I-2 - Resolution 2021-056 - Electric Facilities Construction and Payment Agreement

ELECTRIC FACILITIES CONSTRUCTION AND PAYMENT AGREEMENT THIS ELECTRIC FACILITIES CONSTRUCTION, AND PAYMENT AGREEMENT is made and entered into this _____ day of ________________, 2021, by and among CENTRAL IOWA POWER COOPERATIVE, an Iowa Cooperative with its principal place of business in Cedar Rapids, Iowa ("CIPCO"); The CITY OF NORTH LIBERTY, located in Johnson County, Iowa ("NORTH LIBERTY") and the CITY OF TIFFIN, located in Johnson County, Iowa ("TIFFIN"); collectively referred to as "Parties"; WITNESSETH: WHEREAS, CIPCO is a generation and transmission Cooperative owning electric transmission lines and facilities in Johnson County, Iowa; and WHEREAS, NORTH LIBERTY and TIFFIN (Collectively referred to as "Cities") are neighboring cities located in Johnson County, Iowa; and WHEREAS, CIPCO is involved in a project to construct a new transmission line ("the line") in Johnson County, Iowa; and WHEREAS, subsequent to CIPCO designing the line, obtaining regulatory approval for the line, special ordering materials for the construction of the line, and after acquiring private easement rights in Johnson County, CIPCO was informed that the Cities were working on a project for the extension of Forevergreen Road; and WHEREAS, upon learning of CIPCO's project and its private easement rights in an area that would otherwise interfere with the Cities' road extension plans, the Cities approached CIPCO about modifying its project design plans to accommodate the Cities' plans for the extension of Forevergreen Road; and WHEREAS, in order to accommodate the change in location of CIPCO's transmission line, a significant amount of engineering redesign and modification to ordered materials must be performed by CIPCO and/or its agents; and WHEREAS, in exchange for CIPCO's agreement to redesign and move the line, the Cities agree to pay CIPCO up to $40,000.00 for its expenses related to redesigning and moving the line to accommodate the Cities' request; and WHEREAS, CIPCO agrees to pay any and all expenses related to the redesign and construction of the line in excess of $40,000.00; and WHEREAS, the Parties understand and agree that construction is currently in progress and that time is of the essence; and the Cities agree to reimburse CIPCO for any mobilization charges imposed by CIPCO's contractor related to the Cities delay in signing this agreement and that any such mobilization charge will be in addition the $40,000.00 contemplated by this agreement; and