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HomeMy WebLinkAboutRepealing Sections of Ch 17 Article 10 Regarding Compact Fees and Assessments and Replacing Such Fees and Assessments with System Development ChargesORDINANCE No. 10461 -16 Passed by the Common Council of the City of South Bend, Indiana October 24, 20 16 Attest: Attest: Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by me October 25, Z0 16 OJ-13&f." 16 20 1 President of Common Council City Clerk fT , � ORDINANCE NO. I Q 'f (Q I - I (-V AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA REPEALING CERTAIN SECTIONS OF CHAPTER 17, ARTICLE 10 REGARDING COMPACT FEES AND ASSESSMENTS AND REPLACING SUCH FEES AND ASSESSMENTS WITH SYSTEM DEVELOPMENT CHARGES STATEMENT OF PURPOSE AND INTENT The City of South Bend owns and operates a water and sewer utility. The South Bend City Code has contained, for many years provisions, which would impose compact fees and assessments for water and /or sewer utility service. The application of said compact fees and assessments has been inconsistent. This Council has caused to be prepared a study which recommends system development charges to be imposed upon connection of new customers to its water or sewer utility and to new uses by existing customers that would materially change the demands on the water and /or sewer utility. The City has determined that in place of compact fees for sewer service, the City should instead, recover an outside City surcharge for sewer service. Further, the City has determined that it is appropriate to implement system development charges for both water and sewer service which have been computed using what is known as the "Equity Method." It is appropriate to exempt connections to new structures which replace an older structure of similar use located on the same property. Section 1. Sections 17 -79 of the City Code shall be repealed in its entirety and amended to read as follows: Sec. 17 -79. Wa4er- main lines within City limits; assessment of installation ,.har-ges System Development Charge for Wastewater inside and outside City limits. 1. For purposes of this section "ERU" shall be defined as an equivalent residential unit which means a single family residence. For purposes of customers that are not single family residences, one ERU shall equal estimated wastewater flows of 310 gallons per day. No customer will be less than one ERU. There will be no partial ERU's. The City shall round down to the closest applicable ERU calculation at all times. 2. Except as provided in Subsections 5. and 6. of this Section, for every new connection to the South Bend Municipal Sewer Works, a system development charge of $1,145 shall be collected per ERU and additional portion thereof to be connected. All charges shall be billed by Paid to the Citv at the time the application for service eenneetion is filed. 3. System development charges per ERU shall also be collected from existing customers undertaking activities producing a permanent increase in wastewater flow of greater than 4-50 310 gallons per day. This subsection shall not apply to an existing customer who has, by contract, purchased reserved capacity from the City so long as the customer's flows remain within the reserved capacity. A permanent increase shall be deemed to have occurred when the average flow rate for six (6) consecutive months exceeds the current flow rate by at least 310 gallons per day. 4. For multifamilv structures (e.a., apartments, condominiums, mobile home communities), each individual unit shall be one ERU. For all other types of structures, the ERU calculation shall be based upon the ratio of Average Daily Flow as computed pursuant to 327 IAC 3 -6 -11 in relationship to 310 gallons per day. For structures not listed in 327 IAC 3 -6 -11, the ERU shall be calculated as the relationship between the Average Dailv Flow reported in the sewer capacity certification for the structure and 310 gallons per day. WNTSIF.". -.1-M-M M.. Mmom 1. For purposes of this section "ERU" shall be defined as an equivalent residential unit which means a single family residence. For purposes of customers that are not single family residences, one ERU shall equal estimated wastewater flows of 310 gallons per day. No customer will be less than one ERU. There will be no partial ERU's. The City shall round down to the closest applicable ERU calculation at all times. 2. Except as provided in Subsections 5. and 6. of this Section, for every new connection to the South Bend Municipal Sewer Works, a system development charge of $1,145 shall be collected per ERU and additional portion thereof to be connected. All charges shall be billed by Paid to the Citv at the time the application for service eenneetion is filed. 3. System development charges per ERU shall also be collected from existing customers undertaking activities producing a permanent increase in wastewater flow of greater than 4-50 310 gallons per day. This subsection shall not apply to an existing customer who has, by contract, purchased reserved capacity from the City so long as the customer's flows remain within the reserved capacity. A permanent increase shall be deemed to have occurred when the average flow rate for six (6) consecutive months exceeds the current flow rate by at least 310 gallons per day. 4. For multifamilv structures (e.a., apartments, condominiums, mobile home communities), each individual unit shall be one ERU. For all other types of structures, the ERU calculation shall be based upon the ratio of Average Daily Flow as computed pursuant to 327 IAC 3 -6 -11 in relationship to 310 gallons per day. For structures not listed in 327 IAC 3 -6 -11, the ERU shall be calculated as the relationship between the Average Dailv Flow reported in the sewer capacity certification for the structure and 310 gallons per day. 5. For customers with greater than 20 ERUs as calculated pursuant to subsection 4. of this Section, the ERU shall be adjusted based upon the Peaking Factor as computed herein. The Peaking Factor shall be calculated by dividing the Peak Daily Flow by the Average Daily Flow, both as reported in the sewer capacity certification. In no event will a Peaking Factor less than 2.0 be used for purposes of the adjustment described in this Subsection. The Peaking Factor divided by 4.0 (the Peaking Factor for residential connections) will be multiplied by the number of ERUs for purposes of computing the system development charge owed by the customer. The City Board of Works may execute a contract with the customer authorizing an increase to the initial System Development Charge based upon actual usage data that is collected after connection. 6. Where a prospective customer seeks to connect a new structure on property which replaces a prior structure of a similar use what was located on the same property and which was connected to the South Bend Municipal Sewer Works, no system development charge will be collected. For instance, if the prior structure was a single family structure and the new structure is to be used as a multi - family structure, a system development charge, as contemplated herein this Ordinance, shall be charged. The Board of Public Works shall make the final determination of whether the new property structure is a similar use to the prior property structure for the purposes of this subsection. Section 2. Section 17 -80 of the City Code shall be repealed in its entirety and amended to read as follows: Sec. 17 -80. Water line outside City limits; assessment E) f i sta4 atio,, , har-R�System Development Charge for Water inside and outside City limits. VON .. .. :. 1. For purposes of this section "ERU" shall be defined as an equivalent residential unit which means a single family residence. For purposes of customers that are not single family residences, one ERU shall equal estimated water flows of 310 gallons per day. No customer will be less than one ERU. There will be no partial ERU's. The City shall round down to the closest applicable ERU calculation at all times. 2. Except as provided in Subsections 5. and 6. of this Section, for every new connection to the South Bend Municipal Water Works, a system development charge of $500 shall be collected per ERU and additional portion thereof to be connected. All charges shall be billed by Raid to the Citv at the time the annlication for service couneetion is filed. 3. System development charges per ERU shall also be collected from existing customers undertaking activities producing a permanent increase in water flow of greater than 310 4-50 gallons per day. This subsection shall not apply to an existing customer who has, by contract, purchased reserved capacity from the City so long as the customer's flows remain within the reserved capacity. A permanent increase shall be deemed to have occurred when the average flow rate for six (6) consecutive months exceeds the current flow rate by at least 310 gallons per day. 4. For multifamily structures (e.g., apartments, condominiums, mobile home communities), each individual unit shall be one ERU. For all other types of structures, the ERU calculation shall be based upon the ratio of Average Daily Flow as computed pursuant to 327 IAC 3 -6 -11 in relationship to 310 gallons per day. For structures not listed in 327 IAC 3 -6 -11, the ERU shall be calculated as the relationship between the Average Daily Flow reported in the water capacity certification for the structure and 310 gallons per day. 5. For customers with greater than 20 ERUs as calculated pursuant to subsection 4. of this Section, the ERU shall be adjusted based upon the Peaking Factor as computed herein. The Peaking Factor shall be calculated by dividing the Peak Daily Flow by the Average Daily Flow, both as reported in the water capacity certification. In no event will a Peaking Factor less than 2.0 be used for purposes of the adjustment described in this Subsection. The Peaking Factor divided by 4.0 (the Peaking Factor for residential connections) will be multiplied by the number of ERUs for purposes of computing the system development charge owed by the customer. The MUM 1. For purposes of this section "ERU" shall be defined as an equivalent residential unit which means a single family residence. For purposes of customers that are not single family residences, one ERU shall equal estimated water flows of 310 gallons per day. No customer will be less than one ERU. There will be no partial ERU's. The City shall round down to the closest applicable ERU calculation at all times. 2. Except as provided in Subsections 5. and 6. of this Section, for every new connection to the South Bend Municipal Water Works, a system development charge of $500 shall be collected per ERU and additional portion thereof to be connected. All charges shall be billed by Raid to the Citv at the time the annlication for service couneetion is filed. 3. System development charges per ERU shall also be collected from existing customers undertaking activities producing a permanent increase in water flow of greater than 310 4-50 gallons per day. This subsection shall not apply to an existing customer who has, by contract, purchased reserved capacity from the City so long as the customer's flows remain within the reserved capacity. A permanent increase shall be deemed to have occurred when the average flow rate for six (6) consecutive months exceeds the current flow rate by at least 310 gallons per day. 4. For multifamily structures (e.g., apartments, condominiums, mobile home communities), each individual unit shall be one ERU. For all other types of structures, the ERU calculation shall be based upon the ratio of Average Daily Flow as computed pursuant to 327 IAC 3 -6 -11 in relationship to 310 gallons per day. For structures not listed in 327 IAC 3 -6 -11, the ERU shall be calculated as the relationship between the Average Daily Flow reported in the water capacity certification for the structure and 310 gallons per day. 5. For customers with greater than 20 ERUs as calculated pursuant to subsection 4. of this Section, the ERU shall be adjusted based upon the Peaking Factor as computed herein. The Peaking Factor shall be calculated by dividing the Peak Daily Flow by the Average Daily Flow, both as reported in the water capacity certification. In no event will a Peaking Factor less than 2.0 be used for purposes of the adjustment described in this Subsection. The Peaking Factor divided by 4.0 (the Peaking Factor for residential connections) will be multiplied by the number of ERUs for purposes of computing the system development charge owed by the customer. The City Board of Works may execute a contract with the customer authorizing an increase to the initial System Development Charge based upon actual usage data that is collected after connection. 6. Where a prospective customer seeks to connect a new structure on Property which replaces a prior structure of a similar use what was located on the same property and which was connected to the South Bend Municipal Water Works, no system development charge will be collected. For instance., if the prior structure was a single family structure and the new structure is to be used as a multi- family structure, a system development charge, as contemplated herein this Ordinance, shall be charged. The Board of Public Works shall make the final determination of whether the new property structure is a similar use to the prior property structure for the purposes of this subsection. Section 3. Section 17 -81 of the City Code shall be repealed in its entirety and amended to read as follows: For wastewater collection service rendered to customers whose connection is located outside the corporate limits of the City of South Bend, a surcharge of 0 44% will be charged prior to January 1, 2017, 7% surcharge will be charged from January 1, 2017 through December 31, 2017 and 14% surcharge from January 1, 2018 and beyond shall be added to the total amount billed. Notwithstanding the above, an Indiana municipality or special district organized under the laws of Indiana that is subiect to this Section 17 -81, who have adopted sewer rates under either Indiana Code 36 -9 -23 or Indiana Code 13 -26 -11 for the purpose of MM MI 901 For wastewater collection service rendered to customers whose connection is located outside the corporate limits of the City of South Bend, a surcharge of 0 44% will be charged prior to January 1, 2017, 7% surcharge will be charged from January 1, 2017 through December 31, 2017 and 14% surcharge from January 1, 2018 and beyond shall be added to the total amount billed. Notwithstanding the above, an Indiana municipality or special district organized under the laws of Indiana that is subiect to this Section 17 -81, who have adopted sewer rates under either Indiana Code 36 -9 -23 or Indiana Code 13 -26 -11 for the purpose of City Board of Works may execute a contract with the customer authorizing an increase to the initial System Development Charge based upon actual usage data that is collected after connection. 6. Where a prospective customer seeks to connect a new structure on Property which replaces a prior structure of a similar use what was located on the same property and which was connected to the South Bend Municipal Water Works, no system development charge will be collected. For instance, if the prior structure was a single family structure and the new structure is to be used as a multi- family structure, a system development charge, as contemplated herein this Ordinance, shall be charged. The Board of Public Works shall make the final determination of whether the new property structure is a similar use to the prior property structure for the purposes of this subsection. Section 3. Section 17 -81 of the City Code shall be repealed in its entirety and amended to read as follows: • - .�sr�r:rs Stop oFT2 ee-k 1125,000 sf- 4.72-8 ovd cn nnn Sf 4.-2-2 flext 50 ,000 S f a..4 next 50 ,000 s f 0-48 175,000 s f in ., es) 8:04 For wastewater collection service rendered to customers whose connection is located outside the corporate limits of the City of South Bend, a surcharge of 0 44% will be charged prior to January 1, 2017, five percent (5 %) surcharge will be charged from January 1, 2017 through December 31, 2017, a ten percent (10 %) surcharge from January 1, 2018 through December 31, 2018 and a fourteen (14 %) surcharge from January 1, 2019 and beyond shall be added to the total amount billed. Notwithstanding the above, an Indiana municipality or special district organized under the laws of Indiana that is subject to this Section 17 -81, who have adopted sewer rates under either Indiana Code 36 -9 -23 or Indiana Code 13 -26 -11 for the purpose of providing such sewer service, shall be qualified for a credit in the amount of five percent (5 %) from January 1, 2017 through December 31, 2017, ten percent (10 %) from January 1, 2018 through December 31, 2018 and fourteen percent (14 %) in 2019 and beyond. Section 4. Section 17 -86(b) of the City Code shall be repealed in its entirety. Section 5. The paragraphs, sentences and words of this Ordinance are severable, and if any portion hereof is declared unconstitutional, invalid or unenforceable by a court of competent jurisdiction, such declaration shall not affect the remaining portions of this Ordinance. Section 6. This Ordinance shall take effect upon its passage by this Common Council and approval by the Mayor. PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana this a +-h day of cgcti" 2016. President, o on ouncil of the City of South Bend . ......... Section 5. The paragraphs, sentences and words of this Ordinance are severable, and if any portion hereof is declared unconstitutional, invalid or unenforceable by a court of competent jurisdiction, such declaration shall not affect the remaining portions of this Ordinance. Section 6. This Ordinance shall take effect upon its passage by this Common Council and approval by the Mayor. PASSED AND ADOPTED by the Common Council of the City of South Bend, Indiana this a +-h day of cgcti" 2016. President, o on ouncil of the City of South Bend ATTEST: KaP6e ah Fowler, Cle k Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City for his approval on the a5 -" day of Q4JZb -Pi , 2016, at 10 o'clock 6t- m. areemah Fowler Clerk Having examined the foregoing Ordinance, I do now, as the Mayor of the City of South Bend, approve said Ordinance and return the same to the Clerk of the City of South Bend this 26+µ day of Od -otot/ , 2016. j o READING `l l lkl lto PUBLIC lHEAR05 Io /ZP i llp 3 rd REA.DNG 10101 I NOT APPROVED REFERRED 11f lit PASSED ID/9i+/ IV Pete Butti g, or 7 Filed in Clerk's Office L 2 ra d' KAREE r � M,Ri FOWLER CITY CLERK, SOUTH SEND, IN