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Home My WebLink AboutO-2004-2713 REQUEST FOR CITY COUNCIL AGENDA ITEM Agonda Da', R'qu"',d, ~~4 Requested By: S. Gillett ~ Department: Public Works Appropriation Source of Funds: GEN 902 Account Number: N/A Report: Resolution: Ordinance: xx Amount Budgeted: $1,900,000 Exhibits: Ordinance Amount Requested: $197,493 Exhibits: Pipeline Adiustment Agreement Budgeted Item: YES Exhibits: Letter from ExxonMobil SUMMARY & RECOMMENDATION The upcoming construction of Canada Road and Utilities will require pipeline adjustments to accommodate proposed storm sewer and utility installations. ExxonMobil Pipeline Company and the City have previously agreed that the City of La Porte would be responsible for 50% of the cost. The total cost to adjust the three (3) pipelines was estimated at $385,201, or $192,600 as La Porte's share. The Agreement was never executed due to funding questions and the lack of right of way. The City has recently acquired all rights of way in the southern portion of the Project, and has identified funding sources, including participation by Harris County. ExxonMobil was requested to update the cost estimate and provide a new agreement (attached). The new estimate totals $394,986, with La Porte's share at $197,493. The City will be required to pay its share in advance. Once the adjustment is complete, the actual cost will be determined, and the difference will be paid/refunded. Although Harris County has agreed, in principal, to participate in the Project, there is no agreement at this time. Action Required bv Council: Approve ordinance authorizing the City Manager to execute a Reimbursement Agreement with ExxonMobil Pipeline Company for $197,493. Approved for City Council A2enda &~J-- -0.--- D ra: ea eIle, City Manager !+~ 1. O~ Date ORDINANCE NO. 2004- ;9-'1,3 AN ORDINANCE APPROVING AND AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LA PORTE AND EXXONMOBIL PIPELINE COMPANY, TO PROVIDE PIPELINE ADJUSTMENTS FOR THE CANADA ROAD PROJECT, APPROPRIATING THE SUM NOT TO EXCEED $197, 493 . 00 , TO FUND SAID CONTRACT, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, a copy of which is on file in the office of the City Secretary. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum not to exceed $197,493.00 from City of La Porte Project No. GEN 902, to fund said contract. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the pUblic as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ATTEST: PASSED AND APPROVED, this 12th day of April, 2004. 'dll MthtL #ltfll Mart A. Gillett City Secretary f D: ;1 . ~1/1;//\ ~~W~~ w. Askins Attorney CITY OF LA PORTE B~ orman :. Malo:e Mayor 2 REIMBURSEMENT AGREEMENT This Agreement made and entered into this _ day of , 2004, by and between ExxonMobil Pipeline Company ("EMPCo"), having a mailing address at P.O. Box 2220, Houston, Texas 77252-2220, and City of La Porte ("OWNER"), whose mailing address is P.O. Box 1115, La Porte, Texas 77572-1115: WITNESSETH WHEREAS, EMPCo owns and provides operational services for Can go to Strang Road four-inch diameter pipeline, Clear Lake to Bay town six-inch diameter pipeline and eight-inch diameter pipeline and Bay town to Pierce Junction eight-inch diameter pipeline in Harris County, Texas, said pipelines being a part of EMPCo's pipeline system; and WHEREAS, OWNER desires to improve Canada Road, H Street and the City Park which will encroach upon EMPCo's pipeline easement; and WHEREAS, OWNER has requested that EMPCo take protective action on the segment of the aforementioned pipelines to accommodate the installation of said Canada Road, H Street and the City Park; and WHEREAS, EMPCo has agreed to take such steps as are necessary to inspect, recondition, reroute, adjust and/or take other protective action on said pipelines; and WHEREAS, OWNER has agreed to reimburse EMPCo fifty percent for the actual costs and expenses incurred in the adjustment of said pipelines; NOW, THEREFORE, for and in consideration of the mutual covenants and agreements hereinafter set forth, it is hereby agreed by and between OWNER and EMPCo as follows: ADJUSTMENT OF PIPELINES: EMPCo shall reroute and lower three pipelines for the proposed Canada Street, displace the product out of the ten inch pipeline, flare the product on the four inch pipeline between valves on either side of the project and make tie ins. The work on the pipelines shall be done by EMPCo and/or its contractors in a workmanlike and expeditious manner in accordance with accepted industry practices and work schedules, and using diligence to complete said adjustment. PAYMENT: OWNER shall pay in advance to EMPCo the estimated cost for the adjustment of said pipelines as follows: Company Labor $ 10,296.00 Contract Services & Equipment $252,662.00 Materials & Equipment $ 23,264.00 Administrative Overhead $ 57,244.00 Contingency $ 51,520.00 Total 50% $394,986.00 $197,493.00 Should the actual cost be less than the estimated cost, the difference shall be refunded to OWNER upon project completion. Should the actual cost be greater than the estimated cost, OWNER shall remit the difference to EMPCo within ninety (90) days of the presentation of a statement showing actual costs and support materials. If, for any reason, OWNER terminates the subject project, OWNER shall be responsible to EMPCo for all costs incurred up to the time of cancellation, any and all materials procured by EMPCo up to that time shall remain the sole property of EMPCo. INGRESS AND EGRESS: OWNER hereby grants to EMPCo the right of ingress and egress across all lands owned, leased or controlled by OWNER as may be reasonable or necessary for EMPCo to adjust, inspect, cover, test, connect, operate and maintain the adjusted pipelines. Such ingress and egress shall be along routes as agreed by EMPCo and OWNER. OWNER, ITS SUCCESSOR OR ASSIGNS, SHALL HOLD EMPCo HARMLESS AND FREE FROM ANY AND ALL CLAIMS OF DAMAGES WHICH MAY OCCUR, ARISING OUT OF OWNER'S, ITS SUCCESSORS AND ASSIGNS NEGLIGENCE IN CONNECTION WITH THE DEVELOPMENT OF THE LAND OR IN PARTICULARLY WITH THIS PROJECT. FURTHER, EMPCo SHALL NOT BE LIABLE FOR ANY DAMAGES TO THE SURFACE OF THE LAND, PLANTS, GRASS, SHRUBBERY, TREES OR ANY OTHER IMPROVEMENTS RESULTING FROM THE WORK DEFINED HEREIN OR RELATING TO THE WORK DEFINED HEREIN, EXCEPT THAT EMPCo SHALL BE LIABLE FOR AND SHALL INDEMNIFY OWNER FROM AND AGAINST LIABILITIES, CLAIMS AND COSTS RESULTING EITHER FROM THE ACTIVITIES OF EMPCo EMPLOYEES, AGENTS AND/OR CONTRACTORS OR FROM SPILLAGE OR DISCHARGE OF PRODUCTS OR OTHER HAZARDOUS SUBSTANCE FROM THE PIPELINES. ENTIRETY OF AGREEMENT: This agreement constitutes the entire agreement between the parties hereto and no alterations of the terms and conditions of this Agreement shall be valid unless in writing and signed by both of the parties hereto. This agreement shall be binding upon and inure to the benefit of the parties hereto, their successors or assigns. IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first written above. CITY OF LA PORT~ ~ By: AWttJ Cl Name:J>J)y-a 13 hazel/eJ Title: C-i) !:,y}"., ~er EXXONMOBIL PIPELINE COMPANY By: Name: Title: Date: