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ORDINANCE 149A: SEWER RATE ORDINANCE.
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Section 1: DEFINITIONS. Unless the context specifically indicates otherwise, the meaning of the following terms, as used in this ordinance shall have the meanings hereafter designated (other definitions that may apply can be found in Section 45.2 of the Sewer Use Code):
Subd. 1: "Biochemical Oxygen Demand (BOD)" means the quantity of oxygen utilized in the biochemical oxidation of organic matter, in the presence of a nitrification inhibitor, under standard laboratory procedures in five (5) days at 20 degrees Centigrade expressed in terms of weight and concentration (milligrams per liter‑mg/l).
Subd. 2: "Capital Improvements" means improvements not properly categorized as operation and maintenance, or replacement. Capital improvements include that portion of the plant constructed for reserve capacity; that portion of repairs to the existing collection system attributable to oversizing for future growth; and extensions of the existing collection system to serve future growth areas. Capital improvements also include reconstruction of the existing plant or portions thereof after it has reached its useful service life, and reconstruction of portions of the collection system that have reached their useful lives.
Subd. 3: "City" means the area within the corporate boundaries of the City of Avon, as presently established or as amended by ordinance or other legal actions at a future time. When used herein the term City may also refer to the City Council or its authorized representative.
Subd. 4: "Collection System" or "Public Wastewater Collection System" means the system of sanitary sewers, manholes, pumping stations, force mains, and appurtenances used to convey wastewater to the Plant.
Subd. 5: "Contract Users" means those users who because of their wastewater volume, wastewater strength, or need to obtain a Wastewater Discharge Permit, are required to execute a separate agreement with the City for the collection and treatment of wastewater.
Subd. 6: "Current Capacity" means that portion of the Plant which is necessary to serve the users currently connected to the system. Current capacity is further defined as 0.422 MGD average flow.
Subd. 7: "Debt Service" means the principal and interest necessary to repay bonded indebtedness, or other indebtedness, for construction of the Current Capacity portion of the Plant, which is necessary to serve the users currently connected to the system.
Subd. 8: "Design Capacity" means he total capacity of the Plant, including both current capacity and reserve capacity. Design capacity is further defined as 0.6 MGD average flow, or 1.5 MGD peak flow.
Subd. 9: "Extra Strength Waste" means wastewater having a BOD and/or TSS concentration greater than 250 mg/, and not otherwise classified as an incompatible waste.
Subd. 10: "General Users" means those users who are not required to execute a separate agreement with the city for collection and treatment of wastewater.
Subd. 11: "Incompatible Waste" means waste that either singly or by interaction with other wastes interferes with any waste treatment process, constitutes a hazard to humans or animals, creates a public nuisance, or creates any hazard in the receiving waters of the Wastewater Disposal System.
Subd. 12: "MGD" means a flow rate measured in terms of millions of gallons per day.
Subd. 13: "Normal Domestic Strength Wastewater (NDSW)" means wastewater that is primarily produced by residential users, with BOD concentrations not greater than 250 mg/l and suspended solids concentrations not greater than 250 mg/l.
Subd. 14: "Operation and Maintenance" means activities required to provide for the dependable and economical functioning of the Wastewater Disposal System throughout its design or useful life, whichever is longer, and at the level of performance for which the system was constructed. Operation and Maintenance includes administrative tasks such as billing, bookkeeping, accounting, contract administration, and enforcement activities; and also includes coordination with MPCA, sampling and laboratory testing, and engineering assistance.
Subd. 15: "Plant" or "Treatment Plant" means the Main Pumping Station located at 208 Second Street Northeast, including the junction manhole, gravity sewer lines from the junction manhole to the pumping station, metering structure, diversion manhole, bar screen pit, pumping station and control building, abandoned units associated with the original Sewage Treatment Plant, grounds, entrance road, storage areas, appurtenances, and including the entire forcemain from the Main Pumping Station to its discharge point.
Subd. 16: "Replacement" or "Equipment Replacement" means obtaining and installing of equipment, accessories, or appurtenances which are necessary during the design life or useful life, whichever is longer, of the Wastewater Disposal System to maintain the capacity and performance for which such works were designed and constructed.
Subd. 17: "Reserve Capacity" means that portion of the Plant which has been provided for future growth. Reserve capacity is intended to serve future growth. Reserve capacity is intended to serve future users both within and outside the current City limits, and is further defined as 0.3 MGD average flow, or 0.75 MDG peak flow.
Subd. 18: "Sanitary Sewer" means a sewer intended to carry only liquid and water carried wastes from residences, commercial buildings, industrial plants, and institutions, together with minor quantities of ground, storm, and surface waters which are not admitted intentionally.
Subd. 19: "Sewer Hookup Charge" means a connection charge to be paid by a future user at the time of connection to the collection system, as authorized by Minnesota Statute Sec. 444.075, Subd. 5.
Subd. 20: "Sewer Service Charge" means the aggregate of user charges, charge for debt service and capital improvement, and other sewer related charges that are billed periodically to users of the city's Wastewater Disposal Facilities.
Subd. 21: "Sewer Service Charge System" means a system of rates or charges whereby all revenue collected from users of the Wastewater Disposal Facilities will be used to offset costs incurred for Operation and Maintenance, Replacement, Debt Service, and Capital Improvements.
Subd. 22: "Sewer Service Fund" means a fund established to receive all revenues generated under the Sewer Service Charge System, and all other income dedicated to the Operation and Maintenance, Replacement, Debt Service, and Capital Improvements associated with the Wastewater Disposal System.
Subd. 23: "Shall" is mandatory; "May" is permissive.
Subd. 24: "Suspended Solids (SS)" or "Total Suspended Solids (TSS)" means the total suspended matter that either floats on the surface or is in suspension in water, wastewater or other liquids, and is removable by laboratory filtering as prescribed in "Standard Methods for the Examination of Water and Wastewater", latest edition, and referred to as non‑filterable residue.
Subd. 25: "User Charge" means a charge levied on users of the Wastewater Disposal System for the user's proportionate share of the costs of operation and maintenance, and replacement.
Subd. 26: "Users" means those residential, commercial, governmental, and institutional and industrial establishments which are connected to the public sewer collection system as defined in the Sewer Use Ordinance.
Subd. 27: "Wastewater" means the spent water of a community, also referred to as sewage. From the standpoint of source it may be a combination of the liquid and water‑carried wastes from residences, commercial buildings, industrial plants, and institutions together with any ground water, surface water, and storm water that may be present.
Subd. 28: "Wastewater Discharge Permit" means a permit required of users who meet the criteria outlined in Section 4.20.8 of the Sewer Use Code.
Subd. 29: "Wastewater Disposal System" or "Wastewater Disposal Facilities" means individually or collectively all parts and facilities of the Collection system, the Plant, and all appurtenances; the entire Sanitary Sewer System owned and operated by the City of Avon.
Section 2: ESTABLISHMENT OF A SEWER SERVICE CHARGE SYSTEM.
Subd. 1: The City of Avon shall establish a Sewer Service Charge System as defined herein which contains a rate structure whereby users shall contribute to the cost of constructing and operating the Wastewater Disposal System on an equitable basis.
Subd. 2: Users contributing Normal Domestic Strength Wastewater to the system shall pay for Operation and Maintenance, and Replacement costs in proportionate contribution to the amount of flow contributed.
Subd. 3: Users contributing Extra Strength Waste to the system shall pay, in addition to the charges for Normal Domestic Strength Wastewater as outlined in Subd. 2 above, a surcharge in proportion to the amount of Extra Strength Waste contributed.
Subd. 4: Users shall pay for Debt Service as defined herein on the basis of an assessment to be levied against the property connected to the system or, in the case of a Contract User, as outlined in the agreement executed between the user and the City.
Subd. 5: Users who do not connect to the system until after the assessments for debt service have been levied, shall pay a Sewer Hook‑up Charge as established by the City Council.
Subd. 6: The Sewer Service Charge System developed in accordance with the provisions of this ordinance, shall be adopted by resolution of the City Council, shall be published in the official newspaper, and shall become effective upon publication. Subsequent changes in the rate structure outlined in the Sewer Service Charge System shall be adopted by resolution of the City Council and shall be published in the official newspaper.
Subd. 7: Revenues collected in accordance with the Sewer Service Charge System shall be deposited in a separate fund known as the Sewer Service Fund.
Section 3: DETERMINATION OF SEWER SERVICES CHARGES.
Subd. 1: Users of the Avon Wastewater Disposal Facilities shall be identified as belonging to one of the following User classes:
a) General User
b) Contract User
Users shall be considered General Users unless the City Council has determined that a particular User should be subject to a separate agreement with the City in accordance with the following criteria:
a) Users who discharge a flow volume greater than 75,000 gallons per day on an annual basis.
b) Users who discharge Extra Strength Waste.
c) Users who are otherwise required to obtain an Industrial Discharge Permit in accordance with Section 45.8 of the Sewer Use Ordinance.
Subd. 2: Determination of unit costs for Plant Operation and Maintenance, and Replacement costs attributable to the Normal Domestic Strength Wastewater shall be as set forth below:
a) Determine annual budget for Plant Operation and Maintenance, Equipment, Replacement.
b) Deduct those budget costs associated with Extra Strength Waste which are to be billed separately as a surcharge.
c) Divide the remaining budget costs by the estimated total Plant flow to obtain a unit cost in $/gallon of treated wastewater.
Subd. 3: Determination of unit costs for Extra Strength Waste where the City has determined such waste is being contributed shall be as set forth below:
a) Determine the proposed budget costs for Plant Operation, Maintenance, and Equipment Replacement; apply 1/3 to flow, 1/3 to BOD, and 1/3 to suspended solids; and determine the unit costs for all three variables.
c) Apply the unit cost for BOD and/or suspended solids to that portion of the User's discharge exceeding 250 mg/l as a surcharge to be billed in addition to the charge for Normal Domestic Strength Wastewater.
Subd. 4: Determination of Unit costs for Collection System Operation and Maintenance shall be as set forth below.
Unit costs for General Users for Collection System Operation and Maintenance shall be determined as follows:
a) Determine annual budget for Collection System Operation and Maintenance.
b) Deduct those budget costs applicable to Contract Users as determined below.
c) Divide the remaining budget costs by the total Plant flow minus that flow attributable to Contract Users to obtain the unit cost for Collection System Operation and Maintenance.
Unit costs for Contract User's for Collection System Operation and Maintenance shall be determined as follows:
a) Determine those budget costs applicable to each Contract User annually by multiplying the percentage of the Collection System used by the ratio of Contract User's flow to total Plant flow, and multiply this product by the total Collection System Operation and Maintenance budget.
b) Divide the applicable budget costs by the Contract User's flow to obtain the unit cost for Collection System Operation and Maintenance.
Subd. 5: Billable flows shall be measured as follows:
a) Billable flows for General Users shall be obtained by measuring the metered potable water usage during October, November, and December of each calendar year. Readings for these three months shall be used to determine the quarterly flow for the following calendar year.
b) Billable flows for Contract Users shall be obtained by measuring the metered potable water usage during October, November, and December of each calendar year unless the agreement between the Contract User and the City provides for monthly potable water measurement or for direct wastewater measurement. If fourth quarter water meter readings are used as outlined above, the readings for these three months shall be used to determine the quarterly flow for the following calendar year. If monthly potable water readings are used or if wastewater flows are measured directly, the billable flow shall be determined on the basis of these measurements as set forth in the agreement.
Subd. 6: Where it is determined that Extra Strength Waste is being discharged, BOD and suspended solids shall be measured according to a program established by the City in accordance with latest edition of "Standard Methods for the Examination of Water and Wastewater", and in accordance with the Sewer Use Ordinance.
Subd. 7: The City may, at its discretion, require non‑residential users to install wastewater flow meters or such additional potable water meters as may be necessary to determine wastewater volume. Where a residential user is not connected to city water, City may require the user to install a water meter for the purpose of determining wastewater flow. When so required, such meter shall be of a type approved by the City and shall be equipped with a remote registering recorder located at an accessible site on the owner's property.
Subd. 8: Assessments levied to cover Debt Service shall be based on an equitable distribution of costs as approved by the City Council.
Subd. 9: The Sewer Hookup Charge shall be based on an equitable formula including the replacement cost of the then existing Wastewater Disposal Facilities and the amount of past individual assessments levied to finance construction of the facilities. The Sewer Hook‑up charge may be adjusted from time to time by resolution of the City Council, and separate charges may be established for various types of users as deemed appropriate by the City. Sewer Hook‑up Charges shall be paid to the City Clerk in full prior to connection to the system. Upon receipt, said charges shall be deposited in the Capital Improvement Account.
Section 4: SEWER SERVICE FUND.
Subd. 1: The City of Avon hereby establishes a "Sewer Service Fund" as an income fund to receive all revenues generated by the Sewer Service Charge System, and all other income dedicated to the operation, maintenance, replacement, and construction of the Wastewater Disposal System, including taxes, special charges, fees, hook‑up charges, and assessments intended to retire construction debt.
The City also establishes the following accounts as income and expenditure accounts within the Sewer Service Fund:
a) Plant Operation and Maintenance Account. This shall be the account used for all costs associated with the annual operation and maintenance of the Plant facilities.
b) Equipment Replacement Account. This shall be the account used for all costs associated with replacement of fixed and portable equipment associated with Plant operation.
c) Collection System Operation and Maintenance Account. This shall be the account used for all costs associated with the annual operation and maintenance of the Collection System.
d) Debt Service Account. This shall be the account used for the annual principal and interest costs necessary to retire indebtedness on the Plant construction.
e) Capital Improvement Account. This shall be the account used for the annual principal and interest costs necessary to retire indebtedness for future improvements of a general benefit to the City or to a specific service area. This account shall also serve as a sinking fund for planned improvements.
Subd. 2: All revenue generated by the Sewer Service Charge System, and all other income pertinent to the Wastewater Disposal System, including taxes and special assessments dedicated to retire construction debt, shall be held by the Clerk separate and apart from all other funds of the City. Funds received by the Sewer Service Fund shall be transferred to the appropriate accounts in accordance with State and Federal regulations and the provisions of this Ordinance.
Subd. 3: Revenue generated by the Sewer Service Charge System sufficient to insure adequate replacement throughout the design or useful life, whichever is longer, of the Plant shall be held separate and apart in the "Equipment Replacement Account" and dedicated to affecting replacement costs. Interest income generated by the "Equipment Replacement Account" shall remain in the "Equipment Replacement Account."
Subd. 4: Revenue generated by the Sewer Service Charge System sufficient for operation and maintenance shall be held separate and apart in the appropriate "Operation and Maintenance Account."
Section 5: ADMINISTRATION. The Sewer Service Charge System and Sewer Service Fund shall be administrated according to the following provisions:
Subd. 1: The City Clerk shall maintain a proper system of accounts suitable for determining the costs set forth in Section 4, Subd. 1 ("a" through "e"), and shall furnish the City Council with a report of such costs annually in July.
The City Council shall annually determine whether or not sufficient revenue is being generated for the effective operation, maintenance, replacement, and management of the Wastewater Disposal System, and whether sufficient revenue is being generated for debt retirement. The council will also determine whether the user charges are distributed proportionately to each user in accordance with Section 2, Subd. 2 of this ordinance and section 204(b)(2)(A) of the Federal Water Pollution Control Act, as amended.
The City shall thereafter, but not later than the end of the year, reassess, and as necessary revise the Sewer Service Charge System then in use to insure the proportionality of the user charges and to insure the sufficiency of funds to maintain the capacity and performance to which the facilities were constructed, and to retire the construction debt.
Subd. 2: In accordance with Federal and State requirements, each user will be notified annually in conjunction with a regular billing of that portion of the Sewer Service Charge attributable to operation, maintenance, and replacement.
Subd. 3: In accordance with Federal and State requirements, the City Clerk shall be responsible for maintaining all records necessary to document compliance with the Sewer Service Charge System adopted.
Subd. 4: Bills for Sewer Service Charges shall be rendered monthly succeeding the period for which the service was rendered and shall be due 20 days from the date of rendering. Any bill not paid in full 20 days after the due date will be considered delinquent. At that time the City shall notify the delinquent owner/occupant in writing regarding the delinquent bill and subsequent penalty. The penalty shall be computed as 1% of the original bill and shall be increased the same 1% for every month the bill is outstanding.
Subd. 5: The owner of the premises, shall be liable to pay for the service to such premises, and the service is furnished to the premises by the City only upon the condition that the owner of the premises is liable therefore to the City.
Subd. 6: Any additional costs caused by discharges to the Wastewater Disposal System of toxics or other incompatible wastes, including the cost of restoring wastewater treatment services, clean up and restoration of the receiving waters and environs, and sludge disposal, shall be borne by the discharger(s) of said wastes, at no expense to the City.
Section 6: PENALTIES.
Subd. 1: Criminal Penalties. Any person violating any of the provisions of this ordinance shall be guilty of a criminal offense, punishable as a misdemeanor as defined by City ordinance and state law.
Subd. 2: Each and every sewer service charge levied by and pursuant to this ordinance is hereby made a lien upon the lot or premises served, and all such charges which are on October of each year past due and delinquent, shall be certified to the County Auditor as taxes or assessments on the real estate. Nothing in this ordinance shall be held or construed as in any way stopping or interfering with the right of the City to levy taxes or assessments against any premises affected any delinquent or past due sewer service charges.
Subd. 3: As an alternative to levying a lien, the City may, at its discretion, file suit in a civil action to collect such amounts as are delinquent and due against the occupant, owner, or user of the real estate, and shall collect as well all attorney's fees incurred by the City in filing the civil action. Such attorney's fees shall be fixed by order of the court.
Subd. 4: In addition to all penalties and costs attributable and chargeable to recording notices of the lien or filing of civil action, the owner or user of the real estate being serviced by the Wastewater Disposal System shall be liable for interest upon all unpaid balances at the rate of 12% per annum.
Section 7: SEVERABILITY AND VALIDITY.
Subd. 1: If any section or subdivision of this ordinance shall be held invalid, the invalidity thereof shall not affect the validity of the other provisions of this ordinance, which shall continue in full force and effect.
Subd. 2: The sewer service charge system shall take precedence over any terms or conditions of agreements or contracts which are inconsistent with the requirements of Section 204(b)(1)(A) of the Act and Federal regulation 40 CFR (Code of Federal Regulations) 35.2140 of the Environmental Protection Agency's grant regulations.
Subd. 3: This ordinance shall be in full force and take effect from and after its passage and approval and publication as provided by law.
Adopted by the Avon City Council this ___________ day of ____________, 2003.
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Mayor
(SEAL)
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City Clerk/Administrator