Water Payments
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The SCHWAN
FOOD COMPANY
SCHWAN'S GLOBAL SUPPLY CHAIN. INC.
January 10,2008
City of Salina
300 West Ash, P.O. Box 736
Salina, Kansas 67402-0736
Attention: Jason Gage, City Manager
Dear Mr. Gage:
This letter describes the agJe'6ementbetween Schwan's Global Supply Chain, Inc.
(for its Salina plant) ("Schwan's") and the City of Salina (the "City") to arriicably settle
their potential dispute regarding payments for water usage allegedly owed to the City by
Schwan's. Specifically, the City claims that Schwan's plant owes $932,548.68 for water
that was used by that plant, but not billed by the City due to a meter programming error
relatirig to the size of the water in-take pipes at the plant. Our agreement to settle this
matter in a mutually beneficial malmer is as follows:
(1) Beginning on January 2,2009, Schwan's will make sixty (60) monthly
payments to the City on the first business day of each month in the amount of Fifteen
Thousand Five Hundred F Oliy- T\voand 48/1 00 Dollars ($15,542.48). These payments
will be in addition to whatever amounts Schwal1's owes the City each month for its
regular water usage during those months.
(2) Schwan's denies any wrongdoing or negligence Ofal1Y kind, or thatthe
payment of $932,548.68 is legally owed to the 'City, and this settlement agreement shall
not be deemed to be an admission otherwise. The City denies any wrongdoing or
negligence of any kind, and this settlement agreement shall not be deemed an admission
otherwise, or that the al110unt of $932,548.68 is not actually owed to the City.
(3) The letter constitutes the entire agreement between Schwan's and the City
regarding the matters discussed herein, and there are no other agreements, contracts or
understandings (whether verbal, electronic or written) between Schwan's and the City
about those matters. This letter agreement supersedes any prior oral or written
negotiations, agreements, contracts or understandings between Schwan's and the City
regarding the matters discussed herein. .
Enriching the quality of lives through our food solutions.
285 MAYSON AVENUE. NE . ATLANTA. GA 30307
www.theschwanfoodcompany.com.
I am glad that we were able to resolve this issue in such an amicablemanl1er, and
than you and Martha Tasker for your assistance in this matter.
T odd King
Secretary and Division Counsel
ACCEPTED AND AGREED:
City of Salina
BY~~
Printe arne: Jason Gag -. .. ... ..
Title: City Manager
Schwan's Global Supply Chain, Inc.
'. .
BY:~.
Printed Name: odd- King
Title: Secretary and Division Counsel.
cc: Harry Smith ,
Glen Crawford
Douglas Olsem
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