HomeMy WebLinkAbout2011 05_OPWA_Water Rate Increase_2011.12.20OWASSO PUBLIC WORKS AUTHORITY
RESOLUTION NO. 2011 -05
A RESOLUTION OF THE OWASSO PUBLIC WORKS AUTHORITY ADOPTING RATES FOR
WATER SERVICE WITHIN AND WITHOUT THE CORPORATE LIMITS OF THE CITY OF
OWASSO AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, The Owasso Public Works Authority desires to establish the following rates for the
provision of water service effective March 1, 2012:
Base Rate for Usage Rate for Usage of Each
of 0 -1000 Gallons Additional 1000 Gallons
Users inside the corporate limits, $11.01 $4.44
as well as those customers of
Rural Water District #3 Rogers
County acquired November 1,
1993
Users outside the corporate $13.21 $5.32
limits
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE OWASSO PUBLIC
WORKS AUTHORITY, THAT:
Section One: From and after the effective date of this Resolution (as hereinafter set forth),
the charge by the Authority for water services shall be adjusted in
accordance with the above - referenced recital paragraphs and as
specifically codified pursuant to Ordinance No. 997 of the City of Owasso,
Oklahoma ( "City ").
Section Two: The water rates established pursuant to the Resolution shall become
effective with the first utility billing cycle in March 2012.
PASSED, ADOPTED AND APPROVED THIS 20th DAY OF DECEMBER, 2011.
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Sherry Bisho , Authority Se t ry
APPROVED AS TO FORM:
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Jul' Lombardi, City Attorney
THE OWASSO PUBLIC WORKS AUTHORITY
;:D PnebrdK Chairman
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City Wit out Limits.
TO: The Honorable Chair and Trustees
Owasso Public Works Authority
FROM: Angela Hess
Finance Director
SUBJECT: Water Rafe Increase
DATE: December 16, 201 1
BACKGROUND:
APPROVED BY TRUSS
DEC 2 0 2011
The Owasso Public Works Authority purchases treated water from the City of Tulsa. As a part of
their annual budgetary process and rate review, Tulsa adopted a water rate increase intended
to become effective October 1, 2011. The water service contract between the City of Owasso
and the City of Tulsa requires a 180 day written notice of rate increases be provided by the City
of Tulsa. Tulsa did not provide timely notice according to the contract, therefore the effective
date of the increase will be March 1, 2012. Rates for water purchased by the OPWA from the
City of Tulsa will increase from $2.42 to $2.59 per 1000 gallons. In order for water rates to recover
the cost of service in the OPWA, that seventeen cent rate increase should be passed on to the
OPWA water customers.
The last water rate increase was October 1, 2010. At that time, Tulsa increased rates by fourteen
cents and the OPWA increased rates by twenty -eight cents providing additional operating funds
for the OPWA.
Staff proposes a rate increase of seventeen cents per 1000 gallons of water usage to customers
inside the city limits and a twenty cent increase to customers outside the city limits. The rate
increase would offset the seventeen cent increase from Tulsa. In 1999, OPWA Trustees
established by resolution and ordinance that water rates to customers residing outside the
Owasso city limits would be 20% more than the rate inside the city.
The proposed new rate would increase the base minimum fee for 1000 gallons of water from
$10.84 to $11.01. The volume charge per 1000 gallons of water usage would increase from $4.27
to $4.44 for customers inside the city
The monthly cost of the proposed rate increase to the average city customer who uses 7000
gallons of water per month is $1.19. The annual increase would be $14.28.
The proposed new rate for rural customers would increase the base minimum fee for 1000
gallons of water from $13.01 to $13.21. The volume charge per 1000 gallons of water would
increase from $5.12 to $5.32.
Rate changes require the approval of the OPWA Trustees and the approval of the City Council.
They are enacted by Trustee Resolution and by City Council Ordinance.
Staff recommends Trustee approval of Resolution No. 2011 -05 increasing the water rates to offset
the rate increase from the City of Tulsa.
ATTACHMENT:
Resolution No. 2011 -05