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The city shall determine which users are subject to paying the industrial cost recovery charges, in the following manner.
(A) The city shall require appropriate employees of the Wastewater Utility to review billing records and prepare a list of all potential industrial users, as identified in § 51.055.
(B) The list of all potential industrial users shall be analyzed on the basis of data available at the utility billing office (i.e. type of business, volume charges, excessive loading charges, estimated number of employees) for the purpose of developing preliminary lists of probable industrial and probable nonindustrial users.
(C) The city shall conduct an immediate survey of all probable industrial users in order to substantiate the validity of classifying a particular user as an industrial user. Each user initially classified as an industrial user shall be notified as to its classification.
(D) After completing the survey of all probable industrial users, the city shall review the list of probable nonindustrial users to determine if the initial classification of any of these users should be reconsidered. Where appropriate, individual users will be contacted in order to determine the proper classification.
(E) After an industrial user has been notified of his or her classification, the user may request reconsideration by furnishing data and measurements acceptable to the city for the determination of sewage discharges. The city shall have the right to measure and determine the strength and content of all sewage and waste discharges, either directly or indirectly into the city’s sanitary sewage system, in such manner and by such method as it may deem practicable in light of the conditions and attending circumstances of each case, in order to determine the proper user classification.
(F) Within a reasonable period of time following completion of the Wastewater Utility construction project, the city shall have completed the initial classification of all industrial users. During the first calendar year of operation subsequent to completion of the construction project, and annually thereafter, the city will review, classify, and reclassify all users as either industrial or nonindustrial users based on measurements and data obtained by the city or furnished by individual users. Normally, each user will retain his or her classification until the next succeeding classification period. However, if there is a substantial change in the strength, volume, or delivery flow rate characteristics introduced into the treatment works by an individual user, then the classification of that user may be reviewed and established during the year in light of the conditions and attending circumstances of each case.
(Ord. 1977-21, passed 11-10-1977; Ord. 2019-25, passed on 5-13-2020)
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)
The city shall account for all industrial cost recovery payments in the following manner:
(A) All revenues derived from the industrial cost recovery rates and charges shall be segregated and kept in a special fund, separate and apart from all other funds of the city. The special fund is hereby designated the “Sewage Works Industrial Cost Recovery Fund”, and payment of said amount into said fund shall be deemed a reasonable expense of operation of the Wastewater Utility for the purpose of computing net operating revenue.
(B) Within 45 days following the end of the first calendar year after completion of construction of the sewage facilities, and annually thereafter, the city shall return 50% of the amounts recovered through the industrial cost recovery charges, together with any interest earned thereon, to the U.S. Treasury. Pending use, the city shall invest the retained amounts for reconstruction and expansion in obligations of the U.S. government; obligations guaranteed as to principal and interest by the U.S. government or any agency thereof; or in accounts fully collateralized by obligations of the U.S. government or by obligations fully guaranteed as to principal and interest by the U.S. government or any agency thereof.
(C) Eighty percent of the funds retained by the city in the “Sewage Works Industrial Cost Recovery Fund” or authorized investments and the interest earned thereon shall be expended only for the purpose of eligible costs of expansion or reconstruction of the treatment works. The city shall obtain the written approval of the Regional Administrator of the U.S. Environmental Protection Agency prior to commitment of the retained amounts for any expansion and reconstruction. The remaining 20% of the funds retained by the city may be utilized for any authorized use associated with the Wastewater Utility.
(Ord. 1977-21, passed 11-10-1977; Ord. 2019-25, passed on 5-13-2020)
On request from the EPA, the city shall encourage each industrial user to permit representatives of the U.S. Environmental Protection Agency to review appropriate industrial sewage records for the purpose of independently verifying the flow and characteristics of industrial wastes which are introduced into the treatment works. No waste introduced into the wastewater treatment system shall interfere with the operation or performance of the wastewater treatment plant. All users are subject to the requirements of pretreatment standards established by federal and state law.
(Ord. 1977-21, passed 11-10-1977; Ord. 2019-25, passed on 5-13-2020)
Cross-reference:
SEWER CONNECTION COSTS
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