May 10, 2006, Introduced by Senator SWITALSKI and referred to the Committee on Local, Urban and State Affairs.
A bill to provide for an authority to manage and operate
certain city and village water and sewer systems; and to provide
for the appointment of members to the authority.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Authority" means an authority created under this act.
(b) "City" means a city chartered under the home rule city
act, 1909 PA 279, MCL 117.1 to 117.38.
(c) "Qualified city" means a city with a population of 750,000
or more that is a member of an authority created under this act.
(d) "Qualified county" means a county with a population of
750,000 or more that is a member of an authority created under this
act.
(e) "Village" means a village incorporated under the home rule
village act, 1909 PA 278, MCL 78.1 to 78.28.
(f) "Water or sewer system" or "system" means a water supply
facility or sewerage services facility, or both, that provides
water or sewerage service to more than 20% of the population of
this state.
Sec. 2. (1) A city or village that owns a water or sewer
system shall establish an authority to provide review and oversight
of the management and operation of the system as provided under
this act.
(2) Not more than 30 days after the effective date of this
act, each qualified county and city or village that is a member of
an authority shall make appointments to the authority as provided
under this section.
(3) The authority created under this act shall consist of the
following members:
(a) Four persons shall be appointed to represent the city or
village that owns and operates the water or sewer system. The
appointment under this subsection shall be made by the mayor of the
city, with the advice and consent of the city's governing body.
(b) One person shall be appointed to represent each qualified
county that does not have a qualified city located within the
county. The appointment under this subsection shall be made by the
elected county executive. If the county does not have an elected
county executive, the appointment under this subsection shall be
made by the county board of commissioners.
(c) If a qualified county has a qualified city within the
county, 1 person who does not live or work within the qualified
city shall be appointed to represent the county. The appointment
under this subsection shall be made by the majority vote of the
serving members on the county board of commissioners who do not
live or work within the qualified city.
(4) A person appointed under this section shall serve for a
term of 4 years, or until a successor is appointed, whichever is
later. A successor to a member shall be appointed in the same
manner and shall serve for a term of 4 years, or until a successor
is appointed, whichever is later. A person may be reappointed to
the authority. A person appointed to the authority may be replaced
by the appointing member at any time.
Sec. 3. (1) A majority of members of the authority constitute
a quorum for the transaction of business.
(2) The person appointed to the authority shall have 1 vote.
(3) The first meeting of the authority shall be held not more
than 45 days after the effective date of this act.
(4) The authority shall elect a chairperson and other officers
as the authority considers necessary. The authority shall adopt
bylaws and rules to govern the operation of the authority.
(5) After its first meeting, the authority shall meet not less
than quarterly and at such other times as determined by the
authority.
Sec. 4. (1) Persons appointed to the authority are public
servants under 1968 PA 317, MCL 15.321 to 15.330, and are subject
to any other applicable law with respect to conflicts of interest.
(2) An authority shall establish policies and procedures
requiring periodic disclosure by persons appointed to the authority
of relationships which may give rise to conflicts of interest.
Sec. 5. (1) An authority shall establish an ethics manual
governing the conducting of system business and the conduct of
employees of the system.
(2) An authority shall establish policies under this section
that are no less stringent than those provided for public officers
and employees by 1973 PA 196, MCL 15.341 to 15.348. The policies
established under this section shall include compliance by each
member of the authority and employees of the system who regularly
exercise significant discretion over the award and management of
authority procurements with policies governing all of the
following:
(a) Immediate disclosure of the existence and nature of any
financial interest that would reasonably be expected to create a
conflict of interest.
(b) Withdrawal by a member or employee from participation in,
discussion of, or evaluation of any recommendation or decision
involving procurement involving the water or sewer system that
would reasonably be expected to create a conflict of interest for
that member or employee.