[HISTORY: Adopted by the Township Board of the Township of Buchanan as indicated in article histories. Amendments noted where applicable.]
[Adopted 4-18-1984 by Ord. No. 13]
It is hereby determined to be desirable and necessary for the public health, safety and welfare of the Township of Buchanan that those portions of the Township of Buchanan water supply system lying within Township of Buchanan be operated on a public utility rate basis in accordance with the provisions of Act 94, Public Acts of Michigan, 1933, MCLA § 141.101 et seq., as amended.
As used in this article, the following terms shall have the meanings indicated:
REVENUES and NET REVENUES
The meanings as defined in Section 3, Act 94, Public Acts of Michigan, 1933, MCLA § 141.103, as amended.
THE SYSTEM
Those portions of the Township of Buchanan water supply system lying within the Township of Buchanan, including all water lines, pumps, storage or treatment facilities, and all other facilities used or useful in the transmission and distribution of potable water, including all appurtenances thereto and including all extensions and improvements thereto which may hereafter be acquired.
The operation, maintenance, alteration, repair and management of the system shall be under the supervision and control of the Township Board, subject to the terms of that certain agreement for water service made with the City of Buchanan, Michigan. Said Township Board may employ such persons in such capacities as it deems advisable to carry on the efficient management and operation of the system, and may make such rules, orders and regulations as it deems advisable and necessary from time to time to ensure the efficient management and operation of the system, and may delegate such powers to said persons.
[Amended 12-2-1985 by Ord. No. 22]
Rates to be charged for service furnished by the system shall be as established from time to time by resolution of the Buchanan Township Board.
A. 
The water charges for the Township of Buchanan customers of the water system shall conform pro rata where applicable to any special charges for summer use incorporated in the ordinance or resolutions in effect in the City of Buchanan for special charges for summer usage as adopted by said City from time to time.
B. 
Tap charge. Persons desiring to tap premises into the water system shall first make application to the Township of Buchanan, and then to the City of Buchanan, and shall pay, at the time of application for the tap-in, all tap-in or other connection charges then in effect. Such charges as shall be established from time to time by the Buchanan Township Board by resolution.
[Amended 12-13-1994 by Ord. No. 26]
C. 
Special rates or additional charges. The Township Board retains the right to establish additional charges or special rates for miscellaneous or special service.
D. 
Replacement surcharge. All customers of the Township's water service shall pay an annual surcharge in the amount established by resolution of the Township Board from time to time, which will be billed and payable in monthly installments. Revenue received from the surcharge will be deposited in the Township's Replacement Fund under § 260-8C of this article for the purposes of making "major repairs and replacements" to the water system.
[Added 7-19-2018 by Ord. No. 115-2018; amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
E. 
Billing. Bills shall be rendered quarterly, payable with the same grace and penalty provisions as are provided for water users within the City of Buchanan.
F. 
Enforcement.
(1) 
The charges for services which are under the provisions of Section 21, Act 94, Public Acts of Michigan, 1933, MCLA § 141.121, as amended, made a lien on all premises served thereby, unless notice is given that a tenant is responsible, are hereby recognized to constitute such lien, and whenever any such charge against any piece of property shall be delinquent for six months, the Township official or officials in charge of the collection thereof shall certify annually, to the tax-assessing officer of the Township, the facts of such delinquency, whereupon such charge shall be by him entered upon the next tax roll as a charge against such premises and shall be collected and the lien thereof enforced, in the same manner as general Township taxes against such premises are collected and the lien thereof enforced; provided, however, where notice is given that a tenant is responsible for such charges and service as provided by said Section 21, no further service shall be rendered such premises until a cash deposit in an amount to be determined from time to time by the Township Board shall have been made as security for payment of such charges and service.
(2) 
In addition to the foregoing, the Township shall have the right to shut off, or cause to be shut off, water service to any premises for which charges for such service are more than 30 days delinquent, and such service shall not be reestablished until all delinquent charges and penalties have been paid. Further, such charges and penalties may be recovered by the Township by court action.
No free service shall be furnished by said system to any person, firm or corporation, public or private, or to any public agency or instrumentality.
The rates hereby fixed are estimated to be sufficient to provide for the payment of the expenses of administration and operation, such expenses for maintenance of the said system as are necessary to preserve the same in good repair and working order, to provide for the payment of the contractual obligations of the Township as the same become due, and to provide for such other expenditures and funds for said system as this article may require, including a reasonable rate of return. Such rates shall be fixed and revised from time to time as may be necessary to produce these amounts.
The system shall be operated on the basis of an operating year as determined by the Township.
The revenues of the system shall be set aside as collected and deposited in a separate depositary account in a bank duly qualified to do business in Michigan, in an account to be designated "Water Supply System Receiving Fund" (hereinafter, for brevity, referred to as the "Receiving Fund"), and said revenues so deposited shall be transferred from the receiving fund periodically in the manner and at the times hereinafter specified.
A. 
Operation and Maintenance Fund. Out of the revenues in the receiving fund there shall be first set aside quarterly into a depositary account, designated "Operation and Maintenance Fund," a sum sufficient to provide for the payment of the next quarter's current expenses of Township administration and operation of the system and such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order as determined by the Township Board. The City will maintain a separate Operation and Maintenance Fund for the Township using revenues received from the user fees. The Township Board will review status of the City maintained fund quarterly.
B. 
Contract Payment Fund. There shall next be established and maintained a depositary account, to be designated "Contract Payment Fund," which shall be used solely for the payment of the Township's obligations pursuant to the aforesaid contracts. There shall be deposited in said fund quarterly, after requirements of the "Operation and Maintenance Fund" have been met, such sums as shall be necessary to pay said contractual obligations when due should the revenues of the system prove insufficient for this purpose, such revenues may be supplemented by any other funds of the Township legally available for such purpose.
C. 
Replacement Fund. There shall next be established and maintained a depositary account, designated "Replacement Fund," which shall be used solely for the purpose of making major repairs and replacements to the system if needed. There shall be set aside into said fund, after provision has been made for the "Operation and Maintenance Fund" and the "Contract Payment Fund," such revenues as the Township Board shall deem necessary for this purpose. The City will maintain a separate Replacement Fund for the Township using revenues received from the user fees. The Township Board will review status of the City maintained fund quarterly.
D. 
Improvement fund. There shall next be established and maintained an "Improvement Fund" for the purpose of making improvements, extensions and enlargements to the system. There shall be deposited into said fund, after providing for the foregoing fund, such revenues as the Township Board shall determine. The City will maintain a separate Improvement Fund for the Township using revenues received from the user fees. The Township Board will review status of the City maintained fund quarterly.
E. 
Surplus monies. Monies remaining in the "Receiving Fund" at the end of any operating year, after full satisfaction of the requirements of the foregoing funds, may, at the option of the Township Board, be transferred to the "Improvement Fund" or used in connection with any other project of the Township reasonably related to purposes of the system. The City will maintain a separate Surplus Monies Fund for the Township using revenues received from the user fees. The Township Board will review status of the City maintained fund quarterly.
F. 
Bank accounts. All monies belonging to any of the foregoing funds or accounts, except the Contract Payment Fund, may be kept in one bank account, in which event the monies shall be allocated on the books and records of the Township within this single bank account, in the manner above set forth.
In the event the monies in the "Receiving Fund" are insufficient to provide for the current requirements of the "Operation and Maintenance Fund," any monies and/or securities in other funds of the system, except sums in the "Contract Payment Fund" derived from tax levies, shall be transferred to the "Operation and Maintenance Fund" to the extent of any deficit therein.
Monies in any fund or account established by the provisions of this article may be invested in obligations of the United States of America, in the manner and subject to the limitations provided in Act 94, Public Acts of Michigan, 1933, as amended. In the event such investments are made, the securities representing the same shall be kept on deposit with the bank or trust company having on deposit the fund or funds from which such purchase was made. Income received from such investments shall be credited to the fund from which said investments were made.
A. 
Policy for water hookups.
(1) 
A contact for a water hookup must first be made to the Township of Buchanan office for the purpose of payment of the water benefit charge, or notice that no benefit payment is required.
(a) 
A water benefit charge, as established from time to time by resolution of the Buchanan Township Board, shall be charged to all properties which hook up to the system and were not originally charged a benefit charge as part of an original special assessment roll.
[Amended 4-18-1995 by Ord. No. 27]
(b) 
Properties in which water lines are installed and turned over to the system are not subject to additional benefit charges after paying the initial benefit charges for the hookup to the main line. If two or more taps are made to the Township main line, then benefit charges shall be paid for each tap.
(c) 
The benefit charge shall be paid in a lump sum.
(2) 
After arrangement has been made with the Township Office for benefit charge, application for a hookup shall be then made to the Clerk of the Township. The hookup and meter shall be installed by the City of Buchanan, and payments therefor shall be made to the City of Buchanan.
(3) 
The property owner shall be responsible for the installation of the water line commencing from termination point of the tap to the building.
(4) 
One benefit charge shall apply to one property description for one building. Exceptions may be made due to existing circumstances, such as a home adjoining a place of business. In such cases, a decision shall be made by the Township Supervisor and the City Manager of the City of Buchanan at the time application is made for a hookup. Each such case shall be determined individually and not be considered as policy for another case.
(a) 
Properties with two or more buildings which are subject to being sold separately shall have separate hookups to each building and shall be liable for separate benefit charges.
[1] 
Duplex units shall have a meter for each unit.
[2] 
Apartments. Each apartment building shall have at least one meter.
[3] 
Mobile home parks. The park owner shall be responsible for the installation of a water system within the park. Water shall be metered at the point of connection to the Township main line.
[4] 
Multifamily unit developments. The owner shall be responsible for the installation of the water system within the development. Water shall be metered at the point of connection to the Township main line.
(b) 
Property owners may apply to the Township for a variance to this policy. If the circumstances are such that a variance is considered, this shall be a decision between the Township and the City, and shall not be considered as policy for another case.
(5) 
When property has been connected to public sewer system, it shall promptly be connected to the public water system, when available.
[Added 4-18-1995 by Ord. No. 27]
Any person or persons who shall violate any of the provisions of this article shall, upon conviction thereof, be punished by a fine not to exceed $500, or by commitment to the County Jail for a period not to exceed 90 days or by both fine and commitment. Each and every day that such violation continues shall constitute a separate offense. Such violations shall also constitute a nuisance per se.
If any section, paragraph, clause or provision of this article shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this article.