Amend Chapter 17, Add new Article 9 for Universal Water and Sewer Main Line Installation Construction Charges

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1316 COUNTY-CITY $UILDING 227 W. JEFFERSON BOULEVARD SOUTH SEND, INDIANA 46601-1830 CITY OF SOUTH BEND STEPHEN J. LUECKE~ MAYOR DEPARTMENT OF PUBLIC WORKS GARY A. GILOT~ P.E. DIItECTOR OF PUBLIC WORKS November 6, 2001 Ms. Charlotte Pfeiffer, President South Bend Common Council 4`'' Floor, County-City Building South Bend, Indiana 46601 RE: Ordinance -Establishment of Universal Rate Connections to Water and Sewer Lines Dear President Pfeiffer: PHONE 219/235-9251 Fax 219/235-9171 TDD 219/235-5567 The attached Ordinance is a logical outgrowth of recent ordinances dealing with extensions of water and sewer lines. The Common Council had recently enacted ordinances that deal with each specific extension that we have done to the water or sewer system. This leads to slightly different unit prices as well as the timing of the issue of needing to do ordinances before each project to commence construction. The universal rates for connection to water and sewer are based on a review of recent prices for extensions of modest depth and sizes which would be necessary to serve residential developments. We have not included costs associated with our deepest or largest trunk sewers or transmission lines. These increment costs will be borne by all the rate payers of the water and sewer utility, whereas the initial connection cost is to recover a reasonable depth and size of water or sewer line costs. We have established water connection fees per lineal foot and sewer connection fees per square foot, based on lot sizes. The remainder of the ordinance reflects the standard language which you have seen in numerous individual ordinances with one policy exception. We are proposing that the past practice of 10% discount for lump sum payments be continued, but we are proposing the introduction of a below-market interest rate for time payment plans. We are suggesting that this rate vary from year to year as established by the City Controller through the Board of Public Works, and that in all instances the rate for contracts which initiate in the following calendar year would be 2% below the City's prime rate of borrowing, as established on December 1 of the previous calendar year. The interest rate would stay with the contract through the sixty (60) monthly payments and not be ENGINEERING ENVmONMENTAL SERVICES CENTRAL SERVICES STREETS WATER WORKS CARL LITTRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI SAM HENSLEY JOHN I: STANCATI 219/235-9251 219/277-8515 219/235-9316 219/235-9244 219/235-9322 FAx 219/235-9171 Fax 219/277-8980 Fax 219/235-9007 Fax 219/235-9272 Fax 219/235-9728