the county board of commissioners in the resolution

 

establishing the same or by this act. Any 2 or more systems

 

established by a county and the areas served thereby may be merged

 

or combined by resolution adopted by a majority of the members

 

elect of its county board of commissioners after which the merged

 

or combined systems may be improved, enlarged, extended, operated,

 

and maintained under this act as a single system serving the total

 

areas of the systems but a merger or combination shall not affect

 

either the rights and obligations acquired by a municipality by any

 

contract with respect to an established system or the security of

 

any bonds or the prompt payment of principal or interest thereon. A

 

resolution adopted by the governing body of any city, village,

 

township, or charter township authorizing and approving a contract

 

with a county acting through its board of public works with respect

 

to the financing or location of or service from any sewage disposal

 

or refuse system constitutes, notwithstanding any statutory or

 

charter limitation to the contrary, a permit to acquire, improve,

 

enlarge, extend, operate, and maintain the sewage disposal or

 

refuse system within the corporate limits of the city, village,

 

township, or charter township, but no treatment or disposal plants,

 

incinerators, works, grounds, filter beds, or other similar sewage

 

or refuse disposal facilities, sanitary landfills, or dumps shall

 

actually be located in any municipality without a resolution and

 

contract.

 

     Sec. 11. (1) The acquirement of a water supply system, sewage

 

disposal system, renewable energy system, or refuse system, or the

 

making of lake improvements or erosion control systems, or the

 

improvement, enlargement, or extension of any of these may be

 

financed by 1 or more of the following methods:

 

     (a) By the issuance of revenue bonds under the revenue bond

 

act of 1933, 1933 PA 94, MCL 141.101 to 141.140, or any other

 

applicable act.

 

     (b) By the issuance of bonds in anticipation of payments to

 

become due under contracts where 1 or more municipalities agree to

 

pay to the county operating under this act certain sums toward the

 

cost of the acquisition, improvement, enlargement, or extension of

 

a project that may be made under this act.

 

     (c) By the issuance of bonds in anticipation of the payment of

 

special assessments made by the board of public works.

 

     (d) By money advanced by a county operating under this act

 

under agreements with a municipality or municipalities for the

 

repayment of the money.

 

     (e) By money advanced, from time to time, before or during

 

construction of a project by a public corporation, in which event

 

the county operating under this act shall reimburse the

 

corporation, with interest not to exceed 8% per annum or without

 

interest as may be agreed, when funds are available for that

 

purpose. The obligation of the county to make the reimbursement may

 

be evidenced by a contract or note, the contract or note may be

 

made payable out of the payments to be made by municipalities,

 

under contracts as described in section 12 or 15, or out of the

 

proceeds of bonds issued under this act by the county or out of any

 

other available funds. The contract or note is not subject to the

 

revised municipal finance act, 2001 PA 34, MCL 141.2101 to

 

141.2821.

 

     (2) Bonds issued under this act shall be authorized by an

 

ordinance or a resolution approved by the board of public works and

 

adopted by the county board of commissioners of the county

 

operating under this act. The county board of commissioners is

 

authorized by a 3/5 vote of its members elect, to pledge the full

 

faith and credit of the county for the prompt payment of the

 

principal of and interest on any bonds issued pursuant to this act.

 

The county's full faith and credit may be pledged to the payment of

 

principal and interest on revenue bonds issued under subsection

 

(1)(a). If it becomes necessary for the county operating under this

 

act to advance any money, other than its share of the cost of the

 

project, for the payment of principal and interest, then it shall

 

be entitled to reimbursement from any surplus from time to time

 

existing in the fund from which the principal and interest are

 

primarily payable. If the faith and credit of the county is pledged

 

for the payment of principal of and interest on any bonds issued

 

under this act, the county may, in the case of insufficiency of

 

funds primarily pledged for the payment, pay the funds from its

 

general fund or levy taxes without limitation as to rate or amount

 

in addition to any other taxes that the county is authorized to

 

levy but not in excess of the rate or amount necessary to make up

 

the deficiency. The bonds shall be issued in the name of the county

 

and shall be executed by the chairperson of the county board of

 

commissioners and its county clerk, who shall also cause their

 

facsimile signatures to be affixed to the interest coupons to be

 

attached to the bonds. The county clerk shall also affix to the

 

bonds the seal of the county. Bonds issued under this act are

 

negotiable instruments and shall be serial bonds payable annually,

 

with the first maturity due not more than 5 years and the last

 

maturity not more than 40 years from the date of issue. This

 

subsection shall apply to special assessment bonds as well as other

 

bonds. Annual maturity payable after 5 years from the date of the

 

bonds shall not be less than 1/4 of the amount of any subsequent

 

maturity on the same series of bonds. The bonds shall bear interest

 

at not more than the maximum rate permitted by the revised

 

municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821,

 

payable semiannually except that the first coupon may be for any

 

number of months not exceeding 10. The bonds and coupons shall be

 

made payable in lawful money of the United States of America and

 

shall be exempt from all taxation by this state or by any taxing

 

authority within this state. The county board of commissioners may

 

authorize the board of public works to sell the bonds in accordance

 

with the laws of this state.

 

     Sec. 12. (1) A county operating under this act and any 1 or

 

more municipalities including the county itself may enter into a

 

contract or contracts for the acquisition, improvement,

 

enlargement, or extension of a water supply system, a sewage

 

disposal system, a renewable energy system, or a refuse system, or

 

the making of lake improvements or erosion control systems and for

 

the payment of the costs by the contracting municipalities, with

 

interest, over a period not exceeding 40 years.

 

     (2) In the contract, each contracting municipality may pledge

 

its full faith and credit for the payment of its obligations under

 

the contract. If the municipality has taxing power, it may each

 

year levy a tax in an amount that will be sufficient for the prompt

 

payment of all or part of the contract obligations due before the

 

following year's tax collection. If the contract or an unlimited

 

tax pledge in support of the contract has been approved by the

 

electors, the tax may be in addition to any tax that the

 

municipality may otherwise be authorized to levy and may be imposed

 

without limitation as to rate or amount but shall not be in excess

 

of the rate or amount necessary to pay the contract obligation. The

 

contract is not subject to the revised municipal finance act, 2001

 

PA 34, MCL 141.2101 to 141.2821. For the payment of contractual

 

obligations incurred under this act, a township shall levy a tax

 

only on the taxable property in the unincorporated areas of the

 

township unless the township and a village have agreed that a part

 

of the capacity in the county system allocated to the township by

 

contract pursuant to this act will be used to serve areas in a

 

village located wholly or partly within the township and the

 

village has not itself agreed to purchase the capacity in the

 

county system. If a contracting municipality at the time of its

 

annual tax levy has on hand in cash any amount pledged to the

 

payment of the current obligations for which the tax levy is to be

 

made, then the annual tax levy may be reduced by that amount. For

 

the purpose of obtaining the credit, funds may be raised by a

 

municipality by using 1 or more of the following methods:

 

     (a) By service charges to users of the system or lake

 

improvements.

 

     (b) By special assessment upon lands benefited.

 

     (c) By the exaction of charges for the connection of

 

properties, directly or indirectly, to the system or for the

 

availability of the system to serve properties, directly or

 

indirectly, or at a present or future time.

 

     (d) By setting aside any state collected funds disbursed to

 

the municipality and usable therefor.

 

     (e) By setting aside any other available money.

 

     (3) For the purpose of obtaining the credit, municipalities

 

contracting for the acquisition, improvement, enlargement, or

 

extension of an erosion control system shall levy special

 

assessments upon all lands benefited to cover not less than 3/4 of

 

the total project cost contracted for by the local unit. A

 

municipality may agree to raise all or any part of its contract

 

obligation by any of the methods provided in this section that are

 

available. The powers in this act granted to any municipality shall

 

be exercised by its governing body. A contract entered into before

 

May 12, 1959, which complies with this act, is validated.

 

     Sec. 14. A county operating under this act, by action of its

 

board of public works, may acquire property for a water supply

 

system, an erosion control system, a renewable energy system, a

 

sewage disposal system, or a refuse system or for lake improvements

 

by purchase, construction, lease, gift, devise, or condemnation,

 

either within or without its corporate limits and may hold, manage,

 

control, sell, exchange, or lease the property. Real estate shall

 

not be disposed of without the approval of the county board of

 

commissioners. For the purpose of condemnation, it may proceed as

 

provided in chapter 3. If the property acquired by a county is

 

already being used for water supply, sewage or refuse disposal or

 

lake improvement purposes, such that use may be continued by the

 

county without a resolution of or contract with the municipality in

 

which the property is located.