HomeMy WebLinkAbout2011 01_OPWA_Sanitary Sewer Rates for RWD Customers_2011.04.05OWASSO PUBLIC WORKS AUTHORITY
RESOLUTION 2011 -01
A RESOLUTION OF THE TRUSTEES OF THE OWASSO PUBLIC WORKS
AUTHORITY ESTABLISHING SANITARY SEWER AND REFUSE RATES
FOR RURAL WATER DISTRICT CUSTOMERS WITHIN THE CORPORATE
LIMITS OF THE CITY OF OWASSO, OKLAHOMA.
WHEREAS, the Owasso Public Works Authority ( "OPWA ") desires to establish rates for rural
water district customers within the corporate limits of the City of Owasso who utilize sanitary sewer
and refuse services of the Owasso Public Works Authority, Owasso, Oklahoma.
NOW THEREFORE BE IT RESOLVED BY THE TRUSTEES OF THE OWASSO
PUBLIC WORKS AUTHORITY, that the following sanitary sewer and refuse rates are hereby
established for rural water district customers within the corporate limits of the City of Owasso:
Residential and commercial rural water district customers shall be charged the same rates utilizing the
same methodologies for sanitary sewer and refuse services that are established, or thereafter as may be
increased or changed, by the Trustees of the Owasso Public Works Authority, as charged to water
service and residential refuse customers within the City of Owasso.
PASSED AND APPROVED this 5th day of April, 2011 by the Trustees of the Owasso Public Works
Authority.
`N�� Jg��O,Q�! D onebra e, Chairperson
ATTEST: �� Q % 4P
O
G
d
t AL -
Sherry Bishop, uthority S" y t O;
O
APPROVED AS TO FORM:
Jvoe Lombardi, Authority Attorney
OCity g/A
Wit out Limits.
TO: Honorable Chairman and Trustees
Owasso Public Works Authority
FROM: John W. Feary
Project Administrator, Owasso Public Works
SUBJECT: OPWA Resolution 2011 -01
Sanitary Sewer Rates for RWD Customers
DATE: April 1, 2011
BACKGROUND:
APPROMBYTRUM
APR 0 5 2011
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 10% 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 Trustee adoption of OPWA Resolution No. 2011 -01 establishing that rural water
district customers be charged the same rates utilizing the same methodologies for sanitary sewer
and refuse services as are charged other OPWA customers.
ATTACHMENT:
A. Proposed OPWA Resolution No. 2011 -01