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Hastings approves Amendment No. 4 to coal supply agreement with AGP
Summary
Council approved the fourth amendment to the coal supply agreement between Hastings Utilities and Ag Processing Inc., clarifying penalties for excess purchase, lowering minimum and maximum quantities by $10,000 to match AGP's projected usage, and reflecting utility-board recommendation.
The Hastings City Council approved Amendment No. 4 to the coal supply agreement with Ag Processing Inc. (AGP), updating penalties for excess coal purchases and lowering the contract's minimum and maximum quantities by $10,000 to align with AGP's projected needs. The utility board reviewed the change and recommended approval.
Derek, representing Hastings Utilities, said the amendment aligns contract quantities and clarifies how excess purchases are handled. He said the contract has been amended previously and that AGP has been a long-term partner since the coal loadout facility was established. "This agreement clarifies some penalties and excess coal purchase, how they handled, lower quantities. We lowered the minimum and the maximum both by, dollars 10,000 to better align with AGP's projected usage moving forward," Derek said.
Council asked whether sales tax applies to the transaction; staff said they would confirm the tax treatment and noted the facilities involved are outside the city limits. The motion to approve the amendment passed 8'0'0to''''''00.
