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Home My WebLink AboutResolution No 17-2024 - Revised Sewer Lateral Reimbursement Program PolicyRESOLUTION NO. 17-2024 THE BOARD OF PUBLIC WORKS OF THE CITY OF SOUTH BEND, INDIANA SEWER LATERAL REIMBURSEMENT PROGRAM POLICY AUTHORITY The Board of Public Works (the “Board”) of the City of South Bend (the “City”) adopts this statement of policy (this “Policy”) pursuant to the Board’s authority for supervision of streets, alleys and City property under Indiana Code Section 36-9-6-2 and South Bend Municipal Code Chapter 17. STATEMENT OF PURPOSE AND INTENT The cost associated with new sewer lateral connections, including pavement replacement, act as a barrier to reinvestment in our existing urban neighborhoods. To support efficient infill development and reinvestment into our community, the City of South Bend has developed a new program to assist with these costs. The Sewer Lateral Reimbursement Program assists property owners with the complete replacement or lining of a sewer lateral from the house to the City’s main sewer line. The program only applies to new residential infill construction. PROGRAM GUIDELINES Section 1: Eligibility Through the Sewer Lateral Reimbursement Program, the City will reimburse property owners for qualifying expenses of new sewer lateral connections or lining of existing sewer laterals. To be eligible for participation, an applicant must have plans to construct a new residential or neighborhood scaled multifamily residential structure with total construction costs below the median home price, as a per housing unit, for the Midwest Region within a qualifying zoning district. Section 2: Property Qualifications Properties must meet the following qualifications: (i) Location: Property must be located in areas zoned under the South Bend Zoning Ordinance as U1 Urban Neighborhood 1, U2 Urban Neighborhood 2, U3 Urban Neighborhood 3 as well as residential uses within UF Urban Flex and NC Neighborhood Center. (ii) Building Type: The new infill construction must be for a residential development up to five (5) dwelling units. 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. The residential structure can be home owner occupied or rental. The policy also covers residential infill developments consisting of five (5) units or more, whether developed at one time or over a period of time, for infill residential housing units constructed by not-for-profit development companies or supported by low-income housing tax credits. (iii) Residential structure valuation: To target the program for low and moderate income housing, applicants will have to show proof that their project meets certain thresholds: The unit construction cost must fall at or below the Median Sale Price of Houses Sold for the Midwest Census Region (determined by the US Census Bureau and the US Department of Housing & Urban Development). By way of example, if an applicant intends to construct a three (3) unit multifamily residential structure, and the Median Sale Price in the Midwest for a new single family residential structure is $200,000 (true number will be based on the applicable census data at the time of the application), the City will permit a reimbursement for a sewer lateral expense if the construction cost of the new three (3) unit multifamily residential structure is at or below $600,000 (3 X $200,000). (iv) Ineligible locations: A greenfield site (i.e. land previously undeveloped), is not eligible for participation. Section 3: Reimbursement Amount The City will reimburse the applicant up to $20,000 per lateral for qualifying expenses. The property owner may be responsible for a portion of the project expenses and such cost share shall be outlined in the program application. Section 4: Qualified Expenses: Funding for the replacement of new sewer laterals will be provided as reimbursement to applicants who meet all the qualifications of the program. Funding may be used towards the cost of the entire sewer lateral (from the main line to the residential structure). Qualifying costs for reimbursement include labor and materials for the sewer lateral work, pavement restoration, sidewalks, curbs, and traffic control. Engineering and permitting costs are not eligible for reimbursement. In certain circumstances, existing sewer laterals can be lined as part of this program. To be considered for lining, the existing lateral must be a minimum of 6”, and it must be inspected to verify that it is in a condition suitable for lining. The applicant will be responsible for providing video of the existing lateral for Engineering review. Lateral lining will need to be approved by Engineering prior to approval of the reimbursement application. Sewer laterals not suitable for lining will need to be fully replaced. Section 5: Program Application Interested property owners will apply for the program prior to starting any construction on the sewer lateral. The application will be available on the City of South Bend’s website and will be reviewed by City staff. Once a completed application is submitted and approved by City staff, the applicant may begin work on their sewer lateral project. The work must be performed by private, bonded, licensed contractors and in accordance with the City’s Standard Specifications. The work will need to be inspected by a City representative. After completion of all work, including proper street patching, and approval by the City, the applicant may seek reimbursement. Construction work on the sewer lateral shall be completed no more than one year after approval of the application. This resolution shall be in full force and effect as of the date of its adoption by the board. Adopted at a meeting of the Board of Public Works of the City of South Bend, Indiana held on June 11, 2024. June 11, 2024 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date: 6/3/2024 Name: Charlie Brach Department of Public Works – Engineering Division BPW Date: 6/11/2024 Phone Extension: 9246 Required Prior to Submittal to Board BPW Attorney X Attorney Name Michael Schmidt Dept. Attorney Attorney Name Purchasing Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Ease./Encroach Required Information Company or Vendor Name N/A New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Sewer Lateral Reimbursement Program Policy Update Project Number N/A Funding Source N/A Account No. PR/PO # N/A Amount N/A Terms of Contract N/A Special Contract Provisions N/A Purpose/Description Update to the Sewer Lateral Reimbursement Program Policy to add lining existing sewer laterals as an option on a case by case basis, depending on the size and condition of the lateral. For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: