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Home My WebLink AboutResolution #5353 - electric system extension or modification guarantee agreement RESOLUTION NO. 5353 A RESOLUTION APPROVING AN ELECTRIC SYSTEM EXTENSION OR MODIFICATION GUARANTEE AGREEMENT WHEREAS, the City Council of the City of Canton has determined that it is necessary and in the best interest of the public to enter into an Electric System Extension or Modification Guarantee Agreement, as set forth in "Exhibit A," which is attached hereto and incorporated herein. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS,AS FOLLOWS: 1. That the agreement attached hereto and incorporated herein by reference as Exhibit A is hereby approved by the Canton City Council. 2. To the extent required, due to being in the public interest, the City waives any competitive bidding requirements upon approval of this Resolution by two-thirds of the corporate authorities; 3. That the Mayor and the City Clerk of the City of Canton,Illinois are hereby authorized and directed to execute said Agreement on behalf of the City of Canton. 4. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Illinois and approval by the Mayor thereof. PASSED by the City Council of the City of Canton, Illinois at a regular meeting this 18th day of January, 2022 upon a roll call vote as follows: AYES: Alderperson Greg Gossett, Angela Lingenfelter, Jeff Fritz, Craig West, John Lovell, Justin Nelson, Andra Chamberlin NAYS: None ABSENT: Alderperson Angela Hale AP ROV D: �n A UV�v ent McDowell, Ma ATTE T: Diana avley-Rock, City Clerk JIrG ''�Ameren WNW ELECTRIC SYSTEM EXTENSION or MODIFICATION GUARANTEE AGREEMENT This Agreement,dated 01/10/2022,is between Ameren Illinois Company('Company")and CITY OF CANTON("Customer"). Company and Customer agree to the following: 1. Company agrees in accordance with the applicable tariffs,rules,regulations of the Company and the Illinois Commerce Commission,now in effect and as amended from time to time,to make available to Customer single or multi-phase service by extending its electrical distribution system to the Customer's premise located at Service Location Address:25495 N LAKESHORE DR;WATER PLANT,CANTON IL ' Premise No.:941400081 DOJM W/R Contract No.: 8FRV320460 2. Company and Customer agree that Customer's cost for the extension of electric distribution service shall be based on the following: • Estimated Cost for Extension or Modification (Amount A) 118,891.21 • Amount Subject to Guarantee (Amount B) 21.777.89 • Required Non-refundable Advance Contribution [Amount A—Amount B] (Amount C) 97,113.32 • Monthly Guarantee Charge[Amount B divided by 84] (Amount D) 259.26 • Present Average Monthly Charge for Delivery Service (Amount E) 770.96 [Sum of the actual or computed Monthly Delivery Service Charges from Customer's Last 12 Delivery Service Bills divided by 12] • Required Monthly Amount[Sum of Amounts D and E] (Amount F) 1,030.22 • Total Amount(Amount F times 84) (Amount G) 86.538.53 "Delivery Service"as used in the above calculations includes the Distribution Delivery Charge from the appropriate delivery service tariff only.Amount Subject to Guarantee is equal to 84 months of expected total monthly charge for electric Delivery Service. 3. Payment of the Non-refundable Advance Contribution(Amount C)is required in advance of the Company beginning work or procuring any materials or equipment for the Company built facilities,unless Customer has entered into a Non-Refundable Contribution Agreement. Initial payment is based on estimated project cost. In the event the actual cost of Work on any project having an Estimated Cost for Extension or Modification(Amount A)of$100,000 or more increases or decreases from said Estimated Cost by 10%or more,and by at least$25,000,Company shall refund or bill the difference within one hundred eighty(180)days of completion of the installation of such facilities. Such costs shall determine the final Non-refundable Advance Contribution and Amount Subject to Guarantee. For avoidance of doubt,there will be no true-up of costs on any project having an Estimated Cost for Extension or Modification of less than$100,000. If Customer's Non-refundable Advance Contribution to the Company exceeds the total actual costs of the Company built facilities less the Amount Subject to Guarantee,the Company shall refund to the Customer the excess contribution.In the event the Customer's Non-refundable Advance Contribution plus the Amount Subject to Guarantee is less than the total actual costs of the Company built facilities, the Company shall invoice for the amount due and Customer shall pay said invoice. Such payment from the Customer is due and payable within fourteen(14)days from the date of the invoice. All amounts paid by the Customer after actual costs known are Non-refundable. 4. During the seven years of this Agreement,Customer shall pay Company,whether or not service is used,the following monthly amounts: a. If the total monthly charge for electric Delivery Service used at the Customers premise is less than Amount E,then Customer shall pay their current electric service bill plus a Deficiency Payment equal to Amount D. b. When the electric Delivery Service used at Customers premise is less than Amount F,but equals or exceeds Amount-E, then Customer shall pay their current electric Delivery service bill plus a Deficiency Payment to total but not exceed Amount F. c. If the total monthly charge for electric Delivery Service used at the Customer's premise equals or exceeds Amount F above,then Customer shall pay their actual bill. The amount of the monthly Delivery Service charge that exceeds Amount F shall be termed an Excess Payment. Page 1 of 2 i ''�Ameten ILUNOIS d. if at anytime a payment or charge due hereunder is delinquent,the Company may declare the outstanding balance of Customer's obligations and liabilities hereunder due and payable and the same shall thereupon become due and payable without any further action on the part of the Company. 5. The term of this Agreement shall be for 7 years commencing with the fourth billing period after the Extension or Modification for permanent service becomes available for Customer's use at Customers premise. If Customer has not paid the sum of Amount B and the actual monthly billed Delivery Service charges by the end of this Agreement,Customer will be billed any outstanding amounts due in the 841°month. 6. At any time,should Customer's total monthly payments for Delivery Service applied to Amount D equal or exceed the total for Amount B,the Customer will have satisfied the requirements of this Agreement and no additional Deficiency Payments will be collected. Previously collected Deficiency Payments will be credited back for the remaining term of the contract on each monthly bill for any additional Excess Payments that would otherwise be collected. If all Deficiency Payments are refunded prior to the end of the 7 year term,the Agreement will terminate and the account will bill normally. Ameren will keep any Deficiency Payments that have not been refunded at the end of the 7 year term. 7. Customer agrees that should Customer cease operation of its business at Customer's premise in the normal and usual course of business prior to-termination of this Agreement,Customer shall promptly pay Company the actual cost for the Company to remove the facilities,and the sum of$259.26(Amount D)for each month less than the 7 year term guarantee period that service was taken by Customer from Company at Customer's premise. 8. All amounts referred to above are exclusive of taxes and other similar charges,except that any advance contribution may be grossed up for tax purposes as applicable. Payments in furtherance of tax obligations shall not be considered in calculating any revenue deficiency. Interest shall not be applied to any excess payments nor shall interest be refunded. 9. Companyshall not be obligated to extend its distribution system to supply service to said premise until arrangements for extension of service to other customers to be served from the extension are completed and until Company has secured all necessary easements,licenses and permits and right-of-way has been cleared of all trees or other obstructions. 10. Company agrees to commence work on said extension after receipt and posting of all deposits or other requirements(other requirements include,but are not limited to,permits,Customer readiness,completion of grade and easements)and to use every reasonable effort to complete same. 11. Customer further agrees to provide,upon request by Company,a"Letter of Credit"or'Payment Bond"for the entire term of this Agreement to assure payment of the Customer's obligations as set forth herein. The"Letter of Credit"or"Payment Bond"may be reduced annually by the actual or calculated Delivery Service Revenue and Deficiency Payments received by Company the previous year. 12. This Agreement shall not be assigned without the consent of the Company,which consent will not be unreasonably withheld.If assigned,the Agreement shall be binding on the Customer's successors and assigns. Customer: CITY OF CANTON Ameren Illinois Company Signed By: Signed By: f 1 � Printed Name: MC)16��1 �. Printed Name: Richard Scott Title: Page 2 of 2