Owasso Joint Meeting (Owasso City Council, OPWA, and OPGA)

TO: The Honorable Mayor and City Council FROM: Linda Jones Finance Director SUBJECT: FY 2021-2022 Annual Operating Budget DATE: April 9, 2021 BACKGROUND: Pursuant to statutory and Charter provisions, an annual operating budget for the General Fund, Owasso Public Works Authority (OPWA) Fund, Owasso Public Golf Authority (OPGA) Fund and other funds is being developed and will be transmitted for City Council review on May 11, 2021. The proposed budget is scheduled for discussion during the May and June Worksession meetings. PUBLIC INPUT: Printed copies of the proposed budget will be made available for public viewing on the City’s website on May 14, 2021. On May 19, 2021, legal notice of a public hearing will be published in the Owasso Reporter, and such hearing is planned for June 1, 2021. The public hearing provides opportunity for citizen comment and questions relating to the proposed budget. City Council, OPWA, and OPGA action regarding the adoption of the annual operating budget is scheduled for June 15, 2021. ATTACHMENT: FY 2021-2022 Budget Calendar  CITY OF OWASSO BUDGET CALENDAR FY 2021-22 Due Date Dec. 31 Directors submit requests for additional personnel to Finance. Jan. 31 Requests are prioritized and submitted by the Directors for each Department. February Directors meet with City Manager/Asst. City Manager for justification and clarification of requested increases. April 16 Revenue estimates are finalized to determine which budget priorities will be recommended for funding. May 11 The proposed budget is presented to the City Council at Work Session. May 14 The proposed budget is posted to the City website. May 19 Publication of notice of public hearing (at least five days prior to hearing*). June 1 Public Hearing (no later than June 15*). June 15 Budget adoption (at least seven days prior to July 1*). July 28 Publication of notice to vendors (no later than July 31*). July 31 Budget is filed with the State Auditor (no later than July 31*). Sept. 30 Deadline for submission of vendor invoices for previous fiscal year. Open purchase orders are closed, and budgetary fiscal year-end fund balances are determined. *Deadline set by state statute TO: The Honorable Mayor and City Council FROM: Linda Jones, Finance Director SUBJECT: Proposed Utility Rate Increases - Water, Sewer and Refuse Rates and Fees Stormwater System Service Charges DATE: April 9, 2021 BACKGROUND: As was presented to City Council in March, in order for the City to comply with both City Ordinance and Oklahoma Water Resources Board loan requirements, staff proposes effective October 1, 2021, a five-year plan to increase water, sewer, refuse, and stormwater rates to prevent a deficit budget and to recover expected cost increases. The proposed revenue increases were computed based on assumptions regarding both annual increased costs of labor and materials and also 3% annual increased costs of water purchased from the City of Tulsa. Since actual cost increases will differ from projections, the City will review and report each year to City Council, prior to the presentation of the annual budget the progress towards maintenance of a budgetary fund balance of between one and three months of annual operating revenues. Staff will also annually outline Owasso Public Works Authority capital project needs and present a timeline and estimated cost of projected construction. If the fund balances of the Owasso Public Works Authority and Stormwater Funds fall outside of the targeted range or if additional circumstances change such as identification of critical capital projects, the City Council may amend the rate plan as necessary with publication of the proposed rates and at least 30 days’ notice to customers. Draft resolutions have been prepared outlining proposed water, sewer, refuse, and metered fire hydrant rates for the next five years beginning October 1, 2021; and, proposed rates for stormwater system service. An item has been included on the April 13, 2021, Worksession for additional discussion. ATTACHMENT: Draft Resolutions  CITY OF OWASSO, OKLAHOMA RESOLUTION 2021-XX A RESOLUTION OF THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA ESTABLISHING WATER, SANITARY SEWER SERVICE, REFUSE, AND METERED FIRE HYDRANT RATES AND FEES WITHIN AND WITHOUT THE CORPORATE LIMITS OF THE CITY OF OWASSO, AND ESTABLISHING AN EFFECTIVE DATE WHEREAS, The City Council of the City of Owasso desires to establish the following rates for the provision of water service within the Owasso Corporate limits: Users Inside the Corporate Limits Minimum Monthly Meter Charge for First 1,000 gallons Meter Effective Effective Effective Effective Effective Size 10-1-21 10-1-22 10-1-23 10-1-24 10-1-25 3/4” $12.82 $13.08 $13.34 $13.61 $13.88 1” $13.72 $13.99 $14.27 $14.56 $14.85 1½“ $15.72 $16.03 $16.35 $16.68 $17.01 2” $16.72 $17.05 $17.39 $17.74 $18.09 3” $31.72 $32.35 $33.00 $33.66 $34.33 4” $36.72 $37.45 $38.20 $38.96 $39.74 6” $51.72 $52.75 $53.81 $54.89 $55.99 Hydrant $75.00 $76.50 $78.03 $79.59 $81.18 Users Inside the Usage Tier Rates Per Corporate Limits 1,000 Gallons Effective Effective Effective Effective Effective 10-1-21 10-1-22 10-1-23 10-1-24 10-1-25 Minimum Minimum Minimum Minimum Minimum First 1,000 gallons Meter Meter Meter Meter Meter Charge Charge Charge Charge Charge 2,000 gallons $7.66 $7.81 $7.97 $8.13 $8.29 3,000 – 5,000 gallons $7.71 $7.86 $8.02 $8.18 $8.34 6,000 – 10,000 gallons $7.76 $7.92 $8.08 $8.24 $8.40 11,000 – 20,000 gallons $7.80 $7.96 $8.12 $8.28 $8.45 21,000 gallons or more $7.85 $8.01 $8.17 $8.33 $8.50 and, WHEREAS, The City Council of the City of Owasso desires to establish water meter and usage rates for users outside the Owasso Corporate Limits at 120% the rate charged to users inside the Corporate Limits; and, WHEREAS, The City Council of the City of Owasso desires to establish the following rates, fees and stipulations for metered fire hydrant water usage: • Deposit per meter of $1,000.00 • Minimum meter and usage based on aforementioned rate system • Non-refundable service initiation fee of $10.00 • Penalty for failure to report meter readings by the tenth (10th) day of each month of $50.00 first time, $100.00 second time, and $150.00 each additional time; and, Draft Resolution Page 1 of 2  WHEREAS, The City Council of the City of Owasso desires to establish the following rates for the provision of sewer service: Monthly Sewer Fee for Users Inside the Corporate Limits Volume Rate Per 1,000 Effective Date Base Fee Gallons 10-1-21 $10.01 $4.36 10-1-22 $10.51 $4.58 10-1-23 $11.04 $4.81 10-1-24 $11.59 $5.05 10-1-25 $12.17 $5.30 and, WHEREAS, The City Council of the City of Owasso desires to establish sewer rates for users outside the Owasso Corporate Limits at 120% the rate charged to users inside the Corporate Limits; and, WHEREAS, The City Council of the City of Owasso desires to establish the following rates for the provision of refuse service: Monthly Refuse Fee Residential Commercial Yardwaste Effective Date Per Cart Per Cart Per Cart 10-1-21 $16.95 $18.95 $14.95 10-1-22 $17.20 $19.20 $15.20 10-1-23 $17.45 $19.45 $15.45 10-1-24 $17.70 $19.70 $15.70 10-1-25 $17.95 $19.95 $15.95 and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, that, to-wit: Section One: From and after the effective date of this Resolution (as hereinafter set forth), the charge by the City for water service, sewer service, refuse service, and metered fire hydrant usage shall be adjusted in accordance with the above-referenced recital paragraphs in accordance with authority established by Part 17, Chapter 1 and Chapter 2 of the City of Owasso, Code of Ordinances. Section Two: The water, sewer, refuse, and metered fire hydrant rates and fees established pursuant to this Resolution shall become effective with the first utility billing cycle in October, 2021. APPROVED by the City Council of the City of Owasso, Oklahoma on the _____ day of ______, 2021. __________________________________________ Bill Bush, Mayor ATTEST:_________________________________ Juliann M. Stevens, City Clerk APPROVED AS TO FORM: __________________________________ Julie Lombardi, City Attorney 2  CITY OF OWASSO, OKLAHOMA RESOLUTION 2021-XX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, ADOPTING RATES FOR STORMWATER SYSTEM SERVICE CHARGES WITHIN THE CITY LIMITS OF THE CITY OF OWASSO, OKLAHOMA, AND ESTABLISHING EFFECTIVE DATES WHEREAS, the City Council of the City of Owasso, Oklahoma desires to establish the following rates for the provision of stormwater system service, effective October 1, 2021. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, that, to-wit: SECTION ONE: From and after the effective date of this Resolution (as herein set forth), the following service charges are established for the use of the City’s Stormwater System: Commercial Monthly Volume Effective Residential Per Equivalent Minimum Monthly Date Stormwater Fee Service Unit (3,000 Commercial square feet of Stormwater Fee impervious area) 10-1-21 $5.50 $6.25 $12.50 10-1-22 $6.00 $6.75 $13.50 10-1-23 $6.50 $7.25 $14.50 10-1-24 $7.00 $7.75 $15.50 10-1-25 $7.50 $8.25 $16.50 SECTION TWO: The rates and fees established pursuant to this Resolution shall become effective with the first utility billing cycle in October, 2021. APPROVED by the City Council of the City of Owasso, Oklahoma on the _____ day of ______, 2021. __________________________________________ Bill Bush, Mayor ATTEST: _____________________________ Juliann M. Stevens, City Clerk APPROVED AS TO FORM: _____________________________ Julie Lombardi, City Attorney TO: The Honorable Mayor and City Council FROM: Roger Stevens Public Works Director SUBJECT: Funding Agreement – North 137th East Avenue Service Road Extension DATE: April 9, 2021 BACKGROUND: The proposed North 137th East Avenue extension from Highway 20 to East 118th Street North on the east side of US Highway 169, would provide access to the commercial property in the planning stage of development and other future development along a portion of US Highway 169 corridor. The service road extension would include traffic signal improvements at the intersection of Highway 20 and North 137th East Avenue, stormwater improvements, grading, roadway base installation, curb and gutter, asphalt paving and a section of concrete pavement. The service road extension is estimated to cost $747,000.00, excluding the labor to install the asphalt paving. In December 2020, City and Tulsa County staff and representatives of Thiessen North Investment Group, LLC, met to discuss funding options, and a partnership between the parties to contribute either funds and/or equipment and labor for the project. AGREEMENT: The proposed agreement between the City of Owasso and the Thiessen North Investment Group, LLC contains language detailing the public/private partnership. A summary of the proposed agreement’s key points are as follows: • City of Owasso intends to construct the North 137th East Avenue Service Road Extension. • City of Owasso and Thiessen North Investment Group, LLC each agree to pay $373,500.00 of the cost to construct the road. If the cost of construction exceeds $747,000.00, each party shall pay 50% of the additional cost. • Thiessen North Investment Group hereby agrees to reimburse City of Owasso when construction is complete and prior to City Council project acceptance. It’s important to mention, the City of Owasso and Tulsa County would need to enter into an interlocal agreement at a later date to formalize the contribution of labor and equipment to install the asphalt lanes, which is anticipated to result in an approximate savings to the City of $119,000.00. FUNDING: Funding is available in the Capital Improvements Fund. In addition, Thiessen North Investment Group, LLC will contribute 50% of the total cost of the roadway construction project.  North 137th East Avenue Service Road Extension Page 2 PROPOSED ACTION: An item has been included on the April 13, 2021, Worksession agenda for discussion. ATTACHMENTS: Agreement Site Map TO: The Honorable Chair and Trustees Owasso Public Works Authority (OPWA) FROM: Roger Stevens Public Works Director SUBJECT: Bid Review Coffee Creek Lift Station and Force Main Improvements DATE: April 9, 2021 BACKGROUND: The Coffee Creek Lift Station and Force Main were constructed just south of East 106th Street North on the west side of North 145th East Avenue in 2002. Per the October 2016 Wastewater Master Plan, the lift station pumps, wet well, and generator, as well as the eight (8)” force main needed to be upgraded by 2020. The lift station is currently operating at approximately 90% of its rated capacity and provides service to the Lake Valley and Coffee Creek subdivisions, and several commercial developments along the east side of US Highway 169. Additional development in this area is anticipated to occur over the next 5 to 15 years, at which time, the projected sanitary sewer flow will exceed the capacity of the lift station and force main. In November 2017, Public Works began discussions with Kellogg Engineering, Inc. concerning the needed improvements to the lift station and force main in order to accommodate current and future sanitary sewer flows within the basin. This project was first advertised in June 2020, with bid opening in July 2020. MSB Construction was the lowest bid at $5,007,778.00, which exceeded the engineering estimate by $1,374,951.00. As a result, staff recommended and Trustees acted to reject all bids received for the Coffee Creek Lift Station and Force Main Improvements in August 2020. SOLICITATION OF BIDS: In February 2021, City Engineering staff and Kellogg Engineering revised final bid documents, updated the engineering estimate, and re-advertised in accordance with state statutes. A mandatory pre-bid meeting was held on March 4, and bids were opened on March 18, 2021, with a total of three contractors submitting bids. The bids submitted were as follows: BIDDER AMOUNT MSB Construction $5,250,948.10 Timber Wolf Excavating, LLC $5,410,361.00 McGuire Brothers Construction $7,470,203.00 Engineer’s Estimate $3,632,827.00 MSB Construction was the low bidder at $5,250,948.10. Unfortunately, the lowest bid is $243,170.00 more than the lowest bid received back in July 2020.  Coffee Creek Lift Station Improvements Page 2 Based on comments received by the contractors, the material cost for Polyvinyl (PVC)piping, steel, electrical and mechanical continues to increase about every 10-days, which is the main reason why the project cost has increased by approximately 45% or $1,618,211.00, more than originally expected. With the likelihood of project costs continuing to increase, staff is planning to recommend approval of the construction contract to MSB Construction. FUNDING: To minimize interest costs and to comply with government spend-down requirements, only partial funding was secured for this project through the 2019 Oklahoma Water Resources Board loan. As was communicated to City Council/Trustees when the 2019 loan was approved, OPWA will need to secure additional funds in the near future to fully fund this project. In the meantime, a budget amendment would be needed in the amount of $3,254,636.68, from the OPWA Fund balance. PROPOSED ACTION: An item has been included on the April 13, 2021, Worksession agenda for discussion. ATTACHMENT: Site Map