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Thursday, May 28, 2009
Ind. Decisions - "Judge holds city in contempt, must return fees"
A story in the Gary Post Tribune today, by Jon Seidel, reports:
GARY -- A Lake County special judge is holding the city of Gary in contempt for collecting an "illegal garbage pick-up fee" from its residents and ordered officials to begin refunding the money by July 9.Meanwhile, members of Gary's City Council are debating legislation that could legitimize the fee retroactively to January.
A vote on that ordinance could be taken as soon as Tuesday night, but council finance chairwoman Mary Brown, D-3rd District, said that's not likely.
"I don't think we'll be voting next week," Brown said.
It's been seven months since the Gary Sanitary District privatized the city's garbage collection by approving a no-bid contract with Allied Waste. * * *
Miller Citizens Corp. sued GSD, complaining that the contract should have been bid out and that only the City Council can approve a fee.
Judge Thomas Webber ruled in MCC's favor in February, voiding Allied's contract. The Sanitary District continued to bill its customers for the trash fee anyway, arguing that the fee wasn't voided along with the contract.
Webber clarified his ruling in March, explaining that as long as the council passes an ordinance approving the fee, it will stand.
Such an ordinance was introduced to the council in the fall, but it was withdrawn. A similar piece of legislation was introduced to the council on May 19, days before a follow-up hearing in Webber's court.
In his latest ruling, issued Tuesday, Webber said he didn't realize the fee was being collected without council approval until a motion to show cause was filed by MCC.
"The city knew or should have known that attempting to collect an unauthorized fee is an illegal act and the city should be held in contempt for the wrongful act," Webber wrote.
All money collected on the trash fee should be refunded or credited, Webber wrote, and the city must show compliance in time for a hearing set for July 9. * * *
The day of Webber's ruling, the council's finance committee met to discuss an ordinance that would retroactively authorize the $12 trash fee.
It was a standing-room-only meeting, as several residents wearing "Vote No" stickers decided to attend.
City attorney Carl Jones argued during the meeting that the council must pass an ordinance before the Sanitary District can enter into a contract to replace the one with Allied.
Others, including Councilwoman Marilyn Krusas, D-1st, said the contract should be approved first. "I want to see what it's going to cost us," Krusas said.
Posted by Marcia Oddi on May 28, 2009 02:24 PM
Posted to Ind. Trial Ct. Decisions