TRANSMITTAL LETTER FOR THE BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON JUDICIARY
Mr. Richard Lanyon, Executive Director
Title
Issue Board Orders: (1) Approving and Adopting Hearing Officer J. Paula Roderick’s Settlement of Board Appeal No. 10B-001 On Appeal of 2007 and 2008 User Charges in the Matter of an Appeal Entitled, “Tampico Beverages v. Metropolitan Water Reclamation District of Greater Chicago”
Body
Dear Sir:
Tampico Beverages, Inc. (Tampico) submitted its 2007 User Charge Annual Certified Statement (RD-925) on December 17, 2008, and reported a Net User Charge (NUC) of $13,647.00. The District revised Tampico’s 2007 NUC from the reported $13,647.00 to $45,083.67 and advised Tampico of this revision in its letter dated February 11, 2009. Tampico submitted its 2008 RD-925 on July 2, 2009, and reported a NUC of $15,012.00. The District revised Tampico’s 2008 NUC from the reported $15,012.00 to $35,254.54 and advised Tampico of this revision in its letter dated July 23, 2009.
Tampico appealed the revisions of the 2007 and 2008 User Charge liabilities as determined by the Director of Monitoring and Research (Director), by letter dated August 6, 2009. A meeting was held on September 24, 2009, with representatives from Tampico and the Monitoring and Research Department (M&R) wherein Tampico presented its appeal of its 2007 and 2008 User Charges. By letter dated December 1, 2009, the Director of M&R advised Tampico that the NUCs in the amounts of $45,083.67 and $35,254.54 for 2007 and 2008 respectively, as recomputed by the District, would stand.
By letter dated December 16, 2009, Tampico informed the Director that it did not concur with the determinations of the Director and, in accordance with Section 9 of the District’s User Charge Ordinance (Ordinance), petitioned the Board of Commissioners (Board) for a hearing regarding the District’s determinations on this matter. M&R determined that the request for hearing was made in a timely manner and that the User Charge liabilities for 2007 and 2008, as determined by the Director, had been paid in full.
At its Board Meeting of January 21, 2010, the Board granted Tampico’s request for a Board Appeal and designated a Hearing Officer to conduct such hearing on behalf of the Board in accordance with Section 9 of the Ordinance. Hearing Officer J. Paula Roderick was assigned to be the Hearing Officer on the Board Appeal. On March 5, 2010, the District, by its General Counsel, filed a Notice of Pre-Hearing Conference on Appeal of 2007 and 2008 User Charges and served it on Tampico.
On April 14, 2010, representatives of the District and Tampico conducted a Pre-Hearing Conference with the Hearing Officer, wherein the District and Tampico representatives informed the Hearing Officer of their respective positions. Based on a review of all the documentation submitted by Tampico relative to this Board Appeal, the District accepts Tampico’s Proposed New Methodology for Calculating User Charge and the District will revise the 2007 and 2008 User Charges for Tampico, resulting in a $14,412.26 refund for 2007 User Charges and $11,292.48 refund for 2008 User Charges, for a total refund to Tampico of $25,704.74 for 2007 and 2008 User Charges.
This information was presented to the Hearing Officer, who found it to be acceptable for purposes of settling this Board Appeal and the Hearing Officer prepared a Settlement Agreement (a copy of which is attached hereto and made a part hereof) wherein the Board Appeal will be settled to the satisfaction of the District and Tampico.
It is requested that the Executive Director recommend to the Board that it (1) approve and adopt Hearing Officer J. Paula Roderick’s Settlement of Board Appeal No. 10B-001 On Appeal of 2007 And 2008 User Charges in the Matter of an Appeal Entitled, “Tampico Beverages v. Metropolitan Water Reclamation District of Greater Chicago” and (2) Authorize the General Counsel to execute the Settlement Agreement on behalf of the District.
Requested, Frederick M. Feldman, General Counsel, FMF:RH:BOC:jvs
Respectfully Submitted, Terrence J. O’Brien, Chairman Committee on Judiciary
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 12, 2010
Attachment