HomeMy WebLinkAboutOrdinance 5438 ORDINANCE NO. 5438
AN ORDINANCE AMENDING SECTION 51 . 137 MONTHLY SEWER
RATES OF THE CODE OF FAYETTEVILLE BY REDUCING CERTAIN
EXTRA STRENGTH SURCHARGES TO SEWER RATES, AND PROVIDING
FOR AN EFFECTIVE DATE '
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby amends
§51 . 137 Monthly Sewer Rates of the Code of Fayetteville by deleting the table in subsection
(E)( 1 ) and replacing it with the following table:
Table F3 Extra Strength Surcharges
After 12/1/2011
Extra Strength $0.3145 per pound
BODS
Extra Strength TSS $0.2209 per pound
Section 2. That this Ordinance shall not become effective until December 1 , 2011 .
PASSED and APPROVED this 201" day of September, 2011 .
APPROVED: ATTEST:
BY' BY 4t Le- . /hW�.
nrnrrrrrr
O ELDJ! Mayor SONDRA E. SMITH, City Clerk/Tre #OR�''�.,
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; FAYETTEVILLE ;
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s vsy/ K •tJ• POJ2�:
• City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
06-Sep-11
City Council Mewing Date
Agenda Items Only
David Jurgens Utilities Director Utilities
Submitted By Division Department
Action Required:
Approval of an ordinance rescinding and replacing §51 .137 Monthly Sewer Rates (E) Extra Strength Surcharge Table
F3 Extra Strength Surcharges to update Biological Oxygen Demand (BOD5) industrial surcharge, and hold a public
hearing.
N/A
Cost of this request Category / Project Budget Program Category / Project Name
Water and Sewer
Account Number Funds Used to Date Program / Project Category Name
Water/Sewer
Project Number Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
WIMA01" Previous Ordinance or Resolution #
Depa Di ctor
p Original Contract Date:
Original Contract Number.
Attomey p Date
0. _ $ - -r-7oi
Finance a9{�Internal Services Director Date Received in City 08 - 16- I 'I H I I : 318 RCV o
OA' Clerk's Officedik
Chief of Staff Date
Received in /E
Mayor's Office �7/r
aya Dat
Comments:
1 Revised January 15, 2009
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• YCOUNCIL AGENDA MEMO
a etr1ile ING DATE OF SEPTEMBER 6, 2011
yTHE CITY OF FAYETTEVILLE, ARKANSAS
ARKANSAS
To: Fayetteville City Council
Thru: Mayor Lioneld Jordan
Don Marr, Chief of Staff
From: David Jurgens, PE, Utilities Director
Water, Sewer, Solid Waste Committee
Date: August 9, 2011
Subject: Approval of an Ordinance Changing Section 51 . 137 Table F3, Extra Strength Surcharges, Specifically
Changing the Industrial Biological Oxygen Demand (BOD) Surcharge
RECOMMENDATION
City Administration recommends approval of an ordinance changing section 51 . 137, Table F3, extra strength
surcharges, specifically reducing the industrial biological oxygen demand (BOD) surcharge from $0.4421 /pound to
$0.3145/pound based on the actual costs of treating this excess BOD with current wastewater treatment processes.
BACKGROUND
In early 2011 , City staff met individually with industries that may be impacted by the potential new permit limits for
the Noland Wastewater Treatment Facility (WWTF). In the discussions, staff was requested to review the industrial
surcharge for biochemical oxygen demand (BOD). Staff evaluated both the in-house costs relating to treating high
concentrations of BOD as well as comparing our rates to those of other Northwest Arkansas cities.
The City's WWTFs are biological processes; cultivated bacteria treat the wastewater. These bacteria rely on the
food - the organic material that enters the plant in the wastewater - to maintain a healthy bacteria population. The
food quantity is reflected as BODS, the five-day biochemical oxygen demand, or the amount of oxygen the
organisms in the water will use while processing the food. As with any other living population, the WWTF bacteria
health depends upon the quality, quantity, and consistency of this food source. Additionally, other constituents in
wastewater — metals, herbicides, pesticides, and other materials- impact the bacteria population health. In reasonable
amounts, BOD provides stability for the bacteria population, helping the bacteria survive changes in volume and
concentration of other wastewater constituents. The industry standard for "reasonable amounts" is 300 milligrams
per liter (mg/1) or parts per million (ppm). Higher concentrations cause increased treatment costs to reduce the BOD
concentration to our discharge limit, which is as low as 5 mg/l, depending upon the season. Surcharges for higher
concentrations are intended to directly offset the cost of treating the higher concentration.
Industrial surcharges are important economic development factors. Water using industries closely evaluate rates,
surcharges, and pretreatment requirements to compare capital and operational costs between potential locations.
DISCUSSION
When the City's wastewater system was split with startup of the West Side WWTF, the Noland WWTF became
heavily influenced by and reliant upon industrial wastewater. All Fayetteville industries now flow to the Noland
WWTF, and make up 20 — 40% of the total Noland flow. As a result, we rely upon the BOD from food industries to
offset the nutrient poor wastewater from our non-food industries. If a food industry were to change their process
whereby they significantly reduced the quantity of BOD in their wastewater (through capital investment in a
wastewater pretreatment facility at their manufacturing plant), it could significantly impact the Noland WWTF.
Staff analyzed the actual cost of this treatment, and determined our actual cost to treat BOD is $0.3145 per pound, ,
$0. 1276 below the current rate. Staff also compared the cost of other area cities, shown in the table below.
BOD Sol-Non-sol CCMemo AugI I
Current BOD Industrial Surcharge Rates
BOD TSS
City $/lb Charges for concentrations $/ib Charges for concentrations >
> (mg/L m /L
Bentonville 0.28 300 0.28 300
Fayetteville 0.4421 300 0.2209 300
Rogers 0.151242 300 0.199008 300
Springdale 0.336 289 0.397 300
' Rogers bills for carbonaceous BOD (CBOD), has the right to prohibit CBOD and TSS >300 mg/L, and all Rogers poultry
processors have on-site pretreatment.
s Rogers fees have not changed since 1990
Industries will address these surcharges in one of two ways: ( 1 ) build on-site wastewater treatment facilities to
reduce the concentrations in their effluent; or (2) discharge wastewater with minimal or no pretreatment and pay any
resulting surcharges. In Fayetteville, Pinnacle Foods pretreats their wastewater, and have minimal surcharges.
Tyson' s does not pretreat (other than screening out larger sized particles). Estimated surcharges for Fayetteville
industries are shown below, based on 2010 loadings and 2011 surcharge rates.
2011 Estimated Surcharge Costs/Revenues- Current Rate
Industry TSS Charged 2011 Estimated BOD 2011 Estimated 2011 Estimated
# TSS Surcharge Charged # BOD Surcharge Total Surcharge
Pinnacle Foods 0 0 56,375 $24,923.38 $24;923.38
Tyson Foods, Inc. 7653980 $1692204.95 843,088 $3729729.20 $541 ,934. 14
Hiland Dairy 1209867 $26,699.45 416,467 $1842119.86 $2109819.30
Totals $1952904.39 $5819772.43 $777,676.82
Proposed Ordinance Time Line
September 6 First reading of surcharge adjustment ordinance, announce public hearing
September 7 Advertise surcharge adjustment
September 20 Public hearing, second reading of rate adjustment ordinance, optional third
and final reading of surcharge adjustment ordinance.
October 4 Possible third reading of surcharge adjustment ordinance
December I , 2011 Effective date of new sewer surcharge
New S 51 .137 Table F3
Table F3 Extra Strength Surcharges
After 12/1 /2011
Extra Strength $0.3145 per pound
BODS
BUDGET IMPACTS Extra Strength TSS $0.2209 per pound
This surcharge change to reflect current actual BOD treatment costs, the industrial surcharge revenues would drop by
an estimated $ 167,913 per year, using 2010 flow characteristics and 2011 surcharge rates. This reduction will be
reflected in the 2012 budget. The effect of this change on Fayetteville users are shown in the table below.
Difference Between
Industry 2011 Estimated 2011 Estimated Cost and Charge
Current Surcharge Treatment Cost (Potential Revenue
Reduction
Pinnacle Foods $240923.38 $170729.93 $7, 193.45
Tyson Foods Inc. $541 ,934.14 $434,356. 11 $1073578.03
Hiland Dairy $210,819.30 $157,678. 17 $53, 141 . 13
Totals $777,676.82 $609,764.22 $167,912.60
DDD Sol-Non-sol CCMenno Augll
ORDINANCE NO,
AN ORDINANCE AMENDING SECTION 51 . 137 MONTHLY SEWER
RATES OF THE CODE OF FAYETTEVILLE BY REDUCING CERTAIN
EXTRA STRENGTH SURCHARGES TO SEWER RATES, AND PROVIDING
FOR AN EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby amends
§51 . 137 Monthly Sewer Rates of the Code of Fayetteville by deleting the table in subsection
(E)(1 ) and replacing it with the following table:
Table F3 Extra Strength Surcharges
After 12/1/2011
Extra Strength $0.3145 per pound
BODS
Extra Strength TSS $0.2209 per pound
Section 2. That this Ordinance shall not become effective until December 1 , 2011 .
PASSED and APPROVED this day of 2011 .
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
Cu rruiJ Yus r o-Y4.)
FAYETTEVILLE CODE OF ORDINANCES
TITLE V PUBLIC WORKS
monthly meter service charge rates 6 inch 126.96 146.00
prescribed by subsections (A) and (B) of this g inch 266.62 306.61
section shall commence as of the first billing
statements issued after April 30, 2008. 10 inch 457.06 525.61
(4) Customers served through the White River Table C-4
Rural Water System will pay the outside city Monthly Standby Fire Protection Service
rate plus an additional $5.94 per month for all Charge After December 31 , 2010
bills issued prior to January 1 , 2012. This
additional amount will not be charged on any Line Size Inside City Outside City
bills issued after December 31 , 2011 . 2 inch $ 8.02 $ 9.22
(5) The State of Arkansas mandated Safe 3inch 24.06 27.67
Drinking Water Act fee shall be added to the 4 inch 48.13 55.35
monthly water utility bill. 6 inch 133.69 153.74
(C) Monthly standby fire protection service charge. 8 inch 280.75 322.86
10 inch 481 .28 553.47
(1 ) Charges for unmetered service connections
for standby fire protection and fire hydrants (2) Monthly Standby Fire Protection Service
shall be: Charge After December 31 , 2011 . Starting
the day after December 31 , 2011 , the
Table C-1 monthly standby fire protection service
Monthly Standby Fire Protection Service charge shall be increased by 3% per year.
Charge After April 30, 2008
Line Size Inside City Outside City (3) Fire protection lines shall not be connected
to the water system downstream from a
2 inch $ 6.84 $ 7.86 meter.
3 inch 20.51 23.59
4 inch 41 .03 47.18 (fie 1965, §21No. 25; Ord. 5-8 ; Ord No. 31 Ord. No. 2144,
9-2-75; Ord. No. 2594, 2-5-80; Ord. No. 3197, 7-1-86; Ord.
6 inch 113.96 131 .05 No. 3409, 2-21-89; Ord. No. 3431 , 6-6-89; Ord. No. 3491 , 7-
8 inch239.32 275,21 17-90; Ord. No. 3513, 9-18-90; Ord. No. 3519, 11-20-90;
Ord. No. 4059, §1 , 10-7-97; Ord. No. 4223, 2-15.00; Code
10 inch 1 410.26 471 .79 1991 , §51 .136; Ord. No. 4530 12-02-02; Ord. No. 4540, 02-
03-04; Ord. 5123, 4-1-08)
Table C-2 51 .137 Monthly Sewer Rates
Monthly Standby Fire Protection Service
Charge After December 31 , 2008 (A) Monthly sewer rates.
Line Size Inside City Outside City (1 ) All monthly sewer charges shall be calculated
from the customer's monthly water usage. The
2 inch $ 7.23 $ 8.32 following monthly rates are hereby fixed as rates
3 inch 21 .70 24.96 to be charged for sewer services:
4 inch 43.41 49.92 Table D-1
6 inch 120.57 138.66 Monthly Sewer Rates Per 1 ,000 Gallons Before
8 inch 253.20 291 .18 January 1 , 2009
10 inch 434.05 499.16 Class Usage Rate Cost per
In Gallons 1 ,000 gallons
Table C-3 Residential First ons $3.10
MonthlyStandby Fire Protection Service gallons
y Greater than
Charge After December 31 , 2009 2,000 gallons 3.10
Line Size Inside City Outside City Non-Residential All Usage 2.42
2 inch $ 7.62 $ 8.76 Major Industrial All Usage2.42
3 inch 22.85 26.28 Farmington All Usage 4.66
4 inch 45.71 52.56
CD51 :38
FAYETTEVILLE CODE OF ORDINANCES
TITLE V PUBLIC WORKS
Outside city All Usage 4.66 Class Usage Rate Cost per
85% of In Gallons 1 ,000 gallons
metered 2.81 Residential First 2,000 $3.14
Elkins water usage gallons
Usage above Greater than 4 18
85% of 2,000 gallons
metered 1 .98 Non=Residential All Usage 3.18
water usage Major Industrial All Usage 3.40
Farmington All Usage 5.44
Outside city All Usage 5.91
Table D-2
Monthly Sewer Rates Per 1 ,000 Gallons After 85% of metered
December 31 , 2008 Elkins water usage 3.75
Usage Rate Cost per age above
Class In Gallons 1 ,000 gallons 855 /0 metered 1 .96
First 2,000 watea r usage
Residential gallons $3.00
(2) Beginning January 1 , 2012, all monthly
Greater than
Greater
4.00 sewer quantity charge- usage rates per
2,000 1 ,000 gallons shall be increased by 3% per
Non-Residential All Usage 3.02 year.
Major Industrial All Usage 3.03 (3) Sewer related fees levied by the Cities of
Farmington All Usage 5.13 Farmington or Greenland shall be added to
Outside city All Usage 5.57 the wastewater utility bill at the request of
85% of Farmington or Greenland. These fees may
metered 3.53 be calculated on a per-thousand volumetric
Elkins water usage usage or a per month basis.
Usage above (B) Monthly sewer service charge.
85% of 1 .85
metered (1 ) In addition to the above, each customer shall
water usage pay a monthly sewer service charge in
Table D•3 accordance with the following schedule:
Monthly Sewer Rates Per 1,000 Gallons After Table E-1 Monthly Sewer Service Charge
December 31 , 2009 Prior to January 1 , 2009
Class Usage Rate Cost per
In Gallons 1 ,000 gallons Outside
Meter Size Inside City Cityt Farningtont
Residential First $3.07
gallons
ons 5/8" x 3/4 $ 10.36 $ 10.35 $ 10.35
Greater than 4.10 Cinch 13.47 19.35 19.35
2,000 gallons
Non-Residential All Usage 3.10 1 %z inch 21 .99 34.33 34.33
Major Industrial All Usage 3.21 2 inch 31 .44 49.32 49.32
Farmington All Usage 5.28 3 inch 73.01 104.40 104.40
Outside city All Usage 5.74 4 inch 120.26 171 .97 171 .97
85% of metered
Elkins water usage 3.64 6 inch 238.37 340.87 340.87
Usage above 8 inch 356.48 509.76 509.76
85% of metered 1 .91
water usage
Table D-4
Monthly Sewer Rates Per 1 ,000 Gallons After
December 31 , 2010
CD51 :39
• •
FAYETTEVILLE CODE OF ORDINANCES
TITLE V PUBLIC WORKS
weight
(E) Extra Strength Surcharge.
300 = Allowed SS Strength in parts
(1 ) For all commercial and industrial customers per million by weight
whose wastewater discharge is greater than
300 mg/I of BODS and/or TSS, the City shall (F) Elkins sewer charges.
levy an Extra Strength Surcharge for each 1 Elkins'
parameter in accordance with the following ( ) payment for wastewater treatment
unit charges: shall be based on 85% of the metered water
purchased. The volume of wastewater
Table F3 Extra Stren th Surcharges received by Fayetteville at the "Point of
Connection" shall be measured by the
Before After After After installed wastewater meter. Volumes of
1/1/08 12/31/08 12/31/09 12/31/10 wastewater below or above the agreed upon
Extra $0.2669 $0.3336 $0.4170 $0.4421
Strength per per per per percentage (85%) metered water, as
BODS and and and and measured by the wastewater meter, shall be
Extra $0.1334 $0.1668 $0.2084 $0.2209 recorded on a monthly basis, with a
Strength per per per per reconciliation of the net difference to occur
TSS pound pound pound pound semiannually in June and December. If the
reconciliation volume is over the agreed
(2) Extra Strength Surcharges shall be billed upon percentage, this amount shall be billed
monthly and shall be computed on the basis to Elkins in June and December at the actual
of water meter reading (wastewater discharge computed cost of wastewater collection to
volume). and treatment at the Noland Wastewater
Treatment Plant, not including the calculated
(3) Starting after December 31 , 2011 , Extra rate of return and not including depreciation
Strength Surcharges shall be increased by charges, but including any capacity
3% per year. surcharge, based on the most recent rate as
determined in paragraph B of this Contract.
(4) Computation of extra strength surcharges If the reconciliation volume is below the
shall be based on the following formula: agreed upon percentage, the actual amount
billed for the difference shall be refunded to
(a) Extra strength surcharge: Elkins in June and December
S = V x 8.34 x [BOD Unit (2) Elkins impact fee charges. The City of Elkins
Charge (BOD - 300) + SS Unit shall pay an additional $0.25 per 1 ,000 gallons of
Charge (SS - 300)] wastewater, for all wastewater volume charges
including both the 85% of metered water volume
(b) Where: and for wastewater in excess of the 85% of the
metered water purchased billed volume.
S = Surcharge in dollars
(Code 1965, §21-26; Ord. No. 1165, 4-18-58; Ord. No. 3197,
V = Sewer volume in million gallons 7-1-86; Ord. No. 3285, 8-4-87; Ord. No. 3398, 1-3-89; Ord.
No. 3491 , 7-17-90; Ord. No. 3637, §§1 , 2, 8-18-92; Ord. No.
8.34 = Pounds per gallon of water 4059, §2, 10-7-97; Code 1991 , §51 .137; Ord. No. 4530, 12-
02-03; Ord. No. 4803, 12-20-05; Ord. 4998, 4-3-07; Ord.
BOD Unit = Unit charge for BOD in 5129, 4-15-08)
charge dollars per pound
BOD = BOD strength index in parts per 51 .138 Definitions Pertaining to Water
million and Sewer Rates
For the purpose of the sections pertaining to
300 = Allowed BOD strength in parts water and sewer rates, the following definitions
per million shall apply unless the context clearly indicates or
SS unit = Unit charge for suspended requires a different meaning:
charge solids in dollars per
pound (A) City of Farmington customer. Customer whose
structure being served for water and/or
SS = Suspended solids strength wastewater is physically located within the
index in parts per million by incorporated limits of the City of Farmington,
CD51 :41
NORTHWEST ARKANSAS DEMOCRATGAZA
NORTHWESTARKANSAS TME MORNING NEWS Of SPRINGDALE
THE MORNING NEWS OF ROGERSERS
NEWSPAPERS LLC BENTORNCOUNTYONLY ECORD
212 NORTH EASTAVENUE, FAYETTEVILLE. ARKANSAS 72701 1 P.O. BOX 1607, 727021479442.17001 WWW.NWANEm.COM
AFFIDAVIT OF PUBLICATION
1, Cathy Wiles, do solemnly swear that I am the Legal Clerk of the RECEIVED
Northwest Arkansas Newspapers, LLC, printed and published in OCT 0 7 2011
Washington and Benton County, Arkansas, bona fide circulation, CITY OF FAYETTEVILLE
that from my own personal knowledge and reference to the files CITY CLERK'S OFFICE
of said publication, the advertisement of:
City of Fayetteville
Ordinance -5438 -
ORDINANCE NO. 5438
L5CENDING
MORDINANCE
„ y ep SECTION 51.137
ERENJ
FA RATES OF THE WEE OF evl le
STRENGTH SURCHAAGES TO SEWER RATES, AND 1
Was inserted in the Regular Editions on: PROVIDING FOR AN EFFE-CTW DATE ARKANSAS
September 29, 2011 CITY OF FAYSEITORDAINETTEVILLE pglTYCOAR
MonCILOFTNE
Section
Sewer Rates lty Go of MeuCadencil Of of a City vY a by tl of villa, Arke ea
ha subsecat"Os 451.13]
realaGrg It with the tollowlng table: (Q(1) and
Publication Charges: $64.85 Table F3 H:tn Strength serrharyn
Extra
_ After 1211/2011
BOD SO.3145 per Pound
s
Extra Stnength TSS $0.2709 Per Nund
SWiOn 2. That this Ordinance shell not became effective unN December
PASSED end APPROVED this 20th ds' ATTEST. 1, 2011.
September, 2011.
:
A
APPROVED
IIONEID JORDgq, Mayo B'
SONDRA E SMITH, Oty GedtrTressurar
Cathy Wile
Subscribed and swot�o��b��e� ""fo" re me
Thisyf k day of �clapr t , 2011 .
dc� �
clary Public
My Commission Expires:
1=1
* *NOTE* *
Please do not pay from Affidavit. Invoice will be sent.