HomeMy WebLinkAbout2025-02-03 Resolution 2025-080_Natural Gas Utility, Select Proposal for PurchaseTHE CITY OF WAUKEE, IOWA
RESOLUTION 2025-080
RESOLUTION SELECTING A PROPOSAL FOR THE PURCHASE OF THE
GAS UTILITY SUBJECT TO APPROVAL OF THE BALLOT QUESTION AT THE
MARCH 4, 2025 SPECIAL ELECTION
IN THE NAME AND BY THE A UTHORITY OF THE CITY OF WA UKEE, 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, the City has complied with the requirements of Iowa Code Section 388.2A (2025)
and has submitted to the voters at a special election to be held March 4, 2025 the question of
whether the City should be authorized to discontinue and dispose of the municipally -owned gas
utility, known as Waukee Municipal Gas Utility, by sale?; AND,
WHEREAS, the City has received three (3) proposals from state regulated public utilities to
purchase the City's gas utility subject to approval of the special election, the Iowa Utilities Board
and acceptable completion of a purchase agreement. The proposals are:
1) Interstate Power and Light Company/Alliant Energy: $16 million subject to an
adjustment based on the working capital of the Waukee utility
2) Black Hills/Iowa Gas Utility Company, LLC: $17.5 million
3) MidAmerican Energy Company: $18.75 million subject to adjustment for actual net
book value plus a 10% premium.
The proposals submitted by each of the companies are available for review by the public
on the City's website at www.waukee.org/SpecialElection.
WHEREAS, the City has thoroughly reviewed the proposals submitted by each of the
companies, including but not limited to the rate projections provided by each of the interested
companies. Recognizing that rate projections for gas utilities inherently involve estimates of gas
costs, which fluctuate in response to market conditions and various external factors, the City has
carefully considered these rate projections as part of its evaluation of the proposals: AND
WHEREAS, after considering the proposals and available data, the City believes it is in the best
interest of the citizens, if the voters approve the sale of the utility at the March 4, 2025 special
election, to move forward with the sale of the utility to MidAmerican Energy Company.
NOW BE IT THEREFORE RESOLVED by the City Council of the City of Waukee that in the
event the ballot question is approved at the March 4, 2025 special election that the City intends
to proceed to sell the gas utility to MidAmerican Energy Company.
BE IT FURTHER RESOLVED that the City Attorney and City staff should work with
MidAmerican Energy Company to finalize an Asset Purchase Agreement and other necessary
documents for consideration by the City Council at a subsequent meeting.
Passed by the City Council of the City of Waukee, Iowa, and approved this the 3`d day of February,
2025.
Courtney Clarke, Mayor
Attest: /
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
R. Charles Bottenberg X
Chris Crone X
Rob Grove X
Anna Bergman Pierce X
Ben Sinclair X