Fairfield Ledger
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Neighbors Growing Together | Oct 25, 2014

Judge orders Mount Union to mediate with RUSS

By TRISHA PHELPS | Sep 18, 2013

MOUNT PLEASANT (GTNS) – Progress is being made — slowly — on the dispute between the city of Mount Union and the Regional Utility Service Systems.

The city of Mount Union and RUSS had a hearing on the current litigation Monday at the Henry County Courthouse, ending in mediation. Judge Mary Ann Brown ruled it would be in the best interest of both parties to try to negotiate a settlement.

“It was basically brought to Mount Union’s attention that it would be in its best interest to come to us and have mediation,” said RUSS executive director Bruce Hudson about Monday’s hearing.

“We agreed to arbitration, but RUSS has decided not to pull our lawsuit off the table.”

Mount Union mayor John Marek also was pleased with the hearing result.

“The good news for the city is we went into arbitration [Monday],” said Marek. “We went into arbitration because the judge told us if she would have ruled that day, she would have ruled in favor of the city that RUSS cannot put in shut-off valves because there are no individual contracts between the individuals and RUSS.

“On the other hand,” Marek continued, “she would have ruled in favor of RUSS in the city was owing them the money. So RUSS would have won the case that the city owed them the money, but would not have been able to shut people off that weren’t paying. In other words, there is no enforcement mechanism in place for the 28E agreement.”

Marek noted the city is looking into ways to pay RUSS for the money owed, but is unsure of where to find the money.

“The city is now going to go the state to work with the Iowa League of Cities and the auditor’s office to find funding for this to work,” Marek said. “For this to work, we have to work something out to find where we can find a middle ground.

“The problem is the city is already maxed out on property taxes,” Marek continued. “I can’t raise taxes to pay for it. We are going to do our due diligence. We are going to show that the city of Mount Union has gone out to these agencies and sat down with them and they are going to be the ones to tell us this is where we can get money or there is no way to do it.”

Although Monday’s hearing is not the end of the dispute between Mount Union and RUSS, Hudson is enthusiastic about the progress being made.

“I think RUSS is optimistic with the direction we are going,” Hudson said. “It is in the best interest of RUSS and the city of Mount Union to get this thing resolved and get it behind us.”

Hudson said he would like to see RUSS and the city of Mount Union become partners and provide a much-needed service, free of conflict, to the people of Mount Union.

“We can provide what Mount Union asked for and that is sewer service,” said Hudson. “We have given them a functioning, viable system that works very well that RUSS does believe is affordable. It gives the city opportunity.”

 

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