HomeMy WebLinkAbout2023-12-18 I01D_04 28E Agr, 2nd Amendment_Xenia_DMWWAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 18, 2023
AGENDA ITEM:Consideration of approval of a resolution approving Second Amendment to
28E Agreement by and between the City of Waukee, Iowa; Xenia Rural Water
District; and the Board of the Water Works Trustees of the City of Des
Moines, Iowa
FORMAT:Consent Agenda
SYNOPSIS INCLUDING PRO & CON: The original agreement was approved on February 4, 2019
(RES# 19-050) and Amendment No. 1 was approved on March 7, 2022 (RES# 2022-085). The parties
desire to modify some of the provisions in the agreement. Waukee currently owns 12% of the shared
Waukee/Xenia booster station located at the L.P. Moon site and 4% of the 24” water main along
Hickman Road from the shared booster station at the L.P. Moon site to the inlet side of the Xenia
Chemical Feed Facility and Xenia/Waukee meter pits east of 20th Street. Waukee will be purchasing
facility capacity rights in these two assets increasing Waukee’s ownership to 8.5714% and 26.1818%
respectively in these shared facilities.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: This purchase will require
Waukee to pay Xenia $299,068.88 ($140,607.75 and $158,461.13 for the water main and booster
station respectively).
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Resolution
II. Second Amendment to 28E Agreement
PREPARED BY: Beth Richardson
REVIEWED BY: Rudy Koester RK
PUBLIC NOTICE INFORMATION –
NAME OF PUBLICATION:
DATE OF PUBLICATION:
I1D4
THE CITY OF WAUKEE, IOWA
RESOLUTION 2022-
APPROVING SECOND AMENDMENT TO 28E AGREEMENT BY AND BETWEEN
THE CITY OF WAUKEE, IOWA, XENIA RURAL WATER DISTRICT, AND THE
BOARD OF WATER WORKS TRUSTEES OF THE CITY OF DES MOINES, IOWA
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal
Organization; AND,
WHEREAS, on February 4, 2019 (RES # 19-050), the City entered into a Chapter 28E
Agreement with Xenia Rural Water District and the Board of Water Works Trustees of the City
of Des Moines, Iowa for the ownership, operation, use and maintenance of the Waukee/Xenia
Joint System Facilities that has been filed with the Iowa Secretary of State on April 3, 2019 as
Agreement Number M511603; AND,
WHEREAS, on March 7, 2022 (RES# 2022-085), the City approved the First Amendment to
28E Agreement with Xenia Rural Water District and the Board of Water Works Trustees of Des
Moines, Iowa, the parties have ascertained that certain specifications as to location of facilities
need to be corrected and the parties desire to modify some of the provision of the Waukee-
Xenia-DMWW 28E agreement; AND,
WHEREAS, the City of Waukee currently owns 12% of the shared Waukee/Xenia booster
station located at the L.P. Moon site and 4% of the 24” water main along Hickman Road from
the shared booster station at the L.P. Moon site to the inlet side of the Xenia Chemical Feed
Facility and Xenia/Waukee meter pits east of 20th Street; AND,
WHEREAS, the City of Waukee will be purchasing facility capacity rights in these two assets
increasing Waukee’s ownership to 8.5714% and 26.1818% respectively in these shared facilities,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee that the
Second Amendment to 28E Agreement By and Between the City of Waukee, Iowa, Xenia Rural
Water District, and the Board of Water Works Trustees of the City of Des Moines, Iowa is
hereby approved.
Passed by the City Council of the City of Waukee, Iowa, and approved the 18th day of
December, 2023.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
Anna Bergman Pierce
R. Charles Bottenberg
Chris Crone
Larry R. Lyon
Ben Sinclair
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SECOND AMENDMENT TO 28E AGREEMENT BY AND BETWEEN
THE CITY OF WAUKEE, IOWA,
XENIA RURAL WATER DISTRICT,
AND THE BOARD OF WATER WORKS TRUSTEES OF THE
CITY OF DES MOINES, IOWA
This Second Amendment of the 28E Agreement (hereinafter "Agreement") is made and entered
into by and among the CITY OF WAUKEE, IOWA (“Waukee”), XENIA RURAL WATER
DISTRICT (“Xenia”), and the BOARD OF WATER WORKS TRUSTEES OF THE CITY OF
DES MOINES, IOWA (“DMWW”) (each a “party” and collectively "the parties”) as of the dates
set forth below.
PREAMBLE
WITNESSETH:
WHEREAS, DMWW, Waukee, and Xenia are parties to an Agreement established pursuant to
Chapter 28E, Iowa Code to provide for the ownership, operation, use and maintenance of the
Waukee/Xenia Joint System Facilities that has been filed with the Iowa Secretary of State on April
3, 2019 as Agreement Number M511603 (the “Waukee-Xenia-DMWW 28E Agreement”).
WHEREAS, DMWW, Waukee, and Xenia are parties to the First Amendment to Agreement
established pursuant to Chapter 28E, Iowa Code to provide for the ownership, operation, use and
maintenance of the Waukee/Xenia Joint System Facilities that has been filed with the Iowa
Secretary of State on March 9, 2022 as Agreement Number M514595 (the “First Amendment to
the Waukee-Xenia-DMWW 28E Agreement”).
WHEREAS,the parties desire to modify some of the provisions of the Waukee-Xenia-DMWW
28E Agreement accordingly in the respects and particulars provided herein.
NOW THEREFORE, in consideration of the mutual undertakings hereby provided, Waukee,
Xenia, and DMWW hereby agree that the Waukee-Xenia-DMWW 28E Agreement shall be
amended as follows:
1.Nothing in this Agreement or the Waukee-Xenia-DMWW 28E Agreement modifies or changes
the total purchase capacity owned by Waukee or Xenia under separate agreements between
each entity and DMWW. This Agreement only addresses ownership of flow rights through the
Waukee/Xenia Joint System Facilities.
2.Part 1 of Section 2 of Article I of the Waukee-Xenia-DMWW 28E Agreement is amended by
deleting such Part in its entirety and replacing it with the following:
Part 1 – The sale by Xenia to Waukee of the right of use approximately 600 gallons per
minute and a maximum of 864,000 gallons per day, when available, of capacity in the
existing 24” water main along West Hickman Road from the L.P. Moon site to the inlet side
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of the Chemical Feed Facility and Meter Pits to be constructed east of T Avenue. Following
the sale Xenia and Waukee shall jointly own this facility.
3.Sections 2 and 3 of Article II of the Waukee-Xenia-DMWW 28E Agreement is amended by
deleting such Part in its entirety and replacing it with the following:
2. Part 1 Responsibilities. Xenia shall provide approximately 600 gallons per minute
and a maximum of 864,000 gallons per day, when available, of capacity rights in its
existing 24” water main along West Hickman Road from the Xenia Booster Station
located at the L.P. Moon Site to inlet side of the Chemical Feed Facility and Meter Pits to
be constructed east of T Avenue (the “West Hickman Road Main”) to Waukee in
exchange for payment computed as set forth in Exhibit B-1 and as provided in Article IV
of this Agreement. Such payment shall be made as provided in Article IV of this
Agreement.
3. Part 2 Responsibilities. Xenia shall provide approximately 600 gallons per minute
and a maximum of 864,000 gallons per day, when available, of capacity rights in its
existing booster station located at the L.P. Moon Site to Waukee in exchange for payment
computed as set forth in Exhibit B-2 and as provided in Article IV of this Agreement.
Such payment shall be made as provided in Article IV of this Agreement.
4.Sections 1, 2 and 3 of Article III of the Waukee-Xenia-DMWW 28E Agreement is amended by
deleting such Part in its entirety and replacing it with the following:
1. Shared Ownership. Xenia and Waukee shall have, and shall maintain, shared
ownership of the existing facilities as set forth in Part 1 and 2, with capacity rights as
allocated in Section 2 and 3 of Article III of this Agreement. Facilities constructed under
Part 3 will include a chloramination facility, flow meter, and control valve located at
1512 W. Hickman Road which will be wholly owned by Xenia and a control valve and
flow meter also located at 1512 W. Hickman Road which will be owned by Waukee.
Waukee’s ownership interest shall be equal to 8.6% of the West Hickman Main and
26.1% of the Waukee/Xenia Booster Station located at the L.P. Moon Site. Xenia and
Waukee shall bear all risk of loss to the Waukee/Xenia Service Facilities and shall insure
or self-insure such interests separately or jointly as they may separately determine.
DMWW shall have no ownership interests in such facilities and no liability for operation
or loss thereof, except as otherwise provided herein.
2. Xenia Capacity Rights. Xenia shall have the right to use up to 9.216 million
gallons per day, or an average of 6,400 gallons per minute, of the capacity in the existing
24” West Hickman Road Main. Xenia shall have the right to use up to 2.448 million
gallons per day, or an average of 1,700 gallons per minute in the Waukee/Xenia Booster
Station located at the L.P. Moon Site.
3. Waukee Capacity Rights. Waukee shall have the right to use up to 864,000
gallons per day, or an average of 600 gallons per minute, of the capacity in the existing
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24” West Hickman Road Main. Waukee shall have the right to use up to 864,000 gallons
per day, or an average of 600 gallons per minute in the Waukee/Xenia Booster Station
located at the L.P. Moon Site.
In an emergency situation as determined by DMWW, Waukee shall have the right to use
up to 1.728 million gallons per day, or an average of 1,200 gallons per minute, of the
capacity in the existing 24” West Hickman Road Main. Waukee shall have the right to
use up to 1.728 million gallons per day, or an average of 1,200 gallons per minute, of the
capacity in the Waukee/Xenia Booster Station located at the L.P. Moon Site. During an
emergency situation, Waukee’s increased usage shall not negatively impact Xenia’s
water distribution and storage systems and shall not prevent Xenia from providing
potable water service to their customers.
5.Section 1 of Article IV of the Waukee-Xenia-DMWW 28E Agreement is amended by deleting
such Part in its entirety and replacing it with the following:
1.Sale of Capacity under Part 1 and Part 2. Waukee shall pay Xenia $261,781.66 for
approximately 600 gallons per minute and a maximum of 864,000 gallons per
day, when available, of capacity in the existing 24” West Hickman Road Main
and $293,228.23 for approximately 600 gallons per minute and a maximum of
864,000 gallons per day, when available, of capacity in the Xenia booster station
located at the L.P. Moon Site as provided herein. Such Payment shall be made
within thirty (30) days of the Effective Date. The Parties acknowledge that
Waukee has already paid $121,216.67 to Xenia for the 24” West Hickman Road
Main, and Waukee has already paid $135,686.11 for the Xenia Booster Station in
the L.P. Moon Site, and that $140,607.75 and $158,461.13 are the remaining
balances due for each site from Waukee to Xenia.
6.Exhibit B-1 of the Waukee-Xenia-DMWW 28E Agreement is amended by deleting Exhibit B-
1 in its entirety and replacing it with the attached Exhibit B-1.
7.Exhibit B-2 of the Waukee-Xenia-DMWW 28E Agreement is amended by deleting Exhibit B-
2 in its entirety and replacing it with the attached Exhibit B-2.
8.This Second Amendment shall be effective as of the date of its filing with the Iowa Secretary of
State. Except as so amended, the Waukee-Xenia-DMWW 28E Agreement shall remain in full
force and effect.
IN WITNESS THEREOF, the parties have caused this First Amendment to 28E Agreement to
be executed in counterparts, each of which shall be considered an original.
[SIGNATURE PAGES TO FOLLOW]
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CITY OF WAUKEE, IOWA
By:
Courtney Clarke, Mayor
Attest:
Rebecca D. Schuett, City Clerk
STATE OF IOWA )
) SS:
COUNTY OF DALLAS )
On this day of , 2023 before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Courtney Clarke and Rebecca D. Schuett,
to me personally known, and, who, being by me duly sworn, did say that they are Mayor and City
Clerk, respectively of the CITY OF WAUKEE, IOWA; that the seal affixed to the foregoing
instrument is the corporate seal of the City, and that the instrument was signed and sealed on behalf
of the City, by authority of its City Council, as contained in the Resolution adopted by the City
Council, under Roll Call No. ___________ of the City Council on the day of
, 2023, and that Courtney Clarke and Rebecca D. Schuett acknowledged the execution of
the instrument to be their voluntary act and deed and the voluntary act and deed of the City by it
voluntarily executed.
__________________________________
Notary Public in and for the State of Iowa
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XENIA RURAL WATER DISTRICT
By:
Dan Lovett, Chair
Attest:
Peter Jensen, Secretary
STATE OF IOWA )
) SS:
COUNTY OF POLK )
On this day of , 2023 before me, the undersigned, a Notary
Public in and for the State of Iowa, personally appeared Dan Lovett and Peter Jensen, to me
personally known, and, who, being by me duly sworn, did say that they are Board Chair and Board
Secretary, respectively of XENIA RURAL WATER DISTRICT; that the seal affixed to the
foregoing instrument is the corporate seal of Xenia, and that the instrument was signed and sealed
on behalf of Xenia, by authority of the Board of Xenia Rural Water district, as contained in the
Resolution adopted by the Board, under Motion #________ of the Board on the day of
, 2023, and that Dan Lovett and Peter Jensen acknowledged the execution of the
instrument to be their voluntary act and deed and the voluntary act and deed of the Board by it
voluntarily executed.
__________________________________
Notary Public in and for the State of Iowa
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BOARD OF WATER WORKS TRUSTEES
OF THE CITY OF DES MOINES, IOWA
By:
Andrea Boulton, Board Chairperson
Attest: ____________________________________
Ted Corrigan, CEO and General Manager
STATE OF IOWA )
) SS:
COUNTY OF POLK )
On this ______ day of , 2023, before me, a Notary Public in
and for the State of Iowa, personally appeared Andrea Boulton and Ted Corrigan, to me personally
known, and, who being by me duly sworn, did say that they are the Board Chairperson and the
Chief Executive Officer and General Manager of the BOARD OF WATER WORKS TRUSTEES
OF THE CITY OF DES MOINES, IOWA, that no seal has been procured by the entity; that the
instrument was signed on behalf of the entity by authority of its Board as contained in the
resolution adopted by the Board on the ____ day of ,2023, and that Andrea Boulton
and Ted Corrigan acknowledged the execution of the instrument to be the voluntary act and deed
of the BOARD OF WATER WORKS TRUSTEES OF THE CITY OF DES MOINES, IOWA, by
it and by them voluntarily executed.
____________________________________
Notary Public in and for the State of Iowa
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Exhibit B-1
Part 1 – West Hickman Road Water Main
Capacity Sale and Percent Ownership
Xenia shall provide approximately 600 gallons per minute and a maximum of 864,000
gallons per day of capacity rights in the existing 24" water main along West Hickman
Road from the booster station located at the L.P. Moon Site to inlet side of Chemical
Feed Facility and Meter Pits to be constructed east of T Avenue to Waukee.
Flow Capacity of 24-inch Pipe 7,000 gpm
Revised 24" water main value $3,054,628.45
Gallons Per Minute
(gpm)
Share of
Ownership Cost
Waukee 600 8.5714%$261,824.42
Xenia 6,400 91.4286%$2,792,804.03
Totals 7,000 100.0000%$3,054,628.45
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Exhibit B-2
Part 2 – Waukee/Xenia Booster Station
Capacity Sale and Percent Ownership
Xenia shall provide approximately 600 gallons per minute and a maximum of 864,000
gallons per day of capacity rights in the booster station located at L.P. Moon Site to
Waukee.
Current Booster Station Capacity 2,300 gpm
Revised Booster Station Value $1,123,479.82
Gallons Per Minute
(gpm)
Share of
Ownership Cost
Waukee 600 26.1818%$294,147.24
Xenia 1,700 73.8182%$829,332.58
Totals 2,300 100.0000%$1,123,479.82