HomeMy WebLinkAboutC-262, As Amended-WITHDRAWN Sponsor:
ORDINANCE NO. C-262
AS AMENDED
Councdor Rattermann
AN ORDINANCE OF THE COMMON COUNCIL OF THE
CARMEL, INDIANA, ANNEXING CERTAIN TERRITORY
CITY OF CARMEL, INDIANA, PLACING THE SAME WIT
CORPORATE BOUNDARIES THEREOF ANE MAKING'
PART OF THE CITY OF CARMEL ~
WHEREAS, citizens living in Washington.
boundaries of the City of Carmel ("Cit
north of 146th Street; and
THE
A
the current corporate
the annexation of territory
WHEREAS, pursuant to that
fiscal and governmental, impacts of s
landowners; and
WHEREAS, during
held in Washington
their opinions; and ._
WHEREAS, th
to the landowners in tl
investi
City has
q and .
professionals to study the
City and on the affected
meetings' have beeh
receive information and voice
would be beneficial
should
of the affected
~and the
and
has
whether the citizens requesting annexation
36-4-3-5 and has determined that the size
owners would make such a ri~quirement
adopted following due notice and a public hearing;
and
Exhibit A, which also
of the territory sought to be annexed is attached hemt.o as
ludes a map thereof (the "Annexation Territory"); and
consists of approximately 4,783 acres; and
the Annexation Territory is at least 1/4 contiguous to the existing corporate
boundaries and
WH/EREAS, responsible planning and state law require adoption of a fiscal plan and a
definite poq. icy for the provision of services to the annexed areas; and
WHEREAS, Resolution #06-21-04-02 of the Common Council of the City of Carmel,
Indiana adopts a written fiscal plan, and definite policy for the provision of services of both a
noncapital and capital nature to the Annexation Territory; and
WHEREAS, because the Annexation Territory does not include at least three persons per
acre, it is not required that this Ordinance create a special fund pursuant to Ind. Code § 36-4-3-
8(c).
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Carmel, Indiana, as follows:
The above recitals are incorporated herein by rbference as though fully set forth herein
below.
In accordance with I.C. 36-4-3-4, the Annexation Territory is hereby annexed to the City
of Carmel and thereby included within its corporate boundaries pursuant to the temps of
t)is Ordinance.
The effective date of this annexation shall be tbie latter of January 1, 2005, or ninety (90)
days following its adoption and execution and publication as required by law.
4. The Annexation Area is assigned to Cannel Common Council District No. 2.
All prior Ordinances or parts thereof which may be inconsistent with any provision of
this Ordinance are hereby repealed. 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.
PASSED by the Common Council of the City of Carmel, Indiana, this
,2004, by a vote of ayes and nays.
day of
COMMON COUNCIL FOR THE CITY OF CARMEL
Presiding Officer
Ronald E. Carter, President Pro Tempore
Fredrick J. Glaser
Kevin Kirby
Brian D. Mayo
Mark Rattermann
-2-
Joseph C. Griffiths
Richard L. Sharp
ATTEST:
Diana L. Cordray, IAMC, Clerk-Treasurer
Presented by me to the Mayor of the City of Carmel, Indiana this
at .M.
day of 2004,
Diana L. Cordray, IAMC, Clerk-Treasurer
Approved by me, Mayor of the City of Carmel, Indiana, this
at .M.
day of 2004,
James Brainard, Mayor
ATTEST:
Diana L. Cordray, IAMC, Clerk-Treasurer
prepared by:
Nicholas K. Kile
Barnes & Thomburg
11 South Meridian Street
Indianapolis, Indiana 46204
-3-
EXHIBIT "A"
AREA DESCRIPTION
ANNEXATION ORDINANCE
SOUTHWEST WASHINGTON TOWNSHIP
A part of thc West Half of Section 3; All of the Northeast, Southeast, and Southwest
Quarters, and a part of the Northwest Quarter of Section 4; A part of the Northeast,
and Southeast Quarters of Section 5; A part of the Southeast Quarter of Section 7;
All of the East Half, and part of the Southwest Quarter of Section 8; All of Section
9; A part of the Southeast, Southwest, and Northwest Quarters of Section 10; A part
of the South Half of Section 11; A part of the Southwest Quarter of Section 12; A
part of the West Half of Section 13; All of the Southeast, Southwest, and Northwest
Quarters, and part of the Northeast Quarter of Section 14; All of Sections 15 and
16; All of the Southeast, Southwest, and Northwest Quarters and a part of the
Northeast Quarter of Section 17; All of the Southeast Quarter, and part of the
Northeast, Southwest, and Northwest, of Section 18; A part of the North Half of
Sections 19, 20, 21, 22, and 23 ALL in Township 18 North, Range 3 East in
Hamilton County, Indiana, being more particularly described as follows:
BEGINNING at the intersection of the South right-of-way of 146th Street and the West
right-of-way of Little Eagle Creek Avenue;
Thence East along the South right-of-way on 146th Street to the West right-of-way of Oak
Ridge Road;
Thence North, approximately 1,900 feet, along the West right-of-way on Oak Ridge
Road;
Thence East, approximately 60 feet, crossing Oak Ridge Road to the Southwest comer of
~Parcel #0809130301017.000;
Thence East, approximately 1,270 feet, along the South property line of Parcel
#0809130301017.000 to the East property line of Parcel #0809130301017.000;
Thence North, approximately 20 feet, along the East property line of Parcel
#0809130301017.000 to the North property line of Parcel #0809130301017.000;
Thence continuing North, approximately 480 feet, along the Village Farms subdivision
East properly line;
Thence East approximately 1,190 feet, along the Village Famls subdivision South
property line to the West right-of-way of Corral Court;
Thence North approximately 170 feet, along the West right-of-way of Corral Court to the
South right-of-way of Greyhound Pass;
Thence East, approximately 70 feet, along the South right-of-way of Greyhound pass,
crossing Corral Court, to the East right-of-way of Corral Court, also being the West right-
of-way of The Monon Trail;
Thence North, approximately 1,160 feet, along the West right-of-way of The Morion
Trail;
Thence West, approximately 155 feet, along the Village Farms subdivision North
property line;
Thence North, a~pproximately 500 feet, along the Village Farms subdivision East property
line;
Thence West, approximately 2,350 feet, along the Village Farms subdivision North
property line to the East right-of-way of Oak Ridge Road;
Thence North along the East right-of-way of Oak Ridge Road to the North right-of-way
of 156th Street;
Thence West, approximately 1,310 feet, along the North right-of-way of 156th Street to
the Oak Ridge Crossing subdivision East property line;
Thence South, approximately 80 feet, crossing 156th Street to the South right-of-way of
156th Street;
Thence West, approximately 1,325 feet, along the South right-of-way of 156th Street to
the West property line of the Oak Ridge Crossing subdivision;
Thence North, approximately 80 feet, crossing 156th Street to the North right-of-way of
156th Street;
Thence West along the North right-of-way of 156th Street to the East right-of-way of
Ditch Road;
Thence North along the East right-of-way of Ditch Road to the South right-of-way of
State 'Road 32;
Thence West along the South right-of-way of State Road 32 to the west right-of-way of
EagIetown Road;
Thence South along the West right-of-way of Eagletown Road, approximately 1,150 feet,
to the North property line of Parcel #0809040000008.000;
Thence West along the North property line of Parcel #0809040000008.000 to the West
right-of-way of Little Eagle Creek Avenue;
Thence Southwesterly along the Westerly right-of-way of Little Eagle Creek Avenue past
166th Street to the West property line of Parcel #0809080000011.000;
Thence South along the West property lines of Parcels 0809080000011.000, and
0809080000010.001 to the North right-of-way of 159th Street;
Thence West along the North right-of-way of 159th Street to the North right-of-way of
Little Eagle Creek Avenue;
Thence West and Southwesterly along the North and Westerly right-of-way lines of Little
Eagle Creek Avenue to the PLACE OF BEGINNING.
Excepting therefrom:
Parcel #0809170000007.001, located at the Southwest corner of 156th Street and Towne
Road, in the Northeast Corner of Section 17, Township 18 North, Range 3 East in
Hamilton County, Indiana.
The aggregate total acreage is 4,783 acres more of less, subject to all legal easements
and Right of Way of record.
HAMILTON BOONE RD
JOLIET RD
/
mICHERRY TREE RD m
= RIVER AVE
June '1, 2004
Michael R. Shaver, President
3799 Steeplechase Drive
Carmel, IN 46032
(voice) 317/872-9529
(fax) 317/872-9885
(e-mail) wabsci@aol.com
(this document offered for the purpose of generating comments and discussion attd
specifically not for public release)
Policy Considerations
It must be clearly understood that this annexation action was initiated by
residents of the annexation area. Residents of the annexation area have
appeared before the Carmel City Council to personally request annexation
by the City of Can,nel, as well as making similar requests of Carmel City
Councillors by e-mail. As the process unfolds, the City of Carmel will be
able to see the depth and breadth of the related issues and determine
whether annexation by Carmel is the best alternative for Cannel and for
the residents of the annexation area.
The fact that municipalities must compete witb one another is a major
contributing factor to the story of events which led these residents to
pursue annexation to the City of Carmel. Clearly, the residents felt that
they had a choice between being affiliated with two municipalities and
they chose to exercise that choice. The statutory thresholds for a voluntary
annexation under |C36-4-3-5 am substantial, and while the residents of the
annexation area have made their request publicly, it is somewhat
unreasonable to expect them to be so well organized to generate signatures
from 51% of the land owners in the area. Carmel will proceed with the
statutory process for annexation under IC36-4-3, as requested by the
residents of the annexation area.
Statement of Intent
As a matter ofipolicy, the City of CarmeI will pursue this annexation with
the intent of pursuing a policy of cooperation with the Town of Westfield.
Research into the annexation reveals that the finances of the Town and, its
utilities are precarious, at best. Public testimony of Westfield officials
confirms that finding. As such, this Fiscal Plan has been developed with
optimum deference to the principles of inter-governmental cooperation,
especially as provided in IC36-1-3-9.
It is obvious that such cooperation must be fair to both parties. But more
important than the interests of the City or the Town is the principle of
providing the best possible services to the resident~ of the area, at the
lowest possible cost. Therefore, we find that any previous "claims" to the
annexation territory are fallacious and fly in the face of the importance of
the residents, themselves, as the central focus of concern in any action by
any public body or agency. The annexation territory does not "belong" to
either Carmel or Westfiehl. It belongs to the residents qf the area.
City of Carmel: Annexation of a Portion of Southern Washington Township 2
Municipafities Must Compete
It should also be noted that similar disputes have erupted in other areas of
the state. It is common for people to voice an opinion on a matter of
public interest and to disagree with decisions made by public officials.
What is unusual in this case is that the residents of the annexation area
possessed an option which could be viably exercised in selecting which
municipality they would want to affiliate with. Most subdivisions have no
such choice.
The vast majority of people select 'their municipality' when they pumhase
their home. Beyond that initial purchase, the normal functions of local
government rarely offers choices. Therefore, any "competition" between
communities occurs at the home purchase decision, and then becomes
moot. It is only the sum of several thousand such home-pumhase
decisions that demonstrates the competitive differences between
communities.
But this case potentially carries a larger lesson about the competition
between communities. The fact is that communities compete every day,
literally hundreds of times, often without knowing that they are competing.
And in the case of this Washington Township annexation, the issue of
competition between communities and that abstract factor called "quality
of life" is a central issue which cannot be ignored.
Statutory Considerations
Indiana law defines a series of statutory issues which must be addressed in
order to implement an annexation, or to respond to a remonstrance action,
as contained in IC36-4-3-13. These statutory issues are briefly addressed
below.
Contiguity
The Washington Township Annexation Area is more than 25% contiguous
to the existing corporate limits of the City of Carmel.
Population Density
The estimated population density of the annexation area is less than 3.0
persons per acre.
City of Carmel: Annexation of a Portion of Southern Washington Township
"Needed & Can Be Used"
The Washington Township Annexation Area is 'needed and can be used
by the City for its development' at this time. While the issue of"need"
with respect to the City of Carmel is not a motivation of this annexation
action, the statute nonetheless requires that the issue be addressed. There
are several ways in which the City of Carmel affirms that the area is
"needed and can be used," in accordance with IC36-4-3-13 (d)(2), as
follows:
Washington Township development patterns have a direct impact on the
thoroughfares of Clay Township because high density residential
development generates increased traffic burdens on thoroughfares
connecting residential areas with employment centers. High density
development existing and proposed for Washington Township will have a
direct impact on traffic volumes on major thoroughfares such as Towne
Road, Shelborne Road, Ditch Road and Spring Mill Road, with substantial
impact on those corridors which cross 1-465 into Marion County.
Carmel's overall development density has traditionally run at
approximately one housing unit per acre. In meetings between Town
officials of Westfield and City of Carmel officials, Westfield officials stated
that Westfield intends an overall development intensity of 3 units per
acre. This is a substantial difference in intended developmental intensity.
Since major north/south thoroughfares connecting Westfield to
employment centers run through Carmel, Carmel must exercise some
control over the issue of development intensity, if for no other reason than
controlling the growth of traffic jams on Carmel thoroughfares.
Washington Township residents have expressed an interest in being
annexed by the City of Carmel, as directly opposed to annexation by the
Town of Westfield. The extent of this interest is not yet fully
demonstrated but the public hearing process should help to reveal the
extent of public support for Carmel's annexation. However, this
expression of public interest has specifically cited the need for higher
quality development standards to govern new development in the
annexation area in order to protect property values in the area, as well as
helping to hold property tax rates down, and other reasons.
Annexation statutes directly empower cities to implement growth interests
over the powers of municipal towns. This statutory differentiation in
powers is believed to have been effected in order to support the growth of
cities and the municipal services provided by cities.
The Carmel/Clay Comprehensive Plan indicates that development of
Clay Township will be complete by the year 2020, further suppodin§ the
need to control growth in Washington Township through more careful
planning and enforcement of higher development standards. Planning
horizons generally require the development and implementation ef
specific development policies and standards in excess of 10 years prior
to actual development proposals in order to properly assimilate the high
standards in the growth area, especially in high-growth areas such as
Hamilton County. The ability to grow into Washington Township wilt
City of Carmel: Annexation of a Portion of Southern Washington Township 4
enable Carmel to continue its growth past the projected 2020 time line,
For these and other reasons, the City of Carmel hereby affirms that the
Washington Township annexation area is needed and can be used for the
development of the City of Carmel in the reasonably near future, as
required by statute.
Projected Annexation Schedule
All non-capital services will be provided to the annexed territory within
one year after the effective date of annexation, and will be provided in a
manner equivalent in standard and scope to the non-capital municipal
services provided to the areas within the corporate boundaries of the City.
The City Administration, Department of Law, City Council and Clerk-
Treasurer have already begun the planning for extension of the non-capital
services of their offices, and have initiated efforts to organize existing and
future resources necessary to assure that the extension of services occurs in
as smooth and efficient a manner as possible. The projected effective date
of the annexation is to be February 15, 2005, with all non-capital services
to be in place within one year of the final effective date, as required by
statute, and all capital services extended within 3 years of the effective
date.
Plan for Extending Services
The City of Carmel has developed both short- and long-term plans for
extending services to the proposed annexation area in Washington
Township, in order to smoothly integrate and potentially upgrade services
to the annexation area. These plans generally exceed the minimum
statutory parameters oflC36-4-3, and are intended to provide the residents
of the annexation territory with a clear picture of the policy direction
intended for the area by the City of Carmel, in order to enable residents of
the area to make educated choices regarding the annexation.
The City of Cannel recognizes die following municipal departments and
agencies as providing municipal services to residents of the City:
Administration (non-capital services)
Clerk-Treasurer (non-capital services)
City Council (non-capital services)
Department of Law (non-capital services)
Department of Community Services (non-capital services
Engineering Department (non-capital services)
Police Department (non-capital services)
F'ire Department (non-capital services)
Street Department (capital and non-capital services)
City of Carmel: Annexation of a Portion of Southern Washington Township
Carmel Utilities (capital services)
All municipal services are defined in the Annexation Policies of the City
of Carmel, as approved by resolution of the City Council, and reinforced
below.
Non-Capital Services
IC36-4-3-13 requires that non-capital services be extended within one year
of the effective date of annexation in a manner equivalent in standard and
scope to those nofi-capital services provided to areas within the corporate
boundaries. Statute specific cites police protection, fire protection,
street/road maintenance, and "other" non-capital services.
This Fiscal Plan hereby affirms that all non-capital services will be
extended to the annexation area within one year of the effective date, as
required by statute, and in some cases, the statutory minimum will be
exceeded by extending the service prior to the one year deadline.
Capital Services
IC36-4-3-13 requires that capital services of the municipality be extended
to the annexation area within 3 years of the effective date of the
annexation in the same manner as those services are provided to the rest of
the city, and "in a manner consistent with federal, state, and local laws,
procedures andpiamdng criteria." The statute specifically cites street
construction, street lighting, sewer facilities, water facilities, and
stormwater drainage facilities as capital services.
This fiscal plan hereby affirms that all capital services of the City of
Carmel will be extended to the annexation area within 3 years of the
effective date of the annexation, as required by IC36-4-3-13, with further
explanation provided below.
Municipal Administration & Elections
The following represents the City's Plan for extending non-capital services
to the annexation area on a department-by-department basis.
MUNICIPAL ELECTIONS
Residents of the Washington Township area will become eligible to vote
for municipal officers, including the Mayor, Clerk Treasurer, City Council,
City of Carmel: Annexation of a Portion of Southern Washington Township
etc., in regular and special elections beginning on the effective date of the
annexation.
CITY ADMINISTRA TION/MA YOR 'S OFFICE
The City Administration provides services under direction of the Mayor,
who serves as Chief Executive Officer of the City, including all Mayoral/
Administrative staff. (The Mayor also directs the activities of several
other City departments.) The City Administration helps to develop and
administer municipal policy, as well as dealing with citizen requests of
various types.
In addition, some of the services of the City Administration are already
available to the residents of the Washington Toxvnship area by virtue of
telephone calls and requests for information related to this proposed
annexation, as well as other matters germane to the common interests of
the residents of the annexation area, and the City.
Sera,ices of the City Administration will be made available to the residents
of the Washington Township area on the date the annexation becomes
effective and will be extended in a manner equivalent to the services
provided to the other areas within the corporate boundaries of the City.
CLERK-TRE/tSURER
The Clerk-Treasurer serves as the Chief Financial Officer for the City.
The office is responsible for receiving and paying invoices for goods and
services, as well as managing and investing revenue streams received by
the City. Tbe financial services of the Clerk Treasurer are provided on
behalf of the residents of the City, but do not accrue directly to the
residents of the City, per se. While the public is entitled to access to
public documents generated by the Clerk Treasurer's office, and entitled to
discuss matters of fiscal policy, the Clark-Treasurer does not generally
provide direct financial services to individual residents.
The services of the Clerk Treasurer's office will be made available to the
residents of the Washington Township area on the date the annexation
becomes effective, and will be extended in a manner equivalent to the
services provMed to the other areas within the corporate boundaries of
the City.
CITY COUNCIL
The City Council ora Third Class City serves as the Legislative Branch of
municipal government, with 7 councillors elected by residents of the City.
City of CarmeL: Annexation of a Portion of Southern Washington Township 7
The opportunity to vote for city council and other municipal offices, as
well as to vote in any special elections of the City will be extended to the
residents of the Washington Township area upon the effective date of the
annexation.
However, it must also be added that the Carmel City Council already
extends many of its services and opportunities to be heard to the residents
of the Washington Township area. Such services include the opportunity
to testify before the City Council at public hearings, the opportunity to
address the Council at Council meetings, as well as Council Committee
meetings, and the opportunity to discuss issues deemed important by the
residents of the area with the City Council, either individually or
collectively. Residents of the Washington Township area have often been
afforded the opportunity to express their views in shaping development
policy for the community at large, despite the fact that they were not
residents of the incorporated city. As such, some of the services of the
City Council have already been afforded to residents of the area.
The services of the City Council will be available to the residents of the
I~Yashington Township area on the date the annexation becomes effective,
and ~vill be extended in a manner equivalent to the se~n,ices provided to the
other areas within the corporate boundaries of the CIO,.
DEPARTMENT OF LA IY
The Department of Law (DOL) provides legal services to the City of
Carmel for the purposes of creating and enforcing local ordinances, as well
as administering legal issues and processes of the City in its various
activities. The services of the Department of Law are provided solely to
the incorporated City of Carmel and its departments and agencies,
especially in defending the City against legal actions by outside parties.
The services of the Department of Law are not formally extended to
citizens and/or residents of the City, therefore, the services of the
Department of Law will be available to the residents of the Washington
Township area to consult with the Department of Law on matters related
to city ordinances or other legal matters relating to the fitnctions of the
incorporated city. The services of the Department of Law shall be
provided to the residents of the annexation area in a manner equivalent to
the services DOL provides to the other areas within the corporate
boundaries of the CiO~ upon the effective date of the annexation.
CITY COURT
The proposed annexation wilI have an impact on the City Court.
Currently, the County Sheriff patrols the roads in the annexation area and
City of Carmel: Annexation of a Portion of Southern Washington Township 8
any traffic infraction or citation is sent to County Courts in Noblesville for
ajudication. After the effective date of annexation, the City Police will
patrol the area and traffic infractions, as well as any activity will be
ajudicated in the City Court. This is projected to significantly increase the
court case load, and the cost of operating the City Court. As a result of
previous annexations, the Court caseload increased 15% in 2003 (over
2002 levels).
The following is a breakdown of anticipated increases in the cost of
operating the City Court as a result of the proposed annexation.
Projected Impact of Annexation on City Court
min max
1 new employee w/overhead $65.000 $70,000
2 add'l bailiffs for one additional court day per week$12,000 $15,000
Increase in Judge's work load $5,000 $5,000
Miscellaneous supplies, materials, doc storage, etc. $1,500 $2,000
Total estimated increase $83,500 $92,000
History of the City Court
When Judge Bardach became City Judge in 1993, the Court had 5
employees (4 full-, 1 part-time). In 2004, the Court still has 5
employees (all full time), despite a significant increase in the case
load. Increases in efficiency, however, have been maximized and
future increased case loads will generate a need for additional
resources.
Between 2002 and 2003, annexations have caused the caseload to
increase 15%, with another increase of 15%-20% increase
projected for 2004 (resulting from continued annexation). The
Judge has already requested 2 additional employees to handle
increased case loads resulting from 2003 and 2004 annexations
(bringing the total employees in the City Court to 7. Further, the
Court is adding another day of court each week over the current
average (of2 days per week). The proposed annexation is
projected to continue this trend of increasing court demand.
The sen,ices of the City Court will be provMed to the annexation area
during the course of the year following the effective date of the
annexation. As City Police begin to write traffic tickets in the annexation
City of Carmel: Annexation of a Portion of Southern Washington Township 9
area, the services of the City Court will be extended into the annexation
area.
CARMEL REDEVELOPMENT COMMISSION
There is no portion of the annexation area which is under the jurisdiction
of the Carmel Redevelopment Commission (CRC) at this time. However,
immediately upon the effective date of the annexation, the CRC could
consider the designation of any areas which are deemed to meet the
statutory findings of fact (for creation of an economic development area)
or findings of blight (for creation of a redevelopment area). Such a
determination by the CRC is subject to a specific statutory process, and
while such designations will be made available to the annexation area on
the effective date of the annexation, there are no such designations
anticipated at this time. In the event that residents and owners of property
within the annexation area request such a designation, the CRC will
consider such a request and take actions in a manner that is equivalent in
standard and scope to similar requests for other parts of the city.
CARMEL COMMUNICATIONS CENTER
The proposed annexation wiI1 have a definite impact on the services of the
Communications Center. The Director oftbe Communications Center has
anticipated the combined impact of annexation and growth and has
endeavored to plan for smooth transitions to increasing the service
territory by increasing the hardware capability of the communications
center.
The Director anticipates receiving a total of more than 6,000 emergency
calls, reporting an estimated 5,000 emergencies, resulting from this
annexation. The shift in call handling responsibility will not be
insignificant, however, the Communications Center is aware of the growth
in demand and has been increasing efficiencies of operation in order to
optimize performance.
Within the last 3 years, the Communications Center has increased from 4
to 6 consoles. The departmental staffing runs for 4 shifts per day, meaning
that staffing requirement the hire of 4 new people to operate one work
station for a 24-bour period. Two work stations have already been added
to reduce capital costs associated with these services (therefore, 8 people
will be needed to operate the 2 new consoles). The table belo~v projects
the personnel and other needs of the Communications Center with regard
to this annexation.
City of Carmel: Annexation of a Portion of Southern Washington Township ~ 0
At this time, the Director anticipates requesting 2 new employees for the
2005 budget year. If those positions are not filled in anticipation of the
proposed annexation, it is anticipated that the proposed annexation will
require the addition of the following resources to the Communications
Center in order to assure the extension of these non-capital services into
the annexation area. In addition, the Director has requested additional
technical personnel to enable the Communications Center to provide
additional installation and technical support to the Police Department for
the existing annexations.
Projected Impact of Annexation on Communications Center
hire date # employees est unit cost est. total cost
3/05 1 $48,000 $48,000
9/05 1 $48,000 $48,000
3/06 1 $48,000 $48,000
9/06 1 $48,000 $48,000
total 4 $192,000 $192,000
The services of the Communications Center will be provided to the
annexation area one year c¢er the effective date of the annexation (no
later than 2/15/06). The Director has already taken steps to secure the
necessary hardware for the Center and to make preparations to convert the
annexation area to Carmel calls, rather than to the County. The Director
expects the assimilation to be handled smoothly.
PROJECTED IMPACT OF THE ANNEXATION ON ClTYSERVICES
The City of Carmel has made it common policy to anticipate growth and to
include the cost of extending services to new residents (even new residents
in areas previously annexed) in each annual budget. A review of the
budget records clearly shows that Carmel has been meticulous is assuring
that service demands are anticipated in advance and that high-quality
services are maintained. Due to this policy, Carmel has programmed itself
for growth from both a fiscal and a service perspective, regardless of
where that growth occurs (again, much of Carmel's growth occurs inside
areas already incorporated).
With regard to this annexation, it is expected that most of the demand for
additional administrative services can be handled through increase in
organizational productivity.
City of Carmel: Annexation of a Portion of Southern Washington Township
The City Administration, including both elected officials and Department
Directors will assess the increased demand for Administration services and
will add 1-3 full-time equivalent positions within the City Administrative
offices. These full-time-equivalent positions could be achieved in two
basic ways. First, the City may hire full- or part-time personnel to handle
the increased demand for services. Second, and more likely, the increased
demand may be met through overtime expenditures for existing staff,
which is expected to be substantially cheaper due to overhead and benefit
costs.
Planning & Zoning Services Are Key
The entire annexation question in Washington Township arose directly
from a controversial zoning decision by the Westfield Town Council
where conmnercial development was approved for an area zoned for
residential land use. Consequently, a significant amount of time has been
invested by the City of Carmel in development of a viable plan for
extending planning and zoning services into the annexation area.
The method for extending planning and zoning services into Washington
Township will involve several proposed steps and decisions, explained as
follows.
CREATION OF A "CITIZENS' DEVELOPMENT ADVISORY BOARD"
In order to monitor development proposals in the annexation area, the City
of Carmel would propose to create a Citizens' Development Advisory
Board (CDAB). The CDAB would review development proposals and
provide recommendations related to the proposed development, and those
recommendations would then be considered by the Carmel Plan
Commission. The preliminary suggestion for configuration of the CDAB
would be composed of one or more residents of the annexation area, as
well as at least one member of the Carmel Plan Commission and at least
one member of the Carmel City Council, thus enabling the residents of the
area to have a direct voice in development proposals which are received,
as well as making both the Carmel Plan Commission and the Carmel City
Council aware of such development proposals and the potential
implications thereof. It is also possible to include representation of other
affected boards or bodies that would be affected by planning and zoning
decisions. It is anticipated that the CDAB would serve in the interim .
between the effective date of annexation and the approval of the new
Comprehensive Plan for the area (presented below), with the CDAB
ceasing operation upon approval of the new comprehensive plan covering
the annexation area.
City of Carmel: Annexation of a Portion of Southern Washington Township 12
The provision of such a Citizens' Development Advisory Board exceeds
the statutory requirements oflC36-4-3, however, the City of Carmel
believes that such an advisory board is appropriate when considering the
facts in this case. The decisions of the Citizens' Development Advisory
Board will be advisory only because such a Board has no statutory
authority, however, the provision of such a Board is designed to assure
that residents and leadership have a clear voice in the development process
within the annexation area.
WESTFIELD ZONING DESIGNATIONS TO BE LEFT IN PLACE, IVITH CITY OF
CARMEL DEVELOPMENT STANDARDS
Upon the effective date of the annexation, the City of Carmel's
Department of Community Services (DOCS) will assume control of all
planning and zoning services for the annexation area (thus exceeding the
requirements of statute). DOCS will continue to use the current zoning
and land use designations for the annexation area, as designated in the
Westfield Comprehensive Plan, in order to assure continuity in the
provision of planning and zoning services. DOCS staff has already
informally initiated the effort to familiarize themselves with the contents
of the Westfield Comprehensive Plan and zoning for the annexation area.
Beginning on the effective date of the annexation, the City of Carmel will
identify the closest zoning designation under the Carmel zoning ordinance
to the zoning designations of the Town of Westfield. Carmel will then
apply the development standards of the City of Carmel to any development
proposal which is received thereafter. This provision again exceeds the
minimum requirements of statute in this regard. Generally speaking, it is
believed that the development standards of the City of Carmel are higher
and more demanding than those of Westfield, therefore, the increase in
development standards is expected to result in a higher quality of
development over the long term future of the annexation area.
DEVELOPMENT OF A SPECIAL PLAN FOR WASHINGTON TO}VNSHIP
In order to create a consistent platform for future development, the City of
Carmel will also commission a new comprehensive plan for the
Washington Township annexation area. This new Comprehensive Plan
will be developed by the Carmel Plan Commission (CPC) and will be
executed on the same format and with the same attention to development
parameters and long-term development goals as the current comprehensive
plans (including special area plans developed for certain areas of Carmel
which have been developed for Carmel and Clay Township. The new
Comprehensive Plan will include citizen input from Washington
Township, and will ultimately respond to the long-term development
City of Carmel: Annexation of a Portion of Southern Washington Township 13
potential of the annexation area, including provisions for infrastructure
systems to support new development in the annexation area.
It is expected that the effort to create the new Comprehensive Plan will
begin within the first year after the effective date of the annexation,
however, the final conclusion of the planning process will be heavily
dependant upon the citizen input and consensus developed as part of the
comprehensive planning process. The new comprehensive plan for the
annexation area exceeds the miltimum statutory requirements for
annexation and goes substantially beyond the historic provisions for
extending planning and zoning services to an annexation area.
DEVELOPMENT OF .4 NEW THOROUGHFARE PLAN
During the discussions between Carmel officials met with Westfield
officials leading up to the proposed annexation action, Westfield officials
related that the assumed overall development density for the annexation
area was projected to be 3 units per acm. This development density is
substantially higher than tim overall development density in Carmel, which
will be taken into account in the development of the new comprehensive
plan (above).
In addition to the new comprehensive plan, the City of Carmel also
proposes to develop a new Thoroughfare Plan for the annexation area to
help the City in identifying key issues and setting standards for
thoroughfare improvements, including the following:
projecting future traffic loads;
determining the roadway widths needed to handle future traffic loads;
setting standards for appropriate right of way dedication;
determining auxiliary facilities, such as bike paths and greenways to
accompany roadway corridors;
identifying future roadway improvement projects;
developing priorities for project construction; and
setting developer requirements for roadway improvements needed as a
result of developer's proposals, among other issues.
This proposed Thoroughfare Plan will include a capital improvements plan
for the roadways in the annexation area, which will then serve as the basis
for future implementation o[' the capital services of the Street Department
and the City Engineer's office.
IMPACT OF THE {~'.,4SHINGTON TOIVNSHIP ANNEXATION ON DOCS
The above recommendations for extending planning services into
Washington Township is estimated to cost $150,000-$200,000 during the
first year after annexation, and continuing forward. This cost estimate is
City of Carmel: Annexation of a Portion of Southern Washington Township
14
based on the projection of a nominal increase in DOCS staffduring thc
first year after the effective date of the annexation, as well as the first year
cost of consulting services for the new Washington Township
Comprehensive Plan. Additional staffing for DOCS is projected to be 1-2
new people, beginning the year after the new comprehensive plan is
approved (2006), at an estimated cost of $75,000 per employee.
It is not possible to accurately predict the need for additional DOCS
staffing after the new comprehensive plan is approved. It seems clear that
the development of a new comprehensive plan will require the
attention/supervision of the senior staff o f DOCS. Once the new plan is
complete and approved, it is projected that 1-2 new staffpeople will be
required to manage the plan, review the development proposals for
Washington Township, inspect new construction, and provide code
enforcement in the annexation area. The projected cost of $150,000-
$200,000 per year going forward assumes that the cost of consulting will
be phased out as work on the new plan is completed, and the cost of
permanent staff will replace the consulting cost.
It is further projected that the City of Carmel would be receptive to
employment interest from the development staffpersonnel of the Town of
Westfield, assuming that institutional knowledge of the annexation area
can be adjusted to reflect the increased development standards of Carmel.
POSSIBLE INVOLVEMENT OF THE SCHOOL CORPORATION IN DEVELOPMENT
PLANNING
It is noted that the property tax rate ~or the Westfield Washington School
Corporation is a sensitive fiscal issue. As a general issue of development
and municipal fiscal policy, it would appear prudent for the Carmel Plan
Commission to hold discussions with the Westfield Washington School
corporation regarding development policy for Washington Township.
It has long been understood by Indiana planners that 4-bedroom houses
place a strain on the local school corporations, because of the number of
students generally occupying such homes. Westfield's development
pattern suggests a propensity for the development of 4-bedroom houses at
a fairly high development density. Measurement of the impact of such
development on the School Corporation should be included in the ne~v
comprehensive plan for the annexation area.
Historically, the Carmel Plan Commission has managed to achieve a blend
of development which has kept the school tax rate at reasonable levels. It
is possible that some ot~ those development policies would serve the
Westfield Washington School Corporation by increasing revenue streams
City of Carmel: Annexation of a Portion of Southern Washington Township
to the school corporation without disproportionately increasing student
enrolment and other demands on the schools. This possibility deserves to
be carefully explored as the development of the area continues, and future
development policies for the area should reflect an interest in helping the
schools to achieve their goals.
City Engineer's Office
The City Engineer does not anticipate the need for additional staff as a
result of this annexation. Further, the City Engineer's office indicates that
service to the residents of the annexation area will commence on the
effective date.
Services of the Street Department
~/~a~lan§ton Toumsll; annexation area .ave am§, proportion o~ c,m and seal
;ur;acee. ~m condmon m mm~lar tn toe condmons o; some o; me undeveto~
aCCDrdance re;th the nero ~UrDUg~are PMn gbDVe .
manner tl~at m e~lur~alent tn tl~e eer~ceB a~orded tl~e other ,ncorpnrated area. o~
Estimate of Cost: Extending Carmel Street Department Services
to Washington Township
New Employees -
Cost of Employees (Including fringe)
Fuels, Tires, Oils
Gravel, Sand, Bituminous, Paint
Salt
Paving, Striping
7
$361,347
$11,900
$6,000
$31,450
$312,000
City of Carmel: Annexation of a Portion of Southern Washington Township
tEquipment $667,600
Total of Costs $~
u]lth the ~ntensity Df development, and In accordance mlth the pruwglon; of the new
~DrDughfare Plan. ~e City Df Carmel currentlg Im~eB ;ce. ua de.lopers ;or
m~or roa~ improvement~. ~h r~UCe f~e final im~ct Df BUCh roadmag
annexation, aB required bg 103~3.
Extending Services of the Po/ice Department
The table below shows thc staffing levels of the Carmel Police Department
since 2001, with the 2004 staffing number as of April 14, 2004. Thc
projected st~ffing for 2005 includes 4 new officers budgeted for hiring
after June 30, 2004, and another 4 officers budgeted for hire after
September 30, 2004.
Carmel Police Department Staffing: 2001-2004
year Sworn officers civilian
2001 75 14
City of Carmel: Annexation of a Portion of Southern Washington Township
2002 77 14
2003 82 14
2004(current) 92 15
The above table clearly shows that Cam~el has established a pattern of
expanding Police service which corresponds to the growth of the
community, with the addition of 10 new officers since 2003. IC36-4-3-13
identifies Police service as a non-capital municipal service.
EXTENDING POLICE SERVICE TO W.4StIINGTON TOWNSHIP
If the Washington Township area is annexed into the City of Carmel, it is
projected that the Police Department would add approximately 6-7 new
officers in 2006, including road patrols and possibly a crime investigator.
Historically, the department has been able to increase operating
efficiencies in the civilian staff to compensate for growth in the City, and
these increases in efficiency are projected to continue, as shown. The table
below provides a detailed breakdown of the estimated cost of extending
police service to Washington Township.
Estimated Cost of Extending Police Service to Washington Township
units unit cost Est. cost of service
min max min max min max
personnel & 6 7 $90,000 $100,000 $540,000 $700,000
equipment
automobiles 6 7 $18,000 $20,000 $108,000 $140,000
auto eqpt. 6 7 $15,000 $18,000 $90,000 $126,000
operating exp. 6 7 $2,250 $3,000 $13,500 $21,000
Est. Total Cost $125,250 $141,000 $751,500 $987,000
The Police Department would anticipate initiating police patrols in the
annexation area one year after the effective date of the annexation
(February, 2006). The Carmel Police Department has an excellent
working relationship with the County Sheriff', and the County Sheriff
would continue patrolling the area until the transition is made to City
responsibility.
The projected costs for automobiles is annualized through a leasing
program which enables the City to lease police cars in a fully equipped
City of Carmel: Annexation of a Portion of Southern Washington Township
condition, thereby reducing the fiscal strain associated with large cash
pumhases.
Extending Services of the Fire Department
The Carmel/Clay Fire Department has constructed, equipped and staffed a
new station at 136th & Spring Mill Road, one mile south of the annexation
area. In addition, another new station is being planned at 13 1st and
Shelbome Road to serve western Clay Township and southern Washington
Township as development in the area intensifies. This planned fire station
is currently located 1.5 miles south of the annexation area, and further
supplements an existing tim station located at 106th & Shelbome,
approximately 2.5 miles south of the proposed station at 131 st &
Shelborne. The fire station at 13l~t & Shelbome is projected to be built
within the next 3-4 years.
The Fire Department has assured the City that these two fire stations can
respond to fires in the annexation area within the standard time. Inasmuch
as the developed portions of the annexation area are located within a mile
of the existing fire station at 136th & Spring Mill, the Fire Department
indicates that fire service can be extended to the annexation area within
one year of the effective date of annexation in a manner equivalent in
standard and scope to the fire protection service afforded to the
incorporated city.
In the interim between the effective date of the annexation and one year
after the effective date of the annexation (when Carmel municipal fire
protection will commence, per IC36-4-3-13), the Cannel Fire Department
will respond as mutual aid respondents to fires in the anneStation area.
Services of the Water Utility
The City of Carmel hereby states its intent to provide municipal services to
the residents of the annexation area in accordance with IC36-4-3.
Furthermore, the City of Carmel hereby states the following as matters of
primary policy with regard to extending municipal services to the
annexation area:
That residents of the annexation area be protected from
inappropriate increases in water user rates.
City of Carmel: Annexation of a Portion of Southern Washington Township 9
That residents of the annexation area be assured of the supply and
quality of water.
That residents of the annexation area be treated fairly and equitably
with respect to water utility service.
These basic policy positions deliberately do not address who supplies the
water to the annexation area, so long as it is supplied in adequate amounts,
at adequate pressures, of sufficient quality, and at a fair price. While it
would be a long-term financial benefit to Carmel Utilities to provide
service to residents of the annexation area, the City of Carmel's primary
interest is in developing alternatives which provide the best possible
service to residents of the annexation area at the lowest possible cost.
In pursuit of these policy goals, Carmel is prepared to enter into an inter-
local agreement with the Town of Westfield relative to providing water
service to the annexation area so long as the inter-local agreement
addresses these primary concerns and assures fair and equitable service to
the residents of the annexation area. State law provides detailed guidance
for the development of such inter-local agreements (see 1C36-1-3-9).
The City of Carmel considers the development of an inter-local agreement
which protects the interests of the annexation area residents while allowing
Westfield to continue serving the annexation area as being the alternative
which provides the taxpayers and ratepayers with the greatest value for
their money. In addition, the development of such an inter-local
agreement between Carmel and Westfield should help to avert the
financial crisis (publicly predicted by some Westfield officials) by
allowing Westfield to retain water revenues from the annexation area. In
fact, it may even be possible for Carmel to reduce Westfield's financial
risk by allowing a portion of the developers' fee revenue to continue to
accrue to Westfield, as in the current arrangement. Carmel does not seek
to cause the financial ruin of Westfield in this undertaking.
Developing Common Sense Solutions
We have found no statute in the code which bars municipalities from
identifying common sense solutions to difficult and complex problems.
We note that IC36-1-3-9 provides for the development of inter-local
cooperation agreements between municipalities. We also note that many
municipalities have no municipal utility service, and others provide utility
service through private utilities, or through services provided by adjacent
municipalities. Our conclusion from the presence of these factors is that
City of Carmel: Annexation of a Portion of Southern Washington Township 20
there is no barrier to the development of common sense solutions between
municipalities.
It is clear that Westfield's financial situation is precarious. Carmel does
not seek to induce the bankruptcy of the Town or any of its agencies.
Consequently, although the City of Cam~el could provide utility services
in the annexation area, and consume all of the revenue from the area,
Carmel is prepared to consider alternatives that make sense to the residents
of the area, above the interests of the individual municipalities. The
success of this strategy will depend largely upon the actions and reactions
of the Westfield authorities.
In this case, "common sense" suggests that the most viable method for
providing water utility services would be through the development of an
inter-local agreement between Carmel and Westfield, IC36-1-3-9.
Non Capital Services of the Water Utility
The developed portions of the annexation area are already be receiving
municipal water services equivalent to those received in Carmel. In fact,
the private utility which originally served the developed portions of the
annexation area also served the northern portions of Carmel until the
private utility was purchased by Westfield and Carmel (with 146th Street
being the dividing line).
INCORPOP~4TION OF THE WESTFIELD WATER PLAN
It is noted that the Town of Westfield has developed a plan for serving the
undeveloped portions of'the annexation area. The Westfield Water Plan
has been preliminarily reviewed by Carmel Utilities and it was found that
the plan appears to meet the basic needs of Carmel Utilities, with one
exception. It is possible that the major water mains planned for the
annexation area may be slightly undersized when water usage parameters
of Carmel Utilities are applied. This is not generally a major issue, and is
believed to be rather easily incorporated into any adjustment to the long
term plan for development of the water system.
Outside of the issue of water main and facility sizing, the only other non-
capital issue related to the water utility will be to change the location of
water sources from Westfield sources to Carmel sources. This adjustment
can be rather easily made by bringing major Carmel Water mains to 146th
Street (which is already largely in place) in preparation for future
connection to the Carmel water system. Some of these adjustments are
already underway by Carmel Utilities.
PLAN OF DELIVERY OF NON-CAPITAL WATER SERVICES
City of Carmel: Annexation of a Portion of Southern Washington Township 21
It is the intent of the city of Carmel to perform the following tasks in order
to assure residents of the annexation area that non-capital services o f the
water utility will be delivered within one year of the effective date of the
annexation (again, assuming that no inter-local agreement is reached:
Incorporate the existing Westfield Water Plan into the overall long
term plan of Carmel Utilities immediately upon the effective date
of annexation.
Review the existing Westfield Water Plan, including sizing of all
water mains and proposed facilities, during the first year after the
effective date of annexation.
Formalize any necessary adjustments to the water plan within the
first year after the effective date of annexation (and in conjunction
with the development of the new comprehensive plan for the area).
Carmel Utilities to develop plan for bringing water mains to 146th
Street within one year of the effective date of annexation.
These non-capital services will be provided by existing staffofthe Carmel
Utilities, and design will be incorporated into existing projects.
Capital Services of the Water Utility
The following provisions regarding capital services of the water utility are
based on the assumption that no inter-local Capital services of the water
utility are to be provided to the annexed territory within three years of the
effective date of the annexation in the same manner as those services are
provided to areas within the City of Carmel. These capital services will
include preliminary engineering design of the network of major water
mains, as well as final design of any major water main extensions
necessary to make the water system accessible to the annexation area.
The issue of water utility service must be viewed and explained very
carefully in this fiscal plan because there is a clear, statutory separation
between the issues of water service as they relate to annexation statutes
(IC36-4-3) and other legal, engineering and service issues, outside of the
requirements of the annexation statute. The primary purpose of this fiscal
plan is to address the issues of water utility service as they relate to
annexation and compliance with IC36-4-3, and these issues will be
highlighted.
(Need map of service areas for water showing PC/, carmel utilities,
westfield and hamilton western areas)
City of Carmel: Annexation of a Portion of Southern Washington Township 22
DEVELOPED PORTIONS OF THE ANNEXATION AREA ALREADYRECEIVE
WATER SERVICE
The developed portions of the annexation area already receive water
service which is equivalent to the service received in the portion of the
Carmel water system which was originally served by Hamilton Western
Utilities. As such, the water service afforded to the developed portions of
the annexation area already meet the statutory requirements oflC36-4-3-
13.
UNDEVELOPED PORTIONS OF TIlE ANNEX~TIONAREA CANRECEIVE
WATER SERVICE
Under the policies of the City of Carmel, water main extensions into
unserved areas can be provided to any property owner, with the property
owner paying for the cost of said extensions. This policy is actively
employed by the City of Carmel throughout the incorporated city, and will
be extended to the annexation area within 3 years of the effective date of
annexation in the same manner as is currently provided in the corporate
limits of Carmel, thus meeting the requirements of IC36-4-3-13.
This provision of extending water service to areas requiring such service is
similar to the current provisions for service extension afforded by the
Town of Westfield.
PREFERRED ALTERNATIVE: DEVELOPINTER-LOCAL COOPERATION
AGREEMENT
Westfield attd the residents of the annexatioa area will benefit from the
development of an inter-local cooperation agreement under IC36-1-3-9,
for the purpose of clarifying water utility service issues itt the
annexation area. This hltemative has the greatest likelihood of delivering
the best possible service to the residents of the area at the lowest possible
cost. Such an agreement helps to assure good government to the residents
of the annexation area. Despite the fact that such considerations are
generally outside of the scope of the annexation statute, the general public
must believe that our government and its court system is smart enough to
understand that the entire community benefit~ when resources are used to
their optimum benefit of the public, without concern to who owns those
resources.
Such an agreement could take several forms, possibly making Carmel a
wholesale water customer of the Town of Westfield within the annexation
area, or possibly continuing the current retail customer relationship
between Westfield and the residents of the annexation area. The details of
City of Carmel: Annexation of a Portion of Southern Washington Township 23
such a negotiated contract cm~not be predicted, except insofar as Carmel
will insist that the agreement must meet the three basic principles set forth
under "Services of the Water Utility" (above).
It is also in Westfield's best interests to develop an inter-local agreement
with regard to ~vater (and sewer) service. Testimony from Westfield's
elected and appointed officials has clearly stated that Westfield's finances
are precarious, and that the loss of future revenue from this annexation
could possibly bankrupt the Town. Therefore, if an inter-local agreement
can guarantee that residents of the annexation area receive high-quality
water service, equivalent to the service afforded by Carmel Utilities, at fair
and competitive rates, then the source of the water becomes irrelevant. It
is common for municipalities to buy and selI utility capacity amongst
themselves, based on the economics of the marketplace. Therefore, it is
believed to be a valid alternative to purchase water capacity and service
under contract with the Town of Westfield.
CURRENT POLICIES REGARDING WATER UTILITY EXTENSIONS
It is currently the policy of the Town of Westfield to extend water service
to new development (in the undeveloped portions of the annexation area)
at the expense of the developer. Carmel employs a similar policy. As
such, with only minor exceptions, the overall plan for extending water
utility service into the undeveloped portions of the annexation area are
similar, regardless of which municipality provides the service.
Services of the Sewer Utility
The City of Carmel and the Clay Regional Waste District have cooperated
to provide sewer service to Clay Township for many years. In recent
years, the two utilities have continued to recognize potential benefits in
combining their interests and those discussions are continuing. The
potential for extending sewer service into the Washington Township
annexation area poses no serious problem to the city of Carmel. There are
multiple methods for addressing the extension of sewer utility services.
Current Configuration of Sewer Service
The current configuration of sewer service clearly shows that the sewer
utilities are inter-dependent and intertwined, as follows:
City of Carmel: Annexation of a Portion of Southern Washington Township 24
Westfield currently purchase approximately 1 million gallons per
day (MGD) of sewage treatment from the City of Carmel.
Westfield also has an under-utilized sewage treatment facility
located west of Little Eagle Creek which has approximately 1MGD
of capacity (this facility was designed to serve new development in
the annexation area and appears to be a highly leveraged
investment.)
Westfield has publicly indicated that it would proceed with an
expansion of the new WWTP, despite questions re: financing and
service territory.
Both Carmel and Westfield purchased a portion of the assets of the
Hamilton Western Utilities (a private utility serving customers near
146th Street) in recent years.
The City of Carmel has a sewage treatment plant (STP) located at
96th Street which discharges to the White River.
The Carmel STP currently treats sewage from the customers of
Carmel, Westfield and the Clay Regional Waste District.
Clay Regional Waste District also owns an STP designed to treat
sewage from new development, which can be expanded to over
20MGD, located on the far southwest side of their service area.
Each of the three existing utility entities (Carmel, Westfield and
Clay Regional Waste District) own collection servers and
intemeptors and serve their own customers.
Sewer service can easily be extended to the annexation area
through new interceptor or lift station construction.
The existence of multiple sewer utilities creates an environment conducive
to expressions of self-interest and potential conflict between those separate
interests. Each of these utilities has directors, executives and employees
who are likely to retain persona] perspectives related to decisions made
about services and territories.
The most important single consideration with regard to the provision of
sewer utility service is that the three utilities already have intertwined
services. Therefore, if WestfieId were to attempt to implement some
policy which would be unfair or discriminatory to customers in the
annexation area, Carmel has a clear platform to retaliate, thus making the
entire genre of such negative exercises unproductive. We believe that the
presence of an environment of"mntually assured damages" is a viable
platform for encouraging the development of long-term consensus.
Carmel must focus on alternatives which benefit the residents of the
annexation area, as residents of the City of Carmel. Therefore, this Fiscal
City of Carmel: Annexation of a Portion of Southern Washington Township
25
Plan has invested itself in finding the most effective means of assuring the
residents of the annexation area that the best possible service is provided
at the lowest possible cost. The most important issue is providing fair and
equitable service and user fees to the residents of the annexation area.
This is likely to require the development of new and creative alternatives
between these organizational interests.
Westfield's Fears of Bankruptcy Are Noted
Westfield officials have stated publicly that, if Carmel annexes this
territory, their utilities would go bankrupt unless there are huge increases
in sewer rates. These statements were made loudly and in a public effort
to rome Carmel to halt its interest in this annexation, therefore, such
comments must be addressed.
Carmel does not desire the financial ruin of Westfield. At the same time,
it is unfair to expect one group of residents to subsidize another group.
While the finances of Westfield's utilities have not been analyzed, this
Fiscal Plan notes that the statements of Westfield's leadership have been
duly noted and alternatives have been developed to allow Westfield to
continue to provide sewer service to the annexation area, with assurances
that the customers in the annexation area are treated fairly.
Preferred Alternative: Inter-Local Cooperatior~ Agreement
The City of Carmel hereby formally states that the most effective
altematives for providing capital and non-capital sewer services to,the
annexation area is through the development of an inter-local cooperation
agreement under IC36-1-3-9.
Carmel's basic position is neutral on the issue of who supplies sewer
service to the annexation area, so long as it is supplied in adequate
amounts, of sufficient quality, and at a fair price. While it would be a
long-term financial benefit to Carmel Utilities to provide service to
residents of the annexation area, the City of Carmel's primary interest is in
developing alternatives which provide the best possible service to
residents of the annexation area at the lowest possible cost.
In pm'suit of these policy goals, Carmel is prepared to enter into an inter-
local agreement with the Town of Westfield relative to providing sewer
service to the annexation area so long as the inter-local agreement
addresses these primary concerns and assures fair and equitable service
to the residents of the annexation area.
City of Carmel: Annexation of a Portion of Southern Washington Township 20
Such an inter-local cooperation agreement would logically contain several
key provisions, as follows:
That residents of the annexation area receive high-quality sewer
service and sewer user rates that are fair and equitable;
Existing hardware remains in place, thereby minimizing capital
costs while simultaneously optimizing the efficient use of existing
capital facilities and resources;
Customers in the annexation area receive protection related to user
rates with minimal interruption of their normal routines;
Westfield retains this portion of its existing and future revenues,
thereby minimizing fiscal impact of the annexation on Westfield's '
utility revenue stream.
Future parameters of the agreement would provide Carmel with the
option of re-directing sewage flows in the growth area to
whichever plant has available capacity and is capable of treating
the sewage at the lowest cost.
Westfield provide an annual review of its rates and services at
Westfield's expense to assure that Carmel's residents are being
treated fairly. (This can be woven into other regulatory reporting
in order to minimize costs.)
An inter-local agreement is the best alternative from the standpoint of
utilization of existing resources and preservation of ratepayers equity, as
well as considering the impacts of employment at Westfield. A successful
agreement requires that both parties (Carmel and Westfield) deal with each
other equitably.
However, this alternative does not factor in the impact of personalities and
personal interests. IC36-1-3-9 specifically states that Westfield must have
Carmel's permission to provide services within the corporate limits of
Carmel. If Carmel and Westfield cannot reach a negotiated solution in
such a matter, IC36-1-3-9 stipulates that the matter will be decided by the
courts.
Alternative #2: Separate Westfield & Carmel Sewer
Systems
The basic parameters of this alternative are as follows:
Westfield is currently consuming approximately 1MGD of waste
treatment from the City of Carmel. Westfield could be asked to
remove all flows originating from the Town of Westfield from the
City of Carmel: Annexation of a Portion of Southern Washington Township
27
Carmel system and to re-direct those flows to Westfield's
treatment plant.
Carmel would re-direct any flows from the annexation area to
Westfield's plant to either the Carmel system or the Clay Regional
system.
Carmel would make provisions to bill customers in the annexation
area directly.
Carmel would extend sewer services to the undeveloped portions
of the annexation as those areas are developed, using either current
service extension policies of the City of Carmel, or developer
agreements (where developers pay for installation of sewers to
their development).
Carmel's working relationship with Clay Regional Waste enables
new development to be served by either the Carmel WWTP or by
the Clay Regional WWTP, whichever system can provide the
service most effectively.
This alternative requires greater investment of capital funds into
reconfiguration of sewage collection and distribution facilities, however,
when this initial capital investment in separating tbe two utilities is
complete, the two utilities would be completely separate and would no
longer be required to work together. Given the current propensity for
niggling, this alternative could have some appeal.
Under this alternative, Westfield would save some money because they
would no longer pay Carmel for sewage treatment. In addition, Westfield
would use the unutilized capacity existing at its current WWTP.
By removing sewage flows from the Carmel system, Carmel frees its
treatment capacity to serve its own growth, and Carmel can then extend
services to new development and direct those sewage flows to either
Carmel or to the Clay Regional WWTP.
This alternative has its benefits and appears to be a straigbtforward means
of providing sewer service to the annexation area, while permanently
separating the sewer utility interests of the two municipalities. The only
question is whether it is necessary to expend capital dollars to separate the
sewage systems when a legal agreement regarding rates would accomplish
essentially the same task.
Goll¢ltl$ion$
Wabash Scientific, inc., believes that common sense must ultimately
prevail and that people in leadership positions can be persuaded to do the
City of Carmel: Annexation of a Portion of Southern Washington Township
right thing. The fiscal plan, hereby formally states that an inter-local
agreement (see IC36-1-3-9) which optimizes the use of existing facilities
and investment, while assuring that the ratepayers of the annexation area
are treated fairly and equitably, appears to be the preferred alternative.
Capital Services of the Sewer Utility
Capital services of the sewer utility are to be provided to the annexed
territory within three years of the effective date of the annexation in the
same manner as those services are provided to areas within the City of
Carmel. The issue of sewer utility service must be viewed and explained
very carefully in this fiscal plan because there is a clear, statutory
separation between the issues of sewer service as they relate to annexation
statutes (IC36-4-3) and other legal, engineering and service issues, outside
of the requirements of the annexation statute.
The primary purpose of this fiscal plan is to address the issues of sewer
utility service as they relate to annexation and compliance with IC36-4-3,
and these issues will be highlighted. However, in the interest of open and
honest public discourse, this fiscal plan will also attempt to summarize
certain other key issues related to sewer utility service~
(Need map of service areas for sewers showing crwd, Carmel utilities,
Westfield and Hamilton western areas)
City of Carmel: Annexation of a Portion of Southern Washington Township
29