There is hereby imposed upon the owners and upon the users of each industrially classified property served by the sewer system an annual industrial cost recovery assessment for the use thereof, subject to the following rules, regulations and limitations.
(A) Industrial cost recovery will be administered in accordance with the Federal Water Pollution Control Act Amendments of 1972 and in accord with the environmental protection agency guidelines.
(B) Industrial users shall be as defined under the Standard Industrial Classification Manual, Divisions A, B, D, E and I.
(C) Users that introduce primarily domestic wastes or wastes from sanitary conveniences are not required to pay an industrial cost recovery assessment.
(D) Industrially classified users which discharge less than 25,000 gpd of industrial process flows shall be exempt from industrial cost recovery.
(E) Industrially classified users shall pay an assessment equal to the amount of the federal grant allocable to the treatment of industrial waste flow according to the formula as established herein.
(F) As a minimum, an industrially classified user’s assessment shall be based on sewage flow as a percentage of treatment work capacity.
(G) If there is a substantial change in the volume introduced into the treatment works by an industrially classified user, such user’s assessment shall be adjusted accordingly.
(H) If there is an expansion of the treatment works capacity, each existing industrially classified user’s assessment shall be adjusted as required to maintain proportionality.
(I) A “significant” industrially classified user is one who will contribute greater than 10% of the treatment works capacity. A letter of agreement must be executed between the grantee and the significant user.
(J) An industrially classified user’s assessment shall include any firm commitment to the grantee of increased use by such user.
(K) An industrially classified user’s assessment shall not include any portion of the federal grant amount allocable to unused or unreserved capacity.
(L) An industrially classified user’s share shall not include an interest component.
(M) Assessment will begin at the commencement of operation of treatment works during which the federal grant amount is applied. Each industrially classified user will pay its share of the applicable federal grant amount divided by the recovery period of 30 years, or the service life of the treatment works, whichever is less.
(N) Industrial cost recovery payments by a new industry shall begin on the date use in initiated and shall continue for the unexpired portion of the industrial cost recovery period or until the industry ceases use of the facility, whichever occurs first. Discontinuance of use of treatment works by an industrial user (including termination of any agreement for reserve capacity) will nullify the requirement of an industrial cost recovery payment from that user. There is no requirement for other industries presently using the treatment works to assume that portion of industrial cost recovery which is unrecovered due to the departure of an industrial user.
(O) Sewer users shall have the right to appear before the appropriate governmental entity to appeal user charge and industrial cost recovery charges. If the grievance is not satisfied, the matter may be turned over to a “Hearing Board” for arbitration. The Hearing Board shall be the final arbitrator for grievances regarding user charge and industrial cost recovery systems interpretation and execution. The cost of the arbitration by the Hearing Board shall be borne by the sewer system which provides wastewater collection service to the sewer user. One member of the Board shall be a registered professional engineer; one member shall be a practicing sanitary engineer; one member shall be a member of industry or manufacturing enterprise; one member shall be a lawyer; and one member shall be selected at large for his or her interest in accomplishing the objectives of the user charge and industrial cost recovery systems.
(P) Not later than 30 days after the industrial cost recovery period begins, the Board will establish the accounting period for the industrial cost recovery system and will notify the regional administrator in writing, of the date of this implementation of the industrial cost recovery system. The first payment to the Board by the industrial users shall be made not later than one year after the beginning of the industrial cost recovery period.
(Q) The Board shall retain 50% of the amounts recovered from industrially classified users. The remainder, together with any interest earned thereon, shall be returned to the U.S. Treasury on an annual basis. A minimum of 80% of the retained amounts, together with the interest earned thereon, shall be used solely for the allowable costs of the expansion or reconstruction of treatment works associated with the project and as necessary to meet the requirements of the act. The Board shall obtain the written approval of the regional administrator of EPA prior to commitment of the retained amounts for any expansion and reconstruction. The remainder of the retained amounts may be used as the Board desires. Pending use, the Board shall invest the retained amounts for reconstruction and expansion in: obligations of the U.S. government; or obligations guaranteed as to principal and interest by the U.S. government or any agency thereof; or shall deposit such amounts in accounts fully collateralized by obligations fully guaranteed as to principal and interest by the U.S. government, or any agency thereof.
(R) Illustration of cost computation.
METHOD OF CALCULATION FOR ANNUAL
INDUSTRIAL COST RECOVERY ASSESSMENT
1. Federal grant
Design capacity = Cost per gallon
2. Cost per gallon x waste load
service life = Annual assessment
Where Federal grant represents the eligible federal share of the project costs.
Where Design capacity represents the treatment capacity of the wastewater plant in gallons per day as established.
Where Cost per gallon represents the cost per gallon as applied to the federal grant.
Where Waste load represents the wastewater load applicable to the individual industrially classified user as complied on a daily basis (excluding the quantity of domestic waste calculated for employee use).
EXAMPLE OF ASSESSMENT CALCULATIONS
FOR INDUSTRIAL COST RECOVERY
Given: 1. Ajax Mfg. Co. - 25,000* gallons (daily industrial process waste load which excludes the quantity of domestic waste calculated for employee use).
2. Total average daily design flow of the grant eligible items - 1,200,000 gallons.
3. Federal grant amount - $1,000,000.
4. Assumed life of the project - 30 years.
1,000,000
1,200,000 gallons = $0.83 cost per gallon
$0.83 x 25,000 = $20,750 total assessment.
$20,750
30-year service life = $692 annual assessment
*This calculation assumes no changes in waste load over the 30-year usable life of the project.
(Ord. 1-84, passed 8-23-1984)