HomeMy WebLinkAbout2015 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
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CITY OF OWASSO
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P.O. Box 1290
(h wmx OK 74055
418.376.1500