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HomeMy WebLinkAbout9639-05 Amend Chapter 17 - Sewage RatesORDINANCE No. s Passed by the Common Council of the Ciry of South Bend, Indiana November 28, 20 05 Attest: City Clerk Attest: JOHN Presented by me to the Mayor of the Ciry of South Bend, Indiana November 29, 05 20 President of Common Council City Clerk JOHN Approved and signed by me r~ o v e m b e r 2 9, 20 0 5 ,yr.~-~ ~!' Mme. ORDINANCE NO. l ~ 3~'~~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING CHAPTER 17, ARTICLE 2, DIVISION 4, SECTIONS 17-20, 17-21,17-23 AND 17-25 OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST REGULAR SEWAGE RATES AND HEAVY DEMAND SURCHARGE RATES AND TO CLARIFY OTHER CODE PROVISIONS STATEMENT OF PURPOSE AND INTENT The City of South Bend last adjusted rates for its sewer utility customers in 2003 (Ordinance No. 9442-03), while recognizing that another sewer rate adjustment would be required in 2006. Since Ordinance No. 9442-03 was enacted, a utility advisory committee was formed and has met regularly to study the needs and demands of South Bend's sewer utility and to consider the revenue required to satisfy the utility's operational and environmental requirements. The rates set forth in this ordinance are just and equitable fees which will enable the South Bend sewage works to maintain its facilities in sound physical and financial condition in order to render adequate and sufficient service to its customers as required by Indiana Code § 36-9-23-25. This ordinance also eliminates the three classes of utility users previously designated in South Bend Municipal Code § 17-20 and it alters the process for redetermining future rates. The terms of this ordinance are in the best interests of the City of South Bend. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND as follows: Section I. Chapter 17, Article 2, Division 4, Section 17-20 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17-20. Rates established. Every person whose premises are served by said sewage works shall be charged for the service provided. These charges are established , in order that the sewage works shall recove , ,revenue which is proportional to its use of the treatment works in terms of volume and load. User charges are levied to defray the cost of operation and maintenance (including replacement) of the treatment works. . {~j User charges are subject to the rules and regulations adopted by the U.S. Environmental Protection Agency published in the Federal Register February 17,1984 (40 C.F.R. 35.2140). Replacement costs, which are recovered through the system of user charges, shall be based upon the expected useful life of the sewage works equipment. €slletvs:- -- ~ > Section II. Chapter 17, Article 2, Division 4, Section 17-21 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17-21. Sewage rates determination. (a) Generally. For the use of the service rendered by sewage works, rates and charges shall be collected from the owners of each and every lot, parcel or real estate or building that is connected with the City sanitary system or otherwise discharges sanitary sewage, industrial wastes, water or other liquids, either directly or indirectly, into the sanitary sewage system of the City of South Bend. Such rates and charges include user charges, debt service costs, excessive strength surcharges and other service charges, which rates and charges shall be payable as hereinafter provided. (b) .Schedule of Rates and Charges (1) The sewage rates and charges shall be based on the quantity of water used on or in the property or premises subject to such rates and charges as the same is measured by the water meter there in use, plus a base charge based on the size of water meter installed, except as herein otherwise provided. For the purpose of billing and collecting the charges for sewage service, the water meters shall be read monthly and the users shall be billed each month (or period equaling a month). The water usage schedule on which the amount of said rates and charges shall be determined is as follows: Schedule of Rates and Charges 2963r~2694 X695 2006 2007 2008 2009 Metered Rates (per 100 cubic feet) ~~ X97 1.25 1.44 1.60 1.74 Base Monthly Charge 5/8 inch meter $9-89 $i$z9 13.27 15.26 16.94 18.46 3/4 inch meter ~)• $i3:$~ 17.89 20.57 22.83 24.88 1 inch meter $~5-'~ $239 30.57 35.16 39.03 42.54 1 1/2 inch meter $59~i5 ~~ 68.60 78.89 87.57 95.45 2 inch meter $$5~ $9:69 116.99 134.54 149.34 162.78 3 inch meter 6 x&7$2 267.06 307.12 340.90 371.58 4 inch meter X359:36 $3x57:$2 474.49 545.66 605.68 660.19 6 inch meter $7$x:39 $$232 1 062.34 1 221.69 1 356.08 1 478.13 8 inch meter $397:4$ ~fr'~:3~ 1 892.88 2 176.81 2 416.26 2 633.72 10 inch meter ~rz 179:92 ~z''-~8$-9~ 2 952.71 3 395.62 3 769.14 4 108.36 12 inch meter $39:92 $397:97 4 254.38 4 892.54 5 430.72 5 919.48 Unmetered Monthly Rate Per Single Family Residential Dwelling Unit $~6~3 $~6~ 21.98 25.28 28.06 30.59 (2) For the service rendered to the City of South Bend said City shall be subject to the same rates and charges established in harmony therewith. (3) In order to recover the cost of monitoring industrial wastes, the City shall charge the user not less than $100.00 per sampling event plus the actual cost for collecting and analyzing the sample(s) as determined by the City or by an independent laboratory. This charge will be reviewed on the same basis as all other rates and charges in this ordinance. (c) .Former Wholesale Users. (1) Billing for sewage services to previously designated Class II wholesale users shall be in accordance with the executed intermunicipal contract for wastewater treatment services, . such contracts shall not be extended after their expiration dates due to elimination of the wholesale class of users. This shall not affect authority to enter special rate contracts as provided in Section 17-29 of this Chapter. Section III. Chapter 17, Article 2, Division 4, Section 17-23 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17-23. Heavy demand surcharge. (a) In order that the rates and charges may be justly and equitably adjusted to the service rendered to users, the City shall base its charges not only on the volume, but also on strength and character of the stronger- than-normal domestic sewage and wastes which it is required to treat and dispose of. The City shall require the user to determine the strength and content of all sewage and wastes discharged, either directly or indirectly into the sanitary sewage system, in such manner, by such method and at such times as the City may deem practicable in light of the conditions and attending circumstances of the case, in order to determine the proper charge. The user shall furnish a central sampling point available to the City at all times. (b) Normal sewage domestic waste strength should not exceed ammonia-nitrogen in excess of twenty-five (25) milligrams per liter of fluid, suspended solids in excess of two hundred fifty (250) milligrams per liter of fluid, biochemical oxygen demand in excess of two hundred fifty (250) milligrams per liter of fluid, or phosphorus in excess of ten (10) milligrams per liter of fluid. Additional charges for treating stronger-than- normal domestic waste shall be made on the following basis: €h~i~- Excess Strength of Waste Surcharces 2006 2007 2008 2009 - Suspended Solids (Per Pound) 0.097 0.112 0.124 0.135 Concentration Limit 250 mc/1) -Biochemical Oxygen Demand (Per Pound) 0.129 0.148 0.164 0.179 (Concentration Limit 250 mc/1) - Ammonia Nitrogen (Per Pound) 0.671 0.772 0.857 0.934 oncentration Limit 25 mg/1) - Phosphorous (Per Pound) 1.144 1.316 1.461 1.592 (Concentration Limit 10 m~/1) (c) The determination of suspended solids, biochemical oxygen demand, ammonia-nitrogen, phosphorus, ammonia and COD contained in the waste shall be in accordance with the latest copy of "Standard Methods for the Examination of Water and Wastewater," as written by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation, and in accordance with "Guidelines Establishing Test Procedures for Analysis of Pollutants," 40 C.F.R. Part 136. (d) If the City and the user can agree upon the relationship between BOD and COD, then COD may be used for calculating the BOD surcharge. Section IV. Chapter 17, Article 2, Division 4, Section 17-25 of the South Bend Municipal Code be and hereby is amended to read as follows: Section 17-25 Review of rate schedule. {~ The sewage rates and charges set forth in the preceding section 17-21 shall be revised and adjusted for calendar year 2966 2010 to assure adequacy in the cost of maintaining the City sewer works in sound physical and financial condition necessary to render adequate and effective service. However, until such adjustment, the sewage rates and charges in the preceding Section 17-21 shall remain in full force and effect. Discussions between the City Administration and the Common Council concerning sewer rates for 2966 2010 and thereafter shall commence by June 2695 2009. , .The Mayor and Common Council retain ultimate authority and responsibility for the operations and finances of the Municipal Utilities. Section V. This Ordinance shall be in full force and effect from and after adoption by the Common Council and approval by the Mayor. ~~ Member, South Bend Co on Council Att erk Presented by me to the Mayor of the City of South Bend, Indiana on the ~~ day of ti~~~ , 2 U~~ , at Z`•'tS" o'clock ~. m. .-~ ~~~: ~ City Clerk Approved and signed by me on the- ~Lday of ~~ , 2~~ ~ at ~ •~~~ o'clock ~. m. 1st READING ~6 -\O~G~ PUBLIC HEARING ~ ~~ ~ ~ `~~ 3rd READING ~ `, L,$: OS•- NOT APPROVED REFERRED PASSED ~ `~J~~OS~ ,ice; •~- Mayor, City of So ~~_ ~I~£''~ i't ~IE'1'~'~ ()~~ICB nn~ ~rT - 5 2.,,.;~ ....~;~urf V~'OR~E CITY Ci."r,~:. E0. gE~_ TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 72-05 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDINGOHAPTER 17, ARTICLE 2, DIVISION 4, SECTIONS 17- 20, 17-21, 17-23 AND 17-25 OF THE SOUTH BEND MUNICIPAL CODE TO ADJUST REGULAR SEWAGE RATES AND HEAVY DEMAND SURCHARGE RATES AND TO CLARIFY OTHER CODE PROVISIONS Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Roland Kelly Chairman 1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 CITY OF SOITfH BEND STEPHEN J. LiIECKE, MAYOR DEPARTMENT OF PUBLIC WORKS GARY A. GILOT, P.E. DIRECTOR OF PUBLIC WORKS October 4, 2005 Mrs. Charlotte D. Pfeifer President, Common Council Of the City of South Bend 400 County City Building South Bend, Indiana 46601 PHONE 574/ 235-9251 FAx 574/235-9171 TDD 574/ 235-5567 Re: Ordinance Amending Chapter 17, Article Two, Division 4, Section 17-21 of the South Bend Municipal Code Regarding The Determination of Sewage Rates. Dear Mrs. Pfeifer: Enclosed is a copy of a proposed ordinance relating to rate increases for Sewage Works. The purpose of the increase is to allow the Sewage Works Utility to meet its on-going and future revenue needs. Dollars paid into this fund cover the operation, maintenance, debt service, and capital expenses of the Bureau of Sewers and the Bureau of Wastewater. South Bend has invested a great deal in early action projects over the last 15 years. This is acknowledged by IDEM and EPA and yet they are pressing South Bend and other cities with combined sewers to implement long term control plans that take it to the next level in achieving the goals of the Clean Water Act. This will mean the largest environmental infrastructure investment program in the history of this commllnit}' and will begin a phased and prioritized effort that will span the next two decades. We will focus first on relief for neighborhoods with chronic sewage backup issues during heavy rains. We will also focus first on the most cost effective means of reducing large volume overflows of sewage to the St. Joseph River. The vast majority of the rate increases are for capital expenditures for these projects which we will detail in our presentation. As we capture and treat more stormwater and sewage, we will also see upward pressure on operation and maintenance expense reflected in the rates over the next four years. A Rate and Financing Report was performed by Crowe, Chizek and Company LLP, and acts as support for the increase. The rates as proposed are "across the board" increases to all of our customers. The increases will affect both the flow and the fixed meter portions of our rate equation. It will also increase the "Extra Strength Surcharges" charged to customers who discharge waste that is above "normal" strength. ENGINEERING ENVIRONMENTAL SERVICES CENTRAL SERVICES STREETS WATER WORKS CARL LITTRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI SAM HENSLEY JOHN F. STANCATI 574/235-9251 574/277-8515 574/235-9316 574/235-9244 574/235-9322 Fax 574/235-9171 FAx 574/277-8980 Fax 574/235-9007 Fax 574/235-9272 Fax 574/235-9728 The proposed increases call fora 29% increase in 2006, a 15% increase in 2007, an 11% increase in 2008, and a 9% increase in 2009. As way of example, a current discharger of 5,000 gallons per month would incur a charge of $16.77 in 2005, $21.62 in 2006, $24.88 in 2007, $27.63 in 2008, and $30.08 in 2009. We anticipate similar rate increases by many communities in Indiana as we all address the reduction of wet weather sewer overflows as mandated by EPA and IDEM. The enclosed proposed Ordinance is submitted with the request that it be heard on first reading at the Common Council meeting to be held on Monday, October 10, 2005. After the Council's first reading of this proposed Ordinance on October 10, 2005, we request that second reading and public hearing be deferred to the Council's meeting on Monday, November 14, 2005. This will provide more time to properly notify outside city customers of the proposed rate changes as required by Ind. Code Section 36-9-23-26. (Note, however, there is no proposed surcharge for customers outside city limits.) Gary Gilot and I will make the formal presentation at the public hearings pertaining to the proposed Ordinance. Should you have any questions, please do not hesitate to call. Sincerely, ~~.~.~ti~ John J. Dillon, Ph.D. Director, Division of Environmental Services Enclosure cc: Mayor Stephen Luecke Aladean M. DeRose, Chief City Attorney t=iter In ~terk's ©fflce ~rT - r~ 2~~,5 CiT`! Ct~'tC, SQ. FEND, IN.