Fort Walton Beach — Ordinance 708 — reading text

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