§ 215-32. Purpose.

The purpose of this article is to establish a sewer service charge system for the City. Sewer charges are provided to recover costs associated with the operation, maintenance, and equipment replacement of the wastewater system.

§ 215-33. Definitions.

Definitions pertaining to this article are found in § 215-22.

§ 215-34. Establishment of sewer service charge system.

A. System established. The City establishes a sewer service charge system whereby all revenue collected from users of the wastewater treatment system will be used to pay all expenditures incurred for annual operation, maintenance and replacement.

B. User's share. Each user shall pay its share of operation, maintenance and replacement costs of the treatment works, based on the user's contribution to the total wastewater flow.

C. Revenues. Revenues collected for sewer service shall be deposited in a separate fund known as the "Sewer Fund." Collected revenues will be expended to offset the cost of operation, maintenance and equipment replacement for the system.

D. Determination of rates. Sewer service rates and charges to users of the wastewater treatment facility shall be determined and fixed according to Appendix A located at the end of this chapter. The sewer service charge system shall be adopted upon enactment of this article and shall be published in the official newspaper. Subsequent changes in sewer service rates and charges shall be adopted by Council by resolution or motion and shall be published in the official newspaper.

E. Administration. Sewer service charges and the Sewer Service Fund will be administered in accordance with the provisions of Appendix A, located at the end of this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer.

§ 215-35. Determination of sewer service charges.

Wastewater service charges shall consist of one base charge per user and a charge for the customer's actual wastewater production.

A. User classes.

(1) Users of the City wastewater treatment works shall be identified as belonging to one of the following classes:

(a) Residential.

(b) Commercial.

(c) Industrial.

(d) Institutional.

(e) Governmental.

(2) The allocation of users to these categories for the purpose of billing user charges shall be the responsibility of the Clerk/Treasurer in conjunction with the Public Works Department. Allocation of users to user classes shall be based on the substantive intent of the definitions of these classes contained in this article.

B. Determination of rates. The rates charged to residential users and those users of other classes who discharge normal domestic-strength wastewater shall be determined on the basis of wastewater volume only. Those industrial users who discharge normal domestic-strength wastewater only can be classified as commercial users for the purpose of rate determination.

C. Base charge. The base charge shall be billed equally to all users of the wastewater system for the recovery of administrative costs and the costs of groundwater infiltration and wastewater inflow. One base charge shall be billed to each wastewater system user and shall be determined by the residential equivalent units as established in Section 420.02 and included in Appendix A located at the end of this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer.

D. Multiple users. Where there is more than one dwelling, business or industry served through one wastewater connection, the base charge shall apply to each such dwelling unit, business unit or industry unit served through that connection.

E. Billable wastewater. The charges assessed residential users and those users of other classes discharging normal domestic-strength wastewater as described in the definition of "normal domestic-strength wastewater" in § 215-22 shall be established proportionately according to billable wastewater volume. Billable wastewater volume shall be calculated as follows:

(1) Residential users. Billable wastewater volume for residential users shall be calculated on the basis of metered water usage on the last quarter of every year. The quarterly wastewater volume shall be equal to metered water usage during that same billing cycle.

(2) For those residents with private well a meter will be installed on their well to determined sewer charges as described in Subsection E(1) above.

(3) Nonresidential users.

(a) Billable wastewater volume for nonresidential users shall be calculated on the basis of metered water usage on the last quarter of every year. The quarterly billable wastewater volume shall be equal to metered water usage during that same billing cycle.

(b) The City may require nonresidential users to install wastewater samplers for the purpose of determining wastewater volume and loading. When required, the samplers shall be of a type approved by the City Engineer and located at a sufficient number of sites to permit determination of wastewater characteristics.

(c) The measurement of the wastes shall be conducted according to the latest edition of Standard Methods for the Examination of Water and Wastewater in a manner acceptable to the City as provided for in Article III, Sewer Service Regulations.

(4) Private septic tank dumping. The billable volume of wastewater dumped into the City system by a septic system contractor shall be estimated by the contractor, subject to review by the Public Works Department. The contractor shall submit a statement to the Clerk/Treasurer each quarter indicating the date of dumping, the source of the wastewater, the volume dumped and the total volume for the quarter.

F. Wastewater rates. The following rates are established for wastewater produced each quarter of the year.

(1) Wastewater produced. The charge per 1,000 gallons produced is as specified in Appendix A, located as an attachment to this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer.

(2) Private septic tank dumping. Those dumping wastewater from a private septic system into the City treatment facility shall be charged the fee as specified in the fee schedule, as amended time to time by the City Council.

G. Assessment/contractual agreements not prohibited. The sewer service charges established in this article shall not prevent either the assessment of additional charges to users who discharge wastes with concentrations greater than normal domestic-strength or wastes of unusual character, or contractual agreements with such users, as long as the following conditions are met:

(1) A user is not charged at a rate less than that of normal domestic-strength wastewater.

(2) The user pays operation, maintenance and replacement costs in proportion to the user's contribution of wastewater flow and loading to the treatment plant.

(3) The measurements of wastes are conducted according to the latest edition of Standard Methods for the Examination of Water and Wastewater in a manner acceptable to the Council as provided for in Article III, Sewer Service Regulations.

(4) The City's NPDES permit and sewer use regulations are not violated.

(5) A study of unit costs of treatment processes attributable to flow, BOD, TSS and other significant loadings shall be developed for determining the proportionate allocation of costs to users discharging wastes of greater than normal domestic-strength or wastes of unusual character.

§ 215-36. Sewer Fund.

A. Establishment.

(1) The City establishes a Sewer 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 and replacement of the wastewater treatment works, including special charges and fees.

(2) The City also establishes the following accounts as income and expenditure accounts within the Sewer Service Fund:

(a) Operation and Maintenance Account.

(b) Equipment Replacement Account.

B. Revenues to be held by Clerk/Treasurer. All revenue generated by the sewer service charge system shall be held by the Clerk/Treasurer separate from all other funds of the City. Funds received by the Sewer Service Fund shall be transferred to the accounts established in Subsection A of this section in accordance with state and federal regulations and the provisions of this article.

C. Equipment Replacement Account. Revenue generated by the sewer service charge system sufficient to ensure adequate replacement throughout the design or useful life of the wastewater facility shall be held separate 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.

D. Operation and Maintenance Account. Revenue generated by the sewer service charge system sufficient for operation and maintenance shall be held separate in the Operation and Maintenance Account.

§ 215-37. Administration and billing.

A. Administration. The sewer service charge system and Sewer Fund shall be administered according to the following provisions:

(1) System of accounts.

(a) The Clerk/Treasurer shall maintain a proper system of accounts suitable for determining the operation, maintenance and equipment replacement and shall furnish the Council with a report of such costs upon request.

(b) The Council shall annually determine whether or not sufficient revenue is being generated for the operation, maintenance, replacement and management of the treatment works. The Council will also determine whether the user charges are distributed proportionately to each user in accordance with § 215-34B of this chapter and Section 204(b)(2)(A) of the Federal Water Pollution Control Act, as amended.

(c) 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 ensure the proportionality of the user charges and to ensure the sufficiency of funds to maintain the capacity and performance to which the facilities were constructed.

(2) Responsibility for maintaining records. In accordance with federal and state requirements, the Clerk/Treasurer shall be responsible for maintaining all records necessary to document compliance with the sewer service charge system adopted.

B. Accounting, billing and collecting.

(1) Liability to pay. The owner of the premises shall be liable to pay for the service to the premises, whether he is occupying the property or not. The service is furnished to the premises by the City only upon condition that the owner of the premises is liable to the City for the service.

(2) Bills for service. Bills shall be mailed to property owners quarterly and shall specify the wastewater charges in accordance with the rates set out in § 215-35.

(3) Delinquent accounts (late fees). All charges for wastewater shall be due quarterly on the date specified by the City for the respective amount and shall be delinquent 30 days thereafter. Delinquent accounts will be charged the late fee set forth in Appendix A of this chapter. The late charge will be added to the bill effective the first day of each month of the delinquency. The City shall attempt to collect delinquent accounts promptly. Where satisfactory arrangements for payment have not been made, the Clerk/Treasurer may, after the procedural requirements of the City of Kellogg policy for utility billing and collection (See Appendix G. Editor's Note: Appendixes A and G are on file in the office of the Clerk/Treasurer. ) have been complied with, discontinue service to the delinquent customer by shutting off the water at the stop box. When water service to any premises has been discontinued, service shall not be restored except upon the payment of all delinquent bills and late charges plus a turn-on fee specified in as specified in Appendix A, located as an attachment to this chapter. Delinquent wastewater accounts shall be certified by the Clerk/Treasurer who shall prepare an assessment roll each year providing for assessment of the delinquent amounts against the respective properties served. The assessment roll shall be delivered to the Council for adoption on or before the regular City Council meeting in December of each year for certification to the County Auditor for collection along with taxes. Such action is optional and may be subsequent to taking legal action to collect delinquent accounts.

(4) Additional costs. Any additional costs caused by discharges to the treatment works of toxic substances or other incompatible wastes, including the cost of restoring wastewater treatment services, cleanup and restoration of the receiving waters and environs, fines or penalties levied by regulatory agencies and sludge disposal, shall be born by the discharger(s) of the wastes, without expense to the City.

C. Penalties. Each sewer service charge levied by and pursuant to this article is hereby made a lien upon the lot or premises served, and all charges which are on or before December 15 of each year (or such other time as required by state law) past due and delinquent shall be certified to the County Auditor as taxes of assessments on the real estate. Nothing in this article shall be held or construed as in any way stopping or interfering with the right of the City to shut off water service to properties with delinquent sewer service charges which have been certified to the County Auditor.