WHOLESALE CONTRACTS - A RESOURCE OPTION

Wholesale contracts are a prudent business option for smaller cities a nd rural systems that desire to maintain local control while addressin g quality requirements and cost limitations, These contracts benefit b oth sellers (who gain a larger customer base over which to spread cost s) and buyers (who gain a product that meets state and federal standar ds while holding down local costs), As parr of a larger strategic plan ning process, the Kansas City, Mo., Water Services Department undertoo k an extensive telephone survey of water providers to assess their use of and interest in wholesale contracts, The survey indicated that boy -sell arrangements were common; wholesale contracts must be reached th rough a long-term, mutually acceptable business relationship; and regu lar statements of support by leaders reassure uncertain potential whol esale customers.