17-07 INTEK/INKOT Special Rate Agreement

Home Browse Search

d. upon completion of the dedicated wastewater sewer lines, I/N Tek transferred ownership of the dedicated wastewater sewer lines to the City, e. the approximate cost, in 2017 dollars, for the City to construct (2) wastewater sewer lines of similar size and location to the two (2) lines constructed by I/N Tek is $16,000,000, f. the wastewater sewer lines led to the development of the real property more commonly known as the Blackthorn district, g. I/N Tek manages its own storm water issues, thus mitigating any potential capital investments from the City as it relates to the City's combined sewer overflow issue, and other waste treatment issues. h. I/N Tek's construction and subsequent dedication of the two (2) wastewater sewer lines created public benefits to the City that justify the approximate $3,200,000 rate credit offered herein pursuant to the calculations found in paragraph 2 of the Agreement. NOW, THEREFORE, in consideration of the obligations, terms and conditions contained herein, the adequacy of which the parties expressly acknowledge, the City and I/N Tek agree as follows: 1. INCORPORATION OF RECITALS The Recitals are incorporated into the operative provisions of this Agreement as if fully set out herein. 2. RATE In recognition of the unique facts set forth above surrounding I/N Tek's customer relationship with the City and I/N Tek's capital contribution to the City's wastewater infrastructure, the City hereby grants a special rate to I/N Tek in the amount as set forth below: January 1, 2017 through December 31, 2017 — 5% reduction in the rate determined by Section 17 -21 of the City Code ( "Base Rate "). Section 17 -21 of the City Code is incorporated herein by reference as if fully set out in this Agreement. January 1, 2018 through December 31, 2018 — 10% reduction in Base Rate. January 1, 2019 through December 31, 2026 — 14% reduction in Base Rate. I/N Tek shall also pay the surcharge under Section 17 -81 of the City Code as well as any other surcharge applicable under the City Code, including but not limited to, Section 17 -23 of the City Code which addresses heavy demand. I/N Tek shall promptly pay the Cite in a manner consistent with the City's routine billing services the net amount due under the special rate (Base Rate, less credit, plus applicable surcharges). 3. TERM OF AGREEMENT Throughout the term of this Agreement, I/N Tek shall remain connected to and a customer of the City for all of its requirements for wastewater collection and treatment. The term of this Agreement Page 2 of 6