Baldwin City is closing in on the renewal of a contract to sell wholesale water to the city of Wellsville, which officials say will be good for both communities and for the city of Lawrence.

Wellsville’s current 40-year contract to purchase water from Baldwin City expires on Dec. 31, 2017. The two communities have been in contract renewal talks for more than two years. Negotiations picked up steam with the arrival in February of new Baldwin City Administrator Glenn Rodden.

Baldwin City is the city of Lawrence’s second largest water customer behind Kansas University and bought 165 million gallons in 2015. Wellsville purchased 45 million gallons of that amount.

Baldwin City finance director Brad Smith told the Baldwin City Council on Monday that the city and Wellsville were close to an agreement that would sell water to Wellsville at a rate of from $1.09 to $1.25 per 1,000 gallons. That charge would be on top of Baldwin City’s purchase price from Lawrence of $2.91 per 1,000 gallons. Wellsville currently pays $3.60 per 1,000 gallons.

Smith told the council that Wellsville’s water purchase helps the Baldwin City water department meet its overhead expenses. The agreement doesn’t bind Wellsville to buy water from Baldwin City, but the rate should be attractive enough to retain that city as a customer, he said.

“We want the money we would make selling to Wellsville,” he said. “We want to give them a contract at a rate they can’t get water cheaper somewhere else.”

Wellsville city engineer Mike Brungardt said the Wellsville City Council approved a 15 percent water rate increase earlier this year, which would pay for the increased water price.

Brungardt told the Baldwin City Council the long negotiations weren’t the result of loggerhead disagreements but changes on the governing bodies in both communities. Wellsville understood the need of Baldwin City to recover its cost and receive some compensation for its efforts and risks in providing the water, he said.

Smith said he hoped to have a contract for the council’s consideration within the next two months. It was not known how long a term the new contract would have, he said.

In other business, the council:

• Approved an ordinance that changed the city council’s ordinance approval process. With the change, the council will no longer have first and second readings, then votes, on ordinances. The new process does require the council to discuss a proposed ordinance in open session during the meeting scheduled before the measure comes to a vote.

• Canceled the council’s July 5 meeting. The council did schedule a work session on the 2017 budget for 5:30 p.m. July 11 at the Baldwin City Public Library.

• Amended the city’s animal control ordinance to allow residents to keep as many as 12 chickens or ducks. Roosters remain banned.