(a) Application. There is hereby levied upon each industrial user of the treatment works, a separate and distinct charge for the use of such facilities. The industrial cost recovery charge shall be applied to each and every industrial premises discharging either directly or indirectly into the sewage system except as provided for herein.
(b) Industrial Cost Recovery Charges.
(1) “Industrial cost recovery” means the charge levied upon each industrial user of the treatment works to recover that portion of federal grant moneys used in the construction of wastewater facilities devoted to the collection and treatment of industrial wastes.
(2) Industrial cost recovery charges shall be in compliance with Federal Regulations 40CFR 35.928, as amended or supplemented.
(c) Industrial Cost Recovery Period.
(1) The industrial cost recovery period refers to that period during which the grant amount allocable to the treatment of wastes from industrial users is recovered from industrial users of the treatment works.
(2) The industrial cost recovery period shall commence upon the first day of operation of any treatment works construction project which has been financed in whole or in part by a federal grant.
(3) The industrial cost recovery period shall be equal to thirty years or the useful life of the treatment works, whichever is less, as determined by the City.
(d) Industrial User; Exceptions. For the purpose of charges for industrial cost recovery, an "industrial user" shall be as defined in Section 931.01
(i), subject to the following additional exceptions:
Pursuant to Section 24 of the Clean Water Act of 1977, industrial users discharging the equivalent of 25,000 gallons of sanitary waste per day, or less, or a volume of process waste, or combined process and sanitary waste, if the discharge does not contain pollutants which interfere or are incompatible with, or contaminate or reduce the utility of sludge as determined by the City, are exempt from charges for industrial cost recovery.
(e) Basis of Charges.
(1) Each industrial user's charge for industrial cost recovery shall be based upon all factors which influence the capital costs of the treatment works.
(2) As a minimum, an industrial user's charge for industrial cost recovery shall not be less than that as determined by its flow versus the design flow capacity of the treatment works for which industrial cost recovery is required.
(3) If there is a substantial change in the strength, volume or delivery flow rate characteristics introduced into the treatment works by an industrial user, such user's share shall be adjusted accordingly.
(4) If there is an expansion or upgrading of the treatment works, such expansion or upgrading being financed in whole or in part by federal grant moneys, each industrial user's share shall be adjusted accordingly.
(5) An industrial user's share shall include only that portion of the grant assistance allocable to its use or to capacity firmly committed for its use.
(6) Should an industrial user discontinue use of the system, its cost recovery payments shall cease.
(7) An industrial user's share shall not include an interest component.
(8) An allowance shall be made for the discharge of sanitary wastes by employees of the industry. Such allowance shall be determined by the City and deducted from cost recovery charges.
(f) Payment Dates.
(1) Charges for industrial cost recovery shall be made on or before January 30 each year during the cost recovery period.
(2) In lieu of regular billings, an industrial user may elect to make a single lump sum payment, the amount of which shall be determined by the City. However, this provision shall not preclude the subsequent revision of the industrial user's obligation should its discharge characteristics change, or should there be an expansion or upgrading of the treatment works which is financed in whole or in part by federal grant moneys.
(g) Schedule of Industrial Cost Recovery Charges.
ICR cost per unit of volume = | $0.063/ 1,000 gallons |
ICR cost per pound of BOD = | $0.029/pound |
ICR cost per pound of SS = | $0.003/pound |
(h) Industrial Cost Recovery Fund.
(1) There is hereby created an Industrial Cost Recovery Fund, the purpose of which is to receive and administer industrial cost recovery collections pursuant to this chapter and subject to the following stipulations:
(2) Recovered amounts shall be credited to an "ICR Collections" income account.
(3) Recovered amounts shall be summarized daily along with any interest earned on invested funds.
(4) Cash received shall be promptly invested or deposited in federally insured or guaranteed interest-bearing accounts or obligations. In no case shall a cash balance in excess of one thousand dollars ($1,000) remain uninvested for more than five working days.
(5) An investment ledger shall be maintained and shall denote the following information:
A. Date of transaction;
B. Amount invested or deposited;
C. Description and type of investment;
D. Date of maturity;
E. Amount available for reinvestment at maturity; and
F. U.S. EPA grant number.
(6) Immediately following the close of the annual accounting period, total annual industrial cost recovery collections and investment income shall be determined and summarized.
(7) No later than four months following the close of the accounting period, fifty percent (50%) of all collections made during the period, together with any interest earned thereon, shall be remitted to the U.S. EPA.
(8) The remaining fifty percent (50%) of the annual industrial cost recovery collections and associated investment income shall be retained by the City and shall be subject to the following stipulations:
A. Eighty percent (80%) of the retained amounts shall be reinvested and held for future renovation, replacement or expansion of "grant eligible treatment works" as defined by 40 CFR 35.941-1. Prior to the obligation of any portion of these funds for any purpose, the City shall obtain written approval from U.S. EPA.
B. The remaining twenty percent (20%) shall be used at the City's discretion, provided, however, that no portion thereof shall be used for the construction or operation of industrial pretreatment facilities, as rebates to industrial users, or for any purpose which would result in a direct subsidy of one user by another.
(Ord. 18(80-81). Passed 8-25-80.)