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HomeMy WebLinkAbout~Master - Approving the Revised Version of the Agreement for Water Service Operations and Territory Transfer with Xenia Rural Water District RESOLUTION NO. 21-625 RESOLUTION APPROVING THE REVISED VERSION OF THE AGREEMENT FOR WATER SERVICE OPERATIONS AND TERRITORY TRANSFER WITH XENIA RURAL WATER DISTRICT FOR THE CITY OF AMES,IOWA WHEREAS, on October 26, 2021, the City Council approved an Agreement with Xenia Rural Water District that provides standards for Xenia to operate and maintain its water system as the City grows into Xenia's territory over time; and, WHEREAS, the Agreement settles the boundaries of Ames and Xenia service territories, provides mechanisms for certain portions of Xenia territory to potentially be bought out by developers and transferred to Ames to serve,and addresses how Xenia would bill customers within the Ames corporate limits on the City's behalf for sanitary and sewer charges; and, WHEREAS,the approved Agreement was subject to approval by Xenia's Board of Directors and consent from the United States Department of Agriculture Rural Development(USDA); and, WHEREAS, in November,Xenia's Board approved the Agreement, subject to approval of Xenia's outside legal counsel and the USDA; and, WHEREAS, changes in two areas of the Agreement are now being requested by Xenia: 1. In the section regarding the fee Xenia may charge customers to administer the billing of Ames sanitary and storm sewer service, Xenia requests that the phrase "not to exceed" $1.50 per month be removed. Another part of this paragraph allows the $1.50 fee to increase as long as that increase is in line with fees Xenia charges elsewhere and reflects the actual cost of administering billing. 2. In the sections regarding the transfer of territory to the City, Xenia has requested a clarification that Xenia retains any territory that is not transferred by the time those sections expire. WHEREAS, City staff has prepared text changes to the Agreement to implement the requested modifications, and staff does not believe that the changes help clarify the intent of the parties and do not adversely affect the City or potential customers; and, WHEREAS,Xenia has also communicated to City staff that the USDA is requiring that the City sign an Assurance Agreement;this will commit the City to abide by federal non-discrimination and civil rights legislation and policies; and, WHEREAS, staff had reviewed the Assurances Agreement, and it appears that the City is already bound to abide by these policies through federal financial assistance requirements already in place between the City and the federal government;therefore, signing the Assurance Agreement does not bind the City to any new requirements. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the revised version of the Agreement for Water Service Operations and Territory Transfer with Xenia Rural Water District is hereby approved. ADOPTED THIS 14''' day of December, 2021. Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Junck Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 14''day of December, 2021.