Title
Multi-City Subregional Operating Group (SROG) User Charge Rates (Ordinance G-6446)
Description
Request City Council approval to amend Phoenix City Code for the Multi-City Subregional Operating Group (SROG) User Charge Rates.
Report
Summary
This request amends the Phoenix City Code Chapter 28, Article V, Section 28-39 (a) 4, implementing changes to the sewer user rates to the Multi-City Subregional Operating Group (SROG) members effective July 1, 2018 (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 charge rates implemented annually on July 1 of each fiscal year.
The rates, to be effective July 1, 2018, are used as a basis to fairly allocate costs to the member cities for use of the 91st Avenue WWTP for Fiscal Year 2018-19. The Fiscal Year 2018-19 estimated costs shown below were included in this year’s wastewater financial planning process.
The following SROG user charge rates and allocation of estimated costs were approved by the SROG Committee on March 14, 2018 (Attachment B).
User Charge Allocation of
Rate per FY 2018-19
SROG Member 1,000 Gallon Estimated Costs
City of Glendale $1.26694 $3,653,219
City of Mesa 1.10251 7,243,519
City of Scottsdale 1.33976 4,401,122
City of Tempe 0.79027 5,696,838
Subtotal $20,994,698
City of Phoenix 0.92232 28,110,066
Total $ 49,104,764
Concurrence/Previous Council Action
This item was previously approved by City Council on March 22, 2017 (Ordinance G-6291).
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.