Subd. 1. Definitions. The following terms, as used in this section, shall have the meanings stated.
A. The term "administration" means those fixed costs attributable to administration of the wastewater treatment works (i.e., billing and associated bookkeeping and accounting costs).
B. The terms "biochemical oxygen demand" or "BOD5" mean the quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedure in five days at 20°C, expressed in milligrams per liter.
C. The term "commercial user" means any place of business which discharges sanitary waste as distinct from industrial wastewater.
D. The term "commercial wastewaters" means domestic wastewater, emanating from a place of business as distinct from industrial wastewater.
E. The term "debt service charge" means a charge levied on users of wastewater treatment facilities for the cost of repaying money bonded to construct the facilities.
F. The term "extra strength waste" means wastewater having a BOD and/or TSS greater than domestic waste as defined herein and not otherwise classified as an incompatible waste.
G. The term "governmental user" means users which are units, agencies or instrumentalities of federal, state or local government discharging normal domestic strength wastewater.
H. The term "incompatible waste" means waste that either singly or by interaction with other wastes interferes with any waste treatment process, constitutes a hazard to humans or animals, creates a public nuisance or creates any hazard in the receiving waters of the wastewater treatment works.
I. The terms "industrial users" or "industries" mean:
1. a. Entities that discharge into a publicly owned wastewater treatment works, liquid wastes resulting from the processes employed in industrial or manufacturing processes, or from the development of any natural resources. These are identified in the Standard Industrial Classification Manual, 1972, Office of Management and Budget, as amended and supplemental under one of the following divisions:
(1) Division A: Agriculture, Forestry and Fishing;
(2) Division B: Mining;
(3) Division D: Manufacturing;
(4) Division E: Transportation, Communications, Electric, Gas and Sanitary Sewers; and
(5) Division I: Services.
b. For the purpose of this definition, domestic waste shall be considered to have the following characteristics:
(1) BOD5: Less than 200 mg/l; and
(2) Suspended solids: Less than 250 mg/l.
2. Any non-governmental user of a publicly-owned treatment works which discharges wastewater to the treatment works which contains toxic pollutants or poisonous solids, liquids or gases in sufficient quantity either singly or by interaction with other wastes, to contaminate the sludge of any municipal systems, or to injure or to interfere with any sewage treatment process, or which constitutes a hazard to humans or animals, creates a public nuisance or creates any hazard in or has an adverse effect on the waters receiving any discharge from the treatment works.
J. The term "industrial wastewater" means the liquid processing wastes from an industrial manufacturing process, trade or business including, but not limited to, all Standard Industrial Classification Manual Divisions A, B, D, E and I manufacturers as distinct from domestic wastewater.
K. The term "institutional user" means users other than commercial, governmental, industrial or residential users, discharging primarily normal domestic strength wastewater (e.g. non-profit organizations).
L. The term "normal domestic strength wastewater" means wastewater that is primarily produced by residential users, with BOD5 concentrations not greater than 270 mg/l and suspended solids concentrations not greater than 250 mg/l.
M. The term "operation and maintenance" means activities required to provide for the dependable and economical functioning of the treatment works, throughout the design or useful life, whichever is longer of the treatment works and at the level of performance for which the treatment works were constructed. "Operation and maintenance" includes "replacement".
N. The term "operation and maintenance costs" means expenditures for operation and maintenance, including replacement.
O. The term "public wastewater collection system" means a system of sanitary sewers owned, maintained, operated and controlled by the city.
P. The term "replacement" means obtaining and installing equipment, accessories or appurtenances which are necessary during the design life or useful life, whichever is longer, of the treatment works to maintain the capacity and performance for which the works were designed and constructed.
Q. The term "replacement costs" means expenditures for replacement.
R. The term "residential user" means a user of the treatment facilities whose premises or building is used primarily as a residence for one or more persons, including dwelling units such as detached and semi-detached housing, apartments and mobile homes; and which discharges primarily normal domestic strength sanitary wastes.
S. The term "sanitary sewer" means a sewer intended to carry only liquid and water carried wastes from residences, commercial buildings, industrial plants and institutions, together with minor quantities of ground, storm and surface waters which are not admitted intentionally.
T. The term "sewer service charge" means the aggregate of all charges, including charges for operation, maintenance, replacement, debt service and other sewer related charges that are billed periodically to users of the city's treatment facilities.
U. The term "Sewer Service Fund" means a fund into which income from sewer service charges is deposited along with other income, including taxes intended to retire debt incurred through capital expenditure for wastewater treatment. Expenditures of the Sewer Service Fund will be for operation, maintenance and replacement costs; and to retire debt incurred through capital expenditure for wastewater treatment.
V. The term "slug" means any discharge of water or wastewater which in concentration of any given constituent or in quantity of flow exceeds for any period of duration longer than 15 minutes more than five times the average 24-hour concentration of flows during normal operation and shall adversely affect the collection system and/or performance of the wastewater treatment works.
W. The term "Standard Industrial Classification Manual" means Office of Management and Budget, 1972.
X. The terms "suspended solids (SS) or total suspended solids (TSS)" means the total suspended matter that either floats on the surface of, or is in suspension in water, wastewater or other liquids and is removable by laboratory filtering as prescribed in Standard Methods for the Examination of Water and Wastewater, latest edition, and referred to as non-filterable residue.
Y. The term "toxic pollutant" means the concentration of any pollutant or combination of pollutants as defined in standards issued pursuant to § 307(a) of the Act, being 33 U.S.C. § 1317(a), which upon exposure to or assimilation into any organism will cause adverse effects.
Z. The term "user charge" means a charge levied on users of a treatment works for the user's proportionate share of the cost of operation and maintenance, including replacement.
AA. The term "users" means those residential, commercial, governmental, institutional and industrial establishments which are connected to the public sewer collection system.
BB. The term "wastewater" means the spent water of a community, also referred to as "sewage". From the standpoint of source, it may be a combination of the liquid- and water-carried wastes from residences, commercial buildings, industrial plants and institutions, together with any ground water, surface water and storm water that may be present.
CC. The terms "wastewater treatment works" or "treatment works" means an arrangement of any devices, facilities, structures, equipment or processes owned or used by the city for the purpose of the transmission, storage, treatment, recycling and reclamation of municipal sewage, domestic sewage or industrial wastewater, or structures necessary to recycle or reuse water including interceptor sewers, outfall sewers, collection sewers, pumping, power and other equipment and their appurtenances; extensions, improvements, remodeling, additions and alterations thereof; elements essential to provide a reliable recycled water supply such as standby treatment units and clear well facilities; and any works including land which is an integral part of the treatment process or is used for ultimate disposal of residues resulting from the treatment.
DD. The term "water meter" means a water volume measuring and recording device, furnished and/or installed by a user and approved by the city.
Subd. 2. Establishment of a Sewer Service Charge System.
A. The city hereby establishes a sewer service charge system whereby all revenue collected from users of the wastewater treatment facilities will be used to affect all expenditures incurred for annual operation, maintenance and replacement and for debt service on capital expenditure incurred in constructing the wastewater treatment works.
B. Each user shall pay his, her or its proportionate share of operation, maintenance and replacement costs of the treatment works, based on the user's proportionate contribution to the total wastewater loading from all users.
C. Each user shall pay debt service charges to retire local capital costs as determined by the Council.
D. Sewer service rates and charges to users of the wastewater treatment facility shall be determined and fixed in a "sewer service charge system" developed according to the provisions of this section. Changes in sewer service rates and charges shall be adopted by Council resolution and shall be published in the local newspaper.
E. Revenues collected for sewer service shall be deposited in a separate fund known as "The Sewer Service Fund". Income from revenues collected will be expended to offset the cost of operation, maintenance and equipment replacement for the facility and to retire the debt for capital expenditure.
F. Sewer service charges and the Sewer Service Fund will be administered in accordance with the provisions of this section.
Subd. 3. Determination of Sewer Service Charges.
A. Identification.
1. Users of the wastewater treatment works shall be identified as belonging to one of the following user classes:
a. Residential;
b. Commercial;
c. Industrial; and
d. Governmental (city).
2. The allocation of users to these categories for the purpose of assessing user charges and debt service charges shall be the responsibility of the City Administrator. Allocation of users to user classes shall be based on the substantive intent of the definitions of these classes contained herein.
B. Classification. Each user shall pay operation, maintenance and replacement costs in proportion of the user's proportionate contribution of wastewater flows and loadings to the treatment plant, with the minimum rate for loading of BOD and TSS being the rate established for concentrations of 200 mg/l BOD and 250 mg/l TSS (i.e. normal domestic strength wastewater). Those industrial users discharging segregated normal domestic strength wastewater only can be classified as commercial users for the purpose of rate determination.
C. Billable wastewater volume. The charges assessed residential users and those users of other classes who discharge normal domestic strength wastewater shall be established proportionately according to billable wastewater volume. Billable wastewater volume shall be calculated as follows.
1. Residential Users. Billable wastewater volume for residential users shall be calculated on the basis of monthly metered water usage.
2. Non-Residential Users.
a. The billable wastewater volume of non-residential users will be determined in the same manner as for residential users. Except that if the city determines that there are significant seasonal variations in the metered water usage of non-residential users resulting in a proportionate increase in wastewater volume; then billable wastewater volume shall be:
(1) Calculated on the basis of average metered water usage as recorded throughout the year; and
(2) Calculated on the basis of wastewater flow meters.
b. The city may, as its discretion, require non-residential users to install such additional water meters or wastewater flow meters as may be necessary to determine billable wastewater volume.
D. Determination of User Charges. User charges for normal domestic strength users shall be determined as follows.
1. Calculations of Unit Cost for Treatment of Normal Domestic Strength Wastewater.
Uomr - | Comr |
Tbwv |
Where: Uomr = Unit cost for operation, maintenance and replacement in $/100 feet
3
.
Comr = Total Annual OM&R Costs (excluding billing and I and I).
Tbwv = Total annual billable wastewater volume in 100 ft
3
.
2. Calculations of User Charge.
Uc = (Uomr x bwv) + Qfc
Where: Uomr = Unit cost for operation, maintenance and replacement in $/100 ft
3
.
bwv = Billable wastewater volume of a particular user in kgal.
Qfc = Fixed charge per connection for I and I and billing costs per month.
E. Particular Connection. The sewer service charge for a particular connection shall be determined as follows:
SSC = Uc + Cc
Where: SSC = Sewer service charge.
Uc = User charge.
Cc = Charge per connection for debt service and capital construction costs.
F. Additional charges. The sewer service charges established in this section shall not prevent the assessment of additional charges to users who discharge wastes with concentrations greater than normal domestic strength or wastes of unusual character, or contractual agreements with the users, as long as the following conditions are met.
1. The user pays operation, maintenance and replacement costs in proportion to the user's proportionate contribution of wastewater flows and loadings to the treatment plant, and no user is charged at a rate less than that of normal domestic strength wastewater.
2. The measurements of such wastes are conducted according to the latest edition of Standard Methods for the Examination of Water and Wastewater in a manner acceptable to the city as provided for in this chapter.
3. A study of unit costs of collection and treatment processes attributable to flow, BOD, TSS and other significant loadings shall be developed for determining the proportionate allocation of costs to flows and loadings for users discharging wastes of greater than normal domestic strength or wastes of unusual character.
Subd. 4. Sewer Service Fund.
A. The city hereby establishes a Sewer Service Fund as an income fund to receive all revenues generated by the sewer service charge system, and all other income dedicated to the operation, maintenance, replacement and construction of the wastewater treatment works, including taxes, special charges, fees and assessments intended to retire construction debt.
B. The city also establishes the following accounts as income and expenditure accounts within the Sewer Service Fund:
1. Operation and Maintenance Account;
2. Equipment Replacement Account; and
3. Debt Retirement Account.
C. All revenue generated by the sewer service charge system, and all other income pertinent to the treatment system, including taxes and special assessments dedicated to retire construction debt, shall be held by the City Administrator separate and apart from all other funds of the city. Funds received by the Sewer Service Fund shall be transferred to the "Operation and Maintenance Account", the "Equipment Replacement Account" and the "Debt Retirement Account" in accordance with state and federal regulations and the provisions of this section.
D. Revenue generated by the sewer service charge system sufficient to insure adequate replacement throughout the design or useful life, whichever is longer, of the wastewater facility shall be held separate and apart in the "Equipment Replacement Account" and dedicated to affecting replacement costs. Interest income generated by the "Equipment Replacement Account" shall remain in the "Equipment Replacement Account".
E. Revenue generated by the sewer service charge system sufficient for operation and maintenance shall be held separate and apart in the "Operation and Maintenance Account".
Subd. 5. Administration. The sewer service charge system and Sewer Service Fund shall be administered according to the following provisions.
A. The City Administrator shall maintain a proper system of accounts suitable for determining the operation and maintenance, equipment replacement and debt retirement costs of the treatment works, and shall furnish the Council with an auditor's report of the costs annually in June.
1. The Council shall annually determine whether or not sufficient revenue is being generated for the effective operation, maintenance, replacement and management of the treatment works, and whether sufficient revenue is being generated for debt retirement. The Council will also determine whether the user charges are distributed proportionately to each user in accordance with this section and § 204(b)(2)(A) of the Federal Water Pollution Control Act, being 33 U.S.C. § 1284, as amended.
2. The city shall thereafter, but not later than the end of the year, reassess and as necessary revise the sewer service charge system then in use to ensure the proportionality of the user charges and to ensure the sufficiency of funds to maintain the capacity and performance to which the facilities were constructed, and to retire the construction debt.
B. In accordance with federal and state requirements, each user will be notified annually in conjunction with a regular billing of that portion of the sewer service charge attributable to operation, maintenance and replacement.
C. In accordance with federal and state requirements, the City Administrator shall be responsible for maintaining all records necessary to document compliance with the sewer service charge system adopted.
D. Bills for sewer service charges shall be rendered on a monthly basis succeeding the period for which the service was rendered and shall be due on the date of rendering. Any bill not paid in full after the due date printed on the bill will be considered delinquent. At that time, the city shall notify the delinquent owner/occupant in writing regarding the delinquent bill and subsequent penalty. The penalty shall be computed as 10% of the original bill and any bill that becomes 60 days delinquent shall, upon written notice and opportunity for hearing, be disconnected without further consideration. Service may be restored after receipt of the amount owing, plus a service charge and an additional deposit may be required.
E. Any additional costs caused by discharges to the treatment works of toxics or other incompatible wastes, including the cost of restoring wastewater treatment services, clean up and restoration of the receiving waters and environs, and sludge disposal, shall be borne by the discharger(s) of the wastes, at no expense to the city.
Subd. 6. Sewer Service Charge System Precedence. The sewer service charge system shall take precedence over any terms or conditions of agreements or contracts which are inconsistent with the requirements of § 204(b)(1)(A) of the Act, being 33 U.S.C. § 1284, and Federal Regulation 40 C.R.F. (Code of Federal Regulations) § 35.2140 of the Environmental Protection Agency's grant regulations.
(Ord. 138, Second Series, passed 7-13-1988)