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.