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Jeld-Wen, Inc._Co-Generation AgreementTHE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi BARRY LINDAHL CITY ATTORNEY To: Mayor Roy D. Buol and Members of the City Council DATE: January 17, 2013 RE: Co- Generation Agreement Between The City Of Dubuque, Iowa and Jeld -Wen, Inc. JELD -WEN, Inc. ( "JELD- WEN "), an Oregon corporation with its corporate headquarters located at 3250 Lakeport Blvd., Klamath Falls, Oregon 97601, owns real estate in Dubuque, Iowa on which it operates a manufacturing facility. JELD -WEN entered into a consent decree with the United States Environmental Protection Agency (EPA) for alleged violations of the Clean Air Act as set forth in Civil Action No. 11 -453 ST (the "Consent Decree ") with respect to this real estate. The EPA has approved an Emission Reduction Plan under the Consent Decree (the Project) covered by the attached Agreement. The Parties have agreed to complete this Project according to the terms of the Agreement. Pursuant to the Agreement, the City agrees to perform the following obligations: 1) Install microturbines in the Solids Processing Building to use the biogas from anaerobic digestion to generate electricity and recover waste heat for on- site use at the Water & Resource Recovery Center. The minimum generation capacity shall be 400 kW. 2) Install a high - pressure skid in the Digester Control Building to boost the pressure of the biogas to approximately 90 psig for use in the microturbines. 3) Install the required mechanical and electrical infrastructure to serve the new compression and microturbine equipment. 4) Provide JELD -WEN with quarterly written updates of the project status. This quarterly update shall be received by JELD -WEN no later than the 15th day of the month following the end of each calendar quarterly (i.e., October 15th, January 15th, etc.). Quarterly written reports shall be given to JELD -WEN's designated recipient: OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001 -6944 TELEPHONE (563) 583 -4113 / FAX (563) 583 -1040 / EMAIL balesq @cityofdubuque.org Bonnie Basden Director - Environmental Fiber Operations (541) 883 -3372 x 2521 bonnieb@jeld-wen.com In consideration for the performance of the City's obligations, JELD -WEN agrees to reimburse the City for the Project up to a maximum total amount of Three Hundred Eighty -Six Thousand Eight Hundred Forty -Three Dollars ($386,843). I recommend the Agreement be submitted to the City Council for consideration and approval. BAL:tls Attachment cc: Michael C. Van Milligen, City Manager Teri Goodman, Assistant City Manager Gus Psihoyos, City Engineer Steve Brown, Project Manager Jonathan Brown, Water and Resource Recovery Center Manager F:IUSERS\fsteckle \Lindahl\JELD -WEN, Incl MayorCouncil _JeldwenAgreement_011713.doc 2 AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND JELD -WEN, INC. This Agreement (the "Agreement ") is. entered into and effective the 22nd day of January , 2013 by and between JELD -WEN, Inc. ( "JELD - WEN "), an Oregon corporation with its corporate headquarters located at 3250 Lakeport Blvd., Klamath Falls, Oregon 97601, and the City of Dubuque, Iowa ( "City ") located at 50 West 13th Street, Dubuque, Iowa, 52001, each a "Party" and together the "Parties" to this Agreement. RECITALS I. JELD -WEN owns real estate in Dubuque, Iowa. II. JELD -WEN entered into a consent decree with the United States Environmental Agency (EPA) for alleged violations of the Clean Air Act as set forth in Civil Action No. 11 -453 ST (the "Consent Decree ") with respect to this real estate. III. The EPA has approved an Emission Reduction Plan under the Consent Decree, a copy of which Emission Reduction Plan is attached hereto ( "the Project ") and is covered by this Agreement. IV. The Parties have agreed to complete the Project according to the terms of this Agreement. In consideration of the above recitals and the mutual promises and agreements contained herein, and intending to be legally bound the Parties agree as follows: SECTION 1. CITY OF DUBUQUE OBLIGATIONS: City agrees to perform the following obligations in connection with the Project: 1.1. Install microturbines in the Solids Processing Building to use the biogas from anaerobic digestion to generate electricity and recover waste heat for on- site use at the Water & Resource Recovery Center. The minimum generation capacity shall be 400 kW. 1.2. Install a high - pressure skid in the Digester Control Building to boost the pressure of the biogas to approximately 90 psig for use in the microturbines. 010713ba1 1.3. Install the required mechanical and electrical infrastructure ( "Infrastructure ") to serve the new compression and microturbine equipment (collectively "Equipment "). 1.4. Adhere to the installation schedule outlined in "the Project ". 1.5. Until installation is complete, provide JELD -WEN with quarterly written updates of City's obligations hereunder. This quarterly update shall be received by JELD -WEN no later than the 15th day of the month following the end of each calendar quarterly (i.e., October 15th, January 15th, etc.). Quarterly written reports shall be given to JELD -WEN's designated recipient: Bonnie Basden Director - Environmental Fiber Operations (541) 883 -3373 x 2521 bonniebaield- wen.com SECTION 2. JELD -WEN OBLIGATIONS: JELD -WEN shall reimburse City for materials and labor for City's obligations described in Section 1 up to a maximum total amount of Three Hundred Eighty -Six Thousand Eight Hundred Forty -Three Dollars ($386,843) (thet'Total Allotted Amount "). Payment terms are Net 45 days from the invoice date. JELD -WEN may in good faith withhold payment of any disputed portion on an invoice until City verifies both the amount and validity of the invoice. SECTION 3. CONDITIONS, RELEASE AND INDEMNIFICATION. 3.1 While it is the intention of City to install the Equipment as described in Section 1, City's obligations hereunder are subject to and conditioned upon the following: 3.2 JELD -WEN acknowledges that the Project remains its sole obligation with regard to the Consent Decree and its covenants to U.S. Environmental Protection Agency, U.S. Department of Justice and the Iowa Department of Natural Resources SECTION 4. GENERAL TERMS: 4.1. Independent Contractors. The Parties are independent contractors in all matters relating to this Agreement and nothing in this Agreement should be construed to create a partnership, joint venture or agency relationship. Any provision in this Agreement, or any action by JELD -WEN, which may appear to give JELD -WEN the right to direct or control City in performing its obligations means City shall follow the desires of JELD -WEN in the results of the tasks only. Page 2 of 4 4.2. Governing Law. This Agreement shall be governed by the laws of the State of Iowa without regard to its conflicts of laws provisions. Jurisdiction and venue shall reside solely in the District Court in Dubuque County, Iowa, and each Party gives its consent and waives its right to contest the jurisdiction thereof. 4.3. Assignment. Neither Party may assign its respective rights and obligations under this Agreement without the prior written approval of the non - assigning Party. 4.4. Non - Waiver. Either Party's failure to insist on performance of any of the terms or conditions herein or to exercise any right or privilege hereunder shall not be deemed to waive any other right or privilege. 4.5. No Third Party Beneficiaries. This Agreement does not establish third - party beneficiary rights in any party. 4.6. Binding Effect. This Agreement shall be binding upon and inure to the benefit of each Party hereto and their respective permitted successors and permitted assigns. 4.7. Survival of Obligations. All provisions of this Agreement which by their nature contemplate performance after the expiration or earlier termination hereof, including all provisions that contain obligations of confidentiality, indemnity, defense, representations, warranties, waiver or release made by any party to this Agreement, shall survive such expiration or earlier termination of this Agreement. 4.8. Entire Agreement. This Agreement embodies the complete, exclusive and final agreement between the Parties with respect to subject matter herein, supersedes all prior agreements and can be modified only by written amendment signed by both Parties. 4.9 Counterparts. For all purposes, electronic or facsimile signature(s) shall constitute and shall have the same effect as original signatures. This Agreement may be executed in one or more counterparts each of which shall be considered an original and all of which shall constitute one and the same instrument. This Agreement is executed by authorized representatives of each of the Parties as of the effective date set forth in the first paragraph above. CITY OF DUBUQUE, IOWA By: JELD -WEN, INC. By Page 3 of 4 Attest: 4giOr, i By:'� K: vi S. Firnstahl, Ci Clerk Print Name: 7wA -(tam Az i.uo Title: recla Tea) - WE-A1 6-41. 6v6., F: \USERS\tsteckle\Lindahl \JELD -WEN, Inc\Revised Jeld -Wen Agreement (00912284- 3)_010713.docx 00912284 -1 \10422 -089 Page 4 of 4