Title
Multi-City Subregional Operating Group User Charge Rates (Ordinance G-6689)
Description
Request City Council approval to amend Phoenix City Code for the Multi-City Subregional Operating Group (SROG) User Charges.
Report
Summary
This request amends the Phoenix City Code Chapter 28, Article V, Section 28-39 (a) 4, implementing changes to the sewer user charges to the Multi-City SROG members effective July 1, 2020 (Attachment A).
The City of Phoenix participates with the cities of Glendale, Mesa, Scottsdale, and Tempe in Intergovernmental Agreement 22699 (IGA), for construction, operation and maintenance of the jointly-used 91st Avenue Wastewater Treatment Plant (WWTP). As lead agency, the City of Phoenix is responsible for the planning, budgeting, construction, operation and maintenance of the plant, and for billing member cities. The other members pay for costs of operation and maintenance based on anticipated use of the facility measured by sewage flows and strengths. These costs are recovered from the other members through user charges implemented annually on July 1 of each fiscal year.
The charges, to be effective July 1, 2020, are used as a basis to fairly allocate costs to the member cities for use of the 91st Avenue WWTP for Fiscal Year 2020-21. The Fiscal Year 2020-21 estimated costs shown below were included in this year’s wastewater financial planning process.
The following SROG user charges and allocation of estimated costs were approved by the SROG Committee on Feb. 12, 2020 (Attachment B).
User Charge Allocation of
per FY 2020-21
SROG Member 1,000 Gallon Estimated Costs
City of Glendale $1.28058 $3,692,551
City of Mesa 1.17477 7,718,253
City of Scottsdale 1.33237 4,376,820
City of Tempe 0.85818 5,951,501
Subtotal $21,739,125
City of Phoenix 1.05107 32,033,848
Total $53,772,973
Concurrence/Previous Council Action
This item was previously approved by City Council on April 3, 2019 (Ordinace G-6573).
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance and Water Services departments.