HomeMy WebLinkAbout2009 06_OPWA_Increase Water Rates_2009.08.18OWASSO PUBLIC WORKS AUTHORITY
OWASSO, OKLAHOMA
RESOLUTION NUMBER 2009 -06
A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY
ADOPTING RATES FOR WATER SERVICE WITHIN AND WITHOUT
THE CORPORATE LIMITS OF THE CITY OF OWASSO AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the Owasso Public Works Authority ( "Authority ") desires to establish the
following rates for the provision of water service effective October 1, 2009:
Base Rate Rate for usage
For usage of of each additional
0 -1000 gallons 1000 gallons
Users inside the corporate limits,
as well as those customers of Rural Water $10.54 $3.97
District #3 Rogers County acquired
November 1, 1993
Users outside the corporate limits $12.65 $4.77
BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO PUBLIC WORKS
AUTHORITY THAT:
SECTION ONE: From and after the effective date of this Resolution (as hereinafter set
forth), the charge by the Authority for water services shall be adjusted in
accordance with the above - referenced recital paragraphs and as
specifically codified pursuant to Ordinance No. 946 of the City of Owasso,
Oklahoma ( "City").
SECTION TWO: The water rates established pursuant to the Resolution shall become
effective with the first utility billing cycle in October 2009.
APPROVED AND ADOPTED this 18th day of August, 2009 by the Trustees of the
Owasso Public Works Authority.
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Stephen taudella, Chairperson
APPROVED AS TO FORM:
Juli ombardi, City Attorney
MEMORANDUM
TO: THE HONORABLE CHAIRMAN AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
FROM: DAVID HAVERKAMP
SPECIAL PROJECTS
SUBJECT: WATER RATE ADJUSTMENT
DATE: August 14, 2009
BACKGROUND:
The Owasso Public Works Authority (OPWA) received Notice from the City of Tulsa that,
effective October 1, 2009 water rates will increase from $2.18 to $2.26 per 1000 gallons. This
$.08 increase was unexpected and was not included in the FY 2009 -2010 operating budget. In
order to offset the rate increase from Tulsa, a water rate adjustment of $.08 is being proposed.
The current and proposed fee structure for water services is presented below.
SERVICE REGULAR RATE RURAL RATE*
Current Proposed Current Proposed
WATER
Minimum 1,000 gallons $10.46 $10.54 $12.55 $12.65
Each additional 1,000 gallons $3.89 $3.97 $4.67 $4.77
* Note: Water rates for rural customers have been established by OPWA Resolution to be 20%
greater than in -city rates. The proposed rate increase to rural customers would be $.10 per first
1000 gallons and $.10 per 1000 gallons thereafter.
The impact on an average resident consuming a total of 7,000 gallons of water would be $.56 per
month. The same rates apply to all customers in the city limits. An information sheet containing
both the existing and proposed water rate structure and how it would affect single family
residential customers is attached for your review.
As noted by the City of Tulsa, during the past few years, the cost of supplying potable water has
increased significantly. This rapid increase can be attributed to a number of factors, including
energy and chemical costs, and aging plant infrastructure. Chemical costs alone have increased
30 percent over the past year. The increased costs of meeting water quality requirements are
resulting in increased water rates and charges.
The OPWA establishes utility rates by resolution and those rates are adopted by an ordinance
approved by the City Council.
RECOMMENDATION:
Staff recommends Trustee approval of Resolution No. 2009 -06 adjusting the water rates to offset
the rate increase from the City of Tulsa.
ATTACHMENT:
Residential water rate change comparison
Proposed OPWA Resolution No. 2009 -02
Water Rates Comparison
OPWA
Water Utility
Single Family Residential
Customers
Usage:
3,000 gals. water
7,000 gals water
12,000 gals. water
20,000 gals . water
35,000 gals. water
Low Usage
Avg Usage
Moderate -High Usage
Summer Usage
High Summer Usage
Current Rate
$18.24
$33.80
$53.25
$84.37
$142.72
Proposed Rate
$18.48
$34.36
$54.21
$85.97
$145.52
Increase Amount
$0.24
$0.56
$0.96
$1.60
$2.80