Lake Cnty. Bd. of Comm'rs v. Lake Cnty. Council

• Decision Date: 12 July 2022
• Docket Number: Court of Appeals Case No. 21A-MI-1805
• Parties: LAKE COUNTY BOARD OF COMMISSIONERS, Appellant-Defendant, v. LAKE COUNTY COUNCIL, Appellee-Plaintiff.
• Court: Indiana Appellate Court

192 N.E.3d 936

LAKE COUNTY BOARD OF COMMISSIONERS, Appellant-Defendant,

v.LAKE COUNTY COUNCIL, Appellee-Plaintiff.

Court of Appeals Case No. 21A-MI-1805

Court of Appeals of Indiana.

FILED July 12, 2022

Attorney for Appellant: Joseph C. Chapelle, Barnes & Thornburg LLP, Indianapolis, Indiana

Attorneys for Appellee: Jenny R. Buchheit, Thomas A. John, Ice Miller LLP, Indianapolis, Indiana, Ray L. Szarmach, Law Office of Ray L. Szarmach, P.C., Merrillville, Indiana

Bradford, Chief Judge.

Case Summary

[1] The Lake County Council (the "Council") adopted Ordinance Numbers 1451B and 1451M ("Ordinance No. 1451B" and "Ordinance No. 1451M") in October of 2020. In Ordinance No. 1451B, the Council established itself as the purchasing agency for Lake County. Ordinance No. 1451M created a data-processing agency. The Lake County Board of Commissioners (the "Commissioners") subsequently vetoed these ordinances, and the Council overrode the vetoes.

[2] On November 6, 2020, the Council filed a complaint for declaratory judgment. The parties filed competing summary judgment motions in which they disputed whether the Council or the Commissioners has the statutory authority to act as the purchasing agency and to create a data-processing agency. On April 16, 2021, the trial court granted the Council's motion and denied the Commission's motion. The trial court also denied the Commission's subsequent motion to correct error. On appeal, the Commissioners contend that the trial court abused its discretion by denying their motion to correct error. We affirm.

Facts and Procedural History

[3] On October 13, 2020, the Council adopted Ordinance No. 1451B, establishing itself as the purchasing agency of Lake County. Ordinance 1451B provides, in relevant part, as follows:

A. ESTABLISHMENT.

Pursuant to I.C. 5-22-4-5(a) the purchasing agency for a political subdivision is the person designated by law or by the rule of a governmental body. Pursuant to I.C. 36-1-3.5-5(b)(3) the Lake County Council is hereby established as the purchasing agency for Lake County, Indiana for the purchase of all or certain services, supplies, materials and equipment as under existing laws are permitted to be purchased with County funds for any or all purposes. The agency shall be known as the Lake County Purchasing Agency. Any prior motion, resolution or ordinance and its amendments establishing a County Purchasing Agency for Lake County, Indiana is rescinded and repealed.

B. POWERS AND DUTIES.

The Purchasing Agency shall have the powers and duties afforded it by the Lake County Council. In determining and defining the powers and duties, the Lake County Council shall formulate, and enter of record in the County records, a statement prescribing and defining clearly and succinctly the field of activity of the agency, setting forth the types of purchases authorized to be made with County funds.

The term "Purchase" as defined by I.C. 5-22-2-24 shall include the following:

1. "Purchase" includes any buy, procure, rent, lease or otherwise acquire.

The term includes the following activities:

1. Description of requirements;

2. Solicitation or selection of sources;

3. Reparation and/or award of contracts;

4. All phases of contract administration;

5. All functions that pertain to purchasing.

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D. AGENCY PERSONNEL.

The personnel of the Agency shall consist of a Purchasing Agent and any other employees as shall be deemed reasonably necessary for the operation of the Agency. The Purchasing Agency may have more than one Purchasing Agent. The Lake County Council shall determine the qualifications required for the personnel. The number and annual compensation of the personnel, including the Purchasing Agent, shall be determined by the County Council.

E. APPOINTMENT OF PURCHASING AGENCY.

The Lake County Council shall appoint one or more Purchasing Agents....

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K. BUDGET.

The Council shall adopt a budget annually which shall contain an estimate of the amount of money which will be needed by the Council and the Agency during the coming fiscal year to cover the expenses and obligations incurred and to be incurred. The budget shall be prepared, filed and funded in the same manner and form and at the same time as the budgets and estimates of other county offices, departments and agencies.

Appellant's App. Vol. III pp. 120–23.

[4] The Lake County Auditor presented Ordinance 1451B to the Commissioners on October 27, 2020. The Commissioners vetoed Ordinance 1451B on October 30, 2020. The Council voted to override the veto on November 10, 2020.

[5] On October 21, 2020, the Council adopted Ordinance No. 1451M, establishing the Lake County Data Processing Agency. In adopting Ordinance No. 1451M, the Council found "that the establishment of a County government agency and board to coordinate the operations of the various data processing systems in Lake County [was] necessary for the economic welfare of the citizens of Lake County, Indiana." Appellant's App. Vol. III p. 128. Ordinance 1451M provided that the Data Processing Agency "shall be administered by a board known as the Lake County Data Processing Agency Board." Appellant's App. Vol. III p. 129. "The Board shall consist of 15 members appointed by" the Council and "shall include" various county officials. Appellant's App. Vol. III pp. 129, 130.

[6] The Lake County Auditor presented Ordinance 1451M to the Commissioners on October 27, 2020. The Commissioners vetoed Ordinance 1451M on October 30, 2020. The Council voted to override the veto on November 10, 2020.

[7] On November 6, 2020, the Council filed a complaint for declaratory judgment. On November 23, 2020, the Commissioners filed an answer and counterclaim for declaratory and injunctive relief. The Commissioners filed an amended answer on December 23, 2020. The parties subsequently filed competing motions for summary judgment. Following a hearing, on April 16, 2021, the trial court granted the Council's motion for summary judgment and denied the Commissioners’ motion for summary judgment. On May 10, 2021, the Commissioners filed a motion to correct error, which was denied by the trial court on July 23, 2021. At the request of the Commissioners, the trial court stayed implementation of its April 16, 2021 order pending appeal.

Discussion and Decision

[8] The Commissioners contend that "[t]his case concerns whether the [Council] can usurp specific statutory powers expressly granted to the [Commissioners] to enact ordinances relating to a county purchasing agency and data processing agency without violating Home Rule." Appellant's Br. p. 7. The Council contends that Indiana Code section 36-1-3.5-5 "explicitly transferred jurisdiction over the Lake County purchasing agency and the Lake County data processing agency from" the Commissioners to the Council. Appellee's Br. p. 7.

I. Overview of Structure of Lake County Government

[9] In 1981, the Indiana General Assembly adopted a number of statutes relating to the structure of county government. In outlining the purpose of the new statutes, Indiana Code section 36-1-3.5-1 provides as follows:

The policy of the state is that in all cases where a general law can be made applicable, all laws should be general and of uniform operation throughout the state, as provided by Article 4, Section 23 of the Constitution of Indiana. In addition, the policy of the state is that in local affairs where a general law cannot be made applicable, the applicable laws should be determined by the local legislative authorities under the home rule provisions of this title, particularly IC 36-1-3-6.^{[1 ]} Therefore, the purpose of this chapter is to transfer to the appropriate local authorities jurisdiction over certain local matters that, before the 1981 regular session of the general assembly, have been subjects of statutory concern.

Indiana Code section 36-2-3.5-2 provides that "[t]he powers of the county are divided between the executive and legislative branches of its government. A power belonging to one (1) branch of the county's government may not be exercised by the other branch." "The board of commissioners ... is the county executive. The county council ... is the county legislative body as well as the county fiscal body." Ind. Code § 36-2-3.5-3.

[10] With respect to the powers of the executive branch, Indiana Code section 36-2-3.5-4 provides as follows:

(a) All powers and duties of the county that are executive or administrative in nature shall be exercised or performed by its executive, except to the extent that these powers and duties are expressly assigned to other elected officers.

(b) The executive shall:

(1) report the state of the county annually before March 1 to the county legislative body and to the people of the county;

(2) recommend annually before March 1 to the legislative body whatever action or program it considers necessary for the improvement of the county and the welfare of its residents;

(3) submit to the legislative body an annual budget in accordance with IC 36-2-5;

(4) establish the procedures to be followed by all county departments, offices, and agencies under its jurisdiction to the extent these procedures are not expressly assigned to other elected officers;

(5) administer all statutes applicable to the county, and its ordinances and regulations, to the extent these matters are not expressly assigned to other elected officers; (6) supervise the care and custody of all county property;

(7) supervise the collection of revenues and control all disbursements and expenditures, and prepare a complete account of all expenditures, to the extent these matters are not expressly assigned to other elected officers;

(8) review, analyze, and forecast trends for county services and finances, and programs of all county governmental entities, and report and recommend on these to the legislative body by March 15 each year;

(9) negotiate contracts for the county;

(10) make recommendations concerning the nature and location of county improvements, and provide for the execution of those

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