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Home My WebLink About10865-22 Amending System Development Charges within Various Sections of Chapter 17, Article 10 of the South Bend Municipal Code ORDINANCE No . 10865-22 Passed by the Common Council of the City of South Bend, Indiana June 27, 2022 Attest: City Clerk Dawn M Jones SAVAblk M C314 k Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana June 27, 22 20 7XLUZ9/1a/j) City Clerk Dawn M. Jones Approved and signed by me J L n l 20 Z i Mayor Substitute Bill No. 29-22 ORDINANCE NO. 10865-22 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 (SUBSTITUTE) 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owns and operates a water and sewer utility, and on October 24, 2016, this Council adopted Ordinance No. 10440-16 which repealed and replaced the previously imposed compact fees with system development charges to cover some of the City's cost of connecting new customers to the City's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 1 . 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. - • •• ! • • , . •• • . • • • • • . . F 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 C 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. 17-7.9 79.1. System Development Charge for Wastewater inside and outside City limits. - - - • gallons-per-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) - - . - : •- _ . . - •. - .-,fer 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 All charges shall be billed by the City at the time the application for service is filed. (3} _ - . . -- - • - - . - ' _ • . . . . - -- - - ' , - .. f43 (3) - . . ' . . . . _., . .. .. • , . .. • . . - , - ..• . -- . .. ' -. For all ether non-residential types of structures, the ERU calculation shall be based upon the water and sewer use values provided in 327 IAC 3-6-11 ii relationship to divided by three hundred ten(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 sewer capacity certification for the structure and three hundred ,M1~(310)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 existing development 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 Equivalency Factor SDC Charge 5/8 in. 1.0 $1,145 3/4 in. 1.5 $1,718 1 in. 2.5 $2,863 1 '/2 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 per parcel,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) - . . -- - ..• • . . .. • . ! - . _ . . . . :. .. . . -. - • - • - • •- D.' - - - - -- --- . •. • - . • r ' (Ord. No. 10461-16 , § 1, 10-24-16) 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) - . .. ... . . - _ - . • . . . . . - - - •:• - . . - - - . mer 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) - . . . . •. - . . . - - . -, For every new connection to the South Bend Municipal Water Works, a system development charge of five four hundred seventy-five dollars ($475.00)(4-50041) shall be collected per ERU. -•- • • •- - - .• •- :. All charges shall be billed by the City at the time the application for service is filed. ' -• -- • ' • (4) (3) - . . - .. .. . , - . - •. . , —;; - .. • - ' . For all ether non-residential types of structures, the ERU calculation shall be based upon the : • . . • :- `:' - water and sewer use values provided in 327 IAC 3-6-11 in divided by three hundred ten(310) 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. -- - . • • . . -• -- • _ `.• - - -- . flay: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. (44) 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 existing development 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 Equivalency Factor SDC Charge 5/8 in. 1.0 $475 3/4 in. 1.5 $712.50 1 in. 2.5 $1,187.50 1 '/z 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 per parcell 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. -- , -- ' . -. . .• . . . •. . .• .•. -- ►•. e: - • O .A. . . _ . - •• - - . - • .. . _ . - . • - • ' • • (Ord. No. 10461-16 , § 2, 10-24-16) 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. Sec. 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 (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 assessme..t (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 H. 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. SA4Ainek_ M C344 Cit.. Sharon McBride, President, Common Council of the City of South Bend ATTEST: )..n V / L 41 4 Dawn Jones, 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 L)/,Uyle , 2022, at 1/ o'clock 4, .m. • /00./6(.4.) 3-x1.4.) Dawn Jones, Clerk Office of the City Clerk 6 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 29)"' day of ,'Art t , 2022. Jame, Mueller, Mayor City of South Bend 7