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Home My WebLink About2000 03_OPWA_Sanitary Sewer Rates for New Customers_2000.05.02 OW ASSO PUBLIC WORKS AUTHORITY OW ASSO, OKLAHOMA RESOLUTION NUMBER 2000-03 A RESOLUTION OF THE TRUSTEES OF THE OW ASSO PUBLIC WORKS AUTHORITY ESTABLISHING SANITARY SEWER RATES FOR SANITARY SEWER CUSTOMERS BE IT RESOLVED BY THE TRUSTEES OF THE OW ASSO PUBLIC WORKS AUTHORITY, THAT, the following rates be and same hereby are established as sanitary sewer rates for customers utilizing the sanitary sewer service of the Owasso Public Works Authority, Owasso, Oklahoma, to-wit: Effective July l, 2000, sanitary sewer rates will be increased across the board by an amount of $0.36/1000 gallons. Effective July I of each succeeding year for a period of four (4) successive years beginning July l, 200 l, the sanitary sewer rates shall be increased by an amount of $O.l8/1 000 gallons per year. this 2nd day of May, 2000 APPROVED OW ASSO PUBLIC WORKS AUTHORITY Mard~ Bo /')' /' / ArD AS TO FORM: /,4 ;# 3709-020.res sewer rates MEMORANDUM HONORABLE CHAIR AND TRUSTEES OW ASSO PUBLIC WORKS AUTHORITY TO SHERRY BISHOP FINANCE DIRECTOR FROM: RESOLUTION #2000-03 SANITARY SEWER RATES SUBJECT 28. 2000 April DATE service replacing the old sewer rates based on the actual cost treatment facility went in to OPW A Trustees adopted sanitary rates were increased after evaluating 1990 BACKGROUND: In 1988, the newly constructed wastewater lagoon system. For the first time, the water consumption. Two years later. in of operating the treatment facility Board for water n ""re increased with In million was sewer system rehabilitation revenue dedicated An interim construction loan with the OWRB IIA improvements to the wastewater treatment three years at an additional cost of $2.5 milliOl. million $4.6 1992 are expected to cost $1.75 projects of almost $7 million from Jay Updike of Garver outlines the and annual rate increases recommended to finance ~ (Ta in the lrs Engineers of uSU.o"" four sewer rates by $.36 per 1000 gallons 1000 gallons for each of the next The attached memo dated March 31, 2000 proposed projects, possible funding sources these projects. The proposal would increase first year followed by annual increases of $ 18 per Currently, the average customer (using an average of 5000 gallons of water per month during the winter) is charged $9.23 per month for sanitary sewer service. The proposed rate change would increase that amount by $1. 80 for a monthly charge of $11. 03. Annual increases of $0.90 would the next four years. In July of 2005, the monthly charge for this average customer A table of annual rates with a comparison to other cities is attached for your occur during would be $14.63 information increasing sanitary sewer rates 18/1000 gallons effective by $0 RECOMMENDATION: Staff recommends Trustee approval of OPW A Resolution #2000-03 by $0.36/1000 gallons effective July 1, 2000 and increasing rates July 1 of each year for four succeeding years .. Customers ATTACHMENTS: OPW A Resolution #2000-03 Jay Updike memo dated March 31,2000 Table -- Rate Increase Impact on Residential RECEIVED APR 03 zOOO Ave Garver. Inc. [:llrJln(](; ')~ 11 S 12, Sullc 301 TubJ, OK 7~ fj206 ~( 91 (j.250.5922 f'AX 918.2tiO.6529 GARVER I ENGINEERS www.garverinc.com 2000 March 31, City Manager Larry Mitchell Memo to Funding Improvement Jay Updike Owasso Wastewater From: Re General In accordance with your request we have prepared a schedule and preliminary funding plan for improvements to the Owasso Wastewater Treatment Plant, the Ator Relief Line and rehabilitation of portions of the wastewater collection system as required by Consent Order No. 98-288 from the Oklahoma Department of Environmental Quality. A. their approximate start date and total cost The projects included in the funding plan, follows B are as Cost $2,620,000.00 Total Start Date 2000 1 May Description Sludge stabilization & dewatering, head works, UV disinfection and misc., plant improvements Proiect Wastewater PlantW Improvements- Phase ITA 350,000.00 2000 Oct. 1 Sewer system evaluation survey followed by system rehabilitation 18" Relief Line to eliminate Ator lift station North Collection System Rehabilitation 750,000.00 650,000.00 2,500,000.00 Oxidation ditch conversion 3rd final clarifier and blower building South Area (Old Town) Collection System Rehabilitation Wastewater Plant - Phase Ator Relief Line 2001 2003 2003 1 1, 1, Dec. July July Sewer system evaluation survey followed by system rehabilitation Improvements lIB Main Includes OK Tulsa 1,8 TopeJk, ~1S SOl Mi AR I~( l. AI VI Station Expansion AI )VI .lV' Lift N IWl 131 C. Funding Sources The recommended funding sources, loan terms and approximate interest rates are as follows Loan Interest Annual Proiect Amount Source Term Rate Payment Wastewater Plant - Phase llA $2,620,000.00 SRF Loan IS Yrs. 3.5% $220,000.00 N. Collection System 350,000.00 OWRB Loan 15 Yrs. 5.0% 32,500.00 Rehabilitation - Ator Relief Line 750,000.00 OWRB Loan 15 Yrs. 5.0% 69,500.00 S. Collection System 650,000.00 OWRB Loan 15 Yrs. 5.0% 59,500.00 Rehabilitation Wastewater Plant - Phase lIB 2,500,000.00 SRF Loan 15 Yrs. 3.5% 209,000.00 increases in the sewer volume charge per Financing: The projects could be financed through incremental 1,000 gallons over the next 5 years D. To finance the projects an initial rate increase of $0.36/1000 gallons followed by a rate increase of $0.18/1 000 gallons for 4 more years should be considered. A comparison of the additional revenue generated by this rate increase with the debt service for the projects is presented in the following table. Additional Revenue vs. Debt Service Wastewater Project Financing Debt Service(3 Loan Amounts Add'I Revenue from Rate Increase over Existinl!: Rat, 1.18(1 BiHabIe FIowl Month (in 1000gaI) (2) Ratel1000 Ganons Fiscal ~ Difference o o o o 47,500 $1.18 2000 $ 73,000 17 ,500 153,000 $142,500 322,000 322,000 $2,970,000 750,000 o $215,500 339,500 475,000 49,875 52,370 54,980 .54 .72 .90 2001 2002 2003 33,000 590,500 150,000 3 623,500 57,735 2.08 2004 190,500 The cost of the operation of the plant will increase by Phase llA (2001) and again by an additional 590,500 o 781,000 Please note the above costs are for debt service only. approximately $50,000.00/year following the completion of $75, 000. OO/year following the completion of Phase llB (2005). 60,620 2.26 2005 of each year beginning in 2000. Assumes rate increases will be implemented on July Assumes 5% increase per year. For new projects only. (2) (3) 2 at your in detail matter with you and your staff to discuss this to meet We are available convenience F. Robert Carr, City of Owasso Sherry Bishop, City of Owasso Keith McDonald, Oppenheim, A Div. ofBOC, Inc. 3 JU:cre cc Rate Increase Impact on Residential Customers (Average Winter Water Use 5,000 gallons/month) Year Monthly Increase Bill 2000 9.23(1) 2001 11.03 1.80 2002 11.93 0.90 2003 12.83 0.90 2004 13.73 0.90 2005 14.63 0.90 0) Existing Rate Winter Average isfor the months of January, February, & March 1999 - 2000 OML Utility Rate Survey Municipality Population 5,000 gallon cost Ardmore 23,079 9.85 Bartlesville 34,256 9.06 Bixby 9,502 8.60 Claremore 13,280 8.15 Del City 23,928 8.95 Duncan 21,732 8.04 El Reno 15,414 14.38 McAlester 16,370 10.44 Miami 13,142 12.50 Muskogee 37,708 13.10 Okmulgee 13 ,441 9.00 Sand Springs 15,346 15.40 Sapulpa 18,074 21.63 Shawnee 26,017 10.15 11.38 Average 5,000 gallon cost Costs were obtainedfrom the Oklahoma Municipal Leagues 1999-2000 Utility Rate Survey printed in March 2000 using 1999 rate illformation