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Water & Resource Recovery Center Fee Schedule for Fiscal Year 2026 Copyrighted June 2, 2025 City of Dubuque CONSENT ITEMS # 11. City Council ITEM TITLE: Water & Resource Recovery Center Fee Schedule for Fiscal Year 2026 SUMMARY: City Manager recommending City Council adoption of the attached resolutions adjusting the fees charged for services perFormed at the Water & Resource Recovery Center (WRRC) for Fiscal Year 2026. RESOLUTION Establishing The Schedule Of Rates For The Disposal Of Private Hauled Waste To The Water & Resource Recovery Center As Provided For In 13-2B-8(F) Of The City Of Dubuque Code Of Ordinances RESOLUTION Establishing The Schedule Of Rates For The Analysis Of Water Samples At The Water & Resource Recovery Center State-Certified Environmental Lab SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTAC H M ENTS: 1. MVM Memo 2. Staff Memo, FY26 WRRC Fees, 5-28-25 3. Resolution, Establishing the Schedule of Rates for Disposal of Waste Hauled to WRRC, 5-2025 4. Resolution, Establishing the Schedule of Rates for WRRC Environmental Lab, 5- 2025 Page 524 of 2490 Dubuque THE CITY QF � All•li�eriea Ciry DLT B E ��, . � �� � � MaSt� Z�C� alZ t�Q Mt55ZSSZ Z zoa�•zoiz•zai3 �' pp zai�*zaig TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: WRRC Fee Schedule for Fiscal Year 2026 DATE: May 28, 2025 Water and Resource Recovery Center Director Deron Muehring is recommending City Council adoption of the attached resolutions adjusting the fees charged for services perFormed at the Water & Resource Recovery Center (WRRC) for Fiscal Year 2026. As part of this year's budget process, staff is recommending formal memorialization of the Environmental Lab fee schedule through City Council resolution. This step ensures transparency, consistent documentation, and a clear approval process. Going forward, any proposed adjustments to the Environmental Lab fee schedule will likewise be submitted to the City Council for formal consideration and adoption. These changes are intended to ensure that the fees appropriately reflect the cost of providing services and infrastructure. I concur with the recommendation and respectfully request Mayor and City Council approval. � Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Deron Muehring, Water & Resource Recovery Center Director Jennifer Larson, Chief Flnancial Officer Mikaela Tully, WRRC Lab Supervisor Page 525 of 2490 bubuque THE CITY OF � All-Ameriea Cipf Du8 E �ti���,�«�� � � ���► � � Maste iece on the Mississi i zoo��zoiztzois � pP zo��*zoig TO: Michael C. Van Milligen, City Manager FROM: Deron Muehring, Water & Resource Recovery Center Director SUBJECT: WRRC Fee Schedule for Fiscal Year 2026 DATE: May 28, 2025 INTRODUCTION: The purpose of this memo is to recommend adjustments and formal adoption of fees charged for services performed at the Water & Resource Recovery Center (WRRC) for Fiscal Year 2026. These changes are intended to ensure that the fees appropriately reflect the cost of providing services and infrastructure. BACKGROUND: The WRRC's hauled waste program serves an important role in supporting the broader Dubuque-area economy. By accepting high-strength and domestic waste transported by regional haulers—including waste from industries, commercial kitchens, food processors, car washes, and septic systems—the WRRC enables local businesses to operate in compliance with environmental regulations without building costly, stand-alone treatment systems. This service benefits employers ranging from industrial manufacturers that support hundreds of local jobs to restaurants that serve thousands of patrons each week. It also provides a safe, regulated destination for residential septic and holding tank waste, protecting groundwater and public health. Hauled waste services are priced to reflect the full cost of treatment and are reviewed annually to ensure appropriate cost recovery without subsidizing from general utility revenues. The WRRC's Environmental Lab is a state-certified facility that plays a critical role in maintaining public health and environmental quality throughout the region. In addition to monitoring water samples throughout the WRRC treatment process to ensure permit compliance and operational efficiency, the lab provides fee-based analytical services for private well owners, small community water systems, industrial clients, and wastewater operators across the tri-state area. These services enable customers to meet regulatory requirements, investigate water quality concerns, and verify the safety of drinking water and recreational water sources. The lab's certification ensures that all analyses meet state standards and produce legally defensible results. Lab fees are reviewed annually to ensure they reflect the true cost of service, including consumables and staff time, without generating a profit. The services provided by the Environmental Lab—and the WRRC's acceptance of hauled waste—directly support several of the City of Dubuque's core priorities, including Service People Integrity Responsibility Innovation Teamwork Page 526 of 2490 protecting the environment, delivering high-quality municipal services, and fostering regional partnerships. The hauled waste program reduces the need for redundant infrastructure across the region and ensures that commercial, industrial, and residential waste is treated in a centralized, compliant, and environmentally responsible manner. The Environmental Lab strengthens the City's capacity to respond to water quality concerns, ensures compliance with state and federal standards, and builds trust with residents and businesses who depend on accurate and timely data. DISCUSSION: The WRRC's current fee schedule for hauled waste disposal was updated in FY25 after remaining unchanged since FY17. The increased fees helped offset the rising cost of operations, biosolids disposal, chemical and energy use, labor, and equipment wear related to hauled waste. The current hauled waste fee schedule was first proposed as part of an FY25 improvement package request and approved by City Council in spring 2024. That request established a multi-year strategy to incrementally increase fees to better recover the costs associated with accepting and treating hauled waste. In addition to offsetting current operating costs, these revenues are intended to help fund a $7.3 million capital improvement project for hauled waste receiving upgrades at the WRRC. This project— approved as part of the FY25 Capital Improvement Program—will construct a new receiving facility, improve sample collection and waste screening capabilities, and enhance site access and control. These upgrades are essential to maintaining system reliability and permit compliance as hauled waste volumes and pollutant loads increase. Under the adopted funding strategy, disposal fees are scheduled to increase again with the FY27 budget. Based on the FY25 improvement package adopted as part of the FY25 budget, the proposed rate schedule for hauled waste is outlined below: Waste Type FY25 Rate Proposed FY26 Rate Hi h Stren th Waste $0.08 $0.105 Fats, Oils & Grease FOG $0.063 $0.08 FOG outside cit $0.075 $0.10 Se ta e $0.09 $0.11 Se ta e outside cit $0.12 $0.14 Inor anic Waste e. ., rit, etc. $0.15/ al $0.165 Inor anic Waste outside cit $0.15/ al $0.18 The City has submitted a request for federal Community Project Funding through Representative Ashley Hinson's office to support this project. If a grant is awarded, the federal funding could eliminate the need to raise fees further. In fact, depending on the amount secured through the federal budget process, the City may be able to avoid the FY27 fee increase or potentially lower fees in FY26. Staff will monitor the status of the funding request and evaluate the fee structure accordingly in coordination with future budget development. The proposed fee schedule is based on the actual cost of handling, treating, and disposing of hauled waste at the WRRC, including labor, energy, chemical usage, biosolids management, and infrastructure maintenance. For waste originating outside the Service People Integrity Responsibility Innovation Teamwork Page 527 of 2490 City of Dubuque, an additional charge is applied because out-of-city customers do not contribute to all of the fixed costs associated with the WRRC. These fixed costs—funded entirely by WRRC ratepayers—support the infrastructure, maintenance, and operational readiness of the facility year-round, regardless of the volume of waste treated. Out-of-city users benefit from the availability and reliability of that system without participating in the underlying financial obligation to maintain it. Additionally, out-of-city waste utilizes treatment capacity that could otherwise be reserved for local needs or future growth. The higher rates for out-of-city waste ensure that regional users pay a proportionate share of the operational and capital burden their waste places on the system. The WRRC Environmental Lab is a state-certified facility that perForms water sample testing to support regulatory compliance and facility optimization at the WRRC. This includes sampling of influent and effluent flows, monitoring of intermediate process streams, and calculation of permit-mandated performance metrics such as the required 85% reduction in total suspended solids. State certification requires routine audits and adherence to standard methods, which makes the lab's results legally defensible for regulatory purposes. In addition to internal testing, the lab provides analytical services to residents and organizations throughout the tri-state area, including tests for private wells and small treatment systems. These services are priced to recover only the cost of analysis, not to generate profit. The WRRC reviews these fees annually to ensure they remain aligned with supply and labor costs. The fees charged by the WRRC Environmental Lab are generally comparable to those charged by other municipal and private laboratories in the region. As part of this year's budget process, staff is recommending formal memorialization of the Environmental Lab fee schedule through City Council resolution. This step ensures transparency, consistent documentation, and a clear approval process. Going forward, any proposed adjustments to the Environmental Lab fee schedule will likewise be submitted to the City Council for formal consideration and adoption. The following table presents the proposed Environmental Lab fee schedule for FY26: Laborato Test FY25 Fee FY26 Fee Increase Ammonia Nitro en $20 $20 $0 Bacteria 18 hour $22 $32 $10 Bacteria 24 hour $20 $30 $10 Biochemical Oxygen Demand BOD $25 $25 $0 Chemical Ox gen Demand COD $30 $32 $2 E. coli Quantitra Method $30 $40 $10 Fecal Coliform MPN $27 $27 $0 Grease and Oil Hexane Extraction $50 $54 $4 Nitrate $20 $20 $0 Nitrite $20 $20 $0 H $10 $10 $0 Pseudomonas $20 $30 $10 Total Dissolved Solids $19 $19 $0 Total K'eldahl Nitro en TKN $29 $31 $2 Service People Integrity Responsibility Innovation Teamwork Page 528 of 2490 Laborato Test FY25 Fee FY26 Fee Increase Total Phosphorus $19 $19 $0 Total Sus ended Solids TSS $20 $20 $0 Volatile Sus ended Solids VSS $19 $19 $0 RECOMMENDATION: I recommend adjusting the adjustments and formal adoption of fees charged for services perFormed at the Water & Resource Recovery Center (WRRC) for Fiscal Year 2026 as outlined herein. ACTION REQUESTED I respectfully request adoption of the attached resolutions adjusting the fees charged for services performed at the Water & Resource Recovery Center (WRRC) for Fiscal Year 2026. Attach. Cc: Crenna Brumwell, City Attorney Jennifer Larson, Chief Financial Officer Mikaela Tully, WRRC Lab Supervisor Service People Integrity Responsibility Innovation Teamwork Page 529 of 2490 Prepared by: Deron Muehring WRRC 795 Julien Dubuque Drive Dubuque IA 52003 (563)589-4177 Return to: Adrienne N. Breitfelder, City Clerk, 50W 1311 Street, Dubuque, IA 52001 (563)589-4100 RESOLUTION NO. 183 - 25 ESTABLISHING THE SCHEDULE OF RATES FOR THE DISPOSAL OF PRIVATE HAULED WASTE TO THE WATER & RESOURCE RECOVERY CENTER AS PROVIDED FOR IN 13-2B-8(F) OF THE CITY OF DUBUQUE CODE OF ORDINANCES WHEREAS, the Water & Resource Recovery Center (WRRC) provides wastewater treatment for residential, commercial, and industrial users in the city of Dubuque and surrounding areas; and WHEREAS, the WRRC receives wastewater through the sanitary sewer collection system and permitted waste hauled to the treatment facility; and WHEREAS, hauled waste can be categorized as domestic septage; high strength waste (waste with higher levels of pollutants than domestic waste); fats, oils, and grease (FOG); and inorganic waste; and WHEREAS, provided for in 13-213-8(F) of the City Code of Ordinances, the rate to be charged for domestic sewage discharged at the wastewater plant by private haulers shall be established by resolution. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Establishes the rates for the disposal of private hauled waste at the WRRC pursuant to the schedule of rates as follows: Private Hauled Waste Disposal Rate Schedule High Strength Waste $0.105 per gallon Fats, Oils, & Grease (FOG) $0.080 per gallon FOG [originating outside city limits] $0.100 per gallon Septage $0.110 per gallon Septage [originating outside city limits] $0.140 per gallon Inorganic waste (e.g., car wash grit) $0.165 per gallon Inorganic waste [originating outside city limits] $0.180 per gallon Section 2. The given rate schedule shall take effect on July 1, 2025. Passed, approved and adopted this 2nd day of June, 2025. Attest: Adrienne Breitfeldef, City Clerk Prepared bv: Deron Muehdnq WRRC 795 Julien Dubuque Drive Dubuque IA 52003 (563)589-4177 Return to: Adrienne N. Breitfelder, City Clerk, 50W 131h Street, Dubuque, IA 52001 (563)589-4100 RESOLUTION NO. 184 - 25 ESTABLISHING THE SCHEDULE OF RATES FOR THE ANALYSIS OF WATER SAMPLES AT THE WATER & RESOURCE RECOVERY CENTER STATE -CERTIFIED ENVIRONMENTAL LAB WHEREAS, the Water & Resource Recovery Center (WRRC) Environmental Lab is a state -certified facility that performs water and wastewater sample analysis to support regulatory compliance, process monitoring, and public health protection; and WHEREAS, the WRRC Environmental Lab supports the operations of the WRRC and also offers testing services to residents and organizations across the tri-state area, including services for private well owners and small water treatment systems; and WHEREAS, the WRRC Environmental Lab fees are designed to recover the actual costs of testing services, including staff time and laboratory consumables, and are reviewed annually to ensure continued cost alignment; and WHEREAS, it's in the best interest of the City to memorialize the WRRC Environmental Lab fee schedule in support of the approved Fiscal Year 2026 budget. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. Establishes the fee schedule for WRRC Environmental Laboratory testing services as follows: WRRC Environmental Laboratory Fee Schedule Laboratory Test FY26 Fee Ammonia Nitrogen $20.00 Bacteria (18 hour) $32.00 Bacteria (24 hour) $30.00 Biochemical Oxygen Demand (BOD) $25.00 Chemical Oxygen Demand (COD) $32.00 E. coli (Quantitray Method) $40.00 Fecal Coliform (MPN) $27.00 Grease and Oil (Hexane Extraction) $54.00 Nitrate $20.00 Nitrite $20.00 pH $10.00 Laboratory Test FY26 Fee Pseudomonas $30.00 Total Dissolved Solids $19.00 Total Kjeldahl Nitrogen (TKN) $31.00 Total Phosphorus $19.00 Total Suspended Solids (TSS) $20.00 Volatile Suspended Solids (VSS) $19.00 Section 2. The given rate schedule shall take effect on July 1, 2025. Passed, approved and adopted this 2nd day of June, 2025. Attest: Cv'L 2�z &� �Iw� Adrienne Breitfelder, City Clerk