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<br />fJ. 1 6~ <br />i>':i; <br /> <br />TUESDAY, JANUARY 13, 1987 <br /> <br />persons or loss or damage to the property caused by the <br />negligent acts of omissions of the indemnifying party, its <br />agents or employees in connection with or as a result of this <br />Agreement or the performance of either party's obligations <br />hereunder. There are also other significant provisions under <br />paragraph 11 of the Agreement that are pertinent to this <br />operation. <br /> <br />12. Provisions are made in the Agreement for the administration <br />of the Agreement through the designation by each party of an <br />authorized representative and an alternate. Any disputes <br />relating to the Agreement are first discussed by these <br />representatives who are to use their best efforts to promptly <br />resolve any such disputes. If they fail then the matter is <br />referred to the party's chief executive officers who are to <br />use their best efforts to resolve any disputes. If these <br />officers fail to resolve any dispute either party may <br />institute suits or action to remedy any such disputes. <br /> <br />13. In the event Multitrade goes out of business or fails to <br />deliver contract capacity for twelve (12) consecutive months <br />the City has a right to acquire the generating facility at <br />fair market value. <br /> <br />Benefits to the City <br /> <br />The project as proposed as covered by the Agreement between Multitrade and <br />the City will be beneficial to the City by: <br /> <br />1. Reducing the City's cost of purchase power from $200,000 to <br />$300,000 annually, depending to a large extent upon our <br />ability to effectively use power from this facility, to <br />reduce peak demand. This savings results from an offer by <br />Multitrade to sell their power to the City for thirty-one and <br />one-half (31.5) mills base with a guarantee from the City of <br />a market of seven (7) megawatts as compared to the City's <br />cost of purchased power from APCo which is approximately <br />thirty-four (34) mills on peak. A tariff was designed and <br />included in the Agreement. This tariff was designed to <br />operate within the restraints imposed by the APCo tariff <br />whereby there would be no penalty to the City from APCo <br />because of buying from another supplier and will result in a <br />first-year estimated power cost savings of $216,000. <br /> <br />2. Providing annually approximately $180,000 in local taxes. <br /> <br />3. Increasing annual water and sewer revenues by $50,000. <br /> <br />4. Increasing gross electric revenue for operating the facility <br />by approximately $154,000. <br /> <br />5. Creating fifteen (15) new jobs in the City. <br /> <br />6. Stimulating the local economy in excess of $4,000,000 <br />annually through purchase of fuel, goods, materials, <br />supplies, etc. <br />