Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

City Council

FROM:

General Manager of Engineering Services
General Manager of Community Services

SUBJECT:

2002 Sewer BOD/TSS/Flow Charges for Permitted Industries

 

RECOMMENDATION

GENERAL MANAGER COMMENTS

COUNCIL POLICY

On March 9, 2000, the Standing Committee on City Services and Budgets approved a by-law amendment establishing Sewer BOD/TSS/Flow Rates to be paid by permitted industries. These rates are reviewed in mid year each year by Council to establish new rates for the next twelve months.

PURPOSE

The purpose of this report is to recommend the 2002 Sewer BOD/TSS/Flow rates to be charged to permitted industries and to recommend the necessary amendment to the Sewer and Watercourse By-Law, effective July 1, 2002.

BACKGROUND

There are currently sixty-one waste discharge permit users (or permitted industrial users) operating within the City of Vancouver.

The City implemented Sewer BOD/TSS/Flow direct charges to permitted industrial users on July 1, 2000. Sewer BOD/TSS/Flow charges are structured to ensure that the sanitary component of regional (GVS&DD) sewer costs are passed on directly to the permitted industrial users in proportion to the quality and quantity of effluent each user discharges into the system. In calendar year 2002, approximately four percent of the $24.8 million regional sanitary sewer costs (about 3% of the $32.9 million regional sanitary and storm sewer costs) is expected to be recovered through Sewer BOD/TSS/Flow direct charges to permitted industrial users.

In addition to these charges for GVS&DD treatment costs, permitted industrial users also pay for City sanitary sewage costs based on their flow discharge. The 2002 sanitary sewer rate for the permitted industrial users was established along with other sanitary sewer rates in December 2001.


ESTABLISHMENT OF 2002 SEWER BOD/TSS/FLOW CHARGES

Sewer BOD/TSS/Flow charges are calculated by applying two sets of rates, one based on usage and the other on the capacity, to measured discharges from industries in the prior calendar year. The usage and capacity rates are determined by the GVS&DD on an annual basis.

Based on 2002 GVS&DD unit rates and the industrial wastewater data collected, staff estimate that $1.02 million will be recovered from permitted industrial users in 2002 through Sewer BOD/TSS/Flow direct charges. This amount is about $100,000 less than the 2001 Sewer BOD/TSS/Flow charges of $1.12 million.

2002 Sewer BOD/TSS/Flow Unit Rates

The recommended 2002 rates with the comparative 2001 rates are listed in Appendix 1. The changes in the rates between 2001 and 2002 are as follows:

Usage based rates are driven by current year operating costs and loadings to the treatment plant based on the previous year. GVS& DD anticipate higher operating costs in 2002 and experienced lower loadings in 2001. As a result, unit rates show significant increase ranging between 5.7% and 19.4%.

Capacity rates are mainly attributed to capital works and the associated debt charges as well as Iona Plant flow relative to other plants (for allocation of region wide costs). As only moderate increases in capital costs have recently been incurred, this rate has only increased by about 3%.

Although some rates have increased significantly, overall permitted industries will pay less in 2002 due to a reduction in their overall discharges.

2001 Permitted Industries Wastewater Discharges

The 2001 permitted industrial discharge data indicates that during this first full year that BOD/TSS/Flow direct charges were in effect, a majority of the permitted industrial users reduced their flow volume and improved the quality of effluent that they discharged into the sewer system. Many of the permitted industries have incorporated additional on site treatment measures and in some cases made changes to their business practices to lessen the amount of effluent discharges. In addition, the fish processing industry has seen a decrease in BOD, TSS and flow discharges due to lower business activities experienced in 2001. The result is an overall reduction of volume and loadings discharged by the permitted industries in 2001. The 2001 discharges and the comparative 2000 numbers are summarized in the following table.

Staff will continue to work closely with the permitted industries to reduce high strength BOD and TSS in order to maximize the operational efficiency of the existing Iona Treatment facilities and maintain compliance with the requirements of the Provincial discharge permit.


Financial Implications

City staff rely on GVS&DD unit rates and measured 2001 flow and loadings from each industry for the 2002 Sewer BOD/TSS/Flow charges calculation. Since these data were not available when the operating budget and sewer user fees were established in December, 2001, a recovery was estimated. This estimated recovery of $971,000 is about $53,000 less than the Sewer BOD/TSS/Flow charges that staff now expect ($1,024,000) in 2002. This projected $53,000 surplus will be allocated to the Sewer Rate Stabilization Reserve.

 

APPENDIX 1

2002 SEWER BOD/TSS/FLOW RATES

Description

2001 Rates
2002 Rates
Increase (decrease)

I) Usage Charges

BOD
TSS
Flow

II) Capacity Charges

BOD
TSS
Flow

$0.027 / kg
$0.237 / kg
$0.035 /m3

$3.167 / kg / day
$22.987 / kg / day
$30.478 / m3 / day

$0.031 / kg
$0.283 / kg
$0.037 /m3

$3.257 / kg / day
$23.641 / kg / day
$31.604 / m3 / day

$0.004 / kg
$0.046 / kg
$0.002 /m3

$0.090 / kg / day
$0.654 / kg / day
$1.126 / m3 / day

Comments or questions? You can send us email.
[City Homepage] [Get In Touch]

(c) 1998 City of Vancouver