Water

 

ORDINANCE NO. 87 – WATER SUPPLY SYSTEM (BONDS), as amended

CITY OF STANTON, MICHIGAN
effective April 26, 1951

            AN ORDINANCE TO PROVIDE FOR IMPROVING, ENLARGING AND EXTENDING THE WATER SUPPLY SYSTEM OF THE CITY OF STANTON, MICHIGAN: TO PROVIDE FOR THE ISSUANCE AND SALE OF REVENUE BONDS TO DEFRAY THE COSTS THEREOF: TO PROVIDE FOR THE RETIREMENT AND SECURITY OF SAID BONDS; AND TO PROVIDE FOR OTHER MATTERS RELATIVE TO SAID SYSTEM AND SAID BONDS.

THE CITY OF STANTON, MONTCALM COUNTY, MICHIGAN ORDAINS:

Sec. 1 DEFINITIONS.

Whenever used in this Ordinance or in the bonds to be issued hereunder; except when otherwise indicated by the context:

  1. The term “City” shall be construed to mean the City of Stanton.
  2. The term “Council” shall be construed to mean the Council of the City of Stanton.
  3. The term “project” shall be construed to mean the improvements, enlargements and extensions to be acquired pursuant to this Ordinance.
  4. The term “acquired” shall be construed to include acquisition by purchase, construction or by any other method.
  5. The term “water supply system” shall be construed to include all plants, works, instrumentalities and properties, (as the same shall from time to time exist) used or useful in connection with the obtaining of a water supply, the treatment of water and for the distribution of water by the City. The term “system” when used alone shall be construed to refer to such water supply system.
  6. The terms “revenues” and “net revenues” shall be construed as defined in Section 3 of Act No. 94 Michigan Public Acts of 1933, as now amended.

Sec. 2. DETERMINATION OF NECESSITY.

The Council hereby determines it to be necessary to improve, enlarge and extend the water supply system of the City by acquiring the following:

A new water supply high pressure tank.

One new building to house the water pumping equipment and Water Tank of the City, all substantially in accordance with maps, plans and specifications prepared by R.D. McNutt, Registered Civil Engineer, which maps, plans and specifications are now on file with the City Clerk and are hereby approved and adopted. (As amended by Ordinance. No. 88)

Sec. 3. ESTIMATE COST.

The Council has caused an estimate to be made of the cost of said project by the said R.D. McNutt, Registered Civil Engineer, which estimate is on file with the City Clerk and is the sum of Nine Thousand Five Hundred and 00/100 ($9,500.00) Dollars, and the Council does hereby adopt said estimate as the estimated cost of said project. The Council does hereby estimate the period of usefulness of said project to be thirty (30) years and upwards. (As amended by ORD. Mo. 88)

Sec. 4. SALE OF REVENUE BONDS.

There are hereby authorized to be issued and sold pursuant to the provisions of Act No. 94, Michigan Public Acts of 1933, as amended, revenue bonds in the aggregate principal sum of Nine Thousand Five Hundred and 00/100 ($9,500.00) Dollars for the purpose of paying the costs of the said project. Said bonds shall be known as “Water Supply System Revenue Bonds”; shall be dated as of June 15, 1951; shall be numbered consecutively in the direct order of their maturities from 1 to 10, both inclusive; shall be coupon bonds in the denomination of $950.00 each; shall be registerable as to principal only. In the manner hereinafter set forth in the bond form; shall bear interest at a rate or rates to be hereafter determined not exceeding four percent per annum, payable on January 1, 1952, and thereafter semi-annually on the first days of July and January each year; and shall mature on July 1st in each year as follows: $950.00 in each year from 1952 to 1961, both inclusive; provided, however, that the bonds of said issue shall be subject to redemption prior to maturity, a the option of the City, in inverse numerical order, on any or more interest payments dates on and after July 1, 1954, at the par value thereof and accrued interest. Notice of redemption shall be given to the holders of the bonds to be redeemed by publication of such notice not less than thirty days prior to the date fixed for redemption at least once in the newspaper or publication circulated in the City of Stanton, Michigan; provided, that where any bond shall be registered, then notice of the redemption thereof shall be given by registered mail to the registered holder thereof at the address shown on the City Clerks’ bond registration books, which notice shall be mailed within the State of Michigan, not less than thirty (30) days prior to the date fixed for redemption. Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem the same. The principal of said bonds and the interest thereon shall be payable in lawful money of the United States of America at the State Savings Bank of Stanton, in the City of Stanton, Montcalm County, Michigan, upon presentation and surrender of said bonds and attached coupons as they severally mature. (As amended by Ordinance. No. 88)

Sec. 5. MAYOR AND CLERK TO EXECUTIVE BONDS.

The Mayor and Clerk of said City of Stanton are hereby authorized and directed to execute said bonds for and on behalf of said City and to affix the seal of said City thereto, and they are hereby authorized and directed to execute the interest coupons to be attached to said bonds by causing to be affixed thereto their facsimile signatures, upon the execution of said bonds and attached coupons, the same shall be delivered to the Treasurer of said City who is hereby authorized and directed to deliver said bonds and attached coupons to the purchaser thereof upon receipt of the purchase prove therefor.

Sec. 6. SALE OF BONDS; AUTHORITY.

The bonds herein authorized shall be sold in the manner provided in Section 12 of Act No. 94, Michigan Public Acts of 1933, as amended; provided, that said bonds shall not be issued until after the expiration of thirty (30) days from the publication of this Ordinance, and if within said thirty (30) days there shall have been filed with the Clerk of said City a petition as provided in Section 33 of Act No. 94, Michigan Public Acts of 1933, as amended, then said bonds shall not be issued until approved by the electors as in said section provided.

Sec. 7. BONDS NOT A GENERAL OBLIGATION.

Said bonds and attached coupons shall not be a general obligation of the City of Stanton and shall not be an indebtedness of said City within any State Constitutional provision or statutory limitation. The principal of an interest on said bonds shall be payable solely from the interest on said bonds shall be payable solely from the net revenue derived from the operation of the Water Supply System of said City, including future improvements, enlargements and extensions thereof.

To secure the payment of the principal of and interest on the bonds issued hereunder (and on any additional bonds of equal standing issued as hereinafter provided), there is hereby created in favor of the holders of said bonds and the interest coupons pertaining thereto, and each of such holders, a first lien (by said Act No. 94, Michigan Public Acts of 1933, as amended, made a statutory lien) upon the net revenues from said water supply system, including future improvements, enlargements and extension thereof. The net revenue so pledged shall be and remain subject to said lien until the payment in full of the principal of and interest on said bonds.

Sec. 8. BONDHOLDERS; PROTECTION OF LIEN.

The holder or holders of the bonds herein authorized (and additional bonds of equal standing, if any), representing in the aggregate not less than twenty (20) per centum of the entire amount of such bonds than outstanding may, either at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce the said lien upon the net revenues of said water supply system, and enforce and compel performance of all duties of the officials of said City, including the fixing of sufficient of revenues, and the proper application thereof; provided, however, that said lien shall not be construed to give any holder or owner of any bond or coupon, authority to compel the sale of said system or any part thereof.

Sec. 9. DEFAULT; PAYMENT OF BONDS; RECEIVERSHIP.

If there shall be any default in the payment of the principal of or interest on any of said bonds, any court having jurisdiction in any proper action may appoint a receiver to administer and operate said water supply system on behalf of said City, under the direction of said court, and by, and with the approval of said court, to fix and charge rates and collect revenues sufficient to provide for the payment of any bonds or other obligations outstanding against the revenues of said system and for the payment of the expense of operating and maintaining the same, and to apply the income and revenues of said system in conformity, with said Act. No. 94, Michigan Public Acts of 1933, as amended, and with this Ordinance and in accordance with such orders as the court shall make.

Sec. 10. BOND HOLDERS: RIGHTS AND REMEDIES AT LAW.

The holder or holders of any of the bonds or interest coupons herein authorized to be issued, shall have all the rights and remedies given by law and particular by said Act No. 94. Michigan Public Acts of 1933, as amended, for the collection and enforcement of said bonds and coupons and the security therefor.

Sec. 11. FISCAL YEAR.

Said system shall be operated upon the basis of a fiscal year beginning on March 9th of each year and ending on March 8th of the following year.

Sec. 12. SUPERVISION; WATERWORKS COMMITTEE.

The operation maintenance and management of said system shall be under the immediate supervision and control of the Water Works Committee of the Council or of such officer or board as shall be designated or created by the Council, and subject to its control.

Sec. 13. USE OF WATER METERS.

Except as herein otherwise provided, water to be furnished by said water supply system to each premises shall be measured by a water meter installed and controlled by the city charges for water service to each premises for each quarterly (three months) shall be as follows:

  1. $100 per 1,000 gallons for the first 5,000 gallons of water used each quarter; $.45 per 1,000 gallons for the next 15,000 gallons of water used each quarter; $.40 per 1,000 gallons for the next 30,000 gallons for all water used each quarter in excess of 50,000 gallons; provided that the minimum quarterly charge under this sub-paragraph shall be the sum of $5.00.
  2. The city shall pay for all water used by it at the forgoing rates, except that for water used through fire hydrants the charge shall be Ten Dollars ($10.00) per year for each hydrant in the City, and for water used in the City cemetery, the charge shall be $30.00 per year unless the water consumption therein should greatly increase so as to make such ($30.00) charge inequitable, in which event such charge shall be increased so as to be equitable. Charges against the City shall be payable in quarterly (3 months) installments from the current funds of the City or from the proceeds of taxes, which the city, within constitutional limitations is hereby authorized and required to levy in any amount sufficient for that purpose. The cost of water service connection from the city water mains to private premises shall not be paid from the proceeds of the bond issue or from the revenues of the system. (As amended by Ordinance. No. 118 and further amended y Ordinance. No. 127)

Sec. 14. NO FREE SERVICE.

No free service shall be furnished by said water supply system to the City or to any person, firm or corporation, public or private, or to any public agency or instrumentality. Charges for water shall be billed and collected quarterly on or before the first day of January, April, July and October. In the event the charges for water furnished to any premise are not paid by the 20th of the month following the billing for the same, a 10% fee will be added as a late charge and in addition, the bill shall draw interest at the rate of 1% per month until paid. If any charges are not paid within ten days of the due date of the bill, service may be discontinued without further notice. Services so discontinued shall not be restored until all sums then due and owing, including penalties and interest, shall be paid, plus a shut-off charge of $10.00 and a turn-on charge of $10.00. This charge is the same charge provided for in section 6.02 of ordinance no. 141. (As amended by Ordinance. No. 155.)

Sec. 15. CHARGES FOR WATER SERVICE.

Charges for water service to any premises shall be a lien thereon and on May 1st of each year the person or agency charged with the management of said water supply system shall certify any such charges which have been delinquent six (6) months or more, to the City assessor who shall enter the same upon the next tax roll against the premise to which such services shall have been rendered, and said charges shall be collected and said lien shall be enforced in the same manner as provided in respect to taxes assed upon such roll; provided, that when a tenant is responsible for the payment of any such charge against any premises, then the city is so notified in writing with a true copy of the least of the affected premises (if there be one) attached, then no such charge shall become a lien against such premises from and after the date of such notice. However in event of the filing of such notice, the City shall render no further water service to such premises until a cash deposit equal to three (3) times the average quarterly (3 months) charge to such premise shall have been made as security for the payment of water charges thereto.

Sec. 16. WATER RATES; USE; FIXING OF.

The rates hereinbefore established are estimated to be sufficient to provide for the payment of the expenses for the maintenance of said Water Supply System, as may be necessary to preserve the same in good repair and working order; to provide for the payment of the interest upon and the principal of all bonds payable therefrom, as and when the same shall become due and payable, and for the creation of a reserve therefor as required in this Ordinance; and to build up a fund for replacements to aid system as provided in this Ordinance. Rates shall be fixed and revised from time to time so as to produce the foregoing amounts, and the City covenants and agrees to maintain at all times such rates for service furnished by said system as shall be sufficient to provide for the foregoing.

Sec. 17. REVENUES DERIVED; FUNDS FOR WHICH PLEDGED.

The revenues of said Water Supply System are hereby pledged for the purposes of the following funds, and as collected shall be set aside into a fund to be known as the “Receiving Fund” of said system, and shall be transferred therefrom periodically into separate and special funds, as follows:

  1. OPERATION AND MAINTENANCE FUND

Out of the revenues there shall be first set aside each six month into a fund to be designated “Operation and Maintenance Fund”, a sum sufficient to provide for the next six months payment of all expenses of administration and operation of said system and for the payment of such current expenses for the next six months, for the maintenance thereof, as may be necessary to preserve the system in good repair and working order. The Council of said City at the beginning of each fiscal year, shall adopt a budget covering the foregoing expenses for such year, and such expenses shall not exceed the amount specified in said budget except by a vote of 2/3 of the members of the Council, and then only in event of an absolute necessity for such additional expenditures.

  1. BOND AND INTEREST REDEMPTION FUND

Out of the remaining revenues in the receiving Fund, there shall be next set aside each six months into a fund to be designated “Bond and Interest Redemption Fund”: a sum sufficient to provide for the payment of the principal of and interest upon all outstanding bonds payable from the revenues of said system as when the same become due and payable; provided, that the amount so set aside for interest the first six months of each fiscal year shall not be less than the total amount of interest (not capitalized) maturing on the following January first, and during the last six months of each fiscal year, shall not be less than the total amount of interest (not capitalized) maturing on the following July first, and the amount so set aside for principal maturing on the July first following such fiscal year, and, if there shall be any deficiency in the amount previously set aside, then the amount of such deficiency shall be added to the current requirement. In addition thereto, there shall also be set aside quarterly installments for the purpose of creating a reserve in said Bond and Interest Redemption Fund for the bonds herein authorized, a sum not less than Two Hundred and 00/100 Dollars ($200.00) per year during each of the four fiscal years ending March 9, 1952, March 9th each year thereafter until said reserve shall equal at least Eight Hundred and 00/100 ($800.00) Dollars, then there shall be set aside in said reserve monthly a sum sufficient to restore to Eight Hundred and 00/100 ($800.00) Dollars at the earliest possible time. If any additional bonds shall be issued the authorizing Ordinance shall provide for a comparable reserve therefor. Moneys in said Bond and Interest Redemption, except reserve moneys, may be used for the redemption of bonds, after there shall have been set aside such a sum, which with the reserve moneys, would be sufficient to pay interest and principal maturing before the expiration of eighteen (18) months from the redemption. In respect to the allocation and use of moneys in said Bond and Interest Redemption Fund, due recognition shall be given as to priority rights, if any, between different issues or series of bonds. When the principal amount owing upon any bonds shall be reduced to the amount of the reserve therefor, then the principal of such bonds shall be paid from such reserve.

  1. REPLACEMENT FUND.

Out of the remaining revenues in the receiving Fund, there shall be next set aside at the end of each fiscal year in a fund to be designated “Replacement Fund”, a sum not less than One Hundred and 00/100 ($100.00) Dollars per year, commencing with the fiscal year ending March 8, 1952, until such fund shall reach at least Six Hundred and 00/100 Dollars ($600.00), to build up a reserve for any replacements to the system which may become necessary from time to time. Said fund shall not be used for any purpose except for such replacements, and until so used shall be kept in cash or invested in United States Government Bonds. Whenever moneys shall be used from said fund to make such replacements, said fund shall be restored to the sum of Six Hundred and 00/100 ($600.00) Dollars as soon as possible thereafter.

Revenues remaining in said Receiving Fund, after satisfaction of the above, at the end of any fiscal year shall be deemed to be surplus and shall be transferred, first, to the Operation and Maintenance Fund to the extent of any then deficit thereon, second, to the Bond and Interest Redemption Fund to the extent of any then deficit therein, and, third, to the Replacement Fund, such balance many be transferred to a fund designated “Construction Fund” and used for improvements, enlargements and extensions to said system, or may be transferred to the Bond and Interest Redemption Fund. No disbursements shall be made from said Receiving Fund. No except to the special funds as above provided. (As amended by Ordinance no. 88)

Sec. 18. TRANSFER OF FUNDS.

In the event that moneys in the Receiving Find are insufficient to provide for the current requirements of the Operation and Maintenance Fund or the Bond and Interest Redemption Fund, any moneys and/or securities in other funds of the system shall be transferred first, to the Operation and Maintenance Fund, and; second to the Bonds and Interest Redemption Fund to eh extent of any deficits thereon. Any amount so transferred shall be replaced as soon as possible.

Sec. 19. FUNDS; DEPOSITORIES; INVESTMENT OF.

All moneys in the several funds of the system except those in the Bond and Interest Redemption Fund shall be deposited with the State Savings Bank in the City of Stanton, Michigan. All moneys from time to time in the Bond and Interest Redemption Fund (including reserve money) shall be kept on hand with the bank or trust company at which the principal payable. The moneys in the Receiving Fund, in Operation and Maintenance and in the Bond and Interest Redemption Fund, shall each be kept in a separate depository account moneys in the Bond and Interest Redemption Fund, over and above those being accumulated for the payment of the next maturing principal and interest, and moneys in any other Fund except Receiving Fund and the Operation and Maintenance Fund, may be invested in United States Government obligations in the event of any such investment the securities representing the same shall be kept on deposit of the fund of funds from which such purchase was made.

Sec. 20. CITY; PUNCTUAL PERFORMANCE OF DUTIES.

The City of Stanton hereby covenants and agrees with the holder or holders of the bonds herein proposed to be issued, that it will punctually perform all duties with reference to said Water Supply System required by the constitution and laws of the State of Michigan and by this Ordinance; that it will construct the project herein provided for in substantial accordance with the maps, plans, and specifications hereinbefore referred to, and will have the same in operation on or before the fifteenth day of September, 1951; and that it will not sell, lease, mortgage or in any manner dispose of said system until all bonds payable from the revenues thereof shall have been paid in full or unless and until provisions shall have been made for payment of said bonds in full. Said city further covenants and agrees with the holders of said bonds that it will maintain said system in good condition and operate the same in an efficient manner and at a reasonable cost, so long as any of the said bonds in an amount which usually would be carried by private companies engaged in a similar type of business; that it will prepare, keep and file such records, statements and accounts as may be required by Act. No. 94, Michigan Public Acts of 1933, as now or hereafter amended; that it will file with the original purchaser of said bonds a copy of each annual statement which it is required to file with the Municipal Finance Commission.

Sec. 21. OUTSTANDING BONDS; NO ADDITIONAL EXCEPTION.

While any of the bonds herein authorized to be issued shall be outstanding, no additional bonds payable from the revenues of said Water Supply System shall be issued which shall have a prior or equal standing there with, except as hereinafter provided. Said City shall have the right to issue additional bonds of equal standing in a sum not to exceed One Thousand and no/100 Dollars ($1,000.00) for the completion of the project herein described in event the bonds herein authorized shall prove to be insufficient therefor. Said City shall have the right to issue additional bonds payable from the net revenues of said system for the purpose of improving, enlarging and/or extending the said system, which bonds when issued shall have equal standing with the bonds herein authorized; provided, that no such additional bonds shall be issued unless the average net revenues for the last two (2) preceding fiscal years shall be equal to the at least 125 per cent of the average annual requirements for principal and interest thereafter maturing on any bonds then outstanding payable from the revenue of said system and on such additional bonds then being issued. Permission by the Municipal Finance Commission (or other such Commission as shall have jurisdiction over the issuance of municipal bonds) to issue such additional bonds as shall constitute a conclusive presumption of the existence of conditions permitting the issuance thereof.

Sec. 22. FORM OF BONDS.

The bonds and attached coupons herein authorized to be issued shall be substantially in the following form, to wit:

UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MONTCALM
CITY OF STANTON

NUMBER:______________

$950.00

WATER SUPPLY SYSTEM

REVENUE BOND

Know all men by these presents, that the City of Stanton, Montcalm County, Michigan, hereby acknowledges that it is indebted and for value received promises to pay to the bearer hereof (or if this bond to pay to the bearer hereof), the sum of

Nine Hundred Fifty Dollars ($950.00)

on the first day of January, A.D. 19__ and to pay interest thereon a the rate of______ (______) per centum per annum, from the date hereof until paid, said interest being payable on January 1, 1952, and thereafter semi-annually on the first day of July and January in each year, which principal and interest are to be paid solely out of the net revenues as hereinafter provided. Both principal and interest are payable in lawful money of the United States of America at the State Savings Bank in the City of Stanton, Michigan, upon presentation and surrender of this bond and the coupons hereto attached as they severally mature.

This bond is one of the series of bonds numbered from 1 to 10, both inclusive, of like date and tenor except as to maturity _______, aggregating the principal sum of Nine Thousand Five Hundred Dollars ($9,500.00) issued by said City of Stanton under and pursuant to and in full conformity with the constitution and statutes of the State of Michigan, and especially Act. No. 94 of the Michigan Public Acts pf 1933, as amended, and Ordinance No.______ duly adopted by the Council of said City on the _____ day of ______, 1951, for the purpose of improving, enlarging and extending its Water Supply System.

This bond is a self-liquidating revenue bond, is not a general obligation of said City of Stanton, and does not constitute an indebtedness of the Said City within any constitutional or statutory limitation. The principal of and interest on the bonds of the series are payable solely from the net revenues of said Water Supply System, including future improvements, enlargements and extension hereof, and the payment of both the principal of and interest on said bonds, and on any additional bonds of equal standing which may be issued pursuant to the terms of said Ordinance, is secured by a statutory first lien on said net revenues. The term “revenues” and “net revenues” as herein used shall be construed as defined in Section 3 of Act No. 94 of the Michigan Public Acts of 1933, as now amended.

The bonds of this series shall be subject to redemption prior to maturity at the option of the City, in inverse numerical order, on any one or more interest payment dates on and after July 1, 1954, at the par value thereof and accrued interest.

Notice of redemption shall be given to the holders of bonds called to be redeemed, by publication of such notice not less than thirty (30) days prior to the date fixed for redemption, at least once in the Stanton Clipper Herald, a newspaper circulated in the City of Stanton, Michigan; provided, that where any bond shall be registered, then notice of the redemption thereof shall be given by registered mail addressed to the registered holder thereof at the address shown on the registration books of the Clerk of said City, which notice shall be mailed in the State of Michigan, not less than thirty (30) days prior to the date fixed for redemption. Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem the same.

The City of Stanton hereby covenants and agrees that at all times while any of the bonds of this issue shall be outstanding it will maintain such rates for services furnished by said Water Supply System as shall be sufficient to provide for the payment of the expense of administration and operation of said system and such expense for the maintenance thereof as may be necessary to preserve the same in good repair and working order; to provide for the payment of the interest upon and principal of said bonds as and when the same become payable and due, and for the creation of a reserve thereof as required in said Ordinance; and to build up a reserve as provided in said Ordinance for any replacements to said system which may become necessary from time to time. Rates shall be fixed and revised from time to time by the Council of said City so as to produce the foregoing amounts.

This bond may be registered as to principal only in the name of the holder on the books of the Clerk of said City of Stanton, and such registration noted on the back hereof by said Clerk, and thereafter no transfer shall be valid unless made upon the books of said Clerk and likewise noted on the back thereof. Transferability by delivery may be restored by registration on the bearer. Negotiability of the interest coupon shall not be affected by registration.

It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of the bonds of this series, existed, have happened and have been performed in due time, form and manner as required by law.

In witness whereof, the City of Stanton, Montcalm County, Michigan, by its Council, has caused this bond to be signed in its name by its Mayor and Clerk, and its Corporate seal to be affixed hereto, and has caused the annexed interest coupons to be executed with the facsimile signature of its Mayor and Clerk, all as of the ________day of________ A.D. 19____.

CITY OF STANTON

By _____________________

Mayor

By _____________________

Clerk

COUPON

NUMBER____________                                                                                          $___________

On the first day________ A.D. 19___, the City of Stanton, Montcalm County Michigan, will pay to the bearer hereof the sum of _________ Dollars, lawful money of the United States of America, at the State Savings Bank, in the City of Stanton, Michigan, same being the __________ interest due on that day on its Water Supply System Revenue Bond, No._________, dated June 15, 1951. This coupon is not a general obligation of said City, is payable solely from certain revenues as set forth in the bond to which this coupon pertains and is subject to the redemption provisions in said bond.

 

________________________________              ________________________________
(Mayor)                                                                                  (Clerk)

Registry

In whose name registered

________________________________________________________________________

Date of Registration

________________________________________________________________________

Signature of Clerk of City of Stanton

________________________________________________________________________

 

Sec. 23. PROCEEDS FROM BONDS; PROCEDURES.

The proceeds of the sale of the bonds herein authorized to be issued, shall be deposited in the State Bank of Edmore, in the Village of Edmore, Montcalm County, Michigan, a member of the Federal Reserve System. From said moneys there shall first be transferred to the Bond and Interest Redemption Fund, any premium and accrued interest paid to the City by the purchaser of said bonds. The balance of such proceeds shall be used solely to pay the costs of the project hereinbefore described and any engineering, legal and other expenses incident thereto, and shall be paid out upon authorization of the Council; provided, that said Council shall not authorize the payment of any such moneys for construction work until there shall have been first filed with it by the Water Work Committee of the Council in charge of such work, a written statement to the effect that the sum so to be paid is in full or partial payment of a contract obligation in connection with said project and that the City has received the consideration for such payment. Said statement of the Water Works Committee of said construction which has been approved by him and also the amount of the balance of construction obligations. (As amended by Ordinance. No. 88)

Sec. 24. APPROVAL OF MICHIGAN MUNICIPAL FINANCE COMMISSION.

The said Water Supply System Revenue Bonds shall not be issued until the Municipal Finance Commission of the State of Michigan has approved such issuance, and the City Clerk is hereby authorized and directed to make application to said commission for such approval.

Sec. 25. UNEXPENDED BALANCES; DISPOSITION.

Any unexpected balance of the proceeds of the sale of the bonds herein authorized, remaining after the completion of the project, may to the extent of One Thousand Four Hundred Twenty-Five and 00/100 ($1,425.00) Dollars be used for the improvement, enlargement and/or extension of said system, if such use shall be approved by the Municipal Finance Commission, and any remaining balance shall be paid immediately into the Bond and Interest Redemption Fund and the same shall be sued only for the value, of said bonds. Any bonds so acquired by purchase shall be cancelled and shall not be reissued. (As amended by Ordinance. No. 88)

Sec. 26. PUBLICATION AND RECORDING.

The Ordinance shall be recorded in the minutes of the meeting of the Council at which it was adopted, as soon as practical after its passage, which record shall be authenticated by the signatures of the Mayor and Clerk of said City, and shall be published once in the Stanton Clipper Herald, a newspaper of general circulation within the said City. This Ordinance shall become effective immediately upon its adoption, except that the accounting as provided on this Ordinance shall become effective June 15, 1951. (As amended by Ordinance. No. 88)

Sec. 27. VALIDITY OF ORDINANCE.

If any section, paragraph, sentence, clause or phrase of this Ordinance shall be held invalid, the same shall not affect any other part of this Ordinance.

Sec. 28. REPEAL CLAUSE.

All Ordinances and resolutions and parts thereof, insofar as the same may be in conflict herewith, are hereby repealed.

Sec. 29 EFFECTIVE DATE.

Effective April 26, 1951.


ORDINANCE NO. 232 – CROSS CONNECTION

CROSS CONNECTION REGULATION FOR THE CITY OF STANTON’S PUBLICLY OWNED WATER SYSTEM

An ordinance regulating cross connections with the public water supply system, i.e., a connection or arrangement of piping or appurtenances through which water of questionable quality, wastes or other contaminants can enter the public water supply system.

Be it ordained by the Council of the City of Stanton, Michigan:

Section 1.        The City of Stanton adopts by reference the Water Supply Cross Connection Rules of the Michigan Department of Environmental Quality being R 325.11401 to R 325.11407 of the Michigan Administration Code.

Section 2.        That it shall be the duty of the Department of Public Works to cause inspections to be made of all properties served by the public water supply where cross connections with the public water supply is deemed possible. The frequency of inspections and re-inspections based potential health hazards involved shall be established by the Department of Public Works and approved by the Michigan Department of Environmental Quality.

Section 3.        That the representative of the Department of Public Works shall have the right to enter at any reasonable time any property served by a connection to the public water supply system of the City of Stanton for the purpose of inspecting the piping systems thereof for cross connections. On request, the owner, lessees, or occupants of any property so served shall furnish to the inspection agency any pertinent information or refusal of access, when requested, shall be deemed evidence of the presence of cross connection.

Section 4.        That the Department of Public Works is hereby authorized and directed to discontinue water service after reasonable notice to any property wherein any connection in violation of this ordinance exists and to take such other precautionary measures deemed necessary to eliminate any danger of contamination of the public water system. Water service to such property shall not be restored until the cross connection(s) has/have been eliminated in compliance with the provisions of this ordinance.

Section 5.        That all testable backflow prevention assemblies shall be tested at the time of installation or relocation and after any repair. Subsequently testing of devices shall be conducted at a time interval specified by the Department of Public Works and in accordance with Michigan Department of Environmental Quality requirements. Only individuals that hold a valid Michigan plumbing license and have successfully passed an approved backflow testing class shall perform such testing. Each tester shall also be approved by the Department of Public Works. Individuals performing such assembly tests shall certify the results of their testing.

Section 6.        That the potable water supply made available on the properties served by the public water supply shall be protected from possible contamination as specified by this ordinance and by the State and City of Stanton plumbing code. Any water outlet which could be used for potable or domestic purposes and which is not supplied by the potable system must be labeled in a conspicuous manner as: WATER UNSAFE FOR DRINKING.

Section 7.        That this ordinance does not supersede the State and City of Stanton plumbing codes, but is supplementary to them.

Section 8.        That any person or customer found guilty of violating any of the provisions of this ordinance or any written order of the Department of Public Works, in pursuance thereof, shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of not less than $100.00 and not more than $250.00 for each violation. Each day upon which a violation if the provisions of this act shall be deemed a separate and additional violation for the purpose of this ordinance.


ORDINANCE NO. 140 – ACQUISTION AND CONSTRUCTION OF IMPROVEMENTS

WATER SUPPLY SYSTEM
CITY OF STANTON, MICHIGAN

AN ORDINANCE TO PROVIDE FOR THE ACQUISITION AND CONSTRUCTION OF IMPROVEMENTS TO THE WATER SUPPLY SYSTEM OF THE CITY OF STANTON, MONTCALM COUNTY, MICHIGAN; TO AUTHORIZE THE ISSUANCE OF WATER SUPPLY SYSTEM REVENUE BONDS BY THE CITY OF STANTO, PURSUANT TO THE PROVISIONS OF ACT 94, PUBLIC ACTS OF MICHIGAN, 1933, AS AMENDED, FOR THE PURPOSE OF CONSTRUCTING IMPROVEMENTS TO THE EXISITING WATER SUPPLY SYSTEM OF SAID CITY; TO PRESCRIBE THE FORM OF BONDS; TO PROVIDE FOR THE COLLECTION OF REVENUES FROM SAID SYSTEM SUFFICIENT FOR THE PURPOSE OF PAYING THE COSTS OF OPERATION AND MAINTENANCE THEREOF; TO PROVIDE AN ADEQUATE RESERVE FUND THEREFOR; TO PROVIDE FOR THE PAYMENT AND SECURITY OF SAID BONDS AND, TO PROVIDE FOR THE RIGHTS OF THE HOLDERS OF SAID BONDS IN ENFORCEMENT THEREOF AND OTHER MATTERS RELATIVE TO SAID BONDS AND SAID SYSTEM, AND TO THE USE THEREOF FOR THE PRESERVATION OF THE PUBLIC HEALTH, SAFETY AND WELFARE.

THE CITY OF STANTON (MONTCALM COUNTY, MICHIGAN) ORDAINS:

Sec. 1. DEFINITIONS.

Whenever used in this ordinance or in the bonds to be issued hereunder, except when otherwise indicated by context, the following definitions shall apply:

  1. “City” shall mean the city of Stanton, Montcalm County, Michigan.
  2. “Council” shall mean the Council of the City of Stanton, the legislative and governing body thereof.
  3. “Public improvements” shall mean the improvements authorized to be acquired pursuant to this Ordinance described in Section 2 hereof and prepared by the engineers.
  4. “Acquired” shall include acquisition by purchase, construction or by any other method.
  5. “System” or “Water Supply System” shall mean the complete Water Supply System of the City, including all wells, pumps, pump houses, water mains, storage facilities, treatment facilities, and all other facilities used or useful in connection with the supply and distribution of water domestic, commercial or industrial uses and for fire protection purposes, including all appurtenances thereto now owned by the City, acquired pursuant to this Ordinance and all extensions and improvements thereto hereafter made, located in the City.
  6. “Revenues” and “net revenues” shall have the same meanings as defined in Section 3, Act 94, Public Acts of Michigan, 1933, as amended.
  7. “Bonds” or “revenue bonds” shall mean the City of Stanton Water Supply System Revenue Bonds, Series 1981, authorized and issued pursuant to Act 94, P.A. 1933, as amended, and this Ordinance.
  8. “Government” shall mean the government of the United States of America.

Sec. 2. NECESSITY; DESCRIPTION OF PROJECT.

It is hereby determined to be necessary for the public health, safety and welfare of the City of Stanton, Montcalm County, Michigan, to acquire and construct, in accordance with detailed maps, plans and specifications thereof prepared by Granger Engineering, Inc., Consulting Engineers of Cadillac Michigan, improvements to the Water Supply System of the City consisting of the replacement of the existing water storage facility and service lines, the improvement of existing wells, the extension of new service lines and other additions and alterations to the present water system together with the necessary appurtenances and attachments thereto (hereinafter called the “public improvements”).

Sec. 3. ESTIMATED COST; PERIOD OF USEFULNESS.

The cost of the public improvements has been estimated by engineers to the One Million Three Hundred Eighty Thousand ($1,380,000) Dollars including the payment of incidental expenses as are hereafter specified in Section 4 of this Ordinance, which estimate of cost is hereby approved and confirmed, and the period of usefulness of the public improvements is estimated to be greater than forty (40) years.

Sec. 4. ISSUANCE OF BONDS.

To defray the cost of acquiring and constructing said public improvements, including the payment of legal, engineering, financial and other expense4s incident thereto and incident to the issuance and sale of the Bonds, it is hereby determined that the City of Stanton borrow the sum of Eight Hundred Sixteen Thousand Dollars ($816,000) and that revenue bonds be issued therefor pursuant to the provisions of Act 94, Public Acts of Michigan, 1933, as amended. The balance of the costs of the public improvements shall be paid by a development grant of Five Hundred Sixty-Four Thousand ($564,000) Dollars from the Farmers Home Administration, United States Department of Agriculture or by local funds or contribution of land.

Sec. 5. BOND INFORMATION.

The Bonds authorized to be issued and sold pursuant to the provisions of Act No. 94 and this Ordinance in the aggregate principal sum of $816,000.00 shall be known as “Water Supply System Revenue Bonds, Series 1981”; shall not be general obligations of the City, but revenue bonds payable out of the net revenues of the System after provisions has been made for the payment of expenses of administration, operation and maintenance; shall be dated as of the date of delivery to the initial purchaser; shall be numbered consecutively in the direct order of their maturities from 1 to 164, both inclusive; bond numbered 1 shall be in the denomination of $1,000 and bonds numbered from 2 to 164, both inclusive, shall be in the denomination of $5,000.00 each; shall bear interest at the rate of 5.0% per annum, payable on August 1, 1981 and semi-annually thereafter on the first day of February and August of each year until the principal of and interest on said Bonds is fully paid. Said Binds shall mature serially on February 1 of each year as follows:

1983                                            $6,000
1984-1988, both inclusive      $5,000
1989-1994, both inclusive      $10,000
1995-2000, both inclusive      $15,000
2001-2005, both inclusive      $20,000
2006-2009, both inclusive      $25,000
2010-2012, both inclusive      $30,000
2013-2015, both inclusive      $35,000
2016-2021, both inclusive      $40,000

Bonds maturing in the years 1983 to 2021, both inclusive, shall be subject to redemption as a whole or in part, in inverse numerical order, at the option of the City prior to maturity on any one or more interest payment dates, on or after August 1, 1981. Bonds so called for redemption shall be redeemed at the par value thereof and accrued interest to the date fixed for redemption.

Notice of redemption shall be given to the holders of the Bonds to be redeemed by publication of such notice not less than thirty (30) days prior to the date fixed for redemption, at least once in a newspaper or publication circulated in Michigan, which carried as a part of its regular service, notices of the sale of municipal bonds. In the case of registered bonds, (unless registered to “Bearer”) thirty (30) days’ notice shall be given by mail to the registered holder at the registered address and no publication shall be necessary. Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem the same.

The principal of said Bonds and the interest therein shall be payable in lawful money of the United States of America at a bank or trust company to be designated by the purchaser of the Bonds, upon presentation and surrender of said Bonds, or if registered, to the registered holder at the address shown on the registration books of the City.

Sec. 6. REGISTRATION AND EXECUTION.

The bonds and coupons shall be payable to bearer or at the option of the holder thereof, the Bonds may be registered as to principal only or registered as to both principal and interest on the books of the City, kept for that purpose by the City Treasurer, as registrar. Registration as to both principal and interest shall require detachment of the coupons from said bond. Registered bonds are transferable inly upon presentation to the registered holder or his attorney-in-fact. Bonds registered as to both principal and interest are subject to exchange for a negotiable coupon bond payable to bearer at the request and sole expense of the registered owner thereof upon surrender of the bond to the City.

The Bonds shall be signed by the Mayor and countersigned by the City Clerk, and they are hereby authorized and directed to execute said Bonds for and on behalf of the City and to affix the seal of the City thereto, and to execute the interest coupons, if any, to be attached to said Bonds by causing to be affixed thereto their facsimile signatures; and that upon the execution of said Bonds and attached coupons, the same shall be delivered to the Treasurer of the City who is hereby authorized and directed to deliver said bonds and attached coupons to purchaser thereof, upon receipt of the purchase price therefor, plus the accrued interest, if any, to the date of delivery.

Sec. 7 BOND FORM.

The form and tenor of the Bonds shall be substantially as follows:

UNITED STATES OF AMERICA
STATE OF MICHIGAN
COUNTY OF MONTCALM
CITY OF STANTON

WATER SUPPLY SYSTEM REVENUE BOND, SERIES 1981

NO.__________________                                                                                                      $5,000.00

KNOW ALL MEN BY THESE PRESENTS that the City of Stanton County of Montcalm, State of Michigan, for value received, hereby promises to pay to the bearer hereof, or, if registered, to the registered holder hereof, but only out of the net revenues of the Water Supply System of the City of Stanton including all appurtenances, additions, extensions and improvements thereto, the sum of

_____________________THOUSAND DOLLARS

On the first day of ______________, A.D., 19__, together with interest thereon from the date hereof until paid at the rate of five per cent (5.0%) per annum, payable on August 1, 1981, and semi-annually thereafter on the first day of February and August of each year. Both principal of and interest on this bond are payable in lawful money of the United States of America at

_____________________ ________________________ _______________________,

Michigan upon presentation and surrender of this bond, or if registered, to the registered holder at the address shown on the registration books of the City and for the prompt payment thereof, the revenues of the Water Supply System of the City, including all appurtenances, operation, administration and maintenance are hereby irrevocably pledged and a statutory first lien thereon is hereby created.

This bond is one of a series of bonds of even date and like tenor, except as to date of maturity and denomination, aggregating the principal sum of $816,000.00, consisting of One Hundred Sixty-Four (164) bonds numbered in direct order of maturity from 1 to 164, both inclusive, with bond numbered 1 in the denomination of $1,000.00 and bonds numbered from 2 to 164, both inclusive, in the denomination of $5,000.00 each, issued pursuant to Ordinance No._________, duly adopted by the City on _____________, 1980, and under and in substantial compliance with the constitution and statues of the State of Michigan, including specifically Act 94, Public defraying part of the cost of acquiring and constructing supply system of the City consisting of the replacement of the existing water storage tank and service lines, the improvement of existing wells, and the extension of new service lines and other additions and alterations to the appurtenances, attachments and equipment related thereto. For a compete statement of the revenues from which, and the conditions under which, this Bond is payable, a statement of the conditions under which additional bonds of equal standing may hereafter be issued, and the genera covenants and provisions pursuant to which this Bond is issued, reference is made to the above described Ordinance.

Bonds maturing in the years 1983 to both 2021, inclusive, shall be subject to redemption as a whole or in part, in inverse numerical order, at the option of the City prior to maturity on any interest payment dates on or after August 1, 1981 at par and accrued interest to the date fixed for redemption.

Notice of redemption shall be given to the holders of the Bonds to be redeemed by publication of such notice not less than thirty (30) days prior to the date fixed for redemption, at least once in a newspaper or publication circulated in Michigan, which carries as a part of its regular service, notices of the sale of municipal bonds. In the case of registered bonds, (unless registered to “Bearer”) thirty (30) days’ notice shall be given by mail to the registered holder at the registered address and no publication shall be necessary. Bonds so called for redemption shall not bear interest after the date fixed for redemption, provided funds are on hand with the paying agent to redeem the same.

Said Bonds may be registered as to principal only, or as to principal and interest on the books kept by the Treasurer of the City as registrar in the name of the holder and un-matured interest coupons detached from said Bond after which it shall be transferable only upon presentation to such registrar with a written transfer by the registered holder or his attorney-in-fact. Such transfer shall be noted upon the books of the City kept for that purpose. Said Bonds once registered are exchangeable at the request of the registered owner hereof and at his sole expense for a negotiable coupon bond payable to bearer, upon surrender of this Bond to the borrower at the office of the Treasurer of the City.

This Bond is a self-liquidating Bond, and is not a general obligation or indebtedness of the City within any constitutional, statutory or charter limitation, but is payable, both as to principal and interest solely from the net revenues of the Water Supply System of the City. The principal of and interest on this bond are secured by the statutory lien hereinbefore mentioned.

The City hereby covenants and agrees to fix and maintain at all times while any of such Bonds shall be outstanding, such rates for services furnished by said Water Supply System as shall be sufficient to provide for payment of the principal of and interest upon all such Bonds as and when the same become due and payable, and to create a bond and interest redemption fund (including a bond reserve account) therefore, to provide for the payment of expenses of administration and operation and such expenses for maintenance of said Water Supply System as are necessary to preserve the same in good repair and working order, and to provide for such other expenditures and funds for said System as are required by said Ordinance.

It is hereby certified and recited that all acts, conditions and things required by law precedent to and in the issuance of this Bond and the series of Bonds of which this is one have been done and performed in regular and due time and form as required by law.

IN WITNESS WHEREOF, the City of Stanton County of Montcalm, State of Michigan, by its City Council has caused this Bond to be signed in the name of said City by its Mayor and to be countersigned by its City Clerk, and its corporate seal to be hereunto affixed and has caused the annexed interest coupons, if any, to be executed with the facsimile signatures of said President and City Clerk, all as of _______________________________________.

CITY OF STANTON
COUNTY OF MONTCALM
STATE OF MICHIGAN

                                                                                                  By________________________
Mayor

[SEAL]

Countersigned:

______________________________

City Clerk

REGISTRATION
NOTHING TO BE WRITTEN HEREON EXCEPT
BY THE CITY TREASURER AS REGISTRAR

Date of Registration                   Name of registered Owner                             Registrar

_________________________________________________________

_________________________________________________________

_________________________________________________________

(Form of Coupon)

No.________________________                                                           $____________________

On the first day of ________________, A.D., ________________, the

City of Stanton , County of Montcalm, State of Michigan, will pay to the bearer hereof the sum of __________________ Dollars, in the manner and out of the net revenues described in said Bond at the _________________ Michigan, being the semi-annual interest due that date on its ______________, No.____________________.

This coupon is not a general obligation of the City, but is payable of certain revenues as set forth in the Bond to which it pertains.

                                                                                           ___________(Facsimile)___________
Mayor

__________(Facsimile)____________
City Clerk

Sec. 8. REVENUE AS SOLE SECURITY; NO GENERAL OBLIGATION OF CITY.

The Bonds, including both principal and interest thereon, shall not be a general obligation of the City and shall not constitute an indebtedness of the City for purposes of any debt limitations imposed by any constitutional provision or any statutory or charter limitation. The principal of and interest on said Bonds shall be payable solely from the net revenues derived from the operation of the System, including future improvements, enlargements and extensions thereof. The net revenues from the System, including future enlargements, improvements, and extensions thereto, are hereby pledged to the payment of the principal of and interest on the Bonds. To secure the payment of the principal of and interest on the Bonds issued hereunder and on any additional Bonds of equal standing which may be issued as provided by the terms of this Ordinance, there is hereby created to an in favor of the holders of such Bonds, and the interest coupons pertaining thereto, a lien, considered a statutory first lien upon the net revenues from the said System, including future enlargements, improvements, and extensions thereof. The net revenues so pledged shall be and remain subject to said lien until the payment in full of the principal of and interest on said Bonds.

Sec. 9 RIGHTS OF BONDHOLDERS.

The holder or holders of said Bonds representing in the aggregate not less than 20 per cent of the entire issue then outstanding may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect and enforce said statutory lien and enforce and compel the performance of all duties of the officials of the City, including the fixing of sufficient rates, the collection of revenues, the proper segregation of revenues and the proper application thereof; Provided, however, that said statutory lien shall not be construed to give any holder or owner of any bond or coupon authority to compel the sale of the public improvement, the revenues of which are pledged thereto.

If there be any default in the payment of the principal of or interest upon any of said Bonds, any court having jurisdiction in any proper action may appoint a receiver to administer and operate said System on behalf of the City and under the direction of said court, and by and with the approval of said court, to fix and charge rates and collect revenues sufficient to provide for the payment of any bonds or other obligations outstanding against the revenues of the System and for the payment of the expenses of operating and maintaining the System and to apply the income and revenues of the System in conformity with Act 94 and this Ordinance.

The holder or holders, from time to time, of said Bonds herein authorized to be issued, shall have all the rights and remedies given by law and particularly by said Act No 94 of the Michigan Public Acts of 1933, as amended, for the collection and enforcement of said Bonds and the security therefor.

Sec. 10. MANAGEMENT OF SYSTEM.

Except as provided in Section 12, below, the construction alteration, repair and management of the System shall be under the supervision and control of the City Council. The City may employ such persons in such capacities as it deems advisable to carry on the efficient management and operation of the System. The City Council may take such rules, orders and regulations as it deems advisable and necessary to assure the efficient management and operation of the System.

Sec. 11. SUPERVISED BANK ACCOUNTS.

The Treasurer of the City shall be custodian of all funds belonging to and/or associated with the City’s System and such is a holder of any of the funds shall be deposited in Montcalm Central Bank, Stanton, Michigan, which bank is a member of the Federal Deposit Insurance Corporation. In the event that the Government is a holder of any of the Bonds herein authorized all monies in the supervised bank account shall be secured by the depository bank in advance in accordance with United States Treasury Department Circular No. 176. The City Treasurer shall execute a company approved by the Government, on which the United States of America acting through the Farmers Home Administration and the City shall be named as co-obliges and the amount thereof shall not be reduced without the prior written consent of the Government.

Sec. 12. FUNDS.

The City Treasurer is hereby directed to create the following funds into which the bond proceeds and the revenues and income from the System shall be deposited, which accounts shall be established and maintained, except as otherwise provided, so long as any of the bonds hereby authorized remain unpaid.

  1. CONSTRUCTION FUND.After deducting a sum equal to the amount of any accrued interest from the date of the Bonds to the date of delivery thereof, which sum shall be deposited in the Bond and Interest Redemption Fund, the balance of the proceeds of the bonds hereby authorized shall be deposited in a separate depository account designated Construction Fund in the Montcalm Central Bank, Stanton, Michigan, a bank insured by the Federal Deposit Insurance Corporation. In the event that the Government is a holder of any of the Bonds herein authorized, then said Fund shall be established as a supervised bank account and such proceeds shall be withdrawn on the orders of the City of Stanton only on checks signed by the Treasurer of the City and countersigned by the County Supervisor of the Farmers Home Administration. Said monies shall be used solely for the purpose for which the bonds were issued.Any unexpected balance in the Construction Fund remaining after completion of the Project herein authorized may in the discretion of the City Council to the extent of fifteen per cent (15%) of the amount of the Bonds authorized by this Ordinance, be used for further improvements, enlargements, and extensions to the system, provided that at the time for such expenditures such use be approved by the Municipal Finance Commission. Any remaining balance after such expenditure shall be paid into the Bond and Interest redemption Fund and shall be used for such purposes as allowed by law.In the event that the Government is a holder of any or all of the Bonds the use of any unexpended balance in the Construction Fund must be authorized by the written approval of the Farmers Home Administration, otherwise any unexpended balance in the Construction Fund remaining after completion of the Project herein authorized shall be paid immediately into the Bond and Interest redemption Fund as hereinafter specified and shall be used only for meeting Bond reserve requirements of for the redemption or purchase at not more than the fair market value, of outstanding Bonds issued pursuant to the provisions of this Ordinance.After completion of the Project and disposition of remaining bond proceeds, if any, pursuant to the provisions of this Section, the Construction Fund shall be closed.
  1. WATER SUPPLY SYSTEM RECEIVING FUND.As soon as the System becomes operative and revenue producing, the gross income and revenue shall be set aside into a separate depository account to be designated the Water System Supply Receiving Fund (the “Receiving Fund”) and monies so deposited therein shall be expended and used only in the manner and order as follows:
  1. OPERATION AND MAINTENANCE FUND.There is hereby established a fund known as the Operation and Maintenance Fund. Prior to the beginning of each fiscal year, the Council shall prepare an annual budget of said system for the ensuing fiscal year itemized on the basis of quarterly requirements. In the event that the Government is a holder of any of the Bonds, a copy of such a budget shall be mailed without request to the Farmers Home Administration prior to adoption and upon written request to any other bond holders. Out of revenues in the Receiving Fund, there shall be set aside quarterly and deposited into the Operation and Maintenance Fund a sum sufficient to pay the reasonable and necessary current expenses of administering, operating and maintaining said system for the ensuing quarter.
  1. WATER SUPPLY SYSTEM REVENUE BOND AND INTEREST REDEMPTION FUND.There is hereby established as a separate depository account a fund known as the “Water Supply System Revenue Bond and Interest Redemption Fund” (the “Bond and Interest Redemption Fund”). After transfer to the Operation and Maintenance Fund required in (1) above, there shall be transferred each quarter from the Receiving Fund, before any other expenditures or transfer therefrom, and deposited in the Bond and Interest Redemption Fund, for payment of principal and interest on the Bonds, a sum equal to at least ½ of the amount of the interest due on the next ensuing interest payment date plus not less than ¼ of the principal maturing on the next ensuing is a failure to make such quarterly deposit or for any reason there is a deficiency in the Bond and Interest redemption Fund, then an amount equal to the deficiency shall be set aside and deposited in the Bond and Interest Redemption Fund from the net revenues in the ensuing month or months, which amount shall be in addition to the regular quarterly payment deposit required during each succeeding quarter or quarters.There is hereby established within the Bond and Interest redemption Fund a separate account to be known as the Bond Reserve Account, into which there shall be paid in quarterly installments from the revenues of the System after provision has been made for the Operation and Maintenance Fund and the current requirements of the Bond and Interest Redemption Fund, all the remaining revenues of the System in the Receiving Fund until there has accumulated a sum as a reserve account for the Bonds herein authorized in the amount of $48,000.00. Except as hereinafter provided, no further deposits need be made into the Bond Reserve Account shall be used solely for the payment of the principal of an interest on said Bonds as to which there would otherwise be default.If at any time it shall be necessary to use monies in the Bond reserve Account for payment of principal and/or interest on said Bonds, then the monies so used shall be replaced for the reserve first received thereafter which are not required by this Ordinance to be used for operation and interest requirements.No further payments need be made into the Bond and Interest Redemption Fund after the amount accumulated and held in said Fund (including the Bond Reserve Account), is sufficient to pay, when due, the entire amount of principal and interest which will be payable at the time of maturity or at an earlier date of all the bonds then remaining outstanding.
  1. IMPROVEMENT AND REPAIR FUND.There is hereby established an Improvement and Repair Fund, into which there shall be placed each month, after meeting the foregoing requirements, such sums as the City Council shall determine to be used for the purpose of acquiring and constructing improvements, additions and extensions to the System and for the purpose of making repairs and replacements to the System.
  1. SURPLUS MONIES.All monies remaining in the receiving Fund at the end of any operating year after satisfying the above requirements may be transferred to the Bond and Interest Redemption Fund and used as authorized in this Ordinance or at the option of the City transferred to the Improvement and Repair Fund and used for the purposes for which said Fund was established. Provided, however, that if there should be a deficit in the Operation and Maintenance Fund, Bond and Interest Redemption Fund or the Bond Reserve Account, on account of defaults in setting aside therein the amounts hereinbefore required, then transfers shall be made from the monies remaining in the Receiving Fund at the end of any operating year to such funds in the priority and order named, to the extent of such deficits.

Sec. 13. INVESTMENT OF FUNDS.

Monies in the several funds and accounts herein established, including the monies derived from the proceeds of sale of bonds, may be invested in United States government obligations, obligations the principal and interest on which is fully guaranteed by the United States or certificates of deposit of a bank, subject to the imitations provided in Act 94, Public Acts of Michigan, 1933, as amended, and subject to the applicable limitations imposed by the Arbitrage regulations issued pursuant to Section 103 (c) of the Internal Revenue Code. Investment of money in the Bond and Interest Redemption Fund shall be limited to United States governmental obligations bearing maturity dates before the date of the next maturity principal or interest. In the event such investments are made, the securities representing the same shall be kept n 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 to the extent such credit would not cause the Bonds to be treated as arbitrage bonds within the meaning of Section 103 (c) of the Internal Revenue Code and the regulations promulgated thereunder.

Sec. 14. RATES AND CHANGES.

Prior to the issuance of the Bonds, the City Council shall establish rates and charges for the services of said System in an amount sufficient to pay the expenses of administration and the costs of operation and maintenance of said System: to provide an amount of revenues adequate for the payment of principal and interest, debt service, reserve, replacement and all other requirements provided herein, and otherwise comply with the covenants herein provided. The rates and charges for all services and facilities rendered by the System shall be reasonable and just, taking into consideration the costs and value of said System and the cost of maintaining, repairing, and operating the same and the amounts necessary for the retirements of Bonds and accruing interest and charges as shall be charged such rates and charges as shall be adequate to meet the requirements of this and the preceding section.

Sec. 15. LIEN.

The rates and charges for all services furnished by the System to any premises shall be a lien thereon. There is hereby created a lien made a statutory lien by Section 8 of Act 94, Public Acts of Michigan, 1933, as amended, upon the net revenues pledged to the payment of the principal of any interest upon said Bonds, to and in favor of the holders of such Bonds and interest coupons pertaining thereto which liens shall be a first lien upon such net reserves, except where there exists a prior lien.

The charges for service furnished to any premises is, by Section 21, Act 94, Public Acts of Michigan, as amended, and by this Ordinance, made a lien thereon, and those charges delinquent for six (6) months or more shall be certified by the City annually on March 1 of each year to the City Treasurer who shall enter the lien therefor same upon the next tax roll against the premises to which the service shall have been rendered, and the charges shall be collected and the lien shall be enforced in the same manner as provided for the collection of taxes assessed upon such roll and the enforcement of the lien therefor. However, in all cases when a tenant is responsible for the payment of the charges and City is so notified in writing (including a true copy of any lease), then the charges shall not become a lien against the premises for and after the date of the notice. From and after such notice no further service shall be rendered to the premises until a cash deposit of not less than One Hundred ($100.00) Dollars shall have been made as security for payment of the charges.

Sec 16. NO FREE SERVICE.

No free service shall be furnished by said System to the City r to any individual, firm or corporation public or private or to any agency or instrumentality.

Sec. 17. COVENANTS.

The City covenants and agrees, so long as any of the Bonds hereby authorized remain unpaid, as follows:

  1. That it will punctually perform all duties with reference to the System and comply with applicable State laws and regulations and continually operate and maintain the System in good condition.
  2. That it will construct the Project herein provided, in substantial accordance with the plans and specifications hereinbefore referred to, and will have the same in operation at the earliest possible time and that it will not sell, lease, mortgage or in any manner dispose of the System, or any substantial part thereof until all Bonds payable from the revenues thereof shall have been paid in full or provision has been made for the payment of such Bonds.
  3. That it will maintain complete books and records relating to the operation of the System and its financial affairs and will cause such books and records to be audited annually at the end of each fiscal year and an audit report prepared, and as long as the Government is the holder of any of the Bonds, will furnish Farmers Home Administration without request, a copy of each audit report and will furnish any other holder of any Bonds a copy of such report upon written request. As long as the Government is the holder of any bonds herein authorized, the Farmers Home Administration shall have the right to inspect the System and the records, accounts, and data relating thereto at all reasonable times.
  4. That it will prepare, keep and file such records, statements and accounts as may be required by law and that it will file with the Municipal Finance Commission each year, as soon as possible, not later than ninety (90) days after the close of the fiscal year, a report, on forms prepared by the Commission, made in accordance with the accounting method of the municipality completely setting forth the financial operation of such fiscal year for its own purposes. A copy of such a report shall be concurrently furnished to the Farmers Home Administration as long as the Government is a holder of any of the bonds herein authorized.
  5. That it will maintain and carry, for the benefit of the holders of the Bonds, insurance on all physical properties of the System, of kinds and in the amounts normally carried by municipalities engaged in the operation of similar systems. All monies received for losses under any such insurance policies shall be applied solely to the replacement and restoration of the property damaged or destroyed, and to the extent not so used, shall be used for the purpose of calling Bonds. If Government is a holder of any of the Bonds herein authorized, the said insurance shall be approved by the Farmers Home Administration.
  6. That it will not borrow any money from any source or enter into any contract or agreement to incur any their liabilities that may in any way be a lien upon the revenues or otherwise encumber the System so as to impair revenues therefrom, without obtaining the prior written consent of the Farmers Home Administration if the Government is a holder of any of the Bonds authorized herein, nor shall it transfer or use any portion of the revenues derived in the operation of the System for any purpose not herein specifically authorized.
  7. That any extensions or improvements of the System shall be made according to sound engineering principals and plans and specifications shall be submitted to the Government for prior review, if it is a holder of any of the Bonds

Sec. 18. ADDITIONAL BONDS.

The City may issue additional bonds of equal standing in an amount necessary to complete construction of the public improvements according to the pans set forth in Section 2, or for the purpose of making reasonable repair, replacement of extension of the System. Additional Bonds for repair, replacement or extension of the System may be issued only if (i) the net revenue of the System for the fiscal year net preceding the year in which such additional bonds are to be issued was 120 percent of the average annual debt service requirements issued; or, (ii) the holders of at least 75 percent of the then outstanding bonds and notes, if any, issued for acquisition of the System consent to the waiver or modification of (i), above, in writing.

Any additional bonds shall be subject to the various funds herein established as if said bonds were part of the original bond issue herein authorized, and all revenue from any such extension or replacement constructed by the proceeds of any additional bond issue shall be paid to the Water Supply System Receiving Fund.

Except as hereinabove specifically provided, so long as any of the Bonds herein authorized are outstanding, no additional bonds or other obligations pledging any portion of the revenues of said System shall be incurred or issued by the City unless the same shall be junior and subordinate in all respects of the Bonds herein authorized

Sec. 19. ORDINANCE SHALL CONSTITUTE A CONTRACT.

The provisions of the Ordinance shall constitute a contract between the City and the Bond Holders and after the issuance of such Bonds this Ordinance shall not be repealed or amended in any respect which will adversely affect the rights and interest of the holders nor shall the City adopt any law, ordinance or resolutions in any way adversely affecting the rights of the holders so long as said Bonds or interest thereon remains unpaid.

Sec. 20. REFUNDING OF BONDS.

If at any time it shall appear to the Government that the City is able to refund, upon call for redemption or with consent of the then outstanding Bonds by obtaining a loan for such purposes from responsible cooperative or private credit sources, at reasonable rates and terms for loans for similar purposes and periods of time, the City will, upon request of the Government, apply for and accept any such loan in sufficient amount to repay the Government, and will take all such actions as may be required in connection with such loans.

Sec. 21. DEFAULT OF CITY.

If there shall be default in the Bond and Interest redemption Fund provisions of this Ordinance or in the payment of principal or interest of any of the Bonds, upon the filing of a suit by twenty (20) percent of the holders of the Bonds any court having jurisdiction of the action may appoint a receiver to administer said System on behalf of the City with the power to charge and collect rates sufficient to provide for the payment of the Bonds and for the payment of operation expenses and to apply income and revenues in accordance with this Ordinance and the laws of the State of Michigan.

The City hereby agrees to transfer to any bona fide receiver or other subsequent operator of the System, pursuant to any valid court order in a proceeding brought to enforce collection or payment of City obligations, all contracts and other rights of the City conditionally, for such time only as such receiver or operator shall operate by authority of the court.

The holders of twenty (20) percent of the Bonds in the event of default may require by mandatory injunction the raising of rates in a reasonable amount.

Sec. 22. NEGOTIATED SALE.

The Bonds are hereby awarded to the Farmers Home Administration in accordance with its letter of Condition dated March 6, 1980 and will be sold to the Farmers Home Administration at a negotiated sale pursuant to Section 12 (4) of Act 94, Public Acts of Michigan, 1933, as amended.

Sec. 23. ORDINANCE SUBJECT TO MICHIGAN LAW AND FARMERS HOME ADMINISTRATION REGULATION.

The provisions of this Ordinance are subject to the laws of the State of Michigan and the present and future regulations of the Farmers Home Administration not inconsistent with the express provisions hereof and Michigan Law.

Sec. 24. FISCAL YEAR OF SYSTEM.

The fiscal year for operating the System shall be from March 1st to the last day of February of each year.

Sec. 25. SUBJECT TO   F.H.A. LOAN AGREEMENT.

So long as the Government is holder of any of the Bonds, the City shall be subject to the loan agreement, form F.H.A. 442-47, with Farmers Home Administration.

Sec. 26. MINICIPAL FINANCE COOMMISSION APPROVAL.

The City Clerk is authorized and directed to make application to the Municipal Finance Commission of the State of Michigan for authority to issue and sell said Bonds in accordance with the provisions of Act 94, Public Acts of Michigan, 1933, as amended.

Sec. 27. PARAGRAPH HEADINGS.

The paragraph headings in this Ordinance are furnished for convenience of reference only and shall not be considered to be part of this Ordinance.

Sec. 28. PUBLICATION AND RECORDATION.

This Ordinance shall be published once in full in a newspaper of general circulation in the City of Stanton qualified under State law to publish legal notices, within seven (7) days after its adoption and the same shall be recorded in the Ordinance Bok of the City and such recording authenticated by the signatures of the Mayor and City Clerk.

Sec. 29. SEVERABILITY.

If any section, paragraph, sentence, clause or phrase of this Ordinance shall be held invalid, the same shall not affect any other part of this Ordinance.

Sec. 30. CONFLICT.

All ordinances and resolutions or parts thereof, insofar as the same may be in conflict herewith, are hereby repealed; provided, that the foregoing shall not operate to repeal any provision thereof, the repeal of which would impair the obligation on the Bonds.

Sec. 31. EFFECTIVE DATE.

This Ordinance is hereby determined by the City Council to be immediately necessary for the preservation of peace, health and safety of the City and shall be in full force and effect from and after its passage and publication as required by law.


ORDINANCE NO. 141 – WATER SUPPLY SYSTEM, as amended

CITY OF STANTON, MICHIGAN

AN ORDINANCE TO PROVIDE FOR THE CONNECTION NOW OR HEREAFTER OF PREMISES TO THE CITY OF STANTON WATER SUPPLY SYSTEM IN THE CITY OF STANTON, MONTCALM COUNTY, MICHIGAN; TO PROVIDE FOR THE IMPOSITION, COLLECTION AND ENFORCEMENT OF FEES AND CHARGES FOR CONNECTION THERETO AND FOR CHARGES FOR WATER SUPPLY SERVICES THEREFROM; AND TO PROVIDE FOR OTHER MATTERS RELATIVE TO SAID SYSTEM AND TO THE USE THEREFOR FOR THE PRESERVATION OF THE PUBLIC HEALTH, SAFETY AND CONVENIENCE.

THE CITY OF STANTON (MONTCALM COUNTY) ORDAINS:

Section 1.01. Whenever used in this ordinance, except when otherwise indicated by the context:

  1. The term “Charges for Water Services” shall be deemed to mean the amount charged to each Premises connected to the system for water services which may include factors for operation and maintenance and debt service.
  2. The term “City” shall be construed to mean the City of Stanton.
  3. The term “Connection Fee” shall be deemed to mean the amount charged at the time and in the amount hereinafter provided to a Premises for connecting or being connected to the System and represents the proportionate cost allocable to such Premises for the facilities by which water services are immediately provided to the Premises and in addition, the cost of inspecting and approving the physical connection to the System and the issuance of a connection permit.
  4. The term “Council” shall be construed to mean the Council of said City of Stanton, the legislative and governing body thereof.
  5. The term “Department” shall be deemed to mean the City’s Department of Public Works, or its successor.
  6. The term “Disconnection Fee” shall be deemed to mean the amount charged by the City to the owner of a Premises to offset the actual cost of disconnection said Premises from the System and the administrative procedures necessitated thereby.
  7. The term “Fire Protection Fee” shall be deemed to mean the amount charged to the City for general fire protection of the public.
  8. The term “Hydrant Rental Charge” shall be deemed to mean the amount charged to the City for general fire protection of the public.
  9. The term “Premises” shall be construed to include all wells, pumps, pump houses, water mains, storage facilities, treatment facilities, and all other facilities used or useful in connection with the obtaining the water supply, the treatment of water, and for the distribution of water for domestic, commercial or industrial uses and for fire protection purposes, including all appurtenances thereto now owned by the City or hereafter acquired and all extensions and improvements thereto hereafter made, located in the City. The term “System” when used alone shall be construed to refer to such water supply system.
  10. The term “Water Services” shall be deemed to refer to the provision of water by the Water Supply System to Premises, now or hereafter.
  11. The term “Water Supply System” shall be construed to include all wells, pumps, pumphouses, water mains, storage facilities, treatment facilities, and all other facilities used or useful in connection with the obtaining of a water supply, the treatment of water, and for the distribution of water for domestic, commercial or industrial uses and for fire protection purposes, including all appurtenances thereto now owned by the City or hereafter acquired and all extensions and improvements thereto hereafter made, located in the City. The term “System” when used alone shall be construed to refer to such water supply system.

Section 2.01. Owners of Premises within the area in the City served by the system, who make application and receive a permit for Water Services which Premises are hereafter connected directly or indirectly to the System, shall pay at the time of application, (i) a Connection Fee for connection to the System in the amount set forth on Exhibit A attached and (ii) the cost of restoring the street, curb and sidewalk, which cost shall be determined by the Department in accordance with Exhibit B attached.

Section 2.02. Owners of Premises within the area in the City served by the Water Supply System which have connected to and utilize said System as the source of water, as of the effective date hereof, shall pay no Connection Fee for connection to the System.

Section 2.03. Owners of Premises used for human occupancy, employment, recreation, business or other purposes, currently provided with water service shall be disconnected from the water supply system. The Owner of Premises not now connected to the water supply system and not used for human occupancy, employment, recreation, business or other purposes that begins to be used for such purposes abutting on any street, or right of way in which water service is now located, shall be required at the owners expense to connect such premises directly with the public water system in accordance with the provisions of the Ordinances of the City of Stanton.

  1. All connections to the system shall be performed in accordance with the guidelines and specifications determined by the Department, which is hereby delegated the authority to establish such guidelines and specifications that the Department, in its discretion deems to be necessary and in the best interests of the System for the efficient operation of the system. Said guidelines and specifications shall at all times be subject to all applicable state and federal regulations including those promulgated heretofore or hereafter by the Farmers Home Administration and the Michigan Department of Public Health.
  2. Where water service is not available, the owner of premises used for human occupancy, employment, recreation, business or other purposes is hereby required at his own expense to provide and maintain water to such premises in accordance with Michigan law, and the rules and regulations of the Michigan Department of Public Health and the Mid-Michigan Health Department.
  3. Private wells for agricultural irrigation, gardens and lawn watering purposes shall be exempt.

Section 2.04. The City shall be responsible for maintaining the System up to and including the curb stop. The Owner of each premises shall be responsible for maintaining the water line from the curb stop to the structure utilizing the water.

Section 2.05. Duly authorized employees of the City bearing proper credentials and indentification shall be permitted to enter upon all premises at reasonable times for the purpose of inspection, observation, measurement, sampling and testing in accordance with the provisions of this Ordinance. Any person who applies for and/or receives water from the system shall be deemed to have consented to inspections pursuant to this section, including entrance upon that person’s Premises at reasonable times to make inspections.

Section 3.01. Owners of Premises connected to the Water Supply System may hereafter disconnect said premises from the System in accordance with City Ordinance No. 135, as amended. For purposes of construing said Ordinance No. 135 as amended, a disconnection will be deemed to be a cross connection in violation of said Ordinance and the Water Supply Cross Connection Rules of the Michigan Department of Public Health (being R325.431 to R325.440 of Michigan Administrative Code) adopted by reference by Section 1 of said Ordinance unless the lateral supplying water to the premises is disconnected at the public water main. The work of performing a disconnection hereunder shall be undertaken by the Department. A Disconnection Fee equal to 115% of the actual construction costs of making the disconnection, retrieving the water meter and restoring the street, sidewalk and curb, which construction costs shall be determined by the Department in accordance with Exhibit B attached, shall be billed to the owner of the premises and collected as provided herein.

Section 4.01. Charges for Water Services to each Premises within the City connected with the Water Supply System shall be increased from their current level affective with the April 1, 1981 quarterly billing to a minimum of $27.00 per quarter which shall entitle each premises to a minimum usage of 21,000 gallons of water per quarter. All water used over the minimum usage shall be billed at the rate of $1.70 per thousand gallons. These minimum rates are necessary to enable the City to pay debt service on outstanding bonds, the cost of operation and maintenance and the cost of creating necessary reserves. These rates may be amended from time to time by the Council subject to any obligation and limitation set forth in any bond ordinance or other agreement pertaining to the Water Supply System between the City and the Farmers Home Administration.

Section 4.02. The volume of water supplied to each Premises by the Water Supply System shall be measured by a water meter owned, installed and maintained by the City. No person except an authorized City employee shall break or injure the seal or change the location of, or alter or interfere in any way with, any water meter or any other structure, property, appurtenance, equipment or any other item which is part of the System.

Section 4.03. The minimum quarterly charge shall be due and payable for each premises with regard to the use of any such premises on a part-time or seasonal basis.

Section 4.04. No free service shall be furnished by the Water Supply System to the City or to any person, firm or corporation, public or private, or to any public agency or instrumentality, except water used for fire protection.

Section 5.01. A Fire Protection Fee in the amount of $9.00 per quarter shall be paid by the owner of each premises in the City improved by houses, buildings or other structures which are located within six hundred (600) feet of a fire hydrant, whether or not said premises are connected to the Water Supply System. The Fire Protection Fee shall be effective beginning with the April 1, 1981 quarterly billing.

Section 5.02. In addition to any other amounts payable hereunder, the City of Stanton, from its general fund, for general fire protection for the residents of the City at large, shall pay in equal quarterly installments a hydrant rental charge of $100.00 per year for each fire hydrant connected to the Water Supply System. The First such installment shall be due and payable with the April 1, 1981 billing, and quarterly thereafter.

Section 5.03. No person, except an authorized employee of the City in the performance of his duties, shall open or use any fire hydrant except in case of emergency, without first securing permission from the Department and paying such charges as may be prescribed in the rules and regulations of the Department.

Section 6.01. Bills for the rates and charges as herein established shall be sent quarterly on or before the 1st day of January, April, July and October in each year. Payment of the bills rendered by the City is due and payable on or before the 20th day of the month in which rendered. Payment of said bills shall be made at the office of the City Clerk.

Section 6.02. If any charges for rates and services are not paid on or before the due date then a fee of 10% shall be added thereto as a late charge. In the event that the charge for any such services furnished to any premises shall not be paid within 10 days of due date, then all services furnished by the Water Supply System may be discontinued. Service so discontinued shall not be restored until all sums then due and owning, including charge of $10.00 and a turn on charge of $10.00. (This charge is the same charge provided for in Section 14 of Ordinance No. 87 and not an additional charge).

Section 6.03. If an bill for rates, charges or fees hereunder is not paid on or before the due date, the same shall draw interest in addition to the late charge unpaid in Section 6.02, above, at a rate of 1% per month until paid.

Section 6.04. At the discretion of the City, an estimated bill based upon the prior quarter’s billing may be prepared in lieu of a bill based on actual meter readings. Except in the case of an inoperative or malfunctioning water meter, estimated bills may not be sent for more than two consecutive quarters.

Section 7.01 All rates, charges and fees imposed hereunder and pertaining to any Premises shall be a lien thereon in accordance with act 94, Public Acts of Michigan of 1933, as amended.

Section 8.01. The system shall be operated upon the basis of the City fiscal year, which runs from July 1 to the last day of June.

Section 9.01. The operation, maintenance and management of the Water Supply System shall be under the immediate supervision and control of the Department, and the billing and collection of fees and charges shall be under the immediate supervision and control of the City Clerk.

Section 10.01. This Ordinance shall be known and may be cited as the “City of Stanton Water Supply System Rate Ordinance.”

Section 11.01. The provisions of this Ordinance shall be enforceable through the bringing of appropriate action for injunction, mandamus, or otherwise, in any Court having jurisdiction. Any violation of this Ordinance is deemed to be a nuisance per se.

Section 12.01. An person, firm or corporation convicted of violating in any way the provisions of this Ordinance, shall be guilty of a misdemeanor, and subjected to a fine of not to exceed $100.00 or imprisonment in the County jail for a period not exceeding 90 days or both such fine and imprisonment, in the discretion of the Court, together with costs of said prosecution.

Section 13.01. If any section, paragraph, sentence, clause, or phrase of this Ordinance shall be held invalid, the same shall not affect any other part of this Ordinance.

Section 14.01. All Ordinances and resolutions or parts thereof, insofar as the same may be in conflict herewith, are hereby repealed, except that no part of Ordinance No. 140 with regard to the pledge of revenues, funds and monies available to pay the principal of, and interest on bonds outstanding and the right of bondholders and no rates or charges prior to April 1, 1981, as amended, changed or repealed hereby.

Section 15.01. Subject to the terms hereof, the City specifically reserves the right to amend this Ordinance in whole or in part, at one or more times hereafter, or notwithstanding any of the provisions hereof, to repeal the same, and by such amendment or repeal to abandon, increase, decrease or otherwise modify any of the fees, charges or rates herein provided.

Section 16.01. This Ordinance is hereby determined by the City Council to be immediately necessary for the preservation of the peace, health, and safety of the City shall be in full force and effect twenty (20) days after passage hereof.

EXHIBIT A

CONNECTION FEE SCHEDULE

(Amended 1994)
¾” Water Service $235.00 $300.00
*” Water Service $255.00 $350.00
1 ¼” Water Service $305.00 $450.00
1 ½” Water Service $400.00 $600.00

The fee quoted includes running the water service from the water main to the curb stop and the installation of the copper horn and meter.

 

EXHIBIT B

STREET AND SIDEWALK RESTORATION COST SCHEDULE

(Amended 1994)
½ Blacktop Street with curb $100.00 $200.00
Full Blacktop Street with curb $155.00 $300.00
½ Blacktop Street without curb $80.00 $150.00
Full Blacktop Street without curb $130.00 $200.00
½ Gravel Street $55.00 $75.00
Full Gravel Street $85.00 $150.00
Sidewalk $20.00 per lineal foot

ORDINANCE NO. 197 – AMENDMENT TO ORDINANCE NO. 141 (WATER SUPPLY SYSTEM)

CITY OF STANTON

AN ORDINANCE TO AMEND ORDINANCE NO. 141 WATER SUPPLY SYSTEM, CITY OF STANTON AND TO REPLACE ORDINANCE NO. 156.

Section 1. City of Stanton ordains that Section 4.01 is repealed.

Section 2. A new Section 4.01 of Ordinance 141 is hereby added.

Section 4.01. Charges for Water Services to each Premises within the City connected with the Water Supply System shall be increased from their current level effective with the October 1, 1994 quarterly billing to a minimum of $27.00 per quarter which shall entitle each premises to a minimum usage of 15,000 gallons of water per quarter. All water used over the minimum usage shall be billed at the rate of $1.85 per 1,000 gallons. These minimum rates are necessary to enable the City to pay debt services on outstanding bonds and the cost of operation and maintenance and the cost of creating necessary reserves. These rates may be amended from time to time by the Council subject to any obligation and limitation set to the Water Supply System between the City and the bond holders.

Section 3. City of Stanton Ordains that Section 5.01 is repealed.

Section 4. A new section 5.01 is added.

Section 5.01. A fire Protection Fee in the amount of $15.00 per quarter shall be paid by the owner of each premises in the City improved by houses, buildings or other structures which are located within six hundred (600) feet of a fire hydrant, whether or not said Premises are connected to the Water Supply System. The Fire Protection Fee shall be effective beginning with the October 1, 1994 billing.

Section 5. City of Stanton Ordains that Section 6.02 of Ordinance No. 141 is hereby repealed.

Section 6. A new section 6.02 of Ordinance 141 is hereby added as follows:

Section 6.02. If any charges for rates and service are not paid on or before the due date then a 10% shall be added thereto as a late charge. In the event that the charge for any such services furnished to any premises shall not be paid within 10 days of the due date, then all services furnished by the Water Supply System may be discontinued. Service so discontinued shall not be restored until all sums then due and owing, including penalties and interest shall be paid, plus shut off charge of $20.00 and a turn on of $20.00. (This charge is the same charge provided for in Section 14 of Ordinance No. 87 and not an additional charge.)

Section 7. In all other respects, Ordinance No. 141 shall remain unchanged.

Adopted August 4, 1994


ORDINANCE NO. 215 – AMENDMENT TO ORDINANCE NO. 197 (WATER SUPPLY SYSTEM AMENDMENT)

City of Stanton

An Ordinance to Amend Ordinance No. 197 Water Supply Systems, City of Stanton

Section 1. City of Stanton Ordains that Section 6.02 is repealed.

Section 2. A new Section 6.02 of Ordinance 197 is hereby added as follows.

Section 6.02. if any charges for rates and service are not paid on or before the due date then a 10% fee shall be added thereto as a late charge. In the event that the charge for any such services furnished to any premises shall not be paid within 10 days of the due date, then all services furnished by the Water Supply System may be discontinued. Service so discontinued shall not be restored until all sums then due and owing, including penalties and interest shall be paid. A penalty of $15.00 will be added to the charges if not paid by 9:00 am on the day the service is to be discontinued.

Section 3. All request for water shut offs for emergency or non-emergencies will be shut off and turned on at no charge for the first time. If the city has to return for the same incident there will be a $15 on/off charge.

Section 4. In all other respects, Ordinance 197 shall remain unchanged.

Adopted: March 10, 2008


ORDINANCE NO. 219 – AMENDMENT TO ORDINANCE NO. 141 (WATER SUPPLY SYSTEM) & NO. 173 (SEWER)

CITY COUNCIL
CITY OF STANTON

AN ORDINANCE TO AMEND SECTIONS 1.01, 4.01, 4.03 AND 6.04 OF ORDINANCE NO. 141, TO ADD A DEFINITION FOR “READINESS TO SERVE FEE,” TO IDENTIFY CHARGES AND FEES FOR THE USE OF THE CITY’S WATER SUPPLY SYSTEM AND TO REMOVE REFERENCES TO QUARTERLY BILLINGS; TO REPEAL SECTION 6.01 OF ORDINANCE NO. 141 TO DELETE REFERENCES TO QUARTERLY BILLINGS; TO AMEND SECTION 802 OF ORDINANCE NO. 173 TO IDENTIFY SEWER USER FEES FOR THE CITY’S ORDINANCE NO. 173 TO IDENTIFY SEWER USER FEES FOR THE CITY’S SEWER SYSTEM; AND, TO REPEAL SECTION 808 OF ORDINANCE NO. 173 DELETING REFERENCES TO QUARTERLY BILLINGS.

THE CITY OF STANTON ORDAINS:

  1. Amendment of Section 1.01 of Ordinance No. 141. That Section of 1.01 of Ordinance No. 141 is amended to read in its entirety as follows:

Section 1.01: Whenever used in this ordinance, except when otherwise indicated by the context:

  1. The term “Charges for Water Services” shall be deemed to mean the amount charged to each Premises connected to the system for water services which may include factors for operation and maintenance and debt service.
  2. The term “City” shall be construed to mean the City of Stanton.
  3. The term “Connection Fee” shall be deemed to mean the amount charged at the time and in the amount hereinafter provided to a Premises connecting or being connected to the System and represents the proportionate cost allocable to such Premises for the facilities by which water services are immediately provided to the Premises and in addition, the cost of inspecting and approving the physical connection to the System and the issuance of a connection permit.
  4. The term “Council” shall be construed to mean the Council of said City of Stanton, the legislative and governing body thereof.
  5. The term “Department” shall be deemed to mean the City’s Department of Public Works or its successor.
  6. The term “Disconnection Fee” shall be deemed to mean the amount charged by the City to the owner of a Premises to offset the actual cost of disconnection said Premises from the System and the administrative procedures necessitated thereby.
  7. The term “Fire Protection Fee” shall be deemed to mean the amount charged to each Premises for fire protection afforded to said Premises by the System.
  8. The term “Hydrant Rental Charge” shall be deemed to mean the amount charged to the City for general fire protection of the public.
  9. The term “Premises” shall be deemed to mean the lands included within the boundaries of a single description as set forth, from time to time, on the general tax rolls of the City as a single taxable item in the name of the taxpayer or taxpayers at one address but in the case of platted lots shall be limited to a single platted lot unless an existing building or structure is so located on more than one lot as to make the same a single description for purposes of assessment or conveyance now or hereafter.
  10. The term “Readiness to Serve Fee” shall be deemed to mean the amount charged for the availability of the Water Supply System to each Premises.
  11. The term “Water Services” shall be deemed to refer to the provision of water by the Water Supply System to Premises, now or hereafter.
  12. The term “Water Supply System” shall be construed to include all wells, pumps, pumphouses, water mains, storage facilities, treatment facilities, and all other facilities used or useful in connection with the obtaining of a water supply, the treatment of water, and for the distribution of water for domestic, commercial or industrial uses and for fire protection purposes, including all appurtenances thereto now owned by the City or hereafter acquired and all extensions and improvements thereto hereafter made, located in the City. The term “System” when used alone shall be construed to refer to such water supply system.
  1. Amendment of Section 4.01 of Ordinance 141. That Section 4.01 of Ordinance No. 141 is amended to read in its entirety as follows:

Section 4.01: The following monthly charges and fees shall apply to the provision of water service:

  1. A Readiness to Serve Fee for all Premises for which water service is available at the following rates:
    Metered systems: $16.24 per month or any portion thereof. Additional units for   residential owner occupied $7.74, and a non-owner occupied $11.18.
  2. Charges for water services shall include a commodity charge per $3.15 per thousand gallons per month.
  3. On July 1st of each year after the effective date of this Ordinance, the readiness to serve fee and commodity charge shall be increase by the amount of two percent or the consumer general price level, whichever is greater. The adjustments to the readiness to serve fee and commodity charge shall thereafter constitute the readiness to serve fee and commodity charge for purposes of administering Ordinance No. 141, as amended. For purposes of Ordinance No. 141, amended, consumer general price level shall mean the annual averages of the 12 monthly values of the preceding calendar year for the United States consumer price index for all urban consumers as developed and officially reported by the United State Department of Labor, Bureau of Labor Statistics.
  1. Amendment of Section 4.03 of Ordinance 141. That Section 4.03 of Ordinance No. 141 is amended to read in its entirety as follows:

Section 4.03: The minimum charge shall be due and payable for each Premises without      regard to the use of any such Premises on a part-time or seasonal basis.

  1. Repeal of Section 6.01 of Ordinance 141. That Section 6.01 of Ordinance No. 141 is deleted in its entirety.
  1. Amendment of Section 6.04 of Ordinance 141. That Section 6.04 of Ordinance No. 141 is amended to read in its entirety as follows:

Section 6.04: At the discretion of the City, an estimated bill based upon the prior billing    period may be prepared in lieu of a bill based upon actual meter readings. Except in the case of an inoperative or malfunctioning water meter, however, estimated bills may not     be utilized for more than two consecutive billing periods.

  1. Amendment of Section 802 of Ordinance 173. That Section 802 of Ordinance No. 173 is amended to read in its entirety as follows:

Section 802. Sewer Use Fee.

Users shall be charged monthly fee for use if the public sewer as follows:

  1. Users Connected to the City’s Public Water System. The fee shall be computed as follows:
    1. A Readiness to Serve Fee and Sewer User Fee for all Premises for which sewer service is available at the following rates:
      1. Metered systems: $17.64 per unit per month or any portion thereof. Additional units for residential owner occupied $9.74, and non-owner occupied $12.18
      2. Non-metered systems: $24.05 per unit per month or any portion thereof.
    2. Commodity charge shall be $2.89 per thousand gallons of metered public water usage per billing period.
    3. The volume of public water used for lawn sprinkling, irrigation and similar outdoor uses, as recorded by a separate meter installed by the Owner of the Premises at the Owner’s cost on the external faucet of a building (provided that the meter type and installation shall be subject to approval an inspection by the City), shall be subtracted from the total metered public water usage in calculating the Sewer User Fee.
  2. On July 1st of each year after the effective date of this Ordinance, the readiness to serve fee, sewer use fee, and commodity charge shall be increased by the amount of two percent or the consumer general price level, whichever is greater. The adjustments to these fees shall thereafter constitute the readiness to serve fee, sewer use fee, and commodity charge for purposes of administering Ordinance No. 173, as amended. For purposes of Ordinance No. 173, amended, consumer general price level shall mean the annual averages of the 12 monthly values of the preceding calendar year for the United States consumer price index for all urban consumers as developed and officially reported by the United States Department of Labor, Bureau of Labor Statistics.
  1. Repeal of Section 808 of Ordinance 173. That Section 808 of Ordinance No. 173 is deleted in its entirety.
  1. Effective Date: This Ordinance shall become effective upon it publication but not less than ten days after its adoption as provided by law.

Adopted: June 28, 2011
Effective: July 1, 2011


ORDINANCE NO. 230 – AMENDMENT TO ORDINANCE 141, AS AMENDED (WATER SUPPLY SYSTEM)

CITY OF STANTON, MI

The City of Stanton Ordains:

Sec. 1. Addition of Section 4.05 to Ordinance 141, as amended

A section numbered and ordered as 4.05 in Ordinance 141, as amended of the City of Stanton shall be added and read as follows:

A temporary permit for access to the City Water Supply System may be allowed only by approval of the City Commission of the City of Stanton by a majority vote at a regular meeting. The permit application will require the contact information for the entity seeking access to the system, the purpose and means of connection, the estimated water use, and the specific time frame within which the water system will be utilized. Such temporary access will not exceed 365 consecutive days.

Sec. 2. Addition of Section 4.06 to Ordinance 141, as amended

A section numbered and ordered as 4.06 in Ordinance 141, as amended of the City of Stanton shall be added and read as follows:

Any entity applying for temporary access to the City Water Supply System shall be assessed a fee of $100.00 at the time of application. The City Commission of the City of Stanton may choose to waive this fee at their discretion by a majority vote at a regular meeting.

Sec. 4. Guarantee of continuance: Ordinance 141, as amended

In all respect excluding the above stated amendments, Ordinance 141, as amended of the City of Stanton shall remain in effect and unchanged.

Adopted: 6/23/2015