Common Council - Regular Meeting

We'll go ahead and bring tonight's council meeting to order. First thing on the agenda is we'll have prayer. And Pastor Alex Husky, a very good friend of mine, he has graciously offered to do our prayer tonight. Alex, thank you very much for that. And then while we're standing, Councilman David Cain will lead us in the Pledge of Allegiance. So everybody please stand.

If we can just bow briefly. Gracious and merciful God, the God of our hope, the God of our joy, the God of our peace. We have gathered in this place today to give you thanks for the love that you have shown us and your mercies who have, which are in renewed daily. We thank you Lord for the work that's being done even on this evening. And even as we have enjoyed 250 years of independence as a nation, We're thankful that we can still depend on you. So tonight I ask a blessing over all who have answered the call to care for your people and have been elected to represent those who are governed. The Constitution of this great nation reminds us that governments are instituted among men deriving their powers from the consent of the government to secure the rights of mankind. So tonight as we conduct this business, I ask you to move in the hearts and the minds of your people and your elected officials that this which is your perfect will may be done for the needs of the people who have elected them to be governed. We praise you, we thank you, and we honor you in your son Jesus' name. Amen.

Remain standing and join with me at the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

Thank you, Alex. Thank you, Mr. Kane. Okay. Roll call, please.

Kane.

Here.

Reyes.

Here.

Fordyce. Brunner.

Here.

Klein. Marshall.

Here.

Whitten.

Here.

Devine. Calgill.

Here. Next on the agenda, we got kind of a special group of young men and women with us tonight that are part of – they're going to – well, Aaron Murray is kind of the guy leading the charge here, I believe. And if you would like, Aaron, come on up. Come all the way up here. And – I'd like for you to have your team up here, too. They can file in behind me, stand in behind me. But these guys are going to be part of the International Children's Games. And instead of me saying anything, I'm going to let you just do it so I don't screw it up in any way. So I'm very proud of these guys. Just come in behind, guys. Just kind of evenly, yeah. Bend down. Yeah, I know. Well, you would have said Latal would matter.

My bad. Members of the City Council, members of Marion community, thank you for allowing us to speak on behalf of the Team Marion USA delegation. In just over a week, our delegation will depart for Wailin, Taiwan, to participate in the International Children's Games. Our group is part of over 1,600 athletes from 60 countries who will be competing in this Olympic-style event. Approximately 57 athletes, coaches, delegation leaders, parents, and family members and supporters will make the trip from Grant County. At the center of that delegation are 18 young athletes, who you see behind me, who will compete in boys soccer, girls soccer, and boys basketball. These athletes attend schools throughout Marion and Grant County and the surrounding areas. They play for different schools and local Marion clubs, but when they arrive in Taiwan, they will compete under one name, Team Marion USA. It is worth taking a moment to put that into perspective. Of the 16.5 million 12 to 15 year olds in the United States, the only 18 athletes representing our country in these three respective sports at this year's games will be our athletes from Marion and Grant County. On the world stage, these young people will not only represent themselves and their families, but also the city of Marion, Grant County, the state of Indiana, and the United States. No pressure, kids. That is an extraordinary responsibility, but is also an extraordinary opportunity. The International Children's Games are about much more than athletic competition. Started in the 1960s, these games give young people the opportunity to experience another culture, meet athletes around the world, and to learn what it means to represent something larger than themselves. This experience would not be possible without tremendous community support. On behalf of the delegation, I want to thank the City of Marion, the Community Foundation of Grant County, our sponsors, local businesses, charitable organizations, schools, coaches, families, volunteers, and everyone else who has contributed financially or helped behind the scenes. People have provided so much and made so many sacrifices to help these young people reach this international stage. Their investment is about much more than funding a trip. They are investing in the confidence, education, leadership, independence, and personal development of these athletes. This experience will shape how they see the world, and perhaps more importantly, how they see their own place in it. We are grateful for this recognition this evening, grateful for the support that has made this opportunity possible, and proud to carry the name of Marion with us to Taiwan. Our delegation will depart next Wednesday, July 29th at 5.30 from the City Hall parking lot just across the street from these chambers. We would invite each and every one of you, along with members of the community, to join us in sending this delegation off. It would mean a great deal to our athletes to see the community standing behind them as they begin this journey. They may be traveling literally halfway around the world, but they will be taking with them the pride, encouragement, and support of Marion and Grant County. At this time, I would like to introduce Jonathan Perez, who will travel with us this year as the boys' soccer coach. Thank you.

I don't have to bend over quite as far, so I appreciate that. Thanks, Aaron. Members of the council, everybody's here. Ronnie's not here, so don't tell him that I'm giving him some props. But for those who don't know me, I am Jonathan Perez. I previously served as chief of staff here and was part of the original delegations that went to these games. This year, I'm grateful to return in a very different role, serving as the head coach of the boys. and a parent traveling with the delegation. My original connection with the games at that time was very early in my 20s, recently out of school where I was chief of staff. And I was fortunate to help the city. And Mayor Morrell himself was involved during that same time slightly from a different perspective. While the mayor is not that much younger than I, I was beginning my professional career while he was wrapping up his high school career. And I will let you guys decide which one of us that makes us sound older, because I'm going to vote for him. But more importantly, Mayor Morrell was an athlete of one of those last delegations that the city of Marion sent. He experienced firsthand what this opportunity can mean to a young person, and he knows what it's like to leave Marion, compete internationally, and have those lessons. So for that, I want to thank him for bringing it full circle leadership and bringing it back and giving the kids the same opportunity that he had. The kids, and the kids, I just want you guys to know and you guys to hear us say, when you step onto that field or the court, you're representing much more than yourselves. You're representing all of us and the families and the schools, and we know you'll carry that with pride. We are very proud of you. We believe in all of you, and we look forward to seeing how you will represent us. Thank you.

Um, I, I would just like to say to all you guys, this is an unbelievable opportunity. I would have loved to have had the opportunity when I was a young athlete many, many years ago. Um, Good luck. I think it's unbelievable that the only ones representing the USA are all from Marion and Grant County. That's phenomenal. And I want to thank the coaches and Brandon and all you guys for doing this. Man, I'm pumped for you guys. I really am. What time is it you're leaving next Wednesday? Oh, wait, 5.30 in the morning? No. Oh, okay. I was going to say, I'm sorry to say I'll be there. I went, well, wait a minute. No, okay. Yeah, right over here. I'll be one of the ones there to send you guys off and tell you guys good luck. Why don't you guys just say your name real quick so at least we all know who you are. We'll start with you and go on down.

My name is Carson Bledsoe. Wesley Hagan. Gabby Rendon. Andrea Brown. Anair Esparza.

I'm the girls head summer coach. Oh, okay.

Elaine Morgan. Eliana Perez. Liria Ramos.

TJ Gross. Ace Johnson. Camden Huffman. Emilio Sellers. Chris Villarreal. Warren Peterson. Nasir Agambo. Brandon Stace, the boys head basketball coach.

Good deal. So you're the coach? After you look young enough, I thought you was one of the players. And what is the age group to all the athletes? 12 to 10. 12 to 15 years old. Phenomenal guys. This is very good. Any of other council people like to say anything?

I have a question. Will any of this be on YouTube or any of the games that we can view eventually or not?

Great. Thanks, Aaron. Aaron, how long will you guys be down there?

And this is yearly that you're going to keep this going, right?

Yeah. The city of Marion did it for about 10 years, 10 years ago. And then we're starting it up again. And the goal is to just keep going year after year after year.

That's awesome. Marion's known for turning out some great athletes. So this is really cool. Well, next year, where do you go next year?

Greece. Ooh, maybe you need a cameraman next year.

I'm willing to go, so all right.

Anybody else, guys? Well, just a wonderful opportunity for you guys, and enjoy yourselves.

Okay, next up we'll have the consent agenda. Are there any questions or comments about the consent agendas? If not, I'll entertain a motion.

Mr. President, I move that we pass the consent agenda in full. Second.

Okay, we have a motion by, excuse me, Councilman Cain. Second by Councilman, was it Brenner? Brenner. Roll call, please.

Kane?

Aye.

Reyes?

Aye.

Brunner?

Aye.

Marshall?

Aye.

Whitten?

Yes.

Calgill?

Aye. Any committee reports at this time? I know most of our committee people are gone tonight. No, don't see any. Okay. We'll move on to unfinished business. Resolution 10-2026.

A resolution of the Common Council for Marion, Indiana, approving a First Amendment to a certain economic development agreement. Prismian Cables and Systems USA speaking. Joe Murphy.

Welcome, Joe. Good evening, council members. Pleasure to be in front of you once again. This is a project that's now come across four individual agendas. So just to kind of bring everybody back into the full picture, would want to start here with just a general summary overview of the project. We originally began this project back in April when we began to talk with the company about this investment. It is a $32 million investment in their existing facility just outside of this facility over here over on 4th Street. $28 million of that would be invested in new personal property to expand operations at the facility. It would also come with 29 new jobs, which would be paid an above average county wage for the position, averaging out around $30, $31 an hour. We originally brought the economic development agreement as well as the declaratory resolution to the council on June 2nd, seeking approval of a 10-year, 75% tax abatement, which would have delivered an estimated $1.13 million in savings to the company over the life of the abatement, the full 10 years. However, since that original approval on June 2nd, we did receive word through a memo from the Department of Local Government and Finance, the DLGF, that they were going to be changing their interpretation of certain statute around treatment of personal property inside of TIFs. You may or may not know that fairly recently the state of Indiana essentially eliminated the depreciation floor for business personal property. It was originally that it would depreciate down to 30% and then remain at 30% for the remainder of its life before it was replaced. It can now depreciate down to zero. The Indiana State statute was pretty clear, though, that any new property installed after 2025 inside of a TIF area that was established prior to 2025 would be excluded from that new law and would remain at that 30% floor. That was the Language of the law, as we understood it, however, the memo kind of cut against that and said that that new personal property would be depreciated down to zero, completely readjusting what we believe to be kind of the expected value of the abatement to the company, looking at a difference of roughly $600,000 in abatement value between the original interpretation and now this new interpretation. When we went and sought clarity from the DLGF on how they were going to treat this project specifically, they didn't give us any kind of commitment as to how they were actually going to treat this moving forward. So at this point in time, it remains unclear to myself as well as our colleagues at Baker Tilly and Barnes and Thornburgh as to whether or not the original application will apply or this new application will apply. And so what we've had to do is kind of craft a creative economic development agreement and actually amend our existing economic development agreement to account for this. What the new proposal would look like is a 10-year personal property abatement that would be 100%, up to 100%, I should say, in years one and two, and up to 90% in years three through 10. This would require a little bit of extra work on behalf of the city. Essentially what would occur would be that every year the company would come in and they would submit to us Well, and so you understand we just went through this process with the CF ones that May 15th is the deadline for those submittals The company would come in a full month before that with their tax submittals And we would go through a calculation with the assistance of our controllers office and Baker Tilly to determine whether or not the application of that full value whether it be a hundred percent in the years one and two or ninety percent years three through ten would result in the new equipment assessing at a net assessed value threshold of above or below 7.1 million dollars and whether or not the estimated savings for the company would be over or above what was estimated in the original savings document. And so with those two triggers, we actually have some protection for the city. So while we are providing what is on paper additional abatement, that is to secure the savings for the company in the event that this new interpretation applies. However, we do have the mechanisms both the NAV threshold as well as the personal property abatement cap to pull back those abatement savings and those abatement percentages all the way back to the original 75 if, the original interpretation does stand in the future or some varied approach gets applied in the future that we can't predict today so again it gives us the flexibility to treat it in either direction depending on how the DLGF ultimately decides to to land on this issue uh... but as you'll see in the attachments to your updated EDA Appendix a includes the original schedule and you can see there that again one point one three three million dollars in savings over the ten years largely delivered in years two through six two through seven And that's the original abatement schedule then you can look at the abatement schedule revised abatement schedule on appendix B And you'll see that again applying these new higher abatement levels You receive that exact same amount or not nearly identical amount of savings one point one three five in this case so in every any given year We wouldn't expect to see additional savings earned as a result of this higher abatement. We're just trying to honor the original intent of the abatement, which was to deliver that $1.13 million in savings to the company over 10 years in exchange for their new investment in our community. So that is what we attempt to address through this economic development agreement. We're now in a position where we have to go forward with approving that economic development agreement, the amended version, and then we'll proceed on to approving the declaratory resolution in the next step of the process after we perform the required public hearing. So with that, I'll stop and see if you guys have any questions. I will mention we also do have our plant manager here for our local Prismian branch, and then we also have Greg Balzano here from Baker Tilly. So if there's any company or financial questions that I can't answer, I'll gladly call those two gentlemen up to fill in the council.

Joe, I appreciate it. I know you guys had to go back and work hard and come up with kind of the B, whether they're going to go with A or B, we're covered either way. So I commend you guys, all of you guys, you know, Barnstormer, Baker, Tilly, everybody that worked hard on this. I don't know. I don't necessarily agree with the way they're doing it, but of course I'm nobody. Yeah. I do know how hard you guys worked on this, and I appreciate the fact that you did it to help cover everything.

And again, I'd just reiterate that the intent of this new revised economic development agreement is just to honor the intent of the original abatement, which we did approve through the first step of the process back in June, and then we were kind of upended during that process. And I'll also point out that, though it's for different reasons, we do perform a nearly identical process on General Motors for their existing personal property tax abatement, where we do have NAB threshold that we monitor annually to be sure that the project is not Over abated and that the the city's actual tax flow in is not being reduced above and beyond what would be appropriate So we have experience with this kind of structure and we think it'll work just fine It's just again slightly more work every fall or every spring for us, but nothing.

We're not used to incapable of managing Any questions from anybody else budget I

Do we know when the DLGF is going to make that decision? Like, what does this look like? They're putting everybody on hold and we've had to adjust. I mean, can they come back and say, oh, we're going to go part one on this and here we go again.

Yeah, I'm going to ask maybe Greg and Greg may not be able to give a great answer, but I think he'll probably be able to give everyone that I can.

Thanks, Joe. Greg Balsano, Bakertown Municipal Advisors. Unfortunately, that's a great question. I don't think we have a hard timing, you know, idea from the DLGF as to when their future guidance could be provided. I wouldn't be surprised if something comes up in the next legislative session, maybe some clarity language potentially. that then clarifies the position of what was meant to be passed a few years ago. You know, I could see that happening, which would be, you know, spring of next year or spring in a later year. So I think, you know, given that we don't really have a timing estimate and there may not be future clarifying matters that I think, you know, as Joe mentioned, we did the best we could, you know, to try to cover both instances, not knowing again if that's a few months away or years away from being clarified.

And then how does this affect the project and what's going on at Prismian? When are they able to start and everything? Because we've been pushed back now. What does that look like timing-wise?

Yeah, I mean... I know the company's been, they've been incredibly cooperative through this whole process and understanding, and obviously there's benefit to them going through this because they're going to receive the full original intent of their abatement if this is approved, but they're chomping at the bit. Their representatives, both Justin behind me as well as their consultant on this project, Kathy Musio, have been calling me weekly asking, when can we get our job postings out? When can we go ahead and procure our material so we can get this installed? They're going to commence as soon as we get this approved, and I think the intent is still to get some small portion of the equipment installed this year, begin the hiring process for those new jobs this year, but the lion's share will still be invested and installed in 2027 and then through 2028, and I think their statement of benefits, yeah, if I'm not mistaken, calls for final investment to be made no later than 12-31-2027, and I believe they're going to continue to honor that timeline, so... The full amount of that investment, $32 million in total, 28 personal property, will be made by the end of next year.

And that includes the jobs on that? Yes. All of those jobs will be hired as well before that deadline?

That's correct, yep. A total of 29 new additional employees at a total salary of $1.932 million is what's currently estimated on their SB1 filing.

So, Joe, have they decided like when they make their their determination, let's say they go with the way a that we use always did it or now they go by this interpretation or however it is now. Is that kind of then going to be it's just it's going to be that way from here on or are we going to be second guessing? You know, I mean.

Yeah, again, that's a good question. I don't know that I have a perfect answer for you. I would hope that, because I'm sure that every other community that's contemplating similar type abatements right now is dealing with a very similar type issue. I would hope that in this upcoming legislative session, they may try to address that specifically in the language of the statute. So we'll have final clarity one direction or the other at the end of the following legislative session. So I would hope by this time next year, we could... likely have full clarity on how they're going to treat this moving forward, but I can't say that for certain. Would you agree with that, Greg?

Yeah. Anybody else? If not, I will entertain a motion.

Mr. President, I move that we pass resolution number 10-2026. Second.

Have a motion by Councilman Cain, a second by Councilman Whitten. Roll call, please.

Cain.

Aye.

Reyes. Aye. Runner.

Aye.

Marshall.

Aye.

Whitten.

Yes.

Calgill.

Aye. Okay, move on to the confirmatory resolution 9A-2026.

Confirmatory resolution designating certain property as an economic revitalization area, authorizing and approving statement of benefits, Prismian speaking, Joe Murphy, Economic Development Director.

So this is this is the actual formal process of approving the abatement the economic development agreement that we just approved the amended version of Kind of dictates process and how we actually treat the abatement once it's in effect. This is the actual act of approving the abatement establishing the economic Revitalization area and then approving the form of the abatement which again this new form would be a maximum of 100% in years one and two and then 90% in years three through ten and And then you can see there on the Exhibit A schedule that abatements may be reduced in any given year down to 75% based on that NAV threshold and or personal property abatement cap as further described in that EDA amendment. So this is the formal action. I would remind you again that we approve the declaratory resolution, kind of the brother resolution to this document back in June. This is now the second step, the confirmatory resolution of this process, and it does come with a public hearing. But I'd entertain any questions before that as well.

Any questions before I open it up? Okay, seeing none, I will now open it up. This is a second reading public hearing. Anybody that would like to speak for or against this, you can come up to the mic. You'll have three minutes to speak. State your name and your address, and you can speak then.

Yes, my name is Bill Creech, 1409 Ironwood, Marion. I just had a quick question. You guys had mentioned the 29 jobs, and we've done a lot of these tax abatements and things before, and they didn't fulfill the amount of jobs that was required. Is there going to be some type of review process that if they do not hit that target, that there's a decrease or some adjustment made in what you're doing?

Yeah, we review each one of our tax abatements every year, Mr. Creech, and they have to fit into these categories in order to receive their tax abatements.

So if they don't hit the job target number, they will not receive it?

Well, it's up to the council at that point to decide whether they get it that year or not if they're not in compliance.

So the 29 is just a number? No, it's not a number. That's what they're saying. Okay, but I mean, if there's no teeth in it, then... There's nothing to say. If they only put 15 and you guys say that's okay, then that's the way it is. I might interject.

There is definitely teeth in it, and you're going to hear that here later on in this meeting. And another tax abatement, there is teeth.

Okay, maybe I'm just jumping the gun.

No, you're not. Good questions. But there is teeth, Mr. Creech. Okay, thank you very much.

Anybody else? All right, seeing nobody else come, I'm gonna go ahead and close the public portion of this. And if there's no other questions or concerns from the council, I'll entertain a motion there.

Mr. President, I move that we pass confirmatory resolution number 9A, 2026. Second.

Okay, we got a motion by Councilman Kane and a second by, who is it? Was that you, Eric? Okay, by Eric. I'm sorry. I didn't know if it was you or Andy. It was Eric.

Kane.

Aye.

Reyes.

Aye.

Brunner.

Aye.

Marshall.

Aye.

Witten.

Yes.

Calgill.

Aye.

Okay, next up is the additional appropriation 13-2026.

An additional appropriation appropriating $25,814 for a park bond. Speaking City Administration.

Good evening, Council. So we came a couple of weeks ago and we asked for the 360, 687, 81 for the park bond. DOGF has recalculated that park bond and so now we're adding the 25, 814 that we would like additional appropriation to make the total payments for July and December for this year.

So this just catches up on all the bonds on the park bond? Yes, sir. Okay. If this does pass, I'll bring it to you in nickels as long as Linda has to count it.

Okay, that's agreed.

Any questions, guys?

Go ahead, Jim. What is currently going on with the dog park? I know that about a month ago we had a big celebration out there. A lot of people showed up, and now... I guess a day later they said no we can't do it right now and now every day I go by there. I go by there every day to check it out and it still says no entrance. What has happened to that?

Councilman Brunner, I honestly do not know, but I can get someone who does know. I can contact Rose, and she can get in contact with you.

Because I'm the park board representative, and if you could have her give me a call, because I've stopped by a couple times, and I know she's got somebody in her family who's not well. So all of a sudden it went from we were opening it up, and I don't think there's been a day that it has been open Fully so if I can please get some information and the console console can get some information I'd be very helpful because there's a lot of people asking me about it.

Sure. Thank you that for you.

Thank you Anybody else if not, I will take a motion Does this go to a second reading

Or not.

Yeah. It does? Okay.

Mr. President, I move that we pass additional appropriation number 13-2026 to a second reading and public hearing.

Second. I have a motion by Councilman Cain, second by Councilman Brenner. Roll call, please.

Cain?

Aye.

Reyes?

Aye.

Brenner?

Aye.

Marshall?

Aye.

Whitten?

Yes.

Calgill?

Aye. Okay, now next up would be resolution, and this would answer your question, Mr. Creech, on Resolution 12-2026 on historic Gallatin. This was to do with their tax abatement, and there was a problem of them not being in compliance with it, so we voted to not give them the resolution. So now... The people that they have an opportunity to, correct me if I'm wrong, Joe, or if you want to get up there, to plead their case, so to speak, when we do that. We just got notification. Aisha, was it yesterday or today? Yeah, this morning that they just got their packet and they had no time to make it here in time. So they asked us to kick this back to our next reading so that they can plead their case because we did vote to revoke their tax abatement. So the teeth are in these. If they are not in compliance, this is one that we revoked.

Am I about right there, Joe? Yeah, no, spot on. And to further address Mr. Creech's question, which is a great question, yeah, so we have both reactive power as well as forward-thinking power within those economic development agreements for tax payments to – Address issues with non-compliance and so like you said annually they'll be required to file Those cf-1 forms and if it shows that they have not met their job totals this council does have the ability to Look back into the previous year and actually there's a there's a calculation inside of the economic development agreement that allows for you to reclaim some of that abatement that was received in the prior year and and you also have the ability to, moving forward, cancel out future years or completely, up to completely, rendering the remaining years of the abatement null and void. And so there are certainly strong teeth in these documents, and there's an expectation that if you don't perform, then you'll be challenged. And this is a great example of that, where we have an investor who has missed deadlines and has had some inconsistent filings. And so we're trying to get to the bottom of that through this process. And like you said, President Cowgill, In this case, it seems as though even though notices went out two and a half, three weeks ago, the recipient received a damaged and beat up file as late as yesterday afternoon and contacted us immediately, made us aware that While they do want to address this council and get the issue resolved, they're not prepared to come before this council tonight, not available. So I feel it's appropriate to give them two weeks to get prepared. My expectation would be I'll reach out to them through my office and have a conversation in advance of that meeting so that we can come and have a more honest and robust discussion on the August 1st meeting.

We need to have a vote on this, Marty. Can we just table it?

Yeah.

Okay. All right, yeah, that's what I'm going to do then. I'm just going to table it to our two weeks at our next meeting. All right, next up is the Marion Utilities update from the Marion Utilities.

A brief update on financials, significant happenings, current projects, and noteworthy issues on the horizon. Speaking Robin Schrader, Executive Director for Marion Utilities.

Welcome, Robin.

Thanks. Good evening, everyone. I know it's been a few months since I've come before you, but I did want to make good on my word to provide you with more frequent updates. So thank you for allowing me to share with you tonight. And rest easy, there's no request in this, okay? So yeah, I do have quite a few numbers though. So if you get caught up in that, I'm happy to email you this report afterward if you'd like. First, financials. The most recent financials we have are from May. Utility sales remain stable across all divisions with each utility meeting or exceeding prior year revenue levels. Water revenue increased as anticipated following the January 1, 2026 rate adjustment. That was phase three of the 2023 rate increase, just for clarification. Operating expenses were higher than typical during the month, primarily due to the annual allocation of liability insurance premiums, and that was across all four utilities. Water utility operating expenses were above average due to approximately $23,000 in additional purchases of distribution parts and repair materials, increased expenditures for street repair supplies, and approximately $28,000 in higher contract service costs. Sewer utility operating expenses exceeded normal levels due to $115,981.35 associated with rerouting the Lime Lagoon overflow. And that is a project where we are looking to get rid of one of our permits. So that was a big milestone there. It was also because of the purchase of Gorman Bethlehem pumps totaling $88,742. The water utility cash position continues to require close monitoring. The depreciation fund balance remains at zero. The utility continues to rely on the 1.8 million interfund loan from the sewer utility to maintain adequate operating cash. Without this loan, the water operating fund balance would be approximately $325,000 below the recommended two-month operating reserve. Sewer construction project proceeds from the $10.5 million Indiana Bond Bank financing remain in the construction fund. The May ending balance was $10,079,784.22. Project expenditures continue to be paid through the long-term control plan fund and reimbursed from the construction fund. And then regarding net operating results, water and sewer utilities reported a net operating loss for the month of May, while stormwater and solid waste utilities reported a net operating gain for the month of May. And then June financials are in process and will be provided to our board for review at the first meeting in August. Now for significant happenings. This is slightly more exciting. We're in the process of determining next steps for our old lime lagoons at 11th Street and Bush Lane. If you're not familiar with where that's at, it's behind the First Pentecostal Church on Pennsylvania Street, just south of State Road 18. The Indiana Department of Environmental Management and the Indiana Department of Natural Resources have competing interest in how this should be handled. And so we're waiting to see what they can collectively determine before we move forward there. The water rate case you approved earlier this year is still in process. We've been regularly working with our attorneys and eagerly await next steps with the IURC. And there have been two retirements in the last four months, and we anticipate at least two more in the near future. None of these represent entry level positions. That often leads to upward movement from within, but it can also require additional conversations and recruiting efforts. As for current projects, We're taking inventory of the new water meters we recently installed. We have a young man going around and checking those. That's a slow process, but incredibly necessary. This allows us to confirm each meter is correctly identified, matched to the right customer account, and then functioning as designed. We're also continuing to install additional meters that the contractor couldn't get to. For example, those in a basement, those requiring a full meter pit replacement or those which could not initially be located. Our big combined sewer overflow project at Clark Street near Home Avenue hasn't started off so well. Earlier this year, we learned of a soil contamination issue that requires special handling and disposal procedures that were not previously accounted for. The result was the issuance of a change order in the amount of $1,023,763, or approximately 10% of the total project cost. Our board approved this change order at the meeting on July 9, and we expect the contractor to begin the excavation process tomorrow. And finally, noteworthy issues on the horizon. The good news is we're nearing the end of our long-term control plan mandated projects. The project at Home Avenue I just mentioned is the second to last. The bad news is that this last project will be the largest and most expensive to complete. Allow me a brief historical review. This will give you some background as to why we're doing this. In 1972, the EPA implemented the Clean Water Act, which focused on regulating wastewater treatment facilities with the goal of making waters fishable and swimmable. This was followed by the combined sewer overflow control policy in 1994, and the Wet Weather Water Quality Act in 2000. As a result, many cities entered consent decrees, agreed orders and judicial settlements to work toward this mandatory compliance. These agreements often required specific construction projects, schedules lasting 15 to 25 years, annual reporting and stipulated penalties. Marion Utilities' long-term control plan then is the result of our state judicial agreement from these things and serves as a binding roadmap for achieving and demonstrating compliance. Our last mandated project requires significant reduction of combined sewer overflows at Spencer Avenue, which is adjacent to the splash pad, and at Bond Avenue, which is just across the street from the wastewater facility. As with our other CSO projects, this typically means constructing something to capture and temporarily hold additional flow during wet weather events. Marion Utilities is working with Commonwealth Engineering to determine the best and most cost effective way to meet the requirements of this federal mandate. And generically speaking, adding storage capacity at our treatment facility thus far seems to make the most sense. That said, there are a couple caveats to note. There's no location in the vicinity of Spencer Avenue to build a tank large enough to meet the parameters that have been assigned to us to capture that flow there. And secondly, the original portion of the south treatment plant facility is 88 years old. That's approximately 40 years past its useful life. And unfortunately, our options for ongoing repairs are becoming more and more limited. So what does this mean and what will it cost? Commonwealth is currently evaluating project designs based on the following criteria. They're looking at adaptability, they're looking at technologies that have been solidly proven and deemed acceptable by our local regulatory agencies like IDEM. They're looking at things that are operator and maintenance friendly, energy efficient, will fit within the size constraints that we have, and will be capable of providing the treatment that we're required to do. From this, Commonwealth is assembling a proposal that will include something like a total cost of ownership analysis for the options that they feel will most effectively meet our mandated long-term control plan requirements. An early and hopefully inflated cost estimate, emphasize hopefully inflated cost estimate, is between 100 million and 200 million dollars. As we move forward, we are also considering all opportunities for project phasing, and funding. My hope is to have more information to share with you, hopefully toward the end of August or the beginning of September, so that we can collaborate to make the best decision possible for the people of Marion. And with that, that's all I have to report, but I'm happy to answer any questions if anyone has that.

Yeah, that's a lot there. You touched on the IURC. They still haven't made their determination on the rate thing that

No, no. It would be ahead of schedule for us to have heard from them at this point. Okay.

Yeah. What's it takes along, just out of curiosity?

For the life of me, I don't know. Okay. There's a lot of back and forth with attorneys, and it's actually, when they say rate case, it is a case. So it's the IURC versus the OUCC. So one group is looking out for the utility. The other group is looking out for the consumers to try and make sure that everything is being handled fairly. Just like any other court situation, it's just a time-consuming process.

Okay. And you guys have any questions? Thank you. I appreciate you doing what you said and giving us an update on everything.

Yep, we'll be back again soon. Thank you.

Thank you. Okay, the last thing will be the utility board appointment. We have three candidates that put in for it under the deadline. Each candidate, you guys have got their resumes, looked over their resumes. Each candidate will have three minutes to get up here and sell yourself, talk about yourself, however you want to put it. And then at that point... we'll we'll vote individually we'll go around and just we'll you'll just say the name that that you want to appoint to the board and if we um because we got what six of us here tonight so something we got to have four um if there's a tie we'll just do it again and you know we'll just be here till tomorrow keep doing it again till somebody but um So anyway, we'll go with that. Troy Phillips, if you'd like to come up to the mic and you'll have three minutes and go from there. Make sure your mic's on too, Troy.

Good evening, President and members of the Common Council. Thank you for allowing me to speak tonight. My name is Troy Phillips, and I appreciate your consideration for appointment to the Maryland Utilities Service Board. Service has always been important to me. I served 23 years in the United States Air Force, 10 years active duty, and 13 years in the Reserves. Many years of volunteering at the Marion Power Club, later Marion High School, and I currently help coach at Tiger Marshall Arts Fitness Academy. I understand the responsibility that comes with providing reliable utility services and being accountable as I worked at Marion Utilities for 20 years. I worked in sewer maintenance, water maintenance, and was a solid waste supervisor before retiring June 30th of this year. That background helps me better understand the issues that come before the board. I understand many of the operational and financial challenges that our utility faces. I understand the board's role is governing and accountability and not day-to-day management. I believe my military service, my experience with Marine Utilities, and my commitment to serve our community have prepared me well for this responsibility. I bring honesty, integrity, accountability, and sound judgment. I will work with fellow board members to promote financial responsibility and do what is best for the Marin Utilities and the people that we serve. If appointed, I will work hard to earn your trust and the trust of the people of Marion by serving with integrity, fairness and respect. Thank you for your time and your cooperation.

Thank you, I appreciate that Troy. Does anybody have any questions? You served for 20 years on the utility? Yes, sir. Okay. Thank you for your service, by the way, in the military. There's no other questions. Thank you. Oh, wait, hang on, hang on. Yes, sir.

I have a question for you. One of the questions here talks about being a voter and things like that. You didn't vote in the last election. Why do you think being, you want to be appointed to this position, but haven't done your civic duties in that. What's your reasoning behind that?

There's really not a reasoning. I neglected, from my fault, I neglected to do my proactive breeding on the, candidates, and I just didn't feel right voting for just not knowing on the candidates who the candidates were. So it's all on me, and believe me, I will, that will not happen again.

Yeah, and again, as a veteran myself, you know, we fight very hard for this. And if you served 23 years, you understand that. I do, sir. But not doing your civilian duty in that, that's a little bit concerning because you can't, you fought for that. Yes, sir. You want to be appointed to this position, but you didn't do your civilian duty that you fought for.

Yes, sir, I understand that. And that's totally on me. And like I said, it will not happen again.

Thank you, sir. Appreciate it. Our next candidate is, well, Cindy Cunningham is what I've always known her as, but I guess that's not necessarily true now. Is it Lehman? Is that how it's pronounced? Oh, it's Lemming. Okay. Welcome.

All right, got it? My name is Cindy Lemming, and thank you for allowing me the opportunity to speak tonight. I'm asking for your consideration to serve on the Marion Utilities Service Board because I believe I can bring experience, knowledge, and a genuine commitment to serving our community. I retired from Marion Utilities in 2019 after 30 years of service. During my career, I worked in customer service and later as the administrative support specialist for utility engineer Pat Pinkerton, serving the engineering, sewer maintenance, and solid waste departments. Those years gave me a unique understanding of how the utility operates, not just from an office perspective, but how decisions affect employees, and more importantly, the citizens they serve. I've also demonstrated my commitment to Marion through community service. I've served on the Board of Public Works and Safety, the Planning Commission, The City of Marion Team Council is an adult leadership mentor. The Minority Coalition for the Smoking Sensation. I'm currently serving on the planning committee for the 3rd and 4th Street, and I volunteer delivering Meals on Wheels. I want to give back to the utility that gave me a rewarding career, and to the community I've called home my entire life. I understand the importance of being a good steward of public resources. I know the value of providing reliable utility services while being responsible with rate payer dollars. I believe my institutional knowledge combined with my willingness to listen, ask thoughtful questions, and work jointly would make me an effective member of the service board. because I already understand Marion Utilities from the inside. I know its history, its mission and how important it is to provide quality service while protecting the interests of our customers. I also bring years of public board experience and a proven record of serving Marion. I won't come in with an agenda. I will come in prepared to listen, learn, ask good questions and make decisions that are best interest to the utility and the people it serves. As a retiree, I have the time, the availability, and the commitment to fully dedicate myself to the responsibilities of this position. I respectfully ask for your support and your vote. It would truly be an honor to continue serving the citizens of Marion in this new capacity. I'd be happy to answer any questions.

Thank you, Sandy. Do we have any questions, guys? Nope, okay. Thank you, Cindy. Thank you. And our last candidate is Justin Fall.

Ready? Thank you, Mr. President and Council. I took the liberty of bringing my own teleprompter today so that I didn't get off task like you see on TV. My name is Justin Fall. I live in the 3800 block of Starkey Drive and receive all Marion utility services. I want to begin by saying that you cannot go anywhere in the state of Indiana without someone saying that Marion has the best water in the state once someone finds out that you're from here. That is certainly a credit to the board, the employees, past and present. I'm a graduate of Huntington University where I received a bachelor's degree and obtained a master's degree from Capella University. I'm a retired police officer of 21 years serving the citizens of Marion on that police department. I'm now the police investigator for the Grant County Prosecutor's Office, still serving the community that I love and live in. Besides my master's degree, which, ironically enough, is in public service leadership, I have been to the two most prominent police leadership schools in the country. I'm a graduate of the Police Executive Leadership Academy, which, by the way, Deputy Chief Husky was one of the founding members of that school. Thank you for sending me to that. And I'm a graduate of the FBI National Academy, which is one of the premier leadership academies in the whole country from the Department of Justice. Besides my master's degree. I believe that I possess and have a fresh pair of eyes on the board and I can bring leadership skill set to it, the company, and try to move it in a positive direction, keep it moving in a positive direction. Again, I think the employees and the board that you currently have has done a great job or we wouldn't be talked about the way that we're talked about. I believe that transparency and having a balanced budget is critical in any company, just as in your own household. If given the opportunity to serve as your appointment, I vow to study the budget, understand it completely, Be good steward of ratepayers' money to maintain the highest standards of quality of our water that we have and to continue to make employees a priority. I appreciate your time today and your consideration for this appointment.

Do we have any questions for Justin? None? Jeff, anybody?

Justin, thanks for speaking today. A quick question. You've served on, obviously, other boards and things like that. You do a lot in the community. You're always involved. Where does this priority stand for you if appointed to this position? Because we are in a critical spot with the board right now. Obviously, we had a rate increase earlier. Where is this going to be in that for you? And what do you see your prior board experience giving you an advantage over the other candidates for?

So I currently serve on the 911 board as your appointment. I have not missed a meeting since that appointment. That's in the afternoons at like 1 o'clock in the afternoon on a quarterly basis. That's the only board that I currently serve on. I am an elected delegate for the GOP. That since has passed. That's pretty much my responsibility is over with on that with Mr. Kane. Besides that, I'll make myself available. This is high on my priority or I wouldn't submit for the job. So I will make my schedule available once I find out meeting dates and how that stuff works. As far as prior experience, I've been on the Youth Sports Oak Hill Youth Baseball League, part of building that new facility out there, obtaining new equipment, that type of stuff. I believe that I'd be a fresh pair of eyes on that. And and bring some leadership to that to that board continue with their leadership that they already have Perfect.

Thank you Thank You Justin appreciate it Okay Do we, are you guys ready to vote? Any, no discussion? Okay. You want to just do roll call and at roll call, state who you want on the board.

Kane.

Fall.

Reyes.

Fall.

Runner.

Justin Fall.

Marshall.

Lemming. Cindy Lemming. Cynthia.

Whitten.

Justin Fall.

Calgill.

Justin Fall.

Justin, welcome to the board.

Mr. President, I would like to thank the other two people too for coming here and bringing their name forward, and I certainly appreciate that.

I feel the same way. That's what I was just getting ready to say to you, Council Member Brenner. Well said. Okay. I don't have any announcements for tonight. Does any of the other councilmen have any announcements? Our city cleanups have been doing very well, so those will be wrapping up here soon. If not, I will take a motion to adjourn. I so move. Second. Okay, we have a motion by Councilman Cain, second by Councilman Brenner. Roll call.

Cain?

Aye.

Reyes?

Aye.

Brenner?

Aye.

Marshall?

Aye.

Whitten?

Yes.

Calgill?

Aye. We are adjourned.