Bill Text: MI HB5129 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Counties; boards and commissions; public works districts; create. Amends title & secs. 1, 2 & 27 of 1957 PA 185 (MCL 123.731 et seq.) & adds secs. 2a, 57, 57a, 58, 58a, 58b, 58c, 58d, 59, 60, 61, 62, 62a, 62b, 63, 63a, 64, 65, 66, 67, 68, 69 & 69a.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-11-01 - Printed Bill Filed 10/28/2011 [HB5129 Detail]
Download: Michigan-2011-HB5129-Introduced.html
HOUSE BILL No. 5129
October 27, 2011, Introduced by Rep. Crawford and referred to the Committee on Local, Intergovernmental, and Regional Affairs.
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 the title and sections 1, 2, and 27 (MCL 123.731,
123.732, and 123.757), section 2 as amended by 2011 PA 110, and by
adding sections 2a, 57, 57a, 58, 58a, 58b, 58c, 58d, 59, 60, 61,
62, 62a, 62b, 63, 63a, 64, 65, 66, 67, 68, 69, and 69a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
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 creation of public works districts; to authorize the
transfer of property to public works districts; 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.
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) "Project" means to acquire, construct, operate, and
maintain any public works system.
(m) "Public corporation" includes this state, counties,
cities, villages, townships, metropolitan districts, and
authorities created by or pursuant to state law.
(n) "Public works system" means water supply system, sewage
disposal system, refuse system, lake improvements, system for
erosion control, or any combination of these.
Sec.
2. (1) Except as provided by in
subsection (5) and
section 2a, the county board of commissioners, by resolution
adopted by a 2/3 vote of its elected members, may establish a
department of public works for the administration of the powers
conferred upon the county by this act. The department of public
works shall be under the general control of the county board of
commissioners and under the immediate control of a board of public
works. Except as provided in this subsection and subsection (3),
the board of public works shall consist of 5, 7, or 9 members. In a
county with a population of more than 85,000 and less than 90,000
according to the latest federal decennial census, the board of
public works may consist of 11, 13, or 15 members. The members
shall be appointed or removed in the manner prescribed in this
section.
(2) The initial terms of the appointed members shall be
staggered for terms of not more than 3 years as prescribed by the
county board of commissioners. Membership on the board of public
works shall include the following:
(a) The county drain commissioner of the county in which the
department of public works is established, if any.
(b) Except as otherwise provided in subdivision (c), 4, 6, or
8 other members appointed by the county board of commissioners,
with the exception of a person named in subdivision (a). Members of
the county board of commissioners may be appointed as members of
the board of public works. Appointments of members of the county
board of commissioners to the board of public works made before
April 12, 1984, are valid.
(c) If the board of public works consists of 11, 13, or 15
members, 10, 12, or 14 other members appointed by the county board
of commissioners, with the exception of a person named in
subdivision (a). Members of the county board of commissioners may
be appointed as members of the board of public works. In addition,
the township supervisor of a township within the county or the
township supervisor of a township that receives service by the
department of public works may be appointed as a member of the
board of public works. A township supervisor appointed as a member
of
the board of public works shall not be deemed is not considered
to hold 2 or more incompatible offices at the same time.
(d) If a county does not have a drain commissioner, then the
county board of commissioners shall appoint an additional member
subject to the same appointment procedures provided in subdivisions
(b), (c), and (e).
(e) If a county department of public works serves another
county, or a portion of another county, each of the 4, 6, or 8
members, or 10, 12, or 14 members as provided in subdivision (c),
shall be a resident of the geographic area served by the department
of public works. If an area within a county does not utilize or is
not otherwise serviced by the department of public works, a member
of the board of public works shall not be a resident of the area
not served. If a city, village, or township or a portion of a city,
village, or township is located in another county, the chief
elected official of the city, village, or township shall serve as
an advisory board to the board of public works and shall consult
with and advise the board of public works as to rate schedules,
proposed expansion of services, and capital improvements.
(3)
Except as provided by in subsection (5) and section 2a,
the county board of commissioners, by resolution adopted by a 2/3
vote of all its members, may designate as the board of public works
or remove as the board of public works 1 of the following, and
after the adoption of the resolution the person or body designated
shall be the board of public works for that county with all the
authority, powers, and duties conferred by law upon the board of
public works:
(a) The board of county road commissioners.
(b) The drain commissioner.
(c) The public works commissioner designated or elected and
holding office pursuant to section 21 of the drain code of 1956,
1956 PA 40, MCL 280.21.
(4)
The Except as otherwise
provided in this act, the board of
public works shall be considered an agency of the county. The
county board of commissioners shall make rules in respect to the
department
of public works which that
it considers advisable and as
permitted by law. The members of the board of public works shall
not be full-time officers of the county. The duties of the county
drain commissioner, any county road commissioner, or any member of
the county board of commissioners who serves on the board of public
works are declared to be additional and separate duties not
compensated for by the established salary or per diem of the
commissioner. The compensation of members shall be fixed by the
county board of commissioners.
(5) In any county organized under 1966 PA 293, MCL 45.501 to
45.521, a department of public works that is or was formed under
this act and existing on the date the county charter is or was
adopted and that has not been discontinued or terminated, or had
its duties transferred by charter, and a department of public works
established by charter shall be considered established pursuant to
this act with all authority, powers, and duties conferred by this
act upon a department of public works and be under the control of
and administered by the county executive or chief county
administrative officer who shall have all the authority, powers,
and duties conferred by this act upon the board of public works.
The provisions of this act granting to a county board of
commissioners authority over such a department of public works
shall be subject to any county charter. All provisions of this act
concerning actions by a board of public works shall require
appropriate action only by the county executive or chief county
administrative officer when this subsection applies. An action of
the county executive or chief county administrative officer in
regard to rate schedule changes, expansion or reduction of
services, or proposed capital expenditures is not effective unless
and until approved by a majority vote of the members of the county
board of commissioners elected and serving. After submission by the
county executive or chief county administrative officer, if the
county board of commissioners fails to approve or reject within 45
days after the next regularly scheduled meeting of the county board
of commissioners, the proposals are effective.
Sec. 2a. In any county organized under 1973 PA 139, MCL 45.551
to 45.573, the county board of commissioners may establish a board
of public works and department of public works for the
administration of the powers conferred upon the county by this act.
If the county has an elected drain commissioner, the elected drain
commissioner shall be designated as the board of public works for
that county with all the authority, powers, and duties conferred by
law upon the board of public works.
Sec.
27. All Except as otherwise
provided in this section, all
assessments spread under the provisions of this act shall be
subject to the same interest, collection, and penalty charges and
shall
be collected in the same manner , as
county taxes. If
collection is done by a city or township in July, the assessments
shall be collected in the same manner as taxes collected in July.
All
collecting officers are hereby vested with the same power and
authority
in the collection of such the
assessments as are or may
be conferred upon them by law for collecting general county taxes.
All collections of special assessments made by city and township
treasurers shall be turned over to the county treasurer. All
provisions of law in respect to the return of uncollected county
taxes by the treasurers of cities and townships shall apply to the
return of uncollected special assessments spread upon the tax rolls
under the provisions of this act, and all provisions of law in
respect to the sale of lands for the nonpayment of taxes and the
redemption
thereof, shall likewise apply in case of the nonpayment
of special assessments.
Sec. 57. (1) In a county that owns or operates a water supply
system, sewage disposal system, refuse system, lake improvements,
or system for erosion control under this act or a system or systems
of water, sewer, or sewage disposal improvements or services, or
garbage or rubbish collection and disposal facilities and services
under the county public improvement act of 1939, 1939 PA 342, MCL
46.171 to 46.188, the county board of commissioners may, by
resolution, create a public works district to own or operate a
public works system.
(2) A public corporation, other than a county, that owns or
operates a public works system or has determined the necessity of a
project may, by resolution of its governing body, petition the
county board of commissioners to establish a public works district
to construct, own, operate, and maintain a public works system.
Within 30 days of receipt of a petition submitted under this
subsection, the county board of commissioners at its next regular
meeting may by majority vote create a public works district to own
or operate a public works system. Except as otherwise provided in
this subsection, the petition shall be transmitted to the
chairperson of the board of public works who shall proceed as
provided in this act. If the powers and duties of the board of
public works have been delegated to the county drain commissioner
as provided by section 2a, then the petition shall be transmitted
to the county drain commissioner who shall proceed as provided in
this act.
Sec. 57a. After adopting the resolution designating a public
works district, a public works district is a body corporate with
the power to sue and be sued in any court of this state, and to
hold, manage, and dispose of real and personal property, in
addition to any power or authority conferred upon it by law. The
board of public works shall be responsible for operating and
maintaining the public works system.
Sec. 58. (1) A meeting of the board of public works may be
called by the chairperson, on notice sent by registered mail to
each member, setting forth the time, date, and place of the
meeting. The notice shall be mailed not less than 5 days before the
time of the meeting. The affidavit of the chairperson as to the
mailing shall be conclusive proof that notice was mailed. A
majority of the members of the board of public works shall
constitute a quorum for the transaction of business, but a lesser
number may adjourn from time to time. A meeting may be adjourned
from time to time. Unless otherwise provided in this act, an action
shall not be taken by the board except by a majority vote of its
members. In the event of the adjournment of a hearing, it shall not
be necessary to advertise the adjournment of the hearing. All
orders issued by the board of public works shall be signed by the
chairperson.
(2) If the powers and duties of the board of public works have
been delegated to the county drain commissioner as provided by
section 2a, then the county drain commissioner may call a meeting
setting forth the time, date, and place of the meeting, and
providing notice by registered mail to the public corporations
obligated. The notice shall be posted at the office of the county
drain commissioner not less than 5 days before the time of the
meeting.
Sec. 58a. (1) Except as provided in subsection (2), upon
receipt of a petition as provided in this act, the chairperson of
the board of public works shall call the first meeting of the board
of public works for the district.
(2) If the powers and duties of the board of public works have
been delegated to the county drain commissioner as provided by
section 2a, then the county drain commissioner shall call the first
meeting for the public works district.
Sec. 58b. At its first meeting, the board of public works
shall propose the project and make a tentative determination as to
the sufficiency of the description and the practicability of the
proposed project, and shall further make a tentative determination
of the public corporations to be obligated. The board of public
works shall give a name to the project and to the public works
district. The district shall be composed of the public corporations
to be charged for the cost of the project. After the board of
public works has made the determination, the board shall fix a
time, date, and place it will meet to hear objections to the
proposed project and to the matter of assessing the cost of the
project to the designated public corporations. Notice of the
hearing shall be published twice in the county by inserting the
notice in at least 1 newspaper published in the county, designated
by the board of public works, with the first publication to be not
less than 20 days before the time of the hearing. The notice shall
also be sent by registered mail to the clerk or secretary of each
public corporation proposed to be assessed, except that a notice to
this state shall be sent to the director of the state department of
transportation and a notice to a county shall be sent to both the
county clerk and the county road commission. The mailing shall be
made not less than 20 days before the time of the hearing. The
notice shall be signed by the chairperson of the board and proof of
the publication and mailing of the notice shall be filed in his or
her office. The board of public works may provide a form to be
substantially followed in the giving of the notice. After the
hearing, the board of public works shall make a determination as to
the sufficiency of the petition, the practicability of the project,
whether the project should be constructed, and if so, the public
corporations to be assessed, and shall issue its order accordingly.
The order shall be known as the final order of determination. A
public corporation shall not be eliminated from, or added to, those
tentatively determined to be assessed without a rehearing after
notice.
Sec. 58c. The board of public works shall secure from a
competent engineer, plans, specifications, and an estimate of cost
of the proposed project, which, when approved and adopted by the
board of public works, shall be filed with the chairperson of the
board of public works. In approving the plans and specifications,
the board of public works shall not be limited to the route of the
projects described in the petition or the final order of
determination. The board of public works shall tentatively
establish the percentage of the cost of the project or of the
several sections or parts of the project which is to be borne by
each public corporation. In making the apportionments, the board of
public works shall take into consideration the benefits to accrue
to each public corporation and also the extent to which each public
corporation contributes to the conditions which make the projects
necessary. Before a tentative apportionment is made, the board of
public works shall designate the area to be served by the project,
which may or may not include all of the area in a public
corporation to be assessed, and may divide the project into
sections or parts for purposes of apportionment or construction.
The county is not prohibited from assuming any additional cost of
the project if 2/3 of the members elect of the county board of
commissioners vote in favor thereof. The apportionment shall only
apply to the proposed project.
Sec. 58d. After the tentative apportionments of cost have been
made, the board of public works shall set a time, date, and place
it will meet and hear objections to the apportionments. Notice of
the hearing shall be published twice in the county by inserting the
notice in at least 1 newspaper published in the county, designated
by the board of public works, the first publication to be not less
than 20 days before the time of the hearing. The notice shall also
be sent by registered mail to the clerk or secretary of each public
corporation proposed to be assessed, except that a notice to this
state shall be sent to the director of the state department of
transportation and a notice to the county shall be sent both to the
county clerk and the county road commission. The mailing shall be
made not less than 20 days before the time of hearing. The notice
shall be signed by the chairperson and proof of the publication and
mailing of the notice shall be filed in his or her office. The
board of public works may provide a form to be substantially
followed in the giving of the notice. The notice shall include
tentative apportionments to the several public corporations. After
the hearing, the board of public works may confirm the
apportionments as tentatively made, or if it considers the
apportionments to be inequitable, it shall readjust the
apportionments. If the readjustment involves the increasing of an
assessment and an increase shall not be consented to by resolution
of the governing body of the public corporation whose assessment
was increased, before any readjusted apportionments are confirmed
the board of public works shall set a time, date, and place for a
rehearing and shall give notice of the hearing as in the first
instance. The notice shall also set forth the apportionments as
readjusted. After confirmation, the board of public works shall
issue its order setting forth the several apportionments as
confirmed. The order shall be known as the final order of
apportionment.
Sec. 59. The board of public works shall then proceed, if
necessary, to secure the necessary lands or rights of way for the
proposed project. If the lands or rights of way cannot be secured
by negotiation, then the board of public works may proceed under
1911 PA 149, MCL 213.21 to 213.25, and shall be considered a "state
agency" as that term is used in 1911 PA 149, MCL 213.21 to 213.25.
If the project is one in which the federal government is
participating in any manner, then the lands or rights of way may be
acquired through proceedings brought by the federal government
under any appropriate federal act. In the event lands or rights of
way are acquired through proceedings under a federal act, then the
amount of the awards in those proceedings are a part of the cost of
the project to the same extent as if the condemnation proceedings
had been taken under the laws of this state.
Sec. 60. The board of public works may contract with the
federal government, which term as used in this section includes any
agency of the federal government, whereby the federal government
will pay the whole or any part of the cost of the project or will
perform the whole or any part of the work connected with the
project, which contract may include any specific terms required by
act of congress or federal regulation as a condition for
participation on the part of the federal government. The board of
public works may also contract with any private corporation or with
any public corporation, which term as used in this section includes
any agency of the public corporation, in respect to any matter
connected with the construction, operation, maintenance, use, or
services of any project. A contract may provide for service or
transportation charges and that any payments made or work done by
the corporation shall relieve it in whole or in part from
assessment for the cost of the projects or of its maintenance and
operation. Construction work shall not be undertaken until the
board of public works has advertised for and received bids for the
performance of the work, except for construction work to be
performed by the federal government or a public corporation.
Sec. 61. The county treasurer shall be the custodian of the
funds of the public works district. The county treasurer may
designate 1 or more of his or her deputies who may act for him or
her in the performance of any of his or her duties under this
section. The board of public works may require the county treasurer
and any designated deputy county treasurer to furnish a bond
payable to the public works district, in addition to any bond
payable to the county, conditioned upon the faithful discharge of
his or her duties in respect to money belonging to the public works
district, the premium of the bond to be paid by the public works
district. Money held by the treasurer shall be paid out only upon
order of the board of public works, except that no order shall be
required for the payment of principal and interest on bonds.
Sec. 62. After the confirmation of the apportionments by the
board of public works, the chairperson of the board of public works
shall prepare a special assessment roll assessing the estimated
cost of the project, or if the actual cost has been ascertained,
then the actual cost, against the several public corporations in
accordance with the confirmed apportionments. The board of public
works may provide for the payment of the special assessments in any
number of annual installments, not exceeding 30, but an installment
shall not be less than 1/4 of any subsequent installment. The board
of public works shall fix the commencement date of interest to be
paid upon unpaid installments, not to exceed an amount sufficient
to pay interest on bonds or other evidences of indebtedness issued
or to be issued by the public works district, which interest shall
become due annually on the day and month upon which the annual
installments become due but may become due in years before the due
date of the first installment. The board of public works may
provide for the payment of installments in advance of their
respective due dates and may prescribe the terms and conditions
thereof. The board of public works shall fix the date, not later
than 4 years after confirmation on which the first installment of
special assessments shall become due and payable so that each
public corporation can make a tax levy for the payment, and
subsequent installments shall become due annually on the same day
and month of subsequent years.
Sec. 62a. (1) The special assessment roll shall contain the
name of each public corporation assessed, the total estimated cost
of the project, or actual cost if the same has been ascertained at
the time of the preparation of the roll, the percentage apportioned
to each public corporation, the amount of the assessment against
each public corporation based upon the percentage of apportionment,
and the amount of each installment if the assessment is divided
into annual installments. After the special assessment roll has
been prepared, it shall be presented to the board of public works
for approval. When the roll has been approved, then a statement to
that effect, signed by the chairperson of the board of public
works, shall be affixed to the roll setting forth the date of
approval. The chairperson of the board of public works shall then
certify to each public corporation assessed the amount of the total
assessment against it, the amount of the various installments if
the assessment is divided into installments, the due date of each
installment, and the rate of interest upon installments from time
to time unpaid. The chairperson of the board of public works each
year, at least 30 days before the time of the levying of taxes by
each public corporation, shall notify each public corporation of
the amount of the installment and interest next becoming due, but
the failure to notify a public corporation shall not excuse it from
making payment of the installment and interest. On or before the
due date of an installment, each public corporation shall pay to
the county treasurer the full amount thereof, together with
interest accruing to the due date. If a public corporation fails or
neglects to account to the county treasurer for the amount of an
installment and interest, then the county treasurer shall advance
the amount from county funds if bonds or other evidences of
indebtedness have been issued to finance the project, in
anticipation of the collection of the installment and interest
pursuant to this act and the county board of commissioners has
previously acted, by a resolution adopted by a 2/3 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 the
bonds or evidences of indebtedness.
(2) The county treasurer shall immediately notify the public
corporation of the amount advanced by the county on account of the
default by the public corporation in paying the installment and
interest assessed against it. The county treasurer shall also
notify the state treasurer, or other appropriate disbursing
official, who shall deduct the amount from money in his or her
possession belonging to the public corporation which is not pledged
to the payment of debts, but the state treasurer or other official
shall not withhold in any 1 year a sum greater than 25% of the
total amount owed by the delinquent public corporation as stated in
the notice from the county treasurer. This section does not permit
the deduction of money in contravention of the state constitution
of 1963.
(3) The county board of commissioners of a county which has
advanced money for a public corporation and which has not been
reimbursed, may order the public corporation and its officers to
levy upon its next tax roll an amount sufficient to make the
reimbursement on or before the date when its taxes become
delinquent. The public corporation and its tax levying and
collecting officials shall levy and collect those taxes and
reimburse the county. The foregoing shall not prevent the county
from obtaining reimbursement by any other legal method. Assessments
against this state shall be certified to the director of the state
department of transportation and paid from state highway funds. The
tax levying officials of each of the other public corporations
assessed shall levy sufficient taxes to pay assessment installments
and interest as the same become due unless there has been set aside
money sufficient therefor. A city or village may elect to spread
the tax levy upon the county tax roll instead of the city or
village tax roll. If a special assessment roll is prepared upon the
basis of the estimated cost of the project, then after the actual
cost has been ascertained and determined by the board of public
works, the special assessments and the installments shall be
corrected by adding any deficiency or deducting any excess. The
board of public works may order the corrections to be made upon the
original roll or may order that a new corrected roll or a
supplemental roll be prepared and submitted for approval by the
board of public works.
Sec. 62b. Taxes levied by a public corporation for the payment
of assessments shall not be considered to be within any statutory
or charter tax limitation. A public corporation may impose taxes
without limitation as to rate or amount for the payment of the
assessments in anticipation of which bonds are issued, which taxes
shall be in addition to any taxes that the public corporation may
otherwise be authorized to levy but not more than the rate or
amount sufficient therefor.
Sec. 63. The board of public works may issue 1 or more series
of bonds for and on behalf of the public works district, in
anticipation of the collection of any or all installments of
assessments or any part thereof, and pledge the full faith and
credit of the public works district for the prompt payment of the
principal and the interest. The bonds shall mature serially with
the last maturity not later than 2-1/2 years after the due date of
the last installment of the assessments and there may be more than
1 principal maturity date during any 12-month period. The bonds
shall be signed by the chairperson of the board of public works and
at least 1 other member of the board of public works and the
facsimile signature of the chairperson shall be affixed to the
interest coupons attached to the bonds. Collections of both
principal and interest on all installments of assessments in
anticipation of which bonds shall have been issued shall be kept in
a separate bank account by the county treasurer and used for no
other purpose than the payment of principal and interest on the
bonds until the full payment thereof.
Sec. 63a. If for any reason the original assessments are not
sufficient to pay the principal and interest on bonds issued in
anticipation of the collection thereof, then the board of public
works shall make additional assessments as may be necessary,
apportioned as in the first instance, it being the intention that
the collections on assessments shall, under all circumstances, be
sufficient to pay the principal and interest.
Sec. 64. The board of public works for each project shall
continue in existence with any changes in personnel that result
from changes in the officers constituting the board membership. The
board of public works shall be responsible for the operation and
maintenance of the project. Any necessary expenses incurred in
administration and in the operation and maintenance of the project
and not covered by contract shall be paid by the several public
corporations assessed for the cost of the project. The assessments
shall be in the same proportion as the cost of the project was
assessed unless the board of public works establishes a different
proportion for the assessments after notice and hearing as provided
in section 58d. The board of public works may, by resolution,
relinquish jurisdiction and control over all or any part of a
project at any time when there is no outstanding indebtedness or
contract liability of its public works district, to the county,
township, city, or village in which all or part of the project is
wholly located, if the county, township, city or village requests
or consents to the relinquishment of jurisdiction and control by
resolution adopted by its governing body. Indebtedness or contract
liability of any public works district which will be paid in full
at the time of consummation of relinquishment of jurisdiction and
control shall not be considered to be outstanding. If
relinquishment of jurisdiction and control is to a county, the
resolution of the governing body of the county shall specify the
county agency, such as the board of public works, drain
commissioner, board of county road commissioners, or parks and
recreation commission that shall be responsible for exercise of
jurisdiction and control. Any money in the project fund of any
project, over all or any part of which jurisdiction and control is
relinquished, shall be used to pay any indebtedness or contract
liability of its public works district, and the balance shall be
turned over to the county, township, city, or village to be used
solely with respect to the project, all or part of the project,
over which jurisdiction and control is assumed. If the
relinquishment of jurisdiction and control and the turnover of
project fund relates to a part of a project, the relinquishment and
turnover shall not become effective until consented to by
resolution of the governing body of each public corporation which
has paid a part of the cost of the project, and for this purpose
the board of county road commissioners and the state department of
transportation are considered to be the governing body for the
county and this state.
Sec. 65. Any public or private corporation, firm, or
individual may advance money for the payment of any part of the
cost of a project under this act, in which event it shall be
reimbursed by the public works district, with or without interest
as may be agreed, when funds are available. The obligation of the
public works district to make the reimbursement may be evidenced by
a contract or note, which contract or note may pledge the full
faith and credit of the public works district and may be made
payable out of the assessments made against public corporations or
out of the proceeds of project orders or bonds issued by the public
works district pursuant to this act or out of any other available
funds, but the contract or note is not subject to the revised
municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.
Sec. 66. The cost of any project shall include all of the
following:
(a) The cost of constructing or acquiring the facilities,
structures, devices, and equipment required to locate, establish,
and construct the project or to improve or supplement the project,
including bridges and culverts and any lands or rights of way
necessary thereto.
(b) The administrative and other expenses of the board of
public works including the cost of service and publication of all
notices.
(c) All engineering, legal, and other professional fees.
(d) Interest on bonds for the first year, if bonds are to be
issued, and interest on money advanced pursuant to section 65.
(e) An amount not exceeding 10% of the gross sum to cover
contingent expenses.
Sec. 67. Unless otherwise provided by the board of public
works, assessments against a township shall be against the township
as a whole, including any incorporated village, but the board of
public works may determine to assess separately or exclude a
village, in which case the assessment against the township shall be
exclusive of the village and the tax levies by the township to pay
the assessment shall not include property taxable in the village.
Sec. 68. If bonds or notes are to be issued in respect to a
public works project, the county board of commissioners may, by
resolution adopted by a majority of its membership, pledge the full
faith and credit of the county of the amount of the principal of
and interest on any bonds or notes issued pursuant to this act. In
the event the county is required to advance any money by reason of
a pledge and if the collections of the special assessments shall
not be sufficient to reimburse the county, the board of public
works shall, within a 2-year period from the date of advancement,
reassess the public works district as in the first instance to
provide for repayment to the county of money advanced.
Sec. 69. Any county that owns or operates any water supply
system, sewage disposal system, refuse system, lake improvements,
or system for erosion control under this act or systems of water,
sewer, sewage disposal improvements or services, or garbage and
rubbish collection and disposal facilities and services under the
county public improvement act of 1939, 1939 PA 342, MCL 46.171 to
46.188, may transfer the same to a public works district as
follows:
(a) The board of public works or the county agency shall
approve the transfer and forward its approval to the county board
of commissioners.
(b) The county board of commissioners shall approve the
transfer.
(c) The board of public works shall convene and may, upon
majority vote of the board of public works, accept the transfer.
(d) Once a transfer is completed, all assets and liabilities
formerly belonging to the county shall belong to the public works
district and the county and the board of public works or the county
agency shall cease to have any control or jurisdiction thereover
and shall have no further liability for any event that occurs after
the effective date of the transfer.
Sec. 69a. Any public corporation or public corporations, other
than a county, or combination thereof, which owns or operates any
water supply system, sewage disposal system, refuse system, lake
improvements, or system for erosion control, may transfer the same
to a public works district as follows:
(a) The public corporation or public corporations, if there is
more than 1 public corporation involved, shall approve the transfer
and forward its approval to the county board of commissioners.
(b) The county board of commissioners shall approve the
transfer.
(c) The board of public works shall convene and may, upon
majority vote of the board of public works, accept the transfer.
(d) Once a transfer is completed, all assets and liabilities
formerly belonging to the public corporation or public corporations
shall belong to the public works district and the public
corporation or public corporations shall cease to have any control
or jurisdiction thereover and shall have no further liability for
any event which occurs after the effective date of the transfer.