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Home My WebLink About48. 12-293 MAY 22, 2012 12-293 ORDINANCE FIRST READING (CARRIED LOST LAID OVER WITHDRAWN ) PURPOSE: ESTABLISH REVISED SEWER USE CHARGES INITIATED BY: SEWER UTILITY A GENERAL ORDINANCE OF THE CITY OF OSHKOSH AMENDING SECTION 24-6.5 OF CHAPTER 24 OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO WASTEWATER SERVICE CHARGES The Common Council of the City of Oshkosh does ordain as follows: SECTION 1. That the Wastewater Service Charges, Domestic Sewage Customer Rates (formerly known as category A sewage), are hereby established as follows: Domestic Sewage Customers (formerly Category A Sewage): (BOD<250 mg/I, TSS<250 mg/I, Phos <10 mg/I, NH3-N< 25 mg/I) Quarterly Facilities Charge: Meter Size Rate 5/8 or 3/4" $19.36 1" $31.46 1-1/4" $39.93 1W $49.61 2" $72.60 2-1/2" $106.48 3" $125.84 4" $200.86 6" $389.62 8" $615.89 10" $917.18 12" $1,218.47 Volume Charge: (Based on volume) $3.29 per 100 cu.ft. Unmetered Customers: Fixed Quarterly Charge (based on 15 CCF/quarter) $68.71 MAY 22, 2012 12-293 ORDINANCE FIRST READING CONT'D Special Charges: Meter Reading & Billing Charge for non sewer deduct meters $5.00 per billing period Service Initiation Fee for meter well (sewer-only) customers: Physical meter readings & billing Same as Water Utility Non-physical meter reading & billing Same as Water Utility SECTION 2. That the Wastewater Service Charges, Non-Domestic Sewage Customer Rates (formerly known as category B sewage), are hereby established as follows: Non-Domestic Sewage Customers (formerly Category B Sewage): (BOD>250 mg/I, TSS>250 mg/I, Phos >10 mg/I, NH3-N> 25 mg/I) Quarterly Facilities Charge: Same as Domestic Sewage Customers Volume Charge: Same as Domestic Sewage Customers Surcharge per lb. Over Domestic Strength Sewage Rate B.O.D. $0.374 per lb. T.S.S. $0.290 per lb. Phosphorus $3.511 per lb. NH3-N $0.546 per lb. SECTION 3. That the Wastewater Service Charges, Septic Hauler Rates, are hereby established as follows: Tanker Truck (Septic) Haulers Fixed Charge (admin/testing) $10.00 per load Volume Charge: Holding Tank Waste $5.00 per thousand gallons (based on full capacity of truck, as reported on permit) Septic Tank Waste $68.00 per thousand gallons of waste Porta Potty Waste $40.00 per thousand gallons of waste MAY 22, 2012 12-293 ORDINANCE FIRST READING CONT'D SECTION 4. That 24-6.5(E) is repealed and recreated as follows: (E) Categories and Amounts of Service Charges (1) Domestic Domestic strength wastewater is defined as wastewater having organic concentrations of biochemical oxygen demand (BOD5) no greater than 250 milligrams per liter (mg/I), total suspended solids (TSS) no greater than 250 milligrams per liter(mg/I), phosphorus (P) no greater than 10 milligrams per liter(mg/I), and ammonia-nitrogen (NH3-N) no greater than 25 milligrams per liter (mg/I). (2) Commercial Those commercial establishments which discharge wastewater of the same pollutional strength as domestic strength wastewater will be billed at the domestic rate. Commercial firms which discharge wastewater exceeding domestic wastewater in strength will be billed at the industrial sewage rate. The decision to sample any or all of the commercial firms shall rest with the Control Authority. Should the results of the sampling program indicate the firm in question discharges wastewater with a strength equal to or less than domestic wastewater, the firm will be billed at the domestic rate and all cost of the sampling and analysis shall be borne by the firm. If the firm sampled is found to discharge wastewater greater in strength than domestic wastewater that firm shall be billed at the industrial wastewater rate and shall also defray all costs incurred in sampling and analyzing its wastewater. (3) Industrial Industries discharging wastewater into the public sanitary sewer system shall be billed in accordance with the Industrial Wastewater Service Charge if their wastewaters have net loadings greater than that of the domestic concentrations as defined in Section 24-6.6(E)(1) above. If the industrial monitoring program results indicate an industrial user charge less than a domestic user charge, the domestic amount shall be charged. The volume of flow used for computing the wastewater surcharge shall be metered water consumption as shown in records maintained by the Water Utility subject to adjustments as otherwise herein provided, or the actual volume of wastewater as determined by a waste metering installation. The volume of flow used for computing the wastewater surcharge shall be metered water consumption as shown in records maintained by the Water Utility subject to adjustments as otherwise herein provided, or the actual volume of wastewater as determined by a waste metering installation. MAY 22, 2012 12-293 ORDINANCE FIRST READING CONT'D Industrial wastewater is defined as wastewater having organic concentrations of biochemical oxygen demand (BOD5) greater than 250 milligrams per liter (mg/I), total suspended solids (TSS) greater than 250 milligrams per liter (mg/I), phosphorus (P) greater than 10 milligrams per liter (mg/I), or ammonia-nitrogen (NH3-N) greater than 25 milligrams per liter (mg/I). Industries discharging waste into the public sanitary sewer system shall be billed for all flow at the domestic wastewater, plus an additional amount for each pound of pollutant greater than that which would be contained in domestic wastewater having concentrations as defined in Section 24- 6.5(E)(1). (4) Service Charges for Domestic, Commercial and Industrial Dischargers. The rates for all wastes discharged into the public sanitary sewer system by domestic, commercial and industrial dischargers shall be established by the Common Council and may be changed by further resolution of the Common Council. All charges established pursuant to this Section shall be equitable and reasonable. A schedule of current charges shall be maintained and on file in the office of the City Clerk. (5) Septic Haulers The rates for all wastes discharged into the public sanitary sewer system by septic haulers shall be established by the Common Council and may be changed by further resolution of the Common Council. All charges established pursuant to this Section shall be equitable and reasonable. A schedule of current charges shall be maintained and on file in the office of the City Clerk. SECTION 5. This ordinance shall be in full force and effect from and after its passage and publication, and on and after July 1, 2012 SECTION 6. Publication Notice. Please take notice that the City of Oshkosh enacted ordinance #12-XXX A GENERAL ORDINANCE OF THE CITY OF OSHKOSH ESTABLISHING SEWER USER CHARGES AND REPEALING AND RECREATING SECTION 24-6.5(E) on June 12, 2012. The ordinance establishes new fees for sewer charges and allows the City to establish such fees by resolution in the future with a current schedule of fees to be kept in the office of the City Clerk. The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church Avenue and through the City's website at www.ci.oshkosh.wi.us. Clerk's phone: 920/236-5011. City of Oshkosh Finance Department 215 Church Ave.,PO Box 1130 Oshkosh,WI 54903-1130 (920)236-5080 (920)236-5039 FAX OJHKOIH ON THE WATER MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Peggy Steeno, Finance Director DATE: May 22, 2012 RE: Establish Revised Sewer Use Charges BACKGROUND As discussed during the 2012 budget workshops and in earlier 2012 communications, sewer rates need to be increased in 2012 to keep the Utility in a productive capacity, operating at a prudent level. ANALYSIS The increase is needed due to the following reasons: • Current shortage of cash to meet obligations, • Declining/Flat usage from 2007 to the present, • Moderate increase in expenses from 2007 to the present, • Large Capital Improvement Program in 2012 and beyond with regard to sewer infrastructure projects, and • Funds needed to meet bond covenant requirements with regard to debt payments (i.e. Debt Coverage). As enumerated above, the 10%rate increase is necessary to fund operations and debt service needs in 2012 and 2013. FISCAL IMPACT If approved, the impact of the increase will be approximately $475,000, one half of the increase, of additional revenues in 2012, with the remaining impact occurring in 2013. The effect of the increase on the average residential user is approximately $25.00 on an annual basis, which equates to a 10% increase. However, due to the July 1St, 2012 implementation date, the actual increase in 2012 will be approximately $12.50, or 5%. RECOMMENDATION Staff recommends that Council pass this ordinance. Respectfully Submitted, Approved: Pt-4?-/- -COY)/ 0 Peggy Steeno Mark Rohloff Finance Director City Manager FUND: SEWER UTILITY Rate Increase Projections-5-22-1212€ I '. 203f2014 BU CET 1I STi ATE ESTINIA'>E OPERATING EXPENSES Sanitary Sewer 1,368,700 1,402,900 1,438,000 Pumping Stations 611,200 626,500 642,200 Disposal Plant 2,957,400 3,031,300 3,107,100 Solid Disposal 848,900 870,100 891,900 Laboratory 98,500 101,000 103,500 Maintenance 827,700 848,400 869,600 General&Administrative 698,400 715,900 733,800 Meter Reading 498,100 510,600 523,400 TOTAL OPERATING EXPENSES 7,908,900 8,106,700 8,309,500 DEPRECIATION 2,323,500 2,381,600 2,441,100 TOTAL OPERATING EXPENSES LESS DEPRECIATION 5,585,400 5,725,100 5,868,400 DEBT SERVICE Principal Payment on Debt 3,580,595 3,595,700 3,958,000 Interest Expense 1,027,334 1,152,500 1,286,500 TOTAL DEBT SERVICE 4,607,929 4,748,200 5,244,500 TOTAL OPERATING EXPENSES LESS DEPRECIATION AND DEBT SERVICE 10,193,329 10,473,300 11,112,900 Routine Replacement and Improvements Not Bonded For 200,000 350,000 300,000 TOTAL FUNDS NEEDED FROM REVENUES 10,393,329 10,823,300 11,412,900 REVENUES Interest Income 55,000 55,000 55,000 Miscellaneous Service 18,000 18,000 18,000 Pretreatment Program 87,000 87,000 87,000 Septic Haulers 170,000 170,000 170,000 Late Charges 150,000 150,000 150,000 480,000 480,000 480,000 REVENUE REQUIRED FROM USAGE CHARGES Usage Charges 9,913,329 10,343,300 10,932,900 Revenue Projected 9,923,655 10,396,210 10,916,021 RATE INCREASE 10% 0% 10% Current Surplus/(Deficit) $10,326 $52,910 -$16,880 Assumptions: -Operating Expenses for 2013-2014 increase at a rate of 2.5% -Debt Service estimates based on 2012-2016 CIP -Rate increases take effect July 1st -Usage remains equivalent to prior year -Interest rate is 3.5%for 20 year borrowings Notes: -Sewage Service consists of volume and fixed charges billed quarterly as well as Certified'B'Billings and Saitary District Billings -2012 Estimated Sewage Service Revenue without rate increase=$9,451,100 -Previous Rate Increases: Rate Increase effective July 2007- 18.2% Rate Increase effective April 1 2011 - 10% Comparison of Existing & Proposed 'Sewer User Charge' Rates - 5-22-2012 Domestic Sewage Customers Existing New BOD<250 mg/I,TSS<250 mg/I, P<10 mg/I, NH3-N<25 mg/I): Rate Rate Quarterly Facilities Charge: Meter Size (in inches) 5/8 $17.60 $19.36 3/4 $17.60 $19.36 1 $28.60 $31.46 1-1/4 $36.30 $39.93 1-1/2 $45.10 $49.61 2 $66.00 $72.60 2-1/2 $96.80 $106.48 3 $114.40 $125.84 4 $182.60 $200.86 6 $354.20 $389.62 8 $559.90 $615.89 10 $833.80 $917.18 12 $1,107.70 $1,218.47 Volume Charge: Total Volume Based Charge $ per 100 cubic feet $2.99 $3.29 Flat Rate for Unmetered Customers New Quarterly Charge (based on 15 CCF/qtr.) $62.45 $68.71 NtiliDdeiliatit.Se Wage Gist°niers (BOD>250 mg/I,TSS>250 mg/I, P>10 mg/I, NH3-N>25 mg/I): Quarterly Facilities Charge: Same as Domestic Sewage Customers Volume Charge: Same as Domestic Sewage Customers Surcharge per lb. Over Domestic Strength Sewage: B.O.D. ($/lb.) $0.340 $0.374 T.S.S. ($/lb.) $0.264 $0.290 Phosphorus ($/lb.) $3.192 $3.511 NH3-N ($/lb.) $0.496 $0.546 :::::TANKERTRUCK.HAULERS Billing Charge (Admin./Testing) $10.00 $10.00 Volume Charge: Holding Tank Waste BOD 600 mg/I,TSS 1800 mg/I, P 30 mg/I, NH3-N 75 mg/I $/Kgal $5.00 $5.00 Septic Waste BOD 9000 mg/I,TSS 18000 mg/I, P 300 mg/I, NH3-N 150 mg/$/Kgal $68.00 $68.00 '• Reading/Billing of"Credit" Meter for"Water-Only" Usage $5.00 $5.00 Service Initiation Fee for meter well (Sewer-Only)Customers: Physical meter reading& Billing Same as Water Utility Non-physical meter reading & billing Same as Water Utility Quarterly Bill Comparison Different User Types/Sizes Existing Proposed Meter Size Usage Quarterly Quarterly Increase (in.) Customer Type / Size (CCF) Bill _ Bill Amount Change 0.750 Small Residential 8 $41.52 $45.68 $4.16 10% 0.750 Average Residential 15 $62.45 $68.71 $6.26 10% 0.750 Residential- Family of Four 25 $92.35 $101.61 $9.26 10% 0.750 Large Residential 30 $107.30 $118.06 $10.76 10% 0.750 Small Commercial 34 $119.26 $131.22 $11.96 10% 1.000 Typical Commercial 67 $228.93 $251.89 $22.96 10% 1.500 Large Commercial 201 $646.09 $710.90 $64.81 10% 1.500 Very Large Commercial 500 $1,540.10 $1,694.61 $154.51 10% 2.000 Industrial 700 $2,159.00 $2,375.60 $216.60 10% 3.000 P/A-School 400 $1,310.40 $1,441.84 $131.44 10%