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HomeMy WebLinkAboutR-2020-044 C-51 Reservoir Project Amendment to Agreement for Capacity Allocation in Phase 1RESOLUTION NO.2020A44 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE AN AMENDMENT TO THE AGREEMENT FOR CAPACITY ALLOCATION IN PHASE 1 OF THE C-51 RESERVOIR PROJECT TO EXTEND THE PROJECT COMPLETION DATE; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That City officials approved an Agreement for Capacity Allocation in Phase 1 of the C-51 Reservoir at the June 26, 2018 City Commission meeting by a unanimous vote and executed by City_ officials. Section 3. That the proper City officials are authorized to execute the attached Amendment to the Agreement for Capacity Allocation in Phase 1 of the C-51 Reservoir Project with Palm Beach Aggregates, LLC, a copy of which Amendment is attached as Exhibit "A" and which is made a part of and is incorporated into this Resolution by this reference. Section 4. That the City Manager and City Attorney are authorized to make minor revisions to the Amendment to the Agreement for Capacity Allocation in Phase 1 of the C-51 Reservoir Project that are deemed necessary and proper for the best interest of the City. Section 5. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 6. That this Resolution shall be in full force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on May 1 • • jITY CLERK APPROVED AS TO FORM AND CORRECTNESS: THOM�AS J.`;;�ANSBRO CITY ATTORNEY LORI LE MAYOR AMENDMENT TO AGREEMENT FOR CAPACITY ALLOCATION IN PHASE 1 OF THE C-51 RESERVOIR CITY OF DANIA BEACH This Amendment ("Amendment") to the Agreement for Capacity Allocation in Phase 1 of the C-51 Reservoir (the "Agreement") is made and entered into on May , 2020, by and between Palm Beach Aggregates, LLC ("Company"), a Florida limited liability company, with its principal offices at 20125 State Road 80, P.O. Box 700, Loxahatchee, Florida 33470, and the City of Dania Beach, Florida ("Participant"), a municipality organized and existing under the laws of the State of Florida, whose address is 100 W Dania Beach Blvd, Dania Beach, FL 33004. Company and Participant shall collectively herein be call the "Parties" and each be individually identified herein from time to time as a "Party." Recitals A. The Parties entered into the Agreement on July 31, 2018, to provide for surface water storage capacity in the proposed collaborative development project known as the C-51 Reservoir, as further described in the Agreement ("C-51 Reservoir"), which is intended to be constructed in two phases. B. The Agreement provides for an allocation to Participant of one (1) million gallons per day of storage in Phase 1 of the C-51 Reservoir, as further described in the Agreement ("Phase 1 Reservoir"). C. Despite the best efforts of the Parties, it has taken longer than anticipated to satisfy certain conditions precedent set forth in the Agreement, and Lite Parties desire to amend the Agreement to extend the relevant time periods thereunder and to continue working together towards completion of the Phase 1 Reservoir project. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. The foregoing recitals are true and correct, and are incorporated herein by reference. 2. Unless otherwise stated, for paragraphs 3 — 4 below, words in s+t.,,,.', *h,.,.,,,��, type are deletions from existing text and words in underline type (aside from previously included headings) are additions to existing text. 3. Section 3.2 of the Agreement is hereby amended, in part, as follows: 3.2 Termination. Upon delivery of written notice to Company, as defined by Article 15 below, Participant may terminate this Agreement: 3.2.1 If Company fails to notify Participant, on or before September- 3��'z84-BMay 31, 2020, that it has sufficient permits, commitments, and financing to commence the construction of the Phase 1 Reservoir; or 4. Section 11.1 of the Agreement is hereby amended, in part, as follows: 11.1 All of Company's obligations under this Agreement are expressly made subject to all of the following conditions, which Company agrees to use its reasonable efforts to promptly pursue and satisfy, time being of the essence: 11.1.2 Company's securing full Construction Financing for the Phase 1 Reservoir on or before May 311 20201A�ithir ninety i90days aft-e f +1.o A4f;r:M,,v v^^RVA7R P1ed G^„^^'^ n^+�, with a closing date within ninety (90) days thereafter (the "Phase 1 Construction Finance Date"). On or before the tenth (loth) day after the Phase 1 Construction Finance Date, and at least sixty (60) days before the closing date for Construction Financing, Company shall notify Participant in writing of the Phase 1 Construction Finance Date, as well as the anticipated closing date for Construction Financing. 5. Appendix D (C-51 Reservoir —Phase 1 Project Completion Schedule), attached hereto, and incorporated herein, sets forth Company's estimated outside dates for completion of construction and commencement of operations of the C-51 Reservoir. Company shall use its best efforts to achieve the project milestones listed in Appendix D within the time periods specified. If Company anticipates a delay in achieving any of the project milestones listed in Appendix D, Company shall promptly notify Participant in writing of such anticipated delay. 6. Except as modified herein, all terms and conditions of the Agreement shall remain in full force and effect. In the event of any conflict or ambiguity between this Amendment and the Agreement, this Amendment shall control. 7. This Amendment is effective when fully executed by the Parties, and may be executed by the Patties in counterparts which, when taken together, shall have the force and effect of an original binding document. (Remainder of Page Intentionally Left Blank) 2 IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be executed by their respective duly authorized officers as of the date and year set forth above. ATTEST: THOMAS SCHNEIDER, CMC CITY CLERK APPROVED FOR FORM AND SUBSTANCE THOMAS J. ANSBRO CITY ATTORNEY PARTICIPANT CITY OF DANIA BEACH, FLORIDA, a Florida municipal corporation LORI LEWELLEN MAYOR ANA M. GARCIA, ICMA-CM CITY MANAGER 3 WITNESSES: Print Name Print Name 0 COMPANY PALM BEACH AGGREGATES, LLC, a Florida limited liability company By: Name: Title: Date: Enrique Tomeu President Appendix D C-51 Reservoir —Phase 1 Project Completion Schedule — Outside Dates Description Construction Financing Commitment Notice of ConstructionFinancing Commitment Closing on Construction Financing Commencement of Construction Construction Substantial Completion Operational Testing Final Cleanup and Demobilization Closing and Turnover to C-51 Reservoir, Inc. Commencement of Operations Milestone Dates May 31, 2020 June 11, 2020 August 31, 2020 September 2020 July 2022 August 2022 August 2022 September 2022 September 2022