The basis for the industrial cost recovery rates and charges included in § 51.056 are as follows.
(A) Total estimated federal grant amount to be awarded for the plant improvements and interceptor sewers under Project Number C-180611 is approximately $4,040,000.
(B) The consulting engineers estimate that an equitable distribution on a percentage basis of the total cost of construction and equipment included in the treatment plant project would be as follows:
Treatment of B.O.D. | 26% |
Treatment of sanitary waste flow | 49% |
Treatment of suspended solids | 25% |
(C) The design capacity of the treatment plant is as follows:
(1) Flow: annual design flow capacity of 1,168 M.G.;
(2) Suspended solids: design capacity 240 mg/1, times annual flow capacity 1168 M.G., times weight will result in 2,335,907 pounds average annual design capacity; and
(3) Biochemical oxygen demand: design capacity 204 mg/l times annual flow capacity 1168 M.G., times weight will result in 1,985,521 pounds average annual design capacity.
(D) Industrial cost recovery period will be 30 years.
(E) Average annual basis for the cost recovery charge will amount to $134,667 ($4,040,000 federal grant divided by 30-years recovery period) for treatment.
(F) The annual basis for the cost recovery charge allocated to treatment functions is as follows:
Treatment of waste volume |
($134,667 x 49%) = $65,987 |
Treatment of suspended solids |
($134,667 x 25%) = $33,667 |
Treatment of B.O.D. |
($134,667 x 26%) = $35,013 |
(G) The industrial cost recovery rates for the treatment charges are computed on the basis of the annual functional costs of treatment divided by average annual design capacity in the following manner:
(1) Treatment of waste volume. Annual functional cost of $65,987 divided by annual capacity of 1,168 M.G. equals $.0565 per 1000 gallons;
(2) Treatment of suspended solids. Annual functional cost of $33,667 divided by annual capacity of 2,335,907 pounds equals $.015 per pound; and
(3) Treatment of biochemical oxygen demand. Annual functional cost of $35,013 divided by annual capacity of 1,985,521 pounds equals $.018 per pound.
(H) The rates computed in division (G) above would result in total recovery of the federal grant amount if all users were subject to the industrial cost recovery requirements, and provided that the treatment plant was used to capacity during the cost recovery period. Therefore, these rates will ensure that each industrial user will pay only that portion of the federal grant amount applicable to the costs of the treatment facilities actually utilized to treat industrial wastes, as determined by each industrial user’s flow and pollutant loadings.
(Ord. 1977-21, passed 11-10-1977)