HomeMy WebLinkAbout2024-12-02 I08A Waukee Gas Utility - Establish Fair Market ValueAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: December 2, 2024
AGENDA ITEM:Consideration of approval of a Resolution Establishing the Fair Market Value
of the City’s Natural Gas Utility
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: The City of Waukee is one of 51 communities within the
State of Iowa to own a municipal natural gas utility. The utility was
established in the City in 1966. Over the last several years, the Mayor and
City Council have received concerns regarding the competitiveness of utility
rates for Waukee residents in comparison to surrounding communities who do
not have a municipal gas service. Prior to the City Council taking any action
to consider the disposal of a public utility, the City must establish the fair
market value of the utility in accordance with Section 388.2A of the Code of
Iowa.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: The City has obtained two appraisals. One appraisal valued
the utility at $19,550,000 and the other appraisal valued the utility at
$19,200,000. The proposed fair market value of the utility is $19,377,500
which is the average of the two appraisals.
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
PREPARED BY:Brad Deets, City Administrator
REVIEWED BY:
I8A
THE CITY OF WAUKEE, IOWA
RESOLUTION 2024-
RESOLUTION ESTABLISHING THE FAIR MARKET VALUE OF THE CITY’S
NATURAL GAS UTILITY
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, the City of Waukee has owned and operated a natural gas utility within the City
limits of the City of Waukee since 1966; AND,
WHEREAS, a proposal to discontinue the City utility and dispose of said utility by sale shall not
be submitted to the voters until the City complies with the requirements of Iowa Code Section
388.2A (2024); AND,
WHEREAS, the City has obtained two appraisals of the natural gas utility by independent
appraisers selected by the City Council of the City of Waukee, and the Iowa Utilities Board;
AND,
WHEREAS, the two appraisals determined the natural gas utilities’ fair market value as follows:
a)BCC Advisers appraisal $19,550,000
b)HDH Advisors appraisal $19,200,000;
c)The average of the two appraisals as required by Iowa Code section
388.2A(2)(a)(2)(b)(1) is $19,377,500.00; AND,
WHEREAS, the most recent depreciated value of the capital assets of the natural gas utility,
which is to be sold, if approved by the voters in accordance with Iowa Code chapter 388, is
$13,675,887.46; AND,
WHEREAS, the natural gas utility does not have any outstanding revenue or general obligations
debt issued for the purposes of the natural gas utility. There is no outstanding debt associated with
the natural gas utility; AND,
WHEREAS, pursuant to Iowa Code Section 388.2A(2)(c), the governing body’s determination of
the City utility’s fair market value pursuant to this subsection is to be dispositive of the City utility
systems price which shall be subject to negotiation by the governing body; AND,
WHEREAS, as required pursuant to Iowa Code Section 388.2A(2)(b), the City Council
determines the natural gas utility value is $19,377,500.00.
NOW THEREFORE BE IT RESOLVED that the City of Waukee hereby establishes the City’s
natural gas utility’s fair market value as $19,377,500.00 as required by Iowa Code Section
388.2A(2)(b).
Passed by the City Council of the City of Waukee, Iowa, and approved this the 2nd day of
December, 2024.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
R. Charles Bottenberg
Chris Crone
Rob Grove
Anna Bergman Pierce
Ben Sinclair