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Home My WebLink About2008.09.16_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: September 16, 2008 TIME: 6:30 p.m. PLACE: Council Chambers, Old Central Building 109 N. Birch Notice and agenda filed in the office of the City Clerk and posted at City Hall at 5:00 p.m. on Friday, September 12, 2008. VyD OjulAiann M. Stevens, Deputy City Clerk AGENDA 1. Call to Order Chairman Stephen Cataudella 2. Roll Call 3. Consideration and appropriate action relating to a request for approval of the Consent Agenda. All matters listed under "Consent" are considered by the Trustees to be routine and will be enacted by one motion. Any Trustee may, however, remove an item from the Consent Agenda by request. A motion to adopt the Consent Agenda is non - debatable. A. Approval of the Minutes of the September 2, 2008 Regular Meeting. Attachment #3 -A B. Approval of Claims. Attachment #3 -13 C. Acknowledgement of receiving the monthly FY 2008 -2009 budget status report. Attachment # 3 -C S: \Agendas \OP W A \2008 \0916.doc Owasso Public Works Authority September 16, 2008 Page 2 4. Consideration and appropriate action relating to a request for Trustee approval to purchase a compact hydraulic excavator in the amount of $28,189.47. Mr. Blundell Attachment # 4 Staff will recommend Trustee approval for the purchase of a 425 Compact Hydraulic Excavator from White Star Machinery and Supply Company of Tulsa, Oklahoma in the amount of $28,189.47. 5. Consideration and appropriate action relating to a request for Trustee approval of a supplemental appropriation to carryover unexpended funds from the FY 2007 -2008 budget to the FY 2008 -2009 budget. Ms. Bishop Attachment # 5 Staff will recommend Council approval of a budget amendment increasing the estimated beginning fund balance and increasing the appropriation for expenditures in OPWA Fund by $354,839. 6. Consideration and appropriate action relating to a request for Trustee approval of Resolution No. 2008 -03, a resolution establishing utility rates for OPWA Rural Water District customers within the corporate limits of Owasso and establishing an effective date of October 1, 2008. Ms. Bishop Attachment # 6 Staff recommends approval of OPWA Resolution No. 2008 -03. 7. Report from OPWA Manager. 8. Report from OPWA Attorney. S: WAgendas \OP W A\2008 \0916. doc Owasso Public Works Authority September 16, 2008 Page 3 9. New Business. (New Business is any item of business which could not have been foreseen at the time of posting of the agenda.) 10. Adjournment. S:\Agendw\0PWA\2008\0916.doc OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, September 2, 2008 The Owasso Public Works Authority met in regular session on Tuesday, September 2, 2008 in the Council Chambers at Old Central per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 5:00 p.m. on Thursday, August 28, 2008. ITEM 1. CALL TO ORDER Chairman Cataudella called the meeting to order at 6:50 p.m. ITEM 2. ROLL CALL PRESENT ABSENT Steve Cataudella, Chairman D.J. Gall, Vice Chair Doug Bonebrake, Trustee Wayne Guevara, Trustee Jon Sinex, Trustee A quorum was declared present. STAFF Rodney Ray, Authority Manager Julie Lombardi, Authority Attorney ITEM 3. CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR TRUSTEE APPROVAL OF THE CONSENT AGENDA A. Approval of the Minutes of the August 19, 2008 Regular Meeting. B. Approval of Claims. Mr. Guevara moved, seconded by Mr. Bonebrake, to approve the OPWA Consent Agenda with claims totaling $1,005,649.37. The payroll payment report for pay period ending 8/16/08 was included for review. YEA: Bonebrake, Cataudella, Gall, Guevara, Sinex NAY: None Motion carried 5 -0. Owasso Public Works Authority September 2, 2008 ITEM 4. REPORT FROM OPWA MANAGER Mr. Ray reported that the judge hearing the Washington County RWD #3 lawsuit has placed a "Stay" on the case for an undetermined time. ITEM 5. REPORT FROM OPWA ATTORNEY No report ITEM 6. NEW BUSINESS None ITEM 7. ADJOURNMENT Mr. Gall moved, seconded by Mr. Bonebrake, to adjourn. YEA: Bonebrake, Cataudella, Gall, Guevara, Sinex NAY: None Motion carried 5 -0 and the meeting was adjourned at 7:04 pm. Pat Fry, Minute Clerk 2 Stephen Cataudella, Chairman Claims List 09/16/08 Budget Unit Title Vendor Name Payable Description Payment Amouni OPWA ADMINISTRATION JPMORGAN CHASE BANK WALMART- MEETING EXPENSE 50.42 JPMORGAN CHASE BANK MEETING EXPENSE 55.20 LIGHTING, INC LIGHTS AND BALLASTS 118.35 JPMORGAN CHASE BANK MEETING EXPENSE 87.00 OFFICE DEPOT INC OFFICE SUPPLIES 27.81 CITY OF OWASSO ADMINISTRATIVE OVERHEAD 12,500.00 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 272.14 JPMORGAN CHASE BANK MEETING EXPENSE 86.98 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 33.10 MICHELE VEST, CSR RWD #3 LAWSUIT- DEPOSITION 175.40 JPMORGAN CHASE BANK LOWES- CEILING TILES 155.28 TOTAL OPWA ADMINISTRATION 13,561.68 UTILITY BILLING JPMORGAN CHASE BANK DELL - PRINTER SUPPLIES 419.98 CHOICEPAY, INC BILLING SERVICES 15.00 KATHLEEN A BALSIGER METER READER 167.85 DAVID R. OLINGHOUSE METER READER 272.70 NOLAN RAY LANE METER READER 72.45 TYRONE EUGENE DINKINS METER READER 265.95 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 2,184.57 JPMORGAN CHASE BANK DELL -INK CARTRIDGE 249.99 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 1,346.81 TECHNICAL PROGRAMMING SERVICES INC BILLING SERVICES 1,178.13 TODD C. KIMBALL METER READER 178.20 DAVID R. OLINGHOUSE METER READER 445.50 TYRONE EUGENE DINKINS METER READER 570.15 KATHLEEN A BALSIGER METER READER 319.95 MARK MEYER METER READER 480.15 BERNIE SHAINE BURNS METER READER 356.85 WATER PRODUCTS OF OKLAHOMA, INC. TRAINING 1,500.00 TOTAL UTILITY BILLING 10,024.23 WATER JPMORGAN CHASE BANK WATER ENV FED - CONFERENCE 725.00 JPMORGAN CHASE BANK WATER PROD - BRADFORD PK 4,595.01 AHS OKLAHOMA PHYSICIAN GROUP,LLC EMPLOYEE RESPIRATORY QUES 150.00 FLEETCOR TECHNOLOGIES FUEL FOR CITY VEHICLES & 1,999.62 VERDIGRIS VALLEY ELECTRIC COOPERATI WATER CONTROL ELECTRIC 15.30 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 49.69 JPMORGAN CHASE BANK WATER PROD - PIPE /RISERS 650.66 JPMORGAN CHASE BANK WATER PROD - CRIMPERS 76.81 JPMORGAN CHASE BANK WATER PROD - SADDLES /CANS 585.99 ACCURATE ENVIRONMENTAL DEQ STUDY GUIDE 20.00 JPMORGAN CHASE BANK BROWN FARM SOD -DRESS UP 80.00 JPMORGAN CHASE BANK WATER PROD - REGISTERS 1,335.00 Page 1 Claims List 09/16/08 Budget Unit Title Vendor Name Payable Description Payment Amount TOTAL WATER 10,283.08 WASTEWATER TREATMENT MIKE OZBUN ENTERPRISE INC PUMP REPAIR @ WWTP 1,472.00 NCL OF WISCONSIN, INC. NORTH CENTRA LAB SUPPLIES FOR WWTP 1,498.43 ECOLOGICAL RESEARCH MANAGEMENT INC. SLUDGE ANALYSIS @ WWTP 894.30 ACCURATE ENVIRONMENTAL LAB SUPPLIES 53.29 FORT BEND SERVICES INC CHEMICALS FOR WWTP 2,790.00 ROYAL FILTER MANUFACTURING COMPANY, AIR FILTERS FOR WWTP 64136 BRENNTAG- SOUTHWEST INC PARTS FOR MOTOR REPAIR 304.98 JPMORGAN CHASE BANK WASTE MGMT- SLUDGE REMOVAL 1,299.66 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 71.90 JPMORGAN CHASE BANK LOWES- RETURN -2.67 FOSTERS PAINT & BODY SHOP, INC REPAIRS TO 2002 CHEVROLET 714.30 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 8.68 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 7.15 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 3.79 JPMORGAN CHASE BANK P & K EQUIP- OIL /FILTERS 21.07 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 17.78 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 14.99 JPMORGAN CHASE BANK LOWES- SPRAYER 18.97 JPMORGAN CHASE BANK LODING EXPENSE -BYRNE 308.00 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 5.89 JPMORGAN CHASE BANK DOEQ -LAB TEST /BYRNE 51.00 JPMORGAN CHASE BANK TRAVEL EXPENSE -BYRNE 23.98 WAL -MART CORP SAMS CLUB 77150903608 OPERATING SUPPLIES 56.43 GREELEY & HANSEN, LLC LBX 619776 WWTP EXPANSION AND PUMP 51,149.25 FLEETCOR TECHNOLOGIES FUEL FOR CITY VEHICLES & 714.18 AHS OKLAHOMA PHYSICIAN GROUP,LLC EMPLOYEE RESPIRATORY QUES 50.00 JPMORGAN CHASE BANK LOWES -PARTS 33.99 JPMORGAN CHASE BANK LOWES -PARTS 14.56 JPMORGAN CHASE BANK LOWES -AIR TOOK KIT /ROPE 59.46 JPMORGAN CHASE BANK LOWES -AIR TOOK KIT /ROPE 59.46 JPMORGAN CHASE BANK WATER PROD - MANHOLE HOOK 38.10 TOTAL WASTEWATER TREATMENT 62,396.28 WASTEWATER COLLECTION: JPMORGAN CHASE BANK WATER PROD -8 INCH PIPE 267.01 JPMORGAN CHASE BANK ACCURATE FIRE -SCBA TEST 21.00 JPMORGAN CHASE BANK LOWES- REPAIR SEWER LINE 18.67 JPMORGAN CHASE BANK OWASSO FENCE - REPAIR 1.74 JPMORGAN CHASE BANK OWASSO FENCE -FENCE REPAIR 192.91 JPMORGAN CHASE BANK LOWES -TIE DOWNS 18.97 JPMORGAN CHASE BANK LOWES- KEYS/TAPE MEASURE 13.33 JPMORGAN CHASE BANK ATWOODS -BOOTS 253.98 JPMORGAN CHASE BANK LOWES- NUTS /BOLTS 7.48 ONEOK, INC OKLAHOMA NATURAL GAS NATURAL GAS USAGE 72.97 Page 2 Claims List 09/16/08 Budget Unit Title Vendor Name Payable Description Payment Amounl WASTEWATER COLLECTION: AHS OKLAHOMA PHYSICIAN GROUP,LLC EMPLOYEE RESPIRATORY QUES 175.00 FLEETCOR TECHNOLOGIES FUEL FOR CITY VEHICLES & 1,155.74 VERDIGRIS VALLEY ELECTRIC COOPERATI COFFEE CREEK ELECTRIC 307.52 VERDIGRIS VALLEY ELECTRIC COOPERATI GARRETT CREEK ELECTRIC 112.89 TREASURER PETTY CASH CDL LICENSE 41.50 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 36.84 ACCURATE ENVIRONMENTAL DEQ STUDY GUIDE 10.00 JPMORGAN CHASE BANK TRAVEL EXPENSE 11.96 JPMORGAN CHASE BANK DOEQ -DEQ TRAINING 102.00 INFINITY INVESTIGATIONS & SURVEILLANCE INVESTIGATIO 1,148.95 TOTAL WASTEWATER COLLECTIONS 3,970.46 REFUSE COLLECTIONS REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 JPMORGAN CHASE BANK EQUIPMENT ONE - PROPANE 22.99 JPMORGAN CHASE BANK GELLICO- SAFETY BOOTS 103.49 ALSUMA TRUCK & EQUIP REPAIR REFUSE TRUCK REPAIRS 387.50 UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 48.39 UNITED STATES CELLULAR CORPORATION CELL PHONE USAGE 56.43 TREASURER PETTY CASH CDL LICENSE 41.50 FLEETCOR TECHNOLOGIES FUEL FOR CITY VEHICLES & 8,318.88 NATIONAL POWER WASH, INC POWER WASH REFUSE VEHICLE 180.00 JPMORGAN CHASE BANK WASTE MGMT- TIPPING FEES 7,258.65 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 REHRIG PACIFIC CO. INITIAL REFUSE CONTAINER 23,663.50 JPMORGAN CHASE BANK EQUIP ONE - PROPANE 22.99 TOTAL REFUSE COLLECTIONS 276,739.32 RECYCLE CENTER UNIFIRST HOLDINGS LP EMPLOYEE UNIFORMS 10.43 JPMORGAN CHASE BANK WASTE MGMT- RECYCLE R/O 3,765.18 NATIONAL WASTE & DISPOSAL, INC. GLASS ROLLOFFS 440.00 JPMORGAN CHASE BANK WASTE MGMT- TIPPING FEES 2,032.12 TOTAL RECYCLE CENTER 6,247.73 383,222.78 FUND GRAND TOTAL Page 3 Claims List 09/16/08 Budget Unit Title I Vendor Name Payable Description IPayment Amouni OPWA GRAND TOTAL $383,222.78 Page 4 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING 08/30/08 Department Payroll Expenses Total Expenses OPWA Administration 9,106.86 12,541.29 Utility Billing 4,891.69 7,129.32 Water 8,395.11 13,094.07 Wastewater 9,656.09 15,321.94 Wastewater Collection 6,483.19 10,441.50 Refuse 9,577.99 14,077.79 Recycle Center 899.72 1,552.00 FUND TOTAL 49,010.65 74,157.91 OWASSO PUBLIC WORKS AUTHORITY - OPERATING FUND FISCAL YEAR 2008 -2009 Statement of Revenues & Expenses As of August 31, 2008 OPERATING REVENUES: Water Wastewater Refuse & recycle Otherfees Interest & other TOTAL OPERATING REVENUES OPERATING EXPENSES: Personal services Materials & supplies Other services Capital outlay Debt service TOTAL OPERATING EXPENSES REVENUES OVER EXPENSES TRANSFERS IN (OUT) Transfers out MONTH YEAR PERCENT TO -DATE TO -DATE BUDGET OF BUDGET 383,956 703,413 3,950,000 17.81% 237,215 470,056 2,808,600 16.74% 123,352 259,011 1,495,200 17.32% 23,645 83,815 367,100 22.83% 206,071 210,549 7,640,795 2.76% 974,240 1,726,845 16,261,695 10.62% 149,614 296,530 2,184,336 13.58% 269,553 457,971 2,555,110 17.92% 134,339 234,189 1,289,450 18.16% 323 5,806 8,161,200 0.07% 290,291 458,892 2,206,571 20.80% 844,120 1,453,389 16,396,667 8.86% 130,119 273,456 (134,972) (7,998) NET INCOME (LOSS) 122,121 WORKING CAPITAL - Beginning Balance WORKING CAPITAL - Ending Balance (7,998) 600,000 600,000 465,028 MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: TRAVIS BLUNDELL UTILITY SUPERINTENDENT SUBJECT: AUTHORIZATION FOR HYDRAULIC EXCAVATOR PURCHASE WASTEWATER COLLECTION DIVISON DATE: September 12, 2008 BACKGROUND: The FY 08 -09 Public Works Department Wastewater Collections Division budget includes funds in the amount of $32,000 for the purchase of a new hydraulic excavator. Public Works currently has a Mini- Excavator that was purchased in 2006 and is being utilized among six separate divisions. For the past two years, staff has evaluated the performance of the Mini - Excavator and has been very pleased. In addition to the 2006 mini - excavator, the Public Works Department operates a 1997 Ford Backhoe that has become increasingly unreliable. The purchase of the new compact equipment will increase the Public Works Department flexibility to enter and perform work in tight areas with reduced disturbance to public or private property. SOLICITATION OF BIDS: In August 2008, bids were advertised and proposal packets were mailed to three (3) prospective vendors. Three (3) bids were received on September 3, 2008 (See attachment "A" for bid summary). Evaluation of the bids indicates that White Star Machinery and Supply Co. (Tulsa, OK) is the low bidder at $28,189.47. A few exceptions were noted with this bid but will not affect equipment performance capabilities. FUNDING SOURCE: The FY 08 -09 Wastewater Collection Division Budget includes $32,000 in Capital Outlay (61- 455- 54400) for the purchase of a new Hydraulic Excavator. RECOMMENDATION: The staff recommends Trustee approval for the purchase of a current production model 425 Compact Excavator from White Star Machinery and Supply Company of Tulsa, OK in the total amount of $28,189.47. ATTACHMENTS: A. Bid summary Attachment A OWASSO PUBLIC WORKS AUTHORITY HYDRAULIC EXCAVATOR Bid Opening: September 3, 2008 BID SUMMARY Number of Bids: 3 Bids Opened By: Marcia Boutwell Witness: Steven Eaton Bidder Bid White Star Machinery $28,189.47 Tulsa, OK Ditch Witch of Oklahoma $28,310.14 Tulsa, OK Warren Cat $39,015.00 Tulsa, OK Certification: I, Marcia Boutwell, Contract Administrator, do hereby certify that, to the best of my knowledge, this Bid Documentation is true and correct. Signature: /s /Marcia Boutwell Date: September 3, 2008 MEMORANDUM TO: HONORABLE CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: SHERRY BISHOP ASSISTANT CITY MANAGER SUBJECT: PROPOSED CARRYOVER BUDGET DATE: September 12, 2008 BACKGROUND: In 1993, the City Council adopted a "Carryover Budget Policy." Each year since then, the City Council has approved a "carryover" supplemental appropriation. A "carryover" budget is a concept wherein a department's budgeted, but unexpended, funds from one fiscal year may be re- budgeted (appropriated) to the next fiscal year. The goal of a carryover budget is to encourage economy and efficiency in the use of public funds. Traditional public sector budgets "reward" the expenditure of all of the funds under a manager's control and justify an increasing level of appropriations in subsequent fiscal years. In using this traditional philosophy, efforts to be efficient and save money often are "rewarded" by a reduction in future budgets. The carryover budget promotes a philosophy of "save and invest it" rather than "spend it or lose it." Managers who save money from last year's budget have been rewarded by the possibility of a carryover appropriation to the new fiscal year budget. When the FY 2008 -2009 budgets were presented to the City Council and OPWA for approval, revenue estimates and spending projections were used to project the FY 2008 year -end fund balance for each budgetary fund. In order to be eligible for consideration for a carryover appropriation, the actual year end budget basis fund balance must be greater than the amount projected in the approved budget. In other words, the funds must actually be available and approval of a carryover budget cannot negatively affect the projected June 30, 2009 fund balance. REQUESTS: Carryover requests are included for sixteen departments of the General Fund, six other City Funds and five departments of the OPWA. A descriptive list of requests by department and fund is attached. The following amounts are the carryover budget requests for each fund: General Fund $409,108 Hotel Tax Fund $164,700 Stormwater Management Fund $1,864,992 Fire Capital Fund $2,100 CDBG Grant Fund $16,616 Capital Improvements Fund $6,764,449 City Garage Fund $4,030 Total City Funds $9,225,995 OPWA Fund $354,839 Total Request $9,580,833 RECOMMENDATION: Staff recommends OPWA Trustee approval of a budget amendment increasing the estimated beginning fund balance and increasing the appropriation for expenditures by $354,839. ATTACHMENTS: Schedule of Carryover Budget Requests City of Owasso Schedule of Carryover Budget Requests September 12, 2008 Total All Funds $ 9,580,833 Fund /Department Amount Description 01 General Fund 130 Human Resources 800 Professional services - ACM evaluation 150 General Government 65,000 Facility improvements; Personnel 160 Community Development 5,758 INCOG dues; Save for future vehicle 175 Information Systems 121,953 IT software project; Painting; Personnel 181 Support Services 33,200 Old Central & City Hall projects 190 Cemetery 236 Gate project 201 Police 25,200 Uniforms, equipment & other services 215 Communications 4,000 Replace dispatch floor 221 Animal Control 5,000 Dart system; Building air - conditioning 250 Fire 1,000 Traffic vests 280 Emergency Preparedness 3,100 Equipment; Restroom improvements 300 Streets 111,150 Street maintenance & improvement projects 370 Stormwater 9,095 Drainage improvements; Radio; Water testing 515 Parks 12,116 CDBG grant match - Rayola project 550 Community Center 3,000 Air duct repairs 710 Economic Dev 8,500 Computer; Camera; Marketing; Training Total General Fund 409,108 25 Hotel Tax Fund 164,700 Main Street project 27 Stormwater Mgmt Fund 1,864,992 Stormwater projects; Engineering 32 Fire Capital Fund 2,100 Grass firefighting truck 36 CDBG Grant Fund 16,616 CDBG grant - Rayola project 40 Capital Improvements Fund 6,764,449 Capital projects 70 City Garage Fund 4,030 Training; Tank pumping Total Other City Funds 8,816,887 Total City Funds 9,225,995 61 OPWA Fund 405 UB 12,139 Part-time staffing 420 Water 2,000 Water project 455 Wastewater 91,600 Sewer camera equipment; Lift station repairs 480 Refuse 230,000 Refuse truck 485 Recycle 19,100 Cardboard equipment & building OPWA Total 354,839 Total All Funds $ 9,580,833 MEMORANDUM ASSISTANT CITY MANAGER SUBJECT: OPWA RESOLUTION NO. 2008-03 RWD CUSTOMER RATES DATE: September 12, 2008 BACKGROUND: About 1999, annexation and development began in Bailey Ranch Estates II, Preston Lakes and the Owasso Market. Those areas were the first large developments in Owasso to have OPWA sewer and refuse utility services and water service from a RWD (rural water district). Billing for OPWA customers without OPWA water service presented two difficulties. The amount billed for sewer "usage" is based on the volume of water metered. The OPWA does not have that information for customers with rural water service. The other difficulty is collecting delinquent accounts. The primary motivator for payment of delinquent utility accounts is the threat of disconnected utility service. Without the water utility, service disconnection is nearly impossible. To address those billing and collection concerns, agreements were negotiated with RWD #3 Rogers County and RWD #3 Washington County for the rural water districts to provide billing and collection services for the OPWA utilities for a 10% fee. Not a part of the contract, but central to the agreement with the rural water districts was that the OPWA utility charges would be a fixed amount for residential customers and rate changes would not be frequent. At that time, the decision was made to set the "usage" volume for residential sewer customers at an average of 7200 gallons per month and to add the 10% billing fee to the customer charges. Over the years since then, the Owasso citizens with RWD billings have regularly questioned the sewer rates and billing method. At several of the recent neighborhood meetings, the RWD customer billing and sewer rates was a concern of citizens. There are three basic issues to consider: • The 10% billing charge (to cover the RWD administrative fee) • The 7200 gallon sewer usage volume for all residential customers • Billing service to be provided by the RWD or by the OPWA BILLING CHARGE: The 10% administrative fee paid to the RWD for billing and collection services is added to the OPWA rates paid by the OPWA -RWD customers. Currently the 10% billing charge is a difference of $4.16 per month per residential customer. The total fee paid to the two rural water districts for OPWA RESOLUTION NO. 2008 -03 Page 2 billing and collection services during a year is approximately $104,000. That cost is added to the regular OPWA utility rates and is paid by the customer. For the customers billed directly by the OPWA through the Finance Department, the cost of billing and collection services is a normal cost of service and is already included in the OPWA rate structure. Removing the 10% billing charge from the RWD customer rates would: • Reduce the total charges to OPWA -RWD customers by about $95,000; • Reduce the fee paid to the RWD by about $9,500; and • Reduce the net revenue to the OPWA by about $85,500. SEWER USAGE VOLUME: The OPWA -RWD customers are currently billed for sewer charges based on usage of 7200 gallons per month. This amount is within the range of statistical averages for water usage. Based on statistics from various sources (including the US Geological Survey) the average water usage per person is between 2400 and 3000 gallons per month. The Owasso average single family residential household size is 2.94 (per Eric Wiles, Owasso Community Development Director). Based on this information, the average Owasso single family residential household water usage would be between 7056 and 8820 gallons per month. The OPWA -RWD residential customers are billed for sewer charges based on water usage of 7200 gallons per month. This amount is toward the low end of the range of normal usage for an average single family residential household of 2.94 persons. For a household of one or two persons, 7200 would be a high usage. For a household of four or more, 7200 would be a very low usage. The OPWA regular residential sewer rate is $5.08 (base) plus $2.50 for each 1000 gallons of sewer usage. Currently, each OPWA -RWD residential customer is billed $23.08 monthly (plus $2.31 billing fee for a total of $25.39) for sewer service. BILLING SERVICES BY RWD: Billing and collection services are currently provided by the two rural water districts. This billing service method is easy and efficient for the OPWA but communications with our customers and billing options are very restricted. RWD #3 Washington County reads customer water meters and bills each customer monthly. In RWD #3 Rogers County, each customer reads his own meter, completes the payment coupon and submits the calculated payment to the water district. Both Washington and Rogers RWD submit a report with payment to the City of Owasso, Finance Department each month. When OPWA rates are changed, the Finance Department obtains a customer list from the RWD and rate notification letters are mailed to each OPWA -RWD customer. This is especially important for the Rogers County customers who must include the rate change themselves on the payment coupon. The OPWA agreed to limit the number of rate changes for the RWD customers, so if there are multiple rate changes during a year, the effective date for the OPWA -RWD customers is usually deferred so there will be only one rate change per year. This year, for example, an Ambulance Rate OPWA RESOLUTION NO. 2008 -03 Page 3 increase was effective July 1 and Sewer and Refuse rate increases are to be effective October 1. These rate changes will be effective on single date for the OPWA -RWD customers. The understanding with the two rural water districts when the agreement was signed in 1999 was also that the OPWA billing for residential customers would be at fixed rate for all services. Consequently, customer sewer charges are not based on actual water usage, but on a predetermined average for all customers. That agreement resulted in the sewer usage volume of 7200 gallons per residential customer as is explained in the section above. The Utility Billing Department is reviewing the options and problems associated with taking over billing and collection for OPWA utility services for our customers within the rural water districts. Providing our own billing services would allow us to address some of the customer concerns but would create new challenges for the Utility Billing Department. OPWA billing services would improve customer communications and the effectiveness of rate changes. Options for resolving the issue of sewer charges based actual customer water usage rather than on a fixed volume charge could possibly involve customers submitting their own water usage records. This option is complicated by the fact that Rogers County customers read their own meters. Effective collection of delinquent accounts is another problem that would have to be addressed. REQUEST: The 10% administrative fee paid to the rural water districts for billing and collection services should be considered a normal cost of business in much the same way as is the Utility Billing Department budget. The estimated revenue loss of $85,500 while not insignificant is less than 1% of the OPWA revenue budget and is a tolerable loss. A decision to reduce rates by removing the 10% billing fee now would allow that rate change to be effective with other rate changes on October 1. Sewer and refuse rate increases are already set to be effective on October 1 and those customer rate change notices could include the reduction of the 10% billing fee. Additional staff review and discussion is needed on the other issues of the sewer usage volume and whether OPWA should provide its own billing and collection services for RWD customers. Staff request to continue discussion of these issues with Council at the November work session. RESOLUTION NO. 2008-03: OPWA Resolution No. 2008 -03 would establish utility rates for rural water district customers within the corporate limits of Owasso at the same rates as are currently applicable to other customers of the OPWA regardless of whether or not they are OPWA water service customers. For residential customers, 7200 gallons per month usage is assumed. For commercial customers, an assigned average usage is assumed. Wording in the previous resolution which added the 10% administrative fee has been removed. OPWA RESOLUTION NO. 2008 -03 Page 4 RECOMMENDATION: Staff recommends approval of OPWA Resolution No. 2008 -03 establishing utility rates for OPWA Rural Water District customers within the corporate limits of Owasso and establishing an effective date of October 1, 2008. ATTACHMENT: OPWA Resolution No. 2008 -03 OWASSO PUBLIC WORKS AUTHORITY OWASSO, OKLAHOMA RESOLUTION NO. 2008 -03 A RESOLUTION OF THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY ESTABLISHING SANITARY SEWER AND REFUSE RATES FOR RURAL WATER DISTRICT CUSTOMERS RESIDING WITHIN THE CORPORATE LIMITS OF THE CITY OF OWASSO, OKLAHOMA. BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY THAT the following rates be, and the same hereby are, established as sanitary sewer and refuse rates for rural water district customers residing within the corporate limits of the City of Owasso, Oklahoma, utilizing the sanitary sewer service of the Owasso Public Works Authority, Owasso, Oklahoma. Residential: Residential customers of the Owasso Public Works Authority shall be charged the then applicable rate as established, or thereafter increased, by the Trustees of the Owasso Public Works Authority for all residential sanitary sewer service customers and residential refuse service customers, regardless of whether or not said customers are water service customers, residing within the City of Owasso, Oklahoma, assuming a 7200 gallon per month usage. Commercial: Commercial customers of the Owasso Public Works Authority shall be charged the then applicable rate as established, or thereafter increased, by the Trustees of the Owasso Public Works Authority for all commercial sanitary sewer service customers and commercial refuse customers, if applicable, regardless of whether or not said customers are water service customers, residing within the City of Owasso, Oklahoma, assuming an assigned average usage. APPROVED this 16'h day of September, 2008 by the Trustees of the Owasso Public Works Authority. ATTEST: Sherry Bishop, Authority Secretary APPROVED AS TO FORM: Julie Lombardi, Authority Attorney Stephen Cataudella, Chairperson