R2013-20 AUTHORIZING THE AMENDED AND RESTATED RAW WATER SUPPLY AGREEMENT WITH ARCHER DANIELS MIDLAND COMPANY

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-2- Section 2—The addition of ADM recycled stormwater as a raw water source. City staff opinion — The addition enhances our community's raw water supply in that it allows the company another source of water for operations, thereby lessening the need for water drawn from Lake Decatur. Raw water revenue loss will be negligible. Section 4(e) — Increases the maximum amount of South Water Treatment Plant (SWTP) water that ADM can purchase daily from 12 million gallons to 14 million gallons. City staff opinion—This is a minor water revenue enhancement. Section 8 —Allows ADM to use up to 5 million gallons of ADM well water per day to supply the North Water Treatment Plant at no charge. City staff opinion—ADM has a well capacity of 5 million gallons per day and is planning to add an additional 7 million gallons per day (by constructing two collector wells) for a total of 12 million gallons per day. All of these wells have been or will be funded entirely by ADM and greatly enhance our community's raw water supply. Additionally, ADM's cost to construct and operate the wells is a reasonable offset to the City's raw water revenue loss when the wells are used. Section 12 (d) — Requires the City to maintain for ADM's benefit a U.S. Army Corps of Engineers temporary dam permit for two rock dams similar to those constructed during the drought of 1988 by the City to enhance the ability of the North Water Treatment Plant to pump water from Lake Decatur. Since the dams were temporary, they were removed in 1989. City staff opinion — This is a relatively easy permit to maintain that does not require a substantial amount of staff time. SUMMARY: These changes to the Agreement will significantly enhance our community's raw water supply, especially during drought conditions, and continue to provide the City with a sustainable water revenue stream. POTENTIAL OBJECTION: None foreseen. STAFF REFERENCE: Ryan McCrady, City Manager, 217-424-2801 or rmccrady@decaturil.gov Keith Alexander, Director of Water Management, 217-424-2863 or kalexander@decaturil.gov BUDGET/TIME IMPLICATIONS: Budget implications are neutral. Regarding time implications, ADM cannot begin collector well construction until the Agreement is amended and restated accordingly. Attachments cc: Bill Manley and Bryan Mikeworth, ADM Co.