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  Item #   6. A. 3.    
City Council
Meeting Date: 04/22/2019  
Submitted For: Kris Neifing
Submitted By: Kris Neifing, Water Resources Superintendent

Information
Item
Discussion and Consideration of Agreement of Compromise and Settlement and Water Purchase Contract with Rural Water, Sewer and Solid Waste Management District No. 1, Logan County, Oklahoma (Logan County Rural Water District).
Background
The City of Edmond is currently serving water to customers in some areas that are an encroachment into the Logan County Rural Water District (LCRWD) water service territory.  LCRWD made this encroachment known to the City of Edmond about two years ago and the two parties have been in negotiations to reach a mutually agreeable settlement.
 
The agreements include the City of Edmond selling a limited amount of treated water to LCRWD and the payment of royalties to LCRWD based on gross water revenues that are generated by the serving of water to City of Edmond customers located within the LCRWD territory. 
 
The City of Edmond will continue serving water to all of its existing and future water customers within the corporate limits of the City of Edmond and will also continue serving water directly to the residents of Oak Tree Estates which is located just outside of the corporate city limits of Edmond.  The residents of Oak Tree Estates have been notified of the pending agreements and of the date scheduled for consideration by the City Council of Edmond.  The agreements were approved by the LCRWD on April 11, 2019.
 
The royalty payments to LCRWD 1 are estimated at $100,000 per year.
Time Frame
Immediate.
Issue
Agreement is necessary to resolve areas that are encroached between Edmond and LCRWD.
Recommendations
Staff recommends approval.
Action Needed
Motion to approve.
Public Notification
Posted agenda.

Fiscal Impact
Attachments
Agreement of Compromise
Purchase Contract

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