(A) An effluent reuse end user fee schedule shall be adopted whereby rates are developed to pay for the capital construction, operation and maintenance of the effluent reuse system. Said fee schedule shall constitute the user charge system.
(1) The capital cost of the effluent reuse system shall include the necessary components of the system to provide treatment, storage, pumping and transmission of the reclaimed water. This includes debt service on capital debt incurred to finance system construction.
(2) The operating cost of the effluent reuse system shall include power costs for pumping facilities, chemical costs for disinfection, maintenance costs to keep the system in working order, and administrative and direct employee costs to operate the effluent reuse system daily.
(3) The effluent reuse end user fee schedule shall generate sufficient revenues to provide for payment of debt service, operation, and maintenance expenses.
(4) The use of reclaimed water shall be determined by a flowmeter installed at each effluent reuse end user site. This meter shall be used to determine the charge to the user.
(5) Reclaimed water usage charges shall be based on the actual gallonage used by the effluent reuse end user regardless of the user class and shall provide for no user volume discounts.
(6) A surcharge shall be developed for effluent reuse end users, where applicable, to repay State Revolving Fund indebtedness incurred by the city on behalf of the user to install or construct capital facilities on the user's property. Such surcharge shall be stated within the reclaimed water agreement executed between the city and the end user.
(7) The effluent reuse end user fee schedule shall be reviewed annually, or sooner as determined by the city, to determine the adequacy of the fee schedule in satisfying effluent reuse system debt servicing and operating expenses.
(8) Should it be determined that an increase in user charges is necessary, the city shall properly notify all effluent reuse end users of the proposed change.
(9) All revenues received for the effluent reuse system shall be deposited in the Effluent Reuse Enterprise Fund.
(10) One-tenth of all revenues received shall be deposited in the Effluent Reuse System Renewal, Replacement and Improvement sub-account maintained under the Effluent Reuse Enterprise Fund.
(B) The city prepared a dedicated revenue plan identifying the following sources of revenue to offset expenses of the effluent reuse system.
(1) Gallonage charge.
(a) The actual usage of reclaimed water shall be based on the gallons used as determined by a meter installed at the effluent reuse end user's facility. The meter shall be utilized to determine the charge to the end user.
(b) If a reclaimed water agreement exists between the city and the effluent reuse end user, the daily volume of reclaimed water reserved for the user shall determine the minimum daily charge. The minimum volume billed shall be calculated by multiplying the daily volume reservation by the number of days in the billing cycle.
(c) An effluent reuse end user who shall use reclaimed water shall pay for such service, in addition to the surcharge noted in division (A)(6) above, at the rate of $0.10 per 1,000 gallons of reclaimed water. No volume discounts shall apply.
(2) Water treatment plant operating budget line item expense. The water treatment plant shall have an operating budget line item expense of $146,000 annually as a contribution to the effluent reuse system. Deductions shall be made on a monthly basis. This expense is based on 4,000,000 gallons of raw water conserved per day by effluent reuse.
(3) Wastewater treatment plant operating budget line item expense. The wastewater treatment plant shall have an operating budget line item expense of $962,957 annually as a contribution to the effluent reuse system. Deductions shall be made on a monthly basis. This expense is based on the provision of alternative effluent disposal for 4,000,000 gallons of effluent per day.
(Ord. O-94-09, passed 3-2-94)