§ 50.35. Industrial cost recovery.

A.

The city establishes an industrial cost recovery system as required by the United States Environmental Protection Agency and in accordance with Federal Regulation 40 CFR 35.928. The purpose of the industrial cost recovery system is to recover from industrial users all federal funds that are used to construct sewage treatment facilities that serve the industrial user class.

1.

A special industrial cost recovery fund is established and all industrial cost recovery amounts collected by the city shall be deposited and maintained in this special fund. Payments for industrial cost recovery shall be made by industrial users no less often than annually. The first payment by an industrial user shall be made not later than one year after such user begins use of the treatment works.

2.

An industrial user's share shall be based on all factors which significantly influence the cost of the treatment works. 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 treatment works. As a minimum, an industry's share shall be proportional to its flow, in relation to treatment works flow capacity.

3.

If there is a substantial change in the strength, volume, or delivery flow rate characteristics introduced into the treatment works by an industrial user, such user's share shall be adjusted accordingly.

4.

If there is an expansion or upgrading of the treatment works, each existing industrial user's share shall be adjusted accordingly.

5.

An industrial user's share shall include only that portion of the grant assistance allocable to its use or to capacity firmly committed for its use.

6.

An industrial user's share shall not include an interest component.

7.

The city shall retain fifty percent of the amounts recovered from industrial users. The remainder, together with any interest earned thereon, shall be returned to the U.S. Treasury on an annual basis. A minimum of eighty percent of the retained amounts, together with interest earned thereon, shall be used solely for the allowable costs of the expansion or reconstruction of treatment works.

8.

The city shall obtain the written approval of the U.S. Environmental Protection Agency Regional Administrator prior to commitment of the retained amounts for any expansion and reconstruction. The remainder of the retained amounts may be used as Council shall determine.

B.

The industrial cost recovery rates for all grants subject to industrial cost recovery regulations that have been awarded or pending award as of January 1, 1978 are as follows:

(1)	Total Recovery Amount	I.C.R. Unit Charge	I.C.R. Rate Per Unit of Billed Discharge at Assigned Loadings
			$/1000 Gal.	$/100 Cu. Ft.
Volume:
Faye Road Interceptor Grant #C390640	$ 214,499	$ .00191/1000 gal.	$ .0019	$ .0014
Stage I Improvements:
Phase I—Grant # _______	79,261	.00071/1000 gal.	.0007	.0005
Phase II—Grant # _______	383,732	.00342/1000 gal.	.0034	.0026
			.0060	.0045
B.O.D.:
Stage I Improvements:
Phase I—Grant # _______	1,111,463	.0023/lb.	.0086	.0065
Phase II—Grant # _______	974,733	.0021/lb.	.0079	.0059
			.0165	.0124
Suspended solids:
Stage I Improvements:
Phase I—Grant # _______	562,917	.009/lb.	.0053	.0040
	3,326,605		.0278	.0209

 

2.

The exact procedure used to compute the industrial cost recovery payments for the existing industrial users and a method of accounting for such payments is shown in detail in a report prepared for the city and titled User Charges and Industrial Cost Recovery dated along with all other industrial cost recovery documents for the duration of the industrial cost recovery period.

(Ord. 1014-1977)