Town of Cedar Lake
Utility Board
Regular Meeting Minutes

Pledge of Allegiance & Moment of Silence

The meeting was opened with the Pledge of Allegiance and a Moment of Silence.

Roll Call

Consent Agenda

1. Minutes: February 17, 2026; March 17, 2026; and April 21, 2026

Motion to approve the consent agenda made by Mr. Carnahan; seconded by Mr. Recupito.

Motion carries, 7–0.

New Business

1. Introduction to Sewer System Development Charge

Sue Haase reported on the proposed system development charge. The information was included in the packet. She noted this is not a charge applicable to current customers, who are already on the system. This is only for new customers coming on. She asked if anyone had any questions.

Mr. Carnahan asked about the different sizes of pipe and corresponding amounts. Mrs. Haase stated that is how it was set up originally. The system development charge came about prior to the Town owning water utilities and required an equivalency measurement based on water line size, not water meter size. She discussed the flow ratios and calculation of the system development charge, presenting the following proposed schedule:

Mr. Thiel asked Mrs. Haase to discuss the timeline moving forward. Mrs. Haase stated a recommendation would have to be made from the Utility Board to the Town Council. Town Council will schedule it for a first reading and public hearing. If approved, it will move on to a second reading. There is a waiting period until it goes into effect.

Mr. Recupito asked about the ERC and how it impacts commercial and industrial customers. Mrs. Haase stated it is based on the flow ratio of the water line they put in. For example, a two-inch water line would be a flow ratio of eight (8) times $5,537, equating to $44,297. A six-inch water line would be a flow ratio of 50 times $5,537, equating to $276,856. Mrs. Haase stated the reason they use water line size is because not all sewer customers are on the Town water system; hopefully all new developments will be. To be fair and equitable with what was previously presented, they kept the basis on the water line. Mr. Recupito asked if someone was on their own well whether the proposed $5,537 would apply. Mrs. Haase stated yes. Discussion continued on standard well connections. Mr. Carnahan confirmed this is a one-time fee charged at time of construction, not an ongoing charge.

Motion to give a favorable recommendation to the Town Council for the introduction of the sewer system development charge made by Mr. Recupito; seconded by Mr. Parker.

Motion carries, 7–0.

2. West Side Sanitary Sewer Interceptor Project 2 — Pay Request No. 5 — $494,633

Mr. Simstad reported this is a routine pay request for the West Side Sanitary Sewer Interceptor Project 2. It is for Gatlin Plumbing in the amount of $494,633. They are approximately 70% complete with the project. Gatlin will be back to work once NIPSCO completes their utility work the Monday after Memorial Day.

Motion to approve WSSSI Project 2 Pay Request No. 5 in the amount of $494,633 made by Mrs. Rivera; seconded by Mr. Parker.

Motion carries, 7–0.

3. Reichelt Plumbing Final Invoices — $185,200 — Lift Station #3 / Morse Street

Mr. Kubiak stated there are five separate invoices totaling $185,200. The work covered: the force main tie-in to the manhole at the end; the force main across the road into Lift Station #3; check valves and gate valves inside Lift Station #3; new check valves and piping at Lift Station #7 / Robin’s Nest; and a change order for bases. All jobs were combined into one bill, which Ms. Sandberg had them split out by invoice. They all still reference Force Main Lift Station #3 but are all sewer-related.

Mr. Thiel asked Ms. Sandberg if there was a difference in how this would get paid. Ms. Sandberg stated it would all come out of the same fund. When she looked back at the minutes, only one item — for $44,500 — had been previously voted on by the Board. Since all five invoices came together totaling over $185,000, she wanted the Board to confirm payment of all. Mr. Parker read out the invoice breakdown: Robin’s Nest lift station; change order two; sanitary sewer line stop at Morse Street lift station; sanitary sewer Morse Street force main; sanitary sewer 147th Court lift station valve and pump change-out; and change order one. Mr. Kubiak confirmed those are correct. Ms. Sandberg confirmed the total is $185,200. Mr. Parker stated that is about what they figured the work would be. A brief discussion continued.

Motion to approve the Reichelt Plumbing invoices totaling $185,200 made by Mrs. Dickson; seconded by Mr. Becker.

Motion carries, 7–0.

Reports

1. Written Report

a. Fund Report

Clerk-Treasurer Sandberg reported the cash and expenditure reports were previously sent out.

2. Consultants & Staff Reports

a. Engineer

i. Sanitary Update — NIES

Mr. Simstad reported the West Side Sanitary Sewer Interceptor Project 2 is approximately 70% complete and on schedule. For Project 3, they are on schedule for design and permitting. They had a wastewater staff meeting a couple of weeks prior regarding moving forward with bidding on Project 3 where no easements are required, and they are also considering Project 4 and working with developers and Lake County regarding right-of-way.

ii. Water Update — CBBEL

No update. Mr. Thiel noted that the Town did purchase a parcel for water, with the closing scheduled for the following day. More will be reported on that site at a future meeting.

b. Director of Operations

Mr. Kubiak reported hydrant flushing started on the west side approximately two weeks prior. Lift stations will begin to be cleaned out the following week. They are waiting on quotes for lining the sewer main just west of Fairbanks toward Edison.

c. Town Manager

No report.

d. Town Attorney

No report.

3. JMOB Report

Mr. Thiel stated there is ongoing litigation. He asked Mr. Austgen about an email regarding discovery moving back to December. Mr. Austgen confirmed. Mr. Carnahan asked if they were going to try to schedule a JMOB meeting themselves. Mr. Thiel stated he is not sure what they are doing with that. There has not been much communication. Mr. Austgen stated everything is being funneled through the litigation. Mr. Carnahan stated they are essentially at a standstill.

Mr. Thiel asked Mr. Simstad about the lack of responses from Lowell. Mr. Simstad stated that is correct. He has yet to receive the MROs and a response to their analysis from early 2024, or responses regarding the long-term control plan, policy documents from IDEM, and a comparison of flows from 2008 through 2024. Those flows were essentially identical even though Cedar Lake increased customers by 40%. That is attributable to the work done on the east side interceptor and some work on the west side removing inflow and infiltration (INI) through manhole rehabilitation projects. They are seeing a beneficial flow analysis but are also seeing no responses from Lowell.

Mr. Thiel stated he spoke with Sue Haase and Mr. Kubiak regarding certifications, with roughly 1,400 still outstanding. He requested that Mr. Kubiak compile information on how many are currently online, as they need those numbers. He asked Mr. Simstad to discuss how they work with planning. Mr. Simstad stated the document submitted to Lowell was done separately from him, likely by staff around 2023–2024. What they are seeing is a permitted rate of approximately 52 gallons per day, which is 310 gallons per day per user with a peak factor of four. Generally, from the data reviewed prior to 2008, Cedar Lake is at approximately 280 gallons per day. Lowell is slightly higher. Lowell is a CSO (combined sewer overflow) community; those factors must be addressed in the permit process, but in actual usage they tend to be reasonably lower. The fact that Lowell is a CSO community and uses an active flow process with the equalization (EQ) basins on Morse and at their facility — the activity status of which is still unknown — means the two communities together have good capacity in terms of equalization approaching 30 million gallons, which is significant. Mr. Carnahan noted they did receive the April report. Mr. Thiel stated there are still a couple missing. Mr. Simstad stated December 2025 is missing. Mr. Carnahan stated Mr. Austgen sent it.

Public Comment

Margaret Mirich — 11727 W. 124th Place

Mrs. Mirich asked about the new fee for new builds and whether the building moratorium is still in effect. Mr. Thiel stated yes. Mrs. Mirich stated the money would be collected from the builder, who will pass it on to the homeowner. She asked who is monitoring the funds and their receipt. Ms. Sandberg stated that is her responsibility. The funds go into Fund 631, the system development charge fund — a specific designated fund. Mr. Thiel clarified this applies to new development under the building moratorium. There are outstanding pre-approved projects that are exempt. The moratorium is for new development only.

Mr. Parker stated the last figure they had was 1,400 lots, not counting what is in pre-platted subdivisions that are buildable. Mrs. Mirich asked if there was ever any type of fee before. It was confirmed there was. Mr. Carnahan stated it was $3,500 and is now proposed at $5,537.

Mrs. Mirich stated she does not fully understand the sewer interceptor situation. She gathers they are still at a stalemate with Lowell and the matter is in the lawyers’ hands and backed up in the court system. Mr. Austgen stated the litigation is proceeding and is scheduled. Mrs. Mirich asked whether there is still a sewage capacity issue and whether they are at the mercy of the court system. Mr. Thiel stated it is more of an unknown on capacity. They are not getting straight answers. Part of their due diligence is determining what is currently online and how those numbers compare to what was presented at Plan Commission. They are in a period of active discovery. A lot of that takes time and review.

Mrs. Mirich asked if they are using the new police and fire administration building to full capacity. Mr. Thiel stated the police station is. The fire station is not. Mrs. Mirich asked about water and whether they have gotten anywhere on building a water tower. Mr. Thiel stated that is what he mentioned earlier — the Town is closing on a parcel tomorrow. It is a 3.2-acre site just south of the tower by the high school. Christopher B. Burke Engineering is working on a plan. A few other sites are also being looked at, with one more under discussion for continued testing and fracture tracing. Mrs. Rivera stated there are test wells showing a lot of capacity and good quality water at the site being purchased. A brief discussion continued on the location.

Adjournment

President Thiel adjourned the meeting at approximately 7:13 P.M.