1983-05 Sewer Treatment PlantRESOLUTION NO. 83-5
WHEREAS, the City of Okeechobee has applied for funds from the Environmental
Protection Agency to assist in the construction of a 201 are -wide Wastewater Treat-
ment Plant; and
WHEREAS, the United States Environmental Protection Agency requires the develop-
ment of rules, regulations and user charges; and
WHEREAS, the City of Okeechobee is desirous of complying with the rules and
regulations of the United States Environmental Protection Agency,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE,
FLORIDA AS FOLLOWS:
THE USER CHARGE SYSTEM
Section 1. Introduction
The City of Okeechobee plans to construct a 0.6 MG Wastewater
Treatment Plant. The user charge (UC) system presented in this
report is designed to equitably distribute to all users the
operation, maintenance, minor replacement and debt service
costs of the wastewater collection, transportation, treatment
and disposal system operated by the City of Okeechobee. The
system presented in this report should be considered to be
preliminary as it is based on estimated operation and main-
tenance costs. After the new treatment works has been operated
for a period of one year, it is recommended that the system be
re-examined in the light of actual expenditures and revised or
updated as required. The wastewater that is expected to be
discharged to the system are not expected to exceed the following
Base Line Waste Strengths.
BOD5 = 300 mg/l
(bio -chemical oxygen demand)
S.S. = 300 mg/i
(suspended solids)
Section 2. The User Charge System
In accord with EPA guidelines, the charges that will be assessed
each user will reflect, as far as possible the actual cost
incurred in order to serve that user. Those costs can be thought
of as falling into two (2) categories: 1. readiness to serve
cost (fixed cost); (2) costs of treating wastes of a quantity and
quality falling into the range of what is normally expected from
a domestic user. Any waste that is greater in strength than what
is normally expected from a domestic user will not be accepted
into the City's system until it is pretreated to reduce the
strength to what is normally expected from a domestic user.
In order to determine the costs associated with each of the above
listed categories, it was first necessary to prepare a proposed
budget for the treatment works. (see table 1)
Next it was necessary to separate operation and maintenance costs
into two categories. (see table 2) Costs were broken into fixed
and variable costs, i.e., costs that will be incurred regardless
of wastewater flow. Variable costs were taken as those costs depend
on actual flow experienced by the wastewater treatment system
• Base line values were established to define what was meant by
normal waste quantities and strengths. For flows having values
equal to or less than those base line values, sewer rates based
on a constant value per unit quantity will apply. For flows of
extraordinary strength, the City will require the necessary
pretreatment by the customer before the waste can be discharged
into the City System.
• The results of system user charges for the City of Okeechobee
are developed in Table 3. Readiness to serve costs will be
recovered by use of a standard minimum charge determined by
system fixed costs. Costs associated with quantity of waste will
be recovered based on variable costs.
Also an additional method of developing a user charge is out-
lined in Table 4. These calculations are based on the total
costs to operate and maintain the system divided by the annual
flow expected through the plant.
The results of this method will require the customer to be
billed according to the volume of water metered through the
water meter each month.
Table 1
Proposed Budget to cover operation and maintenance activities and
Debt Service for the City of Okeechobee.
Cost Proposed
Category
Salaries
$ 78,000.
Support Service
5,300.
Administration
25,000.
Electricity
50,000.
Vehicle Expense
10,000.
Chemicals
20,000.
Lab and Office Expense
7,500.
Engineering
2,500.
Lab Testing
1,000.
Insurance
8,000.
Telephone
1,000.
Training and Travel
1,000.
Equipment Rental
500.
Equipment Replacement
1,500.
Totals $ 211,300.
Debt Service
318,590.
$318,590. year
Total $ 529,890.
Table 3
The sewage from the average user is not expected to exceed the
strength as listed in the introduction. The base user charges
can be based on flow and total variable cost plus the fixed
cost.
User Charge = Fixed Cost + Variable Cost
No. of Sewer Customers Total Water Treated
X water consumption of individual customer
Fixed Cost = $400,790. yr. / $33,399. monthly
Variable Cost = $129,100.
No. of Customers = 2,156
Anual Water Usage = 212,474,000 gal.
$ 33,399./ month
2,156 users = $15.49 Base User Charge
$ 129,100. _ .61 per 1,000 gal.
212,474,000
Example user charge calculation:
Ask 10,000 gal. per month
Mr 10,000 X $.61/1000 = $6.10
Plus Base Cost = $15.49
$21.59 per month
Table 2
Segregation of Budgeted
Costs into Fixed
and "Variable Expenditures
for City of Okeechobee.
• Cost
Fixed
Variable
Total
Category
Salaries
$
39,000.
$ 39,000.
$ 78,000.
Support Service
5,300.
-
5,300.
Administration
25,000.
-
25,000.
Electricity
1,200.
48,800.
50,000.
Vehicle Expense
1,200.
8,800.
10,000.
Chemicals
1,200.
18,800.
20,000.
Lab & Office Exp.
1,000.
6,500.
7,500.
Engineering
-
2,500.
2,500.
Lab Testing
-
1,000.
1,000.
Insurance
8,000.
-
8,000.
Telephone
300.
700.
1,000.
Training & Travel
-
1,000.
1,000.
Equipment Rental
-
500.
500.
Equipment Replacement
-
1,500.
1,500.
Totals
$
82,200.
$ 129,100.
$211,300.
Debt Service
$
318,590.
-
$318,590.
Totals
$
400,790.
$ 129,100.
$529,890.
Table 3
The sewage from the average user is not expected to exceed the
strength as listed in the introduction. The base user charges
can be based on flow and total variable cost plus the fixed
cost.
User Charge = Fixed Cost + Variable Cost
No. of Sewer Customers Total Water Treated
X water consumption of individual customer
Fixed Cost = $400,790. yr. / $33,399. monthly
Variable Cost = $129,100.
No. of Customers = 2,156
Anual Water Usage = 212,474,000 gal.
$ 33,399./ month
2,156 users = $15.49 Base User Charge
$ 129,100. _ .61 per 1,000 gal.
212,474,000
Example user charge calculation:
Ask 10,000 gal. per month
Mr 10,000 X $.61/1000 = $6.10
Plus Base Cost = $15.49
$21.59 per month
Table 4
The sewage from the average user is not expected to exceed
the strengths listed in the introduction. The user charges
can be based on the total budget cost and the anticipated flow.
User charge per 1,000 gallons = Total BudgetTotal Flow
X water consumption of individual customers
Total Budget $529,890.00
Annual Flow 212,474,000 gallons
529,890.
212,474 = $2.49 per 1,000 gallons
Example user charge calculation:
10,000 gallons of water metered.
10,000 gallons X $2.49/1000 gal. = $24.90
Section 3. Summary
The City has developed a proposed user charge as outlined in
tables 3 and 4.
The City has a water and sewer rate in effect at this time
which charges the sewer customer based on the gallons of
water used each month. The current ordinance requires those
connected to the sewer system to pay a sewer bill equal to
80% of their water bill for residential customers and 100%
of their water bill for commercial customers.
The current ordinance should be amended to change the method
of charging for sewer use.
The method as outlined in Table 3 would require a customer
using 10,000 gallons of water to pay a sewer bill of $21.59.
The method as outlined in Table 4 would require a customer
using 10,000 gallons of water to pay a sewer bill of $24.90.
While the latter method charges $3.31 more it appears much
more equitable for each type of customer. Each type of cus-
tomer (larger or small) would pay for sewer service based on
the amount of water used by the customer.
Based on this assumption the City of Okeechobee hereby adopts
a user charge of $2.49 per 1,000 gallons effective January 1,
1985 or at the time the treatment plant goes into operation,
whichever is later.
Section 4. Rate Sett
• The City of Okeechobee hereby establishes a policy setting rates and
charges for use of the area -wide wastewater treatment system at a
sufficient level to cover operation, maintenance and simple replace-
ment costs.
Section 5. Biennial Reviews
The City of Okeechobee hereby adopts a policy for biennial review of
rates and user charges.
Section 6. Customer Notification
The customers connected to the area -wide wastewater treatment system
shall be notified at least annually as to the use of revenues of the
system and percentages devoted to maintenance and operation and for
the repayment of debt on the system.
Section 7. This resolution shall take effect as provided by law.
INTRODUCED AND PASSED IN REGULAR SESSION ASSEMBLED THIS 18th DAY OF
APRIL . 1983.
i
Mayor
ATTEST:
City Clerk