HomeMy WebLinkAbout608_Approving Water RatesTULSA CUUNIY CLERK - JUAN HASTINGS RCPT 362333 06116199 14:00:05
DOC # 99072121 FEE 10.00 PGS 2 S/P 6230/0507 -0508
ORDINANCE NUMBER 608
CITY OF OWASSO, OKLAHOMA
AN ORDINANCE ADOPTING AND APPROVING THE WATER RATES AS
SET BY THE OWASSO PUBLIC WORKS AUTHORITY; EARMARKING
REVENUES; AND ESTABLISHING AN EFFECTIVE DATE PURSUANT TO
RESOLUTION #99 -01.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA,
THAT:
SECTION ONE: The water rates hereinafter set forth as established by the Owasso Public
Works Authority, an Oklahoma Public Trust having the City of Owasso, Oklahoma as its beneficiary,
are hereby adopted, approved and directed to be implemented in accordance with Resolution #99 -01
of the Owasso Public Works Authority dated April 20, 1999.
PASSED AND APPROVED this 20th day of April, 1999.
W CITY OF OWASSO, OKLAHOMA
By: Denise Bode, Mayor
AS TO FORM: D Cates, City Attorney
RESOLUTION NO. 99-01
THE OWASS O PUBLIC WORKS AUTHORI
A RESOLUTION ADOPTING WATER AND SEWER RATES TO BE
CHARGED BY THE OWASSO PUBLIC WORKS AUTHORITY;
EARMARKING REVENUES; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, The Owasso Public Works Authority (the "Authority") desires to establish the
Collowing rates for the provision of water and sewer service:
WATER RATES (MONTHLY)
Users within corporate limits of City as well as those customers of Rural Water District #3
Rogers County acquired November 1, 1993
1.
2,
1.
2.
First 1,000 gallons $7.30 (minimum charge); and
Each additional 1,000 gallons $2.92
First 1,000 gallons $8.75 (minimum charge); and
Each additional 1,000 gallons $3.50
Water Sewer
Minimum charge per month $1.00 $1.50
Each additional 1000 gallons $.25 $.22
Section One: From and after the effective date of this Resolution (as hereinafter set
forth), the charges by the Authority for water and sewer service shall be adjusted in accordance
with the above referenced recital paragraphs and as specifically codified pursuant to Ordinance
of the City of Owasso, Oklahoma ("the City").
Section Two: The Earmarked revenues (as defined above) shall be segregated and asaif
Earmarked Revenues shall be utilized for the sole purpose (i) funding capital improvement
projects and associated costs of the City or the Authority and/or (ii) paying debt service on
indebtedness pertaining thereto,
Section Three: The utility rates established pursuant to this Resolution shall become
effective for May 1999 as reflected by June 1999 billing.
APPROVED AND ADOPTED this 20th day of April, 1999 by the Trustees of the Owasso public
Works Authority.
Denise Bode, Chairperson
Marcia Boutwell, Trust Secretary
Ronald D. Cates, Trust Attorney
Affidavit Of Publication
OWASSO REPORTER
STATE OF OKLAHOMA, TULSA COUNTY, ss:
Bill R. Retherford, of lawful age, being duly sworn
and authorized, says that he is the publisher of the
Owasso Reporter, a weekly newspaper published in
the City of Owasso, Tulsa County, Oklahoma, a news-
paper qualified to publish legal notices, advertise-
ments and publications as provided in Section 106 of
Title 25, Oklahoma Statutes 1971 and 1983 as
amended, and thereafter, and complies with all other
requirements of the laws of Oklahoma with reference
to legal publications.
That said notice, a true copy of which is attached
hereto, was published in the regular edition of said
newspaper during the period and time of publication
and not in a supplement, on the following dates:
April 29th, 199 9
Subscribed and sworn to before me this
1-1
day of 199
Notary Public
My Commission expires:
PUBLISHER'S FEE 8 56.10
Published in the Owasso Reporter, Owasso, Tulsa County, Okla-
homa, April 29, 1999.
ORDINANCE NO. 608
CITY OF OWASSO, OIUAHOMA
AN ORDINANCE ADOPTING AND APPROVING THE WATER RATES
AS SET BY THE OWASSO PUBLIC WORKS AUTHORITY; EARMARK-
ING REVENUES; AND ESTABLISHING AN EFFECTIVE DATE PUR-
SUANT TO RESOLUTION #99-01
BE IT ORDAINED BY THE CITY COUNCIL OR THE CITY OF OWASSO,
OKLAHOMA, THAT
SECTION ONE: The water rates hereinafter set forth as established by
the Owasso Public Works Authority, an Oklahoma Public Trust having the
City of Owasso, Oklahoma as its beneficiary, are hereby adopted,
approved and directed to be implemented in accordance with Resolution
#99-01 of the Owasso Public Works Authority dated April 20, 1999.
PASSED AND APPROVED this 20th day of April, 1999.
ATTEST
/s/Marcia BoutWell, City Clerk
APPROVED AS TO FORM
/s/ Ronald D. Cates
Ronald D. Cates, City Attorney
CITY OF OWASSO, OKLAHOMA
/s/ Denise Bode
Denise Bode, Mayor
MEMORANDUM
TO: HONORABLE CHAIR AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
HONORABLE MAYOR AND COUNCIL
CITY OF OWASSO
FROM: TIMOTHY D. ROONEY
ASSISTANT CITY MANAGER
SUBJECT: OPWA RESOLUTION NO 99 -01
ORDINANCE NO. 608
WATER RATE DECREASES FOR RURAL CUSTOMERS
DATE: April 15, 1999
BACKGROUND:
In June of 1998, staff was contacted by Mr. Witt, a resident of the Pleasant View addition, regarding the
disparity between water rates charged to customers. Mr. Witt was specifically concerned about the
difference in the rates for customers that resided within the corporate limits of Owasso as opposed to those
that did not. Upon Mr. Witt's presentation to the OPWA, staff was directed to review water rates for those
customers and possible adjustments.
HISTORY:
Historically, the OPWA funded improvements to the water system through the utilization of property taxes.
Because the OPWA could not apply a property tax on property outside of the corporate limits of Owasso,
the city charged a higher usage rate for water. This insured that all users of the water system shared equally
in the expense of the improvements; with the city customers having a lower usage rate and a property tax,
and the rural customers having a higher rate and no property tax.
In 1992, the OPWA began the process of earmarking additional revenues generated by water and sewer
rates to fund capital improvement projects and their associated costs and /or in order to pay debt service
on indebtedness relating to improvements.
In 1993, the OPWA adopted a policy of a "phased in" program to equalize the rate difference between "in
city" and "rural" customers. The program was based on the concept that the city no longer utilizes
property taxes to fund water improvements. At that time, rate increases passed on to the OPWA from the
City of Tulsa were no longer passed on to our rural customers.
The current rate structure has rural customers paying 62.39% more than the "in- city" rate.
PROPOSED RATE CHANGES:
Staff conducted a review of the rates between the two types of customers over the last several months.
While certainly it can be determined that a 62.391/o rate difference between the rural rates and the city rates
is not equitable, it was determined that a modest difference between the two rates should remain in order
to encourage development within the city limits. For instance, if there is no rate difference between rural
and city rates and development can "tap on" to city water and sewer, what encourages a developer to
develop within the city limits? Without at least a slight benefit of a less expensive water rate, there is no
incentive and the city loses all sales tax revenue from infrastructure materials to building materials.
Several different rate scenarios were reviewed and staff is comfortable with a rate difference of 20%
between the "city" customers and the "rural' customers. This represents an approximate 25% reduction
in the current rural rate, and providing the customer uses less than 14,000 gallons of water per month, is
slightly below the rate that Washington County Rural Water District #3 charges its customers. The rate
decrease represents an annual impact to OPWA revenues of nearly $37,738, however the entire customer
base is growing and the impact of $37,738 in 1999 is not what it would have been in 1993 and can be
absorbed.
ADDITIONAL COMMENTS:
Unchanged by this rate decrease are all customers within the city, all those customers of Rural Water
District #3 Rogers County acquired prior to November 1, 1993, and all sewer rates. City ordinance also
provides for a 201/o discount for low- income families who meet established criteria and these discounts
would not be effected by this rate change.
In order to clarify all water and sewer rates charged by the OPWA, all have been included within OPWA
Resolution 99 -01. There is no change in sewer rates.
RECOMMENDATION:
Staff recommends OPWA adoption of Resolution 99 -01, establishing the water and sewer rates for all
customers as set forth within Resolution 99 -01. Staff further recommends Council approval of Ordiannce
No. 608.
ATTACHMENTS:
1. Water Rate Spreadsheet
2. OPWA Resolution 99 -01
3. Ordinance No. 608
Existing Rates
WRWD City Rural (60 %)
Proposed Rural Rates
(stated as percent over city rates)
10% 15% 20%
Proposed Rural Rates
(stated as % reduction from rural rates)
15% 20% 25%
Base (first1000)
15.50
7.30
11.54
8.03
8.40
8.75
9.81
9.23
8.66
per 1000 usage
3.00
2.92
4.68
3.21
3.36
3.50
3.98
3.74
3.51
1000
15.50
7.30
11.54
8.03
8.40
8.75
9.81
9.23
8.66
2000
18.50
10.22
16.22
11.24
11.76
12.25
13.79
12.98
12.17
3000
21.50
13.14
20.90
14.45
15.12
15.75
17.77
16.72
15.68
4000
24.50
16.06
25.58
17.66
18.48
19.25
21.74
20.46
19.19
5000
27.50
18.98
30.26
20.87
21.84
22.75
25.72
24.21
22.70
6000
30.50
21.90
34.94
24.08
25.20
26.25
29.70
27.95
26.21
7000
33.50
24.82
39.62
27.29
28.56
29.75
33.68
31.70
29.72
8000
36.50
27.74
44.30
30.50
31.92
33.25
37.66
35.44
33.23
9000
39.50
30.66
48.98
33.71
_
35.28
36.75
41.63
39.18
36.74
10000
42.50
33.58
53.66
36.92
38.64
40.25
45.61
42.93
40.25
11000
45.50
36.50
58.34
40.13
42.00
43.75
49.59
46.67
43.76
12000
48.50
39.42
63.02
43.34
45.36
47.25
53.57
50.42
47.27
13000
51.50
42.34
67.70
46.55
48.72
50.75
57.55
54.16
50.78
14000
54.50
45.26
72.38
49.76
52.08
54.25
61.52
57.90
54.29
15000
57.50
48.18
77.06
52.97
55.44
57.75
65.50
61.65
57.80
20000
72.50
62.78
100.46
69.02
72.24
75.25
85.39
80.37
75.35
25000
87.50
77.38
123.86
85.07
89.04
92.75
105.28
99.09
92.90
30000
102.50
91.98
147.26
101.12
105.84
110.25
125.17
117.81
110.45
35000
117.50
106.58
170.66
117.17
122.64
127.75
145.06
136.53
128.00
40000
132.50
121.18
194.06
133.22
139.44
145.25
164.95
155.25
145.55
last 12 months
customers 3164 23,097.20
36,512.56
25,406.92
26,577.60
27,685.00
31,035.68
29,210.05
27,384.42
usage over min 24500 71,540.00
114,660.00
78,645.00
82,320.00
85,750.00
97,461.00
91,728.00
85,995.00
94,637.20
151,172.56
104,051.92
108,897.60
113,435.00
128,496.68
120,938.05
113,379.42
(151,172.56)
(151,172.56)
(151,172.56)
(151,172.56
_(151,172.56)
(151,172.56)
(151,172.56)
(56,535.36)
(47,120.64)
(42,274.96)
(37,737.56)
(22,675.88)
(30,234.51)
(37,793.14)