2000-095 ORDIN CENO
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 EFFECTWE DATE
WHEREAS, the City of Denton proposes to undertake certain drmnage improvements
eastward from the proposed extension of Nottingham Street to Mockingbird Lane as part of the
Nottingham Extension Street and Drainage ProJect, and
WHEREAS, Citgo Pipeline Products Company has an exmtlng plpehne that traverses the
proposed drmnage channel area which must be relocated (lowered) in order to complete the pro-
posed drainage improvements, and
WHEREAS, smd 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
plpehne in order to complete the proposed drmnage 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 Citgo Pipeline Products Company of the
relocation of its existing pipeline crossing the proposed drmnage channel area, the City Manager
is anthonzed and directed to pay Citgo Pipeline Products Company the amotmt of Eight-five
Thousand, Dollars and No Cents ($85,000 00) as the City's agreed cost of relocating the plpehne
SECTION 3 This orchnance shall become effective immediately upon its passage and
approval
PASSED AND APPROVED thls the /~L]~ dayof L/~_~. ,2000
ATTEST
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Page 2 of 2
"EXHIBIT A"
REIMBURSEMENT AGREEMENT
Tins Retmbursement Agreement ( the "Agreement" ) is made on the 7th day of [qlt rC h ,
2000, by and between the C~ty of Denton, a Texas mumc~pahty ( "CITY" ), havmg ~ts maflmg address at
C~ty Hall West, 221 N Elm, Denton, Texas 76201, and CITGO PRODUCTS PIPELINE COMPANY, a
Delaware corporatton,( "CITGO" ) w~th ~ts prmmpal office located at 6100 South Yale, Tulsa, Oklahoma
74136
WHEREAS, CITGO xs the present holder of certain l~dghts-Of-Way ( the "Raghts-Of-Way" ),
originally granted m favor of Smcla~x Refining Company, a Marne corporatmn, ( "SrnclaW' ) by wrtue of
the following instruments
lhght-Of-Way dated December 12, 1947, executed and dehvered by W T Bush and Ethel
Lee Bush, husband and wife, as Grantors, to Stnclatr Refinmg Company, a Marne
corporatton, as Grantee, recorded m Volume 341, Page 481, Deed Records of Denton County,
Texas
2 Raght-Of-Way dated December 20, 1947, executed and dahvered by Roy Gray and Susie
Gray, h~s wife, as Grantors, to Srnclatr Ref'm~ng Company, a Marne corporation, as Grantee,
recorded m Volume 341, Page 288, Deed Records of Denton County, Texas
3 Assignment and Assumption Agreement between ARCO Ptpe Lrne Company, a Delaware
corporation, and CITGO Products Ptpelme Company, a Delaware corporatton, dated October
3, 1994, Document No 94-R0075562, Deed Records of Denton County, Texas
WHEREAS, at CITY's request, CITGO has agreed to lower approxtmately 600 feet of 8" p~pe on
tts Eagle North 8" p~pelme ( the "Lme" ) to accommodate the construction of a storm dramage thtch ~n the
C~ty of Denton, Denton County, Texas ( the "ProJect"), and
WHEREAS, CITY has agreed to retmburse CITGO a flat fee of $85,000 for costs mcu~red and
assomated w~th the ProJect m accordance w~th the terms hereof
1N CONSIDERATION of the matters described above and of the mutual benefits and obhgat~ons
set forth m the Agreement, CITY and CITGO hereby agree as follows
All of CITGO's work mctdantal to the ProJect shall be performed by CITGO w~th ~ts own
forces and personnel and/or contractors pard under a contract let by CITGO m accordance
w~th all apphcable laws, regulations and ordinances
2 By executing th~s Agreement, CITY is agreemg to pay CITGO a flat fee of $85,000 to
accomphsh the Project It ts also understood and agreed that CITGO, at lis sole thscret~un,
will determine the actual footage of 8" p~pe that has to be lowered to accommodate the
Project The amount could be more or less than the esttmated 600 feet of 8" ptpe to be
lowered
3 CITY will subrmt to CITGO a Resolution from the C~ty 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 wtthm thtrty( 30 ) days from the date of the completton
of the ProJect via wire transfer ( as dxrected by CITGO ) of ~mmedtately avarlable federal
funds CITGO may charge CITY a finance charge ~n the amount of one and one-quarter
percent ( 1 25% ) per month on any unpatd balance and any accrued but unpatd £rnance
charges
Page I of 2
"EXHIBIT A"
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.
!/tj-,,-/ !
Name: VliCn?] yJez
Title: C'i 'l;y ~qana§er
CITGO PR. OCUCTS PIPELI~ COMPANY
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Title: ~, ~ ~,~M
Page 2 of 2
LOCATIOW MAP
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CITGO Products Pipeline Company
March 23, 2000
P, O. Box 1410
Euless, TX 76039
Paul Williamson
City of Denton
City Hall West
221 N. Elm
Denton, Texas 76201
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 Reimbursemem 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 begir~
Thank you for your assistance in this matter.
Sincerely yours,
Real Estate Manager
CMS:cs
Cc: Katie Murray - Tulsa
Dale Stogsclill - Arlington