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* Berkley * Beverly Hills * Bingham Farms * Birmingham * Clawson * Huntington Woods * Lathrup Village * Pleasant Ridge * Royal Oak * Southfield * Southfield Township SOCWA 3910 W. Webster Road Royal Oak Michigan 48073 Phone 248.288.5150 Fax 248.435.0310 Email [email protected] www.socwa.org Printed on Post Consumer Recycled Content Paper AGENDA Regular Meeting – Wednesday, January 8, 2014 – 8:30 a.m. Oak Park City Hall, 14000 Oak Park Blvd. 1. Meeting Called to Order 2. Roll Call & Recognition of visitors 3. Approval of Agenda 4. Approval of Minutes – Regular Meeting – December 11, 2013 5. Approval of Warrants – WA-741 6. ADMINISTRATIVE REPORTS A. DWSD Rate Process for 2014/15 B. DWSD Issues C. DWSD Contract Negotiations D. Revisions to Miss Dig Law 7. ITEMS NOT ON AGENDA 8. MONTHLY REPORTS (To be distributed at the Board meeting) A. Water Consumption Report – December 2013 B. Budget Analysis – December 2013 C. Budget Analysis – July 2013 – December 2013

Oak Park City Hall, 14000 Oak Park Blvd. - SOCWA · SOCWA 3910 W. Webster Road Royal Oak ... Oak Park City Hall, 14000 Oak Park Blvd. 1. Meeting Called to Order ... US Bank Trust

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* Berkley * Beverly Hills * Bingham Farms * Birmingham

* Clawson * Huntington Woods * Lathrup Village * Pleasant Ridge

* Royal Oak * Southfield * Southfield Township

SOCWA 3910 W. Webster Road Royal Oak Michigan 48073 Phone 248.288.5150 Fax 248.435.0310 Email [email protected] www.socwa.org

Printed on Post Consumer Recycled Content Paper

AGENDA

Regular Meeting – Wednesday, January 8, 2014 – 8:30 a.m.

Oak Park City Hall, 14000 Oak Park Blvd.

1. Meeting Called to Order

2. Roll Call & Recognition of visitors

3. Approval of Agenda

4. Approval of Minutes – Regular Meeting – December 11, 2013

5. Approval of Warrants – WA-741

6. ADMINISTRATIVE REPORTS A. DWSD Rate Process for 2014/15

B. DWSD Issues C. DWSD Contract Negotiations D. Revisions to Miss Dig Law

7. ITEMS NOT ON AGENDA

8. MONTHLY REPORTS (To be distributed at the Board meeting)

A. Water Consumption Report – December 2013

B. Budget Analysis – December 2013

C. Budget Analysis – July 2013 – December 2013

D. Water Samples – December 2013

E. Precipitation – Inches (Webster Pumping Station)

Notice: The Southeastern Oakland County Water Authority will provide necessary, reasonable auxiliary aids and

services, such as signers, for the hearing impaired, or audiotapes of printed materials being considered at the

meeting to individuals with disabilities. All such requests must be made at least five days prior to said meeting.

Individuals with disabilities requiring auxiliary aids or services should contact the Southeastern Oakland County

Water Authority by writing or calling: General Manager's Office, 3910 W. Webster Road, Royal Oak, MI 48073;

(248) 288-5150.

SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY

Regular Meeting – December 11, 2013

Table of Contents Agenda Approved as Submitted –

10058

MINUTES

Meeting Minutes – Regular Meetings – November 13, 2013 – Approved –

10059

WARRANTS

Warrant No. WA-740 – Approved –

10060

ADMINISTRATIVE REPORTS

DWSD Rate Process for 2014/15 – Report Received and Filed –

10061

DWSD Issues – Report Received and Filed –

10062

DWSD Sewer Rate Simplification – Report Received and Filed –

10063

Miss Dig Messages – Report Received and Filed –

10064

November Water Sales – Report Received and Filed –

10065

Operation of Oak Park Water System

10066

Meeting Adjourned –

10067

5187.

MINUTES OF THE REGULAR MEETING

OF THE SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY

Wednesday, December 11, 2013 – Pleasant Ridge Community Center

The meeting was called to order at 8:33 a.m. by Mr. Harry Drinkwine, Chair.

Present Votes Municipality D. Schueller 2 Berkley *C. Wilson 1 Beverly Hills D. Warren 1 Bingham Farms P. O’Meara 4 Birmingham H. Drinkwine 1 Clawson C. Galed 1 Huntington Woods M. Baumgarten (Alternate) 1 Lathrup Village S. Pietrzak 1 Pleasant Ridge G. Rassel 8 Royal Oak L. Schultz (Alternate) 15 Southfield R. Walsh 1 Southfield Township

TOTAL 36

Absent None

*Mr. Chris Wilson, representative from Beverly Hills (1 vote), arrived at 8:42 a.m. Also Present J. A. McKeen, General Manager R. Jackovich, Operations Manager K. Bever, Executive Assistant R. Davis, General Counsel D. Humphrey, Pleasant Ridge

Page 2 Water Authority Minutes December 11, 2013 5188.

-10058- Motion by Mrs. C. Galed, supported by Mr. P. O’Meara: That the agenda be approved as submitted. Yeas: Schueller, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak, Rassel,

Schultz, Walsh (35 votes) Nays: None Absent: Wilson (1 vote) Motion carried.

-10059- Motion by Mr. P. O’Meara supported by Mr. D. Schueller: That the November 13, 2013 Regular Meeting minutes be approved as typed and circulated. Yeas: Schueller, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak, Rassel,

Schultz, Walsh (35 votes) Nays: None Absent: Wilson (1 vote) Motion carried.

-10060- Motion by Mr. S. Pietrzak, supported by Mrs. C. Galed: That Warrant No. WA-740 in the amount of $2,080,113.98 be approved and payments authorized. Yeas: Schueller, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak, Rassel,

Schultz, Walsh (35 votes) Nays: None Absent: Wilson (1 vote) Motion carried.

Page 3 Water Authority Minutes December 11, 2013 5189.

-10061-

Motion by Mrs. C. Galed, supported by Mr. S. Pietrzak: That the report on the DWSD Rate Process for 2014/15 be received and filed. Yeas: Schueller, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak, Rassel,

Schultz, Walsh (35 votes) Nays: None Absent: Wilson (1 vote) Motion carried.

-10062-

Motion by Mr. S. Pietrzak, supported by Mr. D. Schueller: That the report on the DWSD Issues be received and filed. Yeas: Schueller, Wilson, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak,

Rassel, Schultz, Walsh (36 votes) Nays: None Absent: None Motion carried.

-10063-

Motion by Mr. G. Rassel, supported by Mr. R. Walsh: That the Report on the DWSD Sewer Rate Simplification be received and filed. Yeas: Schueller, Wilson, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak,

Rassel, Schultz, Walsh (36 votes) Nays: None Absent: None Motion carried.

Page 4 Water Authority Minutes December 11, 2013 5190.

-10064- Motion by Mr. P. O’Meara, supported by Mr. M. Baumgarten: That the report on Miss Dig Messages be received and filed. Yeas: Schueller, Wilson, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak,

Rassel, Schultz, Walsh (36 votes) Nays: None Absent: None Motion carried.

-10065-

Motion by Mr. S. Pietrzak, supported by Ms. L. Schultz: That the Report on November Water Sales be received and filed. Yeas: Schueller, Wilson, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak,

Rassel, Schultz, Walsh (36 votes) Nays: None Absent: None Motion carried.

-10066-

Motion by Mr. S. Pietrzak, supported by Mrs. C. Galed: That the report on the Operation of the Oak Park Water System be received and filed. Yeas: Schueller, Wilson, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak,

Rassel, Schultz, Walsh (36 votes) Nays: None Absent: None Motion carried.

Mr. S. Pietrzak reported that the recently repaved section of Woodward has many structure covers that are below the pavement level and wanted to know if anyone had received complaints about them.

Page 5 Water Authority Minutes December 11, 2013 5191.

-10067-

Motion by Mrs. C. Galed, supported by Mr. R. Walsh: That the meeting be adjourned. Yeas: Schueller, Wilson, Warren, O’Meara, Drinkwine, Galed, Baumgarten, Pietrzak,

Rassel, Schultz, Walsh (36 votes) Nays: None Absent: None Motion carried. The meeting was adjourned at 9:32 a.m. APPROVED: _____________________________ Chairman _____________________________ Secretary

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6-A

December 30, 2013 Board of Trustees Southeastern Oakland County Water Authority Subject: DWSD Rate Process for 2014/15 Board Members: The final dates on the calendar for DWSD’s 2014/15 rate process are: January 23 2014/15 rates distributed February 26 Board of Water Commissioners Public Hearing This schedule is the same that was used last year. I plan to have an estimated rate for 2014/15 for review at the February 12, 2014 Board meeting. Please contact me if you need a rate estimate prior to that meeting. On December 17, 2013, DWSD presented a preliminary five year financial plan, which calls for 4% annual revenue increases in each year of the plan. For 2014/15, the 4% increase is composed of:

Reduction in water sales +1.3% O & M Costs +0.4% Debt service costs +0.5% Revenue financed capital +1.8% Total Increase +4.0%

Both the five year plan and the 2014/15 plan result in increases in DWSD’s debt service coverage ratio and reserve accounts. The plan is consistent with the direction established for the 2013/14 rates and should result in a significantly improved balance sheet for DWSD. The increase in debt service costs for 2014/15 is not for new debt, it is a previously scheduled increase in the payments for existing debt. DWSD does not plan to issue new debt for the water system until 2015/16 at the earliest.

The final step in the rate process is to determine how the 4% revenue increase will be divided between DWSD’s wholesale and retail customers. That information, and the rate increase for each customer, will be provided at the January 23 meeting. It continues to appear as if DWSD will not be making any changes to their rate methodology for the 2014/15 rates and it appears that they will try to deliver an average 4% rate increase, similar to the rate increase last year. SOCWA staff will be attending each of the DWSD rate meetings and we will be issuing reports to the Board every month during the DWSD rate season. Respectfully submitted, Jeffrey A. McKeen, P.E. General Manager Suggested Resolution: “That the report on the DWSD Rate Process for 2014/15 be received and filed.”

6-B

December 30, 2013 Board of Trustees Southeastern Oakland County Water Authority Subject: DWSD Issues Board Members: This report is intended to update the Board on the DWSD issues that have been discussed at recent Board meetings. City of Detroit Bankruptcy Detroit’s bankruptcy filing continues to have no immediate effect on DWSD. Under their planned level of capital spending, DWSD will not go to the market for additional debt for the water system in the next 2-3 years. Authority Structure Discussions regarding an Authority structure are continuing between representatives of Oakland, Macomb and Wayne counties with the law firms working for the Emergency Manager. In concept, the Authority will refinance the existing DWSD debt at a lower interest rate and use the cash generated by the reduction in debt costs to make an annual payment to the City of Detroit. It appears as if the negotiations have become more realistic in recent weeks, although all information continues to be tightly controlled under attorney/client privilege. The Emergency Manager is supposed to be releasing his plan of adjustment, which will probably provide some details regarding the disposition of DWSD, in the next several weeks. Flint and Genesee County Genesee County is continuing to work on the water intake for the new system to supply water to Flint and Genesee County. DWSD has begun to determine how they will handle the stranded costs due to Flint and Genesee County leaving the DWSD system. I anticipate that some of these costs will be reflected in Flint’s rates for 2014/15. SOCWA Contract Reopener We have completed contract reopener discussions with DWSD. The result of these discussions is a draft contract amendment, which is the next agenda item

Respectfully submitted, Jeffrey A. McKeen, P.E. General Manager Suggested Resolution: “That the report on the DWSD Issues be received and filed.”

6-C

December 30, 2013 Board of Trustees Southeastern Oakland County Water Authority Subject: DWSD Contract Negotiations Board Members: I have attached Amendment #2 to our Water Service Contract with DWSD. I am recommending that the Board approve Amendment #2. Amendment #2 has three sections. The first is changes to the written part of the contract. The second is Exhibit A, which are the drawings of the SOCWA system and the DWSD meter locations. The third is Exhibit B, which is the flow data. The revisions to the written part of the contract are the result of provisions that other DWSD customers have added to their contracts since our Amendment #1 was negotiated in 2010. These changes have been reviewed and approved by the DWSD Technical Advisory Committee. The changes to the written part of the contract are as follows: Section Change

1. Adds a new term “Allocation Flow Rate”. 2, 3, 4 Deletes requirement for the approval by the Detroit City Council. 5.01 Clarifies that pressure contract ranges will not be established for meters which are

subject to the flow demands of another customer. This situation does not exist for any of the DWSD meters that supply SOCWA.

5.02 Added that customer is responsible for requesting a meeting to discuss pressure non-compliance and clarifies when the corrective action plan must be done.

5.03 Inserts details regarding how an exceedence of the maximum flow rate will be handled. This procedure has been in use for a number of years.

5.04 Clarifies how the remedy for non-compliance with the maximum flow rate will be developed.

5.05 Clarifies additional actions that may be taken regarding a non-compliance with the maximum flow rate.

5.06 to 5.09 these sections are unchanged 5.10 Added that customer will be informed in writing if a corrective action plan is

required and clarifies that customer will be responsible for the costs related to the corrective action plan.

6. Deletes the requirement for the approval by the Detroit City Council. 7. Adds a requirement that DWSD will have the right to review and approve

customer’s construction plans that will cross, be within close proximity to, or have an influence on DWSD’s infrastructure.

8. Clarifies that storage operation outside of the approved filling schedule is not exempt from the exceedence review procedures of Section 5.

9, 10 delete existing Contract exhibits.

11. Clarifies that all contract provisions not specifically contained in the amendment remain in full force.

12. Deletes the requirement for the approval by the Detroit City Council.

These changes are minor revisions to the current contract language, mostly made for clarity, and to ensure that the contract is consistent with current procedures. SOCWA staff and Mr. Davis recommend that these changes be accepted as part of our Amendment #2. There are minor changes to all of the drawings in Exhibit A to more accurately reflect the configuration and ownership of facilities located in the vicinity of the DWSD meter locations. The data in Exhibit B have been modified as follows:

1. Projected Annual Volumes for the fiscal years from 2014/15 to 2018/19 have been

reduced by 0.4% in the first year and 0.7% annually thereafter to be consistent with our recent trend in decreasing water sales volumes. The Projected Annual Volumes from 2019/20 to the end of the contract, which are used for planning purposes only, have been changed to be equal to the Projected Annual Volume for 2018/19.

2. Minimum Annual Volumes have been reduced to be one half of the Projected Annual Volumes.

3. The minimum pressures for Meters SE-05, SE-06 and SE-07 (the meters along 8 Mile Road) for the period from 2019 to 2023 have been reduced to their current values to reflect the fact that DWSD will not be doing any work to improve their delivery pressures along 8 Mile Road until at least 2023.

4. The minimum pressure for Meter SE-08 (Inkster and 12 Mile Road) for the period from 2019 to 2023 has been reduced to its current value to reflect the fact that DWSD will not be doing any work to improve their delivery pressure at this meter until at least 2023.

5. Maximum Flow Rate for both Max Day and Peak Hour have been reduced by 0.4% in the first year and by 0.7% annually thereafter in order to be consistent with the decreases in annual flow discussed above. This should result in the volume changes not having any effect on our rates from DWSD.

For all of the Exhibit B data, we are agreeing to the values for 2014/15 to 2018/19. The values for the years after 2018/19 are for planning purposes only and will be revised during the fall of 2018.

Respectfully submitted, Jeffrey A. McKeen, P.E. General Manager Suggested Resolution: “That Amendment #2 to the Water Service Agreement between SOCWA and DWSD be approved.”

AMENDMENT NO. 2 TO WATER SERVICE CONTRACT BETWEEN

CITY OF DETROIT AND

SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY

This Amendment Agreement No. 2 (“Amendment”) is made between the City of Detroit,

a municipal corporation, by its Water and Sewerage Department and Board of Water Commissioners (the “Board”), and the Southeastern Oakland County Water Authority, a municipal corporation (“Customer”). The Board and Customer are collectively referred to as the “Parties”.

Whereas, the City of Detroit owns a public water supply system (“System”) operated by the Board; and

Whereas, on September 15, 2009, the Parties entered into a Water Service Contract

(“Contract”) reflecting the terms and conditions governing the delivery and purchase of potable water, as subsequently amended; and

Whereas, the purpose of the Contract is to provide for the long-term service of potable water to Customer; and

Whereas, Article 15 of the Contract permits the Parties to amend the Contract by mutual

agreement; and Whereas, in October 2011, the Technical Advisory Committee recommended that the

Board consider certain modifications to the Contract terms, including the addition of a new defined term in Section 1.01, the revision of Article 5, and modifications to Sections 21.01 and 22.01; and

Whereas, on November 4, 2011, the United States District Court, Eastern District of

Michigan, issued an order in Case No. 77-71100 that provides the Board full and final authority to approve contracts with its wholesale customers such that the approval of the Detroit City Council is no longer legally required; and

Whereas, it is the mutual desire of the Parties to enter into this Amendment to amend the

Contract as set out in detail in the following sections; and ACCORDINGLY, THE PARTIES AGREE AS FOLLOWS:

1. Section 1.01 of the Contract is amended to add the following definition:

“Allocation Flow Rate” shall mean the value that is established as a result of a breach of Section 5.03 herein and which value shall replace the contractual Maximum Flow Rate in the rate calculation process in the event that Section 5.04(C) herein is applied by the Board.

2. Section 1.01 of the Contract is amended by deleting the existing definition of “Contract” in its entirety and substituting the following definition in its place:

“Contract” shall mean each of the various provisions and parts of this document, including all attached Exhibits and any amendments thereto, as may be executed and approved by Customer’s governing body and the Board.

3. Section 2.01 of the Contract is amended by deleting in its entirety the existing language

and substituting the following language in its place:

Term. The Board shall sell and supply water to Customer from the System in accordance with the terms of this Contract for a period of thirty years from the effective date of this Contract and any ten-year renewal terms (collectively the “Contract Term”), subject to Article 3 herein. The effective date of this Contract shall be the date that this Contract is approved by Customer’s governing body or the Board whichever is later. This Contract replaces and supersedes any prior water service contracts between the Parties.

4. Section 3.04 of the Contract is amended by deleting in its entirety the existing language

and substituting the following language in its place:

Formation of Water Authority. Customer may join with another authority, city, township, village or other municipal corporation recognized by the State of Michigan to form a water authority for the sole purpose of collectively contracting for water service from the Board. The exercise of this right shall not be construed as an early termination of this Contract and this Contract shall be voided upon the approval of a new water service contract by Customer’s governing body and the Board.

5. Article 5 of the Contract is amended by deleting in its entirety the existing Article 5 and

substituting the following revised Article 5 in its place:

Article 5. Pressure; Maximum Flow Rate; Minimum Annual Volume

5.01 Pressure Range. The Board shall use its best efforts to deliver water at the Water

Distribution Points at a pressure range (“Pressure Range”) adequate to meet the reasonable requirements of Customer. For purposes of evaluating this effort, water pressure shall be determined by reviewing the average hourly pressure measured from top-of-the-hour to top-of-the-hour (e.g. 7:00 a.m. to 8:00 a.m.). The Pressure Range to be provided by the Board to Customer’s Water Distribution Points is specified in Exhibit B. The location at which the water pressure will be measured shall be specified in Exhibit A and identified as point “P”. A Pressure Range will not be established for water meters that are not located on a DWSD transmission main, or which are located on a DWSD transmission main and are downstream of and subject to the flow demands of a water meter for another Board customer.

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5.02 Remedy for Non-Compliance with Pressure Range. If the water pressure at Customer’s Water Distribution Points is above or below the Pressure Range, at Customer’s request the Parties shall meet within thirty (30) calendar days to discuss the reasons for the non-compliance and, if agreed necessary, develop and implement a mutually agreeable written corrective action plan within sixty (60) calendar days of the meeting, or as otherwise agreed. The corrective action plan shall include a timetable for resolution of the non-compliance issue(s).

A. If it is determined that another customer’s exceedance of the rates of flow

established by that customer’s Maximum Flow Rate caused or contributed to the Board’s inability to meet its Pressure Range agreement with Customer, then the corrective action plan shall provide for the resolution of the issue.

B. If Customer is exceeding the rates of flow established by its Maximum

Flow Rate on a day other than the DWSD Maximum Day at the time Customer experiences a variation from the Pressure Range, then the Board shall be relieved from its obligation to provide water to Customer within the Pressure Range for that period of time during which Customer is exceeding the rates of flow established by its Maximum Flow Rate.

5.03 Maximum Flow Rate. Customer’s Maximum Flow Rate is specified in Exhibit B.

Customer shall not exceed the Maximum Flow Rate specified in Exhibit B, as measured in million gallons on the DWSD Maximum Day and during the DWSD Peak Hour.

A. The Board shall notify all customers in writing on or before October 1 of

each calendar year if Customer or any other wholesale customer is alleged to have exceeded its Maximum Flow Rate in a given calendar year. The notice shall state the day and/or hour that Customer or any other wholesale water customer is alleged to have exceeded its Maximum Flow Rate.

B. If Customer is alleged to be in breach of its obligations under this Section

5.03, the Board and Customer shall endeavor to meet before November 1 of the then current calendar year, or as soon as practicable, for the purposes of validating the breach, reviewing and analyzing the causes, and to negotiate a possible remedy pursuant to Sections 5.04 and 5.05 herein.

C. The Technical Advisory Committee’s Analytical Work Group, or its

successor shall review any alleged breach of this Section 5.03.

i. The Analytical Work Group shall meet once, at a minimum, on or before November 1 of each calendar year to review the alleged breaches, if any, and may thereafter schedule subsequent meetings as necessary to conclude its review.

3

ii. The Board will seek a recommendation from the Analytical Work Group on (1) an Allocation Flow Rate, if any, and/or (2) concurrence with the remedy tentatively negotiated between Customer and the Board, if any. Customer and the Board shall have the right to present any information related to the alleged breach a Party deems necessary to the deliberations.

iii. Any recommendation submitted by the Analytical Work Group

shall be received by the Board on or before December 1 of each calendar year.

5.04 Remedy for Non-Compliance with Maximum Flow Rate. The Board has no

obligation to supply to Customer more than the Maximum Flow Rate. If Customer exceeds its Maximum Flow Rate on the DWSD Maximum Day or during the DWSD Peak Hour, the Board and Customer may, as needed, take one or more of the following actions set forth in this Section 5.04. The applicability of any particular action shall be evaluated by the Board on a case-by-case basis.

A. The Board may require that Customer take all reasonable steps to reduce

its consumption to the Maximum Flow Rate. Such steps may include water conservation measures, outdoor water use restrictions, water loss studies and remediation, and an internal system operation evaluation.

B. The Parties may meet to negotiate a new Maximum Flow Rate. If so

negotiated, Customer shall pay the rate associated with the new Maximum Flow Rate in the subsequent rate year.

C. For ratemaking and cost allocation purposes only, the Board may

recalculate Customer’s rate for the current and/or subsequent fiscal years utilizing a revised cost allocation formula as follows:

i. The Board shall, as set forth below, establish an Allocation Flow

Rate to replace the contractual Maximum Flow Rate in the rate calculation process.

ii. The Allocation Flow Rate shall be applied from no earlier than the

first exceedance date forward.

iii. The Allocation Flow Rate will be at least equal to the flow rate demonstrated by Customer on the DWSD Maximum Day, and may be higher than the actual flow rate demonstrated by Customer.

iv. Pursuant to Section 5.03(C), if the Board receives a

recommendation on the Allocation Flow Rate to be applied from the Analytical Work Group and the recommendation is higher than twice the amount by which the demonstrated flow rate exceeded the original Maximum Flow Rate, then the Board shall be limited to establishing an Allocation Flow Rate that is at least equal to the

4

flow rate demonstrated by Customer on the DWSD Maximum Day and no higher than the recommendation provided by the Analytical Work Group.

v. If no recommendation on the Allocation Flow Rate to be applied is

received by the Board, or if the Board receives a recommendation and the recommendation is less than twice the amount by which the demonstrated flow rate exceeded the original Maximum Flow Rate, then the Board shall be limited to establishing an Allocation Flow Rate that is at least equal to the flow rate demonstrated by Customer on the DWSD Maximum Day and no higher than twice the amount by which the demonstrated flow rate exceeded the original Maximum Flow Rate.

vi. The Allocation Flow Rate will continue to be applied to each

subsequent year’s rate calculation process until the Maximum Flow Rate is renegotiated.

vii. If a rate has been approved for the subsequent fiscal year (July 1st

to June 30th) but the rate has not yet been applied, the Board may modify Customer’s rate for that subsequent fiscal year to account for an exceedance of its Maximum Flow Rate.

viii. If the Board has built capital facilities based upon Customer’s

negotiated Maximum Flow Rate and Customer consistently exceeds its Maximum Flow Rate, then the Board may re-calculate the amount of Customer’s percentage of the capital cost of such facilities

5.05 Procedure for Non-Compliance with Maximum Flow Rate. In addition to the

remedies specified in Section 5.04, if Customer has failed in its obligations under Section 5.03, the Parties shall meet to discuss the reasons for the non-compliance and if agreed necessary, develop a mutually agreeable written corrective action plan by December 31 of the year in which the non-compliance occurred, or as otherwise agreed. Any corrective action plan required under this Section 5.05 shall include a timetable for resolution of the non-compliance issue(s).

A. If the Parties determine that a corrective action plan is not required and an

incident of non-compliance occurs in the subsequent calendar year, the Parties shall meet to develop a mutually agreeable written corrective action plan by December 31 of the year in which the non-compliance occurred, or as otherwise agreed.

B. In the event the reason for Customer’s non-compliance under Section 5.03

is due to a Customer water main break, fire or meter calibration performed by DWSD, these events will be taken into consideration in determining (1) whether a corrective action plan is warranted and (2) the extent to which, if any, the steps specified in Section 5.04 should apply.

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5.06 Minimum Annual Volume. Customer shall purchase from the Board not less than the Minimum Annual Volume of water specified in Exhibit B. If Customer’s Annual Volume is less than the Minimum Annual Volume, Customer shall pay to the Board an amount computed by applying the current rate to the Minimum Annual Volume less any amounts already billed to the Customer by the Board.

5.07 Periodic Review. For Customer and System planning purposes and, with regard

to the Minimum Annual Volume, enforcement of the provisions of Article 3, a Maximum Flow Rate, Pressure Range, Projected Annual Volume and Minimum Annual Volume shall be established by mutual agreement for the Contract Term. A contractually binding Maximum Flow Rate, Pressure Range, Projected Annual Volume and Minimum Annual Volume shall be established by mutual agreement for first two years of the Contract Term. Not later than the second year of the Contract Term, the Board and Customer shall negotiate a contractually binding Maximum Flow Rate, Pressure Range, Projected Annual Volume and Minimum Annual Volume for the succeeding three years of the Contract Term. Not later than the fifth year of the Contract Term, and every five years thereafter, the Board and Customer shall negotiate a contractually binding Maximum Flow Rate, Pressure Range, Projected Annual Volume and Minimum Annual Volume for the succeeding five years of the Contract Term. If the Parties do not negotiate new or revised Maximum Flow Rates, Pressure Ranges, Projected Annual Volumes and Minimum Annual Volumes according to the aforementioned schedule, then the figures established for planning purposes (as shown in italicized type in Exhibit B) shall become contractually binding for the then-current three or five year term.

5.08 Remedy for Excessive Rate(s) of Flow Causing Pressure Problem(s). Customer

acknowledges that Customer’s rates of flow may cause and/or contribute to the Board’s inability to meet its Pressure Range agreements with Customer and/or the Board’s other customers (hereinafter, “Pressure Problem”). The Board may review or monitor Customer’s daily rates of flow if a Pressure Problem occurs and the Board’s Pressure Range agreement with Customer and/or another customer of the Board is alleged to have been breached. The approximate rate of flow by individual meter location used to establish the Pressure Range and Maximum Flow Rate is specified in Exhibit B. If a Pressure Problem occurs, the Parties shall meet to discuss the reasons for the Pressure Problem and develop and implement a mutually agreeable written corrective action plan within sixty calendar days of the Pressure Problem, or as otherwise agreed. The corrective action plan may require one or both of the following steps:

A. The Board may require that Customer take all reasonable steps to reduce

its consumption to the rate of flow established by the Maximum Flow Rate. Such steps may include water conservation measures, outdoor water use restrictions, water loss studies and remediation, and an internal system operation evaluation. In addition, the Board may require that Customer adjust its rate of flow at individual meters, including the establishment of a not-to-exceed flow rate for individual meters.

6

B. The Parties may meet to negotiate a new Maximum Flow Rate. If so negotiated, Customer shall pay the rate associated with the new Maximum Flow Rate in the subsequent rate year.

If the Parties determine that a corrective action plan is not required and a subsequent Pressure Problem occurs, the Parties shall meet to develop and implement a mutually agreeable written corrective action plan within sixty calendar days of the subsequent Pressure Problem, or as otherwise agreed. Any corrective action plan required under this Section 5.08 shall include a timetable for resolution of the Pressure Problem. In the event the reason for the Pressure Problem is due to a Customer water main break, fire or meter calibration performed by DWSD, these events will be taken into consideration in determining (1) whether a corrective action plan is warranted and (2) the extent to which, if any, the steps specified above in this Section 5.08 should apply.

5.09 Board Costs for Corrective Action Plan. If at any time the Board is required

under the terms of this Article 5 to develop and implement a corrective action plan and the plan involves incurring capital costs, the Board will determine whether the costs will be charged as a System cost or whether the cost will be borne by a specific customer or customers. If the Board determines that all or part of the costs should be borne by a specific customer or customers, the Board will seek a recommendation from the Technical Advisory Committee on the assessment of the costs.

5.10 Customer Costs for Corrective Action Plan. If at any time Customer is required

under the terms of this Article 5 to develop and implement a corrective action plan, Customer shall be so informed in writing and Customer will pay all costs related to the corrective action plan.

6. Section 15.02 of the Contract is amended by deleting in its entirety the existing language

and substituting the following language in its place:

No amendment to this Contract shall be effective and binding upon the Parties unless it expressly makes reference to this Contract, is in writing, is signed and acknowledged by duly authorized representatives of both Parties, and is approved by Customer’s governing body and the Board.

7. Section 21.01 of the Contract is amended by deleting in its entirety the existing language

and substituting the following language in its place:

The Board shall have the right to review and approve Customer’s construction plans for Meter Facilities at new Water Distribution Points, water mains sized twenty-four inches and larger, pump stations, reservoirs, water towers, and any other construction that will cross, or be within close proximity to, or have influence upon the Board’s infrastructure. The Board’s approval of construction plans shall be timely and shall not be unreasonably withheld.

7

8. Section 22.01 of the Contract is amended by deleting in its entirety the existing language and substituting the following language in its place:

Prior to Customer’s operation of any new or existing water storage facility, Customer shall seek the Board’s written approval of the filling schedule (“Filling Schedule”) of the storage facility. The Board may periodically require Customer to change or adjust a previously approved Filling Schedule. The Parties shall collaborate on devising a mutually beneficial Filling Schedule. If the Parties are unable to agree upon a Filling Schedule, the Board’s determination of a Filling Schedule shall be final. All Filling Schedules shall be for a period of six consecutive hours. Customer shall at all times abide by the then-current Board approved Filling Schedule. The Board shall act promptly in approving Filling Schedule requests. Nothing in this Article 22 shall prevent Customer from operating its storage facility at any time, provided that any storage operation that falls outside of the approved Filling Schedule shall not be exempt from the terms of Article 5 herein.

9. Exhibit A of the Contract is amended by deleting in its entirety the existing First

Amended Exhibit A and substituting the attached Second Amended Exhibit A in its place.

10. Exhibit B of the Contract is amended by deleting in its entirety the existing First

Amended Exhibit B and substituting the attached Second Amended Exhibit B in its place.

11. With the exception of the provisions of the Contract specifically contained in this Amendment, all other terms, conditions and covenants contained in the Contract shall remain in full force and effect and as set forth in the Contract.

12. This Amendment to the Contract shall be effective and binding upon the Parties when it

is signed and acknowledged by the duly authorized representatives of both Parties, and is approved by Customer’s governing body and the Board.

(Signatures appear on next page)

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In Witness Whereof, the City and Customer, by and through their duly authorized officers and representatives, have executed this Amendment. Southeastern Oakland County Water Authority: By: _______________________________

Jeffrey A. McKeen Its: General Manager

City of Detroit:

By: _______________________________ Sue F. McCormick Its: Director, Water and Sewerage Department

APPROVED BY SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY BOARD ON: ______________________________________ Date APPROVED BY DETROIT BOARD OF WATER COMMISSIONERS ON: ______________________________________ Date

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SECOND AMENDED EXHIBIT A

Customer’s Water Distribution Points This Exhibit contains the following information: 1. The corporate limits of Customer; 2. The agreed upon water Service Area of Customer which (a) may or may not be entirely

within the corporate limits of Customer and (b) which may or may not include the entire area within the Customer’s corporate limits;

3. The specific location of the Water Distribution Points, including any Board approved

emergency connections; 4. The designation of appurtenances to be maintained by Customer and those to be

maintained by the Board; and 5. A list of any closed meter locations.

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EXHIBIT A SOCWA Emergency Connections:

Connections to Ferndale 6” – At the intersection of Oakridge and southbound Woodward Avenue 8” – At the intersection of Bermuda and 10 Mile 12” GV connected to 30” SOCWA Livernois Water Main north of Nine Mile Rd. Connection to Oak Park 12” – At the intersection of 11 Mile and Tulare Connection to Troy 16” – At the intersection of Main and Elmwood Connection to Madison Heights 8” – At I-75 south of Hudson 8” – At the intersection of 14 Mile and Campbell Connections to West Bloomfield Twp. 8” – 2002 Middlebelt Road 8” – 2020 South Hammond Lake Road 8” – 1986 Long Lake Shores 12” – 2025 Wabeek Lake Drive 8” – 2030 Birchwood 8” – 4886 Beacon Hill (on Inkster Road) 8” – 1997 Golf Ridge Drive (on Long Lake Road) Connection to City of Pontiac 8” GV&W at Bassett and Woodward Avenue

SOCWA Master Meters Not In Service: SE-01, SE-02, SE-03, and SE-04. Bloomfield Twp Connections Not In Service per 1992 Cost Agreement: 14 Mile Road and Wing Lake Road

Quarton Road and Covington Road

SOCWA Water Customers Outside Municipal Limits: City of Madison Heights – 32380 North Campbell City of Farmington Hills 20743 Inkster 20753 Inkster 20757 Inkster 20761 Inkster 20765 Inkster 20773 Inkster 20781 Inkster 20911 Inkster 20919 Inkster 20925 Inkster 27421 Shiawassee

20929 Inkster 20937 Inkster 20989 Inkster 20999 Inkster 21033 Inkster 21055 Inkster 21103 Inkster 21107 Inkster 21127 Inkster 27400 W. 9 Mile

21137 Inkster 21185 Inkster 21195 Inkster 21205 Inkster 21207 Inkster 21219 Inkster 21305 Inkster 21313 Inkster 21329 Inkster 27500 W. 9 Mile

21337 Inkster 21345 Inkster 21355 Inkster 21503 Inkster 21505 Inkster 22899 Inkster 22955 Inkster 25525 Inkster 25575 Inkster 27680 Spring Valley Dr.

West Bloomfield Township 4130 Wabeek Lake 2038 N. Hammond Lake 2070 Lake Wind 4878 Old Post 4140 Wabeek Lake 2065 N. Hammond Lake 2081 Lake Wind 4889 Old Post 4154 Wabeek Lake 2066 N. Hammond Lake 2094 Lake Wind 4897 Old Post 4168 Wabeek Lake 2100 N. Hammond Lake 2117 Lake Wind 2025 Regent 4186 Wabeek Lake 2111 N. Hammond Lake 2124 Lake Wind 2029 Regent 4220 Wabeek Lake 2141 N. Hammond Lake 2142 Lake Wind 2033 Regent 4224 Wabeek Lake 2180 N. Hammond Lake 2166 Lake Wind 2037 Regent 4228 Wabeek Lake 2191 N. Hammond Lake 2210 Lake Wind 2021 Wabeek Hill 4232 Wabeek Lake 2200 N. Hammond Lake 4574 Wabeek Forest 2033 Wabeek Hill 4240 Wabeek Lake 2215 N. Hammond Lake 4243 Sawgrass 2040 Wabeek Hill 4244 Wabeek Lake 2241 N. Hammond Lake 1900 Sherwood Glen 2045 Wabeek Hill 4248 Wabeek Lake 2260 N. Hammond Lake 1901 Sherwood Glen 2056 Wabeek Hill 4252 Wabeek Lake 2265 N. Hammond Lake 1905 Sherwood Glen 2070 Wabeek Hill 4255 Wabeek Lake 2285 N. Hammond Lake 1990 Sherwood Glen 2071 Wabeek Hill 4260 Wabeek Lake 2111 Orchard Lk Road 1996 Sherwood Glen 2084 Wabeek Hill 4264 Wabeek Lake 2133 Orchard Lk Road 5270 Inkster Road 2085 Wabeek Hill 4297 Wabeek Lake 2267 Orchard Lk Road 5280 Inkster Road 2098 Wabeek Hill 4303 Wabeek Lake 2157 Orchard Lk Road 7285 Inkster Road 2099 Wabeek Hill 4309 Wabeek Lake 2187 Orchard Lk Road 7434 Lindenmere 2032 Fawn Wood 4315 Wabeek Lake 2093 Orchard Lk Road 7435 Lindenmere 2035 Middlebelt Road 4440 Wabeek Lake 2235 Orchard Lk Road 7456 Lindenmere 1998 Bent Tree 1975 Tuckaway 2207 Orchard Lk Road 7457 Lindenmere 2072 Birchland 1985 Tuckaway 2277 Orchard Lk Road 7478 Lindenmere 1995 Tuckaway 2010 Lake Wind 7865 Lindenmere 2015 N. Hammond Lake 2034 Lake Wind 4860 Old Post

SECOND AMENDED EXHIBIT B

Projected Annual Volume and Minimum Annual Volume (Table 1) Pressure Range and Maximum Flow Rate (Table 2)

Flow Split Assumptions (Table 3) Addresses for Notice (Table 4)

Table 1 and Table 2 set forth the agreed upon Projected Annual Volumes, Minimum Annual Volumes, Pressure Ranges and Maximum Flow Rates for the term of this Contract provided that figures in bold type face are immediately enforceable pursuant to the terms of Section 5.07 and italicized figures are contained for planning purposes only but will become effective absent the negotiated replacements anticipated in Section 5.07. The approximate rate of flow by individual meter set forth in Table 3 is the assumption upon which the Pressure Range commitments established in Table 2 have been devised. Should Customer deviate from these assumptions at any meter(s), the Board may be unable to meet the stated Pressure Range commitments in this Contract or in the contract of another customer of the Board and Section 5.08 of this Contract may be invoked.

11

SECOND AMENDED EXHIBIT B

Table 1 Projected Annual Volume and Minimum Annual Volume

Fiscal Year Ending June 30

Projected Annual Volume

(Mcf)

Minimum Annual Volume (Mcf)

2009 1,398,800 699,400 2010 1,379,000 689,500 2011 1,476,000 738,000 2012 1,476,000 738,000 2013 1,476,000 738,000 2014 1,476,000 738,000 2015 1,470,000 735,000 2016 1,460,000 730,000 2017 1,450,000 725,000 2018 1,440,000 720,000 2019 1,430,000 715,000 2020 1,430,000 715,000 2021 1,430,000 715,000 2022 1,430,000 715,000 2023 1,430,000 715,000 2024 1,430,000 715,000 2025 1,430,000 715,000 2026 1,430,000 715,000 2027 1,430,000 715,000 2028 1,430,000 715,000 2029 1,430,000 715,000 2030 1,430,000 715,000 2031 1,430,000 715,000 2032 1,430,000 715,000 2033 1,430,000 715,000 2034 1,430,000 715,000 2035 1,430,000 715,000 2036 1,430,000 715,000 2037 1,430,000 715,000 2038 1,430,000 715,000 2039 1,430,000 715,000

12

SECOND AMENDED EXHIBIT B

Table 2 Pressure Range and Maximum Flow Rate

Calendar

Year Pressure

Range (psi)

Meter SE-05

Pressure Range (psi)

Meter SE-06

Pressure Range (psi)

Meter SE-07

Pressure Range (psi)

Meter SE-08

Pressure Range (psi)

Meter SE-09

Pressure Range (psi)

Meter SE-10

Min Max Min Max Min Max Min Max Min Max Min Max

2009 31 55 40 63 40 62 71 103 90 120 88 115 2010 31 55 40 63 40 62 71 103 90 120 88 115 2011 31 55 40 63 40 62 71 103 90 120 88 115 2012 31 55 40 63 40 62 71 103 90 120 88 115 2013 31 55 40 63 40 62 71 103 90 120 88 115 2014 31 55 40 63 35 62 71 103 90 120 88 115 2015 31 55 40 63 35 62 71 103 90 120 88 115 2016 31 55 40 63 35 62 71 103 90 120 88 115 2017 31 55 40 63 35 62 71 103 90 120 88 115 2018 31 55 40 63 35 62 71 103 90 120 88 115 2019 31 55 40 63 35 62 71 103 90 120 88 115 2020 31 55 40 63 35 62 71 103 90 120 88 115 2021 31 55 40 63 35 62 71 103 90 120 88 115 2022 31 55 40 63 35 62 71 103 90 120 88 115 2023 31 55 40 63 35 62 71 103 90 120 88 115 2024 31 55 40 63 35 62 71 103 90 120 88 115 2025 31 55 40 63 35 62 71 103 90 120 88 115 2026 31 55 40 63 35 62 71 103 90 120 88 115 2027 31 55 40 63 35 62 71 103 90 120 88 115 2028 31 55 40 63 35 62 71 103 90 120 88 115 2029 31 55 40 63 35 62 71 103 90 120 88 115 2030 31 55 40 63 35 62 71 103 90 120 88 115 2031 31 55 40 63 35 62 71 103 90 120 88 115 2032 31 55 40 63 35 62 71 103 90 120 88 115 2033 31 55 40 63 35 62 71 103 90 120 88 115 2034 31 55 40 63 35 62 71 103 90 120 88 115 2035 31 55 40 63 35 62 71 103 90 120 88 115 2036 31 55 40 63 35 62 71 103 90 120 88 115 2037 31 55 40 63 35 62 71 103 90 120 88 115 2038 31 55 40 63 35 62 71 103 90 120 88 115

13

SECOND AMENDED EXHIBIT B

Table 2 (continued) Pressure Range and Maximum Flow Rate

Calendar Year

Pressure Range (psi)

Meter SE-11

Pressure Range (psi)

Meter SE-12

Pressure Range (psi)

Meter SE-13

Pressure Range (psi)

Meter SE-14

Pressure Range (psi)

Meter SE-15

Min Max Min Max Min Max Min Max Min Max

2009 92 113 NA NA NA NA NA NA NA NA 2010 92 113 NA NA NA NA NA NA NA NA 2011 92 113 110 131 81 102 116 136 66 95 2012 92 113 110 131 81 102 116 136 66 95 2013 92 113 110 131 81 102 116 136 66 95 2014 92 113 110 131 81 102 116 136 66 95 2015 92 113 110 131 81 102 116 136 66 95 2016 92 113 110 131 81 102 116 136 66 95 2017 92 113 110 131 81 102 116 136 66 95 2018 92 113 110 131 81 102 116 136 66 95 2019 92 113 110 131 81 102 116 136 66 95 2020 92 113 110 131 81 102 116 136 66 95 2021 92 113 110 131 81 102 116 136 66 95 2022 92 113 110 131 81 102 116 136 66 95 2023 92 113 110 131 81 102 116 136 66 95 2024 92 113 110 131 81 102 116 136 66 95 2025 92 113 110 131 81 102 116 136 66 95 2026 92 113 110 131 81 102 116 136 66 95 2027 92 113 110 131 81 102 116 136 66 95 2028 92 113 110 131 81 102 116 136 66 95 2029 92 113 110 131 81 102 116 136 66 95 2030 92 113 110 131 81 102 116 136 66 95 2031 92 113 110 131 81 102 116 136 66 95 2032 92 113 110 131 81 102 116 136 66 95 2033 92 113 110 131 81 102 116 136 66 95 2034 92 113 110 131 81 102 116 136 66 95 2035 92 113 110 131 81 102 116 136 66 95 2036 92 113 110 131 81 102 116 136 66 95 2037 92 113 110 131 81 102 116 136 66 95 2038 92 113 110 131 81 102 116 136 66 95

14

SECOND AMENDED EXHIBIT B

Table 2 (continued) Pressure Range and Maximum Flow Rate

Calendar Year

Maximum Flow Rate (mgd)

Max Day Peak Hour

2009 62.00 62.00 2010 61.40 61.40 2011 70.0 70.0 2012 70.0 70.0 2013 70.0 70.0 2014 69.7 69.7 2015 69.2 69.2 2016 68.7 68.7 2017 68.2 68.2 2018 67.7 67.7 2019 67.7 67.7 2020 67.7 67.7 2021 67.7 67.7 2022 67.7 67.7 2023 67.7 67.7 2024 67.7 67.7 2025 67.7 67.7 2026 67.7 67.7 2027 67.7 67.7 2028 67.7 67.7 2029 67.7 67.7 2030 67.7 67.7 2031 67.7 67.7 2032 67.7 67.7 2033 67.7 67.7 2034 67.7 67.7 2035 67.7 67.7 2036 67.7 67.7 2037 67.7 67.7 2038 67.7 67.7

15

SECOND AMENDED EXHIBIT B

Table 3 Flow Split Assumptions

Meter Assumed Flow Split (2014-2018) SE-05 0 – 20 % SE-06 0 – 30 % SE-07 0 – 5 % SE-08 15 – 60 % SE-09 0 – 55 % SE-10 0 – 10 % SE-11 5 – 10 % SE-12 5 – 10 % SE-13 5 – 15 % SE-14 5 – 10 % SE-15 0 – 5 %

Table 4 Addresses for Notice

If to the Board: If to Customer: Director General Manager Detroit Water and Sewerage Department Southeastern Oakland County Water Authority 735 Randolph 3910 W. Webster Road Detroit, Michigan 48226 Royal Oak, Michigan 48073 Attention: General Counsel

16

6-D

December 30, 2013 Board of Trustees Southeastern Oakland County Water Authority Subject: Revisions to Miss Dig Law Board Members: The Michigan Legislature recently made many changes to the laws that govern the Miss Dig program. The most significant change (Act 174 of 2013, copy attached) is the requirement that all Miss Dig messages will require a positive response from the staking entity as of April 1, 2014. Miss Dig has offered a positive response system for a number of years. SOCWA and the member municipalities will now have to enter a positive response into the Miss Dig system for each staking request. SOCWA staff is developing the appropriate procedures for entering the positive responses into the Miss Dig system. We would be glad to enter the positive responses for the member communities, if the community would like us to do so and if the community provides information about the resolution of each Miss Dig ticket. Please contact Bob Jackovich if you are interested in having SOCWA staff enter the positive responses for your community. This new legislation may also require that each member community become a member of Miss Dig. Mr. Davis is reviewing this act and will provide his opinion at the January Board meeting. The second change to the Miss Dig legislation requires Miss Dig member utility owners to participate in Miss Dig’s “Design” program. Miss Dig’s “Design” program enables designers or engineers to submit a “Design Ticket” in order to obtain information about the utilities at a given location. This “Design Ticket” is not a staking request, but a request to provide utility information so that it can be included in the design process. Under the new legislation, all Miss Dig members are required to participate in their “Design” program. Under our current system, SOCWA will receive the “Design Ticket” and pass it along to the appropriate community so that the community can provide the utility information to the requestor. The final legislative change (Act 173 of 2013, copy attached) regarding Miss Dig amends the governmental immunity law to provide that immunity would not apply to a governmental agency acting under the Miss Dig act. As a result, SOCWA and the member communities could no longer use governmental immunity to escape any legal issues regarding compliance with the Miss Dig act. Respectfully submitted, Jeffrey A. McKeen, P.E. General Manager Suggested Resolution: “That the report on Miss Dig Messages be received and filed.”

STATE OF MICHIGAN97TH LEGISLATURE

REGULAR SESSION OF 2013

Introduced by Senator Nofs

ENROLLED SENATE BILL No. 540AN ACT to enhance public safety, protect the environment, and prevent the disruption of vital public services by

reducing the incidences of damage to underground facilities caused by excavation or blasting activity by providing notices to facility owners and facility operators before excavation or blasting; to provide for certain notices to affected parties when underground facilities are damaged; to provide for the powers and duties of certain state governmental officers and entities; to allow the promulgation of rules; to prescribe penalties; to allow the imposition of a fee; to provide for immunity for certain individuals; to allow claims for damages against certain governmental entities in certain circumstances; and to repeal acts and parts of acts.

The People of the State of Michigan enact:

Sec. 1. This act shall be known and may be cited as the “MISS DIG underground facility damage prevention and safety act”.

Sec. 3. As used in this act:(a) “Additional assistance” means a response by a facility owner or facility operator to a request made by an

excavator during business hours, for help in locating a facility.(b) “Approximate location” means a strip of land at least 36 inches wide, but not wider than the width of the marked

facility plus 18 inches on either side of the facility marks.(c) “Blasting” means changing the level or grade of land or rendering, tearing, demolishing, moving, or removing

earth, rock, buildings, structures, or other masses or materials by seismic blasting or the detonation of dynamite or any other explosive agent.

(d) “Business day” means Monday through Friday, excluding holidays observed by the notification system and posted on the notification system website.

(e) “Business hours” means from 7 a.m. to 5 p.m., eastern standard time, on business days.(f) “Caution zone” means the area within 48 inches of either side of the facility marks provided by a facility owner

or facility operator.(g) “Commission” means the Michigan public service commission created in section 1 of 1939 PA 3, MCL 460.1.(h) “Damage” means any impact upon or exposure of an underground facility requiring its repair or replacement due

to weakening, partial destruction, or complete destruction of the facility, including, but not limited to, the protective coating, lateral support, cathodic protection, or housing of the facility.

(i) “Design ticket” means a communication to the notification system in which a request for information regarding underground facilities for predesign, design, or advance planning purposes, but not marking for excavation or blasting, is made under the procedures described in section 6a.

(67)

ESB 540

Act No. 174Public Acts of 2013

Approved by the GovernorNovember 26, 2013

Filed with the Secretary of StateNovember 26, 2013

EFFECTIVE DATE: April 1, 2014

2ESB 540

(j) “Dig notice” means a communication to the notification system by an excavator providing notice of intended excavation or blasting activity as required by this act.

(k) “Emergency” means a sudden or unforeseen occurrence, including a government-declared emergency, involving a clear and imminent danger to life, health, or property, or imminent danger to the environment, that requires immediate correction in order to restore or to prevent the interruption of essential governmental services, utility services, or the blockage of public transportation and that requires immediate excavation or blasting.

(l) “Emergency notice” means a communication to the notification system to alert the facility owners or facility operators of the urgent need for marking the location of a facility due to an emergency.

(m) “Excavation” means moving, removing, or otherwise displacing earth, rock, or other material below existing surface grade with power tools or power equipment, including, but not limited to, grading, trenching, tiling, digging, drilling, boring, augering, tunneling, scraping, cable or pipe plowing, and pile driving; and wrecking, razing, rending, moving, or removing a structure or mass of materials. Excavation does not include any of the following:

(i) Any of the following activities performed in the course of farming operations:

(A) Any farming operation performed in the public right-of-way to a depth of not more than 12 inches below the existing surface grade if the farming operation is not performed within 6 feet of any aboveground structure that is part of a facility.

(B) Any farming operation performed outside a public right-of-way and within 25 yards of an existing petroleum or natural gas pipeline to a depth of not more than 18 inches below the existing surface grade if the farming operation is not performed within 6 feet of any aboveground structure that is part of a facility.

(C) Any farming operation performed outside a public right-of-way and not within 25 yards of an existing petroleum or natural gas pipeline if the farming operation is not performed within 6 feet of any aboveground structure that is part of a facility.

(ii) Replacing a fence post, sign post, or guardrail in its existing location.

(iii) Any excavation performed at a grave site in a cemetery.

(iv) Any excavation performed within a landfill unit as defined in R 299.4103 of the Michigan administrative code during its active life as defined in R 299.4101 of the Michigan administrative code or during its postclosure period as set forth in R 299.4101 to R 299.4922 of the Michigan administrative code.

(v) Any of the following activities if those activities are conducted by railroad employees or railroad contractors and are carried out with reasonable care to protect any installed facilities placed in the railroad right-of-way by agreement with the railroad:

(A) Any routine railroad maintenance activities performed in the public right-of-way as follows:

(I) Within the track area, either to the bottom of the ballast or to a depth of not more than 12 inches below the bottom of the railroad tie, whichever is deeper, if the routine railroad maintenance activity is not performed within 6 feet of any aboveground structure that is part of a facility that is not owned or operated by that railroad.

(II) Outside the track area, not more than 12 inches below the ground surface, if the routine railroad maintenance activity is not performed within 6 feet of any aboveground structure that is part of a facility that is not owned or operated by that railroad.

(B) Any routine railroad maintenance activities performed to a depth of not more than 18 inches below the flow line of a ditch or the ground surface in the railroad right-of-way, excluding the public right-of-way, if the routine railroad maintenance activity is not performed within 6 feet of any aboveground structure that is part of a facility that is not owned or operated by that railroad.

(vi) Routine maintenance or preventative maintenance as those terms are defined in section 10c of 1951 PA 51, MCL 247.660c, to a depth of not more than 12 inches below the roadway and any shoulder of a street, county road, or highway.

(n) “Excavator” means any person performing excavation or blasting.

(o) “Facility” or “underground facility” means an underground or submerged conductor, pipe, or structure, including, but not limited to, a conduit, duct, line, pipe, wire, or other device and its appurtenances used to produce, store, transmit, or distribute a utility service, including communications, data, cable television, electricity, heat, natural or manufactured gas, oil, petroleum products, steam, sewage, video, water, and other similar substances, including environmental contaminates or hazardous waste.

(p) “Facility operator” means a person that controls the operation of a facility.

(q) “Facility owner” means a person that owns a facility.

(r) “Farm” means that term as defined in section 2 of the Michigan right to farm act, 1981 PA 93, MCL 286.472.

(s) “Farming operations” means plowing, cultivating, planting, harvesting, and similar operations routine to most farms and that are performed on a farm. Farming operations do not include installation of drainage tile, underground irrigation lines, or the drilling of a well.

3ESB 540

(t) “Governmental agency” means the state and its political subdivisions, including counties, townships, cities, villages, or any other governmental entity.

(u) “Mark”, “marks”, or “marking” means the temporary identification on the surface grade of the location of a facility in response to a ticket as described in section 7.

(v) “Notification system” means MISS DIG System, Inc., a Michigan nonprofit corporation formed and operated by each facility owner and facility operator to administer a 1-call system for the location of facilities, or any successor to this corporation.

(w) “Person” means an individual, firm, joint venture, partnership, corporation, association, governmental agency, department or agency, utility cooperative, or joint stock association, including any trustee, receiver, assignee, or personal representative thereof.

(x) “Positive response” means the procedure administered by the notification system to allow excavators to determine whether all facility owners or facility operators contacted under a ticket have responded in accordance with this act.

(y) “Public right-of-way” means the area on, below, or above a public roadway, highway, street, alley, easement, or waterway.

(z) “Railroad” means that term as defined in section 109 of the railroad code of 1993, 1993 PA 354, MCL 462.109.

(aa) “Safe zone” means an area 48 inches or more from either side of the facility marks provided by a facility owner or facility operator.

(bb) “Soft excavation” means a method and technique designed to prevent contact damage to underground facilities, including, but not limited to, hand-digging, cautious digging with nonmechanical tools, vacuum excavation methods, or use of pneumatic hand tools.

(cc) “Start date” means the date that a proposed excavation or blasting is expected to begin as indicated on a ticket.

(dd) “Ticket” means a communication from the notification system to a facility owner or facility operator requesting the marking of underground facilities, based on information provided by an excavator in a dig notice.

(ee) “White lining” means marking by an excavator of the area of a proposed excavation or blasting, with white paint or flags, or both, before giving notice to the notification system.

Sec. 4. (1) Facility owners and facility operators shall continue to operate and be members of MISS DIG Systems, Inc., a Michigan nonprofit corporation, that shall have the duties and undertake the responsibilities of the notification system under this act on and after the effective date of this act. The notification system responsibilities and duties do not include the physical marking of facilities, which is the responsibility of a facility owner or facility operator upon notification under this act.

(2) The notification system and its procedures shall be governed by its board of directors and in accordance with its current articles of incorporation and bylaws as of the effective date of this act, with any future changes made in accordance with the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192, and the notification system’s articles, bylaws, and board procedures. The notification system shall request input regarding its policies from all interested persons, including facility owners and facility operators, excavators, marking service providers, and governmental agencies.

(3) Funding for the notification system operations shall be established by the notification system, including through fees based on a reasonable assessment of operating costs among facility owners or facility operators. A facility owner or facility operator shall not charge a fee to excavators for marking facilities under this act.

(4) Facility owners and facility operators shall be members of and participate in the notification system and pay the fees levied by the notification system under this section. This obligation and the requirements of this act for facility owners and facility operators do not apply to persons owning or operating a facility located on real property the person owns or occupies if the facility is operated solely for the benefit of that person.

(5) Owners of real property on which there is a farm operation, as that term is defined in section 2 of the Michigan right to farm act, 1981 PA 93, MCL 286.472, may become a nonvoting member of the notification system, known as a farm member, upon providing the notification system with the information necessary to send the farm member a ticket for purposes of notification under section 6(1). A farm member is not subject to any fees levied under subsection (3).

(6) The notification system is exempt from taxes collected under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

Sec. 5. (1) An excavator shall provide a dig notice to the notification system at least 72 hours, but not more than 14 calendar days, before the start of any blasting or excavation. If the dig notice is given during business hours, the 72-hour period shall be measured from the time the dig notice is made to the notification system. If a dig notice is given before 7 a.m. on a business day, the 72-hour period begins at 7 a.m. on that day. If a dig notice is given on a nonbusiness day or after 5 p.m. on a business day, the 72-hour period begins at 7 a.m. on the next business day. All hours of nonbusiness days are excluded in counting the 72-hour period. If there are multiple excavators on the same site, each excavator shall provide its own dig notice.

4ESB 540

(2) A dig notice shall contain at least all of the following:

(a) The name, address, and telephone number of the excavator.

(b) A description of the proposed area of blasting or excavation, including the street address and a property description.

(c) The specific type of work to be performed.

(d) The start date and time of blasting or excavation.

(e) Whether the proposed blasting or excavation will be completed within 21 days after the start date.

(3) A ticket is valid for 21 days from the start date of the excavation or blasting on the ticket as identified by the excavator, except that a ticket is valid for 180 days from the start date if the dig notice indicates that the proposed excavation or blasting will not be completed within 21 days from the start date.

(4) An excavator shall comply with the notification system procedures and all requirements of this act.

(5) Except as otherwise provided in this subsection, before blasting or excavating in a caution zone, an excavator shall expose all marked facilities in the caution zone by soft excavation. If conditions make complete exposure of the facility impractical, an excavator shall consult with the facility owner or facility operator to reach agreement on how to protect the facility. For excavations in a caution zone parallel to a facility, an excavator shall use soft excavation at intervals as often as reasonably necessary to establish the precise location of the facility. An excavator may use power tools and power equipment in a caution zone only after the facilities are exposed or the precise location of the facilities is established.

(6) An excavator shall provide support or bracing of facilities or excavation walls in an excavation or blasting area that are reasonably necessary for protection of the facilities.

(7) An excavator shall provide notification to the notification system if facility markings are destroyed or covered by excavation or blasting activities or if a ticket expires before the commencement of excavation. If a ticket expires before the commencement of excavation, an excavator shall provide a new dig notice to the notification system, and comply with subsection (1).

(8) An excavator shall provide notification to the notification system requesting additional assistance if the location of a marked facility within the approximate location cannot be determined.

(9) An excavator shall provide immediate additional notice to the notification system and stop excavation in the immediate vicinity if the excavator has reason to suspect the presence of an unmarked facility due to any 1 of the following:

(a) Visible evidence of a facility with no marks visible.

(b) Lack of a positive response to a ticket.

(c) A positive response from a facility owner or facility operator indicating the presence of a facility with no marks visible.

(10) If an excavator contacts or damages a facility, the excavator shall provide immediate notice to the facility owner or facility operator.

(11) If an excavator damages a facility resulting in the escape of any flammable, toxic, or corrosive gas or liquid, or endangering life, health, or property, the excavator shall call 9-1-1 and provide immediate notice to the facility owner or facility operator. The excavator shall also take reasonable measures to protect the excavator, those in immediate danger, the general public, and the environment until the facility owner or facility operator, or emergency first responders, have arrived and taken control of the site.

(12) An excavator shall provide prompt emergency notice to the notification system for any proposed excavation or blasting in an emergency. In an emergency, blasting or excavation required to address the conditions of the emergency may be performed as the emergency conditions reasonably require, subject to the provisions in this act for emergency notice and marking facilities in response to an emergency notice.

(13) If the location of a proposed excavation or blasting cannot be described in a manner sufficient to enable the facility owner or facility operator to ascertain the precise tract or parcel involved, an excavator shall provide white lining in advance of submitting a ticket or additional assistance to the facility owner or facility operator on reasonable request to identify the area of the proposed excavation or blasting.

(14) For purposes of this section, notice to the notification system constitutes notice to all facility owners or facility operators regarding facilities located in the area of the proposed excavation or blasting.

(15) Except as otherwise provided in this act, an excavator may conduct excavation in a safe zone using power equipment without establishing the precise location of any facilities.

Sec. 6. (1) The notification system shall receive dig notice notification of proposed excavation and blasting activities and promptly transmit a ticket to facility owners or facility operators of facilities in the area of the proposed excavation or blasting. The notification system shall provide alternative means of access and notification to the system. Except for

5ESB 540

shutdowns caused by acts of nature, war, or terrorism, the notification system shall be available 24 hours per day, 7 days per week.

(2) The notification system shall publicize the availability and use of the notification system and educate the public, governmental agencies, excavators, farm operators, facility owners, and facility operators regarding the practices and procedures of the notification system, the requirements of this act, and practices to protect underground facilities from damage.

(3) The notification system shall administer a positive response system to allow excavators to determine whether all of the facility owners or facility operators in the area have responded to a ticket and whether a particular facility owner or facility operator does not have facilities in the area of a proposed excavation or blasting.

(4) The notification system shall maintain adequate records of its notification activity for a period of 6 years after the date of the notice, including voice recordings of calls. The notification system shall provide copies of those records to any interested person upon written request and payment of a reasonable charge for reproduction and handling as determined by the notification system.

(5) The notification system shall expedite the processing of any emergency notice it receives under this act.

(6) The notification system shall receive design tickets under the procedures described in section 6a and transmit them to facility owners or facility operators.

Sec. 6a. (1) The notification system shall establish reasonable procedures, including marking response times, for design ticket notification to facility owners or facility operators of requests for project design or planning services to determine the type, size, and general location of facilities during the planning and design stage of a construction or demolition project. Facility owners or operators may charge the person requesting project design or planning services separate fees for design or planning services.

(2) Procedures under this section do not affect or alter the obligation of excavators to provide notice of blasting or excavation under section 5.

(3) The response to a design ticket is to provide general information regarding the location of underground facilities, not to mark any facilities. However, if a facility owner or operator does not have drawings or records that show the location of a facility, the facility owner or operator shall mark that facility under the procedures described in section 7. A design ticket or information provided in response to a design ticket does not satisfy the requirement under this act for excavation or blasting notice to the notification system or marking the approximate location of facilities for blasting or excavation.

Sec. 7. (1) A facility owner or facility operator shall respond to a ticket by the start date and time for the excavation or blasting under section 5(1) by marking its facilities in the area of the proposed excavation or blasting in a manner that permits the excavator to employ soft excavation to establish the precise location of the facilities.

(2) A facility owner or facility operator shall mark the location of each facility with paint, stakes, flags, or other customary methods using the uniform color code of the American national standards institute as follows:

(a) White - used by excavators to mark a proposed excavation or blasting area.

(b) Pink - temporary survey markings.

(c) Red - electric power lines, cables, conduit, and lighting cables.

(d) Yellow - gas, oil, steam, petroleum, or gaseous materials.

(e) Orange - communication, cable television, alarm or signal lines, cables, or conduit.

(f) Blue - potable water.

(g) Purple - reclaimed water, irrigation, and slurry lines.

(h) Green - sewers and drain lines.

(3) A facility owner or facility operator shall provide notification to the notification system using positive response.

(4) Upon receiving a notification during business hours from an excavator through the notification system of previous marks being covered or destroyed, a facility owner or facility operator shall mark the location of a facility within 24 hours, excluding all hours on nonbusiness days.

(5) If a facility owner or facility operator receives a request under section 5(8) or (9), that facility owner or facility operator shall provide additional assistance to an excavator within 3 hours of a request made by the excavator during business hours. An excavator and a facility owner or facility operator may agree to an extension of the time for additional assistance. If a request for additional assistance is made at a time when the additional assistance cannot be provided during normal business hours or assistance is required at a remote rural location, the response time shall be no later than 3 hours after the start of the next business day or a time based on mutual agreement.

(6) If a facility owner or facility operator receives notice that a facility has been damaged, that facility owner or facility operator shall promptly dispatch personnel to the area.

6ESB 540

(7) A facility owner or facility operator shall respond within 3 hours to an emergency notice, or before the start day and time provided in an emergency notice if that start day and time is more than 3 hours from the time of notice.

(8) New facilities built after the effective date of this act shall be constructed in a manner that allows their detection when in use.

(9) This section does not apply to the state transportation department or to the marking of a county or intercounty drain by a county drain commissioner’s office or drainage board.

Sec. 8. This act does not limit the right of an excavator, facility owner, or facility operator to seek legal relief and recovery of actual damages incurred and equitable relief in a civil action arising out of a violation of the requirements of this act, or to enforce the provisions of this act, nor shall this act determine the level of damages or injunctive relief in any such civil action. This section does not affect or limit the availability of any contractual or legal remedy that may be available to an excavator, facility owner, or facility operator arising under any contract to which they may be a party.

Sec. 9. (1) The notification system and its officers, agents, or employees are not liable for any damages, including damages for injuries or death to persons or damage to property, caused by its acts or omissions in carrying out the provisions of this act. The notification system is not responsible for assuring performance by a facility owner or facility operator of its obligation to participate in the notification system under section 4(4).

(2) An excavator or a farmer engaged in farming operations that complies with this act is not responsible for damages that occur to a facility that is improperly marked, not marked, or determined to be within the safe zone.

(3) An owner of a farm who complies with this act is not liable for any damages to a facility if the damage occurred in the course of farming operations, except in those lands within the public right-of-way, unless the owner intentionally damaged the underground facility or acted with wanton disregard or recklessness in damaging the facility. As used in this subsection, “owner” includes a family member, employee, or tenant of the owner.

Sec. 10. This act does not authorize, affect, or impair local ordinances, charters, or other provisions of law requiring permits to be obtained before excavating or tunneling in a public street or highway or to construct or demolish buildings or other structures on private property. A permit issued by a governmental agency does not relieve a person from the responsibility of complying with this act. The failure of any person who has been granted a permit to comply with this act does not impose any liability upon the governmental agency issuing the permit.

Sec. 11. (1) A person who engages in any of the following conduct is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $5,000.00, or both:

(a) Knowingly damages an underground facility and fails to promptly notify the facility owner or facility operator.(b) Knowingly damages an underground facility and backfills the excavation or otherwise acts to conceal the damage.(c) Willfully removes or otherwise destroys stakes or other physical markings used to mark the approximate location

of underground facilities unless that removal or destruction occurs after the excavation or blasting is completed or as an expected consequence of the excavation or blasting activity.

(2) Upon complaint filed with the commission or upon the commission’s own motion, following notice and hearing, a person, other than a governmental agency, who violates any of the provisions of this act may be ordered to pay a civil fine of not more than $5,000.00 for each violation. In addition to or as an alternative to any fine, the commission may require the person to obtain reasonable training to assure future compliance with this act. Before filing a complaint under this subsection, a person shall attempt to settle the dispute with the adverse party or parties using any reasonable means of attempted resolution acceptable to the involved parties. In determining the amount of any fine, the commission shall consider all of the following:

(a) The ability of the person charged to pay or continue in business.(b) The nature, circumstances, and gravity of the violation.(c) Good-faith efforts by the person charged to comply with this act.(d) The degree of culpability of the person charged and of the complainant.(e) The history of prior violations of the person charged.(3) A commission determination under subsection (2) shall not be used against a party in any action or proceeding

before any court. A complaint filed under subsection (2) does not limit a person’s right to bring a civil action to recover damages that person incurred arising out of a violation of the requirements of this act.

(4) The commission shall develop forms with instructions and may promulgate administrative rules for processing complaints under this act, pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

(5) Not later than October 1, 2014, the commission shall establish requirements for reporting incidents involving damage to underground facilities.

(6) Beginning April 1, 2015, the commission shall maintain information on damaged facilities reported under subsection (5), including, but not limited to, any damage that occurs during excavation, digging, or blasting that is excluded from the definition of excavation under section 3(m). The commission shall make any information maintained under this subsection publicly available on its website.

7ESB 540

Sec. 12. (1) Except as provided in this section, this act does not affect the liability of a governmental agency for damages for tort or the application of 1964 PA 170, MCL 691.1401 to 691.1419.

(2) A facility owner or a facility operator may file a complaint with the commission seeking a civil fine and, if applicable, damages from a governmental agency under this section for any violation of this act.

(3) After notice and a hearing on a complaint under subsection (2), the commission may order the following, as applicable:

(a) If the commission has not issued an order against the governmental agency under this section within the preceding 12 months, a civil fine of not more than $5,000.00. In determining the amount of the fine, the commission shall consider the factors in section 11(2).

(b) If the commission has issued an order under subdivision (a) against the governmental agency within the preceding 12 months, both of the following:

(i) A civil fine of not more than $10,000.00. In determining the amount of the fine, the commission shall consider the factors in section 11(2).

(ii) That the governmental agency provide at its expense underground facility safety training to all its personnel involved in underground utility work or excavating.

(c) If the commission has issued an order under subdivision (b) against the governmental agency within the preceding 12 months, both of the following:

(i) A civil fine of not more than $15,000.00. In determining the amount of the fine, the commission shall consider the factors in section 11(2).

(ii) If the violation of this act by the governmental agency caused damage to the facilities of the facility owner or facility operator, that the governmental agency pay to the owner or operator the cost of repair of the facilities.

(4) A party to a complaint filed under this section or section 11 may file an appeal of a commission order issued under this section or section 11 in the Ingham county circuit court.

(5) This section does not apply if the violation of this act was a result of action taken in response to an emergency.(6) A finding by the commission under this section is not admissible in any other proceeding or action.(7) A civil fine ordered under this act shall be paid to the commission and used for underground facilities safety

education and training.(8) Each day upon which a violation described in this act occurs is a separate offense.

Sec. 13. An individual engaged in a farming operation on a farm shall comply with this act beginning May 1, 2014.

Enacting section 1. 1974 PA 53, MCL 460.701 to 460.718, is repealed.

Enacting section 2. This act takes effect April 1, 2014.

Enacting section 3. This act does not take effect unless Senate Bill No. 539 of the 97th Legislature is enacted into law.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor

STATE OF MICHIGAN97TH LEGISLATURE

REGULAR SESSION OF 2013

Introduced by Senator Nofs

ENROLLED SENATE BILL No. 539AN ACT to amend 1964 PA 170, entitled “An act to make uniform the liability of municipal corporations, political

subdivisions, and the state, its agencies and departments, officers, employees, and volunteers thereof, and members of certain boards, councils, and task forces when engaged in the exercise or discharge of a governmental function, for injuries to property and persons; to define and limit this liability; to define and limit the liability of the state when engaged in a proprietary function; to authorize the purchase of liability insurance to protect against loss arising out of this liability; to provide for defending certain claims made against public officers, employees, and volunteers and for paying damages sought or awarded against them; to provide for the legal defense of public officers, employees, and volunteers; to provide for reimbursement of public officers and employees for certain legal expenses; and to repeal acts and parts of acts,” by amending section 7 (MCL 691.1407), as amended by 2005 PA 318.

The People of the State of Michigan enact:

Sec. 7. (1) Except as otherwise provided in this act, a governmental agency is immune from tort liability if the governmental agency is engaged in the exercise or discharge of a governmental function. Except as otherwise provided in this act, this act does not modify or restrict the immunity of the state from tort liability as it existed before July 1, 1965, which immunity is affirmed.

(2) Except as otherwise provided in this section, and without regard to the discretionary or ministerial nature of the conduct in question, each officer and employee of a governmental agency, each volunteer acting on behalf of a governmental agency, and each member of a board, council, commission, or statutorily created task force of a governmental agency is immune from tort liability for an injury to a person or damage to property caused by the officer, employee, or member while in the course of employment or service or caused by the volunteer while acting on behalf of a governmental agency if all of the following are met:

(a) The officer, employee, member, or volunteer is acting or reasonably believes he or she is acting within the scope of his or her authority.

(b) The governmental agency is engaged in the exercise or discharge of a governmental function.

(c) The officer’s, employee’s, member’s, or volunteer’s conduct does not amount to gross negligence that is the proximate cause of the injury or damage.

(3) Subsection (2) does not alter the law of intentional torts as it existed before July 7, 1986.

(4) This act does not grant immunity to a governmental agency or an employee or agent of a governmental agency with respect to providing medical care or treatment to a patient, except medical care or treatment provided to a patient in a hospital owned or operated by the department of community health or a hospital owned or operated by the department of corrections and except care or treatment provided by an uncompensated search and rescue operation medical assistant or tactical operation medical assistant.

(66)

ESB 539

Act No. 173Public Acts of 2013

Approved by the GovernorNovember 26, 2013

Filed with the Secretary of StateNovember 26, 2013

EFFECTIVE DATE: April 1, 2014

2ESB 539

(5) A judge, a legislator, and the elective or highest appointive executive official of all levels of government are immune from tort liability for injuries to persons or damages to property if he or she is acting within the scope of his or her judicial, legislative, or executive authority.

(6) A guardian ad litem is immune from civil liability for an injury to a person or damage to property if he or she is acting within the scope of his or her authority as guardian ad litem. This subsection applies to actions filed before, on, or after May 1, 1996.

(7) The immunity provided by this act does not apply to liability of a governmental agency under the MISS DIG underground facility damage prevention and safety act.

(8) As used in this section:

(a) “Gross negligence” means conduct so reckless as to demonstrate a substantial lack of concern for whether an injury results.

(b) “Search and rescue operation” means an action by a governmental agency to search for, rescue, or recover victims of a natural or manmade disaster, accident, or emergency on land or water.

(c) “Search and rescue operation medical assistant” means an individual licensed to practice 1 or more of the occupations listed in subdivision (e), acting within the scope of the license, and assisting a governmental agency in a search and rescue operation.

(d) “Tactical operation” means a coordinated, planned action by a special operations, weapons, or response team of a law enforcement agency that is 1 of the following:

(i) Taken to deal with imminent violence, a riot, an act of terrorism, or a similar civic emergency.

(ii) The entry into a building, area, watercraft, aircraft, land vehicle, or body of water to seize evidence, or to arrest an individual for a felony, under the authority of a warrant issued by a court.

(iii) Training for the team.

(e) “Tactical operation medical assistant” means an individual licensed to practice 1 or more of the following, acting within the scope of the license, and assisting law enforcement officers while they are engaged in a tactical operation:

(i) Medicine, osteopathic medicine and surgery, or as a registered professional nurse, under article 15 of the public health code, 1978 PA 368, MCL 333.16101 to 333.18838.

(ii) As an emergency medical technician, emergency medical technician specialist, or paramedic under part 209 of the public health code, 1978 PA 368, MCL 333.20901 to 333.20979.

Enacting section 1. This amendatory act takes effect April 1, 2014.

Enacting section 2. This amendatory act does not take effect unless Senate Bill No. 540 of the 97th Legislature is enacted into law.

This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor

Purchase from Detroit 2010 2011 2012 2013

Buchanan 0.00 0.00 0.00 0.00

Lamb 0.00 0.00 0.00 0.00

Shafter 0.68 0.00 1.22 0.00

12 Mile 9.30 8.52 11.04 9.39

14 Mile 8.82 10.04 5.56 8.31

16 Mile (10") 0.00 0.00 0.00 0.00

16 Mile (2") 0.00 0.00 0.00 0.00

Bloomfield Hills 0.60 0.62 0.63 0.72

Bloomfield Twp 0.00 2.94 3.09 3.43

Total: 19.40 22.12 21.54 21.85

Sold by Authority

Berkley 1.03 1.03 0.91 0.92

Beverly Hills 0.87 0.72 0.74 0.76

Bingham Farms 0.16 0.16 0.14 0.14

Birmingham 1.87 1.85 1.84 1.92

Bloomfield Hills 0.60 0.62 0.63 0.72

Bloomfield Twp 0.00 2.94 3.09 3.43

Clawson 0.76 0.72 0.72 0.69

Huntington Woods 0.41 0.39 0.39 0.40

Lathrup Village 0.25 0.36 0.38 0.31

Pleasant Ridge 0.19 0.18 0.18 0.18

Royal Oak 4.55 4.65 4.75 4.42

Southfield 8.51 8.50 7.66 7.81

Detroit (Zoo & Rackham) 0.25 0.27 0.17 0.19

Total: 19.45 22.39 21.60 21.89

Water Sales Over or Under Water Purchased 0.05 0.27 0.06 0.04

Per Cent 0.26% 1.22% 0.28% 0.18%

SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY

WATER CONSUMPTION

AVERAGE M.G. PER DAY

DECEMBER

8-A

SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY

BUDGET ANALYSIS

December-13

BUDGET ACTUAL VARIANCES

REVENUES

OPERATION

SALE OF WATER $1,027,900.00 $1,021,444.28 ($6,455.72)

SALE OF WATER OTHERS 374,000.00 422,051.02 48,051.02

$1,401,900.00 $1,443,495.30 $41,595.30

OTHER INCOME

RENTALS $30,000.00 $8,198.00 ($21,802.00)

WATER ANALYSIS-LAB & MISC 1,000.00 0.00 (1,000.00)

GRANT REVENUE 3,000.00 0.00 (3,000.00)

INTEREST ON INVESTMENTS 2,000.00 3,449.39 1,449.39

$36,000.00 $11,647.39 ($24,352.61)

TOTAL REVENUES $1,437,900.00 $1,455,142.69 $17,242.69

EXPENSES

WATER PURCHASED FOR RESALE $1,944,000.00 $1,760,640.60 ($183,359.40)

POWER,PUMPING & GROUNDS WEBSTER 51,596.27 61,822.48 10,226.21

POWER,PUMPING & GROUNDS 24,469.83 27,938.19 3,468.36

COMPUTER OPERATIONS 5,316.63 7,499.82 2,183.19

PURIFICATION 5,108.00 7,833.31 2,725.31

METERS & MAINS 9,220.34 10,479.03 1,258.69

ADMINISTRATIVE & GENERAL 97,545.00 249,049.19 151,504.19

BOND INTEREST 0.00 0.00 0.00

$2,137,256.07 $2,125,262.62 ($11,993.45)

REVENUES OVER EXPENSES ($699,356.07) ($670,119.93) $29,236.14

8-B

SOUTHEASTERN OAKLAND COUNTY WATER AUTHORITY

BUDGET ANALYSIS

July 1, 2013 THROUGH December 31, 2013

BUDGET ACTUAL VARIANCES

REVENUES

OPERATION

SALE OF WATER MEMBERS $8,460,200.00 $7,558,921.47 ($901,278.53)

SALE OF WATER OTHERS 5,356,000.00 4,246,817.31 ($1,109,182.69)

$13,816,200.00 $11,805,738.78 ($2,010,461.22)

OTHER INCOME

RENTALS $53,000.00 $27,594.00 ($25,406.00)

WATER ANALYSIS-LAB & MISC 5,000.00 550.00 (4,450.00)

GRANT REVENUE 9,000.00 0.00 (9,000.00)

INTEREST ON INVESTMENTS 12,000.00 23,901.63 11,901.63

$79,000.00 $52,045.63 ($26,954.37)

TOTAL REVENUES $13,895,200.00 $11,857,784.41 ($2,037,415.59)

EXPENSES

WATER PURCHASED FOR RESALE $6,509,000.00 $5,654,856.02 ($854,143.98)

WATER PURCHASE IN TRANSIT 4,494,000.00 4,459,333.12 (34,666.88)

POWER,PUMPING & GROUNDS WEBSTER 311,706.47 267,332.49 (44,373.98)

POWER,PUMPING & GROUNDS 143,919.98 100,861.13 (43,058.85)

COMPUTER OPERATIONS 33,449.98 34,570.40 1,120.42

PURIFICATION 32,325.00 38,806.15 6,481.15

METERS & MAINS 57,825.04 49,366.80 (8,458.24)

ADMINISTRATIVE & GENERAL 546,068.75 598,312.69 52,243.94

BOND INTEREST 28,881.25 28,881.25 0.00

$12,157,176.47 $11,232,320.05 ($924,856.42)

REVENUES OVER EXPENSES $1,738,023.53 $625,464.36 ($1,112,559.17)

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tation W

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31000 W

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Ave.

RO

-40.5

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0.4

0A

0.4

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0.4

0A

Gold

en B

asket

32286 W

oodw

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Ave.

RO

-50.7

0A

0.7

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0.8

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0.7

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Bra

kes &

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2400 1

4 M

ile R

d.

RO

-60.8

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0.7

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0.7

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0.7

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McD

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’s3300 R

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RO

-70.8

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0.7

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0.8

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0.7

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How

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940 C

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RO

-80.7

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0.7

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0.7

0A

0.7

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22111 G

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-10.7

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0.8

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0.8

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0.8

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Top V

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-20.7

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0.7

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27000 8

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-30.7

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0.7

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0.7

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24945 T

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-40.7

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hw

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-50.7

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0.8

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0.7

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0.8

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29285 S

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field

Rd.

SO

-60.8

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0.8

0A

0.8

0A

0.8

0A

Mid

as M

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26969 G

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-70.8

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0.7

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0.8

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0.7

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OC

RC

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27900 C

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SO

-80.7

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0.7

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0.7

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JA

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Wash

28845 T

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-90.6

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224 L

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21101 G

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0.2

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0.2

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3910 W

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WA

-30.7

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0.8

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0.8

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0.8

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24570 W

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24570 W

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-70.6

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16111 W

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-80.7

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2721 S

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2443 O

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0.8

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24250 W

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TA

L

1980

0.7

81.1

63.6

04.0

33.5

34.2

71.4

55.9

64.7

51.4

00.8

52.4

334.2

1

1981

0.4

73.2

00.6

23.8

52.3

51.7

83.8

51.8

57.7

04.0

50.9

52.2

032.8

7

1982

3.0

60.9

97.8

71.5

32.6

13.5

02.6

81.0

92.5

20.5

65.4

83.0

934.9

8

1983

0.9

81.4

91.9

23.9

84.8

55.1

04.0

81.6

21.6

32.5

73.9

33.1

635.3

1

1984

2.6

71.2

63.8

21.9

14.1

10.9

52.0

64.2

63.0

41.9

12.8

83.1

432.0

1

1985

3.9

03.7

04.6

00.9

53.6

61.6

84.3

74.0

21.4

53.3

05.1

01.1

337.8

6

1986

1.6

82.7

31.7

41.9

12.1

04.6

22.7

93.1

05.4

82.4

80.9

51.9

531.5

3

1987

1.5

50.5

81.9

02.0

31.6

13.1

84.3

05.3

12.3

02.0

02.8

02.8

030.3

6

1988

0.6

01.5

30.4

01.4

01.0

00.5

52.8

02.0

53.2

53.4

32.6

10.8

020.4

2

1989

0.7

10.3

51.3

01.2

52.2

23.8

52.1

51.3

95.5

31.4

52.8

00.5

023.5

0

1990

1.5

24.1

81.4

01.9

53.0

02.2

52.0

34.3

03.9

03.7

02.3

53.4

033.9

8

1991

0.9

00.4

51.3

71.6

55.4

61.7

91.9

23.3

60.7

23.6

42.6

52.0

525.9

6

1992

1.3

51.2

42.9

82.7

50.8

52.0

56.4

02.3

03.1

01.9

54.2

01.8

030.9

7

1993

3.6

40.8

21.1

52.8

01.2

04.9

12.0

52.8

55.8

51.7

51.5

00.4

528.9

7

1994

2.1

50.5

52.2

02.7

00.7

05.2

11.3

02.7

71.2

02.3

33.0

22.2

026.3

3

1995

1.3

20.8

51.1

52.0

52.8

02.2

54.4

54.1

51.0

03.2

53.0

50.9

527.2

7

1996

1.4

51.3

01.0

03.7

53.3

04.2

01.8

50.4

04.4

52.2

02.1

51.3

027.3

5

1997

1.4

52.7

53.1

50.8

54.5

51.5

52.2

01.9

03.4

52.1

50.5

01.3

025.8

0

1998

2.8

02.8

54.6

02.8

61.6

51.7

52.8

06.8

51.0

02.0

51.0

01.4

531.6

6

1999

3.7

51.3

00.5

53.8

52.8

04.5

52.6

51.4

02.6

00.6

01.4

52.7

028.2

0

2000

1.3

00.5

01.0

53.2

04.2

55.0

04.1

02.5

54.3

52.0

01.0

52.7

032.0

5

2001

0.1

22.7

00.3

02.9

84.5

02.3

02.1

01.6

54.0

06.6

51.7

01.5

530.5

5

2002

1.5

51.4

51.1

00.6

51.9

01.0

54.3

50.7

02.8

50.9

62.0

00.9

019.4

6

2003

0.2

50.2

01.2

52.0

54.7

04.6

50.5

02.4

03.2

02.1

03.6

02.3

027.2

0

2004

2.6

00.4

02.4

00.0

56.8

02.3

02.7

03.7

00.8

01.6

52.4

53.0

028.8

5

2005

2.5

03.1

00.5

51.7

00.7

01.5

03.2

00.6

52.9

50.3

03.9

51.6

022.7

0

2006

2.5

00.9

52.9

52.0

55.2

03.3

01.6

01.9

02.5

62.9

03.0

03.4

032.3

1

2007

3.3

00.6

54.9

02.2

52.6

02.7

51.0

04.5

51.2

02.3

51.9

04.7

532.2

0

2008

2.4

03.9

01.9

00.4

01.9

53.8

53.0

50.2

76.5

51.8

03.1

54.0

533.2

7

2009

2.8

51.9

56.3

16.8

53.3

53.2

01.5

54.0

01.5

62.8

50.2

02.8

037.4

7

2010

0.8

01.6

50.6

71.8

04.3

03.4

04.9

50.2

52.7

02.2

04.3

00.7

027.7

2

2011

2.2

05.7

53.2

05.2

05.4

02.4

03.4

03.3

07.8

03.2

05.6

03.1

050.5

5

2012

2.6

00.4

02.1

00.5

01.1

00.9

03.8

04.3

02.0

01.7

00.7

20.0

020.1

2

AV

G.

1.8

71.7

22.3

02.3

63.0

62.9

32.8

62.7

63.2

62.3

52.5

42.1

130.1

2

2013

1.9

02.1

01.0

05.1

02.1

04.6

03.0

03.3

02.0

03.1

02.4

03.6

0

8-E