(a) The board of directors for utilities shall
have, within and outside such city as provided in this chapter, the
exclusive government, management, regulation, and control of all
public utilities consisting of any waterworks, gasworks, electric light
works, heating and power plants of any kind or character, telephone
and other systems of communication, and local transportation systems
of any kind operated upon, above, or below any street or territory
within the city, or outside the city within the limits authorized by law,
and all property held by and relating or belonging thereto. Any of
which public utilities any such city may acquire or construct for the
service of the public as consumers, users, or patrons, and including any
public utility and all property which such city may hold as trustee for
the benefit of the inhabitants of such city. Such board of directors may
furnish and sell service and products of and make all necessary
construction, reconstruction, repairs, renewals, enlargements,
extensions, or additions to any such plant or property of any such
public utility so owned or at any time so held in trust, which in the
judgment of the board of directors is desirable or necessary for the
proper conduct of such business and the proper serving of the
inhabitants of the city and adjacent, contiguous, or suburban
communities or territory within the county wherein such city is situated
and served, or reasonably capable of being served, in any manner by or
with respect to any such utility.
(b) The board of directors may lease any such utility property for a
term not exceeding thirty-five (35) years to any person, partnership,
limited liability company, or corporation, and without the approval of
the commission, such lease to be upon such terms and conditions as the
board may deem to be to the best interest of such city and the city's
inhabitants. No such lease shall be valid or effective until it has been
approved by the board of trustees and duly ratified and approved by an
ordinance of the city. The board and the city-county legislative body
must each vote such approval by a two-thirds (2/3) vote of their total
membership. In any such lease an option may be given to such lessee
to extend the same for a period not to exceed ten (10) additional years.
(c) In connection with the duties devolving upon such board of
directors in the government, management, regulation, control, and
operation of all such utilities, it may act as follows:
(1) To condemn, appropriate, lease, rent, purchase, and hold any
real estate, rights-of-way, materials, or personal property within
such city or within five (5) miles of the corporate limits of the city
needed for the proper giving of service by any such utility to the
inhabitants of the city and the community contiguous thereto and
served from any such utility plant.
(2) To design, order, contract for, and construct any and all
necessary or desirable extensions of or additions to any utility
plant and property owned or so held in trust by the city, and to
enter into all necessary contracts with reference thereto, and with
reference to the purchase of materials and supplies needed for the
operation of any such plant or plants, in accordance with such
rules as may be adopted by such board of directors, and without
the necessity of advertising for bids, or without such other
restrictions as are imposed by any law of Indiana with reference
to the letting of contracts for work, material, or supplies by
municipal bodies or other governmental agencies.
(3) To sell any products or byproducts, and enter into executory
contracts for the sale, to anyone whatsoever and without any
restriction concerning the taking of bids therefor or otherwise.
(4) To operate any such plant or plants, to receive and collect all
money due on account of such operation or otherwise relating to
such plant or plants or business and in connection therewith to
employ such managers, superintendents, assistant managers,
assistant superintendents, engineers, attorneys, auditors, clerks,
foremen, and other employees necessary for the proper carrying
on and operation of any such utility plant or plants and the
business and to fix the compensation of all such employees. No
contract of employment shall be made for a longer fixed period
than four (4) years. However, a contract of employment may be
extended or renewed from time to time thereafter. The directors
may elect from their membership an executive committee
consisting of not more than three (3), who may be assigned to the
supervision of any one (1) or more of such utilities and who shall,
in the intervals between the meetings of the directors, exercise all
the powers and duties of the directors, all of their acts to be
subject, however, to the approval of the directors, and to fix any
such additional compensation to the members of the executive
committee, in addition to their salaries as directors, as shall be
reasonable. The additional compensation shall be fixed by a
resolution of the directors entered of record at the time of the
appointment of the executive committee. Whenever any such city
shall acquire, hold, own, or so hold in trust for the city's
inhabitants more than one (1) such public utility and the property
of the city, such board of directors shall have power to select
additional executive committees from their membership in the
same manner and with the same power as the executive
committee first selected, which committee may be assigned by
such board to any such utilities deemed necessary. In the selection
of employees, other than managers, superintendents, assistant
managers, assistant superintendents, engineers, attorneys, and
auditors, the board of directors shall provide for a merit system of
employment to be determined by competitive examination, except
as to unskilled and common laborers, in which political, religious,
or other personal affiliations may not be considered. In selecting
managers the directors shall consider character, training, and
general expert and executive fitness and experience for the
position in the particular utility to which such manager is to be
assigned, as the necessary requirements for appointment.
(5) To rent such offices and other real estate and property for the
conduct of the business of such utility or utilities as may be
deemed needful and enter into contracts with reference to the
rental and use of the offices, real estate, and property. No such
contract shall be made for a longer period than ten (10) years.
(6) In the event there be an open mortgage upon any utility
property acquired by any such city, either in absolute ownership
or in trust, by the terms of which mortgage additional bonds may
be taken down from the trustee under such mortgage to meet in
whole or in part the cost of extensions and improvements to the
mortgaged property, the board of directors may perform all things
necessary in order to secure the benefit of such mortgage
provisions and to enable the escrow bonds held by the trustee
under any such mortgage to be taken down and sold in order to
defray the cost of any extensions and betterments to such property
and to sell any such bonds so taken down for the purpose of
assisting in defraying the costs of any such extensions or
betterments to such property.
(7) To take over, adopt, and assume the performance of the
provisions of any lease under which any utility property may be
held at the time of the acquisition of any utility by any such city,
either in absolute ownership or in trust and to take any and all
steps necessary to perform and fulfill the terms of any such lease,
and to obtain and preserve the benefits from the lease. In the
event there be any outstanding open mortgage upon the property
covered by such lease so taken over under the provisions of which
bonds may be withdrawn from the trustee under such mortgage
for the purpose of paying all or part of the cost of additions to the
property covered by such mortgage, to do all things necessary in
order to secure the benefit of such mortgage provisions and to
enable the escrow bonds held by the trustee under any such
mortgage to be taken down and sold in order to defray the cost of
any extensions and betterments to such leased property and to sell
any such bonds so taken down for the purpose of assisting in
defraying the costs of any such extensions or betterments to such
leased property.
(8) To preserve the corporate organization of any company
engaged in the mining of coal, or any other commercial or
manufacturing business, the stock of which may be owned by any
utility whose property and assets may be taken over by any such
city, either in absolute ownership or in trust and in connection
with the taking of the property by the city to cause the stock of
any such company to be issued in the name of the board of
directors for utilities except as to qualifying shares for directors
and to cause such qualifying shares to be issued in the names of
such individuals as the board of directors may name and to vote
any such stock for the election of directors, who may be members
of such board of trustees for utilities. However, no member of
such board of directors shall receive any compensation, directly
or indirectly, as a director, officer, or employee of any such
company, other than the compensation provided in this chapter as
a member of the board of directors for utilities. Through the
control thus given of any company, the board of directors for
utilities shall be authorized to do all things necessary to cause any
such coal mining company or other company efficiently to carry
on its operations and to conduct its business in the same manner
as if its stocks were owned by private individuals.
(9) To adopt rules for service and rates for service in connection
with the furnishing of any public utility service by the city to
consumers, users, or patrons. However, any such rules and rates
for service shall be in effect only after the rules and rates have
been filed with and approved by the commission and such
approval shall be granted by the commission only after notice of
hearing and hearing as provided by IC 8-1-1 and IC 8-1-2, and
only after determining compliance of the rates of service with IC 8-1.5-3-8 and IC 8-1.5-3-10 and only after determining
compliance of the rules of service with IC 8-1-1 and IC 8-1-2,
along with the rules and standards of service for municipal
utilities of Indiana approved by the commission.
(10) To take over all contracts and rights of any kind or character,
and to fulfill and perform all obligations relating to the property
and business of any utility company whose property may be taken
over by any such city, either in absolute ownership or in trust.
(11) To make all rules and bylaws customary in private
corporations for their own conduct of business and necessary for
the proper government and supervision of the utilities under their
control. Any such rules and bylaws shall be subject to the
approval of the board of trustees.
[Pre-Local Government Recodification Citation:
19-3-24-3.]
As added by Acts 1981, P.L.11, SEC.43. Amended by
P.L.23-1988, SEC.42; P.L.3-1989, SEC.57; P.L.8-1993,
SEC.122.