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OKC Water Trust raises cost-sharing rates for oversized mains and sewers
Summary
The Oklahoma City Water Utilities Trust on Feb. 24 approved updates to its water-main (Policy A) and sanitary-sewer (Policy B) cost-sharing formulas to reflect current construction pricing and authorized the general manager to adjust rates based on market analysis.
The Oklahoma City Water Utilities Trust voted Feb. 24 to update how it shares the cost of privately constructed oversized water mains and sanitary sewers, increasing the per-inch-per-foot rates for common size ranges and authorizing future adjustments by the general manager.
Dustin, the Trust’s private development manager, told trustees the revisions respond to current market pricing and provide clearer bands for reimbursement when a developer installs a larger pipe than their project strictly requires. Under the new guidance Dustin described, water mains between 12 and 16 inches will be reimbursed at $12 per inch-foot, 16–20 inches at $14 per inch-foot, and sizes above 20 inches will be negotiated on a case-by-case basis. For sanitary sewers, the Trust adopted $9 per inch-foot for pipes over 8 to 12 inches and $16 per inch-foot for 12 to 15 inches, with larger diameters to be negotiated.
“These policies are…when a private development comes in and wants to develop…we participate in cost sharing of that oversized portion of the main,” Dustin said, explaining how the per-inch-per-foot calculation applies when a project requires a smaller pipe than the city’s master plan calls for.
Trustees also authorized the general manager to revisit and reset the reimbursement rates based on future market analyses, giving staff the authority to renegotiate terms as construction costs change. The resolution passed without further substantive questions from trustees.
What changed and why: the Trust said it reviewed five years of pricing and current indices to update the previous rates established in 2022. The goal, staff said, is to align developer reimbursements with actual installed costs and reduce ad hoc negotiations for common size ranges.
The Trust did not provide an exhaustive list of pending or expected developments affected by the change; staff said adjustments will be implemented under the adopted bands and larger projects will be negotiated individually.
