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HomeMy WebLinkAboutBill 23-16 Amending various sections of the South Bend Municipal Code to include new rules and regulations for assessment of instalation chargesBill No. -16 Ordinance No. -16 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING VARIOUS SECTIONS OF CHAPTER 17, ARTICLE 10 OF THE SOUTH BEND MUNICIPAL CODE TO INCLUDE NEW RULES AND REGULATIONS FOR ASSESSMENT OF INSTALLATION CHARGES STATEMENT OF PURPOSE AND INTENT Chapter 17, Article 10 of the South Bend Municipal Code (the Code) covers construction fees for water and sewer installation. In particular, it addresses assessment of installation charges, which are fees intended to recoup the city's investment in the installation of water mains and sewers. Users wishing to connect to the system are charged a standard rate based on the size and /or dimension of their property. The purpose of this ordinance is to establish an effective date for the below mentioned assessments and to add language so that fees are only required of users wishing to connect to water mains and sewers constructed and funded by the City with the expectation of recoupment by the City. Essentially, the current ordinance requires assessment fees of all connections and does not differentiate between utilities installed by the City or a private developer or whether the utilities were installed by the City as part of an economic development agreement. This ordinance will clearly define exemptions for assessment charge and establish an effective date for implementation. In addition, it simplifies the presentation of the fee structure so as to reduce confusion. Now, Therefore, Be It Ordained by the Common Council of the City of South Bend, Indiana as follows: Section I. Chapter 17, Article 10 of the South Bend Municipal Code shall be amended to read in its entirety as follows: Sec. 17 -79. - Water main lines within City limits; uniform assessment of installation charges. (a) City residential water main charges. All owners of single farnily residential property located within the corporate limits of the City, except as defined by Sec. 17 -87, shall be assessed a proportionate share of the cost of water main line installation computed at twenty -three dollars and seventy -five cents ($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 two thousand dollars ($2,000.00) per single family residential parcel. (b) City commercial /industrial water main charges. (1) All owners of property used for commercial or industrial purposes located within the corporate limits of the City, except as defined by Sec. 17 -87, using twelve -inch diameter or larger main lines shall be assessed a proportionate share of the cost of water main line installation computed at the rate of thirty dollars and fifty -three cents ($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. (3) All owners of property used for commercial or industrial purposes located within the corporate limits of the City, except as defined by Sec. 17 -87, using water main lines less than twelve -inch diameter shall be assessed the same rate as residential users, that is twenty -three dollars and seventy -five cents ($23.75) per lineal foot (LF) without the maximum rate cap. (4) All assessments under this Section will be calculated based upon dimensions of the property boundary line from which the water main line is connected. Sec. 17 -80. - Water main line outside City limits; uniform 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, except as defined by Sec. 17- 87, shall be assessed a proportionate share of the cost of water main line installation computed at twenty -eight dollars and fifty cents ($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 of property used for commercial or industrial purposes located outside the corporate limits of the City, except as defined by Sec. 17 -87, using twelve -inch diameter or larger main lines shall be assessed a proportionate share of the cost of water main line installation computed at the rate of thirty -six dollars and sixty -four cents ($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. defined by See. I eommer-eial or- who require IVY U4V~• main lines in emeess of twelve ineh diameter shall be assessed a pr-epei4ionate share of the eest of the water- main line installation eompt4ed at the aetual 7 based on materials, time and plus an additional ten (10) pereei4 foF eests to the City asseeiate (3) All owners of property used for commercial or industrial purposes located outside the corporate limits of the City, except as defined by Sec. 17 -87, using water main lines less than twelve -inch diameter shall be assessed the same rate as non -City residential users, that is twenty -eight dollars and fifty cents ($28.50) per lineal foot (LF), with no maximum rate cap. M (4) All assessments under this Section will be calculated based upon the property frontage from which the water main line is connected. Sec. 17 -81. - Sewer main line; uniform 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, except as defined by Sec. 17 -87, whether residential, commercial or industrial. However, owners of single family residential real property located within the corporate limits of the City shall be limited to a maximum charge of three thousand dollars ($3,000.00) per single family residential tract. The rates below are rates for user /property owners inside the City limits as follows: Area of Property I Sewer Assessment of Installation Charge 0 to 25,000 SF $0.28 per SF 25,001 to 75,000 SF $7,000 plus $0.22 per SF over 25,000 SF up to 75,000 SF 75,001 to 125,000 SF $18,000 plus $0.14 per SF over 75,000 SF up to 125,000 SF 125,001 to 175,000 SF $25,000 plus $0.08 per SF over 125,000 SF up to 175,000 SF over 175,000 SF $29,000 plus $0.04 per SF over 175,000 SF For purposes of an example, a property with a 200,000 square feet shall be charged $29,000 for the first 175,000 square feet plus $1,000 for the remaining 25,000 square feet. Non -City user installation assessment -110% of above rates with no cap. Sec. 17 -82. - Effective date of charge assessment. 3 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 non - recurring charges, water and sewer service fund charges, availability fees, and other similar charges provided elsewhere under this chapter. 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. Sec. 17 -84. - Party responsible for payment of charge. The current 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. 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. 0 Sec. 17 -86. - Waiver of annexation and City compact fees. (a) Notwithstanding anyihing to the contrary contained herein, the effective date of this Section 17 -86 shall remain June 3 2002. cca (b) 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 waiver of right to demonstrate against annexation as a condition of tapping into the City's main line. (c) Effective January 1, 2017, aAs a further condition of non -City resident tap into City sewer — and/or water main lines, an owner of real property situated outside the City limits shall pay a compact fee annually to the City for one (1) utility (whether sewer or water service) which compact fee is thirty (30) percent of the difference between the County and City effective property tax. If two (2) utilities (both sewer and water service) are used, then the annual compact fee shall be fifty (50) percent of the difference between the County and City effective property tax. Sec. 17 -87. - P,.; ^r eontiracts unaffee Exemptions. (a) Owners who have either executed a permit to connect or who connected to the City's sewer or water line prior to July 1, 2016. In cases where the cost of sewer or water installation is covered by an entity other than the City or has otherwise been paid the Board of Works shall have the authority to enter into a reimbursement agreement with such entity or waive such assessments outright. (c) Re- connection to City sewer or water main lines constructed on or before July 1, 2016 or any property that has already paid its assessments in full. O Sewer or water installation assessments specifically addressed in development agreements executed by the Redevelopment Commission may be waived under this Section. O 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. 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. 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 any publication required by law. Member of the Common Council Attest: Kareemah Fowler, City Clerk Presented by me to Pete Buttigieg, the Mayor of the City of South Bend, Indiana on the day of , 2016, at o'clock —.m. Approved and signed by me on the o 'clock . M. I d READING PUBLIC HEARING 3 rd READING NOT APPROVED REFERRED PASSED Kareemah Fowler, City Clerk day of Pete Buttigieg Mayor of the City of South Bend, Indiana i� 2016, at Filed in Clerk's Office :APR 2 0 21016 KIAI�I E C3�t�1IeFI CITY CLEW, SOUTH BEND, IN