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HomeMy WebLinkAboutA002 - Council Action Form dated April 25, 1989 ITEM # DATE April 25, 1989 COUNCIL ACTION FORM SUBJECT: Surcharge for High-Strength Wastewater Discharge BACKGROUND: Section 204(b) of the Clean Water Act and 40 CFR 35.2140 require the City to adopt a sewer use ordinance which, among other items, includes a surcharge to recover the actual cost of treating wastewater that is higher in strength than normal domestic sewage. The City included such a surcharge in the sewer use ordinance adopted on May 28, 1985. Implementation of the surcharge was postponed until the new treatment plant began operation. Partial startup of the new plant is anticipated within the next month. Staff has developed a procedure to implement the high-strength sewer use surcharge to begin billing and collecting the surcharge on a monthly basis on October 1, 1989. A preliminary copy of this procedure was distributed on April 4 to all of the industrial users that may be affected by the surcharge. A meeting was held on April 19 to answer questions and obtain input from these industries. Representatives from four of the industries attended; no revisions or modifications have been suggested. A copy of the proposed procedure is attached. Ordinance changes have also been prepared by the City Attorney for Council consideration on April 25, 1989. ALTERNATIVES: 1. Approve the proposed procedure for implementation of high-strength sewer use surcharge. Authorize staff to implement this federal requirement. 2. Do not approve the proposed procedure. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council approve the proposed procedure for implementation of high-strength sewer use surcharge as outlined in Alternative No. 1. COUNCIL ACTION: 4/89 PROCEDURE FOR EWPLEMENTATION OF HIGH-STRENGTH SEWER USE SURCHARGE AMES, IOWA PURPOSE To establish an equitable method of assessing the surcharge to be billed to contributors identified in the Ames Non-Domestic Waste Pretreatment Program who discharge wastewater that is higher in Biochemical Oxygen Demand (BOD) , Suspended Solids (SS) , or Ammonia (NH3) than normal domestic wastewater. BACKGROUND In order to receive approximately $20 million in federal grant funds for the new water pollution control project, the City is required to comply with numerous federal regulations. Section 204(b) of the Clean Water Act and 40 CFR 35.2140 require the City to adopt a sewer use ordinance which, among other items, includes a surcharge to recover the actual cost of treating wastewater that is higher in strength than normal domestic sewage. Attachment No. 1 is a copy of 40 CFR 35.2140. The strength of the wastewater is determined by the concentrations of biochemical oxygen demand, suspended solids, and ammonia. The City included such a surcharge system in the sewer use ordinance adopted on May 28, 1985. The city's sewer use ordinance has been approved by state and federal regulatory agencies as meeting the minimum requirements of the federal law. The new water pollution control plant will begin operation during the early summer of 1989. With the initial operation of the new facilities, the City must begin collecting the extra-strength sewer use surcharge adopted for the facility. The City will begin billing and collecting the surcharge on a monthly basis beginning October 1, 1989. Normal domestic wastewater is defined in the City Code, Section 28.37, as any wastewater that has a biochemical oxygen demand (BOD) concentration of not more than 250 milligrams per liter (mg/1) average and 400 mg/1 maximum; or a suspended solids (SS) concentration of not more than 300 mg/1 average and 450 mg/1 maximum; or an ammonia (NH or NH3-N) concentration of not more than 40 mg/1 average and 60 mg/1 maximum. Pages from two standard industry reference books illustrating sewage wastewater strengths are shown as Attachment Nos. 2 and 3. Section 28.39, paragraph 4, of the Code further states "For those users whose wastewater has a greater strength than normal domestic sewage, a surcharge in addition to the normal user charge will be collected. The surcharge for operation and maintenance, including replacement, is: $0.08 per pound BOD; $0.14 per pound SS; $0.20 per pound NH3." The surcharge amounts are based on estimates of operation, maintenance, and replacement costs at the new plant. After the plant has been in operation for several years, these costs will be re-evaluated and may change to better reflect actual costs. A survey of surcharge rates from several Iowa cities is shown as Attachment No. 4. IMPLEMENTATION Those customers identified through the Ames Non-Domestic Waste Pretreatment Program who contribute wastewater stronger than domestic sewage for any of the identified parameters (i.e. BOD, SS, NH ) shall pay a monthly sewer surcharge based on that customer's respective discharge strength and monthly volume. This surcharge shall be in addition to the normal sewer use charge which is based only on volume. In order to establish an initial data base on which to base the surcharge, a sampling set per discharge point will be collected from all contributors associated with the pretreatment program. A sampling set is defined as three consecutive 24-hour composite samples collected during a normal work week. The City will contract with a commercial laboratory to obtain and analyze the samples. This sampling will be done at the city's expense. Based on the data, a surcharge will be calculated for the contributors who have wastewater higher in strength than normal domestic sewage. Once the contributor is notified of the surcharge, he has the option of modifying operations to reduce strength and resampling at his expense or pay the monthly surcharge which will begin October 1, 1989. The monthly city utility bill will include a line for identification of the sewer surcharge amount. The sewer surcharge rate will be calculated for each contributor at least once annually and may be calculated on a more frequent basis if additional sampling data is provided. The City will require one sampling set per discharge point, as defined above, for each contributor subject to the surcharge at least once per year to calculate the surcharge rate for the following year. Following the establishment of the initial data base, all costs for the sample collection and analysis associated with the surcharge requirement is the responsibility of the contributor. The sample results must be representative of the normal wastewater discharge from that contributor. Samples collected during weekends or shutdown periods will not be accepted. The sampling results shall be reported to the City Water and Pollution Control Department at least 45 days prior to the beginning of the billing year (July 1). If the customer desires, additional sample results may be submitted at any time during the year and used to revise the surcharge calculation. The surcharge billing will be adjusted at the first billing cycle following the recalculation. The approximate cost of three days of sampling and analyses for these parameters is estimated to be from $350 to $500 (per discharge point) . City staff can provide a list of several commercial laboratory facilities which are able to perform this work. The extra-strength surcharge has been established as follows: Surcharge Rate Per Parameter Extra-Strength Rate mg/1 of Extra Strength BOD $0.08/lb $0.00050/100 cf SS $0.14/lb $0.00088/100 cf NH3 $0.20/lb $0.00125/100 cf -2- The surcharge rate applies only to the extra strength above normal domestic waste strength. The total surcharge rate is the sum of the rates for each individual parameter. This surcharge rate will be used for the entire 12-month billing year (fiscal year) or until the next sample set is submitted. If any parameter is below average domestic strength, there will not be a surcharge for that parameter. A sample calculation for a typical monthly surcharge is shown as Attachment No. 5. If the City develops data which indicates the surcharge rate may be incorrect, the City may request the contributor to submit an additional sample set to verify the current surcharge rate. The sample sets used for the surcharge calculation can also be used by the contributor to meet the self-monitoring requirements of the industrial pretreatment program. Sampling duplications will not be required where a sample can be used for more than one purpose. The City will work with each contributor to minimize monitoring expenses. The existing data base will be reviewed with each contributor to determine if it is adequate for calculation of the surcharge rate. Additional sampling sets may not be needed as long as the data base remains valid. However, either the City or the contributor can request additional sampling sets if either feels the data base is not representative of current wastewater discharge quality. If any contributor modifies its operations, such as through a plant expansion or elimination of a product line, then either the City or the contributor can request a new sampling set to determine a new or modified data base. If any contributor demonstrates that its discharge does not exceed the strength of domestic wastewater, there will be no surcharge. Future sampling requirements may be reduced or eliminated until conditions warrant. -3- ATTACHMENT 1 Federal Register / Vol. 49, No. 34 / Friday,.February 17, 1984 / Rules and Regulations 6245 determined on the-date of the approval wastewater produced by a facility that treatment works within the grantee's of the Step 3 grant.Grant assistance is owned and operated by the Federal service area and the grantee has awarded after September 30,1990 shall government which contributes more continued to use that system; be limited to the needs existing on than 250,000 gallons per day or five (2)The ad valorem user charge system September 30,1990. percent of the design flow of the distributes the operation and (d)For any application with capacity complete waste treatment system, maintenance(including replacement) in excess of that provided by this whichever is less.. costs for all treatment works in the section: (Approved by-the Office of Management and grantee's jurisdiction to the residential . (1)All incremental costs shall be paid Budget under control number 2040--0027) and small non-residential user class by the applicant.Incremental costs (including at the grantee's option include all oosts which would not have §35.2130 Sewer use ordinance. nonresidential,commercial and been incurred but for the additional The sewer use ordinance(see also industrial users that introduce no more excess capacity,i.e., any cost in §§35.2122 and 35.2208)or other legally than the equivalent of 25,000 gallons per addition to the most cost-effective binding document shall prohibit any day of domestic sanitary wastes to the alternative with eligible reserve new connections from inflow sources treatment works),in proportion to the capacity described under paragraphs(a) into the treatment works and require use of the treatment works by this class; and(b) of this section. that new sewers and connections to the and (2)It must be determined that the treatment works are properly.designed (3)Each member of the industrial user actual treatment works to be built meets and constructed.The ordinance or other and commercial user class which the requirements of the National legally binding document shall also discharges more than 25,000 gallons per Environmental Policy Act and all require that all wastewater introduced day of sanitary waste pays its share of applicable laws and regulations. into the treatment works not contain the costs of operation and maintenance (3)The Regional Administrator shall toxics or other pollutants in amounts or (including replacement)of the treatment approve the plans,specifications and concentrations that endanger public works based upon charges for actual estimates for the actual treatment safety and physical integrity of the use. works. treatment works;cause violation of (c)Notification.Each user charge (4)The grantee shall assure the effluent or water quality limitations;or system must provide that each user be Regional Administrator satisfactorily preclude the selection of the most cost- notified,at least annually,in that it has assessed the costs and effective alternative for wastewater conjunction with a regular bill(or other financial impacts of the actual treatment treatment and sludge dispoisal. means acceptable to the Regional works and has thexapability to finance (Approved by the Office of Management and Administrator),of the rate and that and manage their construction and Budget under control number 2040-0027) portion of the user charges or ad operation. valorem taxes which are attributable to (5)The grantee must implement a user §35.2140 User charge system wastewater treatment services. . charge system which applies to the The user charge system(see (d)Financial management system. entire service area of the grantee. §§35.2122 and 35.2208)must be designed Each user charge system must include (0)The grantee shall execute to produce adequate revenues required appropriate grant conditions or releases for operation and maintenance an adequate financial management protecting the Federal Government from (including replacement).It shall provide system that will accurately account for that each user which discharges revenues generated ra the system and any claim for any of the costs of expenditures for operation and construction due to the additional pollutants that cause an increase in the maintenance(including replacement)of capacity. cost of managing the effluent or sludge the treatment system,based replacement) an from the treatment works shall pay for adequate budget identifying the basis ¢35.2125 Treatment of wastewater from such increased coat.The'user'charge for determining the annual operation Industrial users. system shall be based on either actual >nmg P '(a)Grant assistance shall not be use under paragraph(a)of this section, and maintenance costs and the costs of provided for a project unless the,project ad valorem taxes under paragraph(b)of Personnel,material,energy and is included in a complete waste this section,or a combination of the two. administration. treatment system and the principal (a) User charge system based on (e)Charges for operation and purpose of both the project and the actual use.A grantee's user charge maintenance for extraneous flows.The system is for the treatment of domestic system based on actual use(or user charge system shall provide that wastewater of the entire community, estimated use) of wastewater treatment the costs of operation and maintenance area,region or district concerned. services shall provide tjlat each user(or for all flow not directl attributable to .(b)Allowable project costs do not user class)pays its proportionate share users(i.e.,infiltration/inflow)be include: of operation and maintenance(including distributed among all users based upon (1)Costs of interceptor or collector replacement)costs of treatment works either of the following: sewers constructed exclusively,or within the grantee's service area,based (1)In the same manner that it almost exclusively, to'serve industrial on the user's proportionate contribution distributes the costs for their actual use, users;or to the total wastewater loading from all or (2)Costs for control or removal of users(or user classes). (2)Under a system which uses one or pollutants in wastewater introduced into (b) User charge system based on ad any combination of the following factors the treatment works by industrial users, valorem taxes.A grantee's user charge on a reasonable basis: unless the applicant is required to system which is based on ad valorem (i)Flow volume of the users; remove such pollutants introduced from taxes may be approved if: (ii)Land area of the users; nonindustrial users. (1)On December 27,1977,the grantee (iii)Number of hookups or discharges had in existence a system of dedicated of the users; §.35.2127 Federal facilities. ad valorem taxes which collected ()v)Property valuation of the users, if Grant assistance shall not be provided revenues to pay the cost of operation the grantee has an approved user charge for costs to transport or treat and maintenance of wastewater system based on ad valorem taxes. ATTACHMENT 2 PROCESS DESIGN CONSIDERATIONS TABLE 1-III. Analysis of Typical Midwest Domestic Wastewater Constituent Concentrat ion, mg/1 Total solids (TS) 980 Volatile Ts 260 Nonvolatile TS 720 Total us )ended solids (TSS) 200 Volatile Tss 160 Nonvolatile Tss 40 Chemical oxygen demand (COD) 400 Suspended COD 250 Soluble COD 150 Biodegradable COD 300 Soluble biodegradable COD 150 Suspended biodegradable COD 150 Biochemical oxyzen demand (BODO Soluble BOD 100 Suspended BOD 100 Calcium (Ca++) 60 Magnesium (Mg++) 24 Sodium (Na+) 80 Potassium (K+) 8 Phosphate (PO4-) 30 Sulfate (SO4-) 80 Silicate (SiOM 26 Chloride (Cl-) 100 Bicarbonate (HCO3) 280 Ammonia nitrogen NH -N 30 Organic nitrogen (org-N) 20 Source: Wastewater Treatment Plant Design, WPCF/ASCE, 1977, P. 11 ATTACHMENT 3 TABLE 7.3 TYPICAL COMPOSITION OF DOMESTIC SEWAGE (All values except settleable solids are expressed in mg/liter) Concentration Constituent Strong Medium Weak Solids, total 1,200 700 350 Dissolved, total 850 500 250 Fixed 525 300 145 Volatile 325 200 105 Suspended, total 350 200 100 Fixed 75 50 30 Volatile 275 150 70 Settleable solids, (ml/liter) 20 10 5 Biochemical oxygen demand, 5-day, 200C (BOD5-200) 300 200 100 Total organic carbon (TOC) 300 200 100 Chemical oxygen demand (COD) 1,000 500 250 Nitrogen, (total as N) 85 40 20 Organic 35 15 8 Free ammonia 50 25 12 Nitrites 0 0 0 Nitrates 0 0 0 Phosphorus (total as P) 20 10 6 Organic 5 3 2 Inorganic 15 7 4 Chlorides* 100 50 30 Alkalinity (as CaCO3)* 200 100 50 Grease 150 100 50 * Values should be increased by amount in carriage water. Source: Wastewater Engineering, Metcalf & Eddy, Inc. , 1972, P. 231 ATTACHMENT 4 Surcharges for High-Strength Wastes (all in $/lb unless otherwide noted) BOD TSS NH3 or TKN Ames $0.08 $0.14 $0.20 Bettendorf 0.078 0.079 -- Burlington 0.306 0.256 -- Cedar Rapids 0.049 0.049 0.265 Clinton 0.098 0.066 -- Council Bluffs 0.024/0.05 0.034/0.07 -- < 25,000 gal/mo > 25,000 gal/mo Davenport 0.079 0.078 -- Des Moines 0.07/1000 gal 0.07/1000 gal -- Muscatine 0.112 0.092 -- Spencer 0.464/1000 gal 0.094/1000 gal -- \TBL\WG22.089 ATTACHMENT 5 SAMPLE CALCULATION ABC Industry Sample Set Results BOD SS NH m l mg/1 m l Monday - - - Tuesday 750 450 65 Wednesday 875 575 50 Thursday 300 450 55 Friday - - - Saturday - - - Sunday - - - AVERAGE DISCHARGE STRENGTH 642 492 57 Normal Domestic Sewage 250 300 40 Extra Strength (Difference) 392 192 17 Calculation of Surcharge Rate Extra Strength Parameter mg/l Surcharge Rate Surcharge Rate BOD: 392 x ($.000500/100 cf) = $0.1960/100 cf SS: 192 x ($.000876/100 cf) = $0.1682/100 cf NH3: 17 x ($.001251/100 cf) _ $0.0213/100 cf TOTAL SURCHARGE RATE $0.3855/100 cf Calculation of Surcharge 14,200 cf x $0.3855/100 cf = $54.74 \FORMS\TN2.089 HillO��I AMM 50010 I it SEND PAYMENT TO CITY OF AMES UTILITY CUSTOMER SERVICES P.O. BOX 811 CITY OF AMES AMES, IA. 50010 PAYMENT MUST BE RECEIVED IN FINANCE DEPT DEPOT ANNEX BEFORE 3PM OF DUE DATE SAMPLE AMOUNT DUE NOW FOR OFFICIAL USE ONLY 1,035.94 ADDRESS CORRECTION REQUESTED ABC Industry AMOUNT DUE AFTER 100 North Street 8/22/89 Ames, IA 50010 1,050.95 AMOUNT DUE INCLUDES PREVIOUS BALANCE OF ACCOUNT NUMBER 6/22/89 7/22/89 30 8/1/89 8/22/89 XX_XXX_X COMPARED TO SIMILAR BILLING PERIOD LAST YEAR .. zEmm2==lm= 99935 11398 11,463 370 GP 625.61 .003000 CR FA 34.39 CR TOTAL ELECTRIC 591.22 225400 239600 14,200 473 Water 112.11 225400 239600 14,200 473 Sewer 242.70 225400 239600 14,200 473 Sewer Surcharge 54.74 TAX 35.17 CURRENT CHARGES 1,035.94 PREVIOUS BALANCE 0.00 ACCOUNT BALANCE 1,035.94 AMOUNT DUE NOW 1,035.94 PAYMENT MUST BE RECEIVED IN FINANCE DEPARTMENT BEFORE 3PM OF DUE DATE SEE REVERSE SIDE FOR CODE EXPLANATION RECENT PAYMENTS MAY NOT BE REFLECTED ON THIS RILL