86. Section 11. The department of municipal service is charged and entrusted with the construction, management, supervision and control of the water works which are or shall be owned by the city, and the construction, management, supervision and control of the electric or other lighting plants which are or shall be owned by the city. The department of municipal service shall be in charge of a board of five (5) commissioners to be known as the municipal service commission. The members of the commission shall be freeholders and electors of the city and shall serve without compensation. The members of the first commission existing hereunder shall be appointed on the third Monday of April, 1926, and shall be appointed for the term of one year, two (2) years, three (3) years, four (4) years and five (5) years, respectively. On the third Monday of April, 1927, and on the third Monday of April hi each year thereafter, one member of the commission shall be appointed for the term of five (5) years.

Officers and employees.

87. Section 12. The municipal service commission shall elect from its number a president and vice-president thereof. The commission shall appoint a secretary and a

*State constitution reference—Mandates relative to public utilities, Mich. Const. 1963, Art. VII, §§ 24, 25.
State law reference—Authority of city to operate utilities, MCL §§ 117.4c, 117.4f, MSA §§ 5.2076, 5.2079.

Group life insurance for employees.

87-a. Section 12-a. The municipal service commission may provide group life insurance for its appointees and employees.

Editor's note—The above section was added by an amendment approved by the electorate on April 5, 1943 by a vote of 3150 to 2014.

 

Retirement system for employees.

87-b. Section 12-b. The municipal service commission may adopt and put into effect a retirement system for the purpose of providing retirement allowances for the appointees and employees of the commission. Any retirement system adopted by the commission shall be on an actual basis.

Meetings.

88. Section 13. The municipal service commission shall hold meetings regularly at least once every two (2) weeks and shall designate the time and place thereof, shall adopt its own rules of procedure and shall keep a record of its proceedings, a certified copy of which shall be filed with the city clerk within five (5) days after approval by the commission. Proper accounts of the receipts and expenditures of money shall be kept. All meetings, records and accounts of the commission shall be public. Three (3) members shall constitute a quorum for the transaction of business. No action may be  taken by the commission without the affirmative vote of three (3) members thereof. Editor's note—The above section appears as amended by the electorate on April 3, 1950 by a vote of 4373 to 3330.

Construction of public works.

89. Section 14. Whenever the expense of constructing or repairing any public work placed under the control of the municipal service commission shall not exceed the sum of five thousand dollars ($5,000.00), the work shall be done by the commission in such manner as it may deem proper. Whenever the expense shall exceed the sum of five thousand dollars ($5,000.00), the commission shall submit the plans, diagrams, profiles and estimates thereof to the council for its approval and when so approved, the commission shall, subject to the approval of the council, cause such work to be done by contract or otherwise in such manner as it may deem proper, provided that if the expense shall exceed the sum of five thousand dollars ($5,000.00), the commission shall advertise for sealed proposals and shall give such notice as the council shall direct and shall let the contract to the lowest responsible bidder who shall be deemed competent to do the work and give adequate security for the performance thereof. (Res. of 1-7-91, § 1)

90. Section 15. The municipal service commission, through the purchasing department of the city, shall purchase all engines, machinery tools and other appliances and all materials and supplies necessary for the purpose of the department, provided that no purchase exceeding five thousand dollars ($5,000.00) in amount shall be made without the consent of the council. (Res. of 1-7-91, § 1)

91. Section 16. The municipal service commission shall, from time to time, fix and  cause to be assessed the water rates to be paid by the owner or occupant of each house or building having the use of water, against any person or persons using water, upon such basis as shall be equitable and such water rates shall become and be until paid, a lien upon such house or other building and upon the lot or lots upon which such house or building shall be situated. The commission shall also from time to time fix the rates to be paid for electric current furnished and sold by the city. The commission may make, subject to the approval of the council, and enforce all necessary rules and regulations for the collection of water rates, electric light and electric power rates. All such rates shall be promptly collected by and paid to the commission and all moneys so received shall be turned over when and as collected', to the city treasurer on daily balances and the city treasurer shall give duplicate receipts therefor; one of which shall be filed with the city clerk. All necessary adjustments in the collection of such rates shall be made by the commission. Whenever any person or persons using water, or electricity for lighting or power, shall fail to pay the rates fixed by the commission, the water or electric current as the case may be, may be shut off and suit may be instituted by the city for the collection of the same in any court of competent jurisdiction, or in the case of water rates, the same may be reported to the city assessor to be spread by him on the next general city tax rolls, as a special tax or assessment upon the lot or premises on which said unpaid water rates have become a lien. In case such unpaid water rates are so spread by the city assessor, they shall be collected in the same manner as other city taxes. No attempt to collect any water rates by any process herein provided shall invalidate the lien upon the lot or premises.

92. Section 17. All moneys paid in the city treasury by the municipal service commission shall apply exclusively on the payment of expenses incurred by it, including the interest or principal on all bonds issued on account of the water system and electric or other lighting plants of the city. The water, electric light or power rates determined by the commission shall be sufficient to pay operating and maintenance expenses of the water works and electric or other lighting plants of the city; fixed charges and a sufficient per centum per annum to provide a sinking fund to pay the principal at their maturity of any bonds issued for the purpose of providing funds for such water works and electric or other lighting plants. On or before the second Monday of May of each year the commission shall transmit to the council its estimate in duplicate of the amount of money required for its purposes for the next fiscal year, which amounts shall include the amounts to be charged the city at large for hydrant service, water furnished public institutions and public swimming pools, street lighting and all services for which the city should have to pay if it were purchasing water or current from a privately owned public service corporation.

Accounts and reports.

93. Section 18. The municipal service commission shall cause to be kept an accurate list of all assessments for water rates and an accurate account of all moneys due for electricity sold by the city, which shall be subject to inspection at all times. The commission shall make quarterly reports to the council, which reports shall embrace an itemized statement of the revenues and expenditures relating to or connected with each of the works under its control, keeping a separate account of each fund and a statement of the condition, progress and operation of said works. This statement shall be certified by the commission, entered of record by the city clerk and published in such manner as the council may direct. The commission shall also make such other reports as the council may from time to time require. The council shall cause all the accounts and records of the commission to be audited at least once a year and at such other times as it shall see fit.

Payment of claims and accounts.

94. Section 19. The municipal service commission may issue vouchers in payment of all claims and accounts incurred by it in the operation and management of the department, which vouchers, when approved by the mayor and city clerk shall be authority to the city treasurer to pay such claims and accounts and to charge the proper funds therewith.

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