CHARTER TOWNSHIP OF WATERTOWN

CHARTER TOWNSHIP OF WATERTOWN

CLINTON COUNTY, MICHIGAN

ORDINANCE NO. 24

TOWNSHIP WATER SYSTEM IMPROVEMENT ORDINANCE

RESOLUTION

At a Regular meeting of the Watertown Charter Township Board of Trustees held on the 14^th day of December, 1998, at the Township Complex, 12803 S. Wacousta Road, Grand Ledge, Michigan, at 7:00 pm., there were:

PRESENT: Supervisor Peter Kempel, Clerk Joan Kunze, Treasurer Janice Thelen, Trustees Kenneth Mitchell, Christopher Pratt, Ken Himebaugh

ABSENT: Trustee George Weitzel

The following Ordinance was offered by Pratt and supported by Mitchell and the final reading was held.

ORDINANCE NO. 24

TOWNSHIP WATER SYSTEM IMPROVEMENT ORDINANCE

AN ORDINANCE TO PROVIDE FOR THE CONSTRUCTION OF ADDITIONS AND IMPROVEMENTS TO AND THE MAINTENANCE AND ADMINISTRATION OF THE POTABLE WATER SYSTEM SERVING USERS WITHIN THE TOWNSHIP; TO ESTABLISH A SYSTEM OF FEES AND CHARGES TO FUND SUCH CONSTRUCTION, MAINTENANCE, ADMINISTRATION, AND IMPROVEMENTS, IN WHOLE OR IN PART; TO ESTABLISH A WATER IMPROVEMENT FUND; AND TO PROVIDE FOR THE ADMINISTRATION OF SAID SYSTEM.

THE CHARTER TOWNSHIP OF WATERTOWN ORDAINS:

SECTION 1. TITLE: This Ordinance shall be known as the “Watertown Charter Township Water System Improvement Ordinance.”

SECTION 2. PUBLIC PURPOSE: It is hereby determined to be in the interest of the public health, safety, and welfare for the Charter Township of Watertown to establish and provide a method for the acquisition and construction of improvements to the Township public water supply system and the maintenance and administration thereof, to provide for extensions thereof, and to provide a means for the funding of said construction and orderly administration of the system.

SECTION 3. CREATION OF WATER SYSTEM IMPROVEMENT FUND: There is hereby established a fund to be known as the “Watertown Charter Township Water System Improvement Fund.” Said Fund shall receive such revenues as shall be collected from time to time pursuant to this Ordinance and as may be appropriated from time to time by the Township Board of Trustees for the purposes enumerated herein. Said fund, hereafter referred to as the “Water Improvement Fun,” may serve as a receiving fund to retain proceeds from borrowing undertaken for the purpose of constructing and acquiring improvements to said system. Revenue generated as a result of borrowing shall, however, not be utilized except in accordance with Ordinances and Resolutions pertaining to said borrowing. Revenue within the Water Improvement Fund shall be placed on deposit in a bank or other financial institution, duly qualified to do business in Michigan, and to act as a depository for municipal funds. Revenues on deposit within said Fun shall be utilized to finance, in whole or in part:

Construction of water mains and necessary appurtenances where assessable front footage is not available;

Construction in areas where public water supply is of benefit to the Township-at-large, including by way of example but not by way of limitation, major highway crossings and construction necessary to provide a suitable “loop” or alternate direction of water flow in cases of emergency, or for fire suppression purposes.

The over-sizing of water mains and appurtenant facilities to serve areas of the Township which will not immediately connect to the system and which have not participated in the cost of the construction through direct payment or special assessment.

Construction, installation, and maintenance of public fire hydrants.

SECTION 4. WATER USER FEES AND CONNECTION CHARGES:

User Fee. Each user connected to the Township Water System shall pay a user fee in an amount equal to 2.5% of the retail customer and commodity charges which are charged to the users by the Lansing Board of Water and Light or by such other retail water supplier providing services to users in the Township under Franchise or Agreement with the Township. The user charge established and collected pursuant to this Ordinance shall be deposited to and become an asset of the Township General Fund.

Connection Charges. Where property to be connected to the Township Water System has not directly participated in or been assessed by special assessment for the cost of the water main and facilities serving said property, a connection fee shall be paid to the Township in advance as follows:

Water Meter Size Connection Fee Per Residential Equivalent

.75 inches $2,200.00

1.00 inches $________

1.50 inches $________

2.00 inches $________

3.00 inches $________

4.00 inches $________

6.00 inches $________

The capital connection charges shall be deposited to and become and asset of the Water System Improvement Fun as established in Section 3 above.

SECTION 5. WATER REIMBURSEMENT AGREEMENTS: In the event that a property owner or developer desires to obtain water service by advancing the cost of construction of mains, hydrants, and other necessary appurtenances, and the mains may potentially serve properties owned or controlled by other than the owner or developer, the Township may enter into an agreement with the owner of said premises providing for reimbursement of construction cots to the entity advancing same, said reimbursement to be from direct capital connection charges only from the benefited area. If a reimbursement agreement is executed between the Township and the owner/developer, the Township shall collect from said entity an amount equal to two percent (2%) of the total construction cost for Township administrative expense which shall be determined by first reducing the actual cost of construction, including the administrative fee, by the portion thereof potentially benefiting others as determined on a residential equivalent basis. Reimbursement shall be without interest and shall be on a residential equivalent basis charged to subsequent users for standard connections in said area at the connection charges provided as Section 4B of this ordinance pertaining at the time of collection. Any excess funds over and above the agreed reimbursable costs collected from said subsequent users during the term of the agreement, and all fees collected from users in the benefited area after the term of the agreement shall be deposited in the Water Improvement Fund. No reimbursement agreement shall extend beyond ten years.

SECTION 6. MODIFICATION OF RATES AND CHARGES: The rates and charges specified herein may be amended, modified, and revised from time to time by resolution of the Watertown Charter Township Board of Trustees.

SECTION 7. COLLECTION OF REVENUE: All user fees required to be paid pursuant to this Ordinance shall be collected by the Lansing Board of Water and Light or any other supplier of retail water service to Township users under contract or franchise with the Township on a quarterly basis subject to a year-end reconciliation to actual retail sales revenues as of December 31 and transmitted to the Township Treasurer. Connection fees shall be collected by the Township upon receipt of an application requesting same. All charges for retail water service, user fees, and connection fees are made a lien on the premises to which service or connection is furnished under the provisions of 1933 PA 94 of the State of Michigan, as amended. Non-payment of any Township user charge shall be treated as a delinquency on the entire water bill and subject to the remedies provided for non-payment of water charges by the City of Lansing including legal action for collection, water shutoff and establishment of a lien against the delinquent premises.

SECTION 8. CHARGES FOR DEBT SERVICE: The rates and charges herein shall be in addition to any special assessment or other user charge system adopted to discharge bonds or other indebtedness incurred by the Township or special assessment district for construction, maintenance, and extension of said water supply system serving entities and persons within the Charter Township of Watertown.

SECTION 9. SEVERABILITY: If any section, paragraph, clause, phrase, or part of this Ordinance is for any reason held invalid by any court of competent jurisdiction or any agency, department, or commission empowered by State law for such purposes, such decision shall not affect the validity of the remaining provisions of this Ordinance and the application of those provisions to any person or circumstances not affected thereby.

SECTION 10. EFFECTIVE DATE: This Ordinance shall become effective thirty (30) days after its adoption and final publication.

VOTE ON THE FORGOING ORDINANCE WAS AS FOLLOWS:

YES: Kunze, Thelen, Pratt, Kempel, Himebaugh, Mitchell

NO: None

ABSENT: Weitzel

This Ordinance declared ADOPTED.

CERTIFICATION

I, the undersigned, duly qualified and acting Clerk of the Charter Township of Watertown, Clinton County, Michigan, do hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Township Board at a meeting held on December 14, 1998.

Dated: January 26, 1999 Joan Kunze, Clerk

Joan Kunze, Clerk

Watertown Charter Township

Introduced & First Reading: November 9, 1998

Date Published: November 29 and December 1, 1998

Second Reading & Adopted: December 14, 1998

Date Published: December 20 and December 22, 1998

Effective: January 19, 1999