CHAPTER 40. COUNTY FUNDING OF SEWAGE DISPOSAL SYSTEMS
IC 36-9-40
Chapter 40. County Funding of Sewage Disposal Systems
IC 36-9-40-1
Application of chapter
Sec. 1. This chapter applies to counties.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-2
Definitions
Sec. 2. For purposes of this chapter:
(1) "Sewage disposal system" has the meaning set forth inIC 13-11-2-201.
(2) "System" refers to a sewage disposal system.
(3) "Works board" refers to the works board of a county.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-3
Installation
Sec. 3. A county may install private sewage disposal systemsunder this chapter.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-4
Construction of system on private land
Sec. 4. A works board may construct a private system on landowned by a private entity if:
(1) the owner of the land has applied to the works board forconstruction of a system that the works board determines isappropriate for the sewage disposal needs of the location forwhich the application is made;
(2) the owner of the land has supplied in the application to theworks board sufficient information to prepare a preliminaryresolution to approve construction of the system;
(3) the works board has adopted a preliminary resolutionapproving construction of the system; and
(4) with respect to the system, the works board has, at the timethe preliminary resolution is adopted, adopted and placed onfile:
(A) cross-sections;
(B) general plans;
(C) specifications; and
(D) an estimate of the cost.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-5
Estimate of cost of system
Sec. 5. (a) The estimate of cost of the system required undersection 4(4)(D) of this chapter may include all incidental, inspection,and engineering costs caused by the proposed construction. However,
the estimate of the costs to be paid by special assessment may notinclude the following:
(1) Salaries and expenses of the necessary and regularlyemployed personnel of the engineering department of thecounty.
(2) Ordinary operating costs of the works board.
(b) If the works board determines that it is necessary to employadditional engineering services for construction of a particularsystem, the works board may include in the estimate of cost of thesystem required under section 4(4)(D) of this chapter the cost of theadditional service actually performed in connection with the system.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-6
Incidental, inspection, and engineering costs as part of cost ofconstruction
Sec. 6. (a) The works board may add to the cost of constructionof a system under this chapter and may include in the assessmentagainst the property on which the system is constructed theincidental, inspection, and engineering costs that are authorized bythe preliminary resolution and included in the estimate.
(b) The amount of incidental, inspection, and engineering costsincluded in the assessment may not exceed the amount of theincidental, inspection, and engineering costs included in the estimate.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-7
Notice of hearing
Sec. 7. (a) Notice of a hearing on the preliminary resolutionapproving construction of the system shall be published inaccordance with IC 5-3-1. The notice must state:
(1) that the works board has adopted the preliminary resolution;and
(2) the time and place at which the works board will do thefollowing:
(A) Hear all interested persons.
(B) Decide whether the benefits to the property liable to beassessed for construction of the system will equal theestimated cost of construction of the system.
(b) The works board shall send a notice containing theinformation required under subsection (a) to the property owner thatapplied for construction of the system.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-8
Filing of cost estimate by county engineer; limitation on entry intocontract
Sec. 8. (a) At least ten (10) days before the date fixed for ahearing under section 7 of this chapter, the engineer of the countyshall file with the works board an estimate of the maximum cost of
construction of the system proposed by the works board.
(b) A county may not enter into a contract under the preliminaryresolution if the contract exceeds the engineer's estimate filed undersubsection (a).
As added by P.L.7-2002, SEC.1.
IC 36-9-40-9
Works board conduct of hearing; limitation on further action
Sec. 9. (a) At the hearing specified in the notice under section 7of this chapter, the works board shall do the following:
(1) Hear interested persons.
(2) Decide whether the benefits that will accrue to the propertyliable to be assessed for construction of the system will equalthe maximum estimated cost of construction of the system.
(3) Determine the assessment against the property on which thesystem is constructed in an amount that does not exceed theengineer's estimate under section 8 of this chapter.
(b) If the works board finds that the benefits will not equal themaximum estimated cost of construction of the system, the boardshall take no further action.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-10
Special assessment levy; limitation on amount
Sec. 10. (a) The works board shall levy special assessments forthe amount determined under section 9 of this chapter if:
(1) the contract for construction of the system is executed; and
(2) the system is constructed.
(b) The special assessments levied under this section may notexceed the cost of construction of the system.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-11
Works board action on preliminary resolution; effect of modifiedor confirmed resolution
Sec. 11. (a) After the works board determines the amount ofspecial benefits that will accrue to the property liable to be assessedfor construction of the system, the works board may do any of thefollowing:
(1) Confirm the preliminary resolution.
(2) Modify the preliminary resolution.
(3) Rescind the preliminary resolution.
(b) The preliminary resolution is final and conclusive on allparties if:
(1) the preliminary resolution is modified or confirmed underthis section; and
(2) construction of the system is ordered.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-12 Works board advertisement for bids and performance of work
Sec. 12. If the works board finally orders construction of a system,the works board shall advertise for bids and perform the work underIC 36-1-12.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-13
Construction contract for entire system; challenge to contract
Sec. 13. (a) The contract for construction of a system must be forconstruction of the entire system.
(b) After the execution of a contract for construction of a system,the validity of the contract may be questioned only in an action toenjoin the performance of the contract. This action must be broughtbefore the actual commencement of work under the contract.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-14
Contractor guarantee of workmanship and materials
Sec. 14. (a) A contractor for construction of a system mustguarantee the contractor's workmanship and all materials used in thework.
(b) The guarantee required under subsection (a) must be in thefollowing form:
"The contractor warrants the contractor's workmanship and allmaterials used in the work and agrees that during the guaranteeperiod specified, the contractor will, at the contractor's ownexpense, make all repairs that may become necessary by reasonof improper workmanship or defective materials. Themaintenance obligation, however, does not include repair of anydamage resulting from any force or circumstance beyond thecontrol of the contractor, nor is the contractor a guarantor of theplans and specifications furnished by the county.".
As added by P.L.7-2002, SEC.1.
IC 36-9-40-15
County and contractor responsibilities for sytem repairs
Sec. 15. (a) If repairs to a system become necessary, the countymust give written notice to the contractor to make the repairs. If thecontractor fails to begin the repairs not later than thirty (30) daysafter the notice is received, the county may do the following:
(1) Make the repairs using the county's own employees or anindependent contractor.
(2) Recover from the contractor and the contractor's sureties thereasonable cost of the repairs and the cost of the supervisionand inspection of the repairs.
(b) At the expiration of the guarantee period, the county has sixty(60) days in which to notify the contractor of any necessary repairs.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-16 Acceptance of system by works board
Sec. 16. A system that is completed according to contract must beaccepted by the works board.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-17
Assessment of property on which system is constructed; effect ofmistake in name of owner
Sec. 17. (a) As soon as a contract for construction of a system hasbeen completed, the works board shall have an assessment preparedfor the property on which the system is constructed. The property onwhich the system is constructed is liable for assessment under thischapter.
(b) The assessment must include the following:
(1) The name of the owner of the property on which the systemis constructed.
(2) A description of the property, or the key number or parcelnumber of the property.
(3) The total assessment, if any, against the property.
(c) A mistake in the name of the owner or the description ofproperty does not void the assessment or lien against the property.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-18
Presumptions with respect to assessment; assessment notice toproperty owner
Sec. 18. (a) The following apply to the assessment indicatedagainst each lot, tract, or parcel of land:
(1) The assessment is presumed to be the special benefit to thelot, parcel, or tract of land.
(2) The assessment is the final and conclusive assessmentunless the assessment:
(A) exceeds the engineer's estimate under section 8 of thischapter; and
(B) is challenged under section 19 of this chapter.
(b) Immediately after the assessment roll is completed and filed,the works board shall notify in writing the owner of the property onwhich the system is constructed:
(1) of the assessment amount;
(2) that the basis of the assessment amount is on file and may beinspected at the works board's office; and
(3) of the time and date before which an objection must be filedwith the works board.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-19
Works board hearing and decision on objection to assessment
Sec. 19. (a) If an objection is filed before the time prescribed insection 18 of this chapter, the works board shall set a hearing.
(b) After the hearing, the works board shall sustain or modify the
assessment by confirming, increasing, or reducing the presumptiveassessment. The works board's decision must be based on the worksboard's findings concerning the special benefits that the property hasreceived or will receive on account of construction of the system.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-20
Delivery of assessment to county assessor
Sec. 20. When the assessment is completed, the works board shalldeliver the assessment to the county assessor.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-21
Delivery of completed assessment to county auditor; assessment toshow amount due
Sec. 21. (a) The works board shall deliver a certified copy of thecompleted assessment to the county auditor after the works board:
(1) approves and accepts the entire work under any contract;and
(2) allows a final estimate.
(b) The duplicate assessment, to be known as the primaryassessment, must show the amount due if paid in cash within the timelimit.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-22
County auditor notice of assessment to affected person; installmentpayments
Sec. 22. (a) Upon receipt of the primary assessment, the countyauditor shall by mail notify the affected person of the amount of theassessment against the person's property.
(b) The notice must state the following:
(1) That the amount is due not later than thirty (30) days afterthe approval of the assessment by the works board.
(2) That a person who desires to pay the person's assessment byinstallments must enter into a written agreement undersubsection (c) before the due date.
(c) A person who desires to pay the person's assessment in twenty(20) equal semiannual installments must before the due date enterinto a written agreement stating that in consideration of that privilegethe person:
(1) will not make an objection to an illegality or irregularityregarding the assessment against the person's property; and
(2) will pay the assessment as required by law with specifiedinterest.
(d) The agreement under subsection (c) shall be filed in the officeof the county auditor. If a property owner elects to pay the propertyowner's assessments in installments, the assessment shall be enteredfor collection on the duplicate, shall have the same priority andrights, and shall be collected in the same manner as other taxes. (e) The interest rate for the installments of the assessment is theinterest rate established in IC 6-1.1-37-9.
(f) An assessment of less than one hundred dollars ($100) may notbe paid in installments.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-23
Assessment due date; interest on delinquent assessment
Sec. 23. (a) The entire assessment is payable in cash withoutinterest not later than thirty (30) days after the approval of theassessment by the works board if an agreement has not been signedand filed under section 22 of this chapter.
(b) If the assessment is not paid when due, the total assessmentbecomes delinquent and bears interest at the rate prescribed byIC 6-1.1-37-9 per year from the date of the final acceptance of thecompleted system by the works board.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-24
County auditor receipt and accounting for assessment payments;use of proceeds; special fund
Sec. 24. (a) The county auditor shall do the following:
(1) Receive the payment of assessment installments.
(2) Keep all accounts and give proper vouchers for the paymentof assessment installments.
(b) Proceeds arising from assessments for the payment of aparticular system may not be diverted to the payment of any othersystem.
(c) The proceeds from assessments for the payment of a particularsystem constitute a separate special fund.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-25
Assessment installment payments due upon delinquency; collectionof delinquent installments
Sec. 25. Failure to pay an installment of principal or interest whenthe installment is due makes all installments of principal yet unpaiddue and payable immediately, unless the unpaid installment ofprincipal or interest is paid within the grace period provided. Thecounty shall proceed to collect delinquent installments as delinquenttaxes are collected.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-26
Supplementary proceedings to correct defect or irregularity incontract
Sec. 26. If a defect or an irregularity results in the invalidity of acontract, an assessment, or a lien under this chapter, the defect orirregularity shall be corrected by supplementary proceedings thatsubstantially comply with this chapter.As added by P.L.7-2002, SEC.1.