HomeMy WebLinkAbout2010 05_OPWA_Increase Sanitary Sewer Service Rates_2010.07.20OWASSO PUBLIC WORKS AUTHORITY
RESOLUTION NO. 2010-05
A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY
ADOPTING RATES FOR SANITARY SEWER SERVICE CUSTOMERS
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, The Owasso Public Works Authority desires to establish the following rates
for the provision of sanitary sewer service effective October 1, 2010:
Base Rate — $6.97 Rate for each 1,000 gallons - $2.55
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF 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 sanitary sewer services shall be adjusted in
accordance with the above - referenced recital paragraphs and as specifically
codified pursuant to Ordinance No. 968 of the City of Owasso, Oklahoma
( "City ").
Section Two: The sanitary sewer rates established pursuant to the Resolution shall become
effective with the first utility billing cycle in October 2010.
PASSED, ADOPTED AND APPROVED THIS 201h DAY OF JULY, 2010.
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APPROVED AS TO FORM:
Julie Lombardi, City Attorney
OWASSP PUBLIC WORKS AUTHORITY
Chairman
Jon \pinex, Vice Chairman
MEMORANDUM
TO: THE HONORABLE CHAIR AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
FROM: SHERRY BISHOP
ASSISTANT CITY MANAGER
SUBJECT: WASTEWATER SERVICE RATE ADJUSTMENT
OPWA RESOLUTION NO. 2010-05
DATE: July 16, 2010
BACKGROUND:
The FY 2010 -2011 Adopted Budget includes an estimated increase in revenues gained as a result
of proposed water, wastewater, and stormwater rate increases. These increases were included as
a precautionary measure to help avoid large rate increases associated with failing to increase
rates over longer periods of time and to mitigate any notice of rate increase received from the
City of Tulsa ( Owasso's water supplier). Additionally, revenues gained from water, wastewater,
and stormwater rate increases facilitate the City's compliance with more stringent Federal
requirements and provide funding for the Capital Improvements necessary to ensure Owasso's
water distribution and management system is up -to -date and capable of managing a quickly
• growing population.
The estimated net results of these rate increases will be to pay the City of Tulsa approximately
$145,000 in increased water costs, and for Owasso to receive an additional $155,000 in utility -
generated revenue from water, wastewater, and drainage fees.
The current and proposed fee structure for utility services is presented below.
SERVICE
WATER
Minimum 1,000 gallons
Each additional 1,000 gallons
WASTEWATER
Minimum
Each additional 1,000 gallons
STORMWATER
Residential
REGULAR RATE
RURAL RATE*
Current
Proposed
Current
Proposed
10.54
10.84
12.65
13.01
3.97
4.27
4.77
5.12
6.83
6.97
6.83
6.97
2.50
2.55
2.50
2.55
2.50
3.00
N/A
N/A
* 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 $.36 per first
1000 gallons and $.35 per 1000 gallons thereafter.
The impact of the proposed rate increases on an average water customer would be approximately
$2.99 per month, or about $35.88 annually.
The Owasso Public Works Authority establishes utility rates by resolution and those rates are
adopted by an ordinance approved by the City Council.
ORDINANCES AND RESOLUTIONS:
Ordinance No. 968 adopts rates for water and sewer service effective October 1, 2010 as
established by OPWA Resolutions 2010 -04 and 2010 -05. The base rate for water would be
$10.84 with the usage rate per 1000 at $4.27. Customers outside the city limits would pay $13.01
for the base rate and $5.12 for the usage rate, 20% more than customers inside the city. Sewer
rates would be $6.97 for the base and $2.55 per 1000 gallons of usage.
City Council Resolution No. 2010 -09 increases stormwater system service rates for residential
customers effective October 1, 2010. The monthly service charge for the stormwater system
would be $3.00 for each single - family residential property, an increase of fifty cents.
OPWA Resolution No. 2010 -04 increases water rates effective October 1, 2010. The base rate
for water would be $10.84, an increase of thirty cents. The usage rate per 1000 of water would be
$4.27, also an increase of thirty cents. Customers outside the city limits would pay $13.01 for the
base rate and $5.12 for the usage rate, 20% more than customers inside the city.
OPWA Resolution No. 2010 -05 increases sanitary sewer rates effective October 1, 2010. The
base rate for sewer would be $6.97, an increase of fourteen cents. The usage rate per 1000
gallons would be $2.55, an increase of five cents. Customers outside the city limits pay the same
rate for sanitary sewer service.
RECOMMENDATION:
Staff recommends Trustee approval of OPWA Resolution No. 2010 -05, adopting rates for
sanitary sewer service to become effective October 1, 2010.
ATTACHMENT:
A. Proposed Rate Increases — Effect on Monthly Bill
B. OPWA Resolution No. 2010 -05
Proposed Rate Changes - Effect on Monthly Bill
Low Average Moderate - Summer High Summer
Usage Usage High Usage Usage Usage
Usage
Water
Sewer
Current Rate Billing
Water
Sewer
Refuse
Ambulance
Stormwater
Total
Proposed Rate Billing
3,000 gallons 7,000 gallons 12,000 gallons 20,000 gallons 35,000 gallons
2,000 gallons 5,000 gallons 8,000 gallons 10,000 gallons 10,000 gallons
18.48
34.36
54.21
85.97
145.52
11,83
19.33
26.83
31.83
31.83
13.70
13.70
13.70
13.70
13.70
6.00
6.00
6.00
600
6.00
2.50
2.50
2.50
2.50
2.50
52.51
Water
19.38
Sewer
12.07
Refuse
13.70
Ambulance
6.00
Stormwater
3,00
Total
54.15
$250
$200
$150
I
$100
$50
II
$7888
$5251 $54,15
75.89 103.24 140.00 199.55
36.46 57.81
91.97
156.02
19.72 27.37
32.47
32.47
13.70 13.70
13.70
13.70
6.00 6.00
6.00
6.00
3.00 3.00
3.00
3.00
78.88 107.88
147.14
211.19
Rate Change Comparison
$107.88
$10324
$211.19
_........_ .................
$19955
$140.00 $147.14
3,000 gals. water 7,000 gals. water I 12000 gals. water 20,000 gals. water I 35,000 gals. water
Low Usage Avg Usage: Moderate-High Usa ge: Su rTm er Usage: High Sun merUsage:
Total morthy bill forcity single -family residertid customers
la :Current Rate Proposed Rate