HomeMy WebLinkAboutAgenda - 10-19-1999 - 7a1
ORANGE COUNTY
BOARD OF COMIVIISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 19,1999
Action Agenda
Item No. ~_.
SUB'ECT: Efland Sewer Fund -Revisions to Fee Schedule
DEPARTMENT: County PUBLIC HEARING:
Manager (Y/N) Yes
ATTACHMENT(S): INFORMATION CONTACT:
9/23/99 County Engineer Memo Paul Thames, ext 2303
10/11./99 County Engineer Memo.
Existing/Proposed Fee Table
Resolution
__ -
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapelliill J58-45®1
Durham 688-7331
Mebane 335-227-2®31
PUiBPOSE: To hold a public hearing on proposed revisions to the fee schedule for new
connections to the Efland Sewer system and to consider approval of those revisions on the
close of the public hearing.
BACKGROUND: The fee structure in the "Rules and Regulations for Operation of the
System" dating to 1985 results in the County's subsidizing connections to Efland Sewer
system, as outlined in the Engineer's September 23, 1999 memo. To preclude the County's
inappropriately underwriting future connections to the system as development in the
Efland area increases, staff recommends that the Board create and define:
1) a stub-out service line fee which recovers the administrative and construction cost of
installing the service line on the basis of a "cost plus" structure;.
_ __
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2) an acreage fee of $1,000 per acre, some or all of which may be designated for retiring
the debt (including interest) for the General Fund loan that helped finance the cost
of constructing the existing system; some or all of which may be designated to fund
capital replacement of existing infrastructure;
3) a County availability fee of $600 per sewer tap.
Staff also recommends that the rules be amended to specifically require that the
Hillsborough availability fee - as determined on a case-by-case basis by the Town - be
passed through directly to the consumer/customer.
Staff is not recommending that the original customers who have .signed and
delivered to the County a sewer easement and agreement be charged any
access, availability or service stub-out fees other than those required under
the terms of their contract(s).
icINANCYAL YMPACT: These changes will enhance the financial position of fihe Efland
Sewer Fund and preclude any unintended subsidy by the General Fund of new system
connections.
REC®MMEN®ATI®N(S): The Manager recommends that the Board: approve the
RESOLUTION AMEN®-YNG RULES AN® REGULATI®NS ~®R TIME ®PERATION ®~
A SEVI/ER C®LLECTI®N TREATMENT Sl(STEM Ttl SERi/E TIME EIFLANCI AREA OF
~ NGE COUNTY.
3
Nt~RTH CAROLINA RESULUTIt7N AMENDING-THE
RULES AND REGULATICINS
FGlR THE C]PERATIt~N G1F A
SEWER. CC-LLECTIC-N TREAT-
MENT SYSTEM TfJ SERVE
THE EFLAND AREA C3F
t~RANGE C(]UNTY CtiRANGE CGtUNTY
Be it resolved by the Board of Commissioners of grange
County that the rules and regulations for the operation of a
sewer collection treatment system to serve the Efland area of
orange County (hereafter .the Rules. ).are hereby amended.
III. RATE SCHEDULE AND AVAILABILITY FEES
. .
B. Availability Feess
Each person, firm, or corporation connecting
to the system (hereinafter user or users) ~~w~~ ~'~~-~ .~,.....s~
shall pay a $600.00 per residential equivalent
availability fee to the County and a--8~8-9~ an availability fee
to the Town of Hillsborough as established and revised from
time to time by the Town of Hillsborough.
r
The original 212 potential
Efland Area Sewer System customers who have provided orange
County with an application for sewer service to the Efland
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Sewex'-S~stem__ _and who have tarovided orange county with a
signed and acknowledged Efland Sewer S~rstem Sewer Easement
and Agreement but have not been connected to the s~rstem
because their ~rogert~ affected b~ the Sewer Easement and
Agreement is not het served b~ the sewer system arcs with
respect to the ~ropert~ affected b~ the agreement, exempt
from orange county availability fees provided their connect
to the sewer s~rstem and become sewer customers of the sewer
system with respect to the ~ro~ert~ covered bra the Sewer
Easement and Agreement signed bar them within 3U da~rs of
notification that connection can be made. Ayailabilit~ Fees
shal_1 be_1?ad b~ the user with __a completed___and signed Efland
Sewer System Sewer Easement and Agreement.
~. Acreage Fee [nom].
Each person, firm, or corporation
connecting to the system thereafter user or users) shall..~a~
a $1040.40 der acre capital replacement fee. The original
212 potential Efland Area Sewer System customers who have
~royided orange county with an a~~lication for sewer service
to the Efland Sewer System and who hays grovided orange
count.with a signed. and acknowledged Efland Sewer Svstem
Sewer Easement and Agreement but have not been connected to
the sr~stem because their ~ronert~ affected b~ the Sewer
Easement and Agreement is not het served bar the sewer s~rstem
area with respect to the ~ro~ert~r affected b~ the Agreement
exempt from orange caunt~ acreage fees provided their
connect to the sewer s~rstem and become sewer customers of
the suer system with respect to the ~ro~ert~ covered b~ the
Sewer Easement and Agreement signed b~ them within 30 dais
of .notification that connection can be made. Acreage Fees
shall be laid b~ the user with a completed and signed Efland
Sewer System Sewer Easement and Agreement.
D. Stub-out Service Line Fee [~i:a].
Each person, firm, or corporation
connecting to the system thereafter user or users) shall ~a~
a stub-out service line fee in an amount equal to the
administrative and construction cost to Drange County of
installing a service line. This fee shall- be based on the
out-of-docket cost to Drange County far installing the
service line plus an allocated cost equal to the
administration cost to Drange County of having the
installation accomplished. The original 212 potential Efland
Area 5ewer,S~stem customers who have provided Drange Caunt~
with an a~~lication fox sewer service to the Efland Sewer
System and who have provided Drange County with a
signed and acknowledged Efland. Sewer System Sewer
Easement and Agreement but have not been connected
to the system because their ~ro~ert~ affected b~
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the Sewer Easement and Agreement is not yet served bar the
sewer system are,_.,with respect to the property affected b~
the Agreement, exempt__from__ Ctrancte_ Countv__._stub-out Service
Line fees, provided they connect to-the sewer s~rstem and
become sewer customers of the sewer system with respect to
the propert~€ covered b~ the Sewer Easement aid Agreement
signed by theme within 30 dais of notification that
connection can be made. A stub-out Service Line Fee shall be
due from, owed and paid b~ the user within fifteen ( 15 ~, da~rs
of mailing to the user___of _an ~ranQe County __invoice for the
fee.
upon motion made by Commissioner ,
seconded by Commissioner
the foregoing resolution was
adopted by the grange County Board of Commissioners this the 19~h
day of Crctober, 1999.
I, Beverly A. Blythe, Clerk to the Board of
Commissioners for the County of Orange, North Carolina, D0 HEREBY
CERTIFY that the foregoing is a true copy of so much of the
proceedings of said Board at a meeting he1d~ on October 19, 1999
as relates. in any way to the adoption of the foregoing and that
said proceedings are recorded in Minute Book No. of .the
minutes of said Board.
WITNESS my hand and the seal of said County, .thin
day of , 1999.
Clerk to the Board of Commissioners
n.
MEMORANDUM
TO: County Commissioners
John Link, County Manager
COPIES: Geoff Gledhill, County Attorney
Rod Visser, Assistant County 1v~anager
Craig Benedict, Planning Director
Diane Reid, Economic Development Director
..---
PROM: Paul Thames, PE, County Engine ''~
DATE: October 11, 1999
SUBJECT: Efland sewer system fees
As per the request. of Commissioner Jacobs, please find attached the section of Orange Water and Sewer
Authority's fee manual that outlines OWASA's water and sewer availability fees. As indicated by the
fee structure outlined in these pages, OWASA collects a residential availability fee that varies on the
basis of square footage of the residential unit receiving service.
Provisions of OWASA's purchase and sales agreement with the University of North Carolina require
that its fees and rates reflect the actual cost of providing utility service to those who are paying the fees
and rates. OWASA has previously indicated that fees and rates charged one utility customer or
type/class of utility customer may not to be used to subsidize the cost of providing utility service to
another utility customer or type/class of customer. OWASA staff recommended the variable fee
structure which was adopted by the OWASA board of directors on the basis of a comparative analysis of
its domestic water use (and sewer use) records and last three years of Chapel HilUCarrboro building
permit data. Staff analyzed the data to determine if there was a correlation between property value., and
water/sewer use, property acreage/lot size and water/sewer use and house size and water/sewer use. The
analysis showed a direct correlation between home size and water/sewer use. Accordingly, OWASA has
adopted a domestic water and sewer availability fee structure that has been broken down into the
following categories:
^ homes less than 1701 square feet
^ homes between 1701 and 2400 square feet
^ homes between 2401 and 3100 square feet
^ homes between 3101 and 3800 square feet
^ homes lazger than 3800 square feet
OWASA's stepped sewer availability fees currently range from $1310 to $2001. The minimum sewer
availability fee is increased by 1.69 percent for a home larger than 1701 square feet, by 23.7 percent for
a home larger than 2401 square feet, by 34.1 percent for a home larger than 3100 square feet, and by
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52.8 percent for a home larger than 3800 square feet. Prior to its adoption of the step fee structure, "
OWASA's standard sewer availability fee for all size residences was approximately $1800, with acreage
surcharges applied to acreage in excess of one-half acre.
The situation in Efland is very dissimilar to that in the Chapel Hill/Carrboro area. The number of
existing and particularly new homes in Efland is small compared to the numbers present in the OWASA
service area. The vast majority of the existing homes in Efland are much smaller than 1700 square feet
and there are very few homes that would fall into the 2400 to 3800 square feet. There may not be any
homes larger than 3800 square feet. As a rural community, however, there are a number of properties in
Efland that fall into a category where there are small or moderately sized homes on tracts with a sizable
amount of property that can be subdivided and developed.
At the present time, a database of statistics related to Efland's water/sewer use in relationship to .the size
of property tracts, housing values or house sizes have not been developed If it is the desire of the
BOCC, these statistics can be acquired and analyzed to determine if a correlation similar to that found
by OWASA can be detected. There are several caveats that must be noted about such an analysis. It is
possible that the number of older homes in Efland -there are very few new homes - with aged plumbing
and antiquated plumbing fixtures, will show an unrealistically high water use when compared to the size
of a home., The small ,sampling size available for new and existing homes of all sizes of homes in the
Efland area can. also lead to faulty or invalid results for an .analysis. However, if the BOCC wishes the
process of analysis to be initiated, specific uncertainties related to various sampling size inadequacies
can be noted and the validity of the analysis can be evaluated on that basis.
As the information necessary to evaluate a step fee structure is not currently available, staff recommends
that the Board of County Commissioners adopt - at least on an interim basis -the previously
recommended fee schedule (discussed by theBoard at its September 29~' meeting) which includes: a) a
$600 availability fee; b) a $1000 per acre acreage fee; c) a service tap installation fee determined on a
"cost-plus" basis; and d) a straight pass through of Hillsborough's- availability fees -as determined on a
case-by-case basis by the Town. It is not the intent of Orange County. to overcharge homeowners whose
homes are located on large lots or tracts of land. Owners of new or existing homes on large tracts may
avoid acreage fees (to both the County and Town) on undeveloped acreage by subdividing their property
such that a dwelling to be provided with sewer service is located on a smaller sized parcel. .
If I may provide additional information or input, please advise.
9
MEMORANDITM
T®: Chanty Commissioners
John Link, County Manager
COPIES: Geoff Gledhill, County Attorney
Rod Visser, Assistant County Manager
Craig Benedict, Planning Director
Ken Chavious, Finance Director
Diane Reid, Economic Development Director
FROM: Paul Thames, PE, County Engine' car-.
DATE: September 23, 1999 ..
SUBJECT: Efland sewer, system fees
At its work- session of April 13,1999, in the Board discussion dealing with approval of BOCC goals,
Commissioners instructed staff to create a goal that integrated a number of issues~relative to planning
concerns, economic development and utility services in the Efland -Mebane - Buckhom Road EDD
area. One element of that goal was to be a rate/fee study culminating in recommendations for revising
both the fee and the rate structure for the existing and an expanded Efland sewer system. ~ The overall
goal is currently being developed by Planning, Economic Development and Manager's staff. However,
'staff strongly recommend that the effort to revise the fee (but not the rate) structure for Etl.and sewer
system move forward independent of and preceding the process to develop and approve the remaining
elements of the revenue structure or the overall goal.
The existing fee. structure .for the Efland sewer system was created by the BOCC and incorporated in the
Rules and Regulations for the Operation of the System as adopted by the Board in November 1985 and ~.
amended in November 1988. Section III, Rate Schedule and Availability Fees, specifies that:
a) availability fees are to be $600 for the Chanty and $400 for the Town of Hillsborough; and
b) availability fees may change pursuant to duly enacted resolutions of the County and the Town. While
the official rules contain subsections for both Acreage Fees and Stub-out Service Line Fees, the
subsections are noted as [R.eserved] and contain no specified fee amounts or instructions, directions or
provisions for applying those fees.
The effect of (1) the lack of a fee structure for acreage and stub-out service line fees and (2) the very
low County portion of the access fee has been to impose a financial burden on the Efland sewer
enterprise fund. One measure of the nature and extent of burden is revealed by the degree to which the
enterprise fund - supplemented by annual allocations from the General Fund -must subsidize the.
capital costs of providing/constructing service lines to connect new customers tc- the sewer system. The
current costs for installing/constructing stub-out service line range from $800 to more than $3000,
depending on a variety of factors related to construction conditions. Given the existing $'600 cap on the
County portion of the availability fees, the County must subsidize the cost of installing each sewer tap
by an amount that varies between $200 and $2400. Furthermore, under the provisions of the Rules of
10
Operation, the Efland sewer system carries a debt (initial capital construction casts) to the County's
General Fund of approximately $200,000. Under the current fee structure, there are no fee revenues
available to provide for any reduction of this debt.
Hillsborough's fee structure applicable to customers of the Efland ystem has not remained static. Even
prior to the sewer system becoming operational, the Hillsborough portion of the availability fee was
raised from. $400 to $600, reflecting the then-current accessibility fee charged by Hillsborough for its in
town customers. Since that time, the Town of Hillsborough's fee structure has reflected fee increases
on at least two occasions. The current availability fee structure sets a fee of $800 far a 5/8 inch water
meter service {standard residential size) ar $1000 per, acre, whichever is greater, for in town customers.
Hillsborough's Town Engineer has recently advised that Efland customers not covered under the
original tap fee agreement will be subject to fees applicable to other out of-town customers or double
the rate for in town customers ($1600 for the .standard S/8 inch residential water meter service or $2000
per acre).
Staff recammends that the BOCC adopt a revised fee structure that addresses the shortcomings in the
existing fee structure. Specifically, staff recommends that the Board create and define:
- a stub-out service line fee which xecovers the administrative and construction. cost. of installing the
service line on the basis of a costplus fee structure;
- an acreage fee of $1000 per acre to be designated for retiring the debt plus interest for the General
Fund loan that helped finance the cost of constructing the existing system.
Furthermore, staffrecommends that the County:
- maintain the existing availability fee of $600 per residential .equivalency sewer tap to fund a capital
replacement account for existing infxastructure;-
- amend the Rules and Regulations for the Operation of the System to specifically require ,that the
Hillsborough availability fee - as determined~on a case-by-case basis~by the Town.- be passed
through directly to the consumer/customer.
Staff is not recommending that the original customers whu have sewer tap/sewer service contracts
be charged any access, availability or service stub-outs fees other than those required under the
terms of their contract(s).
The recommended fee, policy does not address sewer use rate issues or costs. These issues can be dealt
with at the Board's leisure as potential losses over short periods of time are not significant and rates can
be changed at any time necessary... The fee recommendations likewise do not deal with the issues
related to sewer assessments for new sewer construction or expansion.. Typically, these assessment
issues are addressed. at the beginning of an expansion/construction project and ultimately resolved
through a project and assessment resolution/ordinance upon completion of construction and finalization
of expansion costs..,
If I may provide additional information or input, please advise.
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When no meter reading is available due to an inoperative, damaged or inaccessible meter, }
• consumption will be esti ated based on prior usage at the location and current use of the
facilities at that time.
:.
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INTERLOCAL WATER SFER CHARD S
The purpose of this charge is .to recover casts associated with the provision of
supplemental water supply under contractual agreement with other water purveyors; The
specific rates to be charged will be negotiated with the ..other party based upon specific
conditions, but using the cost of-service ra#ernaking approach. The commodity: charge for such
interlacal water transfers shalt not be less than seventy-five percent (?5°Jo} of the water
commodity charge applicable to all water accounts within OWq.SA's service area.
TEMPORARY HYDRANT METER CHARGE
. Service from a fue .hydrant for construction purposes •ls subject to griority use of such
hydrant for fire protection. Temporary hydrant meters are available April through November.
and can be used by a customer at a single location. A $108:00 service charge, payable in
advance, is collected for setting and removing the meter. In addition, a security deposit is
required in accordance with the following schedule:
Meter Size Security Deposit
I" $ 604 00
3" $ 600.00
Monthly billings for: temporary hydrant meters will consist of two charges: (i) a service
charge for that size meter, and (2) a commodity charge based on monthly readings of the meter.
When the hydrant meter, is returned undamaged, the security deposit will be applied to the final
bill and any credit balance will be refunded within thirty (30) days.
W~.TER AVAILABI•LTFY CHARGE
The purpose of this charge is to recover a portion'of the capital costs of providing water
system facility capacity. The availability charge •is applicable to each new connection to a water
main, regardless of who may have paid for the installation. of the water main to which the
connection is to be made. For the purpose of availability charges, customer accounts are divided
into three categories:. (I) Single Family. Residential, .Detached :Home; (2} Multifamily
Residential, Individually Metered; and (3) Nonresidential: The Nonresidential category includes
master-metered Multifamily apartment complexes plus all other commercial, The University, and
,institutional accounts. The use of these categories is justified.by distinctive patterns of water and
sewer consumption. .
t :-
Rage 4
13
WA'I'E17 AVAILABILITY CHARGES:
5/8" Meter, Single Family Residential, Detached:
<1701 square feet $ 745.00
1701-2400 square feet 959.00
2401-3100 square feet 1,623.00
3101-3800 square feet 2,161.00
>3800 square feet 3,648.00
518" Meter, Residential, irrigation-Only $1,623.00
5/$" Meter, Multifamily Residential $ 662.00
5/8" Meter, Nonresidential *$ 1,798.00
1" Meter, Nonmsidential * 4,495.00
1-1/2" Meter, Nonresidential * 8,990.00
2" Meter, Nonresidential * 14,384.00
3" Meter, Nonresidential * .28,768.00
4" Meter, Nonresidential * 44,950.04
6" Meter, Nonresidential * 89,900.00
8" Meter, Nonresidential * 143,840.00
'~ Same fec foc Nonresideatiat, Irrigation-Only accounts
WATER SERVICE AND METER INSTALLATION CHARGE
The purpose of this charge is to recover costs of extending service from the distribution
system to individual properties, and includes the installation of a service connection from the
water main to the curb or property line and the setting of a meter wiihzn the premises, subject to
satisfactory easement oar license dyeing: provided by the applicant. Where a suitable stub-out for
service has been made and is available, the "meter-only" charge will appljr. Complete water
service installation and meter-only charges are as follows:
Complete Water Service Installation, 5/8 inch $ 840.00
Complete Water Service Installation, 1 inch 920.00
Meter Only Installation, Sib inch 85.00
Meter Only Installation, l inch I45.Q0
Meter Only Installation, l-I/2 inch 370.00
Meter Only Installation, 2 inch ~ 1,050.00
Complete installations are determined on a time and materials basis for 1-1I2 inch and 2
inch meters. For 3 inch and lazger meters the applicant is responsible for providing a meter box
or vault constructed to the configuration and standazds of OWASA. All meters, regazdless of '
size, are to be purchased front OWASA.
Page 5
14
WATER MAIN TAPPING FEE
The purpose of this charge is for making a tap into the water main of OWASA. The tap '
fee must be paid in advance of OWASA performing the work, with a minimum of 4$ hours
advance.notice given to OWASA.
The applicant shall be responsible for opening the ditch, providing adequate working
clearance at the point of tap, adequately shoring the trench sidewalk, dewatering and such other
associated activities as to provide a suitable cor~ditioa for OWASA to complete the tap.
Additionally, the applicant shall be responsible for providing an appropriate size tapping sleeve
and tapping valve, and a backhoe or similar device shall be available on-site for lowering the
tapping unit into the. ditchline. All permits, bonds and paving shall be the responsibility of the
applicant.
The charge will be for time and equipment plus an allowance for overhead, but not less
than.$185:00.
Fags 6
15
For special commercial and industrial customer classifications where the proportion of
water consumed to wastewater dischazged is extremely 1azge, a metered sewer account may be '
approved. Billing far ~ this metered sewer account will be determined by dividing the normal
sewer commodity charge by .90. Metered sewer accounts must also pay the appropriate monthly
sewer•service chazge based on the sewer meter size. .
SEWER AVAILABILITY CHARGE
The purpose of this charge is to recover a portion of the capital costs of providing sewer
system facility capacity. The availability charge is applicable to each new connection to a sewer
main, regardless of who may have paid for the installation of the main to which the connection is
to be made, For the purpose of availability charges, customer accounts are divided into three
categores: (I) Single Family Residential, Detached Home; (2} Multifamily Residential,
Individually Metered; and (3} Nonresidential. The Nonresidential category includes rnaster-
metered . ~MtYltifamily ,apartment complexes plus all other commercial, The :University, ~ and
institutional accounts. The use of these categories is justified by distinctive patterns of water and
.sewer consumption.
SEWER AVAILABILITY RATES:
5/8" Meter, Single Family Residential, Detached:
X1701 square feet ~ 1,310.00
1701-2400 square feet. 1,332.Ot}
2401-3100 squaze feet. 1,62 L00
3101-3800 square feet 1,753.00'
>3800 square feet .2,001.00
5/8" Meter, Multifamily Residential $1,Igg,pO
S/8" Meter, Nonresidential $2,303.00
1" Meter, Nonresidential S,7S8.00
1-1/2" Meter, Nonresidential 11,515.00
2" Meter, Nonresidential 18,424.00
3" Meter, Nonresidential 3 f,,$4g,00
4" Meter, Nonresidential 57,575.00
6" Meter, Nonresidential 11 S,150.00
8" Meter, Nonresidential 184,240.00
SEWER TAP CHARGE
This charge is~ for malting a tap of the applicants private sewer lateral into the main sewer
line or sewer manhole of C-WASA. The tap Fee must be paid in advance of 0 WASA performing
the work, with a minimum of 4$ hours advance notice given to OWASA.
Page 4
16
The applicant shall be r~esponsible for opening the ditch, providing adequate working ' .
clearance at the point of~tap, adequately shoring the trench sidewalk, dewatering and such other •'
associated activities as to provide a suitable condition for. QWASA to connect the service lateral
of the applicant into•the facilities of OWASA. The.muumum chazge is based an a standard 4"
service tap to the sewer line. All 6° Imes and larger must be tapped into a manhole. AI! permits,
bonds and pavement repairs are the responsibility of the applicant
The charge w711 be for time and equipment plus an• allowance for overZxead, but not less
than $225.00.
HIGH STRENGTH WASTE SUR.CHAFI.GE
The purpose of this charge is to recover operation and maintenance costs from customers
whose .wastewater discharge into the system is in excess of certain parameters far normal
strength domestic wastewater as determined by OWASA. Based on loca3 sampling and analysis,
normal strength domestic wastewater has been determined to have the following pollutant
characteristics-
Normal Strength Domestac Wastewa#er
Biochemical Oxygen Demand (BOD} - 205 mg/I
Suspended Solids (SS) - 235 mg/I
Ammonia Nitrogen (IVH3 I'`n _ 30 mg~l
Phosphorous (P} - 6.5 mgll _
High Strength Waste Surcharges shall apply at the following rates to all wastes exceeding the
above concentrations:
Biochemical Oxygen Demand
Suspended Solids
Ammonia Nitrogen
Phosphorus
$O.I6 per pound for all BOD in
excess of 205 mg/1
$0.10 per pound for al[ SS in
excess of 235 mg/1
$1.61 per pound for all NI-i3 N in
excess of 30 mg/!
$x.50 per pound for all. P in
excess of 6.5 rng/t
Page IO