(A) Purpose for charges.
(1) Generally. Charges for the installation and use of the water system are hereby established to recover the costs of administration, construction, reconstruction, maintenance and to establish a cash balance of the system as are necessary to preserve the same in good working order, operation and replacement of the system and to provide for the payment of any debt service obligations of the township as the same becomes due. The charges shall be made in accordance with the provisions hereinafter set forth and shall be made against all premises which use the system.
(2) Establishment of rates, charges and fees. The rates for water service charges, connection fees and other charges are to be established by resolution of the Township Board, and may be established separately from time to time as necessary to ensure sufficiency of revenues in meeting the expenses of the water system. Rates and charges need not be uniform for any separate water supply districts.
(B) Types of water supply charges.
(1) Commodity charge. The meter shall measure all the water use of residential, commercial, industrial and other consumers connected to the system and the consumers shall be charged a commodity charge for water usage.
(2) Capital Fee (formally known as connection fee or facility unit charge). A Capital Fee shall be charged for every new connection to the public water and shall vary based on the number of REUs s determined by the Manager. The Kochville Table of Unit Factors shall be the basis for this determination. The Capital Fee shall be established based on the following factors:
(a) Saginaw City Water System (SCWS) charges. Any charges set forth by SCWS for new connections to the public water.
(b) Capital Fee. An equitable buy-in to the water system. There will be three separate groups in relation to the Capital Fee.
1. Group 1. Group 1 includes parcels or premises that are part of a Township Public Water Special Assessment (SAD). Group 1 shall have the Capital Fee reduced in the amount of any assessment against the premises for public water improvements which has been paid for or is an outstanding lien in an amount not to exceed the township Capital Fee.
2. Group 2. Group 2 includes all parcels or premises that have installed or extended public water at the sole expense of the developer. Group 2 shall have the Capital Fee reduced by an amount as set forth in the Township Rate Resolution.
3. Group 3. Group 3 includes all others and shall pay the Capital Fee as set forth in the Township Rate Resolution.
(3) Construction charges. The property owner shall be responsible for the actual cost of materials and construction of the water service pipes from the curb box for up to one-inch lines and for lines larger than one inch from the main to the premises to be served. The township shall maintain ownership and maintenance responsibility from the water main up to and including the curb stop.
(4) Special service charges. The township may charge its customers and the customers shall pay for the special services for which a rate shall be established.
(5) The cost of turn on/off charges. The township may establish a charge to the consumer, and the consumer shall pay the charge whenever the township is requested to turn water services on or off; provided, however, that, whenever the township is requested to provide turn on or off service it shall receive one business day notice of the request. For turn-on service at times other than the regular business hours of the township, the charge will be made on time and material basis. The established fee to turn water on shall be charged to a consumer whose service has been disconnected because of non-payment of charge or fee due the township.
(Ord. 17-02, passed 3-20-2017)