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Home My WebLink About1993.10.05_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: October 5, 1993 TIME: 7:00 p.m. PLACE: Council Chambers, Owasso Community Center Notice and Agenda filed in the office of the City Clerk and posted on the City Hall bulletin board at 4:00 p.m. on Friday, October 1, 1993. A Ao',A ) (2n OP Marci Boutwell, Council Clerk AGENDA 1. Call to Order 2. Flag Salute 3. Roll Call 4. Request Approval of the Minutes of September 21, 1993 Regular Meeting Attachment #4 5. Request Approval of Claims Attachment #5 s Owasso Public Works Authority October 5, 1993 Page 2 6. Consideration and Appropriate Action Relating to a Request for Trustee Approval of a Contract Between the OPWA and the Tulsa Metropolitan Utility Authority Providing for the Purchase of Water and Establishing Rates for Such Purchases. Mr Ray Attachment #6 Staff will recommend Trustee approval of the contract and authorization for the Chairperson to execute the necessary document. 7. Consideration and Appropriate Action Relating to a Claim Filed by Brian DeWitt Against the OPWA for Damages Incurred as a Result of a Wastewater Backup. Mr Ray Pursuant to Trustee directive, the staff is currently involved in discussions with the DeWitts. A presentation of the results of those discussions, as well as a recommendation, will be made at the meeting. 8. Report from OPWA Manager 9. Report from OPWA Attorney Owasso Public Works Authority October 5, 1993 Page 3 10. Unfinished Business 11. New Business 12. Adjournment 1 1 1 OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, September 21, 1993 The Owasso Public Works Authority met in regular session on Tuesday, September 21, 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, September 17, 1993. ITEM 1: CALL TO ORDER Chairman Randolph called the meeting to order at 7:23 p.m. ITEM 2: FLAG SALUTE The flag salute was held during the City Council meeting preceding this meeting. ITEM 3: ROLL CALL PRESENT ABSENT Bob Randolph, Chair John Phillips, Vice Chair Mary Lou Barnhouse, Trustee Charles Burris, Trustee Rex Bowen, Trustee STAFF Rodney J Ray, City Manager Ronald D Cates, Authority Attorney Marcia Boutwell, Recording Secretary A quorum was declared present. ITEM 4: REQUEST APPROVAL OF THE MINUTES OF SEPTEMBER 7, 1993 REGULAR MEETING. John Phillips moved to approve the minutes as written, by reference hereto; seconded by Charles Burris. AYE: Phillips, Burris, Bowen, Barnhouse, Randolph NAY: None Motion carried 5 -0. Owasso Public Works Authority September 21, 1993 T M 5: REQUEST APPROVAL OF THE CLAIMS I John Phillips moved, seconded by Rex Bowen, to approve the following claims as submitted: (1) OPWA Fund $61,737.07; (2) OPWA Capital Improvement Fund $10,237.50; (3) Payroll , $19,202.30. AYE: Phillips, Bowen, Barnhouse, Burris, Randolph , NAY: None Motion carried 5 -0. ' ITEM 6: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A CLAIM FILED BY BRIAN DEWITT AGAINST THE OPWA FOR DAMAGES ' INCURRED AS A RESULT OF A WASTEWATER BACKUP. On August 9, 1993, Brian & Cindy DeWitt filed a "Notice of Tort Claim" against the Authority ' in the amount of $5000 for damages sustained as a result of a wastewater main line stoppage. The City's insurance carrier denied the claim based on the statutory requirement that requires ' a municipality to have received prior notice of a problem with the sewer line. Mr DeWitt appeared at the last OPWA meeting requesting that the claim be paid. At that meeting, the Trustees tabled the item to the September 21 meeting and directed staff to negotiate a settlement. A staff team comprised of Mr Ray, Mr Cates, Ms Boutwell, and Ms Parsons met with Mr & Mrs DeWitt as instructed. Information concerning the maintenance program on the sewer lines provided an option to resubmit the claim to the insurance carrier. Mr & Mrs DeWitt chose to resubmit the claim rather than accept a settlement. The claim was resubmitted to the insurance carrier on September 20, 1993. Charles Burris moved to table action on this item until the next meeting, allowing time for a response for the insurance carrier. Motion seconded by Rex Bowen. AYE: Burris, Bowen, Barnhouse, Phillips, Randolph NAY: None Motion carried 5 -0. ITEM 7: REPORT FROM OPWA MANAGER No report. ITEM 8: REPORT FROM OPWA ATTORNEY ' No report. ' 2 ' 1 Owasso Public Works Authority September 21, 1993 ITEM 9: UNFINISHED BUSINESS None ITEM 10: NEW BUSINESS Mayor Randolph mentioned the resurfacing of 129th E Avenue between 76th St N & 86th St N, and thanked everyone who had participated in the completion of the project. ITEM 11: ADJOURNMENT Charles Burris moved, seconded by John Phillips to adjourn. AYE: Burris, Phillips, Barnhouse, Bowen, Randolph NAY: None Motion carried 5 -0 and the meeting was adjourned at 7:25 p.m. Marcia Boutwell, Recording Secretary 3 Bob Randolph, Chairperson CITY OF OWASSO OPWA CAPITAL IMPROVEMENT FUND 10/05/93 16:02:58 A/P CLAIMS REPORT PO # VENDOR DESCRIPTION ---- - - - - -- ------------------- - - - - -- ------------------- * NO DEPARTMENT MASTER FOUND ------------------------------ 940817 LIBERTY BANK & TRUST DEPARTMENT TOTAL = = = => FUND TOTAL GRAND TOTAL OWRB LOAN APAPVR PAGE: AMOUNT -- ------- - - - - -- 24,214.17 24,214.17 24,214.17 24,446.53 2 L I I � I � I I I I I I I I I I I I I I I I I I CITY OF OWASSO OWASSO PUBILIC DIORNS At!THOPITY ---------- ------------------------- ------------------------- ------------- ------------------------------ C C T f -I N 3._ 4(10�9 OFLAHOMA TA SALES T AX � fS P AS='S B A ------------- -:7 OPWA ADMTN'STRATI011 I t ------------------------------ 940090 MEMBIEF SERVICE LIFE FRE, TAY MDM FEES 33.00 94011, ""FS ZIT, T T TP M: pp:� P '740139 T-I.EERTY TULSA r REVENUE BONDS Wz ,940748 T-FEASUPER PETTY CASH RE11 ^13 PETTY CASH 28.56 ,_407r:7 ST F;AN',__.11' t70CPTT`-EAF �-,p -T, i _., , y - - ?40 7 96 !,DCI-, 'lNC.-AT?,'T! DISTANCE 6. 94-97 0 S 0 U TIE W HE T E F N' BELL TILE. 8/93 PLEXAF� 5 2 . a t. 9 4 0 7'-" S CT I BRYAN' INDY DEWITT fM Ct A. 1,500.00 r, E P A P T I'M E N T 7 L. 501.4 1A ' 7:!R _t. _.. ------------------------------ H., litf A a T = 1, ------------------------------ 7 IWATEF� CT'i ' T='.- R F L Z =2 7�;� . . 4 94OA09 DITCH WfT�H pp:� P 12 0 0 17 94i,14AC) T 11) Ti rl I H MUT=p .2zz 910 41 I-T r jp, A TU R .1 N ME 7Z. Z R R z:i D �� 17.95 9406,42 R-RfiD SPAPIr"NAN. ER F E A D E P 2 7-, '75 9406', �4 _F�ArUl- S'PARRMAN F. " _ _Ai_- 9 4 Ci 6 2 _:i z ZZ 4 VC 0 7 Z 7 11 -07 ------------- H., litf A a T = 1, ------------------------------ 7 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 3 A"? CLAIMS - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---- r i 9411-94 S, f IT T T LT N C T V KLI 7Z - ' ;40 nc OKLA }SAT TPA- GAS- 1? Q 97 -7 14 - - - - - - - - - - - - - 0 5 REFUSE COLLECTIONS ------------------------------ 940,4:.: Wj* T TAM- Ll 0 REFUSE S � U P F _1 I E S 15.3 9 4 0 5 14, 7 REFUSE E0U17zMEzNT F 0 LY-0 A S .23 ?406119 bi I CTF mAl OF 941 Z, I CTNTAS CORF. TT F70F f! Et NUT CIL Ez A N 3 155 7 2 5 f4 il XTMEALL ilCF. HARDWARE T-i,= . 4 9406';l T B. I 8/9.3 COMM WASTE 11 .3 -L --i 9 .. Dt�'.;'-M,ENT TOTA1.1 ------------- ------------------------------ 0 6N 2 1 Cl';-ITA FE7 'CLEAN N, "FALL AC S HARDWAPE ?'4 01 A Ii c. in fq T E 9 4 0 7 .`t U'"l'H ZE -S T E F N E 7 T T='-- • RE 93 FL-EXAR ------------- E 'IT A -!-,TT ------------- VENDOR TRANSFERS CITY OF OWASSO OPWA A/P TRANSFER REPORT DESCRIPTION CITY GARAGE TRANSFER FROM OPWA WORKERS' COMP SELF -INS TRANSFER FROM OPWA GENERAL FUND TRANSFER FROM OPWA TRANSFERS TOTAL AMOUNT 5,125.00 3,842.50 22,916.66 31,884.16 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 09/18/93 DEPARTMENT AMOUNT ..W�su �(,•� ...:.....:.::.L: . 7 .;?{:a,:; ?::.:;;:.:i:. :.ic;;iit , �;?:;: i; i> i:?! y:: �:>:•>:• i:??? �: ii: ?:•iiiiiii: ?;:�i:�::'4::�i::;:� iii:�i:: .:,..........:..,:::.....:..:...:.::::. w:• 5:::: o: iir�>' i.' it ?.ti.::.:::•::'tt:::£•:'x•::q� Water •:.yy:•:r>:•>:.;:::::. ::::::.::•:::»:•:::::.y� i?^`; '1(�(�{•(j,,��} ' isy?•} i:?4.:;:;:;:( �: Y{.: .:..x {n:..mvi:4::6::iiiii: <:if::�iii�t .�•'•' .. ' .�t:/.t:3: ?:; 2,920.26 ?Si::i!jS. ^•.:i!ji.'• ?•: ?•�xv.; �: �: ��~; i;; sn:?{! } i:• Fii:::. �i is4: 4i: Li: vT is4: bi•:: nis4: 4:?. i:• iiiii: tih:!:::. 4i:?:: ?:;:{ :4i:ti ? ?L: ?•: �iiii: iiisy!??. is4i:• iiiiiiiii ::i::i:�iii:Gi: ..: n.:. v......... w. v:.. v. vvV:.: ::•::•: ?•iiii: ?•i.:i:4: ?ti•:bi:' • • % ?i'• �: ?::.•ii'� .i' = : v:• iii i:• i:???• i:•i }i::::::•i: ? ?•iiii:hi:4i:•i ::. �.?i:4 }iii:Ji+ibX Refuse } ?i4i'Sii:'�: ?J ii:4:4i iiiii;: }iiii i iii iii�'� iv;:ti;:•,iiii:CY ��yy'•• �•: i::;: �itii: 4: sn:; 4' N'•' u' ::; y: �: titi' �' �:: ti�:;:;}`,: i:?: ?:�i:�i ?ii:±�ii::;:;i {i:•i:•i:• iii : <iiiiiji >:ti�:: {:;i:•i:•i:.:v'r ii:�i: ......:n�:::::+nJ.v.•n +: xvw•iiii:•itiri.:tiiir wWiStiw' W.• W.{-0 K40h :Y.r6l/.(q'4�"M':•v'v'4L:Oiiv:: iii:: iiiisiiii :::ii::4Yiiri:•i::::':riLi?i tii:S::i':::: ;.: ?n}ti!?.i };pi: ? ?.:4: ?4: w; n: � ;ii: ; "i:':; . 3,603.94 ! titiv' `::$;'. :`};ii:; ^�'? �!!:ii:i;:i ! ?iv ;? ^; ?:y::ji,{ ?•i. v:.;:: :••:;:...i N�i'y,F;'j�� :i'�: : ii4?. ii:• i:?? r,.}}}•';.:4: ? }:�:n}::i,••::i:? ?iii iiiii' i}::?;: } ?•i:0i:!•ii:•ii: ^iii:•i: ?ii;:: rr::::::::: ' FU D'i:: i. :::: :: :' :. ': :!:::::::: ::: }�iiivi:•iii:•i:•;::::::ti• ?: tiff ?Oi;•i} iii{:::::. �: 4: 0i:?? 4: p::{.;?.;.;. :i�::::L: ?4:4:•i:�ii }}; ? ?:::::: ................... .... .. ,+�... .:::::::::::.�:::. �::::4iiv: ^: ?.}: !::::::: v:L;•i }i:i8i; •::v::::::::::v:4i:i•: ?4 i•:::::.: �::: i:•y }: ?i: ......:........... •: •.:::: nom::.:...... n:., i?„?:?:: �ii:: i::::: xii:;::: i::.::. �.;: i?• i:•::. r: �iiii:: is�iiii ::: ::::::::::::................... i:4:•: ;!•: :. •:..,..: : {::.i v. ?;; •. +Y ::iii ?•; iiii;. �j ::: %�:'i......::::3- :::::.::: �::.�::::.; APPROVED: 10/05/93 Chairman Frustee Trustee MEMORANDUM TO: THE CHAIRPERSON AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST FOR APPROVAL OF CONTRACT BETWEEN THE OPWA 1 AND THE CITY OF TULSA FOR THE PURCHASE OF WATER IDATE: September 30, 1993 1 BACKGROUND: For the past 20 years the City of Owasso has purchased water from the City of Tulsa and relied it upon the City of Tulsa as its water supply for the residents of our community. Historically, the City of Owasso and the City of Tulsa have had a contractual agreement that is approved each ' year by the Trustees of the Owasso Public Works Authority, providing for those services and setting a rate for the purchase of that water. For the past two years, due to a conflict between the City of Owasso and the City of Tulsa in terms of being unable to agree on specific language ' of the contract contained in one article, there has not been a formal contract. However, the City of Tulsa has now requested that we finalize those discussions and that a formal contract be executed. A proposed contract has been submitted for review by the City of Owasso. ' The City Attorney and I have reviewed the proposed contract and continue to believe that the Y Y p language contained in Article XII of the proposal is unacceptable. Subsequent to the staff review, the contract document was rewritten under the direction of Mr Cates, City Attorney. The resulting contract is attached for your review and consideration. The new contract, if ' adopted, would formalize the existing rate structure and operations practices. It is the staff opinion that the proposed contract does not place any restrictions or limitations on the City that are not currently required. Additionally, the contract maintains the rates for this year (1993 -94) at the level we were paying in 1992 and contains no price increase. As the staff had indicated earlier, the cost of services review conducted by the City of Tulsa approximately three years ago has resulted in Tulsa raising the cost to its citizens before it raises the cost to its municipal customers any further. The contract also allows us to take up to eight million gallons of water per day as a maximum amount. We are currently utilizing approximately two million gallons of water per day. As you can see, the contract provides substantial room for growth in terms of our capability to purchase J MEMORANDUM Contract for Purchase of Water September 30, 1993 Page 2 more water to meet growth needs. In fact, our staff does not anticipate that we would need eight million gallons a day within the next five years. The contract also includes language requiring the City of Owasso to comply with certain rationing programs. In the event that the City of Tulsa City Council were to impose such rationing requirements on its citizens, the City of Owasso would also be required to ration water. Since 1986 the City of Tulsa has not been in a position to have to ration water. Their water distribution system was upgraded in the mid -80s and has given them the capacity and the distribution system capable of meeting most drought situations. We do not at the staff level consider the requirements imposed by the contract to be onerous and, therefore, are not concerned with that portion of the contract. You should be aware, however, that in the event Tulsa would have to ration, so would the City of Owasso. RECOMMENDATION: Staff recommends Trustee approval of a contract between the Owasso Public Works Authority and the Tulsa Metropolitan Utility Authority providing for the purchase of water $1.41 per thousand gallons. ATTACHMENTS: 1. Proposed contract between the OPWA and Tulsa Metropolitan Utility Authority CONTRACT FOR WATER SUPPLY OWASSO PUBLIC WORKS AUTHORITY OWASSO, OKLAHOMA THIS AGREEMENT, made and entered into this 5th day of October, 1993, by and between the OWASSO PUBLIC WORKS AUTHORITY, a public trust, acting for and on behalf of OWASSO, OKLAHOMA, herein referred to as "MUNICIPALITY "; THE TULSA METROPOLITAN UTILITY AUTHORITY, a public trust, herein referred to as ' "AUTHORITY "; THE CITY OF TULSA, OKLAHOMA, a municipal corporation, herein referred to as "CITY "; and ' WHEREAS, said MUNICIPALITY has built a water distribution system to provide water to serve customers of the Owasso Public Works Authority, Owasso, Oklahoma; and ' WHEREAS, said MUNICIPALITY requires a supply of water; and WHEREAS, said AUTHORITY has leased and operates a water system from the CITY with capacity currently capable of serving the present customers of the AUTHORITY and CITY and the demand of the present customers of MUNICIPALITY; and 1 WHEREAS, said MUNICIPALITY desires to purchase water form the AUTHORITY and CITY and the AUTHORITY and CITY will furnish and sell water to the MUNICIPALITY. NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein set forth, MUNICIPALITY, AUTHORITY and the CITY bind themselves by this contract and further agree that the rights and obligations of the respective parties effective as of `- the date herein shall be as follows: tARTICLE I ' SERVICE 1. The AUTHORITY will, subject to the terms and provisions of this Agreement, sell to the MUNICIPALITY and deliver to the MUNICIPALITY'S delivery point or points, defined as follows, a twelve (12) inch meter located at 6200 North 107th East Avenue, 300 feet south ' of the valve on Bird Creek and a sixteen (16) inch meter located at 7595 North Mingo Road, 57 feet south of center and 55 feet east of center such volume of water as the MUNICIPALITY shall require, up to but not in excess of the MUNICIPALITY'S maximum contract demand (as LJ that term is hereinafter defined), and the AUTHORITY'S obligation to deliver shall be complete ' upon delivery of such water to the MUNICIPALITY's delivery point or points as defined herein. 2. The AUTHORITY and CITY acknowledge that TITLE 110. S. Supp. 1989, Section 37- ' 119 provides that all water sold and furnished to persons or public or private entities outside the corporate limits of the municipality shall be sold and furnished upon written contracts expressly stating that the contract may be abrogated by the municipality at any time the governing body thereof, or the board, commission, or public trust operating and controlling the waterworks, shall declare by resolution that the water being furnished pursuant to the contract is required by the municipality for its own use and the use of its inhabitants. The AUTHORITY and CITY agrees that the provisions of this section pertaining to abrogation of contracts may be waived upon express written agreement of the contracting parties and is hereby waived. The water to be furnished shall be generally of the same kind of character and quality as that supplied by the AUTHORITY for its need; PROVIDED, HOWEVER, that nothing contained herein shall be deemed or construed as a warranty of the quality or quantity of water to be sold and delivered hereunder. ARTICLE II CONTRACT DEMAND 1. The MUNICIPALITY'S maximum take of water during the term of this Agreement shall be limited to eight million gallons per day, which is hereby designated as the MUNICIPALITY'S "maximum contract demand ". 2. The MUNICIPALITY understands and agrees that the water pressure to the MUNICIPALITY'S delivery point may vary depending on the demands placed on the AUTHORITY'S water system and that the MUNICIPALITY'S rate of taking water from the AUTHORITY'S water system shall not reduce the residual pressure of the AUTHORITY'S water system at the delivery point or points below forty-five pounds per square inch (45 psi) at any time. ARTICLE III PURCHASE PRICE 1. The MUNICIPALITY shall on or before the 10th day of each month, beginning' August 1, 1993, pay to the AUTHORITY, for all water delivered during the preceding calendar month, at the rate of one dollar and forty -one cents 1.41 per one thousand (1000) gallons, 2 10/1/93 as provided by the City of Tulsa Revised Ordinances plus a monthly meter service charge, varying by meter size as described in the City of Tulsa Revised Ordinances. ' 2. Nothing contained herein shall be deemed or construed to entitle the MUNICIPALITY to any other price that may now or hereafter be fixed by the AUTHORITY or City of Tulsa by Contract, Ordinance, or otherwise, for water to be supplied the AUTHORITY'S other users now ' or hereafter connected to the AUTHORITY'S system, whether within or without the corporate limits of the City of Tulsa. ARTICLE IV ' ADJUSTMENT OF PURCHASE PRICE ' 1. The MUNICIPALITY understands and agrees that in the event any water rate increase or decrease is authorized by Ordinances of the City of Tulsa, that the rate shown within this Agreement shall be adjusted to comply with the rates of the City of Tulsa Revised Ordinances. ' 2. The MUNICIPALITY understands and agrees that the rate shown in ARTICLE III PURCHASE PRICE is based on "Permanent Service" from the AUTHORITY and shall be ' applicable under the terms of this Agreement only if water is being used by the MUNICIPALITY as a "Permanent Service" on a continuous basis. If the MUNICIPALITY elects not to use the available water on a "Permanent Service" basis, then the service provided ' under this Agreement shall be considered as "Emergency Service" and the rate of two dollars and eighty -eight cents 2.88 per one thousand (1000) gallons shall apply. If "Emergency Service" becomes effective, then the control valve in the meter vault shall remain closed except at such time as the MUNICIPALITY specifically requests that the valve be opened for water service. The MUNICIPALITY shall pay to the AUTHORITY the actual cost of making each turn on or each turn off, which in no event shall be less than Seventy Five ($75.00) Dollars for the making of each turn on or each turn off. The meter vault shall be kept locked at all times except for operating the valve and /or for maintenance. Keys to the vault shall be kept by the AUTHORITY and the responsibility for operation of the valves shall be exclusively that of the ' AUTHORITY. ' ARTICLE V ASSIGNMENT OF WATER RIGHTS 1. The MUNICIPALITY agrees to and hereby assigns water rights held by the MUNICIPALITY to the AUTHORITY /CITY, which water the AUTHORITY may use to ' provide water to that portion of the MUNICIPALITY's system to which the AUTHORITY provides service. The MUNICIPALITY agrees to pass a resolution designating the ' AUTHORITY /CITY as the MUNICIPALITY'S agent with full authority to make application for 3 10/1/93 1 and on behalf of the MUNICIPALITY as the MUNICIPALITY could do individually for such water rights as the MUNICIPALITY may be eligible. ARTICLE VI RESTRICTIONS ON SALE OR RESALE 1. The MUNICIPALITY understands and agrees that it shall provide detailed maps outlining the present legal boundary of the MUNICIPALITY, which shall be attached hereto as Attachment "A ". The MUNICIPALITY agrees to provide to the AUTHORITY one complete set of all record drawings and atlases of the MUNICIPALITY'S water distribution system and facilities and shall provide updated documents on an annual basis. 2. The MUNICIPALITY understands and agrees that it shall not sell or provide water to any customer not within the legal boundaries of the MUNICIPALITY whether the connection is made to MUNICIPALITY's water lines within or without its legal boundaries; OR to any municipality, water district, person, firm or corporation engaged in the business or providing water without the written approval of the AUTHORITY; PROVIDED, HOWEVER, that the MUNICIPALITY may continue to provide water to present customers not within its legal boundaries. 3. The MUNICIPALITY understands and agrees that it shall not expend or change the MUNICIPALITY's legal boundaries without prior written notice to the AUTHORITY. 4. The MUNICIPALITY understands and agrees that the MUNICIPALITY shall not furnish water to any customers within the corporate limits of the City of Tulsa, Oklahoma, or of any other municipality with whom the AUTHORITY has a contract to provide water, or when the AUTHORITY has a water line available from which services can be taken, or is providing water to such area, unless mutually agreed to by all parties. ' 5. The MUNICIPALITY understands and agrees that the AUTHORITY/CITY shall have the right to furnish water within the MUNICIPALITY's area of service or boundaries whether ' within or without the corporate limits of the CITY. The remuneration or other considerations which the MUNICIPALITY may receive, if any, when the AUTHORITY /CITY furnishes water within the MUNICIPALITY's area of service or boundaries shall be mutually agreed upon between the municipality and AUTHORITY /CITY prior to the AUTHORITY furnishing said water. 4 10/1/93 ARTICLE VII WATER -CURTAILMENT 1. AUTHORITY reserves the right to curtail or suspend delivery of water under this Contract under any of the following events: (a) Failure of the MUNICIPALITY to make payment of regular monthly billings when the same shall fall due. (b) Failure of the MUNICIPALITY to curtail the use of water by resolution and enforcement, in the same manner and method as required by the City of Tulsa in time of drought or emergency requiring water conservation. (c) MUNICIPALITY's breach of any of the terms and conditions of this contract. 2. In no event shall AUTHORITY ever be liable to MUNICIPALITY or to any of MUNICIPALITY's customers for any failure to deliver water, or for suspension of water deliveries. The right to suspend deliveries shall include suspension in whole or in part, limiting hours of delivery, proration with other customers of AUTHORITY, or in any other manner, and the manner and duration thereof shall be at AUTHORITY's sole discretion, and shall be final and conclusive.. ARTICLE VIII TIME OF AGREEMENT 1. This Contract shall become effective and binding on the execution hereof, and shall remain effective for all purposes for a term of one (1) year. Thereafter, this contract shall be renewed for successive terms of one (1) year each unless canceled by either party no less than one hundred and twenty (120) days prior to expiration. Nothing herein contained shall be ' construed as limiting the rights of modification or termination at any time as specified in this Agreement. 1� [A ARTICLE IX TERMINATION OF CONTRACT 1. Whenever a party hereto has breached any of the terms of this Agreement, the other party may terminate the Agreement by giving thirty (30) days prior written notice of its intention to do so, unless the breach is cured by the offending party before the expiration of said thirty (30) days. It is mutually understood and agreed by the parties that the Agreement is violated 5 10/1/93 and a major breach of the Contract has occurred when the MUNICIPALITY fails to pay any bill ' accruing under this Agreement on or before the 15th day after due date of such bill. 2. Whenever the MUNICIPALITY has failed to pay any bill accruing under this agreement on or before the 15th day after due date of such bill, the AUTHORITY may discontinue the sale and delivery of water thereafter upon giving thirty (30) days prior written notice of its intention. ARTICLE X CONSTRUCTION STANDARDS 1. The MUNICIPALITY agrees to construct, maintain and operate its facilities (including lines and pipe connections) for the utilization of water delivered pursuant hereto according to accepted standards governing such construction, operation and maintenance. ARTICLE XI MAINTENANCE AND OPERATION OF FACILITIES 1. The meter, valves and other connections, located at the delivery point, which control the water delivered to the MUNICIPALITY's system shall be and remain in the sole possession of the AUTHORITY. The AUTHORITY will perform at its own cost and expense, at least every two (2) years, calibration tests on the measuring equipment in order to maintain, insofar as possible, an accuracy tolerance within three percent (3%) of the guarantees of the equipment's manufacturer. MUNICIPALITY shall have the right to request a special meter test be made at any time. If any test made at MUNICIPALITY's request discloses that the meter is not inaccurate as defined below, then the MUNICIPALITY shall bear the cost and expense of such test. The AUTHORITY will notify the MUNICIPALITY at least forty-eight (48) hours in advance of the time the test is to be made, whether at MUNICIPALITY's request or others, to permit the MUNICIPALITY to observe such test. The AUTHORITY will provide, if requested, a copy of the results of all tests and calibration examinations performed on the measuring equipment. 2. A meter shall be considered inaccurate if it is found to deviate from its standard in excess of three percent (3 %) when tested at one hundred percent (100 %) of load, or five percent (5 %) when tested at ten percent (10%) of load, and shall be repaired immediately by the AUTHORITY. If a meter is found to be inaccurate, the AUTHORITY will, in good faith, review with the MUNICIPALITY, MUNICIPALITY'S bill for the month in which said meter is tested and found to be inaccurate and adjust such bill accordingly. Invoices for all earlier months are final as to accuracy and shall not be subject to adjustment. 6 10/1/93 3. The MUNICIPALITY shall furnish and maintain all water lines, pipe connections and facilities required to transport water from the MUNICIPALITY's delivery point to the MUNICIPALITY's customers. The MUNICIPALITY shall at all times maintain its lines and system in a state of repair so as to prevent waste of water through any leakage therefrom. 4. The MUNICIPALITY agrees to adopt and at all times enforce a standard form of resolution recommended by the AUTHORITY and /or the Oklahoma State Department of Health, regulating cross connections and other plumbing installations. The MUNICIPALITY agrees to adopt and, at all times during the life of this Contract, enforce a plumbing code with standards ' protecting the water supply from contamination equivalent to the requirements of the present plumbing code of the City of Tulsa, including denial of water service connections except upon inspection and approval by a duly qualified and licensed plumbing inspector. Within twenty (20) days from this date, the MUNICIPALITY shall provide the AUTHORITY a certified copy of its plumbing code showing compliance with the requirements of this provision. In the event op such code fails to require plumbing, installations, inspections and approvals by a qualified and duly licensed plumbing inspector and in conformity to the standards herein specified, the MUNICIPALITY agrees to promptly amend its said code to conform with the requirement ' hereof, and provide the AUTHORITY a certified copy of all amendments, and shall at all times strictly enforce all of the terms and requirements thereof. 5. In the event the AUTHORITY shall notify MUNICIPALITY that any customer being served from the MUNICIPALITY's lines are being so used to constitute a danger of contamination of water in either the AUTHORITY'S lines or the MUNICIPALITY'S lines, or ' that such customers constitute a threat of such contamination from any other cause, the MUNICIPALITY shall promptly discontinue water service to such customer and shall not reinstate same until the conditions complained of shall have been corrected and the AUTHORITY notifies the MUNICIPALITY of its approval of such reinstatement. ARTICLE XII LIABILITY OF PARTIES ' 1. The water supplied under this contract is supplied under the express condition that after it passes the lines of the AUTHORITY and CITY at the delivery point, it shall become the ' property of the MUNICIPALITY and the AUTHORITY and CITY shall not be liable for any losses or for loss or damage to any person, or property, whatsoever resulting directly or indirectly from the use, or misuse, after it passes the delivery point to the MUNICIPALITY. 7 10/1/93 ARTICLE XIII COMPLIANCE WITH LAWS 1. It is agreed between the parties hereto that each will comply with all health laws, rules and regulations and will obtain such permits as may be required by the laws of the State of Oklahoma governing the supplying of water for domestic purposes. ARTICLE XIV ' MISCELLANEOUS PROVISIONS 1. This Contract may be amended or modified ' Y only by written agreement signed by all parties, and failure on the part of any party to enforce any provision of this Contract shall not be construed as a waiver of the right to compel enforcement of such provision or provisions. ' This instrument contains the entire Contract between the parties relating to the rights herein granted and the obligations herein assumed. Any oral representations or modifications concerning this instrument shall be of no force or effect excepting a subsequent modification in writing, signed by all parties. 2. This Contract or any portion thereof shall not be assigned by the MUNICIPALITY without the prior written consent of the AUTHORITY. 3. If any term, provision, covenant or condition of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 4. This Contract may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The headings contained herein are for convenience of reference only and shall not control the interpretation of any term or condition hereof. 5. This Contract shall be governed by the laws of the State of Oklahoma; and the parties agree that any legal proceedings arising out of or relating to this Contract shall be conducted in the State of Oklahoma. 6. When any word in this Contract is used in the singular number, it shall include the plural, and the plural singular, except where a contrary intention plainly appears. 8 10/1/93 ARTICLE XV NOTICES 1. Any notice or other communication hereunder shall be in writing, which includes telex, FAX and telegram (deemed received the day after transmission) and if mailed by certified or registered mail, postage prepaid, return receipt requested, shall be deemed to have been duly given or made on the date of receipt, or if not mailed in such manner, when actually delivered to the AUTHORITY or the MUNICIPALITY at the address listed on the face of this Contract, except as either party may from time to time (by written notice to the other party) have designated another address. Notices directed to the AUTHORITY shall be sent to: TULSA METROPOLITAN UTILITY AUTHORITY 200 Civic Center Tulsa, OK 74103 Notices directed to the MUNICIPALITY shall be sent to: OWASSO PUBLIC WORKS AUTHORITY City of Owasso 207 S Cedar PO Box 180 Owasso, OK 74055 9 10/1/93 IN WITNESS WHEREOF, the parties hereto have affixed their hands and seals this day of , 1993. THE TULSA METROPOLITAN UTILITY AUTHORITY, A Public Trust ATTEST: By Secretary Chairperson THE CITY OF TULSA, OKLAHOMA, A Municipal Corporation ATTEST: ATTEST: Secretary By Mayor THE OWASSO PUBLIC WORKS AUTHORITY, A Public Trust By Chairperson APPROVED AS TO FORM: Tulsa Metropolitan Utility Authority Attorney City of Tulsa Attorney Owasso Public Works Authority Attorney Date Date Date 10 10/1/93 ORIGINAL ARTICLE XH (Deleted from contract on advice of Counsel) 1 of water service connections except upon inspection and approval by a duly qualified and licensed plumbing inspector. Within twenty days (20) from this date, the MUNICIPALITY shall provide the AUTHORITY a certified copy of it's plumbing code showing compliance with the requirements of this provision. In the event, such code fails to require plumbing, installations, inspections and approvals by a qualified and duly licensed plumbing inspector and in conformity to the standard's herein specified, the MUNICIPALITY agrees to promptly amend its said code to conform with the requirement hereof, and provide the AUTHORITY a certified copy of all amendments, and shall at all times strictly enforce all of the terms and requirements thereof. 5. In the event the AUTHORITY shall notify MUNICIPALITY that any customer being served from the MUNICIPALITY'S lines are being t so used to constitute a danger of contamination of water in either the AUTHORITY'S lines or the MUNICIPALITY'S lines, or that such customers constitute a threat of such contamination from any other cause, the MUNICIPALITY shall promptly discontinue water service to such customer and shall not reinstate same until the conditions complained of shall have been corrected and the AUTHORITY notifies the MUNICIPALITY of its approval of such reinstatement. ARTICLE -XII ' �__�UORZTY'S RIGHT TO ACQUIRE 1. The MUNICIPALITY understands and agrees that when any of the water lines of the MUNICIPALITY are or become included within the corporate limits of the CITY the MUNICIPALITY shall'-transfer and convey such portions of the MUNICIPALITY'S water lines and appurtenant facilities within the corporate limits of the CITY to the AUTHORITY -upon terms and conditions mutually agreed upon between the MUNICIPALITY and the AUTHORITY. 2. The MUNICIPALITY understands and agrees that when AUTHORITY takes or acquires the MUNICIPALITY'S water distribution system or portions of the MLTNICIPALITY'S.water distribution system the purchase price to be paid shall -be determined by one of the methods outlined below. (a) If there are outstanding debts o -f,the MUNICIPALITY, then the purchase price to be paid >by the AUTHORITY shall not be less than the unpaid portion of the indebtedness of the MUNICIPALITY, allocable to that portion of the MUNICIPALITY'S water lines and avourtena.-t facilities taken by the AUTHORITY,, in the same proportion as the water lines and appurtenant facilities taken bear to the entire system of the, g 07/01/90 11 \ MUNICIPALITY and shall not include any anticipa ed revenue or profit. ' (b) If there are no outstanding debts of the MUNICIPALITY, then the purchase price to be paid by the/AUTHORITy , shall be the initial actual cost incurred by the MUNICIPALITY, allocable to that portion of the MUNICIPALITY'S water lines and appurtenant facilities taken by the AUTHORITY, in the same /proportion as the water lines and appurtenant facilities taken bear to the entire system, less depreciation. Depreciation shall be calculated using the straight line method of depreciation for a useful life of twenty -five years (25) with no,salvage value and shall not include any anticipated revenue or profit. 3. When the AUTHORITY exercises its right to take or acquire portions of the MUNICIPALITY'S water distribution system, the MUNICIPALITY shall do the following: i (a) Provide a partial release to the AUTHORITY from the Farmer's Home Administration or other debtors of the MUNICIPALITY. (b) Deannex the area served by the MUNICIPALITY by appropriate statutory procedure. (c) Convey to the AUTHORITY all rights, titles and interest in and to presently owned rights -of -way, easements and all lines, ',,meters, and equipment serving the area deannexed.' (d) Provide such maps, plats, and engineering drawings in the MUNICIPALITY'S possession and reasonable personnel assistance in the location of meters\ lines and easements. \ (e) Provide a listing with complete addresses of the MUNICIPALITY'S customers and transfer security deposits of each customer to the AUTHORITY. (f) Take any other action required to properly convey the acquired portions of the MUNICIPALITY'S water distribution system to the AUTHORITY. 9 07/01/90 TO: CHAIRPERSON AND TRUSTEES ' OWASSO PUBLIC WORKS AUTHORITY FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST FOR COUNCIL APPROVAL OF THE SETTLEMENT TO ' A CLAIM FILED BY BRIAN & CINDY DEWITT AGAINST THE OWASSO PUBLIC WORKS AUTHORITY P DATE: September 30, 1993 BACKGROUND: In August of this year Brian & Cindy DeWitt filed a claim for damages against the Owasso Public Work Authority. The claim was for an amount of $5000, and was the result of a ' wastewater backup that occurred in their residence on or about August 5, 1993. Pursuant to direction from the Trustees, the staff met with the DeWitts on September 16, 1993 for the purpose of negotiating a settlement. As a result of that meeting, the City resubmitted a claim ' to our insurance company, along with new information, and requested a review of the insurance company's decision not to pay the claim. On Friday, September 24, the City of Owasso was notified by the insurance company that they had, in fact, conducted a review of that claim and ' were still denying payment. As a result of that decision, staff members met with Brian & Cindy DeWitt again on Wednesday, September 29, 1993. During that meeting a settlement offer was made and agreed to by the DeWitts. The city settlement offer consisted of a cash payment of $1500 that was accepted by the DeWitts. The purpose of the settlement was to avoid any cost the city that may have occurred as a result of litigation of this case. RECOMMENDATION: Staff recommends that the Trustees approve a settlement on the claim against the Owasso Public Works Authority by Brian & Cindy DeWitt in the amount of $1500 and staff be authorized to make such payment. ATTACHMENTS: +ir 1. Memo dated September 1, 1993 from Rodney Ray to Owasso Public Works Authority 1 MEMORANDUM TO: FROM: SUBJECT: DATE: BACKGROUND: CHAIRPERSON AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY RODNEY J RAY CITY MANAGER CITIZEN REQUEST FOR PAYMENT OF CLAIM AGAINST AUTHORITY September 1, 1993 On August 9, 1993, Mr Brian DeWitt and Ms Cindy DeWitt filed a "Notice of Tort Claim" against the Owasso Public Works Authority in the amount of $5000. The DeWitts claimed that on August 5, 1993, their residence sustained damage as a result of a wastewater main line stoppage. Submitted with the Notice of Tort Claim were estimates of the cost of repairs to the residence. Upon receipt of the Notice of Tort Claim, the staff completed the required paperwork and "faxed" the documents to claims representatives of Sedgwick James, the City's insurance administrator through the Oklahoma Municipal Assurance Group. A claims adjustor subsequently reviewed the documentation, visited with the claimant, and made a determination of the company's position relative to coverage of the incident. On August 12, 1993, the claims management service for Sedgwick James notified the City that the DeWitt claim had been denied based on the statutory requirement that requires the municipality to have received prior notice of a problem with the sewer line or that the damage was the result of negligence on the part of the City. Subsequently, on August 13, 1993, Mr and Mrs DeWitt were notified that their claim was denied by the insurance company. Oklahoma case law has, over the years, held that the City is not an insurer of its wastewater system. In other words, the City is not "automatically" liable for damages to property as a result of a wastewater backup. A City is legally liable only if it had PRIOR NOTICE of a problem in the wastewater line and did not take action to address the problem (within a reasonable time). Essentially, the courts have determined that cities cannot guarantee the performance of wastewater lines and should not be liable for damages that result from "first - time" backups. Unless the City had prior knowledge of a problem, it cannot be held as negligent in the matter. IL MEMORANDUM Payment of Claim September 1, 1993 Page 2 Unless there is liability, the insurance coverage maintained by the City /Authority will no pay for any portion of the damages. Therefore, according to the determination of the claims management service, the City's insurance company will not pay this claim. OPTIONS However, the fact that the insurance company will not pay the claim does not legally restrict the Trustees from considering other options. Neither is the claimant restricted from pursuing a claim through the court system. The staff has investigated this incident and has concluded that there was a wastewater backup in a main line that caused wastewater to flow into the residence located at 11913 E 80th St N. The staff has further concluded that the backup was the result of tree roots penetrating the wastewater main line "down stream" from that location. Based on the information available, the Trustees have the following options available: Option 1 - Take action to deny the claim. Such action would serve to initiate the statutory time frame (180 days) within which the claimant must seek remedy through the court system. Option 2 - Take action to approve the claim. Such action would complete the process and, if the claimant signed the necessary releases, no further action would be anticipated. Option 3 - Direct the staff to negotiate a settlement of the claim in an effort to limit exposure as the result of a possible court action. Such a directive should be accompanied by a motion to table the agenda item until the next regularly scheduled meeting of the Authority. COMMENTS: 1. After receiving notice from the insurance company, Mr and Ms DeWitt called the City Manager to determine what their options were. Subsequently, a meeting was held with the DeWitts that included Councilor Bowen, Ms Parsons, Ms Boutwell, and the City Manager. Topic of discussion included legal liability, the options available to the DeWitts, and how they could appeal the denial to the Trustees. 2. In order to provide the Trustees with all information, a second appraisal of the damage was commissioned by the staff. The Townsend Claim Service reviewed the claim, visited the MEMORANDUM Payment of Claim September 1, 1993 Page 3 claimants' residence, and evaluated the damage. The adjustor for the service reported an actual cash value of loss at $3245.84, whereas the claimants' estimator indicated an actual cash value of the loss at $3773.08. Additionally, the claimants have requested payment for lodging (one night at $100) and payment for Roto-Rooter service ($74.00). 3. It should be noted that many cases of this type occur across Oklahoma on a daily basis. All research indicates that there is very little chance that, should the Trustees deny this claim, the claimants will prevail in a court action. In terms of assigning a value to the potential for exposure from a court action given the facts of this case, the staff analysis indicates that the Trustees decision relating to which option to select should not be influenced by the potential of exposure from a court ordered settlement or award. 4. The staff recognizes that the claimant has suffered property damage as a result of a problem they did not cause, nor could they have prevented. 5. However, the decision made by the Trustees must be reviewed in the context of setting a potentially expensive president in determining cases such as this one. While the citizen had no control over the situation, it must be recognized that neither did the City. RECOMMENDATION: Recognizing all of the issues involved, the staff recommends that the Trustees take action to deny the claim of Brian and Cindy DeWitt. ATTACHMENTS: 1. Notice of tort claim from Brian & Cindy DeWitt 2. Correspondence from insurance company 3. Estimate od damage supplied by DeWitts 4. Estimate of damage provided by Townsend Claim Service