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Rate Report - Umbaugh 1986SON WATER AND WASTE WATER CARMEL UTILITIES Memo To: Steve Andrews From: Jim Dougherty JANE A. REIMAN MAYOR Re: Sewer Billing for Hamilton Western Utilities 130 1 sI AVENUE, S.W. CARMELyINDIANAA46032 PHO `Y:t7EyiV7a1b FEB 6 1986 JAM ES_G..D_S9k{ F.�1F Y CARREL. IN. February 5, 1986 Pursuant to our phone conversation today, I have taken the following actions: 1. I have started using the new lower sewer rate per Umbaugh's February 3, 1986 letter. This starts with their January, 1986 bill. 2. Attached to the January bill is a credit for the months since the lower rates went into effect for the rest of the City; specifically September, October, November and December, 1985. 3. The above two actions will bring the Hamilton Western bill up to date with the lower sewer rate immediately, and all at once. I have attached a copy of the January sewer bill and the four month's credit for your information and files. I have alsoattached a copy of Umbaugh's February 3, 1986 letter. attach. cc: Mayor Reiman Don Silvey, HNTB /1. FRASIER. C. P. A. /•L.UMRAUGH, C.P.A. .RD W. GUNTZ, C. P. A. IALD G. MALONE, C.P.A. ,1ARLES A. DALTON, C. P. A. HERSCHELL J. UMRAUGH, C. P. A. RETIRED H. J. UMBAUGH & ASSOCIATES eATllfled 1n-u��tc d4ccounlants 1500 OAK ROAD Mr. James G. Dougherty Utilities Manager 130 First Avenue, S.W. Carmel, IN 46032 INDIANAPOLIS OFFICE PLYMOUTH, INDIANA 46563 (317)844.7488 1219) 935-5178 February 3, 1986 Re: Carmel (Indiana) Municipal Sewage Works - Hamilton -Western Billing Dear Jim: As we discussed last week, we are enclosing a copy of a revised schedule of Hamilton -Western billing rate. This revises the original August 26, 1985 schedule which was prepared for the council meeting at which the new city rates were adopted. The original proposed rate for Hamilton -Western was $644.55 per million gallons. It appears it should actually be $648.07: We would suggest that after discussions with Steve Andrews that the revised rate be put in place. We are also sending copies of this letter to, Mr. Andrews, Mr. Silvey, Mayor Reiman for their information. Please let me know if. anything else would be helpful at this time. Very truly yours, H.J. UMBAUGH & ASSOCIATES Roger L. Umbaugh RLU/mac Enclosure Cs: Per above Line Item Number CARMEL - HAMILTON -WESTERN UTILITIES TREATMENT AGREEMENT'' CALCULATION OF WHOLESALE RATE FOR OPERATION AND MAINTENANCE COSTS AND FOR REPLACEMENT COST ON EQUIPMENT Annual operation & maintenance (0 & M) expense: 1 Treatment plant expense 2 Sludge handling disposal expense Collection system expense 3 - interceptor sewers 4 - collection sewers 5 - lift stations 6 Billing and collection expense 7 Industrial monitoring expense 8 Subtotal 9 General and administrative expense 10 Taxes Total 0 & M expense 11 Plus: Annual replacement costs on equipment for items of plant benefiting wholesale customers 12 Total annual 0 & M expense and replacement cost on equipment 13 Less: Carmel surcharge revenue for excess BOD 14 Net of surcharge 15 Divided by total and SS revenue annual flow received at Carmel treatment plants 16 Rate per million gallons of flow to wholesale customers (including domestic loading) • Total Costs $ 585,890 -0- 23,721 66,894 27,992 75,182 779,679 134,076 40,175 953,930 150,000*** $1,103,930 Allocation Percentage Shared Costs 100% $585,890 100% 100%* 0% 0% 0% 08 23,721 -0- -0- 609,611 78.2%** 104,847 714,458 150,000 864,458 -0- -0- :1,333.9**** $648.07 Allocation for interceptor based on 20% of collection costs. Allocation percent = line item #8, shared cost : line item #8, total cost. Amount estimated by the consulting engineer. Plant flow 1,314.4 mg (August 1984 -July 1985) plus estimated Hamilton -Western increase of 1.625 mg per month. Revised February 3, 1986 August 26, 1985 Tho above unaudited and limited financial information lo presented for tho purpose of discussion and consideration of approprlato officers and officials and to subject to futuro rovinlon and final report. WATER AND WASTE WATER CARMEL UTILITIES Mr. Raymond Panke, President Hamilton Western Utilities 1350 Greyhound Court Carmel, Indiana 46032 JANE A. REIMAN MAYOR INVOICE Billing For: Month of January, 1986 Meter Reading 12/30/85 392372 1/ 6/86 393808 11 11 11 11 11 11 1,436,000 1/ 6/86 393808 1/13/86 395104 1,296,000 1/13/86 395104 1/20/86 396230 1/20/86 396230 1/27/86 397655 1/27/86 397655 2/ 3/86 398748 1,126,000 1,425,000 1,093,000 Total 6,376,000 130 1st AVENUE, S.W. CARMEL, INDIANA 46032 PHONE: (317) 846-7316 JAMESG. DOUGHERTY UTILITIES MANAGER ' February 5, 1986 Balance Forward $ -0- 6,376,000 gallon x .64807**** per 1,000 gallon $4,132.09 (**** Note new rate per 1,000 gallon) Minus Total Credit $1,544.82 Total Amount Due This Billing. $2,587.27 Please see attached page for explanation and summary of the credits on previous bills for September, October, November and December. Due & Payable Upon Receipt of This Invoice Please remit to: Carmel Utilities Attention: Ruth Campbell P. 0. Box 1543 Carmel, Indiana 46032 Page 1 of 2 pages Page 2 of 2 pages February 5, 1986 To: Hamilton Western Utilities Re: Billing for Month of January, 1986 EXPLANATION OF CREDIT GIVEN ON PAGE 1 In late August, 1985, the City Council approved a sewer rate reduction. We have just received an accurate computation of what your reduced rate should be. The following recalculations of your billings for the months of September, October, November and December uses the new reduced rate. We also indicate the monthly credit you are due because of the new rate. The credits are taken off of this month's bill; which will bring your account up to date immediately with the new lower rate: Billing for January, 1986 $ 4,132.09 Original Bill for December, 1985 Revised Bill for December, 1985 $ 8,401.752 7,922.66 December Credit $479.09 Original Bill for November, 1985 Revised Bill for November, 1985 $11,576.890 10,916.74 November Credit 660.15 Original Bill for October, 1985 Revised Bill for October, 1985 $ 3,854.84 3,635.02 October Credit 219.82 Original Bill for September, 1985 Rdvised Bill for September, 1985 $ 3,257.61 3,071.85 September Credit 185.76 Total Credit Due 1,544.82 Current January, 1986 Bill — Minus Credit $ 2,587.27 WATER AND WASTE WATER CARMEL UTILITIES JANE A. REIMAN MAYOR PROMISSORY NOTE INVOICE Mr. Raymond Panke, President Hamilton Western Utilities 1350 Greyhound Court . Carmel, Indiana 46032 Billing for: Month of January, 1986 130 1st AVENUE, S.W. CARMEL. INDIANA 46032 PHONE: (31 7) 846-7316 JAMESG. DOUGHERTY U IILIIIES MANAGER February 5, 1986 Balance Forward $ -0- Monthly Payment for Month of January, 1986 $1,756.90 Due & Payable Upon Receipt of this Invoice. Please Remit To: Carmel Utilities Attention: Ruth Campbell P. 0. Box 1543 Carmel, Indiana 46032 MYRON H. FRASIER. C. P. 4. ROGER L. UMBAUGH. C. P. A. EDWARD W. GUNTZ. C. P A. GERALD G. MALONE. C.P.A. CHARLES A. DALTON. C. P. A. HERSCHELI J. UMBAUGH. C. P. A. RETIRED c Y H. J. UMBAUGH a ASSOCIATES CitLi/sd �ucr« o4ccouiirants 1500 OAK ROAD Mr. James G. Dougherty Utilities Manager 130 First Avenue, S.W. Carmel, IN 46032 PLYMOUTH, INDIANA 46563 (219) 935-5178 February 3, 1986 Re: Carmel (Indiana) Municipal Sewage Works - Hamilton -Western Billing Dear Jim: 13ECEIVED FEB 5 1986 OFFICE OF THE MAYOR CARMEL, IN. INDIANAPOLIS OFFICE 13171 844-7788 As we discussed last week, we are enclosing a copy of a revised schedule of Hamilton -Western billing rate. This revises the original August 26, 1985 schedule which was prepared for the council meeting at which the new city rates were adopted. The original proposed rate for Hamilton -Western was $644.55 per million 1 be $648 1 would suggest that after discussions with Steve Andrews that the revi We are also sending copies of this letter to. Mr. Andrews, Mr. Silvey, Mayor Reiman for their information. Please let me know if anything else would be helpful at this time. RLU/mac Enclosure Cs: Per above Very truly yours, H.J. UMBAUGH & ASSOCIATES Roger L. Umbaugh CARMEL - HAMILTON -WESTERN UTILITIES TREATMENT AGREEMENT" CALCULATION OF WHOLESALE RATE FOR OPERATION AND MAINTENANCE COSTS AND FOR REPLACEMENT COST ON EQUIPMENT Line Item Allocation Number-: Total Costs Percentage Shared Costs Annual operation & maintenance (0 & M) expense: 1 Treatment plant expense $ 585,890 100% $585,890 2 Sludge handling disposal expense -0-1000 -0- Collection system expense 3 - interceptor sewers 23,721 100%* 23,721 4 - collection sewers 66,894 0% -0- 5 - lift stations 27,992 0% -0- 6 Billing and collection expense 75,182 0% -0- 7 Industrial monitoring expense 0% 8 Subtotal - 779,679 609,611 9 General and administrative expense 134,07678.2%** 104,847 10 Taxes 40,175 Total 0 & M expense 953,930 714,458 11 Plus: Annual replacement costs on equipment for items of plant benefiting wholesale customers 150,000*** 150,000 12 Total annual 0 & M expense and replacement cost on equipment $1,103,930 864,458 13 Less: Carmel surcharge revenue for excess BOD and SS -0- 14 Net of surcharge revenue -0- 15 Divided by total annual flow received at Carmel treatment plants _1,333.9**** 16 Rate per million gallons of flow to wholesale customers (including domestic loading) $648.07 * Allocation for interceptor based on 20% of collection costs. ** Allocation percent = line item #8, shared cost : line item #8, total cost. *** Amount estimated by the consulting engineer. **** Plant flow 1,314.4 mg (August 1984 -July 1985) plus estimated Hamilton -Western increase of 1.625 mg per month. Revised February 3, 1986 August 26, 1985 The above unaudited and limited financial information is presunted for the purpose of discussion and consideration of appropriate officers and officials and in subject to future revision and final report.