Mobile home park owner asks Dundee to renegotiate water-purchase agreement; city to seek legal review

Representatives of a mobile home park told the council they would like to renegotiate an existing contract under which the city purchases water from wells located on the park property. The owner’s representatives said the fixed rate in the agreement is now low relative to current costs and requested guidance on how to begin renegotiation.

City staff said the file shows an agreement — with amendments in 1994 — that sets a fixed price and obligates the city to pay electricity costs to obtain the water; staff did not identify an escalation clause. Staff advised that both sides obtain legal counsel to clarify rights and options under the contract before any negotiation.

A public commenter with historical knowledge of the parks’ facilities said the city originally acquired the wells because the park needed a supply to develop; he noted the city has since covered maintenance and upgrade costs and questioned whether raising payments to the current owner would materially benefit Dundee ratepayers.

Council said it wants to continue using the water source but asked staff to confer with the city attorney and the park owner’s counsel to identify legal positions and negotiation points; if council action or an amendment to the contract is necessary, the owner can return with counsel.

What’s next: City staff will exchange contact information with park representatives so counsel can confer; legal analysis will determine whether renegotiation is feasible and what council action might follow.