Zionsville council delays vote on wastewater territory transfer, seeks legal documents

The Zionsville Town Council on Feb. 2 continued consideration of Ordinance 2025-27, a letter agreement that would clear the way for Citizens Wastewater of Westfield LLC (through Citizens Energy Group) to be the retail wastewater service provider for a designated certified territory (CTA) pending Indiana Utility Regulatory Commission (IURC) approval. After presentations from outside counsel and lengthy questions from councilors, leaders asked staff for additional documents and legal analysis before taking a final vote.

Attorney Steve Crony of Ice Miller, speaking for Citizens, told the council that “that ordinance authorizes the town's execution of a letter agreement between the town of Zionsville and Citizens Wastewater of Westfield LLC” and said Citizens is prepared to serve the area and coordinate needed infrastructure and billing efficiencies. Ed Bukovac of Citizens echoed that the company would partner with town leadership and noted Citizens already provides water and gas service in parts of the area.

Mayor Stair described three options: leave Hamilton Southeastern Utilities (HSE) as the CTA holder and HSE remain wholesaler, invite TRICO to serve (which could be a lengthy IURC process), or have the town provide service itself (a costly, long-term undertaking). He said Citizens appears “best situated to serve this area” but stressed the council must decide.

Hamilton Southeastern's outside counsel, Mike Griffiths, responded that a signed 2009 settlement agreement and subsequent IURC orders protect HSE's right to serve the area and that HSE has done preparatory work (easements, appraisals, engineering). Griffiths said: “They consented to HSE having the right to serve this area,” arguing the settlement and IURC orders would govern any exclusivity beyond the 12-year CTA language.

Councilors pressed two legal points: (1) whether the 12-year exclusivity period referenced in the CTA statute had expired or been reset by later IURC orders (2011 or 2014), and (2) what practical impact approval or denial would have on delivering service to approved developments such as Bradley Ridge and on service to the Executive Airport. Town counsel and consultants said case law is unclear and that litigating the issue might be the only way to get a definitive answer.

Councilors also raised environmental and capacity questions: Citizens and Westfield representatives said treated effluent would be governed by Indiana Department of Environmental Management permits and that the Westfield treatment plant can be upgraded when necessary, with capacity charges and developer contributions covering expansions.

After debate the council voted to continue Ordinance 2025-27 to a future meeting and requested that Citizens and HSE provide the 2009 settlement agreement and that town counsel analyze which IURC order controls the exclusivity clock. The motion to continue passed 6-0. The council signaled it expects the additional documents and legal advice to be supplied ahead of the next substantive discussion.

What’s next: Councilors asked staff to circulate the 2009 settlement agreement and for legal guidance on whether the 2011 or 2014 IURC order controls the 12-year exclusivity period. The continued ordinance will return for further review after that documentation is considered.