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Home My WebLink About2015 01_OPWA_Sewer Service Assessment Fee in Ranch Creek_2015.03.03OWASSO PUBLIC WORK AUTHORITY OWASSO, OKLAHOMA RESOLUTION NO. 2015 -01 A RESOLUTION ESTABLISHING THE SEWER SERVICE ASSESSMENT FEE IN THE RANCH CREEK SEWER INTERCEPTOR ASSESSMENT AREA WHEREAS, the Owasso City Council previously adopted Ordinance No. 1049, "Ranch Creek Sewer Interceptor Assessment Area," in the Owasso Code of Ordinances which provided a per acre assessment fee for sewer services for all property located within the Sewer Assessment Area that are developed subsequent to the effective date of the ordinance and upon connection of currently developed properties to the Ranch Creek Sewer Interceptor; WHEREAS, the Trustees of the Owasso Public Works Authority by virtue hereof hereby create a mechanism for recoupment of the costs associated with the Ranch Creek Interceptor Sewer as provided hereinafter; WHEREAS, final construction of the project has been completed and the project has been accepted by Trustees of the Owasso Public Works Authority. The mandatory assessment fee has been calculated to be $610.33 per acre; NOW, THEREFORE, BE IT RESOLVED that the mandatory assessment fee for sewer services in the Ranch Creek Sewer Interceptor Assessment Area, as set forth in Ordinance No. 1049 of the Owasso Code of Ordinances, shall be $610.33 per acre. ATTEST: Sherry 3s•SEAL • o, APPROVED AS TO FORM: Juli om�bardi, Authority Attorney ADOPTED this 3rd day of March, 2015 n oberly, Chair The City Wit Out Li mi ls. TO: FROM: SUBJECT: DATE: The Honorable Mayor and City Council City of Owasso The Honorable Chair and Trustees Owasso Public Works Authority Roger Stevens Public Works Director APPROVED BY COUNCIL MAR U 3 zm APPROVED by TRUSTEES Ordinance No. 1049 and OPWA Resolution No. 2015 -01 Ranch Creek Sewer Interceptor Assessment Fee February 27, 2015 BACKGROUND: MAR 0 3 Zuj9 The Ranch Creek Sanitary Sewer Interceptor has provided sanitary sewer service for residents located on the west side of HWY 169 since 1984. Since then, approximately 2,094 acres have been developed within the basin over the past 30 years. After excluding floodway acreage, 8,195 acres are within the Ranch Creek sanitary sewer basin. The 2005 Wastewater Master Plan, prepared by Greely and Hansen, LLC, identified the need for improving this sewer interceptor in order to accommodate additional residential and commercial development by providing adequate conveyance capacity for current and future wastewater flows. In April 2012, OPWA Trustees approved a project concept and funding source for the Ranch Creek Interceptor Improvement Project. Furthermore, in May 2012, Trustees approved an engineering agreement with Kellogg Engineering for the design of the Ranch Creek Interceptor Improvements. In April 2013, Trustees approved Resolution No. 2013 -02, authorizing an application for financing with Oklahoma Water Resources Board (OWRB) to obtain funds for the Ranch Creek Interceptor Improvements Project. In February 2014, construction phase of the Ranch Creek Interceptor commenced with completion occurring in January 2015. Acceptance of the project is listed on the March 3, 2015 for Trustee approval. PROPOSED ORDINANCE: The basin to be served by the sewer interceptor project includes 8,195 acres. 2,094 net acres are currently being served by the sanitary sewer Interceptor, 3,622 net acres are available for development and 2,478 net acres previously developed not currently served now have access to sewer service through the new Ranch Creek Interceptor, The project has been initially funded by a construction loan and subsequent long -term financing (up to 30 years) from the OWRB. The loan would be paid from the OPWA utility revenues, not from sales tax or other City revenues. As with other sanitary sewer interceptors, staff is recornmending that any development utilizing the interceptor line to connect for sewer service would be required by ordinance to pay a per -acre assessment fee to the OPWA. The proposed assessment fee is based on the final project cost. The construction cost, including interest and other financing costs would be added to the final construction costs to establish the final project cost as a basis for the per -acre fee. The proposed ordinance would do the following: • Establish the Ranch Creek Interceptor Assessment Area; • Assess a mandatory fee for connection to the Ranch Creek Interceptor; and • Authorize the assessment fee rate to be established by Resolution. PROPOSED OPWA RESOLUTION: The assessment fee rate includes a payback calculation for properties that are within the Assessment Area, and approved to tie into the new Ranch Creek Interceptor. Upon approval, payment of this assessment will be mandatory and assessment fees will be due upon the approval of a final plat or connection to the sanitary sewer system. The total number of acres included in the Assessment Area is 6,100, with the total cost of the project coming to $3,723,000. Total costs include acquisition of land, construction costs, professional fees, interest and all other lawful fees. As such, the mandatory assessment fee has been calculated to be $610.33 per acre. RECOMMENDATION: Staff recommends Council approval of Ordinance No. 1049 establishing the Ranch Creek Sanitary Sewer Interceptor Assessment Area and assessing a mandatory per -acre fee for connection to the Ranch Creek Sanitary Sewer Interceptor such per -acre fee to be established by OPWA Resolution. Staff recommends Trustee approval of OPWA Resolution No. 2015 -01 establishing the required mandatory per acre assessment fee of $610.33 for the Ranch Creek Sanitary Sewer Interceptor per the City of Owasso Code of Ordinance, Section 17 -305. ATTACHMENTS: Ranch Creek Sanitary Sewer Basin Map Ordinance No. 1049 OPWA Resolution No. 2015 -01 RANCH CREEK SANITARY SEWER INTERCEPTOR ®RANCH CREEK SANITARY SEWER ASSESSMENT AREA RANCH CREEK SANITARY SEWER SERVICE BOUNDARY 2/26115 I'a 1NFU1hMA'1'lUN PUKPUSL UDJLY [ Nl> IS NU]' 1N "1 "L•"NUL•"L> Tl AP. A('II'[t.KA 1' P: A.h U I' KIM- . SC.'AiA LNP (-H' "r I 1$\ -0A.1` IR•.trl 1 R)U I' CITY OF OWASSO I 1 I K. Amin Sftd P.O. Box 1290 (h wmx OK 74055 418.376.1500 CITY OF OWASSO ORDINANCE NO. 1049 AN ORDINANCE RELATING TO PART 17 UTILITIES, CHAPTER 3, SEWER SYSTEM, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SAME BY ESTABLISHING AN ASSESSMENT AREA FOR CONSTRUCTION OF THE RANCH CREEK SEWER INTERCEPTOR IMPROVEMENTS THIS ORDINANCE AMENDS PART 17, CHAPTER 3, OF THE CITY OF OWASSO CODE OF ORDINANCES BY ENACTING SECTION 17 -305, RANCH CREEK SEWER INTERCEPTOR ASSESSMENT AREA. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO -WIT: SECTION ONE (1): Part 17, Utilities, Chapter 3, Sewer System, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended by providing and codifying as follows: SECTION 17 -305 RANCH CREEK SEWER INTERCEPTOR ASSESSMENT AREA A. It is the purpose of this ordinance to promote public health, safety and welfare by constructing and maintaining and improving a sewer line from a point between East 761h Street North and East 961h Street North adjacent to Mingo Road. This improvement shall be known as and referred to within this ordinance as the "Ranch Creek Sewer Interceptor." B. The Ranch Creek Sewer Interceptor is hereby established as the area depicted on the map attached hereto as Exhibit "A." Exhibit "A" shall be made a part of this ordinance. This area shall be designated as the Sewer Assessment Area. All property within the Sewer Assessment Area may connect to the Ranch Creek Sewer Interceptor subsequent to the effective date of this ordinance. C. All costs associated with the construction of the Ranch Creek Sewer Interceptor, including costs for the acquisition of the land, construction costs, professional fees, interest, and other lawful and authorized costs and fees, may be recouped through a per acre assessment for all property located within the Sewer Assessment Area. The assessment amount per acre shall be established subsequent to approval of this Ordinance through adoption of a Resolution by the Owasso Public Works Authority after construction of the Ranch Creek Sewer Interceptor has been completed. D. This assessment shall be paid as a fee for sewer services for properties developed henceforth in the Sewer Assessment Area. Payment of this assessment is mandatory, and shall be due upon the approval of a final plat. Properties within the Sewer Assessment Area which have already been developed shall pay such assessment upon connection to the Ranch Creek Sewer Interceptor. E. Properties not located within the Sewer Assessment Area may request connection to the Ranch Creek Sewer Street Interceptor. Upon approval of the connection, payment of the assessment becomes mandatory and shall be due upon the approval of a final plat. Properties which have already been developed shall pay such assessment upon connection to the Ranch Creek Sewer Interceptor. SECTION TWO (2); REPEALER All ordinances or parts of ordinances, in conflict with this ordinance are repealed to the extent of the conflict only. SECTION THREE (3): 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 FOUR (4): 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. SECTION FIVE (5): CODIFICATION The City of Owasso Code of Ordinances is hereby amended by enacting an ordinance to be codified in Part 17, Chapter 3, as Section 17 -305. PASSED by the City Council of the City of Owasso, Oklahoma on the 3,d day of March, 2015. ATTEST: Sherry Bish , City Clerk y Or CQX G/ Z� L (S E A L) oFrrcr4r 1+ AL APPROVED as to form and legality Ju ombardi, City Attorney