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 in
IC 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 systems
under 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 land
owned by a private entity if:
(1) the owner of the land has applied to the works board for
construction of a system that the works board determines is
appropriate for the sewage disposal needs of the location for
which the application is made;
(2) the owner of the land has supplied in the application to the
works board sufficient information to prepare a preliminary
resolution to approve construction of the system;
(3) the works board has adopted a preliminary resolution
approving construction of the system; and
(4) with respect to the system, the works board has, at the time
the preliminary resolution is adopted, adopted and placed on
file:
(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 under
section 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 not
include the following:
(1) Salaries and expenses of the necessary and regularly
employed personnel of the engineering department of the
county.
(2) Ordinary operating costs of the works board.
(b) If the works board determines that it is necessary to employ
additional engineering services for construction of a particular
system, the works board may include in the estimate of cost of the
system required under section 4(4)(D) of this chapter the cost of the
additional 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 of
construction
Sec. 6. (a) The works board may add to the cost of construction
of a system under this chapter and may include in the assessment
against the property on which the system is constructed the
incidental, inspection, and engineering costs that are authorized by
the preliminary resolution and included in the estimate.
(b) The amount of incidental, inspection, and engineering costs
included in the assessment may not exceed the amount of the
incidental, 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 resolution
approving construction of the system shall be published in
accordance 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 the
following:
(A) Hear all interested persons.
(B) Decide whether the benefits to the property liable to be
assessed for construction of the system will equal the
estimated cost of construction of the system.
(b) The works board shall send a notice containing the
information required under subsection (a) to the property owner that
applied 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 into
contract
Sec. 8. (a) At least ten (10) days before the date fixed for a
hearing under section 7 of this chapter, the engineer of the county
shall 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 preliminary
resolution if the contract exceeds the engineer's estimate filed under
subsection (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 7
of this chapter, the works board shall do the following:
(1) Hear interested persons.
(2) Decide whether the benefits that will accrue to the property
liable to be assessed for construction of the system will equal
the maximum estimated cost of construction of the system.
(3) Determine the assessment against the property on which the
system is constructed in an amount that does not exceed the
engineer's estimate under section 8 of this chapter.
(b) If the works board finds that the benefits will not equal the
maximum estimated cost of construction of the system, the board
shall 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 for
the 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 not
exceed 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 modified
or confirmed resolution
Sec. 11. (a) After the works board determines the amount of
special benefits that will accrue to the property liable to be assessed
for construction of the system, the works board may do any of the
following:
(1) Confirm the preliminary resolution.
(2) Modify the preliminary resolution.
(3) Rescind the preliminary resolution.
(b) The preliminary resolution is final and conclusive on all
parties if:
(1) the preliminary resolution is modified or confirmed under
this 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 under
IC 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 for
construction 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 to
enjoin the performance of the contract. This action must be brought
before 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 must
guarantee the contractor's workmanship and all materials used in the
work.
(b) The guarantee required under subsection (a) must be in the
following form:
"The contractor warrants the contractor's workmanship and all
materials used in the work and agrees that during the guarantee
period specified, the contractor will, at the contractor's own
expense, make all repairs that may become necessary by reason
of improper workmanship or defective materials. The
maintenance obligation, however, does not include repair of any
damage resulting from any force or circumstance beyond the
control of the contractor, nor is the contractor a guarantor of the
plans 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 county
must give written notice to the contractor to make the repairs. If the
contractor fails to begin the repairs not later than thirty (30) days
after the notice is received, the county may do the following:
(1) Make the repairs using the county's own employees or an
independent contractor.
(2) Recover from the contractor and the contractor's sureties the
reasonable cost of the repairs and the cost of the supervision
and 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 be
accepted 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 of
mistake in name of owner
Sec. 17. (a) As soon as a contract for construction of a system has
been completed, the works board shall have an assessment prepared
for the property on which the system is constructed. The property on
which the system is constructed is liable for assessment under this
chapter.
(b) The assessment must include the following:
(1) The name of the owner of the property on which the system
is constructed.
(2) A description of the property, or the key number or parcel
number of the property.
(3) The total assessment, if any, against the property.
(c) A mistake in the name of the owner or the description of
property 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 to
property owner
Sec. 18. (a) The following apply to the assessment indicated
against each lot, tract, or parcel of land:
(1) The assessment is presumed to be the special benefit to the
lot, parcel, or tract of land.
(2) The assessment is the final and conclusive assessment
unless the assessment:
(A) exceeds the engineer's estimate under section 8 of this
chapter; 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 on
which the system is constructed:
(1) of the assessment amount;
(2) that the basis of the assessment amount is on file and may be
inspected at the works board's office; and
(3) of the time and date before which an objection must be filed
with 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 in
section 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 presumptive
assessment. The works board's decision must be based on the works
board's findings concerning the special benefits that the property has
received 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 shall
deliver 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 to
show amount due
Sec. 21. (a) The works board shall deliver a certified copy of the
completed 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 primary
assessment, must show the amount due if paid in cash within the time
limit.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-22
County auditor notice of assessment to affected person; installment
payments
Sec. 22. (a) Upon receipt of the primary assessment, the county
auditor shall by mail notify the affected person of the amount of the
assessment against the person's property.
(b) The notice must state the following:
(1) That the amount is due not later than thirty (30) days after
the approval of the assessment by the works board.
(2) That a person who desires to pay the person's assessment by
installments must enter into a written agreement under
subsection (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 enter
into a written agreement stating that in consideration of that privilege
the person:
(1) will not make an objection to an illegality or irregularity
regarding the assessment against the person's property; and
(2) will pay the assessment as required by law with specified
interest.
(d) The agreement under subsection (c) shall be filed in the office
of the county auditor. If a property owner elects to pay the property
owner's assessments in installments, the assessment shall be entered
for collection on the duplicate, shall have the same priority and
rights, and shall be collected in the same manner as other taxes.
(e) The interest rate for the installments of the assessment is the
interest rate established in IC 6-1.1-37-9.
(f) An assessment of less than one hundred dollars ($100) may not
be 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 without
interest not later than thirty (30) days after the approval of the
assessment by the works board if an agreement has not been signed
and filed under section 22 of this chapter.
(b) If the assessment is not paid when due, the total assessment
becomes delinquent and bears interest at the rate prescribed by
IC 6-1.1-37-9 per year from the date of the final acceptance of the
completed 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 payment
of assessment installments.
(b) Proceeds arising from assessments for the payment of a
particular system may not be diverted to the payment of any other
system.
(c) The proceeds from assessments for the payment of a particular
system 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; collection
of delinquent installments
Sec. 25. Failure to pay an installment of principal or interest when
the installment is due makes all installments of principal yet unpaid
due and payable immediately, unless the unpaid installment of
principal or interest is paid within the grace period provided. The
county shall proceed to collect delinquent installments as delinquent
taxes are collected.
As added by P.L.7-2002, SEC.1.
IC 36-9-40-26
Supplementary proceedings to correct defect or irregularity in
contract
Sec. 26. If a defect or an irregularity results in the invalidity of a
contract, an assessment, or a lien under this chapter, the defect or
irregularity shall be corrected by supplementary proceedings that
substantially comply with this chapter.
As added by P.L.7-2002, SEC.1.