All contributing industrial users of the sewerage system shall make industrial cost recovery payments according to the following:
A. The city may permit contributing industrial users to reserve extra or additional capacity in the sewerage system for future use by the industry. Such capacity shall be reserved through formal, written agreement and shall be subject to pertinent industrial cost recovery regulations. The industrial user shall be required to pay the full industrial cost recovery allocable to the capacity reserved. In the event that the city has unused capacity in its sewerage system available for use and the said industrial user is permitted by the city to exceed its agreed upon reserved capacity, the industry shall be required to pay industrial cost recovery calculated on the full reserved capacity plus the additional industrial cost recovery for the use above the limits of the original agreed upon reserve capacity or any element thereof.
B. All contributing industrial users shall be required to pay any additional industrial cost recovery charges associated with the cost of future upgrading of the treatment works as may be required of the city to comply with discharge requirements.
C. Industrial cost recovery for expansion of the treatment works shall be required from those industries which have exceeded their reserved capacity and have been a contributing factor to the need for expansion. Industrial cost recovery payments will be required for that portion of the expanded capacity which is allocable to the industrial user's discharge. (Ord. 383, 22-4-1988)
D. The amount of payment required from an industry for industrial cost recovery is to be determined by the following procedure:
1. The value of the treatment facility shall be allocated in proportion to the benefit of the facility to each wastewater characteristic as follows:
Q = 80% of present worth value of treatment facilities
BOD = 14% of present worth value of treatment facilities
SS = 6% of present worth value of treatment facilities
The value of any future expansion, upgrading or reconstruction of the waste treatment facility shall be allocated in proportion to the benefit if the said improvement to any wastewater characteristic so benefited at that time. (Ord. 463, 5-30-2000)
2. The present worth value of the facilities at any time shall be based on the following formula:
Present Worth Value of Facilities = | Present Engineering News-Record (Const, Cost) (Const. Cost Index) (Engineering News-Record Construction Cost at Time of Construction) |
3. The total cost per unit of each characteristic shall be calculated as follows:
Q Unit Cost = | (Percent of Present Worth Value (Present Worth Value of Facilities) of Facilities Allocated to Q) (Total Design Flow of Facility in Gallons per Day) |
BOD Unit Cost = | (Percent of Present Worth Value (Present Worth Value of Fac.) of Fac. Allocated to BOD) (Total Design BOD Capability of Facility in Pounds per Day) |
SS Unit Cost = | (Percent of Present Worth Value (Present Worth Value of Facilities) of facilities Allocated to SS) (Total Design SS Capability of Facility in Pounds per Day) |
4. The cost to an industry for industrial cost recovery (ICR) is calculated as follows:
Total ICR Cost | = (Industry's Final Reserve Amount of Q) (Q Unit Cost) |
+ (Industry's Final Reserve Amount of BOD) (BOD Unit Cost) | |
+ (Industry's Final Reserve Amount of SS)(SS Unit Cost) |
The total ICR cost shall be paid back according to the following payment schedule:
a. An industry shall pay, within one month of initiation of sewage treatment service, a lump sum payment equal to the present worth value of the portion of the treatment facility that the industry is utilizing for waste treatment at the time of the agreement, according to the formulas for said payment stated hereafter.
ICR Payment (Initial Contribution) | (Industries Initial = Amount of Q) | (Q Unit Cost) |
+ (Industries Initial Amount of BOD) | (BOD Unit Cost) | |
+ (Industries Initial Amount of SS) | (SS Unit Cost) |
b. An industry may reserve a portion of the treatment facility exceeding the portion utilized for waste treatment at the time of the agreement. The ICR payments for the reserve portion of the treatment facilities shall be paid back over the period of time estimated to be necessary to utilize the full amount of the reserved portion according to the following formula:
ICR Payment (Reserve Portion) = | |
(Industries Final Reserved - Amount of Q | Industries Initial) (Q unit Cost) Amount of Q |
+ | |
(Industries Final Reserved - Amount of BOD | Industries Initial) (BOD Unit Cost) Amount of BOD |
+ | |
(Industries Final Reserved - Amount of SS | Industries Initial) (SS Unit Cost) Amount of SS |
Monthly ICR Payment = (Reserve Portion) | Total ICR Payment (Reserve Portion) (Estimated Number of Months to Reach Reserve Capacity of Sewerage System) |
The time period to reach the reserve capacity of the system is subject to negotiations, and the mayor and council reserve the right to limit the time period for utilizing the reserve capacity. ICR payments for the reserve portion of the treatment facilities shall begin within a month of the date of initiation of service by the industry of the treatment facility. (Ord. 383, 2-4-1988)
c. For small contributing industrial concerns where the city determines it is impractical to develop a monitoring program to measure wasteload discharges, industrial cost recovery payments may be made on the basis of estimated flows alone; provided, that the industry does not discharge an excessive strength waste that may disrupt the treatment process as determined by the city. The industrial cost recovery payments will be calculated on a similar basis as described herein, except, that one hundred percent (100%) of the present worth value of the facilities shall be allocated to flow. (Ord. 463, 5-30-2000)
d. All industrial cost recovery payments collected from industry and paid to the city shall be allocated according to the following:
(1) All ICR payments based on the original construction cost shall be used to pay off the bonded indebtedness.
(2) For any ICR payments based on a present worth value of the treatment facilities which is higher than the original construction cost, the amount of the payment corresponding to the original construction cost shall be used to pay off the bonded indebtedness, and any amount exceeding the portion assigned to the original construction cost shall be deposited in a sinking fund to provide for future capital improvements to the sewage treatment plant.
e. Actions for nonpayment will be in accordance with section 10-3-37 of this chapter. (Ord. 383, 2-4-1988)