2011-25RESOLUTION NO. 2011 - 25
COUNCIL MEMBER CHRISTIANSEN INTRODUCED THE FOLLOWING RESOLUTION:
WHEREAS, an Agreement for the design of the expansion of the Blair Water Treatment
Plant between the City of Blair, Nebraska and Cargill, Incorporated has been prepared and
presented to the City Council providing for the terms and provisions of the design of the
expansion of the Blair Water Treatment Plant, a copy of which Agreement is attached hereto,
marked Exhibit "A" and by this reference made a part hereof, and
WHEREAS, the terms and conditions thereof are acceptable to the municipality.
NOW, THEREFORE, BE IT RESOLVED that said Agreement referred to hereinabove,
is hereby adopted and accepted by the City of Blair and the Mayor and City Clerk are hereby
authorized and directed to execute same on behalf of the municipality.
COUNCIL MEMBER CHRISTIANSEN MOVED THAT THE RESOLUTION BE ADOPTED
AS READ, AND SAID MOTION WAS SECONDED BY COUNCIL MEMBER KEPHART.
UPON ROLL CALL, COUNCIL MEMBERS STEWART, SHEPARD, KEPHART,
CHRISTIANSEN, WOLFF, HALL AND JENSEN VOTING "AYE" AND COUNCIL
MEMBERS NONE VOTING "NAY', THE MAYOR DECLARED THE FOREGOING
RESOLUTION PASSED AND APPROVED THIS 12TH DAY OF JULY, 2011.
CITY OF BLAIR, NEBRASKA
%JE E. REALPH, MAYOR
ATTEST:
4 ) ,
BRENDA R. WHEELER, CITY CLERK
(SEAL)
STATE OF NEBRASKA )
) :ss:
WASHINGTON COUNTY )
BRENDA R. WHEELER, hereby certifies that she is the duly appointed, qualified and acting
City Clerk of the City of Blair, Nebraska, and that the above and foregoing Resolution was
passed and adopted at a regular meeting of the Mayor and City Council of said City I held on the
12 day of July, 2011. ,
BRENDA R. WHEELER, CITY CLERK
I I ,
' 11 O ki 01 N
THIS AGREEMENT made and entered into on November, 2011, by and between
the City of Blair, Nebraska (hereinafter referred to as "City "), and Cargill, Incorporated through
its Corn Milling North America Business Unit (hereinafter referred to as "Cargill ").
WHEREAS, City owns and operates a water works and water supply system (hereinafter
referred to as "Water System ") which serves the City and its inhabitants, as well as customers in
the area surrounding the City, and is willing to expand the Water System to meet the needs of its
customers, including Cargill as one of its customers, whose premises are situated outside the
corporate limits of the City.
WHEREAS, City and Cargill entered into an Estoppel Agreement on February 2, 1994,
wherein Cargill agreed to purchase its required water usage, up to 3,000,000 gallons per day,
from City, and amended agreements dated June 27 2000 and March 9 2007 for the purchase
of up to 12,500,000 gallons per day collectively the "Estoppel Agreement.
WHEREAS, Cargill is contemplating future expansion(s) that will require additional
water usage from the Water System.
WHEREAS, in order to accommodate Cargill's needed increased water usage from the
City Water System, an additional expansion to the current Water System is necessary.
WHEREAS, in anticipation of the future water usage requirements from Cargill
expansion(s), City and Cargill desire to proceed with the engineering design of the Water System
expansion under the terms and provisions set forth hereinafter.
FOR VALUABLE CONSIDERATION, and the mutual covenants and promises herein,
the parties hereto agree as follows:
1. Engineer: City has selected the firm of HDR Engineering, Inc. of Omaha, Nebraska
(hereinafter referred to as "HDR ") to design the surface water treatment plant expansion (the
"Services "). Upon execution of this Agreement, City will authorize HDR to commence the
engineering design work necessary for said Water System expansion. Once the Services have
been initiated, City will give prompt notification of commencement to Cargill. In addition, all
decisions of suspension and /or termination should be made in consultation with Cargill. City will
give prompt written notice to Cargill of any anticipated suspension or termination of the services
and the reasons thereof before such suspension or termination. City will not terminate the
Services without written approval by Cargill.
2. Engineering Fee: The parties agree and understand that the cost for the engineering
design and preparation of the bidding documents is $415,867.00. Attached hereto, marked
Exhibit "A" is a copy of the HDR Engineer Agreement ( "HDR Agreement "). Cargill hereby
approves the terms of the HDR Agreement.
3. Cost: Cargill agrees to reimburse the City the cost of the HDR engineering design and
bid document fee in an amount not to exceed $415, 867.00 based on the HDR Agreement.
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1 r•
EMMEM
Description
Individual Rate
County Road Reconstruction Bond
0.003280
Courthouse Annex Bond
0.005968
County Bond
0.010763
County - Public Safety Commun.
0.011893
County -E911
0.004408
County- Veterans Aid Fund
0.000201
County - General Fund
0.354812
Blair School 1- General Fund
1.037360
Blair School 1 -Bond
0.124597
Blair School 1- Special Bldg Fund
0.024052
Blair City - General Fund
0.281398
Blair City- Debt /Bond
0.009020
Blair City- Street
0.065211
Blair Airport
0.032526
Sanitary District
n/a
ESU 3
0.016087
NRD
0.032753
Metro Tech - General Fund
0.075000
Metro Tech - Capital Fund
0.010000
County Ag- General Fund
0.002107
County Ag- Sinking Fund
0.000704
County Historical Society
0.002824
Other
n/a
Other
n/a
Consolidated Total Levy
2.104964
Municipal Assessed Valuation
$472,281,109
Description Subtotal Rate
(County
(School District
0.3913251
1.1860091
Municipality 0.355629
Airport Authority 0.032526
Sanitary District n/a
Educational Service Unit 0.016087
Natural Resource District 0.032753
(Community Coll
0.0850001
City of Blair, Nebraska Brenda Wheeler, City Clerk
Cargill agrees to reimburse the City the amount of each invoice received by City from HDR for
Services rendered under the HDR Agreement. Cargill agrees to reimburse the City the total cost
of each invoice within thirty (30) days after receipt of such invoice from City, unless Cargill
determines that an invoice should not be paid due to a breach by any party of the HDR
Agreement entered into between HDR and City. Cargill will not pay any additional fees,
including but not limited to, late fees or interest accrued as a result of late payment of invoices to
HDR from City. In addition, any change order under the HDR Agreement must be approved by
both City and Cargill prior to any work proceeding under such change order.
Cargill reserves the right to withhold payments to such extent as may be necessary to
protect Cargill from loss caused by: (a) defective Services not remedied; (b) third party claims;
(c) failure of HDR to make payments properly to consultants, subcontractors or for material or
labor; (d) reasonable doubt that the Services will be completed in accordance with the HDR
Agreement; or (e) disputed invoice sums.
If requested, City shall provide Cargill access to all records and accounts relating to the
Services for Cargill's review and audit. If as a result of any review or audit, the invoices
submitted are found to be in error, such error shall be promptly adjusted by City and HDR.
Cargill shall be responsible for all costs of performing the audit unless HDR has overbilled City,
or City has overbilled Cargill, in either case, Cargill will not be responsible for the cost of the
audit.
4. Credit Against Future Water Bill: The parties hereto agree that, if, subsequent to the
date of this Agreement, a new agreement is executed by and between City and Cargill in which
Cargill agrees to purchase and City agrees to provide to Cargill additional water necessary for
future Cargill plant expansion(s) (over and above the gallons contemplated in the Estoppel
Agreement referred to hereinabove), with water rates and terms mutually agreeable to City and
Cargill (said new agreement to be referred to hereinafter as "Water Service Agreement "), Cargill
shall be entitled to a credit against water usage fees due and owing pursuant to the Water Service
Agreement; provided, further, that said credit shall begin with the first regular water usage
billing invoice after the effective date of the Water Service Agreement; provided, further, that
said credit shall be equal to the total amount paid by Cargill for the engineering fee pursuant to
paragraph 3, hereinabove, and that said total amount shall be equally amortized over Thirty -Six
(36) consecutive months. City shall submit to Cargill monthly water use invoices showing the
net balance due after the monthly credit s deducted.
5. Covenants: The City agrees to: (i) forward any proposed amendments to the terms and
conditions of the Estoppel Agreement for increased water supply within sixty (60) days of the
execution of this Agreement; (ii) propose reasonable terms in said amendments; (iii) use its best
efforts to furnish Cargill with the new rates by March 31, 2012; and (iv) use its best efforts to
ensure the surface water treatment plant expansion will be completed on or before July 30, 2013
(the "Deadline "). If, in Cargill's sole discretion, City is not projected to meet the Deadline, City
will meet with Cargill to develop plans on how to expedite the project.
2
3331823v6
6. Default: In the event that Cargill is in material default of any of the terms or provisions
of the Water Service Agreement, then, in addition to and without limitation of any other rights
and remedies available under the Water Service Agreement or under applicable law, the amount
of any remaining credit which Cargill could have taken pursuant to paragraph 4, hereinabove,
shall be reduced to the extent of damages associated with such material default, and Cargill shall
have no further right to claim said credit against any other sums due under the Water Service
Agreement, if such default has not been cured within ten (10) days of Cargill's receipt of notice
thereof from City.
7 Indemnification: City shall indemnify and hold harmless Cargill, its directors, officers,
employees, agents and representatives from and against any and all claims, damages, liabilities
fines, penalties, costs and expenses (including reasonable attorneys' fees) to which Cargill may
be subjected as a result of (i) City's breach of HDR Agreement, or (ii) any third party claims
arising out of the HDR Agreement or HDR's work under such Agreement.
8. Title of Sections: Any titles of the several sections of this Agreement are inserted for
convenience of record only and shall be disregarded in construing or interpreting any of the
provisions hereof.
9. Notice: Except as otherwise expressly provided in this Agreement, any notice, demand,
or other communication under this Agreement by any party to the other party shall be
sufficiently given or delivered if sent by registered or certified mail, postage prepaid, return
receipt requested, or delivered personally; and
(a) in the case of Cargill, if mailed or delivered personally to:
General Manager or Operations Manager
Cargill, Incorporated
Corn Milling North America Business Unit
Blair Facility
650 Industrial Road
Blair, NE 68008
(b) in the case of City, if mailed or delivered personally to:
City of Blair
c/o City Administrator
218 S 16th Street
Blair, NE 68008
or at any such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other party as provided for in this paragraph.
10. Law Governing: The parties agree that this Agreement shall be governed and
construed in accordance with the laws of the State of Nebraska.
3
3331823v6
Attest::
- 7 - k
Brenda R. Wheeler, City Clerk
ATTEST:
CITY OF BLAIR, NEBRASKA
By
m Realph, Mayor
CARGILL, INCORPORATED
Corn Milling North America Business Unit
CI
Name: Name:
Title: Title:
Rod Storm
City Administrator
City of Blair
Blair, NE 68008
rodstorm @ci.blair.ne.us
402.426.6693 Direct Office
402.533.3535 Cell
402.426.4195 Fax
4
3331823v6
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IN WITNESS WHEREOF, d1c Partit.s hereto itavki executed Mis Agvamcnt tht! EffcoOva Date Of Whild! 1, on
Owner:
I
By�
Title;
Date Signed:
HDR,y"er,61WL trK.
Fly
, rim, so*r Vice President
Daw siped:
Addro-i� P,13 givikt# 4041 S,
Addiess for ghIng a0fices.
118 South 10'k strobt 8404 1:01-w Hilh Drive
Bl NpbraRka 6801M Gmwha, Nchr"ka 68114
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Coplyrightp.1-002 National Society a r t a ess l om
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Engineer's Services
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