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HomeMy WebLinkAboutAmend Chapter 17, Add new Article 9 for Universal Water and Sewer Main Line Installation Construction Charges-. ORDINANCE No. Passed by the Common Council of the City of South Bend, Indiana November 26, 20 01 Attest: Attest: Presented by me to the Mayor of the City of South Bend, Indiana Novem~ier ~? - 20 ~~ City Clerk President of Common Council City Clerk Approved and signed by me November 27, 20 O1 Mrryor ORDINANCE NO. ~ Z ~ O ~ V AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AMENDING CHAPTER 17, OF THE SOUTH BEND MUNICIPAL CODE TO ADD A NEW ARTICLE 9 FOR UNIVERSAL WATER AND SEWER MAIN LINE INSTALLATION CONSTRUCTION CHARGES STATEMENT OF PURPOSE AND INTENT During the past two years the City of South Bend has extended water and sewer main lines into areas both within and outside City limits which previously had no such City water and sewer main lines. For each such extension of water and/or sewer main lines, the South Bend Common Council has enacted separate ordinances directed to the owners ofthe real property affected by utility extension pursuant to I.C. 36-9-23-1 et seq. and particularly I.C. 36-9-23-10. These ordinances established and imposed the owner's proportionate share of the construction costs of such utilities, and were consistent with past assessments under Barrett Law because sewer and water main extensions are not generally supported by the property tax levy. Because future extensions of sewer and water main lines are contemplated as part of the City's overall utility planning process, it is fiscally responsible for the City to recover the costs of system-wide construction of utility main lines as equitably as possible. A universal fee structure to provide for the public sharing of construction costs ofwater/sewer main lines is more efficient than the imposition of costs on a site-by-site basis. The charges set forth in this ordinance represent an equitable public sharing of costs for the construction ofpublic water and sewermain lines, and are consistent with the charges that have been imposed upon property owners in the recent ordinances enacted by this Council. These charges may be adjusted as needed on recommendation of the City's Board of Public Works to reflect actual fluctuations in construction costs and interest rates. A rate differential between City and non City property owners has been set to reflect additional costs of extending main lines outside the City, including costs of master planning, looping and pumping boosters and/or storage as may be necessary to support the aggregate extensions. BE IT THEREFORE, ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AS FOLLOWS: Section I. Chapter 17 is hereby amended to add a new Article 9, Sections 66 through 75 to read as follows: ARTICLE 9. WATER AND SEWER INSTALLATION CONSTRUCTION FEES Section 17-66 Water Main Lines Within City Limits -Assessment of Installation Charges (a) City Residential Water Main Charges All owners of single family residential property located within the corporate limits of the City of South Bend shall be assessed a proportionate share of the cost of water main line installation computed at $23.75 per lineal foot (LF) of that water main line which is installed along the boundary of such parcel, at a total maximum rate of $2,000 per single family residential parcel. (b) City Commercial/Industrial Water Main Charges (1) All owners ofproperty used for commercial or industrial purposes located within the corporate limits of the City of South Bend using 12" diameter main lines shall be assessed a proportionate share of the cost of water main line installation computed at the rate of $30.53 per lineal foot (LF) of that water main line which is installed along the boundary of such parcel, which assessment is not subject to a maximum rate cap. (2) All owners ofreal property located within the corporate limits ofthe City of South Bend used for commercial or industrial purposes who require water main lines in excess of 12" diameter shall be assessed a proportionate share of the cost of the water main line installation computed at the actual cost, based on time and materials. (3) All owners of property used for commercial or industrial purposes located within the corporate limits of the City of South Bend using water main lines less than 12" diameter shall be assessed the same rate as residential users, that is $23.75 per lineal foot (LF) without the maximum rate cap. Section 17-67 Water Main Line Outside City Limits -Assessment of Installation Charges (a) Non-City Residential Water Main Charges All owners of single family residential property located outside the corporate limits of the City of South Bend shall be assessed a proportionate share of the cost of water main line installation computed at $28.50 per lineal foot (LF) of that water main line which is installed along the boundary of such parcel, which assessment is not subject to a maximum rate cap. (b) Non-City Commercial/Industrial Water Main Charges (1) All owners ofproperty used for commercial or industrial purposes located outside the corporate limits of the City of South Bend using 12" diameter main lines shall be assessed a proportionate share of the cost of water main line installation computed at the rate of $36.64 per lineal foot (LF) of that water main line which is installed along the boundary of such parcel, which assessment is not subject to a maximum rate cap. (2) All owners ofreal property located outside the corporate limits of the City of South Bend used for commercial or industrial purposes who require water main lines in excess of 12" diameter shall be assessed a proportionate share of the cost of the water main line installation computed at the actual cost, based on time and materials, plus an additiona110% for costs to the City associated with such extension. (3) All owners ofproperty used for commercial or industrial purposes located outside the corporate limits of the City of South Bend using water main lines less than 12" diameter shall be assessed the same rate as non-city residential users, that is $28.50 per lineal foot (LF), with no maximum rate cap. Section 17.68 Sewer Main Line - Assessment of Installation Charges Inside and Outside City The sewer main line installation charge shall be assessed on a per square foot basis of property owned and applies to all property owners whether residential, commercial or industrial. However, owners of single family residential property located within the corporate limits of the City of South Bend shall be limited to a maximum charge of $3,000 per single family residential tract. The rates below are rates for user/property owners inside the City limits as follows: Step of Block Rate ($/SF) ls` 25,000 sf 0.28 next 50,000 sf 0.22 next 50,000 sf 0.14 next 50,000 sf 0.08 over 175,000 sf (4 acres) 0.04 NON-CITY USER INSTALLATION ASSESSMENT - 110% of above rates with no cap. Section 17-69 Effective Date of Charge Assessment The 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 for in this Article are separate and distinct from usage rates, tap and other non-recumng charges, water and sewer service fund charges, availability fees, and other similar charges provided elsewhere under Chapter 17. Section 17-70 Owner Responsible for Connection Costs to Main Line. All costs or charges for making the physical connection from the affected 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. Section 17-71 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. Section 17-72 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 10% discount of the total charge. (b) A single family residential property owner may pay the charges under this Article by 60 monthly installment payments with interest at the rate of 2% 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 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 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. Section 17-73 Waiver of Annexation and City Compact Fees (a) Inconsideration for the City's extension of sewer and/or water main lines to areas outside City limits, the owner of any such property located outside City limits who wishes to connect to a City main line shall execute a waiver of right to remonstrate against annexation as a condition of tapping into the City's main line. (b) As a further condition ofnon-resident tap in to City sewer and/or water main lines, anon- residentproperty owner shall pay a compact fee annually to the City for one utility (whether sewer or water service) which compact fee is 30% of the difference between the County and City tax rates. If two utilities (both sewer and water service) are used, then the annual compact fee shall be 50% of the difference between the County and City tax rates. Section 17-74 Prior Contracts Unaffected 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. Section 17-75 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. Section II. This Ordinance shall be in full force and effect from and after its passage by the Common Council, approval by the Mayor, and its publication according to law. ~~ Member, South Bend mmon Council 1 st READING ~\-~Z_ d~ PUBLIC HEARING ~`,L~p-0~ 3rd READING ~~ Lb'~,~ NOT APPROVED REFERRED ~,wE>3 l \,, 2~, o~ ~'iied In Gierk's C~ffic~ ~~ov o ~ zoos _____. LORBTTA J. DUDt4 Cl7Y CLERK, SC. BlrML1, E~2, COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 112-01 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AMENDING CHAPTER 17, OF THE SOUTH BEND MUNICIPAL CODE TO ADD A NEW ARTICLE 9 FOR UNIVERSAL WATER AND SEWER MAIN LINE INSTALLATION CONSTRUCTION CHARGES Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Andrew Udj ak Chairman 1316 COUNTY-CITY $UILDING 227 W. JEFFERSON BOULEVARD SOUTH SEND, INDIANA 46601-1830 CITY OF SOUTH BEND STEPHEN J. LUECKE~ MAYOR DEPARTMENT OF PUBLIC WORKS GARY A. GILOT~ P.E. DIItECTOR OF PUBLIC WORKS November 6, 2001 Ms. Charlotte Pfeiffer, President South Bend Common Council 4`'' Floor, County-City Building South Bend, Indiana 46601 RE: Ordinance -Establishment of Universal Rate Connections to Water and Sewer Lines Dear President Pfeiffer: PHONE 219/235-9251 Fax 219/235-9171 TDD 219/235-5567 The attached Ordinance is a logical outgrowth of recent ordinances dealing with extensions of water and sewer lines. The Common Council had recently enacted ordinances that deal with each specific extension that we have done to the water or sewer system. This leads to slightly different unit prices as well as the timing of the issue of needing to do ordinances before each project to commence construction. The universal rates for connection to water and sewer are based on a review of recent prices for extensions of modest depth and sizes which would be necessary to serve residential developments. We have not included costs associated with our deepest or largest trunk sewers or transmission lines. These increment costs will be borne by all the rate payers of the water and sewer utility, whereas the initial connection cost is to recover a reasonable depth and size of water or sewer line costs. We have established water connection fees per lineal foot and sewer connection fees per square foot, based on lot sizes. The remainder of the ordinance reflects the standard language which you have seen in numerous individual ordinances with one policy exception. We are proposing that the past practice of 10% discount for lump sum payments be continued, but we are proposing the introduction of a below-market interest rate for time payment plans. We are suggesting that this rate vary from year to year as established by the City Controller through the Board of Public Works, and that in all instances the rate for contracts which initiate in the following calendar year would be 2% below the City's prime rate of borrowing, as established on December 1 of the previous calendar year. The interest rate would stay with the contract through the sixty (60) monthly payments and not be ENGINEERING ENVmONMENTAL SERVICES CENTRAL SERVICES STREETS WATER WORKS CARL LITTRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI SAM HENSLEY JOHN I: STANCATI 219/235-9251 219/277-8515 219/235-9316 219/235-9244 219/235-9322 FAx 219/235-9171 Fax 219/277-8980 Fax 219/235-9007 Fax 219/235-9272 Fax 219/235-9728 . . changed from year to year for any particular property owner. I will be present at your work session and Council meeting to explain the ordinance and answer any questions you might have. Sincerely, a ~2.~;,U U ./~ Gary A. Gilot, P.E. Director c: Mayor Steve Luecke Common Council Members Loretta Duda, City Clerk City Council Attorney water-sewer ordinance.wpd