Fort Walton Beach — Ordinance 708

READING DATE ey ist (Pue-29 2nd Psd SOF f at . Po BRE econ een od CITY OF FORT WALTON BEACH OKALOOSA COUNTY, FLORIDA ORDINANCE NO. 7O¥ ENACTED: September 25, 1979 AGREEING THAT SEWAGE TREATMENT SERVICE CHARGES SHALL COMPLY WITH REQUIREMENTS OF THE ENVIRONMENTAL PROTECTION AGENCY; CONSENTING TO THE IMPOSITION OF AN INDUSTRIAL COST RECOVERY SYSTEM; AND REPEALING INCONSISTENT ORDINANCES WHEREAS, the City of Fort Walton Beach (the "City") has undertaken a project involving additions and alterations to the City's existing sewerage system for the purposes, among others, of upgrading the quality of the waste- water treatment facilities to comply with federal and state environmental requirements and of. expanding the capacity of said facilities (the "Project"); and WHEREAS, the major portion of the costs of such improvements are to be met from the proceeds of a grant from the Environmental Protection Agency (the EPA") under the Federal Water Pollution Control Act, Amendments of 1972 and the Clear Water Act of 1977; and WHEREAS, the EPA requires, as conditions of such grant assistance, that a system of user charges be developed which equitably distributes the costs of Meow nef, Crd. # Tod J operation and maintenance of the Project and that an Industrial Cost Recovery System be implemented whereunder all industrial users repay a portion of the federal grant over a period of years. NOW THEREFORE, BE IT RESOLVED that: 1. The City covenants and agrees that the system of user charges to be applied to the users of the City's sewerage system shall be such as to comply with applicable EPA requirements, that such records shall be maintained as are necessary to document compliance with said requirements and that the user charges shall be reviewed biennially and revised accordingly. 2. The City will lawfully and properly implement all the provisions of its Industrial Cost Recovery System, as approved by EPA. Said system will be applied to all industrial users of the City's sewerage system, except for those industrial users permitted by EPA to be exempted from same; the term “industrial users", as used herein, shall have the meaning ascribed thereto by the EPA pursuant to 40 CFR Section 35.905, as the same may be revised from time to time. Furthermore, said ICR System shall provide for an appeal procedure by which an individual industrial user will have an opportunity to be heard regarding the reasonableness of cost allocations and of the industrial cost recovery assessments imposed on it. 3. Any prior ordinances or resolutions or parts thereof inconsistent herewith are hereby repealed. 4. This ordinance shall take effect ten (10) days after its passage and approval by the Mayor. ADOPTED AWA 1999 won fieladl w_ Sele 7 (Ch Eee city Clerk Daily News Published Daily Fort Waiton Beach, Florida State of Florida County of Okaloosa Before the undersigned authorized personally appeared Pi Scott Fischer » Who on oath says that (s)he is Publisher of the Playground Daily News, a daily newspaper published at Fort Walton Beach, in Okaleosa County, Florida; that | charges te be fixed for sewer service supplied | Stent Foet Walton Beach. Florida, while. meeting in regular sex- sion at the City: Holl, Fort. Walton Beach, Ber itoad rs Domed I stn wi the: nt ot the fotiowing ordinances * Ordinance 02.1a cio An ordinance omending Sect aa, & 22-13 of the Code providing fees ‘ond other Prete Ty em Sepeat the, contin Brovisions of the Code adiog the sou Segrey anton: od rape inconsi ondiamncen: eats dor the attached copy of advertisement, being a Heget in the matter of NOTICE in the Court, was published in said newspaper in the issues of September 19, 1979 Affiant farther says that the said Playground Daily News is a newspaper published at Fort Walton Beach, in said Okaloosa County, Florida, and that the said newspaper has heretofore been continuously published in said Okaloosa County, Florida, each day, and has been entered as second class mail matter at the post office in Fort Walton Beach, in said Okaloosa County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that (s)he has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertise t for publicat) wy) in the said newspaper. hi Lye ach 20th day of Sworn to and subscribed before me this . Ne ara ’ September 32548 , AD. 19. 79 cay yt Mite, Lee Notary Public, satya toga Large MAY 9, 1980 pay My Commission Expires xtED S74 f % pete - - owe, ? 2. Cirwil eufrmidian - 3 WY 8 UNITED STATES ENVIRONM ENYA ENTAL PROTECTION AGENCY 3 f/e - “tea pat REGION IV 345 COURTLAND peer ae 97 GS 20 ATLANTA, GEORGIA 8 JAW 2 oe in REF: 4W-SA Mr. Winston G. Walker City Manager Post Office Box 1449 Fort Walton Beach, Florida 32548 RE: €120284050 Dear Mr. Walker: The EPA has reviewed the Fort Walton Beach User Charge and Industrial Cost Recovery system dated August 1979. This report and the ordinances implementing the system are in conformance with EPA guidelines and regulations, and are hereby approved. ‘If you have any questions, please feel free to contact us. Sincerely yours, Ziel ip bten Paul J. Traina Director Water Division cc: FDER/Tallahassee FNER/Pensacola dg. B. Converse and Company, Inc. Corps of Engineers Eee Maa 2 @& "5 2SZ; UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Wa opin REGION iV ; 345 COURTLAND STREET ATLANTA, GEORGIA 30365 DEC 81 1880 Dear Grantee: As you have probably already heard Congress formally abolished industrial cost recovery on October 21, 1980, when it amended the Clean Water Act, PL 96-483. By deleting a section of the law, grantees were relieved of all obligations to develop and maintain an ICR System or to collect money from their industrial dischargers. In the event, you are still holding ICR money collected for service during the period from March 1, 1973, to December 27, 1977, you must remit fifty percent (50%) plus all interest earned to the Environmental Protection Agency payable to the U. &. Treasury. All other funds, collected between December 27, 1977 and October 21, 1980, belong to the grantee and may be utilized as you deem necessary. If you are now in the process of developing an ICR system, or have retained a consulting firm to do so, you should begin the orderly closeout of any contractual obligations already entered into. If assistance on this matter is needed, please contact the person responsible for administering your grant. In addition to eliminating ICR, Congress also prohibited the funding, after November 15, 1981, of any construction “to treat, store or convey the flow of any industrial user ... in excess of a flow per day equivalent to fifty thousand gallons per day of sanitary waste". The only exception to the November 15, 1981, deadline would be that a Step 2 grant for design of the facility was made prior to May 15, 1980. Regulations implementing the new provisions on industrial capacity are expected to be published in February 1981. In the meantime if you have any questions on this matter please cantact your State Agency or my office. Sincerely yours, Harold W. Hopkins, Chief Construction Grants Management Branch Water Division we . Pos : . ee os | UNFTED STATES ENVIRONNENTAL PROTECTION AGENCY SATE: nec ~5 oo : sussectClass Deviation from 40 CFR 35.909 (b) (2), 35.910-10, 35 .915-1 (a), 35.920-3(b) (8) (44), 35.925-11, 35.928 through 35.9284 and 3§.935-15 enon Zed) zs : aed th . ‘arvey Pippen,/?r., Diwector ~ Grants Administration Division (PM-216) TO: . Regional Administrators On October 21, 1980, President Carter signed P.L. 96-483 which amended several provisions of the Clean Water Act (CWA). Some of those amendments are very technical and we believe they should be implemented immediately. he technical amendments<- 6 Repeal industrial cost recovery; . se, o wetend the reallotment date for fiscal year 4979 funds to September 30, 1981; cs) Permit States to reserve up to 2 percent of each annual allotment based on the amount ce authorized to be appropriated for State Management Assistance; and e Increase the limits for Step 243 grants to : $4 million ($5 million in States with high construction costs). fhe other amendments and some aspects of the industrial cost recovery amendments will require detailed analysis before we can fully implement them. EPA is forming work groups to develop implementation alternatives and reg~ plation revisions. ‘ . fo quickly implement the technical amendments I am, approving the following class deviations<- ; . 40 CFR 35.909 (b) (2)--Step 243 am approving a deviation from §35.909 (b) (2) to permit award of Step 2+3 grants for treatment works with an estimated total Step 3 construction cost of-+ 4%. $4 miliion or less; or, Zo $$ million or less, in States with unusually high eoustruction cost (as identified by the Assistant Administrator for Water and Waste Management) . : c ; . . : . . : . EPA Form 1320-6 (Rev. 3-76} @wBea use of treatment works after December 27, 1977, they should determine what action is appropriate with respect to those funds. No funds from ICR payments to grantees for treatment works use after December 27, 1977, should be paid to EPA. Many current projects include activities related to de- velopment of ICR systems. Such activities Conducted after December 31,1980, will not be eligible for Federal grant agsistance. ‘Therefore, grantees should terminate the ICR activities as soon as possible. However, EPA will fund @evelopment of financial management systems based on user charges designed to assure fiscal integrity of the grantee's entire wastewater’ treatment systems. The Office of Water : Program Operations will istribute sample letters for . Regional/State use in notifying grantees of the actions they ghoulé take to terminate ICR system development. concur: © Code Co #, parE: inl [vr : _ Assistant Administrator Ww for Planning and Management (PH-208) CONCUR: LAGI DATE: 1-24-80 Resistant Acministrator for Water and Waste Management (WH-556) ee Laos CITY OF FORT WALTON BEACH OKALOOSA COUNTY, FLORIDA USER CHARGE AND INDUSTRIAL COST RECOVERY SYSTEMS J.B, CONVERSE & CO., INC. AUGUST, 1979 GENERAL Pursuant to Section 204(b) of the Federal Water Pollution Control Act Amendments of 1972, P.L. 92-500, a Grantee must develop and maintain: (a) .a system of user charges to assure that each recipient of waste treatment services within. the Grantee's service area will pay its proportionate share of the costs of operation and maintenance (including replacement) of all waste treatment services provided by the Grantee. (b) _ an industrial cost recovery system which shall require all present and future industrial users to pay that por- tion of the Grant amount allocable to the treatment of wastes from such users. CITY OF FORT WALTON BEACH OKALOOSA COUNTY, FLORIDA USER CHARGE SYSTEM GENERAL The City of Fort Walton Beach is located on the northwest Gulf Coast of Florida adjacent to Santa Rosa Sound at the north end of Choctawhatchee Bay. It was incorporated as a city in 1941 and selected the city manager form of government in 1953. The topography and weather of Fort Walton Beach are typical of the coastal regions along the Gulf of Mexico with flat, sandy terrain and warm, humid temperatures. The large Eglin Air Force Base complex located adjacent to and surrounding the entire Fort Walton Beach area plays a major role in the economy of the northwest portion of Florida. The employment and activities associated with Eglin Air Force Base directly effect the growth and population of Fort Walton Beach as well as Okaloosa County and northwest Florida. The tourist trade along the "Gold Coast" is another major contributor to the economy and this tourist trade is based on the clean water and beaches which are found within minutes from the "downtown" area. The City of Fort Walton Beach currently serves approximately 6,741 residen- tial customers and approximately 625 commerical customers. The sewer service charges for each user is calculated by taking the monthly metered water consump- ‘tion and applying the existing rate structure. The following table illustrates a breakdown of all initial year users specifying the expected wastewater contri- butions upon which the User Charge System is based. TABLE NO. 1 INITIAL AVG. INITIAL AVG. TYPE OF USER DAILY FLOW (MGD) | YEARLY FLOW (MG) Residential & Commerical 2.55 930.0 Industrial -0- -0- Total 2.55 930.0 EXISTING SYSTEM The existing sewer system consists of 26 pumping stations, approximate 40 miles of various size sewer lines and two waste treatment plants. A. Waste Treatment Plant No. 1: Approximately 90 percent of Fort Walton's population is served by Plant No. 1 which is located 400 feet south of Hollywood Boulevard on Robinwood Drive. This plant was originally constructed in 1955 and underwent some updating and revisions in 1965, It is a trickling filter type secondary treatment plant designed to treat an average flow of 1.7 million gallons per day. B. Waste Treatment Plant No. 2 This small 125,000 gallon per day extended aeration plant was constructed in 1965 to serve a residential area generally east and south of the Municipal Golf Course at Garnier. The plant is located on the same large tract of City owned land as the 18 hole golf course and its proposed 18 hole addition. DESCRIPTION OF THE PROJECT The current project consists of the construction of the following sewer- age facilities: 1, Anew 11.0 MED (Design) Main Pumping Station is located at the existing STP #1 site which will reroute all raw waste from the No. 1 Service Area to a new WWTP. Also included at the Main Pumping Station location will be provisions to accept, store and blend "septic tank pumpout" into the raw waste flow. This material will be treated with the mixed waste at the new treatment plant. Construction of a new 30" Force Main from the Main Pumping Station to the new WWIP. This work also includes a tie-in of raw waste flow from Service Area No. 2, so that this area's flow can be routed to the new WWIP. A new 4.5 MGD (ADF) secondary treatment plant, located in the northern section of the area and adjacent to lands owned by the federal govern- ment at Eglin Air Force Base. The treatment plant is a secondary system utilizing Rotating Biological Contactors as the means of providing carbonaceous removal. Primary and secondary settling is provided as well as degritting and chlorination of the final effluent. Sludge that is generated is thickened and anaerobically digested prior to dewatering by means of vacuum filtration. Laboratory facilities will also be provided. A Holding Pond is being constructed which will provide 9.2 days storage at the average design flow of 4.5 MGD. The pond is being constructed with an impervious bottom and sides, and bermed and fenced for protection. A pumping system (pump dock) will also be provided for the purpose of routing the treated waste to a Spray Irrigation Disposal Field. Construction of a new 20" Force Main from the pump dock to the Spray Irrigation Field. A 492 acre Spray Irrigation Field will be constructed on lands leased from Eglin Air Force Base. The system is designed so that areas can be operated independently of ome another and alternated. A groundwater monitoring system was included in the scope of the work. OPERATING EXPENSES Table No. 2 illustrates the annual cost of operating and maintaining the sewer system and both wastewater treatment plants for the 1978 Fiscal Year. The operation, maintenance, and replacement costs used to establish the base of this User Charge System were determined by an analysis of prior operating ‘costs of the City and engineering projections of those costs associated with the design criteria of the new treatment plant and pumping stations. The operation of the new treatment plant will require the hiring of additional employees, and will consume a greater amount of electricity. The addition of the pumping dock and spray irrigation system will also cause a considerable rise in power costs. Accordingly we estimate the operation, maintenance and replace- ment cost to be approximately $655,000 for the first full year of operation. TABLE NO. 2 ESTIMATED FIRST YEAR OPERATING EXPENSES PERSONNEL SERVICES: Salaries , $140,000.00 Vehicle Repair Salaries 6,400.00 FICA 12,000.00 Health Insurance ~. 9,400.00 Pension Plan 19,400.00 Unemployment Compensation 1,900.00 Workmen's Compensation 10,000.00 UTILITIES 240,000.00 VEHICLE & EQUIPMENT REPAIR 9,400.00 FUEL & OIL 7,000.00 PLANT & SYSTEM REPAIR -40,000.00 OPERATING SUPPLIES & EXPENSE 137,000.00 OFFICE SUPPLIES & POSTAGE : 4,500.00 TRAINING 1,500.00 AUDITING 4,000.00 INSURANCE 10,000.00 BULLDING MAINTENANCE 1,500.00 MISCELLANEOUS ; 1,000.00 TOTAL OPERATING EXPENSES $655,000.00 Pursuant to 40 CFR 35.929 (d) the costs of operation and maintenance of Infiltration/Inflow must be distributed among all users of the Grantee's treatment works system. Accordingly, they have been included in the above calculation. DEBT SERVICE REQUIREMENTS “Over the years the City has financed many improvements to its sewer system through the issuance of Sewer Revenue Certificates and General Obligation Bonds. Table No. 3 lists the consolidated debt service requirements to maturity of all existing issues, as well as the proposed 1979 Utility Tax Revenue issue. TABLE NO. 3 CITY OF FORT WALTON BEACH SEWER REVENUE GENERAL FISCAL YEAR CERTIFICATES | OBLIGATION UTILITIES TAX TOTAL ENDING EXISTING _ BONDS 60% REVENUE CERTI- ANNUAL SEPTEMBER 30 DEBT SERVICE OF 1965 ISSUE FICATES 1979 ISSUE DEBT SERVICE 1979 $. 91,968 $ 19,680 $ 25,561 $ 137,209 1980 89,948 19,095 153,370 262,413 1981 92,927 18,510 168,370 279,807 1982 80,727 17,925 177,245 275,897 1983 78,928 17,340 180,370 276,638 1984 82,127 16,755 178,120 277,002 1985 80,148 16,170 175,870 272,188 1986 82,657 15,585 173,620 271,862 1987 79, 860 176,370 256,230 1988 82,063 173,745 255,808 1989 84,021 171,120 255,141 1990 80, 800 173,495 254,295 1991 83, 280 176,095 259,375 1992 80,580 173,508 254,088 1993 82,880 175,920 -- 258,800 1994 258,020 258,020 1995 260,055 260,055 1996 256,500 256,500 1997 257,500 257,500 1998 ; 257,900 257,900 1999 262,700 262,700 2000 261,600 261,600 2001 264,900 264,900 2002 262,300 262,300 2003 264,100 264,100 2004 265,000 265,000 $1,252, 914 $141,060 $5,323,354 - $6,717,328 The 1979 utility tax certificates will be required to finance the City's share of the present wastewater facilities expansion program. All sewer revenue certificates are secured by a pledge of the revenues derived by Fort Walton Beach from the operation of the sewer plant, and from the proceeds of a tax imposed by the City upon every sale, receipt, purchase, possession, handling, distribution, and use of cigarettes in Fort Walton Beach. The utility tax revenue certificates will be secured by the proceeds of the utilities service tax imposed by the City upon every sale of electricity and butane, hydrogen, and water and telephone service in the City. “qotal reserve requirements for the prior issues have been fulfilled. The 1979 Utility Tax Certificate Issue requires a total reserve of $190,000. O£ this amount, $100,000 has been capitalized in the issue while the remaining $90,000 is to be paid in 24 equal monthly installments. DERIVATION OF THE USER CHARGE Based on the estimated operation, maintenance and replacement costs out- lined above and the initial expected annual wastewater flow (Table 1) the user | charge calculation for the equal strength discharges for the first full year of operation is as follows: User Charge = Total O & M Cost = 655,000 = $.70/1,000 Gals. Total Volume 930,000, 000 SURCHARGE FORMULA In the effort to insure that each User pays his equitable share of opera- tion and maintenance cost in proportion to such Users contribution to the total loading of the Wastewater Treatment Plant, a Surcharge formula was developed to be used in addition to the charges calculated using the normal rate schedule. This surcharge shall be applied to all users whose sewage has suspended solids, or biochemical oxygen demand in excess of the following concentrations: (1) BOD 220 ppm; (2) suspended solids 200 ppm. The additional charge for sewage having concentrations in excess of the foregoing shall be based on the cost per 1,000 Gals. determined according to the following formula: = (B- - : (1) Surcharge (B-220) + i oe 8:34 x $.17 = Cost/1,000 Gals. 2 Where B = Total User BOD in ppm S = Total User SS in ppm i] The surcharge cost will be multiplied by the users metered water consump- tion (in 1,000 Gals.). The calculated amount will then be added to the charges computed under the City's normal rate schedule to arrive at the users total monthly bill. TOXIC POLLUTANTS Any user which discharges any toxic pollutants which cause an increase in the cost of managing the effluent or the sludge of the City's treatment works shall pay the cost of such additional expense as documented by the City. RATE STRUCTURE The monthly sewer charge for collection and treatment of all wastewater discharged into the City's sewerage system is broken-down into two parts. The first part represents the user charge portion which is based on total operation and maintenance costs (refer to Page No. 6 for the derivation of this componant). This rate of $.70/1,000 Gals. is multiplied by the actual monthly water meter reading. For residential customers a maximum usage rate limit of of 16,000 gallons per month has been established. (NOTE: A maximum limit was set because of the nature of water consumption in this general geographic location. A considerable amount of water consumption is used for watering lawns and consequently does not reach the sewer system. Accordingly, an analysis was made of approximately 1,500 representative customer accounts for the months of November, December, January and February. This period was felt to represent a normal usage pattern. Of the four months, December's consumption was found to be greatest. An analysis of December's consumption of those accounts examined, indicated that 97% of the customers used less than 16,000 gallons.) (1) “fhe Analysis of 0 & M Costs for Municipal Waste Treatment Systems" Dames and Moore, for EPA, Feb. 1978 (Average) 7 The second part represents a flat rate per sewer unit (as defined in the ‘City of Fort Walton Beach Sewer Use Ordinance) for recovery of debt service and retained earnings. This amount was computed to be $4.75. Accordingly, the total monthly sewer bill is illustrated as the sum of the aforementioned parts as follows: Total Bill = Consumption (1) ($.70) + $4.75 (No. Units) (1,000 Gals.) The above sewer rate is applicable to all existing and future residential, commercial and industrial customers. (1) Residential consumption is limited to 16,000 gallons. ANNUAL REVIEW Pursuant to Federal Regulation 40 CFR 35.929-2(b) the City of Fort Walton Beach will review it's approved user charge system every two (2) years to deter- mine the wastewater contribution of users, the total cost of operation and maintenance of the treatment works and the adequacy of its user charge rate. After review Fort Walton Beach will revise (if necessary) the charges for users to accomplish the following: (1) Maintain the proportionate distribution of operation and maintenance costs among users (2) Generate sufficient, revenue to pay the total operation and maintenance costs necessary to the proper operation and maintenance (including replacement) of the treatment works (3) .Apply excess revenues collected from the user charge portion of the rate structure to the costs of operation and maintenance for the next year and adjust the rate accordingly. NOTIFICATION Each user of the City of Fort Walton Beach Wastewater Treatment Works will be notified on an annual basis, in conjunction with a regular monthly bill, of the rate and that portion of the user charges which are attributable to waste- water treatment services. The month in which said notification is issued will be at the discretion of Fort Walton Beach. In no event, however, will the length of time between notification exceed 12 months. CITY OF FORT WALTON BEACH OKALOOSA COUNTY, FLORIDA INDUSTRIAL COST. RECOVERY SYSTEM 17C1-1.5 J. B. Converse & Co., Inc. August, 1979 Pursuant to 40 CFR 35.935-15(a)(2), a grantee must obtain approval of its industrial cost recovery system on or before June 30, 1979, or no further Step 3 grant payments will be made until the system is approved. The industrial cost recovery system presented herein is based on current guidelines promulgated by the U.S. EPA. Because Congress has imposed a moratorium on the collection of ICR payment (until June 30, 1979) in order to study the equitability and efficiency of the system, the material presented herein should not be construed as final. Subsequent to Congressional resolution of the direction that ICR should assume, this system will be updated, accordingly. INTRODUCTION Section 204(b) of the Federal Water Pollution Control Act Amendments of 1972 (P.L. 92-500), as amended and supplemented by the Clean Water Act of 1977 (2.1L. 95-217), requires industrial users (as defined herein) of federally funded treatment works to pay that portion of the federal grant amount which is allocable to the treatment of wastes from such users. The intent of this provision is to remove, or at least mitigate, the advantages that accrue to industries connected to publicly~owned treatment works (POTWs). Since the same industrial waste treatment requirements, in theory, pertain to industries served by POTWs as well as to those not served, and because only industries served by POTWs benefit in the EPA Construction Grants Program, Congress felt that this apparent subsidization of selected industries "from funds, provided by taxpayers at large" was inappropriate. Accordingly, Congress decided that some remuneration of the federal grant by industries connected to POTWs was needed. In accordance with the regulations promulgated by the Environmental Protection Agency (the "EPA') on February 11, 1974, and modified from time to time since then, and implemented in the Code of Federal Regulations, Title 40, Part 35, Subpart E, the City of Fort Walton Beach (hereinafter called the "City") has developed an Industrial Cost Recovery ("ICR") System whereby each industrial user of the City's wastewater treatment plant shall pay its proportional share of the total federal grant allocated to the facilities described herein. Subsequent to the approval of the Regional Administrator of EPA, the City will administer and maintain the ICR System. CUSTOMER CLASSIFICATION For purposes of administering the ICR System, an industrial user is defined as follows:* (a) Any nongovernmental, nonresidential user of the Fort Walton Beach wastewater treatment works who discharges more than the equivalent * .Federal Register, 40 CFR 35.905 rs ca pon, of 25,000 gallons per day (gpd) of sanitary waste and who is iden- tified in the Standard Industrial Classification Manual, 1972, Office of Management and Budget, as amended and supplemented, under one of the following divisions: ** Division A. Agriculture, Forestry, Fishing Division B. Mining . Division D. Manufacturing Division E. Transportation, Communication, Electric, Gas and Sanitary Services Division I. Services (b) Any nongovernmental user of the City's wastewater treatment works who discharges wastewater that contains toxic pollutants or poisionous solids, liquids, or gases in sufficient quantity either singly or by interaction with other wastes, to contaminate the sludge, or to injure or interfere with the sewage treatment process, or which constitutes a hazard to humans or animals, creates a public nuisance, or creates any hazard in or has an adverse effect on the stream receiving the treatment works discharge. In determining the appli- cability of (b) the City will rely on the rules and regulations promulgated pursuant to the Federal Water Pollution Control Act Amendments of 1972, Clean Water Act of 1977, Resource Conservation and Recovery Act of 1976, Toxic Substance Control Act, Clean Air Act, and any other pertinent governmental legislation as such may be amended or enacted from time to time. In computing the amount of an industrial user's discharge for purposes of ICR, the regulations permit the exclusion of domestic wastes or discharges from sanitary conveniences, provided that the industrial user is not classified in category (b). The City of Fort Walton Beach has no industrial customers which contri- bute process type wastewater or wastewater whose load characteristics exceed those of domestic strength sewage. The City has elected, however, to prepare an Industrial Cost Recovery System in accordance with current Federal Regulations. In the event that an industry which is subject to Industrial Cost Recovery locates in the service area of the City the subject Industrial Cost Recovery System will be modified prior to that industry's connection to the system. *k Exhibit 1 delineates a more comprehensive breakdown of each division. 2 INDUSTRIAL COST RECOVERY FORMULA The Industrial Cost Recovery Formula contained herein bases each indus- trial user's share on all factors which significantly influence the cost of constructing the treatment works. Factors, such as strength, volume and delivery flow rate characteristics have been considered and are included to insure a proportional distribution of the Grant amount allocable to the collection and treatment of industrial waste. In developing a formula which would satisfy the above requirements, the basic format used in the February, 1976 Industrial Cost Recovery Guidelines was followed. The components of the new treatment plant were allocated to the extent possible into the functional categories associated with the design: 1. Wastewater flow per day 2. Pounds of biochemical oxygen demand (BOD) per day 3. Pounds of suspended solids (SS) per day Into each category are placed those construction costs which relate most to the treatment of each characteristic: in the City's wastewater. General costs, those costs not identifiable as relative to the treatment of any particular wastewater characteristic, were arbitrarily divided into each category according to the same percentages that each category subtotal is to the cost subtotal without general costs. The aforementioned general costs include such items as Engineering, _ Administration, and Contingencies. The federal grant is allocated to the treatment plant design parameters based on the summation of the construction and general costs. These figures are then put on a unit basis in accordance with the design parameters. (Any Step 1, 2, or 3 grant costs associated with infiltration/inflow correction, treatment of stormwater, unreserved excess capacity, or "non-excessive" infiltration/inflow are deducted from the total construction costs prior to calculating the industrial cost recovery formula. (Please refer to Exhibit ~ Nos. 2, 3, and 4.) The unit figures are applied to a given industry's wastewater charac- teristics in order to determine the total ICR charge attributable to that industry. This charge may be repaid by the industry over a 30-year period, in equal installments, and with no additional charge for interest. The following equation has been developed to summarize the aforesaid discussion: TcR = g, St +g, Br+e, St Qp By 8 . RP where: ICR .= Annual industrial cost recovery payment of an industrial user 7 RP = Industrial cost recovery period, 30 years & = Federal grant attributable to the treatment of flow Q oF Wastewater flow discharged by industrial user in 1,000 gallons per day Q = Design capacity for ICR of the plant in terms of flow in 1,000 galions per day . 8 = Federal grant attributable to the treatment of biochemical oxygen demand By OF Amount of BOD discharged by industrial user, in pounds per day Bo = Design capacity of the plant in terms of BOD, in pounds per day 8&3 = Federal grant attributable to the treatment of suspended solids 8; = Amount of SS discharged by industrial user, in pounds per day Sp = Design capacity of the plant in terms of 88 in pounds per day In the case of Fort Walton Beach, the ICR equation for the new wastewater facilities based on Exhibit Nos. 2, 3, and 4 is as follows: ICR $1,170.29 Qy + 151.23 BL + 235.91 S, 30 H 39.00 Qy + 5.04 By + 7.86 Sz EXCLUSIONS A. The following users are exempt from assessment of ICR charges: 1. Governmental users 2. Residential users 3. Publiciy-owned facilities, such as hospitals, which discharge non~- sanitary wastes 4. Industrial (or commercial) users who discharge domestic wastes or wastes from sanitary conveniences (hereinafter referred to as "dry industries") Any nongovernmental user who discharges any toxic substance that is deleterious to the treatment process or is incompatible with or mitigates the utility of the sludge, is not exempt from ICR charges. Because the City has exercised its option to exclude "dry" industries from ICR, the City must deduct the estimated sanitary wastewater from the total wastewater discharge of an industrial user who discharges a combination of process wastewater and wastewater from sanitary convenience, prior to computing the ICR payment of such industrial user. The determination of the estimated sanitary wastewater will be based on the following criteria: Flow: 35 gallons per employee per day BOD: 0.085 ib. per employee per day SS: 0.100 ib. per employee per day Where actual metered flows have been provided for segregating sanitary and process wastewater flows, the actual flow data will be used to the fullest extent possible. Subsequent to applying the sanitary wastewater exclusion, an industrial user may still be exempted if its process discharge does not have a volume exceeding 25,000 gpd nor the weight of BOD or SS or other constituents exceeding ‘the weight equivalent to that found in 25,000 gpd of sanitary waste. For example, an industrial user who discharges 10,000 gpd of process waste and 20,000 gpd of sanitary waste would not be subject to ICR if, after excluding the sanitary waste, it can be demonstrated that the 10,000 gallons of process waste is less than the equivalent of 25,000 gallons of domestic waste. Utilizing published values for average strength domestic waste,* the threshold values for the equivalent of 25,000 gallons of domestic waste were computed as follows: Flow: 25,000 gallons per day BOD: 41.70 lbs. per day SS: 41.70 lbs. per day If an industrial user's process wastewater does not exceed any of the above constituent values, then said user shall not be obligated to pay an ICR charge. If an industrial user's process wastewater exceeds any of the above constituent values, then said user shall incur an ICR charge. In the event that an ICR charge is assessed, said charge will be predicated on the total flow and pollutant loadings of the process wastewater; unlike the sani- tary wastewater exclusion concept, there will be no credit for the first 25,000 gallons of equivalent domestic waste. B. COSTS EXCLUDED FROM ICR COMPUTATIONS 1. In accordance with Section 6C of the 1976 Federal Industrial Cost Recovery Guidelines, those costs associated with the building of unreserved excess capacity into this facility were deleted. 2. Pursuant to Section 8A(1) of the Guidelines, those costs associated with the construction of capacity to convey and treat wastewater flows attributable to infiltration and inflow, have been deleted. * Metchalf and Eddy, Inc. Wastewater Engineering: Collection Treatment Disposal, McGraw-Hill, Inc. 1972 METHOD OF PAYMENT In the year construction is completed and the ICR period begins, the ICR formula will be recomputed to reflect the final construction costs and federal “grant. Based on each industry's wastewater characteristics, its annual ICR pay- ment will be determined by the City. The first payment will be predicated on a pro rata share of the ICR period and the fiscal year of the City. Subsequent payments will emcompass the full annual ICR charges and will correspond with the City's fiscal year. ICR payments will be recovered over a 30-year period, and will be free from interest charges. Industry may elect to fulfill its obligation by making a lump sum payment for its entire share. In no event will such an arrangement result.in either a prepayment penalty or discount. All payments for the first and subsequent years during which the ICR system is in effect will be due and payable within 90 calendar days after the end of the City's fiscal year. Industry may elect to make periodic installment pay- ments in lieu of an annual payment. In no event will the number of instaliments exceed four. APPEAL PROCEDURE Following the monitoring of each industrial user's wastewater character- istics, the City will determine that industry's Industrial Cost Recovery Payment in accordance with the aforementioned formula. The Industry will then be noti- - fied in writing of the amount of its required payment together with the infor- mation and calculation necessary at arriving at same. If an industry is in disagreement with the specified amount or any of the information specific to its calculation, it will have ninety (90) days to appeal its ICR assessment. The appeal procedure is outlined as follows: 1. The industry will have the right to review all calculations used to arrive at its payment amount. 2. The industry will have the right to review the results of the monitoring of its wastewater sample and the determination of its wastewater characteristics. 3. The industry, at its own cost, may have its wastewater discharge analyzed by any registered professional engineer. 4. In the event that the aforementioned analysis indicates results contrary to those used by the City in calculating the ICR pay- ment, then a third sample will be taken under the direct supervision of both the City's engineer and the industry's engineer. The results of this analysis will then be binding upon both parties, and no further appeals will be allowed. The analysis of samples obtained shall be made in accordance with the latest edition of the Standard Methods for the Examination of Water and Sewage as published by the American Health Association. DISCONTINUANCE OF USE Any industrial user who intends to discontinue use of the Fort Walton Beach treatment works, including termination of any agreement for reserve capacity, shall notify the City in writing not later than 30 days prior to the discon- tinuance (any contractual arrangements that are more stringent shall take precedence thereto). Beginning on the date of discontinuance, the ICR assess- ment of said industry shall cease. Total ICR recovered from an industry which discontinues its use during the ICR period shall be the Federal cost of the capacity used multiplied by the ratio of its period of use to the ICR period. The remaining industrial users are not obligated to assume the ICR charges unrecovered due to the departure of an industrial user. Cancelation of ICR charges because of discontinuance of use does not relieve any industrial user from any contractual obligations relative to the City's User Charge System. NEW INDUSTRIES Any industrial user, who connects to the Fort Walton Beach treatment works subsequent to the implementation of the City's ICR System, shall be required to make ICR payments calculated from the date its use is initiated. Said payment shall continue for the unexpired portion of the ICR period or until the industry ceases to use said facilities. RESERVE CAPACLTY Any industrial user may enter into an agreement with the City to reserve a certain capacity in the treatment works. * In such cases, the ICR payment shall be based on the total reserve capacity. If the actual discharge exceeds the reserve capacity, then the ICR payment shall be increased to reflect the actual use. FUTURE IMPROVEMENTS In the event the Fort Walton Beach wastewater treatment works are expanded or upgraded subsequent to the completion of the 1978 capital improvement program, the capital costs associated with such construction will be determined in the manner previously outlined herein (please refer to "Industrial Cost Recovery Formula"). Allocation of costs‘to industrial users will be in addition to existing ICR payments and will be based on the proportionate share of the federal grant associated with the expansion or upgrading, except that in the case of an expansion, an industrial user with an existing reserve capacity arrangement shall not be obligated to pay additional ICR charges unless said user's use exceeded its reserve capacity. * Federal regulations, require an executed agreement between a significant industrial user and a grantee preparatory to award of a Step 3 grant. A significant industrial user, for ICR purposes, is defined as an industry utilizing 10% of either a treatment works design capacity or pollutant loading. The City does reserve the right to collect ICR payments for future improve- ments on a system-wide basis rather than a project-by-project basis. The total amount collected from all industrial users on a system-wide basis shall equal > the aggregate of the amounts. which would be collected on a project~by-project basis. Under a system-wide basis, all of the design parameters for all ICR required projects would be totaled and the federal funds apportioned accordingly. An industrial user's ICR charge would be determined by dividing its wastewater characteristics by total system capacities and multiplying the result by the grant amounts allocated to each design parameter. MONITORING In an effort to minimize the costs associated with administering this Industrial Cost Recovery System, a plan of monitoring was developed to effectively utilize the testing requirements and resultant data that is mandated by the Rules and Regulations of the City's National Pollution Discharge Elimination System (NPDES) Permit No. FL0026883. By taking this apptoach, the City will eliminate the duplication of costly sampling and laboratory analysis. In consonance with the City's NPDES Permit: 1. A major contributing industry is defined as one that: (a) has a flow of 50,000 gallons or more per average workday; (b) has a flow greater than five percent of the flow carried by the municipal system receiving the waste; (c) has in its waste a toxic pollutant in toxic amounts as defined in standards issued under Section 307(a) of the Act; or (d) has significant impact, either singly or in combination ‘with other contributing industries, on the treatment works or the quality of its effluent. 10 2. Each such industry shall be monitored on an annual basis with the results thereof to be submitted to the permitting Agency on Page IV of Standard Form A - NPDES Application for Permit to Discharge Wastewater (EPA Form 7550-22). Each major industry so sampled may have a representative present when such samples. and/or data are obtained, but such right shall not limit the City's right of access to the metering stations to obtained such samples and/or data. The standard laboratory procedure for any laboratory analysis made in pursuance of this ICR System shall be that found in the latest edition of “Standard Methods for the Examination of Water and Sewage" published by the American Public Health Association. A minor contributing industry will be defined as one whose wastewater con- tribution contains process waste, and who does not meet any of the criteria of major industrial users as defined above. Monitoring of these industries will be done on a random basis at not less than three-year intervals. The testing procedure and reporting requirements will be the same as outlined above. In accordance with Federal Regulation 40 CFR .35.928-1(d), an industrial user's ICR Payment will be adjusted if that industry's strength, volume, or delivery flow rate characteristics are found to vary more than twenty percent (20%) of its original data used for the computation of its first ICR Payment. ADMINISTRATION AND FUNDS MANAGEMENT The City will maintain, for the duration of the Industrial Cost Recovery period, such records as are necessary to document compliance with applicable Federal Grant requirements. Such records will include, but are in no way limited to, the following: 1. documentation of the final Grant amount il ot, the originally approved Industrial Cost, Recovery System and all documentation related thereto all subsequent revisions to the Industrial Cost Recovery System and all documentation related thereto a list of contributing industries and their wastewater loads to the System information on the total wastewater loading of the System the City's notification to EPA of initiation of operation of the Industrial Cost Recovery System all approval(s) of the use of retained funds the record of the City's annual payments to EPA and documentation related thereto records relating to retention and investment of those funds set aside for future expansion and reconstruction. Disposition of ICR payments received from industrial users will be as follows: The City will return 50% of all amounts, together with any interest earned thereon, to the U.S. Treasury within 120 days after the close of the fiscal year. The City will retain 50% of all amounts recovered from industrial users and such monies will be distributed in the following manner: (a) .80% of the retained amounts, together with any interest earned thereon, will be deposited in an interest-bearing account to be used solely for the eligible costs of the expansion, upgrading, or reconstruction* of Fort Walton's treatment works, which are necessary to meet the requirements * Reconstruction in the context used herein shall not be construed to mean minor repairs and replacements usually performed as part of normal system maintenance. 12 of P.L. 92-500 and P.L. 95-217. The commitment of any funds for expansion, upgrading, or reconstruction purposes will be subject to the written approval of the EPA Regional Administrator. (b) The remainder of the retained amounts will be used by the City to defray the costs of administering the ICR system, i.e., monitoring, sampling, billing, and funds management. Any balance in these "discretionary" funds will be used to supplement annual operating revenues, but in no way will they be used for construction of industrial pretreat- ment facilities or as direct rebates to contributing industrial users. All ICR funds recovered from the annual accounting period shall be deposited by the City in an interest-bearing account (hereinafter.referred to as the "ICR Account") which will be fully collateralized by obligations of the U.S. Govern ment or any agency thereof. Monies deposited in said account will be invested in obligations of the U.S. Government or in obligations guaranteed as to principal and interest by the U.S. Goverment or any agency thereof. Within 120 days after completion of the fiscal year, the City will return 50%, plus the interest earned on the ICR Account, to the U.S. Treasury. Of the remaining monies in the ICR Account, 80%, plus the interest earned, will be withdrawn and deposited in an interest-bearing account (hereinafter referred to as the "ICR Capital Account"). The ICR Capital Account will be collateralized and the monies will be invested in the same manner as the ICR Account. Funds on said ICR Capital Account can only be used for expansion, upgrading, or reconstruction as previously described. After making the required transaction, the balance in the ICR Account will be withdrawn and deposited in the Revenue Fund for administration of the ICR System. 13 SEVERABILITY The City recognizes that its ICR system must be acceptable to the EPA and is subject to modification from time to time as such may be necessary to comply with EPA regulations. Accordingly, it is understood that details of the ICR system are subject to change. It is the intent of the City to perform, from time to time, all such acts and functions necessary for the implementation of the ICR system as it exists, whether or not specified herein, for the purpose of ensuring that the conditions of the Federal Grant with respect to the ICR system shall at all times be in compliance, 14 EXHIBIT NO. 1 STANDARD INDUSTRIAL CLASSIFICATION Titles and Descriptions of Industries Division A.. Agrigulture, forestry, and fishing Major Group 01. Agricultural production-crops Major Group 02. Agricultural production-livestock Major Group 07. Agricultural services Major Group 08. Forestry Division B. Mining Major Group 10. Metal mining Major Group 11. Anthracite mining Major Group 12. Bituminous coal and lignite mining Major Group 13. Oil and gas extraction Major Group 14, Mining and quarring of nonmetallic minerals, except fuels Division D, Manufacturing Major Group 20. Food and kindred products Major Group 21. Tobacco manufacturers Major Group 22, Textile mill products Major Group 23. Apparel and other finished products made from fabrics and similar materials Major Group 24. Lumber and wood products, except furniture Major Group 25. Furniture and fixtures Major Group 26. Paper and allied products Major Group 27. Printing, publishing, and allied industries Major Group 28. Chemicals and allied products Major Group 29. Petroleum refining and related industries Major Group 30. Rubber and miscellaneous plastics products Major Group 31. Leather and leather products Major Group 32. Stone, clay, glass, and concrete products Major Group 33. Primary metal industries Major Group 34. Fabricated metal products, except machinery, and transportation equipment Major Group 35. Machinery, except eletrical Major Group 36. Electrical and electronic machinery, equipment, and supplies Major Group 37. Transportation equipment Major Group 38. Measuring, analyzing, and controlling instruments; Major Group. 39. photographic, medical and optical goods; watches and clocks Miscellaneous manufacturing industries Division E. Transportation, communications, electric, gas and sanitary services Major Group 40. Railroad transportation Major Group 41. Local and suburban transit and interurban highway passenger transportation Major Group 42. Motor freight transportation and warehousing Major Group 43. U. S. Postal Service Major Group 44. Water transportation Major Group 45. Transportation by air Major Group 46. Pipe lines, except natural gas Major Group 47. Transportation services Major Group 48. Communication Major Group 49. Electrical, gas, and sanitary services EXHIBIT NO. 1 PAGE 2 Division I. Services Major Major - Major Major Major Major Major Group Group Group Group Group Group Group 70. 72. 73. 75. 76. 78. 79. 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Ov6*STT (0%) OVE ‘STI (09) 078‘ LvE 002 °62LS yoog dumg 9 puog 3uTpToH PIeTA voTyesTzszy 000‘ 88 000 ‘88 Z °ON woTQeIS. dung 009‘ L£z€ 009 ZZE uotieqIg Burdumg urey (07) 096°96S‘T (SZ). 0OT ‘866 (se) Ove‘ L6€E‘T 00266 6E. $ quel JUeUQReIL TeqeMaqseMy % % % ss cog MOTE 1S00 - TWLOL ° SLS00 INVdD TVagdsy 10 NOLLVOOTIV @ *OMN LIGTHxa a EXHIBIT NO. 3 CALCULATION OF DESIGN VALUES INDUSTRIAL COST RECOVERY Type of Account Estimated Existing Domestic Contribution (D estimated Existing Commercial Contribution Estimated Existing Industrial Contribution Sub-Total (2) unreserved Excess Capacity Total Design Capacity (3) ess Non-excessive 1/1 Less Unreserved Excess Ca Design Capacity for ICR Purposes Federal Grant No. of Accounts pacity Cc A B c Flow BOD ss GPD (1bs/Day) (1bs/Day) -0- -0- -0- 3,450,000 6,330 5,750 1,050,000 1,920 1,750 4,500,000 8,250 7,500 350,000 - . 1,050,000 1,920 1,750 3, 100,000 6,330 5,750 $3,627,900 $957,300 $1,356,500 (1) Some commercial establishments are included in Division I, and as such, have an ICR obligation (2) Unreserved Excess Capacity 1,050,000 = 23.3% Total Design (3) Non-Excessive I/I 4,500,000 350,000 = 7.78% Total Design 4, 500,000 oe, EXHIBIT NO. 4 CAPITAL COSTS PER UNIT OF TREATMENT FLOW Federal Grant Allocable to Flow Design Flow Cost Per 1,000 Gals. $3,627,900 3,100 BIOCHEMICAL OXYGEN DEMAND (BOD) Federal Grant Allocable to BOD Design BOD Cost Per Lb. of BOD = $957,300 6,330 SUSPENDED SOLIDS (SS) Federal Grant Allocable to SS Design SS : Cost Per Lb. of SS = $1,356,500 5,750 ied Hou ii oot $3,627,900 3.1 MCD $§ . 1,170.29 $957,300 6,330 Lbs. $ 151.23 $1,356,500 5,750 Lbs. $ 235.91