TRANSMITTAL LETTER FOR BOARD MEETING OF JANUARY 17, 2013
COMMITTEE ON INDUSTRIAL WASTE AND WATER POLLUTION
Mr. David St. Pierre, Executive Director
Title
Request Authority to Settle the 2010 Net User Charge for Fantus Health Center, User Account No. 26653, by revising the Net User Charge from $10,498.10 to a Net User Charge of $7,025.33 and authorize a refund of any overpayment
Body
Dear Sir:
Fantus Health Center (Fantus), located at 621 South Winchester Avenue, Chicago, Illinois, was classified as a Tax Exempt User effective January 19, 2010, in accordance with Section 2 of the User Charge Ordinance. Fantus was required to file the User Charge Annual Certified Statement (RD-925) for discharges that occurred during 2010 and subsequent reporting years. Fantus' first RD-925 with supporting documentation of wastewater discharges was due on February 22, 2011.
The signed and notarized 2010 RD-925 was postmarked November 1, 2010, but did not include any water bills to substantiate water consumption for the 2010 reporting year. Fantus elected to have the District calculate the 2010 Net User Charge (NUC). However, this was not possible until water bills were submitted. On June 24, 2011, Fantus submitted one water bill from 2010 and subsequently on July 14, 2011, the District calculated the 2010 NUC for Fantus based on the water consumption volume data from the single water bill submitted for Fantus with its RD-925, prorating the volume to 365 days, resulting in an annual volume of 12,605,391 gallons for 2010. The NUC as calculated by the District for 2010 was $10,498.10.
The RD-925 that Fantus submitted for the 2011 reporting year was based on a full set of water bills and was received by the District on July 5, 2012. On July 18, 2012, the District cleared Fantus' 2011 submittal as filed using an annual volume of 5,493,312 gallons resulting in a NUC of $4,292.49.
On July 5, 2012, Mr. David Lai, Director of Stroger Hospital Plant, contacted the District requesting a revision to the 2010 NUC as calculated by the District. Mr. Lai claimed that upon review of additional water bills, the annual water consumption at Fantus for 2010 should be lower than that calculated by the District. On September 7, 2012, Mr. Lai submitted additional water bills for 2010; however, the bill for the period covering November 2, 2009, through May 4, 2010, indicated there was no incoming water flow, and the District deemed this bill as inaccurate. The facility would not have been able to operate with no incoming water for six months.
Based on a review of the 2010-2011 water bills submitted for Fantus, the District calculated the 2010 annual volume as 8,435,526 gallons, resulting in a NUC of $7,025.33, using Tax Exempt rates for 2010. This volume was based on documentation of water consumption from May 4, 2010, through May 18, 2011, when water bills with reliable readings and consumption data were available.
The request for refund by Fantus is submitted after the time period available to the Director of Monitoring and Research and the Board of Commissioners to address the request under the User Charge Ordinance appeal process. Nevertheless, because 2010 was Fantus' first user charge reporting year, it is respectfully requested that the Board of Commissioners authorize a settlement of the disputed invoice by revising the 2010 NUC for Fantus from $10,498.10 to $7,025.33, and authorize a refund of any overpayment in NUC that may be due for 2010.
Requested, Thomas C. Granato, Director of Monitoring and Research, TCG:RMH:MJ:PLK:pk
Ronald M. Hill, General Counsel
Jacqueline Torres, Clerk/Director of Finance
Respectfully Submitted, Frank Avila, Vice-Chairman, Committee on Industrial Waste and Water Pollution
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for January 17, 2013