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HomeMy WebLinkAbout1982.02.16_OPWA MinutesOn Tuesday, February 16, 1)32, the Owasso Public Works Authority met in regular session in the Council Chambers at City Hall Der the Notice of Public Fleeting and Agenda Dosted on City Hall bulletin board at 2:00 P.M. on February 12, 1982, and by reference is made a Dart hereof. ITEM 1: CALL TO ORDER. The meeting was called to order at 7:00 P.M. with Chairman. Wasserman presiding. HU I 2: FLAG SALUTE. Flag salute was led by Chairman Wasserman. IM4 3 : ROLL CALL. PRESENT: Lyle Wasserman, Chairman Phyllis Gross, Vice Chairman Boyd Spencer, Trustee John Stadler, Trustee Jim Smalley, Trustee Ron Cates, City Attorney Kenneth Thompson, City Manager Sue Shelley, City Clerk ABSENT: None IT1 4: APPROVE MINUTES OF FEBRUARY 2, 1982, REGULAR OWASSO PUBLIC WORKS AUTHORITY MEETING. notion was made by Boyd Spencer, seconded by John Stadler to approve the minutes of February 2, 1982, Regular Owasso Public Works Authority Meting. AYES: Messrs. Wasserman, Spencer, Stadler, Smalley and Mrs. Gross NAYS: None Motion carried. ITEM 5: AUDIT REPORT FOR FISCAL 1980-81 BY LO= AND JAY, CERTIFIED PUBLIC ACCOUNTANTS. A discussion on Refuse equipment revenue bond, Mr. Jay explained that the original issue was $385,000.00, with a balance of $245,000.00, and a $20,000.00 debt due in one year. The bonds were originally issued at less ! than face value because of the interest rate and he explained it was just an accounting practice that you take the discount and subtract it. Mr. Spencer inquired as to how much money was in the fund for the garbage for $3,000.00 per ninth. Mr. Jay replied that you look at the balance sheet restricted assets refuse equipment revenue bond supplemental indenture cash $134.00-investments $160,830.0) that is the total amount lst National Bank is holding in trust for the City for payment of bond and to include the investment for additional items, refuse equipment, a kind of contingency fund. Owasso Public Works Authority February 16, 1982 Page Two Mr. Jay stated that it is all invested in treasury bills and is drawing current rates of interest, it is adjustable as the treasury bills turn over on the due dates, when they become due the bank cashes them in and buys new ones. He stated as far as the question on whether or not the treasury bills are drawing a fairly good rate of interest. The City looks good as far as the interest is concerned, in that they are paying interest rates on those bonds at 5.75% to 6.45% and those funds are being invested at 12% to 14%. Mr. Spencer inquired as to a raise in sewer rates that occurred about a year ago. Mr. Jay stated that it all falls to the bottom line, total revenue is included in the actual gross receipts, the net effect of it is included in the water receipts, the net effect of it is included in the total revenue in excess of expenses in the amount of $206,933.00. ITEM 6: PROPOSAL FOR PAYP'IENT FOR WATER LINES IN HALE ACRES I SUBDIVISION. 11r. Thompson stated that he and the City attorney recommend that you accept Mr. Hale's Affidavit and the statement of costs that he has submitted to you, in Hale Acres I with the exception of the back interest, since the way the contract reads, until you accept the charges or the cost of t'ze lines that automatically activates the contract to start payments of 1/3rd of the revenue from the sources on that particular line, sales of water from that line. So I think there would be no back payment of interest on those due. Mr. Spencer stated that any time you accept this on Hale I you are opening up to be sued on Hale II. He stated that he thought the best thing for the City and Council, if Mr. Hale wants to go to court, let's go to court and let the judge settle it. There would be no question then. Mr. Smalley inquired if $13,000.00 is 7570 of the balance of the cost of the lines that is not paid for. Mr. Green replied that this was back interest payments, the best way to resolve the unpaid rent that was due under the contract and there has been no payments made for a number of years. Under the original contract there was a rental to be paid on 1/3 of the rate charged. So rather than go back 6% interest was thought to be an easier way to resolve it. -1r. Cates responded to the 6% interest in the offer, he stated that he didn't feel that the City was obligated for the interest and directed attention to Paragraph 3 of Item 3, failure of the trust to pay the rental during the period does nothing more than extend the life of the contract, and the only reason for the statute of limitations not operating upon this contract now was due to this novel approach to longevity in the contract. Owasso Public Works Authority February 16, 1982 Page Three motion was made by John Stadler, seconded by Phyllis Gross to acknowledge that there is a contract with Mr. Hale on the waterlines in Hale Acres I, owing a balance of $13,379.00, and that it is to be paid on collection of 1/3 of the revenue starting March 1, 1982, according to Mr. Cates proposal, drawn up in resolution form. OAYES: Messrs. Wasserman, Stadler, Smalley and Mrs. Gross NAYS: Mr. Spencer Motion carried. IMI 7: OFFER TO SELL WATER LINES IN HALE ACRES II SUBDIVISION. Mr. Thomason stated we have not seen a valid contract on Hale Acres II. It appears from examining the minutes of the OPWA Board that prior to these lines being installed the board had changed its policy on payback agreements and with those two facts, he recommended that you not honor Mr. Hale's proposal to sell the lines as there is not a valid contract. '14r. Cates stated that there does exist an Ordinance that is referred to on April 18, 1978 meeting which would prohibit the Council from making paybacks for waterlines. Motion was made by John Stadler, seconded by Jim Smalley to accept the recommendation of Mr. Cates andMr. Thomason that there is not a valid contract. AYES: Messrs. Wasserman, Stadler, Smalley and l rs. Gross NAYS: None ABSTAIN: Mr. Spencer :'lotion carried. IMI 8: MORITORIIM ON SEWER. LINES IN HALE ACRES,II SUBDIVISION. Mr. Green stated that there had been damage in relation to this moritorium. There has been a stop of lot sales because of this. There has been pending in the building inspector's office a permit for a proposed structure that is on hold until this has been settled. Mr. Cates characterized it in that the Authority has been threatened with a lawsuit, the continuation of the letter is solely for there is some leverage being exercised in that the Authority is trying to get out from the cloud being cast upon them by Mr. Hale. As far as the condemnation, as it relates to the condemnation, he states that he believes that the letter preceded the condemnation. Mr. Thompson stated that he thought the letter was no longer necessary after the condemnation action was filed. That nullified the intent of the letter, which was to try to resolve ti- s matter with Mr. Hale. He stated that he did not feel that the letter had any significance one way or another and would like to resolve it. Owasso Public Works Authority February 16, 1982 Page Four Motion was made by John. Stadler, seconded by Jim Smalley to trove to rescind the letter. AYES: Messrs. Wasserman, Stadler, Smalley and'1rs. Gross NAYS: Mr. Spencer Motion carried, ITKI 9: REQUEST TO CANCEL REGULAR MARCH 2, 1982 OWASSO PUBLIC WORKS AUTHORITY 1EETING. Mayor Wasserman recommended that the meeting not be cancelled but postponed until March 9, 1982. Motion caas made by Phyllis Gross, seconded by John Stadler to continue the March 2, 1982, meeting until March 9, 1982, AYES: Messrs, Wasserman, Spencer, Stadler, Smalley and Mrs. Gross NAYS: None Motion carried. IMI 10: FINANCIAL REPORT FOR JANUARY 1982. ,r. Thompson stated that revenue is slightly below the anticipated level at this time of year, because of the costs in the past. It appears rather apparent that some rate increases are going to take place because the cost are catching up with us. The water rates have only been passed on from Tulsa. We did have a sewer rate but there was hardly any City charge to that, Ile state that he would be in favor of a slight increase instead of letting it build up. He stated that he had just gone through and looked at all our commercial refuse rates and service and found out that about 40 customers were under charged, that they had larger containers that were being picked up more often. He stated that he sent letter to those people to ask them if they want to continue the level of service that they were getting at a rate that should have been collected all along, or whether they wanted to be cut back in service to the rate that they are being charged now. This should increase what we are getting now by about $1,000.00 per month. Tyr. Smalley asked what had been done with the refuse containers that did not fit the trucks, if they were not used why did the City not sell them., and what was their approximate worth, Owasso Public Works Authority February 16, 1982 Page Five IM4 11: CONSIDER PROPOSED FIVE PERCENT COST OF LIVING INCREASE FOR EMPLOYEES. Tyr. Thompson stated that we did budget a contingency fiord for the 5% cost of living increase the lst of January or as soon as the money was available. He stated that we did have a substantial increase in sales tax and a payroll error in our favor. He recommended the 4D 5% cost of living increase effective January lst or February lst. Motion was .arnclk- by Phyllis Gross, seconded by Jim Smalley to give the 5% cost of living increase retroactive January lst. AYES: Messrs. Wasserman, Spencer, Stadler, Smalley and Mrs. Gross NAYS: None Motion carried. ITEM 12: APPROVE WARRANTS FOR PAYMENT. Motion was made by Phyllis Gross, seconded by John Stadler to accept the Warrants number 804 through 857 for payment. AYES: Messrs. Wasserman, Spencer, Stadler, Smalley and Mrs. Gross NAYS: None Motion carried. ITEM 13: NEW BUSINESS. Mr. Lambert asked about the waterline payback and wanted to know what he was having to pay in Elm Creek, if payb acks were illegal. Mr. Spencer stated that this was not a nayback that 5 individuals had put uD mmney in bonds and they were just getting their money back. Mr. Wasserman requested Mr. Cates to check into this. Also brought up by "Zr. Gross was the sewer line problem on 97th East Avenue, The sewer is backing uD and overflowing by each pump station. Mrs. Doris Comer, a homeowner, stated that she had this problem for 4 years, and that the sewer was backing uD in her home. 1,1r. Edeleman of 'Mansur-Daulbert-Williams stated that there had been a continual problem with the gears and a manufacture's representative was coming down from the company to help correct the problem. The second problem was with infilteration in the lines. He stated that he would do everything he could to correct the problem. Owasso Public Works Authority February 16, 1982 Page Six Mr. Thompson stated that he would do what he could and use emergency funds if necessary. Being no further business before the Owasso Public Works Authority, the chair adjourned at 8 : 26 . �aL) L WASSEMAN, CHAIRMAN SUE SM=, RECORDING SECRETARY