Clark Hill                                                                             February 18, 2011

                         

 

Municipal Law Alert

Land Use

2010 PA 330.

Public Act 330 amends the Michigan Zoning Enabling Act by clarifying the deadline to appeal a decision of a zoning board of appeals to the circuit court:  30 days after the ZBA issues its signed written decision or 21 days after the ZBA approves its meeting minutes, whichever occurs first.

2010 PA 305.

Public Act 305 amends the Michigan Zoning Enabling Act to require the consideration of public transportation in newly adopted or substantially amended zoning ordinances.  Under Public Act 305, zoning ordinances adopted or substantively amended 90 days or more after the Act's effective date must include provisions to recognize and accommodate public transportation.

Planning Enabling Act/2010 PA 134.

PA 134 amends the Michigan Planning Enabling Act by: 1) modifying the definition of "streets" to address bicyclists and pedestrians; 2) expanding the items that may be included within a master plan to encompass non-motorized transportation; 3) requiring that non-motorized transportation improvements be identified within a master plan; and 4) ensuring that transportation components of a master plan are implemented in cooperation with applicable state and county authorities.

SB 0048.

This bill proposes to amend the Revised School Code to prohibit a public school board from building or expanding (expansion resulting in the square footage of the building being increased by at least 20%) certain school building without first obtaining site plan recommendations from the local unit of government. 

Adjacent roadway improvements held as permissible condition of PUD approval.

In City/Village of Douglas v Von Der Heide (2010 Mich App LEXIS 2219, Case No. 292948), the City approved a proposed condominium planned unit development ("PUD") contingent upon the developer reconstructing a dirt roadway adjacent to the PUD.  The developer agreed but the reconstructed roadway was built below specifications.  The developer claimed the City lacked authority to compel roadway improvements.  The Court of Appeals held that the City had the authority under the MZEA to impose "reasonable conditions" on a PUD approval and determined that a "reasonable condition" is a fair and proper condition under the circumstances that relates to a legitimate governmental purpose.  The court determined that improvement to the roadway was necessary to ensure that police, fire and emergency services had access to the condominium development.  The court recognized that the reconstructed road was insufficient. 

Economic Development

2010 PA 272.

Public Act 272 creates the Next Michigan Act, which allows five regions (counties and communities) to join together in an interlocal agreement which can use core community economic development tools to attract businesses.  The tools include renaissance zones, personal property tax abatements, IFT's, and LDFA's.  The Act only allows 25 businesses to be qualified as Next Michigan businesses, and specifies that each Next Michigan Development Area may only have a maximum of 10 qualified businesses. 

HB 4148.

This bill proposes to create the Delinquent Special Assessment Revolving Loan Fund Act to provide for the establishment of a $5 million special assessment revolving loan fund within the state treasury.  Eligible municipalities may apply for a loan from the fund on a first come/first serve basis.  An "Eligible Municipality" is a city, village, township or county that: (1) has issued bonds, or has pledged its full faith and credit for bonds, for infrastructure improvements financed by a special assessment; and (2) is unable to make necessary payments on those bonds because special assessment payments on properties benefited by the infrastructure improvements have been delinquent for 6 months or more.

Transportation

"Complete Streets"/2010 PA 135.

PA 135 amends the State Trunk Line Highway System Act ("Act 51") to require the State Transportation Commission to adopt a "Complete Streets" policy and to make model policies available to municipalities and counties.  Once the Complete Streets policy is adopted by MDOT, prior to undertaking a road improvement project state and local road agencies will be required to consult with each other and agree on how best to incorporate non-motorized transportation into the project. 

Elections

The legislature recently enacted a number of amendments to the Michigan Election Law.  Generally, the amendments require that city primary elections previously set in September of odd-numbered years be set at the odd-year primary election in August.  The aim of the amendments is to hold primary elections in some cities a month earlier in order to give election officials the time needed to prepare general election ballots so that absentee ballots will reach overseas and military voters on time.  Additionally, the amendments provide clarification to the election requirements for village offices.

2010 PA 182.

PA 182 amends the Michigan Election Law to specify that after December 31, 2010, a city that adopted a resolution so that its regular election primary was held at the September election would be required to hold its regular election primary at the odd-year primary election in August.

2010 PA 183.

PA 183 amends the Michigan Election Law by deleting the deadline for filing a nominating petition for a city's September primary election.  Additionally, the Act amends the Election Law to apply a filing deadline to a February primary, instead of an August primary (4 p.m. on the 12th Tuesday before the August primary), and deletes reference to political parties on a city office election ballot.

2010 PA 181.

PA 181 amends the Michigan Election Law to define "September election" with respect to the election of village offices to mean the election held on the first Tuesday after the second Monday in September in an odd-year.

2010 PA 184.

PA 184 amended the Michigan Election Law to refer to a village's September election, rather than September primary election, in regard to a nominating petition deadline.  Prior to the passage of PA 184, if a village council adopted a resolution to hold its regular election at the September primary election, the nominating petitions for village offices had to be filed with the village clerk by 4 p.m. on the 12th Tuesday before the September primary election.  PA 184  deletes "primary" from those requirements, so that they would apply instead to a "September election."

Local Government

HB 4117.

This bill proposes to amend the Charter Township Act to provide alternative publication methods for a charter township required to publish a legal notice in a newspaper of general circulation, including posting the notice on a website or on the township's cable access station.

SB 0090.

This bill proposes to amend the Glenn Steil State Revenue Sharing Act by requiring that after September 30, 2011, 25.06% of 21.3% of the state sales tax collections at a rate of 4% shall be distributed to counties on a per capita basis and that after September 30, 2011, 74.94% of 21.3% of state sales tax collections at a rate of 4% shall be distributed to cities, villages and townships on a per capita basis.

Open Meetings Act

Court refuses to expand the definition of "deliberations".

 

In Mandich v Owendale Gagetown Area Schools (2010 Mich App LEXIS 2384, Case No. 294264), the school board's finance committee, comprised of 3 board members, met with the school's auditor and superintendent before a regular meeting of the school board to hear the auditor's presentation without questioning or discussing the presentation.  Afterwards the auditor gave an identical presentation to the entire board at its regular meeting and the board formally accepted the audit.  A former board member alleged that the committee "deliberated" during its meeting by receiving information about the audit which allowed it to reflect on issues related to the audit.  The Court of Appeals upheld its narrow definition of "deliberations" under the OMA as the exchanging of affirmative or opposing views, debating a matter or engaging in a discussion about a matter.  The court held that because the finance committee had not discussed the presentation or otherwise engaged in any "deliberations", the committee meeting was not governed by the OMA, so notice of the meeting was not required.

Special Assessment

Public improvements not always a benefit.

In Michigan Adventure, Inc v Dalton Township (278 Mich App 151 (2010)), the township sought to install a sewer line across Michigan Adventure's property in coordination with a regional wastewater treatment system and planned to specially assess the property to fund the project.  Michigan Adventure used its own onsite wastewater stabilization lagoons.  The sewer line did not benefit the property because Michigan Adventure's onsite disposal system was fully operational and inexpensive to maintain while the new line would be a significant cost to Michigan Adventure.  The sewer line also would not benefit future property values in the largely rural area.  The Court of Appeals upheld the Tax Tribunal's vacation of the special assessment for a failure to confer a benefit.  The court also held that Michigan Adventure's verbal objection at the public hearing on the special assessment roll was sufficient and that a written objection was unnecessary under MCL 123.743.

Wastewater Treatment Agreement

Former federal grants do not preclude a city from terminating a wastewater treatment agreement according to the agreement's terms.

In Charter Township of Haring v City of Cadillac (2010 Mich App LEXIS 1919; Case No. 292122), the City of Cadillac and the townships of Haring, Selma and Clam Lake entered into an agreement for wastewater treatment services for the payment of an initial fee and annual service charges.  By its terms, the agreement expires on May 12, 2017.  The city notified the townships that it would not be renewing the agreement after its expiration.  The townships claimed the City had an ongoing obligation to provide wastewater treatment services regardless of the agreement's term provision.  The townships argued that the federal grant received by the city to construct the treatment plant compelled the city to provide treatment services to the townships for the "design life" of the facility (estimated at 75 years).  Additionally, the townships claimed that the initial fee and service charges paid over the course of the agreement (originally executed in 1975) provided contractual ownership of, and title to, a portion of the capacity of the city's wastewater system.  The Court of Appeals held that the federal grant received by the city obligated it to construct the treatment plant, which it had done, without creating any ongoing obligation.  The court held that the federal grant had no impact upon the underlying agreement or its terms.  In its interpretation of the agreement, the court held that its terms provided a right to the townships to utilize a portion of the city's treatment plant for a fixed period; akin to a lease, and that the townships did not acquire any ownership interest in the facility.  Finally, the court held that Michigan law provided the city with the discretionary authority to provide treatment services beyond its borders for a fixed term, but it did not require the city to do so.

Medical Marihuana

Non-registered patients can invoke the Michigan Medical Marihuana Act (the "Act") as a defense, but the required doctor-patient relationship may be challenged.

In Michigan v Redden (2010 Mich App LEXIS 1671; Case No. 295809), two individuals were growing and using marihuana based upon a doctor's recommendation.  Although the doctor was licensed in Michigan, he did not maintain an office in the state and estimated that he had met with each individual for approximately one-half hour before recommending their use of marihuana.  While both had applied for a registration card as qualified patients under the Act, neither had been registered by the state.  Police raided the property and charged both individuals with manufacturing marihuana.  Based upon a strict interpretation of the Act, the Court of Appeals held that the individuals could raise the Act as a defense to prosecution even though they weren't registered when the police raided the property.  However, because the Act requires a "bono-fide" doctor-patient relationship, the court determined that the prosecution could challenge the existence of such a relationship under the facts of the case.  Although the court's opinion is limited, Judge O'Connell's concurring opinion is very instructional.  In his concurrence, the Judge expressed his belief that growing cooperatives are not permitted and that the Act was not approved or designed to provide entrepreneurial opportunities.  Judge O'Connell goes on to dissect the Act summarizing its numerous defects while making a convincing case for the legislature to provide guidance on its implementation.

 

Natural Resources and Environmental Protection Act (the "NREPA)

Without causation, the NREPA does not empower the DNRE to require a municipality to install a sanitary sewer system.

In Department of Environmental Quality v Township of Worth (2010 Mich App LEXIS 1572; Case No. 289724), the MDNRE sought to order the township to install a sanitary sewer system pursuant to Section 3109 of the NREPA (MCL 324.3109) because private septic systems within the township had begin to fail resulting in effluent discharges into Lake Huron.  The township did not comply with the MDNRE's order claiming financial impossibility.  The Court of Appeals held that the NREPA did not impose responsibility upon the township for sewage discharges within its jurisdictional boundaries caused by others.  Accordingly the township was not required to adhere to the MDNRE's order. 

Taxation

Without specific statutory authorization a payment in lieu of taxes was illegal and repayment was required.

In Mercy Services for the Aging v City of Rochester Hills (2010 Mich App LEXIS 2044; Case No. 292569), the Mercy Bellbrook Retirement Community ("Mercy"), a Catholic nonprofit corporation that provided housing and medical care for low and moderate income elderly persons, had paid an annual payment in lieu of taxes ("PILT") to the City of Rochester Hills in accordance with the MSHDAA for a number of years (the MSHDAA requires nonprofit housing corporations to pay the annual service charge).  Mercy claimed it was exempt from payment of the service charge under the General Property Tax Act due to its religious affiliation.  The Court of Appeals held that because Mercy was exempt from property taxation pursuant to MCL 211.7o(7) it had no obligation to pay the PILT.  The court ordered the city to refund Mercy the annual service charge paid from 2002 through 2007. 

If you have any questions regarding any of the above information please contact your Clark Hill municipal attorney.

 

For more information contact:

Scott G. Smith

sgsmith@clarkhill.com

616.608.1109

 

Roger A. Swets

rswets@clarkhill.com
616.608.1110

 

Article Contributor:

Kenneth P. Lane

klane@clarkhill.com

616.608.1134

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