HomeMy WebLinkAbout1993-001 Disposal Fee ORDINANCE NO. ' —
AN ORDINANCE relating to public services and utilities, adjusting a disposal
fee for septage waste, and amending City of Yakima
Municipal Code Section 7 63 030.
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1 Section 7.63 030 of the City of Yakima Municipal Code is
hereby amended to read as follows:
"7.63.030 Disposal fee -- Payment.
A. A fee at the rate of $0 096 per gallon shall be paid to
the City by the septage hauler for septage waste disposed of at the
wastewater treatment facility
B. The amount of the disposal fee, at the rate specified
in subsection A of this section, shall be based on the capacity of
the hauling tank as certified by the Yakima County Health
District in connection with the issuance of the applicable Yakima
County Health District registration permit.
• C. The disposal fee shall be payable monthly A billing
shall be rendered monthly by the City for all disposal fees due
from septage waste haulers for the preceding month and shall be
payable thirty days from the date it is issued by the City "
Section 2 This ordinance shall be in full force and effect 30 days after
its passage, approval, and publication as provided by law and by the City
Charter �-Q�
PASSED BY THE CITY COUNCIL, signed and approved this 1 ( ' " ' day of
, 1993
go,t
ATTEST Mayor
City Clerk
Publication Date: \ - 3
Effective Date: - 9 3
411.
(ls)ord /disposal fee sc
ATTACHM';NT
I•d
• MEMORANDUM
December 4, 1992
TO Honorable Mayor, Members of City Council, and City
Manager
FROM: Chris Waarvick, Wastewater Superintendent
SUBJECT Septage Rate Recap for City Council Policy Issue
Consideration
SeDteae Rate Recap
• Presently at 4.4 cents per gallon
• Rate analysis performed in early 1992 resulted in a
calculation of 17.96 cents per gallon (mistakenly shown as
17 6 cents per gallon because of reading error)
• Re- examination of rate in early November 1992 resulted in
decrease of rate to 16.1 cents per gallon (removed debt
service component because of duplication with depreciation
component in "utility basis ")
• In preparing for the septage hauler meeting of 12/3/92, as
directed by City Council, the host recent and complete data
was used to recalculate the septage rate and resulted in a
determination of 15.6 cents per gallon.
• The 4.4 cents per gallon calculated from the Cost of
Service Study could have been approximately 13 cents per
gallon using the jtility basis calculation in conjunction with
applicable but not included "full" labor costs, and BOD and SS
treatment costs through the rest of the facility. Using
complete data from that time demonstrates the rate of return
value found in Table V -19 for septage of +2.10% to actually
be approximately -13 %. , The rate of return values for retail,
Terrace Heights, Union Gap, and Industrial Waste ranged
between -1.12% and - 5.78 %
• n it A i•n M • • - • -
1) No change in septage rates. Remain at 4.4 cents per gallon.
• Most desirable alternative to septage haulers.
• Rate would be re- examined during normal, required analysis
of all rates next summer.
• • Rate would not even return O&M cost per gallon.
• Difficulty would re- emerge when next summers rate
evaluation demonstrated the higher rate again.
septage- council
12!4192 cw 1 5
Page 1
2) Full implementation of 15 6 cent per gallon.
• Recovers cost of service using O &M, depreciation, and rate of
return
• Major increase to septage haulers and customers
• Least desirable action to septage haulers
• 1993 estimated revenues go from $130,000 to $358,000
3) Phased approached as recommended earlier and approved by
Utility Rate Advisory Board.
• Rate would go from 4.4 cents to 9.6 cents per gallon
• 1993 estimated revenues go to $221,000.
• Major increase to septage haulers and customers.
• Again, not a desirable action to septage haulers.
• Would recover O &M and some depreciation for 1993
4) Set rate to recover O &M only for 1993.
• Rate would go from 4.4 cents to 7.5 cent per gallon
• 1993 revenues would go to $172,500 for 1993
• Minimally acceptable to septage haulers
• Recovers only O &M expense
• Significant, but lesser, impact to septage haulers and
customers
The meeting with septage haulers on 12/3/92 is summarized as
follows
Areas of Agreement
• The Yakima facility has higher costs for septage treatment than
other methods because of its primary mission and design intent
(domestic waste treatment) This is evident by lower and higher
rates found in other jurisdictions.
• Other facilities which are specifically built for septage should be
considered for Yakima County.
• The County's solid waste advisory committee was presented with
a design for septage handling at a projected cost of 6 to 7 cents per
gallon This would be similar to the action taken by a private firm
in the Tri- Cities area and is now operational.
• The City of Yakima is not responsible for analysis and construction
of separate septage treatment facilities with less operating costs
• A recognition that costs are rising across the board.
• Federal and State Mandates are driving many of these increases
• The septage haulers and the City wastewater division should meet
at least once a year to discuss pertinent issues. •
• New and upcoming federal and state mandates
septage- council
12/4/92 cw
page 2 1 6
•
• Cost implications of above
• Local pretreatment issue
• Proposed fee increases
•Ensure that any rate increase does not take effect on service
provided prior to February 1, 1993. This would allow a minimally
adequate notice time for the septage pumpers to advise their
clients
Sentaae Hauler Concerns
• If rates go up people will reduce the frequency of cleaning thus
impacting the septage pumping business.
• Some pumpers have maintenance contracts. Short lead time on
increase in dumping fees would impact their business adversely
• Septage pumpers overhead costs are escalating (fees, taxes,
salaries, licenses, insurance, etc )
• The increase from 4 4 cents per gallon to 16.1 (or 15 6) is too
great a single jump to understand or accommodate
• If rates go up greatly
411 • They will go to Cheyne landfill
• If that closes they will have to come to Yakima.
• Selah may be available but rates will comparable to
Yakima's
• People will pump tanks less frequently further impacting the
ground water.
• Improvements to septage dump site and improved service issues
(these included more immediate response when they arrive at
facility and expanded hours of service).
General Considerations
• The cost of Yakima's septage service will only increase over time
• Alternatives to service at the Yakima facility should be examined
because of cost to treat issues.
• Everyone is concerned with the groundwater and upper aquifer
problems
• Onsite systems are appropriate under certain land, soil, and ground
water conditions
• Onsite systems may present problems in urban and urbanizing
areas.
• • The costs to fully sewer urbanizing areas are clearly high.
septage- council
1214192 cw
1 7