Reserved Capacity 1994cAti
o r}r Irl
City of Cara,
DEC i 2 1994
December 9, 1994
Mr. Jeffrey C. Henson, President
Hamilton Western Utilities, Inc.
1350 Greyhound Court
Carmel, IN 46032-1605
SUBJECT: Reserved Capacity
Dear Mr. Henson:
We have reviewed the 1991 extension to the service agreement between the City of
Carmel and Hamilton Western Utilities. The agreement extension was reviewed in reference to
the limitations of reserved capacity as discussed in our meeting on September 1, 1994. We have
also discussed the agreements with Mr. Don Silvey; who had represented the City in past
negotiations. Mr. Silvey informed us that no additional interceptor capacity was purchased in the
1991 agreement extension and that the reserved capacity was revised to a not -to -exceed peak rate
of flow in order to clarify the capacity reserved to Hamilton Western.
The City of Carmel is unable to agree with Hamilton Westem Utilities' interpretation of
the reserved capacity in the North-South Interceptor. It is the City of Carmel's understanding that
the 1991 extension to the agreement provided additional plant capacity to Hamilton Westem
Utilities and revised the existing interceptor capacity limits to a not -to- exceed peak rate of flow
of .55 mgd through the McNamara Interceptor as measured by the Neville Lane meter and a not -
to -exceed peak rate of flow of .74 mgd through the North-South Interceptor as measured by the
Village Farms meter. The not -to -exceed peak rate of flow is an instantaneous rate of flow
measured in units of mgd and at no time shall the flow rate into the McNamara Interceptor or
the North-South Interceptor exceed the discharge limits stated above.
ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2400
Mr. Jeffrey C. Henson
Page 2 December 9, 1994
A summary of the capacity reserved to Hamilton Western Utilities is listed below.
Plant Capacity: 1.29 mgd
Interceptor Capacity:
McNamara Interceptor (Neville Lane meter): .55 mgd, not -to -exceed
peak rate of flow
North-South Interceptor (Village Farms meter): .74 mgd, not -to -exceed
peak rate of flow
Penalties will be incurred if Hamilton Western exceeds the peak rate of flows. Our
review of the 1993 flow records has discovered 89 days of penalties from the McNamara
Interceptor and 349 days of penalties from the North/South interceptor. The total amount of
penalties in 1993 is $43,800.
We will review your flow records for 1994 to determine the penalties. If you have any
questions, please feel free to contact us. Per Mr. Byers recent letter, we are willing to meet with
Hamilton Western Utilities to discuss this matter further if desired. The penalty billing for 1993
will be forthcoming in the near future.
Very truly yours,
TJ/pag
cc: Brian Hougton
Jim Dougherty
Gordon Byers
City of Carmel
December 9, 1994
Mr. Jeffrey C. Henson, President
Hamilton Western Utilities, Inc.
1350 Greyhound Court
Carmel, IN 46032-1605
SUBJECT: Reserved Capacity
Dear Mr. Henson:
We have reviewed the 1991 extension to the service agreement between the City of
Carmel and Hamilton Western Utilities. The agreement extension was reviewed in reference to
the limitations of reserved capacity as discussed in our meeting on September 1, 1994. We have
also discussed the agreements with Mr. Don Silvey, who had represented the City in past
negotiations. Mr. Silvey informed us that no additional interceptor capacity was purchased in the
1991 agreement extension and that the reserved capacity was revised to a not -to -exceed peak rate
of flow in order to clarify the capacity reserved to Hamilton Western.
The City of Carmel is unable to agree with Hamilton Western Utilities' interpretation of
the reserved capacity in the North-South Interceptor. It is the City of Carmel's understanding that
the 1991 extension to the agreement provided additional plant capacity to Hamilton Western
Utilities and revised the existing interceptor capacity limits to a not -to- exceed peak rate of flow
of .55 mgd through the McNamara Interceptor as measured by the Neville Lane meter and a not -
to -exceed peak rate of flow of .74 mgd through the North-South Interceptor as measured by the
Village Farms meter. The not -to -exceed peak rate of flow is an instantaneous rate of flow
measured in units of mgd and at no time shall the flow rate into the McNamara Interceptor or
the North-South Interceptor exceed the discharge limits stated above.
ONE CIVIC SQUARE CARMEL, INDIANA 46032 317/571-2400
Mr. Jeffrey C. Henson
Page 2 December 9, 1994
A summary of the capacity reserved to Hamilton Westem Utilities is listed below.
Plant Capacity: 1.29 mgd
Interceptor Capacity:
McNamara Interceptor (Neville Lane meter): .55 mgd, not -to -exceed
peak rate of flow
North-South Interceptor (Village Farms meter): .74 mgd, not -to -exceed
peak rate of flow
Penalties will be incurred if Hamilton Western exceeds the peak rate of flows. Our
review of the 1993 flow records has discovered 89 days of penalties from the McNamara
Interceptor and 349 days of penalties from the North/South interceptor. The total amount of
penalties in 1993 is $43,800.
We will review your flow records for 1994 to determine the penalties. If you have any
questions, please feel free to contact us. Per Mr. Byers recent letter, we are willing to meet with
Hamilton Western Utilities to discuss this matter further if desired. The penalty billing for 1993
will be forthcoming in the near future.
Very truly yours,
TJ/pag
cc: Brian Hougton
Jim Dougherty
Gordon Byers