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HomeMy WebLinkAbout1980.06.17_OPWA MinutesThe Owasso Public Works Authority met in regular session on Tuesday, June 17, 1980, in Council Chambers at City Hall, per the Notice of Public Meeting and Agenda posted on City Hall bulletin board at 2:30 PM on June 13, 1980, and by reference made a part hereof. Present: Boyd M. Spencer, Chairman Robbie Fickle, Vice Chairman Al Lambert, Trustee Dennis Burke, Trustee Clyde Fry, Trustee Harold Charney, City Attorney Kenneth Thompson, City Manager Wauhilleau Webb, City Clerk Absent: None The meeting was called to order at 8:51 PM, with Chairman Spencer presiding. ITEM 1 - APPROVE CONSENT AGENDA ITEMS. Motion was made by Dennis Burke, seconded by Boyd Spencer, to approve Consent Agenda items, as follows, as published in the Owasso Reporter on June 12, 1980, and by reference made a part hereof: A. Approve Minutes of June 3, 1980 Meeting. Ayes - Messrs. Spencer, Lambert, Burke, Fry, Mrs. Fickle Nays - None Motion carried. ITEM 2 - APPROVE ADDTTTONAT. WARRANTS Ti'nR PAVMFTTTT Motion was made by Robbie Fickle, seconded by Clyde Fry, to approve additional warrants for payment, and by reference made a part hereof. Ayes - Messrs. Spencer, Lambert, Burke, Fry, Mrs. Fickle Nays •- None Motion carried. ITEM 3 - APPROVE ADOPTION OF OPWA BUDGET FOR FISCAL YEAR 1980-1981. Motion was made by Boyd Spencer, seconded by Al Lambert, to approve adoption of OPWA Budget for Fiscal Year 1980-1981, and by reference made a part hereof. Ayes - Messrs. Spencer, Lambert, Burke, Fry, Mrs. Fickle Nays - None Motion carried. Owasso Public Works Authority June 17, 1980 Page Two ITEM 4 - REVIEW PROPOSED PREAPPLICATION TO FARMERS HOME ADMINISTRATION FOR FUND- ING OF THE EAST OWASSO SEWER DISTRICT. Mr. Cline Mansur was present to speak on this matter. He referred them to his summary letter in their packets, and made a part hereof. He said what these people are asking for is to become a part of the Owasso system. He said we are working under the assumption they can get into the system. It would be the liff station to the south of the City. The area lies in what we call Elm Creek East and this present project is referred to as Elm Creek West. Mr. Mansur reminded Council that Elm Creek West was put into effect as the very first project that established the Owasso Public Works Authority. Five differ- ent owners and sub -dividers bought the bonds, and under that particular trust we have been operating. That was in 1975. He said this pump station is a large station, and is equipped with three pumps, whose capacity is 600 gallons per milt ute. There is space in this pump station for a fourth pump, which was provided for just this purpose. He said again, this is presuming they can get into that pump station by gravity. He thinks they can, but no studies have been made yet; their plans are not far enough along to know. So the significance of one para- graph on the second page of his letter relative to coming into this station by gravity rather than double pumping is to be emphasized. That is, if their de- sign is that they are going to put this into service, and cannot come into our system by gravity, and instead they have to build a separate station, then he recommends we call for that station, to pump completely to the sewage treatment plant, not into the lift station. He said there is no reason to be concerned at the present time as far as this application. His recommendation to us is that we should accept them into the Owasso Public Works system and the features that would be required relative to the actual engineering could be worked out which we would normally and actually do anyway. Mr. Mansur said on the first page, in order for us to study what we are asking for and to see if in fact we could handle it, there is a quotation from their engineer which gives certain population projections and estimated sewage flows. Mr. Mansur feels these figures are excessive, yet we can handle what is proposed. Thus, what he is saying is we will have less flow than what they are indicating. He suggested we call for the project to make the installation, when they come into the system, for the fourth pump for which we have the space. This would be a large pump, rated at 3,200 gallons per minute. He assured us that if that is done the lift station would be able to handle its present responsibilities and new responsibilities. In the event this should come about, the other features of financing and con- struction and the requirements of the bond indenture can help with costs that have already been placed forth that are those features which the new project would be recipients and have not paid. The really important part comes from the final element of this letter in the last two paragraphs. They deal with our treatment setup. Not only will they come into the pump station, but they are wanting treatment. If they should come in, and the load will be as they say it will be, we will need to have something done by 1982, relative to our Owasso Public Works Authority June 17, 1980 Page Three treatment facility and its upgrading. That is adequate time to meet the dates which are based on their estimates. What Mr. Mansur recommended to the Council is that first we make a request to the Oklahoma Water Resources Board for a var- iance in the water quality standard requirements. This is a repeat of an earlier recommendation but it has further merit and is more important now that we are going to have an earlier load. He did not encourage us too much that we would receive that variance but there is an awful lot riding on it and we certainly will not get it until we make application, and we have everything to gain and nothing to lose. Second thing is that we immediately go into negotiation with the Environmental Protection Agency to arrange to pay back to EPA those funds which the Federal government has put forward as a part of their 3/4 through RMUA which matched our 1/4 which we have already put in relative to the RMUA Step 1 North Slope Study. The significance of that is we go to EPA now and tell them we have to get going on this and it has already been paid for once. If we go it alone, we will have to go the total cost of this study. From a practical stand- point, he questioned how they could object if we repay the government everything that they have paid out in our behalf, although it doesn't amount to very much, in comparison to what our total cost will be, as it is approximately $4,300.00 which is three times what we have already put up as our part. He suggested we make formal representations through all the channels involved in order to accom- plish this, pay back and get ourselves removed fully and completely from RMUA and then we will be ready to make an application for Step 1. Mr. Thompson asked Mr. Mansur if the Council did approve this pre -application if there would be a financial committment for the City. Mr. Mansur said he really didn't know, but he had dealt with Farmers Home on other projects and, EPA and other government agencies, and Farmers Home is a "bird of its own feather". He said we will become the governmental agency in behalf of the people, but he did not see how that could accrue. Mrs. Fickle questioned if they defaulted would we not be liable for the tab as being the governmental agency. He said again he didn't know but OPWA would be only one party to a contract and their district would be a separate district or authority to which they would make all of their own financial responsibilities. They would actually only be contracting with OPWA for services. In that case, he didn't see how OPWA would have financial responsibility to pay for any default. The papers should be drawn in that man- ner. In fact, it would probably have to be that way as OPWA bond holders will be looking over our shoulders. Mr. Thompson reemphasized it is not the intent of the City to make any financial committments but that we would help them any way we can otherwise by being a sponsoring agent, and they would have to stand on their own feet. Mrs. Lavendusky questioned why Owasso is involved in this, and Mr. Mansur ex- plained that when it comes to sewage flow and treatment, you go by water sheds, and legal agencies and governmental boundaries don't mean anything. He said it also fulfills a desire of EPA, as they want as few facilities as possible, and he believes that is the best approach. He said engineering and financial prob- lems are soluble. Owasso Public June 17, 1980 Page Four Works Authority Mrs. Fickle wanted to make certain she and others understood correctly that the treatment would be here in our Owasso plant, and Mr. Mansur said that is correct. She asked how many homes would be involved and how it would affect our rating. Mr. Mansur said their engineer said initially they would have 1,200 houses ready to tie into our system, and by the end of this year there would be 4,553 popula- tion which would be about 1,500 homes, then by 1985 a population of 7,550, 1990 a population of 10,770, and 2000 a population of 21,000. He said with the 1980 census we will have more accurate figures, as he personally feels their engineers figures are high. Dennis Burke asked why that area could not just hook onto the North Tulsa system and Mr. Mansur said that would be more expensive and would require another lift station which EPA does not want. Mayor Spencer said it was made clear to them two years ago when this was first discussed that the City of Owasso would not contribute one dime. Mr. Thompson said that although that area is not in our corporate limits, they feel a part of the Owasso Community and would like to be tied to us, and that eventually it probably will be in our corporate limits. Bill Williams said they will be helping us by enlarging our treatment system. Although Mr. Lambert pointed out Owasso would have to pay our share of that. Dennis Burke asked if he understood correctly that the people would have the option if they want to come off the sceptic tank onto our sewer. Mr. Thompson said that is correct, even after they get preliminary approval on their grant from Farmers Home, they will have to vote as property owners whether or not to go with this district. He said as soon as the property owner sees their assess- ment per acre it might kill the project and it is very likely that it will as we are talking about nine million dollars. Mr. Thompson said he had doubts they could get a loan for that much. Mayor Spencer again said the City would not spend any money on this, but he would not back out of helping them get this up for a vote to form the sewer dis- trict. He requested that statement be a part of these minutes. Mrs. Fickle re- minded Chairman Spencer that many times that is our intention, but we end up inheriting someone elses problems, costing us money and putting us in lawsuits. Mr. Spencer said he didn't think that was relative but Mrs. Fickle disagreed, and said she was very uncomfortable with it. Mr. Lambert commented he felt we owed it to them to help them get started, then drop it at that point. Mr. Spencer said maybe we could drop it and maybe not --we don't know, as he can remember when RMUA told us we couldn't get out of it. Mr. Thompson requested Council to direct him as to what they want him to do. He was directed to determine what we would be committed to and for, and for how long. Mr. Thompson said he would research it and report back to them. ITEM 5 - ACCEPTANCE OF MAY 1980 FINANCIAL STATEMENTS. Motion was made by Boyd Spencer, seconded by Al Lambert, to accept May 1980 Financial Statements, and by reference are made a part hereof. Owasso Public Works Authority June 17, 1980 Page Five Ayes - Messrs. Spencer, Lambert, Burke, Fry, Mrs. Fickle Nays - None Motion carried. Mayor Spencer recessed Owasso Public Works Authority at 9:27 PM. Mayor Spencer reconvened Owasso Public Works at 9:40 PM. ITEM 6 - DISCUSS WASHINGTON COUNTY RURAL WATER DISTRICT NO. 3 REJECTION OF OPWA OFFER TO SETTLE WATER SERVICE JURISDICTION DISPUTE. Mr. Thompson read a letter from Washington County Rural Water District No. 3 advising us that they will not accept our second proposal, as we are not'in com- pliance with the recommendations of Farmers Home Administration. He said he assumes they are talking about the discussion that in order for the City to con- tinue serving water to customers that we have lines that are stated to be within the water district boundaries of Washington County Rural Water District No. 3. Mr. Thompson said they want a payment of $50.00 per lot from the City of Owasso and the property owners. He said we have a family in the Westport addition who has been in his home for almost three weeks and does not have water. This man paid $500.00 to the Water District for rural water and they accepted his money, kept it a week or two, then returned it and asked for $50.00 to let the City of Owasso serve him. 'To this date we'have not received District Court approval to serve this person. Our offer to the Water District was to pay them $3.50 per acre in areas where we propose to serve water and to pay for all of their improvements they have in the area if they cannot provide adequate water service. That is the offer that was rejected. Farmers Home Administration is involved in this as there is a loan outstanding to Farmers Home from the Water District; however, in questioning the Farmers Home people they tell us that they did not make this loan on potential growth in the District or potential customers, but on the existing number of cus- tomers. He questioned the $50.00 being paid where they do not have water lines nor do they have customers. Mr. Charney said the homeowner told him that RWD #3 told him that after he paid his $50.00, the Rural Water District No. 3 said to him "it is yours now, go in and open it up", and his loan was closed based upon the assurance of Rural Water District No. 3 that they would have water. Then they come to us for water and we have to tell them no, as we do not want a contempt citation filed against us. Mr. Charney requested a letter from Mr. Longshore, the builder, stating what transpired between he and the Water District and then a letter to the City re- questing we hook them on. M•r. Charney said he had then filed an application with the District Court that an urgent situation exists. A copy of that re- quest to the Court to set an immediate hearing has been given to the Mayor. Owasso Public Works Authority June 17, 1980 Page Six Mr. Charney had called Judge Ellison's Court Clerk and told him the urgency of the matter and he said he would get him a date just as quickly as he can. It is now in the hands of the Judge to give this homeowner relief. Mr. Charney said he is going to bring to the Judge's attention that they have been paid $50.00 and bought off. He said he is not going to argue 60-B, changing a prior court order, but just to provide this man with water. Mr. Charney said a joint application would not be signed as they felt it would jeopardize their case and it would be a sign of weakness if they did. He said his argument now is that the area is an urban area and water districts, in a congressional act, were set up to serve rural areas. He is also going with the point that they perpetrated a fraud upon the Court. When they went into the Court and said they could serve and we were impairing their obligation to repay their bonded indebtedness, they had a moratorium in effect at that time and did not tell the Court, and they were not hooking anyone up at that time. Since they weren't hooking anybody up, and couldn't sell any more water, how could we impair their ability to repay their indebtedness. Their attorney in their pleadings had as their answer " they were never asked". ITEM 12 - NEW BUSINESS Being no further business before Owasso Public Works Authority, Chair adjourned at 9:55 PM. r CHAI RECORDING SECRETARY