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Discussion of Approved Agreement of Compromise and Settlement and Approved Water Purchase Contract with Rural Water, Sewer and Solid Waste Management District No. 1, Logan County, Oklahoma (Logan County Rural Water District)
Mayor O'Neil requested a discussion of the agreement and the water purchase contract, which were both unanimously approved at the last regular City Council meeting on April 22.
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 know to the City 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 City of Edmond customers located within 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 directly to the residents of Oak Tree Estates which is located just outside fo the corporate city limits of Edmond. The residents of Oak Tree Estates were notified in advance of this now approved agreement and of the April 22 date 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 $110,000 per year.
Agreements were necessary to resolve areas that are encroached between Edmond and LCRWD
The staff recommendation was to approve the agreements
No formal action needed, formal approval occurred at the April 22 meeting
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