2/15/1994 - Laserfiche WebLink

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- M M Utilities Director Terry Pinto reported that after a year of operation of the treatment plant, we have gone back and looked at the actual cost of operations and the cost of treatment of septage and sludge. There are several areas of particular importance in deriving a rate for a new facility. Because the facility is working at approximately 10 percent of its operating capacity, it- is not equitable to the customers to strike a rate placing all of the operating costs and all of the capital costs on its existing customers. A private utility normally is allowed to recover at 100 percent when they reach 70 percent of their capacity. If they are operating at less than 70 percent of their capacity, the company usually is made to absorb the excess cost so as to not penalize the customers who were first on the system. In our case, the costs would be distributed across the entire system and a rate struck for those truckers dumping septage and sludge. The rest of the funds would be recovered through the entire system. We have chosen 70 percent because we think it is a fair and equitable way to strike the rate. Commissioner Macht asked if we had received Tallahassee's standpoint on the spreading of sludge. It seems that the spreading of sludge is an acceptable practice by important elements of both the state and federal governments and no short-term change is expected. Director Pinto explained that when the new regulations were developed, there were some strict requirements for the spreading of sludge. The problem is that the requirements are self-monitoring, and we don't really know who is spreading the sludge or whether they are meeting those requirements. Indian River County would be allowed to spread treated sludge, but we don't think that is the most effective method. Director Pinto emphasized that at this point, it is a Health Department issue. Any costs incurred by the Health Department in these matters have to be borne by the Health Department, not Utility Services. Administrator Chandler noted that there are certain areas in our Comp Plan and LDRs that define where we can spread sludge and more information on that will be brought to the Board in the near future. Commissioner Bird asked how these proposed rates compare to other counties, and Director Pinto advised that the rates run anywhere from $12 to $100, depending on the degree of treatment. He wished to emphasize that the County had no choice but to build a sludge treatment facility and the City of Vero Beach must build a sludge facility also. The preferable way to get rid of treated sludge is through compost. 31 JEB 1519941 BOOK PAC�Y'•�c�