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HomeMy WebLinkAboutResolution #3872 - l RESOLUTTON NO. 3 8 7 2 A RESOLUTION APPROVING AN ELECTRIC SYSTEM EXTENSION GUARANTEE AGREEMENT BY AND BETWEEN AMEREN/CIPS AND THE CITY OF CANTON AND DIRECTING THE MAYOR TO EXECUTE AND DELIVER SA.YD AGREEMENT ON BEHALF OF THE CITY OF CANTON, ILLIN4IS. WHEREAS, the City is current constructing a radial collector well on property owned by the City of Canton along Banner Dike Road in Banner, Illinois; and WHEREAS, the improvements require an electric system extension by Ameren/CIPS; and WHEREAS, Ameren/CiPS can only provide an etectric system extension through a written agreement outlining responsibiIity for costs; and WHEREAS, the Public Works, Water and Sewer Committee of the City of Canton has determined that it is necessary and in the best interests of the City of Canton to enter into an Electric System Extension Guarantee Agreement with Ameren/CIPS, as set forth in "Exhibit A" attached hereto and incorporated herein and beaz the necessary costs identi~ed therein; and WHEREAS, the City Council of the City of Canton has made a similar determination. NOW, THEREFORE, BE YT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF C.ANTON, ILLINOIS, AS FOLLOWS; I. That the agreement attached hereto and incorporated herein as Exhibit "A" is hereby approved by the Canton City Council. 2. That the Mayor and City Clerk of the City of Canton, Illinois are hereby authorized and directed to execute said Agreement an behalf of the City of Canton. 3. That this Resolution shall be in full force and effect immediately upon its passage by the City Couz~cil of the City of Canton, Illinois and approval by the Mayor thereof. 1 PASSED by the City Cvuncil of the City of Canton, Illinois at a regular meeting this 4thday of November ~ 2008 upon a roll call vote as follows: AYES: Aldermen Lewis, Strandberg, Ihnes, Nidiffer, West, Sarff, Sarff, Berardi, Schenck. NAYS: Nane . ABSENT: None. APPROVED: _ Kevin R. Meade, Mayor ATTEST: , e~~N1~~~ ancy S. ites, City Clerk 2 SYSTEM EXTENSION or lUIODIFICA710N GUARANTEE AGREEMENT This Agreement, dated Sept~mber 8, 2008. is between Central t{linois Public Service Company dlbla AmerenC[PS ("Company") and Citv of Canton "Customer"). Company and Customer agree to the following: 1. Company agrees fo make available to Customer ()single phase (X) three phase ()single and three phase electric service by extending ita electrical distribution system to the Customer premises located at: Address; Banner Di~Ce 12d Premise#: 348713000 Banner. IL DOJM Work Request # 8FRV249310 2. Company and Customer agree that Customer's cost for the extension af electric distribution service shalf be based on the foilowing: • Estimated Cost for Extension or Modification (Amount A) 28 946.00 • Less 1'ransformer Costs (Amount B) 167.00 • Amount SubJect ta Guarantee [Amount A- Amount B (Amount C) 21 779.00 • Monthly Guarantee Charge [Amount C divided by 36] (Amount D) 604.47 . Present Average Monthly Charge for Delivery Service (Amount E) ~-0- [Sum of the actual or computed Monthly Delivery Service Charges from Customer's Last 12 Delivery Serv[ce Bills divided by 12j . RequEred Monthly Amount [Sum of Amounts D and EJ (Amount F) 604.97 • Total Required Amount [Amount F times 36] (Amaunt G} 21 779.00 "Defivery Service" as used in the above calculations includes the Distributfon Delivery Charge from the appropriate delivery service tariff only. If Customer is served under a bundied tariff, the Distribution Delivery Charge that Customer would have paid on the appropriate qelivery Services tariff witl be used for cflmparison. 3. During the thres years of #his Agreement, Customer shall pay Company, whether or not service is used, the following monthiy amounts: a. If the total monthly charge for electric Defivery Secvice used et the Customer's premises is iess than Amount F above, then Customer shall have a Deflcient Payment of the difference between Amount F and the actual monthly charge for Deiivery Service added to thefr actual bil1. b. if the total monthly charge for electric Delivery 5ervice used at the Customer's premises equals or exceeds Amount F above, then Customer shaA pay their actuai bili. The amount of the monthly delivery service charge that exceeds amount F shall be termed an Excess Payment. : 4. The term of this Agreement shall be 38 months commencing with the fourth biiling period after the Extension or Modification for permanent service becomes available for Customer's use at Customer'S premise. If Cus#omer has not paid the sum of Amount C and the actuaf monthly biEled delivery senrice charges by the end of this Agreemant, Customer will be billed any outstanding amounts due in the 36~h mvnth. ' 5. At any time, should Custome~'s total monthly payments under this Agreement squal or exceed Amount G above, the Customer wiit have satisfied the requirements of this Agreement and no additional Deflciency Payments wilt be collected. Previously collected Deficiency Payments will be credited back for the remaining term of the contract on esch monthly bill for any additional Excess Payments that would otherwise be coflected. If all Deficiency Payments are refunded prior to the end of the three year term, fhe agreement will terminate and the account will bill normally. Ameren will keep any beficiency Payments that have not been refunded at the end of tha three year term. 6. Customer agrees that should Customer cease aperation of its business at Customer's premises in the normal and usual course of business prior to teRninafion of this Agreement, Customer shal! promptly pay Company the actual cost for ihe Company to remove the facilftles, and fhe sum of 604.97 (Amount for each month less than the 36 month guarantee period that service was taken by Customer from Company at Customer's premises. ' 7. All amounts referred to above are exclusive of taxes and other similat charges. Interest shall not be applied to any excess payments nor shall interest be refunded. 8. Company shall not be obligated to extend its distribution system to supply service to said premises until arrangements for extension of service to other customers to be served from the extenslon ace completed and until Company has secured a1f necessary easements, licenses and permits and right-of-way has been cleared of atl trees or other obsiructions. 9. Gustomer further agrees to provide, upon request by Company, a"Letter of CrediY' to assure payment of the Customer's obligatlons as set forth herein. 1 D. This agreement sha11 be binding upon the parties hereto and their successors and assigns. Custome~: Ca Central Illinois Public Servic Company gy; sy: Urv~.YYI `~-l S-~a Printed Name• s~~ Prlnted Name: ,~on M. Newton T~~e, . a~. r _ Title: Energy ~Services Specialists _ ; ELECTRIC SYSTEM EXTENSION GUARANTEE AGREEMENT {SEGA) ! Explanation DS3 Customer - equal to or greater than 150 KW, less than 1,000 KW ' 3Ph 277/480V -1200A service for pumps , Banner Dike Road Banner, IL August 28, 2008 ~ : $21,779.00 Oistribution Delivery Charge revenue expected over 36 months $29,779.00 divided by 36 months =$604.97 per month revenue expected NOTE: This is not the amount of the total of the bills, but the Distribution Delivery Charge portion on your regular bi{! for this account. This is what AmerenClPS charges to deliverthe electricity, regardless of what energy ' company ac#ualiy supplies the electricity. Since this is a DS3 account, the Distribution Deiivery Charge is $3.675 per lcifowatt (KW) of maximum monthly demand. The Distribution Delivery Charge is approximately $0.02 per kilowatt- hour (KV1fh) delivered. Each month AmerenClPS wili compute the total Distribution Delivery Charge portion o# the bills. If the total Distribution Delivery Charge portion is fess than $604.97 per month (ie, there is a deficiency), then you wiU be billed an amount equal to the deficiency. ; If the Distribution Delivery Charge portion is greater than $604.97 (ie, .the~e is an excess), then this excess payment will be applied toward satisfying the $21,779.00. ff, during the 36 month term of the SEGA, the.total Distribution Delivery Charge revenue received plus any de~ciency payments equal $21,779.00, the SEGA will terminate. . i i