WARSAW — The monthly public meeting of the Lakeland Regional Sewer District board of trustees meeting held Wednesday, March 28, ended on a sour note, with public input from a couple possibly facing bankruptcy after their purchase of the Kuhn Lake Rental Property last October placed them in the center of an ongoing lawsuit between LRSD and other properties, including Pine Bay Resort.

Victoria Fox of Kuhn Lake Rental Property informed the board she has been charged $12,000 she is unable to pay due to the fact there are no renters during the winter months to pass the costs on to. The amount is due in part to mobile homes on the property considered to be sewage producing units by the district.

Jim Haney, board president, explained the billing ordinance is “not based on seasonality.” He went on to say only two properties have been defined as campgrounds by the district: Pic-a-Spot Campground and The Moorings.

The board’s lawyer, Andy Boxberger, informed the owners he was unable to comment on their plight due to the fact their property was part of ongoing litigation. Kuhn Lake Rental’s previous owner, Carrie Ziegler, did inform them of the case, and when asked if they were aware of the monthly bill before they purchased the property, Fox answered in the affirmative.

The Kuhn Lake Rental Property and Pine Bay Resort do meet the state’s definition of a campground, one of the reasons, said Fox, they bought the property; however, the lawsuit currently before the Indiana Utility Regulatory Commission will decide which definition takes precedence, the state’s or the sewer district’s.

Tearing out the mobile homes may enable Fox to get a reduced rate, but not a rate elimination, according to the board.

“Litigation is the crux of the matter,” said Haney.

Other LRSD board meeting items are as follows:

LRSD board member Paula Stinson announced her departure from the board due to personal reasons. The board will be considering candidates for her replacement.

The board approved a new professional services agreement with DLZ Engineering.

Electrical panels for 20 grinder pumps have been sent back to Crane Barnes for replacement. No properties are at risk of not having service; however, Treasurer Mike DeWald asked to be updated on the return time of replacements to ensure they are in stock before the vacation season.

The board hopes to have a plan for a tiered system of penalties for failure to connect in place by May. The board and Boxberger discussed the “balancing” act necessary for an effective system: fines must be high enough to incentivize property owner to connect, but not so high they are unrealistic, thus the property with a lien that raises the possibility it winds up in a commissioner’s sale with the district losing potential future revenue.

Boxberger reminded the board fine tuning this balancing act may also require “more active involvement” by the district, to ensure a lower price at the tax sale.

Currently, there are 160 properties in the district yet to acquire the permit necessary to connect.

Haney informed the board a property on the east side of SR 13, outside district boundaries, made a request to connect to the LRSD system. The property is part of “cluster of four or five homes,” said Haney, all of which would be required to connect if the boundary was expanded.

Board members agreed they should not pursue expansion before the district’s first fully operational season and with Lake Tippecanoe residents possibly organizing to utilize the LRSD sewage plant in the future.

Haney and Casey Erwin, DLZ engineer supervising the LRSD construction, were presented with an excellence award for the project by the Indiana chapter of the American Council of Engineering Companies at a ceremony in Indianapolis.

The next meeting of the LRSD board of trustees is scheduled for 6 p.m., April, 18, 2018, at the administrative building, 5002 E. 100 N., Warsaw.