HomeMy WebLinkAbout2024-01-02 Resolution 2024-025_28E-28F Agreement Conditional Approval, Set Public Hearing Date for Transfer of Interest in Property, CIWWRESOLUTION 2024-025
RESOLUTION CONDITIONALLY AUTHORIZING THE INCLUSION OF THE CITY
OF WAUKEE, IOWA AS A FOUNDING AGENCY OF CENTRAL IOWA WATER
WORKS; CONDITIONALLY APPROVING THE CENTRAL IOWA WATER WORKS
28E/28F AGREEMENT; AND FIXING DATE FOR PUBLIC HEARING ON TRANSFER
OF INTEREST IN REAL PROPERTY.
WHEREAS, the City of Waukee (`WAUKEE"') has a duty to provide the quantity and
quality of water needed by its customers within and without the City of Waukee;
WHEREAS, historically the Des Moines metropolitan regional area (the "Region") has
successfully joined together to provide water services to citizens and customers through shared
facilities under various agreements;
WHEREAS, the concept of regional governance and ownership of water supply facilities
has been studied for many years among the water utilities serving communities in the Region to
analyze and recommend a way to provide the needed quality and quantity of water to citizens
and customers in the Region both now and in the future;
WHEREAS, WAUKEF, considers it desirable to establish a shared regional system of
drinking water supply production facilities under regional ownership and governance to meet all
of its existing and future needs for safe, reliable, abundant, and reasonably priced drinking water
to be distributed to its customers;
WHEREAS, certain water utilities, rural water districts and governmental entities have
developed a defined framework for the organization of a new regional water authority as a
separate public entity created under Chapter 28E and Chapter 28F, Iowa Code, to be known as
the "Central Iowa Water Works" ("CIWW") to act as a regional water wholesale production and
supply entity under the material terms and conditions as set forth in the form ofthe Central Iowa
Water Works 28E/28F Agreement, dated November 28, 2023 which is available for review at
https://bit.ly/CIWWExecution28E28F and a copy of which is on file at the offices of WAUKEE
located at 230 W. Hickman Road, Waukee, Iowa 50263 (the "CIWW Agreement")-,
WHEREAS, the City Council of WAUKEF, believes it is in the best interest of its
customers and in fulfillment of its fiduciary duty to its customers for the provision of long-term
comprehensive water needs, to participate as a Founding Agency of CIWW, as defined in the
CIWW Agreement, subject to formal approval by all other anticipated Founding Agencies
named therein;
WHEREAS, the conditions of membership of WAUKEE in CIWW, include the transfer
of certain water production and supply assets to CIWW in accordance with, and pursuant to, the
terms of the CIWW Agreement (a list of the proposed assets to be transferred to CIWW is
attached hereto as Exhibit A) ( the "WAUKEE Water Supply Facilities"),
WHEREAS, the assets listed in Exhibit A include certain interests in real property, and
before WAUKEE can transfer an interest in real property, Iowa Code Section 364.7 requires a
public hearing; and
WHEREAS, WAUKEE anticipates issuing revenue obligations to be secured by the Net
Revenues of its Water System in connection with certain assets to be transferred to CIWW.
NOW, THEREFORE IT IS I IEREBY RESOLVED, by the City Council of WAUKEE:
Section 1. That WAUKEF; and the customers served by WAUKEE would benefit
from WAUKEF membership as a Founding Agency in CIWW, in accordance with the CIWW
Agreement, and it is advisable to enter into the CIWW Agreement. Entering into said
Agreement provides benefit to WAUKEE and its customers, including collaborative planning
and management of water resources, equitable sharing of system costs and risks, and system
resiliency.
Section 2. That the joinder by WAUKEE as a Founding Agency of CIWW, and the
CIWW Agreement in the form presented to the City Council is hereby approved, conditioned
upon:
(a) The formal approval by all other named parties in the CIWW Agreement; and
(b) A public hearing upon the proposed transfer of the WAUKEE Water Supply Facilities
described in Exhibit A, and the final determination of said transfer thereafter by the
City Council.
Section 3. The City Council of WAUKEE finds that the transfer of assets to CIWW
as contemplated in the CIWW Agreement:
(a) Secures the long-term ability of WAUKEE to provide cost-effective water services to
its customers; and
(b) Will not impact the revenues of the WAUKEE water utility, or the ability of the water
utility to generate sufficient revenues to meet all of its obligations for operations,
maintenance, principal, interest, reserves and coverages; and
(c) WAUKEF, has outstanding obligations payable from the Net Revenue of the water
utility, and
(d) The resolutions(s) authorizing the issuance of outstanding obligations contain a
covenant limiting the transfer of assets, however, said covenant does not prevent the
disposal of property which in the judgment of the Council has become inexpedient or
unprofitable to use in connection with the utility system, or if it is to the advantage of
the utility system that other property of equal or higher value be substituted therefor;
and
(e) Under the terms of the CIWW Agreement, transfer of assets by WAUKEE to CIWW
under common ownership and operation on a cooperative basis for the mutual benefit
of all Founding Agencies secures added water capacity through CIWW and expedient
redundancy for WAUKEE as a water utility well into the future, which is more
advantageous and of equal or higher value to the WAUKEE's water utility than
retaining said assets under its own ownership; and
(f) For the above reasons, it would be inexpedient for WAUKEE to retain and continue
using the assets, rather than making said transfer to CIWW; and
(g) The transfer of assets does not conflict with any of the requirements, terms,
covenants, conditions, or provision of any resolution authorizing the issuance of any
outstanding water revenue bonds, notes, pledge orders or other obligations payable
from the Net Revenues of the water utility.
Section 4. That the City Council shall, as a part of its regular meeting at 230 W.
I lickman Road, Waukee, Iowa 50263 at 5:30 P.M. on the 15"' day of January, 2024, conduct a
public hearing on the proposed disposal of interest in real property included as a part of certain
water production assets, to be transferred to CIWW in accordance with the terms and provisions
of the CIWW Agreement. The City Clerk is directed to cause at least one publication to be made
of a notice of this meeting, in a legal newspaper, printed wholly in the English language,
published at least once weekly, and having general circulation in Waukee, Iowa. The publication
to be not less than four (4) nor more than twenty (20) days prior to the date of the hearing on the
proposed disposal. The Notice will be in substantially the form attached hereto as Exhibit B.
Section 5. To evidence the City Council's conditional approval ofthe CIWW
Agreement, the City Clerk is hereby directed to prepare and execute a certified copy of this
Resolution with a true copy of the CIWW Agreement attached, and to file such certificate in the
permanent records of the City Council.
Section 6. Upon confirmation of the approval of the CIWW Agreement by all named
parties therein, and completion of the public hearing and final determination on the proposed
disposal of real property to CIWW, the Mayor and the City Clerk of WAUKEE are hereby
directed to execute the CIWW Agreement on behalf of WAUKEE in the form presented, subject
to any revisions needed to correct scrivener errors or to correct other manifest mistake as
determined by staff and legal counsel, and to complete any other actions necessary to effectuate
the purposes of creating CIWW. Participation as a Founding Agency shall be contingent upon
the execution, delivery, and filing of the CIWW Agreement with the Iowa Secretary of State
after its execution by all other Founding Agencies named therein.
Section 7. Pursuant to Iowa Code section 28F.3, WAUKEE hereby acknowledges,
consents to, and confirms the planned issuance of not to exceed $900,000,000 of water revenue
debt by CIWW in one or more series over multiple years, in accordance with the CIWW
Agreement.
PASSED AND APPROVED this 2nd day of January, 2024.
Courtney Clarke, Mayor
Attest:
10�" 0 - &bw�
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE:
AYE
R. Charles Bottenberg
X
Chris Crone
X
Rob Grove
X
Anna Bergman Pierce
X
Ben Sinclair
X
NAY ABSENT ABSTAIN
FXHIBTf A: Summary of Assets to Be "Transferred
BPS I Xenia Booster Station at LP Moon
*MTR = Meters; BPS = Booster/Pumping Station; SOS = Sources of Supply; STO
= Storage; TMT = Treatment Facilities; 'I'RN= Transmission Network
Further detail is provided in the Notes to Schedule IV-7 to the CIWW Agreement,
which is available for review at https://bit.ly/CIWWExecution28E28F and a copy
of which is on file at the offices of WAUKF.E located at 230 W. Hickman Road,
Waukee, Iowa 50263.
EXHIBIT B: Form of Notice of Hearing (Asset Transfer per 364.7)
NOTICE OF MEETING OF THE CITY COUNCIL OF THE CITY OF
WAUKEE„ IOWA ON THE MATTER OF THE PROPOSITION FOR THE
DISPOSAL OF INTEREST IN REAL PROPERTY BY TRANSFERRING
PROPERTY TO CENTRAL IOWA WATER WORKS
PUBLIC NOTICE is hereby given that as a part of its regular meeting at 230 W. Hickman Road,
Waukee, Iowa at 5:30 P.M. on the 15`" day of January, 2024, the City Council of the City of
Waukee, Iowa ("WAUKEE") will conduct a public hearing on the proposed disposal of interests
in real property owned by WAUKEE by transfer of certain facilities, which include interests in
real property, to a new entity to be created under the provisions of Chapter 28E and 28F, Iowa
Code, and to be known as Central Iowa Water Works ("CIWW") in accordance with and
pursuant to the terms of the proposed CIWW 28E/281', Agreement, which is available for review
at
https://bit.ly/CIWWExecution28E28F
and a copy of which is on file at the offices of WAUKEE located at 230 W. I Iickman Road,
Waukee, Iowa 50263 (the "CIWW Agreement").
The facilities to be transferred to CIWW are set forth in detail in Schedule IV-7 of the CIWW
Agreement and include the following:
BPS Xenia Booster Station at LP Moon
*MTR = Meters, BPS = Booster/Pumping Station: SOS Sources of Supply; STO
= Storage; TMT = Treatment Facilities; TRN= Transmission Network
The transfer shall occur in accordance with the terms established in the CIWW Agreement
At the above meeting, the City Council shall receive oral or written objections from any member
of the public. After all objections have been received and considered, the City Council will at
this meeting, or an adjournment thereof, take action on the final determination of the disposal of
interests in real property to CIWW.
In accordance with Iowa Code Sections 21.4(1)(b) and 21.8, this meeting of the Waukee City
Council will be conducted with two different options for public participation: 1) Members of the
public wishing to attend in person may do so in the Council Chambers at Waukee City Hall. 2)
Members of the public wishing to participate electronically may do so via Zoom at the following
link or phone numbers:
httns://zoom.us/i/352651371
Meeting ID: 352-651-371
Or by phone:
+1 646-558-8656 or
+1 312-626-6799 or
+1 301-715-8592
In -person meetings are subject to change under certain circumstances, including but not limited
to higher than average participation or changes in health guidelines. If the meeting shall be held
electronically only, notice shall be posted to the City website (Waukee.org) and City social
media. Questions regarding meeting format may also be directed to the City Clerk's office at
515-978-7904.
All persons wishing to observe or participate in this meeting may do so via Zoom or telephone.
Please contact the City Clerk's office at 978-7904 or bschuettc� waukee.org if you have questions
or electronic accessibility issues.
This notice is given by order of the City Council as provided by Iowa Code 364.7, as amended.
Dated this 2" d day of January, 2024.
CITY OF WAUKEE, IOWA
/s/ Rebecca D. Schuett, City Clerk