The URL can be used to link to this page

Home My WebLink About1993.02.02_City Council AgendaNOTICE OF PUBLIC MEETING The Owasso City Council will meet in regular session on Tuesday, February 2, 1993 at 7:00 p.m. in the Council Chambers at the Owasso Community Center, 301 South Cedar, Owasso, Oklahoma. Notice filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Friday, January 29, 1993. AGENDA 1. Call to Order 2. Flag Salute 3. Roll Call 4. Request Approval of the Minutes of January 19, 1993 Regular Meeting Attachment #4 5. Request Approval or Claims Attachment #5 Owasso City Council February 2, 1993 Page 2 6. Consideration and Appropriate Action Relating to Ordinance #456, an Ordinance Adopting Rezoning Case No OZ -92, Relating to a Site Approximately 1.9 Acres in Size and Generally Located on the North Side of 86th Street Between 123rd E Avenue and 129th E Ave. Mr Rooney I� Attachment #6 Staff will recommend Council adoption of Ordinance #456 approving rezoning Case No OZ -92 as per the recommendation forwarded by the Owasso Planning Commission. 7. Consideration and Appropriate Action Relating to a Request for the Withdrawal of Annexation Petition Submitted in May of 1988 by Mr & Mrs Elden Birks. Mr Rooney Attachment #7 Staff will recommend that the Council accept the withdrawal petition, thus removing this item from further consideration. 8. Consideration and Appropriate Action Relating to an Agreement Between the City of Owasso and the American Red Cross, Tulsa Division, Providing for a "Learn to Swim" Program During the 1993 Owasso Pool Swimming Season. Mr Compton Attachment #8 Staff will recommend Council approval of the Letter of Agreement between the City of Owasso and the American Red Cross. Owasso City Council February 2, 1993 Page 3 9. Consideration and Appropriate Action Relating to a Contract Between the City of Owasso and the Oklahoma Department of Commerce Providing for a Grant of $151,203 for Infrastructure Improvements Relating to the Max Buchanan Relocation Project. Mr Compton Attachment #9 The staff will recommend Council approval of the contact, and authorization for the Mayor to execute the required documents. 10. Consideration and Appropriate ro riate Action Relating to a Request by the City Attorney that he be Authorized to Execute and File a Disclaimer of Interest in the Matter of Lora Maxine Shay, et al v. City of Owasso, et al, Case #JC 93-40. Mr Cates Attachment #10 The staff will recommend that the City Council authorize the City Attorney to execute and file a disclaimer of interest in the referenced matter. 11. Consideration and Appropriate Action Relating to a Contract Between the Owasso Golden Agers and the City of Owasso for the Purpose of Maintaining a Senior Citizens Van Drivers Program. Mr McElrath Attachment #11 Staff will recommend that the Council approve a contract between the Owasso Golden Agers and the City of Owasso and that the Mayor be authorized to execute such document. Owasso City Council February 2, 1993 Page 4 12. Consideration and Appropriate Action Relating to a Request for an Amendment to the FY92 -93 General Fund Budget. ' Mr McElrath Attachment #12 If agenda item #11 is approved, the staff will recommend Council approval of an amendment to the General Fund Budget increasing revenue projections $2052, and a supplemental appropriation to the Community Center /Senior Citizen Department of $2032. 13. Consideration and Appropriate Action Relating to a Request for Council Adoption of a Carry -Over Budget Policy. Mr Ray Ms Bishop Attachment #13 Staff will recommend that the Council adopt a policy allowing departments to carry over unexpended funds from one year to the next. 14. Consideration and Appropriate Action Relating to an Agreement for the Use of Pole Line Facilities Between Public Service of Oklahoma and the City of Owasso. Mr Ray Attachment #14 Staff will recommend Council approval of an agreement allowing for the use of Public Service of Oklahoma poles for the purpose of carrying electrical wires used in the operation of school zone safety lights and that the Mayor be authorized to execute such document. Owasso City Council February 2, 1993 Page 5 15. Consideration and Appropriate Action Relating to a Presentation and Discussion of the Staff Response to the Auditor's "Advisory Comments Memorandum ". Mr Ray Ms Bishop Attachment #15 The staff will present its response to the auditor's management letter and answer questions from the Council relating to any aspect of the audit. 16. Report from City Manager 17. Report from City Attorney 18. Unfinished Business 19. New Business Owasso City Council February 2, 1993 Page 6 20. Adjournment OWASSO CITY COUNCEL MINUTES OF REGULAR MEETING Tuesday, January 19, 1993 The Owasso City Council met in regular session on Tuesday, January 19, 1993 in the Council Chambers at the Owasso Community Center per the Notice of Public Meeting and Agenda posted on the City Hall bulletin board at 4:00 p.m. on Friday, January 15, 1993. ITEM 1: CALL TO ORDER Mayor Marlar called the meeting to order at 7:25 p.m. ITEM 2: FLAG SALUTE The flag salute was held during the Owasso Public Works Authority meeting preceding this meeting. ITEM 3: ROLL CALL PRESENT: Patricia Marlar, Mayor John Phillips, Councilman Bob Randolph, Councilman Rodney J Ray, City Manager Ronald D Cates, City Attorney Marcia Boutwell, City Clerk ABSENT: Jason Gittelman, Vice Mayor James Smalley, Councilman A quorum was declared present. ITEM 4: REQUEST APPROVAL OF THE MINUTES FROM THE REGULAR MEETING ON JANUARY 5. 1993 John Phillips moved seconded b Bob Randolph, to approve the minutes, by reference made a part hereto. AYE: Phillips, Randolph, Marlar NAY: None Motion carried 3 -0. Owasso City Council January 19, 1993 ITEM 5: REQUEST APPROVAL OF THE CLAIMS Bob Randolph moved, seconded by John Phillips, to approve the following claims and addendum as submitted: (1) Workers' Compensation Self- Insurance Plan $20,059.05, (2) Ambulance Service Fund $637.15, (3) E -911 $1,654.95, (4) General Fund $30,665.91, (5) City Garage $61,324.62, (6) General Fund Payroll $91,145.99, (7) City Garage Payroll $3,383.48. AYE: Phillips, Randolph, Marlar NAY: None Motion carried 3-0. ITEM 6: CONSIDERATION AND APPROPRIATE ACTION RELATING TO RESOLUTION NO. 93-02 A RESOLUTION DECLARING COUNCIL SUPPORT AND ENDORSEMENT OF A COUNTY-WIDE ONE-CENT SALES TAX FOR THE PURPOSE OF FUNDING A PROPOSAL TO LOCATE A DEPARTMENT OF DEFENSE FINANCIAL ACCOUNTING FACILITY AT THE CHEROKEE INDUSTRIAL PARK Mayor Marlar presented this item. Tulsa County is among several areas being considered for a Department of Defense Finance & Accounting Facility which will employ 7000 persons and inject $376 million each year into our county economy through direct and related new jobs and benefits. If approved, a temporary one -cent county sales tax, limited to three years by law, will be used to purchase, expand and operate the Memorex -Telex facility in the Cherokee Industrial District as a part of the incentive package. The temporary tax will not go into effect if Tulsa County does not get the facility. Resolution 93 -02 declares City Council support for the sales tax. A question was raised concerning election expense. Mayor Marlar stated that expenses relating to the election will be paid by Tulsa County. Mayor Marlar moved to approve Resolution 93-02. Motion was seconded by John Phillips. AYE: Marlar, Phillips, Randolph NAY: None Motion carried 3-0. 2 Owasso City Council January 19, 1993 ITEM 7: CONSIDERATION AND APPROPRIATE ACTION RELATING TO ORDINANCE NO. 454 AN ORDINANCE REZONING A TRACT OF LAND IN THE EAST ONE -HALF OF SECTION 20, TOWNSHIP 21 NORTH, RANGE 14 EAST FROM A "CS "COMMERCIAL SHOPPING CENTER) DISTRICT TO "OPUD -11 " GENERALLY LOCATED ON THE NORTHWEST CORNER OF 86TH STREET NORTH AND 129TH EAST AVENUE This item was tabled from The January 5, 1993 meeting in order for the staff to gather information from the applicant relating to questions raised by the Council. Mr Rooney presented this item and stated that during the January 5, 1993 Council meeting, Council members had questions regarding the reasoning behind the Developer's limitation of certain types of proposed commercial uses within the PUD, more particularly, restaurants other than fast -food types. Mr Hodo, the Engineer on the project, and Mr Williams, owner of the property, were also present to answer questions. The Owasso Zoning Code requires that Protective Covenants be submitted with all Planned Unit Development applications and the City of Owasso be designated beneficiary. This allows the City the opportunity to enforce the covenants and also allows the City Council to amend those covenants. Following discussion, Bob Randolph moved to amend the Protective Covenants of OPUD -11 as follows: Article III Section 3.01. Designation of Permitted and Prohibited Uses (a) No theater (motion picture or legitimate), health spa, skating rink bowling ally dairy store establishment which sells alcoholic beverages for on- premises consumption or any other health recreational or entertainment -type activity shall be operated, or permitted operate won the property. All other verbiage within Section 3.01, part (a) to be eliminated. Motion was seconded by Mayor Marlar. AYE: Randolph, Marlar, Phillips NAY: None The motion on the amendment to the Protective Covenants carried 3-0. Bob Randolph moved to approve Ordinance No. 454 as amended by the Protective Covenants. Motion was seconded by John Phillips. AYE: Randolph, Phillips, Marlar ' NAY: None Motion carried 3-0. Owasso City Council January 19, 1993 ITEM 8: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A PROJECT AGREEMENT BETWEEN THE CITY OF OWASSO AND THE OKLAHOMA DEPARTMENT OF TRANSPORTATION Mr Compton presented this item, stating that as a part of the OEDA's efforts to bring industrial businesses to Owasso, the City became eligible to participate in several different infrastructure grant programs to provide assistance in developing the Municipal Facilities /Industrial Park on South Main. The Oklahoma Department of Transportation approved a $40,000 grant on December 7, 1992 to be used for surfacing the access street into the area. The City had requested $68,000, however, DOT staff recommended that the width of the street be reduced to 24' and that only $40,000 be allocated. Staff plans to request County assistance so that the road surface may be properly sized without increasing the cost above the $40,000 limit. Staff is requesting approval of the Project Agreement between the City of Owasso and the Oklahoma Department of Transportation. John Phillips moved to approve the Project Agreement and authorize the Mayor to execute the Agreement on behalf of the City. Motion was seconded by Bob Randolph. AYE: Phillips, Randolph, Marlar NAY: None Motion carried 3-0. ITEM 9: CONSIDERATION AND APPROPRIATE ACTION RELATING TO THE APPOINTMENT OF A REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE INDIAN NATIONS COUNCIL OF GOVERNMENTS INCOG By -Laws require that members of the Board of Directors be appointed to a term that begins on the second Wednesday of January of each odd- numbered year. Mayor Marlar has been serving as Owasso's representative on the INCOG Board of Directors and requested that the Council confirm her reappointment to that Body. John Phillips moved, seconded by Bob Randolph, to confirm the reappointment of Mayor Patricia Marlar as Owasso's representative to the INCOG Board of Directors. AYE: Phillips, Randolph, Marlar NAY: None Motion carried 3-0. Owasso City Council January 19, 1993 ITEM 10: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR THE PURCHASE OF ONE PASSENGER VEHICLE Mr Ray stated that bids for the purchase of one vehicle were opened by the City Clerk on January 15, 1993. Three bids were received. An evaluation of the bids indicates that one bidder withdrew their bid and that the remaining two bids were not consistent with prices being quoted in the general market. Therefore, staff recommended that all bids be rejected. Bob Randolph moved to reject all bids and direct staff to continue searching for a vehicle. Motion was seconded by John Phillips. AYE: Randolph, Phillips, Marlar NAY: None Motion carried 3 -0. ITEM 11: REPORT FROM CITY MANAGER No Report ITEM 12: REPORT FROM CITY ATTORNEY, No Report ITEM 13: UNFINISHED BUSINESS Mr Cates stated that Mr Kenneth Thompson has withdrawn his request for payment of proceeds from a retirement annuity established during his employment with the City of Owasso. Mr Thompson had appeared before the Council with his request on December 15, 1992. At that meeting, the item was tabled so that additional information could be gathered. A special meeting was called for 6:00 p.m. on February 2, 1993 for discussion and deliberation on the matter, with an agenda item for action at the regularly scheduled meeting on the same date. Because Mr Thompson has withdrawn his request, Mayor Marlar canceled the special meeting. Mr Cates stated that Mr Thompson's legal counsel, Mr Harold Charney, will submit a formal letter to the Council and that letter will be attached to these minutes and made a part thereof. ITEM 14: NEW BUSINESS None Owasso City Council ITEM 15: ADJOURNMENT Bob Randolph moved, seconded by John Phillips to adjourn. AYE: Randolph, Phillips, Marlar NAY: None Meeting was adjourned at 7:45 p.m. Marcia Boutwell, City Clerk January 19, 1993 No Patricia K Marlar, Mayor I CITY OF OWASSO GENERAL FUND 1/28/93 16:26:54 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT MANAGERIAL 930022 RODNEY RAY EXPENSES 289.88 931497 REASORS PRICE RITE FILM PROCESSING 9:3.70 931498 CITY MANAGEMENT ASSOCIATI 1993 DUES 86.20 931502 ICMA DISTRIBUTION CENTER BOOKS /PERIODICALS 100.00 931503 BETTER LOCAL GOVNT BOOKS 60.00 931534 GOLDEN CORRAL AWARDS BANQUET DINNER 1.478.60 931541 CUSTOMCRAFT PLAQUE /BUCHANAN 48.65 931559 TREASURER PETTY CASH REIMS PETTY CASH 191.05 931585 AT &T 12/92 USE 1.00 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 56.56 931596 LDCC INC 12/92 USE 7.70 DEPARTMENT TOTAL = = = => 2,413.34 FINANCE 931512 SUBURBAN OFFICE SUPPLY SUPPLIES 32.20 931559 TREASURER PETTY CASH REIMS PETTY CASH 264.42 931578 SUBURBAN OFFICE SUPPLY SUPPLIES 41.93 DEPARTMENT TOTAL =___> 338.55 COMMUNITY DEVELOPMENT 931537 HAMILL CO. PRINTING 38.00 931542 CUSTOM ELECTRONICS SERVIC RADIO REPAIR 54.00 931547 OFFICE DEPOT CARD PLAN SUPPLIES 19.99 931559 TREASURER PETTY CASH REIMB PETTY CASH 51.46 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 27.35 DEPARTMENT TOTAL = = = => 190.80 MUNICIPAL COURT 930075 MICHAEL D. HILSABECK SERVICES 700.00 DEPARTMENT TOTAL =___> 700.00 ENGINEERING 3 CITY OF OWASSO GENERAL FUND 1/28/93 16:26:54 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT 930353 ROHN MUNN ENGINEERING SERVICES 1,611.98 931483 HARD DRIVES INTERNATIONAL CAD UPGRADE 515.00 931542 CUSTOM ELECTRONICS SERVIC RADIO REPAIR 108.00 931571 SHERYL DUGGAN REIMBURSEMENT 22.68 931457 DEPARTMENT TOTAL =___> CLASSIFIED AD 2,257.66 GENERAL GOVERNMENT 930026 WESTERN BUSINESS PRODUCTS COPIER MAINT 365.74 930292 MEMBER SERVICE LIFE MONTHLY FEES 117.00 931130 MULTI CARE HEALTH CENTER, DRUG SCREENING 120.00 931422 DAILY OKLAHOMAN CLASSIFIED AD 1.21 931457 LAWTON CONSTITUTION CLASSIFIED AD 45.60 931460 KANSAS "TTY STAR CLASSIFIED AD 328.88 931461 DALLAS MORNING NEWS CLASSIFIED AD 249.50 931464 J.P. HOGAN INSURANCE INSURANCE 7,881.50 931499 OKLA SELF INSURERS ASSOC 1993 DUES 100.00 931501 VINES MINI- STORAGE RENTAL 480.00 931507 SPRINGFIELD NEWSLEADER CLASSIFIED AD 192.11 931508 RETHERFORD PUBLICATIONS CLASSIFIED AD 32.10 931510 PRIMA SUBSCRIPTION 50.00 931535 TULSA COUNTY ELECTION BOA PRE - ELECTION EXPENSES 884.64 931547 OFFICE DEPOT CARD PLAN SUPPLIES 287.40 931548 SUBURBAN OFFICE SUPPLY SUPPLIES 181.73 931550 OK BLACK CHRONICLE CLASSIFIED AD 115.00 931552 DEPARTMENT OF CORRECTIONS 11/92 DOC EMPL 211.20 931557 TREASURER PETTY CASH DOC MEALS 515.58 931559 TREASURER PETTY CASH REIMS PETTY CASH 11.29 931583 OKLA NATURAL GAS 12/92 USE 965.78 931584 PSO 12/92 USE 1,283.24 931585 AT &T 12/92 USE 35.80 931586 SOUTHWESTERN !?ELL TELE. 12/92 PLEXAR 918.98 931596 LDCC INC 12!92 USE 138.97 DEPARTMENT TOTAL MAINTENANCE 931405 B & M CLEANING SUPPLY SUPPLIES 248.33 931412 CINTAS CORP. UNIFORM CLEANING 28.40 931500 DALE & LEE SERVICE SERVICE /REPAIR 60.00 931573 KIMBALL ACE HARDWARE SUPPLIES 140.61 DEPARTMENT TOTAL = = = => 477.34 4 CITY OF OWASSO GENERAL FUND 1/28/93 16:26:54 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT CEMETERY 931584 PSO 12/92 USE 36.13 DEPARTMENT TOTAL =___> 36.13 POLICE SERVICES 930072 IDENTI -KIT CO, INC IDENTI KIT LEASE 34.00 931350 D.A.R.E. AMERICA SUPPLIES 947.79 931439 OKLA DARE OFFICERS ASSOCI TRAINING 70.00 931487 UAL -MART SUPPLIES 188.31 931489 THREE LAKES LAUNDRY PRISONER LAUNDRY 90.60 931536 BETTERTYPE RIBBONS INC. SUPPLIES 16.80 931538 BLACK HILLS AMMUNITION IN AMMUNITION 346.50 931539 BURGER KING -PAMAX DEV. PRISONER MEALS 155.35 931540 COATES PLUMBING CO REPAIR 86.35 931544 RICK DE ARMOND TUITION REIMBURSEMENT 73.50 931545 RANDY BROCK TUITION REIMBURSEMENT 294.00 931546 MARK CLEVELAND TUITION REIMBURSEMENT 147.00 931551 L.E.T.N. 2/93 PROGRAMMING 288.00 931583 OKLA NATURAL GAS 12/92 USE 195.35 931584 PSO 12/92 USE 336.39 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 29.01 931596 LDCC INC 12/92 USE 2.17 DEPARTMENT TOTAL =___> 3.301.12 ANIMAL CONTROL 931487 UAL -MART SUPPLIES 75.14 931488 KIMBALL ACE HARDWARE SUPPLIES 73.83 DEPARTMENT TOTAL =___> 149.97 FIRE SERIVCES 931374 CHIEF FIRE & SAFETY INC: BUNKER GEAR 498.00 DEPARTMENT TOTAL =___> 498.00 STREETS 5 1/28/93 16:26:54 PO # VENDOR CITY OF OWASSO GENERAL FUND A/P CLAIMS REPORT DESCRIPTION 931412 CINTAS CORP. UNIFORM CLEANING 931429 NAPA AUTO PARTS PARTS 931515 RAINBOW CONCRETE CO CONCRETE 931533 ANCHOR STONE CO CRUSHER RUN 931559 TREASURER PETTY CASH REIMS PETTY CASH 931584 PSO 12/92 USE 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 931596 LDCC INC 12/92 USE DEPARTMENT TOTAL DEPARTMENT TOTAL RECREATION CENTER 931310 GRAINGER,W W INC SUPPLIES 931559 TREASURER PETTY CASH REIMB PETTY CASH 931583 OKLA NATURAL GAS 12/92 USE 931584 PSO 12/92 USE 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 931596 LDCC INC 12/92 USE DEPARTMENT TOTAL SWIMMING POOL 931584 PSO 12/92 USE 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR DEPARTMENT TOTAL =___> COMMUNITY CENTER 931511 OWASSO SENIOR CITIZENS FO POSTAGE 91559 TREASURER PETTY CASH REIMB PETTY CASH 931583 OKLA NATURAL GAS 12/92 USE 931584 PSO 12/92 USE 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 931596 LDCC INC 12/92 USE DEPARTMENT TOTAL PARK MAINTENANCE APAPVR PAGE: AMOUNT 142.00 47.12 64.50 130.03 5.25 596.99 54.89 13.44 1.054.22 493.74 9.00 816.55 453.64 46.06 1.65 1.820.64 30.19 14.15 44.34 a4 33.72 6.19.18 44.87 55.81 .65 1.230.22 6 1 CITY OF OWASSO GENERAL FUND 1/28/93 16:26:54 A/P CLAIMS REPORT APAPVR PAGE: 7 PO # VENDOR DESCRIPTION AMOUNT 931380 RAINBOW CONCRETE CO CONCRETE 301.00 931400 GRAINGER,W W INC SUPPLIES 30.33 931404 OKLA. RECREATION & PARK S WORKSHOP 20.00 931542 CUSTOM ELECTRONICS SERVIC RADIO REPAIR 54.00 931559 TREASURER PETTY CASH REIMB PETTY CASH 9.40 931564 KIMBALL ACE HARDWARE SUPPLIES 113.78 931566 AUDREY REEVE SERVICES 150.00 931567 CINTAS CORP. UNIFORM RENTAL 76.55 931568 HANES SHOE & ARCH SHOP BOOTS 94.00 931583 OKLA NATURAL GAS 12/92 USE 89.22 931584 PSO 12/92 USE 203.06 DEPARTMENT TOTAL = = = => 1,141.34 ECONOMIC DEVELOPMENT 931559 TREASURER PETTY CASH REIMB PETTY CASH 46.82 DEPARTMENT TOTAL =___> 46.82 FUND TOTAL = = = => 31,308.74 FUND TOTAL =___> 5.128.04 CITY OF OWASSO WORKERS' COMP SELF -INS PLAN 1/28/93 16:26:54 A/P CLAIMS REPORT APAPVR PAGE: 1 PO # VENDOR DESCRIPTION AMOUNT GENERAL GOVERNMENT 930600 DARRELL EVANS T.T.D. / EVANS 626.72 931417 TULSA REGIONAL MEDICAL CE CLAIM/CLEVELAND 4,438.32 931518 DIAGNOSTIC IMAGING ASSOC CLAIM /CLEVELAND DEPARTMENT TOTAL =___> 5,128.04 FUND TOTAL =___> 5.128.04 CITY OF OWASSO AMBULANCE SERVICE FUND 1/28/93 16:26:54 A/P CLAIMS REPORT PO # VENDOR DESCRIPTION AMBULANCE 931475 ALLIANCE MEDICAL, INC. SUPPLIES DEPARTMENT TOTAL = = = => FUND TOTAL = = = => APAPVR PAGE: AMOUNT 140.46 140.46 140.46 CITY OF OWASSO CITY GARAGE ' 1/28/93 16:26:54 A/P CLAIMS REPORT APAPVR PAGE: 10 PO # VENDOR DESCRIPTION AMOUNT CITY GARAGE 931412 CINTAS CORP. UNIFORM CLEANING 216.42 931418 OWASSO AUTO CLINIC PARTS 2L y5 931419 OWASSO TIRE BARN REPAIRS 143.40 931429 NAPA AUTO PARTS PARTS 1,134.73 931433 B &M CLEANING SUPPLIES SUPPLIES 59.58 931434 TULSA BRAKE AND CLUTCH PARTS 181.64 931435 PENNANT PETROLEUM CO. SUPPLIES 510.45 931455 LAMBERTS AUTO SALVAGE PARTS 120.00 931513 REYNOLDS RADIATOR REPAIR REPAIR 44.00 931514 WELSCO INC TANK RENTAL 33.20 931516 TULSA FARM EQUIPMENT CO PARTS 48.19 931517 J & R EQUIPMENT COMPANY PARTS 396.85 931531 MILEAGE MASTERS RECAP TIRES 3357.00 931532 INTERSTATE BATTERY SYSTEM BATTERY 175.85 931556 GRAINGER,W W INC PARTS 47,74 931559 TREASURER PETTY CASH REIMS PETTY CASH 34.36 931583 OKLA NATURAL GAS 12/92 USE 1,003.77 931584 PSO 12/92 USE 168.10 931586 SOUTHWESTERN BELL TELE. 12/92 PLEXAR 22,70 931596 LDCC INC 12/92 USE S.35 DEPARTMENT TOTAL = = = => 4,726.28 FUND TOTAL =___> 4,726.28 GRAND TOTAL =___> 138,491.42 CITY OF OWASSO PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 01/23/93 DEPARTMENT AMOUNT Finance 4,060.02 Municipal Court 1,141.42 Buildin Maintenance Fire 241740.58 Recreation Center 2,699.33 Community-Senior Center 2,021.95 Economic Development 1,260.71 APPROVED: Mayor Council Member Council Member 02/02/93 CITY GARAGE PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 01/23/93 APPROVED: 02/02/93 Mayor Council Member Council Member MEMORANDUM TO: HONORABLE MAYOR AND CITY COUNCIL FROM: TIMOTHY D. ROONEY, CITY PLANNER SUBJECT: REZONING CASE OZ -92, SUBJECT SITE GENERALLY LOCATED ON THE NORTH SIDE OF 86TH STREET NORTH, BETWEEN 123RD EAST AVENUE AND FOOD LION SUPERMARKET DATE: January 25, 1993 BACKGROUND: The subject tract is undeveloped, 1.9 acres in size, and is located on the north side of 86th Street North, between 123rd East Avenue and Food Lion Supermarket and is currently zoned AG (Agriculture General) District. The site is abutted on the south by 86th Street, immediately to the east by undeveloped OL zoned property (further east lies CS zoning and Food Lion Supermarket), and on the north and west by a drainage channel and Lakeridge Subdivision zoned RS -3 (Residential Single Family). The Owasso Land Use Plan identifies this area as being appropriate for both Residential (west end) and Commercial/Office (east end). The appropriateness of Commercial development in this area may be questioned due to the proximity of Lakeridge Subdivision and the planned "Central Park" Subdivision. However, one can justifiably argue that an office use may better suit this site as a transition between the heavily traveled 86th Street and its developed Commercial areas from the Lakeridge Subdivision. Certainly, the desire to utilize this property residentially would be highly unlikely. The OL zoning being recommended is simply an extension of zoning found to the east. Staff review of the request indicated a need to maintain a drainage channel found on the rear property line in a natural condition. Staff is recommending that this channel (35 feet wide) be maintained as AG zoning to insure it is not impeded upon by any development and to maintain a buffer between the proposed OL zoning and Lakeridge Subdivision. It should be noted that the applicant, Mr. Robert Long, does intend to tie into the pedestrian trails proposed within "Central Park ". The staff report and recommendation was presented to the Planning Commission on Thursday, , January 21, 1993. There was no public opposition and the Planning Commission unanimously recommended approval of rezoning request OZ -92 based upon staff's recommendation. ' RECOMMENDATION: The staff recommends Council adoption of Ordinance No. 456, approving Rezoning Case OZ- 92, as recommended and forwarded by the Owasso Planning Commission. ATTACIMENT: 1. OZ -92 Staff Report 2. Ordinance No. 456 CITY OF OWASSO Planning Department OZ-92 Staff Report Timothy D. Rooney - City Planner BACKGROUND APPLICANNT AND STATUS OF APPLICANT: Mr. Robert Long, owner and applicant. REQUESTED ACTION AND PURPOSE: A request for the rezoning of property from AG (Agriculture General District) to OL (Office Low Intensity District) to allow for the development of an insurance office and possible expansion to include a travel agency at a later time. LOCATION AND SIZE: The property is generally located on 86th Street North, just east of 123rd East Avenue and South of Lakeridge subdivision containing 1.90 acres, more or less. The legal description is attached for your review. EXISTING LAND USE: Subject property is undeveloped. SURROUNDING LAND USE: Property y immediate) south of the subject site , across 86th Street North, is zoned CG and a portion of which is commercially developed containing a gas station /convenience mart. Property immediately to the east of the subject site is zoned OL and is currently undeveloped, while further east both CS and OPUD-10 zoning exists containing Food Lion and the planned "Ram Plaza." Property west and north of the subject site is predominately developed and is the existing Lakeridge Subdivision zoned RS -3. COMPREHENSIVE PLAN: The Comprehensive Plan identifies portions of the subject area as being appropriate for both Residential and Commercial /Office Development. Generally, the east end of the subject site is identified as the portion for Commercial /Office Development. APPLICABLE REGULATIONS: The Zoning Code for the City of Owasso, Chapter 15 "Amendments ", and Chapter 5 "Office District Provisions." Page 1 of 3 OZ -92 Staff Report SITE LYFORIVLATION: * Both sewer and water are available to the subject site but will require service extensions as water is located on the south side of 86th Street North. * There is an existing drainage channel along the rear property line that ties into the planned "green belt" areas of the "Central Park" subdivision. This creates a development challenge to the applicant in the sense that a portion of the property needs to remain undeveloped to account for this drainage area. * Due to the unusual shape of the parcel, a large majority of the subject site will remain undeveloped. * Sidewalk currently exists on the western two -thirds of the property. ANALYSIS The proposed rezoning, if approved, would create a 1.9 acre area of OL (Office Low Intensity) Zoning District permitting all uses cited within the OL portion of Office Low Intensity District Provisions by right. The applicant has already indicated the immediate use of the site will be for an insurance office with a possible addition of a travel agency office at a later time. Both of these proposed uses would adhere to the Office Low Intensity Provisions. As stated previously, the Owasso Land Use Plan calls for portions of the subject site to be appropriate for Residential (west end) and Commercial/ Office (east end). It becomes clear that the appropriateness of this area to develop Commercially may not be justified due to its proximity to Lakeridge Subdivision and the planned "Central Park" residential development. However, one can justifiably argue that an office use may better suit this site as a transition between the heavily traveled 86th Street and its developed Commercial areas from the Lakeridge Subdivision. Certainly, one could conclude, that use of this site for residential purposes would be highly unlikely as it would front onto 86th Street. The OL zoning being requested is simply an extension of current zoning found to the east. Any development that would occur on this site would require a site plan approval by the Planning Commission at the time of development. The site plan submitted by the applicant is only preliminary in nature and should not be considered a final submittal. In addition, this area is currently unplatted and would require it to go through the proper platting requirements. The applicant is proposing that the sidewalk be continued across the entire property frontage with tree lined landscaping being proposed just behind the sidewalk. Staff would strongly Page 2 of 3 OZ -92 Staff Report tencourage this landscaping element as it will then treat the development along 86th Street North to the east in a more, unified manner. Tree lined landscaping exists at the Food Lion supermarket and was required for the recently approved "Ram Plaza" development at the corner of 86th Street North and 129th East Avenue. The applicant is providing for 9 parking spaces on the site, 2 of which would be for handicapped purposes (only one is required). The site plan also indicated two access points to 86th Street. It is the recommendation of the Public Works Director and the City Planner that the access to 86th Street North be limited to one only. Certainly, the intensity of the uses proposed by the applicant could be served by one access drive. Staff would recommend that the access drive be at the western end of the parking area shown on the site plan. Future development of the property east of the subject site could possibly allow for a shared access drive at a later time. Planning staff also recommended that the applicant tie into the planned "green belt" areas proposed for the "Central Park" development to the northeast. The applicant indicated a desire to also tie into this amenity and is showing a gravel access trail to this area. Staff is recommending that the Planning Commission allow for a 35 foot buffer zone between the proposed OL zoning and the RS -3 zoning contained within Lakeridge Subdivision. This buffer zone would remain AG and be incorporated into the subject property along the drainage channel. This would then provide for the drainage channel to be maintained as it is currently, allow for the incorporation into the green belt areas planned for "Central Park," and maintain a sufficient buffer between the Office development and the Residential area. The applicant has stated that the building scheduled for development is intended to be low- profile in elevation and should resemble more closely a residence than a typical office building. Staff feels this will only smooth the transition from the office use intent to that of the residential use abutting the site to the north. RECONTMENDATION Staff would recommend that the above referenced rezoning request be approved providing the incorporation of a 35 foot wide buffer zone of AG be maintained along the property line shared by the subject site and the residential development to the north (along the drainage area). Page 3 of 3 OZ -92 Staff Report DESCRIPTION Part of the SE 1/4. Section 20, T21N, R14E, of the Indian Base and Meridian, Tulsa County, Oklahoma, more particularly described as follows: Beginning at a point 1500 feet West of the Southeast corner of said Section; thence S85°55'26"W 589.92 feet; thence N00°04'34 "W 60 feet to a point on the South boundary of LAKERIDGE addition to the CRY of Owasso, Oklahoma; thence N74'37 "E along said boundary 532.01 feet; thence S89°55 59 E 77.55 feet; thence due South 201.99 feet to the point of beginning; containing 1.90 acres, more or less. G U 5 Y - V EXISTING CONC, WALK- .•�,,�-- 'GR�eN � Nom..•• . •- � J I F'4}- v• COI B� TL-} STREET NORTH a_z Pl_ 589.921 589 °55'26'W �• •� Ig - O- WING OL NOT TO SCALE 30' -9• x 93' -0• �TATE FARM "- OFFICE HNF —=: 9 SPACE5(10'X20) - � POLE SIGN (19') W/ 2 SIGNS EW CONC. WALK I— r--4 ORT LEGAL AR : SEC 21ST 221 SRQt SEI /9 LAKERIDGE ADDITION WON O� L?J 'v 7 Q�w ........... ;sPZ CITY OF OWASSO ORDINANCE NO. 456 AN ORDINANCE APPROVING ZONING APPLICATION NUMBER OZ-92 CHANGING THE ZONING OF PROPERTY LOCATED IN THE SOUTHEAST QUARTER OF SECTION 20, TOWNSHIP 21 NORTH, RANGE 14 EAST, TULSA COUNTY, OKLAHOMA, FROM AG, AGRICULTURE GENERAL DISTRICT TO OL, OFFICE LOW INTENSITY DISTRICT, AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH. WHEREAS, public hearings have been held regarding the request for rezoning of the property herein described, and, WHEREAS, the Owasso City Council has considered the recommendation of the Owasso Planning Commission and all statements for and against the requested rezoning of application OZ -91. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA. Section 1. That the zoning classification of the following described property, to wit: A tract of land located in the Southeast Quarter (SE/4) of Section 20, Township 21 North, Range 14 East of the Indian Base and Meridian, Tulsa County, Oklahoma, being more particularly described as follows: Beginning at a point 1500 feet West of the Southeast corner of said Section; thence S 85° 55'26" W 589.92 feet; thence N 00°04'34" W 60 feet to a point on the South boundary of Lakeridge addition to the City of Owasso, Oklahoma; thence N 74°37'00" E along said boundary 532.01 feet; thence S 89°55'59" E 77.55 feet; thence due South 201.99 feet to the point of beginning; containing 1.90 acres, more or less, except the northern 35 feet of the entire tract. be, and the same is hereby rezoned from a AG (Agriculture General) District to OL (Office Low Intensity) District. Section 2. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby expressly repealed. PASSED AIND APPROVED this 2nd day of February, 1993. Patricia K. Marlar, Mayor I ATTEST: Marcia Boutwell, City Clerk APPROVED AS TO FORM: Ronald D. Cates, City Attorney MEMORANDUM TO: FROM: SUBJECT: DATE: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO TIMOTHY ROONEY, CITY PLANNER PREVIOUS ANNEXATION PETITION FROM MAY OF 1988 January 25. 1993 BACKGROUND: In May thru August of 1988, the City of Owasso attempted to take action on an annexation petition from Mr. and Mrs. Elden Birks. In review of the City Council Minutes from this period, staff found this item was tabled by the Owasso City Council and never brought off the table for formal action. Staff has contacted the petitioners for clarification on this matter in efforts to take formal action on this item and close the annexation request. The original petitioners are no longer interested in pursuing annexation and are requesting that their annexation petition be withdrawn. RECOMMENDATION: Staff recommends that the City Council recognize the petitioner's request and allow the petition to be withdrawn. ATTAC11MENTS: 1. Letter from Mr. and Mrs. Elden Birks to City Planner. 2. Letter from City Planner to Mr. and Mrs. Elden Birks requesting assistance regarding their annexation request. January 15, 1993 Mr. Timothy D. Rooney City Planner City of Owasso P.O. Box 180 Owasso, OK 74080 Dear Mr. Rooney Please reference your letter of December 22, 1992, regarduing our request for 20 acres of property to be annexed within the City of Owasso's Limits. This request was made in June 1988 and was a condition of a sole pending at that time. The pale was not completed largly becuase of the controversy and concern voiced by meadowcrest residents. We are not interested, at this time, of persuing this annexation, and therefore ask that you withdraw the request. Sincerly Elden G Brink City of Owasso 207 SOUTH CEDAR P.O. BOX 180 OWASSO, OKLAHOMA 74055 December 22, 1992 Mr. and Mrs. Elden Birks Rt 1 Box 1308 Talala, OK 74080 -9735 Dear Mr. and Mrs. Birks, (918) 272 -2251 FAX. (918) 272 -4999 In May thru August of 1988, the City of Owasso records reflect that you had submitted a request for property under your ownership or control to be annexed within the City of Owasso's limits. A review of these records reflects that this item was never finalized in any manner. The request was tabled at the June 28, 1988 City Council Meeting pending a report from the City Attorney, and after that report, it was never brought back to the City Council for action. In an effort to finalize this matter, I am contacting you for your assistance. I am under the assumption that you are no longer interested in the annexation request of 1988, and therefore requesting that you submit a letter to my attention stating that you would like to withdraw your annexation request by February 2, 1993. I have enclosed all materials I have found concerning your request. As you can see, the details available to me were sketchy at best. If you have any questions, or if I can be of any assistance to you, please feel free to contact me at (918) 272 -2251. This item will be placed on the February 16, 1993 agenda if no letter requesting withdrawal is received. Thank you for your assistance with this matter. Sincerely, Timothy D. Rooney City Planner enclosure MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: STEVE COMPTON ASSISTANT CITY MANAGER FOR COMMUNITY DEVELOPMENT SUBJECT: AMERICAN RED CROSS, 1993 LEARN -TO -SWIM PROGRAM DATE: January 27, 1993 BACKGROUND: Each year we are asked by the American Red Cross to sign a Letter of Agreement covering their Owasso Learn-To -Swim Program. This agreement address the Program Objectives, Responsibilities of the American Red Cross, Responsibilities of the Owasso City Pool, and indicates that the effective dates are June 1 to August 31, 1993. We have used the American Red Cross for swim lessons for the last three years. Their program has been professionally managed and has proven its cost effectiveness in comparison to when the city hired instructors and operated the program. The staff has reviewed the agreement and finds that it is consistent with previous agreements and meets our needs for the summer of 1993. In two related matters, we would note that staff is evaluating both short and long term pool management options and that the Capital Improvements Committee will be reviewing the long term capital expenditures potentially needed to properly address the community's future swimming demands. RECOMMENDATION: The staff recommends Council approval of the Letter of Agreement between the City of Owasso and the American Red Cross. ATTACHMENT: Letter of Agreement LETTER OF AGREEMENT Owasso City Pool Learn-to -Swim Program PROGRAM OBJECTIVES 1. To provide affordable swim lessons to the Tulsa/Owasso community. 2. To increase the number of competent swimmers in the Tulsa/Owasso community. 3. To increase the knowledge of Water Safety in the Tulsa/Owasso community. 4. To make drownings a thing of the past in Oklahoma. ' RESPONSIBILITIES The responsibilities of the American Red Cross are: 1. To promote the Owasso City Pool by including the pool's Learn-to -Swim program in all program promotions. 2. To provide a coordinator for the program, one instructor for every six to ten students and have a lifeguard on duty during the lessons. 3. To P rovide high quality lessons that adhere to the American Red Cross and the Council for National Cooperation in Aquatics Standards. 4. To provide all scheduling, enrollment, and fee collection for the "Learn -to- Swim" program. 5. To certify students through the American Red Cross certificate system, according to their skill levels. (By carrying a certificate, they can continue their education in swimming and water safety skills regardless of their residential location.) 6. Owasso City Pool will receive a minimum of $1.50 per student by the end of September for the use of their facilities. 7. To provide liability insurance benefits for the program. The responsibilities of Owasso City Pool are: 1. To provide clean, well maintained pool facilities. 2. The American Red Cross shall have and enjoy occupancy and use of the pool facility between the hours of 9:00 a.m. and 12:00 noon, Monday through Friday, during the term of this agreement, for the sole purpose of conducting the swimming lessons. This Letter of Agreement between Tulsa Area Chapter and Owasso City Pool is in effect from June 1 to August 31, 1993. Richard Mackey Director, Health and Safety Services in Tulsa Area Chapter Representative Pool Representative Date Date TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: STEVE COMPTON ASSISTANT CITY MANAGER SUBJECT: COMMUNITY DEVELOPMENT GRANT - ECONOMIC DEVELOPMENT FINANCING, FY '92 CITY OF OWASSO/MAX BUCHANAN COMPANY DATE: January 27, 1993 BACKGROUND: In December, the Council authorized the Mayor to sign and return a photocopy of Executive Director, Greg Main's notification letter to indicate its acceptance of a CDBG -EDF grant offered by the Department of Commerce. It was noted by ODOC that a contract would be forthcoming and that the amount of $151,203 had been reserved to construct the following infrastructure improvements in the area of the Max Buchanan site: 1) Street Extension (sub -base) $ 72,008 2) Water Line Extension $ 35,249 3) Sewer Line Extension $ 20,991 4) Professional Fees $ 15,614 5) Project Administration 7,341 Total $151,203 The staff has received the contract and related documents. These have been reviewed and found to be satisfactory, except that on page 2 of 4, Part III of the contract it is indicated that ODOT will provide a $68,756 grant for surfacing the access road. As was noted when the ODOT contract was before the Council for action, their grant had been reduced to $40,000 and Tulsa County would provide the equipment and labor needed to lay the road surface. The staff has contacted the ODOC staff and confirmed that this activity will be completed by using a $40,000 grant from ODOT and a minimum of $28,756 from Tulsa County in the form of in -kind labor and equipment cost. The ODOC staff is agreeable; however, it will be necessary to amend the final contract to show Department of Transportation and /or Tulsa County as the Other Sources Of Funds for this activity. RECOMMENDATION: Given the change noted above, the staff would recommend Council approval of the contract and authorization for the Mayor to execute the required documents. I ATTACHMENTS: 1. CDBG -EDF Contract 2. Certificate Of Authorized Signatures 3. Contract Certification Regarding Lobbying I - 1 of 2 FEI $73- 6069613 CONTRACT - CDBG PART I SUMMARY AND SIGNATURES Oklahoma Department of Commerce State of Oklahoma City of Owasso Community Development Block Grant - Nonentitlement 5252 CDBG ED 92 $151,203.00 U.S. Department of Housing and Urban Development (HUD). Catalog of Federal Domestic Assistance (CFDA) Number 14.219. Funds from Fiscal Year 1992 Funding Period: December 1, 1992 through November 30, 1994 Submit Requisitions to: Issue Payment to: Sherwood Washington CDBG Department of Commerce City of Owasso P. O. Box 26980 207 S. Cedar Oklahoma City, OK 73126 -0980 Owasso, OR 74055 Part I - Summary and Signatures Contracting Agency: Contractor: Project Description: Provide funds to the City of Owasso for Contract Title: certain infrastructure improvements necessary to facilitate the construction of a new industrial facility by the Max Contract Number: Buchanan Company which shall provide job Amount: income individuals in the Owasso area. Source: I - 1 of 2 FEI $73- 6069613 CONTRACT - CDBG PART I SUMMARY AND SIGNATURES Oklahoma Department of Commerce State of Oklahoma City of Owasso Community Development Block Grant - Nonentitlement 5252 CDBG ED 92 $151,203.00 U.S. Department of Housing and Urban Development (HUD). Catalog of Federal Domestic Assistance (CFDA) Number 14.219. Funds from Fiscal Year 1992 Funding Period: December 1, 1992 through November 30, 1994 Submit Requisitions to: Issue Payment to: Sherwood Washington Patricia Marlar, Mayor Department of Commerce City of Owasso P. O. Box 26980 207 S. Cedar Oklahoma City, OK 73126 -0980 Owasso, OR 74055 Agreement Components: Part I - Summary and Signatures Part II - General Terms and Conditions Part III - Specific Terms and Conditions Project Description: Provide funds to the City of Owasso for certain infrastructure improvements necessary to facilitate the construction of a new industrial facility by the Max Buchanan Company which shall provide job opportunities for low- and moderate - income individuals in the Owasso area. CDBG I - 2 of 2 SIGNATURES - EXECUTION OF CONTRACT AGREEMENT The rights and obligations of the parties to this contract are subject to and governed by Part II - General Terms and Conditions and Part III - Specific Terms and Conditions. To the extent of any inconsistency between the General and the Specific, the Specific governs. EXECUTED BY: EXECUTED BY: City of Owasso Oklahoma Department of Commerce Signature Signature Patricia Marlar, Mayor Connie Irby, Deputy Director Date Date ATTEST: Signature Typed Name and T tle (CITY SEAL) OPEN MEETING LAW COMPLIANCE I hereby certify that contractor has executed this contract in compliance with the Open Meeting Law, 25 O.S. 301, et sea. Signature Typed Name and Title Payments pursuant to this contract are to be made only from monies made available to the Oklahoma Department of Commerce 4 by HUD for the CDBG program for nonentitlement areas. Notwithstanding any other provisions, payments to Contractor by the Oklahoma Department of Commerce are subject to the availability of such funds to the Oklahoma Department of Commerce, as determined by federal and /or state action and /or law. The Oklahoma Department of Commerce may take any action necessary in accord with such determination. pursuant to this contract shall be a. Contractor shall comply with Treasury Circular 1075, used only for concerning cash management of federal funds, and with the in Part I for the purposes and activities thereto, which are published in the Oklahoma Department to by the Oklahoma Department of of 8 Oklahoma Department of Commerce funds may b. Contractor shall comply with 24 CFR Part 85, Uniform Administrative Requirements for Grants and Cooperative CDBG 192 Agreements to State and Local Governments, 24 CFR Part incurred either prior to or after PART II - GENERAL TERMS AND CONDITIONS OMB Circular A -87, Cost Principles for State and Local Governments, except as directed otherwise in writing by the Oklahoma Department of Commerce, as they relate to CONTRACTOR the application, acceptance and use of federal funds, and a. Contractor will accomplish the project detailed in Part III in accordance with the terms and conditions of this pursuant thereto, which are published in the Oklahoma implementation Manual. contract. Department of Commerce Contractors b. None of the work and services covered by this contract may be subcontracted without prior written approval of of Commerce. All technical and the Oklahoma Department administrative consultants engaged by the Contractor must be fully qualified as determined by the Oklahoma Depart - ment of Commerce. C. In no event will any subcontract incur obligation on the part of the Oklahoma Department of Commerce. 2. DEPARTMENT OF COMMERCE The Oklahoma Department of Commerce will provide funding for the up to the total amount contracted. project 3. AVAILABILITY OF FUNDS Payments pursuant to this contract are to be made only from ' monies made available to the Oklahoma Department of Commerce 4 by HUD for the CDBG program for nonentitlement areas. Notwithstanding any other provisions, payments to Contractor by the Oklahoma Department of Commerce are subject to the availability of such funds to the Oklahoma Department of Commerce, as determined by federal and /or state action and /or law. The Oklahoma Department of Commerce may take any action necessary in accord with such determination. the time period specified. 4. CONTRACT ADMINISTRATION pursuant to this contract shall be a. Contractor shall comply with Treasury Circular 1075, used only for concerning cash management of federal funds, and with the Oklahoma Department of Commerce requirements pursuant in Part I for the purposes and activities thereto, which are published in the Oklahoma Department of Commerce Contractors Implementation Manual. to by the Oklahoma Department of Oklahoma Department of Commerce funds may b. Contractor shall comply with 24 CFR Part 85, Uniform Administrative Requirements for Grants and Cooperative be used for expenses Agreements to State and Local Governments, 24 CFR Part incurred either prior to or after 570, Community Development Block Grants Final Rule, and OMB Circular A -87, Cost Principles for State and Local Governments, except as directed otherwise in writing by the Oklahoma Department of Commerce, as they relate to the application, acceptance and use of federal funds, and with the Oklahoma Department of Commerce requirements pursuant thereto, which are published in the Oklahoma implementation Manual. Department of Commerce Contractors 5. COMPENSATION TO CONTRACTOR the time period specified. a. Funds made available pursuant to this contract shall be used only for expenses incurred during the period funded as specified in Part I for the purposes and activities approved and agreed to by the Oklahoma Department of Commerce. No Oklahoma Department of Commerce funds may be used for expenses incurred either prior to or after the time period specified. CDBG /92 II - 2 of 8 b. The Oklahoma Department of Commerce shall disburse funds to Contractor in accordance with Part III upon receipt and approval by the Oklahoma Department of Commerce of timely, properly executed requests for funds. Contractor may file Requests for Funds on an as- needed basis, which shall be limited to the minimum amount needed and shall be timed for actual disbursement upon receipt. The funds must be maintained in an interest - bearing account. Contractor shall file an Oklahoma Department of Commerce Monthly Expenditure Report by the tenth (10th) of the following month until all cash on hand is expended. c. All requests for funds should be submitted -to the Oklahoma Department of Commerce during the period funded. A final claim may be submitted no later than sixty (60) days after the final date of they period funded. Said claim will be allowed only for reimbursement of actual expenditures. Any claim submitted after the sixty (60) days may be disallowed by the Oklahoma Department of Commerce. d. If the Oklahoma Department of Commerce determines that payment based on estimated expenditures is resulting in accumulation of excessive balances of cash on hand, the Oklahoma Department of Commerce may modify the basis for compensation to Contractor to effect proper cash manage- ment. e. If a question arises as to the validity of any claim made under this contract and the parties are unable to resolve such question by negotiation, then the Contractor may request a resolution of the question pursuant to the terms of this contract and the administrative procedures available through the Oklahoma Department of Commerce rules promulgated pursuant to the Oklahoma Administrative Procedures Act, 75 O.S. Sections 251, et sea. 6. RECORDS, REPORTS, DOCUMENTATION Contractor shall maintain records and accounts, including property, personnel and financial records, that properly document and account for all project funds. Specific types and forms of record are required in the Oklahoma Department of Commerce Contractors' Implementation Manual previously received by the Contractor. The Manual is hereby annexed and incorporated and made a part of this contract. The Manual may be amended during the current contract year by the Department of Commerce. All amendments shall be based on changes in federal and state laws or regulations and shall be mailed to the Contractor at the address indicated in Part I of the contract. b. Contractor shall retain all books, documents, papers, records and other materials involving all activities and transactions related to this contract for at least three (3) years from the date of submission of the Final Expenditure Report or until all audit findings have been resolved, whichever is later. All records and accounts shall be made available on demand to the Oklahoma State Auditor and Inspector, the U. S. Department of Housing and Urban Development, the Comptroller General and the Oklahoma Department of Commerce, its agents and designees, for inspection and use in carrying out its responsibilities for administration of funds. AU EAR CDBG 192 II 3 of 8 7. CLOSING OUT OF PERIOD FUNDED a. Contractor shall promptly return to the Oklahoma Department of Commerce any funds received under this contract that are not obligated as of the final date of the period funded. Funds shall be considered obligated only if goods and services have been received as of the final date of the period funded. b. The Oklahoma Department of Commerce may unilaterally M modify this contract to subtract the total amount of funds not obligated by the Contractor as of the final date of the period funded. The Contractor cannot close out the contract until the I; total projected positions identified in Part III have been created and all monitoring issues have been resolved and approved by the Oklahoma Department of Commerce. d. Contractor shall submit closeout documents in accordance with the forms and policy in the Contractors Implementa- tion Manual no later than sixty (60) days after the final date of the period funded or upon completion of the project. 8. AUDIT, DISALLOWED COSTS a. Contractor shall comply with the Oklahoma Department Commerce's audit policy including the Single Audit of 1984 (P.L. 98 -502, 31 U.S. Code 7501, et sea.), Act as Contractor has expended contract funds on unallowable applicable to governmental grantees. costs, Contractor shall reimburse the Oklahoma Department b. Contractor shall provide the Oklahoma Commerce timely copies of reports on any include funds received from the Oklahoma Department audits that Department Commerce. 9. PROCUREMENT c. In the event an audit results in the determination that Contractor has expended contract funds on unallowable as costs, Contractor shall reimburse the Oklahoma Department of Commerce in full for all such costs. 9. PROCUREMENT a. Procurement, management and disposition of property by federal acquired with contract funds shall be governed and state law, and by 24 CFR Part 85.36 as applicable, except as otherwise directed by the Oklahoma Department of Commerce in the Contractors Implementation Manual. Applicable state laws include the Public Competitive Bidding Act of 1974, 61 O.S. 101, et seq. b. Materials acquired for construction purposes shall be deemed real property once they have become part of the construction. 10. EMPLOYEE BENEFITS Contractor has full responsibility for payment of workers' compensation insurance, unemployment insurance, social security, state and federal income tax, and any other deductions required by law for its employees. 11. PROGRAM INCOME a. Program Income is determined to be all loan repayments of principal and interest from the Company to the 11 b. Contractor specifically certifies and assures that it will comply with applicable terms of the following statutes, regulations and executive orders: (1) Equal Opportunity (a) Title VI of the Civil Rights Act of 1964 (P.L. 88- 352, 42 USC 2000d, et sea.), which prohibits discrimination on the basis of race, color or national origin under any program receiving federal funds. HUD regulations are at 24 CFR Part 1. (b) Title VIII of the Civil Rights Act of 1968 (P.L. 90- 284, 42 USC 3600 -3620, 1988), popularly known as the Fair Housing Act. (c) Executive Order 11063 (1962) as amended by Executive Order 12259, which requires equal opportunity in housing. HUD regulations are at 24 CFR Part 107. (d) Section 109 of the Housing and Community Development Act of 1974, which prohibits discrimination on the basis of race, color, national origin or sex in connection with funds made available pursuant to the Act. Section 109 also prohibits discrimination on the basis of age and handicap as provided in: (i) Age Discrimination Act of 1975 (42 USC 6101, et sea.) (ii) Section 504 of Rehabilitation Act of 1973 (29 USC 794) Regulations are at 24 CFR Part 570.601. (e) Section 3 of the Housing and Urban Development Act of 1968 (12 USC 1701u), which requires that, to the greatest extent feasible, opportunities for training and employment be provided to lower - income persons in the project area, and that contracts for work in connection with the project be awarded to business in, or owned in substantial part by residents of the project area. Regulations are at 24 CFR Part 135. CDBG 192 II - 4 of e,� Contractor. This definition is not all- inclusive and is meant only to cover the loan repayments. b. Contractor shall account to the Oklahoma Department of Commerce for all Program Income resulting from this agreement, as provided in 24 CFR 570.504. Disposition of Program Income shall be in accordance with the Certification of Choice of Program Income Disposition form executed by the Contractor. C. Contractor shall provide to the Oklahoma Department of Commerce timely payments of Program Income and status reports. 12. CERTIFICATIONS BY CONTRACTOR a. Contractor expressly agrees to be solely responsible to insure that the use of monies received under this contract complies with all federal, state and local statutes, regulations and other legal authority, all as w modified from time to time, that affect the use of said monies. b. Contractor specifically certifies and assures that it will comply with applicable terms of the following statutes, regulations and executive orders: (1) Equal Opportunity (a) Title VI of the Civil Rights Act of 1964 (P.L. 88- 352, 42 USC 2000d, et sea.), which prohibits discrimination on the basis of race, color or national origin under any program receiving federal funds. HUD regulations are at 24 CFR Part 1. (b) Title VIII of the Civil Rights Act of 1968 (P.L. 90- 284, 42 USC 3600 -3620, 1988), popularly known as the Fair Housing Act. (c) Executive Order 11063 (1962) as amended by Executive Order 12259, which requires equal opportunity in housing. HUD regulations are at 24 CFR Part 107. (d) Section 109 of the Housing and Community Development Act of 1974, which prohibits discrimination on the basis of race, color, national origin or sex in connection with funds made available pursuant to the Act. Section 109 also prohibits discrimination on the basis of age and handicap as provided in: (i) Age Discrimination Act of 1975 (42 USC 6101, et sea.) (ii) Section 504 of Rehabilitation Act of 1973 (29 USC 794) Regulations are at 24 CFR Part 570.601. (e) Section 3 of the Housing and Urban Development Act of 1968 (12 USC 1701u), which requires that, to the greatest extent feasible, opportunities for training and employment be provided to lower - income persons in the project area, and that contracts for work in connection with the project be awarded to business in, or owned in substantial part by residents of the project area. Regulations are at 24 CFR Part 135. (b) Copeland (Anti - kickback) Act (18 USC 874, 40 USC 176c), which applies to all contracts covered by CDBG 192 II - 5 of 8 (f) Executive Order 11246 (1965), which prohibits discrimination on the basis of race, color, religion, sex or national origin, and requires affirmative action in connection with federally assisted construction contracts. Regulations are at 24 CFR Part 130 and 41 CFR Part 60 -1. (2) Labor Standards (a) Davis -Bacon Act (40 USC 276a- 276a -5), which requires payment of the prevailing wage for the locality to workers on most construction contracts above $2,000. Housing rehabilitation projects of fewer than eight units are exempt. Regulations are at 29 CFR Sections 1 and 5. (b) Copeland (Anti - kickback) Act (18 USC 874, 40 USC 176c), which applies to all contracts covered by Davis -Bacon and provides that workers must be paid weekly, with only permissible deductions allowed. Regulations are at 29 CFR Section 3. (c) Contract Work Hours and Safety Standards Act (40 USC 327, et secT.) , which requires overtime compensation. Regulations are at 29 CFR Section 5. (3) Environment (a) National Environmental Policy Act of 1969 (P.L. 91- 190, 42 USC 4231, et seq.) and other provisions of law that further the purposes of law that further the purposes of the Act as specified in HUD Environ- mental Review Regulations at 24 CFR Part 58. (b) Contractor's chief executive officer hereby assumes the status of a responsible federal official under the National Environmental Policy Act of 1969 and accepts jurisdiction of the state and federal courts for the purpose of enforcement responsibilities as such an official. (4) AccTuisition and Relocation Uniform Relocation Assistance and Real Property Acquisi- tion Policies Act of 1970, as amended (P.L. 91-646, P.L. 100 -17). Section 305 of Title III and Section 210 of Title II require state and local recipients to comply with real property acquisition and relocation require - ments set forth in said Act. Regulations are at 49 CFR, Part 24. (5) Lead -Based Paint Title IV of the Lead -Based Paint Poisoning Prevention Act (42 USC 4831, et seg.), which prohibits the use of lead - based paint in residences for which federal assistance is provided. Regulations are at 24 CFR Part 35. 13. HOLD HARMLESS CLAUSE Contractor shall, within (imitations placed on such entities by state law, save harmless the State of Oklahoma, its agents, officers, and employees from all claims and actions, and all expenses defending same, that are brought as a result of any injury or damage sustained by any person or property in consequence of any act or omission by Contractor. Contractor shall, within limitations placed on such entities by state CDBG /92 II - 6 of 8 law, save harmless the State of Oklahoma, its agents, officers, and employees from any claim or amount recovered as a result of infringement of patent, trademark, copyright, or from any claim or amounts arising or recovered under Workers' Compensation Law or any other law. In any agreement with any subcontractor or any agent for Contractor, Contractor will specify that such subcontractors or agents shall hold harmless the State of Oklahoma, its agents, officers, and employees, for all the hereinbefore described expenses, claims, actions, or amounts recovered. 14. POLITICAL ACTIVITY a. All employees of the Contractor shall observe the limitations on political activities to which they may be subject under the Hatch Act (5 USC 1501, et sea., 18 USC 595) . b. No portion of the contract funds may be used for any political activity or to further the election or defeat of any candidate for public office. C. No portion of the contract funds may be used for lobbying activities. 15. NO- CONFLICT COVENANT Contractor covenants that no officers or employees of any governing board of Contractor have any interest, direct or indirect, and that none shall acquire any such interest during their tenure or for one year thereafter that would conflict with the full and complete execution of this contract. Contractor further covenants that in the performance of this contract no person having any such interest will be employed. 16. PUBLICATIONS AND OTHER MATERIALS No material produced in whole or in part under this contract shall be subject to copyright in the United States or any other country. The Oklahoma Department of Commerce shall have unrestricted authority to publish, disclose, distribute and otherwise use, in whole or in part, any reports, data or other materials prepared under this contract. b. Any publication or other material produced as a result of this contract shall include in a prominent location near the beginning the following statement: This (type of material) was financed in whole or in part by funds from the U.S. Department of Housing and Urban Development as administered by the Oklahoma Department of Commerce. 17. INTERPRETATION, REMEDIES a. In the event the terms or provisions of this contract are breached by either party or in the event that a dispute shall arise between the parties regarding the meaning, requirements or interpretation of the terms and provision of this contract, then such breach or dispute shall be resolved pursuant to the terms of this contract and the administrative procedures available through the Oklahoma Department of Commerce rules promulgated pursuant to the Oklahoma Administrative Procedures Act, 75 O.S. Sections 251, et sea. b. This contract may be terminated or suspended by the Oklahoma Department of Commerce, in whole or in part, for cause, after notice and an opportunity for Con- why such action should not be tractor to present reasons CDBG192 II - 7 of 8 b. Neither forbearance nor payment by the Oklahoma Department of Commerce shall be construed to constitute waiver of any remedies for any default or breach by Contractor that exists then or occurs later. 18. MODIFICATION AMENDMENT a. This contract is subject to such modification as may be required by federal or state law or regulations. Any such modification may be done unilaterally by the Oklahoma Department of Commerce. b. This contract may be for a multi -year project, and as such may be extended, renewed, or otherwise amended only upon written agreement of the duly- authorized represent - atives of both parties. C. A waiver by the Oklahoma Department of Commerce of any provision of this contract must be in writing and signed by the Director of the Oklahoma Department of Commerce or his designee. 19. TERMINATION OR SUSPENSION a. This contract may be terminated or suspended in whole or in part at any time by written agreement of the parties. b. This contract may be terminated or suspended by the Oklahoma Department of Commerce, in whole or in part, for cause, after notice and an opportunity for Con- why such action should not be tractor to present reasons taken. Procedures for such a process shall be in the General Rules of Practice and accordance with Procedure of the Department. Grounds constituting cause include but are not limited to: (1) Contractor fails to comply with provisions of this contract or with any applicable laws, regulations, guidelines or procedures, including the Oklahoma Department of Commerce policies and issuances, or is unduly dilatory in executing its commitments under this contract. (2) Purposes for the funds have not been or will not be fulfilled, or would be illegal to carry out. (3) Contractor has submitted incorrect or incomplete documentation pertaining to this contract. (4) The Contractor is unduly dilatory in executing its commitments under a prior contract with the Oklahoma Department of Commerce, including, but not limited to, submission of any audits due, resolu- tion of audit findings, and monitoring results. C. In the event of termination or suspension, Contractor shall be entitled to payment for otherwise valid and allowable obligations incurred in good faith prior to notice of such action, and to reimbursement for reasonable and necessary expenses. Contractor shall reduce to the minimum possible obligations, prepaid expenses and other costs. d. Contractor shall not be relieved of liability to the Oklahoma Department of Commerce for damages sustained by the Oklahoma Department of Commerce by virtue of any breach of this agreement by the Contractor. The Okla- homa Department of commerce may withold payments due under this agreement pending resolution of the damages. 20. SEVERABILITY CLAUSE If any provisions under this contract or its applicationto any person or circumstance is held invalid by any court of competent jurisdiction, such invalidity does not affect any other provision of this contract or its application that can be given effect without the invalid provision or application. OKLAHOMA DEPARTMENT OF COMMERCE DIVISION OF COMMUNITY AFFAIRS AND DEVELOPMENT CDBG BUDGET Name of Contractor: City of Owasso Contract No.: 5252 CDBG ED 92 Address: 207 S. Cedar, Owasso, OR 74055 Contract Period: December 1, 1992 through November 30, 1994 FUNDED ACTIVITY Account BUDGET Number ED Infrastructure Improvements 551201 -0000 Provide funds for infrastructure improvements as follows: 1. The connection to the City's existing sewer distribution system and the installation of 1,550 feet of new 8" PVC sewer distribution lines to the site $ 20,991.00 2. The connection to the City's existing water system and the installation of 1,200 linear feet of new 8" PVC water line to be looped around the facility $ 35,249.00 3. Provide a new 1,300' section of paved roadway from existing City streets to the proposed facility, together with funds for all necessary easements $ 72,008.00 Administration 551010 -0000 $ 7,341.00 Engineering 551241 -0000 $ 15,614.00 Provide funds for engineering inspection of the project. Total $151,203.00 I certify that the budget above is required to accomplish the project in accordance with the terms and conditions of the contract. 6 Signature of Authorized Official Date CERTIFICATE OF AUTHORIZED SIGNATURES Name the chief elected or appointed official of certify that I am Name of Organization (city /county /non - profit, etc.) (hereinafter Contractor), which contracts with the Oklahoma Department of Commerce. I certify that each such contract will be signed for and on behalf of Contractor pursuant to authority granted by its governing body and within the scope of its legal powers. I certify that the persons named below as contract signatories are authorized to sign all contracts and related documents issued to Contractor by the Oklahoma Department of Commerce's Division of Community Affairs and Development and that the persons named as Fiscal Signatories are authorized to sign all fiscal and record - keeping documents on behalf of Contractor. This certification is effective with the date shown below and shall remain in effect until revised or canceled by Contractor. CONTRACT SIGNATORIES (Please Select Three) Typed Name and Title of Contract Signatory Signature Typed Name and Title of Contract Signatory Signature Typed Name and Title of Contract Signatory Signature FISCAL SIGNATORIES (Please Select Three) Typed Name and Title of Fiscal Signatory Signature Typed Name and Title of Fiscal Signatory Signature Typed Name and Title of Fiscal Signatory Signature CONTRACTOR RECOGNIZES THAT IT HAS FULL RESPONSIBILITY TO GIVE THE OKLAHOMA DEPARTMENT OF COMMERCE TIMELY NOTICE OF ANY CHANGE IN THE INDIVIDUALS DESIGNATED ABOVE, OR OF ANY CHANGE OR LIMIT IN THEIR AUTHORITY, INCLUDING THE TYPE OF PROGRAM OR AMOUNT CONTRACTED FOR. STATE OF OKLAHOMA COUNTY OF (Signature - Chief Elected or Subscribed and sworn to before me this Appointed official) day of 19 (Typed Name) Notary Public (or Clerk or Judge) (Date) (SEAL) MY COMMISSION EXPIRES OKLAHOMA DEPARTMENT OF COMMERCE DIVISION OF COMMUNITY AFFAIRS AND DEVELOPMENT CONTRACT CERTIFICATION REGARDING LOBBYING The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Organization Name Contract Number Typed Name and Title of Authorized Signature of Authorized Representative Representative TO: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: RODNEY J. RAY ISUBJECT: CITY ATTORNEY'S REQUEST TO FILE DISCLAIMER OF INTEREST DATE: JANUARY 28, 1993 BACKGROUND: The developers of Pleasant View addition (located on 96th Street near Windsor Lake) have filed a petition requesting that the District Court abandon and vacate a right -of -way easement located within the addition. The request relates to a right -of -way that contains a "stub street" in the northeast portion of the addition. The stub street was platted and constructed to provide access to the property west of the addition. However, when that property (Windsor Lake) was developed the Pleasant View stub street was not utilized as an access point. Therefore, the stub street and its right -of -way is not needed. This has prompted the Pleasant View developers to petition the Court for its abandonment. Evidently, in their effort to ensure all parties were named in the petition, the developers attorney included the City of Owasso as a named defendant. The right -of -way involved is located in the County. As far as Mr. Cates and I can determine, the City has no involvement as a defendant in this case. The request for Council authorization of the filing of a "Disclaimer of Interest" is made by Mr. In Cates as a means of removing the City from the case. Correspondence from Mr. Cates is attached as well as the proposed disclaimer. If you have questions regarding this matter, please call Mr. Cates or me. RECOMMENDATION: The staff will recommend that the City Council authorize the City Attorney to execute and file a disclaimer of interest in the matter of Lora Maxine Shay, et al v. City of Owasso, et al, Case # CJ 93 -40. ATTACHMENTS: 1. Correspondence from Mr. Cates dated January 20, 1993 2. Proposed Disclaimer of Interest 918 -582 -7447 Mr. Rodney Ray City manager City of Owasso 207 South Cedar Owasso, Oklahoma RONALD D. CATES Attorney at Law Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 74055 January 20, 1993 FAX 918 -582 -0166 In Re: Lora Maxine Shay et. al, v. City of Owassao, et al, Tulsa County District Court. - Case Number CJ 93 -40 Dear Mr. Ray: In accordance with our conversation of the 19th day of January, 1993, I am corresponding for purposes of requesting your placement on the agenda of the City Council for the meeting of the 2nd day of February, 1993, the matter of consideration of authorizing the city attorney to execute and file the enclosed Disclaimer of Interest in the above .referred to civil proceeding. As I indicated in our conversation, a review of this matter indicates that this property is outside the corporate limits of the City of Owasso, Oklahoma. Further, I have conversed with the attorney for the plaintiff who advises me that the only reason for i<<<lusion of the City of Owasso, Oklahoma, in the proceeding was to "cover all bases ". It is my opinion that the City of Owasso, Oklahoma, has no legal interest in this matter as such is beyond the jurisdiction of the city. Accordingly, I feel the most expeditious manner of ceasing our participation in this action would be the filing of a Disclaimer of Interest. Should you have any questions or comments concerning the forego' , please do not hesistate to contact me. Thank you in advan fit your attention to this matter. Sincerely Ronald 1. Cates City Attorney PDC /nhc 1 OBA#1565 IN THE DISTRICT COURT IN AND FOR TULSA COUNTY STATE OF OKLAHOMA LORA MAXINE SHAY, Trustee of the ) John Westley Shay and Lora Maxine Shay ) Living Trust, THEDA JUNE WETTERN AND ) JON MICHAEL WERTHERN, ) Plaintiffs, ) VS. ) CJ 93 -40 CITY OF OWASSO, OKLAHOMA, a municipal ) corporation; BOARD OF COUNTY ) COMMISSIONERS OF TULSA COUNTY, OKLAHOMA;) OKLAHOMA NATURAL GAS COMPANY, A ) DIVISION OF ONEOK, INC., a corporation, ) VERDIGRIS VALLEY ELECTRIC COOPERATIVE, ) INC., an incorporated rural electric ) cooperative; RURAL WATER DISTRICT NO. 3,) an incorporated non - profit water ) district; PUBLIC SERVICE COMPANY OF ) OKLAHOMA, a corporation; GTE SOUTHWEST, ) INC., a corporation; SOUTHWESTERN BELL ) TELEPHONE COMPANY, a corporation; ) UNITED ARTISTS CABLE, A DIVISION OF ) TULSA CABLE TELEVISION, INC., a ) corporation; and WESTERN UNION ) CORPORATION, a corporation, ) Defendants. ) DISCLAIMER OF INTEREST Comes now the Defendant, the City of Owasso, Oklahoma, a municipal corporation, by and through it's duly appointed and acting City Attorney, Ronald D. Cates, and hereby disclaims any interest in and to the above styled and numbered matter. Ronald D. Cates, OBA #1565 Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 (918) 582 -7447 CERTIFICATE OF MAILING I hereby certify that on the day of January, 1993, I mailed a true and correct copy of the above and foregoing Disclaimer to: R. Mark Petrich, Attorney at Law, 4100 Bank of Oklahoma Tower, One Williams Center, Tulsa, Oklahoma 74172, with proper postage thereon, fully prepaid. Ronald D. Cates TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO PP FROM: JIM McELRATH DIRECTOR, OWASSO COMMUNITY CENTER SUBJECT: CONTRACT WITH OWASSO GOLDEN AGERS TO HIRE, SUPERVISE AND PAY (A) DRIVER(S) FOR THE SENIOR VAN OWNED BY OWASSO GOLDEN AGERS, INC. DATE: January 27, 1993 BACKGROUND: The Owasso Golden Agers ( "OGA ") own a Senior Citizens Van through a grant from the State of Oklahoma Special Unit on Aging. Since the startup of the Senior Nutrition Program, around the first part of October, 1992 there has been an increase in the number of days that this van has been in use each week from three to five. In addition there has also been a fifty percent increase in the number of riders per day (from 318 trips per month for the months of May, 1992 through September, 1992 to over 600 trips during the months of October, 1992 through December, 1992) and a forty -four percent increase in the number of individuals using the van from an average of 39 to an average of 57 during the same period. In addition to the above usage, the Community Center Van, purchased by the City in July, 1992 has also been used for transportation of individuals when there were too many for one van to pick up or deliver during a limited period of time or when there were riders who needed to take advantage of the handicapped access to the van. (We have been averaging use each week of two persons in wheelchairs, two persons with walkers and about ten others per week in this van.) The increase in the number of riders for both the vans has made it difficult to ensure an adequate number of volunteer drivers each week, particularly on days when both vans are needed (which is usually at least two days each week on the average.) In addition, there have been times when we could have transported seniors to other activities or appointments had a driver been readily available. The ideal would be to have (a) paid driver(s) who would be on call each morning and volunteer drivers who would be able to cover the other van or special trips or needs. In anticipation of such an increase in usage and of increased difficulty in adequate volunteer coverage, OGA applied for and received an increase in the funding that it receives from the Metropolitan Tulsa Transit Authority ( "MTTA ") for operation of the Senior Citizens Van, in an amount great enough to cover the cost of paying for a part-time driver or drivers (no more than twenty hours per week total.) The budgeted increase was for $6500.00, more than enough to cover the annual cost of a driver for twenty hours per week at minimum wage (wages: $4420; FICA $338; Unemployment insurance, $44; and administrative cost, $48; for a total of $4850 per year.) MEMORANDUM ' SENIOR VAN DRIVER JANUARY 12, 1993 OGA asked me to work with Ron Cates, City Attorney, to draw up a contract that would be presented on their behalf to the City Council, setting forth their desire to have the City assist them in the hiring, supervision and payment of said driver(s.) As set forth in the contract, OGA is willing to reimburse the City the cost of wages, tax and insurance and one percent of the total of these to help cover the city's cost of administration. OGA believes that the benefit of everyone concerned would be well served by having the expertise of the City staff involved in these procedures. The Contract presented by the OGA has been approved as to form and legal content by Mr. Cates (see Attachment.) RECONEMENDATION Staff will recommend that the Council approve a contract between the Owasso Golden Agers and the City of Owasso and that the Mayor be authorized to execute such document. ATTACHM ENT Contract presented by Owasso Golden Agers AGREEMENT TO PROVIDE SERVICES This agreement made and entered into as of the 1st day of February, 1993, and to r end at 12:00 p.m. on the 31st day of OctQb er, 1994, by and between the Owasso Golden Agers Incorporated, organized under the laws of the State of Oklahoma, with offices at 301 S. Cedar, Owasso, Oklahoma, 74055, ( "OGA ") and City of Owasso with offices located at 207 S. Cedar (P.O. Box 180) Owasso, Oklahoma, 74055, ( "Contractor ") WITNESSETH: ' WHEREAS, OGA contracted with Metropolitan Tulsa Transit Authority ( "Tulsa Transit ") to coordinate and administer existing elderly and disabled transportation services within the Owasso area and to receive from Tulsa Transit in return therefor Title III-B state funds awarded by the Department of Human Services Special Unit on Aging for Nutrition and Supportive Services; and WHEREAS, the request was granted in an effort to provide more efficiently, effectively and economically such transportation services; and WHEREAS, as a part of the City-wide effort to coordinate and supply existing elderly and disabled services, Contractor and OGA agree as follows: 1. In return for the receipt of a portion of funds received by OGA from Tulsa Transit (not to exceed the amount of hours worked times minimum wage, plus one percent of this amount for administrative costs,) Contractor shall hire, supervise and pay up to two (2) drivers to support the Owasso Senior Citizens Nutrition Program. Hiring selection shall be in accordance with standard operating procedures of the City of Owasso. Special consideration shall be given to the hiring of an older citizen, all other qualifications being equal, to conform with the OGA contract with Tulsa Transit. The position(s) shall be for no more than twenty hours per week total, determined upon call by the Director of the Owasso Community Center or his designee. The wage shall be minimum with no fringe benefits. 2. Contractor and OGA further agree that the cost of such services shall not exceed full repayment of the amount of wages and payroll taxes, plus one percent of the total wages , and taxes for administrative costs, and further that the amount of funds to be paid to Contractor is subject to the receipt by OGA of State and Federal funds under Title III -B of the Older Americans Act. It is further specifically understood and agreed by Contractor that invoices for services performed must be submitted to OGA timely for payment to be made without delay. 3. Contractor further agrees that in the performance of this Agreement it shall not discriminate against any person because of race, religion, color, disability, sex or national origin. Contractor further agrees that all books, records and reports required to be kept shall ' be open to Tulsa Transit or OGA for inspection at all reasonable times during regular business hours. 4. Contractor and OGA further agree that this Agreement may be terminated upon ' thirty (30) days written notice either party to the other at the respective office address above set forth. IN WI NFSSS WIiEREOF, the parties hereto have executed this Agreement in Multiple copies for the use and purposes herein set forth. OWASSO GOLDEN AGERS, INCORPORATED By: Title: President Date: City of Owasso By: Title: Mayor Date: MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: JIM McELRATH DIRECTOR, OWASSO COMMUNITY CENTER SUBJECT: BUDGET AND INCOME SUPPLEMENTALS TO ENABLE THE EXECUTION OF THE CONTRACT WITH THE OWASSO GOLDEN AGERS PERTAINING TO HIRING, SUPERVISION AND PAYMENT OF VAN DRIVER(S) DATE: January 27, 1993 In order for the Contract between the City of Owasso and the Owasso Golden Agers to become operative, it is necessary for the Community Center budget FY93 to be revised and for the " income derived from the reimbursement of the City by the Owasso Golden Agers to be included supplementarily in the FY93 income portion of the city budget. The following supplementals are proposed: A. Budget supplemental to the "Personal Services" portion of the Community Center budget: 1. 51- 614 -5101, Salaries and Wages: increase by $1870 from $42,248 to $44,118 2. 51 -614 -5110, FICA: increase by $143 from $3232 to $3375 3. 51- 614 -5120, Unemployment insurance: increase by $19 from $202 to $221 B. Income supplement to the general fund: 51 -4600 -302, Reimbursement: increase by $2052 The total of the budget supplemental is $2032. This amount, plus one percent of this total to cover administrative costs, would be covered in full by the income supplement. RECOMMENDATION The staff will recommend Council approval of an amendment to the General Fund Budget Revenue projections, increasing revenue by $2052, and a supplemental appropriation to the Community Center /Senior Citizen Department of $2032. MEMORANDUM FROM: SUBJECT: DATE: BACKGROUND HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO RODNEY J. RAY, CITY MANAGER REQUEST TO ALLOW A CARRY -OVER BUDGET JANUARY 29, 1993 Historically, one of the methods used in determining departmental appropriations has been to benchmark new budget appropriations against the previous years expenditures. This philosophy generally resulted in the departmental attitude of "spend it or lose it ". In an effort to encourage sound budget management practices, the staff has determined that a carry-over budget would be consistent with the current management philosophy that encourages new and innovative ideas. If department directors knew their savings would be available for use in a subsequent budget year, I believe it would help to promote not only some increased efficiencies, but also some long -range planning by departments based on their ability to save money over a multi-year time period for planned, large expenditures. Initially, we thought about developing a long, detailed policy relating to this carry-over budget request. However, after several meetings with staff, it has been determined that the best approach is to ask the Council to allow the budget process to include carry-over funds effective with the next budget (FY '93 -'94). Carry-over funding requests could be in the form of a request for a specific expenditure or could simply be shown as a "savings" for a future, planned purchase. Regardless of how it is listed, all budget items still require justification to the City Manager and approval by the City Council. In seeking ways to promote more responsible and accountable top level management, I believe this approach will produce substantial results that are immediate in nature. If you have any questions regarding this proposal, please contact Sherry Bishop or me. RECOMMENDATION Staff recommends Council approval of the carry-over budget practice effective with the FY 1993 -94 budget process. MEMORANDUM TO: HONORABLE MAYOR AND THE CITY COUNCIL CITY OF OWASSO FROM: RODNEY J. RAY SUBJECT: REQUEST FOR APPROVAL OF PSO POLE USE AGREEMENT DATE: JANUARY 29,1993 BACKGROUND: The staff has developed a new school zone warning system for the 76th Street and Birch intersection in response to continuing problems in this area. That system includes flashing warning lights to be located at both extremes of the school zone. In order to make the system easy to activate and provide power to the lights, PSO has been asked to allow the use of their power poles for carrying wire to the lights. The company has agreed to allow such use provided that a written agreement between the City and PSO is executed. The attached "Agreement For Use of Pole Facilities" has been proposed as a document that will meet that PSO requirement. The proposed agreement provides for a power line to be attached to six poles at a total cost of sixty dollars per year. Additionally, PSO will install the line on the poles. Once the line is installed our crews will install the flashing lights and activate the system. It is hoped that the addition of the warning lights will help to increase the visibility of the school zone and reduce the danger to students who utilize the crossing. It is estimated that all improvements will be completed by March 1st. RECOMMENDATION: staff recommends Council approval of an agreement allowing for the use of Public Service The s pp g Company of Oklahoma poles for the purpose of carrying electrical wire used in the operation of school zone safety lights and that the Mayor be authorized to execute such document. ATTACHMENT: 1. Agreement For Use of Pole Line Facilities AGREEMENT FOR USE OF POLE LINE FACILITIES PUBLIC SERVICE COMPANY OF OKLAHOMA, an Oklahoma corporation, hereinafter referred to as "Lessor," in consideration also of the covenants to be performed by City of Owasso an Oklahoma Municipal Corporation, with an address of 301 S. Cedar, Owasso, OK and a phone number of(918)272-2251 hereinafter referred to as "Lessee," hereby authorizes and permits said Lessee to use the following described facilities owned by Lessor; subject, however, to the Terms and Conditions set forth on Exhibit "A" attached hereto and made a part hereof, and subject to proper and reasonable regulations now or hereafter placed in force by Lessor and applicable thereto; said facilities of Lessor so to be attached to and used by Lessee as follows: Attachment space on six (6) Public Service Company of Oklahoma poles at S 10 /year /attachment. Said attachments shall be made by Lessee in accordance with instructions and specifications provided by Lessor Representative, Manager of Division Engineering or authorized delegate. The location of Lessor's poles (or route and termini of pole line) and facilities upon which said attachments are to be placed, being as follows: All six (6) attachments are located in Tulsa County, Oklahoma. The legal description of the pole locations being as follows: 721N, R14E, Sec. 30 & 31 - one (1) poles on the North side of the 76th Street North (E. 2nd Avenue) Right of Way in section 30 and five (5) poles on the south side of 76th street north (E. 2nd Avenue) right of way in section 31, all within right of way boundaries. This agreement is or the cable run between school zone tlashin(, lights located at 307th E. 2nd Avenue and 102 E. 2nd Avenue in Tulsa, OK. This agreement shall take effect and the pavment of rentals begin on the 1st day of January 1993, and continue in force from year to year until terminated in the manner specified in the Terms and Conditions hereto attached. Rentals shall be payable on an annual basis, in advance, and be subject to an equitable adjustment in event of termination. TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: SHERRY BISHOP, CITY TREASURER SUBJECT: AUDITOR'S ADVISORY COMMENTS MEMORANDUM DATE: JANUARY 29, 1993 BACKGROUND As part of the audit services, the auditors are to advise us of their findings and recommendations relative to the financial and accounting procedures and controls. They do not perform a comprehensive review of all procedures and controls, but advise us of anything that comes to their attention during the course of the audit. The "Advisory Comments Memorandum" is the summary of their comments and suggestions. The purpose of this memorandum is to provide ' a staff response to those comments. Typically, the staff response to a comment may range from agreement (including corrective action contemplated) to disagreement (including rational). ' Internal controls are intended to safeguard assets and other resources. The entire control system is based on an assessment of risk and corresponding controls. The greater the risk, the greater the degree of required controls. Focusing on risks, rather than controls, results in a more ' efficient system. While the result is the same, more than one control may exist for each risk. Focusing on the objective -- controlling risk -- eliminates duplicate controls. REPORTING ENTITY op Governmental Accounting Standards Board Statement No. 14 AUDITOR COMMENT: 1b In June 1991, the Governmental Accounting Standards Board (the GASB) issued Statement No. 14, "The Financial Reporting Entity." This new standard will be effective for the City's fiscal year 1993 although the GASB encourages earlier application. As a result of Statement No. 14, the definitional concept of the reporting entity will change from oversight responsibility to financial accountability. Auditor's Advisory Comments Memorandum Page 2 We recommend the City review and evaluate all relationships with previously excluded entities to determine whether they will become part of the reporting entity upon adoption of Statement No. 14. Further, the City should give consideration to adopting the provisions of Statement No. 14 prior to its date of mandatory adoption. If these entities are determined to be excluded from the financial reporting entity, then the City should formally document the reasons for exclusion, and the document should be approved by the City Council. STAFF RESPONSE: GASB Statement No. 14 defines which "entities" (public trusts of the City) should or should not be included in the City's financial statements. The City currently has three public trusts: the Owasso Public Works Authority (OPWA), the Owasso Economic Development Authority I (OEDA), and the Owasso Public Golf Authority (OPGA). The OPWA and the OEDA are included in the City's financial report because there is a financial , interdependence with the City and because the City Council "controls" the appointments of a majority of the members of those trusts. The OPGA is not included in the City's financial reports because the City is not responsible for its debt nor does it control the use of funds or A profits of the OPGA. Based on this evaluation, the City is in compliance with GASB Statement No. 14 which can be formally documented by Council action. The auditors recommend application prior to the date of mandatory adoption. The City is already in fiscal year 1993, the year of mandatory adoption. CASH AND DEPOSITORY PROCEDURES Travel Petty Cash Account AUDITOR COMMENT: We reviewed the "travel" petty cash account for the month of June and noted two disbursements were made to the order of cash. We recommend that the City develop a policy that no checks are to be payable to the order of "cash." These expenditures should be payable to the order of individuals receiving the funds. The implementation of the policy will improve controls surrounding expenditures and petty cash funds. We obtained the list of authorized check signors for the bank accounts. We noted that one of the authorized signors for the "travel" petty cash account has remarried and changed her name. Auditor's Advisory Comments Memorandum Page 3 We also noted that one individual who prepares the checks also has check signing authority. We recommend that the bank be notified of the name change of the check signor. We also recommend that individuals who prepare checks should not have check signing authority. STAFF RESPONSE: To properly document checks issued from the travel petty cash account, a copy of the check is attached to a copy of the travel authorization. Checks normally are issued to the authorized employee. Occasionally checks have been issued to "cash. " That practice has been discontinued and all checks will be issued to an employee (or vendor). If cash is needed, a check will be issued to an employee then endorsed for cash. The bank has been notified of the name change and the signature card updated. One employee is responsible for handling petty cash and travel petty cash (checks). That employee is authorized to sign checks on the travel petty cash account. Due to the number of employees and the division of other responsibilities, I believe it is necessary for this employee to be able to sign petty cash checks. We have revised the procedures so that another employee normally signs those checks. It is difficult in a small department to always have a division of responsibilities so that there is a full system of checks and balances. I believe the present arrangement provides proper oversight for the petty cash account. Depository Procedures AUDITOR COMMENT: During the audit, we noted that the city treasurer is responsible for depositing the daily remittances. She parks approximately two blocks from the municipal building and walks with the undisguised bank bag. This condition could result in possible theft of funds. We recommend that a police officer accompany or deposit the funds at the local bank during their daily shift. The benefit of the recommendation will reduce the risk of theft and provide additional time to the city treasurer to perform her other functions. STAFF RESPONSE: Arrangements have been made with the police department for an officer to drive a finance department employee to the bank every day. Auditor's Advisory Comments Memorandum Page 4 Cash - Restricted Funds AUDITOR COMMENT: During our audit of cash, we noted that the Owasso Public Works Authority money market account included funds held for the repayment of the accrued interest on the Elm Creek Bonds. The funds are restricted and should not be commingled with funds used for operations. No allocation procedure is evident for allocating the interest earned on this account. We recommend that a separate account be established to hold funds related to the Elm Creek Bonds and any related interest earnings be allocated to this account. STAFF RESPONSE: The OPWA has a money market account at Liberty Bank of Owasso which contains operating funds as well as funds designated as Elm Creek Bond funds. The Elm Creek funds will be transferred to the Elm Creek checking account. Interest Earnings on City Resources AUDITOR COMMENT: At June 30, 1992, the City and related authorities had approximately $224,000 of bank balances in noninterest - bearing accounts and an additional $1,800,000 in accounts which only earn interest at rates from 3.3 to 4.1 percent. 1 We recommend the City invest in accounts which pay higher interest rates. Additionally, a method of projecting cash requirements should be developed and the cash not needed over the I short-term placed in investments which yield higher returns. STAFF RESPONSE: I The City and OPWA combined have six non - interest bearing bank accounts. At June 30, 1992 those accounts had approximately $132,000 of general ledger balances. The auditor's comment memorandum uses "bank balances" which includes all outstanding checks. All non - interest bearing accounts (when practical) will be converted to interest - bearing as soon as possible. Staff is currently developing procedures to facilitate daily monitoring of "operating" account bank balances. When cash flow requirements can be more accurately projected, longer -term investments can be purchased. Auditor's Advisory Comments Memorandum Page 5 ACCOUNTS RECEIVABLE Allowance for Doubtful Accounts AUDITOR COMMENT: The City has not established a policy for determining an allowance for uncollectible accounts receivable. Consequently, there are several accounts included in the detailed listing aged greater than 90 days. We recommend that the City review all the accounts in the 90 day outstanding column of the utility billing aging and establish a policy of determining the allowance based on the receivables included in the 90 days and greater aging. STAFF RESPONSE: The OPWA reports balance sheet "receivables" as "utility billing, net of allowance" in order to recognize that some accounts will not be collected. An amount is deducted from the total accounts receivable to approximate the percentage of uncollectible accounts. There is no written policy for determining how that allowance should be calculated. Staff will research and establish a written policy outlining the proper method before the next fiscal year end. ACCOUNTS PAYABLE Year -end Accruals AUDITOR COMMENT: During our search for unrecorded liabilities, we noted that the City did not accrue all purchases that were incurred at June 30, 1992. The result was that the expenditures and liabilities were understated at June 30, 1992. We recommend that invoices received subsequent to year end be reviewed to determine if the expenditure should be accrued. The City should determine a cut -off period and scope for reviewing the invoices. M STAFF RESPONSE: The auditors identified $50,507 of payments to INCOG, PSO, and the Municipal Assurance Group (recorded in FY 1993) that were for services received before June 30, 1992. Past accounting practice has been to record (twelve) monthly or (four) quarterly payments on the Auditor's Advisory Comments Memorandum Page 6 payment due date rather than the date of actual service. We will review this practice and determine the best accounting method for the City. PURCHASE AND INVOICE PROCESSING Purchase Orders AUDITOR COMMENT: During our cash disbursement testing, we noted several purchase orders that were dated subsequent to the invoice date. The City's policy is that purchase orders are prepared and approved prior to receipt of goods /services and invoicing. We recommend that all purchase orders be prepared and approved prior to receipt of goods or invoices. All purchase orders should be approved prior to "purchasing" of the requested items. STAFF RESPONSE: Part of this problem has already been resolved by changing the timing of computer data input. In the past, purchase orders were dated the day they were printed rather than the day the requisition was issued. The rest of the problem is attributable to purchasing practices in some departments. A requisition for purchase should be completed when the decision to purchase is made. Sometimes, a requisition is not completed until the invoice has been received. The proper method has been reviewed in staff meeting. Additionally, the accounts payable clerk will perform a regular review of invoice dates on purchase orders approved for payment to ensure the problem has been corrected. Invoices AUDITOR COMMENT: During our review of the client's invoicing procedures, we noted that the City does not "void" invoices when they are paid. We recommend that when invoices are paid, they be properly marked to prevent reuse. Auditor's Advisory Comments Memorandum Page 7 STAFF RESPONSE: The recommendation is to "void" paid invoices. The City of Owasso currently follows the procedures outlined by state law for handling purchase orders and paying invoices. To be approved for payment, a proper invoice must be attached to a signed purchase order. Every PO is stamped "paid" after payment is approved and a check is issued. The "paid" PO attached to an invoice prevents "reuse" of the invoice. OTHER MATTERS Accounting Procedures AUDITOR COMMENT: During our review of the accounting procedures and policies and discussion with client personnel, we noted that the City does not have formal written policies for the accounting and accounting - related procedures. We recommend that the City prepare written procedures and policies for the accounting and accounting - related functions. STAFF RESPONSE: The finance department needs written procedures and policies for all accounting and accounting - related functions. Developing good policies and procedures has been a high priority project for the finance department. We will continue that priority and document those procedures. TO: RODNEY J. RAY, CITY MANAGER FROM: SHERRY BISHOP, CITY TREASURER SUBJECT: ANNUAL AUDIT REPORT FOR FISCAL YEAR 1991 -92 DATE: JANUARY 4, 1993 BACKGROUND In July of 1992, the Owasso City Council approved a contract with the firm of Stanfield & O'Dell to perform the annual audit for the fiscal year ended June 30, 1992. Last week, staff received the audited financial statements and delivered those documents to the Council with the January 5, 1993 meeting agenda. There are three separately bound reports plus a letter: Financial Statements and Report of Independent Certified Public Accountants Auditors' Single Audit Reports Advisory Comments Memorandum Report of Independent Certified Public Accountants (letter) FINANCIAL STATEMENTS As reported earlier, there is a healthy increase in the fund balance of the General Fund. The "excess of revenues and other sources over expenditures and other uses" for the general fund is $143,277. (See page 8, column 1.) The "fund balance, end of year" is $579,230. The City uses a "modified accrual basis of accounting" (defined on page 15, note #3) which generally means that next month's sales tax revenue is included in this year end fund balance. The "budget basis" fund balance that could actually be "carried over" to the 1993 fiscal year budget is $283,564 (page 17, note #4). The OPWA, because it is an "enterprise fund," uses a basis of accounting different from the General Fund. The most significant differences are that depreciation and debt expenses are recorded in the OPWA. Enterprise fund accounting is (as nearly as possible) the same as "real world" business accounting. The "net loss" in the OPWA is $1,175,303 (page 11, column 1). All transactions associated with the OPWA 1988 Revenue Bonds (sales tax transfers, interest expense, transfer to Capital Improvements fund, and transfers to Project Fund) are recorded in the OPWA. Without the revenues and expenses associated with the 1988 Revenue Bonds, the OPWA "net loss" would be $554,310. Depreciation expense contributes $687,618 to this "net loss." Even though depreciation is not a "cash" expense, it is a real cost of operating any "business" that owns property and equipment. If the OPWA revenues were sufficient to fund all operating expenses (including depreciation), then all OPWA fixed assets could be replaced from operating cash as they wear out. (Without depreciation expense, OPWA had a net income of $133,308.) SINGLE AUDIT REPORTS This document contains additional reports that are required of all recipients of state and federal funds. There are five "report(s) of independent certified public accountants on ...." Most of these are standard accountant "opinion" letters. The report on internal control structure (pages 5 -7) notes "certain matters" that the auditors consider to be "reportable conditions" under established standards. These "reportable conditions" involve the CDBG grant (Woods Company loan) and the utility billing operation. The Oklahoma Department of Commerce (ODOC) has reviewed and accepted all of the reports filed with them for this grant program. The auditors, however, are required to note all of their findings. The auditors recommend a segregation of duties in the utility billing operation. The auditors note that the current condition "could result in the misappropriation of cash receipts" (page 6, last paragraph). The auditors provide two recommended changes in procedures. The first, that someone independent of the utility billing clerks open the mail and prepare totals, has been implemented. The second recommendation is to compare the bank deposit to the payments posted to utility billing accounts on a daily basis. This is already being done weekly and monthly. Staff will change this to a daily procedure. ADVISORY COMMENTS MEMORANDUM This document contains the auditors comments and suggestions for the improvement of procedures and administrative controls. Staff s response to each of these ten items will be issued in a separate memo. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS (LETTER) This letter expresses the auditors' opinion on compliance with the covenants of the OPWA Revenue Bonds, Series 1988. This report is a requirement of the bond indenture. RECONLNWI NDATION Staff recommends the Council receive the audit report and direct it to be filed as required.