Granger Subdistrict approves settlement with Mishawaka on eastern water and sewer territories

The Granger Subdistrict board voted to approve an intergovernmental settlement package with the City of Mishawaka that defines who may provide water and sewer service on the eastern side of St. Joseph County, subject to the county and Mishawaka finalizing matching agreements.

The board approved the settlement package, which includes two territorial maps (one for water and one for sewer) and a separate document describing terms for a shared sewer area dubbed “Granger West.” The settlement would: recognize Mishawaka’s proposed exclusive water territory over most of the four-mile radius the city claimed; establish a red-hatched area on the sewer map as Mishawaka’s exclusive sewer territory; and set rules for a blue-hatched shared area (Granger West) that would give Mishawaka a prioritized, nonexclusive right to provide sewer while preserving the district’s ability to partner with other providers such as the City of South Bend.

Jeremy Fetty, shared legal counsel, said Granger Water’s signature on the final settlement was uncertain but not likely to be required for commission approval. “I do not think that they are a critical party to the signing the settlement agreement,” Fetty said, and added that the Office of Utility Consumer Counselor (OUCC) has seen the agreement and indicated it would likely sign off or not object if the district, county and city come to terms.

Board members were told the Indiana Utility Regulatory Commission (IURC) has granted a final extension that expires in about seven to 10 days, creating urgency for completing the settlement. The presenter asked that any motion to approve be contingent on parallel approvals from the county and the city; the board’s motion carried with a voice vote.

The presenter also discussed governance and operations implications: under current bylaws, a municipal partner holds a municipal seat on the district board. The settlement would make Mishawaka an additional municipal actor, affecting rotation of municipal seats; the presenter recommended the board consider whether to change rotation rules or create permanent municipal seats to maintain consistent municipal representation.

Mishawaka offered sewer capacity to the district that the presenter described in rough terms as just under half a million gallons; the meeting referenced about 498,000 gallons of capacity that could be used to support economic development in the corridor. Board members and county representatives said the capacity could be filled through partnerships and county-led development opportunities.

After questions about parties to the MOU and potential objections from Granger Water, the board approved the intergovernmental agreement contingent on the county and city reaching the same terms. The motion was seconded and approved by voice vote.

Next steps recorded at the meeting included placing a follow-up agenda item on the district’s discharge history and future options, and further planning to evaluate how to use any available sewer capacity once it becomes physically available (the presenter estimated pipe availability could be one to two years out).