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Del City Municipal Service Authority approves sewer repair contract; staff flags possible water/sewer rate increases
Summary
The Del City Municipal Service Authority authorized a sewer-lining contract not to exceed $82,908 and staff said it will evaluate water, sewer, and sanitation rates, while pursuing billing cost savings to offset rising operational expenses.
At its May 19 meeting, the Del City Municipal Service Authority approved a contract not to exceed $82,908 with Urban Contractors LLC to replace sewer liner on a segment from 4413 to 4433 Southeast 40th Street and authorized the chair or trust manager to execute necessary documents.
Trust Manager/Chair and trustees unanimously approved the contract. Trustee Dean, Trustee Tatum and Trustee Finch recorded aye votes; the chair voted aye.
During a subsequent DCMSA budget discussion, city staff said total DCMSA revenues were estimated using a three‑year average and noted two outstanding debt obligations: a 2011 OWRB (Oklahoma Water Resources Board) loan for the water treatment plant nearing payoff and a 2017 wastewater treatment plant loan with a remaining significant balance paid from the MSA’s debt service. Staff said these debts will factor into any rate‑setting decisions.
City Manager JD and staff said they are evaluating potential rate increases for water, sewer and sanitation due to rising costs for fuel, insurance and payroll. Staff gave one example: the city currently charges a $2 convenience fee for credit-card payments, but even with that fee the city still absorbs about $300,000 annually in card processing costs. Staff said they are reviewing alternatives and intend to return with recommendations.
Staff also described planned cost-savings measures: returning to postcard billing for some customers, offering electronic billing to reduce mail costs, and refining billing structure to capture convenience fee costs more accurately. No rate changes were adopted at the May 19 meeting; the MSA closed the discussion and will bring formal recommendations later.
