HomeMy WebLinkAbout675_Ambulance Service Fee IncreaseTulsa County Clerk - EAFLENE WILSON
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Receipt # 533790 08/31/01 15:47:53 15.00
CITY OF OWASSO, OKLAHOMA
ORDINANCE NUMBER 675
AN ORDINANCE RELATING TO PART 13, PUBLIC SAFETY, CHAPTER 2, FIRE
DEPARTMENT, ARTICLE C, AMBULANCE SERVICE, OF THE CODE OF
ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SECTION 13-
236, FUNDING FOR AMBULANCE SERVICE, TO PROVIDE FOR INCREASE
SERVICE FEE AND ALLOCATING USES THEREOF AND DECLARING AN
EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA, THAT, TO-WIT:
Section One: Part 13, Public Safety, Chapter 2, Fire Department, Article C, Ambulance
Service, of the Code of Ordinances of the City of Owasso, Oklahoma, be amended in the
following respects, to-wit:
SECTION 13 -236 FUNDING FOR AMBULANCE SERVICE
A. For areas within the corporate limits of the city receiving water service from the city
or areas within the corporate limits of the city receiving only sanitary sewer service from the city,
a water rate increase or a sewer rate increase, respectively, is established as follows:
1. For every single family residence, whether same is of a permanent nature or
movable manufactured housing, multi - family dwelling, commercial or industrial establishment, as
defined under the zoning code of the city, there is hereby provided an increase in water and/or
sewer rates of Four Dollars ($4.00) per month per residence or establishment above- referenced,
same to be charged and collected on a monthly basis by the Owasso Public Works Authority as in
the case of existing water, sewer and other utility charges; and
2. Citizens within multi - family residential dwellings may, to participate in the
ambulance service provided for herein, subscribe to the ambulance service for a monthly fee of
Four Dollars ($4.00), such payable not less than biannually. Those citizens residing within such
multi - family residential dwellings, not subscribing to the ambulance service provided for herein,
shall be charged for emergency or non - emergency medical service based on the existing fee
schedule therefore.
3. For areas outside corporate limits a subscription fee is established. Any person
residing within the service area above designated, desirous of subscribing to the ambulance
service for the benefit of the person or the person's household members, whether same be
temporary or permanent, may do so upon the payment of a subscription fee of Six Dollars ($6.00)
per month, if such person is connected to the Owasso water and/or sewer system, or Seven -
Two Dollars ($72.00) per year if such person is not connected to the water and/or sewer system.
SECTION 13 -237 ESTABLISHMENT OF FUNDS, UTILIZATION OF REVENUES.
A. There is hereby established, under the provision of the Municipal Budget Act,
Sections 17 -201 et seq. of title 11 of the Oklahoma Statutes, an enterprise fund, such to be
separate and apart from any departmental account within the general funds of the city, and
denoted as the Owasso Ambulance Service Fund. Thirty -Seven and 5/10 percent (37.5 `/`l of all
monies received for the benefit of the ambulance service herein created resulting from the
increased water and/or sewer rate herein charged for subscription fees and Eighty -five ep rcent
(85%) of all service fees, donations, or grants, shall be placed to the Owasso Ambulance Service
Fund to be utilized solely for ambulance service equipment or facility acquisition or improvement,
education, public relations, ambulance service personnel salaries, or other special uses related to
the ambulance service as recommended by the City manager and approved by resolution of the
city council.
B. Forty -Seven and 5/10 percent (47.5 %) of all monies received for the benefit of the
ambulance service resulting from the increased water and/or sewer rate herein charged.
subscription fees shall be placed in a fire capital fund and utilized for fire denartment apparatus,
equipment facility acquisition. or improvements or repair to any of the foregoing
In addition to the foregoing there is hereby created pursuant to the provisions of
the Municipal Budget Act, Section 17 -201 of Title 11 of the Oklahoma Statutes, a capital
improvement fund, such to be separate and apart from any other existing capital improvement
fund with the city, and denoted as the Owasso Ambulance Service Capital Improvement Fund.
Fifteen percent (15 %) of all monies received for the benefit of the ambulance service herein
created, whether resulting from the increased water and/or sewer rate herein charged, subscription
ees, service fees, donations, or grants, shall be placed to the Owasso Ambulance Service Capital
Improvement Fund to be utilized solely for improvement related to equipment and facilities of the
ambulance service; provided, however, if no expenditures are made from the fund with a period of
five (5) years from the date of initial deposit therein, then, in such event, no additional
accumulation therein shall occur and such percentage amount, subsequently received, shall be paid
into the Enterprise Fund, above created, for use for the purposes set forth in the Enterprise Fund.
SECTION 13 -238 FEE DIMINUTION
A. Any person residing within the service area above referenced and connected to the
Owasso water or sanitary sewer system, whether such connection is pursuant to single family
residence or multifamily residential dwellings as herein provided, over the age of sixty -five (65)
years, or living below the national poverty level as determined by the United States Government,
may, upon proper application therefore, receive diminution in the rate increase or subscription fee
provided for herein in an amount of Two Dollars ($2.00) per month per household.
B. The application shall be on forms as provided by the office of the city manager of
city, and shall be considered by the city manager of the city or his designee.
C. In the event a rate diminution is sought and refused by the office of the city
manager of the city, the applicant may appeal the decision by filing a written notice of appeal with
the clerk of the city within ten (10) days from the date of denial, whereupon, same shall be
considered by the city council of the city. (Ord. No. 373, 8/4/87)
Section Two: The provisions of this ordinance shall become effective thirty (30) days
from the date of first publication as provided by state law.
APPROVED this 15th day of May 2001.
CITY OF OWASSO, OKLAHOMA
OF OFFICIAL
SEAL APPROVED AS TO FORM:
Ronald D. Cates, City Attorney
Mary Lou Barnhouse, Mayor
Affidavit Of Publication
OWASSO a,
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:
Subscribed and sworn to before me this 25th
Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma, May
24, 2001.
CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 675
AN ORDINANCE RELATING TO PART 13, PUBLIC SAFETY, CHAPTER 2,
FIRE DEPARTMENT, ARTICLE C, AMBULANCE SERVICE, OF THE CODE
OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING
SECTION 13 -236, FUNDING FOR AMBULANCE SERVICE, TO PROVIDE
FOR INCREASE SERVICE FEE AND ALLOCATING USES THEREOF AND
DECLARING AN
EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OWASSO,
OKLAHOMA, THAT, TO -WIT:
Section One: Part 13, Public Safety, Chapter 2, Fire Depart-
ment, Article C, Ambulance Service, of the Code of Ordinances of the City
of Owasso, Oklahoma, be amended in the following respects, to -wit:
SECTION 13 -236 FUNDING FOR AMBULANCE SERVICE
A. For areas within the corporate limits of the city receiving
water service from the city or areas within the corporate limits of the city
receiving only sanitary sewer service from the city, a water rate increase or a
sewer rate increase respectively is established as follows:
1 For every single family residence, whether same is of a per-
manent nature or movable manufactured housing, multi- family dwelling,
commercial or industrial establishment, as defined under the zoning code of
the. city„ there is hereby provided an increase in water and /or sewer rates of
Four Dollars ($4.00) per month per residence or establishment above- refer-
enced, same to be charged and collected on a monthly basis by, the Owas-
so Public Works Authority as in the case of existing water, sewer and other.
utility charges and
2. Citizens within multi - family residential dwellings may, to par-
ticipate in the ambulance service provided for herein, subscribe to the
ambulance service for a monthly fee of Four Dollars ($4.00), such payable
hot less than biannually. Those citizens residing within such multi- family res-
idential dwellings, not subscribing to the ambulance service provided for
herein, shall be charged for emergency or non - emergency medical service
based on the existing fee schedule therefore.
3. For areas outside corporate limits a subscription fee is
established. Any person residing within the service area above designated,
desirous. of subscribing to the ambulance service for the benefit of the per-
son or the per son's household members, whether same be temporary or
permanent, may do so upon the payment of a subscription fee of Six Dol-
lars ($6.00) per month if such person is connected to the Owasso water
and /or sewer system or Seventy Two Dollars ($72.00) per year if such per-
son is not connected to the water and /or sewer system.
SECTION 13 -237 ESTABLISHMENT OF FUNDS, UTILIZATION OF
REVENUES,
A. There is hereby established, under the provision of. the
Municipal Budget Act, Sections 17 -201 et seq. of title 11 of the Oklahoma
Statutes, an enterprise fund, such to be separate and apart from any depart-
mental, account within, the general funds of the city, and denoted as the
Owasso Ambulance Service Fund. Thirty -Seven and 5/10 percent (37.5 %)
of all monies received for the benefit of the ambulance service herein creat-
ed resulting from the increased water and /or sewer rate herein charged for
subscription fees and Eighty -five percent (85 %) of all. service fees, dona-
tions, or grants, shall be placed to the Owasso Ambulance Service Fund to
be utilized solely for ambulance service equipment or facility acquisition or
improvement, education, public relations, ambulance service personnel
salaries, or other special uses related to .the ambulance, service as recom-
mended by the City manager and approved by resolution of the city council.
B. Forty -Seven and 5/10 percent (47.5 %) of ali- monies
received for the benefit of the ambulance service resulting from the
increased water and I /or sewer rate herein charged subscription fees, shall
be placed in a fire capital fund and utilized for fire department apparatus,
equipment, facility acquisition, or improvements or repair to any of the fore-
going
C. In addition to the foregoing there is hereby created pursuant
to the provisions of the Municipal Budget Act, Section 17 -201 of Title 11 of
the Oklahoma Statutes, a capital improvement fund, such to be separate
and apart from any other existing capital improvement fund with the city, and
denoted as the Owasso Ambulance Service Capital Improvement Fund. Fif-
teen percent (1S %) of all monies received for the benefit of the ambulance
service herein created, whether resulting from the increased water and /or
sewer rate herein charged, subscription fees, service fees, donations, or
grants, shall be placed to the Owasso Ambulance Service Capital improve-
ment Fund to be utilized solely for improvement related to equipment and
facilities of the ambulance service; provided, however, if no expenditures are
made from the fund with a period of five (5) years from the date of initial
deposit therein, then, in such event, no additional accumulation therein shall
occur and such percentage amount, subsequently received, shall be paid
into the. Enterprise Fund, above created, for. use for the purposes set forth
in the Enterprise Fund.
SECTION 13 -238 FEE- DIMINUTION
A. Any person residing within the service area above refer-
enced and connected to the Owasso water or sanitary sewer system,
whether such connection is pursuant to single family residence or multifami-
ly residential dwellings as herein provided, over the age of sixty -five (65)
years, or living below the national poverty level as determined by the United
States Government, may, upon proper application therefore, receive diminu-
tion in the rate increase or subscription fee provided for herein in an amount
of Two Dollars ($2.00) per month per household.
B. The application shall be on forms as provided by the office
of the city manager of city, and shall be considered by the city manager of
the city or his designee.
C. In the event a rate diminution is sought and refused by the
office of the city manager of the city, the applicant play appeal the decision
by filing a written notice of appeal with the clerk of the city within ten (10)
days from the date of denial, whereupon, same shall be considered by the
city council of the city. (Ord. No. 373, 8/4/87)
Section Two: The provisions of this ordinance shall become
effective thirty (30) days from the date of first publication as provided by
state law.
APPROVED this 15th 4 day of May 2001.
City of Owasso, Oklahoma
/s/ MARY LOU BARNHOUSE
SEAL Mary Lou Barnhouse, Mayor
ATTEST:
/s/ MARCIA BOUTWELL
Marcia Boutwell, City Clerk
APPROVED AS TO FORM:
/s/ RONALD D CATES
MEMORANDUM
TO: THE HONORABLE MAYOR AND CITY COUNCIL
CITY OF OWASSO
FROM: ALTERNATE FUNDING SOURCE COMMITTEE
SUBJECT: ALTERNATE FUNDING SOURCE
DATE: April 18, 2001
BACKGROUND
The committee to review alternative funding sources for the fire department met for the
first time on November 5, 1999. The goal of the committee was to review, evaluate and
recommend an altemative funding source for the fire department. The committee
established the following objectives:
Research the available funding sources
Determine the cost increase for an average family
Required enactment method
Amount of revenue generated
Minimum ISO requirements
Equipment and apparatus needs for the next 10 years
Benefits to the city
A survey of surrounding emergency services.
After extensive research was conducted, a report was drafted and presented to the
committee for review on April 9, 2001. The report identified each objective that was
identified in the previous meeting. The current needs of the department were identified
in order to obtain the approximate total funding needed within the next 10 years. These
were to lower the ISO rating, replace the aging fleet of apparatus, construct additional fire
stations, maintain the current level of service and a long term plan for additional
equipment and apparatus.
The findings of the committee were presented to the city council during a workshop. The
presentation included the specifics of each objective. There were five (5) funding sources
identified for Capital Outlay expenses. These included a sales tax increase, revenue
bonds, user fee, direct billing and utility surcharges. The lowest cost per family would be
a utility surcharge at $25.00 per family. To enact the utility surcharge, the Owasso City
Council would approve this type of funding source. This type of funding source would
generate approximately $156,000.00 annually. This would create the necessary revenue
needed to fund the items identified as major needs within the next ten (10) years. The
benefit to the City of Owasso would be in excess of $150,000.00 annually to be returned
back into the city's budget for use on other projects. A comparison of other surrounding
communities was conducted and the City of Owasso's funding sources are typically lower
than other communities.
The committee recommends council approval of ordinance #675
Attachments: Project Proposal
Committee Report
Ordinance 675
MEMORANDUM
TO: J. JEFF HANCOCK, CITY MANAGER
FROM: BOB ALLEN, FIRE CHIEF
SUBJECT: ALTERNATE FUNDING SOURCES
DATE: November 5, 1999
PROJECT PROPOSAL
The project proposal is to review and evaluate all possible funding sources for the fire
department.
Currently, the fire department engines (pumpers) are approaching their life expectancy.
Also, this year our 1974 engine was placed out -of- service, permanently, due to
mechanical and pump problems that were unable to be repaired.
In 1995, we were rated by insurance service organization (I.S.O.) and we received a
rating of six which is too high for a city of our size. The City of Owasso should be rated
no higher than four. However, to obtain that rating capital outlay monies need to be
available. This ISO representative also stated that we now are required to purchase a
ladder truck.
In consideration of the rapid growth, we are experiencing and we feel this trend will
continue for several years. The need for an additional fire station is in the planning
stages now.
The above items and the future needs of the fire department were a high priority of
discussion at our annual retreat. The retreat team recommended that a project proposal
team be established to research alternative funding sources for the fire department.
PROJECT OBJECTIVES
The project team will review, evaluate, and research the following objectives:
a. Research the available funding sources.
b. Determine the cost increase for an average family for each funding source.
c. Determine how each funding source would require to be enacted?
d. How much revenue would each funding source provide?
e. Establish the minimum ISO requirements
Identify the major equipment and apparatus needs for the next 10 years.
g. What benefits, if any, would the entire city receive if the fire department
had an alternate, funding source?
h. Survey the surrounding area fire and ambulance services to determine
what funding sources they have.
APPROACH
The project team has been assembled to conduct research and evaluate to determine the
future needs of capital outlay items and funding source. The project team members will
be assigned specific objectives to ensure a complete and thorough research and
evaluation.
BUDGET
A project budget of $500.00 is projected. This will cover the cost of materials, phone
calls, and printing. All expenditures will be processed through the fire department.
PROJECT MANAGER
Mayor Mark Wilken will serve as project manager.
TEAM MEMBERS
Other members of the project team will include:
Councilor Barnhouse, Kathy Hutchinson, Mike Watson, Financial Director Sherry
Bishop, Fire Chief Bob Allen, Deputy Chief Mark Stuckey and Captain Kris DeMauro
PROPOSED SCHEDULE
The project is scheduled to start on November 17, 1999. A target completion date of
January 18, 1999 is projected
PROJECTED PROJECT TASK
TASK
PROJECT TIME
RESPONSIBLE PERSON
RESOURCES
Research & Evaluation
4 - weeks
Project Team
Phone, Mail,
2
Review & Research
November 18, 1999
Past Reports,
3
Evaluation
December 15, 1999
computers
Draft Proposal
4 - weeks
Project Team
Phone, Mail,
5
Proposal Completed
January 6, 1999
FAX, Printing,
6
Proposal Submitted for Approval 1
Janua 18, 1999
computers
Forward Proposal
2 - weeks
Project Manager
Mail, City Manager
Report
MAJOR MILESTONES
MODE
DESCRIPTION
DUE DATE
RESPONSIBILITY
1
Start
November 17, 1999
Project Team
2
Review & Research
November 18, 1999
Project Team
3
Evaluation
December 15, 1999
Project Team
4
Start Pro bsal Development
December 30, 1999
Project Team
5
Proposal Completed
January 6, 1999
Project Team
6
Proposal Submitted for Approval 1
Janua 18, 1999
Project Team
PROJECT TERMINATION CHECKLIST
The fire chief will manage the project termination. Project termination will be initiated at
various milestones throughout the project. The fire chief will advise the mayor, city
council, and city manager when the project termination checklist is completed.
1: Ensure completion of work at various milestones.
2. Ensure payment of all bills.
3. Release project team.
4. File selected records.
Close the project book, file all records, and present a final report.
ACTION PLAN
The project team will recommend a funding source sufficient to meet the future needs of
the Owasso Fire Department.
ATTERNATIVE FUNDING SOURCE COMMITTEE
APRIL 9, 2001
ALTERNATIVE FUNDING SOURCE COMMITTEE
INTRODUCTION
Analyze alternative funding mechanisms that adequately fund the capital outlay needs of
the Owasso Fire Department.
CURRENT NEEDS OF THE DEPARTMENT
To lower the present ISO (Insurance Service Organization) rating of six (6). Replace an
aging fleet of apparatus with dependable, technologically up -to -date apparatus. Construct
additional fire stations within the department's response area. Maintain the current level
of services for the community. And a long term plan for additional equipment and
apparatus.
NEEDS WITHIN THE NEXT TEN (10) YEARS
Continue the payment plan for the ladder truck at an approximate cost of $300,000.00.
Also, replace the two (2) aging pumpers at a combined cost of $700,000.00. Construct an
additional fire station at a cost of $450,000. Purchase a wildland/rescue apparatus to be
housed at the additional station, this apparatus could cost $150,000.00. Numerous types
of equipment will need to be replaced, for example: SCBA, tools, hoses, nozzles and
Jaws of Life at a cost of approximately $200,000.00. The total funding needs for the next
ten years would be approximately $1,800,000.00.
PROJECT OBJECTIVES
The objectives identified for the committee are the establishment of minimum ISO
regnkementg, rPsearrhina _ -aim a=unding_rinergency. Services — funding_ .sQllrces,anLl._.the._
available types of funding. The amount of revenue generated by the funding source.
Identifying the annual cost per family. How to enact each funding source and the
benefits to the City of Owasso.
AVAILABLE FUNDING SOURCES
We have been able to determine that five (5) funding sources could be enacted for capital
outlay expenses. There is a sales tax increase, revenue bonds, user fee, direct billing, and
utility bill surgharges.
COST PER FAMILY
The lowest average yearly cost per household would be a utility surcharge at $24.00. The
expenditures for the other types are, bond issue $60.00, sales tax increase $80.00, user fee
$150.00 and direct billing $514.00.
ENACTMENT
To enact the utility surcharge, direct billing, and a user fee, the Owasso City Council
would approve these types of funding sources. A vote of citizens would be required to
enact a sales tax increase and bond issue.
PROJECTED GENERATED REVENUE
The bond issue, user fee and direct billing will generate 1.8 million dollars each over a
ten (10) year period. The sales tax increase could generate $1,125,000.00 yearly and a
utility surcharge of $156,000.00 annually.
MINIMUM ISO RATING
For a municipality the size of Owasso, typically an ISO rating of four (4) is awarded to
the community. The alternate funding source committee recommends a rating of four (4)
be established as a goal.
MAJOR NEEDS WITHIN TEN (10) YEARS
The replacement of two aging pumpers will be needed immediately. An additional fire
station will be required, to ensure adequate coverage of the response area. A wild land
vehicle will be needed to be housed within the additional station. Numerous pieces of
equipment will reach its maximum life expectancy within the next ten (10) years and
need to be replaced; SCBA, air bottles, ropes, ladders and hoses.
BENEFIT TO THE CITY
An alternate funding source would return in excess of $150,000.00 annually back into the
city's budget to use on other projects.
SURVEY OF SURROUNDING EMERGENCY SERVICES
In a comparison of six (6) other surrounding communities, the City of Owasso's funding
sources are typically lower. And a higher level of fire and medical services are available
in Owasso.
OPTIONS
Revenue bonds could provide the City of Owasso with the necessary funds for capital
outlay purchases, but would require subsequent bonds for further growth.
A sales tax increase would increase the local tax rate from 7.917% to 8.417 %. The funds
generated would fluctuate with the economy.
A utility bill surcharge is currently funding the cost of Owasso's ambulance service. An
increase of $2.00 per month would generate the needed funds for fire and medical
services.
RECOMMENDATION
The recommendation of a utility bill surcharge of $2.00 per month would provide
$153,000.00 per year and the necessary 1.8 million over a ten (10) year time span.
If the option of $3.00 per month were recommended, it would generate $230,000.00 in
the first year and generate the necessary 1.8 million dollars in seven (7) years.
CONCLUSION
The enacting of a utility bill surcharge for the purpose of generating funds for needed
capital improvements for the fire department would require council action only. This
funding source is the least expensive of the sources reviewed and still capable of
generating needed fund. A utility bill surcharge would not compete with or eliminate
other funding sources for both fire department and city needs.
RECOMMENDATIONS
Option 1
The recommendation of option one, Utility Bill Surcharge of $2.00 per household would
provide $12,750.00 a month and $153,000.00 per year for 6,500 taps.
Surcharge
Year
Monthly
Annually
Accrual
$2.00
1
$12,800.00
$153,600.00
$153,600
2
$13,312.00
$159,744.00
$313,344
3
$13,844.00
$166,134.00
$479,478
4
$14,398.00
$172,779.00
$652,257
5
$14,974.00
$179,690.00
$831,947
6
$15,573.00
$186,878.00
$1,018,825
7
$16,196.00
$194,353.00
$1,213,178
8
$16,843.00
$202,127.00
$1,415,305
9
$17,517.00
$210,212.00
$1,625,517
10
$18,218.00
$218,621.00
$1,844,138
Option 2
The recommendation of option two, Utility Bill Surcharge of $3.00 per household, would
provide $19,200 a month and $230,400 per year for 6,500 taps.
Surcharge
Year
Monthly
Annually
Accrual
$3.00
1
$19,200
$230,400
$230,400
2
$19,698
$239,616
$470,016
3
$20,766
$249,201
$719,217
4
$21,627
$259,169
$978,385
5
$22,461
$269,535
$1,247,921
6
$23,359
$280,317
$1,528,238
7 1
$24,294
$291,530
$1,819,767
8 1
$25,265
$303,191
$2,122,958
9
$26,276
$315,318
$2,438,276
10
$27,327
$327,931
$2,766,207