The Enid News and Eagle, Enid, OK

December 17, 2008

City commission to ponder utility hikes

By Robert Barron, Staff Writer

Enid city commissioners will ponder some suggested utility rate increases over the Christmas holiday and prepare to make a decision at their first meeting in Janu-ary.

The water proposal discussed during Tuesday night’s commission meeting included an increase to $2.36 per 1,000 gallons above the base rate. The city’s base rate of $8 for the first 1,000 gallons will not change. Those paying the lowest rate would not see an increase unless they use more water. A conservation rate would be introduced that would result in people using more water paying a higher rate.

Karl Stickley, of C.H. Guernsey Engineering, told commissioners a water study done by his company showed the city was losing about 20 percent of its water through unmetered sources and will need to update its water supply in the near future.

There are several alternatives available but any would require increases of 5 percent to 7 percent per year to maintain costs. Stick-ley’s idea was to begin the in-creases in 2010. City staff members suggested the city may want to start half the initial increase in 2009, then catch up the remainder in 2010.

Commissioners also discussed a proposed increase in stormwater utility rates, which help pay for flood protection and the cost of keeping city drainage ways clear.

Stormwater utility fees are proposed to increase $3 per month in 2009 and $3.36 per month in 2010.

Stickley proposed some alternatives to increasing the city water supply, including developing a new well field, building a lake south of Hennessey, obtaining water rights from Kaw Lake, building a small lake near Lahoma or negotiating with Oklahoma City for water rights to Canton Lake. Obtaining water rights from Kaw Lake, which is near Ponca City, would require building a pipeline to Enid.

Total costs for developing a new well field are estimated at $185,728,000, while building a lake would cost about $221,030,000. Stickley said his survey only included water needs and did not take into account the other benefits of having a lake nearby, such as recreation.

Commissioners, faced with the prospect of losing water and needing increased water sources for future needs, will think about the proposed increases and act on a proposal in January.

In other action Tuesday, assistant finance director Joan Riley discussed a proposed economic development plan to partner the city of Enid and Enid/Garfield County Devel-opment Alliance. The city proposed a one-time allocation of $250,000 to the alliance, plus another $500,000 a year to help further economic development efforts. The alliance would hire an executive director and administrative person and would be housed at the Jim Strate Business Development Center at Autry Technology Center.

Brian Hayden, president of the alliance, said the group meets in January and will begin a nationwide search for an executive director and would hire a search team. The alliance would remain intact, but the leadership would change, with increased input from the city.

The city would use income from the cable television franchise fee, totaling $500,000 annually, for its share of economic development funding. The city also is in negotiations with Suddenlink for an increase in the franchise fee that would produce another $100,000 to be used for economic development. In addition there are a number of other sources, such as unencumbered funds, interest, OG&E; Electric Service franchise funds and unencumbered Enid Economic Development Auth-ority funds that could be sources of revenue.

Commissioners will make a final decision on the issue in January.