Guthrie Public Works Authority approves five‑year take‑or‑pay water agreement with Langston University
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Summary
The Guthrie Public Works Authority approved a five‑year take‑or‑pay potable‑water agreement with Langston University, setting a base rate of $6.35 per 1,000 gallons and a monthly minimum equivalent to 6,000,000 gallons.
GUTHRIE, Okla. — The Guthrie Public Works Authority voted unanimously to approve a five‑year take‑or‑pay water purchase agreement with Langston University on behalf of the Board of Regents for the Oklahoma Agricultural and Mechanical Colleges.
City staff recounted that the original long‑term agreement was executed in 2004 and had been extended by memorandum while parties negotiated new terms after the prior 20‑year agreement expired on June 30, 2025. Under the new contract, the authority will supply potable water to Langston University under a five‑year term with renewal provisions through June 30, 2030.
Staff presented pricing terms: a proposed base rate of $6.35 per 1,000 gallons, with usage above the 6,000,000‑gallon monthly minimum billed at $6.69 per 1,000 gallons. The take‑or‑pay minimum equates to a monthly minimum payment of $38,100 (the equivalent of 6,000,000 gallons). The agreement also includes a maintenance provision under which the university agreed to fund up to 30% of infrastructure maintenance costs over the agreement term.
City staff recommended approval and the board moved and unanimously approved the agreement.
