78-013 ORD
ORDINANCE No. '"E:::- 13
AN ORDINANCE ESTABLISHING CHARGES FOR USERS OF THE
CITY OF ELK RIVER WASTEWATER FACILITIES
The City Council of the City of Elk River hereby ORDAINS:
Section 2:00 - City of Elk River Wastewater Disposal System Facilities
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The fees, rates and charges for using the City of Elk River Facilities shall
be, upon the conditions and in the amounts set forth in Section 2:00et seg.,
except where this Ordinance is declared inapplicable for a particular user
by a written contract providing for alternative charges between such user
and the City of Elk River.
Section 2:05 - Definitions
For the purposes of this O~ance, the following words, terms and abbreviations
shall have the mean~g set out below, unless the context specifically indicates
otherwise.
"CITY" means individually or collectively all parts and facilities of the
sewer system and wastewater treatment plant.
"BOD" (denoting biochemical oxygen demand) means the quantity of oxygen
utilized in the biochemical oxidation or organic matter in five (5) days
at 20 degrees C, expressed in milligrams per liter, as determined in
accordance with the latest edition of Standard Methods for the Examination
of Water and Wastewater.
"CAPITAL COSTS" means all reasonable and necessary costs and expenses
incurred by the City in planning designing, financing, and constructing
disposal system facilities, including but not limited to costs and
expenses for obtaining necessary permits, licenses, approvals and grants
for design and construction costs; fees for legal and consulting services;
or the acquisition of such facilities.
"COMMERCIAL USER" means all users of the system classified as industrial
users in the Standard Industrial Classification Manual, 1972, U.S. Office
of Management and Budget, as amended and supplemented under Division
A, B, C, E, and I but who are excluded from such definition for the
purposes of the Ordinance, because they discharge primarily segregated
domestic wastes, or wastes from sanitary co~veniences, except that the
classification shall not include such exempted users who are otherwise
classified in this Ordinance as Domestic Users, Governmental Users, or
institutional users.
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"CONTRACT USER" means all users who .have a written contract with the
City to use the City sewer system or City wastewater treatment plant.
"DEBT SERVICE" means the principal and interest necessary to pay bonded
indebtedness.
"DEBT SERVICE CHARGE" means the charge related to the principal and
interest necessary to pay bonded indebtedness of facilities owned or
operated by the City. The debt service charge includes a "debt
service connection charge" and a "debt service user charge".
"DOMESTIC USER" means those establishments of which its related
occupations, if any, are usually considered a domestic service and
whose discharge consists solely of sanitary wastes.
"FLOW" means the quantity of sewage expressed in gallons or cubic feet
per twenty-four (24) hours.
"GENERAL MUNICIPAL FLOW" means the total sewage flow discharged to
the Treatment Facilities, minus the flows from industrial users,
other municipalities, and contract users and therefor includes
sanitary wastes and infiltration.
General municipal flow, based on the design of the wastewater treatment
facilities, is further defined as flows containing 5-day BOD concentrations
not greater than 200 mg/l and suspended solids concentrations no
greater than 225 mg/l.
"GENERAL MUNICUAL USER" means any user discharging sewage to the
general municipal flow other than industrial users, municipalities
and other contract users1
Thts category of user includes as sub-categories:
Domestic Users
Commercial Users
Institutional Users
Governmental Users, which are not contract users.
"GOVERNMENTAL USER" includes those establishments who!;le function is
the administration and/or execution of governmental programs as well
as the offices of executives, legislative bodies and agencies which
provide general support services for government.
"INDUSTRIAL USER" means any non-governmental user of the Wastewater
Treatment Facilities identified in the Federal Standard Industrial
Classifications Manual, 1972, Office of Management and Budget, as
amended and supplemented under the following divisions.
Cat Agriculture, Forestry, and Fishing
(b t Mining
(c} Manufacturing
(d). Transportation, Communication, Electric, Gas and Sanitary Services
(e t Se;r:vices
A user in the divisions listed may be excluded and treated as a commercial
user if the City of Elk River determines it will primarily introduce
domestic wastes or wastes from sanitary conveniences.
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The BOD and suspended solids loads from Industrial Users will be
based on the actual concentrations of those constituents, except
that for industrial users with sewage containing BOD and suspended
solids concentrations less than the concentrations as defined for
General Municipal Flow, the charges shall be based on concentrations
as defined for General Municipal Flow.
Industrial users shall be subject to the Industrial Cost Recovery
System (ICRS).
"INDUSTRIAL COST RECOVERY CHARGES" (ICRC) means the charge levied
upon each industrial user of the City facilities as payment for the
users' share of the total amount of grants received by the City and
related to Title II of the Federal Water Pollution Control Act
Amendments of 1972 (P.L. 92-500, 33 U.S.C. 1251 et seq.).
"INSTITUTIONAL USER" means those establishments engaged in activities
of a non-economic nature, frequently being the performance of services
classified as a governmental or commercial user in this ordinance.
"LOAD" means quantities of sewage characteristics such as BOD, SS' and
other constituents as expressed in milligrams per liter (mg/l) or pounds
per twenty-four (24) hours (lbs/24 hours).
"OPERATION AND MAINTENANCE COSTS" (O&M Costs) means the expenses related
to the costs of the operation, maintenance, replacement and administration
of the City facilities.
"REPLACEMENT COSTS" means costs related to the expenditures for obtaining'
and installing equipment, accessories, or appurtenances which are necessary
to maintain the capacity and performance during the service life of the
City facilities for which such facilities were designed and constructed.
The term "Operat!on and Maintenance" includes replacement.
"SANITARY WASTES" means the liquid and water carried wastes discharged
from sanitary plumbing facilities.
"SEWAGE" means the liquid carried waste products from whatever source
derived, together with such ground water infiltration and surface water
as may be present.
"SEWERII means a pipe or conduit for carrying sewage, industrial waste and
other waste liquids.
"SEWER SERVICE CHARGE" means the aggregate of all the charges including
the user charges, debt service charges, industrial cost recovery charges
and other sewer related charges that are billed periodically to users of
the City facilities.
"SEWER SYSTEM" means pipeliners or conduits, pumping stations, forcemains,
and all other devices and appliances appurtenant thereto, used for
collecting or conducting sewage.
"SlGNU'ICANT INDUSTRIAL USER" means any industrial user who discharges
sewage which constitutes greater than ten percent (10%) of the design
flow or design pollutant loading of the wastewater treatment plant.
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"ss" (denoting Total Suspended Solids) means solids that either
float on the surface of, or are in suspension in water,. sewage,
or other liquids and which are removable by laboratory filtering,
in accordance with the latest edition of Standard Methods for the
examination of water and wastewater.
"USER" means any person, or, corporation, or'other entity, whether
municipal or otherwise, discharging sewage into the City disposal
system facilities.
"USER CHARGE" means a charge levied on users of City facilities for
the cost of operation and maintenance of such facilities.
"WASTEWATER TREATMENT PLANT" means any facility, appurtenant structures,
or arrangement of devices used for the treatment of sewage.
Section 2:10 - General
It is the purpose of this Ordinance to recover from 'Users' of the City
facilities, on an equitable basis, the share of the City facilities' costs
attributable to such users, and to provide funds for the operation and
maintenance, debt service, replacement and improvements of the City.
. 1. The 'User' charges provided for in this section are hereby
levied and assessed upon each lodge, parcel of land, building or
premises having any connection with, or discharging either directly
or indirectly into the sewer system.
2. The City Council shall annually determine and fix the unit costs
for use of the City treatment facilities on the basis of flow,
BOD, 58, and any other pollutants, taking into consideration the
cost of treatment of such sewage, and may increase or decrease such
unit cost as often and in such amounts as may reasonably be required
to accomplish the purposes of this section.
3. The Citr shall compute the amount due the City for sewer use charges
and render a statement thereof, at periodic intervals, as directed
by the Citr Council to the owner or occupant of any premises using
the City facilities. All amounts due hereunder shall be payable
at the o;ffice 0;1; the City Clerk or other designated locations.
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4. The City Clerk shall in August of each year provide to the City
Council an internal audit report that will address specific areas
of concern including: The need to generate sufficient revenue through
'User' charges to cover total O&M costs; the necessity of maintaining
a proportionate system of user charges pursuant to 40 CFR 35.935-13 (b);
the need to review the replacement account to determine its proper
level of funding; and a review of the ICRC to assure that each
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construct City facilities for industrial waste treatment.
industrial user pays its share of the federal grant amount
Section 2:15 - Charges, A Lien
Each charge levied pursuant to this section shall be a lien against the
property, and all such charges due on September 30 of each year, more than
thirty (30) days past due, and having been properly mailed to the occupant
or owner of the premises, shall be certified by the City Council to the County
Auditor, shall specify the amount thereof, the description of the premises, the
name of the owner thereof, and the amount so certified shall be expended upon
the tax rolls against such premises in the same manner as other taxes, and
collected by the County Treasurer and paid to the City along with other taxes.
Section 2:20 - Civil Action
Any charges levied pursuant to this section, and which have been properly sent
to the occupant or owner and not paid, may be recovered in a civil action by
the City in any court of competent jurisdiction.
Section 2:25 - Funds from Sewer Service Charges
The funds received from the collection of the charges authorized by this
Ordinance shall be deposited as collected in the City Wastewater Treatment
System Operating Fund and shall be used for the operation, maintenance,
debt service, replacement, and improvements of the City sewer system, except
that the portion of any such funds which is limited to a particular use by
applicable State or ;Federal rules or regulations, shall be used in compliance
with such restrictions.
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Section 2:30 - Unit Cost Categories
The cost to be recovered pursuant to this Ordinance and the unit cost
to be fixed by the City Council in Section 2:10, paragraph 2 shall be
determined and allocated in each of the following categories:
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"Category A" - Debt Service For Wastewater Treatment Facilities.
This shall be the amount of the annual interest and principal cost
necessary to retire the bond issued to pay for the local share of
said project cost.
"Category B" - Operation and Maintenance -- City Wastewat~r Treatment
Plant and Sewer System.
This shall be the annual cost of operating and maintaining the City
wastewater treatment plant and sewer system facilities, including an
amount for replacement costs of personal property, which shall be
segregated in a separate fund.
"CategorY C" - Industrial Cost Recovery Charge.
This shall be the portion of the cost of the City Facilties attributable
to industrial users, which was defrayed by Federal Grant and which must
be recovered pursuant to Section 204 (b) 'of the Federal Water Pollution
Control Act in accordance with the United States Environmental Protection
Agency User Charges and Industrial Cost Recovery Regulation as published
in the February 11, 1974, Federal Register (40 CFR Part 35) as amended
and supplemented.
Each year during the industrial cost recovery period each industrial
user of the City facilities shall pay its share of the'total amount of
any Environmental Protection Agency grant that is related to the
construction of C:;i..ty facilities for industrial waste treatment.
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The base amount associated with Category C cost recovery calculations
shall be 75 percent of the eligible project cost d.ivided by appropriate
recovery period which shall be equal to 30 years or the useful life of
the City facilities, whichever is less.
ICRC payments shall be made by industrial users no less than annually.
The industrial users shall be based on all factors which significantly
influence the cost of the City's facilities. Factors such as strength,
volume and delivery flow rate characteristics shall be considered and
included to insure a proportional distribution of the grant assistance
allocable to industrial use to all industrial users of the facilities.
As a minimum, an industries payments shall be proprotional to its flow,
in relation to the City facilities flow capacity. In the event of a
substantial change in the strength, volume or delivery flow rate
introduced into the City facilities by an industrial user, such user's
share shall be adjusted accordingly. An industrial user's share shall
not include an interest component.
The City shall retain 50% of the amounts recovered from industrial users.
The remainde~, together with any interest earned thereon shall be returned
to the U.S. Treasury on an annual basis.
A minimum of 80% of the obtained amounts together with the interest
thereon shall be used solely for the expansion and reconstruction of
City facilities associated with the project and necessary to meet the
~equirements of the Federal Water Pollution Control Act Amendments of
1~72. The City shall obtain the written approval of the EPA Regional
Administrator prior to. commitment of the retained amount for any
expansion and reconstruction. The remainder of the ~etained amounts
may be used as the City sees fit.
Section 2:35 - Industrial Charges and Industrial Cost Recovery Charges
1. The industrial charges for debt service for the City project
(2:30 - Category A) shall be determined as follows:
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Unit costs for Flow and BOD shall be calculated by apportioning
the debt service cost associated with that year to 50% Flow and
50% to BOD and then dividing each cos-t so apportioned by the
total estimated billable Flow and BOD to be received at the
Wastewater Treatment Plant in that year.
Industrial Debt Service charges shall be the sum of the products
obtained by multiplying the unit cost as determined above by the
user's actual Flow and BOD during the billing period.
2. The industrial user charges for operation and maintenance of the
City facilities (2:30 - Category B) shall be determined as follows:
Unit cost for Flow and BOD shall be calculated by apportioning
the Category B cost each to Flow and BOD and then dividing each
cost so apportioned by the total estimated billable Flow and BOD
to be received at the Wastewater Treatment Plant in that year.
Industrial User charges shall be the sum of the products obtained
by multiplying the unit costs as determined above by the user's
actual Flow and BOD during the billing period with general
municipal flow strength sewage as a minimum.
3. The Industrial Cost Recovery Charge (2:30 - Category C) shall be
determined as follows:
Annual grant amount for Flow and BOD shall be calculated by
apportioning the Category C base 50 percent to Flow and 50
percent to BOD.
The total Industrial Cost Recovery amount shall be calculated
as follows: The total actual daily Flow and BOD from all
industries for the billing period shall be summated and divided
by the design Flow and BOD respectively to calculate percent of
plant utilized by industry.
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Industrial user cost recovery amounts shall be the sum of the
products obtained by multiplying the annual grant amount as
determined above by the percentage of Industrial Flow and BOD
during the billing period.
To calculate industrial unit cost recovery charges, divide the
recoverable amounts calculated above by the total industrial
Flow and BOD for the billing period.
The cost recovery charges to the individual industries shall be
calculated by multiplying the unit cost as determined above by
the industrial users actual Flow and BOD.
4. In addition to the charges provided for herein, the City may
impose a surcharge on any industrial user based on some other
pollutant loading factor which requires special treatment at
the Wastewater Treatment Plant.
Section 2:4Q - Measurements of Strength and Volume
1. When required by the City, each industrial user shall install
suitable measuring, sampling and analyzing devices.
2. The City shall not require installation of such devices where
the City determines that such industrial user has concentrations
of BOD, no greater than the concentration of such constituents
in the general municipal flow and a satisfactory method and
access exist for sampling and determining the total daily sewage
flow. In such cases, the charges to those industrial users shall
be based on the flow rate as determined and on BOD loads equal to
the average load of the general municipal flow.
3. Each industrial user required by the City to install and maintain
sewerage monitoring facilities shall submit to the City a monthly
report of daily flow and BOD on a form approved by the City.
This report shall be used for billing purposes and shall be
submitted prior to the 15th day of the subsequent month.
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4. The City shall have the right to periodically or continuously
inspect the monitoring facilities, to measure, sample and
analyze the user's flow and to analyze the samples obtained by
the industrial user.
In the event of any discrepancy between the flows or loads
determined by the City and the industrial user, the values
determined by the City shall be used for billing purposes.
Section 2:50 _ Charges for General Users - Domestic, Commercial," Institutional
and Government Users
1. The category B charge, user charge for operation and maintenance
shall be based on water meter records for the first quarter of
each year. The amount of Category B revenues that the City
determines is necessary for the annual operation" and maintenance
of the treatment facilities less the user fees collected from
other municipalities, contract users, and industrial users, this
diffe~ence divided by the total volume of water metered by
general users in the first quarter of the year shall be the
cost factor for the user charge. The cost factor for the user
charge multiplied by the user's water consumption volume as
determined by water meter readings in the first quarter of the
year shall be the annual user charge for the user.
2. The Category A cost, Debt Service for Wastewater Treatment
Facilities, shall be recovered by (1) a debt service connection
charge assessed against new building units and (~) a debt service
user charge based on water meter records for the first quarter of
\
each year.
The Debt Service Connection Charge is to be paid at the time at
which a building permit or a sewer connection permit is issued for
all buildings to be constructed or connected to the sewer system
on or after the effective date of this ordinance. No charge
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shall be due upon the issuance of a connection permit if
a charge was paid upon issuance of a building permit. The
debt service connection charge for each building or structure
shall be equal to the number of units of sewage volume which
will discharge multiplied by $500.00. A unit of sewage volume
shall be 100,000 gallons per year and shall be assigned as
follows:
Standard Sewage Volume Units For Various Residential Dwellings
Single famiiy houses, townhouses, and duplex units
1. 0 Unit
Condominiums and apartment units
0.8 Unit
Mobile Homes
0.8 Unit
Public Housing units subsidized under any Federal
program for low and moderate income housing
0.8 Unit
Standard Sewage Volume Units for Various Commercial, Public and
Instituional Facilities
Facility Description
Parameter Units
Automobile Service
2 Service Bays 1.0 Unit
Banquet Room
1000 Square Feet 1.0 Unit
Barber Shop
Each 1.0 Unit
Boarding House
5 Beds 1.0 Unit
Bowling Alley
3 Alleys 1.0 Unit
Car Wash - Self Service
1 Stall 3.0 Unit
Car Wash - Service Station
Each 4.0 Unit
Churches
250 Seats 1.0 Unit
Fast Service Restaurant
20 Seats 1.0 Unit
General Office Building
2000 Square Feet 1.0 Unit
Hospitals
1 Bed 1.0 Unit
Laundromats
4 Washing Machines 1.0 Unit
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Motels & Hotels
2 Rooms 1.0 Unit
Nursing Home
3 Beds 1.0 Unit
Restaurant, Drive-In
10 Parking Spaces 1.0 Unit
3"?(Q 0
l (0 3'0
.
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The number of standard sewage volume units for a facility not
included in the above list shall be determined by the City Council.
A request for determination should be made prior to the issuance
of a Building Permit.
a. All building permits issued by the City for alterations and/or
additions to existing buildings or structures will be subject
to a revised Category A debt service connection charge if
the addition or alteration will increase wastewater discharge.
The number of equivalent residential units will be determ{ned
in the same manner as above described.
b. The Debt Service User Charge shall be based on water meter
records for the first quarter of each year. The amount of
Category A revenues that the City determines is necessary
fo~ annual debt retirement, less the revenues collected from
the Category A debt service connection charge and revenues
collected as debt service charges from other municipalities,
contract userS, and industrial users shall be the amount of
revenues to be collected from the debt service user charge.
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This amount of revenue divided by the total volume of water
meter by general users in the first quarter of the year shall
be the cost factor for the debt service user charge. The
cost factor for the debt service user charge multiplied by
the user's water consumption volume as determined by water
meter readings in the first quarter of the year shall be the
annual user charge for the user.
Section 2:55 - Effective Date
This Ordinance shall be in full force and effect from and after this ~ day
of
l\~~
, 1978'.
A.'rTEST:
4('-;Yi~
Robert 'Co Hidclaugh
City Administrator
/ <l111l'~
4Mt1U1/t<j
Frank Hadsen, Hayor
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