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HomeMy WebLinkAboutD-1635-03 Utility Policy/Annex Sponsor(s): Councilor Koven, Snyder and Wilson ORDINANCE NO. D-1635-03 AS AMENDED AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA REGARDING THE POLICY OF THE CITY OF CARMEL FOR PURPOSES OF EXTENSION OF WATER AND SEWER MAINS TO DEVELOPED AREAS WITHIN THE CORPORATE LIMITS WHEREAS, the City of Carmel, Indiana owns and operates a water utility and a sewer utility providing service within and around the existing corporate limits of the City of Cannel, Indiana; and WHEREAS, not all areas within the existing City limits are presently connected to the water and sewer utility; and WHEREAS, it is anticipated that areas may in the future be part of the City of Carmel through annexation which will not be connected to the water and sewer utility; and WHEREAS, it is and has always been the policy of the City that mains for water and sewer service would only be extended if the customers to be served pay for the cost of constructing the mains; and WHEREAS, pursuant to that policy, most if not ail existing water and sewer customers in the City limits have either directly paid for the cost of extending water and sewer mains to their property or have had such costs paid on their behalf by developers, builders, or predecessors in title; and WHEREAS, when water and sewer service is made available to developed areas which are annexed to the City pursuant to annexation fiscal plans providing for services of a capital nature within three years of the effective date of the annexation in the same manner as those services are provided within the corporate boundaries, water and sewer service will be made available pursuant to the City's existing policy, which will require the payment of the cost of the main extensions by those to be served; and WHEREAS, when mains are extended to existing developments, the cost of extension will be higher than with new developments such that the customers to be served may not desire the immediate provision of water and sewer service pursuant to the existing policies of the City whereby the customers pay for the extensions; and WHEREAS, for those already developed areas desiring service within the City, the increased cost of extension warrants amendment of the City's policies so as to allow the cost to be paid over time. Sponsor(s): Councilor Koven, Snyder and Wilson NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Carmel, Indiana, as follows: Section I: This ordinance will apply to territory within the corporate limits of the City of Carmel, Indiana as the same may be changed from time to time. Section II: This ordinance will apply to requests for water or sewer service to acreage that has already been developed at the time of the request and which will require a main extension to provide the service. To the extent the City extends its mains pursuant to the terms of this Ordinance, the City shall extend both water and sewer mains and the customers affected shall be responsible for the Pro Rata Share and the Main Extension Surcharge for both water and sewer service except to the extent the area already has service available from another utility service provider. Section III: In the event that individual homeowner(s) residing in already-developed acreage wish to be served by City water or sewer requiring construction of main extensions, the following procedures shall be followed: (1) Upon written request for a main extension from the subdivision President and/or Board of Directors, the City's Utilities Department shall develop a preliminary design and construction cost estimate for the project which shall include both water and sewer service (the "Project Costs"). (2) The Utilities Department shall provide each homeowner whose property has frontage along the proposed main extensions with a Project Costs estimate that includes availability and connection fees, construction costs, engineering fees, Project legal fees and easement right-of-way costs, all of which comprise the total Project Costs. Such notice shall also provide each Homeowner with his/her pro rata share of the Project Costs, determined by dividing Project Costs by the number of lots with frontage along the proposed main extensions (the "Pro Rata Share"). (3) Each homeowner wishing the Project to proceed shall then sign an agreement stating that the homeowner has notice of and understands the Project Costs and is agreeable to the main extensions pursuant to the terms of this Ordinance. The homeowner shall agree that he/she desires the Project to proceed and, after the Project is complete, he/she will pay the Pro Rata Share as calculated pursuant to this Ordinance. This agreement must be signed by greater than 35% of the homeowners with frontage along the main extensions in the affected subdivision, or by each homeowner on already-developed acreage that is not part of a platted subdivision, prior to the final preparation of plans and advertisement for Project construction bids. Sponsor(s): Councilor Koven, Snyder and Wilson Section IV: Upon receipt of the requisite number of signed agreements, the City will proceed to extend the water and sewer mains to provide the requested service. All customers with frontage along the main extension will be obligated to pay the Pro Rata Share upon the placement in service of the main extensions. This Ordinance does not require that any customer connect to the main extensions, only that they pay the Pro Rata Share as provided herein. Section V: The City will defer and recover over time each customer's Pro Rata Share with the implementation of a Main Extension Surcharge as determined pursuant to this paragraph. The Main Extension Surcharge shall be calculated by dividing the Pro Rata Share over up to 360 months together with carrying costs calculated at a reasonable interest rate at which it is estimated the City would pay if it were to borrow the funds for the Project. The Main Extension Surcharge shall be in addition to the general water and sewer rates and charges imposed by the City. The customer shall commence paying the Main Extension Surcharge upon the first month following the placement in service of the main extensions, regardless of whether the customer is actually connected. The obligation to pay the Main Extension Surcharge shall run with the land and be binding on predecessors in title. The City shall cause to be recorded for any property subject to a Main Extension Surcharge appropriate documentation to place future purchasers on notice. Section VI: Any customer wishing to do so may prepay without penalty the Pro Rata Share then outstanding and thereby avoid future Main Extension Surcharges and carrying charges. Section VII: All prior ordinances or parts thereof inconsistent with any provision of this Ordinance are hereby repealed. Section VIII: This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. PASSED by the Common Council of the City of Carmel, thi~//_?~ay of July, 2003, by avoteof ~ ayes and ~) nays. COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA eresidi~g~)fficer ~ ~/ . fv'm Ki/~ c.~/j _Lu~c.i S~y/der, President Pro Tempore '~-~~ ~xl. i~. R~untdle- ~.  onald E. C~ Wa~e Wilson Sponsor(s): Councilor Koven, Snyder and Wilson ATT~A~/ Diana L. Cordra~rk-Treasurer Presented,b¥~r~e/;o the Mayor of the City of Carmel thi~_ day of(~ , 2003, at /,~ '/~2~ t~_.M. (; // Diana L. Cordray, IAMC, ~/¢rk-Treasurer Approved bv kn~, Ma..~r of the City of Carmel, Indiana, this .,~ day of ~ , 2003, at /~°0~ ~.M. ~ Brainard, Mayor ATTEST: Diar~a L. C(;rdr~,~, Clerk-Treasurer P~pa~dby: Nicholas K. Kile Barnes & Thomburg 11 South M~'idian Street Indianapolis, Indiana 46204