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percent (14%) in lieu of a calculation that was based upon thirty percent(30%) of the difference between a property tax if they were using one (1) utility, and fifty percent (50%) of the difference if they were using two (2)utilities, for outside users. The fourteen percent(14%) number that was provided to the Council was based upon recommendations from outside counsel—Barnes and Thornburg—and through their discussions with the regulatory bodies of the State, such as the IURC. Essentially, fifteen percent (15%) is the threshold. We recommend to the Council that fourteen percent (14%)be used as the fair and reasonable surcharge number. Councilmember John Voorde asked, And that was a phase-in, correct? Mr. Schmidt responded, Correct. You're going to go with five percent(5%)the first year,ten percent (10%)the second year, fourteen percent (14%)the third year and going forward. We ask that you have the public hearing today and that you allow, as the statute requires, customers outside the boundary to come and let their voices be heard. It is important that they be heard. We remind the Council of Ordinance 17-29, which allows for individual customers to negotiate a private use agreement with the Board of Public Works, if they can justify a basis for having a different fee than other outside users. 17-29 gives the authority to the Board of Public Works to enter into a contract with an outside company,but such a contract would only be effective upon the Council's approval via resolution and then yearly presentations by the applicant before the Council to continue to justify such savings. We ask that you reaffirm the provisions of Ordinance 10461-16 so that we can move forward with the implementation of the surcharges on our customers that are outside the City boundaries. Absent action from the Council,we are at jeopardy of going back to the old compact fees of the prior ordinance, which I think we can all agree would be a disappointing outcome and would be very challenging in application and for our customers out there. Councilmember Jo M. Broden asked, So, any anticipated numbers or percentage of folks who would look to negotiate a different rate? Mr. Schmidt responded, We know of one (1) company, I/N Tek and I/N Kote, represented by Mr. Dick Nussbaum. They are the City's largest wastewater customer. We have had some positive discussions with them about why they might be able to provide strategic justifications as to why a savings would be appropriate. We hope to continue to negotiate a special rate deal with them that we could then bring forward to both the Board of Public Works and the Council for final approval. Outside of I/N Tek and I/N Kote,the University of Notre Dame does have a private use agreement. We would expect that Notre Dame would have an interest in discussing this with the Council, as well. As Dr. Varner noticed, there is some discussion as to the current validity of the agreement with the University of Notre Dame. At one point in time,they did have an agreement with the City for a special rate. My sense is that those would be the two (2) parties that would engage in conversations for special rate agreements. We are sensitive to the fact that we don't want to open up Pandora's Box on special rates. We need it to be compelling. We need there to be a true justification to the City as to why they are entitled to a lower rate than the rest of the 2,000-plus customers outside of the corporate limits. But that's what 17-29 exists for: to be able to prove it, sell it to the Board of Public Works, sell it to the Council, and then come back to the Council, and make sure that the savings that were there, when the Council approved the 2