HomeMy Public PortalAbout002-2010 - Landfill Lease Termination.docBOARD OF DIRECTORS OF RICHMOND POWER AND LIGHT COMPANY
RESOLUTION NO. 2-2010
A RESOLUTION APPROVING THE AGREEMENT TO TERMINATE THE LANDFILL-GAS LEASE AGREEMENT AND AUTHORIZING THE BOARD OF DIRECTORS TO SIGN THE AGREEMENT TO TERMINATE THE LANDFILL-GAS LEASE AGREEMENT
WHEREAS, On July 22, 2003, the City of Richmond, Indiana, Department of Sanitation, acting through the Board of Commissioners for the Richmond Sanitary District (hereinafter “RSD”),
and Richmond Power & Light, a municipally owned utility company owned by the City of Richmond, Indiana, and acting through Richmond Common Council serving as its Board of Directors (hereinafter
referred to as “RPL”) entered into a Landfill-Gas Lease Agreement (hereinafter “Agreement”) by contract number 31-2003; and
WHEREAS, The Landfill-Gas Lease Agreement dated July 22, 2003 was for an initial period of two years, commencing July 1, 2003, to allow RPL the opportunity to further inspect and evaluate
the Premises to determine if sufficient LFG (Landfill Gas) was available to generate adequate electricity to make the project worthwhile and that following the phase of this two (2)
year agreement RPL had the option to renew for a period of fifteen (15) years; and
WHEREAS, RPL wished to extend the term of the Agreement an additional two (2) years, from July 1, 2005 through June 30, 2007, upon the same terms and conditions as set forth in the
Landfill-Gas Lease Agreement dated July 22, 2003 by contract number 31-2003; and
WHEREAS, On June 28, 2005, in contract number 95-2005, RSD and RPL signed an Addendum extending the Agreement for up to an additional two (2) years, from July 1, 2005 through June 30,
2007, upon the same terms and conditions as set forth in the Landfill-Gas Lease Agreement dated July 22, 2003, by contract number 31-2003; and
WHEREAS, In March of 2007, RPL was in need of additional time to further inspect and evaluate the Premises to determine if sufficient LFG (Landfill Gas) was available to generate adequate
electricity to make the project worthwhile; and
WHEREAS, On March 19, 2007, in contract number 26-2007, RSD and RPL signed a Second Addendum extending the Agreement for up to
another additional two (2) years, from July 1, 2007 through June 30, 2009, upon the same terms and conditions as set forth in the Landfill-Gas Lease Agreement dated July 22, 2003 by
contract number 31-2003, and as subsequently amended on June 28, 2005, by contract number 95-2005; and
WHEREAS, In July of 2009, the Agreement was not renewed by RPL because RSD expressed some interest in purchasing the methane collection facilities from RPL and RPL concluded that there
was not enough methane being produced to allow for electric generation. RPL also concluded that there was no reason for RPL to maintain ownership and negotiations began to determine
the purchase cost to RSD from RPL; and
WHEREAS, RSD and RPL have been involved in extensive negotiations to terminate the Landfill-Gas Lease Agreement, as amended, and to agree to the cost for RSD to purchase from RPL the
equipment involved with the methane gas collection, along with other agreed costs; and
WHEREAS, An Agreement to Terminate the Landfill-Gas Lease Agreement has been submitted to the respective Boards of RSD and RPL for their approval; and
WHEREAS, The Board of Directors for Richmond Power and Light Company have reviewed the Agreement to Terminate Landfill-Gas Lease Agreement and find the Agreement to Terminate Landfill-Gas
Lease Agreement accurately reflects the tentative agreement reached by RSD and RPL; and
WHEREAS, This resolution is expressly contingent upon the Board of Sanitary Commissioners of the Richmond Sanitary District passing and adopting a resolution similar to this resolution,
Resolution 2-2010, and signing the Agreement to Terminate Landfill-Gas Lease Agreement.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors for Richmond Power and Light Company of Richmond, Indiana, which said Board having reviewed the Agreement to Terminate Landfill-Gas
Lease Agreement, now approves the Agreement to Terminate Landfill-Gas Lease Agreement and the terms and conditions contained therein.
BE IT FURTHER RESOLVED by the Board of Directors for Richmond Power and Light Company of Richmond, Indiana, that said Board authorizes the Board Members to sign, on behalf of the Richmond
Power and Light Company, the Agreement to Terminate Landfill-Gas Lease Agreement.
BE IT FURTHER RESOLVED by the Board of Directors for Richmond Power and Light Company of Richmond, Indiana, that this Resolution, Resolution 2-2010, and the subsequent signing of the
Agreement to Terminate Landfill-Gas Lease Agreement is binding upon Richmond Power and Light Company only if the Board of Sanitary Commissioners of the Richmond Sanitary District passes
and adopts corresponding Resolution 9-2010 and signs the Agreement to Terminate Landfill-Gas Lease Agreement.
Passed and Adopted this 28th day of June, 2010, by the Board of Directors of Richmond Power and Light Company.
BOARD OF DIRECTORS OF RICHMOND POWER AND LIGHT COMPANY
S/S Bing Welch
Bing Welch, Chairman
RPL Board
S/S Phil Quinn
Phil Quinn, Vice-Chairman
RPL Board
S/S Jack Elstro
Jack Elstro, Member
S/S Kelley Cruse-Nicholson
Kelley Cruse-Nicholson, Member
S/S Bruce Wissel
Bruce Wissel, Member
S/S J. Clayton Miller
J. Clayton Miller, Member
S/S Larry Parker
Larry Parker, Member
S/S Diana Pappin
Diana Pappin, Member
S/S Bob Goodwin ____________
Bob Goodwin, Member
Attest:
S/S Karen Chasteen
Karen Chasteen, Recording Secretary