Tuttle, Blanchard review proposed GMC Trust terms as region considers large water transmission line

City staff presented an update on proposed contractual terms for the GMC Utility Trust as Tuttle and Blanchard advance planning for a major water transmission project intended to bring water from Oklahoma City.

City Attorney David summarized the draft terms as an interim approach to address inequitable ownership and revenue distribution among trust beneficiaries while preserving current ownership of existing facilities. "The goal of this is to start getting things in writing on how the assets of the GMC trust are going to be utilized," David said. Rather than forcing either beneficiary to purchase additional ownership in existing assets, the draft proposes allocating a larger share of wheeling charges to the entity that holds more of the existing capacity until future investments even out ownership.

David said future investments and any new infrastructure would be owned by the trust on a 50/50 basis and that revenues paid to the trust would be used to maintain and operate trust assets. He explained the approach was intended to avoid requiring one city to borrow large sums simply to reach equal ownership of legacy assets.

Councilmembers and staff discussed pipeline sizing and shared construction as a cost-saving measure. Staff cited estimated planning numbers presented in the meeting: an estimated cost on the order of $120 million for a 24-inch transmission line and roughly $160 million for a 36-inch line, figures staff described as planning-level estimates. Officials said a joint project with larger diameter could be more economical than two separate lines. The council was told a meeting with Newcastle officials is scheduled to explore broader participation.

No vote was required on the memorandum; staff will continue trust discussions and follow up with the GMC trust and neighboring cities.