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Home My WebLink About871_Amend Part 17 Ch 1_Increase Water Rates_Tulsa IncreaseORDINANCE NUMBER 871 CITY OF OWASSO, OKLAHOMA AN ORDINANCE ADOPTING AND APPROVING THE WATER RATES AS SET BY THE OWASSO PUBLIC WORKS AUTHORITY PURSUANT TO RESOLUTION NO. 2006-06 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 its beneficiary, arc herby adopted, approved and directed to be implemented in accordance with Resolution No. 2006 -06 of the Owasso Public Works Authority dated August 15, 2006. 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: Iwo 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 $7.90 (minimum charge); and, 2. Each additional 1000 gallons $3.70 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 "minimum c charge" set forth: WATER RATES (MONTHLY) 1. First 1000 gallons $9.48 (minimum charge); and, 2. Each additional 1000 gallons $4.44 The City of Owasso Code of Ordinances is hereby amended by Part 17 Utilities, Chapter 1, Water, Sewer, and Sanitation Systems, Section 17 -109 Water Rates. SECTION (4) REPEALER All ordinances or parts of ordinances, in conflict with this ordinance are repealed to the extent of the conflict only. SECTION FIVE (5)o SEVERADILITY If any part or parts of this ordinance are held invalid or ineffective, the remaining portion shall not be affected but remain in full force and effect. SECTION SIX (6 h DECLARING AN EFFECTIVE DATE The provisions of this ordinance shall become effective thirty (30) days from the date of final passage as provided by state law. OFFICIAL ATTES Sherry Bishop Ctity Clerk Julie Lombardi, City Attorney APPROVED this 15th day of August, 2006. CITY OF OWASSO, OKLAHOMA Stephen Cataudella, Mayor Published in the Owasso Reporter, Owasso, Tulsa County, Okla homa, August 22, 2006, ORDINANCE NUMBER 871 CITY OF OWASSO, OKLAHOMA AN ORDINANCE ADOPTING AND APPROVING THE WA- TER RATES AS SET BY THE OWASSO PUBLIC WORKS AUTHORITY PURSUANT TO RESOLUTION NO. 2006 -06 OF SAID BODY; AND AMENDING PART 17 UTILITIES, CHAP- TER 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 estab- lished by the Owasso Public Works Authority, An Oklahoma Public Trust having the City of Owasso, Oklahoma as its beneficiary, are herby adopted, approved and directed to be implemented in accor- dance with Resolution No. 2006 -06 of the Owasso Public Works Authority dated August 15, 2006. SECTION TWO: The provisions of the City of Owasso Code of Or- dinances, 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 con- nection to the water system serving one household or business lo- cated 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 $7.90 (minimum charge); and, 2. Each additional 1000 gallons $3.70 B. There are hereby established the following uniform rates for the volume of water delivered during each calendar month at each con- nection to the water system serving one household or business, lo- cated 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 con- nection shall not be less than "minimum ccharge" set forth: WATER RATES (MONTHLY) 1.First 1000 gallons $9.48 (minimum charge); and, 2.Each additional 1000 gallons $4.44 SECTION THREE (3): CODIFICATION The City of Owasso Code of Ordinances is hereby amended by Part 17 Utilities, Chapter 1, Water, Sewer and Sanitation Systems, Section 17 -109 Water Rates. SECTION FOUR (4): REPEALER All ordinances or parts of ordinances, in conflict with this ordinance are repealed to the extent of the conflict only. SECTION FIVE (5): SEVERABILITY If any part or parts of this ordinance are held invalid or ineffective, the remaining portion shall not be affected but remain in full force and effect. SECTION SIX (6): DECLARING AN EFFECTIVE DATE The provisions of this ordinance shall become effective thirty (30) days from the date of final passage as provided by state law. APPROVED this 15th day of August, 2006. CITY OF OWASSO, OKLAHOMA /s/ 49aOhen CataudeIIa Mavar ATTEST: /s/ Sherry Bishop City CIS APPROVED AS TO FORM: /s/JuIIaLombardi City Attorney PUBLICATION DATE(S) 08/22/06 CASE NUMBER: ORD -871 LEGAL NOTICE S'TA'TE OF OKLAHOMA COUNTY OF TULSA SS I, of lawful age, being duly sworn, am a legal representative of Owasso Reporter of Owasso, Oklahoma, a daily newspaper of general circulation in Tulsa,Oklahoma, a newspaper qualified to publish legal notices, advertisements and publications as provided in Section 106 of Title 25, Oklahoma Statutes 1971 and 1982 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 ABOVE LISTED DATE(S) Reprensentative Signature Subscribed to and sworn to me this 23rd day of August 2006. Notary PubliO - I'ATII EN A DRAKE My commission Number: 06000391 Customer: CITE' OF OWASSO /LEGALS Cust No: 00000779 Publisher's Fee: $ 198.00 Notary Public Ok(aticlrna OFFICIAL SEAL KATHIEEN A. ORAK Tuna County COMM 06000391 TO: THE HONORABLE AND CITY COUNCIL CITY OF OWASSO TIM ROONEY ASSISTANT CITY MANAGER WATER RATE ADJUSTMENT DATE: August 10, 2006 The Owasso Public Works Authority (OPWA) received Notice from the City of Tulsa that, effective October 1, 2006, water rates will increase from $1.98 to $2.18 per 1000 gallons. Because the City of Owasso currently purchases treated water from the City of Tulsa, FY 2006- 2007 operating budget included a rate increase to offset the rate increase from Tulsa. The current and proposed fee structure for water and refuse services are presented below. The last water rate increase of $0.15 per 1000 gallons occurred in 2002 to compensate for an increase in Tulsa water rates of $0.12 per 1000 gallons and to facilitate the financing of scheduled capital improvement projects. SERVICE REGULAR RATE RURAL RATE* Current Proposed Current Prop ose VATER Minimum 1,000 gallons $7.65 $7.90 $9.18 $9.48 Each additional 1,000 gallons $3.35 $3.70 $4.02 $4.44 * 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 $30 per first 1000 gallons and $.42 per 1000 gallons thereafter. An information sheet containing both the existing and proposed watcr rate structure and how it would affect single family residential customers is attached for your review. In addition, a comparison analysis of suburban cities is also attached for review. The proposed Resolution No. 2006-05, if approved by the OPWA, will establish rates for water service to become effective with the first utility billing cycle in October 2006. The proposed Ordinance No. 871 establishes unifonri 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 and outside the corporate limits of the City of Owasso. Water and Refuse Rate Adjustment and Study Page 2 of 2 RATE STUDIES The Owasso Public Works Authority adjusts rates and service fees to compensate for increases in maintenance, operating and capital improvement costs. The last rate increase for water service was directly related to the increase in the purchased water rate and anticipated debt service related to proposed improvements. No further analysis for cost of service was performed at that time. To support the long -term financial sustainability of the Utility, it is recommended that comprehensive water, sewer and refuse rate studies be completed to establish a longterm rate structure for the Utility. The objective of the studies would be to compile planning information — provided by the recently completed Master Plan documents — and maintenance and/or replacement replacement requirements of existing infrastructure to assure the longterm financial stability of the Utility at the lowest possible cost to customers. Such studies would be the first of its kind performed by the City of Owasso and expected to be completed by December 2006. To better plan for the future needs of our community, a request to approve a proposed Engineering Services Agreement between the Owasso Public Works Authority and Greeley and Hansen, LLC has been placed on the August 15, 2006 OPWA agenda. This agreement would provide for a methodological water and sewer rate study to be completed. It is further recommended that such work be immediately followed by an in -house rate analysis for refuse collection, which can be completed by City personnel utilizing training and knowledge obtained from the completion of the water and sewer rate study. Following the completion. of such study, it is anticipated that rates will once again need to be adjusted to better align the growing needs of our community with the financial requirements of the Utility. Such adjustment, if necessary, will be proposed for implementation no earlier than October 1, 2007. RECOMMENDATION Staff recommends City Counei_l approval of Ordinance No. 871 increasing rates for water service. ATTACHMENTS: A. Residential water rate change cornpari_son B. Suburban water rate comparison C. Ordinance No. 871 OPWA Rates for 8/10/06 Total Utility Bills Single Family Residential Customers 2,000 gals. sewer 5,000 gals. sewer 8,000 gals. sewer 10,000 gals. sewer 10,000 gals. sewer 3,000 gals. water 7,000 gals. water 12,000 gals. water 20,000 gals. water 35,000 gals. water Low Usage: Avg Usage: Moderate -High Usage: Summer Usage: High Summer Usage: Usage: Water gallons Sewer gallons Current Rate Billing: Water Sewer Refuse Ambulance Stormwater Total Proposed Rate Billing: Water Sewer Refuse Ambulance Stormwater Total $200 $180 $160 $140 3000 7000 12000 20000 35000 2000 5000 8000 10000 10000 14.35 27.75 44.50 71.30 121.55 7.85 14.63 21.41 25.93 25.93 10.00 10.00 10.00 10.00 10.00 4.00 4.00 4.00 4.00 4.00 2.50 2.50 2.50 2.50 2.50 38.70 58.88 82.41 113.73 163.98 15.30 30.10 48.60 78.20 133.70 7.85 14.63 21.41 25.93 25.93 11.00 11.00 11.00 11.00 11.00 4.00 4.00 4.00 4.00 4.00 2.50 2.50 2.50 2.50 2.50 40.65 62.23 87.51 121.63 177.13 $120 $113.73 $121.63 $100 $82.41 $87.51 - $80 $58.88 $62.23 $60 $38.70 $40.65 $40 $20 $0 Low Usage: Avg Usage: Moderate -High Usage: Summer Usage: 3,000 gals. water 7,000 gals. water 12,000 gals. water 20,000 gals. water 2,000 gals. sewer 5,000 gals. sewer 8,000 gals. sewer 10,000 gals. sewer Total monthly bill for city single - family residential customers O Current Rate [] Proposed Ratie $177.13 $163.98 High Summer- Usage: 35,000 gals. water 10,000 gals. sewer Water Rate Comparison Rates Effective October 2006 3,000 gals 7,000 gals 12,000 gals 20,000 gals 35,000 gals Low Usage: Ave Usage: Moderate -High Usage: Summer Usage: High Summer Usage: Bixby 16.16 30.88 49.28 78.72 133.92 Glenpool 26.59 42.81 63.64 95.11 151.81 Jenks 17.76 32.48 51.03 82.23 146.23 Sapulpa 18.63 36.03 57.78 92.58 157.83 Owasso 15.30 30.10 48.60 78.20 133.70