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HomeMy WebLinkAbout2008-04-28 08-158 ORDERcouNCn ACTION Mm No. Date: ApH128,2008 Item/Subject: Order, Approving Implementation Schedule For Assessing High Strength Wastewater Surcharge Fee —Garelick Farms Diary Nesponslble Department Engineering The City's Sewer Ordinance provides for a surcharge fee to rover the additional costs of treating high strength wastewater. Because of the nature of us operation, the Garelick Fames Dalry processing faclity, discharges high strength wastewater. Although Imposidon of the surcharge has been discussed several times In recent years at Committee level, Me decision to move forward was agreed M only recently. At the March 18, 2008 meeting of the Transportation and Infrastructure Committee, Garelick Fans requested some relief from the full 2008 sunharge amount In order to phase the expense into its operating budget. Staff was directed to work with Garelick to develop suitable arrangement. The attaMed Order would approve assessment of the 2008 high strength surcharge in accordance with Me terms that Garelick has agreed W. A memo from Brad Moore is attached that provides additional background Information. 9� r) i Department Heac Recommend approval, as does the Transportation and Infrastructure Commi ee. e� aty Manager Aasecated Information: Memo from Brad Moore Finance Director City Solicitor Introduced for X Passage Final Reading Page _of _ _ Referral AsalBe, a to cone cllor Blanchette April 2e. 2008 CITY OF BANGOR •.Q (TITLE,) order Approving Implementation Schedule for Assessing High Strength Wastewater Surcharge Fee— GaMIN& Farms Diary WHEREAS, §252-24 D (1) (d) of the Sewer Ordinance allows for imposition of a wastewater surcharge fee to recover the additional treatment cost for processing high strength wastewater; and WHEREAS, The wastewater discharge from the Garelick Farms Diary Messing facility constitutes high strength loading; and WHEREAS, Garelick Farms had been rmtfied of the intent W assess the high strength surcharge fees beginning In 2008; and WHEREAS, Sancti& Farms has requested some relief to the implementation M the surcharge fee from the Theraportation and Infrastructure Committee; and WHEREAS, at the direction of the Transportation and Infrastructure Committee, City Staff has worked with Garellck Fames to develop an acceptable surcharge implementation arrangement; NOW, THEREFORE BE TT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The high strength wastewater surcharge fee be charged to Garelick Fames as follows: The total 2008 surcharge is $50,632. 50% of the surcharge will be collected in 2008, commencing July 2008 with monthly billings of $4,219.33. • 10% of the surcharge is hereby abated, leaving $20,252.28 of the 2008 surcharge to be collected during 2009 in twelve monthly payments of $1,687.13. • ]Merest is waived on the uncollected 2008 surcharge balance provided the foregoing conditions are met. IA cin wmcIL April 28, 2000 Motion Made and Se uded for P ssage Pas CLZUK ' 0RDDM MTLDJ &no ine lmalenentation Schedule for Aeaaeaing Digh Strength Wastewater Surcharge Pee - Gorelick Perms Diary A Igaadlu Couoagor " " 08 158 MEMO April 17,2008 To: TransOma afion and Infihastrucmre Committee Jim Ring Fr: Brad Moore Re: Surcharge Negotiations with Garelick Farms. As you may recall at the March 18 TIC meeting, Gardick Farms requested relief on the caressive loading surcharge that was being assessed against them by the City. The Committee directed staff to work out an agreement will Gaselick Farms with the goal of recovering all the surcharge owed the City, even if it took several years to recover. Below is an ratline of me correspondence with Gorelick Farms. Review of correspondence: • City calculated surcharge to be $50,632 for calendar 2008. • Gorelick Farms countered requesting 50 percent of me surcharge be waived for 2008 and Gandick From; would pay 100 percent of the calculated announce for 2009. • City responded by allowing Garelick Farms m pay 50 percent of the amcharge for 2008 and pay the rest of Ne surcharge for 2008 over the neat thwe years plus the calculated surcharge for those years. • Garelick Farms countered requesting 25 percent of the surcharge be waived for 2008 out the remaining 25 percent be paid in 2009 plus me calculated surcharge Our 2009. • City responded by allowing Garelick Fames to pay 50 percent of the surcharge for 2008, abating 10 percent of the surcharge ($5063.20) and recovering the rest of the surcharge ($2025228) in 2009. The final response was acceptable to boll parties and would be structured as below: • Calculated surcharge for 2008 is $50,632. • 50 percent of me surcharge collected in 2008 with billing commencing July 2008 at $4,219.33 per month. Tocol collected for 2008,$25,315.98. • 10 percent of the surcharge is abated leaving $20,252.28 of the 2008 surcharge to becollected in 2009 in twelve monthly payments of $1,687.73. These charges ..would be N addition N the calculated surcharge for 2009. • The City will waive interest on the uncollemed balance as long as the agreement in honored. The rationale behind abating some of the surcharge for 2008 is that the City would receive the rest of the surcharge by We end of 2009 ratlur Wan being paid over atwo or three year period. The revenue would be available fm use by the sewer fund sooner rather thin later. Swff recommend, moving forward with this agreement and is requesting approval by the Tmnsporwrion and Infrea mcmre Committee.