HomeMy WebLinkAbout~Master - Water District Service Territory Transfer Agreement with Xenia Rural Water District RESOLUTION NO. 13-577
RESOLUTION APPROVING WATER DISTRICT SERVICE
TERRITORY TRANSFER AGREEMENT
BETWEEN THE CITY OF AMES, IOWA, AND XENIA RURAL WATER DISTRICT
WHEREAS, over the past several years,there has been a nearly continuous series of initiatives
and challenges related to development of residential housing on the north side of Ames; and,
WHEREAS, this included the Rose Prairie development proposals, lawsuit, settlement, and
annexation;expansion of the City's planned northern growth area;annexation applications for the Quarry
Estates and Athen subdivisions; negotiation of annexation agreements with multiple developers;
discussions with current Grant Avenue residents regarding potential annexation of their properties;
concerns from existing Hyde Avenue neighborhood residents regarding the traffic impacts of northern
growth, Xenia Rural Water District's severe financial difficulties; and Xenia's stance whereby it now
requires substantial buy-out payments for water service territory; and,
WHEREAS,the City Council previously considered whether the lands to be annexed would be
better served by Xenia or by the City, and determined that the City could better meet those needs; and,
WHEREAS,the Council ultimately directed staff to negotiate an agreement with Xenia,whereby
the service territory will be served by the City, which is better equipped to provide high-quality urban
water service for our residents; and,
WHEREAS, in giving up its rights to this service territory,Xenia required a large territory buy-
out payment in order to address its creditors' concerns about receiving adequate value for that asset;and,
WHEREAS, concerned with the pace of those City-Xenia negotiations, some local developers
took the initiative to individually negotiate buy-out agreements with Xenia, with the result that the
developers of the Quarry Estates, Hunziker North, and Hunziker South developments have finalized
agreements with Xenia; and,
WHEREAS,staff from Xenia and the City have also completed negotiations on a service territory
agreement that builds upon the developers' agreements.
NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Ames,Iowa,that
the Water District Service Territory Transfer Agreement with Xenia Rural Water District is hereby
approved.
ADOPTED THIS 17`h day of December, 2013.
-_41a& - 4.
Diane R. Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Davis
Seconded by: Orazem
Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 17`h day of December, 2013.