§ 34-273. Legislative findings.

The following legislative findings are made:

(1)

Potable water. The township board finds that the businesses, industries, farms, schools, governmental agencies, charitable organizations, residents, and other water users located in the township need to have potable water for consumption and other uses.

(2)

Availability of potable water. The township board finds that the supply of potable water available from private wells within the township is insufficient, in most instances, due to poor water quality and/or lack of sufficient volume, to assure that businesses, industries, farms, schools, governmental agencies, charitable organizations, residents, and other water users will have sufficient potable water available for consumption and also sufficient water for business and industrial purposes, fire prevention and control, and other uses.

(3)

Method of measuring use. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the most precise method of measuring the water provided by the system to a user is by a meter or meters controlled by the township.

(4)

Continuity of service. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that in order to provide and continue to provide water to all users of the system, in quantities necessary for all types of use, it is necessary from time to time to complete repairs, maintenance, reconstruction, and replacement of the system.

(5)

Purpose of charges. The charges, rates, and fees for connection to the system and the use of water from the system are established pursuant to this chapter for the purpose of recovering the cost of the construction, reconstruction, replacement, maintenance, repair, and operation of the system and the cost of compliance with all applicable federal and state laws and related rules and regulations, and to provide for the payment of principal and interest on any bonds sold or other indebtedness incurred to finance the construction, reconstruction or other costs of the system. These charges, rates, and fees shall be assessed and be payable in accordance with the provisions of this chapter and shall apply to all users of the system. The charges, rates, and fees authorized by this chapter shall be established so as to recover costs from the system users in reasonable proportion to the cost of serving those users.

The township administration staff, in consultation with the township rate consultant and township engineers, as necessary, shall periodically review the charges, rates, and fees of the system. The results of this review shall be periodically reported to the township board with recommendations for adjustments, if any.

(6)

Proportionality, fairness, and benefits of rates and fees. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the fairest and most reasonable method of providing for system costs is to charge each user, based on the cost of servicing the customer, for: (i) the cost of purchasing water; (ii) ongoing repair, replacement, and reconstruction of the system; and (iii) the operation, administration, and maintenance costs of the system.

(7)

Water service charges. The township administration staff, in consultation with the township rate consultant and the township engineers, have reviewed various methods of apportioning the costs for the water service provided by the system. Based on this investigation, and on the advice of the township rate consultant and the township engineers, the township board finds that to ensure the stability and viability of the system for the benefit of its users, the fairest and most accurate way to apportion system costs is to charge each user: (i) connection charges when a user's property is first connected to the system; (ii) a monthly readiness-to-serve charge for each property connected to the system; and (iii) a commodity rate for each 1,000 gallons of water used, as measured by a water meter. The township board finds that the charges, rates, and fees authorized in this chapter fairly and accurately apportion the system fixed and variable costs among the users of the system and that the connection charges, the monthly readiness-to-serve charge, and the commodity rate provide actual benefits to system users in the form of ready access to water service that would not be available if those charges were not imposed.

(8)

Cash reserve. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that it is necessary to maintain a cash reserve for the timely replacement of system assets and to maintain the financial stability of the system.

(9)

Frontage charge. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the frontage charge component of the connection charge is intended to require the premises owner to pay the actual cost of the acquisition, construction and completion of the system water main which adjoins the connecting premises and a portion of the cost of system water main that must be constructed past frontage that is non-assessable (intersections, exempted corner lot frontage, non-buildable land, etc.) in order to provide water service to the connecting premises. It is impossible to build a water main in segments so that water main is constructed in front of a particular premises only at such time as that premises owner desires to connect to the system. Instead, system extensions of water main will sometimes be made past premises that have no present need for water from the system in order to extend the system to serve the water service needs of properties further downstream. When these premises that do not need water service from the system at the time the system water main extension is constructed, decide later to connect to the system, it is necessary to establish a frontage charge that fairly reflects the original cost of the water main extension plus the cost of capital, the time value of money, from the construction date to the connection date. To provide for this, based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board has determined that it will establish periodically, on a township-wide basis, the current cost to construct water system extensions (without oversizing but including non-assessable frontage) and charge those premises that connect to a system water main extension the current water main per front foot extension cost.

(10)

Trunkage charges. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the trunkage charge component of the connection charge required to be paid prior to connection to the system should reflect the investment of the existing water customers in the system, and that connection to the system provides an actual benefit to each new user equal to or greater than the amount of this charge. Further, based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the trunkage charge to be paid by each premises connecting to the system should be based on the size of the water meter which is installed. The township board further finds, based on the advice of the township administrative staff, the township rate consultant, and the township engineers, that the meter size, fairly and reasonably computes, to the extent reasonably possible, the water usage from the system by various types of water customers.

(11)

Water tap and other charges. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the water tap fee, meter fee, and the other miscellaneous water service charges and fees represent the approximate actual cost of the water tap, meter, and each such service.

(12)

Fire protection charge. Based on the advice of the township administrative staff, the township rate consultant, and the township engineers, the township board finds that the fire protection charge represents a fair, reasonable, and proportionate charge to the users who are charged the fee and that the benefit received by such users is equal to or greater than the amount of such fee.

(Ord. No. 498, § 1, 9-7-2006; Ord. No. 585, § 1, 6-21-2018)