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Intervenor Chesterton Exhibit 2 INDIANA UTILITY REGULATORY COMMISSION Exi1iib Rrs IURC Caus;~~/~I~~

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Intervenor Chesterton Exhibit 2 INDIANA UTILITY REGULATORY COMMISSION Exi1iib Rrs IURC Caus;~~/~I~~ FILED February 11, 2020 Q ffIC T~ified Direct Testimony of Sharon Darnell · · ·· ,.__, .t · Intervenor Chesterton Exhibit 2 INDIANA UTILITY REGULATORY COMMISSION EXi1iIB rrs IURC Caus;~~/~i~~ STATE OF INDIANA INDIANA UTILITY REGULATORY COMMISSl~RC . .-ek.J-kM IN THE MATTER OF THE PETITION OF THE ) INTERVE OR'S CITY OF VALPARAISO INDIANA AND )EXHIBITNO.~,-l-----~~ v ALP ARAISO CITY 'UTILITIES ' FOR )·~DA~:T¥E./ ~~-'---;;;RE:;:;'.PO~Rt=riTE~R o- APPROVAL OF A REGULATORY ORDINANCE ) CAUSE NO. 45306 ESTABLISHING A SERVICE TERRITORY FOR ) THE CITY'S MUNICIPAL SEWER SYSTEM ) PURSUANT TO IND. CODE CH. 8-1.5-6 ) VERIFIED DIRECT TESTIMONY OF SHARON DARNELL I. INTRODUCTION 1 Q. Please state your name and occupation. 2 A. My name is Sharon Darnell. I am semi-retired, working on average one day a week 3 in the office ofR.V. Sutton Excavating, located in Chesterton, Indiana. Formerly, I 4 served as full-time office manager of the company. 5 6 Q. What is your position with the Town of Chesterton ("Town" or "Chesterton")? 7 A. I am the current President of the Chesterton Town Council ("Council"). I served on 8 the Council for sixteen (16) years between 2000 and 2016. Prior to serving on the 9 Council, I was a member of the Town of Chesterton Utility Service Board ("USB") 10 from 1998 to 1999. In my prior four (4) terms with the Council, I served in a variety 11 of positions, including Council President, liaison to the USB, and member of the 12 Chesterton Redevelopment Commission. In November of 2019, I was re-elected to 13 the Council, and took office on January 1, 2020, at which time I was selected by 14 the Council to serve as its President. Verified Direct Testimony of Sharon Darnell Intervenor Chesterton Exhibit 2 IURC Cause No. 45306 Page 2 of 16 1 Q. What are your responsibilities as a member of the Council? 2 A. As President of the Council, I am the Town executive. I attend and lead bi-monthly 3 meetings of the Council. The Council creates and approves annual budgets, along 4 with all ordinances of the Town. In short, the Council establishes the goals and 5 objectives of the Town and implements plans and funding to achieve them. The 6 Council is responsible for making ultimate decisions regarding matters of municipal 7 planning and development and makes all decisions regarding annexation and 8 growth of the Town. In addition, I serve as the Council's representative on the 9 Chesterton Advisory Plan Commission, which provides advisory recommendations 10 to the Council regarding such matters as the Chesterton Comprehensive Plan, which 11 includes such matters as the future use and zoning maps. I also serve as liaison to 12 the USB. In that capacity, I attend monthly and special meetings of the USB, review 13 and comment on the sewer utility's budget and capital expenditures, and provide 14 input on sewer utility planning decisions, including the provision of sewer service 15 to outside users. 16 17 Q. Have you previously testified before the Indiana Utility Regulatory 18 Commission ("Commission")? 19 A. Yes. 20 21 Q. Have you reviewed the Petition that initiated this Cause? 22 A. Yes, I have. The City of Valparaiso ("Valparaiso") has petitioned to have the 23 Commission approve a regulated sewer territory ordinance, which Valparaiso Verified Direct Testimony of Sharon Darnell Intervenor Chesterton Exhibit 2 IURC Cause No. 45306 Page 3 of 16 1 adopted in October of 2019 ("Valparaiso Ordinance"). The Valparaiso Ordinance 2 would establish exclusive rights for the provision of sewer service for Valparaiso 3 in certain areas upwards of ten (10) miles outside of its municipal boundaries and 4 would create penalties for other utility providers who attempt to provide sewer 5 service in the regulated territory. 6 7 Q. What is the purpose of your testimony in this proceeding? 8 A. My testimony describes Chesterton's interest in the areas generally north of County 9 Road 700 that are the subject of the Valparaiso Ordinance and opposes the relief 10 requested by Valparaiso for areas north of County Road 700. 11 While I was on the Council in 2014, Chesterton adopted its own sewer regulated 12 territory ordinance, Ordinance 2014-11 ("Chesterton Ordinance"), attached as 13 Attachment SD-1, which created a regulated sewer territory for areas outside of 14 Chesterton's municipal boundaries. Chesterton did not seek Commission approval 15 of the Chesterton Ordinance at the time as it envisioned using the Chesterton 16 Ordinance as a tool to engage in discussions with other area sewer utilities. The 17 Town had been involved in a dispute with the Damon Run Conservancy District 18 ("Damon Run") over the provision of sewer service to the proposed Porter Regional 19 Hospital ("Hospital"), which at the time had not yet been constructed. 20 The Hospital is located at the northwest comer of State Road 49 and US Highway 21 6. The dispute with Damon Run ultimately made its way to the Commission under 22 Cause No. 43966. In that matter, Chesterton considered the Hospital, along with the 23 potential service areas adjacent to the Hospital to be within Chesterton's potential Verified Direct Testimony of Sharon Darnell Intervenor Chesterton Exhibit 2 IURC Cause No. 45306 Page 4 of 16 1 growth and sewer service areas. Chesterton still considers the Hospital to be a 2 potential customer along with the owners of property adjacent to the Hospital. After 3 the dispute with Damon Run, Chesterton adopted the Chesterton Ordinance as a 4 protective measure to express its interest in serving areas outside of its municipal 5 boundaries. Further, Chesterton, in conjunction with Porter County, spent 6 significant resources to extend sewer lines south of the Indiana Toll Road in 2013- 7 14 to be in a position of providing sewer service to areas adjacent to the Hospital. 8 Chesterton's investment is at risk if the Commission approves the Valparaiso 9 Ordinance. 10 My testimony provides historical background into the interaction between 11 Valparaiso and Chesterton as to the overlapping area contained in both ordinances 12 ("Contested Service Area"). I also provide information about the plans for future 13 sewer service in the Contested Service Area that Chesterton developed m 14 conjunction with Porter County and the steps taken to implement those plans. 15 16 II. HISTORICAL BACKGROUND 17 Q. Please describe Chesterton's historical interaction with Valparaiso concerning 18 general municipal growth issues. 19 A. Historically, Chesterton has long considered areas south of its municipal boundaries 20 for possible future growth. County Road 700 North marks the southern border of 21 the boundaries of the Duneland School Corporation, which is primarily based in 22 Chesterton, and provides a logical dividing line between Chesterton and Valparaiso. 23 The distance between Chesterton's southern-most boundary and County Road 700 Verified Direct Testimony of Sharon Darnell Intervenor Chesterton Exhibit 2 IURC Cause No. 45306 Page 5 of16 1 North is approximately two (2) miles, and the distance from Valparaiso's northern- 2 most boundary to County Road 700 North is about two (2) miles. Moreover, 3 Valparaiso's official planning documents that are part of its Comprehensive Plan 4 likewise indicate Valparaiso shares a similar vision. Attached as Attachment SD-2 5 is Valparaiso's "Wastewater Service Area Designation Map" that is included as 6 Figure 16 of Valparaiso's currently in force Comprehensive Plan. Attachment SD- 7 2 reflects a northern planning boundary for Valparaiso of County Road 700 North. 8 I am aware that Valparaiso cites its 201 7 Master Sewer Plan as justification for 9 serving the Contested Service Area, but that plan is not in harmony with 10 Valparaiso's official planning documents authorized by Indiana Code. Further, 11 Valparaiso's 2017 Master Sewer Plan did not include any property north of US 12 Highway 6 and was performed clearly to facilitate the Valparaiso's current attempt 13 to land grab. Finally, to extend its municipal sewer north, Valparaiso would have 14 to contend with the naturally hilly terrain north of its municipal limits and as 15 described by Chesterton witness Mr. DeBruler, that topography favors service by 16 Chesterton. Accordingly, County Road 700 North is approximately equidistant 17 between Chesterton and Valparaiso, marks the boundary of the school corporations, 18 is consistent with Valparaiso's official planning documents and therefore makes a 19 logical dividing line between Chesterton and Valparaiso. 20 21 Q. Has Chesterton taken actions based on the circumstances you just identified? 22 A. Yes. Chesterton approached Porter County in late 2011 to discuss the possibility of 23 a "regional sewer" to be developed in partnership between Chesterton and Porter Verified Direct Testimony of Sharon Darnell Intervenor Chesterton Exhibit 2 IURC Cause No. 45306 Page 6 of 16 County. Chesterton had recently approved two voluntary petitions annexing 2 property immediately south of the Indiana Toll Road and straddling each side of 3 State Road 49 and was poised to extend sewer service south of the Indiana Toll 4 Road. The plan for a State Road 49 Utility Corridor was presented to the Porter 5 County Council and Commissioners at several public hearings in late 2011 and 6 early 2012, which included a joint meeting of the Commissioners and Council held 7 on November 2, 2011, a meeting of the Commissioners held on February 21, 2012, 8 and a public hearing of the Council on April 3, 2012. Excerpts of those meeting 9 minutes are attached to my testimony as Attachments SD-3, SD-4, and SD-5, respectively.
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