Chapter 12.24
INDUSTRIAL COST RECOVERY PROGRAM

Sections:

12.24.010    Industrial user.

12.24.020    Industrial user – Exclusions.

12.24.030    Basis for rates.

12.24.040    Payment rates.

12.24.050    Expansion and upgrading of existing wastewater treatment facility.

12.24.060    Reserved capacity.

12.24.070    New industry.

12.24.080    Discontinuance of use.

12.24.090    User request or review of rate charge.

12.24.100    Provision for rate adjustments.

12.24.110    Billings.

12.24.120    Distribution of industrial user payments.

12.24.010 Industrial user.

The EPA has identified industrial users as any nongovernmental user of publicly owned treatment works identified in the Standard Industrial Classification Manual, 1972, Office of Management and Budget, as amended and supplemented, under the following divisions: “Division A – Agriculture, Forestry and Fishing”; “Division B – Mining”; “Division D – Manufacturing”; “Division E – Transportation, Communications, Electric, Gas, and Sanitary Services”; and “Division I – Services.” (Ord. 248 § 1, 1977).

12.24.020 Industrial user – Exclusions.

A user in the divisions listed in TMC 12.24.010 may be excluded as an industrial user if it is determined that it will introduce primarily segregated domestic wastes or wastes from sanitary conveniences. (Ord. 248 § 2, 1977).

12.24.030 Basis for rates.

The industrial cost recovery (ICR) rate for each industrial user shall be based on the user’s contribution to the annual wastewater loading of the treatment facilities in comparison to the annual design loading of said facilities. The design loading shall be determined as the total annual wastewater flow of 64,650,000 gallons at an organic loading not exceeding 200 mg/l. Each industrial user’s wastewater flow shall be monitored by flow meters installed at the industrial user’s expense as approved by the city council. (Ord. 248 § 3, 1977).

12.24.040 Payment rates.

A. Industrial users shall be placed on a list to be kept on file with the city clerk-treasurer. Any industrial users that fail to identify themselves will be liable for retroactive payment of assessed charges. New industrial users will be added to the list when their service begins, and the list reviewed periodically by the city as to its correctness.

B. The rates established in this chapter shall continue for 30 years beginning with the day the lagoon wastewater treatment facility is completed and put in service. The industrial user payment rate shall be $0.17 per 100 cubic feet of industrial wastewater discharged into the sanitary sewer system. This rate may be adjusted in proportion to the change in the EPA eligible grant after final adjustment and audit.

C. The industrial user payment rate shall be collected in addition to the regular sewerage rate established in previous ordinances. (Ord. 248 § 4, 1977).

12.24.050 Expansion and upgrading of existing wastewater treatment facility.

Should additional federal grants be made to expand or upgrade the wastewater treatment facilities, the city shall modify the reimbursement rate ordained in this chapter to ensure that the industrial users shall repay that portion of the grants in proportion to their share of the facility capacity. (Ord. 248 § 5, 1977).

12.24.060 Reserved capacity.

The city may permit industrial users to reserve treatment capacity through a formal written agreement. The industrial user shall be charged for the reserved capacity at the reimbursement rate as ordained above. In the event that the industrial user exceeds its reserved capacity, it shall be required to pay additional industrial cost recovery for use above the limits of the reserved capacity. An industrial user who has executed a reserve capacity agreement will not incur additional charges associated with expansion of the wastewater treatment facilities until the industrial user exceeds its reserve capacity. An industrial user with reserved capacity will be required to pay any additional industrial cost recovery charges associated with the upgrading of the treatment facilities. (Ord. 248 § 6, 1977).

12.24.070 New industry.

A new industry is one which connects to the wastewater treatment facilities after such treatment facilities have been put into service. Industrial users’ reimbursement payments shall begin on the date use is initiated and shall continue for the unexpired portion of the industrial cost recovery period or until the industry ceases use of the facility, whichever occurs first. A new industry shall be charged at the payment rate as ordained in this chapter. (Ord. 248 § 7, 1977).

12.24.080 Discontinuance of use.

If an industrial user discontinues use of the treatment facilities, including termination of any agreement for reserve capacity, its payment for industrial cost recovery will cease. Any industries continuing to use the treatment facilities shall not be required to assume payment of the industrial cost recovery unrecovered due to the departure of an industrial user. (Ord. 248 § 8, 1977).

12.24.090 User request or review of rate charge.

Any industrial user that feels the user charge is unjust and inequitable as applied to the industry within the spirit and intent of the provisions of this chapter, may make written application to the city council requesting a review of its industrial cost recovery charges. Said written request shall, where necessary, show the type, average flow, and strength of its wastewater and the reasons for requesting the review. The final determination shall be made by the city council. (Ord. 248 § 9, 1977).

12.24.100 Provision for rate adjustments.

Should the strength or delivery flow rate from the industrial users change substantially, the city shall revise the rate basis and the rates ordained in this chapter to allow an equitable readjustment of the industrial users’ charges. The rate schedule may be changed as provided in TMC 12.24.090 without the necessity of amending the ordinance codified in this chapter, and shall be the effective rate for industrial cost recovery charges thereafter. (Ord. 248 § 10, 1977).

12.24.110 Billings.

A. Industrial users will be billed on a monthly basis. For the initial year of an industry’s cost recovery period, the city council will estimate the annual industrial wastewater flow, and establish equal monthly billings as per the user payment rates ordained in TMC 12.24.040. Thirty days prior to being billed under this chapter, each industrial user will be forwarded a letter from the city indicating the estimated wastewater flow, the monthly billing amount, and the length of industrial cost recovery period. The industry will be allowed a 30-day period to contest the flow estimates; the city council shall make the final determination. At the end of the initial year, the actual annual wastewater flow and payment amount shall be computed, and any payment adjustments shall be included in the first monthly billing of the next year. Monthly billings for each year thereafter shall be based on the previous year’s wastewater flow with a year-end payment adjustment.

B. The first billing based on this chapter shall occur 30 days following the enforcement of the ordinance codified in this chapter. Billings will become delinquent at the same time and under the same circumstances as sewer service charges. (Ord. 248 § 11, 1977).

12.24.120 Distribution of industrial user payments.

A. The payments by the industrial users will be distributed as follows:

1. Fifty percent, plus all interest earned thereon, shall be returned on an annual basis to the U.S. Treasury through the Regional Office of the Environmental Protection Agency.

2. Forty percent, plus all interest earned thereon, shall be retained by the city and utilized solely for the eligible costs of reconstruction and expansion of the treatment facilities. Use of these funds shall be approved by the Regional Administrator of the Environmental Protection Agency prior to their commitment.

3. Ten percent shall be entered into the city’s general fund to be utilized at the city’s discretion.

B. All funds recovered during the annual accounting period with the exception of the 10 percent discretionary funds shall be deposited in interest-bearing accounts which are fully collateralized by obligations of the U.S. government or by obligations fully guaranteed as to principal and interest by the U.S. government or any agency thereof. (Ord. 248 § 12, 1977).