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Home My WebLink About2000-095P\SHAR6D\DEM L\UU OocomenieW,diom�ee\W\tligo No\ungham ONiuuiwdoc ORDINANCE NO AN ORDINANCE PROVIDING FOR THE PAYMENT OF EIGHTY-FIVE THOUSAND DOLLARS AND NO CENTS ($85,000 00) TO CITGO PIPELINE PRODUCTS COMPANY FOR THE RELOCATION OF ITS PIPELINE IN CONJUNCTION WITH THE NOTTINGHAM EXTENSION STREET AND DRAINAGE PROJECT, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of Denton proposes to undertake certain drainage improvements eastward from the proposed extension of Nottingham Street to Mockingbird Lane as part of the Nottingham Extension Street and Drainage Project, and WHEREAS, Crtgo Pipeline Products Company has an existing pipeline that traverses the proposed drainage channel area which must be relocated (lowered) in order to complete the pro- posed drainage improvements, and WHEREAS, said pipeline is located in a preexisting easement which would therefore necessitate that the relocating of the pipeline be at the City's expense, and WHEREAS, the City of Denton has agreed to pay the cost of relocating the existing pipeline in order to complete the proposed drainage improvements, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 The City Manager is hereby authorized to execute the "Reimbursement Agreement", attached herewith as "Exhibit A" SECTION 2 That upon completion by Crtgo Pipeline Products Company of the relocation of its existing pipeline crossing the proposed drainage channel area, the City Manager is authorized and directed to pay Crtgo Pipeline Products Company the amount of Eight -five Thousand, Dollars and No Cents ($85,000 00) as the City's agreed cost of relocating the pipeline SECTION 3 This ordinance shall become effective immediately upon its passage and approval fA PASSED AND APPROVED this the day of , 2000 JA ILLER, MAYOR ATTEST JE IFER WALTERS, ITY SECRETARY B P\SHARBD\0RP Lqm 0010 d APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATT Page 2 of 2 "EXHIBIT A" REIMBURSEMENT AGREEMENT This Reimbursement Agreement ( the "Agreement") is made on the 7th day of March 2000, by and between the City of Denton, a Texas municipality ( "CITY" ) , havmg its mailmg address at City Hall West, 221 N Elm, Denton, Texas 76201, and CITGO PRODUCTS PIPELINE COMPANY, a Delaware corporation, ( "CITGO" ) with its principal office located at 6100 South Yale, Tulsa, Oklahoma 74136 WHEREAS, CITGO is the present holder of certain Rights -Of -Way ( the "Rights -Of -Way" ), originally granted in favor of Sinclair Refining Company, a Maine corporation, ( "Sinclair") by virtue of the following instruments Right -Of -Way dated December 12, 1947, executed and delivered by W T Bush and Ethel Lee Bush, husband and wife, as Grantors, to Sinclair Refining Company, a Maine corporation, as Grantee, recorded in Volume 341, Page 481, Deed Records of Denton County, Texas Right -Of -Way dated December 20, 1947, executed and delivered by Roy Gray and Susie Gray, his wife, as Grantors, to Sinclair Refining Company, a Maine corporation, as Grantee, recorded in Volume 341, Page 288, Deed Records of Denton County, Texas Assignment and Assumption Agreement between ARCO Pipe Line Company, a Delaware corporation, and CITGO Products Pipeline Company, a Delaware corporation, dated October 3, 1994, Document No 94-110075562, Deed Records of Denton County, Texas WHEREAS, at CITY's request, CITGO has agreed to lower approximately 600 feet of 8" pipe on its Eagle North 8" pipeline ( the "Line" ) to accommodate the construction of a storm drainage ditch in the City of Denton, Denton County, Texas ( the "Project") , and WHEREAS, CITY has agreed to reimburse CITGO a flat fee of $85,000 for costs incurred and associated with the Project in accordance with the terms hereof IN CONSIDERATION of the matters described above and of the mutual benefits and obligations set forth in the Agreement, CITY and CITGO hereby agree as follows 1 All of CITGO's work incidental to the Project shall be performed by CITGO with its own forces and personnel and/or contractors paid under a contract let by CITGO in accordance with all applicable laws, regulations and ordinances 2 By executing this Agreement, CITY is agreeing to pay CITGO a flat fee of $85,000 to accomplish the Project It is also understood and agreed that CITGO, at its sole discretion, will determine the actual footage of 8" pipe that has to be lowered to accommodate the Project The amount could be more or less than the estimated 600 feet of 8" pipe to be lowered 3 CITY will submit to CITGO a Resolution from the City Counsel that states that the CITY will pay to CITGO a flat fee of $85,000 to complete the Project 4 CITY shall pay the $85,000 flat fee within thirty ( 30 ) days from the date of the completion of the Project via wire transfer ( as directed by CITGO ) of immediately available federal funds CITGO may charge CITY a finance charge in the amount of one and one -quarter percent ( 1 25% ) per month on any unpaid balance and any accrued but unpaid finance charges Page 1 of 2 "EXHIBIT A" 5. CITY hereby releases and forever releases CITGO, its affiliates and their respective directors, officers, employees, and agents for any damages or losses ( including lost profits and business interruption ) suffered by CITY from the lack of or failure of any permits or easements, from the design, construction, and inspection associated with the Project, except for willful acts and acts of negligence of CITGO. This Agreement shall be construed and interpreted in accordance with the laws of the State of Texas. This Agreement incorporates all understandings and arrangements between the CITY and CITGO concerning the subject matter of this Agreement. THE By: Nan Title: City Manager CITGO PIWCUCTS PIPEL D& COMPANY Title: Page 2 of 2 LOCATION MAP oArD �t AI j, � (p IOKCROGT VILIIANYB0R0 ROV NISTri000 d ROaIN MISTYV00D LANE LV00D C1N C twjwPSITY VILLAGE EAST € � MCHI I APTS 4 oyo .f�►d' w� k BRANDYWINE \i OAKSNIRE �{ \fk 8h AUDRA ` T y ` YEVERLY DRIVE g 9 YA LN LATTIIOR y` NpyARO CT WHISPERING OAKS yL�l d tt BRITTANY OAK PARK DRIVE \ S tlNeea TRAIL eHatsr R j HACK PLACC LEE DR VC G gig PAISLEY I PAISLEY iREET DDp11 y Y MEN �ESTGN DR '� ti0 VILLAGE F EAST o MOHICAN y APTS Z 3 A rtic9 A ROPD z MLNGO 3 BRANDYWINE o +� U � Emw H C= d Y OAKSHIRE a. w v M 3 f 2e AUDRA IN ti q TERRY CT a i PROPOSED SECTION qqn Ue e TO BE LOWERED BEVERLY DRIVE O' A 4 Q A YSA LN LATTIMORE HOWARD CT LATTIMORE w WHISPERING OAKS w a Li w r- o OAK PARK RIVE a w Lo z > 0 J Y F- ❑ Q z N MACK PLACE TIMBER TRAIL z Lias CHRIS PHERa f � a = w BARNEt DRIVE J U pa a a a u LEE DRIVE PAIS Y REET PAISLEY Li N z � P11 Li LEE C3 z zz a 3 WE ON DR u w U a� DOUBLEOAK t CITGO CITGO Products Pipeline Company P. 0. Box 1410 Euless, TX 76039 March 23, 2000 Paul Williamson City of Denton City Hall West 221 N. Elm Denton, Texas 76201 RE: Reimbursement Agreement Our File: LL 958 - 124, 125, RE-13992 and RE-13993 Dear Mr. Williamson: Please find enclosed a fully executed counterpart of subject Reimbursement Agreement. I have notified our Operations Management that they may schedule the work to begin to lower our existing Eagle North 8" pipeline to accommodate your storm drain. After the work is completed, an invoice will be forwarded to you in the amount of $85,000. Instead of a wire, you may return the City of Denton's check made payable to CITGO Products Pipeline Company to me. I will notify you when the work is to begin. Thank you for your assistance in this matter Sincerely yours, Cl a M. Stone Real Estate Manager CMS:cS Enc. Cc: Katie Murray - Tulsa Dale Stogsdill - Arlington