Common Contracts
1 similar Water Services Agreement contracts
Subject: CJ Water and Sewer Agreement AmendmentsWater Services Agreement • November 19th, 2014
The City and CJ Bio America entered into 20 year water and sewer agreements in 2012. Both agreements had a specific minimum usage amount, otherwise known as a “take or pay” provision. The key purpose for the take or pay provisions for 20 years was to guarantee a sufficient revenue source for the City to pay-off the debt secured to build capacity improvements to both the water and sewer system to meet CJ’s needs. CJ has requested a revision to both agreements. The Company wants the minimums to be reduced in the initial three years, and then increased to make up the difference from the original agreement within the first ten years of the contract. Additionally, the contract structure does not translate well into actual utility billing process.
