2007/10/17 Council Agenda Packet

A L If the Consumer Price Index-adjusted principal amount owed is not fully paid within 30 days of the City's receipt of notice of acceptance of the license, the City shall pay interest on the remaining unpaid balance at a rate of five percent per annum(5%) for the first sixty days thereafter and then at the rate per annum provided by Washington law to apply in the absence of a stated rate until payment in full is made by the City. If the Consumer Price Index shall be discontinued,the Consumer Price Index identified by the United States Department of Labor,Bureau of Labor Statistics, or its successor(the"Bureau"), as the successor index to the Consumer Price Index, or if none is so identified,then that index published by the Bureau most closely approximating the Consumer Price Index, which such adjustment, if any, to base as may be necessary or appropriate as to provide transfer of calculation from the original Consumer Price Index to the next, shall thereafter be deemed to be the Consumer Price Index for purposes of this paragraph. In the event of dispute over identification of any such successor Consumer Price Index, the published opinion or advice of the Bureau shall be dispositive. D. ANADROMOUS SALMONID STUDY COSTS 1. The City agrees to pay the nonrefundable sum of$ 56,568.77 within 30 days of the Execution Date of this Supplemental Agreement as the City's share of the costs incurred by the District for production of the technical report entitled "Project Effects on Anadromous Salmonids and Bull Trout in the Sultan River." This payment shall constitute payment in full of the City's share of costs associated with producing and completing such Report. E. AMENDMENT TO ARTICLE II,SECTION 2 OF THE 1981 AGREEMENT 1. The parties agree that the provisions of Article II, Section 2, of the 1981 Agreement shall be amended to read as follows: The parties hereby expressly agree that the requirements of the City within the water supply service area shall have precedence over any Sultan Project requirement for power generation purposes for the term of this Agreement up to a maximum water requirement equal to the City's existing certificated state water rights as of February 27, 2007, provided the City stays within the service area described in Exhibit A.The parties agree that they will cooperate in the storage and release of waters from Spada Lake and from Lake Chaplain so that the water supply requirements of the City may be met. This amendment is appended as part of Exhibit 1 to this Supplemental Agreement. 5