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HomeMy WebLinkAbout1996 Meeting SummaryMarch 4, 1996 City of Carmel Mr. Jeff Henson, President Hamilton Western Utilities, Inc. 1350 Greyhound Court P. O. Box 1009 Carmel, Indiana 46032 Subject: February 22, 1996 Meeting Summary Dear Mr. Henson: This letter is written only to summarize for further discussion purposes, the key points discussed during our February 22, 1996 meeting at City Hall. The meeting, requested to discuss the issue of Hamilton Western's reserved capacity in the City of Carmel's interceptor system, was very productive and a major step in improving the business relationship between the City of Carmel (the "City") and Hamilton Western Utilities ("Hamilton Western"). By the end of the meeting, both parties identified and agreed to issues of concern and suggested resolutions for further consideration by all appropriate persons. The following presents the identified issues, suggested resolutions and the time schedule proposed during the meeting and is not intended to be binding on either party without a separate written agreement fully executed and approved by all appropriate persons and public bodies. ISSUES SURVIVING THE JOHNSON ADMINISTRATION: The parties interpret differently paragraph 7.1 of that certain agreement entitled "Extension of Municipal Wastewater Service Agreement Between the City of Carmel and Hamilton Western Utilities for Expansion of Carmel's South Wastewater Treatment Plant" and dated August 5, 1991 (the "Service Agreement"). The City's position is that Hamilton Western is limited to a rate of flow not to exceed .55 mgd (instantaneous flow) in the Neville Lane meter and .74 mgd (instantaneous flow) in the Village Farms meter. Hamilton Western's position is that it is limited to a flow not to exceed .55 mgd (volume per day) in the Neville Lane meter and .74 mgd (volume per day) in the Village Farms meter and that the usage is not measured on an instantaneous flow basis. ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2400 Mr. Jeff Henson Page 2 March 4, 1996 Will the City waive the threatened penalty for Hamilton Western's usage per the Service Agreement? Will the City take measures satisfactory to IDEM to allow Hamilton Western to continue with its future residential/commercial development plans? Did Hamilton Western get increased North/South Interceptor capacity per the Service Agreement which only addresses receipt of payment for additional plant capacity? OTHER ISSUES IMPACTING THE SURVIVING ISSUES: Is there additional capacity in the North/South Interceptor available for Hamilton Western to purchase and if so, how much and at what consideration? Would the City consider purchasing Hamilton Western's collection system tributary to the Neville Lane meter? SUGGESTED RESOLUTIONS FROM FEBRUARY 22, 1996 MEETING: A new agreement will supersede the Service Agreement to provide that Hamilton Western will limit all wastewater flow through the Village Farms meter to not exceed a peak rate of flow of .74 mgd as measured on an instantaneous basis at any one time and that if .74 mgd is exceeded at any time during the day, the City may, but is not obligated to, assess a penalty of $100 per day to Hamilton Western. Because Hamilton Western's position is that it is unable to reduce the peak rate of flow through the Neville Lane meter due to the lack of flow equalization facilities, the City will wave the penalty of $100 per day from exceeding the .55 mgd peak rate of flow and such penalty will be assessed only if the daily volume from February 22, 1996, on exceeds .55 on a per million gallon per day basis. Hamilton Western will agree that no additional development, except for approximately six vacant residential lots within or near the Neville Lane drainage area, will be allowed to discharge wastewater into the collection system upstream of. the Neville Lane meter, no additional wastewater will be diverted to this meter, and that the wastewater flow rates through this meter will remain similar to those indicated on 1995 flow records. Other changes consistent with the above three provisions will be made. ACTION PLAN: 1. By March 22, 1996, Hamilton Western will inform the City of the maximum number of projected customers with full development of Hamilton Western's service area that is tributary to the Village Farms meter. Hamilton Western will Mr. Jeff Henson Page 3 March 4, 1996 also inform the City of the current number of customers and the number of customers that will be disconnected from the collection system that is tributary to the Village Farms meter. Meet on March 25, 1996 to coordinate and reach agreement as to the current and perhaps future suggested resolutions. By April 15, 1996, the City will present a draft contract representing the agreement reached on or about March 25; the City will draft for Hamilton Western a letter to IDEM informing IDEM that Hamilton Western has reserved capacity in the City's interceptor system for a specific number of equivalent dwelling units as determined by the information provided by Hamilton Western to the City's satisfaction. The letter will be finalized and mailed to IDEM at the time the revised agreement is signed by Hamilton Western and approved by the Board of Public Works and Safety. 4. For the City to evaluate a purchase of the Neville Lane collection system, it was asked that Hamilton Western provide the City with the exact number of current users in this area, a map of the collection system, data indicating the approximate age of each portion of the system, the materials of construction, and such other information that will aid in the City's assessment of the value. Once the City has all appropriate documentation, it will be in position to decide whether it is interested in the purchase and if so, to then propose a valuation method and the method of purchase. We are pleased to have progressed this far in resolving these issues and look forward to receiving the information referenced herein. Please feel free to call if we may be of assistance. Very truly yours, CITY OF CARMEL UTILITIES ohn Du Utilities Manager cc: /Mayor Brainard Deb Grisham Brian Houghton