Blaine council approves JPA to supply bulk water to Lexington, estimates ~$235,000 revenue

The Blaine City Council voted May 4 to approve a five-year joint powers agreement allowing the City of Lexington to purchase bulk water from Blaine.

City Manager Thorvig summarized the agreement as the conclusion of a long-standing dispute between the two cities, noting it follows litigation that was previously settled in Blaine's favor. The agreed rate is 101% of Blaine's lowest residential tier plus a 2% administrative fee; Lexington will meter its municipal usage, report bulk usage to Blaine and remit payment quarterly. The agreement contains a back-pay provision covering use through Jan. 1, 2026, and a required periodic review of the arrangement.

Thorvig said staff's preliminary estimate shows potential additional revenue of about $235,000 to Blaine's water fund from providing bulk service to Lexington. Councilmember Newland pressed for clear billing and default remedies to ensure timely payment. "Let's make sure we're keeping this as tight as watertight as we possibly can," Newland said.

City Attorney Larson described the contract's event-of-default and remedies, including seeking specific performance and recovery of fees and costs, and noted the JPA includes an automatic review every 24 months and a termination option after 18 months if necessary. The council approved the agreement by motion.

Next steps: the city manager and public works staff will implement the JPA oversight procedures, meter-verification and quarterly invoicing outlined in the agreement.