HomeMy WebLinkAbout~Master - Approving Form RD-400-4 USDA Assurance Agreement for Xenia Rural Water District RESOLUTION NO. 21-626
RESOLUTION APPROVING FORM RD-400-4 USDA ASSURANCE AGREEMENT
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 subj ect 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 have 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 Form RD-400-4 USDA Assurance Agreement for XENIA Water Service is hereby approved
ADOPTED THIS 14`' day of December, 2021.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 14t'day of December, 2021.