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HomeMy WebLinkAbout983_Sanitary Sewer Rates for RWD CustomersTulsa County Clerk - EARLENE WILSON Doc # 2011030709 Page(s): 4 Recorded 04/08/2011 at 01:44 PM ao Receipt # 266323 Fee $19.00 CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 983 AN ORDINANCE RELATING TO PART 17, UTILITIES, CHAPTER 1, WATER, SEWER AND SANITATION SYSTEMS, SECTION 17-110, SEWER RATES, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SAME BY REMOVING SUB-SECTION (A)(1) WHICH ESTABLISHED AN ASSUMED USAGE OF 7200 GALLONS PER MONTH FOR RESIDENTIAL RURAL WATER DISTRICT CUSTOMERS, AND NOW PROVIDING THAT RURAL WATER DISTRICT CUSTOMERS SHALL BE CHARGED THE SAME RATES UTLIZING THE SAME METHODOLOGIES AS WATER SERVICE CUSTOMERS. THIS ORDINANCE AMENDS PART 17, CHAPTER 1, OF THE CITY OF OWASSO CODE OF ORDINANCES BY AMENDING SECTION 17-110. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO-WIT: SECTION ONE (1): Part Seventeen, Utilities, Chapter One, Water, Sewer and Sanitation Systems, Section 17-110, Sewer Rates, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended as follows: Section 17-110 shall be amended to read as follows: SECTION 17-110 SEWER RATES A. All users of the municipally owned wastewater treatment system shall be charged a minimum of $6.97 per month, plus a charge of $2.55 per 1,000 gallons of wastewater flow effective 10/01/2010. For all single-family users, wastewater flow shall be determined indirectly by measuring the quantity of water received by the user during three (3) winter months as described below. For users other than single-family residential, wastewater flow may be determined by measuring the quantity of water received each month or by the indirect method. In the case of users not on a metered basis, the utility superintendent shall establish an estimated water consumption based on a comparison of the non-metered use with a metered user of a similar class. Example: A non-metered family of four compared to a typical family of four with a water meter to establish water consumption. B. User charge schedule. As the BOD, suspended solids, and other pollutant concentrations discharged shall be approximately equal for all domestic users, users shall be charged on a volume basis in accordance with the following formula: Cu = Cb + (Vu)(K)(Ct/Vt) (Based on Model No. 1, 40 CFR 35, Appendix B) Symbols and-definitions: Cu = A user's charge per unit of time. Cb = A user's base minimum charge (for debt retirement, billing, administration, etc.) per unit of time. Ct = Total operation, maintenance and replace (O, M & R) costs per unit of time. Vt = Total volume contribution from all users per unit of time including extraneous flows. Vu = Volume contribution from a user per unit of time. This value shall be determined indirectly by measuring the quantity of water received by the user. During the year there is increased water consumption due to water used for lawn and garden watering. This water does not contribute to sewer system loading and therefore this water should not be considered as a part of Vu. During the winter months (Dec. - Feb.) the quantity of water used by each user is approximately the same as the quantity of wastewater discharged (lawn and garden watering minimized). An average of these three (3) winter months will give a uniform monthly sewer charge for each user and will only need to be computed once each year. K = Correction factor to include extraneous flows in estimated user contributions. C. Excessive strength charges. For any user, when the BOD exceeds three hundred (300) mg/1, the suspended solids exceeds three hundred (300) mg/l, or when other pollutant concentrations exceed the range of concentrations of these pollutants in normal domestic sewage, a surcharge shall be added to the basic charge. This surcharge shall be calculated by the following formula: Cs = (Bc(B) + Sc(S) + Pc(P) Vu (Based on Model No. 2, 40 CFR 35, Appendix B) Symbols and definitions: Cs = A surcharge for wastewaters of excessive strength. Bc = O&M cost for treatment of a unit of biochemical oxygen demand (BOD). B = Concentration of BOD from a user above 300 mg/1. Sc = O&M for treatment of a unit of suspended solids (SS). 2 S = Concentration of SS from a user above 300 mg/1. Pc = O&M cost for treatment of a unit of any pollutant. P = Concentration of any pollutant from a user above a base level to be determined on case-by-case basis. Vu = Volume contributions from a user per unit of time. D. Toxic pollutant charges. Each user that discharges any toxic pollutants which cause an increase in the cost of managing the effluent or the sludge of the treatment works shall pay for such increased costs. E. Charges for extraneous flows. The costs of operation and maintenance for all flows not directly attributable to users (such as infiltration/inflow) shall be distributed among users on the same basis as operation, maintenance and replacement charges. (See correction factor, K.) F. Users will be billed on a monthly basis with payment due ten (10) days after the date of billing. Users on metered water service will be billed on the same notice as water charges and will be designated as a separate entry. Users of the wastewater system not on metered water service will be billed monthly on an individual notice for wastewater service at the rate established by the city clerk. Users with delinquent accounts of thirty (30) days will be notified in writing by the city clerk that water or wastewater services will be terminated unless the account is paid in full. The city clerk will utilize the law enforcement agency to assist as required in the control and management of the user charge system. G. Each user shall be notified at least annually, in conjunction with the regular bill, of the sewer use rate and the portion of the user charges which are attributable to wastewater treatment services. Costs shall be broken down to show the operation, maintenance and replacement costs attributable to that user. R A financial management system. shall be established and maintained by the city to document compliance with federal regulations pertaining to the user charge ordinance. The system will account for all revenues generated and expenditures for operation, maintenance and replacement. 1. The user charge ordinance shall be reviewed at least annually regarding the wastewater contribution of users and user classes, the total costs of operation, maintenance and replacement of the treatment works, and its approved user charge system. The charges for users or user classes shall be revised to accomplish the following: 1. Maintain the proportionate distribution of operation, maintenance and replacement costs among users and user classes; 2. Generate sufficient revenue to pay the total operation, maintenance and replacement costs necessary to the proper operation, maintenance and replacement of the collection and treatment system; 3. Apply excess revenues collected from a class of users to the costs of operation and maintenance attributable to that class for the next year, and the rates shall be adjusted accordingly; and 4. Apply excess revenues from the operation (land lease, sludge sales, etc.) to the costs of operation, maintenance and replacement for the next year, and the rates shall be adjusted accordingly. SECTION TWO (2): REPEALER All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of the conflict only. SECTION THREE (3): SEVERABILITY If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portion shall not be affected but shall remain in full force and effect. SECTION FOUR (4): 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. SECTION FIVE (5): CODIFICATION This ordinance, as amended, shall be codified in Part 17, Chapter 1, as section 17-110 in the Owasso Code of Ordinances. PASSED by the City Council of the City of Owasso, Oklahoma on the 5th da :of April 2011. g Bone rake, ayor ATTEST, Sherry Bishop, City Clerk APPROVED as to form and legality: Juli ombardi, City Attorney 4 PUBLISHER'S AFFIDAVIT ORD NO. 983 04/14/11 CASE NUMBER: ORD NO. 983 AD NO: 00121978 LEGAL NOTI1 STATE OF OKLAHOMA COUNTY OF Tulsa I, of lawful age, being duly sworn, am a Owasso Reporter of Owasso, Oklahom, of general circulation in Tulsa, Oklahor fled to publish legal notices, advertiseme provided in Section 106 of Title 25, Ol and 1982 as amended, and thereafter, other requirements of the laws of Oklah legal publications. That said notice, a I attached hereto was published in the r newspaper during the period and time of a supplement, on the ABOVE LISTED I Repre entativl Subscribed to and sworn to me this 15th Notary Public 4,9W1 NCY CARO My commission number: 06011684 My commission expires: December 8, 2C Customer 00000779 Customer: CITY OF OWASSO Publisher's Fee: 295.40 NANCY CAROL MOORE NOTARY PUBLIC STATE OF OKLAHOMA COMMISSION NO. 06011684 EXPIRES 12-8-2014 121978 Published in the Owasso Reporter, Owasso, Tulsa County, Oklahoma, April 14, 2011. CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 983 AN ORDINANCE RELATING TO PART 17, UTILITIES, CHAPTER 1, WATER, SEWER AND SANITATION SYSTEMS, SECTION 17- 110, SEWER RATES, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, AMENDING SAME BY REMOVING SUB-SECTION (A)(1) WHICH ESTABLISHED AN ASSUMED USAGE OF 7200 GALLONS PER MONTH FOR RES- IDENTIAL RURAL WATER DISTRICT CUSTOMERS, AND NOW PROVIDING THAT RURAL WATER DISTRICT CUSTOMERS SHALL BE CHARGEDTHE RATES UTILIZING METHODOLOGIES AS WA ERMSERVICE CUSTOMERS E SAME ENDING THIS Y OF OWASO CODE OF ORDINANCES RTBY AM SECTION 17-110. BE IT ORDAINED BYTHE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO-WIT: SECTION ONE (1): Part Seventeen, Utilities, Chapter One, Water, Sewer and Sanitation Systems, Section 17-110, Sewer Rates, of the Code of Ordinances of the City of Owasso, Oklahoma, shall be amended as follows: Section 7 110 sh II be -mended to read a~ follows: SECTION 17-110 SEWER RATES A. All users of the municipally owned wastewater treatment sys- tem shall be charged a minimum of $6.97 per month, plus a charge of $2.55 per 1,000 gallons of wastewater flow effective 10/01/2010. For all single-family users, wastewater flow shall be determined indirectly by measuring the quantity of water received by the user during three (3) winter months as described below. For users other than single-family residential, wastewater flow may be determined by measuring the quantity of water received each month or by the indirect method. In the case of users not on a metered basis, the utility superintendent shall establish an estimated water consump- tion based on a comparison of the non-metered use with a metered user of a similar class. Example: A non-metered family of four com- pared to a typical family of four with a water meter to establish water consumption. B. User charge schedule. As the BOD, suspended solids, and other pollutant concentrations discharged shall be approximately equal for all domestic users, users shall be charged on a volume basis in accordance with the following formula: Cu = Cb + (Vu)(K)(Ct/Vt) (Based on Model No.1, 40 CFR 35, Appendix B) Symbols and definitions: Cu = A user's charge per unit of time. Cb = A user's base minimum charge (for debt retirement, billing, administration, etc.) per unit of time. Ct = Total operation, maintenance and replace (0, M & R) costs per unit of time. Vt = Total volume contribution from all uses per unit of time including extraneous flows. Vu = Volume contribution from a user per unit of time. This value shall be determined indirectly by measuring the quantity of water received by the user. During the year there is increased water consumption due to water used for lawn and garden watering. This water does not contribute to sewer system loading and therefore this water should not be considered as a part of Vu. During the winter months (Dec. Feb.) the quantity of water used by each user is approximately the same as the quantity of wastewater dis- charged (lawn and garden watering minimized). An aver- age of these three (3) winter months will give a uniform monthly sewer charge for each user and will only need to be computed once each year. K = Correction factor to include extraneous flows in estimated user contributions. C. Excessive strength charges. For any user, when the BO exceeds three hundred (300) mg/l, the suspended solids exceeds three hundred (300) mg/I, or when other pollutant concentrations exceed the range of concentrations of these pollutants in norma domestic sewage, a surcharge shall be added to the basic charge This surcharge shall be calculated by the following formula: Cs = (Bc(B) + Sc(S) + Pc(P) Vu (Based on Model No. 2, 40 CFR 35, Appendix B) Symbols and definitions: Cs = A surcharge for wastewaters of excessive strength. Bc = O&M cost for treatment of a unit of biochemical oxygei demand (BOD). B = Concentration of BOD from a user above 300 mg/I. Sc = O&M for treatment of a unit of suspended solids (SS). S = Concentration of SS from a user above 300 mg/I. Pc = 0&M cost for treatment of a unit of any pollutant. P = Concentration of any pollutant from a user above a base level to be determined on case-by-case basis. Vu = Volume contributions from a user per unit of time. D. Toxic pollutant charges. Each user that discharges any toxic pollutants which cause an increase in the cost of managing the effluent or the sludge of the treatment works shall pay for such increased costs. E. Charges for extraneous flows. The costs of operation and maintenance for all flows not directly attributable to users (such as infiltration/inflow) shall be distributed among users on the same basis as operation, maintenance and replacement charges. (See correction factor, K.) F. Uses will be billed on a monthly basis with payment due ten (10) days after the date of billing. Users on metered water service will be billed on the same notice as water charges and will be des- ignated as a separate entry. Uses of the wastewater system not on metered water service will be billed monthly on an individual notice for wastewater service at the rate established by the city clerk. Users with delinquent accounts of thirty (30) days will be notified in writing by the city clerk that water or wastewater services will be ter- minated unless the account is paid in full. The city clerk will utilize the law enforcement agency to assist as required in the control and management of the user charge system. G. Each user shall be notified at least annually, in conjunction with the regular bill, of the sewer use rate and the portion of the user charges which are attributable to wastewater treatment services. Costs shall be broken down to show the operation, maintenance and replacement costs attributable to that user. H. A financial management system shall be established and maintained by the city to document compliance with federal regula- tions for all pertto the user charge aining generated and expenditures for operation, maintenance and replacement. 1. The user charge ordinance shall be reviewed at least annually regarding the wastewater contribution of users and user classes, the total costs of operation, maintenance and replacement of the treatment works, and its charges for ses or user classes shall be revised charge to accomplish the following: 1. Maintain the proportionate distribution of operation, maintenance and replacement costs among users and user class- es; 2. Generate sufficient revenue to pay the total oper- ation, maintenance and replacement costs necessary to the proper operation, maintenance and replacement of the collection and treat- ment system; 3. Apply excess revenues collected from a class of uses to the costs of operation and maintenance attributable to that class for the next year, and the rates shall be adjusted accordingly; and 4. Apply excess revenues from the operation (land leasludge se, sales, the next year, and the orates shall be maintenance etc.) to the costs of and re adjusted accordingly. SECTION TWO (2): REPEALER All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed to the extent of the conflict only. SECTION THREE (3): SEVERABILITY If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portion shall not be affected but shall remain in full force and effect. SECTION FOUR (4): DECLARING AN EFFECTIVE DATE The provisions of this ordinance shall become effective thirty (30) D days from the date of final passage as provided by state law. s SECTION FIVE (5): CODIFICATION This ordinance, as amended, shall be codified in Part 17, Chapter 1, as section 17-110 in the Owasso Code of Ordinances. PASSED AND APPROVED this 5th day of April, 2011 /s/ Doug Bonebake, Mayor ATTEST: /s/ Sherry Bishop, City Clerk APPROVED AS TO FORM: /s/ Julie Lombardi, City Attorney The City Wit lout Limits. TO: Honorable Mayor and City Council FROM: John W. Feary Project Administrator, Owasso Public Works SUBJECT: City of Owasso Ordinance No. 983 Sanitary Sewer Rates for RWD Customers DATE: April 1, 2011 BACKGROUND: APPR'0M BY COUNCX APR 05 mi Since 1999, the City of Owasso, Rogers County Rural Water District #3 and Washington County Rural Water District #3 (RWD) have benefitted from a collaborative effort regarding the billing of City of Owasso sanitary sewer customers whose water service is provided by either of the above- mentioned districts. Currently, Rogers and Washington County Rural Water Districts' residential customers that are on the Owasso Public Works Authority sanitary sewer system are billed for 7,200 gallons of sewer usage per month. This usage figure was determined by studying national statistical averages. Additionally, it was determined by the Owasso Community Development Department that the average single family residential household size within the city limits is 2.94 persons. Based on this information the average Owasso single family residential household water usage would typically be between 7,056 and 8,820 gallons per month. As stated above, all OPWA-RWD residential customers are billed for sewer charges on water usage of 7,200 gallons per month. This amount is considered to be on the low end of the range of normal usage for an average single family residential household of 2.94 persons. However, for a household of one or two persons, 7,200 gallons could be considered high usage and for a household of four or more, 7,200 gallons would be considered a low usage. Current OPWA customers who are supplied water by the OPWA pay sewer rates based on their average winter water usage from actual meter readings from December through February. In the original agreement with the RWD, the City of Owasso agreed to pay a 10% billing and collection fee to both water districts. This fee is calculated based on the full amount collected by the RWD for Sewer, Refuse, Stormwater and Ambulance each month. The RWD withholds their 10io from the monthly remittance to the City of Owasso. Periodically, RWD customers have expressed concerns regarding the sewer consumption rate for single family residential households. Over the past several months, the City of Owasso has invested many hours of research and discussion to find a solution that will allow for fair and equitable billing for all Owasso citizens. Through a series of meetings and the collaborative efforts of the City of Owasso and the Rural Water Districts, changes have been proposed that provide for all Owasso citizens, regardless of water service provider, to be billed based on an average of actual consumption rates for the months of December, January, and February. PROPOSED ACTION: City of Owasso staff, along with Washington County and Rogers County Rural Water District personnel, has developed a proposal to revise the current billing policies. These changes will provide for fair, equitable, and accurate billing of our joint customers. The following proposal is a viable means by which RWD customers using the OPWA sanitary sewer collection system will be billed in accordance with existing billing procedures for OPWA water customers. The concept of the original sanitary sewer policy was to charge all RWD customers 7,200 gallons per month of sewer usage regardless of their actual water usage. The significant change in the revised sanitary sewer billing policy will be the elimination of the assumption that the water usage by OPWA-RWD customers is 7,200 gallons per month. With the advancement in technology and the ease of data sharing capabilities, personnel from both entities agree that meter reads from each single family residential customer in December, January, and February can be used to determine average monthly sanitary sewer charges for that particular year. While this average could and will change annually, the logistical process required is minimal. Representatives from the City of Owasso have met with both Rural Water Districts and their respective Information Technology Programmer to discuss the processes required for billing, and all parties are confident that this process can be accomplished with minimal programming changes. The method of compensation for billing and collection services to Rogers Rural Water District #3 and Washington Rural Water District #3 will not change. The 10% fee for services already in place will now be applied to a more accurate monthly average. The Owasso City Attorney has reviewed the original agreement between the Owasso Public Works Authority and both water districts and has determined that it will not be necessary for the agreement to be revised. Pending approval by the Owasso Public Works Authority Trustees and the Owasso City Council, staff anticipates implementing the new sanitary sewer billing policy to become effective on or before July 1, 2011 (the start of the city's next fiscal year). This start date will allow both entities to study and prepare for how these changes might affect the upcoming budget cycle. The current method of billing RWD customers at the 7,200 gallon usage rate was established through passage of a city ordinance by the City Council and adoption of a resolution by the OPWA. Staff has prepared an updated Ordinance which, if passed by the City Council, would formally adopt the billing changes, and an OPWA Resolution which would officially recognize the changes. RECOMMENDATION: Staff recommends Council approval of Ordinance No. 983 amending Section 17-110, Sewer Rates, by removing the assumed usage for rural water district customers, and now providing that rural water district customers will be charged the same rates utilizing the same methodologies as OPWA water service customers. ATTACHMENT: A. Proposed Ordinance No. 983