§ 36-9-22-2 — Terms of contract; power to fix; duration; share of cost; parties bound; waiver of rights

Indiana § 36-9-22-2

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 22: Contracts With Property Owners for Sewer

Text

(a) The power of the municipal works board to
fix the terms of a contract under this section applies to contracts for the
installation of sewage works that have not been finally approved or
accepted for full maintenance and operation by the municipality on July
1, 1979.
(b) The works board of a municipality may contract with owners of
real property for the construction of sewage works within the
municipality or within four (4) miles outside its corporate boundaries
in order to provide service for the area in which the real property of the
owners is located. The contract must provide, for a period of not to
exceed fifteen (15) years, for the payment to the owners and their
assigns 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 storm
waters in the sewage works or any lateral sewers connected to
them;
of a fair pro rata share of the cost of the construction of the sewage
works, subject to the rules of the board and notwithstanding any other
law relating to the functions of local governmental entities. However,
the contract does not apply to any owner of real property who is not a
party to the contract unless the contract or (after June 30, 2013) a
signed memorandum of the contract has been recorded in the office of
the recorder of the county in which the real property of the owner is
located before the owner taps into or connects to the sewers and
facilities. The board may provide that the fair pro rata share of the cost
of construction includes interest at a rate not exceeding the amount of
interest allowed on judgments, and the interest shall be computed from
the date the sewage works are approved until the date payment is made
to the municipality.
(c) The contract must include, as part of the consideration running
to the municipality, the release of the right of:
(1) the parties to the contract; and
(2) the successors in title of the parties to the contract;
to remonstrate against pending or future annexations by the
municipality of the area served by the sewage works. Any person
tapping into or connecting to the sewage works contracted for is
considered to waive the person's rights to remonstrate against the
annexation of the area served by the sewage works.
(d) Notwithstanding subsection (c), the works board of a
municipality may waive the provisions of subsection (c) in the contract
if:
(1) the works board considers a waiver of subsection (c) to be in
the best interests of the municipality; or
(2) the contract involves connection to the sewage works under IC 36-9-22.5.
(e) This subsection does not affect any rights or liabilities accrued,
or proceedings begun before July 1, 2013. Those rights, liabilities, and
proceedings continue and shall be imposed and enforced under prior
law as if this subsection had not been enacted. For contracts executed
after June 30, 2013, if the release of the right to remonstrate is not void
under subsection (i), (j), or (k), the release is binding on a successor in
title to a party to the contract only if the successor in title:
(1) has actual notice of the release; or
(2) has constructive notice of the release because the contract, or
a signed memorandum of the contract stating the release, has been
recorded in the chain of title of the property.
(f) Subsection (c) does not apply to a landowner if all of the
following conditions apply:
(1) The landowner is required to connect to the sewage works
because a person other than the landowner has polluted or
contaminated the area.
(2) The costs of extension of or connection to the sewage works
are paid by a person other than the landowner or the municipality.
(g) Subsection (c) does not apply to a landowner who taps into,
connects to, or is required to tap into or connect to the sewage works
of a municipality only because the municipality provides wholesale
sewage service (as defined in IC 8-1-2-61.7) to another municipality
that provides sewage service to the landowner.
(h) This subsection applies to any deed recorded after June 30,
2015. This subsection applies only to property that is subject to a
remonstrance waiver. A municipality shall provide written notice to
any successor in title to property within a reasonable time after the
deed is recorded, that a waiver of the right of remonstrance exists with
respect to the property.
(i) A remonstrance waiver executed on or before July 1, 2003, is
void. This subsection does not invalidate an annexation that was
effective on or before July 1, 2019.
(j) A remonstrance waiver executed after June 30, 2003, and not
later than June 30, 2019, is subject to the following:
(1) The waiver is void unless the waiver was recorded:
(A) before January 1, 2020; and
(B) with the county recorder of the county where the property
subject to the waiver is located.
(2) A waiver that is not void under subdivision (1) expires not
later than fifteen (15) years after the date the waiver is executed.
This subsection does not invalidate an annexation that was effective on
or before July 1, 2019.
(k) A remonstrance waiver executed after June 30, 2019, is subject
to the following:
(1) The waiver is void unless the waiver is recorded:
(A) not later than thirty (30) business days after the date the
waiver was executed; and
(B) with the county recorder of the county where the property
subject to the waiver is located.
(2) A waiver that is not void under subdivision (1) expires not
later than fifteen (15) years after the date the waiver is executed.
This subsection does not invalidate an annexation that was effective on
or before July 1, 2019.
[Pre-Local Government Recodification Citation: 19-2-7-16
part.]
As added by Acts 1981, P.L.309, SEC.95. Amended by
P.L.172-1995, SEC.5; P.L.251-2013, SEC.4; P.L.243-2013, SEC.3;
P.L.228-2015, SEC.23; P.L.18-2018, SEC.1; P.L.150-2019, SEC.1;
P.L.257-2019, SEC.162; P.L.156-2020, SEC.148.