After consideration, postponement, revision and study, the Norman City Council again will consider a 20-year contract to provide water to the town of Goldsby, when it meets in regular session at 6:30 p.m. in the Council Chambers, 201 W. Gray St.
Under terms of the proposed contract, Goldsby's maximum water demand would be 8 million gallons per month -- about 2 percent of Norman's total monthly production, said Norman Utilities Director Ken Komiske.
"Goldsby is looking at purchasing 3 million gallons a month to begin with," Komiske said. The Norman Utilities Authority produces an average of 375 million gallons per month.
Goldsby is a McClain County town of 1,597, just south of Norman.
"It's an expensive proposition for Goldsby, because they'd need to drill a water line under the (Canadian) river," Komiske said. "They want to know if they spend over a million to connect to us, that we'd have a long-term contract to provide water to them."
Goldsby is a McClain County town of 1,597, just south of Norman.
Komiske said Goldsby has the option of "fixing up their water plant" and constructing a pipeline under the Canadian River to attach to Norman's water main at the southern end of 24th Avenue SW.
Another option was extended to Goldsby by Oklahoma City officials, who offered to run a pipeline from 60th Avenue to Goldsby or connect Goldsby to Newcastle's water supply, which Oklahoma City already provides.
"Oklahoma City already is outflanking us. If they surround us, we will lose the ability to serve anyone else," Komiske said at the council's July 21 study session.
The council voted at its June 9 regular session to put consideration of the contract on hold until a finance study could be conducted. The analysis was performed by the utilities department, presented to the Council Finance Committee, and revisions were proposed to address council concerns. The financial analysis, along with a revised contract, was presented to the council at its July 21 study session.
The water provided to Goldsby would represent about the same amount of water that Norman provides to a housing subdivision, he said.
"Goldsby has about 700 homes," Komiske said.
Goldsby would pay Norman's current commercial rate for water, plus an accelerator amount per 1,000 gallons. The accelerator would be adjusted beginning each fiscal year based on the number of days Norman purchased water from Oklahoma City during the previous year and the average amount of water purchased by Goldsby on those days.
The initial rate for the first year would be $2.24 per 1,000 gallons instead of Norman's standard commercial rate of $2.10 per 1,000 gallons. The accelerator is based on 36 million gallons a year, and the average number of days per year Norman has purchased water from Oklahoma City since it began doing so in 2001.
Komiske said the formula assures the City of Norman that Goldsby is paying its way for all of the water it purchases. The contract allows for adjustments throughout the year should Norman or Oklahoma City increase their rates during the fiscal year.
Komiske said the revised contract addresses other concerns expressed by council members, including that the contract would not adequately protect the city should a water main break or some other infrastructure failure occur. Language was added to the proposed contract to cover such system breakdowns.
Additionally the contract was revised to more clearly cap the city's provision of water to Goldsby in the amount of 8 million gallons per month. The contract allows for Goldsby to request an increase in water supply as its demand increases, and provides that the Norman Utilities Authority not unreasonably deny such a request as long as it does not affect Norman's ability to provide water to its own customers.
Based on the rate structure proposed in the contract, Norman's net revenue from selling water to Goldsby over a 10-year period would be approximately $700,000.
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Goldsby water deal before Council again
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