Title
Multi-City Subregional Operating Group (SROG) User Charge Rates (Ordinance G-6291)
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, 2017 (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, 2017, are used as a basis to fairly allocate costs to the member cities for use of the 91st Avenue WWTP for Fiscal Year 2017-18. The Fiscal Year 2017-18 estimated costs shown below were included in this year’s wastewater financial planning process and reflect the 2.0% wastewater rate increase approved for 2017.
The following SROG user charge rates and allocation of estimated costs were approved by the SROG Committee on Feb. 8, 2017 (Attachment B).
User Charge Allocation of
Rate per FY 2017-18
SROG Member 1,000 Gallon Estimated Costs
City of Glendale $1.19392 $3,442,663
City of Mesa 1.05664 6,942,148
City of Scottsdale 1.19719 3,932,754
City of Tempe 0.74860 5,382,833
Subtotal $19,700,398
City of Phoenix 0.91129 27,607,390
Total $ 47,307,788
Department
Responsible Department
This item is submitted by City Manager Ed Zuercher and the Finance Department.