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HomeMy WebLinkAbout1984-030ORDER ADOPTED: 5/2/84 ORDER ENTERED: 5/2'84 BY THE COMMISSION, J�,, Don C. Scurlock, Jr., Ch rman Ap;Iroved ant leq'dr (frznden Attorney a " BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY RESOLUTION NO. 84-30 ® ORDER ® This matter comes before the Board of County Commissioners of Indian River County during a duly notified and published hearing ® and the Commission having heard testimony of all interested parties and having thoroughly reviewed and analyzed the recommendation of the County's rate consultant; now adopts the findings and conclusions as set for the in the consultant's recommendation dated April 17, 1984, and attached hereto as Exhibit "A". NOW, THEREFORE IT IS ORDERED: ® 1. That Hutchinson Utilities, Inc., has had tariffs in effect that are fair and reasonable. 2. That the current application for relief is hereby terminated and marked closed. 3. That the authorized rate of return or opportunity cost shall I C be 12.44% which includes an unweighed return on Equity Capital of 15.7%. 4. That the authorized rate of return be applied to the net rate base of $217,368. Net rate base is that rate base calculated exclusive of accumulated depreciation, contributions in aid of construction and accumulated depreciation on contributions in aid of construction but inclusive of a working capital allowance. 5. That Hutchinson Utilities, Inc., is authorized to design tariffs so as to generate $222,652 in gross wastewater revenues from customers enrolled as of December 31, 1983. 6. That Hutchinson Utilities, Inc., shall be permitted to include in its allowable costs rate case expense deferred in the current case amounting to $17, 835. 7. That Hutchinson Utilities, Inc., shall be permitted to apply to the Board of County Commissioners for an amended tariff in a subsequent rate hearing and the Board shall approve a tariff which will allow Hutchinson Utilities, Inc., under efficient and economical management to meet debt servicing requirements of long term financing needed to allow the Utility to make necessary improvements to its system. ORDER ADOPTED: 5/2/84 ORDER ENTERED: 5/2'84 BY THE COMMISSION, J�,, Don C. Scurlock, Jr., Ch rman Ap;Iroved ant leq'dr (frznden Attorney 111 T�: The Honorable Members of th®AiE: April 30, 1984 FILE: Board of County Commissioners II n TNROUGH:IMkGFIk1E GTT, NNiiroli IIIISTRATOR SUBJECT: FINAL ORDER — HUTCHINSON UTILITIES, INC. FROM: Terrilm o RFF�RGhw`S. A) Consultant's Opinion Utility Services Directoi B) Final Order DESCRIPTION AND CONDITIONS: The Board instructed the Utility Staff to hire a consultant to evaluate the request for a change in rates requested by Hutchinson Utilities, Inc., on January 18, 1984. This consultant, Mr. Warren E. Silverman, has evaluated and reviewed the books and records of Hutchinson Utilities, Inc. His findings are attached as Exhibit "A". ALTERNATIVES AND ANALYSES: Consultant is of the opinion that the requested rates are fair and reasonable; the rate of return shall be 12.449 which includes an unweighted return on equity capital of 15.7%; that the authorized rate of return be applied to the net rate base of $217,368; that the Utility is authorized to design tariffs so as to generate $222;652 in gross Wastewater revenues from customers enrolled as of December 31, 1983; and that the Utility be permitted to include in its allowable costs rate case ,expense deferred in the current case amounting to $17,835. RECOMMENDATION: Staff recommends that the consultant's opinion and final order be accepted by the Board and that the Board authorize the Chairman to sign the attached final order(Exhibit "B"). •..-- .. UUMMA CODS SOW 9e1-7480 WARREN E. 811—Nr° Ri�iiLi�i CKRTIMKO PUNUC ACCOUNTANT .lar! Om. A.. 0a .7G ,�ri � ..-W .tiY'..'A .P.Pam April 12, 1984 Board of County Commissioners Indian River County Vero Beach, Florida In accordance with your request, I have reviewed the books and records of Hutchinson Utilities, Inc. in order to ascertain whether the regulated company is entitled to rate relief currently and to further ascertain whether the company's past rates provided the applicant with a reasonable rate of return. In order to acomplish the assigned task, I met with representatives of the County's Utility Department, Hutchinson Utilities, Inc, its counsel and accountants and a representative of the intervenor. Discussions were held with the above representatives together with the County Attorney. The results of my work effort and my findings and conclusions are as follows: 1. The information presented to the Board of County Commissioners, Indian River County by the applicant was an accurate refl)ction of the financial information contained in the audited financial statements of the applicant. 2. Adjustments were made by me to the submitted information. The test year base used by me was the audited financial data for the year ended December 31,1983. 3. The ten adjustments made by me are as follows: a. Connection fee charges collected from customers were offset against job costs incurred. (Adjustment 1 - $ 15,840.) b. Professional fees were increased by the cost of lodging expenses incurred during the audit. (Adjustment 2 - $ 892.) C. Rent expense was decreased by the amount of rent charged to y.... .... an aiiiiiaLed company that shares the company's general offices. (Adjustment 3 - $ 9,000.) d. Depreciation claimed by the applicant was reduced to bring the includible amount into agreement with allowable utility depreciation in accordance with the provisions of the Internal Revenue Code as amended. (Adjustment 4 - $17,616.) e. Professional fees were reduced for amounts incorrectly included in this category but more correctly belong as rate case expense. (.Adjustment 5 - $ 10,142.) f. Travel expenses were adjusted to remove those credit card charges more properly classified as rate case expense, construction work in progress, personal expenditures and non-utility business (non-regulated actiVitieol . (Adjustment 6 - $ 3.331.) g. Rate case expenses were incurred by the applicant but were incorrectly posted to various accounts. I have accumulated such costs and amortized them over two years. The resultant dollar amount appears in Schedule attached hereto. (Adjustment 7 - $ 17,835.) h. Officer's salary was reduced by an amount in excess of 558 of the amount claimed by the applicant. This adjustment was necessitated by the finding of the claimed salary as excessive under the circumstances. The salary as claimed was not necessarily unreasonable per se but rather a finding of excessive cost under the circumstances was made because I could not find justification for adjustment other than comparable costs. (Adjustment 8 - $ 31,020.) i. Payroll taxes were adjusted as a result of the previous adjustment to Officer's Salary. (Adjustment 9 - $ 3,969.) j. Wastewater revenues were adjusted to reflect the amount needed to meet the revenue requirement calculated by me. (Adjustment 10 - $ 16,722.) The rate of return calculated by me for use in this case was 12.443. I arrived at the overall rate of return by averaging the weighted cost rate of money as follows: Weighted Cost Cost Type Ratio Rate Rate Total Common Stock Equity 15.19 15.7 2.38 Long Term Debt: Florida National dank 4.87 18.0 0.87 AVCO Financial Services 72.24 11.5 2.12 Totals 100.00 12.44 The calculated rate (12.448) was the applied to a rate basecalculatedbymetobe$217,368.exclusiveof depreciation, contributions in aid of construction (CIAc, anA depreciation calculated on CMAC but inclusive of a working capital allowance of $ 21,206. based upon the industry accepted "45 day convention". The information set out above constitutes a summary of my findings based upon my review and concludes my analysis for purposes of reporting to you. Respectfully submitted, Warren E. Silverman Certified Public Accountant Consultant to Indian River County HUTCHINSON UTILITIES, INC. REVENUE AND EXPENSES FOR THE YEAR ENDED DECEMBER 31,1983 PER CONSULTANT'S AS APPx.x apdnsT6lENTS_ MUM.&= REVENUE 16 , 7 21, (10) S2.?.?..eA51, Wastewater revenue 2205• a0. - EXPENSES Operation and Maintenance: Engineering 492.492. 15,010 Payroll -plant 15,010 2,257. Equipment rental 2,257. 15,022.. Utilities -plant 1 5,022. 6,353. Chemicals 5,353. 3,307. Plant supplies 3,337. 4,372. 4,372. Haintenanco-lines tlaintenance- 1;.ft stations GO1 4, . 4,601. 10,872. r4atnt0_n83ca-p1ant '.0.072. 2,065. ren„aro 2,065. sl(i) Jo� ccs:r, General and Administrative: 1,596. Compote: services 1596. 888. Bad dobts Advertioing 880. 91 . 91. 9,718. Off ic(. salaries 9,710. 3,969.(9) 4,442. navrol l ti;.s:33 0,411. 31, 020. (8) 25,000. O"ric:r salary 56,020. 3,984. Og,,ica sur?lics 3,904. 3,947. vohxr,1G C:;ii()nse 3,947. 7,960. 7,968. 490. 490. 626. DaQG Liconses 626. 1,325. t31c i.r i c 1,325. 2,560. 2,560. G.O'Ala telephone L-of£ees 25,201. 892.(2) 10,142. (5) 16, 031. 134. 1 -- -' -- Di::Cct:or LOcn ichargo 00 200. 200. 11645. �; elzic;lc i� eur�.!trct 1,645. 4,330. 4,300. y ourc,nau 3,331. (6) 3,493. 468. 1.899. s, . lz.'=mr: t EXHIBIT "1" t BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY RESOLUTION NO. 84-30 ORDER This matter comes before the Board of County Commissioners of Indian River County during a duly notified and published hearing and the Commission having heard testimony of all interested parties and having thoroughly reviewed and analyzed the recommendation of the County's rate consultant; now adopts the findings and conclusions as set for the in the consultant's recommendation dated April 12, 1984, and attached hereto as Exhibit "A". NOW, THEREFORE IT IS ORDERED: 1. That Hutchinson Utilities, Inc., has had tariffs in effect that are fair and reasonable. 2. That the current application for relief is hereby terminated and marked closed. 3. That the authorized rate of return or opportunity cost shall be 12.44% which includes an unweighed return on Equity Capital of 15.77. 4. That the authorized rate of return be applied to the net rate base of $217,368. Net rate base is that rate base calculated exclusive of accumulated depreciation, contributions in aid of construction and accumulated depreciation on contributions in aid of construction but inclusive of a working capital allowance. 5. That Hutchinson Utilities, Inc., is authorized to design tariffs so as to generate $222,652 in gross wastewater revenues from customers enrolled as of December 31, 1983. 6. That Hutchinson Utilities, Inc., shall be permitted to include in its allowable costs rate case expense deferred in the current case amounting to $17, 835. 7. That Hutchinson Utilities, Inc., shall be permitted to apply to the Board of County Commissioners for an amended tariff in a subsequent rate hearing and the Board shall approve a tariff which will allow Hutchinson Utilities, Inc., under efficient and economical management to meet debt servicing requirements of long term financing needed to allow the Utility to make necessary improvements to its system. ORDER ADOPTED: S/2/84 ORDER ENTERED: 5/2/84 BY THE COMMISSION, J-14 Don C. Scurlock, Jr., ChV rman l�p;u ovcd :u.;i leg y RV 6, i I [i';,udenbut Cou y AUorney i! 40 EXHIBIT "2" Original Sheet 1.0 SEWER TARIFF Hutchinson Utilities, Inc. Filed with Board of County Commissioners Indian River County, Florida Effective: August 1, 1984 Issued by: Louis P. Aiello, President ab Hutchinson Utilities, Inc. Original Sheet 2.0 Sewer Tariff TABLE OF CONTENTS Sheet No. Territory Served 3.0 Explanation of Terms 4.0 Index of Rules and Regulations 5.0 - 6.0 Rules and Regulations 7.0 - 17.0 Schedule of Rates and Charges 18.0 Effective: August 1, 1984 Issued by: Louis P. Aiello, President 40 40 •0 Hutchinson Utilities, Inc. Original Sheet 3.0 Sewer Tariff TERRITORY SERVED All that part of Indian River County, Florida, loca;.ed within the following described boundary lines, to wit: All of Government Lot 1, excepting the North 50 feet thereof, Section 27, Township 33 South, Range 110 East, and all of Government Lot 1, Section 28, Township 33 South, Range 40, East; all of Government Lot 2, Section 28 Township 33 South, Range 40 East, and all of Government Lot 2, Section 27, Township 33 South, Range 40 East: all of Government Lot 6, Section 21, Township 33 South, Range 40 East, lying Westerly of Floralton Beach Subdivision; all of Government Lot 5, Section 21, Township 33 South, Range 40 East, lying Westerly of State Road A -1-A; that part of Government Lots 2 and 3, Section 21, Township 33 South, Range 40 East, lying Westerly of State Road A -1-A; and that part of Government Lots 1 and 4, Section 21, Township 33 South, Range 40 East, lying Westerly of State Road A -1-A. Effective: August 1, 1984 Issued by: Louis P. Aiello, President 40 i ia Hutchinson Utilities, Inc Original Sheet 4.0 Sewer Tariff TECHNICAL TERMS 1.0 "Company": Hutchinson Utilities, Inc. 2.0 "Customer": Any person, firm, association, corporation, governmental agency or similar organization supplied with sewer service b y the Company, and who is liable for the payment for the sewer service. . 3.0 "Sewer Service": Sewer Service shall be construed to include, in addition to all sewer service actually received by the Customer, the readiness and abi lity on the part of the Company to furnish sewer service to the Customer. 4.0 "Customer's Installation": All pipes, fixtures, and appliances or apparatus of every kind and nature used in connection with or forming a part of an installation for sewer collection for any purpose, located on the Customer's side of Point of Collection, whether such installation is owned outright by Customer, or used by Customer under lease or otherwise. 5.0 "Point of Collection": The point where the Company's pipes are connected with pipes of the Customer, namely at the main line connection in easements, or adjacent to the Customer's property line along public rights of way. 6.0 "Main": Shall refer to a pipe, conduit, or other facility installed to convey sewer service from individual service lines or to other Mains. 7.0 "Service Line": The pipes of the Customer that connect to Company's lane (also referred to as lateral lines). 8.0 "Rates and Charges": Refers to rates and charges described in the rules and regulations and as specified in the schedule of rates and charges of this Tariff.. 9.0 "Franchise": Resolution No. 81-58 adopted by the Board of County Commissioners on August 19, 1981, as may be amended from time to time, granting to the Company the exclusive franchise, right and privilege to erect, construct, operate and maintain a sewer system within the territory described therein, (being the same territory described at Sheet 4.0 of this Tariff). Effective: August 1, 1984 Issued by: Louis P. Aiello, President lip Hutchinson Utilities, Inc. Original Sheet 5.0 Sewer Tariff INDEX OF RULES AND REGULATIONS Rule Sheet Number Number 1.0 GENERAL 7.0 2.0 APPLICATION FOR SEWER SERVICE 7.0 3:0 USE OF SERVICE AND FACILITIES 7.0 - 8.0 A. Limitation of Use 7.0 B. Resale and Sharing of Service 7.0 - 8.0 4.0 OBLIGATION OF COMPANY 8.0 5.0 LIABILITY 8.0 - 9.0 A. Liability of Company for Service Interruption, Errors, etc. 8.0 B. Liability of Customer for Loss of or Damage to Company's Property 9.0 6.0 EQUIVALENT RESIDENTIAL UNIT 9.0 - 10.0 7.0 DESCRIPTION OF CHARGES 10.0 - 11.0 A. Base Facility Charge 10.0 B. Customer Charge 10.0 C. Waste Water Treatment Charge 10.0 D. Service Connection Charge 11.0 8.0 PAYMENTS AND TERMINATION OF SERVICE 11.0 - 14.0 A. Payment of Charges 11.0 B. Late Payment charge 11.0 C. Deposits 12.0 - 13.0 D. Change of Customers Responsible for Payment of Bills 13.0 E. Termination of Service for non-payment 14.0 F. Termination of Service for Cause other than Non-payment 14.0 9.0 EXTENSION OF SEWER SERVICE 15.0 10.0 CUSTOMERS INSTALLATION 15.0 - 16.0 A. Type and Maintenance 15.0 - 16.0 B. Change of Customer's Installation 16.0 C. Inspection of Customer's Installation 16.0 Effective: August 1, 1984 Issued by: Louis P. Aiello, President db •s I Hutchinson Utilities, Inc. Original Sheet 6.0 Sewer Tariff INDEX OF RULES AND REGULATIONS (CONT) Rule Sheet Number Number 11.0 PROTECTION OF COMPANY'S PROPERTY 17.0 12.0 FRANCHISE TAX Effective: August 1, 1984 Issued by: Louis P. Aiello, President 17.0 [40 v• Hutchinson Utilities, Inc. Original Sheet 8.0 id Sewer Tariff RULES AND REGULATIONS (CONT) 3.0 USE OF SERVICE AND FACILITIES (CONT) B. Resale and Sharing of Service (Cont) In case of such unauthorized resale of service or use of facilities or sharing of service or extension of lines, the Customer's sewer service shall be subject to termination and the Customer will be required to make full payment for such unauthorized sale, sharing or extension of service or use of facilities calculated on proper classification and rate schedules and expenses incurred by the Company. 4.0 OBLIGATION OF COMPANY The Company's obligation to furnish sewer service is dependent upon its abilitv (a) to secure and retain, without unreasonable costs and expenses. suitable facilities. rights. easements. permits and privileges for the construction. operation. maintenance and expansion of the system. and (b) to secure compliance with all applicable laws, rules and regulations relative to the construction, operation, maintenance and expansion of the system. 5.0 LIABILITY A. Liability of Company for Service Interruption, Errors, Etc. The Company will at all times use reasonable diligence to provide continuous sewer service. No liability shall attach to the Company for loss or damage arising from failure or interruption of continuous sewer service, or delays of the Company, its agents, servants or employees, in the course of establishing, furnishing, rearranging, moving, repairing or changing the sewer service or facilities in the absence of gross negligence or wilful misconduct. Effective: August 1, 1984 Issued by: Louis P. Aiello, President C7l D 00 Hutchinson Utilities, Inc. Sewer Tariff Original Sheet 9.0 RULES AND REGULATIONS (CONT) 5.0 LIABILITY (CONT) B. Liability of Customer for Loss of or Damage to Company's Property In the event of any loss of damage to the property of the Company caused by or arising out of the negligence, carelessness or misuse of the facilities or service by the Customer, his agents, employees or independent contractors, the Customer is required to reimburse the Company for the amount of such loss or damage. 6.0 EQUIVALENT RESIDENTIAL UNIT Equivalent residential unit is a term used to allocate or measure the usage of sewer service in units to which the appropriate rates and charges are applied in structuring Customers' bills. Both residential and non-residential customers have their usage expressed in terms of equivalent residential units. Designation of No. of Units Equivalent Residential Units Assigned 1. Single family residence 1 2. Private dwelling with rented rooms or boarding house 1 Each room available for rent in excess of 3 rooms 1 3. Condominium apartment, owner occupied, offered for rent or vacant 1 4. School - per each 30 full time pupils and faculty or fractions thereof 1 per each part time pupils and faculty (attendance less than 3 1/2 hours) 1 5. Clubs, civic and social 1 with dining facilities 3 Effective: August 1, 1984 Issued by: Louis P. Aiello, President 40 Hutchinson Utilities, Inc. Original Sheet 10.0 Sewer Tariff RULES AND REGULATIONS (CONT) 6.0 EQUIVALENT RESIDENTIAL UNIT (CONT) Designation of No. of Units Equivalent Residential Units Assigned 6. General commercial business: per first 2,500 sq. ft. of floor area 1 per each additional 51000 sq. ft. or part thereof of floor area 1 7. Office building - per each 3,000 sq. ft. or part thereof of floor area 1 8. Warehouse - per each 5,000 sq. ft. or part thereof of floor area 1 7.0 DESCRIPTION OF CHARGES A. Base Facility Charge This is a fixed monthly charge which represents costs related to having facilities available for use or reserved capacity for Customers. It applies to each equivalent residential unit connected to the Company's sewer system and to each equivalent residential unit agreed to between the Company and the applicant to be reserved for future use in a development. L, Customer Charge This is a charge which represents costs related to billing, collections and general customer services. It applies for each month in which a monthly bill is rendered to the Customer. C. Waste Water Treatment Charge This is a charge which represents the variable costs associated with the collection and treatment of waste water and the operational processes thereof. It applies to each equivalent residential unit for each month in which the Customer is connected to the collection and treatment system. Effective: August 1, 1984 Issued by: Louis P. Aiello, President OP Hutchinson Utilities, Inc. Original Sheet 11.0 Sewer Tariff RULES AND REGULATIONS (CONT) 7.0 DESCRIPTION OF CHARGES (CONT) D. Service Connection Charge This is a non-recurring charge based on the equitable portion of the capital costs of the Company's sewer system devoted to public use imposed on each equivalent residential unit. 8.0 PAYMENTS AND TERMINATION OF SERVICE A. Payment of Charges The service connection charge specified in the Schedule of Rates and Charges must be paid in full before connection of the customer's installation to the Company's sewer system. The monthly rates specified in the Schedule of Rates and Charges are payable in advance and, except where otherwise provided in this tariff, all other charges are payable upon request of the Company. Bills are due on the due date shown on the bill and are payable at the business office of the Company, or at any other office designated by the Company. The Company reserves the right to refuse an application for service made by a present or former Customer who is indebted to the Company for sewer service previously furnished, unless the indebtedness is satisfied in full at the time the application is made. B. Late Payment Charge A Customer is in default unless payment of his bill is made on or before the due date specified on the bill. If payment is not made within 25 days of the due date shown on the bill, a late payment charge of 1-1/2% per monthly billing period will be applied to all unpaid balances including late payment charges. Effective: August, 1584 Issued by: Louis P. Aiello, President i 40 ®• Hutchinson Utilities, Inc. Original Sheet 12.0 Sewer Tariff RULES AND REGULATIONS (CONT) 8.0 PAYMENTS AND TERMINATION OF SERVICE (CONT) C. Deposits Any applicant or Customer, whose financial responsibility is not establihsed to the satisfaction of the Company, may be required to make a cash deposit to secure the payment of bills up to an amount equal to the total of the charges for service for three billing periods. The fact that a deposit has been made shall in no ,jay relieve the applicant or Customer from complying with the Tariff regulations for prompt payment of bills on presentation. Each applicant or Customer from whom a deposit is collected shall be given a certificate of deposit evidencing the deposit and containing the terms and conditions applicable to deposits. The Company will pay interest on Customer's deposit at the rate of 8% per annum. The payment of interest will be made once a year as a credit on regular bills, and on final bills when service is discontinued. No Customer depositor will receive interest on his deposit until he has received at least six months of continuous sewer service, in which case, interest will then be paid from date of the commencement of service. After a residential customer has establihsed a satisfactory payment record and has had continuous service for a period of 25 months, the Company shall refund the Customer's deposit provided the Customer has not, in the preceding 12 months, (a) made more than one late payment of the bill, (b) paid with a check refused by a bank, (c) been disconnected for non-payment, or at any time, (d) used service in a fraudulent or unauthorized manner. Nothing in this rule shall prohibit the Company from refunding a deposit in less than 25 months. Effective: August 1, 1984 Issued by: Louis P. Aiello, President 40 40 •s Hutchinson Utilities, Inc. Ora -1a -al Shut 14.0 Sewer Tariff RULES AND REGULATIONS (CONT) 8.0 PAYMENTS AND TERMINATION OF SERVICE (CONT) E. Termination of Service for Nonpayment Bills become delinquent if not paid within 25 days of the due date shown on the bill. In the event of the nonpayment of any bill rendered which has become delinquent or the nonpayment of any 7equired deposit, the Company may terminate sewer service until the bill rendered or the required deposit has been paid in full. Termination shall not be made until after five (5) days written notice has been served personally on the Customer or until after ten (10) days written notice has been mailed to the billing address of the Customer. F. Termination of Service for Cause Other Than Nonpayment Connections to the Company's sewer system for any purpose whatsoever are to be made only by qualified personnel pursuant to authorisation by the Company and in accordance with the rules and regulations of the Tariff. Unauthorized connections render the service subject to immediate termination without notice and sewer service will not be restored until such unauthorized connections have been removed and unless settlement is made in full for all sewer service estimated by the Companu to have been used by reason of such unauthorized connection. The Company shall have the right to take immediate action to terminate service and to sever connection of the Customer's pipes to the Company's pipes withoull notice to the Customer when injury of damage to the Company's personnel, plant, property or service is occurring, or is likely to occur. Service may also be terminated for violation by the Customer of any other rule or regulation set forth in the Tariff after notice in writing to the Customer and after having given the Customer an opportunity, appropriate to the circumstances involved, to respond to such notice. Effective: August 1, 1984 Issued by: Louis P. Aiello, President 40 • 66 Hutchinson Utilities, Inc. Origninal Sheet 16.0 Sewer Tariff RULES AND REGULATIONS (CONT) 10. CUSTOMERS INSTALLATION (CONT) A. Type and Maintenance (cont) his premises, and the Company shall not be responsible for their maintenance and operation. The Customer expressly agrees not to utilize and appliance or device which is not properly constructed, controlled and protected, or which may adversely affect the sewer service; and the Company reserves the right to discontinue or withhold service to such apparatus or device. B. Change of Customer's Installation No changes or increases in Customer's installation, which will materially affect the proper operation of the pipes, mains, or stations of the Company shll be made without written consent of the Company. The Customer will be liable for any change resulting from a violation of this rule. C. Inspection of Customer's Installation All Customer's sewer service installations or changes shall be inspected upon completion by competent authority to insure that Customer's piping, equipment, and devices have been installed in accordance with accepted standard practice and such local governmental or other rules as may be in effect. Where municipal or other governmental inspection is required by local rules or ordinances, the Company will not render sewer service until such inspection has been made and formal notice of approval from the inspecting authority has been received by the Company. The Company reserves the right to inspect Customer's Installation prior to rendering sewer service and from time to time thereafter, but assumes no responsibility whatsoever for any portion thereof. Effective: August 1, 1984 Issued by: Louis P. Aiello, President F�] 40 •® Hutchinson Utilities, Inc. Original Sheet 17.0 $ Sewer Tariff 5 ° RULES AND REGULATIONS (CONT) 11.0 PROTECTION OF COMPANY'S PROPERTY The Customer shall exercise reasonable diligence to protect the Company's property on the Customer's premises and shall not knowingly permit anyone other than the Company's agents, or persons authorized by law, to have access to any part of the Company's sewer facilities. 12.0 FRANCHISE TAX Any franchise tax levied upon the Company by a municipality for the sewer services to the Company's Customers shall not be incorporated in the rates and charges specified in this Tariff but shall be shown as a separate item on the Company's bill to the Customer. Effective: August 1, 1984 Issued by: Louis P. Aiello, President �� 4b b g Hutchinson Utilities, Inc. Sewer Tariff Original Sheet 18.0 SCHEDULE OF RATES AND CHARGES Monthly Rate For Each Equivalent Residential Unit Base Facility Charge $ 12.92 Waste Water Treatment Charge 11.82 For Each Customer Bill Customer Charge 1.51 Non -Recurring Charge For Each Equivalent Residential Unit Service Connection Charge $ 720.00 Effective: August 1, 1984 Issued by: Louis P. Aiello, President MIA