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HomeMy WebLinkAboutA001 - Council Action Form dated May 24, 2016 ITEM # 43 DATE 05-24-16 COUNCIL ACTION FORM SUBJECT: FATS, OILS, AND GREASE CONTROL ORDINANCE REVISIONS BACKGROUND: Fats, Oils, and Grease (FOG) is a wastewater pollutant that contributes to sewer blockages that can lead to environmental and health concerns and cause economic losses. Although FOG can be introduced into wastewater from a variety of sources, food service establishments (FSEs) can be major contributors. The City's Plumbing Code has requirements for installation of grease interceptors in new restaurants and upon certain upgrades to existing restaurants. However, the Plumbing Code does not address ongoing cleaning and maintenance of that equipment, nor does it address other practices that should be used to reduce the introduction of FOG into the public sewer system. In November 2014, City Council adopted an ordinance implementing a FOG Control Program. Among other elements, the FOG Control Program included a Restaurant Surcharge rate that would be added to the regular sewer use rate for any FSE that did not meet the requirements of the Program. The implementation timeline included two, six-month compliance periods where the Restaurant Surcharge Rate was not enforced. This was to allow restaurants a grace period to learn about the requirements of the program and to make any necessary changes to their management practices to become compliant. In the time since the ordinance was adopted, City staff has launched the program which is now in the second compliance period. Information about the program has been communicated through mailings and also in public information sessions held on December 17 and 18, 2015. Forty five individuals were in attendance at those meetings representing multiple FSEs. Feedback from FSE's about the program has been encouraged throughout the process to give City staff a better understanding of how FSEs are adjusting to the program. FSEs, along with waste haulers and other City departments, have provided valuable feedback which has been used to shape the proposed revisions to the FOG Control Program. City staff has prepared the attached ordinance containing revisions to the FOG Control Program. The proposed revisions include the following key elements. 1 . Removal of Food Processing Plants and Retail Food Establishments from the program. Practices occurring at these sites have been reviewed by City staff and it has been determined that they are not the target of the program. This change eliminated approximately 30 FSEs from the program. 2. Defining the process required for an FSE to gain approval to use an additive as a method of FOG control. Also defined are the specific types of additives that will not be approved for use. These types of additives are designed to disperse the accumulated FOG and would work against the goals of the program. This change would help relieve some confusion as to which types of additives were permissible. 3. Delineating the difference between a gravity-flow grease interceptor and a hydromechanical grease interceptor. These devices vary in size with the hydromechanical grease interceptor being much smaller. Highlighting the difference provides the opportunity to allow FSEs to clean out their own hydromechanical grease interceptors while still requiring that gravity-flow grease interceptors be cleaned by a party that specializes in that line of work. 4. Setting of the Restaurant Surcharge rate at $2.54/100 cubic feet for non- compliance with the FOG Control Program. Data was collected from thirty three FSEs on the program to help determine the rate. The data collected included the following. a. Intervals at which the FSE had its grease interceptor cleaned and the . interceptor was at each cleaning. percentage full the grease p g b. Cost to clean the FSE's grease interceptor. c. The FSE's average monthly sewer usage. Using the cleaning data allowed staff to determine the minimum frequency (cleanings per month) at which an FSE would need to clean its grease interceptor in order to be compliant with the program. Multiplying this frequency by the cost to have the grease interceptor cleaned provided an estimated monthly cost for the FSE for the proper maintenance of their equipment. The estimated monthly cost was then divided by the average monthly sewer usage to give a surcharge rate for that FSE. The proposed Restaurant Surcharge rate was the median rate obtained from the data. 5. Addition of a Restaurant Fee set at $75.00/month to be used in lieu of the Restaurant Surcharge for FSEs that are not billed for sewer usage or whose sewer usage is not representative of their food service activities. A number of FSEs on the program are not billed for sewer usage due to the way the utilities were setup for their location (for example, an independent coffee shop inside a grocery or retail store). In addition, there are facilities on the program which are billed for high volumes of sewer usage with only a small portion of that usage being related to food service (such as hotels that use large volumes of water for laundry or guest showers with only a small percentage used for a breakfast buffet). These facilities would be subject to the Restaurant Fee only if they are not compliant with the program. The fee was determined by using the Restaurant Surcharge rate from above and multiplying that by the median monthly sewer usage for FSEs on the program. Staff believes this is the most equitable way to address these types of unique establishments without imposing significant re-plumbing costs to the FSE. The final compliance grace period established in the original ordinance is set to expire on June 30, 2016. All FSEs who are in compliance with the FOG Control Program during the second half of 2016 will be exempt from paying the Restaurant Surcharge or Restaurant Fee. Any who are not in compliance will see the Restaurant Surcharge appear on their utility bill for meter readings beginning on January of 2017. Every six months their compliance status will be re-evaluated, and FSEs could potentially move on or off of the surcharge rate. ALTERNATIVES: 1. Approve the attached ordinance containing revisions to the Fats, Oils, and Grease Control Program. 2. Direct City staff to modify the attached ordinance. 3. Do not approve the ordinance revising the Fats, Oils, and Grease Control Program. MANAGER'S RECOMMENDED ACTION: An effective Fats, Oils and Grease (FOG) Control Program will improve the operation of the City's sanitary sewer collection system and Water Pollution Control Facility, will decrease the likelihood of environmental damage, and will reduce hazards to human health. City staff has worked extensively with local food service establishments (FSEs) and waste haulers to receive feedback, suggestions, and data. These responses are the basis for the proposed FOG Control Program revisions. The proposed revisions will remove unnecessary sites from the program and make it easier for FSEs to comply with the program. Also, setting the proposed rate/fee for non-compliance will help achieve the goal of reducing FOG discharge to the sanitary sewer. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 as described above.