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HomeMy WebLinkAbout2024.03.12_Worksession AgendaThis meeting Is a worksession for Council /Trustee discussion only. There is no opportunity for public comments at worksession. PUBLIC NOTICE OF THE JOINT MEETING OF THE OWASSO CITY COUNCIL OWASSO PUBLIC WORKS AUTHORITY (OPWA) OWASSO PUBLIC GOLF AUTHORITY (OPGA) Council Chambers Old Central Building 109 North Birch, Owasso, OK Tuesday, March 12, 2024 - 6:00 PM NOTE: APPROPRIATE ACTION may include, but is not limited to: acknowledging, affirming, amending, approving, authorizing, awarding, denying, postponing, or tabling. AGENDA RECEIVED 1. Call to Order - Mayor /Chair Kelly Lewis MAR 0 8 2024 2. Roll Call City Clerk's Office 3. Presentation and discussion relating to the Economic Development Strategic Plan (EDSP) Annual Report Chelsea Levo -Feary 4. Discussion relating to the agreement for economic development services between the Owasso Chamber of Commerce and the City of Owasso Chris Garrett 5. Discussion relating to bids received for the construction of the Morrow Gravity Sanitary Sewer Extension Dwayne Henderson 6. Discussion relating to the funding of the Morrow Gravity Sanitary Sewer Extension Carly Novozinsky 7. Discussion relating to the annual review of the Owasso Utility Rate Study, Five -Year Utility Rate Plan Carly Novozinsky 8. Discussion relating to the monthly sales and use tax report and revenue outlook Carly Novozinsky 9. Discussion relating to the 2024 Community Development Block Grant (CDBG) Program funding, a review of comments received during the public meeting, and a proposed project Alexa Beemer 10. Discussion relating to proposed revisions to the City Council Code of Ethics and Conduct Policy Julie Lombardi 11. Discussion relating to the annual elections of Mayor and Vice Mayor / Chair and Vice Chair Mayor Lewis 12. City /Authority Manager report 13. City Councilor /Trustee comments and inquiries 14. Adjournment Notice of Public Meeting filed in the office of the City Clerk on Friday, December 8, 2023, and the Agenda posted at City Hall, 200 South Main Street, at 12:00 n Friday, March 8, 2024. J liann M. Stevens, City Clerk The City of Owasso encourages citizen participation. To request an accommodation due to a disability, contact the City Clerk prior to the scheduled meeting by phone 918 - 376 -1502 or by email to istevens @cifvofowosso.com TO: The Honorable Chair and Trustees Owasso Public Works Department (OPWA) FROM: H. Dwayne Henderson, P.E., City Engineer SUBJECT: Bid Review - Morrow Gravity Sanitary Sewer Extension DATE: March 8, 2024 BACKGROUND: • March 2023, Thiessen North Investment Group, LLC hired Kellogg Engineering to perform a study of the basin and design of the gravity sanitary sewer line to accommodate the future estimated sanitary sewer flow within the basin. The project was named Morrow Gravity Sanitary Sewer Extension • November 2023, City Council adopted Ordinance 1217, establishing the 2023 Morrow Gravity Sanitary Sewer Extension Assessment Area for funding assistance for the future capacity of properties • December 2023, prepared and permitted plans were submitted to the City of Owasso for public bidding of the sewer line project • December 2023, staff received easement documents for 2 needed parcels • February 2024, staff advertised the project for bids in accordance with state statutes and conducted a pre -bid conference to present the project to contractors and answer any questions • The bid opening occurred March 7, 2024 and the bids are being reviewed SCOPE OF WORK: The project consists of the following: • Construction of a new sewer line east of the Morrow Lift Station north of East I I 61 Street North and extends eastward toward US Hwy 169; • Sewer line will be bored and cased under US Hwy 169 as approved by the Oklahoma Department of Transportation; • Project will parallel the east side of US Hwy 169, across to the west side of the Casement property and extend southward toward the Saint Francis facility and east service road; • Sewer will turn eastward and extend to the Thiessen North property and continue toward North 145th East Ave (See location map). FUNDING: Funding for the project is available in the OPWA Fund. PROPOSED ACTION: Staff intends to present this item for discussion at the March 12, 2024, Council Worksession meeting. ATTACHMENT: Location Map H30. 7 �L r 1, _043cimno1- 04': t 13SV0� I"'0i�pr Morrow Sewer Line Extension LZLNU S`14IN �± - Z w L IIL1GNU 1711 JA 06 -row Bern. z 3 + — —r r p• r , :mn j ah xIL ti C,ase n n u��,;.,,+ — t i. Z : > Q w + X trnj T"L ow Sewer Extension 3 H01 o9il e�il -ion I E- 1'16TFI ST 'N -- 092 At1- 1:1.z. . OdlUivIH02 A > P "f1'6T1`I "ST° I �`r w. 1" = 700 ft =cation Map 03/01/2024 sQ 0,_ dlb • R�6LL C.R.n.Np This map may represents a visual display of related geographic information. Data provided here on is no; guaramee of actual field conditions. To be sure of complete accuracy, please comactthe responsible staff for most up-to-date information. TO: The Honorable Chair and Trustees Owasso Public Works Authority (OPWA) FROM: Carly Novozinsky, Finance Director SUBJECT: Supplemental Appropriation - Morrow Gravity Sanitary Sewer Extension DATE: March 8, 2024 BACKGROUND: In order to accommodate the sanitary sewer needs for future residential and commercial development from East 116th Street North to East 126th Street North and approximately North 135th East Avenue to North 145th East Avenue, 4,400 linear feet of gravity sanitary sewer line needs to be installed. Funding for this project is available in the Owasso Public Works Authority fund balance, however, a budget amendment is needed before a construction bid can be awarded. On November 7, 2023, City Council approved Ordinance 1217 establishing the 2023 Morrow Gravity Sanitary Sewer Extension Assessment Area. Once the construction phase of this project is completed, a per acre fee will be assessed upon all developments within the 2023 Morrow Gravity Sanitary Sewer Extension Assessment Area. As the area is developed, and the assessment fees are collected, the OPWA fund balance will be reimbursed for the up -front cost of construction. This item has been placed on the March 12, 2024, Worksession agenda for discussion. sd REAL People • REAL Character • REAL Community Owasso Public Works Authority Utility Rate Annual Report December 31, 2023 Table of Contents Introduction......................................................................................................... ..............................3 Whereare We Now? ................................................................................................... ..............................4 Major Considerations in Making Utility Rate Recommendations .................................... ..............................5 Statement of Revenues, Expenses, and Changes in Net Position — OPWA .................. ..............................6 OPWA Utility System Debt Service Payments ........................................................... ..............................7 WaterSystem ...................................................................................................... ..............................8 Average Water Customers per Year ....................................................................... ..............................8 WaterConsumption ............................................................................................. ..............................9 WaterBilling Rates ................................................................................................ .............................10 Water Revenue by Customer Type ....................................................................... ..............................1 1 SewerSystem ...................................................................................................... .............................12 SewerRates ........................................................................................................ .............................12 HistoricalUtility Rates ........................................................................................... .............................13 Comparative Residential Utility Rates .................................................................... .............................14 Five -Year Utility Rates ............................................................................................ .............................15 2 Introduction The City of Owasso provides water, sewer, refuse, recycling, and stormwater management services to residents. The Stormwater Fund and the Owasso Public Works Authority (OPWA) began operating at a loss in fiscal year 2014, necessitating the implementation of a 5 -year utility rate plan in 2016 (extended by City Council in 2021) to restore fund balances and 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 this plan were computed based on both assumptions regarding annual increased costs of labor and materials, and annual increased cost of water purchased from the Tulsa Metropolitan Utility Authority (TMUA). The 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. In order to maintain a healthy fund balance that is capable of sustaining operations and providing uninterrupted service to customers, the City reviews the differences in actual costs versus projected costs each year, while also monitoring capital needs. 3 Where are we now? 1. Water purchase costs from the Tulsa Metropolitan Utility Authority (TMUA): • Prior to fiscal year 2016, the rate charged to the City by TMUA had increased by 58% over the previous 9 years. • Since the implementation of the 5 -year rate plan in fiscal year 2016, the rate has increased 1.7 %. 2. The following major capital improvements funded to date: • Wastewater Treatment Plant Expansion - $24.3 million • Ranch Creek Sewer Interceptor Upgrade - $6.2 million • Coffee Creek Sewer Lift Station Upgrade - $5.5 million • 1 17th Street Force Main Upgrade - $3.0 million • Elm Creek Interceptor Upgrade - $2.0 million • Various Water Projects - $1.2 million • Owasso Market Gravity Sewer Line - $1.0 million • New Public Works Facility Engineering - $1.0 million • Recycle Center Expansion - $930,000 • Refuse Truck Purchase - $380,000 3. Construction costs escalated substantially over the five -year period causing the need for additional funding. 4. To continue providing the current level of service to our citizens, the following major capital improvements and purchases, totaling approximately $51.7 million, are needed within the next five years: • Construction of a Public Works Facility - $30.0 million • Wastewater Collection Projects - $5.0 million • Regional Detention Pond - $4.3 million • Rayola Detention Pond - $4.2 million • Hale Acres Stormwater - $2.7 million • Country Estates Stormwater - $2.2 million • Other Water projects - $1.3 million • Nottingham North /South Drainage Channel Improvements - $1.0 million • Purchase of Refuse Trucks & Equipment- $1.0 million 5. Current utility fees will not enable the funding of these needed projects. Even by spreading the cost of these projects over multiple years through debt financing, additional revenues will be needed to fund the required debt service. El Major Considerations in Making Utility Rate Recommendations Some of the more important factors affecting future utility rate requirements are listed below: 1. Estimated 5% annual growth in operating costs. 2. Annual increases in labor costs. 3. Annual growth in residential and commercial customers. 4. Increased debt service payments needed to fund the capital projects to maintain current water, sewer, refuse, and stormwater services and to increase capacity for growth in population. 5. Inflationary increases in construction and material costs. 5 OPWA Operating Revenue, Expense & Debt — Accrual Basis From fiscal year 2007 through fiscal year 2016, revenues increased 59% while operating expenses increased 85 %. As a result, operations began operating at a loss beginning with fiscal year 2014, and unrestricted reserves were substantially depleted. Due to the implementation of the five -year utility rate plan, the OPWA unrestricted net position has increased enabling the City to go forward with much- needed infrastructure improvements over the next five years. The revenues in fiscal years 2021- 2023 exceeded expenses largely due to the timing of expenditures for large, on -going infrastructure projects. Additional capital projects are needed to address our growing population and to continue providing quality services to our citizens. The five -year utility rate plan will enable OPWA to fund the debt service needed to facilitate these future projects. OPWA Income (Loss) 3,000,000 2,500,000 2,504,365 2,243,730 2,000,000 _ 1,500,000 1,000,000 638,406 500,000 468,419 B- 31,648 0 ■ (500,000) -(754 (224,053) (620,651) (1.000,000) FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 From fiscal year 2007 through fiscal year 2016, revenues increased 59% while operating expenses increased 85 %. As a result, operations began operating at a loss beginning with fiscal year 2014, and unrestricted reserves were substantially depleted. Due to the implementation of the five -year utility rate plan, the OPWA unrestricted net position has increased enabling the City to go forward with much- needed infrastructure improvements over the next five years. The revenues in fiscal years 2021- 2023 exceeded expenses largely due to the timing of expenditures for large, on -going infrastructure projects. Additional capital projects are needed to address our growing population and to continue providing quality services to our citizens. The five -year utility rate plan will enable OPWA to fund the debt service needed to facilitate these future projects. OPWA Utility System Debt Service Payments $4.5 $4.0 $3.5 $3.0 o $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 �O 1� W O N (� M Q h �O 1� O O. O N M u1 n �p a O N M Q� H1 n Op P O N M elf ."' �i N N N N N N N M i+1 M M M M M M M Q u1 0 1� CD P O N (� Q �O n A oa O N M Q V] n W o- O QNQ A 4 LA A O cV A R N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N ■Issued Debt El Proposed OPWA Facility Debt Annual debt service payments for the operation of OPWA funded by utility revenues (reflected above) totaled approximately $2.8 million for fiscal year 2022, $2.9 million for fiscal year 2023, and $3.2 million for fiscal year 2024. The projected amounts for proposed debt for the new OPWA facility is projected in gray above. 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. 7 Water System OPWA currently purchases all of its treated water on a wholesale basis from the Tulsa Metropolitan Utility Authority (TMUA). OPWA is billed monthly by TMUA under a "sole source" contract. TMUA annually reviews and adjusts the price of wafer to all customers, including OPWA. The most recent adjustment was a 1.7% increase effective October 2017, bringing the rate charged by TMUA to OPWA, as of October 1, 2023, 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. Average Water Customers per Year 10,100 10,003 9,895 9,900 - 9,701 9.735 9,700 9,500 9,458 9,516 X90 9,296 9,300 9,100 8,900 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020.21 2021 -22 2022 -23 The Owasso Public Works Authority currently serves water to over 10,000 customers, not including customers billed by Rogers and Washington County Rural Water Districts. The City of Owasso has experienced a 7.6% growth in the number of water customers over the past ten years. 9 Water Consumption Water consumption is largely driven by weather and number of customers. The chart below presents water consumption information for the past ten fiscal years. Water Consumption Per Year (In Thousand Gallons) 1,000,000 969,169 950,000 938,246 924,001 913,432 Mu X95;00 - 900,000 863,420 857,567 869,209 850,000 � - -- 820,190 800,000 750,000 700,000 -- 1p N 1b 1q O A' ��' `q� ryp� ry1 > ryry Y ,y0 ,y0 ,y0 ,y0 ION ION ,y0 ,y0 '0 a Water Billing Rates The City of Owasso uses usage tier rates for the water rate. Customer billings are calculated by adding the tier usage rates per thousand gallons to the monthly base rate. Current rates were effective October 2023. Rates for customers outside City limits have been established by OPWA Resolution to be 20% greater than rates for customers inside City limits. Water Usage 2022 Rates- Inside City Limits 2023 Rates - Inside City Limits Increase 3,000 Gallons $ 28.75 $ 29.33 $ 0.58 5,000 Gallons 44.47 45.37 0.90 7,000 Gallons 60.31 61.53 1.22 10,000 Gallons 84.07 85.77 1.70 Current Water Rates $120.00 $102.92 $100.00 $80.00 At $85.77 $60.00 $54.44 $40 .00 $35.20 $61.53 $45.37 $20.00 $29.33 $- 3,000 Gallons 5,000 Gallons 7,000 Gallons 10,000 Gallons t Inside City Limits t Outside City Limits H Water Revenue by Customer Type $5,000,000 $4,500,000 — $4,000,000 $3,500,000 — $3,000,000 — $2,500,000 _ ■ Residential ■ Commercial $2,000,000 ® Fireline & City at Cost $1,500,000 $1,000,000 — $500,000 $- FY FY FY FY FY FY FY FY FY FY 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Residential $3,534,658 $3,377,415 $3,706,866 $3,727,114 $3,710,379 $3,597,217 $3,922,391 $4,550,780 $4,510,236 $4,743,047 Commercial 1,270,976 1,323,475 1,472,681 1,938,004 2,092,634 2,020,572 2,141,421 2,498,273 2,757,031 2,868,418 Fireline 8 City at Cost 284,487 247,846 336,234 314,529 445,520 488,504 384,308 583,923 490,277 514,395 Total $5,090,121 $4,948,736 $5,515,781 $5,979,647 $6,248,533 $6,106,293 $6,448,120 $7,632,976 $7,757,544 $8,125,86E- $5,000,000 $4,500,000 — $4,000,000 $3,500,000 — $3,000,000 — $2,500,000 _ ■ Residential ■ Commercial $2,000,000 ® Fireline & City at Cost $1,500,000 $1,000,000 — $500,000 $- FY FY FY FY FY FY FY FY FY FY 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 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, eight lift stations and a wastewater treatment plant at 600 S. Main. Residential customers are charged a monthly sewer charge that is based on their average usage for the year. $75.00 $65.00 $55.00 $45.00 $35.00 $25.00 $15.00 Sewer Usage 2022 Rates - Inside City Limits 2023 Rates - Inside City Limits Increase 3,000 Gallons $ 24.25 $ 25.47 $ 1.22 5,000 Gallons 33.41 35.09 1.68 7,000 Gallons 42.57 44.71 2.14 10,000 Gallons 56.31 59.141 2.83 Current Sewer Rates 3,000 Gallons 5,000 Gallons 7,000 Gallons 10,000 Gallons -4—Inside City Limits -0—Outside City Limits 12 Owasso Average Utility Rates - Effective October 15t Effective October 1st 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total 7,000 gallons WATER - Inside City $ 42 $ 45 $ 48 $ 51 $ 53 $ 56 $ 59 $ 59 $ 60 $ 62 $ 63 $ 64 Total 5,000 gallons SEWER - Inside City 22 24 25 26 27 29 30 32 33 35 37 39 Stormwater Rates 3 3 4 4 5 5 6 6 6 7 7 8 Refuse Rates 14 14 15 15 16 16 17 17 17 17 18 18 Average Utility Bill - Inside City Limits 81 86 91 1 96 1 101 1 107 112 113 117 121 1 124 128 7.0% 6.0% 5.0% 4.0%, 3.0%, 2.0% 1.0% 0.0% Owasso Utility Rate Percentage Increases 6.3% 6.2% . o 5.4% 5.2% 5.0% 3.1% 3.1% 3.1% 3.17, 1.4% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 13 Comparative Residential Utility Rates - For Customers Inside City Limits December 31, 2023 (Based on the most recent known data from each City) Utility Rates by City - Inside City Limits Glenpool Jenks Collinsville Bixby Sand Springs Owasso Broken Arrow Tulsa Total 7,000 gallons WATER - Inside City $ 59.20 $ 60.44 $ 54.54 $ 58.91 $ 52.76 $ 61.53 $ 54.04 $ 37.65 Total 5,000 gallons SEWER - Inside City 25.00 23.45 24.79 26.65 39.67 35.09 35.23 62.69 Stormwater Rates 2.00 6.00 5.00 4.00 6.15 6.50 8.89 10.63 Refuse Rates 15.82 16.35 16.04 17.60 20.58 17.45 21.75 21.46 Ambulance Fee - 3.50 10.00 1 3.60 2.25 4.00 1 6.45 5.45 Solid Waste Management Fee 0.35 - - Street Light Fee - 2.50 Total Utility Bill by City - Inside City Limits $ 102.37 $ 109.74 $ 110.37 $ 110.76 $ 121.41 $ 124.57 $ 128.86 $ 137.88 $160 $140 $120 $100 $80 $60 $40 $20 Total 2023 Average Monthly Utility Cost Glenpool Jenks Collinsville Bixby Sand Springs Owasso Broken Arrow Tulsa 14 Owasso Five -Year Residential Rates 15 Effective Oct -01 -2021 Effective Oct -01 -2022 Effective Oct -01 -2023 Effective Oct -01 -2024 Effective Oct-01 -2025 Water Rates - Inside City Base for 3/4" Meter $ 12.82 $ 13.08 $ 13.34 $ 13.61 $ 13.88 0 -1,000 gallons 1,001 -2,000 7.66 7.81 7.97 8.13 8.29 2,0013,000 7.71 7.86 8.02 8.18 8.34 3,001 -4,000 7.71 7.86 8.02 8.18 8.34 4,001 -5,000 7.71 7.86 8.02 8.18 8.34 5,001 -6,000 7.76 7.92 8.08 6.24 8.40 6,001 -7,000 7.76 7.92 8.081 8.24 8.40 Total monthly water cost for average residential at 7,000 gallons $ 59.13 $ 60.31 $ 61.53 $ 62.76 $ 63.99 Increase percent 0.07. 2.0% 2.07. 20% 2.0% Sewer Rates - Inside Base $ 10.01 $ 10.51 $ 11.04 $ 11.59 $ 12.17 0 -1,000 gallons 4.36 4.58 4.81 5.05 5.30 1,001 -2,000 4.36 4.58 4.81 5.05 5.30 2,001 -3,000 4.36 4.58 4.81 5.05 5.30 3,001 -4,000 4.36 4.58 4.81 5.05 5.30 4,001 -5,000 4.36 4.58 4.81 5.05 5.30 Total sewer for average residential at 5,000 gallons $ 31.81 $ 33.41 $ 35.09 $ 36.84 $ 38.67 Increase percent 5.17 5.0% 5.0% 5.0% 5.07 Stormwater Rates Residential (per month) $ 5.50 $ 6.00 $ 6.50 $ 7.00 $ 7.50 Commercial (per month) 6.25 6.75 7.25 7.75 8.25 Industrial (per month) 6.25 6.75 7.25 7.75 8.25 Increase percent 0.00% 9.09% 8.33%1 7.69% 7.14% Refuse Rates Residential (per cad) $ 16.95 $ 17.20 $ 17.45 $ 17.70 $ 17.95 Increase percent 0.0097 1.47% 1.45% 1.43% 1.41% Multi - family (per cart) 16.95 $ 17.20 $ 17.45 $ 17.70 $ 17.95 yardwaste (per cart) 14.95 $ 15.20 $ 15.45 $ 15.70 $ 15.95 Commercial (per cart) 18.95 19.20 19.45 19.70 19.95 Inside City Residential total $ 11139 $ 116.92 $ 120.57 $ 124.30 $ 128.11 Increase percent 1.4% 3.1% 3.1% 3.1% 3.1% Increase per month $ 1.53 $ 3.53 $ 3.65 $ 3.73 $ 3.81 15 .�� March 2024 Sales B Use Tax Report g nevi Fmpla. nOAL cm.a�m. • nay. cen,n,,..uy 545.00,000 Total Monthly Sales Tax Comparlson Year -to -Date Sales Tax Total s5g000,aoo se.SDU.= 545.00,000 s4,aso.p5e 50,S00,a00 540JM0,000 `� 505,000.0W sJ,00soso SSO,000,OOa sz,soo,00s 515,000,000 sz,a55,aaD 510.000,000 st,so5,00s 515,000,000 st.oss,000 510,000,000 SS,000pW ssro,aos S JW Ave Gap al Nev Doe J. Feb Mef Apr May Jun S JW Aue Sep di Nov Ox Jan Feb M. Apt may Jun �mw, .- -Mad —Lally.., Year -to -Date Sales Tax Total s5g000,aoo 545.00,000 540JM0,000 `� 505,000.0W SSO,000,OOa 515,000,000 510.000,000 515,000,000 510,000,000 SS,000pW S JW Ave Gap al Nev Doe J. Feb Mef Apr May Jun — m - ti•eatOW City of Owasso Total Sales & Use Tax Report Budget to Actual Comparison March 8, 2024 2023 -24 2023 -24 Actual Collections Budget Projections Over (Under) Projection Amoun Percent Amount Percent Amount Percent Jul $ 4,295,419 8.9% $ 4,082,105 8.4% $ 213,315 5.2% Aug 4,311,089 8.9% 4,264,232 8.8% 46,857 1.1% Sep 4,079,861 8.4% 4,126,962 8.5% (47,100) -1.1% Oct 4,257,747 8.8% 4,147,662 8.5% 110,085 2.7% Nov 4,093,428 8.4% 4,120,139 8.5% (26,711) -0.6% Dec 4,255,198 8.8% 4,245,038 8.8% 10,160 0.2% Jan 4,679,710 9.6% 4,625,008 9.5% 54,702 1.2% Feb 4,722,849 9.7% 4,631,229 9.5% 91,620 2.0% Mar 3,682,235 7.6% 3,716,828 7.7% (34,593) -0.9% Apr May Jun Totals $ 38,377,536 79.1% 78.2% 1.1% $ 37,959,202 $ 418,335 City of Owasso Total Monthly Sales Tax Revenues Last Five Fiscal Years 2023 -2024 2022 -2023 2021 -2022 2020 -2021 2019 -2020 Jul $ 3,809,901 $ 3,859,805 $ 3,440,377 $ 3,464,240 $ 3,005,671 Aug 3,892,331 3,888,306 3,558,829 3,386,133 2,968,434 Sep 3,629,534 3,743,687 3,522,962 3,227,732 2,969,838 Oct 3,839,191 3,767,889 3,653,860 3,093,584 3,067,281 Nov 3,686,934 3,750,140 3,443,276 3,162,417 2,855,219 Dec 3,777,373 3,854,603 3,538,043 3,214,507 3,105,262 Jan 4,107,128 4,145,010 3,890,744 3,466,684 3,399,527 Feb 4,109,253 4,055,635 4,033,475 3,406,382 3,294,059 Mar 3,270,677 3,334,731 2,990,573 2,987,980 2,677,677 Apr - 3,659,838 3,491,187 2,803,716 2,845,063 May 4,018,971 3,726,630 3,596,560 2,953,020 Jun - 3,797,070 3,678,903 3,714,051 2,907,154 $ 34,122,322 $ 45,875,686 $ 42,968,861 $ 39,523,987 $ 36,048,205 City of Owasso Total Sales Tax Report Budget to Actual Comparison March 8, 2024 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Totals 2023 -2024 2023 -2024 Actual Collections Budget Projections Over (Under) Projection Amount Percent Amount Percent Amount Percent $ 3,809,901 8.8% $ 3,700,059 8.5% $ 109,842 3.0% 3,892,331 9.0% 3,871,550 8.9% 20,781 0.5% 3,629,534 8.4% 3,739,518 8.6% (109,984) -2.9% 3,839,191 8,8% 3,756,713 8.7% 82,478 2.2% 3,686,934 8.5% 3,729,646 8.6% (42,711) -1.1% 3,777,373 8.7% 3,827,948 8.8% (50,574) -1.3% 4,107,128 9.5% 4,124,581 9.5% (17,453) -0.4% 4,109,253 9.5% 4,055,931 9.3% 53,322 1.3% 3,270,677 7.5% 3,352,286 7.7% (81,609) -2.4% $ 34,122,322 78.6% $ 34,158,232 78.7% 7—_@5,910)_ -0.1°% City of Owasso Total Sales Tax Report Two Year Comparison March 8, 2024 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Totals 2023 -2024 2022 -2023 Percent Percent Amount of Budget $ 3,809,901 8.8% 3,892,331 9.0% 3,629,534 8.4% 3,839,191 8.8% 3,686,934 8.5% 3,777,373 8.7% 4,107,128 9.5% 4,109,253 9.5% 3,270,677 7.6% Amount of Actual $ 3,859,805 8.4% 3,888,306 8.5% 3,743,687 8.2% 3,767,889 8.2% 3,750,140 8.2% 3,854,603 8.4% 4,145,010 9.0% 4,055,635 8.8% 3,334,731 7.3% Increase or (Decrease Amount Percent $ (49,905) -1.3% 4,026 0.1% (114,153) -3.0% 71,302 1.9% (63,206) -1.7% (77,230) -2.0% (37,882) -0.9% 53,617 1.3% (64,054) -1.9% $ 34,122,322 78.6% $ 34,399,807 75.0% $ (277,485) -0.8% Fiscal Year 2024 Sales Tax Budget is $43.403 million; Fiscal Year 2023 Sales Tax Budget was $43.913 million. City of Owasso Monthly Use Tax Revenues Last Five Fiscal Years Fiscal Year 2024 Use Tax Budget is $5.061 million 2023 -2024 2022 -2023 2021 -2022 2020 -2021 2019 -2020 Jul $ 485,519 $ 401,124 $ 326,380 $ 320,463 $ 224,427 Aug 418,758 363,566 404,700 308,877 213,728 Sep 450,327 425,319 318,417 319,035 258,541 Oct 418,556 357,484 392,609 322,295 211,009 Nov 406,494 406,252 339,020 325,866 212,040 Dec 477,825 422,765 368,226 353,105 226,537 Jan 572,562 478,272 487,449 406,969 280,550 Feb 613,597 574,438 509,782 493,847 404,153 Mar 411,558 378,203 330,651 291,099 187,882 Apr - 440,597 310,281 286,867 233,275 May 505,331 390,745 439,463 257,842 Jun 415,151 348,589 316,929 321,127 $ 4,255,214 $ 5,168,503 $ 4,526,849 $ 4,184,835 $ 3,031,109 Fiscal Year 2024 Use Tax Budget is $5.061 million City of Owasso Total Use Tax Report Two Year Comparison March 8, 2024 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Totals 2023 -2024 Percent Amount of Budget 2022 -2023 Percent Amount of Actual Increase or (Decrease) Amount Percent 485,519 9.6% $ 401,124 7.8% $ 84,395 21.0% 418,758 8.3% 363,566 7,0% 55,192 15.2% 450,327 8.9% 425,319 8.2% 25,008 5.9% 418,556 8.3% 357,484 6.9% 61,072 17.1% 406,494 8.0% 406,252 7.9% 241 0.1% 477,825 9.4% 422,765 8.2% 55,060 13.0% 572,582 11.3% 478,272 9.3% 94,309 19.7% 613,597 12.1% 574,438 11.1% 39,159 6.8% 411,558 8.1% 378,203 7.3% 33,355 8.8% $ 4,255,214 84.1% $ 3,807,424 73.7% $ 447,790 11.8% TO: The Honorable Mayor and City Council FROM: Alexa Beemer, AICP, Planning Manager SUBJECT: Project Application- Community Development Block Grant (CDBG 2024) DATE: March 8, 2024 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: ➢ 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: On January 26, 2024, the Indian Nation Council of Governments (INCOG) provided information regarding the 2024 CDBG application. The completed application is due no later than April 12, 2024. Owasso is a 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 estimated allocation of $159,894.62 for the 2024 CDBG funding cycle (pending Congressional approval and funding). The grant does not require a local match. HISTORY: In the past, the City of 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. HUD's formula used Census Tracts as the geography to determine if an area qualifies or does not. As a result, Owasso lost most of its qualifying Census Tracts, with the exception of the Baptist Village area. Due to the income limit change, communities were left to conduct door to door surveys to qualify smaller geographic areas within the larger Census Tracts. In 2016, staff conducted a door -to -door survey in the Hale Acres neighborhood near North Garnett Road and East 1161h Street North. The data collected from this survey met the income requirement thresholds and allowed the neighborhood to qualify for CDBG funds. The surveys are only good for 5 -year periods, and therefore in the late winter of 2021, staff performed a second door -to -door survey in the Hale Acres neighborhood. The survey results again met the income limit thresholds allowing the area to be re- qualified for another 5 -year period. Since 2017, the City has used its CDBG allocation to replace and /or upgrade sanitary sewer and water lines in this neighborhood. PUBLIC MEETING: Per INCOG, a public meeting is required in order to receive feedback concerning the proposed use of these CDBG funds. As such, said public meeting is scheduled to occur at 2pm, in the Owasso City Hall Community Room, on March 12, 2024. 2024 CDBG Application and Grant Page 2 PROPOSED 2024 PROJECT: Unlike previous years, staff intends to do a phased approach to the next portion of infrastructure upgrades that are proposed to occur in the Hale Acres neighborhood. If awarded, the City is proposing to "save" the allocated 2024 CDBG funds; these 2024 funds would then be combined with CDBG funds the City is anticipating to apply for in 2025. This would mean that no new CDBG - related project would occur in the Hale Acre neighborhood until after the 2025 CDBG application cycle. Staff has determined that by accumulating two years' worth of funding and waiting to do one larger project as opposed to two separate, smaller projects, the City will ultimately be able to reduce costs associated with bidding and mobilization. If approved, in the second half of 2025, the City plans to begin work on replacing three water lines within the Hales Acres neighborhood, along East 114th Street North, North 109th East Avenue, and North 112th East Avenue. With both the 2024 and 2025 allocation of funds, staff proposes to install approximately four thousand (4,000) linear feet of new 6" PVC water line along the aforementioned streets. This project will be a continuation of the on -going infrastructure work that has previously been completed in this neighborhood. ATTACHMENTS: Map - Owasso 2024 CDBG Hale Acres Water Line Replacement Location Copy of Public Meeting Notice 1. - nq t w din IJI 1 -d r sC� n Io t I o I RI -?� K-405 ji i II 130071(1 Ilifl ".I A.Ir,I ,,'.I' III .ild IH 0 ._� ,T cT N - R.. 1 >�'y� q 33 n ;IC i 9 •n nw �i/ 1 133 '1333 -" _ . Ill, 0 n328 3 13D� 1325 H41 EI 2 /n`' ill �1L j' 1llr 4, ib3 I,S _.c'OwA550 _ 132 i Iti_i L t: 51 II .i X61. T ] 1 w1 ETREE1132 _ 11 In I1i20; LIE 3TN CND I ,dtlly 1000�509d!�091, Izl s: 1134 ,fl�o a 6� _ itc;' 090 +. 0921 10 19) 111313 1 'l'1 rll .!r r ,� .1'910 - It I(I e` EL, Tc.F3 -106 5 10fi5 ) 10 �0' : II` 133Li < _ �. _ 1335 rL I 3' 130/ I' 1 I n!}nGl `, ro Iii -1AN IL hi l0 al °AEoti I o-'IIII ❑.,1: �`, If _ , ISIS 1 ,u iLuC• 1 c CCU 91+1 '10 0626 40628 10630'.10042 Il. vhl' ,: •>' F� 111239 II I T J*, .� J IJt IL C /_40 'I fl l Ivy_ J 1, �,P: I -2y' 123• l 11 TI 1 ' -V� 6y� 1 FILK 7 112 21 I.t,]ACRESt r1 �Ll I ,[r yy�,i r c. IWOa 1060E 106 8 IW10 IW1�2,q 106 4 16 tOfi19. 106 t •10,2? -J� ,,626 10 orb l0 9a V = 250 « Hale Acres Waterline Replacement Phase 3 F 02129/2024 yry H� Sd ThL mapmay reprov emaatiaual daplay ofrelated ga ,Nclnfwmalwn om pmllt4d Aare an M yvaramaa" eewl ?uWwndtJnl.' beaus of template ac ", pleafa[ontact tha napmalbl! � far monupto-da:l infamliri'x NOTICE OF TULSA COUNTY CDBG- COMMUNITY DEVELOPMENT BLOCK GRANT OWASSO FY 2024 PROPOSED PROJECT PUBLIC MEETING A Public Meeting will be held at 2:00 p.m., Tuesday, March 12,201-4 in the Community Room of Owasso City Hall, 200 S Main St, Owasso OK, 74055, to receive recommendations and feedback on a proposed waterline project in the Hale Acres neighborhood, as a member of the Tulsa County CDBG Urban County. The City of Owasso is planning to submit an FY 2024 application to Tulsa County. The City is anticipating on receiving an allocation of $159,894.62 in. Tulsa County FY 2024 CDBG_funds.from_the_- U.S. Department of Housing and Urban Development. Citizens are requested to participate in the Public Meeting and express their views on community development needs and on the allocation of these funds within the City of Owasso. Recommendations received will be considered by the Owasso City Council, the CDBG Urban County Policy Committee, and the INCOG staff in developing the Owasso Urban County CDBG FY 2024 application. Comments or proposals, where feasible, will be incorporated into the application to be submitted to Tulsa County by April 15, 2024. Anyone requiring special accommodations pursuant to The Americans with Disabilities Act should notify Alexa Beemer, Planning Manager, at 918 - 376 -1536. Notice filed in the office of the City Clerk and posted on the City Hall Bulletin Board at 12:00 pm on Friday, February 23, 2024. ; i &U // Vz in M. Stevens, it:31 Clerk Ctt1, C /�r ' 1p2� * *RED - Councilor Dunn's suggestions ** PURPLE - Vice Mayor Fruga's suggestions ** GREEN - City Attorney provisions from other Codes of Ethics OWASSO CITY COUNCIL CODE OF ETHICS AND CONDUCT Compliance with all Laws City Council members shall comply with the laws of the United States, the State of Oklahoma and the City of Owasso in the performance of their public duties. Such laws include but are not limited to: the United States and State of Oklahoma Constitutions; the City of Owasso Charter, laws pertaining to conflicts of interest, election campaigns, financial disclosures, open meeting law, open records law, the City of Owasso Code of Ordinances and all policies adopted by the City Council. Integrity and Accuracy City Council members are expected to perform their duties with abseli fe complete integrity. No member of the City Council shall under any circumstances make a statement for any purpose that is known by the member to be inaccurate or intended to be misleading ** "absolute integrity" could be changed to either "uncompromising integrity" or "the utmost integrity ". The former is used In the first paragraph and first sentence under "Now, Therefore... ". So using it again here would keep it consistent. Conduct of Members It is acceptable and expected that City Council members may disagree about issues brought before the Council. However, it is not acceptable for any City Council member to make derogatory comments and gestures about other Council members, their opinions or their actions. City Council members shall refrain from exhibiting abusive conduct, personal allegations or verbal attacks upon the character or motives of other members of the City Council, members of City boards or commissions, the staff and the public. City Council members shall, to the best of their ability, serve the citizens of the City of Owasso conscientiously and with honesty and impartiality. City Council members shall seek to perform their duties with diligence, efficiency and courtesy. Members of the City Council shall each make impartial decisions based upon consideration and analysis of the facts, circumstances, merits and laws of each case without taking into account unrelated considerations. ** Second paragraph, first sentence, l might suggest changing "shall avoid" to "seek to avoid Electronic Devices During Meetinas In the spirit of the Open Meeting Act and in furtherance of the City Council's commitment to conducting government business with as much order and transparency as possible, councilors shall conduct themselves during official meetings with attentiveness and without outside distraction AlAr#nn n PIAV n o holnn. nn in n GG n'Inr oh9li be f vnn.A Aff n get n GiFPIGRe It is the City Council's intent to prohibit electronic communications between members of the Council and other persons during City Council meetings. Prohibiting communications of this type enables the Council to operate with maximum transparency and allows the Council to avoid any appearance or perception of engaging in discussions or deliberations not open to the public during City Council meetings. •' something like the following to replace this entire section: While it is a common and acceptable practice for council members to use an electronic device like an iPad, Notepad, or similar to follow council meeting agendas in place of a paper copy, excessive use of cell phones or any other electronic device for talking, texting, email or otherwise during council meetings is, except for emergencies, prohibited. (Insert last sentence of existing doc that starts with "Prohibiting communications of this type... ") Respect for Process City Council members shall perform their duties with the processes and rules of order established by the City Council. Upon a "Call to Order" of the City Council meeting, Councilors will respect that a meeting is in progress and recognize that it is inappropriate to temporarily exit the meeting unless a recess or adjournment has been called by the mayor. While a meeting is in progress, Council members should refrain from having "side bar" conversations with each other or with city staff. Public Meetings City Council members have the right to personally endorse candidates for all City Council seats and other elected offices. However, it is inappropriate to mention endorsements during City Council meetings or other official City meetings or hearings. City Council members shall prepare themselves for discussions of public issues brought before the City Council. City Council members shall listen courteously and attentively to all discussion and comment on the issue by the public, City staff and other City Council members. City Council members shall refrain from interrupting other speakers unless compelled to do so to ensure compliance with City Council policies or processes for public meetings and shall additionally refrain from interfering with the orderly conduct of City Council meetings. Conflict of Interest Any member of the City Council who has a conflict of interest, financial or otherwise, in any matter brought before the City Council for consideration or action shall declare and disclose the conflict of interest to the City Council and shall not participate in discussion or voting on the matter. , . A conflict of interest involves any action, inaction, or decision by a city councilor in the discharge of his or her official duties which would materially affect his or her financial interest or those of his or her family members or any business with which the councilor is associated or has an ownership interest. The minutes of a meeting wherein a declaration of a conflict was made shall not record a vote on behalf of a City Council member who leaves the room during discussion and voting upon the issue. The minutes of such meeting shall, however, record a "no" vote if the City Council member remains in the room and abstains from voting, such recordation being in accordance with Oklahoma State Law and the Owasso Code of Ordinances. Giffs and Favors City Council members shall not directly or indirectly solicit, receive or accept any gift if 1) a reasonable inference could be drawn that the gift was intended to influence them in the performance of their official duties, or, 2) the gift is intended to serve as a reward or in appreciation of any official action taken by the City Council member. City Council members shall not solicit or accept any gifts, favors or promises of future benefits which might compromise the independent judgment and action Eea:1Preraised. City Council members shall not take special advantage of services or opportunities for personal gain, by virtue of their public offices that are not available to the public in general. Political Fundralsina Activities No City Council member shall use his or her position, authority or influence, whether actually possessed or anticipated, to interfere with or affect the results of an election or to obtain a political or other type contribution. City Council members shall not use or attempt to use any political endorsement in connection with any appointment to any City board or commission. These rules are not intended to preclude City Council members from political fundraising activities, but to ensure that these activities are undertaken only at private initiative and expenses in their role as private citizens and thus do not reflect upon the official activities of the City. EenarvuniEatiGn preeess: 3 Confidential Information City Council members shall respect and preserve the confidentiality of information concerning the property, personnel or affairs of the City. City Council members shall neither disclose confidential information without proper legal authorization nor use such information in any way to advance or further their personal, financial or private gain. Confidential Information shall not include any information that is or becomes publicly available other then as a result of disclosure by Recipient, which is disclosed by any third -party not known by Recipient, and who Recipient has no reason to believe to be under any contractual or fiduciary obligation not to disclose such information; was in the Recipient's possession prior to disclosure, or is independently developed by the Recipient. Advocacy City Council members shall represent the official policies or positions of the City Council to the best of their ability when designated as delegates or representatives of the City. If e City not rePFeSeRt the Qt ' Gf O_ya;5o ^r the City CGURGil. When a City Council member is not acting in their official capacity of city councilor or as a delegate or representative of the City, their comments, discussions and opinions do not represent the City of Owasso or the City Council and councilors should refrain from representing or implying anything to the contrary. Policv Role of Citv Council Members City Council members shall respect and adhere to the Council- Manager form of municipal government implemented in the City of Owasso through its charter and as outlined in Title 11 of the Oklahoma Statutes. The Council- Manager form of government provides for the City Council to determine all matters of policy for the City of Owasso Additionally, the Council- Manager form of municipal government provides that the City Manager shall be responsible for all day -to- day operations of the City. Accordingly, City Council members shall not interfere with or impair the ability of the City Manager and other City staff to determine and implement day -to -day operational matters. Implementation of Code of Ethics and Conduct This Code of Ethics and Conduct is intended to be self- enforcing by members of the City Council. City Council members shall be thoroughly familiar with this Code and shall make every reasonable effort to adhere to its provisions. The Code of Ethics and Conduct shall be included in the orientation training for newly elected City Council members. All City Council members shall sign a statement affirming they have read and understand the City of Owasso Code of Ethics and Conduct. ** add something at the end that makes it clear that "any official meetings or communications City Councilors desire to have with City Staff should be scheduled through the City Manager." Just to make sure that the chain of communication is understood. F11 Censure Any member accused of a substantial violation of Council rules, or any other general law, shall have the right to present a defense to the allegations, including the right to present rebuttal evidence, and to have representation by legal counsel. Upon finding, by a moral certainty, that a substantial violation has occurred, and that such violation affects the Council member's ability to represent the interests of the city as a whole, the Council may, upon unanimous vote of Council members, other than the Council member subject to censure proceedings, impose a proper sanction. DATED this 16th day of September, 2014. /s /Mayor, Jeri Moberly