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Home My WebLink About2018.02.20_OPWA AgendaPUBLIC NOTICE THE MEETING OF THE OWASSO PUBLICFWORKS AUTHORITYG\��`�� Council Chambers, Old Central Building`<"�` 109 N Birch, Owasso, OK 74055 Regular Meeting Tuesday, February 20, 2018 - 6:30 pm 1. Cali to Order Chair Lyndell Dunn 2. Roil Call 3. Consideration and appropriate action relating to a request for approval of the Consent Agenda. (Ail matters listed under "Consent" are considered by the Trustees to be routine and Will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable.) A. Approve minutes • February 6, 2018, Regular Meeting • February 13, 2018, Regular Meeting B. Approve claims 4. Consideration and appropriate action relating to items removed from the Consent Agenda 5. Report from OPWA Manager 6. Report from OPWA Attorney 7. Official Notices to Authority (documents for acknowledgment or information only, no discussion or action will be taken) • Payroll Payment Reports - Pay Period Ending Date 2/3/18 • Monthly Budget Status Report - January 2018 • Utility Rate Annual Report- 12/31/17 8. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) 9. Adjournment Notice of Public Meeting filed in the office of the City Clerk and the Agenda posted at City Hall, 200 S Main St, at 6:00 pm on Friday, February 16, 2018. Sherry .; OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, February 6, 2018 The Owasso Public Works Authority met in regular session on Tuesday, February 6, 2018, in the Council Chambers at Old Central, 109 N Birch, Owasso, Oklahoma, per the Notice of Public Meeting and Agenda filed in the office of the City Clerk and posted at City Hall, 200 S Main St, at 6:00 pm on Friday, February 2, 2018. 1. Call to Order Chair Lyndell Dunn called the meeting to order at 8:13 pm. 2. Roll Call Present Chair - Lyndell Dunn Trustee - Doug Bonebrake Trustee - Bill Bush A quorum was declared present. Staff: Authority Manager- Warren Lehr Absent Vice -Chair - Chris Kelley Trustee -Jeri Moberly 3. Consideration and appropriate action relating to a request for approval of the Consent Agenda. (All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable.) A. Approve minutes: • January 16, 2018, Regular Meeting B. Approve claims Mr. Bush moved, seconded by Mr. Bonebrake to approve the Consent Agenda with claims totaling $985,272.20. YEA: Bonebrake, Bush, Dunn NAY: None Motion carried: 3 -0 4. Consideration and appropriate action relating to items removed from the Consent Agenda None 5. Report from OPWA Manager No Report 6. Report from OPWA Attorney No Report 7. Official Notices to Authority (documents for acknowledgment or information only, no discussion or action will be taken) • Payroll Payment Reports - Pay Period Ending Date 1/20/18 OPWA February b, 2018 Page 2 8. New Business (New Business is any item of business which could not have been foreseen at the time of posting of the agenda) None 9. Adjournment Mr. Bush moved, seconded by Mr. Bonebrake to adjourn the meeting. YEA: Bonebrake, Bush, Dunn NAY: None Motion carried 3 -0 and the meeting adjourned at 8:14 pm. Lyndell Dunn, Chair Juliann M. Stevens, Deputy City Clerk OWASSO CITY COUNCIL, OPWA & OPGA MINUTES OF JOINT REGULAR MEETING Tuesday, February 13, 2018 The Owasso City Council, Owasso Public Works Authority, and Owasso Public Golf Authority met in a joint regular meeting on Tuesday, February 13, 2018, in the Council Chambers at Old Central, 109 N Birch Street, Owasso, Oklahoma, per the Notice of Public Meeting and Agenda filed in the office of the City Clerk and posted at City Hall, 200 S Main (west side), at 6:00 pm on Friday, February 9, 2018. 1. Call to Order Mayor /Chair Lyndell Dunn called the meeting to order at 6:00 pm. Present Mayor /Chair- Lyndell Dunn Vice - Mayor /Vice- Chair- Chris Kelley (leaves meeting at 6:50 pm) Councilor /Trustee - Doug Bonebrake Councilor /Trustee - Bill Bush Councilor /Trustee -Jeri Moberly A quorum was declared present. 2. Discussion relating to the bids and construction contracts for the Police Headquarters Building Renovation Project Scott Chambless and Jason Woodruff presented the item and discussion was held. It was further explained that an item would be placed on the February 20, 2018, City Council agenda for consideration and action. 3. Discussion relating to Economic Development Strategic Plan Chelsea Feary presented the item. Ms. Moberly reported on comments made during the February Owasso Economic Development Authority meeting. Discussion was held. 4. Discussion relating to Community Development items A. Update to Owasso Zoning Code B. Annexation (OA 18 -01) - NW Corner of E 86 St N and N 161 E Ave Bronce Stephenson presented Items 4A and 4B and discussion was held. It was further explained that a community meeting will be held on March 29, 2018, to receive citizen input on the amended zoning code and Item 4B would be placed on the February 20, 2018, City Council agenda for consideration and action. 5. Discussion relating to the Surface Transportation Program Grant Application Dwayne Henderson presented the item and discussion was held. It was further explained that an item would be placed on the February 20, 2018, City Council agenda for consideration and action. 6. Discussion relating to the Water and Sewer Utility Rate Study Annual Report Linda Jones presented the item and discussion was held. Owasso City Council, OPWA & OPGA February 13, 2018 Page 2 7. Discussion relating to rates and fees A. Recycle Center B. Utility Billing C. Water Taps & Sewer Taps Sherry Bishop presented the item and discussion was held. It was further explained that an item would be placed on the March 13, 2018, work session for additional discussion. 8. Discussion relating to appointments for citizen committee vacancies Mayor Dunn presented the item and discussion was held. It was further explained that an item would be placed on the February 20, 2018, City Council agenda for consideration and action. Discussion relating to City Manager items • Budget amendment related to Alarm Registrations • Community Development Block Grant (CDBG) Public Hearing • Monthly sales tax report • City Manager report Mr. Lehr advised that an item would be placed on the February 20, 2018, City Council consent agenda to appropriate revenues and expenditures related to alarm management services; and, the required public hearing for CDBG funding would be held on March 6, 2018, during the City Council meeting. Linda Jones presented the monthly sales tax report and discussion was held. Mr. Lehr reported on recent Police Department traffic enforcement efforts and public education campaigns using various media. 10. City Council /Trustee comments and inquiries Councilor Bonebrake expressed appreciation for communications between the Police Department, Owasso Public Schools, and parents during the recent school lock -down events. 11. Adjournment Mayor Dunn adjourned the meeting at 9:42 pm. Lyndell Dunn, Mayor /Chair Juliann M. Stevens, Deputy City Clerk Claims List - 2/20/2018 Fund Vendor Name Payable Description Payment Amount 61 OPWA AEP IPSO ELECTRIC USE $1,482.82 AT &T LONG DISTANCE PHONE $8.85 BLUE ENERGY FUELS, LLC CNG FUEL PURCHASED - JAN, $56.83 CITY GARAGE LABORIOVERHEAD - FEB, 201 $141.58 CLEAN UNIFORM COMPANY UNIFORM SERVICE $89.80 JPMORGAN CHASE BANK CHARACTER TRAINING $75.86 JPMORGAN CHASE BANK OFFICE DEPOT -CHAIR $229.99 JPMORGAN CHASE BANK SAMS- MEMBERSHIP FEE $45.00 JPMORGAN CHASE BANK SAMS - SUPPLIES $167.92 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $1,740.85 TREASURER PETTY CASH NOTARY FEE $10.00 UNITED STATES CELLULAR CORPORATION PW CELL PHONES $36.52 OPWA ADMINISTRATION -Total $4,086.02 AEPIPSO ELECTRIC USE $104.72 CITY GARAGE LABORIOVERHEAD - FEB, 201 $530.58 CITY GARAGE VEHICLE PARTS PURCH - JAN $14.70 CLEAN UNIFORM COMPANY UNIFORM SERVICE $9,22 JPMORGAN CHASE BANK BROWN CO -PPE $51.00 JPMORGAN CHASE BANK GRAINGER- LOCKERS $626.80 JPMORGAN CHASE BANK LOWES- SUPPLIES $83.25 JPMORGAN CHASE BANK WASTE MGMT -REC TIP FE $851,32 TERMINIX PEST CONTROL $59.00 RECYCLE CENTER -Total $2,330.59 BLUE ENERGY FUELS, LLC CNG FUEL PURCHASED -JAN, $3,198.01 CITY GARAGE LABORIOVERHEAD - FEB, 201 $4,576.67 CITY GARAGE VEHICLE PARTS PURCH - JAN $2,524.84 CLEAN UNIFORM COMPANY UNIFORM SERVICE $52.68 COVANTA LANCASTER, INC REFUSE TIPPING FEES $10,815.40 FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - JAN, 2 $2,214.85 JPMORGAN CHASE BANK BROWN CO -PPE $51.00 JPMORGAN CHASE BANK BUMP2BUMP- FILTER $63.38 JPMORGAN CHASE BANK BUMP2BUMP- FITTINGS $24.98 JPMORGAN CHASE BANK BUMP2BUMP- REPAIRS $8.68 JPMORGAN CHASE BANK BUMP26UMP- SUPPLIES $10.84 JPMORGAN CHASE BANK FLEET SERVICE- REPAIR $1,544.31 JPMORGAN CHASE BANK FLEET SERVICE - REPAIRS $3,408.20 JPMORGAN CHASE BANK FLEETPRIDE- LIGHTS $208.53 JPMORGAN CHASE BANK KIMS INTL -HOSES $70.25 JPMORGAN CHASE BANK SEMI TRUCK -WASH $435.00 JPMORGAN CHASE BANK TULSA GAS TECH -PARTS $160.00 JPMORGAN CHASE BANK WASTE MGMT -REF TIP FE $175.22 1 Claims List - 2/20/2018 Fund Vendor Name Payable Description Payment Amount 61 OPWA LENOX WRECKER SERVICE INC TOWING $352.50 REHRIG PACIFIC CO. REFUSE CARTS $24,972.25 UNITED STATES CELLULAR CORPORATION PW CELL PHONES $38.30 REFUSE COLLECTIONS -Total VEHICLE PARTS PURCH - JAN $54,905.89 CURTIS D MATTHEWS JR METER READER $435.75 JARED MICHAEL BARNES METER READER $374.25 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES $3,708.94 TODD C. KIMBALL METER READER $577.50 TREASURER PETTY CASH BANK BAGS $6.00 UTILITY BILLING -Total ELECTRIC USE $5,102.44 AEP IPSO ELECTRIC USE $4,589.29 BLUE ENERGY FUELS, LLC CNG FUEL PURCHASED - JAN, $237.60 CITY GARAGE LABOR/OVERHEAD- FEB, 201 $1,385.42 CITY GARAGE VEHICLE PARTS PURCH - JAN $122.80 CLEAN UNIFORM COMPANY UNIFORM SERVICE $50.66 FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - JAN, 2 $463.46 JPMORGAN CHASE BANK ACADEMY -PARTS $5.99 JPMORGAN CHASE BANK ATWOODS- MATERIALS $6.16 JPMORGAN CHASE BANK CORE &MAIN - REPAIR $58.06 JPMORGAN CHASE BANK CORNERSTONE -TOOLS $265.45 JPMORGAN CHASE BANK GOLDSTAR- DEGREASER $606.93 JPMORGAN CHASE BANK J QUINTON PLUMBING -RE $375.00 JPMORGAN CHASE BANK LOCKE -FUSES $35.29 JPMORGAN CHASE BANK NORTHERN TOOL -EQUIP $308.02 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE $184.52 VERDIGRIS VALLEY ELECTRIC COOP COFFEE CREEK ELECTRI $476.09 VERDIGRIS VALLEY ELECTRIC COOP GARRETT CREEK ELECTRI $280.44 WASTEWATER COLLECTIONS -Total $9,451.20 AEP IPSO ELECTRIC USE $31,37635 AT &T LONG DISTANCE PHONE $6.06 CITY GARAGE LABORIOVERHEAD - FEB, 201 $1,024.50 CITY GARAGE VEHICLE PARTS PURCH - JAN $61.25 CLEAN UNIFORM COMPANY UNIFORM SERVICE $73.10 FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - JAN, 2 $926.71 JPMORGAN CHASE BANK ADMIRAL EXPRESS -SUPPL $27.99 JPMORGAN CHASE BANK BELTING HQ- CLARIFIER $60.00 JPMORGAN CHASE BANK BROWN CO -PPE $51.00 JPMORGAN CHASE BANK BUMP2BUMP -MUD FLAP $18.49 JPMORGAN CHASE BANK DALE &LEES- REPAIR PART $250.00 JPMORGAN CHASE BANK FORT BEND SVC- POLYMER $2,788.00 JPMORGAN CHASE BANK GRAINGER- GLOVES $270.00 4 Claims List - 2/20/2018 Fund Vendor Name Payable Description Payment Amount 61 OPWA JPMORGAN CHASE BANK GRAINGER- GREASE $17.31 JPMORGAN CHASE BANK HACH CO- ASSEMBLY $79.79 JPMORGAN CHASE BANK HACH CO -CORD $36.88 JPMORGAN CHASE BANK HACH CO- REAGENTS $270.92 JPMORGAN CHASE BANK HACH CO- SUPPORT $1,012.00 JPMORGAN CHASE BANK HARBOR FREIGHT -TOOL C $264.95 JPMORGAN CHASE BANK HOME DEPOT - LUMBER $20.57 JPMORGAN CHASE BANK LOWES -GRILL $277.22 JPMORGAN CHASE BANK LOWES- REPAIR PARTS $120.59 JPMORGAN CHASE BANK LOWES -SPRAY PAINT $53.60 JPMORGAN CHASE BANK OFFICE DEPOT - SUPPLIES $15.49 JPMORGAN CHASE BANK QUIK SERV STEEL -STEEL $72.60 JPMORGAN CHASE BANK W MGMT- SLUDGE REMOVAL $12,233.68 JPMORGAN CHASE BANK WALMART -WATER $10.56 WASTEWATER TREATMENT -Total $51,419.61 AEP /PSO ELECTRIC USE $445.39 BLUE ENERGY FUELS, LLC CNG FUEL PURCHASED - JAN, $94.51 CITY GARAGE LABOR/OVERHEAD - FEB, 201 $1,720.17 CITY GARAGE VEHICLE PARTS PURCH - JAN $85.17 CITY OF TULSA UTILITIES WATER $220,581.89 CLEAN UNIFORM COMPANY UNIFORM SERVICE $118.03 FLEETCOR TECHNOLOGIES FUELMAN EXPENSES - JAN, 2 $1,358.29 JET TRUCKING, LLC DIRT $90.00 JPMORGAN CHASE BANK BROWN CO -PPE $51.00 JPMORGAN CHASE BANK BUMP28UMP -WIPER BLADE $19.00 JPMORGAN CHASE BANK CORE &MAIN- BATTERY $125.00 JPMORGAN CHASE BANK CORE &MAIN- CANS /LIDS $1,552.00 JPMORGAN CHASE BANK CORE &MAIN -PIPE $180.00 JPMORGAN CHASE BANK CORE &MAIN - SETTERS $1,189.00 JPMORGAN CHASE BANK LOWES -PVC PIPE $8.43 TWIN CITIES READY MIX, INC CONCRETE $658.75 VERDIGRIS VALLEY ELECTRIC COOP WATER CONTROL ELECTRI $30.60 WATER • Total $228,307.23 OPWA -Total $355,602.98 OPWA Grand Total $355,602,98 3 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 02/03118 C�]�41G1 FUND TOTAL 69,510.03 114,879.39 Department Payroll Expenses Total Expenses 400 OPWA Administration 10,973.48 16,357.60 405 Utility Billing 5,472.00 9,562.53 420 Water 13,946.99 24,176.50 450 Wastewater 13,482.07 23,557.49 455 Wastewater Collection 11,847.98 19,407.96 480 Refuse 12,627.51 20,029.07 485 Recycle Center 1,160.00 1,788.24 FUND TOTAL 69,510.03 114,879.39 OWASSO PUBLIC WORKS AUTHORITY - OPERATING FUND FISCAL YEAR 2017 -2018 Budgetary Basis Statement of Revenues & Expenses As of January 31, 2018 OPERATING REVENUES: Water Wastewater Refuse & recycle Other Utility fees TOTAL OPERATING REVENUES OPERATING EXPENSES: OPWA administration Utility Billing Water Wastewater Refuse & Recycle Debt payments TOTAL OPERATING EXPENSES OPERATING REVENUES OVER EXPENSES NONOPERATING REVENUES (EXPENSES) Interest Other revenues Transfers in Transfers out TOTAL TRANSFERS MONTH YEAR PERCENT TO -DATE TO -DATE BUDGET OF BUDGET $ 448,786 $ 3,801,641 $ 6,338,750 59.97% 375,063 2,654,592 4,511,120 58.85% 165,332 1,247,204 2,073,950 60.14% 21,400 153,200 263,125 58.22% 1,010,582 7,856,637 13,186,945 59.58% $ (64,645) $ (605,742) $ (1,138,847) 53.19% (32,396) (249,664) (483,089) 51.68% (441,693) (2,846,222) (4,542,455) 62.66% (272,113) (1,210,098) (2,706,922) 44.70% (271,402) (786,649) (2,151,173) 36.57% (216,006) (2,176,296) (3,406,337) 63.89% (1,298,255) (7,874,672) (14,428,823) 54.58% (287,673) (18,035) (1,241,878) $ 2,921 $ 15,581 $ 20,000 77.90% 1,422 11,305 12,275 92.10% - 292,485 292,487 100.00% - - (326,201) 0.00% 4,343 319,371 (1,439) LONG -TERM DEBT PROCEEDS AND EXPENDITURES Proceeds of long -term debt $ 879,895 $ 2,315,365 $ 25,507,746 Expenditures of long -term debt (879,895) (2,315,365) (25,507,746) TOTAL LONG -TERM DEBT PROCEEDS AND EXPENDITURES - - NET INCOME (LOSS) ENCUMBRANCES OUTSTANDING WORKING CAPITAL - Beginning Balance WORKING CAPITAL - Ending Balance $ (283,330) $ 301,337 $ (1,243,317) $ (1,815,155) 2,214,177 2,214,177 $ 700,358 $ 970,860 Owasso Public Works Authority Utility Rate Annual Report December 31, 2017 Table of Contents Introduction......................................................................................................... ..............................1 Major Considerations in Making Utility Recommendations ............................................ ..............................2 Statement of Revenues, Expenses, and Changes in Net Position — OPWA .................. ..............................3 CurrentOPWA Indebtedness ................................................................................ ..............................4 WaterSystem ...................................................................................................... ..............................5 Average Water Customers per Year ....................................................................... ..............................5 WaterUse by Customer Class ............................................................................... ..............................6 WaterConsumption per Year ............................................................................... ..............................6 WaterBilling Rates ................................................................................................ ..............................7 WaterRevenue by Customer Type ........................................................................ ..............................8 SewerSystem ...................................................................................................... ..............................9 SewerRates ........................................................................................................ ..............................9 HistoricalUtility Rates ........................................................................................... .............................10 Comparative Residential Utility Rates ................................................................... ..............................1 1 Five -Year Utility Rates ........................................................................................... .............................12 Introduction The City provides water, sewer, refuse, recycling, and stormwater management services to residents. Operational deficits for the Stormwater and the Owasso Public Works Authority (OPWA) funds since 2014 necessitated implementation of a utility service five -year rate plan in 2016 to address the following: • Depletion of the OPWA and Stormwater fund balances over recent years • Rising operational costs • Funding for necessary capital infrastructure including an upgrade of the wastewater treatment plant. The proposed revenue increases in the five -year plan were computed based on both assumptions regarding annual increased costs of labor and materials and also 3% annual increased costs of water purchased from the City of Tulsa. The five -year rate structure was designed to enable the City to develop a long -term capital plan and enable commercial and residential customers to budget for the upcoming changes. Since actual cost increases will differ from projections, the City will review and report each year to Council the progress towards elimination of the budget deficit and restoration of a fund balance between 10% and 15% of annual revenues. This is the second of the annual reports. Major Considerations in Making Utility Rate Recommendations There are several factors that will affect future utility rate requirements. Some of the more important factors are listed below: Water purchase costs from the Tulsa Metropolitan Utility Authority (TMUA). • Based on news reports and official information from the TMUA, it is expected that annual water rate increases will continue in the future. Prior to 2016, the rate charged to Owasso by TMUA increased by 58% over the past 9 years. For our analysis, we assumed 3% annual growth in operating costs. • Actual annual increases in the price per thousand gallons that Owasso pays to TMUA for treated water since implementation of the five -year plan, have been 2 %. 2. Housing growth in Owasso. • With new housing growth in Owasso, additional water usage is almost certain. • Most new residential construction will be served by a rural water districts. 3. Increases in operational costs other than water purchase costs. • Operational costs rose 85% from Fiscal Year 2007 through Fiscal Year 2016. Cost increases contributed to a Net Operating Loss for OPWA. 4. Regulatory actions. 5. OPWA indebtedness. 6. The sewage treatment facility is approximately 30 years old and is in need of an upgrade to expand capacity. Design for the plant expansion began in the 2016 -17 fiscal year. 7. Other major improvements planned include the following: • Upgrade of Coffee Creek sewer lift station • Upgrade Smith Farm and South Main gravity sewer lines • Elm Creek Sewer Interceptor replacement • Upgrade Ranch Creek sewer interceptor, 96th to 116th 2 Statement of Revenues, Expenses, and Changes in Net Position - OPWA From fiscal year 2006 -07 through fiscal year 2015 -16, revenues increased 60% while operating expenses increased 85 %. As a result, operations began operating at a loss beginning with 2013 -14, and unrestricted reserves were substantially depleted. While the unrestricted net position of the OPWA fund remained positive as of June 30, 2017, continuation of the operating losses experienced over the past four years (since the construction of the Ranch Creek Interceptor), would put the long- term sustainability of the OPWA in jeopardy. Due to the implementation of the five year plan, and delayed capital purchases, the annual operating deficit has been reduced from $1.8 million to $0.6 million. 3 FY 2006 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY2014 FY 2015 FY2016 FY2017 Operating Revenues Charges for Services: Water $ 3,729,503 $ 3,935,576 $ 4,047,684 $ 4,395,745 $ 4,927,414 $ 5,062.458 $ 5,090,121 $ 4,948,736 $ 5,515,781 $ 5,979,647 Wastewater 2,732,624 3,120,726 3,276,727 3,304,230 3,165,977 3,467,556 3,720,529 3,750,236 3,982,260 4,282,203 Sanitation 1,282,122 1.516,755 1,610,701 1,648,877 1,713,184 1,752,120 1,789,217 1,822,413 1,854,603 1,983,724 Penalties / Late Charges 197,196 174,070 195,723 224,409 247,745 249,493 259,212 249,998 243,203 230,063 Recycle 60,962 44,963 1 52,410 60,954 55,298 33,180 34,549 28,579 23.149 32,684 Other 9,805 62.848 136.045 81,621 141,114 28,173 34,540 23,264 21,392 18,218 Total Operating Revenues $ 8,012,212 $ 8,854,938 $ 9,319,290 $ 9,715,836 $ 10,250,732 $ 10,592,980 $ 10,928,168 $ 10,823,226 $ 11,640,388 $ 12,526,539 Operating Expenses Utility Billing 324,759 317,899 330,273 327,010 338,615 354,443 362,886 382,856 409,439 474,626 Administration 534,709 800,165 667,969 673,241 749,577 712,122 692.263 743,133 805,018 812,400 Water 2,651,550 2,649.598 2,861,912 3,109,266 4,021,682 3,577.685 3.647,762 3,455,067 4,468,841 4,193,770 Wastewater Treatment Plant 784,369 845,609 894,410 865,606 945,913 980,835 990.943 1 1,119,929 1,244,245 1.303,520 Wastewater Collection 401,900 436.646 486,058 470.584 538,519 555,980 473,569 552,805 631,484 615,691 Refuse Collections 800,811 1,170,532 799,456 777,430 846,983 840,971 956.311 928,749 1.001,042 1.005,535 Recycle Center 169,307 171,879 222,379 190,892 247,599 254,416 151,370 112,070 79,524 134,971 Depreciation 1,078,431 1,122,486 1,216,745 1,240,765 1,392,564 1,468,247 3.264,814 2,936,322 3,038,858 2,972,387 Other 435,325 616,241 594,214 792,990 862,436 955.390 1,862,775 1,952,829 1,795,592 1,628,813 Total Operating Expenses $ 7,181,161 $ 8,131,055 $ 8,073,416 $ 8,467,784 $ 9,943,888 $ 9,700,089 $ 12,402,693 $ 12,183,760 $ 13,474,043 $ 13,141,713 OPWAOperafing Income (Loss) $ 831,051 $ 723,883 $ 1,245,874 $ 1,248,052 $ 306,844 $ 892,891 $ (1,474,525) $ (1,360,534) $ (1,833,6551 $ (615,174) From fiscal year 2006 -07 through fiscal year 2015 -16, revenues increased 60% while operating expenses increased 85 %. As a result, operations began operating at a loss beginning with 2013 -14, and unrestricted reserves were substantially depleted. While the unrestricted net position of the OPWA fund remained positive as of June 30, 2017, continuation of the operating losses experienced over the past four years (since the construction of the Ranch Creek Interceptor), would put the long- term sustainability of the OPWA in jeopardy. Due to the implementation of the five year plan, and delayed capital purchases, the annual operating deficit has been reduced from $1.8 million to $0.6 million. 3 „ $a 0 $3 $2 $1 $1 $D 41 rya 0 ryb ry� ;Y0 ,19 1P ry0 ry0 ry0 ,10 ,y0 ,10 ,10 �O ,10 ey0 M1O M1O M1O ry0 Current OPWA Indebtedness OPWA PRINCIPAL & INT DUE BY YEAR ^�OryOg'`ryO9ti ■ OPWA PRINCIPAL 8 INT DUE BY YEAR Annual debt payments for the operation of OPWA and funded by utility revenues (reflected above) total $3.4 million for FY 2018. Overall principal and interest payments for the City totaled $5.9 million for 2017 -18. However, some debt payments are reimbursed by sales taxes or fees. The bulk of the reimbursable debt (for Fire Station #4 and other city capital projects) is funded by the third penny capital improvement funds. Reimbursable debt is excluded from the graph above. 4 Water System OPWA currently purchases all of its treated water on a wholesale basis from the Tulsa Metropolitan Utility Authority (TMUA). The water is taken in through four meters (20 ", 10 ", 6 ", and 3" meters). OPWA is billed monthly by TMUA under a "sole source" contract. TMUA annually reviews and adjusts the price of water to all customers, including OPWA. The most recent adjustment was a 2% increase effective October 2017, bringing the rate charged by TMUA to OPWA to $3.50 per thousand gallons on a uniform rate structure. Currently, Owasso has no other alternate source of water, such as its own back -up water treatment system, or a connection to another neighboring water system. There are currently no ODEQ Consent Orders or Notices of Violation with regard to the water system. The Owasso Public Works Authority currently serves water to approximately 9,500 customers. The City of Owasso has experienced a steady growth in the number of water customers since 2007 increasing 10% over the ten -year period. 5 Average Water Customers per Year 9,600 9458 9,390 9,400 � 9,220 9,200 9,000 8,930 8,826 � 8,800 8,600 8,400 8,200 2006 -2007 2008 -2009 2010 -2011 2012 -2013 2014 -2015 2016 -2017 The City of Owasso has experienced a steady growth in the number of water customers since 2007 increasing 10% over the ten -year period. 5 Water Use by Customer Class The City of Owasso has essentially two water customer classifications, residential and commercial. The table below presents a breakdown of the water rate classifications for the year ending June 30, 2017. Customer Class Water Billed Water Consumed (gallons) Residential $ 3,727,114 560,535,000 Commercial 1,938,004 236,937,000 Other 314,529 63,845,000 City - No Cost - 47,81 1,000 Totals $ 5,979,647 909,128,000 960,000 940,000 920,000 900,000 880,000 860,000 840,000 820,000 800,000 780,000 ti ° °A °� o° ti° titi ti °1ti p t' ° p S,( ti°°,\, - °p ti° °�• ti °1O ti °y,', ti °1,L ti °1,� ti °1p ti °~y Water Consumption Per Year (in Thousands) 11 6 o6 ti Water Billing Rates The City of Owasso uses usage tier rates for the water rate. Customer billings are calculated by adding the tier usage per thousand gallons to the monthly base rate. Current rates were effective October 2017. Rates for customers outside City limits have been established by OPWA Resolution to be 20% greater than rates for customers inside City limits. Water Meter Inside City Limits I Outside City Limits First 1,000 Gallons Included in Base Rate Water Usage Inside City Limits Outside City Limits 2,000 Gallons $ 6.34 $ 7.61 3,000 - 5,000 Gallons 6.39 7,67 3,000 Gallons $24.89 $29.87 6,000 - 10,000 Gallons 6.44 7.73 5,000 Gallons $37.67 $45.20 11,000 - 20,000 Gallons 6.48 7.78 7,000 Gallons $50.55 $60.66 21,000 Gallons and Above 6.53 7.84 10,000 Gallons $69.87 $83.84 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00 Water Charges per Usage as.na MAW 530 $69.87 $29.87 50.55 -67 $24.89 3,000 Gallons 5,000 Gallons 7,000 Gallons 10,000 Gallons 7 — t—Inside City Limits --W-Outside City Limits Water Revenue by Customer Type $4,000,000 $3,500,000 $3,000,000 $2,500,000 ■ Residential $2,000,000 ■ Commercial $1,500,000 o Other $1,000,000 $500,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 12 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Residential $2,701,118 $2,850,367 $2,940,841 $3,148,744 $3,524,593 $3,521,324 $3,534,658 $3,377,415 $3,706,866 $ 3,727,114 Commercial 858,127 905,542 919,248 1,013,882 1,117,426 1,193,619 1,270,976 1,323,475 1,472,681 1,938,004 Other 170,259 179,666 187,594 233,119 285,396 347,516 284,487 247,846 336,234 314,529 Total $3,729,504 $3,935,575 $4,047,683 $4,395,745 $4,927,415 $5,062,459 $5,090,121 $4,948,736 $5,515,781 $ 5,979,647 $4,000,000 $3,500,000 $3,000,000 $2,500,000 ■ Residential $2,000,000 ■ Commercial $1,500,000 o Other $1,000,000 $500,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 12 Sewer System The Authority's sanitary sewer system serves most, but not all, of Owasso's incorporated area. The system consists of a collection system, along with eleven (11) lift stations, and a wastewater treatment plant at 600 S. Main, The City is permitted for a maximum discharge of 5.4 MGD. Average daily discharge is 2,8 MGD. Sewage is treated using a mechanical plan operation and discharged into the Owasso no name creek which flows into Bird Creek. The sanitary sewer system is not under any Consent Orders. However, the Authority has received a Notice of Violation from ODEQ regarding exceeding permit limits. Customers are charged a monthly sewer charge that is based on their average monthly water usage during December, January, and February. Winter months are used to eliminate possible irrigational water usage from the sewer estimate. This average is then multiplied by the per gallon charge and added to the monthly base charge. Customer Class Sewer Usage (gallons) ResidenTial 427,125 Commercial 216,982 Total 644,107 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- Sewer Rates Sewer Charges per Gallon Average $48.34 $36.55 $44,04 $28.69 $20.83 $26.14 $18.98 3,000 Gallons 5,000 Gallons 7,000 Gallons 10,000 Gallons 91 — Inside City Limits — Outside City Limits Inside City Limits Outside City Limits Monthly Base Charge $ 8.24 $ 9.04 Each Additional 1,000 Gallons 3.58 3.93 Sewer Charges per Gallon Average $48.34 $36.55 $44,04 $28.69 $20.83 $26.14 $18.98 3,000 Gallons 5,000 Gallons 7,000 Gallons 10,000 Gallons 91 — Inside City Limits — Outside City Limits Inside City Limits Outside City Limits 3,000 Gallons $ 18.98 $ 20.83 5,000 Gallons $ 26.14 $ 28.69 7,000 Gallons $ 33.30 $ 36.55 10,000 Gallons $ 44.04 $ 48.34 Sewer Charges per Gallon Average $48.34 $36.55 $44,04 $28.69 $20.83 $26.14 $18.98 3,000 Gallons 5,000 Gallons 7,000 Gallons 10,000 Gallons 91 — Inside City Limits — Outside City Limits Owasso Historical Utility Rate Increases 7.00% 6.46% 6.307. 6.19% 6.00% 5.62% 5.37% 1 , 5, a 5.00% 4.00% 3.00% 2.00% ■ . f 7b 1.86% 1.00% 0.00% 1 0.00% . 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10 Comparative Residential Utility Rates - For Customers Inside City Limits December 31, 2017 Utility Rates by City - Inside City Limits Owasso Bixby Sand Springs Tulsa Broken Arrow Claremore Collinsville Jenks Total 7,000 gallons WATER - Inside City $ 50.55 $ 58.34 $ 45.94 $ 38.52 $ 39.06 $ 43.50 $ 42.05 $ 46.52 Total 5,000 gallons SEWER - Inside City 26.14 25.85 35.24 36.50 23.60 15.25 23.95 15.03 Stormwater Rates 4.00 4.00 5.46 6.45 5.77 2.50 5.00 2.00 Refuse Rates 15.45 15.80 19.39 15.42 15.50 14.00 16.04 13.56 Total Utility Bill by City - Inside City Limits 1 $ 96.14 $ 103.99 $ 106.03 $ 96.89 1 $ 83.93 $ 75.25 1 $ 87.04 $ 77.11 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 Total Monthly Utility Cost Owasso Bixby Sand Springs Tulsa Broken Claremore Collinsville Jenks Arrow 11 Owasso Five -Year Residential Rates 12 Effective Oct -01 -2016 Effective Oct -01 -2017 Effective Oct -01 -2018 Effective Oct -01 -2019 Effective Oct -01 -2020 Water Rates -- Inside City Base for 3/4" Meter 11.94 12.16 12.38 12.60 12.82 0 -1,000 gallons - 1,001 -2,000 5.90 6.34 6.78 7.22 7.66- 2,001 -3,000 5.95 6.39 6.83 7.27 7.71 3,001 -4,000 5.95 6.39 6.83 7.27 7.71 4,001 -5,000 5.95 6.39 6.83 7.27 7.71 5,001 -6,000 6.00 6.44 6.88 7.32 7.76 6,001 -7,000 6.00 6.44 6.88 7.32 7.76 Total monthly water cost for avera e residential at 7,000 pallons 47.69 50.55 53.41 56.27 59.13 5.9% 6.0% 5.7% 5.4% 5.1% Sewer Rates Base 7.84 8.23 8.64 9.08 9.53 Per 1,000 gallons 3.41 3.58 3.76 3.95 4.14 Total sewer for average residential at 5,000 gallons 24.89 26.13 27.44 28.81 30.25 4.9% 5.0% 5.0% 5.0% 5.0% Stormwater Rates Residential (per month 3.50 4.00 4.50 5.00 5.50 Commercial (per month Per ESU 3.25 4.00 4.75 5.50 6.25 Industrial (per month Per ESU 3.25 4.00 4.75 5.50 6.25 Refuse Rates Residential (per cart) 14.95 15.45 15.95 16.45 16.95 Multi-family (per cart 14.95 15.45 15.95 16.45 16.95 Commercial (per cart 16.95 17.45 17.95 18.45 18.95 Inside City Residential total 91.03 96.13 $ 101.30 $ 106.53 111.83 Increase percent 6.2% 5.6% 5.4% 5.2% 5.0% Increase per month $ 5.31 $ 5.10 $ 5.17 5.231 5.30 12