Ascension Sewer’s current proposal (red-line version to highlight changes)

Obtained pursuant to a records request (which Parish Attorney O’Neil Parenton attempted to withhold for some reason), we present the most recent Construction, Operating and Cooperative Endeavor Agreement proposed by Ascension Sewer, LLC.  The draft contained in the pdf. file below is the “red-lined” version so that you may more easily consider any changes from the December 2019 version that was rejected by Ascension’s Parish Council in a 7-2 vote on December 20.

Redline (changed pages only)

At the same meeting Councilman Aaron Lawler made a motion to have another vote to accept/deny the proposal, but only after at least one public meeting was held to allow the citizens of Ascension Parish to voice concerns, ask questions…

We have no idea if such a Public Meeting will happen though Parish President Clint Cointment has assured that it will.  Such a meeting would be meaningless unless the people have ample opportunity to digest the document.  Enjoy.


Omitted from the red-line version are several appendices, the most momentous of which is Appendix IV: Operator Termination Fee which reads:

APPENDIX IV
OPERATOR TERMINATION FEE

The Operator Termination Fee shall be an amount equal to the following:

(i) if such termination is due to an Event of Default of Operator pursuant to Section 8.1 hereof, the sum of (a) the principal amount of any outstanding debt incurred by the Operator associated with the System and any associated prepayment penalties or costs, such that the Operator Termination Fee shall be sufficient to retire such debt incurred by the Operator, provided, that, if any of such outstanding debt constitutes DEQ SRF borrowing, the District may elect to assume such debt, to the extent permitted, in lieu of paying the Operator therefor; and (b) the aggregate amount of equity contributed to the Operator by its owners as of the Termination Date less the aggregate amount of distributions made to such equity owners prior to the Termination Date; or

(ii) if such termination is due to any reason other than an Event of Default of Operator pursuant to Section 8.1 hereof, the sum of (a) the principal amount of any outstanding debt incurred by the Operator associated with the System and any associated prepayment penalties or costs, such that the Operator Termination Fee shall be sufficient to retire such debt incurred by the Operator, provided, that, if any of such outstanding debt constitutes DEQ SRF borrowing, the District may elect to assume such debt, to the extent permitted, in lieu of paying the Operator therefor; and (b) the aggregate amount of equity contributed to the Operator by its owners as of the Termination Date less the aggregate amount of distributions made to such equity owners prior to the Termination Date; and (c) an amount necessary to achieve no less than an 8% return on the aggregate amount of equity contributed to the Operator by its owners calculated from the Transfer Date through the Termination Date.

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