The URL can be used to link to this page

Home My WebLink About2010 08_OPWA_Utility Billing User Fee Increases_2010.09.21Tulsa County Clerk - EARLENE WILSON Doc # 2010086382 Page(s): 2 Recorded 09/27/2010 at 03:55 PM Receipt # 232627 Fee $15.00 WORKS AUTHORITY RESOLUTION 2010 -08 A RESOLUTION ADOPTING FEES TO BE CHARGED FOR UTILITY SERVICE PROVIDED BY THE OWASSO PUBLIC WORKS AUTHORITY, AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Owasso Utility Billing Department provides services relating to Water, Wastewater, and Refuse billing for the benefit of the citizens of the Owasso area; and WHEREAS, the cost of providing these services continues to rise due to increased labor, administrative, and overhead costs; and WHEREAS, through a review of charges for services, the Board of Trustees of the Owasso Public Works Authority has determined that certain Utility Billing User Fees are not adequate to cover the cost of services; and WHEREAS, the Board of Trustees of the Owasso Public Works Authority wishes to establish additional fees for certain Utility Billing services which result in additional labor, administrative, and overhead costs, in order to address rising costs and ensure the provision of these services in the future; NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC WORKS AUTHORITY that the following charges be assessed to those users of services provided by the City of Owasso Utility Billing Department, effective October 1, 2010: That utility service fees shall be as follows: ➢ Initial re -read deemed to be accurate $15.00 ➢ Initial re -read deemed to be inaccurate No Fee ➢ Meter lock /pull- $50.00 $25 non - refundable fee $25 refundable utility deposit _ ➢ Non - sufficient funds (per item) $25.00 ➢ Service initiation non - refundable fee $10.00 ➢ Utility deposit - Single family residence - owner occupied $50.00 Rental or Commercial property $100.00 APPROVED AND ADOPTED this 21ST day September, 2010 by Board o�f f tees of the Owasso Public Works Authority. Sherry Bishop, MSecretary PMO M ffldw"�-42'0g' �� *• :• -• i - • • WO co CO SEAL, •__ _ :Oz ATTEST: 14HON1P Al . , ... ��ri!!►l1�� Sherry Bishop, MSecretary PMO M ffldw"�-42'0g' �� *• :• -• i - • • OPWA Resolution No. 2010 -08 Page 2 APPROVED AS TO FORM: QW-Aj- Lj- Lom �-- LcjA . Julie Tr At Lombardi, Authority Attorney The City Wit out Limits. ...removing obstacles standing in the way of people celebrating their lives. d Friday, September 24, 2010 Tulsa County Clerk's Office 500 South Denver Tulsa, OK 74103 Re: City Council Resolution No. 2010 -12 OPWA Resolution Nos. 2010 -08 and 2010 -09 Enclosed please find City Council Resolution No. 2010 -12, and OPWA Resolution Nos. 2010 -08 and 2010 -09, submitted to your office for filing. Should you have any questions regarding the enclosures, please do not hesitate to contact me at 918.376.1502. Kian qamas Admi istrative Assistant Office of the City Manager City of Owasso, Oklahoma 111 N. Main P.O. Box 180 City of Owasso Owasso, Oklaho a 74055 A City of Character (918) 376 -1500 FAX (918) 376 -1551 www.cityofowasso.com 1 94� The City Wit out Limits. TO: The Honorable Chair and Trustees Owasso Public Works Authority FROM: Angela Hess Finance Director SUBJECT: Utility Service Fees Resolution No, 2010 -08 DATE: September 17, 2010 BACKGROUND: City Staff is engaged in an analysis of existing rates and fees. Central to this process is a comparison of current rates and fees with those of surrounding cities. A number of the services provided by the City are supported by rates and /or fees. In some cases, these rates and fees have been implemented over the years to offset a portion of the costs of delivering those services and in some cases to provide additional funding to increase the flexibility and availability of services to our citizens. In other instances the City has never passed on costs for the delivery of the service. In comparison, other municipalities have implemented fees for services such as administrative fees, reconnect fees, and re -read fees. The City is below market when compared to other municipalities in the amount charged for utility deposits, cost of establishing service, overhead costs for servicing delinquent accounts, and addressing customer requests for re -reads of individual meters. Meter Re -Read - Resolution No. 87 -05 authorizes the collection of a fee in the amount of $5 for each instance wherein a water customer requests their meter be re -read for the purpose of validating an initial reading. The resolution provides that no charge shall be levied in the event the read was in error. The City has not typically charged the $5 fee for requests to re -read a customer's meter; therefore associated costs with dispatching a Public Works employee to a customer's residence to re -read meters are being absorbed by the City. With this in mind, City staff is proposing an increase in the current fee for re -reads from $5 to $15, for re -reads that are deemed to be correct upon a second read being completed by a Public Works employee, Meter Lock /Pull - The City currently experiences approximately 75 cut -offs per month for non - payment on utility accounts, In the event that a resident's service is disconnected due to non - payment, the City currently assesses a charge of $25 in the form of a default payment fee. However, the City does not assess a charge to the citizen when a meter is locked or pulled, Public Works employees are required to lock or pull the meter once the account has been cut off for non - payment. Subsequently the Public Works employee is dispatched to reinstall or unlock the meter once the account has been brought current. This process is time consuming and costs the City in time and labor. In order to cover the cost of administrative services and employee labor, staff is proposing the establishment of a $50 fee to be applied to accounts where a meter is required to be locked or pulled as a result of non - payment on a utility account, The fee would be split and applied as an additional $25 refundable deposit to the customer account and a $25 non - refundable fee to cover the associated costs incurred as a result of dispatching a Public Works employee to lock or pull the meter. The increased $25 refundable deposit would provide additional security against future non - payment of accounts, thus helping to insure the City against repeatedly delinquent accounts. Non - sufficient Funds - Non - sufficient Fund (NSF) charges currently applied to a customer's account total $15 per item returned. This fee is significantly less than that charged by most municipalities and retailers. The average NSF fee typically ranges from $20 to $40 per returned check. Staff is proposing increasing the current NSF fee from $15 to $25. Service Initiation - Non - Refundable Service fees are characteristically charged by most municipalities. This fee is charged when establishing new service, transferring service, or making changes of any kind to a customer account. These fees typically range from $10 to $25 for each account being established or transferred. The City of Owasso does not currently charge a fee for new service or for transfers outside the required $50 deposit. Staff is proposing the establishment of a non- refundable Service Initiation Fee of $10, to be charged when establishing or transferring service from one residence to another. Utility Deposit - In November of 1987 Trustees of the Owasso Public Works Authority, by virtue of Resolution No. 87 -05, established a requirement for a deposit in the sum of $50 prior to the initiation of any utility services from the Authority. Utility deposits have not been increased since that time. According to staff's research, cities throughout the area charge significantly higher deposits which vary according to the customer's credit history and whether it is a residential, rental, or commercial property. Staff is proposing an increase in utility deposits for rental and commercial properties from $50 to $100. Deposits for residential properties would remain at $50. RESOLUTION: OPWA Resolution No. 2010 -08 adopts and establishes additional fees for certain Utility Billing services which result in additional labor, administrative, and overhead costs, in order to address rising costs and ensure the provision of these services in the future. The following charges will be assessed to those users of services provided by the City of Owasso Utility Billing Department, effective October 1, 2010, The following table outlines the changes for each fee; Fee Description Current Fee Proposed Fee Meter Re -Reads $5.00 $15.00 Meter Lock /Pull $0.00 $50.00 ($25 Non Refundable -$25 Additional Deposit) NSF Fee $15.00 $25.00 Service Initiation $0.00 $10.00 Utility Deposit $50.00 $100 (Commercial and Rental Properties) RECOMMENDATION: Staff recommends Trustee approval of OPWA Resolution No. 2010 -08, adopting utility service fees to be charged for utility services provided by the OPWA, and establishing an effective date. Attachment: A. OPWA Resolution No. 2010 -08