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HomeMy WebLinkAbout1999-047 1999 Wastewater rate adjustment (to cover litigation costs of wastewater odor complaints) { ORDINANCE NO. 99.. 47 AN ORDINANCE relating to wastewater rates, fees, and charges; increasing various wastewater rates, fees, and charges; amending Sections 7.60.020, 7.60.025, 7.60.035, 7.60.040, 7.60.105; and providing for related matters. WHEREAS, the City of Yakima (the "City ") is authorized by RCW Title 35 to acquire, construct, own, operate, and provide financing for waterworks and systems of sewerage, and to establish rates, fees, and charges therefor; and WHEREAS, the City Council determines that it is in the best interests of the citizens of the City that ordinances related to such systems of sewerage, wastewater rates, fees, charges, and related matters be amended as set forth in this Ordinance; and WHEREAS, the City Council determines that the rates, fees, and charges contained in this Ordinance are fair, just, and reasonable; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 7.60.020 of thel Code is hereby amended to read as follows: 7.60.020 Owner (inside city) retail wastewater service charge. A. Wastewater Service Charge. There shall be charged to and collected from all premises within the city served by the city wastewater system a wastewater service charge composed of a ready -to -serve charge and a volume charge based on domestic water consumption; PROVIDED that in no event shall the total wastewater service charged be less than the minimum charge indicated below: Minimum charge effective '' Minimum charge effective March 24 1997 January 1 1998 January 1, 1998 December 31, 1999 $ 7.55 $7.78 /month $ 7.78 $8.17 /month (1) Wastewater Service Charge -- Schedules. The wastewater service charge shall be calculated and charged according to the following schedules: (a) Ready -to -Serve Charges. For all customers other than multiple -unit residential customers: • Water Charges effective Charges effective March 24, 1997 January-1,1-99S January 1, 1998 December 31. 1999 Meter Size (Inches) Monthly charge Bimonthly charge Monthly charge Bimonthly charge 3/4 $745 $7.78 515.10 $15.56 $7.78 $817 $4 -5756 $16.34 1 939 9.88 19.18 19.76 9788 10.38 19776 20,76 1 -1/2 12.38 12.76 24776 25.52 12776 13.40 25.52 26.80 2 4943 20.54 39786 41.08 2034 21.57 41.08 43.14 3 7530 77.80 451.90 155.60 77.80 81.70 14560 163.40 4 96.11 99.04 192.22 198.08 99794 104.00 198.08 208.00 6 144.21 148.60 288.42 297.20 448760 156.05 297.20 312.10 8 199.02 205.08 398.04 410.16 205.08 215.36 449-16 430.72 10 398.04 410.16 _ 796.08 820,32 4 -19716 430.72 820.32 861.44 For multiple -unit residential customers, the monthly ready -to -serve charge shall be based on the number of accounts plus the number of dwelling units, according to the following: Ready - to-serve charge effective Ready -to -serve charge effective March 24, 1997 J 1998 January 1. 1998 December 31, 1999 ($343 $4.05 /account) + ($3762 $3.73 /dwelling unit) ($4.05 $4.25 /account) + ($3:73 $3.92 /dwelling unit) (j) Volume Charge. For all customers, the volume charge shall be determined by the following. Volume charge effective Volume charge effective March 2/1, 1997 r > 1998 January 1, 1998 December 31, 1999 $4-35 $1.39 per 100 cubic ft. of water consumption $4-39 $1.46 per 100 cubic ft. of water consumption • • -2- B. Strong Waste Surcharge. For customers located inside the city discharging wastewater which contains more than three hundred parts per million of biochemical oxygen demand (BOD) and/or suspended solids (SS), there shall be a surcharge, in addition to the ready -to -serve charge and the volume charge, which shall be calculated utilizing the national average values of BOD and SS concentrations typical to each classification under the Standard Industrial Code or by actual concentrations verified by the city. If the customer chooses, at its expense, to install a sampling station, the strong waste charge shall be calculated based upon actual concentrations. Any testing done by the city may be charged at the rates set forth in section 7.60.105 of this title. The following formula shall be utilized to • calculate the strong waste charge: Monthly surcharge = (unit costs per pound of BOD or SS) times (weight of one gallon of times (customer's monthly volume in one hundred cubic feet divided by one thousand three hundred thirty- seven) times (customer's concentration of BOD or SS in parts per million per the national average values or verified concentrations minus three hundred) In the foregoing formula, the applicable values g g pp alues areas follows: Effective Effective ;March 2 1997 January-6-1-948 ,January 1, 1998 December 31, 1999 Unit cost per pound for BOD $0.214 $0.214 $0.225 Unit cost per pound for SS $0.140 $0.140 $0.147 Weight of one gallon of water 8.34 pounds 8.34 pounds Section 2. Section 7.60.025 of the Municipal Code is hereby amended to read as follows: 7.60.025 Non -owner p (outside city) retail wastewater service charge. A. Wastewater Service Charge. There shall be charged to and collected from all premises outside the city served by the city wastewater system a wastewater service charge composed of a ready -to -serve charge and a volume charge based on domestic water consumption; provided that in no event shall the total wastewater service charge -be less than the minimum charge indicated below: Minimum charge effective Minimum charge effective March 24, 1997 January 1, 1998 January 1, 1998 II December 31, 1999 $ 14.44 $15.31 /month $ 15.31 $15.70 /month (1) Wastewater Service Charge -- Schedules. The wastewater service charge shall be calculated and charged according to the following schedules: (a) Ready -to -Serve Charge. For all customers other than multiple -unit residential customers: • Water Charges effective Charges effective March 21, 1997 January 1, 1998 January 1, 1998 December 31, 1999 Meter Size (Inches) Monthly charge Bimonthly charge Monthly charge Bimonthly charge 3/4 $ 14.44 $ 15.31 $ 28788 $30.62 $ 15.31 ' $15.70 $ 30.62 $ 31.40 1 -18:34 19.44 36768 38.88 4}44 19.94 38.88 39.88 + 1 -1/2 23.68 25.11 47736 50.22 25.11 25.75 50.22 51.50 2 38.12 40.42 76724 80.84 40.42 41.45 8034 82.90 3 444.40 153.10 288.80 306.20 153.10 157.00 306.20 314.00 4 183.82 194.90 367.64 389.80 194.90 199.86 389.80 399.72 6 27-580 292,42 551.60 584.84 292.42 299.87 584.84 599.74 8 380.64 403.57 761.28 807.14 403.57 413.85 807.14 827.70 10 761.28 807.14 _ 1,522.56 1.614.28 80 -7.14 827.70 1,614.28 1,655.40 For multiple -unit residential customers, the monthly ready -to -serve charge shall be based on the number of accounts plus the number of dwelling units, according to the following: Ready -to -serve charge effective Ready -to -serve charge effective Mar-WI-24.49W January-1,1998 January 1. 1998 December 31. 1999 (S $7.96 /account) + ($63 $7.35 /dwelling unit) ($7:96 $8.16 /account) + ($7735 $7.54/dwelling unit) (b) Volume Charge. For all customers, the volume charge shall be determined by the following: Volume charge effective Volume charge effective March 24, 1.997 January 1, 1998 January 1, 1998 December 31, 1999 $ 238 $2.73 per 100 cubic ft. of water consumption $2773 $2.80 per 100 cubic ft. of water consumption __.L - -4- B. Strong Waste Surcharge. For customers located outside the city discharging wastewater which contains more than three hundred parts per million of biochemical oxygen demand (BOD) and/or suspended solids (SS), there shall be a surcharge, in addition to the ready -to -serve charge and the volume charge, which shall be calculated utilizing the national average values of BOD and SS concentrations typical to each classification under the Standard Industrial Code or by actual concentrations verified by the city. If the customer chooses at its expense to install a sampling station, the strong waste charge shall be calculated based upon actual concentrations. Any testing done by the city may be charged at the rates set forth in section ^7.60.105 of this title. The following formula shall be utilized to calculate the strong waste charge: Monthly surcharge = (unit costs per pound of BOD or SS) times (weight of one gallon of water) times (customer's monthly volume in one hundred cubic feet divided by one thousand three hundred thirty-seven) times (customer's concentration of BOD or SS in parts per million per the national average values or verified concentrations minus three hundred) In the foregoing formula, the applicable values are as follows: Effective Effective - March 24, 1997 January 1, 1998 January 1, 1998 December 31, 1999 Unit cost per pound for BOD $0.444 $0.481 $0.481 $0.492 Unit cost per pound for SS $0.372 $0.476 $0.476 $0.483 Weight of one gallon of water 8.34 pounds 8.34 pounds • Section 3, Section 7.60.035 of the Municipal Code is hereby amended to read as follows: 7.60.035 Septage and exceptional wastewater disposal charges. A. Septage Wastewater Disposal Charge. For septage wastewater disposed pursuant to Chapter 7.63, the following charge shall apply: Charge effective g Charge effective March 24, 1997 January > , 9 8 January 1, 1998 - December 31, 1999 $0.230 $0.265/gal. '± $0.265 $0.278/gal. B. Exceptional Wastewater Disposal Charge. For exceptional wastewater disposed pursuant to Chapter 7.63, the charge shall be calculated by reference to the following formula: Exceptional wastewater Charge = (Treatment Costs) + (Receiving Costs) + (Testing Costs) (1) Treatment costs. Treatment costs shall be determined by reference to the following formula: Treatment costs = [(UBOD /SS) x (WW) x (V/1,337) x (CBOD /SS)] + [(UV) x (V)] where: V = Volume discharged (in one hundred cubic feet); CBOD /SS = Concentration of BOD or SS (in parts per million); and the remaining values are as follows: Value effective Value effective - Abbreviation Meaning March 2'l, 1997 January 1, 1998 January 1. 1998 December 31, 1999 UBOD /SS Unit cost per pound of $0.444 $0.481(BOD); $0.481 $0.492(BOD); BOD or SS $0.372 $0.476(SS) 6 $0.483(SS) WW Weight of one gallon of 8.34 pounds 8.34 pounds water UV Unit cost per one hundred $0.245 $0.245 $0.257 cubic feet of volume (2) Receiving Costs. Receiving costs shall be calculated by the wastewater superintendent and based on actual or estimated staff time, materials, and related costs incurred in connection with receiving the particular waste at issue. (3) Testing Cost. The costs of any testing are set forth in Section 7.65.105. The wastewater superintendent shall have final authority over what tests shall be required for any discharge. C. The amount of the disposal fee, at the rate specified in subsections A or B of this section, shall be based upon the actual quantity measured and discharged. Measurement shall be through methods and instruments as determined by the city. • • -6- Section 4. Section 7.60.040 of the Municipal Code is hereby amended to read as follows: 7.60.040 Diverted flow charge for users of food processing wastewater system. A. "Diverted flow" shall have the meaning set forth in Section 7.12.030. B. The fee for this diverted flow shall be calculated by reference to the following formula: Diverted Flow Charge = (Treatment Costs) + (Receiving Costs) + (Testing Costs) (1) Treatment costs. Treatment costs shall be determined by reference to the following formula: Treatment costs = [(UBOD /SS) x (WW) x (V/1,337) x (CBOD /SS)] + [ \UV) x (V)] where: V = Volume discharged (in one hundred cubic feet); CBOD /SS = Concentration of BOD Or SS (in parts per million); and the remaining values are as follows: Value effective Value effective Abbreviation Meaning March 2r1, 1997 anu ,n. > i 99 January 1, 1998 December 31. 1999 • UBOD /SS Unit cost per pound of $072-66 50.318(BOD); $0.318 0.334(BOD); BOD or SS $0.223 $0.315(SS) $0.315 $0.331(SS) WW Weight of one gallon of 8.34 pounds 8.34 pounds water UV Unit cost per one hundred $0.192 • $0.192 50.202 cubic feet of volume (2) Receiving Costs. Receiving costs shall be calculated by the wastewater superintendent and based on actual or estimated staff time, materials, and related costs incurred in connection with receiving the particular waste at issue. (3) Testing Cost. The costs of any testing are set forth in Section 7.65.105. The wastewater superintendent shall have final authority over what tests shall be required for any discharge. C. Any fees due for diverted flow shall be in addition to annual charges established under Chapter 7.12. The diverted flow charge provided in this chapter shall be payable as billed by the city. • -7 ' Qk» tVw=me a =aim Section 5. Section 7.60.105 of the Municipal Code is hereby amended to read as follows: 7.60.105 Rates, charges and fees for pretreatment program. A. It is the purpose of this section to provide for the payment of rates, charges, and fees for certain discharges to the wastewater system, to compensate the city for the cost of administration of the pretreatment program established in Chapter 7.65. B. Rates, Charges and Fees to be Published. The wastewater superintendent shall maintain a schedule of current rates, charges and fees, shall post such schedule conspicuously, and shall make copies available to interested persons. Upon request, the wastewater superintendent shall prepare an estimate of annual rates, charges and fees for a significant industrial user. C. Base Rate for Minor Industrial Users. Commencing on the effective date of the ordinance codified in this section and until amended pursuant to subsection E of this section, minor industrial users (as defined in Chapter 7.65) shall pay a base rate for pretreatment service of: $33.33 $35.00 /month. Significant industrial users shall not be subject to a base rate. D. Charges and Fees for Related Services. Commencing on the effective date of the ordinance codified in this section and until amended pursuant to subsection E below, significant industrial users shall pay the sampling and laboratory testing charges and fees provided below for those specific services described or listed below. All customers shall also be subject to the sampling, laboratory testing, and flat rate charges and fees provided below, in addition to any base rate provided for in subsection C, but only for those services requested by the customer or provided as part of a required compliance inspection. • (1) Sampling Charge. The sampling charge includes sampler set -up, pick -up, and statistical analysis, as well as billing program charges from the customer service manager. The sampling charge is based on the length of the sampling period, pursuant to the following schedule: • Sampling Period Charge effective Charge effective March 24, 1997 January 1, 1998 January 1. 1998 December 31, 1999 First day $182.82 $182.82 $191.96 Each subsequent day in the same $69.23 $69.23 $72.69 sampling period. rnwww w,i -8- • • (2) Laboratory Testing Fees. A laboratory testing fee is assessed for each type of test conducted on each sample. Fees are assessed pursuant to the following schedule: Test i,` Laboratory Testing Fee • BOD- Biochemical Oxygen luDemand $30.31 TSS -Total Suspended Solids $30.31 pH $15.15 Alkalinity (Carbonate) • $15.15 Ammonia (Ion Selective Probe) $15.15 Chlorine Residual (Colorimetric) $15.15 Dissolved Oxygen (Azide) d $15.15 Dissolved Oxygen (Membrane) $15:15 Fecal Coliform $45.46 FOG -Fats. Oils & Grease $60.61 MPN $303.05 • Nitrate $30.31 Nitrite $30.31 Organic/Volatile Acids $15.15 Total Volatile Solids $30.31 BNA (Semivolatiles) $350.00(1) BTEX $887.76 Metals $2,219.40 Pesticides/PCB's $1,109.70 TPH $100.00(1) Volatile Organics $887.76 Notes: (1) Fee shown is an estimate. This l testing is conducted by an outside laboratory. The actual fee will be based on the actual cost of the test performed, plus any related costs and taxes incurred. • Glossary: BTEX: Benzene, Toluene, Ethylbenzene, and Zylene- Highly volatile hydrocarbons. BNA: Base Neutral Acids (Semivolatile Organic compounds). TPH: Total Petroleum Hydrocarbons (includes oils, gasoline, diesel, and other fuels). (3) Flat Rate Fees. A flat rate fee is assessed on each of certain transactions or services, pursuant to the following schedule: Transaction or Service Flat Rate Fee Discharge Authorization (1) ; $250.00 Compliance Inspection $ 50.00 Dye testing $ 50.00 Smoke testing • $ 50.00 TVing (per h g (P hour) $280.00 Notes: (1) Includes only the first 50,000 gallons of flow. See Chapter 7.65. E. Amendment of Base Rates, Charges and Fees. 1. The base rate or rates ( "rates" for purposes of this subsection) set forth in subsection C of this section may be amended from time to time by ordinance of the city council. Any such amendment shall be based upon changes in the city's cost of providing wastewater pretreatment service as reflected in the city's annual budget. The base rates set forth in subsection C of this section are to be billed at 75% for customers located within the city limits. Other customers will be billed at 100% of base rates. These percentages may be amended by ordinance of the city council. 2. The charges and fees set forth in subsection D of this section may be amended from time to time by ordinance of the city council upon recommendation of the wastewater superintendent. Such amendments shall be based on changes in the costs of providing sampling, laboratory and miscellaneous wastewater pretreatment services. In determining whether there has been a change in the costs of providing service, the city council may consider the city's expenses associated with obtaining services from private laboratories and other third persons, and the city's own administrative and other costs. The charges and fees set forth in subsection D of this section are to be billed at 75% for customers located within the city limits. Other customers will be billed at 100% of the charges and fees set forth in subsection D. These percentages may be amended by ordinance of the city council. F. Money to be Credited to Wastewater Operating Fund. All moneys collected pursuant to this part shall be paid into and credited to the wastewater operating fund as provided in Chapter 3.101. Section 6. This ordinance shall be effective thirty (30) days after its adoption and publication as provided by law. PASSED BY THE CITY COUNCIL, signed and approved this 16th day of November, 1999. / �. John Puccinelli, Mayor ATTEST: City Clerk Publication Dates 11 -20 -99 Effective Date: 12 -19 -99 c� an..+�,� r -10- y u BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. C A For Meeting Of 11/16/99 ITEM TITLE: 1999 Wastewater Rate Adjustment Public Hearing SUBMITTED BY: Douglas Mayo, Wastewater Manager • CONTACT PERSON/TELEPHONE: Douglas Mayo / 575 -6077 SUMMARY EXPLANATION: Extraordinary current and anticipated legal expenses related to the City's Wastewater Division's ongoing odor litigation have developed the need to seek additional revenue. The City's litigation defense involves the expenditure of funds for attorneys' and consultants' fees and expenses to conduct discovery, assess discovery responses for both plaintiffs and defendant, research factual and legal positions, prepare and advocate legal motions, prepare, take and defend depositions, and prepare all elements for trial. To date, 216 claims have been filed against the City alleging damages in excess of $16.2 million. Current legal defense costs, over the past two years, exceed $400,000, which has included, among other work, the production and analysis of 750,000 pages of treatment plant, City, and consultant documents in response to plaintiff's discovery demands: The City's Wastewater Operating and Capital funds have borne the expense of the litigation thus far. This has resulted in the need to transfer or re- allocate funds which would have normally been used for other Wastewater projects!: i(continued) Resolution Ordinance X Contract 1 , Other (Specify) Funding Source All Wastewater Retail� Cu ,t • ers i ?� APPROVED FOR SUBMITTAL: Ai City Manager COUNCIL POLICY ISSUE: In order to be effective by December 31', 1999, the enclosed Wastewater Rate Ordinance must be enacted either 11/16 or at the latest 11/23, 1999. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: Public testimony was heard. The Ordinance was passed. ORDINANCE NO. 99-47 (continued from front page) Litigation costs will continue until trial which may take several more years. In accordance with Council direction, staff prepared an adjusted rate schedule to retail customers. This adjusted rate schedule increases rates to Owner (inside city) customers approximately 51 Based upon the City's rate policy's of utilizing a Utility Rate basis to calculate rates for Non -owner customers, rates to Non -owner (outside city) customers were increased the same monetary amount. This proposal is estimated to increase revenues annually by approximately $370,000. This amount is based upon the assumption that 2000 billable flows remain at 1999 levels. Through October 1999, flows are down 2.8% from 1998 levels. That portion of this increase, which will be transferred to the general fund as utility tax, shall • • be "ear marked" and dedicated exclusively for Wastewater legal defense. This proposed rate increase addresses only litigation expenses. It will not cover any •• -n i.l .. .•- •n r ien •r r-h..ili . i.n • whi h i.h •- .n i•-r -• r•. ir-. to mitigate perceived /claimed odor conditions. Rate Adjustment Summary: Owner (inside City) Retail Customers . Ready -to -Serve Charge increased 5 %; ($0.39) per month for a 3/4" water meter. Volume Charge increased 5 %; ($0.07) per Unit of Consumption (100 cubic feet) Biochemical Oxygen Demand (BOD) increased 5 %; ($0.011) per pound Suspended Solids (SS) increased 5 %; ($0.007) per pound Non -owner (outside City) Retail Customers Ready -to -Serve Charge increased $0.39 (2.6 %) per month for a 3/4" water meter. Volume Charge increased $0.07 (2.6 %) per Unit of Consumption (100 cubic feet) Biochemical Oxygen Demand (BOD) increased $0.011 (2.3 %) per pound Suspended Solids (SS) increased $0.007 (1.5 %) per pound Rates for Septage, Exceptional Waste, Diverted Flow, and Pretreatment were also increased 5 %. 1999 Rate Adjustment Ready -to- Volume Single Typical Surcharge Surcharge One Month Billing Serve Charge Family Increase BOO SS Charge a /100cf 1,000 cf 1,000 cf per Pound per Pound 3/4' meter 1 UOC 3/4' meter 10 UOC OWNER (Inside City) AS OF JANUARY 1, 1998 $7.78 $1.39 $21.68 $0.214 $0.140 increase $0.39 $0.07 $0.011 $0.007 Proposed 11/99 $8.17 $1.46 $22.77 $1.09 $0.225 $0.147 % increase 5.01% 5.04% 5.03% 5.14% 5.00% NON -OWNER (Outside City) AS OF'JANUARY 1, 1998 $15.31 $2.73 $42.61 $0.481 $0.476 increase $0.390 $0.070 $0.011 $0.007 Proposed 11/99 $15.70 $2.80 $43.70 $1.09 $0.492 $0.483 increase 2.55% 2.56% 2.56% 2.29% 1.47% ESTIMATED Additional revenue Ready -to -Serve 24,000 $0.39 $112,320 Volume (UOC) 3,450,000 $0.07 $241,500 $353,820 Strong Waste $240,000 5% $12,000 TOTAL $365,820 • Wastewater Allocation $320,895 To General Government as Utility Tax $44,925 • * .I • Note: The additional revenue indicated is only an estimate based upon projected accounts and projected billable flows. While the number of accounts is up slightly, through October, 1999, billable flows are DOWN 2.78% from 1998 levels. The above estimate assumes 2000 billable flows to remain at 1999 levels. "Note: Per Council direction, the Utility Tax portion of this Increase shall be 'ear marked' In the •eneral fund and dedicated exclusively for Wastewater legal expenses. • • •