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HomeMy WebLinkAbout1980.04.15_OPWA MinutesThe Owasso Public Works Authority met in regular session on Tuesday, April 15, 1980, in Council Chambers at City Hall, per the Notice of Public Meeting and Agenda posted on City Hall Bulletin Board at 3:15 PM on April 11, 1980, and by reference made a partof. . Present: Boyd Spencer, Chairman Robbie Fickle, Vice Chairman Don Thompson, Trustee Al Lambert, Trustee Dennis Burke, Trustee Kenneth Thompson, City Manager Harold Charney, City Attorney Wauhilleau Webb, City Clerk Absent: None The meeting was called to order at 7:04 PM, with Chairman Spencer presiding. ITEM 1 - PUBLIC HEARING ON INCREASING SANITARY SEWER CHARGE ITEM 2 - APPROVE 25% UTILITY DISCOUNT TO LOW INCOME PERSONS City Manager advised the public that the City Council had requested him to make a study of our sewer operation. He said the study showed the City is losing money on the sewer operation, and it is being subsidized by the sanitation and water operations. He said it was estimated the City lost $64,000 last year as the operating cost was $95,718.00 and the revenue was $32,296.00. Mr. Thompson showed on the blackboard the proposed rates, to be spread out over a two year period that would put the system on a self-supporting basis. The proposed rates are: Residential: $2.00 Per Month May 1, 1980 $2.50 itNovember 1, 1980 $3.00 ITMay 1, 1981 $3.50 ifNovember 1, 1981 $4.00 ifMay 1, 1982 Non -Residential: $2.00 Mo/8,000 Gal. May 1, 1980 .25G/1,000 over 8,000 $2.50 Mo November 1, 1980 .30�/1,000 $3.00 Mo May 1, 1981 .35(,,/1,000 $3.50 Mo November 1, 1981 .40(,,/1,000 $4.00 Mo May 1, 1982 .4501,000 Mr. Thompson said in conjunction with this the City Council asked that a rate reduction plan be provided for the senior citizens and low income people that would be hurt financially by such a rate increase. The proposal is a 25% rate reduction across the board for water, refuse and sewer, based on an income schedule and the number of people in a household. He felt the rate reduction would more than offset the sewer rate increase. He said the income levels were based on federal guidelines that are used for federal energy subsidy, that is a Owasso Public Works Authority April 15, 1980 Page Two maximum income of $354.00 for one person in a household, and for two people the maximum would be $468.00. Mr. Thompson's recommendation is that one of these programs should not be adopted without the other. Mrs. Fickle commented that the City is really trying to help those people with the 25% discount who will be most harmed financially by the sewer increase, so we will have that available to those people that apply for it and qualify. She said it is obvious that the City cannot continue to operate a deficit in the sewer system and we are going to have to do something and she feels this pro- posal is fair to every one concerned, both residential and non-residential. She said public input will be of much help to the City. Dennis Burke questioned if the full 25% discount would take effect immediately upon passage, to which Mr. Spencer replied yes. Mr. Burke then questioned if a survey was made to determine an average bill. Ken Thompson said the average bill runs around $15.75 a month, with the average usage of water being 8,200 gallons a month. Mr. Lambert said he would like to clarify a point. He feels some people in the community have the idea that the increase is being brought about because of the growth of the City, and the developer is going to benefit. He wanted to clar- ify that that is not the case, we are only working with operating expenses. He said he agrees with the City Manager that from a business standpoint it has to carry itself, and the only way it can is to increase the rates. Don Thompson questioned if the maximum monthly income for the 25% discount is compatible with Social Security pay ments. Ken Thompson said it was taken from the State Social Rehabilitation Services office, and they are the same guide- lines they used for subsidy for heating and energy costs. Don Thompson said he just wanted to make certain it reached the one and two person family that we are trying to help. A citizen present commented there are some people drawing less than $250.00 a month Social Security, and they need a bigger break than 25%. Don Thompson said he didn't feel the City could give more than 25% dis- count at this point. The owner of Town and County laundry was present and asked how the sewer system was being supported, to which Ken Thompson restated with revenue from the Water and Refuse Departments. Mayor Spencer commented that the City is now at a point where each Department needs to be self-supporting. This gentleman ques- tioned the need for each department to show a profit, and said he would have to pass this increase on to his customers. Don Thompson pointed out the Police and Fire Department that has to be carried by the City as they are not self- supporting, but the departments that can be self-supporting need to be. Another citizen present commented on the residential users, no matter how you look at it, subsidizing the big users. She said this is especially true of those that don't qualify for the 25% discount. Another laundry owner that was present commented she understood they should pay more, but there should be a cut-off somewhere. She said if she had to pay Owasso Public Works Authority April 15, 1980 Page Three another $100.00 a month for the sewer she would have to close her doors. The laundry owners commented that they do not get a commercial rate on their water. ® Mr. Thompson commented that we knew laundry mats would be the hardest hit, and said maybe there might be a fairer way to do it, and we could study it some more and make recommendations to help them. Mr. Burke commented it would be valuable to the City Council to table this item to study it some more and have more imput from the residents before it is approved or disapproved. Chairman Spencer directed Public Hearing on Increasing Sanitary Sewer Charge and Approval of 25% Utility Discount to Low Income Persons to be tabled to May 6 for another Public Hearing. Mrs. Fickle commented she appreciated the public coming as the Council values their imput and opinion before reaching these decisions. ITEM 3 - APPROVE CONSENT AGENDA ITEMS Motion was made by Robbie Fickle, seconded by Don Thompson, to approve Consent Agenda items, as follows, as published in the Owasso Reporter on April 10, 1980, and by reference made a part hereof: A. Approve Minutes of April 1, 1980 Meeting. B. Approve Warrants for Payment. Ayes - Messrs. Spencer, Thompson, Lambert, Burke, Mrs. Fickle, with Mrs. Fickle abstaining on Warrant 724. Nays - None Motion carried. ITEM 4 - APPROVE ADDITIONAL WARRANTS FOR PAYMENT Motion was made by Don Thompson, seconded by Al Lambert, to approve additional warrants for payment, and by reference made a part hereof. Ayes - Messrs. Spencer, Thompson, Lambert, Burke, Mrs. Fickle Nays - None Motion carried. ITEM 5 - PASSED UNTIL LATER IN MEETING Owasso Public Works Authority April 15, 1980 Page Four ITEM 6 - APPROVE MARCH 1980 FINANCIAL STATEMENTS Motion was made by Robbie Fickle, seconded by Don Thompson, to approve for filing the March 1980 Financial Statements, and by reference made a part hereof. Ayes - Messrs. Spencer, Thompson, Lambert, Burke, Mrs. Fickle Nays - None Motion carried. ITEM 7 - NEW BUSINESS None Chairman Spencer recessed Owasso Public Works Authority at 7:49 PM. Chairman Spencer reconvened Owasso Public Works Authority at 8:16 PM. Motion was made by Don Thompson, seconded by Robbie Fickle, to go into Executive Session to discuss with attorney the litigation of Washington County Rural Water District No. 3 vs. City of Owasso. Ayes - Messrs. Spencer, Thompson, Lambert, Burke, Mrs. Fickle Nays - None Motion carried. ITEM 5 - DISCUSS PROPOSAL FROM WASHINGTON COUNTY RURAL WATER DISTRICT NO. 3 Chairman Spencer directed this item be tabled to the May 6th Board meeting. Being no further business before the Owasso Public Works Authority, Chair adjourned at 9:11 PM. CHAT RKAig �J RECORDING SECRETARY