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Home My WebLink AboutApproving a Contract Bureau of Water and McCullough & Associates $14,157.24ORDINANCE No. 5677 -74 Passed by the Common Council of the City of South Bend, MAY 28, IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, w*j Clerk of Common Council Clerk IRENE K. GAMMON Approved and signed by me Z�� ORDINANCE NO. 5677 -74 AN ORDINANCE APPROVING A CONTRACT BETWEEN THE BUREAU OF WATER OF THE CITY OF SOUTH BEND, INDIANA, AND McCULLOUGH & ASSOCIATES PUBLIC ACCOUNTANTS, INDIANAPOLIS, INDIANA, FOR VARIOUS ACCOUNTING AND FINANCIAL SERVICES RENDERED AND FEES AND EXPENSES INCURRED PURSUANT TO EMPLOYMENT AGREEMENT WITH THE CITY DATED FEBRUARY 20, 1973, IN THE TOTAL AMOUNT OF $14,157.24. BE IT ORDAINED by the Common Council of the City of South Bend, Indiana: SECTION I. That the contract entered into between the Bureau of Water of South Bend, Indiana, and McCullough & Associates Public Accountants, Indianapolis, Indiana, for various professional accounting and financial services rendered, and fees and expenses incurred pursuant to their employment agreement with the city dated February 20, 1973, time and expenses from February 20, 1973, through February 25, 1974, required in the operation of said Bureau of Water in the total amount of $14,157.24, is hereby approved and confirmed. SECTION II. effect from and after its approval by the Mayor and requirements. This ordinance shall be in full force and passage by the Common Council, its the fulfillment of all statutory Passed May 28, 1974, as amended. Tommittrr Irport 110 t4e Tommon Toum -d of t4f TUH of #01d4 Brad: Your Committee of the Whole to whom was referred AN ORDINANCE APPROVING A CONTRACT BETWEEN THE BUREAU OF WATER OF THE CITY OF SOUTH BEND, INDIANA, AND McCULLOUGH & ASSOCIATES PUBLIC ACCOUNTANTS, INDIANAPOLIS, INDIANA, FOR VARIOUS ACCOUNTING AND FINANCIAL SERVICES RENDERED AND FEES AND EXPENSES INCURRED PURSUANT TO EMPLOYMENT AGREEMENT WITH THE CITY DATED FEBRUARY 20, 1973, IN THE TOTAL AMOUNT OF $14,157.24. Respectfully report that they have examined the matter and that in their opinion the Ordinance should go to the Council as favorable, as amended below: Section II to read: This ordinance shall be in full force and effect from and after its passage by the Common Council, its approval by the Mayor and the fulfill- ment of all statutory requirements. Odell Newburn Chairman vn.. •.... rasa sx�xo co. CITY OF SOUTH BEND Jerry J. Miller Mayor Rollin E. Farrand Director of Public Works SOUTH BEND WATER WORKS 224 North Main Street Paul E. Krueper, Jr. Manager MQ''IORANDUM: FROM: PAUL E. KRUEPER, JR. TO: MMERS OF THE OWN COUNCIL SUBJECT: PROFESSIONAL SERVICES RENDERED MAY 8, 1974 THE BUREAU OF WATER IS PRESENTING AN ORDINANCE TO THE COMMON COUNCIL WHICH WILL APPROVE A CONTRACT FOR VARIOUS ACCOUNTING AND FINANCIAL SERVICES RENDERED AND FEES AND EXPENSES ENTERED INTO BETWEEN THE BUREAU OF WATER AND MCCULLOUGH & ASSOCIATES PUBLIC ACCOUNTANTS, OF INDIANAPOLIS, INDIANA PURSUANT TO THEIR EMPLOYMENT AGREEMENT WITH THE CITY DATED FEBRUARY 20. 1973. TOTAL NET AMOUNT OF THESE VARIOUS ACCOUNTING AMID FINANCIAL SERVICES RENDERED AND FEES AND EXPENSES IS $14. 157.24. THIS CONTRACT BEING PURSUANT TO APPROVAL BY THE PUBLIC SERVICE COMMISSION OF INDIANA OF CAUSE A33394 ESTABLISHING INCREASED RATES AND CHARGES FOR THE CITY OF SOUTH BEND MUNICIPAL WATER UTILITY. rMPAUL L. ., \ UL U BUREZOF WATER ENCLOSURE 1150 North Shadeland Avenue • Indianapolis, Indiana 46219 • 317 -359 -5273 A'. February 27 , - -974 , Board of Water Works Commissioners County -City Building South Bend, Indiana Pursuant to approval by the Public Service Commission of Indiana of Cause #33394 establishing increased rates and charges for the City of South Bend Municipal Water Utility, we are herein rendering our statement of accounting and financial services rendered and fees and expenses incurred pursuant to our employment agreement with the City dated February 20, 1973.' This statement represents total billing of time and expenses from February 20, 1973 through February 25, 1974, the date of approval of the rate increase by the Public Service Commission of Indiana. Services rendered included: various accounting and financial studies deemed necessary' to' establish the pro forma revenue requirements of the Municipal WaterlUtility including operating expenses, debt service on outstanding revenue bonds,'and depreciation including a management improvement program, and to recommend a new schedule of water rates and charges.established to provide revenues sufficient to -fund the revenue requirements;,preparation and presentation to the Board of Water Works Commissioners a Preliminary,Rate and Financial Report based on a water cut -off date of.June 30, 1973, disclosing findings and recommendations based on the aforementioned studies; . additional necessary accounting and financial studies to update the financial data through September 30, 1973, the accounting cut -off date established by the Public Service Commission for the hearing•on'Cause #33394; preparation of a Rate and Financial Report used as an exhibit in the Public Service Commission hearing and testimony. thereon; preparation of the technical portions of the rate ordinance; reconciliation of accounts receivable balances; preparation and filing with the Public Service Commission an itemized statement showing the disposition of proceeds from the Water- works Revenue Bonds of 1966 including (a) detailed explanation of all debits and credits to the Construction Fund, (b) Engineer's detail of final cost of each contract - by units installed in accordance with the contract, (c) itemization of cost of work done with materials purchased by the Municipal Water Utility, and (d) detail listing of non- construction costs;,reconciliation of Municipal Sewage Works and Trash Removal revenue transfer accounts with accounts receivable; review of Balance Sheet accounts and providing certain year end adjusting entries; consultations with and attendance at meetings with City officials and staff members and certain governing bodies, legal counsel, staff accountants at the .State Board of Accounts and Public Service Commission ' staff, and other time and expenses pertaining to the project. Board of Water Works Commissioners County -City Building South Bend, Indiana - 2 - February 27, 1974 The following fees and expenses were incurred for the above services: Rate and Financial Studies (through 6 -30 -73 accounting cut -off) Staff Accountants (3 persons) 64 days @ $125 per day $ 8,000.00 Mileage out of the Indianapolis office 2,192 miles @ 120 per mile 263.04 Reconciliation of Accounts Receivable Balances Staff Accountant (1 person) 6 -1/4 days @ $125 per day 781.25 Mileage out of Indianapolis office 274 miles @ 12¢ per mile 32.88 Rate and Financial Studies (for 9 -30 -73 accounting cut -off) and preparation of Financial Exhibit for P.S.C.I. hearing Staff Accountants (3 persons) 40 -1/2 days @ $125 5,062.50 ' Mileage out of Indianapolis office 3,246 miles @ 12¢ per mile 389.52 Pre hearing conferences, preparation for and testimony at P.S.C.I. hearing, Reconciliation of Revenue transfer accounts and closing entries Staff Accountant (1 person) 20 -1/4 days @ $125 per.day 2,531.25 Mileage out of Indianapolis office 1,094 miles @ 120 per mile 131.28 Sustenance, lodging and other out of pocket expenses 2 -20 -73 to 2 -25 -74 965.52 Total $18,157..24 Less - Fees and Expenses paid to date (4,000.00) Total $14,157.24 McCULLOUGH & ASSOCIATES Edward W. 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