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Establishing Water and Resource Recovery Center (WRRC) Copyrighted April 28, 2026 City of Dubuque ACTION # 3. City Council ITEM TITLE: Establishing Water and Resource Recovery Center (WRRC) Fee Schedules Fiscal Year 2027 SUMMARY: City Manager recommending City Council adoption of the attached resolution adjusting the fees charged for services performed by the Water and Resource Recovery Center (WRRC) for Fiscal Year 2027. 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 SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. Staff Memo, FY27 WRRC Fees, 4-23-26 2. Resolution, Establishing the Schedule of Rates for Disposal of Waste Hauled to WRRC, 4-2026 Page 607 of 654 Dubuque THE CITY OF � All-Ameriea City Du B E ;�� � , � � � �� Maste iece on the Mississi i Z°°'�Z°12-Z°13 YP Pp zoi�*Zoi9 TO: Michael C. Van Milligen, City Manager FROM: Deron Muehring, Water & Resource Recovery Center Director SUBJECT: WRRC Fee Schedule for Fiscal Year 2027 DATE: April 23, 2026 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 2027. 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 Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 608 of 654 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. In June of 2025, the City Council adopted Resolution 183-25 establishing the tipping fee rates for hauled waste received at the WRRC and Resolution 184-25 establishing the WRRC Environmental Laboratory Fee Schedule. DISCUSSION: 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. The table below presents the existing Environmental Lab fee schedule. Laborato Test Fee Ammonia Nitro en $20 Bacteria 18 hour $32 Bacteria 24 hour $30 Biochemical Ox en Demand BOD $25 Chemical Ox en Demand COD $32 E. coli Quantitra Method $40 Fecal Coliform MPN $27 Grease and Oil Hexane Extraction $54 Nitrate $20 Nitrite $20 H $10 Pseudomonas $30 Total Dissolved Solids $19 Total K'eldahl Nitro en TKN $31 Total Phosphorus $19 Total Sus ended Solids TSS $20 Volatile Suspended Solids VSS $19 Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 609 of 654 A review of current laboratory fees was completed in advance of the FY2027 budget process, including verification of updated vendor pricing and associated operating costs. Costs have not risen to the point where fee adjustments are warranted. As such, the WRRC laboratory fees are proposed to remain unchanged for FY2027 to continue providing cost-effective services to customers. Fees will be re-evaluated again as part of the FY2028 budget process. A hauled waste fee schedule was 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 were intended to help fund an $8.1 million capital improvement project for hauled waste receiving upgrades at the WRRC. This project—funded as part of the FY26 Capital Improvement Program—will provide for 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 were 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 FY26 FY27 Rate Rate Rate Hi h Stren th Waste $0.080 $0.105 $0.130 Fats, Oils & Grease FOG $0.063 $0.080 $0.105 Septa e $0.090 $0.110 $0.140 The City's request for federal Community Project Funding through Representative Ashley Hinson's office was successfully included in the federal funding bill, providing $2 million for the High Strength Waste Receiving & Storage Project. As a result of this anticipated funding, the fee increases proposed for FY2027 are lower than they otherwise would have been absent the federal assistance. This outside funding helps reduce the cost burden on program users while allowing the City to continue advancing the infrastructure needed to safely and effectively manage high-strength waste. The table below compares the fee levels that were previously projected to be necessary to support the project with the FY2027 fees now proposed following the inclusion of federal funding. As shown in the far-right column, the proposed FY2027 rates are lower than originally anticipated, reflecting the benefit of outside funding assistance. Waste Type FY27 Proposed Rate FY27 Rate Hi h Stren th Waste $0.130 $0.119 Fats, Oils & Grease FOG $0.105 $0.092 Se ta e $0.140 $0.127 For waste originating outside the City of Dubuque, an additional charge is appropriate because the WRRC exists first and foremost to serve Dubuque residents and local Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 610 of 654 businesses. While the facility can accept hauled waste from outside the city when capacity allows, the direct benefit of doing so to Dubuque ratepayers is limited if fees only recover the cost of treatment. Standard tipping fees are structured to cover the cost to receive, handle, and treat the waste, but accepting outside waste also utilizes treatment capacity, staff attention, and infrastructure availability that would otherwise remain available for local needs, system resiliency, or future community growth. A modest additional charge for out-of-city waste helps ensure that Dubuque residents receive a benefit in return for making City-owned capacity available to regional users. This approach recognizes that outside users are accessing a public asset funded and maintained to serve the City of Dubuque, while helping ensure local ratepayers receive fair value when that capacity is used by others. The proposed tipping fee for Inorganic Waste from commercial operations in FY27 is recommended to increase by 9%, consistent with the rate adjustment proposed for sanitary sewer utility customers. The proposed tipping fees for hauled waste for FY27 is outlined in the table below. Waste Type FY26 Proposed Rate FY27 Rate Hi h Stren th Waste $0.105 $0.119 Fats, Oils & Grease FOG $0.080 $0.092 FOG outside cit $0.100 $0.112 Septa e $0.110 $0.127 Se ta e outside cit $0.140 $0.157 Inor anic Waste e. ., rit, etc. $0.165 $0.180 Inor anic Waste outside cit $0.180 $0.200 RECOMMENDATION: I recommend adoption of fees charged for services performed at the Water & Resource Recovery Center (WRRC) for Fiscal Year 2027 as outlined herein. ACTION REQUESTED I respectfully request adoption of the attached resolution adjusting the fees charged for services performed at the Water & Resource Recovery Center for Fiscal Year 2027. Attach. Cc: Crenna Brumwell, City Attorney Jennifer Larson, Chief Financial Officer Mikaela Tully, WRRC Lab Supervisor Scrvicc Pcoplc Intcgrity Rcsponsibility Innovation Tcamwork Page 611 of 654 Prepared by: Deron Muehrinq, City of Dubuque WRRC, 795 Julien Dubuque Drive, Dubuque, IA 52003 (563)589-4177 Return to: Adrienne N. Breitfelder, City Clerk, 50W 13th Street, Dubuque, IA 52001 (563)589-4100 RESOLUTION NO. 162-26 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. WHEREAS, provided for in 13-2B-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 $0.119 per gallon Fats, Oils, & Grease (FOG) $0.092 per gallon FOG [originating outside city limits] $0.112 per gallon Septage $0.127 per gallon Septage [originating outside city limits] $0.157 per gallon Inorganic waste (e.g., car wash grit) $0.180 per gallon Inorganic waste [originating outside city limits] $0.200 per gallon Section 2. The given rate schedule shall take effect on July 1, 2026. Passed, approved and adopted this 28th day of April 2026. Brad M. avanagh, Mayor Attest: Trish L. Gleason, Assistant City Clerk