HomeMy WebLinkAbout~Master - Resolution approving amendment No. 2 on contract with Xenia Rural Water District for the sale of Potable WaterRESOLUTION NO. 26-278
RESOLUTION APPROVING AMENDMENT NO. 2 ON CONTRACT WITH XENIA
RURAL WATER DISTRICT FOR THE SALE OF POTABLE WATER
FOR THE CITY OF AMES, IOWA
WHEREAS, The City of Ames and Xenia Rural Water District have an established
30-year-old agreement that allows Xenia to purchase potable water from the City of Ames
for Xenia's subsequent resale to their direct customers; and,
WHEREAS, strengthening Xenia's ability to provide urban water service in its
territory outside Ames would benefit both parties by enabling growth to the west and
southwest of Ames' current city limits; and,
WHEREAS, the agreement will eventually generate revenue to Ames estimated to
be in excess of $700,000 annually. An immediate effect of the agreement is that it will
help facilitate two key residential developments in Ames, Auburn Trails and Hayden's
Preserve, by significantly lowering the cost to transfer the water service territory from
Xenia to Ames; and,
WHEREAS, the agreement ties the volumetric water rate that Xenia would pay to
the Non-Peaking Industrial Rate being charged to industrial customers within the Ames
city limits, ensuring that Ames' customers are not subsidizing Xenia's customers. In
addition, it will also provide a one-time payment to the Water Fund of $1,464,500.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa, that for Amendment No. 2 on contract with Xenia Rural Water District for the Sale
of Potable Water is hereby approved.
ADOPTED THIS 28th day of April, 2026.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by: Gartin
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Betcher, Corrieri, Junck, Gartin, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 28th day of April, 2026.