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#2 Public hearing and action to adjust hauled waste service charges (File Ord. #2011-486)DIVISION OF PUBLIC WORKS MEMORANDUM May 24, 2011 TO: City Council FROM: Daniel L. Lynch, Utility Director SUBJECT: Second Reading, Public Hearing and Action on a Proposed Ordinance Amending the City’s Wastewater Facility and Sewer Use Ordinance in Order to Adjust Hauled Waste Service Charges as Set Forth in Chapter 13.18 of the Code of Ordinances of the City of Janesville (File Ord. 2011-486) Summary The City of Janesville Wastewater Treatment Plant (WWTP) regularly receives bulk waste delivered to it by liquid tanker trucks. This liquid waste material is typically domestic waste from residential septic or holding tanks, but sometimes commercial or industrial facilities also generate liquid wastes that need to be properly disposed of. The Wisconsin Department of Natural Resources generally requires municipalities which have accepted State of Wisconsin low interest loans for wastewater collection or treatment plant projects to accept these bulk liquid wastes unless there is a specific reason to reject the waste. Department Recommendation The Administrative Services Department and Wastewater Utility recommend that, following the public hearing, the City Council support a motion to adopt File Ordinance 2011-486 amending the City’s Wastewater Facility and Sewer Use Ordinance. Manager’s Recommendation The City Manager concurs with the recommendation of the Administrative Services Division and the Wastewater Utility. Suggest Motion Move to approve File Ordinance 2011-486 Analysis The bulk waste rates charges levied under this program are established by ordinance (Ch 13.18.050—Hauled Waste Service Charge). These charges are intended to recoup the costs incurred by the Wastewater Utility for treating wastewater delivered by truck to the treatment plant. This wastewater delivered to the treatment plant generally comes from septic or holding tanks located on rural properties outside the City of Janesville. In 2010 when the general wastewater rates were increased to reflect the anticipated construction costs of the treatment plant upgrade and expansion, these bulk waste rates were not adjusted. This ordinance is intended to correct that oversight and establish new bulk waste rates more in line with the costs incurred by the Wastewater Utility to treat these bulk wastes. The bulk waste program receives approximately 900 trucks per year which carry about a million gallons of septage and a half million gallons of holding tank waste per year. Including maintenance, staff and capital repayment costs the Utility expects to spend approximately $52,000 to $55,000 per year. The bulk waste program generated about $35,000 in revenue in 2010 using the current bulk waste rates. Using the proposed rates this program would have generated approximately $57,000. The following table illustrates the information in the above paragraph. 2010 Bulk Waste Liquid Waste Current Rates Proposed Rates Program Received (Gallons) $30 Septage $50 Septage $7.50 Holding $9.50 Holding Septage 971,980 $29,160 $48,599 Holding 521,700 3,913 4,956 Other/Misc 62,250 1867 3112 Annual Fee * 450 Totals 1,555,930 $34,940 $57, 117 * Administrative fee is only issued on initial application Twenty-two Wisconsin municipalities were surveyed regarding their acceptance of and fees charges for liquid waste. Seventeen of those communities accept septage and holding tank waste. The average charge for those seventeen communities was $49.43 per thousand gallons for septage and $9.11 per thousand gallons for holding tank waste. The largest community not accepting septage was less than half the size of Janesville the other four were much smaller. (Smaller plants are more susceptible to operational upsets to their treatment process.) Charges under this program are intended to generate sufficient funds to allow this program to operate without subsidy by other customers of the Janesville Wastewater Utility. The proposed rate adjustment will allow this to happen. The proposed rates also need to be reasonable and appear to meet that test as evidenced by their similarity to other communities. cc: Eric Levitt, City Manager Jay Winzenz, Director of Administrative Services Wald Klimczyk, City Attorney ORDINANCE NO. 2011-486 An Ordinance Amending the City’s Wastewater Facility and Sewer Use Ordinance in Order to Adjust Hauled Waste Service Charges, as Set Forth in Chapter 13.18 of the Code of Ordinances of the City of Janesville THE COMMON COUNCIL OF THE CITY OF JANESVILLE DO ORDAIN AS FOLLOWS: SECTION I. Section 13.18.050 B.1. (“Application Fee”) of the Code of General Ordinances of the City of Janesville is hereby amended as follows: 1.Application Fee. To defray annual program administration costs, a non-refundable fee of $50.00 shall be paid by the applying licensed hauler at the time of the application. Once the application is approved by the Director, the licensed hauler will be authorized to discharge residential septage and/or holding tank waste at the treatment plant for a period of one year. All other liquid wastes require a separate specific approval of the Director prior to their discharge. A new application and $50.00 non-refundable fee must be submitted each year. SECTION II. Section 13.18.050 B.2. (“Septage”) of the Code of General Ordinances of the City of Janesville is hereby amended as follows: 2.Septage. For each 1,000 gallons or portion thereof of typical strength septage (less than 7,000 mg/L BOD and /or 15,000 mg/L SS) there shall be a charge of $50.00. If analytical testing determines the strength of the septage to be higher than typical values as indicated above, an additional charge shall be levied, based upon the unit charges as indicated in Section 13.18.040 above, and upon the increased pounds of BOD and /or SS over and above the typical strengths as stated in this paragraph. SECTION III. Section 13.18.050 B.3. (“Holding Tank Wastes”) of the Code of General Ordinances of the City of Janesville is hereby amended as follows: 3.Holding Tank Wastes. For each 1,000 gallons or portion thereof of typical strength holding tank waste (less than 600 mg/L BOD and /or 1,800 mg/L SS) there shall be a charge of $9.50. If analytical testing determines the strength of the septage to be higher than typical values as indicated above, an additional charge shall be levied, based upon the unit charges as indicated in Section 13.18.040 above, and upon the increased pounds of BOD and /or SS over and above the typical strengths as stated in this paragraph. st SECTION IV. This ordinance and the above rates shall take effect on the 1 day of July 2011. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner Dongarra-Adams Eric J. Levitt, City Manager Liebert McDonald ATTEST: Rashkin Steeber Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: Wald Klimczyk, City Attorney Proposed by: Utility Director Prepared by: Utility Director