HomeMy WebLinkAboutBill No. 29-22 An Ordinance Amending System Development Charges Within Various Sections of Chapter 17, Article 10 of the SB Municipal CodeFiled in Clerk's Office
JUN 0 8 202?
DAWN M. JONES
CITY CLERK, SOUTH BEND, IN
CITY OF SOUTH BEND
DEPARTMENT OF PUBLIC WORKS
June 8, 2022
Sharon McBride
President,
Common Council of the City of South Bend
227 W. Jefferson Blvd.; Ste 4005
South Bend, [N 46601
Dear President McBride,
I am pleased to submit to you amendments to various sections of Chapter 17, Article 10 of the
South Bend Municipal Code that address System Development Charges (SDC). These charges
cover the cost of connecting new customers to the City's water or sewer utility service and are also
applied to existing customers for their new uses that would materially change the demands on the
City's water and/or sewer utility.
Changes proposed in the attached ordinance are part of Mayor Mueller's strategy to ease the ability
of property owners to build residential infill developments in neighborhoods. The changes in the
ordinance include, among others, the waiver of SDC for developments of five or fewer residential
units. For residential infill developments of five or more units constructed by non -for -profits or
supported by low-income housing tax credits, the SDC will also be waived.
I will be presenting this ordinance to the Council at its Committees and regular meetings and will
be happy to respond to questions at that time.
Sincerely,
Eric Horvath
Director, Public Works
EXCELLENCE ACCOUNTABILITYINNOVATION INCLUSION' EMPOWERMENT
1316 County -City Building 227W Jefferson Blvd. South Bend, Indiana 46601 p574.235.9251 f574.235.9171 www.southbendin.gov
Bill No. 29-22
ORDINANCE NO.
Filed in Clerk's Office
JUN 0 8 2022
DAWN M. JONES
CITY CLERK, SOUTH BEND, IN
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING SYSTEM
DEVELOPMENT CHARGES WITHIN VARIOUS
SECTIONS OF CHAPTER 17, ARTICLE 10 OF THE
SOUTH BEND MUNICIPAL CODE
STATEMENT OF PURPOSE AND INTENT
The City of South Bend owns and operates a water and sewer utility, and on October 24,
2016, this Council adopted Ordinance No. 10440-16 which repealed and replaced the previously
imposed compact fees with system development charges to cover some of the City's cost of
connecting new customers to the City's water or sewer utility service. These charges also applied
to existing customers for their new uses that would materially change the demands on the City's
water and/or sewer utility.
The system development charges for both water and sewer service adopted in 2016 were
computed using what is known as the "Equity Method." Among other things, they appropriately
exempted connections to new structures which replaced an older structure of similar use located
on the same property.
These changes are part of Mayor Mueller's strategy to ease the ability of property owners
to build residential infill developments and in neighborhoods. Among the changes included in this
ordinance are the waiver of SDC for developments of five or fewer residential units. For residential
infill development of five or more units constructed by non -for -profits or supported by low-income
housing tax credits, the SDC will also be waived.
Amending Sections of the South Bend Municipal Code at Chapter 17, Article 10 as set out
in this ordinance is in the best interest of the City and its residents.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND as follows:
SECTION I . Chapter 17, Article 10 of the Municipal Code of the City of South Bend,
Indiana shall be amended to read in its entirety as follows:
ARTICLE 10. WATER AND SEWER INSTALLATION CONSTRUCTION FEES
Sec. 17-79 Definitions. System Development Charge for- Wastewater inside and entsid
Citi. limits.
As used in this Article, the following terms, phrases, words, and their derivatives shall have the
meanings set forth below:
(1) Equivalent Residential Unit ("ERU") is one residential unit and corresponds to an estimated
wastewater or water flow of three hundred ten (310) gallons per day.
(2) Infill development is construction on land that has been vacant, unused, or underutilized
within current City limits where municipal water and sewer services are already available.
(3) Mixed use structure is any structure that contains both residential and non-residential units.
(4) Non-residential unit is any structure not primarily used as a dwelling unit for one household,
such as apartment buildings, mixed-use structures, or commercial structures.
(5) Residential unit is any single -metered free-standing independent structure primarily used as a
dwelling unit for one household.
(6) System Development Charge ("SDC ") is the cost charged by the City to ensure that its water
and sewer facilities are able to support development and to meet future capacity demand.
An SDC is charged upon the connection of new customers to the City's water or sewer
utilities and new uses by existing customers that would materially change the demands on
the water and/or sewer utility.
Sec. 17- -79 79.1. System Development Charge for Wastewater inside and outside City limits.
(1) For puTonen of this .eetio« "ERU" shall lin defined as an en..:vnle«t residential unit whiel.
means a single family residence For «......eses of eustemers that n not single family
gal aT. No customer will be less than one (1) 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 :n Subseetions (5) and (6) of this sention €ef For every new connection
to the South Bend Municipal Sewer Works, a system development charge of one thousand
one hundred forty-five dollars ($1,145.00) shall be collected per ERU and additional pst4
thereof to be eonneetnd All charges shall be billed by the City at the time the application
for service is filed.
(3) System development charges per- ERU shall also be eelleeted 40m existing eustomers
.
ndertakinn aetiyities «r ..ede:«n n permanent i«erne .n mn .,, wastewater- Floof gfeater than
th fee 1...«dyed ten (3 10) gallons r da.. This subseetio« shall «et apply ton roti«.
.ntemer's flews rem-nin ..:thin the reser.,ed e e:t.. A ent :n shall b
deemed to have 00ellfred whim tl;i-. average flaw rate for si�E (6) eanseetifive manths exeoedq
thea a«t Flew -ate by at least three hundred ten (31 0) gallons r day.
C47 L-1 For striaetidfese apartments,eendeminitims,
mobile heffte
eoffwnunities), eaa1, :«A:.AAttal linit shall be one (1) ERU. For all ether non-residential types
of structures, the ERU calculation shall be based upon the ratio of Average Daily Wet..
water and sewer use values as eomputed pursuant to provided in 327 IAC 3-6-11 in
relationship to divided by three hundred ten (310) gallons perdu. 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 sewer capacity certification for the structure and three hundred
then (3 10) gallons per day. described in the Board of Works Resolution No. 20-2017. For
mixed use structures, which include residential and non-residential units, the ERU
calculation shall be based on the addition of the number of residential units and the water
and sewer use values provided in 327 IAC 3-6-11 for the non-residential units.
(4) For parcels with an existing connection to City sewer seeking to redevelop the property, a
System Development Charge will be collected if the redevelopment necessitates a larger water
meter size to accommodate increased flow. The System Development Charge will be
calculated using meter size equivalency factors shown below. The difference between the
existing meter size equivalency factor and new meter size equivalency factor will be collected.
For example, if the existingdevelopment on a parcel has a 5/8 in meter, and the new
development will require a 1 in meter, the SDC will be $2,863 (SDC for 1 in) - $1,145 (SDC
for 5/8 in) = $1,718. There will not be a credit given if the meter size is reduced. Existing
water tap size will be used if the meter is not available. Upon application for connection, the
new meter size will need to be determined.
Meter Size
Eauivalencv Factor
SDC Charge
5/8 in.
1.0
$1,145
'/ in.
1.5
$1,718
1 in.
2.5
$2,863
1 1/z in.
5.0
$5,725
2 in.
8.0
$9,160
3 in.
15.0
$17,175
4 in.
25.0
$28,625
6 in.
50.0
$57,250
8 in.
80.0
$91,600
10 in.
115.0
$131,675
(5) For residential infill developments of five (5) or fewer residential units, the System
Development Charge shall be waived. For residential infill developments consisting of five
(5) units or more, whether developed at one time or over a period of time, the System
Development Charge shall be waived for infill residential housing units constructed by not-
for-profit development companies or supported by low-income housing tax credits.
(5) F -s skit ,. a with greater than twenty (20) ER -Us nle elated pursuant t,. t&eeetio I^`
C lI.
F thissection, h ERU shall he adjosted based upon the Peaking Faeter a «tike.]
MAI
MMA
Editor's note(s)—Ord. No. 10461-16, § 1, adopted Oct. 24, 2016, repealed the former § 17-79
and enacted a new § 17-79 as set out herein. The former § 17-79 pertained to water main
lines within city limits; assessment of installation charges and derived from Ord. No. 9330-
02, § I and Ord. No. 10440-16, § I, adopted June 27, 2016.
Sec. 17-80. System Development Charge for Water inside and outside City limits.
(1) For puTeses of this -SeeflafflA "ERLP shall be defined as an equivalent residential unit Whi
single family residenee For f..f....eses of oustemers that a of single F mils
e
..idenee., one (1) CDT 1 ..hall equal estimated- ....fte' cl,.vro ..F tl.fnee 1.ffffd-RAd teff (31 0)
gallons pef day. No customer will be less than one (1) ERU. There will be no partial ERU's.
The City shall round down to the closest applicable ERU calculation at all times.
(2) C..eept . provided in Subseetions (5) and (6) of tM seeti... f - For every new connection
to the South Bend Municipal Water Works, a system development charge of five four
hundred seventy-five dollars $475.00 ($500:99) shall be collected per ERU. and additional
poi4ien thereof to be eenneeted. All charges shall be billed by the City at the time the
application for service is filed.
4
a. ftwom-
s.
e.
4
(4) (3)
eeffffnunifies), ea& individual unit shell bee one (1 ) ERU-. For all ethef non-residential types
of structures, the ERU calculation shall be based upon the retie of ver -age Daily Fie,..
water and sewer use values.as eempe4ed persuant to provided in 327 IAC 3-6-11 in
relationship to divided by three hundred ten (3 10) gallons per day. For structures not listed
in 327 IAC 3-6-11, the ERU shall be calculated as described by in the Board of Public
Works Resolution No. 20-2017. the Miership between the Average Daily zloty repoEtea
in the water e,.,i
aet , oe,difiraf „r
tie« the stmete and three hundred ten (3 10) velem
C J
day: For mixed use structures, which include residential and non-residential units, the ERU
calculation shall be based on the addition of the number of residential units and the water
and sewer use values provided in 327 IAC 3-6-11 for the non-residential units.
For parcels with an existing connection to City water seeking to redevelop the property, a
System Development Charge will be collected if the redevelopment necessitates a larger
water meter size to accommodate increased flow. The System Development Charge will
be calculated using meter size equivalency factors shown below. The difference between
the existing meter size equivalency factor and new meter size equivalency factor will be
collected. For example, if the existingdevelopment on a parcel has a 5/8 in meter, and the
new development will require a 1 in meter, the SDC will be $1,187.50 (SDC for 1 in) -
$475 (SDC for 5/8 in) = $712.50. There will not be a credit given if the meter size is
reduced. Existing water tap size will be used if the meter size is not available. Upon
application for construction, the new meter size will need to be determined.
Meter Size
Eauivalencv Factor
SDC Charge
5/8 in.
1.0
$475
in.
1.5
$712.50
1 in.
2.5
$1,187.50
1 % in.
5.0
$2,375
2 in.
8.0
$3,800
3 in.
15.0
$7,125
4 in.
25.0
$11,875
6 in.
50.0
$23,750
8 in.
80.0
$38,000
10 in.
115.0
$54,625
(5) For residential infill developments of five (5) or fewer residential units, the System
Development Charge shall be waived. For residential infill development of five (5) units or
more, whether developed at one time or over a period of time, the System Development
Charge shall be waived for infill residential housing units constructed by not-for-profit
development companies or supported by low-income housing tax credits.
Editor's note(s)—Ord. No. 10461-16, § 2, adopted Oct. 24, 2016, repealed the former § 17-80
and enacted a new § 17-80 as set out herein. The former § 17-80 pertained to water main
lines outside city limits; assessment of installation charges and derived from Ord. No. 9330-
02, § I and Ord. No. 10440-16, § I, adopted June 27, 2016.
See. 17-81. Reserved.
Sec. 17-82. Effective date of charge assessment.
All charges and rates fixed by this article shall be effective at the time that connection is
made from the owner's property to the City sewer and/or water main line(s). The rates set forth in
this article are separate and distinct from usage rates, tap and other nonrecurring charges, water
and sewer service fund charges, availability fees, and other similar charges provided elsewhere
under this chapter.
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16; Ord. No. 10461-16, § 3, 10-24-16)
Sec. 17-83. Owner responsible for connection costs to main line.
All costs or charges for making the physical connection from the affected real property to
the City -installed sewer or water main line shall be the responsibility of the owner, and these are
separate and distinct from the charges set forth in this article. The property owner shall engage a
licensed plumber to make any such lateral connection from the sewer and/or water main line to
the property or building. All such materials and installations shall be in compliance with
Engineering Department standards and any applicable Building or Plumbing Code.
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16)
Sec. 17-84. Party responsible for payment of charge.
The owner of the property as determined by the record of deeds in the Office of the
Recorder of St. Joseph County shall be responsible and liable for the sewer and/or water
installation construction charges required by this article.
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16)Sec. 17-85. Methods of payment;
prepayment with discount; installment plan.
(a) The property owner may pay all charges in full prior to time the installation work is
commenced. Prepayment of expenses in advance under this section shall entitle the owner
to a ten (10) percent discount of the total charge.
(b) A single family residential real property owner may pay the charges under this article by
sixty (60) monthly installment payments with interest at the rate of two (2) percent below
the City's prime borrowing rate established by the Board of Public Works by December 1 of
each year for the following calendar year. The interest at the commencement of the
residential owner's sixty -month payment plan shall be constant throughout the sixty -month
term. The installment payment under this section shall be added to the monthly sewer/water
bill and paid in the same manner and under the same conditions as the monthly water
service charges. However, a subsequent owner shall pay in a lump sum at the time of sale of
the water and or sewer served real property any balance remaining on the previous owner's
obligation for sewer and/or water main extensions under this section.
(c) Notwithstanding the foregoing, an owner of vacant real property served by a sewer and/or
water main installed by the City shall fully assume and pay the maximum construction
charge assessable under this article upon construction of any improvement to the vacant
land. If the land is in the City limits at commencement of construction, City rates shall
apply. If the land is outside City limits at the commencement of construction, non -City rates
shall apply. However, the Board of Public Works may make exceptions for an owner of real
property outside the City who qualifies for annexation to the City under the requirements of
state statute (IC 36-4-3-1 et seq.) and who has irrevocably petitioned for annexation
contemporaneously with hook-up to municipal utility lines.
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16)Sec. 17-86. Waiver of aAnnexation
and City eempaet connection fees.
In consideration for the City's extension of sewer and/or water main lines to areas outside
City limits, the owner of any such real property located outside City limits who wishes to
connect to a City main line shall execute a Consent to Annexation, Waiver of Rights to
Remonstrate and Acknowledgement of City System Development Charges, which shall be
recorded with the St. Joseph County Recorder's Office. If the property is at least 1/8 contiguous
to the City limits, the property owner shall file for a voluntary annexation waivep-e�
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16; Ord. No. 10461-16, § 4, 10-24-16)
Sec. 17-87. Prior contracts unaffected; exemptions.
(a) Owners who have either executed a permit to connect or who connected to the City's sewer
or water line prior to September 1, 2016 shall be exempt from system development charges
n�oaamc�of -�cc'3.
(b) The rates set forth in this article shall not apply to user contracts executed with the City
prior to the effective date of this article. For all such users, the contract rate shall apply, and
the terms of the contract shall supersede this article.
(c) Notwithstanding anything contained herein within this Chapter 17, Article 10, the City
reserves the right to retain any assessment which has been collected prior to January 1,
2016.
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16)
Sec. 17-88. Board of Works rate modification.
The Board of Works shall, as needed, recommend any modification to the rates established
in this article to reflect fluctuations in construction costs.
(Ord. No. 9330-02, § I; Ord. No. 10440-16, § I, 6-27-16)
SECTION II. 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 III. This Ordinance shall take effect upon its passage by this Common Council
approval by the Mayor, and any publication required by law.
Sharon McBride, Council President
South Bend Common Council
ATTEST:
Dawn M. Jones, City Clerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the City for
his approval on the day of , 2022, at o'clock _.m.
Dawn M. Jones, City Clerk
Office of the City 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
day of , 2022, at o'clock m.
James Mueller, Mayor
City of South Bend