HomeMy WebLinkAbout654_Approving Water RatesDoc# 00102467859/22 -1222
Receipt # 455 09 /25/00 132304
Fee 8.00 A000467455005A
ORDINANCE NUMBER 654
CITY OF OWASSO, OKLAHOMA
AN ORDINANCE ADOPTING AND APPROVING THE WATER
RATES AS SET BY THE OWASSO PUBLIC WORKS
AUTHORITY PURSUANT TO RESOLUTION #2000 -06 OF SAID
BODY; AND AMENDING PART 17-- UTILITIES, CHAPTER 1
WATER, SEWER AND SANITATION SYSTEMS, SECTION 17-
109- -WATER RATES; AND ESTABLISHING AN EFFECTIVE
DATE AND DIRECTING CODIFICATION.
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 it
beneficiary, are hereby adopted, approved and directed to be implemented in accordance with
Resolution #2000-06 of the Owasso Public Works Authority dated September 5, 2000.
SECTION TWO: The provisions of the City of Owasso Code of Ordinances, referenced
as Part 17, Utilities, Chapter 1 Water, Sewer and Sanitation Systems, Section 17-109 Water
Rates shall be amended as follows:
Section 17 -109 WATERRATES
A. There hereby are established the following uniform rates for the volume of
water delivered during each calendar month at each connection to the water
system serving one household or business located within the corporate limits of
the City, as shown by the water meter at such connection; provided that,
regardless of amount of water metered, the monthly charge for water for each
connection shall not be less than the "minimum charge" set forth:
WATER RATES (MONTHLY)
1. First 1000 gallons $7.50 (minimum charge); and,
2. Each additional 1000 gallons $3.20
B. There are hereby established the following uniform rates for the volume of
water delivered during each calendar month at each connection to the water
system serving one household or business, located outside the corporate limits of
the City, as shown by the water meter as such connection; provided that,
3 regardless of the amount of water metered, the monthly charge for each such
connection shall not be less than the "minimum charge" set forth:
WATER RATES (MONTHLY)
1. First 1000 gallons $9.00 (minimum charge); and,
2. Each additional 1000 gallons $3.84
City
AS TO FORM:
this 5th' day of September, 2000.
D Cates, City Attorney
CITY OF OWASSO, OKLAHOMA
By:
H C Williams, Mayor
September 14th 2000
Subscribed and sworn to before me this i
Public Oklahoma
My Commission expires: P4
PUBLISHER'S FEE $ 8 9. 10
Published in the Owasso
Reporter, Owasso, Tulsa
County, Oklahoma, Septem-
ber 14, 2000.
ORDINANCE NUMBER
654 CITY OF OWASSO,
OKLAHOMA
AN ORDINANCE ADOPTING
AND APPROVING THE WATER
RATES AS SET BY THE OWAS-
SO PUBLIC WORKS AUTHORI-
TY PURSUANT TO RESOLU-
TION #2000 -06 OF SAID BODY;
AND AMENDING PART 17
UTILITIES, CHAPTER 1
WATER, SEWER AND SANITA-
TION SYSTEMS, SECTION 17-
109 —WATER RATES; AND
ESTABLISHING AN EFFECTIVE
DATE AND DIRECTING COD€ -
FICATION.
BE IT ORDAINED BY THE CITY
COUNCIL OF THE CITY OF
OWASSO, OKLAHOMA THAT:
SECTION ONE: The water rates
hereinafter set forth as estab-
I,shed by the Owasso Public
Works Authority, an Oklahoma
Public Trust having the City of
Owasso, Oklahoma as it benefi-
ciary, are hereby adopted,
approved and directed to be
implemented in accordance with
Resolution #2000 -06 of the
Owasso Public Works Authority
dated September 5, 2000,
SECTION TWO: The provisions
of the City of Owasso Code of
Ordinances, referenced as Part
17, Utilities, Chapter 1 Water,
Sewer and Sanitation Systems,
Section 17 -109 Water Rates
shall be amended as follows:
Section 17 -109
WATER RATES
A. There hereby are established
the following uniform rates for
the volume of water delivered
during each calendar month at
each connection to the water
system serving one household
or business located within the
corporate limits of the City, as
shown by the water meter at
such connection; provided that,
regardless of amount of water
metered, the monthly charge for
water for each connection shall
not be less than the "minimum
charge, set forth:
WATER RATES (MONTHLY)
1. First 1000 gallons $7.50 (mini-
mum charge); and,
2. Each additional 1000 gallons
$3.20
B. There are hereby established
the following uniform rates for
the volume of water delivered
during each calendar month at
each connection to the water
system serving one household
or business, located outside the
corporate limits of the City, as
shown by the water meter as
such connection; provided that,
regardless of the amount of
water metered, the monthly
charge for each such connection
shall not be less than the "mini-
mum charge" set forth:
WATER RATES (MONTHLY)
1. First 1000 gallons $9.00 (mini-
mum charge); and,
2. Each additional 1000 gallons
$3.84
PASSED AND APPROVED this
5th day of September, 2000.
CITY OF OWASSO
/s/ H.C. Williams
H. C. Williams, Mayor
ATTEST:
/s/ Marcia Boutwell
Marcia Boutwell, City Clerk
APPROVED AS TO FORM:
/s/ Ronald D Cates
Ronald D. Cates, City Attorney
MEMORANDUM
TO: CHAIR AND TRUSTEES
OWASSO PUBLIC WORKS AUTHORITY
FROM: SHERRY BISHOP
FINANCE DIRECTOR
SUBJECT: WATER RATE INCREASE
DATE: September 1, 2000
The fiscal year 2000 -2001 budget anticipated a City of Tulsa water rate increase of 14 cents per
thousand gallons. The City of Owasso has been notified of water rate changes to be effective
October 1, 2000. The rate charged to the City of Owasso, as a master meter customer will
increase from $1.72 to $1.86 per thousand gallons of water. Rates from the City of Tulsa
increased in 1995 and again in 1996, but have not increased since then. In 1996, Tulsa announced
a five -year plan to upgrade facilities and fund capital projects with anticipated rate increases.
Those rate increases are based on a 1989 study that established a "cost of services" method of
setting rates for different classes of customers.
Since 1988, City of Owasso customers have seen equivalent rate increases passed on after Tulsa
rate increases. In 1992, the Owasso Public Works Authority established an OPWA Capital
Improvements Fund to finance water and sewer projects with earmarked rate increases. There
have been no rate changes to fund increased operating costs for providing water services during
the past twelve years.
Montgomery Watson, consultant engineer, has provided the City Council and staff with a
preliminary update of the Water Master Plan. Tentatively identified capital improvements needed
to alleviate existing water system capacity problems are estimated to cost nearly $2,000,000.
Based on increased operating costs and additional capital improvement needs, staff proposes that
water rates be increased more than the 14 cent increase from the City of Tulsa. The proposed new
rate would change the base minimum fee for 1000 gallons of water from $7.30 to $7.50, an
increase of twenty cents. The volume charge per 1000 gallons of water would change from $2.92
to $3.20, an increase of 28 cents. The cities of Jenks, Bixby, Sapulpa, and Glenpool, all of whom
buy water from Tulsa, have similar water rates.
The adjusted water rates would generate approximately $106,000 in new water revenue. The new
dollars would be used to pay for higher maintenance and operation costs associated with an
expanding, as well as aging, water distribution system. Additional revenues would be required to
service any debt payment obligation incurred as a result of the issuance of revenue bonds for
capital improvements.
RURAL RATE CUSTOMERS:
In April of 1999, the City Council and the OPWA Trustees reduced water rates to customers
residing outside the Owasso city limits and established those rates at 20% more than the rate inside
the city. The current proposal would maintain that 20% difference. The proposed new rate would
change the base minimum fee for 1000 gallons of water from $8.75 to $9.00, an increase of 25
cents. The volume charge per 1000 gallons of water would change from $3.50 to $3.84, an
increase of 34 cents.
CUSTOMER IMPACT:
The cost of the proposed rate increase to the average customer who uses 7000 gallons of water per
month is $1.88. The annual increase would be $22.56. The total bill from the City to an average
customer for water, wastewater, refuse and ambulance would increase from $45.85 to 47.73 per
month. The attached graph shows the change in the total utility bill for low, average, and high
water usage customers. The cities of Jenks, Bixby, Sapulpa, and Glenpool, all of whom buy water
from Tulsa, have similar water rates.
RECOMMENDATION:
Staff recommends Trustee adoption of Resolution #2000 -06 increasing water rates.
ATTACHMENTS:
Resolution #2000 -06
Graph
Utility Bill Comparison
$80
$70
$60
$68.35
$50
$47.73
$40
$30
$20
$10
$0
Low Usage: Avg Usage: High Usage:
3,000 gals. water 7,000 gals. water 12,000 gals. water
2,000 gals. sewer 5,000 gals. sewer 8,000 gals. sewer
Total monthly bill for city single - family residential customers
Current Rate ❑Proposed Rate
$30.31
Utility Bill Comparison
$80
$70
$47.73
$60
$50
$40
$30
$10
$0
Low Usage:
Avg Usage:
High Usage:
3,000 gals. water
7,000 gals. water
12,000 gals. water
2,000 gals. sewer
5,000 gals. sewer
8,000 gals. sewer
Total monthly bill for city single - family residential customers
E3 Current Rate 0 Proposed Rate
$68.35
$47.73