(A) Upon receipt by the city of a written request by an owner, to extend city services to the owner's real estate, when such real estate is located outside of the city's then current corporate limits, such request shall be determined in light of the following:
(1) Services to areas contiguous to the corporate boundaries of the city, which are capable of being annexed, may not receive the extension of any city service including water utilities and sewer utilities unless the owner petitions the city to be annexed and said petition is granted and the real estate annexed by the city becoming a part thereof.
(2) Real estate which is not contiguous to the city or the city is precluded from approving a voluntary petition to annex same or if the real estate cannot be annexed due to the filing of a remonstrance against annexation by other property owners thus preventing said real estate from being annexed, may receive city services only if the owner prior to the receipt of any city service, enters into a contract with the city for the provision of such services. Said contract must provide for the following:
(a) The owner of the real estate receiving the services must agree in the contract to waive and forever relinquish their right and their successors in title's right to remonstrate against pending or future annexations by the city of the area served, and must further agree to voluntarily petition the city to annex the area served as soon as said area is capable of being annexed by voluntary annexation, and
(b) The owner will pay to the city an amount annually in lieu of taxation which will reimburse the city for the cost of providing services, the costs of increasing the capacity of the city to provide services, the tax revenue which the city would have received from all sources including but not limited to the property tax levy, local option income tax, local road and street funds, cigarette tax, and all other forms of revenue which the city would have received had the development occurred within the city's current corporate limits. That this sum must be calculated annually and be based upon current costs of services and current revenue formulas including but not limited to current assessments and property tax rates. The annual amount shall be paid in two equal installments in the same manner and on the same date as property taxes are due counties in Indiana. Not less that 30 days prior to the due date of any payment, the Clerk-Treasurer of the city shall notify the owner, in writing, of the amount due and the due date, and
(c) The party requesting the extension of such other services will either arrange for the construction of the appropriate infrastructure at its expense, or reimburse the city for the cost of the extension of any water utility lines or sewer utility lines. That all such extensions must be dedicated to the city after their installation and must be installed in accordance with current city, state and federal regulations. That the city must be given the opportunity to review and inspect the design and installation of such services and same must be done with the approval of the city. That upon completion of the construction, its approval by the city, and its dedication to the city, the owner/developer shall also deliver to the city a bond in favor of the city in an amount to be determined based upon the cost of construction, which will provide for the correction of any defects or maintenance which might be required due to construction or design failures which would occur during the first three years after the dedication of the system to the city by the owner and its acceptance by the city into its utility system, and
(d) That the Board of Public Works of the city shall be responsible for drafting the contract and determining the amounts paid based upon the parameters established by this subchapter. In so doing, the Board of Public Works is authorized to consider the effects that tax abatements and other industrial incentives might have in determining the amount set forth above. In the event such industrial incentives are considered to be in the best interests of the city, the Board of Public Works must at the time the contract is presented to the Common Council by resolution for approval, indicate in that resolution the nature of the industrial incentives, attach as an exhibit those documents which would normally be considered by the legislative body in considering industrial incentives which would include job creation figures, capital improvements, and the reason for requesting the incentives, said incentives may not be considered if same would not be available to the development under the then applicable laws of the State of Indiana, and
(e) The Board of Public Works shall also negotiate with the owner/developer to determine which city services are to be provided under the contract, and
(f) Each contract must be approved by the Council by a resolution prior to its becoming effective, and prior to the extension of any city service, and
(g) The contract must be for a term of four years. Thereafter, if the contract is terminated, all services including water utility services and sewer utility services shall be terminated. Said services will only be discontinued if the owner of the property to which services are extended request the termination of the contract, or fails to renew, in writing, the contract for an additional four year term. Said request to terminate, must be made 90 days prior to the end of the contract term. Said request must be made in writing by the owner and delivered to the Clerk-Treasurer of the city and to the Mayor of the city. In the event such request is not made, the parties shall agree in writing, to extend the contract for an additional four year term. This process shall continue each and every four years until the owner requests the termination of services, or refuses to renew the contract. In the event the parties desire to alter or amend any contract provision, such changes must be approved by Council in the same manner the contract was approved. All contract extensions must be in writing, be recordable, and be approved by a resolution of the Council. The city may terminate the contract if the owner is in default in any term of the contract for a period in excess of 30 days. Prior to the termination of the contract, the city must provide the owner with 60 day notice of termination giving the owner 30 days to cure any act of default. In the event any payment of money is late interest shall be charged in the same manner and at the same rate as interest is determined and charged by the Henry County Auditor and Treasurer for delinquent real estate tax payments, and
(h) The contract shall contain the legal description of the area to be served, and the city shall receive from the owner a survey prepared by a registered land surveyor of the area to be served. The contract must be prepared in such a fashion as to be recordable in the office of the Henry County Recorder and shall be binding upon the owners, heirs, and successors in title, and
(i) Any notices required by the city to the owner shall be mailed to the owner by first class mail at the address provided by the owner in the contract. In the event that address changes, it is the owner's responsibility to properly notify the city of such changes immediately after the change becomes known, and
(j) The Council grants the Board of Public Works the authority to engage in negotiations with an owner regarding the terms of this contract, however all such terms must be designed to meet the intent of this subchapter and as set forth above all such contracts must be approved by resolution of the Council prior to said contract becoming effective.
(B) Residential subdivisions.
(1) Application. This division (B) shall only be applied to the extension of city services to residential development. The extension of city services to commercial, industrial and governmental development shall continue to be governed by the provisions of division (A) above and its subsequent amendments without change by this division (B).
(2) Provision of services. The city may provide water and sewer utility service to residential development located outside of its corporate limits provided the following conditions and terms are met:
(a) The owner or developer of the residential development complies with the provisions of § 37.34, or
(b) The owner or developer shall comply with the following:
1. Incur all costs associated with the extension of the city utility from its preexisting termination point to the farthest edge of the developer's property from the corporate boundaries of the city. All costs include but are not limited to the cost of the installation of forced main or gravity main, the cost of installation of all laterals, the cost of installation of any lift stations, grinder pumps, manholes, fire hydrants where applicable and connections or tap-ons, and
2. Provide a maintenance bond or other form of security for the city as to be approved by its Board of Public Works and Safety to insure that the public works installed by the developer are properly constructed and will be maintained at the developer's cost for a period of not less than three years, and
3. All public works referred to above and installed by the developer are approved by the city prior to construction, during construction, and after construction. Further, the developer must conform to all provisions of division (A)(2)(c) above, and
4. The developer or owner must conform to the provisions of divisions (A)(1) and (2)(a) above. The city shall also require individual homeowners who wish to utilize city water or city sewer services to individually comply with divisions (A)(1) and (2)(a) above.
(3) Utility connection fees and/or capacity fees. Nothing herein shall prevent the city from establishing and collecting connection fees or capacity fees. The establishment of such fees and their application shall be established by the passage of independent ordinances or resolutions of the city.
(4) Extension of services are discretionary. Nothing herein shall require the city to extend services beyond its corporate limits and the city's decision to do so shall be within its sole discretion without regard to cause.
(5) Requirements regarding information to be provided. Prior to the extension of services, the developer or owner shall provide the city with the following information:
(a) A copy of the deed or other document giving the owner title to the subject site.
(b) A legal description of the subject site prepared by a registered land surveyor.
(c) A site plan or drawing of the site in question prepared by registered land surveyor.
(d) A site plan showing all proposed improvements including calculations showing building square footage in the use of the building.
(e) A layout of the proposed utility line. This will require a drawing of all lateral lines to be installed and collector lines or mains for water and sewer utilities. it should further show all fire hydrants to be installed.
(f) A copy of the last tax assessment statement for the subject site received from the Henry County Auditor.
(g) Name, address and telephone number of consulting engineers employed to design the utility extension project and/or development of site.
(h) Area map showing location of site and distance to corporate limits of the city.
(i) Delivery of sufficient financial data to demonstrate an ability to properly install and construct utility expansion lines and facilities as same may be requested by the Board of Public Works and Safety.
(j) A professional estimate of the maximum monthly usage requirement for water consumption and wastewater discharge anticipated by the proposed development.
(k) A comprehensive list of any city services desired by the developer or owner which would include water utility extension, wastewater utility extension, fire protection, police protection, street maintenance, including snow removal, bus service, garbage and trash removal.
(6) Extension of city services other than water and sewer services. In the event the developer/owner identifies the need for additional services other than city utility (water and sewer) services provided the developer or owner execute an agreement with the city pursuant to the provisions set forth in divisions (A)(2)(b), and (d) through (i) above.
(Ord. 3277, passed 7-16-01; Am. Ord 3428, passed 6-6-05)