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05-19-16 Utilities
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05-19-16 Utilities
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Council Attorney Kathleen Cekanski - Farrand stated they have never crossed through what is <br />currently on the books for exemptions. <br />Mr. Horvath stated the only exemption so far is E. That is the only one on the books. <br />Chairperson Dr. Varner asked is the really important piece from the Administrations perspective <br />is getting so we are in compliance with the ordinance. <br />Mr. Horvath responded yes. <br />Council Attorney Cekanksi - Farrand stated there is also the questions of specifying in the bill <br />who has the burden of proof in these exemptions. <br />Mr. Horvath responded if it makes it easier that we say there will not be assessments if other than <br />those City dollars were used to build, we can do that. The reason they left it as it was because a <br />developer might build a long water or sewer line they would be exempt from theirs but others <br />connecting we wanted to give them the ability to enter into a reimbursement agreement. But, if <br />we want to say all assessments will be waived for any water or sewer built by a developer or the <br />County then that is fine too. <br />Linda Rogers, President of Nugent Builders, informed the Committee that there legal counsel is <br />reviewing this ordinance and their original belief is that this violates the Indiana Impact Fee <br />statute. This bill may be subject to legal challenge and before anything is done the Council <br />should step back and see what the state says. We wish to work with the City, we understand the <br />City is under financial constraints. This should be an equitable and fair resolution but also one <br />that is mutually beneficial. It can benefit the City, residents, and developers. Ms. Rogers believes <br />the original ordinance passed in 2002 should just be scrapped and something should be put <br />together that works for everybody. <br />James Mueller, Chief of Staff in the Mayor's Office with offices on the 14th Floor of the County <br />City Building, stated the utility is going to recover its cost regardless. The real question is who is <br />going to pay for new development. Should the developers pay a fraction of the cost which is <br />what the assessment fee pays for or do you want to put it all on the backs of rate payers? That is <br />the essential debate here. The City thinks there is the justification that the cost should not be <br />pushed onto all ratepayers, a low income community, so when we talk about a fair and equitable <br />solution we need to keep in mind where the costs are shifted to. <br />Mr. Horvath stated if he was asked to look at scrapping this 2002 ordinance and starting over, he <br />personally would want to look at it from a cost of service perspective and try to recover all the <br />money needed to extend lines. Otherwise you will always have a portion of that rate paid by the <br />conglomerate of your rate payers. That number would certainly come out to be more expensive <br />than the current rates. <br />Chairperson Dr. Varner stated we need to first address the issue that this ordinance hasn't been <br />enforced since 2002 and people are concerned about retroactive enforcement. People are <br />justifiably concerned about that so that needs to be clarified and Mr. Horvath and the <br />7 <br />
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