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Waukee council approves purchase agreement to sell municipal gas utility to MidAmerican Energy
Summary
Council approved a purchase agreement to sell the Waukee municipal gas utility to MidAmerican Energy Company, with a negotiated purchase price of $18.75 million subject to a post-closing true-up and a floor value.
The Waukee City Council on April 14 approved a purchase agreement to sell the city-owned municipal gas utility to MidAmerican Energy Company.
City staff described a year-long evaluation and a competitive bid process that attracted three offers; MidAmerican was the selected bidder and the utility sale was approved by Waukee voters on March 4. City staff presented the negotiated purchase agreement, which sets a purchase price of $18,750,000 and provides for a true-up adjustment at closing to reflect actual net book value plus a 10% premium, subject to a floor of $17,650,000. Staff said the planned closing is toward the end of calendar year 2025.
Brad (city staff) presented the purchase agreement and recommended approval; council members voted unanimously to approve the resolution authorizing the contract for sale. Representatives from MidAmerican were said to be in attendance at the meeting.
Staff indicated the agreement includes assets of the utility and that the final purchase price will be adjusted prior to closing to reflect additions to system value. The sale follows voter approval and an extended negotiation and due-diligence process; staff will continue to work with MidAmerican on closing logistics and statutory approvals as required.
