All public utility franchises granted after the adoption of
this Charter, whether it be so provided in the granting ordinance
or not, shall be subject to the right of the city:
(a)
To repeal the same for misuse, or nonuse, or for failure to comply
with the provisions thereof;
(b)
To require proper and adequate extension of plant and service maintenance
thereof at the highest practicable standard of efficiency;
(c)
To establish reasonable standards of service and quality of products,
and prevent unjust discrimination in service or rates;
(d)
To require continuous and uninterrupted service to the public in
accordance with the terms of the franchise throughout the entire period
thereof;
(e)
To impose such other regulations as may be determined by the council
to be conducive to the safety, welfare, and accommodation of the public;
(f)
To require the public utility to which any franchise is granted to
permit joint use of its property and appurtenances located in the
streets, alleys, and public places of the city, by the city, and other
utilities insofar as such joint use may be reasonably practicable
and upon payment of reasonable rental therefor; provided, that in
the absence of agreement, upon application by the public utility,
the council shall provide for arbitration of the terms and conditions
of such joint use and the compensation to be paid therefor;
(g)
To pay such part of the cost of improvement or maintenance of the
streets, alleys, bridges, and public places of the city, as shall
arise from its use thereof and to protect and save the city harmless
from all damages arising from said use.
Every ordinance or resolution granting any franchise or right
to occupy or use the streets, highways, bridges, or public places
in the city for any purpose shall be complete in the form in which
it is finally passed, and remain on file with the clerk for public
inspection for at least 30 days before the final passage or adoption
thereof, or approval for referral to the electorate. No exclusive
or irrevocable franchise shall be granted by the city, unless such
proposition shall have first received the affirmative vote of at least
3/5 of the electors of the city voting thereon at a regular or special
election. No such franchise ordinance, or resolution shall be approved
by the council for referral to the electorate until a public hearing
has been held thereon, nor until the grantee named therein has filed
with the clerk his unconditional acceptance of all terms of such franchise.
No special election for such purpose shall be ordered by the council
unless the expense of holding such election, as determined by the
council, shall have first been paid to the treasurer by the grantee.
A franchise ordinance, or ordinance granting or authorizing
the granting of a license to use or occupy the streets of the city
for public utility purposes which is subject to revocation at the
will of the city, may be enacted by the council without referral to
the voters, but shall not be enacted nor become operative unless it
shall have been complete in the form in which it is finally enacted
and remain on file with the clerk for public inspection for at least
four weeks before the final enactment thereof.
[Amend. No. 16, 11-8-1977]
The city shall possess and hereby reserves to itself all powers
granted to cities by the constitution and general laws of the State
of Michigan to acquire, by purchase or condemnation, the franchises,
if any exist, and the property used in the operation of companies
or individuals engaged in the electric, light, gas, heat, water and
power business and for the purchase and condemnation of private property
for any public use or purpose within the scope of the powers specified
herein, to construct, own, operate, improve, enlarge, extend, repair
and maintain, either within or without its corporate limits, airports,
landing fields and aeronautical facilities, hospitals and public utilities,
including, but not by the way of limitation, public utilities for
treating and supplying water, and for supplying light, heat, power,
gas, sewage treatment and garbage disposal facilities, or any of them,
to the city and its inhabitants; and also to sell and deliver water,
light, heat, power, gas and other public utility services, without
its corporate limits to an amount not exceeding the limitations set
by the state constitution. The power to supply, as herein possessed
and reserved, shall include the power to extract and process water,
electricity or gas from natural resources, to manufacture the same
or to purchase the same from others.
The board of public works of the City of Holland, having been
created, is hereby continued, and shall be known and designated as
the board of public service.[1] Such board, subject only to the approval of the council,
is hereby charged with the duty, power and responsibility of constructing,
maintaining, improving, and extending the electric and water plants
and distribution systems of the city, together with any public heating
which may be a by-product thereof, and with the management, supervision,
and control thereof. The title of all grounds and rights in real or
personal property held, purchased, or otherwise secured by or on behalf
of said board, shall be taken in the name of the City of Holland;
and said water, electric and heating plants and works, and everything
pertaining thereto, shall be the property of the city, and all contracts
and purchases made by said board, shall be in the name of the city.
The board of public service [works][1] and the works, and utilities, under its management, supervision,
and control, shall constitute a department of the city government.
[Amend. No. 12, 4-7-1969]
The board of public works shall be composed of the five members
of that board, who held office on the date that this Charter became
law, and the city manager. Said members shall hold office for the
balance of the terms for which they were elected or appointed prior
to the date that this Charter became law. Thereafter, their successors
shall be appointed by the mayor, with the advice and consent of the
council, during the month of June of each year. Each person appointed
as a member of the board of public works shall possess the qualifications
required by this Charter for elective officers of the city and shall
be appointed to serve for a term of five years commencing on and dating
from the first day of July, next following his appointment; provided,
that persons appointed to fill a vacancy shall assume office immediately
upon appointment and shall hold office only for the balance of the
term of the person creating such vacancy. The city manager, as a member
of the board of public works, shall have the duty of attending all
meetings of the board, shall be privileged to participate in all discussions
and proceedings of the board, but shall not be entitled to vote on
questions before the board.
Said board shall, annually during the month of July, organize
and elect one of its appointed members president. A majority of the
board, other than the city manager, shall constitute a quorum for
the transaction of business. The clerk of the city shall be ex officio
clerk of the said board, but shall have no vote therein. He shall
have access to all of its records and papers.
The board of public service [works][1] shall be charged and entrusted with the responsibility for the planning of improvements of, additions to, extensions of, and the operation and maintenance of the public service works of the city relating to the supplying of electricity and water to the inhabitants of the city, and within any limits provided by law, the territory surrounding the city. The board shall, annually in the month of March, make a report to the council, by filing the same with the clerk, which report shall present an analysis of the status and needs of the public service works under the board's jurisdiction and the recommendations of the board with respect thereto. Such report shall contain estimates of the costs of all improvements of, additions to, and extensions of the public services of the city which are recommended to be made during the ensuing fiscal year of the city, together with explanations thereof. The council shall have power to modify or disapprove any improvement of, addition to, or extension of the public service works of the city which may be recommended to be made in such report; provided, however, that unless the council shall modify or disapprove of any such recommended improvement, addition, or extension, or any number or combination of the same within 30 days after the date of the first meeting of the council, following the filing of such report with the clerk, such report shall be deemed to be approved by the council. Such report, as approved or modified by the council shall constitute the public service works program of the board of public service [works] for the fiscal year following that in which it is filed and it shall not again be necessary for the board to secure the approval of the council for the making of any improvement of, addition to, or extension of the public service works of the city which is made in accordance with such report as approved or modified by the council. Except as provided in section 12.9, the board of public service [works] shall make no improvement of, addition to, or extension of any public service work of the city in any year, except in accordance with such report as approved or modified by the council with respect to both the nature and the estimated cost thereof, unless the same shall be first approved by the council.
On or before February 15, of each year, the board of public
service [works][1] shall file with the city manager for the consideration of the council, a budget proposal and a payroll schedule for the next fiscal year of the city. Such budget shall set forth estimates, in substantially the form required by this Charter for budget proposals of the city, of the amount of money, other than moneys estimated to be required for improvements of, additions to, or extensions of the public service works of the city under its control which, according to the judgment of the board, will be required for the public service works of the city during the ensuing fiscal year of the city. The budget proposal of the board of public service [works] shall be appended to and made a part of the budget proposal of the city which is submitted to the council by the city manager. The estimates of the board of public service [works], contained in its budget proposal, may be modified or adopted by the council. In the event that the council does not act upon or complete its action upon such proposed budget by the first day of June, following the filing thereof with the clerk, such proposed budget shall be presumed to have been approved by the council and shall be the budget of the board for the ensuing fiscal year of the city just as though formally approved by the council. The board of public service [works] shall administer its own budget. With the consent of the council, the board may exceed any budget appropriation or allotment where it can transfer a sufficient amount therefor from unencumbered balances within its budget. All proposed expenditures of the board of public service [works] which are not included in the board's planning report provided in section 12.8, or its budget, as approved by the council, shall be approved by the council before any obligation for such expenditures shall be incurred by the board; provided, however, that when by unanimous action of the board, it is deemed necessary for the proper functioning of any utility under the board's jurisdiction to install or construct works, or purchase material for the extension of, or addition to, any such utility beyond its yearly planning or budget report, and when the cost of such extension, addition, or purchase does not exceed the total sum of $1,000, and the money to pay the same is or will be available in the unencumbered funds of the board, then such extension, addition, or purchase may proceed without further authorization; provided, further, that the total cost of all extensions, additions, or purchases made or done under authority by this proviso shall not exceed the sum of $5,000 in any fiscal year of the city.
Subject to budget allowances therefor, and without the necessity
of the approval of the council, the board of public service [works][1] shall have power to employ a superintendent of utilities
and all personnel deemed by the board to be necessary for carrying
on the supervision, operation, maintenance, and general conduct of
the public service works of the city entrusted to it by the provisions
of this Charter and budget allowances therefor.
The expenses of conducting the affairs of the board of public
service [works][1] shall be defrayed from the revenues of the public service
works of the city under its control, or may be paid or supplemented
from the general funds of the city, if the council shall so determine
with the concurrence of the board of public service [works]. All funds
earned, raised, or realized by the board shall be deposited with the
treasurer who shall give a receipt therefor and file a copy thereof
with the city auditor. The treasurer shall deposit all such receipts
to the credit of the proper fund or account of the city.
Separate accounts shall be provided for and kept by the city
auditor, in the form required by state law, for each public service
work which is owned by the city and operated by the board. Such accounts
shall show the value of any service rendered to or by such public
service work or works of the city with reference to the city itself.
Such accounts shall take into consideration and preserve, for the
use for which the same were set aside and accumulated, all funds of
the city which stand to the credit of the board of public works of
the city at the time that this Charter became law. Except as otherwise
provided in this Charter, all funds raised for, or realized from the
operation of such public service works and utilities of the city shall
remain in the accounts to which they have been allocated and no part
thereof shall be transferred from or revert to any other account or
fund at the close of any fiscal year.
The cost of making the annual audit of the accounts of the board
of public service [works][1] shall be defrayed from the funds of the board. The annual
audit of the affairs of the board of public service [works] shall
show the financial status of the affairs of the board and, as nearly
as possible, the financial results of the city ownership and operation
of the public service works of the city for which the board is responsible.
The board shall also make such other reports and furnish such other
information to the council as that body shall require by ordinance
or resolution.
With the consent of the council, the board of public service
[works][1] may purchase water or electricity from any person, firm,
or corporation, municipal or private, if such purchase may be deemed
by the board to be in the best interest of the city and the inhabitants
thereof.
The council shall be charged with the responsibility for constructing,
maintaining, improving and extending the sewage disposal facilities,
the fire alarm system, and such other utilities of the city as existed
on the date this Charter became law or which may thereafter have been
acquired by the city. Such facilities shall constitute one or more
separate departments of the city government or may be assigned by
resolution of the council to an appropriate department or division
of the city government, or shall be under the administrative charge
and responsibility of the city manager as the council shall determine.
The receipts from the operation of the electric and water utilities
and income from investments shall be applied to the purposes thereof,
in accordance with the budget appropriations, including the payment
of bonds outstanding or which may be issued for the purposes of such
utilities and the interest thereon. The net income shall be determined
by deducting from the receipts from operations and income from investments
all expenses incurred and charges made or allowed for and on behalf
of such utility in accordance with budget appropriations, or by appropriate
action under authority of section 9 of this chapter, and after the
setting aside of moneys for the payment of principal and interest
on indebtedness in accordance with any ordinance or resolution authorizing
such indebtedness. Up to 50% of the annual net income of the board
may be appropriated by the council to the general purposes of the
city. All such net income which is not so appropriated shall be placed
in proper accounts or funds of the city which shall be established
as reserves for future operations, replacement, extension, or improvement
of such utilities. Nothing herein contained shall be interpreted to
limit the power of the council to place, for any year, in such accounts
or funds a larger percentage than 50% of such net income to the purposes
of such utilities, in the event that such appropriation shall be requested
by the board of public service [works][1] and be approved by seven members of the council.
The foregoing limitation of 50% of such net income which may
be appropriated by the council for general purposes may be increased
in any year by and with the consent of the board of public service
[works], and the consent of seven members of the council.
Such funds so established as reserves for the purposes of the
utilities may be invested and reinvested by the city auditor as the
board of public service [works] shall direct, by and with the approval
of the council, in such investments as are authorized by law for investment
by fiduciaries. Said funds may be used for the purposes of such utilities
upon the recommendation of the board of public service [works], by
and with the consent of the council.
The electors of the city may, by a 3/5 vote of the qualified
electors voting on such proposal at a regular or special election,
approve an appropriation of more than 50% of the net income for any
year for general purposes, or may approve the placing of more than
50% of the net income for any year in the reserve accounts or funds
as above provided for the purposes of such utilities, or may approve
for other municipal purposes the use of such accumulated and unallocated
accounts or funds as have been established.
With the approval of the council, the board of public service
[works][1] shall fix the rates to be charged for all public utility
services under its control. The council shall fix the rates to be
charged for all public utility services of the city which are not
under the control of the board of public service [works]. When any
person, firm, or corporation, shall fail or refuse to pay to the city
any sums due on utility bills, such service upon which such delinquency
exists may be shut off or discontinued by the proper board or department
of the city and suit may be instituted by the city for the collection
of the same in any court of competent jurisdiction.
Except as otherwise provided, or limited by state law, the city
shall have as security for the collection of all charges, a lien upon
the premises to which such utility services were supplied. Such lien
shall become effective immediately upon the distribution or supplying
of such utility service or services to such premises.
All unpaid charges for utility services furnished to any such
premises, which, on the 30th day of June of each year, have remained
unpaid for a period of three months, or more, shall be reported by
the city auditor to the council at the first meeting thereof in the
month of July. The council thereupon shall order the publication in
a newspaper published in the city, of notice to all owners of property
within the city that all unpaid utility charges which have remained
unpaid for a period of three months or more prior to the 30th day
of June, and which have not been paid by the thirty-first day of July,
shall be assessed upon the city's tax roll against the premises to
which the utility services, for which the unpaid charges accrued,
were supplied or furnished; and that such charges shall be collected
in the same manner as the city taxes on said tax roll.
All such utility charges, which remain unpaid on the 31st day
of July, shall be transferred to the city's tax roll and assessed
against the premises to which the utility service, for which the unpaid
charges accrued, was supplied or furnished, and shall be collected
with, and in the same manner as, city taxes. If the same have remained
delinquent and unpaid after the expiration of the time limited in
the treasurer's warrant for the collection of taxes levied in said
tax roll, such charges shall be returned to the county treasurer to
be collected in the same manner as the lien created by city taxes
on the delinquent tax roll of the city.
In the event that any provision of this section shall prove
to be incomplete or inadequate for the carrying out of the purposes
thereof, the council shall provide by ordinance such additional procedures
as may be required for the collection of public utility charges, and,
for such purpose, shall have all the powers granted to cities by Act
No. 178 of the Public Acts of 1939, as amended.
Except for purposes permitted by law, the city shall not sell,
exchange, lease, or in any other way alien or dispose of the property,
easements, income, equipment, privileges, or assets belonging to and
appertaining to any utility which it may own or acquire, unless and
except such proposition shall first have been submitted to the qualified
electors of the city at a special city election called for that purpose
in the manner provided in this Charter, and approved by them by a
3/5 majority vote of the electors of the city voting thereon. All
contracts, negotiations, licenses, grants, leases, or other forms
of transfer in violation of this provision shall be void and of no
effect. The provisions of this section shall not, however, apply to
the sale or exchange of any article of equipment of any city-owned
utility which is worn out or useless, or which is being or has been
replaced by new and improved machinery or equipment.
[Amend. No. 1, 4-2-1951]
The name of the "board of public service" is hereby changed
to the name of "board of public works," and in each place in the city
Charter where the name of "board of public service" appears, the same
shall be deemed to mean the "board of public works."
The board of public works shall succeed to all the property,
money, contracts, rights, credits, effects, records, files, books
and papers belonging to the board of public service, and shall perform
all the duties, obligations and functions specified in the Charter
to be performed by the board of public service.
