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HomeMy WebLinkAbout2002.11.12_Worksession Agenda 3. Discussion Relating to Planning Items. A. Proposed Changes to Sign Ordinance B. Other Planning Items Mr. Wiles Mr. Moore Attachment #3 Enclosure 2. Discussion Relating to Insurance & Retirement Items. Ms. Dempster Attachment #2 1. Call to Order Mayor Brogdon AGENDA bulletin on the and and agenda filed in the office of the at 4:00 p.m. on 8, 2002. Special November 12, 2002 6:00 p,m. Owasso City Hall Main Conference TYPE OF MEETING: DATE: TIME: PUBLIC NOTICE OF THE MEETING OF THE OW ASSO CITY COUNCIL The Mayor will request Council approval of an executive session for the purpose of reviewing and discussing the City Manager's contract for services and for discussing Tulsa County District Court Case No. CJ-2001-04653 - American Waste Control Inc vs City of Owasso. 7. Consideration and Appropriate Action Relating to a Request for an Executive Session for the Purpose of Discussing Personnel Matters Relating to the Office of the City Manager and for the Purpose of Discussing Litigation Against the City of Owasso, Such Executive Session Provided for in O.S. 25, Section 307(B)(1) and Section 307(B)(4). Mayor Brogdon Attaclilllent #7 6. Report from City Manager Mr. Ray 5. Discussion Relating to Financial Items A. OWRB Loan B. Financial Reports Ms. Bishop Attachment #5 4. Discussion Relating to Public Works Items. 86th & 145th Intersection Bid B. Other Items. Mr. Attachment Owasso City Council November 12, 2002 Page 2 8. Adjournment. Owasso City Council November 12, 2002 Page 3 Our local agent Moe Hogan, an affiliate of Rich & Cmtmill, has attempted to solicit quotes from various insurance cani.ers who wli.te property and liability insurance for municipalities. Two calTiers, OMAG and Trident declined to quote due to excessive claims over a five year period. A third company, Coregis, did not respond to the request for a quote. Our cuuent carrier, Specialty National submitted a quote to continue our cuuent coverage with an annual premium increase of $68,205. It should be noted that a staff review ofthe City's five year claim history indicates that 75% of all claims between 1997 and 2002 were contained in only three cases. One was a $254,376 court ordered payment stemming from a 2001 lawsuit filed by ten police officers; another was a $114,954 payment relating to a 1999 lawsuit filed by a police officer, and the third $40,000 payment to Jesse Honeycut relating to an "unlawful auest" in 2000. That data indicates the bulk of the "excessive claims" (used to justify the higher premiums) are unique in nature and not representative of the "norm". Additionally, rates have been affected by the nationwide increase in coverage due to the events of September 11,2001. However, the City must have insurance protection and all efforts to convince the insurance carriers to consider the unique nature of the claims has failed to gain a reduction in the premiums. COMMENTS: The City of Owasso, through its use of a variety of insurance products, programs and training seeks to minimize the City's exposure to risk. The single most important component of a Risk Management Plan is the comprehensive municipality liability product The comprehensive liability package includes Property, Wind & Hail, Equipment, General Liability, Automobile Liability, Law Enforcement Liability, and Public Official Liability. BACKGROUND: November 4,2002 DATE: THE MEMORANDUM Staff is prepared to present a recommendation to renew our contract with Specialty National with an increase in deductibles on Property Damage, Wind & Hail Damage, General Liability, Public Officials Liability and Auto Liability as well as discontinuing coverage for equipment at the November 19th, 2002 council meeting. RECOMMENDATION: Note: While we are currently recommending a $25,000 deductible on Property and Wind & Hail coverage, staff believes it to be a good business decision to look at increasing Propelty and Wind & Hail coverage to a $100,000 deductible. These rates are not yet available, however staff is continuing to work to get quotes for the higher deductible for these items. Currently annual premiums are $151,831, without any changes in deductibles or coverage the premiums for the upcoming year would be $220,036. However, the premiums based on the recommended increases in deductibles and discontinuing Equipment coverage would be $185,092. $25,000 for Property Damage $25,000 for Wind & Hail Damage No Coverage for Equipment $ 5, 000 for General Liability $ 5,000 for Public Officials Liability $ 5,000 for Auto Liability Staffhas determined that increasing deductibles would be an effective method of managing this overall increase. Also, in an attempt to manage this increase, staff recommends dropping Equipment coverage. This policy covers replacement of equipment loss through natural disasters and accidents. The majority of equipment covered by this policy has a value of less than $5,000. Therefore, we are not assuming a huge amount of lisk by dropping coverage instead of increasing the deductible to $5,000. Staff recommends the following deductibles: $1,000 for Propelty Damage $2,500 for Wind & Hail Damage $1,000 for Equipment $2,500 for General Liability $2,500 for Law Enforcement Liability $2,500 for Public Officials Liability $2,500 for Auto Liability Therefore, in an effort to reduce this increase staff has reviewed deductibles for each type of coverage. The deductibles that are currently in place are as follows: Staff is prepared to present a recommendation to approve the revised OMRF Master Defined Contribution Plan Joinder Agreement and Ordinance #724 modifying our plan document definition of compensation at the November 19t\ 2002 council meeting. RECOMMENDATION: Approval of the proposed Joinder Agreement and Ordinance #724 would only change the plan definition of compensation to include the following: "Compensation for this purpose shall be defined as base wages only according to the personnel policies for the City of Owasso and will exclude such items as overtime-pay, holiday-pay, uniform expenses and other similar reportable wages." This change will modify our plan document to match current practice and staffs original intent. The proposed ordinance has an effective date of July 1, 2002, enacting the plan document modification retroactive to the beginning of this fiscal year. The OMRF Thrift Plan is an optional supplemental retirement plan available to all full-time employees. Employees can contribute up to 12% oftheir base wages and the City will match up to 2% ofthe employee's base wages $0.50 on the dollar. Employees select investment options on an individual basis. Upon implementation of the plan it was intended that the employee's contlibutions and the City's matching contribution be calculated on base wages without the inclusion of overtime or extra pay items. It has recently come to staffs attention that the City's plan document does not indicate this intent. Therefore, OMRF has requested that we update our plan document to designate what we consider to be base wages. BACKGROUND: November 4, 2002 DATE: MEMORANDUM Process Staff envisions an approval process that provides several opportunities for comments and discussion. Staff is proposing to discuss preliminary comments at the November 12, 2002 City Council Work Session, although no action is to be taken. Comments will be addressed, staff will make the necessary changes resulting from the work session and the item will be scheduled for the December 9, 2002 Planning Commission Meeting. Staff will take into consideration Planning Commission's comments and recommendations and forward the item to City Council. City Council members will have a further opportunity to discuss the proposal at the December 10, 2002 work session. A final draft will be prepared for the next regularly scheduled City Council meeting for final adoption. In addition to providing a more "user-friendly" format, several sections of the existing code have been modified either by new language, the rewording of some language and/or the exclusion of wording entirely. Staff requests your assistance with the evaluation of the proposal's format, content and clarity. Staff understands that there are a number of varying businesses within the City and has made a good-faith effort to accommodate the different needs of those businesses. However, staff also understands that in a City such as Owasso, with its rapid growth, certain restrictions are necessary to ensure that the growth that does occur is controlled by the City and not vice versa. Staff has fielded several complaints from citizens concerning the existing code and has noted a high level of inconsistency with the code's format. Given the difficulties in the interpretation by staff and area businesses, staff felt that an update was in order. Difficulty in interpreting the code by staff leads to an inconsistent level of enforcement, thereby leaving local businesses with the impression that a particular sign may be allowed when in fact, it may not. Background The Community Development Department is proposing to replace the existing sign ordinance with an updated code. The sign code not only controls the location, size and type of signs allowed within the City, but also how those signs relate aesthetically to the City as a whole. Staff feels that by clarifying the code with a new format, a level playing field will be created which will help local businesses nourish. 8, 2002 HONORABLE MEMORANDUM (h) Corporate or Commercial Flags. No corporate or commercial flags shall be permitted in (b) Banners. No banners shall be permitted in any zoning district except those banners that are in connection with a non-profit, community or neighborhood center, public, church or educational institution. Such banners shall be limited to a period of no more than thirty (30) days and shall contain no advertising. Banners in connection with a non-profit, community or neighborhood center, public, church or educational institution that contain advertising are permitted for a period not to exceed forty-eight (48) hours. Banners shall be permitted for new businesses and / or change of occupancy for a period not to exceed fourteen (14) days and shall advertise only the name of the business and "grand opening" or "open for business". (New Language) (a) Portable, Mobile or Vehicular signs. No portable, mobile, vehicular or snipe signs shall be permitted within the City, and no motorized vehicle or trailer shall be parked upon public or private property within the City for the obvious purpose of advertising; provided that commercial vehicles may be identified only by business name, type of business, business address, business telephone number, and contractor's state / county / city license number when required. (This section was allowed per the previous code - Section IV (H)) 2. By Type 17.06. PROHIBITED SIGNS. 12. Vinyl or plastic lettering affixed to any awning or canopy, and conforming to the provisions of the section related to awnings/canopy type signs. (New Language) 11. Non-flashing or moving time or temperature signs that contain no advertising and do not exceed (12) square feet. (N ew Language) 10. Signs and required regulatory information that are an integral part of, and not simply attached to gasoline pumps or other similar dispensing or servicing devices. (New Language) 9. A maximum two (2) signs not to exceed four (4) square feet each shall be permitted to advertise a garage sale. Any such sign shall not be placed in the public right-of-way, shall not be placed or located further than the nearest major arterial roadway from the site of the sale and shall be removed immediately at the conclusion of the garage sale. (New Language) connection with a or educational ( III area. 5. insignias of government agency that are center, Significant Changes Below, please find a summary of the major changes between the existing ordinance and the proposed code (listed by the proposals corresponding section number). National or international franchises shall be given reasonable consideration with respect to company standard logos and lettering styles that are an integral part of the franchise image and identity. The consideration shall not be without restriction and shall be within the bounds of A unified sign plan (USP) is an application requesting approval of a comprehensive sign permit establishing the size, location and design of signage on property being developed as a unit. The purpose of a USP is to provide for the establishment of signage criteria that is tailored to a specific development or location and which may vary from the provisions of this Code. The intent of the USP section is to provide for some flexibility in the sign criteria of this Code that promotes superior design through architectural integration of the site, buildings and signs. 17.4. UNIFIED SIGN PLAN (6) That the granting of the variance will not interfere with the location and identification of adjacent businesses, buildings or activities. (5) That the granting of the valiance will not be detrimental to the public welfare, will not constitute a public nuisance or adversely affect public safety. (4) That the granting of the variance shall result in greater convenience to the public m identifying the business location for which a sign code variance is sought. (3) That the variance as granted represents the least deviation from the prescribed regulations necessary to accomplish the purpose for which the variance is sought and which is consistent with stated intent of this Code. (2) That the extraordinary or exceptional conditions of the subject property are not a direct result of the actions of the applicant. (1) That the variance is necessary due to extraordinary or peculiar circumstances related to size, shape, topography, or location of the subject property. The City of Owasso Board of Adjustment may grant a variance to the requirements of this Code only if the applicant demonstrates compliance with the following criteria: 17.14 SIGN VARIANCES. to construct or (k) U> Advertising Signs (off-premises). It shall be maintain any off-.premises advertising sign exception of off-premises signs). V. ) unlawful for any person to construct or any zoning district in the City (with the section was allowed Der the any zoning district that exceeds thirty-five (35) feet in height and/or fifteen (15) square feet in area to include those corporate or cOnmlercial flags containing logos. Additionally, corporate or commercial flags shall be limited to one (1) flag per lot. (New Language) Request Please review the proposal and provide preliminary comments to the Community Development Department by November 12, 2002 as this item will likely be heard at the December 9, 2002 Planning Commission meeting. sign that is prohibited Section 17 (4) Unified Sign Plans may not include (3) Unified Sign Plans may not propose a total sign square footage exceeding three (3) square feet of signage per everyone (1) linear foot of street frontage of the subject property. (2) Unified Sign Plans shall include all signage to be located within the perimeters the subject site whether in excess of the provisions of the current sign code or not. (1) Unified Sign Plans shall include the location, height, construction material, of illumination and orientation proposed signs. All unified sign plans are subject to the following restrictions: sound zoning and planning practice and in harmony with the general purpose and intent of the unified signage plan. Staff will update the Council at the Work Session on the bids received. This capital improvements project was advertised for bids on October 10, 2002. mandatory pre-bid meeting was held on October 31 sl for the purpose of answering any questions prospective bidders might have concerning the project. Bids will be opened on Monday, November 11 tho It is anticipated that the bid will be awarded in December, with construction to start in early January 2003. BACKGROUND: November 8, 2002 DATE: MEMORANDUM The City of Owasso resolution would approve action taken by the OPW A authorizing the issuance, sale and delivery of promissory notes of the OPW A to the OWRB. The OPW A resolution would authorize the loan with the OWRB; approve the issuance of promissory notes and the loan agreement; approve the payment of fees and expenses associated with the loan closing; and approve and authorize various other documents and actions necessary to complete the financing. On October 15, the OPW A Trustees approved Resolution #2002-05 authorizing an application with the OWRB for permanent financing to replace the current interim construction loans. In order to complete the financing, the OPW A Trustees and the City Council will be asked to approve resolutions. The final inspection of Phase lIB improvements to the wastewater treatment plant was completed November That project is financed by an interim construction loan through the Oklahoma Water Resources Board (OWRB). The operates the State Revolving Fund (SRF) loan program and the Financial Assistance Program (F AP). These programs provide low interest financing for eligible projects. B~~c.KGROUND: November 8, 2002 MEMORANDUM However, the actual impact of the fee permit was to significantly increase revenues to the City. That increase eventually served to call attention to the fee by local businesses and one of the permit holders, American Waste Control. Then, on August 31, 2001, American Waste Control filed a lawsuit in District Court against the City of Owasso, claiming that Ordinance #638 is illegal and void due to law that prohibits the imposition of a "licenses tax" on waste collection, as well as claiming that the ordinance exceeds the "police powers" granted the City by the State. Additionally, the lawsuit claimed that Section 17-206 of Ordinance #638 is in violation of Oklahoma Statutes (47 O.S. section 1148) in that the ordinance exceeds the City's authority to prohibit the use of city streets (inadvertently, the ordinance prohibited the transport of any trash on any city street unless the transporter had a city permit, thereby making it illegal for a hauler to pick up trash in another city or from a non-city resident and then transport that refuse through the city to a disposal site, very clearly exceeding the authority of the City). It should be noted that American Waste Control, as of August 31, 2001, has not collected from their customers nor paid Generally, Ordinance #638 established a fee of $3.50 per yard of collected commercial waste to be paid to the City on a monthly basis. That fee was adopted based on calculations performed by the Public Works Depmtment. Those calculations were accomplished utilizing data from the City's contract dUling the previous year and supplemental information supplied by other "haulers" on a voluntary basis. It appears that one goal of the new ordinance was to ensure that the fees generated by the "permit fee" were equal to the revenue collected from the "contract" system then in use (see memorandum dated March 29, 2000). On April 4, 2000, the City Council adopted Ordinance #638 (attached), such ordinance for the purpose of establishing a commercial waste collection permit and applicable fees for that permit. The ordinance was adopted in an effort to remedy a concern that the City Attorney had relating to the legality of the "exclusive" contract method the City had previously utilized to collect commercial waste within the boundaries of the city. BACKGROUND: November 7, 2002 DATE: MEMORANDUM 1 . Ordinance #638 2. Memorandum from Robert Can dated March 29, 2000 3. Original Petition for Declaratory Judgment ATTACHMENTS: This issue is scheduled for discussion dUling the November 12th Work Session. Mr. Gray has consented to be present for the discussion, as will Mr. Carr and Ms. Bishop. If you have questions, please call me or Mr. Gray. WORK SESSION DISCUSSION: Based on Mr. Gray's review, discussions with the Plaintiffs attorney, direction from the Judge and staff comments, it is proposed that the City Council repeal portions of Ordinance #638 relating to the permit fee and amend Section 17-206 of that ordinance. Such action is recommended to be accomplished as soon as possible prior to November 26 (the date set for a hearing on the Plaintiffs motion). Therefore, it is proposed that the recommended action occur during the City Council meeting scheduled for November 19th. PROPOSAL: After employing Mr. Gray as City Attorney, he reviewed this case in the context of preparing an answer to the Plaintiffs Motion for Summary Judgment." Mr. Gray's review lead to the conclusion that the City has, in fact, enacted an ordinance that lacks a defendable position. Based on discussions with the City Attorney and a requirement for an immediate response to the Plaintiffs Motion for Summary Judgment, I authorized Mr. Gray to meet with attorneys for American -Waste Control to detennine our available options. Mr. Gray also appeared before Judge Wiseman to request time for a possible negotiated settlement of the matter. LEGAL REVIEW: -~---- maneuvers by both i1,merican concern they were at a disadvantage by while American Control had ceased collecting fl'om bee:n Subsequently, Additionally, continuing to its customers. to the City the fees required of the permit even though there have been demands for payments as Ordinance #638. COMMERCIAL WASTE COLLECTION LAWSUIT NOVEMBER 7,2002 PAGE 2 There is hereby authorized to be issued to any qualified person, under the tenus and conditions hereof, a Waste Collector Penuit which shall specifically authorize such person possessing the penuit to, under the control and supervision of the City, collect, remove, transport and/or dispose of commercial solid waste and/or construction and demolition waste from within the City, SECTION 17-2Q2 WASTE_CQLL~CIORPERMIT 5. "Vehicle" means any truck, trailer, semi-trailer or other equipment used to collect, remove, transport or dispose of solid waste, and over any public way, street, avenue, road, alley or highway. 4. "Person" means every natural person, finn, partnership, association or corporation; 3. "Waste collector" means any person who collects, removes, or transports commercial solid waste or construction or demolition waste as defined herein; 2. "Construction and demolition waste" means waste or large bulky items, such as brush, tree cuttings, lumber, concrete, bricks, plumbing fixtures, plastics and other waste generated by construction and demolition activities; 1. "Commercial solid waste" means all solid waste emanating from all units having zoning classification other than low or medium intensity residential uses; For the purposes of this Article the following tenus shall have the meanings respectively ascribed to them herein: DEEINIILON SECTION 11:201 ARTICLE B WASTE COLLECTOR PERMIT Section Two: There shall be adopted as new law and codified as indicated the following provisions; Section One: Part 17, Utilities, Chapter 2, Garbage and Refuse Collection, of the Code of Ordinances of the City ofOwasso, Oklahoma, be and same are hereby amended as follows, Section 17-202 shall be amended by deletion therefrom of the words "or commercial"; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OW ASSO, OKLAHOMA, THAT, TO-WIT: "'~ AN ORDINANCE RELATING TO PART 17, UTILITIES, CHAPTER 2, GARBAGE AND REFUSE COLLECTION, OF THE CODE OF ORDINANCES OF THE CITY OF \\\HHfllft/ OWASSO, OKLAHOMA, AMENDING SECTION 17-202 BY","'" \\K r ""'" DELETION OF COMMERCIAL SITES THEREFROM, /" \J~I~':':"':'~~J"'"l;.~ AMENDING SAID CHAPTER BY ADOPTING AS NEW i /::::<~.~:::::! ^.:;.:'';,,-;\ LAW ARTICLE H, WASTE COLLECTOR PERMIT, ~ ( : ~. ~.~ g E APPLICATION FOR WASTE COLLECTOR PERMIT, Fi~.:t~:~X^:^ ",' :^,:.f::;;;;; ff FOR WASTE COLLECTOR PERMIT, WASTE \, 0,....,:::, >'"y! COLLECTION REGULATIONS, SPECIAL ORDERS OF "~",/AiA;io'~~' ",~,.$" CITY MANAGER, UNLAWFUL USE OF STREETS, "II/IIll1ll1l"" PROVIDING AN IMPLEMENTATION DATE AND DECLARING AN EMERGENCY ORDINANCE NUMBER 638 CITY OF OW ASSO, OKLAHOMA Docff- 00046855 - ;g~ -'4 - ;/~-- 6361/0'754-0'75'7 Receipt 1/ 439235 05/08/00 11: 05 : 2 5 111111111111111111111I1111I111111111111111111111111I111111111111111111 Fe<)' 14,00 lIE00043923501211l ~ ~ ~ ~ ~ ~f ~ ~ a it "-J ~ " .... ~~ s:.) ~ ~ f{ '01 ~ ,.>..J ~ '""'" '-> u:J ('1') V::::l ....::.r tn I-- a ~ A. Waste collectors who in the course of their business provide containers for the collection of solid waste shall display information on each container, such as a business name or trade name which shall sufficiently identify the permittee providing waste collection services to the establishment using the waste container. Characters, letters and numbers displaying the foregoing information shall be at least two (2) inches tall, om~-half (Y:z) inch wide and applied in such a way so as to become permanent. Characters shall be no lower than twelve (12) inches from the bottom of the container and shall be in a contrasting color to the container so as to be clearly visible. SECTIONJ7-204 W ASIEGQLLECTIQN~RE(lULATIQNS B. The permit referred to in Section 17-202 shall be issued for an indefinite period.. The fee for the waste collection permit shall be payable to the City on a monthly basis on or before the I Sill day of the month immediately succeeding collection service provision in the amollilt of three dollars and 5011 00 ($3.50) per yard collected per month with compactors utilized being at an amount equal to 4 yards charged for every 1 yard of compacted volume. The waste collector shall provide for the monthly remittance with 11 waste collector monthly report to be provided by City. Should the City Clerk determine to deny a permit, or revoke same llilder authority of this chapter, notice thereof shall be provided to the applicant/permittee containing such proposed denial or revocation and the reasons therefore. Revocation of any permit issued llilder this chapter shall not be effective lliltil the expiration of ten (10) days from the date of serving a notice upon permittee of such revocation, absent an emergency situation. Any applicant denied a permit, or permittee whose permit is revoked may appeal such denial or revocation to the City Council of the City. Appeal from denial of application for permit or revocation of same shall occur upon written notice requesting same addressed to the City Clerk within ten (10) days of the denial of the application for permit or, as pertains to revocation of such permit or within ten (10) days preceding the effective date of such revocation as above provided. In the event a permittee shall request an appeal before the City COllilcil of the City regarding revocation of such permit, the effective date of the revocation shall be stayed pending determination thereof by the City COllilcil of the City. 11. Any other information deemed necessary by the Director of Public Works of the City. 10. Name of liability insurance company and policy number; and, 9. Landfills used; 8. An attached schedule of all waste collection services, indicating type of solid waste collected, site of collection; 7. Current state safety inspection number; 6. Packer 5, Color of cab and Make, model and year of each truck; 4, 3. Business and home phone number; Business name and address; 2. Name and home address of the applicant; 1. A. The waste collector permit, as referenced above, shall be issued by the Office of the City Clerk of the City. Applications for such permit shall include the following information: PERMlIj\EPLICA TION REOUIREMENTS, ISSUANCE. DENIAL. SECTLQN 17-203 Vd tn Uj l""- e 17. Cleaners/photo finishing. 16. Bank, savings and loan, credit union, A TM; and, 15. Community Center/YMCAlYWCAlpark; 14. Theater/sports stadium/convention center; 13. Hotel/motel; 12. Supermarket/grocery store; 11. Restaurant/fast food establishment, etc.; 10. Utility operations including substations, pump stations, etc.; 9. Medical facility, including labs, nursing homes, clinics, etc.; 8. Church/synagogue; 7. Public or private school or college; 6. Auto/truck/boat dealer, including salvage, repair, parts and service stations; 5. Warehouse/storage facility; 4. Manufacturing company; 3. Apartment building/condominium/trailer park; 2. Retail shop/shopping center; 1. Office building; D. Every licensed waste collector shall maintain a :full, true, current and legible list of all commercial customers that are provided waste collection services, which shall include an itemization 0 the customer's nanles, service address, waste container size or sizes, the frequency of service measured in days per week, and a brief description of the type of customer or client being served, such as: 4. Comply with all other requirements and restrictions imposed pursuant to the rules and regulations of solid waste management adopted by the City Manager or City Council ofthe City. 3. Be required to be reasonably clean and sanitized if the vehicle is declared to be a health hazard by the City-County Health Department or its duly authorized representative; and, 2. Be parked at least one hundred (100) feet fi'om any residential building, if parked over six (6) consecutive hours, while containing a partial load of solid waste; 1. Be constructed and maintained in such a manner as will prevent any solid waste from spilling, falling or blowing out ofthe vehicle on to any public way, street, avenue, alley, highway, road, or any other public or private place, except when being loaded or unloaded and shall be completely Ul,d securely covered to any spill, fall or blowout fi"om the point of collection to the point of final disposal; shall : C. Any vehicle used in the collection, removal, transportation or disposal of solid waste B. No person shall collect any solid waste inside the corporate limits of the city within six hundred (600) feet of any residential building unless it is after 6:00 A.M. and before 10:00 P.M. tD C''J \.,0 tD m F- e::! 2780-403.ord waste col penn it Ronald D. Cates, City Attorney /'1,," J, / / . d By: ,:;.t ~<.'!.Yl 't-A: /pI[;{.vo..._ Mark Wilken, Mayor CITY OF OW ASSO, OKLAHOMA PASSED this 41h day of April, 2000, with the Emergency Clause voted and approved separately. Section Four: Due to the absence of provisions regulating private commercial solid waste and construction and demolition debris collectors an emergency is hereby declared to exist whereby the provisions of this ordinance shall become effective immediately upon passage and publication as provided by law 2000. Section Three: The provisions of this ordinance will be implemented beginning May 1, It is unlawful and a public offense for any person to haul or transport any trash, refuse, rubbish, garbage and/or waste upon or over any ofllie streets, alleys or highways of the City l.mless such person shall first have procured a pennit as herein provided. SECTION 17-20Q USE OESIEEEIS The City Manager of the City is hereby authorized and directed to promulgate rules and regulations governing the collection of commercial solid waste and construction and demolition waste within the City by waste collectors. Application for and acceptance of a waste collector penuit shall be deemed to constitute the permittee's acceptance of the provision ofthis chapter as well as any rules and regulations promulgated pursuant hereto. Failure to adhere to the provisions of this chapter, or any rules and regulations promulgated pursuant hereto shall constitute grounds for denial or revocation of the permit. S~CIIQl~Lll:.~JL:i liEJ;:;s:rAkQBI;JERS~.QEIIYJ\1ANAG:tiR . .' F. No person shall collect, remove or transport solid waste, including hazardous waste, in a manner so as to scatter or spill such waste, either at the point of collection or while transporting the same for disposal unless such waste is immediately retrieved and removed in its entirety. Immediately after collection, containers which have been used to store solid waste shall be closed, with each lid or cover being reasonably secured. E. Any vehicle used in the collection, removal, transportation or disposal of solid waste within the jurisdiction and control of the City shall be subject to reasonable inspections initiated to insure compliance with this section and conducted by duly authorized inspectors of the Department of Public Works, the Police Department or the City-County Health Department. \..0 ('"') 1.0 r-- tn r-- o No person, firm or corporation shan be permitted to engage, and it is unlawful for any person, firm or corporation to engage, in the hauling and disposal or collecting of trash, rubbish or garbage for hire or a fee, within the corporate limits of the City without first being so designated and permitted to do so by the City Council of the City 0 I 2000 March DATE: I I I I I I I I I I I I CITY CODE PROVISIONS: About one (1) year ago, it came to the attention of city staff that a non-contracted refuse collection provider (American Waste Control) was providing service to commercial customers within the city limits. In the opinion of the City Attorney, our contract for commercial refuse collection is not exclusive; therefore, other companies can provide service within the city limits. Provision of such service has resulted in uncollected revenue by the city and does not conform to the Code of Ordinances (Section 17-217) that states: BACKGROUND: The Public Works Department has been responsible for preparation and administration of contracts for commercial refuse collection. Billing for services has been administered through Utility Billing. These contracts have been bid twice in the last six (6) years. In July 1993. the Trustees of the Owasso Public Works Authority approved a contract with Browning-Ferris Industries (BFI). In April 1996, a contract similarly was awarded to Waste Management of Oklahoma for the services. The bid amount establishes what the City of Owasso pays the contractor. Payments have been determined based on the size of container provided each city customer and the frequency of collection. The contractor bills the City of Owasso for accounts collected. The customer is billed by the City of Owasso along with any additional charge added to the contractor amount. Additional fees have been added to the contracted bid amounts for administrative and other costs. The total of the contracted bid amount and additional charges constitutes the billing rate to each customer. ORDINANCE FOR WASTE COLLECTOR PERMITS SUBJECT: PUBLIC WORKS DIRECTOR I I 1:1. IJ E ~ t ~- l~' .. ~j t ,i, ~.; I ~ ~ ~ ~ i I I ANALYSIS OF COLLECTED REVENUE: Discussion of this issue was held with Council at the Work Session on February 8, 2000. Staff had collected data summarizing the most recent monthly net revenue for commercial refuse service in the city (see Attachment D) which included a compilation of number of customers, collection frequency, container size, city billing rate and charges by Waste Management to the city. A calculation of amounts of net revenue collected listed by container size and collection frequency was shown. Based on the number of city customers at the time of the listing, total monthly net revenue was $11,868.88. Since collection frequency and container sizes vary by customer, staff suggested that an equitable permitting method could be based on the number of yards of waste collected. Permit fee calculation using this methodology combines container volume/collection frequency and provides consistency among all providers and customers based on specific needs. POSSIBLE PERMIT OPTIONS: Types of permit fees administered by other local communities include: No fee Annual fee per container Annual fee per volume of container. and Percentage of gross monthly revenue. was mailed to November Subsequently, letters have been received Waste their attorney Attachment C) concerning the proposed permit In addition, a presentation was made at the Council meeting on February I, 2000 by a local business representative expressing concerns with the current rate structure and the need to develop a more equitable permit procedure. PERMIT/CO~TRACT REQUlREMENfS: Based on data provided in the initial permit application, a calculation was to determine the amount of uncollected revenue (indicated by a differential between the current rate charged City of Owasso commercial customers and the current contract haul rate). It was determined that commercial refuse collection by American Waste rather than our present contractor has resulted in uncollected revenue in an amount exceeding $1,300 per month. was to this situation were to by the Page 2 Ordinance for Waste Collector Permits ORDINANCE AND IMPLEMENT A TION: A proposed ordinance to provide for a Waste Collector Permit to permit collectors of commercial refuse is attached for City Council adoption (see Attachment H). The ordinance also contains provisions for collection of construction and demolition debris. I At the time this initial analysis? however? the quantities of waste collected monthly did not reflect services provided by companies other than Waste Management. A complete listing of locations? container sizes and collection frequency for all service providers increases the quantity of refuse and reduces the proposed permit fee cost per yard. A desire was expressed to generate sufficient permit fees to offset the net revenue collected under the existing city rate structure and to remain revenue I I I I I I I I I I I I Potential affects on existing rates are shown in Attachment G. Based on the present contract rates with the City of Owasso and the increase in quantities to account for all collected refuse, all but one of the monthly fees decrease. Rates are expected to change from +3% to -27% depending on collection frequency and container size. PROPOSED PERMIT FEE: Attachment P is a compilation of data reflecting all known commercial refuse collected within the City of Owasso. Data have been added for customer accounts not billed by the city. A total of 3,472 cubic yards are included. An increase of 1,145 cubic yards (49.2% increase) is represented above that presently billed by the City of Owasso. To remain revenue neutral, a permit fee of $3.50 per cubic yard collected per week is required. To compile a total amount of commercial refuse collected weekly. each company was requested to provide a current list of customers, container size and type, and collection frequency. In addition, it was agreed that a 4: 1 ratio of compacted to uncompacted waste would be applicable for customers provided with compactors. MEETING WITH COMMERCIAL WASTE COLLECTION SERVICE PROVIDERS: Staff and the City Attorney met with the three (3) largest commercial waste collection providers (Waste Management. American Waste and BPI (Allied)) on February 25. 2000 to discuss the status of the City of Owasso pennitting procedure, The meeting inclu.ded discussion 'of the City Code of Ordinances, existing customers of each company, implementation of permits and collection of fees, Page 3 Waste Collector Permits - I '" F ~ I I I I J I I J J J J ~ J ~ ~ ~ ~ rJ Attachment A - April 29$ 1999 letter to American Waste from Ron Cates Attachment B - September 17, 1999 letter to American Waste Attachment C - December 1, 1999 letter from American Waste attorney and December 2, 1999 letter from American Waste about contract provisions Attachment D - Monthly net revenue calculation Attachment E - Potential permit fees . Attachment F ~ Commercial Refuse Collection Permit Fee Calculation Attachment G ~ Percentage Change in Monthly Fee Attachment H - Ordinance 638 - Waste Collector Permit ATTACHMENTS: RECOMMENDATION: Staff recommends Council approval of Ordinance 638 to provide for a Waste Collector Permit for the purposes of permitting collectors of commercial solid waste as wen as construction and demolition debris. An emergency clause is requested to enable the ordinance to become effective immediately upon passage and publication as provided by law, With implementation permit fees, companies meeting specific permitting criteria will be able to establish customer accounts with the city limits. Fees for services will be determined by each company. Individually, customers will have the ability to determine which company provides them the most desirable type of service and cost, The City of Owasso will no longer bill customers. an to the safety businesses, a result, through the pennitting controls will be enforced on waste collectors that ensure adequate and appropriate service will be maintained. Each month a listing of customers will be provided by each Waste Collector. The permit fee will be calculated using the list and an accompanying payment provided to the City of Owasso. are as waste to to is Page 4 Ordinance for Waste Collector Permits It is the position of the City of Owasso, Oklahoma, that the aforestated provisions of the Code of Ordinances of the City of Owasso are a legitimate exercise of the police power exercised by the City of Owasso, Oklahoma. In that regard it is well established in Oklahoma that municipalities act for the public health and discharge governmental function in the collection and disposal of solid waste. City of Purcell y. Hubbard 410 P2d 488, 490 (1965). Further, the Under the provisions of Section 17-219 of the Code of Ordinances of the City ofOwasso. Oklahoma, any person or persons, firm or corporation that violates the foregoing shan be deemed guilty of a misdemeanor and upon conviction shall be fined as provided in Section 1-108 of the code, to-wit: $200.00 per day for each days continuance or failure to comply with the provisions of the ordinance, as well as costs for each offense. "No person. firm or corporation shall be permitted to engage, and it is unlawful for any person, firm or corporation to engage, in the hauling and disposal or collecting of trash, rubbish or garbage for hire or a fee, within the corporate limits of the City without first being so designated and permitted so to do by the City Council of the City.", In respect to the foregoing, your attention is directed to the provisions of Section 17-217 of the Code of Ordinances of the City of Ow as so, Oklahoma, which provides as follows, to-wit: I am City capacity, I have been requested to communicate with you on behalf of your company regarding information which officers of the City of Owasso, Oklahoma, have received indicating that your company. American Waste Control, is presently and has for some time been collecting commercial refuse within the corporate limits of the City ofOwasso, Oklahoma, Further, in this regard, a review of the records of the City of Owasso, Oklahoma, does not indicate the existence of any contract between your company, American Waste Control, and the City ofOwasso, . Self: within the In Re: American Waste Control City of Owasso, Oklahoma ~W~~~@W~~$~m@@w@~~m== April FAX 918-582-0166 9180582-7447 Attomey at Law Suite 680, ParkCentre 525 South Main Tulsa, Oklahoma 74103 RONALD D. CATES I I I. I I I I I I I I I I I I I I I I I I I ~ ~ ~ ~ ~ [ [ I I I I I 2780-388.1ms F. Robert Carr Director of Public Works City of Owasso RDC/nhc xc: J. Jeff Hancock City Manager City ofOwasso shall govern accordingly. contact Oklahoma 74055, telephone number 1 to arrangements to secure the necessary contractual authority for provision of the commercial refuse hauling service. failure to do so under circumstances of a continuation of the performance of the commercial refuge hauling service within the City Owasso, Oklahoma, will leave the City Owasso, Oklahoma, no alternative but to pursue all legal avenues for assuring compliance with the the of Ordinances the City Oklahoma, outlined Supreme held that "it is within the orderly, sanitary disposal !lli.hQI;L.'L~~i!Y Management Mr. Mike Self April 29, 1999 Page 2 cc: Roo City Attorney 1. Jeff Hancock. City Manager ~~t2u{ ~G~ F. Rbbeft Carr. Jr.. P.E. Public Works Director Sincerely, OW ASSO PUBLIC WORKS DEPARTMENT If you should have any questions concerning the provisions stated herein, please contact this office at 212-4959. Upon submittal of the requested information, City of Owasso staffwill calculate the applicable monthly rate. A decal will be issued fur each container to designate confonrumce with the established requirements. .. Application will be wIid upon approval of the City Council for a period to end on June 30.2000. OJ A certificate providing liability insurance must accompany the application. .. Each individual container provided within the city limits must be individually listed and identified by location and container size. OJ Any additions and/or modifications to the contracted container locations or container sizes will result in modification of the approved contract. We expect that the requested information will be returned to our office within the next thirty (30) days. In order for us to expeditiously review the application and determine the applicable fee structure. the following is a summary of the requested information to be completed on the application: our previous telephone with a ftml our April 1999. attached is a copy of an application for a contract for commercial refuse hauling services within the corporate limits of the City of Owasso. In accordance with the City of Owasso Code of Ordinances. hauler conducting business within the city is :required to enter into a contract to provide services. Mr. Blagg: ~ Sales Manager American Waste 1222 W. 31th Place Tulsa, OK 74107=5720 '1.07 South PO Box 180 Owasso, OK 14055 wasso I I , , , , , - - - - - I I I I ': \' , 0, , I , : : " :t (i~nqt'" purpQ~ "to ~e, a mW'deipall~rw"~@;-tb~t. :'i"t ,seems to, me that if ,you have an' o:t"<U,nan(Jo, aui;hori2iin9 ,the .abqv. 'charqes:'is, uncon~ti:tutional~" First.,.i:t 'fails to pa8sconsi:itutiohal muster dUll, ,', , '._ " " " ",I, - C' , to vaquenes.,: .,ie'"',,.' ~ot. ,l~ss than ten pe~cent" @, ,Seco.d:tYe' 'the feei18 ' app~ar ,1:.<<:) ~, far in excess of thee~ense of '!=,~~latin9 - -AWC" $ bUliu.ness', 18 the eollec:rt.lon of a. t.ax and' ;U:I itherefore, an u.nauthor1%~d. ~x~rcisa of, pol!c;:epower.. See '1'i'tle '11! 5%2-106; ~ 2t Shawn~~v.. Reid 'Br9. Plumbing Co.., ~01. P.2d' '179 jand 'priddy v. C1tv or Tu;J.sa, 8841 P..;Zd..,'SJ.1o . AiISO' i:t you dc:m,'t;:tcharcJE: Waste Management, Inc., the same fe~s, then AWe is alsol being denied equal prctection: of law.' ': , i I I I ! I ".,~ : k~ '1,\ ~,~.r:. ~::-t . "1:\ .--', ~~. .)~ ~ ~ .:~ 0~ '~.. .~~ .~; ...., ~ . ~\I. ;~. - . 'f; ..~ :~ ..::~ .' Hy,eli~n~, b~uicolleet~.solid was"t._fr~ sever~ll-b~llldnesses ,in Owasso., ~ith' 'yo:ur permis~:io.n,g , for clOf!5e,, t<;),a year.. -.' In'y.oW:. _lett.er " y.ou ' agr~ed",. t;Q. let 'Awe to.,con:tinue- ,that<~.rvic&;' ~niy" upon '"the . ;,~ecut.ion o~;_:'~ iCon't.r~c~ c;ontalni:ng ei9ht,::conditio,~~'J two of, whicb.,. , @,:t'e, of qreat concern . to' Awe... ',~e' tirst':,r~quirel!;.rAWC to pay 'a " . ;~rmit,fee ~ulual,tc th~s,dift~r6nce })stlleen. t}1e:,~~n~ rates set by' . ,th~ OW~eso .Public,Wo:~'k~ ,Authorit.y'and :thera't~1II cl$rg'~d: by', AW(:e', : T~e secend .'r~1res . Awe _.to 'the alterxultive to pa~ the' Cit.y - of . OWasso 'o'~t?'t: 'lesB, ~an t~" ,percent ot ,grQS~: revel.lueeu', e~ived, by' AWe ;f~OaIII'H1~rVJ.ce1l!l p:g:'ovi~ed w:~t.hin t:hliiil city: limit.l!3 of ow l!3SO.. : . . , ~ ",' ..:', ,: . " . .'.,:.. .' , , APp:l.yinq.' t.ll11'l~-e"requii-~ments ,youhavs. cal~lat~d,t.hemonthlY t~e.', cf' $.1.,33'?- ",04 .; :", , 'l'hi~: ooimt.' is' aore - ,t:han GO% ' " Qf'AWC liS tgross. rQvenues : tor' - aw8SS0 s:er.vice~ ". "- ': : I ' :::f~~J . : ~:.:; . <]~ Iii ;ft~'l .:~.~}~ ;:~:I :~{::: .:'~;~. ': .~~..~. , ~'-:':.'I .J!': . '~~':j; _ .' :KY ,Amerimni.~a8t8 _~upond, . your ';l~t:.i:G.;'dat;cd ,c:lien;t on NovWlb~r, '1999:@, .!' i , ; . I I " l bas: 'asli:ed' me. if~cei ved 1iUY . .'. 1 .,:) '",~ ,.':";V' .', ':~:J " ~...;, ~:T:~J : ..~6 . ~ ,,\> . ,;,~.:.~ ,.;. ,I g: ". 11* ~ Carr . PUblic WorkS: 'oWaRso Public,Wa~ks, 0.' . l~O", OK ,....:."74055 , i I i " $ . VIA 272--4999 10 ~9 .'.f'.... l,t , ' ;,;1' j, '1'eh: (')l'; 1.Q..~~ Flt!:3 (9uJ 14Ul'Je ~: 'JJ'41.1U41j!!ffii, 1.1J.1~ ~ :<~.; " .~' ::1 " " , >~ .,~ " . -< '; , '.~ , '~', . "'..:7 , "fl. '~ " DOUGLAS Le BOYD' AnomEr AT LA W PC;GE 02 ':l1l:l/4'L':J'.::l-:!1d !L/~!/!~~~ lb:jL UUU~LA~ L ~UYU AllY , , .' ~~ ,~ .~ '/ ' ' )-,.. ~~~;. \."'.. fp , ...~ . ,- ')~ . .. '0.1:., 6: . It F~ 1;>',. :.:". ~f;. 4~ : r'~'6 ~~', ~.'.~ . ~:!.~.. "'::. ~ . .I.p>. : f.:',; .1 ~.. . l ':' ~... ~",. ..... ''''~''~' :'.:: . '!., t;; ~: ~~~~ . ~ .' 6 f;/: ~';;': .:};:' ~..... . '~.- - . ~ , , ' , " r~{, I: ", , )~~ '" '" >..,' .' ." ~} '" '" ~'.. " .' ." ,'" " -: .' ,l' ~.:~ I. :~?: ..~ " ',' . '" :.~ ",,,,-4 ~:[~ I...., ~~t, .~\~ ,~ '. ..~~t '. ... '.' ./rf ':.':':'b"~ ..'.;;.{: ,~ ~. -,'" .;j::{:, "~ '.~~ :...~~ .,.' "'.tN ',;.~ ,':'-1 '>i~~ " ) ~, ......... "D':~ 0,,\ 1: ~ " j~ . ~f~l ~': .... ,2" !.?';, , , ;.:'~( l:~ '~ .';;~; I . I . j' . I J ~~. : f . t . . I". . - I' . . . . i - l :[ DLB: sky c: A~C ~\Awc.cp\il :"," ..J .' , .~.! .:<:. "1' '1: :1' ."! 'r ~ i .1. I: " ,bl" 'I' I' _'1' : p:" j' I I. .. .J f! 03 '318742'3530 !L/tH/l'::!'.:J':! lb: ..f2 PAGE DOUGLAS L BOYD ATTY -'" ~- . :./,,' .', ~h'~ _k : .:;, , ~., ."1"- r<;I". "..4j. - ~:, "'.... ,,". K _ t{';. Wt: II [; r.;t' ~..;;..; ~~2:. I ~;i;.: "<:-... ~:.~ . , ' ~\ I ~. .,,' , ~-:,. :J'> .~. ~~.~: .f.'. _ f;.... " \;<i' II (~ ~':\'';' . i\'~ t ~";:',. I~.~ ~ II ~, . ,"~ . ~l~; .... " :".? ~;:, - ~, - ;;"r- ~":j. :-'" ", '.1. f , . " - ':;., .. ~~;I' t'" '. U ~: I \~, ',1 ~ . > " " .. -,.. '\' ~ " ~~, . i;: . .: -\ .... .... '1;.' > .. . ,./ _jJ;',_ ,. ;:", { J J , I ~ I Guy Blagg' Sales Manager sEt Typieal1y the iWm,U"gin" or license fee required to do business within the surrounding communities of Tulsa (Broken Arro~. Sand Springs. Jenks. ETC w) is 10% or less w we are somewhat surprised at the permitting fees pre$ented to us here. City t in bus Waste Control will not solicit $0 in this interim period. American Limits of As the permit application we have receiv has an effective start date of December 1 ~ 1 and this was receiv ,at t time of our er billing. we are Ie t.o submit the fees necessary (over 10%) on such short noticee are currently' in the process of reviewing wi our legal department our position in is m~tter ~s we were not told of any requir at e time t W~ were invited to do business within e Ci Limits of $$00 I Dear Sir: ~ ~ I pt. bert Carr Jr. Public Wo s Director sso blic Works P.O. Box 180 Owassow 55 /I~ r C. UL~ Dee er:2 ~ 1 9 ~ Ii ~ ~ "9 -it AMERICAN WASTE CONTROL INC. II 1420 w. ;";th Sf. . WL.."A, OKLilHOMA ;4~~7.38~ :(918) ~0023 . FAX (9;8) ~;;;; j~: -.- I~ IP ~ Ir Il~ j~~ 1- _.~ ~ ~ AL P.02 P.02 '318 272 4999 Isl ()O ~ ~ ,-. ~ \"l _C'\l<:'")..-NM_NM-G'lM-N<"'1 <(<e<:rorowuUUOClOWWW tCM_~t(:Im~o:;;jro~ego:;;jmf">o"'" ~ ..... ........ to ~~~8~8~~8~$$~55f5 cilt.i."f~";'."fNNcid"":"':";'cdr..: ~"""QIn~...-~...-lnro~Q~eoC":l "'4"lW ....... ~~ I!I&"""'N .......,C\4 I~ ~ <<5 N c c c ~~~ 1:")1"-1:") I.() <C ~ co ...- In rtri ..... 000 CCOOClO tONc-I N C") ..... v=;.~~ ...- .... ...- r ..... .... 000000000 W(llJ~OOOCO~Q o to .,;. cri .~ to 0 N .:::) WNC!.K:l.....NtCOQ O~N"" ""'" ~ O~OFcn C't <<:l"'i"_NNunoC")m<<:lmm-.....~ l;Qmo:rQ(J)~~t-L()CK:!t"-(J)t"-O..... c<".iN.,;.N...:a;,;It.i~tclr-:r-:...:W.,;.r..: N~WMInCOMCCmMWO"l:l'WN ..... - &! p.;: ?"- M -.i" ..... 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It! @ '0 ~ a ii f/j ID en .a &! :!!io Wo ~~ E o t) I I I I I I I I I I I I I FEB-07~2000 15:46 I J r r I I ~ l f: ~ ~ ~ ~ m ~ ~ ~ ~ u ~;>- ::r:..J ~~ 0;>- ~..J <t~ .....0 gl- "(j'"OO It)"(j'" (Jjro "t6 ~It) ~ It) 0 MN mm ...;cn M ~1~1~lml~I~lul~18Iol~18Iwl~l~ Cll ro 0::: ~1~1~1~llt)lml~lrolrol~loolrolml~l~ '0 :nJ!! .c .- E g :::l Z NININI~I~I~I"(j'"I"(j'"I"(j'"I~I~I<Dlroloolro .... ell oS Ul !!l"E c: ro 8~ ~INI~I~INI~I~INI~I~INI~I~INI~ iSl!t C::"1:I ..><:: III Cll Cll g.."O Cll ~ .!!! 3: lJ..13 NI"(j'"I<DI~I<Dlml"(j'"lool~I~I~I~lrol~l~ Cll e. Ul"1:l~ 'E 1Il Cll ro - Cll >-~3: 8 ~IOOINI(JjINIOOIOOI<DI"(j'"INI~I<DI~INlro ~~Z;;~Z;;Z;;~Z;;~Z;~~Z;~~ "U ~ c:: o ~ <!#.Io ~1~INI"(j'"IOINI(JjlooINIOOINIOOI~I"(j'"I~ ON.....ro(O(o~Nm~cnoo~N~ ~~~~~..........~...............N.....NN. ~ ~~~~w-w-w-~~~ "1:1:5 .l!l c:: u 0 .!!!e '8:n <!#.loa. "U ~ c: o .E M qflf "UJ:: @~ ~ .... u 0 .!!! E '8 aJ <J:}a. gl~I~I~lglglgl~I~lgl~ ~~~~~w-~~w-~~ "0 >. ::c "E o E in w OIOlolololmlolololOIOIOIOIOI~ COmM.....mo'"<tNOONCONcomm ~~~~Z;;~~~~~~~~~cD ~ "OJ:: lll- - c: <..1 0 .!!! E "8 a; <he. o o o N ro 2:- ro ::l .a Cll u.. .... E ... @ n. r: o +:l CJ .! 08 fJ) @ fJ)' III ~~ Oitj u. 'u 0; i:~ ~ 0 00 II>> 'in :>. itj r: <( @ @ u. I I Using present monthly revenue generation: $11,858 net reverme/3472 cubic yards collected per week:::: . $3A8/cubic yard (use $3.50/cubic yard) BlUed yaros ~ per week "" 'ZJZT ya:rds fIloi: billed ~ "" 1145 yards. (~ 49~) 0.5 00 .. 12tl 0.5 00 0.25 42 3 300 0.25 42 1 12 1 16 ;: 160 5 <<l $140.00 $140.00 6 4lS $168.00 $168.00 1 30 $105.00 $105.00 TOTAl. ::un I MONTH TerM.. $12,152.00 1 1 ,. 1 1 .. :2 2 10 ~f:J/l ~ ~ ~ I 30 3!:l <<l 42 .... i:W1 (AlIlOO) ~:l~ 42 .... ~ ~ 8 ~ ~ IS 30 I I I I I I I I I I ~~ I T~l'A~_ I ~ Marcl11, 2roO I Fee CITY OF OWASSO Commercial Refuse Col~on I I Difference (F-G) Container yards G EO: 8 A March 7, 2000 CiTY OF OWASSO Commercial Refuse Collection ro Percent Change of Monthly Fee There is hereby authorized to be issued to any qualil1ed person, under the terms and conditions hereof. a Waste Collector Permit which shall specifically authorize such person possessing the permit to, under lhe control and supervision of the City. collect, remove. transporl and/or dispose of commercial solid waste and/or conslruction and demolition waste from within the City. I I SECTliJ['U I-~02 W I\STE CQLL~CTOR l'ERl\IIT I 5. "Vehicle" means any truck, trailer, semi-trailer or other equipment used to collect, remove, transport or dispose of solid waste, and over any public way. street, avenue. road. alley or highway. I 4. "Person" means cvery natural person, I1nn, partnership, ass(lciuLiol1 (II' corporation: 3. "Waste collector" means any person who collects, removes, or transports commercial solid waste or construction or demolition waste as defined herein; I 2. "Construction and demolition waste" means waste or large bulky items, such as brush, tree culLings, lumber, concrete, bricks, plulilbing lixtures, plastics and other waste genemted by construction and demolition activities; I I. "Commercial solid waste" means all solid waste emanating from all units having zoning classi licatiun other than low or medium intensity residclltialuses; I For the purposes oflhis Article the following terms shall have the meanings respectively ascribed to them herein: I PEFINITION SE{;TlON JJ"':2!l1 ARTICLE B WASTE COLLECTOR PERMIT I SedionT~J~I There shall be adopted as lIew law ami codified as indicated the following provisions; I ~tiOlll One: Part 11, Utilities, Cimpter 2, Garbage ami Refuse Collection, of the Code of Ordinances of the City of Owasso, Oklahoma, be llnd same are hereby amended a5 follows, Sec!i<m i 1 ~202 shall be amended by deletion therefrom of the words "or commercial"; I 1JIi: IT OIWAINED BY THE CITY COUNCIL OFTlm CITY OF OWASSO, OKLAHOMA, THAT, TO-WIT: I AN OIWINANCE HELATING TO PART n, UTILITiES, ClIAi'TER 2, GAlmAGE ANI>> !U:FUS!~ COLLECTION, (W THE CODE OF ORDINANCES OF TilE CITY OF OKLAIIOMA, AMENDING SECTION 17~202 BY DELETION OF COMMERCIAL SiTH~S TIIElmFROM, AMENDING SAm CHAPTER BY AIJOI>>TING AS NEW LA W n, WASTE PEHMIT, nm. WASTF: cOI,u:cn)H IBERM!T, nm FOR WASTE COLLECTOR PERMIT, WASTE COLLECTION REGULATIONS, SPECIAL ORDERS OF CITY MANAGlm, VNLA WFVL qlSF: OF STREETS, I~ROVmING AN IMPLEMENTATION !MTE ANI>> DECLARING AN EMERGENCY I OImlNANCE NUMBEH (>>JIi I CITY OF OWASSO, OKLAIIOMA I m ~ ^. Waste collectors who in the course oftheir business provide containers for the collection of solid waste shall display information on each container, such as a business name or trade name which shall sumciently identify the permittee providing waste collection services to the establishment using the waste container. Characters, lellers and numbers displaying the foregoing information shall be at least two (2) inches tall, one-hal f (Yz) inch wide and applied in such a way so as to hccmnc permanent. Charnc!ers shall he no lower thall twelve (12) inchcs frm!1 lhe bottom of the container and shall be in a contrasting color to the container so as to be clearly visible. ~ ~ ~ Wt\.STE COLLECTION RECHJLA.-.11QI'J_S SJ~CTlQNj 7..2Q4 I U. The permit referred to in Section 11-202 shall be issued for an indefinite period.o The fee for the waste collection pemlit shall be payable to the City on a monthly basis on or before the 15th day of the month immediately succeeding collection service provision in the ~mount of three dollars and 501100 ($3.50) per yard collected per month with compactors ulilized being at an amount equal to 4 yards charged for every I yard of compacted volume. The waste collector shall provide for the monthly remittance with a waste collector monthly report to be provided by City. Should the City Clerk determine to deny a pemlit, or revoke same under authority ofthis chapter, notice thereof shall be provided to the applicant/permittee containing such proposed denial or rcvoc<ltinn and the reasons therefore. Revocation of any permit issued under this chapter shall not be effective until the expiration often (10) days from the date of serving a notice upon permittee of such revocation, absent an emergency situationo Any applicant denied a permit, or permittee whose permit is revoked may appeal such denial or revocation to the City Council of the City. Appeal from denial of application for permit or revocation of same shall occur upon written notice requesting same addressed to the City Clerk within ten (10) days of the denial of the application for permit or, as pertains to revocation of such pennit or within ten (10) days preceding the elTective date of such revocation as above providetL In the event a permiHee shall request an appeal before the City Council oftlle City regarding revocation of such permit,'the effective dale of the revocation shall be stayed penuing determination thereof by the City Council onlle City. p J II II p Any other information deemed necessary by the Director of Public Works of the City. IL II Name of liability insurance company amI plllk:y number; <lnd, w. 9. Landfills used; II An attached schedule of all waste collection services, indicating type of solid waste collected, site of collection; 8. J1I Current state safety inspection number: 70 Packer (>>. 5, Color of cab and 4. Make. model and year ofeach truck; JlI Business and home phone number; ]. 2. Business name ami address; - Name nml home adJrcss of the nprlicnnt; I. II A, The wnsle collector permit, as refercnced nhovc. shall he iss\led hy the omcc of (he City Clerk (II' the Cily. Applicntio1\s Ill!' s\lch permit shall im;lude the Itlll(lwillg illl'orllllllioll: PERMIT ^I'I'LlCATION REVUIIZL.::rvtENl.::io ISSUANCE.UEJ''tlL\L. ~!i(,.Ll~tutLLL:~()l II Cleaners/photo finishing. Bank, Sllvings llnd loan, credit union, A TM; am!, Community Center/YMCA/YWCA/park; 14. Theater/sports stadium/convention center; Ilntel/motd; 12. Supermarket/grocery store; Restaurant/fast food establishment, etc.; Utility operations induding substations, pump stnlions, elc.; Medical facility, including labs, nursing homes, clinics, etc.; Church/synagogue; Public or private school or college; Auto/truck/boat dealer, induding salvage, repair, parts and service stations; 5. Warehouse/storage facility; Manufacturing company; 3. Apartment building/condominium/trailer park; Retail shop/shopping center; I. Office building; 17. I 16. 15. I n. I II. I 10. I 9. 8. I 7. 6. I 4. I 2. I I D. Every licensed waste collector shall maintain a full, true, current and legible list of all commercial customers that are provided waste collection services, which shall include an itemization 0 the customer's names, service address, waste container s8ze or sizes, the frequency of service measured in days peR" week, and a brief description of the type of customer or client bdng served, such as: I 4. Comply with all other requirements and restrictions imposed pursuant to the rules and i'egulatkms of solid waste management adopted by the City Manager or City Council of the City. I 3. Be required to be reasonably dean and sanitized ifthe vehicle is declared to be a health hazard by the (,ity~County (-Ieallh Department or its duly authorized representative: <lml. I 2. Be at least one hundred (! 00) feet from ;:my residential building. if parked over six (6) consecutive hours, while containing a partial load OfSlllkl waste; I I. Be constructed ami maintained in such a manner m; will prevcnt any solid was!e from falling or blowing out oCtile vehicle on to any public way, slreet avenue, alley, highway, or any other or when being loaded or unloaded and shall be and covered to any spill, fall or blowout fl'om the of collection 10 the point or I1nal C. AllY vehiclc u::;ed in the collection, femovnl. tr:1iIsportntio!1 Of disp{lsal of solid waste I shall : I II. No persoll shall colkd allY solid Wtlstc illSidl' lhe !:orporatc limils oCthe !:ily within six hundred (600) fect orany residential building unless it is ancr 6:00 A.M. and before 10:00 P.M. I I 2780.403,0111 w..lo enl reflllil Ronald D. Cates. City Attorney AI'PROVED AS TO FORM: Marcia Boutwell, City Clerk ATTEST: By: ~ Mark Wilken. Mayor CITY OF OWASSO, OKLAHOMA PASSED this 4'h day of April, 2000, wHh the Emergency Clause voteo ami approved separately. Section 1'90ur: Due to the absence of provisions regulating private commercial solid waste and construction and demolition debris collectors an emergency is hereby'declared to exist whereby the provisions ofthis ordinance shall become eITective immediately upon passage and publication as provided by law 2000. ~!<!lli~n Thrill The provisions oflhis onlimmcc will be implemented beginning May I, Il is unlawful and a public offense for any person to haul or lram;port any trash, refuse, ruhbish, garbage .md/or waste upon or over !lny of the streets, alleys ur highwnYllllf the City unless such person shall first have procured a permit as herein provided. USe OF STREETS SUCTIQtlJ1~20(! The ofthe is autlmrizrd and directed tll rules and governing the collection of commercial solid Wl1~te ami cOilstructiem and demolition waste within the City by waste collectors. Application for and acceptrmce of a waste collector permit shall be deemed to constitute the permittee's acceptance oftlle provision oJthis chapter as well as any rulcs and regulations promulgated pursuant hereto. Failure to adhere to the provisions of this chapter, or any rules and regulations promulgated pursuant hereto shall constitute grounds for denial or revocation ofthe permit F. No person shall collect, remove or transport solid waste, including hazardous waste. in a manner so as to scalier or spill such waste, either at the point of collection or while transporting the same for disposal unless such waste is immediately retrieved and removed in its entirety. Immediately afl.er collection, containers which have been used to store solid waste shall be closed, with each lid 01' caller being reasonably E. Any vehicle used in the: collection, removal. Iwnsp\lrtation or disposal of solid waste within the jurisdiction and control of the City shall be subject to reasonable inspections initiated to insure compliance with this section and conducted by duly authorized inspectors of the Department ofl'ublic Works, the Police Department or tile City-County Hcalth Department I comlitig\sum-OWS.awc YOU MAY SEEK THE ADVICE OF AN ATTORNEY ON ANY MATTER CONNECTED WITH THIS SUIT OR YOUR ANSWER. SUCH ATTORNEY SHOULD BE CONSULTED IMMEDIATELY SO THAT AN ANSWER MAY BE FILED WITHIN THE TIME LIMIT STATED IN THIS SUMMONS. C~ffi~ wj\~~MffR, ~9t1HniG~nty BY~-L~ 4 - Deputy Court Clerk This Summons and Order were served on 9:... Y~.?I @J f t u (Date of Service) L4/A (Signature Service Agent) ( SEAL) day of August, 2001. Issued this 31 You have been sued by the above named plaintiff(s) and you are directed to file a written answer to the attached Petition and Order in the Court at the above address within twenty (20) days after service of this Summons upon you, exclusive of the day of service. wi thin the same time, a copy of your answer must be delivered or mailed to the attorney for the plaintiff. Unless you answer the Petition within the time stated, judgment will be rendered against you with costs of the action. TO THE NAMED DEFENDANT: MAYOR OF THE CITY OF OWASSO City Hall, Owasso, Oklahoma RALPH W. WATKINS (PSl.-GG-113) LAURA ROBERTS (PSl.OH54) NSTATiWICE I.IOENSES" Douglas L. Boyd, OBA #1020 1717 East Fifteenth Street Tulsa, Oklahoma 74104~4565 Telephone: (9 ) 742-9580 ATTORNEY FOR PLAINTIFF: . a '<> ) ) ) ) ) ) ) ) ) ) ) '<"l-:...." 5 04 2001 CJ Case No. vs. '>.'''." ffff p '~~ . r-, , / .';: jf r"/~r?r;717'r.tr-' ! "( , !..i':"L;...i'../LiJ//'~ t l OUNTY "'_"""""1 c... S[p 042001 Ii/ }~: ~ AMERICAN WASTE CONTROL, INC. an -~"' . . , IN THE DISTRICT COURT IN THE DISTRICT COURT WITHIN AND FOR TULSA STATE OF OKLAHOMA COpy FOR SERVICE from within Owasso, During a typical month, American will collect, dispose of such commercial and construction and demolition waste 30 cubic yard capacity and 2 trucks to collect, transport and 3. American utilizes open roll-off containers of 16, 20 and within the city limits of Owasso. A portion of its business is conducted and demolition waste. and disposing of solid waste, including commercial and construction 2. American is in the business of collecting, transporting relief against Owasso. within Tulsa County, Oklahoma. American seeks declaratory relief pursuant to 12 o.s. S1651 et. seq. American also seeks injunctive Owasso is a municipal corporation business in Tulsa, Oklahoma. principal Oklahoma, wi th the state the laws and z a corporation 1. and states as of O'ltlaSSO ('uO\vasso"), al cause (!UAmericanW!) , COMES NOW the Plaintiff, American Waste Control, Inc. PETITION FO!L_nEQL~'rQRY JUDGME~ AND INJU1iC_TION h ;) Case No C AMERICAN WASTE CONTROL, INC, } an ,) ) ) ) vs. ) ) CITY OF OWASSO, an OK~anoma ) ) ) ) IN THE DISTRICT COURT WITHIN AND FOR TULSA COUNTY STATE OF OKLAHOMA 2 and pays Owasso an average of $4,300.00 per month permit fee. commercial and construction and demolition waste from within Owasso ing solid waste by Owasso and now collects approximately 25% of the 6. American applied for and was issued a permit for collect- the letter is attached hereto as Exhibit "Bul. such commercial and construction and demolition waste. A copy of in order to continue its collection, transportation and disposal of requiring American to obtain the permit provided by said ordinance informing American of the adoption of Ordinance No. 638 and 5. On April 17, 2001, American received from Owasso a letter Exhibit IIAUI. A copy of Ordinance No. 638 is attached hereto as a permit. such has first the city of Owasso, or highways of waste over the streets, al or offense to a publ rate; and collected, with waste at four (4) times cubic yard for such waste permit being $3.50 maintain an indefinite period of time with the monthly fee required to for permit be . , a waste of Owasso, 1 the waste fro:m or or collectg remove, 0.1 , thatg No one No. 638, 1 4, 2001, OWasso On 4. OWasso. limits waster generated by approximately 45 customers, from sites within transport and dispose of commercial and construction and demolition ,. 3 one col 'tax 1 and vo a 1 on 8. 7. No inspections of the vehicles of American nor any other actions have been taken by Owasso to insure compliance with any of the provisions of Ordinance No. 63Bu than the collection of 4 ~ comlitiglpet.-ows.awc 74104--4565 (918) 742-9580 (918) 742-9530 the Court grant to American all other relief to which it may be entitled. the city limits of Owasso. (See Affidavit of Guy Blagg) waste, generated by approximately 45 customers, from sites within transport and dispose of commercial and construction and demolition from within Owasso. During a typical month, American will collect, dispose of such commercial and construction and demolition waste 30 cubic yard capacity and 2 trucks to collect, transport and 2. American utilizes open roll-off containers of 16, 20 and Blagg attached hereto.) conducted within the city limits of Owasso. (See Affidavit of Guy A portion of Anlerican's business is and demolition waste. and disposing of solid waste, including commercial and construction 1. American is in the business of collecting, transporting UNDISPUTED FACTS lows: as to the ) , of OWasso , summary j moves the ) 9 ( intiff, American Waste 9 Inc. COMES NOW PLAINTIFF'S FOR SUMMARY JUDGMENT AN~~~~BINED BRIEF_~ .Jane P. ) ) ) ) ) ) ) ) ) ) ) CI'I1Y Case No. CJ 2001-4 53 VS0 , P DI,0.""l'PT0.rr., norTT-.'r-""< 'V ~ "oC 1,,; J '" , K' 1"-; J _.~ r; u !.::o"....;".-".. COUN'J1Y~ l! {.'~''''' IF 1,1 - ~ I;". ! , 'W.. .t"-JI lWG ;] } 2001 8~LL Y I-{OWE S:cil7!i, ClJur:r CiJ:;,1'i I ,jArt;: Or: OKLI\ IWGI\ (';I)IINrl" AMERICAN WASTE CONTROL, INC. an -". . .--. __u_. ~- ~ ---. IN THE DISTRICT COURT WITHIN AND FOR TULSA STATE OF OKLAHOMA 2 actions have been taken by Owasso to insure compliance with any of 6. No inspections of the vehicles of American nor any other permit fee. (See affidavit of Guy Blagg) within Owasso and paying Owasso an average of $4,300.00 per month 25% of the commercial and construction and demolition waste from ing solid waste by Owasso and currently is collecting approximately 5. American applied for and was issued a permit for collect- affidavit of Guy Blagg) in order to continue its collection, transportation and disposal of such commercial and construction and demolition waste. (See requiring American to obtain the permit provided by said Ordinance il1.forming American the adoption of Ordinance No. 638 and from Owasso a letter On April 17, 2000, American 4. (See a permit. has the of Owasso, un of or waste over the streets, al sol or to a unlawful that . , (4) times , with compacted waste $3.50 t::o of an f'or be t::hat a waste collector of OWaS~H), 1 waste from or sol of or , remove, No one al No. 638, which On April 4, 2000, Owasso 3. (See Affidavit of Guy Blagg) 3 Oklahoma municipal corporations are also given the power to tax in certain situations. 68 O.S. S2701 et. seq. However the imposition of those taxes requires the approval of a majority of its citizens at a general or special election. A. A municipal governing body may levy and collect a license part as follows: occupations enumerated in 11 o. S. [;22-1.06, which reads in pertinent One such power is the power to collect a license tax on certain The general powers granted Oklahoma municipal corporations are contained in sections 22-101 et seq. Title 11, Oklahoma statutes. OK 98, 498 P.2d 1395. ~~ Southeastern O&lahoma Industrial Authori~, 1972 9 P. 1979 OK 48, 593 or to and can but no inherent power nor An Oklahoma municipal ORDINANCE 638 IS ILLEGAL AND VOID SINCE A LICENSE TAX MAY NOT BE IMPOSED ON WASTE COLLECTION AND SAID ORDINANCE IS A REVENUE RAISING MEASURE 747. 58p 876 P. eN 1994 OJ\: es 13p :Rul(~ favor of t.hat j Court shall render the of as a led to j the as 1 If no ARGUMENT AND the permit fee. (See affidavit GUY Blagg) the provisions of Ordinance No. 638, other than the collection of 4 City of Shawnee v. Reid Bro., 1949 OK 82, 207 P.2d 779, at page 780: raising measure. The controlling principle of law is set forth in forceable for the reason that it is undeniably a prohibited revenue 11 O.S. S22-106, the subject Ordinance would be void and unen- Even if the occupation of waste collection was enumerated by It has been the policy of this court without exception to construe the above statute [now 11 o.s. S22-106] strictly and to limit it to the business therein referred to. (Emphasis supplied.) Muskogee, the Court held at page 54 as follows: parte Unger, 1909 OK 247, 98 P. 999. In Cain's Coffee v. CiUuot 450, 44 P.2d 50; Ex parte Stewart, 1933 OK 63, 18 P.2d 1054; Ex the corporation. cain's Coffee Co. v. City of Muskogee, 1935 OK resolved against power granted to a municipal corporation is the any reasonable doubt as the of power IJ not not to be extended to construed/j - :un; must be The cases uniformly hold that an demolit collecting commercial noted that the occupation an so~~c~~ors. ~ne ~axes so and shall be benefit of municipal as the may direct. tax on auctioneers /j contractors /j druggists /j hawkers /j peddlers /j bankers /j brokers /j pawnbrokers /j merchants of all kinds/j grocers/j confectioners/j restaurants/j butchers, taverns, public boarding houses/j billiard tables, bowling amusement /j /j hacks u /j omnibuses /j the municipality of 5 45 customers utilizing 2 trucks. The revenue being generated from as a "permit fee". American collects such waste from approximately waste collected by American from within the city limits of Owasso cubic yard tax on all commercial and construction and demolition In the instant case Defendant city seeks to impose a $3.50 per tion. police in patrolling private clubs was not an expense of regula- fee from $600.00 to $1,200.00 after finding that the time spent by Court struck down an ordinance which raised the annual private club In that case, the Oklahoma Supreme 1979 OK 118, 599 P.2d 406. illustrated by Red Slipper Clubu Inc.~y. cit~ of Oklahoma city, Where the exaction is imposed under power regulate or in the exercise the police power, as distinguished from power to tax for revenue, as ex~ plained, the 1 obtains that sum levied cannot be excessive nor more .than necessary cover the cost of granting of ing proper police regulation . .. The strict application the rule by Oklahoma courts At Section 1102 of the same text in reference to the amount that may be imposed, it is stated: f good. As stated in McQUJoll Sec. 1089: It is conceded that power to impose a license fee rests upon a proper exercise of a city's police power as distinguished from its power to tax for revenue and that the ordinance is sustainable only under the rule that a municipal corporation under its power to regulate certain occupations or businesses may license and charge a to cover the of regulation. 6 OWasso. revenue col ions Ordinance not dedicated to any purpose. is assumed that a part of the revenue ~s cover the issuing the license. However this cost a de minimis amount. for the waste the Ordinance is simple. (See copy 01: t:.ne Appl to Defendant city" s April 17g 2000.) Its ing is by necessity simple. Because the permit is to issued for an indefinite period of time, only one processing is required. Likewiseg the regulations which govern the collection and disposal of construction and demolition wasteg as stated in section 17-204 of the Ordinanceg are not complicated and are easily enforced by ~xisting branches of Owasso governmentg such as the Police and city Health Departmentg without additional expense to Owasso. The regulations require, inter alia: that roll-off containers be labeled; that solid waste not be collected within 600 feet of a residence before 6:00 a.m and after 10:00 p.m.; that the vehicles used to collect trash be constructed so as to prevent solid waste from falling from or blowing out of the vehicle; that revenue the Americang who collects 25% of such waste within Owasso, is alone approximately 7 interest on all production from wells within the city limits, In addition pay to Hartshorne a 1/16 of 7/8 overriding royalty operate an oil and gas well within the city limits of Hartshorne, the operator must pay $100.00 annually, post a bond, and in Hartshorne enacted an ordinance which provided that to drill or attempt as stated in city of Hartshorne v. Marathon oil CO ..P supra. thinly veiled attempt to generate revenue by enactment of the Ordinance is reminiscent of the city of Hartshorne's similar Owasso's Priddy v. citY- of Tulsa, 1994 OK CR 63, 882 P.2d 81. power of taxation and not the police power that is being exercised. collector. In such a case the presumption is strong that it is the of qualify as a waste the license insurance and payment the of an 1 important the to in enforce the re~ulations. inspections nor taken other actions no Owasso has months s the 15 that 1 It not Hea . , 1 a 1 ma the 1 . , z a to if of solid waste; that the vehicles be reasonably clean and sanitized parked for over 6 consecutive hours while containing a partial load the vehicle be parked no closer than 100 feet from a residence if 8 provides as follows: This is clearly a violation of 47 o. S. &1148 which permit. makes it an offense to even haul trash through Owasso without a collection of solid waste within the city limits of Owasso, it Not only does the subject Ordinance raise revenue from the It is unlawful and a public offense for any person to haul or transport any trash, refuge, rubbish, garbage and/or waste upon or over the streets, alleys or highways of the city unless such person shall first have procured a permit as herein provided. provides: section 17-206 ~Use of streets~ of the subject Ordinance ORDINANCE 2340 VIOLATES TITLE 47 O.S. ~114S regulation. dependent entirely on the amount solid waste collected by American and bears no relationship 'to the cost of licensing or 1 Owasso In this case, amount A current subsisting certificate of insurance in the amount of no less than $500,000.00 be deposited with the court clerk.~ These conditions are not contested and we believe under city police power they constitute adequate physical regulation to protect the public's welfare. Any further fees in the shape of required royalty payments must be considered revenue producing taxation forbidden statute. and unenforceable the Oklahoma Supreme Court held at page 99: holding the overriding royalty provision of the ordinance invalid 9 Title 47, S 1101 et seq. 2 Tulsa passed an ordinance, the principal purpose of which, was to ~97, is a recent case interpreting the above section. The city of Miljack" Inc. v. city of Tulsa, 1992 OK CN APP 9, 839 P.2d in traffic is heavy continuous and the powers given authorities regulate vehicles offered to the public for hire or proces~ sions! assemblages! or parades in the streets or public places shall remain in full force and effect. Local authorities may set aside a specified public highway or highways for speed contests or races to be given under proper restrictions for the safety of the public and may exclude by ordinance or regulation vehicles used exclu- sively commercial purposes from the parks and parkways of this state, provided such ordinance or regulation is applicable equally and generally to all other vehicles used for the same purpose. The local authorities may exclude vehicles from any cemetery or ground used for burial of the dead. cities and towns may regulate the speed of vehicles within their corporate limits; and that as to streets and highways within the corporate limits which have been constructed or recon- structed with state or federal funds, local authorities shall have joint authority with the Transportation Commission to establish or alter speed limits. No local authority shall impose speed limits of any such street or highway substantially lower than those justified by the highway design, capacity, and traffic volume as deter- mined by engineering studies. A municipality may issue licenses authorizing the parking or unloading of vehicles in zones on streets restricted for loading, unloading or commercial use. The local authorities of cities and towns of this state shall have no power to pass, enforce, or maintain any ordinances, rules, or regulations requiring from any owner to whom this act is applicable any tax, fee, license, or permit for the free use of the public highways or excluding or prohibiting any vehic regis- tered in compliance with act or the accessories used thereon from the use the public highways, and no way contrary to or this !:2 now - or 10 regulate waste collectors; and it illegally prohibits use of the hundreds of times in excess of that required to license and authorizing licensing taxes; it raises revenue in an amount a license tax on an occupation not enumerated by the statute The subject ordinance is clearly violative of law. It imposes CONCLUSION at page 55: Equity by injunction will interfere to prevent the enforcement of an illegal and oppressive ordinance where it is made to appear that valuable property rights are invaded and irreparable injury will result from its enforcement. rule is set forth in Cain's CQt"fee__CQL v .~i ty of Muskogee, supra lawful business thereby irreparably damaging it. The applicable right conduct a Ordinance against American interferes with subject clear that IS ENTITLED TO INJUNCTIVE RELIEF The road question here was uncontrovertedly shown to be a road used by the . As such, 47 O.S. . 1985 S1148 is appl and Ordinance 16822 199: court judgment In of a to and an off~a lees the :Eee. f the a 'l'hat is f the more use of the road to the highway use on a ca were to contract with the city Tulsa or the Tulsa Airport Authority. fix a license fee on those who did not have a lease or concessional 11 eomlitig\mot.sjow .awe (66dU~BA #1020 1717 East Fi teenth street Tulsa, Oklahoma 74104~4565 Telephone: (918) 742-9580 Facsimile: (918) 742~9530 Attorney for Plaintiff able and oining Owasso from the enforcement of same against subj judgment i L this fact for section 17~205 of the Ordinance provides in part that: liApplication and a col permit shall be deemed to the fS of the of s a \1J'ell as any rules and regu II streets of Owasso. The author of the Ordinance no doubt recognized 4. On April 4f 2000, the City of Owasso enacted Ordinance the city of Owasso. waste, generated by approximately 45 customers, from sites within transport and dispose of commercial and construction and demolition from within Owasso. During a typical month, American will collect, 30 cubic yard capacity and 2 trucks to collect, transport and dispose of such commercial and construction and demolition waste 3. American utilizes open roll-off containers of 16, 20 and conducted from within the city limits of Owasso, Oklahoma. A portion of American's business is and demolition waste. and disposing of solid waste, including commercial and construction 2. American is in the business of collecting, transporting ("American II) . Manager American Waste Control, Inc., L I am the sworn my Iu ) ) sSG ) COUNTY OF TULSA STATE OF OKLAHOMA Jane Po AMERICAN WASTE CONTROL, INC. ) an 0) ) Plaintiffu ) ) vs. ) ) CITY OF OWASSOg an ) ) ) ) 2001-,4653 Case No. IN THE DISTRICT COURT WITHIN AND FOR TULSA COUNTY STATE OF OKLAHOMA Oklahoma Department of Transportation. inspection by the Federal Department of Transportation and the 7. That the trucks belonging to American are subject to an average of $4,300.00 per month permit fee. demolition waste from within the city of Owasso and paying Owasso of approximately 25% of the commercial and construction and ing solid waste by City and is currently collecting and disposing 6. American applied for and was issued a permit for collect- Exhibit ilB". the city of Owasso. A copy of the letter is attached hereto as such commercial and construction and demolition waste from within in to continue its collection, transportation and disposal of to the AIDer No. 638 and of the ion of from Owasso a letter 1 17, 2000 Q On 5. sa . u a O'\tlasso; demolition waste from within the city limits of collect; remove, transport or dispose of commercial solid waste or No. 638, which ordinance provides, inter alia, that: No one may 3f i day -~" me stV'orn SAI'1'H NOT. cooilitigWf '{)\vs.awe My Commiss : 2001. F'tJRTHER EXHIBIT .!l "All D D :1 l'here i:1 ~ ~ to be Wued to limY qualified ~n.1l1'lider the lenns md coOOitioml hen or. ~ W~ ColltlCUlr Penni! which .MIl sp:citicaUy 1Ilu.tfwrize wch perron ~lli the p<<:mUl W, under the Clmcrol and 1!1l~ of the City, rollect, remove, tmnsport rmd/or dl~ of comm~iaJ solid wure 91l&Of eonmucdoo and demoUdoo WlUtl3 from within tOO City. S. "Ve lide" ~ MY' md. tnIiler, ~i-nikt OS" ~her equipment wed to eollecl, reml)'IJe. ~~ Of ~ of $llUd ~ aM@VU my public 'Mi'J, ~ lI!~lre, roM, alley Of high..w:y. SECTION 17-:m W j\S1E COLLECTOR PERMIT 4. "~00fi" ~ ft:'JU'I ~ ~ arm. ~ip,lWlOCiatioo (lf~ioo; J. "Wisre ooI1eetM'" ~ MY pmon .....00 ~ m:'OO~ Of ~ru commercial $OM ~ Of I~Q~tm::doo ordcmolilioo ~ u ~ ~n: 2. "Co~!Wd demolition ~.. ~ WMte or illKgt: bulky items, 5Ul:h IilS bMh, tree ~ It~,~, brida. plumbing~. plms!ics mnd otber ~ genemled by ~ mid ~lidoo ~vi~: i. "Commm:lm! frolic.! wmsW" ma.w dI wlid ~ ~ from all units imring :waing cWmifiwioo ~ ilier tbm low or medium ~ty ~idm1iml ~; For the ~ ofthi! Afticlt'!llhe foilmNfug ~ mhrili MW: !he meMIing.!J reipeclively .uai~ to ~n bmin: . ~ml pEFlNmON ARTICLEB WA~COUEcroRP~ I!Illl MW ll!l!.w ud oodilled I!Illl indi~ ~ ~~lbe . BE rr ORDAINED BY Tm CITY COUNCIL OF 11m (,Tt'Y OF OiKLAHOiMJ", mAT@ 11)..WIT: ~~ PlUi 11, U~ ~1. ~c &1M RJ:!\m! Col~ @{theCooe oforo~ rnftbeCity @f~. Otd~ Iwmd ~ 1m: ~ ~ ti folklws, Section 11.20:: ~I be ~ed by deU:tlon ilimlftool, or~ wooh "Of eommertial"; AN ORDINANCE rotLA 'nNG 1'01 PART 1'7. UTIUTIES, ~ 1. GAMAGE AND REFUSE COLLECTION. OF "fm': CODE OF ORDINANCES OF mE crrv OF OW~ O"Kl.AHOMA. AMX.NDmG SECTION n.11l2 BY DltUTION OFCOMMERCAL 8~ '1'UEREFROM. AMENDING SAID CB.A1'TER BY ADOP11NG AS NEW LAW W ASTI. COl.LECTOR PERMIT. APnJCAll0N roll WASI'1t COLLECTOR POMIT, FEE FOR WA1S;rE COLLECTOR PERMn'. W~ RlOOULAnONS. 8PE(.~ ORDUS OF crrY MANAGElta UNLA wrm. VSE OF PROVIDING AN ~AnON DATE AND DttLAmNG AN EMERG&NCY ORDiNANCE NUMBER 638 ~ ({J fP'i/ CITY OF OWA,SSO, OKLAHOMA @J04 04/11100 15:22 fAX 2724996 A. Wi_ ~wOO in~~ ofthcir~provide~~ for the oo~ mSlIlid ~ lIhdI ~ ~ Mc:ada ~. sud1/1lS III ~ 1Wl1e<< ~ ~ whim,,1 ~ identifY 1M pmnittee providftll mOO: oolledioo ~ 00 die ~ I~ aM wute c:oolainef. ~ Idt.ern IWd lItl1t1bm di9p]ayin8 the foregoing ~ mhllll:le at ~ two (2) inches caU, ~<*) men wide md ~ in ~ II way 00 a to ~e ~ ~ shall be no Iowcz tlw1 twdve (12) i.nehes from <<he 00twm oft.f:w (~and ldmIl 00 in III cootrIWlng color to 2be container w ~ to be dwiy vinibk. 8. 1'be ~ refum:d w in Section 11-'2.02 Will be u~ for 1m indefinite period.. 1k f," .fW ~~:t: oolkWoo permit ~ 00 ~le to the Clty M III aoornhly !mil 00 Of bdoo: riM: ISI@J dq o(the :oomh ~I)' ~ roUectioo ~ ~ in the mnoWlt of!.hree OOIllm &md SOIlOO (S3.Sil) p<<)'Vd collected pt'lIf mooth with <<:OOlplllC~ udlimi being 1M If! ~ ~ tJ 4 ~ c~ fur ew.ry I ywJ of~ volume. 1'bl: ~ oolkdor :lbWl proWIe thl'the mootbly remi~ with II, ~ oolledoc moo!hly report to be provided by City. SOOWd he City Clm ~ CO deny m permit.<< rewke WM ~ .!Wdl<<i!y of this ~. ~ ibttoofWll he ~ to tb.Il ~~ ~ m:h proposed &nW M nMX~md the ~~. ~ of MY pemUt bsood under lIDs ~ WlIl1!1lt be dfedivc until tho ~ oftM (10) d&yI from the date of mving IIllWice upoo pemU~ @fwch ~ioo. ~ M ~ $it1WitJn. Any appIitlllU denied Ii pem1it. l)t ~ w:~ ~ UI ~ may ~ Iueh dmW<< ~ 00 the City COllllCil of tM Ch1. App a! from denim! @f ~iWUm foe pemtit Of ~tioo of IWM shall 0l:CW' upon writtm nodoo I~ ~ ~ 00 the City Clerk within ten (10) days of the denial of the ~ (<<pmnit elf, U pem.im W ~ of mch penM <<within tm(IO) da}f$ ~i~ dw<< a~ve ~ of $'iICh ~ a Move provided. In the ew:nt !R pegmiu," slvill ~ M mppnd ~ the City Coo.ncil oflbc Clty'~ ~ ofwcl1 pmnil" the effildive ~ (.(the ~oo sMlI 00 Dyed ~ ~oo thawf by die City COOlER! oh~ City. SECTION 1'7-:~ WAEl"E COLLECTION REGUl.ATIONS I i. Any ~ ~iM ~ ~ by Ih@ Dimctor@[Publit: W@rb afllre City. iO, N~oflOOlity ~ ~ rmd 9. l<mdlfdll1: of wild wla$le .4.M ~ .!dredule of filii W!i$ie roU~ ::ol1~ mte of roll~oot I, ~nl m~ 1. (;, ~ " s. :::ob@f~;md 4. ~g! ;md yut @f ach :li,3mlll~ Md boos@ '1 :)ttlri~~tUui~; t ;'-l~ Md hmne ~ gfthe Ii, TIle ~ rol.kdor pe:m.rit" mll ~ !i!~, ~l be i~ by ant: Office of tlu: Clm <<lfttl:~ City. AW~ fur:mch lllWB Al)Ch.lae tlu: in1'ormalioo: iill...C1'!OIi rNtll ~ APPLICATION REOU1R.EMENTS, ISSUANCE.IlIili!61. ~05 0-1117/00 15:22 FAX 272HHl6 11. ~l~pholo linbhing. IS. :::ommunity Center/YMCAlYWCNpark; Hi. Brmk. ~ings !Uld 10lln, credit union, A TM~ iWd, 14. Thealef/apMs !lwliumlcoovenUon ~ 12 ~~efJ~ s1ore; B J. Horellmotcl; 10. Utility ~om mduding ~om. pump mtioos. etc.; B I. ~f"d food ~isbmel1t. ~.; 9. ~icm !3cHity. including lYIOO, mning homd. diNes. ett:.; 8. :tmn:bI~o~; " ~c Of private ~hool or colh:ge; 6. I\uiohmddl:)()& demer, mciw:ling salvage, upIlir, pa1U lIlt! ~ slntioos; S, Wm~sto~ facility; 3. l\p&1mfflt lmi.ldinwcondomWum/tntiler 4. ~w~wm~ 1. ~B .mop/shopping center; I. ::I i'&e building; . 410 Comply wid! id1 otOOr ~ts tmd remictimu im~ ~Il@ !hi.: roles mld ~~ i)tll~l.ld ~ ~ ~ by lIw City ~ w City Cmmcil of the CiIY. D. E~'Y I~ ~ ool~ mMll tntdnWn II, full. troe, ~ Md Iqgib~ Ii~ of all (;W~ tluil m providOO ~ wlkdioo ~ wbicl!. WII incltllk 1m @ dEl c~'ll ~ ~ ~ ~ ~ m @I' $i~ lhe freqUt:llC}' ((>>C~ mwmed in, ~ pm" ~ tmd la @ftb€l ~ walU: IO~ H~ili. 3. &l lw'Md ck:M mud llMitiud lf~ ~ is OO:~ 10 be II, hal!h Of its ~ :LBe ~i~ (6) over 1. 84:: e;00Sl~ mdI ~~ itl wch III ~!!Cl) win pn;venllWY wlid ww;tc from &Uing or blowmg.1JoU1 oftM vdtic!e 011 W my public '!Jlftfl'Y, ~ !!lw:n!l4:, liIlIey, highWl'lY, << rmy ~~ pubiw M' when ~ m" ~ed lU'td dulll be . i@ my will. fiill or blow out from \hg: shllll: C. An) vehicle W>td in the wllectioo, remgwl. ~mlion or dispom of solid wasik: I B. No IletsOll.mall collect MY wEd waste iMide the corpornlc limits oflbe city wilhill six ~(600) l:dofmy re5identW building tmldS il is l!fter6:00 A.M. Md befol'e 10:00 P.M. l4J06 114/17/00 l5: 22 FAX 2724996 1~.<ri_..,j~ =~ D. em: I., City Attorney By: ~t.uJ. (J~ M&t Wilken. Mayor CITY OF OW ASSO, OKLAHOMA ~bm. Doo to the s~ (jfprovwom! reguliWng priwte ~i!l1 solid wute IWd ~.~ IWd deroolitioo ~ collec~ m emcIgO'.ll:)' is hereby ~l&red to exisa ~ !he pl'tmsiom of this; ordinmc.e !lMllllfJComt: effective imm.ediatdy upon ~e and pWlicar.W!.l U J rovidOO by law PASSED thi3 4l!l day ()f April, :WOO, with the Em~y Chll.!sc voted Md approved ~. 2000. 1'00 ~ ofi..lili! omi~ will 00 impl~ied beginning M!1Y I, It il\! mdmful Md Ii publk o~ ~noifl. to MuI m- my mNl~ pmqc 1HJJY0f ~ ~ m-OVtt my (lfthe~, 1!I1I~ Of @Cthe City ~ ~ pa'1Ilm au fint have !'l perntit &\ ~ provided. nw Ci~1 ti!~ smd ~led W ml~ llmd theml~ $Clid ~ Md ~ llmd daoolitioo ~ within rh~ City by 'lllfUttl mll~. ~lion fm- md ~ cflll ~ mllectOf ~t dWi 00 ~ to ~tute the p::m1i~'$l ~ @ftoo provimoo oflhis ~ as 1AIdiu M)'~81iM~mw~ ~~. Fmlw:e I@ ~ tn the provimoos @(~~,@l'my~imd ~ prom~~ ~ WI.I.l ~Me IP"~ fm-dMW m- ~~@flbe pmnil F. No i~ duill ool.i~ remove 01:' ~ molid wate" mclwding ~m W~, iifl. a ~ 00l ms m ~ 1Iucl1 ~, eitiw' at the [If mllectioll m while IrnFI$portllilg tOO~ ~i1I ~&nd~mitil ~ whi.ch bVf! beUI ~ to $:.1.00;: OOllid ~ dmll 00 wh~ @lI ~~ ~. E. Any vehicle u:kd in the oolledion, removal, tnImpofUltion or dispoSlll.! of solid waste wilhin !he juris.1iction and coolrol of !he City mall be subject to reasonable inspections initialed 10 l.o.mre rompu.ll!~ with tlW; ~ md conducted by duly 1Wilimi:red inKputm~ of !be f!}f ~Mie W~, tM: folia: @t' the City.coOOl.)' Health DepJU1meK1t. fm07 04/17/00 15:22 r.~x 2724996 ~ .tJ .tJ .fl EXHIBIT /I r""'II. II Section 11~206 ofth~~ ordirumce states: It is unlawful and a public offerJSe for any person to haul or traI:Isport any trash, refuse, rubbish, garbage and/or waste upon or over my of the streets, alleys or highways ofthe City unless such person shall first have procured a pennit. .. RemlatioM for the collection of waste are listed (Section 17-2(4). " fermit application requirem.ents are detailed (Section 11-203A); A waste collection pemrit ~ shall be payable month)y (on or before the 1 Sill day of the montl: immediately following when collection service was provided) in the amount 0:: $3.50 F yard collected (Section 17~203B); md " " A WliLSt~ CoJlector Permit will be issued for the collection, removal, ttm1Sport ami/or disposal <<: f commercial. solid waste and/or construction and demolition waste from within th~, city (Section 11-202); Provisions of the oroaw:u:::e ~ effective May 1,2000;;md include the following: April :he Council of the City of OWalZSO approved Ordiriance (copy attached) relating to the collection of commen::::ial solid waste and romttuctionldemolition waste. With implem~tWoo of permit fees, companies meeting specific permitting criteria will be able to establish customer ~ with tile city limits. Fees fur services will! be ( d~ by each e;ompmy. Individually. customers will have the ability to determine which company provides them the most desirable type of service and cost. The City of Owasso will 00 longer bill customers. Mr. Blagg: PERMIT FOR COl.LECTING SOLID wasso 17, (91S) 212.2251 fAX(918)212~999 201 Sooth Celdaw PO &1<< 100 Ow~u@, OK ~02 04/17/00 15:22 FAX 2724996 cc: City Manager City Attomer City Clerk F. Robert Carr, Jr., F.E. Public Works Direct,>! ~ ~'-(~ Sincerely, CITY OF OWASSO PUBLIC WORKS DEPARTMENT Please review the att~hed information and application. If you should Mve any questiow, contact this office at 2724959. The City of Owasoo an obligation to protect the health and safety of citizens and businesses. Ai;, a result, through Ihe permitting process. controls will be enforced on waste collectors that ensure adequate:;md appropriate ~ce win be maintained. Waste Collector Collection and Permit Requiremenu: have been promulgated and made n part of the Permit Application for this pmpo3e, In conformance with Section 17@203B of Ordirumce 638. the monthly permit fee will be calculated at the ~ablished rate of$3,50 per yard collected. The initial monthly p-ermit fee will be payable on or be~m~ June 15. 2000. Each permitted collector will be required to submit a list of aillcx:atiom served in the preceding month using City of Owasso Form SW2-04/00 attached to this letter. A permit fee schedule to be used in completing the form is included. f'onsidered in nonCQIllx:ll1iance. Page 2 for Collecting Solid Waste April 17, 2000 14103 llV17/00 l5:22 FAX 2724996 "OiM E;WHWOO Prld",l'f9'l_ S~ by: 0- ne~&$4eal!:0~b~ei~4M4~OO~ ..,.~ ~3fltde.o~fti/~f!JJ1lfigChvfii1~~ @."$~~~P.Wi&Jgwail1W~E9~="""~~~- --. - ~ V_ - - c- ~~ --- ~_oI~ 1C8b-~ ~ ~-- u..__II_. b~& ~~ ~iI* ~~~I ~T~ ON~~ l'iJlK;y~ ~~ ~' - - ~'!'~oo CITY OF OWASSO SOLID WASTE COLLECTOR APPUCAilON ~#- ~--- ~ i~tl<WJ !'ltw!MlI<! MdreM rn__lill_ 14108 04117/00 15:.22 FAX 2i24996 04117/00 15:22 FAX 2724996 I4l () 9 ~@ I * it@} "- 3: a l:'~ o If! €&~ I ~ (J e ~l ~il g ,;rfrlllll ~1f .g@l! uS .~ .' ~ ;.:; 0 ~ 3: I :6 :> ;I! ~ ~ c ~ 0 0 ~ fi" I- .B 18 ~ J! 2: i ~ ::l!: 'S @iii (l:l Hit- I i z J ! z j~IH. I 5 1 ::I J u ...i <It 0 .a iii ~ I iii I&. i g I :!:i W ~ 1 A. @ ~ ...!I II ::c I !i 0 ::I ~ I << ~ "II: < Q ~ lID ~ .. !lIP ~ 1 I ::c z 8 I :>. oE ! I .c 'i 000 .2 :l~ 8 - lD ~8 ~ Ci fY>> E I.I.W 8 000 5~ t:: 8. w N M w ~ ~ ~ ~ ~ ~ = ~ ~ ~ ~ ~ ~ ~ ~ ~ N ~ ~ ~ ~ a:::: ~_.wo w~s eswr:msneo to means wasw and waste collection, disposal within the City on application :,t Waste collecOOn Jermlf feB~ shall be payable monthly 00 or before the 1 day of the immediately following when collection services wera provided (Sedlan 11~203B). Failure to submit the raquin~ reporting form and foo payment will result in immediate denial or revocation af the permit. Permits are renewable monthly upon payment af th~ permit fee. 4. ContaiMrn provided aoo vehh:::ms usoo to coiled: waste within the city by permitted cclledorn will 00 ~uimd ta 00 furnished and maintained in confoomllal with Ordinance 838. Sootion 11 =:~ = Waste Canadian Regulations. The ama surrounding each container will be appropriat~ maintained by the cclledor to ensure no unsecured debris is present. O::mtainern shalllJe reasonably clean and sanitized at all times. :t 1. TIle City of has an obligation to protect ~ health and safety of citizens and businesses. As g result. through the permitting process, controls wiJI be enforood on waste colledom that emura appropriate will rnaintaln~d. TIle following procedJras are promulgated in conformance with City of Owasso. Oklahof'T'la Ordinance 638. dated April 4, 2000: W8STE COLLECTOR COLLECI:ION AND E-ERMIT REQUIREMEt:ITS f4110 04117/00 15:22 FA.\: 2724996 F<liffl Il\fIf.'I-MIOO VlIDlil8~al!1I~~ A4:1~1'Ililo1li.-dI!l~t(I~~oo..~~ Nt'~_1llld ~ ~1IllC1!"I ~ In IhlI ~ 11IbIi!l_1Ob0~ 1ta!:M Hf'llll~. c P~nflU F~~ Scoodul~ l4JU 3 ....... 30 0.5 30 1 30 2 30 :3 40 2 40 3 42 0.25 42 0.5 42 1 Ff~~ ~ ~~>> E! ~ \i1l>1!1ll TlflNl di Q:;r~ A OWASSO Solid W~r.t~ Ha!JIB~r 04117/00 15:22 FAX 2724998 The staffwiU recommend Trustee approval of Resolution #2002-06. 2. Consideration and Appropriate Action Relating to OPW A Resolution #2002-06, a Resolution of the Owasso Public Works AuthOlity Authorizing Two (2) Loans from the Oklahoma Water Resources Board in the Combined Total Aggregate Principal Amount of Not to Exceed $2,604,236; Approving the Issuance of Two (2) Promissory Notes in the Combined Total Aggregate Principal Amount of Not to Exceed $2,604,236, Secured by a Pledge of Revenues and Authorizing Their Execution; Designating the Local Trustee; Approving and AuthOlizing the Execution of Two (2) Loan Agreements; Approving and Authorizing the Execution of a Series 2002B Supplemental Note Indenture; Approving and Authorizing the Execution of a Secmity Agreement; Ratifying a Lease, as Amended by an Amendment to Lease; Approving Various Covenants; Approving and Authorizing Payment of Fees and Expenses; Establishing the AuthOlity's Reasonable Expectations with Respect to the Issuance of Tax-Exempt Obligations in Calendar Year 2002; Authorizing Documents Pertaining to a Y ear-to- Year Pledge of Certain Sales Tax Revenue; and Containing Other Provisions Relating Thereto. Ms. Bishop Mr. McDonald Attachment #2 I. Call to Order & Roll Call Chainnan Brogdon AGENDA 11 , and at 4:00 Meeting filed 1 Special November 18,2002 5:00 p.m. Owasso City Hall Main Conference TYPE OF MEETING: DATE: TIME: PUBLIC NOTICE OF THE MEETING OF THE OWASSO PUBLIC WORKS AUTHORITY 3. Adjournment. Owasso Public Works Authority November 18, 2002 Page 2 Resolution No 2002-06 ATTACHMENT: Staff recommends that Trustees approve Resolution No 2002-06 authorizing a loan from the O\\(RB. RECOMMENDA TION: OPW A Resolution No 2002-06: authOlizes two loans with the OWRB; approves the issuance of two promissory notes; approves and authorizes payment of fees and expenses; and approves and authOlizes vaIious other documents and actions necessary to complete the financing. The financing with the OWRB will actually consist of two loans; one has a lower interest rate. Final amounts for all costs and fees associated with the loan closing are not available yet, so the resolution authorizes a loan amount "not to exceed" $2,604,236. OPW A Resolution No 2002-06 authOlizes a loan from the OWRB. City of Owasso Resolution No. 2002-11 approves action taken by the OPW A authorizing the loan. The OPW A Trustees authorized an application with the OWRB for inteIim construction financing for the Phase IIB project in March 2001. Interim financing was approved by the OPW A Trustees and the City Council in October 2001. In October 2002, the Trustees approved an application with the OWRB for permanent financing for the Phase lIB project. OPW A Resolution No. 2002-06 would approve permanent financing for the project. All of these projects have been financed through the Oklahoma Water Resources Board (OWRB). The OWRB operates the State Revolving Fund (SRF) loan program and the Financial Assistance Program (FAP). These programs provide low interest financing for eligible water and wastewater projects. To fund planned improvements to the wastewater utility system, Trustees approved a series of rate increases in May of 2000. That funding has paid for financing for Phase lIA improvements to the wastewater treatment facility, the Ator Relief line and the Phase IIB interim construction financing. BACKGRQUND: 1 SHERRY BISHOP HONORABLE CHAIR AND TRUSTEES OW ASSO PUBLIC WORKS AUTHORITY TO: MEMORANDUM Section 1. Issuance of Notes. The Borrower is hereby authorized to accept said loans and issue its 2002A Note and 2002B Note (collectively, the "Notes") payable to the Board. The combined principal amount of the Notes shall not exceed $2,604,236 and the interest rate on the 2002B Note shall be a fixed rate of interest not to exceed an average rate of 6.00 %, with said final principal amount and interest rate to be approved pursuant to a Certificate of Determination to be NOW, THEREFORE, BE IT RESOLVED BY THE TRUSTEES OF THE OW ASSO PUBLIC WORKS AUTHORITY, TULSA COUNTY, OKLAHOMA: WHEREAS, the Board has approved a loan application of the BOlTOwer and the BOlTower has determined to bOlTOW money from the Board for the purpose of refinancing the outstanding principal amount of the Construction Note and to evidence such loan by the issuance of (i) the BOlTower's Series 2002A Clean Water SRF Promissory Note to Oklahoma Water Resources Board in the original principal amount of not to exceed $939,236 (the "2002A Note") and (ii) the BOlTower's Series 2002B Promissory Note to Oklahoma Water Resources Board in the original principal amount of not to exceed $1,665,000 (the "2002B Note"), said Notes being secured by a pledge of revenue derived from BOlTower's water, sanitary sewer, garbage and trash collection systems and the Bailey Ranch Golf~Club (hereinafter collectively the "System") and the revenue generated pursuant to a two percent (2%) sales tax received by the BOlTower from the City, which sales tax is levied pursuant to Ordinance No. 103 of the City, as amended by Ordinance No. 153 of said City (the "Limited Sales Tax Revenue"). WHEREAS, the Borrower is authorized and has determined to construct improvements to the Borrower's wastewater system (the "Project") in order to better serve the customers of said BOlTower and in payment of part of the cost thereof, the BOlTower heretofore bOlTowed funds pursuant to an SRF interim construction loan (the "Construction Loan") from the Oklahoma Water Resources Board (the "Board"), which Construction Loan is evidenced by (i) the Borrower's Selies 200lD Interim Construction Clean Water SRF Promissory Note dated November 30, 2001, and issued in the original principal amount of $1,413,089 and (ii) the BOlTower's Series 200lE Clean Water SRF Interim Construction Bond Loan Promissory Note to Oklahoma Water Resources Board dated November 30, 2001, in the original principal amount of $935,000 (collectively, the "Construction Note"); and WHEREAS, The Owasso Public Works Authority, Tulsa County, Oklahoma (the "Bon-ower"), was organized under Title 60, Oklahoma Stat1ltes 2001, Sections 176-180.4, as amended, for the purpose of furthering the public functions of the City of Owasso, Oklahoma (the "City"); and A RESOLUTION OF THE OW ASSO PUBLIC WORKS AUTHORITY AUTHORIZING TWO (2) LOANS FROM THE OKLAHOMA WATER RESOURCES BOARD IN THE COMBINED TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $2,604,236; APPROVING THE ISSUANCE OF TWO (2) PROMISSORY NOTES IN THE COMBINED TOTAL AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $2,604,236, SECURED BY A PLEDGE OF REVENUES AND AUTHORIZING THEIR EXECUTION; DESIGNATIT-TG THE LOCAL TRUSTEE; APPROVING AND AlJTHORIZING THE EXECUTION OF TWO (2) LOAN AGREEMENTS; APPROVING A.!\ID AUTHORIZING THE EXECUTION OF A SERIES 2002B SUPPLEMENTAL NOTE INDENTURE; APPROVING AND AUTHORlZING THE EXECUTION OF A SECURITY AGREEMENT; RATIFYING A LEASE, AS AMENI>ED BY AN AMENDMENT TO LEASE; APPROVING VARIOUS COVENANTS; APPROVING AND AUTHORIZING PAYMENT OF FEES AND EXPENSES; ESTABLISHING THE AUTHORlTY'S REASONABLE EXPECTATIONS WITH RESPECT TO THE ISSUANCE OF TAX-EXE:MPT OBLIGATIONS IN CALENDAR YEAR 2002; AUTHORIZING DOCUMENTS PERTAINING TO A YEAR~TO-YEAR PLEDGE OF CERTAIN SALES TAX REVENUE; AND CONTAINING OTI-IER PROVISIONS RELATING THERETO. RESOLUTION NO. 2002-06 THE OW ASSO PUBLIC WORKS AUTHORITY 2 Section 9. Certificate of Designation. The Borrower anticipates that the total anlOunt of tax- exempt obligations (other than private activity bonds) issued by the Borrower or other issuers on behalf of the City of Owasso, Oklahoma will not exceed $5,000,000 for calendar year 2002 and Section 8. Fees and Expenses. Upon closing of the referenced loans, the officers of the Borrower are hereby authorized to disburse (from loan proceeds or other available funds of the Borrower) lillto the Borrower's Financial Advisor, COlillsel to the Borrower, the Local Trustee, Bond COlillsel and the Board certain fees and expenses, including accrued interest, accmed administrative fees, and conversion costs pertaining to converting certain of the Board's Bonds from a variable rate to a fixed interest rate, all as set forth on Exhibit "A" hereto. Section 7. Lease. The Lease dated July 31, 1973, as amended by an Amendment to Lease dated as of July 1, 1996, between the City of Owasso, Oklahoma, and the Borrower, whereby the City leased its water, sanitary sewer, garbage and trash collection systems and the Bailey Ranch Golf Club to the Borrower, is hereby ratified and confirmed and the term of said Lease, as amended, shall extend lilltil the Notes are paid. Section 6. Covenants of BOlT ower. Until payment in full of the Notes and perfonnance of all obligations owing to the Board under the Loan Agreements and the instruments executed pursuant hereto, unless the Board shall otherwise consent in writing, the Borrower hereby represents its intent to abide by and cany out the covenants contained in the Indenture, the Security Agreement and the Loan Agreements, which covenants are incorporated herein in their entirety. Section 5. Execution of Security Agreement. The Security Agreement, by and between the Board and the BOlTower (the "Security Agreement"), whereby the BOlTower gives a subordinate security interest in celiain revenues of the System to the Board to secure payment on the 2002A Note is hereby approved and the Chairperson or Vice Chairperson and Secretary or Assistant Secretary are hereby authorized to execute same for and on behalf of the BOlTower, and do all other lawful things to cany out the terms and conditions of said Security Agreement. Section 4. Execution of Se11es 2002B Supplemental Note Indentur~. The Selles 2002B Supplemental Note Indenture, by and between the Borrower and the Local Trustee (which supplements and amends the General Bond Indenture dated as of December 1, 1997 between said parties and as heretofore supplemented and amended), pertaining to the 2002B Note is hereby approved and the Chairperson or Vice Chairperson and Secretary or Assistant Secretary are hereby authorized to execute same for and on behalf of the Borrower, and to do all other lawful things to cany out the tenllS and conditions of said Series 2002B Supplemental Note Indenture. The General Bond Indenture as heretofore supplemented and amended and as supplemented pursuant to the tenllS of the Series 2002B Supplemental Note Indenture shall be referred to herein collectively as the "Indenture". Section 3. Execution of Loan Agreement and Loan Agreement For Clean Water SRF Loan. The LO&>1 Agreement For Clean Water SRI' Loan &'1d the Loan AgTeement, both by and between the BOIT'ower and the Board (collectively, the "Loan Agreements") are hereby approved and the Chairperson or Vice Chairperson and Secretary or Assistant Secretary are hereby authorized to execute sarfle for and on behalf of the Borrower, and to do all other lawful things to cany out the terms and conditions of said Loan Agreements. Section ~, Designation of Local TlUste~. The BOlTower hereby designates Bank One Trust Company, N.A.. to serve as the Local Trustee of certain funds in relation to the 2002B Note. executed by the Chairman or Vice Chairman of the Bon-ower. The Notes will be secured by a lien on the revenues of the System and a year-to-year pledge of the Limited Sales Tax Revenue, with said lien positions being described in the doclUllents securing the Notes. The officers of the Borrower are hereby authorized and directed to execute said Notes and to do any and all lawful things to effect said loans and secure said loans from the Board. The 2002A Note shall bear interest at a zero percent (0%) interest rate, plus a one-half of Ol1e percent (1/2%) annual administrative fee on the outstanding principal amount of said 2002A Note. 3 Stephen P. Gray, Authority Attorney APPROVED AS TO FORM: - - Marcia Boutwell, SecretalY ATTEST: Randall C. Brogdon, Chairperson (SEAL) THE OW ASSO PUBLIC WORKS AUTHORITY APPROVED AND ADOPTED THIS 18TH DA YOF NOVEMBER, 2002. SectioILll. Necessary Action. The Chairperson or Vice Chairperson and SecretalY or Assistant SecretalY of the BOlTower al.e hereby further authorized on behalf of the BOlTower to approve the disbursement of the proceeds of the Notes and other funds of the Bon-ower in cOilllection with the issuance of the Notes and the accomplishment of the transaction contemplated herein, and fUl'iher, to accept, receive, execnte, attest, seal and deliver the above mentioned documents and all additional documentation, certifications and insnuments and to take such further actions as may be required in connection with the transactions contemplated hereby, and are further authorized to approve and make any changes to the documents approved by this Resolution, for and on behalf of the Borrower, the execution and delivery of such documents being conclusive as to the approval of allY terms contained therein. Section 10. Sales Tax Pledge. That the Chairperson or Vice Chairperson alld Secretary or Assistant Secretary ofthe Bon-ower be and are hereby authorized to execute and deliver any and all documentation on behalf ofthe Bonower pertaining to the year-to-year pledge of the Limited Sales Tax Revenue for purposes of securing the Notes. hereby authorizes the Chairperson or Vice Chairperson and Secretary or Assistant Secretary to execute and deliver on behalf ofthe Bon-ower a Certificate of Designation to that effect. To be established Pursuant to Closing Order of Borrower $2,500.00 financial advisory fee is 1.25% of principal amount of Notes issued, plus reimbursement for out of pocket expenses in the amount of $500.00 legal fee is 1.25% principal amount of Notes issued, plus reimbursement for out of pocket expenses in the amount of$I,937.65 2 Oklahoma Water Resources Board Accrued Interest, Administrative Fee, and Fixed Rate Conversion Costs Oklahoma Water Resources Board Rating Fee Wells Nelson & Associates, LLC Financial Advisory Fee and Reimbursement For Out-of-Pocket Expenses & Legal and Reimbursement Out~.of-Pocket Expenses Banle Trust Company, NA Acceptance An..rmal Fees and Expenses Paid at Closing EXHIBIT "A" 3. Adjournment. The staff will recommend City Council approval of Resolution #2002-11. 2. Consideration and Appropriate Action Relating to Resolution #2002-11, a Resolution Approving Action Taken by the Owasso Public Works Authority Authorizing Issuance, Sale and Delivery of Two (2) Promissory Notes of the Authority to the Oklahoma Water Resources Board; Ratifying a Certain Lease, as Amended; Establishing the City's Reasonable Expectations with Respect to the Issuance of Tax-Exempt Obligations on Behalf of Said City in Calendar Year 2002; Authorizing Documents Peltaining to a Year- to- Year Pledge of Celiain Sales Tax Revenue; and Containing Other Provisions Related Thereto. Ms. Bishop Mr. McDonald Attachment #2 1. Call to Order & Roll Call Mayor Brogdon AGENDA Meeting called by the Mayor at 9:00 a.m. on Monday, November 11, 2002 and notice and agenda filed the the and on the bulletin at 4:00 on 2002. Special November 18, 2002 5:00 p.m. Owasso City Hall Main Conference Room TYPE OF MEETING: DATE: TIME: PLACE: PUBLIC NOTICE OF THE MEETING OF THE OW ASSO CITY COUNCIL Resolution No 2002-11 A TT ACHMENTS: Staff recommends Council approval of Resolution No 2002-11 approving action taken by the OPW A authorizing a loan from the OWRB. RECOMMENDATION: The financing with the OWRB will actually consist of two loans; one has a lower interest rate. Final amounts for all costs and fees associated with the loan closing are not available yet, so the resolution authorizes a loan amount "not to exceed" $2,604,236. OPW A Resolution No 2002-06 authorizes a loan from the OWRB. City of Owasso Resolution No. 2002-11 approves action taken by the OPW A authOlizing the loan. The OPW A Trustees authorized an application with the OWRB for interim construction financing for the Phase IIB project in March 2001. Interim financing was approved by the OPW A Trustees and the City Council in October 2001. In October 2002, the Trustees approved an application with the OWRB for permanent financing for the Phase lIB project. OPW A Resolution No. 2002-06 would approve pelmanent financing for the project. All of these projects have been financed through the Oklahoma Water Resources Board (OWRB). OWRB operates the State Revolving Fund (SRF) loan program and the Financial Assistance Program (FAP). These programs provide low interest financing for eligible water and wastewater projects. To fund planned improvements to the wastewater utility system, Trustees approved a series of rate increases in May of 2000. That funding has paid for financing for Phase UA improvements to the wastewater treatment facility, the Ator Relief line and the Phase lIB interim construction financing. BACKGROUND: HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO MEMORANDUM Section 5. Sales Tax Pledge. That the Mayor or Vice Mayor and City Clerk or Assistant City Clerk be and are hereby authorized to execute and deliver any and all documentation on behalf of the City pertaining to a year-to-year pledge of certain sales tax revenue levied pursuant to Ordinance No. 103 of the City, as amended by Ordinance No. 153 of the City. Section 4. Certificate of Designation. The City anticipates that the total amount of tax- exempt obligations (other than private activity bonds) issued by the Authority or other issuers on behalf of said City will not exceed $5,000,000 for calendar year 2002, and the City hereby irrevocably allocates to the Authority not to exceed $1,665,000 of the City's $5,000,000 exemption from the rebate requirements pursuant to Section 148(f)(4)(D) of the Internal Revenue Code of 1986, as amended, and authorizes the Mayor or Vice Mayor and City Clerk or Assistant City Clerk to execute and deliver on behalf ofthe City a Certificate of Designation to that effect. Section 3. Lease. The Lease dated July 31, 1973, as amended by an Amendment to Lease dated as of July 1, 1996, between the City and the Authority, whereby the City leases its water, sanitary sewer, garbage and trash collection systems and the Bailey Ranch Golf Club to the Authority, is hereby ratified and confirmed and the tenn of said Lease, as amended, shall extend until the Notes are paid. Section 2. Approval. That all actions heretofore taken by the Authority in connection with the issuance, sale and delivery of the 2002A Note and the 2002B Note (collectively, the "Notes"), and all other aspects of the transaction be and are hereby authorized, approved and ratified. Section I. Issuance of Notes. That the issuance, sale and delivery of (i) The Owasso Public Works Authority, Tulsa County, Oklahoma, Series 2002A Clean Water SRF Promissory Note to Oklahoma Water Resources Board in the principal amount of not to exceed $939,236 (the "2002A Note") and (ii) The Owasso Public Works Authority, Tulsa County, Oklahoma, Series 2002B Promissory Note to Oklahoma Water Resources Board in the principal amount of not to exceed $1,665,000 (the "2002B Note"), all as approved by said Authority on November 18, 2002, be and hereby are authorized, approved and ratified. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA THAT: WHEREAS, the Mayor and City Council hereby determine that the actions taken by the Authority should be authorized and approved. The Owasso Public Works Authority (the "Authority") did, by its Resolution adopted on November 18, 2002, authorize the issuance, sale and delivery of its (i) Series 2002A Clean Water SRF Promissory Note to Oklahoma Water Resources Board and (ii) Series 2002B Promissory Note to Oklahoma Water Resources Board, in order to refinance the outstanding principal amount of (i) the Authority's Series 200ID Interim Construction Clean Water SRF Promissory Note to Oklahoma Water Resources Board and (ii) the Authority's Series 200lE Clean Water SRF Interim Construction Bond Loan Promissory Note to Oklahoma Water Resources Board, both of which financed improvements to the Authority's wastewater system; and A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OW ASSO, OKLAHOMA, APPROVING ACTION TAKEN BY THE OWASSO PUBLIC WORKS AUTHORITY AUTHORIZING ISSUANCE, SALE AND DELIVERY OF TWO (2) PROMISSORY NOTES OF THE AlJTHORlTY TO THE OKLAHOMA WATER RESOURCES BOARD; RATIFYING A CERTAIN LEASE, AS AMENDED; ESTABLISHING THE CITY'S REASONABLE EXPECTATIONS WITH RESPECT TO THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS ON BEHALF OF SAID CTI'Y IN CALENDAR YEAR 2002; AUTHORT7,ING DOCUMENTS PERTAINING TO A YEAR-TO-YEAR PLEDGE OF CERTAIN SALES TAX REVENUE; AND CONTAINING OTHER PROVISIONS RELATED THERETO. RESOLUTION NO.2002-11 CITY OF OW ASSO, OKLAHOMA 2 Stephen P. Gray, City Attorney APPROVED AS TO FORM: Marcia Boutwell, City Clerk ATTEST: Randall (SEAL) OKLAHOMA CITY OF APPROVED AND ADOPTED this 18th day of November, 2002. Section 6. Necessary Action. That the Mayor or Vice Mayor and City Clerk or Assistant City Clerk be and hereby are authorized and empowered to execute and deliver for and on behalf of the City any and all other documents or instruments reasonably necessary to accomplish the issuance, sale and delivery of the 2002A Note and the 2002B Note and all other aspects of the transaction.