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HomeMy WebLinkAbout1993.11.16_OPWA AgendaPUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY TYPE OF MEETING: Regular DATE: November 16, 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, November 12, 1993. Marcia Eoutwell, Counc' Clerk AGENDA 1. Call to Order 2. Flag Salute 3. Roll Call 4. Request Approval of the Minutes of November 2, 1993 Regular Meeting Attachment #4 5. Request Approval of Claims Attachment #5 Owasso Public Works Authority November 16, 1993 Page 2 6. Consideration and Appropriate Action Relating to a Request by a Customer for an Adjustment to Their Charges for Water Usage. Ms Donna Burger, Lewis Travel Trailer Attachment #6 Ms Burger and /or other representatives of Lewis Travel Trailer will present information to the Trustees relating to a request for Trustee action to reduce the water bill to that business for the months of July, August, & September. 7. Consideration and Appropriate Action Relating to Resolution #93 -05, a Resolution Establishing Water Rates Within and Without the Corporate Limits of the City of Owasso. Mr Ray Attachment #7 Staff will recommend Trustee approval of Resolution #93 -05. 8. Consideration and Appropriate Action Relating to a Request for Trustee Approval of a Contract Between the Owasso Public Works Authority and Deloitte & Touche for the Purpose of Calculating and Reporting Arbitrage Liability for the Period November 1, 1988 through October 31, 1993. Ms Bishop Attachment #8 Staff will recommend that the Council approve a contract in the amount of $2500 with Deloitte & Touche, and authorize the Mayor to execute such contract on behalf of the City. L I � u Owasso Public Works Authority November 16, 1993 Page 3 9. Consideration and Appropriate Action Relating to the FY 1992 -93 Independent Audit of the Owasso Public Works Authority Fund. Ms Bishop Attachment #9 Staff and a representative of Stanfield & O'Dell will make a brief presentation of the FY 1992 -93 audit and will recommend that the Trustees receive it and authorize the appropriate filings. 10. Report from OPWA Manager 11. Report from OPWA Attorney 12. Unfinished Business 13. New Business Owasso Public Works Authority November 16, 1993 Page 4 14. Adjournment OWASSO PUBLIC WORKS AUTHORITY MINUTES OF REGULAR MEETING Tuesday, November 2, 1993 The Owasso Public Works Authority met in regular session on Tuesday, November 2, 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, October 29, 1993. ITEM 1: CALL TO ORDER Chairman Randolph called the meeting to order at 7:30 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 Rex Bowen, Trustee Charles Burris, 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 OCTOBER 19, 1993 REGULAR MEETING. Charles Burris moved to approve the minutes as written, by reference hereto; seconded by John Phillips. AYE: Burris, Phillips, Bowen, Barnhouse, Randolph NAY: None Motion carried 5 -0. Owasso Public Works Authority November 2, 1993 ITEM 5: REQUEST APPROVAL OF THE CLAIMS John Phillips moved, seconded by Charles Burris, to approve the following claims as submitted: (1) OPWA Fund $146,678.32; (2) OPWA Capital Improvement Fund $27,101.54; (3) Total Transfers $31,884.16; (4) Payroll $21,073.48. AYE: Phillips, Burris, Bowen, Barnhouse, Randolph NAY: None Motion carried 5 -0. ITEM 6: CONSIDERATION AND APPROPRIATE ACTION RELATING TO A REQUEST FOR THE PURCHASE OF MATERIAL AND SUPPLIES NECESSARY FOR THE INSTALLATION OF ONE FIRE HYDRANT. In response to a citizen request, the area between Birch and Atlanta on West 17th St was evaluated for the addition of another fire hydrant. Although the hydrants that were there do meet minimum city fire protection standards, the water and fire departments agreed that it would be advantageous to place an additional hydrant midway between the existing hydrants. Chairman Randolph moved to authorize the purchase of a Mueller fire hydrant and related materials, to be placed on West 17th St, from Water Products at a cost of $1498.67. Motion seconded by Charles Burris. AYE: Randolph, Burris, Phillips, Bowen, Barnhouse NAY: None Motion carried 5 -0. ITEM 7 REPORT FROM OPWA MANAGER Mr Ray reported that the problem with a water service which had been reported to the Trustees, has been resolved and payment received. ITEM 8 REPORT FROM OPWA ATTORNEY No report. ITEM 9: UNFINISHED BUSINESS None 2 Owasso Public Works Authority ITEM 10: NEW BUSINESS None ITEM 11: ADJOURNMENT John Phillips moved, seconded by Mary Lou Barnhouse to adjourn. AYE: Phillips, Barnhouse, Bowen, Burris, Randolph NAY: None Motion carried 5 -0 and the meeting was adjourned at 7:35 p.m. Marcia Boutwell, Recording Secretary M November 2, 1993 Bob Randolph, Chairperson CITY OF OWASSO OWASSO PUBLIC: WORKS AUTHnRITY 11/11/93 16:27:18 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRTPTION AMOUNT ---- - - - - -- ------------------- - - - - -- ------------------- - - - - -- - * NO DEPARTMENT MASTER FOUND ------------------------ - - - - -- 940094 OPWA RECYCLE CENTER CASH FOR RECYCLE CENTER 600.00 940095 DEPT OF ENVIRONMENTAL QUA SOLID WASTE MNGMT 531.69 DEPARTMENT TOTAL =___? 1,131.69 OPWA ADMINISTRATION ------------------------ - - - - -- 940116 RONALD D CATES RETAINER 769.92 940117 CPS BUSINESS, INC. LICENSE FEE'S 217.00 940914 DOZIER PRINTING PRINTING 55.00 940966 BUILDER'S SQUARE REPAIRS 130.87 940968 HUGHES LUMBER CO SUPPLIES 75.47 940990 SHERRI & KEN FISHER CLAIM 90.00 941000 LIBERTY TULSA ANNUAL FEE 3,750.00 941061 TREASURER PETTY CAS9 CONF /CARR 198.26 941064 WAL -MART SUPPLIES 6.88 941089 OFFICE DEPOT CARD PLAN SUPPLIES 8.38 TYRONE DTNKINS DEPARTMENT TOTAL. ____? METER RFADER 5. ?01.78 WATER ------------------------ - - - - -- 940124 MC_.CAW COMMUNICATIONS PAGER RENTAL 22.45 940566 WATER PRODUCTS INC SUPPLIES 561•78 940826 WATER PRODUCTS INC SUPPLIES 287.52 940827 WATER PRODUCTS INC: SUPPLIES 513.47 940851 WATER PRODUCTS INC SUPPLIES 1,267.43 940894 WATER PRODUCTS INC SUPPLIES 575.00 940905 CINTAS CORP. UNIFORM RENT /CLEAN 96.20 94090:' HATER PRODUCTS THC SUPPLIES 535.22 940927 TYRONE DTNKINS METER RFADER 217.35 940938 LOYD LEACH METER READER 112.95 ?40939 MICHAEL MILLER METER READER 179.55 940940 BRAD SPARKMAN METER READER 152.55 DEPARTMENT TOTAL ____. 4,621.47 WASTEWATER ------------------------ - - - - -- 940124 MCCAW COMMUNICATIONS PAGER RFNTAL 44.90 8 CITY OF OWASSO OWASSO PUBLIC WORKS AUTHORITY 11/11/93 16:27 :18 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT -------------- - - - - -- ------------------- - - - - -- ------- - - - - -- 940821 MOHAWK SAND & GRAVEL. CO GRAVEL 314.13 940906 CINTAS CORP. UNTFORM RENT /GLEAN 264.70 941066 TAYLOF PAPER CO SUPPLIES 77.02 941095 MAC'S ELECTRIC SUPPLY REPAIR 280.17 DEPARTMENT TOTAL 980.92 REFUSE COLLECTIONS ------------------------ - - - - -- 940808 KIMBALL ACE HARDWARE SUPPLIES 29.96 940811 CINTAS CORP. UNTFORM RENT /CLEAN 125.80 940995 FAST SIGHS SUPPLIES 189.60 941083 M.E.T. 2 QTR MEMBERSHIP 661.42 DEPARTMENT TOTAL =___) 1,006.78 RECYCLE CENTER ------------------------ - - - - -- 940808 KIMBALL ACE HARDWARE SUPPLIES 4.99 940811 CINTAS CORP. UNIFORM RENT /CLEAN 28.40 DEPARTMENT TOTAL =___> 33.29 FUND TOTAL =___> 13,076.03 0 CITY OF OWASSO OPWA CAPITAL IMPROVEMENT FUND 11/11/93 16 :27:18 A/P CLAIMS REPORT APAPVR PAGE: PO # VENDOR DESCRIPTION AMOUNT ---- - - - - -- ------------------- - - - - -- ------------------- - - - - -- ------- - - - - -- WASTEWATER ------------------------ - - - - -- 941003 FHC DEPARTMENT TOTAL FUND TOTAL, ____> SERVICES 2,95.00 2,925.00 2,925.00 10 OWASSO PUBLIC WORKS AUTHORITY PAYROLL PAYMENT REPORT PAY PERIOD ENDING DATE 10/30/93 DEPARTMENT AMOUNT ... ........er ...........:.::: ::::......:................::.� .::::::::::::::.:::::• :. }.::::::::.,:::. }::.:�:n<::<: iii:}:;.:; �::<:::::»:: r<:».<::<:::>: «::<:.::::......'.'�''}::.:v } }} Water ....... ... ............... 2,824.66 :::........ av . ........... . ......::i.} LLii•}}} ' :.: } }:. }ii:v:ii::::ii'rii:St:} ............ iii::; isn}: i$ ifi} �: iijv,: iiiv}: 4:•}:::::::::::. }'L: {i• } }i }:L:i4:• } }'. }w:::: 'r }� }✓. ... F•.':: Refuse ii}:: i} :v: 3,535.03 ......... ..........................: r..::::.::. �::::::::::. �:::::;i i• } }:. }:: }:::i•:i iii:: }::i::i::i. }: �:.: • .:::Y::F' <�;:....: }:' ::.::.:. ..;: '::. ;:: i:: ii:: i:. i:: i:<:}:.}}<:.:.::}:: i:: i:<:::i::i::i::i::i::i�:<•.:.:: �....:..:...:.. a.:}}:. � ::::::..::.:......::.:::::: .�"�...�... �.'.."�.. ',... ; ;' :ii ::::.> ; ::} ., :::::•:i::i5::;:;:i;:i ii::i::; ;:i;:;:;: iii.}:.:.}:.}>}:.}:.}}:.;:.{:.}:.}:: i:: i::i•;;• ;.. }:. }:. }:. }:. }:. > }:.: �:;.}:.::<::;::: i : } } } }:. } }:.:. }:;. ::....:: x::::::.x:.vv:w:: :C::,a: ;v: naa•.L:::::2i.:tiL4 }:i0: :::::::.......:..:..:::..<..::: }:. }:. }:. } }:.. .: � : �•:: .::..:.: :. }: ��i:);I!�� ?: iii{ L4: L: ini •:ti..}iyti•}nQK�}S'l.:i %:1ii$: :: �:$�•.av . v:•. .:..:r{.::ii. }::viLi• } }:• }:t::. �::::.: <i%,.;:�: APPROVED: 11/16/93 Chairman Trustee Trustee lul ►i�' liyjl u TO: CHAIRMAN AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY ' FROM: RODNEY J RAY CITY MANAGER SUBJECT: REQUEST FOR ADJUSTMENT TO WATER USE CHARGES FROM ' LEWIS TRAVEL TRAILER ' DATE: November 11, 1993 BACKGROUND: ' The staff has received a request (see attached) from Lewis Travel Trailer to address the Trustees regarding charges for water usage. According to the letter received from Donna Burger, the purpose of the presentation will be to "ask for an adjustment on" their water bill. The staff has been involved in an ongoing discussion regarding the amount of water used and the amount of ' money owed by Lewis Travel Trailer since July. Additionally, there have historically been problems with this customer regarding water usage and payment of the charges for that usage. During the past seven years, the staff has repeatedly been forced to rely on extreme enforcement measures in order to procure payment of water service charges. Because of that history, this most recent problem provided an opportunity for the staff to clearly establish a position that would facilitate a long -term solution to the problem. ' The most recent problem, and the one that will be discussed at this meeting, involves the company's water bill for June, July, August & September. On July 16, 1993, after a call from ' the company complaining about a high water bill (387,000 gallons for a total of $1826), a representative from the water department examined the water meter at the company and found no leak or abnormality with the meter. It is the staffs position that, at that point, the company was aware of a problem and that the problem was not the responsibility of the city. However, apparently nothing was done to correct the problem because on August 18 another call was made by the company to complain about another high water usage (798,000 gallons with a total cost of $3754.40). About thirty days later, on September 15, the company requested another check L of the meter after receiving a third larger bill (1,141,000 gallons at a cost of $5363). At that point the company was again advised that the problem was their responsibility. ' By October 12th the water charges had accumulated to a total of $11,098 and were at a point that required action to prevent further exposure of the city to possible loss. Therefore, on that date, correspondence was delivered to the company informing them of the need to pay at least the past due amount of $7587. That correspondence outlined the staffs position that the company should have acted to solve the problem in July and, therefore, only the July billing 1 MEMORANDUM Lewis Travel Trailer November 11, 1993 Page 2 would be adjusted. At that time, the utility billing department made an adjustment of $441.60 to the July bill and deducted that amount from the total amount owed. On Wednesday, October 13, the staff was contacted by the company and asked if there was recourse to the City Manager's decision. They were informed that an appeal to the OPWA Trustees was one method of gaining relief from that decision. Subsequently, on Tuesday, October 19th, Ms Burger talked directly to me and requested that I modify my position and allow an adjustment to the entire bill. Ms Burger seemed to base her request on a theory that since someone called the city each month when their bill was received, the problem was not really theirs. My response to Ms Burger was that the company was put on notice in July that a problem existed in their portion of the system. It was, and remains the position of the staff, that because the problem continued, it is obvious the company did not act prudently to correct the situation. Based on Ms Burger's indication that the company would appeal the October 12th decision, no action was taken to discontinue service as originally planned for October 15th. However, by October 28th no request for appeal of that decision had been made. Therefore, on October 28th, correspondence was "hand delivered" demanding payment in full on or before 5:00 p.m. on Tuesday, November 2nd. On November 2nd at 6:00 p.m., water service to Lewis Travel Trailer was terminated due to non - payment. At 6:15 p.m. on that same date, payment in full was received and water service was restored at 7:20 p.m. This entire situation is somewhat clouded by a question of ownership of a portion of the property served. The meter to this area is in the name of Lewis Travel Trailer, however, by court order as a result of a dispute, there are two owners of property served by that meter. On Tuesday, November 16th, members of the staff are scheduled to meet with both parties at the site where water is delivered to determine if the separate properties can be served by separate meters. Attached for your review are copies of correspondence from this most recent problem. Please note that this is the fifth request for adjustment from this company in seven years. RECOMMENDATION: I The staff is comfortable with its current position of allowing an adjustment for the July billing, but requiring full payment for the subsequent charges. However, this is an appeal of a City Manager's decision and, as such, no recommendation is made. ATTACHMENTS: 1. Correspondence to Lewis Travel Trailer dated 10/12/93 ' 2. Correspondence to Lewis Travel Trailer dated 10/28/93 3. Correspondence from Donna Burger dated 11/3/93 4. Correspondence from Gary Burger dated 11/10/93 ' LES TRAL LtLJTRAILE!RS Owa sso, Okla. 74055 11518 E. 66th Street North — Box 104 (918) 272 -1353, 272 -2134 NOV � q November 3, 1993 City Of Owasso 207 South Cedar P.O. Box 180 Owasso, Oklahoma 74055 Attn: Rodney J. Ray City Manager Dear Mr. Ray This is to serve as our written request to be placed on the agenda of the next Council meeting to appeal our large water bill due to a leak. We would like to appear before the Council to ask for an adjustment on that bill. Sincerely, Donna Burger DB /gs ,VIINN EBAGO U .80 LEW /S TRAVEL A(TRAILERS 11 518 E. 66th Street North — Box 104 (91 8) 272 -1353, 272-2134 Owasso, Okla. 74055 November 1O, 7.993 Rodney i . Kay City Manager " C i r t1 d V ` 9 3 City of Owasso 207 South cedar Owasso, O K 74055 ----­--------- i)Par Mr. Ray: rnanx you for � Y getting the water bill on the agenda for the meeting of Nov. ib You have been a key player in getting us to resolve this long term problem, op just as you have been in many of the other events from baseball to Good Sam s rallies. This is a long running problem that goes back to the Mobile Home park that wa,", on this land before our business. There is but a single meter that serves our business, the remains of the Mobile Home park, and the home of Larry Kornegay. The ownership of the land has been divided but the water has remained unified. The current problem happened on a mobile home lot distant from our business and not used by either of us. You have pointed out to us that for a number of reasons the pipes to the old mobile home sites are decaying and the most effective way to close and cap those pipes. Steps are now being taken to act on those suggestions. An additional meter for the property owned by Larr?' Kornegay has also been discussed and with the closing and the capping of the L unused lines shniild prevent this from ever happening again. Relief from the huge water bill that resulted from this undetected leak would , be most welcome. The relief will enable us to repair the problem on a permanent basis. It would also help us continue our activities with the Owasso Good Sam`s, Teams and organizations. Relief would also be most welcome in this the slower selling season for recreational vehicle business. it is never easy or pleasant to be confronted by surprise problems and a expenses, but your concern, active assistance, and professionalism have made the huge water bill a learning and problem solving experience, Thank vn>> again for all your help in this matter. Sincerely; /G�_a L Bu ger i.den t ���'�° gal '1111iN � c� Y s U 0 y. City of Owasso ' 207 SOUTH CEDAR P.O. BOX 180 OWASSO, OKLAHOMA 74055 October 12, 1993 ' Donna Burger Lewis Travel Trailers ' Box 104 Owasso, Ok. 74055 RE: Acct. 17 50021 Ms. Burger: in u (918) 272 -2251 FAX. (918) 272 -4999 After a review of your request for an adjustment to your water bill, a decision was made to adjust to our cost the excessive usage of 138,000 gallons for the month of July. The total amount of the adjustment is $441.60. On July 16, a city representative examined the water meter at your business and found no leak on the city's side. At this time you were aware, because of the high usage, that you may have a problem and that the city's meter was functioning properly. On August 18, an additional trip was made by a field supervisor, confirming no leaks on the city's side. At your request, on September 15, a field supervisor met with you to confirm that a leak existed on your side of the meter. It was unfortunate that you were led to believe that all of the overage would be adjusted to cost. Each adjustment is reviewed independently and a decision made based on individual circumstance. In your circumstance, it is concluded that you were aware of a possible problem on your side of the meter in July and did not take proper steps of correction until September. Due to the neglect of water conservation on your part, I do not feel additional adjustments can be made at this time. After this adjustment, your past due balance is $7,587.62. Please ' contact the Utility Billing Department by Friday, October 15, to make acceptable payment arrangements and to avoid discontinuation of service. Sinc ely, Rodn Ray city Manager City of Owasso 207 SOUTH CEDAR P.O. BOX 180 �,.. >a..., OWASSO, OKLAHOMA 74055 October 28, 1993 Donna Burger Lewis Travel Trailer PO Box 104 Owasso, OK 74055 Dear Ms Burger: (918) 272 -2251 FAX. (918) 272 -4999 Subsequent to my letter of October 12, 1993, I discussed with you (on Tuesday, October 19, 1993 via telephone) the staff position regarding your water bill with the City of Owasso. During that conversation, you had indicated an interest in appealing my decision relating to an adjustment to the City Council. Notes from that conversation indicate that I informed you of a need for a written request in order to be placed on the agenda. Additionally, those notes indicate that the date of the next Council meeting was discussed, as well as a promise that I would mail to you a list of all Council members. One purpose of this correspondence is to inform you that as of this date I have received no request from anyone affiliated with Lewis Travel Trailer relating to an appearance /appeal before the Owasso City Council. Therefore, the agenda for the November 2, 1993 meeting has been set and will be posted without an item relating to your request for a utility bill adjustment. Secondly, please consider this correspondence as an official demand for payment of the full balance due for water service and usage to the Owasso Public Works Authority. In order to avoid a termination of water service to your facilities, the past due amount of $7,587.62, plus the current bill (October) of $3,861.56, must be paid by the close of business on Tuesday, November 2, 1993. Please note that such action will not be postponed beyond 5:00 p.m. on November 2, 1993, and, absent payment, your water service will be cut off at that time on that date. This requirement for payment in no way precludes you from an appeal of this decision to a future meeting of the City Council /Owasso Public Works Authority. Should you decide to make such an appeal, please do so in writing as previously discussed. Should the Council, after hearing your presentation, determine that you are due an adjustment, the City will refund to you that portion of your bill they instruct the staff to remove. A City Manager copy: Utility Billing City Council I 207 SOUTH CEDAR P.O. BOX 180 OWASSO, OKLAHOMA 74055 October 28, 1993 City of Owasso d��R. o wwuo 4 �t J , (918) 272 -2251 FAX. (918) 272 -4999 I, Roger Stevens, do certify that I hand delivered a sealed letter from the City of Owasso, addressed to - Donna- Burger, Lewis Travel Trailers, at 11518 E. 66 St. N., Owasso, Ok. on 10/28/93 at . -�-/.' CC pm. Gc"V &"'Iy 0,S lJZ'of � �L�U>✓'>Z.J R?�eV Stevens, Water Laborer City of Owasso Dat 1 3 MEMORANDUM I TO: THE CHAIRMAN AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY I FROM: RODNEY J RAY CITY MANAGER ' SUBJECT: REPORT FOR ESTABLISHMENT OF WATER RATES FOR RURAL CUSTOMERS AND NEW CUSTOMERS ACQUIRED FROM ROGERS COUNTY RURAL WATER DISTRICT #3 IDATE: November 11, 1993 BACKGROUND: 1 On March 2, 1993, Trustees of the OPWA approved a concept for the purchase of one and one - half sections of "protected service area" from the Rogers County Rural Water District #3. On ' that same date, the OPWA entered into a contract with the district, thereby formalizing the concept agreements negotiated between the parties. ' The concept agreement and subsequent contract contained language that allowed those customers within the service area being purchased by the City to pay water rates that were to be no greater than the rates paid by customers residing within the corporate limits of the city. Additionally, tthe concept approved by the Trustees outlined a "phased in" approach to equalizing water rates. The Council recognized that the inequity between the in -city rates and rural rates (rural ' customers pay 75 % more for water than in -city customers) should be addressed and an effort made to reduce the difference between those rates. The equalization concept requires that the staff annually evaluate and analyze the revenue produced by the one and one -half section acquired from the district. As revenue from that area added to the Authority's profit, the difference between the "rural rate" and "in- city" rate was to be decreased by that same amount. Therefore, the rate reduction would not adversely impact the OPWA's bottom line. Resolution #93 -05, if approved, will provide the proper legal authority for rates contemplated through previous Trustee action. The resolution provides that those customers formerly served by the rural water district be charged at the "in -city" rate even though they do not reside within the corporate limits. The resolution also reduces the rates for all other rural customers by an average of $1.40 per month ($16.80 per year). That reduction is derived from a one dollar decrease in the base rate and a nine cent per thousand gallons decrease in the usage rate. Please note that the rate reduction is based directly upon the operating net revenue produced by the new customers from the rural water district. 1 MEMORANDUM ' Water Rates November 11, 1993 ' Page 2 RECOMMENDATION: ' The staff recommends Trustee approval of Resolution $93 -05. ATTACHMENTS: 1. Resolution #93 -05 2. Contract between OPWA and Rogers Rural Water District #3 01 11 Il 11 . 'dw OWASSO PUBLIC WORKS AUTHORITY OWASSO, OKLAHOMA RESOLUTION NUMBER A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY ESTABLISHING RATES FOR WATER SERVICE WITHIN AND WITHOUT THE CORPORATE LIMITS OF THE CITY OF OWASSO, OKLAHOMA, DECLARING AN EFFECTIVE DATE BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY, THAT: Section One: The rate schedule set forth on Exhibit "A" attached hereto and made a part hereof is hereby adopted. Section Two: The aforementioned rates as well as rate applications shall be effective for November, 1993, usage as reflected by December, 1993, billing. PASSED ANI) APPROVED this day of November, 1993. OWASSO PUBLIC WORKS AUTHORITY By: Bob Randolph, Chairman ATTEST: Sherry Bishop, Secretary APPROVED AS TO FORM: Ronald D. Cates, Authority Attorney opwa -r.wsr EXHIBIT "A" All new Rogers Water District #3 customers, acquired November 1, are to be adopted to our existing city rate as follows: First 1,000 gallons $7.07 (minimum charge); and, East additional 1,000 gallons $2.69. All rural customer rates, including customers living outside the corporate limits of the City of Owasso, Oklahoma, but inside the territory acquired by the Owasso Public Works Authority from Rural Water District #3, Rogers County, Oklahoma, who were not customers of the Rural Water District #3, Rogers County, as of November 1, 1993, are to be changed to the following: First 1,000 gallons $11.47 (minimum charge); and, Each additional 1,000 gallons $4.61 opwa -r.wsr M CONTRACT %arc% THIS CONTRACT made and entered into this 2„d day of 1993, by and between RURAL WATER DISTRICT NO. 3, Rogers County, Oklahoma, party of the first part, hereinafter referred to as "DISTRICT", and THE OWASSO PUBLIC WORKS AUTHORITY, a Public Trust, of Owasso, Oklahoma, party of the second part, hereinafter referred to as "AUTHORITY ". WITNESSETH: WHEREAS, District is a duly incorporated Rural Water District, and whereas, Authority is a duly authorized Public Trust, both created under the authority of the Statutes of the State of Oklahoma; and, WHEREAS, District is operating a Rural Water District in Rogers County, Oklahoma, and Authority is distributing water in an area partially located in Rogers County, Oklahoma; and, WHEREAS, it has been deemed by both the Boards of District and Authority to be in the best interest of all parties concerned, that District deannex a portion of its area now being served, based upon its inability to properly provide service to its customers, and to sell and transfer that portion of its system to Authority, said legal description of the area to be deannexed and transferred, and the property and equipment to be transferred, all as described and set forth in Exhibit "A" attached hereto and incorporated herein and made a part hereof; and, WHEREAS, Authority is equally desirous of purchasing same, NOW THEREFORE, in consideration of the mutual covenants, promises and agreements, the parties hereto agree as follows: 1. District will cause the property described on Exhibit "A' to be deannexed from Rural Water District No. 3, Rogers County, Oklahoma, by the proper statutory procedures. Said deannexation to be completed prior to 180 days from the date this contract is signed by all parties. The Parties agree to agree on a date of closing within 180 days from the date this agreement is signed by all parties or any extension is made in writing signed by both parties. In the event deannexation is delayed, and the closing provided is not accomplished within said 180 days from the date this contract is signed by all parties, or unless the time is extended by all parties, then this Contract shall be void. 2. District will convey all of their right, title and interest in and to their presently owned rights of way and easements, and all lines, meters and equipment, as described in Exhibit "A ", and include any equipment now in place or to be in place on the date of closing, or to such time as the closing may be extended as provided in Paragraph 1 above, upon the terms and conditions hereinafter set forth. 3. District will provide Authority with such maps, plats and engineering drawings that they may now have in their possession, and reasonable personal assistance to Authority in the location of said meters, lines, easements, rights of way, and equipment. 4. Both District and Authority agree the transfer will take place at 8:00 a.m. on a closing date to be agreed upon within said 180 day period or any extension thereof. Until said time, District shall be responsible for the furnishing of service to its customers and shall be liable for any such operation and shall be entitled to accumulated billings until 8:00 a.m. on the date of closing. District agrees to provide a final reading on or before that time and a final billing rendered to customers. It is specifically agreed that if payment of the final billing, as prepared and billed by District, comes into the hands of Authority, Authority will forthwith account and pay over to District any such sums acquired by them. The closing date as herein set forth may be extended in accordance with the provisions of Paragraph 1 above. 5. District agrees to make proper conveyance to Authority by assignment of its easements and rights of way and by proper Bill of Sale in and to all personal property and equipment, all as described in Exhibit "A" attached hereto. District makes no warranty, ' express or implied, as to the title to the real property, rights of way, easements to be conveyed by them to Authority, except that it has the right to assign such rights of way and easements and it will warrant title to the personal property, lines, meters and equipment as described on Exhibit "A ". Authority will have a reasonable time to inspect and test such equipment and lines, but District makes no warranty, express or implied, of the condition of the lines, meters and equipment. 6. District states and represents that the property conveyed is subject to a lien and that they will obtain a release of said lien from the Farmers Home Administration, satisfactory to Authority of the area to be deannexed and the property to be sold and conveyed to Authority under the terms and conditions hereinafter set forth. 7. Authority agrees to provide water service to the present customers in the deannexed area at the same rate as that charged to water customers within the limits of the City of Owasso, Oklahoma. Authority agrees to accept Benefit Units from District members in lieu of a water meter deposit and to reassign said benefit units to District for cancellation. 8. Persons seeking water service who are not being served at the time of closing shall be permitted service connection at the discretion of Authority subject to ordinary and customary fees as may be applicable. 9. District agrees to furnish Authority at time of closing a list with current addresses of its customers. 10. Authority agrees to pay District at time of closing the total purchase price for the property described in Exhibit "A ", of Forty Nine Thousand Seven Hundred Fifty Dollars ($49,750.00) said purchase price to be paid in cash, subject to the following: (a) Delivery at time of closing of all necessary recordable documents executed by the District in favor of the Authority to convey all items referred to in Paragraph above. (b) List of customers as provided in Paragraph 9 above. A (c) Release of lien on behalf of the Farmers Home Administration. (d) Provide the Authority with UCC search in Rogers and Oklahoma County and certification from the Secretary of State, all evidencing there are no liens or encumbrances filed against the subject property other that the Farmers Home Administration Mortgage. 11. Authority will assume all right, title and interest in said property conveyed and shall assume the duty to maintain and operate said system from 8:00 a.m. of date of closing and shall assume liability for the operation of said system as shall occur from that time and date. District acknowledges that it shall be liable for any claims or occurrences attributable to its operation of the system up to the time and date of closing and each party hereto agrees to hold the other party harmless from any liability, attorney's fees and expenses of any nature whatsoever arising from or related to any liability assumed herein. 12. The cost and performance of this Contract shall be as follows: Each party shall pay their respective attorney fees. Authority shall pay recording fees of the documents acquired from District No. 3, and any and all expenses incurred in obtaining financing for the purchase of any property. District No. 3 shall pay expense of deannexation and any expense incurred relative to The Farmers Home Administration loan. District No. 3 shall pay their expenses of material and labor to disconnect from the District lines within the deannexed area. Authority shall furnish such necessary material and labor to connect the deannexed area to its system. IN WITNESS WHEREOF, the parties hereunto have affixed their hands and seals of the signature to be attested by an appropriate officer of each party, the day and year first above written. ATTEST: Secretary ATT -EST: RURAL WATER DISTRICT NO. 3 Rogers County, Oklahoma By: Chairman THE OWASSO PUBLIC WORKS AUTHORITY hairman EXHIBIT "A" A. LEGAL DESCRIPTION OF AREA BEING DEANNEXED: THE N 1/2, AND THE SE 1/4, AND THE N 1/2 OF THE SW 1/4, ALL IN SECTION 21, TOWNSHIP 21 NORTH, RANGE 14 EAST, TULSA COUNTY. AND AND THE SOUTH 1/2 LESS AND EXCEPT THE EAST 50 FEET OF THE SE 1/4, ALL IN SECTION 16, TOWNSHIP 21 NORTH, RANGE 14 EAST, TULSA COUNTY. B. SEVENTY -SIX (76) METERS AND NORMAL APPURTENANCES. C. ALL WATER LINES, VALVES AND APPURTENANCES OWNED BY RURAL WATER DISTRICT #3 IN THE ABOVE DESCRIBED AREA. LESS AND EXCEPT THE (4 ") PVC WATER LINE LOCATED IN THE EAST 50' OF THE SE 1/4, SECTION 16, TOWNSHIP 21 NORTH, RANGE 14 EAST, TULSA COUNTY. D. AERIAL PHOTOGRAPHS OF THE AREA DEPICTING THE METER LOCATIONS. E. ALL ROW AND EASEMENTS LOCATED IN ABOVE DESCRIBED AREA. 1I II MEMORANDUM TO: CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: SHERRY BISHOP FINANCE DIRECTOR SUBJECT: ARBITRAGE CALCULATION DATE: November 12, 1993 BACKGROUND: In connection with the issuance of the 1988 OPWA Revenue Bonds, the Authority certified that requirements of the Internal Revenue Code of 1986 would be met. The tax code requires that excess interest earned must be rebated to the United States Treasury. Excess interest is the amount earned on investments over the amount earned if such investments were invested at a rate equal to the yield on the bond issue. Failure to comply with these provisions could result in penalties and /or the loss of the tax- exempt status of the issue. A calculation of the Aggregate Rebate Amount must be made annually (November 1). Any rebate due the federal government must be reported and paid at least once every five years. The liability calculated as of November 1, 1992 is $129,932.14. This amount is held by the trustee bank in a Rebate Account. November 1, 1993 is the end of the fifth year of the bond issue. Rebate calculations and any payment due will be sent to the IRS this year. The firm of Deloitte & Touche performed the computations last year. Arbitrage rebate is a particularly complex section of the tax code, therefore, a very specialized field of accounting. We were very pleased with the professionalism and timeliness of the report last year. Deloitte & Touche proposes to perform the rebate computations and render a report for the period November 22, 1988 through November 1, 1993 and prepare the required federal tax form for a fee of $2,500. This is an increase of $200 over the fee paid last year. The increase seems reasonable since this is the fifth year and additional reporting will be required. ARBITRAGE NOV. 12, 1993 PAGE TWO RECOMMENDATION: Staff recommends that the Authority approve a contract for $2,500 with the firm of Deloitte & Touche to provide bond rebate computation services for the 1988 Series Revenue Bonds for the period of November 22, 1988 through November 1, 1993. ATTACHMENT: Contract document with Deloitte & Touche 1 I I I I Deloifte & Touche /0 November 2, 1993 Ms. Sherry Bishop City Treasurer City of Owasso P. O. Box 180 Owasso, Oklahoma 74055 Dear Ms. Bishop: Suite 900 Telephone: (405) 552 -3000 20 North Broadway Facsimile: (405) 235 -8424 Oklahoma City, Oklahoma 73102 -8203 We appreciate the opportunity to propose our arbitrage rebate calculation services to the City of ' Owasso for the $6,100,000 Owasso Public Works Authority (Owasso, Oklahoma) Public Improvement Revenue Bonds, Series 1988 (the 'Bonds "). We estimate our fees to perform the rebate computations and render our report to be $2,500 for the period November 22, 1988 through November 1, 1993 (the "Computation Period "), including the preparation of Federal Tax form 8038 -T, if required. If the foregoing is in accordance with your understanding, please sign and return to us the duplicate copy of this letter. We appreciate this opportunity to continue serving you and trust that our association will remain a long and pleasant one. rr. Yours truly, Approved for the City of Owasso: Title: Date: DeloitteTouche Tohmatsu International � I ' �o�vnuM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO CHAIR AND TRUSTEES OWASSO PUBLIC WORKS AUTHORITY FROM: SHERRY BISHOP FINANCE DIRECTOR SUBJECT: AUDIT REPORT FOR FISCAL YEAR 1992 -93 1 DATE: NOVEMBER 12, 1993 t BACKGROUND: An independent audit, performed by a certified public accountant, is required by city charter and ' state statutes. This is the second year that the firm of Stanfield & O'Dell has served as auditors for the City of Owasso and the Owasso Public Works Authority. The reports from the auditors are attached as three separately bound reports. F inancial Statements and Report of Inde Pe ndent Certified Public Accountants Auditors' Single Audit Reports Advisory Comments Memorandum I FINANCIAL STATEMENTS: As expected, the fund balance of the General fund increased again this year. The "excess of revenues and other sources over expenditures and other uses" for the General fund is $18,379. (See page 8, column 1.) The "fund balance, end of year" is $597,609. For governmental funds, the City uses a "modified accrual basis of accounting" (defined on page 15, note #3). Modified accrual means that next month's taxes (because they have been collected by the Oklahoma Tax Commission) are included in the year -end fund balance. The "budget basis" fund balance (funds that could actually be appropriated for expenditure) is $304,908. AUDIT REPORT NOV 12, 1993 PAGE 2 The unreserved fund balance ratio is often used as a measure of a government's financial health. It is the ratio between the resources available for contingencies (unreserved fund balance) and the annual operating expenditures. As a general rule, cities should maintain a ratio between five and ten percent. The June 30, 1993 fund balance of $304,908 provides an unreserved fund balance ratio of 9.8 %. Some of this unreserved fund balance has already been appropriated in the 1994 fiscal year budget. With a budgeted decrease in fund balance and increase the operating budget for FY 1994, the unreserved fund balance ratio at the end of FY 1994 is projected to be 6.4 %. The OPWA, because it is an "enterprise fund," uses an accrual basis of accounting. The most significant differences are that depreciation and debt expenses are recorded in the OPWA but not in the General fund. Enterprise fund accounting is intended to be similar to accounting for private sector businesses. The "net loss" in the OPWA is $49,837 (page 11, column 1). All transactions associated with the OPWA 1988 Revenue Bonds (Sales Tax account, Capital Future Fund account, bond principal and interest expense, and interest earned on those accounts) as well as, the 1993 OWRB Promissory Notes (OPWA Capital Improvements fund, and restricted water and wastewater revenue) are reported in the OPWA. These restricted accounts included in the OPWA report make it very difficult to get a realistic financial statement for the OPWA utility operation alone. Excluding restricted funds, debt related expenses and funding for capital improvements, the ' OPWA had a net loss of $657,479. $704,466 of this loss is due to depreciation on property, equipment, and utility lines. Even though depreciation is not a "cash" expense, it is a real cost of operating a business. If revenues were sufficient to fund all operating expenses including depreciation, then all OPWA fixed assets could be replaced, as needed, from operating cash. The unrestricted operating cash balance, net of current payables, is $229,211. This is a decrease of $80,480 from last year. Other individual funds are reported on pages 44 -45 and pages 57 -58. SINGLE AUDIT REPORTS: This document contains reports that are required (in addition to the financial statements) of all recipients of state and federal funds. Most of this report contains standard accountant "opinion" letters. The Schedule of Federal Financial Assistance is on page 4 and itemizes the grants active during the fiscal year. Two reports on "internal control structure" are on pages 5 -6 and 7 -9. The auditors report no matters that they consider to be "material weaknesses." AUDIT REPORT NOV 12, 1993 PAGE 3 Pages 10, 11 and 13 are reports on "compliance" with laws, regulations, contracts, grant requirements, etc. There were no "material instances of noncompliance" reported by the auditors. One "immaterial" instance of noncompliance was discovered by the audit and is reported on page 12. The DARE grant requires monthly reports by the 15th. One report was not prepared until the 19th of the month. ADVISORY CONMENTS MEMORANDUM: This document contains the auditors comments and suggestions for the improvement of procedures and administrative controls. This report is the auditors' opportunity to comment about anything that came to their attention during the course of the audit work. These comments are not considered "material weaknesses" nor are they "material instances of noncompliance." The advisory comments are valuable in helping develop proper fiscal controls to ensure the integrity of the accounting system. We are pleased that the number and magnitude of the comments is small this year. Staff response to each of the advisory comments will be issued in a separate memorandum for your review. RECOMMENDATION: Staff recommends that the City Council and the Owasso Public Works Authority receive the audit report and direct it to be filed as required by law. Note: Copies of the three reports from the auditors were delivered to council members last week. Additional copies of those reports are not included in this agenda packet.