The basis for the industrial cost recovery rates and charges included in § 51.122 of this subchapter are as follows.
(A) Total estimated federal grant amount to be awarded for the construction of the waste treatment facilities under Project Number C-180502 amounts to approximately $726,975.
(B) The assignment of treatment facilities cost to flow and loadings is in accordance with EPA suggestions, where unit process cost studies are not undertaken. The percentage of cost identified with the various treatment facilities are as follows:
(1) Treatment of waste volume: 40%;
(2) Treatment of suspended solids: 30%; and
(3) Treatment of BOD: 30%.
(C) The design capacity of the treatment plant is as follows:
(1) Flow: average daily flow of 180,000 gallons × 365 days = 65.7 mg average annual design flow capacity;
(2) Suspended solids: design capacity of 250 (mg/l) × annual flow capacity 65.7 mg × weight will result in 136,870 pounds average annual design capacity; and
(3) BOD: design capacity 250 mg/l × annual flow capacity 65.7 mg × weight will result in 136,870 pounds average annual design capacity.
(D) The industrial cost recovery period will be 30 years.
(E) The average annual basis for the cost recovery charge will amount to $24,232 ($726,975 federal grant, divided by 30 years recovery period).
(F) The total annual basis for the cost recovery charge allocated to treatment functions is as follows:
(1) Treatment of waste volume ($24,232 × 40%): $9,692;
(2) Treatment of suspended solids ($24,232 × 30%): $7,270; and
(3) Treatment of BOD ($24,232 × 30%): $7,270.
(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 $9,692 divided by annual capacity 65.7 mg equals $0.15 per 1,000 gallons;
(2) Treatment of suspended solids: annual functional cost $7,270 divided by annual capacity 136,870 pounds equals $0.05 per pound; and
(3) Treatment of biochemical oxygen demand: annual functional cost $7,270 divided by annual capacity 136,870 pounds equals $0.05 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 requirement, and provided that the treatment plant was operated at 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.
(I) The above industrial cost recovery charges do not include any interest component.
(J) An industrial user who discontinues use of the treatment works is not subject to industrial cost recovery payments, beyond the period of use.
(K) Industrial users who commence to use the treatment works at some future date are not subject to industrial cost recovery charges before the period of use.
(1995 Code, § 51.108) (Ord. 2-1976, passed 3-18-1976)