IAWC pleads its case

MOORESVILLE – Officials from the Indiana American Water Company want to hold onto the Mooresville water system. And they made sure their reasons were known Thursday during a public hearing they conducted.Company representatives Joe Loughmiller, Cristy Wheeler, president Alan DeBoy and operations head Bruce Hauk handed out information and fielded questions at the Mooresville Public Library. They feel they’ve been denied this opportunity by the Mooresville Town Council, which has started the process to consider purchasing the water company.

Loughmiller made that clear by showing the public notice of the hearing on July 25 in a legal document buried in the classified ads. “Nothing was explained to residents before the public hearing on Aug. 7, and only two or three people came forward to comment on something they knew nothing about,” Loughmiller said. No questions were taken after the hearing, so our employees stayed outside to talk to residents.”Loughmiller said on Aug. 10, just three days after the hearing, the council voted on beginning the process, and no time was allowed for public comment or questions.

DeBoy told the audience that officials were surprised by the town’s action, since IAWC has no compliance issues, runs the water system efficiently and has tried to keep rate increases reasonable for customers. They also have employees who live and work in Mooresville, and IAWC has also been involved with the community through the Kiwanis Club, schools, the chamber and science clubs.

DeBoy said there have been various attempts to meet with council members to try and resolve some of the rate issues. But company representatives have been directed to the town’s attorney.“This is the first time we’ve ever been faced with this,” DeBoy said. “I’ve been with Indiana American Water since 1993 and in the 1980s, worked for the previous company General Water Works. IAWC took over Mooresville’s system in 2000 — we’ve given good service and provided the expertise of our staff in its management. We are not a willing seller. We run utilities, and we think we do a pretty good job at this. Mooresville is not a troubled water system. We want to know the council’s real motivation in taking this action.”

The council has stated that the recent dramatic rate increases, about 17 percent for homeowners and up to more than 40 percent for industries who are heavy water users. Council president George Watkins and member Tony Langley see a pattern of increased rates because Mooresville is in the company’s consolidated rate structure. This single-tariff pricing is not new, DeBoy said. But according to the town’s attorney, Chris Janak of Bose, McKinney & Evans, it wasn’t fully implemented in June 2012 to avoid a “very significant rate increase.”Langley, who worked for the water company years ago, and Watkins, as well as the other council members, believe these rate increases will not only become a real burden on customers but will put a stumbling block in the path of economic development. DeBoy said the council’s move goes against the current trend of municipalities trying to get out of the water business. “Towns don’t have the capital or expertise to run utilities, and we’ve worked with some municipalites that could not find licensed professionals to run utilities they own or have purchased,” DeBoy said. He added that towns and cities are already struggling to fund capital projects, and he doesn’t understand Mooresville’s willingness to take on another one.

Hauk said he never saw a public hearing handled like the one on Aug. 7.“There is no transparency. Yes, they have an email and phone number for residents to ask questions. But you should be able to see their plans and dollar amounts for this project online. The town council is running the town without your input,” Hauk said. “No one ever talks about the 18 percent decrease in rates Mooresville customers got in 2010. Actually, in the last 10 years, Mooresville has gotten two decreases.”Hauk said the company pays $54,000 in property taxes, and part of this money goes to the schools. If the town takes over, that income stream will be cut off.

Residents at the meeting said if the town runs the water system as it does the sewer utility, rates will still increase — maybe more. They noted a 98 percent rate increase in their sewer bills, and IAWC officials also noted that the Mooresville Wastewater Treatment Plant has had non-compliance issues. Wheeler said although the council said the legal process will only last a few months or a year, each side must complete valuation and due diligience which is”fact specific” to the case. The money to continue the fight will have to be set aside by the town, so taxpayers will be affected.

Resident Gregg Terhune said House Enrolled Act No. 1278 and an amended Section 1. IC 8-1-2-92 has been in effect since July 2009. It states that “any such municipality is authorized to purchase such property, and every such public utility is required to sell such property at the value and according to the terms and conditions as provided.” Wheeler argued that a private company does still have the promise of due process as far as fair market value and adequate compensation.

Troy Bryant, a Mooresville resident and IAWC employee, said it’s been hard to sit back and watch what’s been going on. Some residents asked if they could have addresses and names of customers to launch a petition against the town’s decision. But Hauk and Bryant said the could only disclose the territory they serve.“Only with your voices can you change the direction that the council is going,”Bryant said. “If you don’t feel this is in your best interest, let them (council members) know. Write letters to them, come to meetings, write to the newspaper — the response matters more when it comes from the people.”

By Amy Hillenburg | Reporter | Published September 22nd, 2012 in The Reporter Times