HomeMy WebLinkAboutOrdinance 7586 ORDINANCE NO. ?S,f t
AN ORDINANCE AMENDING SECTION 37-25 OF CHAPTER
37 OF THE FORT WORTH CITY CODE (1964) , AS AMENDED,
BY ADDING AN INDUSTRIAL COST RECOVERY CHARGE SEC-
TION; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES; REPEALING ALL ORDINANCES AND PROVI-
SIONS OF THE FORT WORTH CITY CODE IN CONFLICT
HEREWITH; PROVIDING A SAVINGS CLAUSE; PROVIDING
A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Water Pollution Control Act Amendments of
1972, Public Law 92-500, require that full recovery will be
had from the industrial users of the waste treatment works of
the Federal portion of the construction costs of treatment
works reasonably attributable to treatment of such industrial
wastes; and
WHEREAS, in order to qualify for Federal assistance in
the construction of treatment works, it is necessary that the
City of Fort Worth adopt an industrial cost recovery charge
on each industry in each project for which a grant is received.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
SECTION 1.
That Section 37-25, Water and Sewer Rates Within the City,
of Chapter 37 of the Fort Worth City Code (1964) , as amended,
be and the same is hereby amended to include the following new
section:
" (h) Industrial Cost Recovery
1) In providing a waste treatment system which
includes the treatment of industrial wastes,
either independently or in conjunction with
other wastes, the Fort Worth Water Department
shall have the authority to collect from such
industrial users all or any part of the con-
struction costs of such waste treatment system
reasonably attributed to such industrial wastes.
The apportionment of such costs shall be
equitable as among industrial users, and
such costs may be collected by assessment,
connection fee, periodic charges, or in
other manners or combinations thereof as in
the judgment of the Director of the Fort
Worth Water Department is equitable and will
assure such industrial cost recovery.
2) An Industrial User is any non-governmental
user of the City of Fort Worth's waste treat-
ment system, identified in the Standard In-
dustrial Classification Manual, 1972, office
of Management and Budget, as amended and
supplemented, under the following divisions:
Division A Agriculture, Forestry and
Fishing
Division B mining
Division D Manufacturing
Division E Transportation, Communications,
Electric, Gas and Sanitary
Services
Division I Services
Any industrial User may be excluded if it is
determined that it will introduce primarily
segregated domestic wastes or wastes from san-
itary
conveniences.
3) The annual amount to be recovered from each
Industrial User shall be predicated on the
following formula:
$h $2 $C
(1) x G) + (E x H) + (F x I) + J
Annual Payment ($/year) where:
A. Eligible Federal Grant allocable to flow
(Q) in dollars.
B. Eligible Federal Grant allocable to B.O.D.,
in dollars.
C. Eligible Federal Grant allocable to S.S.,
in dollars.
D. Total design flow (Q), in Ccf/day.
E. Total design B.O.D., in lbs/day.
F. Total design S.S., in lbs/day.
G. Industrial Users' flow discharge to system,
in Ccf.
H. Industrial Users' B.O.D. discharge to
system, in lbs/day.
I. Industrial Users' S.S. discharge to system,
in lbs/day.
J. Amortization period = 30 years.
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4) For the purpose of computing the Industrial
Users' annual payment, a cost recovery period
of 30 years is hereby established.
5) The Industrial User shall be billed monthly
on the basis of his computed annual Industrial
Cost Recovery Payment divided by 12.
6) Funds collected under Industrial Cost Recovery
shall be deposited into a special fund entitled
"Industrial Cost Recovery Fund", which is here-
by established. on an annual basis 50 percent
of the amounts recovered, together with interest
earned thereon, shall be returned to the U. S.
Treasury. Of the 50 percent remaining together
with interest earned thereon, 80 percent shall
be used for eligible costs for reconstruction
and expansion pursuant to 40 CFR 35.928-2 (b) ,
and 20 percent used as the City of Fort Worth
sees fit.
7) Pending use, retained amounts shall be invested
in (1) obligations of the U. S. Government; or
(2) obligations guaranteed as to principal and
interest by the U. S. Government or any agency
thereof, or (3) shall be deposited in accounts
fully collateralized by obligations of the U. S.
Government or by obligations fully guaranteed as
to principal and interest by the U. S. Government
or any agency thereof.
8) Industrial Users shall be reviewed annually by
the Fort Worth Water Department for quantity
and strength of waste, and the Industrial Cost
Recovery adjusted accordingly.
9) The Fort Worth Water Department shall maintain
records and submit reports and financial state-
ments to the Environmental Protection Agency in
conformance with the latest regulations.
10) This ordinance shall be amended, as necessary,
to comply with Federal Regulations."
SECTION 2.
It is not the intention of the City Council in the adoption
or interpretation of this ordinance to conflict or interfere with,
annul or abrogate any of the bond covenants contained in the
Ordinances authorizing the issuance of the $78,950,000.00 of Water
and Sewer Revenue Bonds oustanding at the time of the adoption
hereof and in the event that any of the provisions of this ordin-
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ance are in fact or in law contrary to any existing water and
sewer outstanding revenue bond covenants, more particularly as
set forth in Ordinance No. 7475, then and in that event the
provisions hereof in conflict or inconsistent therewith shall
be void and of no force or effect.
SECTION 3.
That all rights or remedies of the City of Fort Worth, Texas,
are expressly saved as to any and all violations of Chapter 37
or of any amendments thereto, of the Fort Worth City Code (1964) ,
as amended, which have accrued at the time of the effective date
of this ordinance; and as to such accrued violations, the Court
shall have all of the powers that existed prior to the effective
date of this ordinance.
SECTION 4.
It is hereby declared to be the intention of the City Council
that the sections, paragraphs, sentences, clauses and phrases of
this ordinance are severable, and if any phrase, clause, sentence,
paragraph or section of this ordinance shall be declared uncon-
stitutional by the valid judgment or decree of any court of
competent jurisdiction, such unconstitutionality shall not affect
any of the remaining phrases, clauses, sentences, paragraphs and
sections of this ordinance, since the same would have been enacted
by the City Council without the incorporation in this ordinance of
any such unconstitutional phrase, clause, sentence, paragraph or
section.
SECTION 5.
That the violation of any provision of this ordinance or
of the Fort Worth City Code relating to water and sewer service
shall be deemed an offense and punishable by a fine not ex-
ceeding Two Hundred Dollars ($200.00) , and each violation there-
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of, and each day on which there is a failure to comply with the
terms of this ordinance shall be and is hereby declared to
be a distinct and separate offense and punishable as such.
SECTION 6.
That this ordinance shall be in full force and effect
from and after the date of City Council acceptance of com-
pletion of the 51 MGD Expansion of the Village Creek Waste-
water Treatment Plant, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY:
City Attorney
ADOPTED:
EFFECTIVE:
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e �= EPPERSON City of Dort Worth, r"exas
UNE
BAILIFF Mayor ayor and Council ncil Communication
nication
GRAHAM �y
DATE REFERENCE SUBJECT: Adoption of Industrial Cost PAGE
ROBINSON NUMBER Recovery Ordinance Relating to Federal 2
IVORY 7/26/77 G-3514 Share of Project Costs Financed by Grant Iof
Under P.L. 92-500
Funding of 75% of the cost of the 51 MGD Expansion of the Village Creek
Wastewater Treatment Plant was obtained through a federal grant under
P.L. 92-500.
One of the provisions of the Water Pollution Control Act Amendments of
1972 (P.L. 92-500) is that the recipient of a federal grant adopt an
Industrial Cost Recovery Ordinance which will insure that every indus-
trial user pay back the federal share of the cost of waste treatment
facilities used to treat his industrial wastes, over a 30-year period,
without interest. This ordinance must be adopted and approved by EPA
before grant payments exceed 80% of the grant amount. Payments on this
Village Creek Plant grant have reached the 7u% level, necessitating
action at this time to insure uninterrupted flow of grant payments.
The act further provides that costs so recovered be kept in separate
accounts established for the purpose of monitoring the amounts so re-
ceived and administering them under strict rules of procedure established
by federal regulations. Under this provision, 50% of the collections is
returned to the federal government, along with interest earned on that
50% while on deposit with the City, 40% of the collections is retained
by the City to be applied to the cost of any additional treatment
facilities required in the future, and the remaining 10% is available
for use by the City to recover accounting or other administrative
costs.
An ordinance has been prepared establishing a method of determination of
each industrial user's share of the federal grant applicable to the
facilities used to treat each user's wastes, taking into consideration
the rate of discharge to the City's sewer system and the strength of
the industrial waste generated by each such user, establishing the
separate accounts required by federal regulations and establishing
procedures for administering those accounts in keeping with the require-
ments of the Act and federal regulations.
This ordinance, as prepared, is intended to be a master ordinance
setting forth a method of computation to determine industrial cost
recovery charges due for any federal grant project on which such charges
are operable. The only such grant at present is grant No. C-481017 on
the 51 MGD Expansion of the Village Creek Wastewater Treatment Plant
(including the 96"/90" Connecting Outfall Parallel) , and the applicable
values of the formula factors relative to that grant are currently
estimated to be:
A = $33,856,000 (Eligible Federal Grant allocable to flow)
B = $19,199,000 (Eligible Federal Grant allocable to BOD)
C = $5,338,000 (Eligible Federal Grant allocable to S.S.)
D = 128,300 Ccf (Total Design Flow)
E = 200,000 lbs./day (Total Design BOD)
F = 275,000 lbs./day (Total Design S.S.)
Y
DATE REFERENCE SUBJECT: Adoption of Industrial Cost PAGE
NUMBER Recovery Ordinance Relating to Federal
7/26/77 G-3514 Share of Project Costs Financed by Grant 2 of 2
Under P.L. 92-500
These currently estimated values of the charge components are subject to
revision to actual final costs upon completion of the project.
Recommendation
It is recommended that the Industrial Cost Recovery Ordinance prepared
by the staff be adopted, effective from and after the date of City
Council acceptance of ,-completion of:-the 51 MGD Exp'ansign of the
Village Creek Wastewater Treatment Y1ant.
GG:iea
SUBMITTED BY: DISPOSITION BY COUNCIL: PROCESSED B
�PPROVED p OTHER (DESCRIBE) ��r/�i_V
IMPTED ORDINANCE No 7� L §ECRETARY
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