HomeMy WebLinkAbout1011_Water Sanitary Sewer and Refuse Ratesc+` TU Tulsa County Clerk - EARLENE'NILSON
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TO: The Honorable Mayor and City Council
City of Owasso
FROM: Sherry Bishop
Assistant City Manager, Administrative Services
SUBJECT: Water, Wastewater, and Refuse Rate Changes for FY 2013
Ordinance No. 101 1
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.
1
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 same 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.
2
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 (3/4" 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
% 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.
3
OPWA Resolution No. 2012-04 establishes rates for water, sewer, and refuse service effective
October 1, 2012.
RECOMMENDATION
Staff recommends City Council approval of Ordinance No. 1011 establishing rates for water,
sewer, and refuse service.
ATTACHMENTS
Ordinance No. 1011
Water Rate Memorandum dated August 8, 2012
OPWA Proposed Rate Comparison
4
ORDINANCE NO. 1011
CITY OF OWASSO, OKLAHOMA
AN ORDINANCE ADOPTING AND APPROVING THE WATER, SANITARY SEWER AND REFUSE
RATES AS SET BY THE OWASSO PUBLIC WORKS AUTHORITY PURSUANT TO RESOLUTION NO.
2012-04 OF SAID BODY; AND AMENDING PART 17 UTILITIES, CHAPTER 1, WATER, SEWER, AND
SANITATION SYSTEMS, SECTION 17-109 WATER RATES, SECTION 17-110 SEWER RATES, AND
CHAPTER 2, GARBAGE AND REFUSE COLLECTION, SECTION 17-203 SERVICE FEES; AND
ESTABLISHING AN EFFECTIVE DATE AND DIRECTING CODIFICATION.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
SECTION ONE:
The water rates hereinafter set forth as established by the Owasso Public Works Authority, An
Oklahoma Public Trust having the City of Owasso, Oklahoma as its beneficiary, are hereby
adopted, approved and directed to be implemented in accordance with OPWA Resolution No.
2012-04 of the Owasso Public Works Authority dated August 21, 2012.
SECTION TWO:
The provisions of the City of Owasso Code of Ordinances, referenced as Part 17, Utilities, Chapter
1, Water, Sewer and Sanitation Systems, Section 17-109 Water Rates shall be amended as
follows:
Section 17-109 WATER RATES
A. There are hereby established the following uniform rates for the Minimum Meter Charge
for each Meter Size and the Tier Rates for the volume of water delivered during each
calendar month at each connection to the water system serving one household or
business located within the corporate limits of the City, as shown by the water meter at
such connection; provided that, regardless of amount of water metered, the monthly
charge for water for each connection shall not be less than the "minimum meter
charge" set forth:
WATER RATES MONTHLY (effective 10/01 /2012)
Meter Size
Minimum Meter Charge for First 1,000 gallons
3/4"
$11.10
V,
12.00
1'/2"
14.00
2"
15.00
3"
30.00
41'
35.00
6"
$50.00
Usage Tier Rates
Volume Rate per 1,000 gallons
First 1,000 gallons
Minimum Meter Charge
2,000 gallons
$4.62
3,000 - 5,000 gallons
$4.67
6,000 - 10,000 gallons
$4.72
11,000 - 20,000 gallons
$4.76
21,000 gallons or more
$4.81
There are hereby established the following uniform rates for the Minimum Meter Charge
for each Meter Size and the Tier Rates for the volume of water delivered during each
calendar month at each connection to the water system serving one household or
business located outside the corporate limits of the City, as shown by the water meter at
such connection; provided that, regardless of amount of water metered, the monthly
charge for water for each connection shall not be less than the "minimum meter
charge" set forth:
WATER RATES MONTHLY (effective 10/01 /2012)
Meter Size
Minimum Meter Charge for First 1,000 gallons
3/4"
13.32
Y,
14.40
1'/2"
16.80
2"
18.00
3"
36.00
4"
42.00
6"
$60.00
Usage Tier Rates
Volume Rate per 1,000 gallons
First 1,000 gallons
Minimum Meter Charge
2,000 gallons
$5.54
3,000 - 5,000 gallons
$5.60
6,000 - 10,000 gallons
$5.66
11,000 - 20,000 gallons
$5.71
21,000 gallons or more
$5.77
SECTION THREE: CODIFICATION
The City of Owasso Code of Ordinances is hereby amended by Part 17, Utilities, Chapter 1
Water, Sewer and Sanitation Systems, Section 17-109 Water Rates.
SECTION FOUR:
The sanitary sewer rates hereinafter set forth as established by the Owasso Public Works
Authority, An Oklahoma Public Trust having the City of Owasso, Oklahoma as its beneficiary, are
hereby adopted, approved and directed to be implemented in accordance with OPWA
Resolution No. 2012-04 of the Owasso Public Works Authority dated August 21, 2012.
SECTION FIVE: The provisions of the City of Owasso Code of Ordinances, referenced as Part 17,
Utilities, Chapter 1 Water, Sewer and Sanitation Systems, Section 17-110 Sewer Rates shall be
amended as follows:
Section 17-110 SEWER RATES
A. All users of the municipally owned wastewater treatment system shall be charged a
minimum of $6.97 per month, plus a charge of $2.95 per 1,000 gallons of wastewater flow
effective 10/01/2012. For all single-family users, wastewater flow shall be determined
indirectly by measuring the quantity of water received by the user during three (3) winter
months as described below. For users other than single-family residential, wastewater
flow may be determined by measuring the quantity of water received each month or by
the indirect method. In the case of users not on a metered basis, the utility
superintendent shall establish an estimated water consumption based on a comparison
of the non-metered use with a metered user of a similar class. Example: A non-metered
family of four compared to a typical family of four with a water meter to establish water
consumption.
SECTION SIX: CODIFICATION
The City of Owasso Code of Ordinances is hereby amended by Part 17, Utilities, Chapter 1
Water, Sewer and Sanitation Systems, Section 17-1 10 Sewer Rates
SECTION SEVEN:
The refuse rates hereinafter set forth as established by the Owasso Public Works Authority, An
Oklahoma Public Trust having the City of Owasso, Oklahoma as its beneficiary, are hereby
adopted, approved and directed to be implemented in accordance with OPWA Resolution No.
2012-04 of the Owasso Public Works Authority dated August 21, 2012
SECTION EIGHT:
The provisions of the City of Owasso Code of Ordinances, referenced as Part 17, Utilities, Chapter
2 Garbage and Refuse Collection, Section 17-203 Service Fees, shall be amended as follows:
Section 17-203 REFUSE SERVICE FEES
Refuse service shall consist of once weekly removal of garbage and household refuse
which has been placed in containers in the manner hereinafter specified. The service is
deemed to be necessary to pay for the removal of such garbage and household refuse,
to protect the health of the occupant, owner, tenant, or lessee and others in the near
vicinity by such removal. The fees for such service are as follows:
Type of Cart
Residential
Multi-Family
Commercial
Yardwaste
SECTION NINE: CODIFICATION
Monthly Rate per Cart
$13.95
$13.95
$15.95
$11.95
The City of Owasso Code of Ordinances is hereby amended by Part 17, Utilities, Chapter 2
Garbage and Refuse Collection, Section 17-203 Refuse Service Rates.
SECTION TEN: REPEALER
All ordinances or parts of ordinances, in conflict with this ordinance are repealed to the extent of
the conflict only.
SECTION ELEVEN: SEVERABILITY
If any part or parts of this ordinance are held invalid or ineffective, the remaining portion shall
not be affected but remain in full force and effect.
SECTION TWELVE: DECLARING AN EFFECTIVE DATE
The provisions of this ordinance shall become effective thirty (30) days from the date of final
passage as provided by state law.
PASSED by the City Council of the City of Owasso on the 21st day of August, 2012.
n
OFFICIAL
SEAL
Attest:
~kI,AHUb'1P~
Sherry Bishop, City Clerk
Approved As To Form:
Dou Bonebrake, Mayor
Julie Trout Lombardi, City Attorney
PUBLISHER'S AFFIDAVIT
ORD NO. 1011
PUBLICATION DATE(S)
08/30/12
CASE NUMBER: ORD N0. 1011
AD NO: 00149588
LEGAL NOTICE
STATE OF OKLAHOMA
COUNTY OF Tulsa
1, of lawful age, being duly sworn, am a legal
Owasso Reporter of Owasso, Oklahoma, a w
of general circulation in Tulsa, Oklahoma, a i
fied to publish legal notices, advertisements an
provided in Section 106 of Title 25, Oklahor.
and 1982 as amended, and thereafter, and c,
other requirements of the laws of Oklahoma
legal publications. That said notice, a true c
attached hereto was published in the regular
newspaper during the period and time of publi
a supplement, on the ABOVE LISTED DATE
e nt e Sig]
Subscribed to and sworn to me this 31st day e
Notary Public
NA AY CAROL M
My commission number: 06011684
My commission expires: December 8, 2014
Customer #: 00000779
Customer: CITY OF OWASSO
Publisher's Fee: 282.80
NANCY CAROL MOORE
NOTARY PUBLIC
STATE OF OKLAHOMA
COMMISSION NO. 06011684
EXPIRES 12 -8 -2014
149588
Published in the Owasso Reporter, Owasso, Tulsa County,
Oklahoma, August 30, 2012.
ORDINANCE NO. 1011
CITY OF OWASSO, OKLAHOMA
AN ORDINANCE ADOPTING AND APPROVING THE WATER,
SANITARY SEWER AND REFUSE RATES AS SET BY THE
OWASSO PUBLIC WORKS AUTHORITY PURSUANT TO RESO-
LUTION No. 2012-04 OF SAID BODY; AND AMENDING PART 17
UTILITIES, CHAPTER 1, WATER, SEWER, AND SANITATION
SYSTEMS, SECTION 17 -109 WATER RATES, SECTION 17 -110
SEWER RATES, AND CHAPTER 2, GARBAGE AND REFUSE
COLLECTION, SECTION 17 -203 SERVICE FEES; AND ESTAB-
LISHING AN EFFECTIVE DATE AND DIRECTING CODIFICA-
TION.
BE IT ORDAINED BYTHE COUNCIL OFTHE CITY OF OWASSO,
OKLAHOMA,
SECTION ONE:
The water rates hereinafter set forth as established by the Owasso
Public Works Authority, An Oklahoma Public Trust having the City of
Owasso, Oklahoma as its beneficiary, are hereby adopted,
pproved and directed to be implemented in accordance with
OPWA Resolution No. 2012 -04 of the Owasso Public Works
Authority dated August 21, 2012.
SECTION TWO:
The provisions of the City of Owasso Code of Ordinances, refer-
enced as Part 17, Utilities, Chapter 1, Water, Sewer and Sanitation
Systems, Section 17 -109 Water Rates shall be amended as follows:
Section 17 -109 WATER RATES
A. There are hereby established the following uniform rates for
the Minimum Meter Charge for each Meter Size and the
Tier Rates for the volume of water delivered during each
calendar month at each connection to the water system
serving one household or business located within the cor-
porate limits of the City, as shown by the water meter at
such connection; provided that, regardless of amount of
water metered, the monthly charge for water for each con-
nection shall not be less than the "minimum meter charge"
set forth:
WATER RATES MONTHLY (effective 10/01/2012)
Meter Size Minimum Meter Charge for First 1,000 gallons
3/4" $11.10
1 $12.00
1 ^ $14.00
2' $15.00
3' $30.00
4' $35.00
6" $50.00
Usage Tier Rates Volume Rate per 1,000 gallons
First 1,000 gallons Minimum Meter Charge
2,000 gallons $4.62
3,000 - 5,000 gallons $4.67
6,000 - 10,000 gallons $4.72
11,000 - 20,000 gallons $4.76
21,000 gallons or more $4.81
B. There are hereby established the following uniform rates for
the Minimum Meter Charge for each Meter Size and the
Tier Rates-for the volume of water delivered during each
calendar month at each connection to the water system
serving one household or business located outside the cor-
porate limits of the City, as shown by the water meter at
such connection; provided that, regardless of amount of
water metered, the monthly charge for water for each con-
nection shall not be less than the "minimum meter charge"
set forth:
WATER RATES MONTHLY (effective 10/01/2012)
Meter Size Minimum Meter Charge for First 1,000 gallons
3/4" $13.32
1 ^ $14.40
1 $16.60
2'
3^ $36.00
4' ; .$42.00
6" $60.00 _
Usage Tier Rates Volume Rate per 1,000 gallons
First 1,000 gallons Minimum Meter Charge
2,000 gallons - $5.54
3,000 - 5,000 gallons $5.60
6,000 - 10,000 gallons $5.66
11,000 - 20,000 gallons $5.71
21,000 gallons or more $5.77
SECTION THREE: CODIFICATION
The City of Owasso Code of Ordinances is hereby amended by Part
17, Utilities, Chapter 1 Water, Sewer and Sanitation Systems,
Section 17 -109 Water Rates.
SECTION FOUR:
R� ®
�.
The provisions of the City of Owasso Code of Ordinances, refer-
enced as Part 17, Utilities, Chapter 2 Garbage and Refuse
Collection, Section 17 -203 Service Fees, shall be amended as fol-
lows:
The sanitary sewer rates hereinafter set forth as established by the
Owasso Public Works Authority, An Oklahoma Public Trust having
the City of Owasso, Oklahoma as its beneficiary, are hereby adopt-
ed, approved and directed to be implemented in accordance with
OPWA Resolution No. 2012 -04 of the Owasso Public Works
Authority dated August 21, 2012.
SECTION FIVE: The provisions of the City of Owasso Code of
Ordinances, referenced as Part 17, Utilities, Chapter 1 Water,
Sewer and Sanitation Systems, Section 17 -110 Sewer Rates shall
be amended as follows:
Section 17 -110 SEWER RATES
A. All users of the municipally owned wastewater treatment
system shall be charged a minimum of $6.97 per month,
plus a charge of $2.95 per 1,000 gallons of wastewaterflow,
effective 10/01/2012. For all single - family users, waste-
water flow shall be determined indirectly by measuring the
quantity of water received by the user during three (3) win-
ter months as described below. For users other than sin-
gle- family residential, wastewater flow may be determined
by measuring the quantity of water received each month or
by the indirect method; In the case of users not on a
metered basis, the utility superintendent shall establish an
estimated water consumption based on a comparison of
the non - metered use with a metered user of a similar class.
Example: A non - metered family of four compared to a typ-
ical family of four with a water meter to establish water con-
sumption.
SECTION SIX: CODIFICATION
The City of Owasso Code of Ordinances is hereby amended by Part
17, Utilities, Chapter 1 Water, Sewer and Sanitation Systems,
Section 17 -110 Sewer Rates
SECTION SEVEN:
The refuse rates hereinafter set forth as established by the Owasso
Refuse service shall consist of once weekly removal of garbage
and household refuse which has been placed in containers in
the manner hereinafter specified. The service is deemed to be
necessary to pay for the removal of such garbage and house-
hold refuse, to protect the health of the occupant, owner, tenant,
or lessee and others in the near vicinity by such removal. The
fees for such service are as follows:
Tvoe of Cart Monthly Rate per Cart
Residential $13.95
Multi - Family $13.95
Commercial $15.95
Yardwaste $11.95
SECTION NINE: CODIFICATION
The City of Owasso Code of Ordinances is hereby amended by Part
17, Utilities, Chapter 2 Garbage and Refuse Collection, Section 17-
203 Refuse Service Rates.
SECTION TEN: REPEALER
All ordinances or parts of ordinances, in conflict with this ordinance
are repealed to the extent of the conflict only.
SECTION ELEVEN: SEVERABILITY
If any part or parts of this ordinance are held invalid or ineffective,
the remaining portion shall not be affected but remain in full force
and effect.
SECTIONTWELVE: DECLARING AN EFFECTIVE DATE
The provisions of this ordinance shall become effective thirty (30)
days from the date of final passage as provided by state law.
PASSED AND APPROVED this 21st day of August, 2012.
s/ Doug Bonebrake, Mayor
/s /Sherry Bishop, City Clerk
/s/ Julie Lombardi, City Attorney
r^