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HomeMy WebLinkAbout2020.03.10_Worksession AgendaThis meeting 1s a work session for Council /Trustee discussion only. There is no opportunity for public comments at work session. PUBLIC NOTICE OF THE JOINT MEETING OF THE OWASSO CITY COUNCIL / OWASSO PUBLIC WORKS AUTHORITY / OWASSO PUBLIC GOLF AUTHORITY Council Chambers, Old Central Building 109 North Birch, Owasso, OK 74055 Regular Meeting Tuesday, March 10, 2020 - 6:00 pm 1. Call to Order Mayor /Chair Chris Kelley 2. Discussion relating to Finance Department Items Linda Jones %elvJJ city ��� Og X20 e A. Proposed professional service agreements for financial advisors and bond counsel related to a Sales Tax Revenue Note for Capital Improvement Project funding and a Reimbursement Resolution B. Annual review of the five -year Utility Rate Plan 3. Discussion relating to Community Development Items Brian Dempster A. Request for Easement Closure - 11426 North 134th East Avenue B. Request for Final Plat - Hawthorne at Stone Canyon Phase I, located south and west of the East 76th Street North and North 193rd East Avenue intersection C. Request for Final Plat - Time to Shine Car Wash, located at 11515 East 96th Street North D. Request for a Re -Plat - Kum and Go, located at 502 East 2nd Street E. Application for the 2020 Community Development Block Grant (CDBG) funding and project selection 4. Discussion relating to the evaluation process and employment contracts for the City Manager and City Attorney Michele Dempster 5. Discussion relating to City Manager items Warren Lehr A. Monthly sales tax report B. City Manager report 6. Discussion relating to the 2020 Mayor /Chair Elections Process Mayor /Chair Chris Kelley 7. City Councilor /Trustee comments and inquiries B. Adjournment Notice of Public Meeting filed in the office of the City Clerk on Friday, December 13, 2019, and the Agenda posted at City Hall, 200 South Main Stre , at 6:00 pm on Friday, arch 6, 2020. r, Oliann M. Stevens, C' Jerk The City of Owasso encourages citizen participation. To request an accommodation due to a disability, contact the City Clerk at least 48 hours prior to the scheduled meeting by phone 918- 3761502 or by email to istevens@citvofowasso.com sd REAL People REAL CA »ale,• REAL Communiq TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Linda Jones, Finance Director SUBJECT: Capital Improvement Planned Financing DATE: March 6, 2020 BACKGROUND: On June 18, 2019, Council approved Resolution 2019 -13 which identified approximately $98 million in capital improvement projects, of which, $78 million require third -penny sales tax funding. The third -penny sales tax generates approximately $9 million per year, of which, approximately $4 million is currently committed annually for existing debt service. Currently, approximately $28 million remains to be funded from future years' collections. As has been discussed with Council on multiple occasions, authorized Capital Improvement Projects (CIP) will require approximately six years of sales tax revenues to fund. At the October 2017 work session, staff outlined the need for future financing of capital projects to enable the City to advance the progress of approved CIP projects without delay. The financing would include approximately $1.5 million for the 11301 North Mingo Road and 10000 East 1 16th Street North land purchase due to be paid by April 1, 2020, as well as, funds for various street projects including the Garnett Road widening from East 106th Street North to East 1 16th Street North, and the intersection of East 106th Street North and North 145th East Avenue. Contracts with Municipal Finance Services, Inc. (Financial Advisor) and The Public Finance Law Group, PLLC (Bond Counsel) are proposed to ascertain the most advantageous method and timing for financing capital projects, and to proceed with preparing a recommendation of financing. Due to the timing of the financing, staff is proposing Council /Authority authorization to be reimbursed for the purchase price of the 11301 North Mingo Road and 10000 East 116th Street North land purchase from future loan proceeds. PROPOSED ACTION: An item has been placed on the March work session agenda for discussion. ATTACHMENTS: Municipal Finance Services, Inc. contract Public Finance Law Group, PLLC contract Draft OPWA Financing Resolution Draft OPWA Reimbursement Resolution �4% /A u MUNICIPAL FINANCE SERVICES, INC. est. 1990 March 3, 2020 PROFESSIONAL SERVICES AGREEMENT mrsok.com P: 405.340.1727 F: 405.340.3607 3933 E. Covell Road Edmond, OK 73034 P.O. Box 747 Edmond, OK 73083 -0747 THIS AGREEMENT is entered by and among MUNICIPAL FINANCE SERVICES, INC. ( "MFSOK ") and the City of Owasso, Oklahoma, and its public trusts including the Owasso Public Works Authority (collectively, the "Client"). The Client desires to engage MFSOK and agrees as follows: L Scone of Services. Some or all of the following services listed below shall be provided under this Agreement and pertain to the Client's new and outstanding debt obligations, including general obligation bonds, revenue bonds, bank notes, lease financings, and loans from the Oklahoma Water Resources Board or other state or federal agencies during the term of the Agreement (the "Issues "). The Client designates MFSOK as the Client's independent registered municipal advisor ( "IRMA ") for purposes of SEC Rule 15Ba1- 1(d)(3)(vi) (the "IRMA Exemption "). A. New Issue and Refunding of Existing Client Issues I. Evaluate options or alternatives with respect to the proposed new Issue. 2. Provide financial analysis to the Client to assist in understanding the benefits, costs, and risks of the proposed new Issue. 3. Review recommendations made by other parties to the Client. 4. Assist Client in preparing a plan of finance. 5. Advise Client on structure, terms and timing of the proposed new Issue. 6. Prepare financing schedule. 7. Attend meetings as requested by the Client. 8. Assist the Client in preparation of their loan applications, loan proposals, offering documents, notices of sale, instructions to bidders, or official statements, as appropriate. 9. Coordinate as appropriate with Client staff, legal representatives, government agencies, accountants, auditors, engineers, consultants, rating agencies, banks, lenders, placement agents, trustees, paying agents, escrow agents, bond insurers and other credit enhancers, to facilitate the plan of finance. 10. If new Issue is a competitive bond sale, assist Client in collecting and analyzing bids submitted by underwriters and selecting the winning bidder. 11. If new Issue is a loan, assist Client in collecting and analyzing proposals submitted by banks. 12. If the new Issue is a negotiated bond sale, assist client in selecting an underwriter and coordinate the bond sales process. 13. Coordinate closing of the new Issue with Client and other parties. 14. Evaluate potential refunding opportunities on outstanding Issues. B. Other Services Under Separate Agreement. If requested by Client, MFSOK may provide other services including but not limited to: 1. Utility rate analysis. 2. Estimate of Needs review or preparation. 3. Verification of compliance with bond/loan covenants such as debt service coverage ratio covenants and utility rate covenants for lenders, bond insurers, and others. 4. Debt capacity analysis. 5. Cash defeasance or redemption services. C. Continuing Disclosure Assistance 1. Assisting the Client annually in compiling the financial information and operating data set forth in their Continuing Disclosure Agreement ( "CDA ") included in any Official Statement; and 2. If necessary, assisting the Client in preparing their "Failure to File Notice" should documents not be available for filing within the prescribed time frame designated in the CDA; and 3. Upon request, assisting the Client in their submission of the aforementioned information to the Electronic Municipal Marketplace Access system ( "EMMA "). MFSOK and the Client acknowledge that the Client will engage Bond Counsel and other legal service providers under separate contracts. MFSOK may rely on opinions and advice from legal representatives of the Client and will not be held responsible for any legal advice, directly or indirectly, rendered by the legal representatives. Neither MFSOK as Municipal Advisor nor its Municipal Advisor Representatives are licensed to engage in the practice of law and, consequently, will offer no legal advice. None of the fee for services under this Agreement relates to legal services. If such legal services are necessary, it shall be the responsibility of the Client to obtain them. WSOK's services are limited to those specifically set forth herein. !l. Compensation and Reimbursements A. New Issues and Refunding Issues. MFSOK shall be paid at the time of closing a fee calculated as follows: 1. For a bank loan or lease financing, 0.75% of par amount for the first $10 million for each series of notes issued, and 0.50% of any amount over $10 million, with a minimum fee of $20,000.00. 2. For a loan through the Oklahoma Water Resources Board, including the Clean Water State Revolving Fund (CWSRF), the Drinking Water State Revolving Fund (DWSRF), or the Financial Assistance Program (FAP), 1.00% of the principal amount of the loan for the first $4 million and 0.50% of any amount over $4 million, with a minimum fee of $25,000.00. 3. For revenue bonds, 1.00% of par amount for the first $4 million for each series of bonds issued, and 0.75% of any amount over $4 million, with a minimum fee of $25,000.00. 4. For general obligation bonds, 1.00% of par amount for the first $4 million for each series of bonds issued, and 0.75% of any amount over $4 million, with a minimum fee of $25,000.00. B. Compensation for Continuing Disclosure Assistance. MFSOK will receive a fee annually of $500.00 if Client requests that MFSOK assist in the filing of the Client's continuing disclosure information on the Electronic Municipal Market Access (EMMA) website, with the understanding that Client will compile and prepare the required continuing disclosure information and present the continuing disclosure information within the Client's Consolidated Annual Financial Report (CAFR). If the Client elects to file its own continuing disclosure information on the EMMA website, MFSOK will not charge the Client for continuing disclosure services. C. Exoenses for New Issues and Refunding Issues. MSFOK shall also be paid a fixed amount of $2,500.00 per transaction to cover expenses incurred as part of the transaction, provided that any filing, publication, recording or printing costs or similar third -party costs required in connection with the Issue shall be paid directly by the Client. D. Payment and Contingency for New Issues and Refunding Issues. Payment for all fees and expenses shall be made at closing from proceeds of the Issue or from other available funds of the Client and shall be contingent upon closing of the Issue. E. Other Services Under Seoarate Agreement. If requested by Client, MFSOK may provide other services including but not limited to: 1. Utility rate analysis. 2. Estimate of Needs review or preparation. 3. Verification of compliance with bond /loan covenants such as debt service coverage ratio covenants and utility rate covenants for lenders, bond insurers, and others. 4. Debt capacity analysis. 5. Cash defeasance or redemption services. III. Term and Termination A. Term of Agreement. Unless terminated as provided herein, the terms of this Agreement shall be in place from the date approved by the Client until March 31, 2025. B. Termination of Agreement and Services. This Agreement and all services to be rendered hereunder may be terminated at any time by written notice from either party, with or without cause, with at least thirty (30) days' notice. In that event, all finished and unfinished documents prepared for the Client, shall, at the option of Client, become its property and shall be delivered to it or any party it may designate, provided that MFSOK shall have no liability whatsoever for any subsequent use of such documents. IV. Successors and Assigns MFSOK may not assign its obligations under this Agreement without the written consent of Client except to a successor partnership or corporation to which all or substantially all of the assets and operations of MFSOK are transferred. Client may assign its rights and obligations under this Agreement to (but only to) any other public entity that incurs the loan. Client shall not otherwise assign its rights and obligations under this Agreement without written consent of MFSOK. All references to MFSOK and Client in this Agreement shall be deemed to refer to any successor of MFSOK and to any such assignee of Client and shall bind and inure to the benefit of such successor and assignee whether so expressed or not. V. Municipal Advisor Registration and Acknowledeement Pursuant to Municipal Securities Rulemaking Board Rule (MSRB) G -10, on Investor and Municipal Advisory Client Education and Protection, Municipal Advisors are required to provide certain written information to their municipal advisory client and/or obligated person clients which include the following: Municipal Finance Services, Inc. is currently registered as a Municipal Advisor with the U.S. Securities and Exchange Commission (SEC) and the MSRB. MFSOK is also registered as an Investment Advisor with the State of Oklahoma. Within the MSRB website at www.msrb.ore, the Client may obtain the Municipal Advisory client brochure that is posted on the MSRB website. The brochure describes the protections that may be provided by the MSRB Rules along with how to file a complaint with financial regulatory authorities. r VI. Conflict of Interest Statement As of the date of this agreement, MFSOK has performed a reasonable diligence to determine if there are any conflicts of interest that should be brought to the attention of the Client. During the diligence process, MFSOK has determined that no material conflict of interest has been identified, however, would like to provide the following disclosures: MFSOK serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another MFSOK client. For example, MFSOK serves as municipal advisor to other clients and, in such cases, owes a regulatory duty to such other clients just as it does to the Client. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, MFSOK could potentially face a conflict of interest arising from these competing client interests. MFSOK fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients. The compensation arrangement included in Section II includes a component that is based on the completion of a transaction. Consistent with certain regulatory requirements, MFSOK hereby discloses that such contingent and/or transactional compensation presents a conflict of interest, because it may cause MFSOK to recommend a transaction that is unnecessary or in a size that be larger than is necessary. This may be viewed as a conflict of interest regarding our ability to provide unbiased advice to enter into such transaction. This viewed conflict of interest will not impair MFSOK's ability to render unbiased and competent advice or to fulfill its fiduciary duty. The fee paid to MFSOK increases the cost of borrowing to the Client. The increased cost occurs from compensating MFSOK for municipal advisory services provided. If MFSOK becomes aware of any other actual or potential conflict of interest not mentioned above during this agreement, MFSOK will promptly provide the Client a supplement written disclosure with sufficient details of the change, if any, which will allow the Client to evaluate the situation. VII. Leizal Events and Disciplinary History A regulatory disclosure action has been made on MFSOK's Form MA and on Form MA -I for two of MFSOK's municipal advisory personnel relating to a 2017 U.S. Securities and Exchange Commission ( "SEC ") order. The details of which are available in Item 9; C (2), C (4), C (5) and the corresponding regulatory action DRP section on Form MA and Item 6: C (2), C (4), C (5), C (6) and the corresponding regulatory action DRP section on Form MA -I for both Rick A. Smith and Jon Wolff. In addition, the Oklahoma Department of Securities adopted the above proceedings which are identified in Item 9; D (2), D (4) and the corresponding regulatory action DRP section on Form MA. The Client may electronically access MFSOK's most recent Form MA and each most recent Form MA- I filed with the Commission at the following website: www.see.pov/edgar/searchedear/comi)anysearch.htmI There has been no change to any legal or disciplinary event that has been disclosed on MFSOK's SEC registration for MA filings since December 18, 2017. I. Z -4- VIII. Fiduciary Duty MFSOK is registered as a Municipal Advisor with the SEC and MSRB. As such, MFSOK has a Fiduciary duty to the Client and must provide both a Duty of Care and a Duty of Loyalty that entails the following. Duty of Care: A. exercise due care in performing its municipal advisory activities; B. possess the degree of knowledge and expertise needed to provide the Client with informed advice; C. make a reasonable inquiry as to the facts that are relevant to the Client's determination as to whether to proceed with a course of action or that form the basis for any advice provided to the Client; and D. undertake a reasonable investigation to determine that MFSOK is not forming any recommendation on materially inaccurate or incomplete information; MFSOK must have a reasonable basis for: a. any advice provided to or on behalf of the Client; b. any representations made in a certificate that it signs that will be reasonably foreseeably relied upon by the Client, any other party involved in the municipal securities transaction or municipal financial product, or investors in the Client's securities; and C. any information provided to the Client or other parties involved in the municipal securities transaction in connection with the preparation of an official statement. Duty of Loyalty: MFSOK must deal honestly and with the utmost good faith with the Client and act in the Client's best interests without regard to the financial or other interests of MFSOK. MFSOK will eliminate or provide full and fair disclosure (included herein) to Client about each material conflict of interest (as applicable). MFSOK will not engage in municipal advisory activities with the Client as a municipal entity, if it cannot manage or mitigate its conflicts in a manner that will permit it to act in the Client's best interests. As of the date of receipt of this attachment, MFSOK has performed a reasonable diligence to determine if there are any conflicts of interest that should be brought to the attention of the Client. IX. Recommendations If MFSOK makes a recommendation of municipal securities transaction or municipal financial product or if the review of a recommendation of another party is requested in writing by the Client and is within the scope of the engagement, MFSOK will determine, based on the information obtained through reasonable diligence of MFSOK whether a municipal securities transaction or municipal financial product is suitable for the Client. In addition, MFSOK will inform the Client o£ A. the evaluation of the material risks, potential benefits, structure, and other characteristics of the recommendation; B. the basis upon which MFSOK reasonably believes that the recommended municipal securities transaction or municipal financial product is, or is not, suitable for the Client; and C. whether MFSOK has investigated or considered other reasonably feasible alternatives to the recommendation that might also or alternatively serve the Client's objectives. If the Client elects a course of action that is independent of or contrary to the advice provided by MFSOK, MFSOK is not required on that basis to disengage from the Client. X. Record Retention Pursuant to SEC, MSRB and the Oklahoma Department of Securities record retention regulations, Municipal Finance Services, Inc. will maintain in writing, all communication and created documents between Municipal Finance Services, Inc. and the Client for six (6) years. Notices Any and all notices pertaining to this Agreement shall be sent by U.S. Postal Service, first class, postage prepaid to: MFSOK Municipal Finance Services, Inc. Attn: Rick A. Smith 3933 E. Covell Road Edmond, OK 73034 CLIENT: City of Owasso Attn: Mayor 200 S Main Street Owasso, OK 74055 G Acceptance If there are any questions regarding the above, please do not hesitate to contact MFSOK. If the foregoing terms meet with your approval, please indicate your acceptance by executing all original copies of this letter and keeping one copy for your file. By signing this agreement, the Client acknowledges the provisions set forth in the agreement and understands its respective rights, duties, and responsibilities. Furthermore, the Scope of Services contained herein have been reviewed and are hereby approved. In addition, the Client acknowledges receipt of the Form ADV Part 2A Brochure and Part 2B Brochure Supplement. Client and MFSOK have entered into this Agreement by the duly authorized representatives which was approved on March 17, 2020. at a meeting duly called and held in full compliance with the Oklahoma Open Meeting Act. MUNICIPAL FINANCE SERVICES, INC. By: Rick A. Smith, President CITY OF OWASSO By: Mayor OWASSO PUBLIC WORKS AUTHORITY By: Chairman THE PUBLIC FINANCE LAW GROUP PLLC ATTORNEYS AND COUNSELORS AT LAW 1405,2 35.3413 6,f 405-235.2807 5657 N. CLASSEN BOULEVARD, Sur rn 100 • OKLAHOMA CrrY, OK 73118. AGREEMENT FOR BOND COUNSEL SERVICES THE OWASSO PUBLIC WORKS AUTHORITY SALES TAX REVENUE NOTE, SERIES 2020 THIS AGREEMENT is entered into as of March 17, 2020, by and between THE PUBLIC FINANCE LAW GROUP PLLC ( "PFLG ") and THE OWASSO PUBLIC WORKS AUTHORITY (the "Issuer "), a public trust with the City of Owasso, Oklahoma (the "City") as its beneficiary, as follows: RECITALS WHEREAS, the Issuer desires to engage PFLG as bond counsel in connection with the financing of certain capital improvements, along with related costs (the "Project"); and WHEREAS, to finance all or a portion of the costs of the Project, the Issuer intends to issue its Sales Tax Revenue Note, Series 2020 in a principal amount that has not yet been determined (the "Note"); and WHEREAS, PFLG possesses the necessary professional capabilities and resources to provide the legal services required by Issuer as described in this Agreement. AGREEMENTS 1. Scone of Services. A. Bond Counsel Services. PFLG will render the following services as bond counsel to the Issuer: (1) Consultation with representatives of the Issuer and the City, including the City Manager, City Attorney, Issuer's Counsel, Finance Director, financing and accounting staff, financial advisors, and others, with respect to the timing, terms and legal structure of the proposed financing. (2) Preparation of loan, security and other authorizing documents (the "Financing Documents "). (3) Review of documentation with respect to any letter of credit, bond insurance and/or reserve fund surety policy provided in connection with the Note, if any. (4) Attendance at such meetings or hearings of the Issuer and the City and working group meetings or conference calls as the Issuer may request, and assistance to the Issuer staff in preparation of such explanations or presentations to the governing body of the Issuer and the City as they may request. (5) Preparation of final closing papers to be executed by the Issuer required to effect delivery of the Note and coordination of the Note closing. (6) Rendering of bond counsel's customary final legal opinion on the validity of the securities and, with respect to the tax - exempt securities, the exemption from gross income for federal income tax purposes and from Oklahoma personal income tax of interest thereon. PFLG and Issuer acknowledge that Issuer shall be represented by Julie Lombardi, Esq., City Attorney ( "Issuer's Counsel ") for the purpose of rendering day -to -day and ongoing general counsel legal services. PFLG shall circulate documents to and coordinate its services with Issuer's Counsel to the extent requested by Issuer or Issuer's Counsel. PFLG and Issuer further acknowledge that the Issuer shall be represented by Municipal Finance Services, Inc., a municipal advisor pursuant to the terms of SEC Rule 1513al A (referred to herein as an "Independent Registered Municipal Advisor" or "IRMA "). PFLG is a firm of attorneys who provide legal advice or services of a traditional legal nature to a client, and PFLG and its attorneys do not represent themselves to be a financial advisor or financial expert. Therefore, PFLG is excluded from the definition of Municipal Advisor, and PFLG does not intend to provide any advice with respect to municipal financial products or the issuance of municipal securities outside of the scope of traditional legal services and advice customarily rendered by bond counsel in public finance transactions. Notwithstanding the foregoing, in the event certain advice may be construed as beyond the scope of traditional legal services, the Issuer specifically acknowledges that PFLG may avail itself of the IRMA exemption under SEC Rule 1513al -1 on the basis that (i) the Issuer is represented by an Independent Registered Municipal Advisor not associated with PFLG, (ii) the Issuer hereby advises PFLG that the Issuer is represented by and will rely on the advice of its duly retained Independent Registered Municipal Advisor, and (iii) the Issuer has been advised that PFLG is not a municipal advisor and PFLG owes no federal statutory fiduciary duty to the Issuer. In rendering opinions and performing legal services under this Agreement, PFLG shall be entitled to rely on the accuracy and completeness of information provided, certifications made by, and opinions provided by counsel to, Issuer, the Independent Registered Municipal Advisor, property owners and other parties and consultants, without independent investigation or verification. PFLG's services are limited to those specifically set forth above. PFLG's services do not include representation of Issuer or any other party to the transaction in any litigation or other legal or administrative proceeding involving the Note, the Project or any other matter. PFLG's services also do not include any responsibility for compliance with state blue sky, environmental, land use, real estate or similar laws or for title to or perfection of security interests in real or personal property. PFLG will not be responsible for preparing, reviewing, or opining with respect to the Issuer's Official Statement and /or any Continuing Disclosure Undertakings for the Note, including but not limited to the accuracy, completeness or sufficiency of the Official Statement, Continuing Disclosure Undertaking, or other offering material relating to the Note. PFLG's services do not include any financial advice or analysis. PFLG will not be responsible for the services performed or acts or omissions of any other participant. Also, PFLG's services will not extend past the date of issuance of the Note and will not, for example, include services related to rebate compliance or continuing disclosure or otherwise related to the Note, proceeds of the Note, or the Project after issuance of the Note. 2. Compensation and Reimbursements. A. Compensation for Bond Counsel Services. For services as bond counsel to the Issuer, PFLG shall be paid a fixed fee at the time of issuance of the Note of one percent (1.0 %) of the principal amount of the Note. B. Expenses. PFLG shall also be paid a fixed amount of $2,500.00 to cover expenses and transcript production and distribution, provided, that any filing, publication, recording or printing costs or similar third party costs required in connection with the Note shall be paid directly by the Issuer, but if paid by PFLG on behalf of the Issuer, shall be reimbursed to PFLG on demand. C. Payment. Fees and expenses shall be payable by Issuer at the time of issuance of the Note. Payment of all fees and expenses hereunder shall be made at closing from proceeds of the Note and shall be entirely contingent upon issuance of the Note. D. Termination of Agreement and Legal Services. This Agreement and all legal services to be rendered under it may be terminated at any time by written notice from either party, with or without cause. In that event, all finished and unfinished documents prepared for adoption or execution by Issuer, shall, at the option of Issuer, become its property and shall be delivered to it or to any party it may designate; provided that PFLG shall have no liability whatsoever for any subsequent use of such documents. In the event of termination by Issuer, PFLG shall be paid for all satisfactory work, unless the termination is made for cause, in which event compensation, if any, shall be adjusted in the light of the particular facts and circumstances involved in the termination. If not sooner terminated as aforesaid, this Agreement and all legal services to be rendered under it shall terminate upon issuance of the Note; provided that Issuer shall remain liable for any unpaid compensation or reimbursement due under Section 2 hereof. Upon termination, PFLG shall have no future duty of any kind to or with respect to the Note or the Issuer. 3 3. Nature of Engagement; Relationships With Other Parties. The role of bond counsel, generally, is to prepare or review the procedures for issuance of the bonds, notes or other evidence of indebtedness and to provide an expert legal opinion with respect to the validity thereof and other subjects addressed by the opinion. Consistent with the historical origin and unique role of such counsel, and reliance thereon by the public finance market, PFLG's role as bond counsel under this Agreement is to provide an opinion and related legal services that represent an objective judgment on the matters addressed rather than the partisan position of an advocate. In performing its services in connection with the Note, PFLG will act as special counsel to Issuer with respect to issuance of the Note; i.e., PFLG will assist the Issuer's Counsel in representing Issuer but only with respect to validity of the Note and the Financing Documents, and the tax status of interest on the Note, in a manner not inconsistent with the role of bond counsel described above. Issuer acknowledges that PFLG regularly performs legal services for many private and public entities in connection with a wide variety of matters. For example, PFLG has represented, is representing or may in the future represent other public entities, underwriters, trustees, rating agencies, insurers, credit enhancement providers, lenders, contractors, suppliers, financial and other consultants /advisors, accountants, investment providersibrokers, providers/brokers of derivative products and others who may have a role or interest in the Note financing or the Project or that may be involved with or adverse to Issuer in this or some other matter. PFLG agrees not to represent any such entity in connection with the Note financing, without the consent of Issuer. Given the special, limited role of bond counsel described above, Issuer acknowledges that no conflict of interest exists or would exist, and waives any conflict of interest that might appear actually or potentially to exist, now or in the future, by virtue of this Agreement or any such other attorney - client relationship that PFLG may have had, have or enter into, and Issuer specifically consents to any and all such relationships. 4. Limitation of Rights to Parties; Successor and Assigns. Nothing in this Agreement or in any of the documents contemplated hereby, expressed or implied, is intended or shall be construed to give any person other than Issuer and PFLG any legal or equitable right or claim under or in respect of this Agreement, and this Agreement shall inure to the sole and exclusive benefit of Issuer and PFLG. PFLG may not assign its obligations under this Agreement without written consent of Issuer except to a successor partnership or corporation to which all or substantially all of the assets and operations of PFLG are transferred. Issuer may assign its rights and obligations under this Agreement to (but only to) any other public entity that issues the Note (if not the Issuer). Issuer shall not otherwise assign its rights and obligations under this Agreement without written consent of PFLG. All references to PFLG and Issuer in this Agreement shall be deemed to refer to any 2 such successor of PFLG and to any such assignee of Issuer and shall bind and inure to the benefit of such successor and assignee whether so expressed or not. 5. Counterparts. This Agreement may be executed in any number of counterparts and each counterpart shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same Agreement. 6. Notices. Any and all notice pertaining to this Agreement shall be sent by U.S. Postal Service, first class, postage prepaid to: PFLG: The Public Finance Law Group PLLC 5657 North Classen Boulevard, Suite 100 Oklahoma City, OK 73118 Attention: Allan A. Brooks, III or Nathan D. Ellis The Owasso Public Works Authority 200 South Main Owasso, OK 74055 Attention: City Manager [Remainder of Page Left Blank Intentionally] Issuer and PFLG have executed this Agreement by their duly authorized representatives as of the date provided above. THE PUBLIC I+INANCE LAW GROUP PLLC HA Allan A. Brooks, III THE OWASSO PUBLIC WORKS AUTHORITY By: Title: Chris Kelley, Chair Date: March 17, 2020 OWASSO PUBLIC WORKS AUTHORITY DRAFT RESOLUTION A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") AUTHORIZING THE EXECUTION OF PROFESSIONAL SERVICES AGREEMENTS PERTAINING TO FINANCING PROFESSIONALS; AUTHORIZING THE AUTHORITY'S FINANCIAL ADVISOR TO DISTRIBUTE BID PACKAGES TO PROSPECTIVE FINANCIAL INSTITUTIONS IN CONNECTION WITH THE FINANCING OF CAPITAL IMPROVEMENTS BENEFITTING THE CITY OF OWASSO, OKLAHOMA; AND CONTAINING OTHER PROVISIONS RELATING THERETO WHEREAS, The Owasso Public Works Authority (the "Authority ") has under consideration the issuance of its Sales Tax Revenue Note, Series 2020 in the principal amount of not to exceed $12,000,000 (the "Note ") for the purpose of (i) financing certain capital improvements, along with related costs (collectively, the "Project "), and (ii) paying costs associated with the issuance of the Note; and WHEREAS, it is deemed desirable for the Authority to give preliminary authorization for the issuance of the Note. NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: SECTION 1. PROFESSIONAL SERVICES AGREEMENTS. The Authority is authorized to enter into professional services agreements with Municipal Finance Services, Inc., as Financial Advisor, and The Public Finance Law Group PLLC, as Bond Counsel. The Chairman or Vice Chairman and Secretary or Assistant Secretary of the Authority are authorized to execute and deliver said professional services agreements on behalf of the Authority and take all such other action in connection therewith. SECTION 2. PRELIMINARY AUTHORIZATION. The Authority authorizes Municipal Finance Services, Inc., as the Authority's Financial Advisor, to distribute bid packages to financial institutions in connection with the proposed sale of the Note. (SEAL) By: ATTEST: :2 Authority Secretary PASSED AND APPROVED THE _ DAY OF, 2020. THE OWASSO PUBLIC WORKS AUTHORITY eTATI ii OWASSO PUBLIC WORKS AUTHORITY DRAFT RESOLUTION A RESOLUTION DECLARING THE INTENT OF THE OWASSO PUBLIC WORKS AUTHORITY (THE "AUTHORITY ") TO EXPEND CERTAIN FUNDS IN CONNECTION WITH THE ACQUISITION OF CERTAIN REAL PROPERTY WITH SAID EXPENDITURES TO BE REIMBURSED FROM THE PROCEEDS OF DEBT TO BE INCURRED BY THE AUTHORITY; AND CONTAINING OTHER PROVISIONS RELATING THERETO. WHEREAS, The Owasso Public Works Authority (the "Authority ") is undertaking to purchase land as the site of a proposed public works building at the intersection of 11301 North Mingo Road and 10000 East 116th Street North at a cost of $1,500,000 (cost of land only) which amount is expected to be paid by April 1, 2020 and which amount will be reimbursed as part of a larger financing that will include up to $10,500,000 for various street improvements to include the Garnett Road widening (collectively, the "Project "); and WHEREAS, it is the Authority's intent to eventually fund the cost of the Project through the issuance of tax - exempt debt obligations; and WHEREAS, the Authority desires to initially fund certain costs pertaining to the Project out of the Authority's cash reserves; and WHEREAS, the Authority further desires to declare its official intent to reimburse itself with the proceeds of tax - exempt debt incurred by the Authority, as required by Section 1.150 -2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY: SECTION 1, The Project. The Project to be financed by the Authority shall generally include land acquisition as the site of a proposed public works building at the intersection of 11301 North Mingo Road and 10000 East 116th Street North at a cost of $1,500,000 (cost of land only) and up to $10,500,000 for various street improvements to include a portion of the Garnett Road widening project. SECTION 2. Preliminary Use of Authority Funds. The Authority intends to initially fund certain capital costs associated with the Project from the Authority's funds. The Authority reasonably expects to reimburse any amounts expended with the proceeds of debt to be incurred by the Authority. The Authority anticipates issuing debt for the Project in an aggregate amount not to exceed approximately $12,000,000. SECTION 3. Official Intent. This Resolution constitutes a declaration of official intent as is required pursuant to Section 1.150 -2 of the Treasury Regulations promulgated pursuant to Sections 103 and 141 -150 of the Internal Revenue Code of 1986, as amended. SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this resolution is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this resolution. PASSED AND APPROVED THIS 171H DAY OF MARCH, 2020. (SEAL) By: ATTEST: By: Authority Secretary THE OWASSO PUBLIC WORKS AUTHORITY Chair i� REAL people • REAL Cho ,acer • REAL Community TO: The Honorable Mayor and City Council FROM: Linda Jones, Finance Director SUBJECT: Owasso Utility Rate Study DATE: March 6, 2020 BACKGROUND: 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 over prior four years necessitated implementing a utility service five -year rate plan in 2016 to address the following: • Depletion of the OPWA and Stormwater fund balances • Rising operational costs • Funding for necessary capital infrastructure including an upgrade of the wastewater treatment plant • Oklahoma Water Resources Board (OWRB) debt requirements In conjunction with approval of the five -year rate plan, Council requested City staff perform an annual review of the five -year rate plan to evaluate progress in achieving a balanced budget to comply with City Ordinance and OWRB debt requirements. Attached are the results of the comprehensive review of utility operations. ATTACHMENT: Water and Sewer Utility Rate Study Owasso Public Works Authority Utility Rate Annual Report December 31, 2019 Table of Contents Introduction......................................................................................................... ..............................1 Major Considerations in Making Utility Rate Recommendations ................................... ..............................2 Statement of Revenues, Expenses, and Changes in Net Position — OPWA .................. ..............................3 OPWA Utility System Debt Service Payments ........................................................... ..............................4 WaterSystem ...................................................................................................... ..............................5 Average Water Customers per Year ....................................................................... ..............................5 WaterUse by Customer Class ............................................................................... ..............................6 WaterConsumption per Year ............................................................................... ..............................6 WaterBilling Rates ................................................................................................ ..............................7 Water Revenue by Customer Type ........................................................................ ..............................8 SewerSystem ...................................................................................................... ..............................9 SewerRates ........................................................................................................ ..............................9 HistoricalUtility Rates ........................................................................................... .............................10 Comparative Residential Utility Rates ................................................................... ..............................1 1 Five -Year Utility Rates ........................................................................................... .............................12 2 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 • Rising operational costs • Funding for necessary capital infrastructure including an upgrade of the wastewater treatment plant. The 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 cost 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 reviews and reports 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 fourth of the annual reports. 3 Major Considerations in Making Utility Rate Recommendations There are several factors that affect future utility rate requirements. Some of the more important factors are listed below: Water purchase costs from the Tulsa Metropolitan Utility Authority (TMUA). • Prior to 2016, the rate charged to Owasso by TMUA increased by 58% over the prior 9 years. In developing the five -year plan, we assumed 3% annual growth in operating costs. • The average increase in the price per thousand gallons that Owasso pays to TMUA for treated water since implementation of the five -year plan, has 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 Loss for OPWA for Fiscal Year 2014, 2015 and 2016. The Net Losses led to the implementation of the 5 year plan beginning in October 2016. 4. Regulatory actions. 5. OPWA indebtedness. 6. The following major capital improvements were financed in 2019: • Upgrade /expansion of the Wastewater Treatment Plant (design awaiting DEQ approval) • Upgrade of Coffee Creek sewer lift station (in design) • Upgrade Smith Farm gravity sewer line • Upgrade Ranch Creek sewer interceptor, 96th to 116th (in design) 0 Statement of Revenues, Expenses, and Changes in Net Position - OPWA From fiscal year 2006 -07 through fiscal year 2015 -16, revenues increased 59% while operating expenses increased 85 %. As a result, operations began operating at a loss beginning with 2013 -14, and unrestricted reserves were substantially depleted. Due to the implementation of the five -year plan, and delayed capital purchases, the OPWA unrestricted net position increased the past three years, enabling the City to go forward with financing much- needed infrastructure improvements. 5 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY2017 FY 2018 FY 2019 Operating Revenues Charges for Services: Water $ 4,047,684 $ 4,395,745 $ 4,927,414 $ 5,062,458 $ 5,090,121 $ 4,948,736 $ 5,515,781 $ 5,979,647 $ 6,248,534 $ 6,106,293 Wastewater 3,276.727 3,304,230 3,165,977 3,467,556 3,720,529 3,750,236 3,982,260 4,282,203 4,545,181 4,743,839 Sanitation 1,610,701 1,648,877 1,713,184 1,752.120 1,789,217 1,822,413 1,854,603 1,983,724 2,109,969 2,249,731 Penalties / Late Charges 195,723 224,409 247,745 249,493 259,212 249,998 243,203 230,063 256,792 289,021 Recycle 52,410 60,954 55,298 33,180 34,549 28.579 23,149 32,684 1 36,179 15,845 Other 196,725 81,627 139,130 28,153 34,540 23,264 21,392 18,218 20,889 62,008 Interest Income 28,910 29,314 20,238 16,726 15,819 13,673 9,009 11,007 41,492 88,371 Total OPWA Revenues $ 9,408,880 $ 9,745,156 $ 10,268,986 $ 10,609,686 $ 10,943,987 $ 10,836,899 $ 11,649,397 $ 12,537,546 $ 13,259,036 $ 13,555.108 Operating Expenses Utility Billing 330,273 327.010 338,615 354,443 362,886 382,856 409,439 474,626 446,827 478,649 Administration 667,969 673,241 749,577 712.122 692,263 743,133 805,018 812,400 948,772 1,086,987 Water 2,861,912 3,109,266 4,021,682 3,577,685 3,647,762 3,455,067 4,468,841 4,193,770 4,460,676 4,074,414 Wastewater Treatment Plant 894,410 885,606 945,913 980,835 990,943 1,119.929 1,244,245 1,303,520 1,357,044 1,395,508 Wastewater Collection 486,058 470,584 538,519 555,980 473,569 552,805 631,484 615,691 700,632 766,717 Refuse Collections 799.456 777,430 846,983 840,971 956,311 928,749 1,001,042 1,005,535 1,037,474 1,083,788 Recycle Center 222,379 190,892 247,599 254,416 151,370 112,070 82,179 134,971 134,693 125,156 Depreciation 1.216,745 1,240,765 1,392,564 1,468,247 3,264,814 2,936,322 3,038,858 2,972,387 3,041,347 3,091,433 Other 40,107 57,073 72,026 92,030 27,938 170,006 26,413 32,131 42,551 85,603 OPWA Debt Interest Expense 452,729 1 541,149 411,351 369,989 727,143 563,457 568,896 526,423 449,303 406,077 OPW A Transfer To OPGA - - - - - - - - 326,201 326,201 Total OPWA Expenses $ 7,972,038 $ 8,273,016 $ 9,564,829 $ 9,206,718 $ 11,294,999 $ 10,964,394 $ 12,276,415 $ 12,071,454 $ 12,945,520 $ 12,920,533 OPWA Income (Loss) $ 1,436,842 $ 1,472,140 $ 704,157 $ 1,402,968 1 $ (351,012) $ (127,495) $ (627,018)1 $ 466,092 $ 313.516 $ 634,575 From fiscal year 2006 -07 through fiscal year 2015 -16, revenues increased 59% while operating expenses increased 85 %. As a result, operations began operating at a loss beginning with 2013 -14, and unrestricted reserves were substantially depleted. Due to the implementation of the five -year plan, and delayed capital purchases, the OPWA unrestricted net position increased the past three years, enabling the City to go forward with financing much- needed infrastructure improvements. 5 $3.5 $3.0 $2.5 o $2.0 $1.5 $1.0 $0.5 OPWA UTILITY SYSTEM DEBT SERVICE PAYMENTS $0.0 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ _ �1 1q ry� ry1 ryry ry� ryp ryy ryb ry1 ry� ry9 00 g� gL y9 yb y0 yb y1 y0 41 tp p1 pry M0 pp 0 0 Al p0 tq R 011 010 0�4 O`�0 O`�1 C%ry pry9 ory°' pRO �b O�1 �0 01Q 000 00� �ry p'�9 00p pyy 00b 001 p^�0 0�9 �0 �1 rpry rp'� cP`a �y. �q. ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ry ■ Current Debt © Proposed future Debt Annual debt payments for the operation of OPWA and funded by utility revenues (reflected above) total approximately $2 million for FY 2019 and $2.2 million for FY 2020. The bulk of the reimbursable debt, such as for Fire Station #4 and other city capital projects, is funded by the third penny sales tax for capital improvements and is excluded from the graph above. R 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 9,700 customers. Average Water Customers per Year 9,eoo 9,701 9,599 9,600 9,458 9,390 9,400 7 2Y6 9,220 9,200 9,044 ' 9,000 i 8,800 - 8,600 8,400 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 The City of Owasso has experienced a steady growth in the number of water customers since 2010 increasing 9% over the ten -year period. 7 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, 2019. 960,000 940,000 920,000 900,000 880,000 860,000 840,000 820,000 800,000 780,000 10 O Ogry ,10 Customer Class Water Billed Water Consumed (gallons) Residential $ 3,597,217 512,063,000 Commercial 2,020,572 287,595,000 Other 488,504 14,326,000 City - No Cost - 55,225,000 Totals $ 6,106,293 F 869,209,000 Water Consumption Per Year (In Thousands) ry011 ryolry 70,E O 'L01a `Y016 'Llz b ,yo,^ 8,010 ,1.019. 8010• '%011 ti01ry A1�• ry01p, ry01y ry01b ti01� 'yo10. I 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 2019. 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 $ 2,000 Gallons $ 7.22 $ 8.66 3,000 - 5,000 Gallons $ 7.27 $ 8.72 6,000 - 10,000 Gallons $ 7.32 $ 8.78 11,000 - 20,000 Gallons $ 7.36 $ 8.83 21,000 Gallons and Above $ 7.41 $ 8.89 Water Usage Inside City Limits Outside City Limits 3,000 Gallons $ 27.09 $ 32.51 5,000 Gallons $ 41.63 $ 49.96 7,000 Gallons $ 56.27 $ 67.52 10,000 Gallons $ 78.23 $ 93.88 Water Charges per Usage $100.00 $90.00 $80.00 $70.00 - $78.23 $60.00 $50.00 - t Inside City Limits $40.00 -41- Outside City Limits 44 I.bj $30.00 $20.00 $27.09 $10.00 $- 3,000Gallons 5,000Gallons 7,000Gallons 10,000Gallons F1 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 a Other $1,000,000 — $500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Residential $2,940,841 $3,148,744 $3,524,593 $3,521,324 $3,534,658 $3,377,415 $3,706,866 $3,727,114 $3,710,379 $3,597,217 Commercial 919,248 1,013,882 1,117,426 1,193,619 1,270,976 1,323,475 1,472,681 1,938,004 2,092,634 2,020,572 Other 187,594 233,119 285,396 347,516 284,487 247,846 336,234 314,529 445,520 488,504 Total $4,047,683 1 $4,395,745 1 $4,927,415 1 $5,062,459 1 $5,090,121 1 $4,948,736 1 $5,515,781 1 $5,979,647 1 $6,248,533 1 $6,106,293 $4,000,000 $3,500,000 — $3,000,000 $2,500,000 — ■ Residential $2,000,000 ■ Commercial $1,500,000 a Other $1,000,000 — $500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 10 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 ten (10) 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 plat operation and discharged into the Owasso no name creek which flows into Bird Creek. The sanitary sewer system is not under any Consent Orders or Notice of Violation at this time. 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. Sewer Rates Effective October 2019 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Monthly Sewer Cost Inside City Limits Monthly Base Charge $ 9.08 Each Additional 1,000 Gallons $ 3.95 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 Monthly Sewer Cost Average Monthly Customer Class Inside City Limits 3,000 Gallons $ 20.93 5,000 Gallons $ 28.83 7,000 Gallons $ 36.73 10,000 Gallons $ 48.58 Monthly Sewer Charges 3,000 5,000 7,000 10,000 Gallons Gallons Gallons Gallons 58 — inside City Limits Average Monthly Customer Class Sewer Usage (gallons) Residential 36,112 Commercial 18,582 Total 54,694 — inside City Limits Owasso Historical Utility Rate Increases 7.00% 6.46% 6.30% 6.19% 6.00% 5.62% 5.37% 5.16% 4.98% 5.00% 4.00% 3.00% 2.04% 1.86% 2.00% 1.00% 0.00% 0.00% - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 12 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total 7,000 gallons WATER - Inside City $ 36.46 $ 39.17 $ 40.50 $ 41.97 $ 45.05 $ 47.69 $ 50.55 $ 53.41 $ 56.27 $ 59.13 Total 5,000 gallons SEWER - Inside City 19.72 21.72 21.72 21.72 23.72 24.89 26.14 27.44 28.81 30.25 Stormwater Rates 3.00 3.00 3.00 3.00 3.00 3.50 4.00 4.50 5.00 5.50 Refuse Rates 13.70 13.70 13.95 13.95 13.95 14.95 15.45 15.95 16.45 16.95 Total Average Utility Bill - Inside City Limits $ 72.88 $ 77.59 $ 79.17 $ 80.64 $ 85.72 1 $ 91.03 $ 96.14 1 $ 101.30 1 $ 106.53 1 $ 111.83 7.00% 6.46% 6.30% 6.19% 6.00% 5.62% 5.37% 5.16% 4.98% 5.00% 4.00% 3.00% 2.04% 1.86% 2.00% 1.00% 0.00% 0.00% - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 12 Comparative Residential Utility Rates - For Customers Inside City Limits December 31, 2019 Utility Rates by City - Inside City Limits Claremore Jenks Collinsville Broken Arrow Owasso Bixby Sand Springs Tulsa Total 7,000 gallons WATER - Inside City $ 43.50 $ 48.29 $ 42.55 $ 45.41 $ 56.27 $ 58.91 $ 48.72 $ 36.55 Total 5,000 gallons SEWER - Inside City 15.25 15.98 23.95 28.25 28.83 26.65 37.38 52.27 Stormwater Rates 2.50 2.00 5.00 7.48 5.00 4.00 5.80 7.66 Refuse Rates 14.00 15.80 16.04 15.50 16.45 17.60 19.98 15.42 Total Utility Bill by City - Inside City Limits 1 $ 75.25 $ 82.07 1 $ 87.54 $ 96.64 $ 106.55 $ 107.16 $ 111.88 $ 111.90 $120 $100 $80 $60 $40 $20 Total 2019 Average Monthly Utility Cost Claremore Jenks Collinsville Broken Arrow Owasso Bixby Sand Springs Tulsa 13 Owasso Five -Year Residential Rates E 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 average residential at 7,000 gallons 47.69 50.55 53.41 1 56.27 59.13 Increase percent 5.9% 6.0% 5.7% 5.4%, 5.1% Sewer Rates Base 7.84 8.24 8.64 9.08 9.53 0 -1,000 gallons 3.41 3.58 3.76 3.95 4.14 Total sewer for average residential at 5,000 gallons 24.89 26.14 27.44 28.81 30.25 Increase percent 4.9% 5.0% 5.0%1 5.0% 5.0% Stormwater Rates Residential (per month) 3.50 4.00 4.50 5.00 5.50 Commercial (per month) 3.25 4.00 4.75 5.50 6.25 Industrial (per month) 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 $ 96.14 $ 101.30 $ 106.53 $ 111.83 Increase percent 6.2% 5.6% 5.4% 5.276 5.017c Increase per month $ 5.311 $ 5.10 $ 5.17 $ 5.231 $ 5.30 E C21PEALP..P1. -REALC Kelm -REAL COmmunlly TO: The Honorable Mayor and City Council FROM: Karl Fritschen RLA, AICP Planning Manager SUBJECT: Partial Utility Easement Closure Request - 11426 North 1341h East Avenue, Replat of Lot 2, Block 1 Garrett Creek Center Phase II DATE: March 6, 2020 BACKGROUND: The City of Owasso received a request from KKT Architects for the partial closing of a twenty -foot (20') utility easement. The location of the easement lies on Lot 2, Block 1, Replat of Garrett Creek Center Phase II (11426 North 134th East Avenue). An urgent care facility currently occupies this property. It was discovered upon completion of the urgent care facility that the building was built over the easement by approximately two feet (2'). The total area proposed to be closed is 166 square feet. The overall impact to utilities is minimal, as most appear to be away from the area requested to be closed. The required notice was sent to all franchise utility companies. The City of Owasso Public Works Department indicated there should be no impact to future utilities. No other utilities appear to be affected by the closing of this portion of the easement. No utility companies expressed issue with the proposed closing of the easement. Should the City Council take action to close the easement, the applicant would file for vacation of the easement with the District Court, which will complete the easement closure process. TECHNICAL ADVISORY COMMITTEE: The Technical Advisory Committee reviewed the request at their February 19, 2020 meeting. No comments or concerns regarding negative impacts to utilities were expressed at the meeting. PROPOSED ACTION: An item has been placed on the March 10, 2020 Work Session Agenda for discussion. ATTACHMENT. Aerial Map Aerial Photo The Shops at Garrett Creek � I r. i Ant Ld A-i Ij 00 A ,I fo, 7 SUBJECT PROPERTY z W ii rrt A Location of Easement R, 00 E 116TH St N I r I Ant Ld A-i Ij 00 A ,I fo, 7 SUBJECT PROPERTY z W ii rrt A Location of Easement sd ftFAL Peopto • REAL CMnoNr • REAL CommunlA/ TO: The Honorable Mayor and City Council FROM: Karl Fritschen AICP, RLA Planning Manager SUBJECT: Final Plat - Hawthorne at Stone Canyon Phase I DATE: March 6, 2020 BACKGROUND: The City of Owasso received a final plat application for review and approval of Hawthorne at Stone Canyon Phase I, a proposed single - family residential development. The property is located south and west of the intersection of 76th Street North and North 193rd East Avenue in the Stone Canyon Development. The property is zoned RS -20 under the Stone Canyon Planned Unit Development (PUD) and will consist of 19 single - family home sites. SURROUNDING ZONING: Direction Zoning Use Land Use Plan Jurisdiction North RS -20 (Residential Single - Family Undeveloped Residential Rogers County Within a PUD? Medium Density) Within an Overlay District? No Water Provider South RS -20 (Residential Single - Family Residential Residential Rogers County Medium Density) East RS -40 (Residential Single - Family Residential Residential Rogers County Low Medium Density) West RS -20 (Residential Single - Family Undeveloped Residential City of Owasso Medium Density) SUBJECT PROPERTY /PROJECT DATA: Property Size 10.43 acres +/- Land Use Master Plan Residential Current Zoning RS -20 Rogers County under Stone Canyon PUD Proposed Use Residential Subdivision Proposed lots /Blocks 19 Lots, 3 Blocks Within a PUD? Stone Canyon PUD (approved originally in Rogers County) Within an Overlay District? No Water Provider Rogers County Rural Water District #3 Applicable Paybacks /Fees 761h St N Interceptor Payback Area ($1,341.00 per acre) Storm Siren Fee ($50.00 per acre) Public Streets Yes ANALYSIS: The Stone Canyon PUD was originally approved in Rogers County in 2006. Subsequently, the developer applied for annexation of the undeveloped portion of the Stone Canyon PUD into the City of Owasso. The undeveloped land in Stone Canyon was brought into Owasso City limits with Ordinance 934 in 2008, giving that area access to Owasso City services, including Police, Fire, EMS, and sanitary sewer. Hawthorne at Stone Canyon Phase I would become the first residential subdivision within the Stone Canyon PUD to be developed inside Owasso City limits. The Final Plat for Hawthorne at Stone Canyon Phase 1 proposes 19 lots on 3 blocks on a 10.43 acre tract of land, yielding a gross density of 1.83 dwelling units per acre (DU /AC). The main access into the development will be off East 72nd Street North, just west of the intersection of North 193rd East Avenue. The underlying zoning of this tract of land is RS -20 (Residential Single - Family Medium), which is the Rogers County zoning classification that was retained with the annexation of the Stone Canyon PUD. The PUD states that residential uses must meet RS -20 requirements as set out by the Rogers County Zoning Code if they are not served by a sanitary sewer system. However, all residential development within Owasso City limits would be required to connect to the Owasso sanitary sewer system. The lot sizes for the Hawthorne at Stone Canyon Phase I range from the smallest lot being 10,441 square feet and the largest lot at 20,856 square feet. The development standards as laid out in this Final Plat meet the requirements as set forth in the PUD approved by Rogers County. The City of Owasso will provide Police, Fire, EMS, and sanitary sewer to the property. Water will be provided by Rogers County Rural Water District #3. Perimeter and interior utility easements are shown on the Final Plat that will allow utility companies adequate access to serve the lots in the development. The development that occurs on the subject property shall adhere to all subdivision, zoning, and engineering requirements of the City of Owasso in addition to those established under the Stone Canyon PUD. PLANNING COMMISSION: The Owasso Planning Commission will review this item at their meeting on March 9, 2020. ATTACHMENTS: Aerial Map Final Plat - Hawthorne at Stone Canyon Phase I Hawthorne at Stone Canyon Final Plat 1" = 752 ft 07/20/2017 V., y This map represents a visual display of related geographic information. Data provided hereon is not a guarantee of actual field conditions. To be sure of complete accuracy, please contact Owasso Public staff for the most up -to -date informaton. OWNEWDEVELOFM: CAD O0 DEVELOPMENT CO.. L.L.C. 12IY L EM L Xn WM M A (Ele)S1Z -])tl)� ENGINEER: KELLOGG ENGINEIMNG. INC. M SuO� IoeO ps1 1HbY. LYWnN )Ipn u ns wm Rte' N Glp JIw A )01 PLANNER: PLANNING DESIGN GROUP, INC. 9111 s 17♦I)i by Ap )ID )IID 1 ta URV YOU: AND SURVEYING AND LAND SERVICES. INC. ra rim, M° „(i1e n�'i -FLAT �aa R...a DNP Aa w w9 u YYEYE =NNA2� /]Ae� aw00000 ®Ilr�Ee�E�usuo FINAL PLAT HAWTHORNE AT STONE PHASE I IN MDMON TO ME CITY OF MASSE. MCERS CMIM. SFA)E OF ONWIOMA SECTION 39, MNSHF 21 NORM, RANGE It F . / '4Q J , / IAN. Y� � I / Wr "M- Is S� W-Raff ` •,w ° N CANYON __ a s ; 10.43 ACRE DUCT E DT COMNN9 19- .MDDM,. LO@ [ SEVES RVE9 Y-REONE 1 A ,,N ` tab / '4Q J , / IAN. Y� � I / Wr "M- .r=arer w.�� -_ �^.-_ ae _ S� W-Raff ` •,w ° N CANYON __ a s ; 10.43 ACRE DUCT E DT COMNN9 19- .MDDM,. LO@ [ SEVES RVE9 Y-REONE 1 A ,,N EONEO: ST PW bummm C M -20 UNDERLnN(U n J I•r r.. i�a -m•Lm �:.:b.:.r I �1®� CDC'MCA OF ONRIP .r=arer w.�� -_ �^.-_ ae .uw wn�r�em sr rr�0 s..® CERRnCAX M SURVEY CERVMCAM CF COUNW TREAMU .mm.. =TIRCAM OF MHAL.P>sT AWAL. MN Mi XAMIxRf AD Slp[ WqN CAS[ I Anury A FN M• i S� W-Raff Et i i / I uN V 1 A ,,N bummm J I•r I Ft I 1 I 1 i -ter .o rX_n 11 MAIM .uw wn�r�em sr rr�0 s..® CERRnCAX M SURVEY CERVMCAM CF COUNW TREAMU .mm.. =TIRCAM OF MHAL.P>sT AWAL. MN Mi XAMIxRf AD Slp[ WqN CAS[ I Anury A FN ORCAIP.oplp • REAL Chprpctpr •REAL Community TO: The Honorable Mayor and City Councilors FROM: Karl A. Fritschen RLA. AICP. MRCP Planning Manager SUBJECT: Preliminary/Final Plat - Time to Shine DATE: March 6, 2020 BACKGROUND: The City of Owasso received an application for review and approval of a preliminary/final plat for Time to Shine Car Wash. The subject lot is located at 11515 East 96th Street North and is approximately 4.10 acres in size. The plat proposes two (2) lots on one (T) block. The property is currently zoned Commercial Shopping (CS) and lies within the US -169 Overlay District. A Specific Use Permit (SUP 19 -01) for a car wash facility was approved by City Council for this property in September, 2019. SURROUNDING ZONING AND LAND USE: Direction Zoning Use Land Use Plan Jurisdiction North AG (Agriculture) Undeveloped Commercial Tulsa County South AG (Ag(culture) Undeveloped Commercial City of Owasso East CS (Commercial Shopping) Commercial Commercial City of Owasso West CG (Commercial General) Commercial Commercial City of Owasso SUBJECT PROPERTY /PROJECT DATA: Property Size 4.09 acres +/- Current Jurisdiction City of Owasso Current Zoning CS (Commercial Shopping); SUP 19 -01 Lots /Blocks 2 Lots, 1 Block Land Use Master Plan Commercial Within PUD? No Within Overlay District? Yes; US -169 Overlay District Water Provider City of Owasso Applicable Paybacks /Fees Storm Siren Fee - $50.00 per acre; Regional Detention - $30,737.42 per acre ANALYSIS: This is a two (2) lot, one (1) block preliminary/final plat that will contain a car wash facility on Lot 1, while Lot 2 will remain undeveloped. The property owner of Lot 1, where the car wash facility will operate, obtained an agreement with the property owner to the east to utilize the existing Preliminary/ Final Plat - Time to Shine Page 2 private driveway leading to the Candlewood Suites hotel for gaining access into this property. Therefore, this plat shows two access points along this drive. Since this drive is private, there is no requirement to show limits -of- access (LOA) or limits -of -no (LNA) access. The southern access point will function as an exit only, while the north access will be within the mutual access easement (MAE) that is shown along the north boundary of the Lot 1. Access for Lot 2 will come from the mutual access easement that is being recorded with this plat. This access easement also adjoins a recorded MAE on the Braum's property to the west. The applicant has indicated they will be tying to the drive at this location, which would provide continuous east /west access across the entire north side of Lot 1. Perimeter and interior utility easements are shown on the plat that will allow utility companies adequate access to service the development. Future development on this property shall adhere to all subdivision, zoning, and engineering requirements of the City as well as any requirements set forth in Specific Use Permit 19 -01 and for the US -169 Overlay District. PLANNING COMMISSION: The Planning Commission will review this item at their regular meeting on March 9, 2020. ATTACHMENTS: Aerial Map Preliminary/Final Plat - Time to Shine " re 41 Preliminary/ Final Plat Time to Shine Car Wash Subject Tract 7 I: 'L 1 71, M I !Oki -t: ns MIS sS !74 1 0 TREASURER'S STAMP DO NOT USE THIS SPACE 1 I 1 "m50' I� tl uiN LOr2 BLOCK EXISTING ZONING CS SUP /19-01 Lori BLS OM lTXGA FmE,,wLSu MXq',I, "AllN A,,A M"su.Yd�l 1=11 D4x >1. Gm.a R.1) %= MN, ... F0` WW..IPNLn surmhof TNLASI IIIL 1 p0il..1 M xc'Y in NiN r.�3 'FINAL PLAT Time to Shine ASUBDIVISION INPARTOFTHE SWA OF THE SWA SECTION 17, T -21 -N, R -14-E CITY OF OWASSO, TULSA COUNTY, OKLAHOMA A Bello Of MT IT I. OTRI w,G aLnA,.1 .1 1 �a TW''!'� M. 1 I AiMiiWi �T[S (li<, ID MIX, NMI. NT OR MIIO [N. GATTRATIT D uMIT.. ° 1. LIT w1 AT m lol OR 11 AT RTOORAL xH IK l ,,A .IX TLD.NLOT i A..1TK K wxi iA ,5A.1. IH.1. Deep M DedloOdIon wd Restrlcft Commits IRE TO SHINE EN,I rcI R -14E EAST ION STREET NORM A�F Y W 2 17 xI �N =1 I M € Ile EART d ION RNTET xCg. M •,•nm.mw e. mU�� un 1N. PYBIIL IRE TO SHINE EN,I rcI sd 01FILN.pl.-II.L.I.,ut.-REAL Cammunlry TO: The Honorable Mayor and City Council FROM: Karl Fritschen AICP, RLA Planning Manager SUBJECT: Final Plat of the Replat of Lot 2 Block 2, Owasso Business Park Kum and Go #1858 DATE: March 6, 2020 BACKGROUND: The City of Owasso received a final plat application, which includes a replat of Lot 2 Block 2 of Owasso Business Park, for a new Kum and Go convenience store located at 502 East 2nd Street (76th Street North). An abandoned Shell gas station currently occupies the property. The property is zoned Commercial Shopping (CS) and lies within the Downtown Overlay District. Convenience stores and gas stations are prohibited in the Downtown Overlay, however the Owasso Board of Adjustment approved case OBOA 20 -01 for a special exception to allow for the construction of the Kum and Go store. SURROUNDING ZONING: Direction Zoning Use Land Use Plan Jurisdiction North PF (Public Facilities) School Administration Building Downtown Overlay City of Owasso South CS (Commercial Shopping) Undeveloped Downtown Overlay City of Owasso East CS (Commercial Shopping) Restaurant Downtown Overlay City of Owasso West CS (Commercial Shopping) Restaurant Downtown Overlay City of Owasso SUBJECT PROPERTY /PROJECT DATA: Property Size 1.074 acres +/- Land Use Master Plan Downtown Overlay District Current Zoning CS Proposed Use Convenience Store Proposed Loh /Blocks 1 Lot, 7 Block Within a PUD? No Within an Overlay Yes; Downtown Overlay y Water Provider City of Owasso Applicable Paybacks /Fees Storm Siren Fee ($50.00 per acre) Public Streets N/A Final Plat Replat Page 2 ANALYSIS: The subject property was annexed with Ordinance 47 in 1964. A Shell gas station operated on this property for many years, but closed down approximately 3 years ago. The southern portion of the property is platted as Lot 2, Block 2 Owasso Business Park (filed in 1982) while the northern portion is unplatted. Because of this unique situation where half the property is unplatted, Lot 2, Block 2 will be re- platted for the entirety of the property. The plat will dedicate additional right -of -way along Dogwood Street and proposes two (2) entry points into the site, one from 761h Street North and one from Dogwood Street. Currently, there are a total of four (4) access points into the property. Limits -of- access (LOA) and limits- of -no- access (LNA) are shown on the plat to properly record the access points. A thirty -five foot (35') mutual access drive and twenty foot (20') water easement that run along the southern portion of the property connecting the adjoining McDonalds lot to the east will be retained. There is a twenty foot (20') utility easement that runs across the middle of the property, which will be vacated by separate instrument. Because the property had a business on it for many years, utility easements have been provided by separate instrument to bring services into the property. Due the proximity of the property in relation to the floodplain, stormwater detention is not required. The City of Owasso will provide water, sanitary sewer, Fire, Police, and EMS services to the proposed facility. Any construction that occurs on the subject property shall adhere to all subdivision, zoning, and engineering requirements of the City of Owasso. PLANNING COMMISSION: The Planning Commission will review this item at their March 9, 2020 regular meeting. ATTACHMENTS: Aerial Map Final Plat - the Replat of Lot 2 Block 2 Owasso Business Park Kum and Go # 1858 „ tC Kum and Go - b Final Plat eJ ; . s if cm L j- ^ �• � � �.. _ ° � ��, 'y h Fes{ ” '-� za � , �nc.a_ i i lY4y"'r"5 [J aY,� UI e i. FINAL PLAT OF REPLAT OF LOT 2 BLOCK 2 OWASSO BUSINESS PARK KUM & GO #1858 PART OF THE NWA OF THE NE %.OF THE NE/. SECTION 31, j TOWNSHIP 21 NORTH, RANGE 14 EAST OF I THE INDIAN BASE & MERIDIAN CITY OF OWASSO, TULSA COUNTY, OKLAHOMA � N J O a �— °.bark{ — � —am nnN K /nM W.. Yaw, ],. mx, x14 1 W14TwE S >d lair K rear Right —of —Way Dedication �\ At that part of the Northeast Quarter (NM /4) el the Northeast Qurlr (NE1 /4) al the Northeast Quarter (NEI /4) of Seatian 31. Township 21 North, Range 14 East of the Indian Base and Meridian, City of 0..... Tub. County. OMaM1ana mare prLrlony described as rdlowx Beginning at a 3/8• Iran Bar marking the Northwest inner of Lot 2. Block 2 of Qwomo Balinese Pork Plat # 4204, Instrument # 42413. Th ce 58819'4814, 12.67 feet to o Mag Nail marking the Southeast Camr of th e ball: Thence NO1'3J'16'W. 124.99 feel to a 3/8' Iran Bar marking the Northwest Comer of the ball; Thence N66'3(l 12.66 feet: Thence 50t4314T. 124.99 feel to the point o1 aegfnning. 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I � I I 11 5l VICINITY MAP rcx5 ,I I s� REAL Reople -REALC ocle, -REAL COmmunlry TO: The Honorable Mayor and City Council FROM: Karl Fritschen, MRCP, AICP, RLA Planning Manager SUBJECT: Project Application and Proposed Resolution Community Development Block Grant (CDBG FY 2020) DATE: March 6, 2020 BACKGROUND: The primary objective of the national Community Development Block Grant (CDBG) Program is the "development of viable urban communities by providing decent housing and a suitable living environment, particularly for persons of low and moderate incomes." All project proposals submitted for funding through the CDBG Program must document the achievement of at least one (1) of the following national objectives: D Provide benefit to low and moderate income persons; ➢ Aid in the prevention or elimination of slums or blight; and Meet other community development needs having particular urgency or posing a serious or immediate threat to the health or welfare of a community. ANTICIPATED FUNDING: In January 2020, the Indian Nation Council of Governments (INCOG), provided information regarding the FY 2020 CDBG application. A completed application, which includes a public hearing, resolution, and cooperation agreement, is due no later than April 3, 2020. Owasso is now part of an Urban County and as such does not compete for the funding through the State Department of Commerce. According to INCOG, Owasso will receive an allocation of approximately $133,117.11 for the FY 2020 CDBG funding cycle, which does not require a local match. PAST CDBG PROJECTS: In the past, Owasso has utilized CDBG monies for sidewalk, sanitary sewer, street, and park improvements. In 2014, Housing of Urban Development (HUD) changed the income limits that determined if individuals and families qualified as a low to moderate income household. As a result, Owasso lost much of its former qualifying area in and around the original town area, leaving only a small area around the Baptist Village neighborhood. Owasso staff performed income surveys for smaller targeted geographic areas in the summer of 2015, qualifying the Hale Acres neighborhood near North Garnett Road and East 116 +h Street North for a five (5) year period. Since the Hale Acres neighborhood qualified for funding under the revised HUD income limits, the City has utilized CDBG funds from the FY 2016, 2017, 2018 and 2019 allocations for replacement of sanitary sewer lines in this neighborhood. Staff is proposing to continue utilizing the funds for replacement of the sanitary sewer lines in Hale Acres. Staff was also informed by INCOG that the survey used to qualify this neighborhood will expire in July 2020. Therefore, this year's funding will be the last allocation that the City will be allowed to use in the Hale Acres neighborhood before having to perform another income survey in the fall of 2020. PUBLIC HEARING: Staff consulted with INCOG regarding the requirement of holding a separate Public Hearing and was told that "since the project is a continuation of the same activity that the City has been doing for several years in the same location, then no separate Public Hearing is required ". PROPOSED FY2020 PROJECT: The proposed project is a continuation of the replacement of deteriorated 8" clay the sanitary sewer pipe in the Hale Acres subdivision. This project will replace the existing sewer lines in the back of the lots between East 112th Place North and East 113th Street North between North 106th East Avenue and North 112th East Avenue. The existing 8" clay pipe will be replaced with approximately 1,000 linear feet (LF) new HDPE 8" inch pipe. The segment on the north side of East 1 13th Street North will also be replaced with 1,000 LF of new pipe, should funds allow. The work, which will be considered Phase III of the Hale Acres sewer improvements, will involve pipe bursting. The work will continue to address many years of inflow and infiltration issues in this area of Owasso's collection system that was originally installed in the 1960s. The project will be designed in -house by the Engineering Division of Public Works. A map has been provided with this memo indicating the general location of the proposed improvements. PROPOSED ACTION: An item has been placed on the March 10, 2020 work session agenda for discussion of a proposed Resolution requesting assistance from the Tulsa County CDBG Urban County Program, and an application identifying the installation of new sanitary sewer lines in the Hale Acres subdivision as the preferred project for the FY20 funding cycle. ATTACHMENTS: CDBG Application Map - Owasso CDBG Sanitary Sewer Replacement Locations FY2020 APPLICATION GUIDANCE Due date for this Application is April 3, 2020 The CDBG program is authorized under Title I of the Housing and Community Development Act of 1974, as amended. The purpose of this Application Guidance is to provide assistance in preparing a Community Development Block Grant application for the FY2020 Tulsa County CDBG Urban County Program. Eligible Entities Entities included for FY2020 funding, the funding allocation to the entity, and the percentage of low and moderate income population for each is listed below: Proposed Percentage Threshold Requirements for FY2020 Metro City Applications Due to HUD'S desire for all Entitlements to dramatically increase their expenditure rates and failure of select Entities to expend funds in a timely manner, the following expenditure criteria have been established and will be implemented for the FY2020 Application cycle. To submit an application for FY2020, communities with open Metro Entities contracts must comply with the following Threshold Requirements: 100% of 2017 grant expended; 50% of 2018 grant expended and reimbursement request submitted; 2019 obligated through bid award or design process underway (documentation required). If the above expenditure requirements have not been met by April 1, 2020, the community will not be eligible to submit an application. Staff will determine re- allocation of funds. Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 1 of 6 Allocation Low /Mod Metro Entities Amount Population Broken Arrow Infrast. $399,943.39 28.43 Bixby $82,972.41 23.03 Owasso $133,117.11 26.66 Sand Springs $96,302.91 38.12 Sapulpa $158,129.03 49.54 Revolving Entities Skiatook $117,630.50 42.64 Sperry $117,630.50 49.56 Threshold Requirements for FY2020 Metro City Applications Due to HUD'S desire for all Entitlements to dramatically increase their expenditure rates and failure of select Entities to expend funds in a timely manner, the following expenditure criteria have been established and will be implemented for the FY2020 Application cycle. To submit an application for FY2020, communities with open Metro Entities contracts must comply with the following Threshold Requirements: 100% of 2017 grant expended; 50% of 2018 grant expended and reimbursement request submitted; 2019 obligated through bid award or design process underway (documentation required). If the above expenditure requirements have not been met by April 1, 2020, the community will not be eligible to submit an application. Staff will determine re- allocation of funds. Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 1 of 6 Applications should be submitted to: INCOG Claudia Brierre 2 West 2nd Street, Suite 800 Tulsa, OK 74103 cbrierre(cD incoq, o rg National Objective The primary National Objective of the Community Development Block Grant (CDBG) Program is the "development of viable urban communities by providing decent housing and a suitable living environment, particularly for persons of low and moderate incomes." All project proposals submitted for funding through the CDBG Program must document the achievement of at least one of the following National objectives: • Provide benefit to low and moderate income persons. • Aid in the prevention or elimination of slums or blight. • Meet other community development needs having particular urgency, posing a serious or immediate threat to the health or welfare of a community. Most CDBG applicants qualify their project activities under the National Objective of benefit to low and moderate income persons. Applicants are cautioned that qualifying a project under slum or blight or urgent need is a difficult process that has very limited application and can only be used under special conditions and circumstances. Therefore, you are urged to qualify your proposal under benefit to low and moderate income persons. Applicants who qualify a proposal using slum and blight or urgent need must receive guidance and approval from INCOG. To qualify for CDBG funding under the National Objective of benefit to low and moderate income persons, the proposed project activities must show a positive or general improvement of living condition in a definable geographic target area where at least 51 % of the occupied households /homes are of low and moderate income families. Low and moderate income families have an income equal to or less than the current Section 8 low income limits established by the United States Department of Housing and Urban Development (HUD). Each activity proposed for funding with Community Development Block Grant(CDBG) dollars claiming the National Objective of benefit to low and moderate income persons, must provide data indicating the percentage of low and moderate income beneficiaries. Application Criteria 1. No matching funds are required. Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 2 of 6 2. No administration expenses will be funded with CDBG funds. 3. When planning projects for FY2020, be aware that accumulating more than 2 years of grant funding is not permitted. 4. Engineering is a permissible use of CDBG funds but competitive procurement requirements must be followed 5. Income surveys of the project target area must be conducted. The use of Census Tract or Block Group data to document the percentage of low and moderate income beneficiaries for any CDBG funded activity should receive prior INCOG review and approval. 6. Applicants must hold an application phase Public Hearing informing citizens of the proposed project and submit documentation of the Public Hearing with this application. Notice must be given at least 15 days prior to the public hearing by publication in jurisdiction newspapers; or by posting at city halls. Acceptable documentation consists of the affidavit of publication or a copy of the newspaper article announcing the public hearing, or copy of certified posted notice. Tulsa County has prepared a Citizen Participation Plan on behalf of the Urban County communities; therefore, the individual community does not need to prepare a full Citizen Participation plan. 7. Specific projects identified in the application must have cost estimates derived from professional sources. Water and wastewater projects that require Oklahoma Department of Environmental Quality construction permitting must have certified cost estimates from a professional engineer licensed to work in Oklahoma. For other types of projects, professional cost estimates may be derived from architects, engineers, vendors, construction companies, or appropriate personnel qualified to make such estimates. Use of Funds The CDBG Program funds a broad array of projects and activities including but not limited to the following: • Water and wastewater system improvements • Solid waste • Fire protection • Streets Neighborhood Parks • Housing activities including construction, emergency repair, rehabilitation • Acquisition of real property for eligible public purposes • Clearance, demolition and removal of buildings and improvements Senior citizen centers Gas and electrical system improvements Removal of architectural barriers associated with handicapped areas • Storm water drainage improvements • Economic Development Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 3 of 6 • Social services- (City of Broken Arrow only) Construction of ADA Sidewalks in non -low /mod census tracts is not an eligible project. Guidance regarding eligibility requirements can be found in 24CFR 570.201 of the Federal Housing and Community Development Act of 1974, as amended. Proposal Guidance Applicants are encouraged to contact the staff persons listed below with questions regarding program requirements, project conceptualization, or any portion of the Application Packet and /or Guidelines. Claudia Brierre 579 -9431 Barbara Albritton 579 -9420 Steve Boettcher 579 -9453 Megan Douglas 579 -9483 Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 4 of 6 Section Two Required Application Documents 1. Application Summary This form contains information about the specific project and includes a certification from the local government attesting to the accuracy and completeness of the application. The certification form must be completed and signed by the chief elected official of the local government. 2. Line Item Budget (Application Form Attachment A) The description of project activities along with a budget (form provided as Attachment A) should be as specific as possible as they will form the basis of your contract. This Budget should match Professional Cost Estimates submitted with the application. 3. Direct Project Beneficiary Income Survey (Survey Summary Form Attachment B) Income surveys for each proposed CDBG funded activity are a requirement unless using census tract or block group data. Determination of project beneficiaries: City -wide- An activity which will serve the entire city (such as wastewater treatment), provided that the city has a low and moderate income percentage at or above 51 %. If the LMI percentage is below 51%, an income survey with a 75% response rate must be provided. Area benefit- An activity which benefits all the residents in a particular area where at least 51 percent of the residents are low and moderate income persons. Examples would include resurfacing of a collector street or construction of a fire department substation. Direct benefit- An activity which requires information on household size and income so that it is evident that at least 51 percent of the clientele are persons whose household income does not exceed the low and moderate income limit; or an activity which has income eligibility requirements which limit the activity exclusively to low and moderate income persons. Presumed benefit- Benefit a clientele that is generally presumed to be principally low and moderate income persons. Activities that exclusively serve a group of persons in any one or a combination of the following categories may be presumed to benefit 51 percent low- and moderate - income persons: abused children, battered spouses, elderly persons, adults meeting the Bureau of the Census' Current Population Reports definition of "severely disabled," homeless persons, illiterate adults, persons living with AIDS, and migrant farm workers. Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 5 of 6 Guidelines to identify specific beneficiaries for various activities: • Water or Wastewater Line Replacement or Rehabilitation. Those households directly tapped to or receiving improved service from the lines. Generally, beneficiaries are considered those persons residing in houses who receive their water through new, replaced or upgraded lines, or houses that discharge sewage into or through an improved collection line or main en route to the treatment plant. • New Wastewater or Water Extensions to Previously Un -served Areas. The households /homes that will actually be connected to the wastewater or water line extensions. Service to newly- constructed subdivisions will not be funded due to environmental review requirements. • Flood and Drainage Improvements. Households /homes within the recognized drainage basin. • Fire Protection. Households /homes (buildings, vehicles and equipment) residing within the response area of the fire station; or using actual residential calls made by a fire station over the prior 12 month period, conduct a survey of those residences obtaining no less than 75% response rate. • Senior Citizen Centers and Community Centers. Households /homes within the designated service area of the proposed center. If there is only one center in the community, the service area can be considered to be the entire community. If there is more than one center, then the Applicant must delineate the service area of each center. Senior Citizen Centers are presumed to benefit low and moderate income persons. • Demolition /Clearance /Removal of Junk and Debris and/or Abandoned Inoperative Vehicles. Households /homes within the geographic area designated to receive the focus of the demolition, clearance and /or removal activities. Typically, the properties located within the geographic area designated to receive the demolition /removal activities are considered to be beneficiaries. • Provision of Accessibility for the Handicapped to Public Buildings. The households /homes within the geographic area that receive services from the assisted public building(s). Providing handicapped access to a city hall would provide benefit to the households /homes in the entire city. Proposed handicapped access activities in connection with limited clientele facilities are presumed to benefit low and moderate income persons. • Street Improvements /Sidewalk Improvements. The households /homes that have at least one property line abutting the improvement. Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 6 of 6 4. Identification of Other Project Funding Sources (Application Form Attachment C) Match and leverage are not required for the grant, but should be identified if applicable to the project. 5. Certified Engineering Reports and Professional Cost Estimates (Application Form Attachment D) Water and wastewater projects that require Oklahoma Department of Environmental Quality construction permitting must have certified cost estimates from a professional engineer licensed to work in Oklahoma. For projects not requiring DEQ permits, professional cost estimates must be derived from architects, engineers, vendors, construction companies, or appropriate personnel to make such estimates, and submitted with the application. 6. Applicant Resolution (Application Form Attachment E) Applications must include a Resolution passed by the governing body requesting CDBG assistance from the Tulsa County Urban County program. A sample Resolution is provided as Attachment E of the application. 7. Readiness To Proceed (Attachment F- Applicant Provides own Form) Applications must include an anticipated start date and projected timeline for completion. Documentation of the level of readiness to proceed must be submitted. Guidance Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 7 of 6 TULSA COUNTY URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Required Documents to be submitted with Applications ✓ W -9 Form ✓ Documentation of Current Registration in SAM ✓ Public Hearing Documentation: Affidavit of publication or certified posted notice. ✓ Application Summary Page which includes • Project Title • Detailed Project Description • Map with target area and Census Tract/BG clearly marked • Number of population served • Census Tract(s) and Block Groups(s) identified ✓ Application Certification ✓ Attachment A: Line Item Budget ✓ Attachment B: Income Survey Summary Form • Completed form if Income Survey • LM Percentage ( %) if using CT /BG data ✓ Attachment C: Other Project Funding Sources ✓ Attachment D: Certified Professional Cost Estimates /Engineering Report ✓ Attachment E: Resolution ✓ Attachment F: Project Timeline Application Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 1 of 2 TULSA COUNTY URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Name of Unit of Local Government Mailing Address PO Box 180 Physical Address Owasso, OK Phone Number 200 South Main City of Owasso, Oklahoma Zip Code +4 74055 -0180 918.376.1515 Fax # 918.376.1597 FEW 73- 6069613 DUNS 013786215 Chief Elected Official Mavor Chris Clerk Ms. Julie Stevens 2. Name of Staff Contact Karl A. Fritschen Phone Number 918.376.1545 E -mail kfritschen @cityofowasso.com 3. Project Title, Detailed Description of Project (Attach additional detail as needed. Provide Map) Hale Acres Sewer Line Replacement The FY 20 Owasso CDBG project is continuation of the replacement of the deteriorated 8" clay tile sanitary sewer pipe in the Hale Acres subdivision. This project will replace the existing sewer lines in the back of lots between E 112t1 PI N and E 113th St N between N 106' E Ave and N 1121 E Ave. The existing 8" clay pipe will be replaced in these locations with approximately 1,000 linear feet (LF) new HDPE 8" inch pipe. The segment on the north side of E 113th St N will also be replaced with 1,000 LF of new pipe, should funds allow. The work, which will be considered Phase III of the Hall Acres sewer improvement, will involve pipe bursting and replacement of the old clay pipe with the new pipe. The work will continue to address many years of inflow and infiltration issues in this area of Owasso's collection system that was originally installed in the 1960s. The attached map depicts the location of said projects. (See Attached Map) Engineering, design, bid advertisement, and construction inspections will take place with City personnel, so the entire grant amount plus any additional City portion will be used solely for installation of the new pipe. Upon environmental clearance, the City will bid the project in accordance with competitive bidding laws and requirements and Davis - Bacon. Based on past CDBG projects, it is expected that this project will be bid in the late fall or early winter of 2020. Application Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 2 of 2 4. Number of population served: ❑ Census Tract /Block Group # ❑ Household Income Survey 5 Project Budget Summary: CDBG Funds (FY 20) Other Sources Total *Pending Council approval Application Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 3 of 2 Hale Acres *City of Owasso $ 133,117.11 $ 134,000 41 TULSA COUNTY URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) APPLICATION CERTIFICATION The Applicant hereby certifies that all of the information contained in this application for community development assistance through the Tulsa County CDBG Urban County Program is true and accurate to the best of my knowledge and that all documentation supporting the information in this application is on file in the official offices of this unit of local government, available for review by Tulsa County /HUD during normal business hours. The Applicant also affirms that none of the activities set forth in this application have been initiated, nor shall they be initiated unless a grant has been awarded, a contract fully executed, and notice has been issued by Tulsa County that release of funds requirements have been met. Dr. Chris Kelly. Mayor (Type) Name and Title of Chief Elected Official Date: [SEAL) Signature of Chief Elected Official State of Oklahoma County of Attest: Subscribed and sworn to before me 2020 Application Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Page 4 of 2 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2020 TULSA COUNTY URBAN COUNTY BUDGET Name of Applicant: Itemized Description of Funding Source Construction Activity CDBG Grant Replace approx. 2,000 feet of 8" clay $133,117.11 SS Pipe with new 8" HDPE pipe in Hale Acres Total Construction Activity $ 133,117.11 Professional & Non Construction Engineering /Architect Funds Inspection Funds Other: Survey Other: Publishing Total Professional & Non Const. $ - Administrative Costs Public Administrative Funds $ - - - - - -- Direct Administrative Funds $ - - - - - -- Total Administrative Costs $ - Total Project Costs $133,117.11 Funding Source City $134,000.00 $ 134,000.00 $134,000.00 Funding Source Other ATTACHMENT A Total Project Expenditures $267,117.11. 2020 Tulsa County CDBG Urban County If additional is space needed, attach additional sheet(s) Budget COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) TULSA COUNTY URBAN COUNTY DIRECT PROJECT BENEFICIARY INCOME SURVEY SUMMARY FORM Activity Name: ENUTTRUN FA TWE COMPLETE THIS SECTION BY PLACING THE TOTAL NUMBER OF HOUSEHOLDS OBTAINED FROM THE HOLISFHoi n RHRVFY IN FA(..H APPROPRIATE cCN MAN AN Insert County Income Levels $37,600 $43,000 $48,350 $53,700 $58,000 $62,300 $66,600 $70,900 Number of People in Each Household 1 2 3 4 5 6 7 8 Below or Above the County Income Levels Below Above Below Above Below Above Below Above Below Above Below Above Below Above Below Above Total Number Of Households 19 ; 2 27 7 35 1 3 33 2 26 2 11 0 3 1 1 0 0 I hereby certify that the Total Number of Occupied Households /Homes in Activity Target Area = 218 Total Number of Persons in Activity Target Area = 816 Total Number of Occupied Households /Homes Surveyed in Activity Target Area = 171 Total Number of Persons Accounted for by the Survey in the Activity Target Area = 577 Total Number of Households Below the Low and Moderate Income Level in the Activity Target Area = 154 Percentage of Total Households Below the Low and Moderate Income Level in the Activity Target Area = 90.1 % was obtained from the occupants of the addresses listed and City -wide Low and Moderate Income Level (For use only when projects are of City -wide benefit.) Signature of Chief Executive Official [Seal] Subscribed and sworn to before me Commission Community Development Block Grant (CDBG) 2020 Tulsa County Urban County Beneficiary Income Survey Summary - Attachment B Date 20 _. My commission expires Clerk /Notary Signature accurate• HUD Census Data for Low and Moderate Income Level for Block Groups, Enumeration Districts or Census Tracts as Provided by HUD (For use only when a project's target area boundaries are identical to BG, ED or Tracts) % 20. Attachment C COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) TULSA COUNTY URBAN COUNTY INDENTIFICATION OF OTHER PROJECT FUNDING SOURCES Federal /State participation, if any (loans, grants, etc.) provide commitment letters. Agency Purpose Amount Present Status Comment Other sources and amount of project financing including applicant's local contribution, if any. Agency Purpose Amount Present Status Comment City of OWasso,OPWA CDBG funds Augment g $134,000 Pending Council Approval ri Chief Elected Signature Other Funding Sources — Attachment C Community Development Block Grant 2020 Tulsa County Urban County Page t of 1 Date ATTACHMENT D COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2020 TULSA COUNTY URBAN COUNTY Attach Certified Professional Cost Estimates /Engineering Report (where applicable) 2020 Hale Acres CO8G Sevier Line Replacement, Phase III Prepare by, Owasso Public Works 2 125/2020 Item Number Item Description Amount Unit Unit Cost Total Cost 1 Mobilization /Demobilization 1 LS 50DO $5,000 2 Construction Staking 1 LS 2500 $2,500 3 Traffic Control /Safety Signage 1 LS 1000 $1.000 4 Insurance and Permits 1 LS 1000 $1,000 5 RND of Old Sewer Line 2000 LF 2 $4,000 6 RND of Old Manholes 5 EA 150 S750 7 8 -inch HDPE (Pipe Burning) 2000 LF $100 5200,000 8 Manholes 5 EA 1500 $7,500 9 Extra Deep manholes 15 VF 160 $2,400 10 4" Service Tap 20 EA 750 515,000 it Reconnect Sewer Line 2 EA 2000 $4,000 12 Restoration 20DO LF 3 $6,000 13 Projettallowance 1 LS 20000 $20,000 Total $269,150 HALE ACRES SUBDIVISION ATTACHMENT E CITY OF OWASSO RESOLUTION 2020- COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2020 TULSA COUNTY URBAN COUNTY WHEREAS, the Housing and Community Development Act of 1974, as amended (24 U.S.C. 93- 383 et seq.), (the "Act'), provides that Community Development Block Grant, ( "CDBG'), funds may be used for the support of activities that provide decent housing and suitable living environments and expanded economic opportunities principally for persons of low- and moderate - income; and, WHEREAS, CDBG Regulations 24 CFR 570.307(a) allow counties having a total combined population of 200,000 or more from the unincorporated areas and participating incorporated areas to qualify as an urban county; and, WHEREAS, Title I of the Housing and Community Development Act of 1974, Public Law 93 -383, as amended, authorized the Secretary of Housing and Urban Development, as a representative of the United States of America, to grant to Tulsa County funds and administrative responsibility for the Tulsa County CDBG Urban County program; and WHEREAS, a Cooperation Agreement between Tulsa County and the City has been executed for the purpose of participation in the Tulsa County Urban County Community Development Block Grant Program for Federal Fiscal Years 2020 -2022; and, NOW THEREFORE, BE IT RESOLVED by the Owasso City Council that the City of Owasso desires to obtain assistance in addressing community development needs and hereby requests the Tulsa County CDBG Urban County program to provide assistance. NOW THEREFORE, BE IT FURTHER RESOLVED by the Owasso City Council that the City of Owasso affirms its commitment to take all action within its power to facilitate the receipt of the assistance of community development funds, and upon receipt to administer said grant by the rules and regulations established by the United States of America, the State of Oklahoma, Tulsa County and all empowered agencies thereof. ADOPTED this day of , 2020, at a (regularly or specially) scheduled meeting of the governing body, in compliance with the Open Meeting Act, 25 O.S. §§ 301 -314 (2001). (Type) Name and Title of Chief Elected Official Signature of Chief Elected Official Attest: Subscribed and sworn to before me Clerk Signature 2020 (SEAL) ATTACHMENT F COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 2020 TULSA COUNTY URBAN COUNTY Attach Project Timeline which clearly demonstrates Readiness To Proceed, including an anticipated start date and projected timeline for completion. Documentation of the level of readiness to proceed must be submitted. The project will involve entering people's back yards with equipment in some locations. The sewer lines are in recorded easements, so obtaining new easements will be unnecessary. This will expedite the work. Pipe bursting will be the method of replacement for the sewer lines which will minimize disturbances to property and also expedite the project. Below is the anticipated project schedule as of the date of this writing. Environmental Clearance - Summer 2020 • Initiate Contract - Fall 2020 • Initiate Design - Fall of 2020 • Bidding - Early winter 2021 HALE ACRES SUBDIVISION =� 9 I rI _ n – - - - .e:1ien; -s _ — _._ 116TH ST. N. W i Phase III (Purple Lines) – FY 20 funds i i z i OWASSO SPORTS X PARK .11 E 113th f'1 N lu — 111 ,t N -, ' 0 _ H_ AI F Ar..RFS u: Phase II (Blue Lines) - Planned project Completed not using — using FY 18/19 funds plus carry over CDBG funds amount from FY 16/17 funds ti>II _Ct A: oo Phase I (Green Lines) FY 16/17 CDBG funds. Approx. $5,200 left to 1'.1 ... apply to Phase II project (Blue Lines) tt fh PI N_ -- '1 400 m c 110th t N' rV S000 ft a- �, •� �,,_ F Nnm St.N ..- .a sd REAL Paoplo • REAL CM1amclar • REAL Communlry TO: The Honorable Mayor and City Council FROM: Michele Dempster Human Resources Director SUBJECT: City Manager Contract and Evaluation Process City Attorney Contract and Evaluation Process DATE: March 6, 2020 CITY MANAGER CONTRACT AND EVALUATION PROCESS: In June 2019, the City Council and the City Manager entered into a two year contract, continuing Mr. Lehr's position as City Manager, a position he has held since 2014. The second year of Mr. Lehr's two year contract requires ratification by the City Council. Based on the evaluation process modified and established last year the City Manager evaluation will include the following: • An anonymous online evaluation completed by the Directors, with a corresponding self - evaluation completed by the City Manager. • An online evaluation completed by the City Council, with a corresponding self - evaluation completed by the City Manager. • And a City Manager self- evaluation addressing current goals, future goals, obstacles, and achievements. TIMELINE: Staff will initiate the online evaluations at the end of March and schedule an Executive Session to discuss the evaluation and contract ratification with the City Manager during the May 12 Work Session. Prior to the May 12 Executive Session, the City Council will receive the following: • Results from the Directors online evaluation along with the comparison of differences between the Director's average assessment and the City Manager's Self- Assessment. • Results from the City Councils online evaluation along with the comparison of differences between the City Council's average assessment and the City Manager's Self - Assessment. • City Manager's self - evaluation addressing goals and accomplishments for the evaluation period. This timing will allow City Council the opportunity to discuss ratification of the second year of the City Manger's contract prior to June 30. While no action is required for this item, the purpose is to provide an overview of the process and give the City Council the opportunity to provide feedback and input. CITY ATTORNEY CONTRACT AND EVALUATION PROCESS: The contract between the City and the City Attorney expires June 30, 2020. An Executive Session will be placed on the May 12 City Council agenda to review and discuss the City Contract and Evaluation Process Page 2 Attorney's evaluation and contract renewal. Prior to May 12, the City Council will be provided questions to guide performance evaluation discussions between the City Council and the City Attorney. This timing will allow the City Council the opportunity to discuss renewal of the City Attorney's contract prior to June 30.