IC 36-9-22
    Chapter 22. Contracts With Property Owners for SewerConstruction by Municipalities

IC 36-9-22-1
Application of chapter
    Sec. 1. This chapter applies to all municipalities.
As added by Acts 1981, P.L.309, SEC.95.

IC 36-9-22-2
Terms of contract; power to fix; duration; share of cost; parties bound;waiver of rights
    Sec. 2. (a) The power of the municipal works board to fix theterms of a contract under this section applies to contracts for theinstallation of sewage works that have not been finally approved oraccepted for full maintenance and operation by the municipality onJuly 1, 1979.
    (b) The works board of a municipality may contract with ownersof real property for the construction of sewage works within themunicipality or within four (4) miles outside its corporate boundariesin order to provide service for the area in which the real property ofthe owners is located. The contract must provide, for a period of notto exceed fifteen (15) years, for the payment to the owners and theirassigns by any owner of real property who:
        (1) did not contribute to the original cost of the sewage works;and
        (2) subsequently taps into, uses, or deposits sewage or stormwaters in the sewage works or any lateral sewers connected tothem;
of a fair pro rata share of the cost of the construction of the sewageworks, subject to the rules of the board and notwithstanding anyother law relating to the functions of local governmental entities.However, the contract does not apply to any owner of real propertywho is not a party to it unless it has been recorded in the office of therecorder of the county in which the real property of the owner islocated before the owner taps into or connects to the sewers andfacilities. The board may provide that the fair pro rata share of thecost of construction includes interest at a rate not exceeding theamount of interest allowed on judgments, and the interest shall becomputed from the date the sewage works are approved until the datepayment is made to the municipality.
    (c) The contract must include, as part of the consideration runningto the municipality, the release of the right of the parties to thecontract and their successors in title to remonstrate against pendingor future annexations by the municipality of the area served by thesewage works. Any person tapping into or connecting to the sewageworks contracted for is considered to waive his rights to remonstrateagainst the annexation of the area served by the sewage works.
    (d) Subsection (c) does not apply to a landowner if all of thefollowing conditions apply:        (1) The landowner is required to connect to the sewage worksbecause a person other than the landowner has polluted orcontaminated the area.
        (2) The costs of extension of or connection to the sewage worksare paid by a person other than the landowner or themunicipality.
As added by Acts 1981, P.L.309, SEC.95. Amended by P.L.172-1995,SEC.5.

IC 36-9-22-3
Sewage works; approval of plans and specifications beforeconstruction; ownership by municipality; maintenance and operation
    Sec. 3. (a) Plans and specifications for the sewage workscontracted for must be approved by the municipal works boardbefore construction is begun.
    (b) Upon their completion, final inspection, and approval thesewage works become the property of the municipality, and theworks board may:
        (1) approve the construction of the sewage works;
        (2) accept sewage from the sewers and pumping stations subjectto the sewage rates that the municipality establishes;
        (3) operate and maintain the disposal plants subject to thesewage rates that the municipality establishes; and
        (4) accept storm water from sewers or approve the location ofdischarge of storm water.
    (c) After the sewage works are approved and accepted by theworks board, all further maintenance and operation of them are theresponsibility of the municipality.
    (d) Subsections (b) and (c) do not apply to lateral sewers or otherextensions that, upon completion, become the property andresponsibility of the landowners whose property they benefit.
As added by Acts 1981, P.L.309, SEC.95. Amended by Acts 1982,P.L.77, SEC.21.

IC 36-9-22-4
Taps into sewage works; prerequisites; amounts received undercontracts; pay out without appropriation; unauthorized taps; removaland disposal without liability
    Sec. 4. (a) A person may not be granted a permit or be authorizedto tap into, use, or deposit sewage into any sewage works contractedfor under this chapter, or any extension of them, during the periodprescribed in the contract without first:
        (1) obtaining the approval of the municipal works board; and
        (2) paying to the municipality:
        (A) charges made or assessed for the tap, use, or deposit, or forthe sewers constructed in connection with the tap, use, ordeposit; and
        (B) the amount required by the contract.
All amounts received by the municipality under the contract shall bepaid out, without appropriation, under the terms of the contract

within sixty (60) days after they are received.
    (b) Whenever any tap or connection is made in violation ofsubsection (a), the works board shall:
        (1) remove or cause to be removed the unauthorized tap orconnection and all connecting tile located in the right-of-wayfor the sewage works; and
        (2) dispose of the unauthorized materials that are removed,without any liability on the part of the municipality.
As added by Acts 1981, P.L.309, SEC.95.

IC 36-9-22-5
Sewer connected to existing works; certain cases; amounts to beincluded in cost estimate and assessments; payment of assessments ininstallments; amount of bonds; cash payments
    Sec. 5. (a) This section applies when:
        (1) any part of the cost of a sewer, whether local or general,storm, sanitary, combination, or otherwise, is to be assessedagainst the owners of real property;
        (2) the proposed sewer is to be connected into sewage worksconstructed under this chapter; and
        (3) the owners did not contribute to the cost of those sewageworks.
    (b) There shall be included in:
        (1) the engineer's estimate submitted to the municipal worksboard before the hearing on the proposed sewer; and
        (2) the assessments;
a sum equal to the amount provided in or computed from the contractas the fair pro rata share due from the owners upon and for thecontracted sewage works, including any interest owed. The sumincluded in the engineer's estimate must be separately itemized.
    (c) If an owner elects to pay his assessment by installments inanticipation of which bonds and coupons are issued, the amount ofthe bonds and coupons must include the fair pro rata share of the costof the contracted sewage works. However, an owner may elect to paythe fair pro rata share in cash within sixty (60) days after theassessment is final and to pay the remainder of the assessment ininstallments.
As added by Acts 1981, P.L.309, SEC.95.