HomeMy Public PortalAbout10561 O R D I N A N C E NO. 10561 AN ORDINANCE, providing for the establishment of a WASTEWATER
BACKUP INSURANCE AND REIMBURSEMENT FUND; providing for the transfer of
a portion of the revenue derived from the collection of the Wastewater User Charge to
such fund; providing for the use of monies in the WASTEWATER BACKUP
INSURANCE AND REIMBURSEMENT FUND to meet the cost of insurance and self
insurance for damages caused by Wastewater backups through the public sewers into
Property caused by sewer blockages, system failures and overcharged sewer systems
and establishing the policy of the Board with regard thereto.
WHEREAS, the Board is ever mindful of the property damage that can be
caused when Wastewater backs up through the public sewers into Property; and
WHEREAS, the Board is desirous of minimizing the financial burden of
those persons who sustain property damage as a result of Wastewater backups through
the public sewers into Property; and
WHEREAS, the Board has implemented an insurance program to
reimburse persons for damages sustained as a result of Wastewater backing up
through the public sewers into Property; and
WHEREAS, the Board is desirous of establishing a policy for funding the
cost of insurance and self insurance to reimburse persons for damages caused by
Wastewater backing up from the Wastewater System into Property from the
Wastewater User Charge and of creating a fund for such purposes.
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NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF
TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT:
Section One. Definitions of Words and Terms. In addition to words and
terms defined elsewhere in this Ordinance, the following words and terms as used in
this Ordinance shall have the following meanings, unless some other meaning is
plainly intended:
"Board" means the Board of Trustees of the District.
"District" means The Metropolitan St. Louis Sewer District.
"Property" means an improved lot or parcel of real property, whether
public or private, which is Served by the System.
"Served" means Property connected, either directly or indirectly, to a
sanitary or drainage facility owned or operated by the District, or to Property which
otherwise discharges Wastewater directly or indirectly into such facilities, or if the
discharge of such substances therefrom ultimately enters said facilities.
"Wastewater" means the water-borne wastes emanating from Property
together with such groundwater, surface water, or Stormwater as cannot be avoided.
"Wastewater System" means the entire sewer and drainage systems and
facilities owned and operated by the District for the collection, storage, handling, and
treatment of Wastewater and combined sewers for the collection, storage, treatment
and handling of Wastewater and Stormwater to serve the needs of the District and its
inhabitants and others, including all appurtenances and facilities connected therewith
or relating thereto, together with all extensions, improvements, additions and
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enlargements thereto hereafter made or acquired by the District.
"Wastewater User Charge" means the charge imposed by Ordinance No.
10177, amendments thereto and subsequent enactments thereof.
Section Two. Wastewater Backup Insurance and Reimbursement Fund.
That there is hereby created a fund to be known as the Wastewater Backup Insurance
and Reimbursement Fund. The monies in the Wastewater Backup Insurance and
Reimbursement Fund shall be maintained by the Secretary-Treasurer of the District,
shall be invested in accordance with applicable provisions of the District's Plan relating
to the investment of other District funds, and the net earnings on such investments
shall be deposited in the Wastewater Backup Insurance and Reimbursement Fund.
Funds in the Wastewater Backup Insurance and Reimbursement Fund shall be
expended only to meet the costs of insurance, self insurance, adjusting expenses and
damages to be paid to persons sustaining damage as a result of a Wastewater backup
from the Wastewater System caused by sewer blockages, system failure and
overcharged sewer system. The dollar limit of damages, if any, shall be as provided for
by the terms of the applicable insurance policy. Should a balance remain in the
Wastewater Backup Insurance and Reimbursement Fund at the end of any fiscal year,
then said balance shall be carried forward in the Wastewater Backup Insurance and
Reimbursement Fund and used for the purposes of such fund in the following year.
Section Three. Transfers to Wastewater Backup Insurance and
Reimbursement Fund. The Board shall transfer annually a portion of the funds
collected from the Wastewater User Charge to the Wastewater Backup Insurance and
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Reimbursement Fund. The amount of funds to be transferred shall be determined by
the Board as a part of its annual budget.
Section Four. Wastewater Backup Policy. The Board conducts a review of
its schedule of Wastewater User Charges, not less often than every two years, to assure
that such schedule of Wastewater User Charges maintains the proportionate
distribution of cost of service among users and user classes and generates sufficient
revenue to pay the total costs of operation and maintenance (including replacement) of
the Wastewater System. The Board, as a part of such review, shall include in the
Wastewater User Charge funds for the costs of insurance and self insurance for
damages caused by Wastewater backups from the Wastewater System into Property
caused by sewer blockages, system failure and overcharged sewer system, as is
consistent with good accounting and rate-making principles, and as is necessary,
proper and advisable to assure that the Wastewater System will remain operable for
current and future customers of the District.
The foregoing Ordinance was adopted June 10, 1999 by the following vote –
Ayes – C.L. Barnhart, G.J. Sheffield, C.D. Seward, P.P. Finn, J.W. Siscel, and M.C.
Williams.
Nays – None.
Secretary-Treasurer