Loading...
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 ~- -//-~- / / . Title: ~, ~ ~,~M Page 2 of 2 LOCATIOW MAP EAST APTS  VILLAGE EAST MOHICAN APTS BRANDYWINEI ~ ;HIRE U AUDRA TERRY CT ID BE LOWERED ~IEVERLY,Al ysADRIVELN LATTIMORE c.\HOWARD _ATTIMDRE WHISPERING OAKS OAK PARK DRIVE ~ ~C TRAIL ~ J ~ 4ACK PLACE ~ TIMBER ~ z ~ CHR~ = ~ m DRIVE LEE DRIVE z PAISLEY LEE ~ ~ u ELEM ~ ~ ~ u DDUBLEDAK ~ 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