Title 13 Public Utilities and Services
Chapter 13.03 Sewers
Article XI. Rates
Section 13.03.1024 Wastewater Management Labor and Equipment – Basis
The director of wastewater management develops charges for labor and equipment based on the following considerati ons:
Labor costs are a combinati on of salary, commercial driver’s license (CDL) pay, longevity pay, benefits and indirect costs.
Salary.
Top step of pay scale is used.
CDL Pay.
Only classificati ons that require a CDL as a condition of employment are calculated with a ten cents per hour surcharge.
Longevity Pay.
Local 270 classificati ons receive additional pay dependent on number of years of service with the City of Spokane. An average is calculated for each classificati on that receives longevity pay.
Benefits Cost.
A charge calculated by percentage is applied to the total wages to recover costs for the City of Spokane benefits package. Benefits are determined annually – last determined by an independent consultant.
Indirect Cost.
A charge calculated by percentage is applied to the total wages to recover costs for the City of Spokane indirect cost plan. Benefits are determined annually – last determined by an independent consultant.
Equipment costs are a combinati on of depreciati on and replacement costs, and maintenance and operati on costs, which are applied by the annual average hourly usage.
Depreciati on and Replacement Costs.
Straight-line depreciati on is used for every piece of equipment.
The calculati on is historical cost divided by the average useful life in terms of years.
Depreciati on costs are applied after the equipment is fully depreciated – at this point the costs are applied to replacement costs.
Maintenance and Operati onal Costs.
Includes all costs to maintain and operate equipment.
Examples: fleet services maintenance and repairs, internal maintenance and repairs, and fuel usage.
Annual Average Hourly Usage.
Majority of equipment hourly calculati ons are based on annual average labor hours.
Annual labor hours are based on two thousand eighty-eight hours per year less allocati ons for vacati on leave, sick leave, floati ng holidays, daily crew meeting, breaks and equipment downtime.
Only construction crew heavy equipment is based on annual hour meter readings.
Date Passed: Monday, October 15, 2007
Effective Date: Wednesday, November 28, 2007
Recodificati on ORD C34122 Section 1