LAKE IMPROVEMENT BOARDS S.B. 1266: COMMITTEE SUMMARY
Senate Bill 1266 (as introduced 5-26-04)
Sponsor: Senator Michael D. Bishop
Committee: Local, Urban and State Affairs
Date Completed: 10-6-04
CONTENT
The bill would amend Part 309 (Inlake Lake Improvement) of the Natural Resources and Environmental Protection Act to do the following:
-- Revise the membership of a lake improvement board.
-- Establish a process for the dissolution of a lake board.
-- Provide for record-keeping responsibilities for a lake board.
-- Include administrative expenses in the cost of a lake improvement project.
Under Part 309, the governing body of a local unit of government containing all or part of a public inland lake, may provide for the improvement of the lake or adjacent wetland upon its own motion or by petition of two-thirds of the owners of land abutting the lake. The governing body then must set up a lake board to proceed with improving the lake or to void the project. When instructed by the local governing body, the lake board must determine the scope of the project and establish a special assessment district, including all parcels of land and local units that will be benefited by the lake improvement.
Currently, a lake board consists of a member of the county board of commissioners appointed by the board's chairperson for each county affected by the lake improvement project; a representative from each local unit of government affected by the project, other than a county, appointed by the legislative body; the county drain commissioner, or a member of the county road commission in a county not having a drain commissioner; and a representative of the Department of Environmental Quality (DEQ). Under the bill, a second representative from each local government would be appointed to the lake board; the county drain commissioner would be allowed to appoint a designee to the board; and a representative of the DEQ would not serve on the board.
A lake board could be dissolved by the governing body of any local unit of government in which all or part of the public inland lake was situated, upon its own motion or by petition of two-thirds of the freeholders owning land abutting the lake, if the local governing body determined that the lake board was no longer necessary for the improvement of the lake or adjacent wetlands because the reasons for the lake board no longer existed. The lake board could only be dissolved if all outstanding indebtedness and expenses were paid in full and any excess funds had been refunded based on the last approved assessment roll.
Before dissolution of a lake board, the local governing body would have to hold a public hearing, and notice of the hearing would have to be published twice in a newspaper of general circulation in each local unit of government that was affected. The first notice would have to be published at least 10 days before the date of the public hearing.
The Act requires a lake board to elect a chairperson and a secretary. Under the bill, the secretary would have to be one of the representatives from the local units of government. The secretary would have to attend meetings of the lake board and would have to keep a record of the proceedings and perform other duties delegated by the lake board.
The treasurer for the local unit of government affected most by the project would have to keep the financial records and sign all vouchers for expenditures approved by the lake board. All other records of the lake board would have to be transmitted to the clerk for a local unit of government. The clerk would have to maintain all records for the lake board. A local unit of government could charge a lake board for the cost of maintaining records and the administration of financial affairs of the lake board, which would be an expense to the special assessment district.
A lake board would have to meet at least once a year to establish a budget for improvements, services, or other expenditures approved by the board. A lake board could retain an attorney to advise the board in the proper performance of its duties. The attorney would have to represent the board in actions brought by or against it.
Currently, within 10 days after the letting of contracts or immediately after an appeal has been decided, a lake board must compute the entire cost of a project, including all preliminary costs and engineering and inspection costs incurred and all of the following:
-- The fees and expenses of special commissioners.
-- The compensation to be paid the board.
-- The contracts for dredging or other work to be done on the project.
-- The estimated cost of an appeal if the apportionment made by the lake board is not sustained.
-- The estimated cost of inspection.
-- The cost of publishing all notices required.
-- All costs of the circuit court.
-- Attorney fees for legal services in connection with the project.
-- Interest on bonds for the first year, if bonds are to be issued.
The bill would add to this list any other costs necessary for the administration of lake board proceedings, including compensation of county or local representatives serving on the lake board, record compilation and retention, and State, county, or local government professional staff services.
MCL 324.30903 et al.
Legislative Analyst: J.P. Finet
FISCAL IMPACT
The bill would have no fiscal impact on State government.
The bill would allow the local unit of government responsible for maintaining records for a lake board to recover its costs by charging them to the lake board, which could include them as a cost of a lake improvement project.
Fiscal Analyst: Jessica Runnels
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1266/0304