HomeMy WebLinkAbout10878-22 Amending Various Arts, & Sect of Ch. 17 of the SB Municipal Code to Adress Late Fees for City Utility Customers ORDINANCE No . 10878-22
Passed by the Common Council of the City of South Bend, Indiana
September 12, 22
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Attest: "90 f City Clerk
Dawn M. Jones
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Attest: SkilkAbik. .M C-7 14President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
September 13, 22
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4,,.,, 7z( . ,,„„ ,
City Clerk
Dawn M Jones
Approved and signed by me -51"Itf 1 3z 20 1
k- IlikAkr— Mayor
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Bill No.43-22
ORDINANCE NO. 10878-22
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS
ARTICLES AND SECTIONS OF CHAPTER 17 OF THE
SOUTH BEND MUNICIPAL CODE TO ADDRESS LATE
FEES FOR CITY UTILITY CUSTOMERS AND
RENAMING THE "LOW-INCOME CUSTOMER
ASSISTANCE PROGRAM" (LICAP) AS THE "UTILITY
ASSISTANCE PROGRAM" (UAP)
STATEMENT OF PURPOSE AND INTENT
The City of South Bend owns and operates a water and sewer utility, and separate charges
are imposed on the City's utility customers whose account payments are delinquent.These charges
are fixed in several Sections within Articles of Chapter 17 of the South Bend Municipal Code. The
City also established in 2019 what was then titled a"Low-Income Customer Assistance Program"
(LICAP) for qualified City utility customers based on their income. (Ordinance 10688-19 passed
on October 28, 2019), and as amended by Ord. No. 10797-21, passed on August 9, 2021).
Safe water, sewer, and their related services are essential to health and welfare of City
residents. Low-income persons are acutely vulnerable to loss of utility service for reasons beyond
their control which consequently endangers the health and welfare of the City's young, elderly,
and disabled persons. To reduce risk of loss of utility service to lower income City utility
customers, this ordinance enacts changes within Chapter 17 of the South Bend Municipal Code.
The changes include removal of penalties and other adverse consequences of non-payment or
delinquency of utility bills by persons enrolled in what was previously known as the"Low-Income
Customer Assistance Program" (LICAP) at Article 15 of Chapter 17. This ordinance further
renames that program as the"Utility Assistance Program" (UAP).
Amending various Sections of the South Bend Municipal Code at Chapter 17 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 15, of the Municipal Code of the City of South Bend,
Indiana shall be amended to read in its entirety as follows:
ARTICLE 15. UTILITY ASSISTANCE PROGRAM
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Sec. 17-130. Findings and purpose.
In order to address the public health obligation to provide affordable water and sewer
services to low-income customers, while still maintaining sustainable finances, the City of South
Bend will implemented in 2019 a rate-payer funded program to assist low-income customers of
the City utilities originally known as the Low Income Customer Assistance Program (LICAP).
Since 2019, within the Public Works Department and throughout the City, the program has been
referred to simply as the Utility Assistance Program (UAP) which shall be its official name . A
charge shall be assessed against every City of South Bend sewer rate-payer in order to provide a
LICAP UAP credit for qualifying low-income non-industrial sewer customers. Qualification and
verification shall be performed by members of the City's staff or local community action
partners, as determined by the City. The credit shall be applied for a period of twelve (12)
months with annual renewal possible. This charge is deemed reasonable and necessary for its
intended purpose. The rates established in this Article shall remain effective until replaced,
amended, or repealed by the South Bend Common Council.
(Ord. No. 10688-19 , § I, 10-28-19; Ord. No. 10797-21 , § V, 8-9-21)
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Sec. 17-131. Definitions.
Unless otherwise defined in this Ordinance, the terms and phrases shall be defined as
follows:
(a) City means the City of South Bend, Indiana.
(b) Customer means the owner or tenant of a single-unit residential property or a multi-
unit residential property up to four(4)units, in whose name the bill for wastewater
charges for such property is issued by the City; or where the tenant attests they occupy
the Residential Property as a primary residence and have made the application with the
consent of their landlord
(c) r ow Income Customer Utility Assistance Program Credit means the credit for
wastewater charges provided under Section 17-133 of this Article.
(d) Eligible Low Income E=ustemer Utility Assistance Program Customer means an
eligible customer as defined in Section 17-134 of this Article.
(e) Multi-Unit Residential Property means property used only for human residency which
consists of no more than four(4) dwelling units with each one occupied as a primary
residence by a single person or single family.
(f) Single-Unit Residential Property means property used only for human residency which
consists of a single dwelling unit occupied as a primary residence by a single person or
single family.
(g) UAP means the Utility Assistance Program established by this Article.
(g) (h) Wastewater Charges means the wastewater user charges established by City
Ordinance for use of its wastewater system.
(Ord. No. 10688-19 , § I, 10-28-19; Ord. No. 10797-21 , § V, 8-9-21)
Sec. 17-132. Sewer charge.
The sewer charge fee is set for the purpose of offsetting the LIC UAP Credit. The sewer
charge fee shall be One Dollar and Seventy-Five Cents ($1.75)per Month charged through
December 31, 2022, One Dollar and Eighty-Nine Centers ($1.89) per month charged from
January 1, 2023 through December 31, 2023, Two Dollars and Three Cents ($2.03) per month
charged from January 1, 2024 through December 31, 2024, and Two Dollars and Eighteen Cents
($2.18) per month charged from January 1, 2025 and beyond per wastewater Customer account.
This charge will be reviewed on the same basis as all other rates and charges in this Chapter.
(Ord. No. 10688-19 , § I, 10-28-19; Ord. No. 10797-21 , § V, 8-9-21)
Sec. 17-133. Utility Assistance Program (UAP) Credit. •
A LIC UAP credit shall be available to Eligible Customers of the City who are billed for
wastewater charges as provided for in this Ordinance effective January 1, 2022. The current LIC
Created: 2021-12-02 09:01:34 [EST]
(Supp.No.56)
Page 3 of 7
amount of such credit will be applied for the applicable billing cycle as follows:
Income Eligibility Cutoffs as a Percentage of Area Median Credit Amount
Income (AMI)*
>60%-80% of AMI $8.00
>45%-60% of AMI $14.25
>30%-45% of AMI $19.25
>0%-30% of AMI $25.50
* Area Median Income means the median income for the South Bend—Mishawaka IN HUD
Metro Area as adjusted for family size and as determined annually by the United States
Department of Housing and Urban Development(HUD).
(Ord. No. 10688-19 , § I, 10-28-19; Ord. No. 10797-21 , § V, 8-9-21)•
Sec. 17-134. Eligible customer.
In order for a Customer to be eligible, the Customer must satisfy each of the following
criteria:
(a) Must own or occupy as a primary residence a Single-Unit Residential Property or a
Multi-Unit Residential Property.
(b) The bill for wastewater charges must either be in applicant's name or the tenant must
attest that they occupy the Residential Property as a primary residence and have made
the application with the consent of their landlord.
(13 ) Customer's annual household income must be at or below the levels established in
above Section 17-133.
(Ord. No. 10688-19 , § I, 10-28-19; Ord. No. 10797-21 , § V, 8-9-21)
Created: 2021-12-02 09:01:34 [EST]
(Supp.No.56)
Page 4 of 7
Sec. 17-135. Application procedure.
(a) A Customer seeking assistance from the City's LIC UAP must complete an application and
return the application, along with any requested supporting documentation, to the City. of
South-Bend:
(b) Eligible Customers will receive the LIC UAP Credit for a period of twelve (12)months.
(c) In order to re-enroll in LIC UAP, the Customer must annually complete either an attestation
that their address, household income, and number of household members have not changed
or a new application in the event that an applicant's address, household income, or number
of household members have changed.
( Ord. No. 10797-21 , § V, 8-9-21)
Sec. 17-136. Rules and Regulations and Termination of Program.
The City shall promulgate such rules, regulations, written policy, forms and other
documentation as deemed necessary to effectuate the LIC UAP. The City reserves the right to
discontinue the LIC UAP upon a determination that the costs of the Program have become
prohibitive or the City otherwise determines that it is in the best interest of the City to
discontinue the LIC UAP.
(Ord. No. 10688-19 , § I, 10-28-19; Ord. No. 10797-21 , § V, 8-9-21)Editor's note(s)—Ord. No
10797-21, § V, adopted Aug. 9, 2021, repealed the former § 17-136 and renumbered § 17-
137 as § 17-136. The former § 17-136 pertained to review of denial of eligibility and
derived from Ord. No. 10688-19 , § I, adopted Oct. 28, 2019.
Secs. 17-137-17-139 Reserved.
SECTION II . Chapter 17, Division 4, Section 17-24 of the Municipal Code of the City
of South Bend, Indiana shall be amended to read in its entirety as follows:
DIVISION 4. SCHEDULE OF RATES AND CHARGES
Sec. 17-24.- Preparation and collection of charges.
(a) Such rates and charges shall be prepared, billed and collected by the City in the manner
provided by law and ordinance.
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(b) The rates and charges for all users shall be prepared and billed monthly. Annually, each
user shall be notified of the portion of the total billing charged for operation, maintenance and
replacement for that user during the preceding year.
(c) The rates and charges may be billed to the tenant or tenants occupying the properties
served, unless otherwise requested in writing by the owner, but such billing shall in no way
relieve the owner from the liability in the event payment is not made as herein required. The
owners of properties served, which are occupied by a tenant or tenants, shall have the right to
examine the collection records of the City for the purpose of determining whether bills have
been paid by such tenant or tenants, provided that such examination shall be made at the office
at which such records are kept and during the hours that such office is open for business.
(d) As is provided by statute, all rates and charges not paid within five (5) days of the due date
as stated in such bill are hereby declared to be delinquent and a penalty of ten (10) percent of
the amount of the rates and charges shall thereupon attach thereto. Customers enrolled in the
Utility Assistance Program will not be assessed a penalty for any charges that are not paid on
time, and late payment penalties may be waived for customers enrolled in certain deferred
payment plans.
(Ord. No. 7942-88, § 1)
SECTION III . Chapter 17, Article 4, Section 17-46 of the Municipal Code of the City of
South Bend, Indiana shall be amended to read in its entirety as follows:
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ARTICLE 4 WATER RATES AND CHARGES
Sec. 17-46.- Collection or deferred payment charge.
Ali bills Bills for water services, not paid within five (5) days from the due date thereof, as stated
in such bills, shall be subject to a collection or deferred payment charge of ten percent (10%) of
the first three dollars ($3.00) of the water charge and three percent (3%) on any amount in excess
of three dollars ($3.00) of the water charge. All bills for water services which are turned over to a
collection agency shall be subject to a collection charge equal to twenty percent (20%) of the
unpaid bill. Customers enrolled in the Utility Assistance Program will not be assessed penalties
for bills that are not paid on time,and late payment penalties may be waived for customers enrolled
in certain deferred payment plans.
SECTION IV . Chapter 17, Article 6, Sections 17-51 and 17-52 of the Municipal Code
of the City of South Bend, Indiana shall be amended to read in its entirety as follows:
ARTICLE 6. -WATER SERVICE FUND AND CHARGES
Sec. 17-51. -Limitation on use of funds.
Water sprinkler service shall net be insured under this article-Article;however, sprinkler coverage
hereunder shall only extend from the water main to the property line. if If the domestic service
line is less than two (2) inches and has a lawn-sprinkler connection tee in it, said domestic service
line and the tee will be insured,but not beyond the tee nor any costs of repair to the lawn-sprinkler
system proper.
Sec. 17-52. -Use of funds when accounts delinquent prohibited.
The insurance for repair and/or replacement shall not be in force on any account if the charge for
such insurance has not been paid for four (4) consecutive months. The City reserves the right to
waive this provision in the event of disasters, emergencies, or similar public health concerns.
For accounts enrolled in the Utility Assistance Program, the insurance for repair or replacement
shall remain in effect despite late payments for any period. Accounts enrolled in certain deferred
payment plans may also be entitled to retain insurance for repair or replacement despite late
payments.
SECTION V . Chapter 17, Article 7, Section 17-63 of the Municipal Code of the City of
South Bend, Indiana shall be amended to read in its entirety as follows:
ARTICLE 7.- SEWER SERVICE FUND AND CHARGES
Sec. 17-63.- Use of funds when accounts delinquent prohibited—exceptions.
The insurance of repair and/or replacement shall not be in force on any-account if the charge for
such insurance is delinquent for one hundred twenty (120) days. The City reserves the right to
waive this provision in the event of disasters, emergencies or similar public health concerns.
For accounts enrolled in the Utility Assistance Program, the insurance for repair or replacement
shall remain in effect despite late payments for any period. Accounts enrolled in certain deferred
payment plans may also be entitled to retain insurance for repair or replacement despite
delinquency.
SECTION VI. Chapter 17, Article 14, Section 17-129 shall be amended to read in its
entirety as follows:
Sec. 17-129. - Collection of storm water user fees.
(a) The collection of the storm water user fees authorized by this Article article-shall be effectuated
by a monthly charge on a bill to be sent to the affected property owner. The City may designate
any agency within the Department of Public Works to handle billing for the storm water user fees
assessed under this article Article.
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(b) If the storm water user fee is not paid when due, a late payment penalty shall be charged and
assessed by the designated South Bend billing agency consistent with Indiana Law law for storm
water utilities (IC 8-1.5-5-29, 8-1.5-5-30) at the rate of ten percent (10%) of the unpaid bill.
(c) If storm water user fees and penalties are not paid when due, they shall be collected by South
Bend in the same manner that other delinquent fees and penalties are charged and assessed
consistent with Indiana Law law.
(d) Late penalties shall not be assessed against customers who are currently enrolled in the Utility
Assistance Program, and may be waived on balances of customers in certain deferred payment
plans.
SECTION VII. 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 VIII. This Ordinance shall take effect upon its passage by this Common
Council approval by the Mayor, any publication required by law, and any approval required by the
Indiana Utility Regulatory Commission (IURC).
SkLh1&s - MC Ch-
Sharon McBride, resident,
Common Council of the City of South Bend
ATTES :
L,eezzeZ A. G 9.it 1
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 /3 day of ,14t , 2022, at // o'clock 4' .m.
Lita(AZ 2t. Obit.L.41
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 1314.'
day of sr4oe, .,1 v , 2022.
JamMueller, Mayor
City of South Bend, Indiana '
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