Spokane Municipal Code

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 considerations:

1. Labor costs are a combination of salary, commercial driver’s license (CDL) pay, longevity pay, benefits and indirect costs.

1. 1. Salary.

Top step of pay scale is used.

1. 2. CDL Pay.

Only classifications that require a CDL as a condition of employment are calculated with a ten cents per hour surcharge.

1. 3. Longevity Pay.

Local 270 classifications receive additional pay dependent on number of years of service with the City of Spokane. An average is calculated for each classification that receives longevity pay.

1. 4. 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.

1. 5. 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.

2. Equipment costs are a combination of depreciation and replacement costs, and maintenance and operation costs, which are applied by the annual average hourly usage.

1. 1. Depreciation and Replacement Costs.

Straight-line depreciation is used for every piece of equipment.

1. 1. 1. The calculation is historical cost divided by the average useful life in terms of years.

1. 1. 2. Depreciation costs are applied after the equipment is fully depreciated – at this point the costs are applied to replacement costs.

1. 2. Maintenance and Operational Costs.

Includes all costs to maintain and operate equipment.

1. 1. 1. Examples: fleet services maintenance and repairs, internal maintenance and repairs, and fuel usage.

1. 3. Annual Average Hourly Usage.

Majority of equipment hourly calculations are based on annual average labor hours.

1. 1. 1. Annual labor hours are based on two thousand eighty-eight hours per year less allocations for vacation leave, sick leave, floating holidays, daily crew meeting, breaks and equipment downtime.

1. 4. Only construction crew heavy equipment is based on annual hour meter readings.

Date Passed: Monday, October 15, 2007

Effective Date: Wednesday, November 28, 2007

Recodification ORD C34122 Section 1