(KNZA)--Brown County Rural Water District #2 is expressing disappointment with the city of Hiawatha’s decision to terminate the 40-year water purchase agreement between the two parties.

The City Commission voted unanimously Monday evening to terminate the contract, effective immediately.  In taking the action, the Commission cited a recent judge’s ruling, which found the District had violated terms of the contract by selling water to customers outside of its boundaries.

The commission voted to set the water rate for the district at the same rate charged city customers--$3.58 per thousand gallons—effective February 9th.

Rural Water District  #2 Chairman Leroy Puvogel says the new rate is more than double the rate established in the 40-year contract and doesn’t reflect a justifiable wholesale water rate.

Puvogel says the District was established to provide quality water at a fair and reasonable price for their customers.  He says the District is committed to this purpose, and will review all available options to provide a sustainable water supply for its patrons.

Response submitted by Brown County RWD#2

  February 5, 2015

 The Rural Water District #2 (RWD2) was disappointed to learn through media channels that the City of Hiawatha (City) voted Monday evening to terminate the current 40- year water purchase agreement (a court ruling option granted to the City Jan. 21^st.). The rate increase that has been advised to RWD2 effective Feb. 9^th is more than double the rate established in the 40- year contract, and does not reflect a justifiable wholesale water rate. RWD2 was established to provide quality water at a fair and reasonable price for members of our rural community. RWD2 is committed to this purpose, and will review all available options to provide a sustainable water supply for its patrons.

 No additional comments regarding the Court Case and ruling can be made at this time.

  Respectfully,

 Leroy Puvogel – RWD2 Board Chairman