R2022-127 Resolution Authorizing Second Amendment City of Decatur - Archer Daniels Midland Company - Raw Water Agreement

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"water delivered to ADM"shall mean that amount of water taken from the Lake less that amount of water returned to the Lake, for any given billing period,as measured by the meters installed pursuant to Sections 3 and 10 of this Agreement. The City and ADM agree to implement reasonable alternate billing procedures during periods of flooding or other events that disrupt normal metering. The City's initial rate for raw water sold to ADM under this Agreement shall be$0.35 per 1,000 gallons. The rate as of November 15,2021 shall be$0.305 per 1,000 gallons. Effective May 1, 2022,and continuing annually on May I thereafter,the rate will increase by 2.5 percent or by the annual percentage change of the U.S. Department of Labor Midwest Urban Consumer Price Index for each corresponding preceding January 1 to December 31 time period,whichever is greater. The City will bill ADM monthly for raw water provided under this Agreement. All bills will be due and payable thirty(30)days after their date. In the event ADM fails to make payment when due,ADM shall pay a late payment charge of one and one-half percent(1 112%)per month. In addition,upon five(5) days actual notice or eight(8)days mailed notice,the City may disconnect the raw water supply for nonpayment and make a charge as determined by the City Council for disconnection and reconnection." 3. Lake Improvement a. Pursuant to Section 9 of the 2014 Raw Water Supply Agreement, it is agreed by the parties at a prorated bill shall be calculated for ADM's costs for the period November 16, 2021 through December 31,2021 and thereafter all bills shall be calculated every calendar year. b. Attachment A to the 2014 Raw Water Supply Agreement is amended to explicitly provide for City bond indebtedness through the retirement of the current bonded debt for the same on March 1,2038 and sediment traps dredging expenses for dredge projects as an eligible Lake improvement that is subject to the cost sharing provisions set forth in Section 9 of the 2014 Raw Water Supply Agreement. c. The following sentence is added to the end of Section 9 of the 2014 Raw Water Supply Agreement: "Notwithstanding any provision to the contrary,ADM's obligation to make any payments for Lake Improvements will terminate with its annual payment in 2037, regardless of whether any bonded debt is refinanced,additional improvements are made to the Lake,or additional payments for the bonded debt or other expenses for Lake Improvements remain. If the City wishes to do any additional improvements to the Lake and desires ADM to contribute to the expenses,the City will need to engage in discussions with ADM. If an agreement is reached, it will need to be memorialized in an amendment signed by both parties to be effective."