Town Council buys IAWC utility

MOORESVILLE – The Mooresville Town Council approved an offer of $6.5 million to purchase IAWC’s Mooresville utility at its meeting Tuesday night. It also approved its president, George Watkins, to be the signatory on correspondence to the Indiana American Water Company at its Tuesday meeting.

In a letter to IAWC, town council president George Watkins said the town has approved a $6.5 million offer to purchase the water utility. The dollar amount of the offer is based upon an independent appraisal conducted at the town’s request. This was done in order to determine the appropriate value of the utility. Councilman Tony Langley said Friday that IAWC has 30 days to respond.“They could accept the offer or come back with another number,” Langley said. “But this is a separate issue from their lawsuit against the town. According to state law, IAWC bought the water system from United Water and must consent to sell it if the municipality wants to purchase it.”

After council members voted to move forward with their intent to purchase the water system from IAWC in August, the company filed suit against them. Through its legal counsel, the company alleged that the town council had been remiss in providing proper notice of its intent and important public documents the company had requested. The council has denied these charges, claiming IAWC officials knew well in advance through correspondence about a public hearing and special meeting – and that documents have been forwarded.

In a press release on the IAWC offer, Watkins said that this is not a “hostile takeover” of the utility. The council is simply responding to IAWC’s continued rate hikes that have dramatically increased water bills for Mooresville residents and industrial customers, including a recent 17 percent rate increase and its filing for an additional 3 percent surcharge on waer consumption. Watkins pointed out that IAWD is a for-profit company owned by a parent corporation in New Jersey. It has stated that its intent to consolidaate water rates in Mooresville with several other large water utilities (Richmond, Kokomo and Terre Haute) where rates are significantly higher. “The council has expressed its disagreement with IAWC’s plan and has been opposed to Mooresville water customers paying higher rates to subsidize IAWC’s costs (and profits) of providing water service in other communities,” the press release stated. Watkins said profits now collected by IAWC for salaries, corporate bonuses and shareholder returns would be invested into the Mooresville utility and community under the council’s plan of operation.

In other business, the council approved pay requests by Wilhelm Construction of $392,797.32 and $211,438.30 for Mooresville’s Waste Water Treatment Plant Expansion Project. Watkins said that all parties have signed off on pay requests 25 and 26, including plant superintendent Dan Tingle.

The council took care of some unfinished business with Reed & Sons on the Merriman Road sanitary sewer line and lift station Tuesday. Town engineer Ross Holloway said the lift station was completed last year, but Tingle was waiting on a part warranty that hadn’t arrived until last Thursday. The council was also waiting to hear whether town street/sewer superintendent Dave Moore had signed off on the testing. Holloway said the testing was done on the project on March 26 and 28, and Moore said he was satisfied with the results. Council member Virginia Perry said they had read Holloway’s report, and council members approved the pay request for $20,249.61.

The town’s attorney, Tim Currens, presented his contract for 2013, and there are no changes in his retainage. Currens also had the council members sign a CF-1 for Pro-Build for 2012-2013. The CF-1 is the company’s compliance report for its tax abatement.

Claims were approved for $209,765.24. The next council meeting is Dec. 4 at 6:30 p.m. at the Mooresville Government Center, 4 E. Harrison St.

By Amy Hillenburg | Reporter | Published November 24th, 2012 in The Reporter Times