HomeMy WebLinkAbout2012 04_OPWA_Utility Billing Rate Structure_2012.08.21OWASSO PUBLIC WORKS AUTHORITY
RESOLUTION NO. 2012-04
A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY ESTABLISHING WATER
SERVICE RATES WITHIN AND WITHOUT THE CORPORATE LIMITS OF THE CITY OF
OWASSO, SANITARY SEWER SERVICE RATES AND REFUSE AND YARDWASTE
COLLECTION AND DISPOSAL RATES AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, The Owasso Public Works Authority desires to establish the following rates for the
provision of water service effective October 1, 2012:
Minimum Meter Char a for First 1,000 gallons
Meter Size
Users Inside the
Corporate Limits
Users Outside the
Corporate Limits
3/4"
$11.10
13.32
V,
$12.00
$14.40
1 '/2 "
14.00
16.80
2"
15.00
18.00
3"
$30.00
$36.00
4"
35.00
42.00
6"
$50.00
$60.00
Usage Tier Rates
Volume Rate er 1,000 gallons
Users Inside the
Corp orate Limits
Users Outside the
Corporate Limits
First 1,000 gallons
Minimum Meter Charge
Minimum Meter Charge
2,000 gallons
$4.62
$5.54
3,000 - 5,000 gallons
$4.67
$5.60
6,000 - 10,000 gallons
$4.72
$5.66
11,000 - 20,000 gallons
$4.76
$5.71
21,000 gallons or more
$4.81
$5.77
WHEREAS, The Owasso Public Works Authority desires to establish the following rates for the
provision of sanitary sewer service effective October 1, 2012:
Base Rate - $6.97 Rate for each 1,000 gallons - $2.95
WHEREAS, The Owasso Public Works Authority desires to establish the following rates for the
provision of refuse service effective October 1, 2012:
Tyr)e of Cart
Monthly Rate per Cart
Residential
$13.95
Multi-Family
$13.95
Commercial
$15.95
Yardwaste
$11.95
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC
WORKS AUTHORITY, THAT:
Section One: From and after the effective date of this Resolution (as hereinafter set forth),
the charge by the Authority for water, sewer and refuse services shall be
adjusted in accordance with the above-referenced recital paragraphs and
as specifically codified pursuant to Ordinance No. 1011 of the City of
Owasso, Oklahoma ("City").
Section Two: The water, sewer and refuse rates established pursuant to the Resolution shall
become effective with the first utility billing cycle in October 2012.
PASSED, ADOPTED AND APPROVED THIS 21st DAY OF AUGUST, 2012.
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ATTEST:
Sherry BisWp, Authority Spretary
APPROVED AS TO FORM:
"Z..V
lie Lombardi, City Attorney
THE OWASSO PUBLIC WORKS AUTHORITY
o ebrake, Chairman
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OCity w, out Limits.
TO: Honorable Chair and Trustees
Owasso Public Works Authority
FROM: Sherry Bishop
Assistant City Manager, Administrative Services
SUBJECT: Water, Wastewater, and Refuse Rate Changes for FY 2013
OPWA Resolution No. 2012-04
DATE: August 17, 2012
BACKGROUND:
The City of Tulsa gave notice that the rate they charge the OPWA for water will increase by 7%
or $0.18 per thousand gallons effective October 1, 2012. The OPWA budget for FY 2013 includes
a revenue increase of $425,000 based on rate increases for water, wastewater, and refuse
services to become effective October 1, 2012.
Current water rates for all city customers are $11.01 for the minimum monthly meter charge
(including the first thousand gallons) and $4.44 for each additional thousand gallons of usage.
Council/OPWA Trustee discussions indicated an interest in alternative water rate structures that
could reduce the impact of rate increases on low-income and senior customers whose water
usage is very low. Based on those discussions over the past few months, staff recommends the
following:
• Water Rates
o Change to a tiered usage rate structure with rates from $4.62 to $4.81 per
thousand gallons, which reflects increases from $0.18 to $0.37 per thousand
gallons;
o Change the minimum monthly meter charge to be based on the size of the water
meter with a range from $11.10 to $50.00 per month, which reflects increases from
$0.09 to $38.99 per month;
o Estimated revenue increase of $150,000 for FY 2013;
• Wastewater Rates
o Usage rate of $2.95 per 1000 gallons, an increase of $0.40;
o No change in the minimum monthly charge of $6.97;
o Residential usage is based on average winter water usage;
o Estimated revenue increase of $250,000 for FY 2013;
• Refuse Rates
o Monthly rate per cart of $13.95 per month, an increase of $0.25;
o Estimated revenue increase of $25,000 for FY 2013.
Water Rates
Currently all customers within the city (single-family residential, multi-family residential,
commercial, and industrial) are billed at the same base rate and usage rate. The rates for all
customers outside the city are 20% more than within the city. The recommended changes would
provide various "base" rates depending on water meter size and a tier of usage rates
depending on volume of water used.
A tiered usage rate structure establishes usage ranges with increasing rates for higher volume
water usage. The tiered rate provides different usage rates for low, medium, and high usage
customers with as many tiers as desired. The software presently in use for utility billing is designed
to accommodate a variety of rate structures including usage tiers.
Currently, all OPWA customers pay the some base rate of $11.01, which includes the first 1000
gallons of water usage. Under the new rate structure, the base or meter charge for each
customer would be associated with the size of the water meter. OPWA customer water meters
range in size from 3/4" to 6". The cost to replace those meters ranges from $260 to $4,955.
Amortized over the 10-year life of a water meter, the cost ranges from $2.17 to $41.29 per month.
An increase in the monthly base rate for larger water meters seems more equitable to most
customers. This- cost-of service data is limited to the replacement of water meters only and is not
intended to imply that any other cost-of-service analysis has been performed.
Below are the proposed changes for the monthly minimum charge for each meter size with an
estimated increase in monthly revenue. As previously noted in the proposed tier rates, the rate
increase for the residential size (3/4") meter is $0.09, less than the rate increase for the cost of
water. The large meter rate changes would bring those rates within a range more appropriate
with their cost of service. Rates for water customers outside the corporate limits of Owasso would
be 20% more than these listed below.
Meter Size
Estimated
Quantity
Current Base
Meter Charge
Proposed
Increase
Proposed
Base Meter
Charge
Estimated Monthly
Revenue Increase
3/4"
8,630
$11.01
$0.09
$11.10
$776.70
1 "
158
$11.01
$0.99
$12.00
$156.42
1 '/2 "
96
$11.01
$2.99
$14.00
$287.04
2"
193
$11.01
$3.99
$15.00
$770.07
3"
23
$11.01
$18.99
$30.00
$436.77
4"
8
$11.01
$23.99
$35.00
$191.92
6"
2
$11.01
$38.99
$50.00
$77.98
Water Usage Tiers
Winter and summer water usage was reviewed for typical usage patterns. The usage rate tiers
below are recommended based on these usage patterns with an effort to balance the interests
of all customers and minimize the impact of rate increases to the low usage customers.
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The original water rate increase proposal was for a $0.28 per thousand gallon increase for all
water usage. This tiered rate proposal would increase rates by $0.28 only on usage of more than
6 thousand gallons per month. The base rate for usage of 1000 gallons or less would increase by
only $0.09, passing on only half of the Tulsa rate increase. Rates for water customers outside the
corporate limits of Owasso would be 20% more than these listed below.
The revenue increase for this tiered rate structure would be approximately $1,700 less per month
than a $0.28 increase for all usage based on winter consumption patterns and approximately
$1,100 per month more based on high summer consumption patterns.
Proposed usage tiers and rate changes:
Usage Rate Tiers
Current Usage Rate
Proposed Increase
Proposed Usage Rate
Base (3/" Meter)
$11.01 Base
$0.09
$11.10 Base
2,000
$4.44
$0.18
$4.62
3,000 - 5,000
$4.44
$0.23
$4.67
6,000 - 10,000
$4.44
$0.28
$4.72
11,000 - 20,000
$4.44
$0.32
$4.76
21,000 or more
$4.44
$0.37
$4.81
WASTEWATER RATES
The method of calculating usage for sewer customers in Owasso who are served by the rural
water districts changed effective July of 2011. That change resulted in an unexpected revenue
reduction of $240,000 for fiscal year 2012. Rate increases were proposed in the FY 2013 budget
to offset that revenue loss.
The current wastewater usage rate is $2.55 per thousand with a base minimum rate of $6.97 per
month. Rates are the same for all categories of customers. For residential customers, the usage
billing is based on the average winter water usage. The proposed $2.95 usage rate per
thousand is a $0.40 increase. No change is proposed for the base minimum rate of $6.97 per
month.
REFUSE RATES
Polycart refuse service rates are proposed to increase by $0.25 per cart per month. Current rates
were approved in April 2007.
Type of Service
New Rate
Old Rate
7o of Change
Residential
$13.95
$13.70
1.8%
Multi-family
$13.95
$13.70
1.8%
Commercial
$15.95
$15.70
1.6%
Yardwaste
$11.95
$11.70
2.1%
Ordinances and Resolutions
Water, wastewater, and refuse rates are established by City Ordinance and OPWA Resolution.
Ordinance No. 1011 establishes rates for water, sewer, and refuse service effective October 1,
2012.
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OPWA Resolution No. 2012-04 establishes rates for water, sewer, and refuse service effective
October 1, 2012.
RECOMMENDATION
Staff recommends OPWA Trustee approval of Resolution No. 2012-04 establishing rates for water,
sewer, and refuse service.
ATTACHMENTS
OPWA Resolution No. 2012-04
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