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R-86-810 - 1/9/1986DATE: January 7, 1986 SUBJECT: Council Agenda, January 9, 1986 ITEM: 11I - Consider a resolution authorizing the May to enter into a contract with Lone Star Gas Company for the construction of a gas line. This agreement will enable Lone Star Gas Company to provide the gas line needed to service the pool heaters. The estimated cast of this project was ' $8,280.00. This project came in under bid at $5,605.00. Staff recommends approval. RESOLUTION NO. WHEREAS, it is necessary to construct a gas line from Main Street to the Round Rock Municipal Pool; and WHEREAS, Lone Star Gas Company has submitted a Commercial Cash Deposit Contract in order to accomplish the necessary construction of said gas line; and WHEREAS, the City Council wishes to approve and execute said Contract and pay the required fees; Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS That the Mayor of the City of Round Rock, Texas, is hereby authorized and directed to execute on behalf of the City, a Commercial Cash Deposit Contract to permit the construction of said gas line from Main Street to the Round Rock Municipal Pool,a copy of said Contract being attached t hereto and incorporated herein for all purposes. ATTEST: RESOLVED this day of , 1986. JOANNE LAND, City Secretary MIKE ROBINSON, Mayor City of Round Rock, Texas t L FORM 3664 9/7e CASH DEPOSIT GAS MAIN CONTRACT (Commercial Form) THIS AGREEMENT, WITNESSETH, that LONE STAR GAS COMPANY (hereinafter called "COMPANY ") and CITY OF ROUND ROCK PARKS AND RECREATION DEPARTMENT (hereinafter called "APPLICANT ") of 205 EAST MAIN ST. ROUND ROCK, WILLIAMSON 78664 County, Texas, in consideration of these premises and of other valuable consideration hereby acknowledged, do agree as follows: (1) That Company will extend its gas mains as follows: To extend main to serve Round Rock City Swimming Pool, in the City of Round Rock, Williamson County, TX. a total distance of 1, 185 feet (hereinafter referred to as "MAIN EXTENSION "). The route of said Main Extension is shown as Exhibit "A" hereto attached and hereby made a part hereof. . (2) Without any right to refund except solely as provided in paragraphs (3) and (4) hereof, Applicant will pay to Company 5 5, 605.00 in advance (said amount being the net amount for said Main Extension after allowing to Applicant the sum of $ —0— for bona fide consumer(s) upon said Main Extension). (3) For each bona fide gas consumer hereafter connected directly to the Main Extension covered hereunder during the first two (2) years after the date hereof, Company agrees to refund Applicant FTVR HUNDRED TWENTY AND NO/ 100th Dollars ($ 520.00 ) or alternatively in lieu of the above refund for connection, in the case of each commercial gas consumer having a yearly net gas bill of more than One hundred Dollars ($100.00) connected to the Main Extension covered hereunder within the initial two (2) year term, Company will refund the sum of One Hundred Fifty Dollars ($150.00) for each full One Hundred Dollars (5100.00) net gas revenue received from such consumer during the first twelve (12) months only for which gas bills are incurred. If a gas consumer has not been connected to Company's system within the first two (2) years for a sufficient time to have incurred twelve (12) monthly bills, the yearly net gas bill for the purpose of computation of the additional refund provided in the preceding sentence of this paragraph, shall be estimated by Company on the basis of information furnished by the consumer covering consumer's operations, rate applicable and estimated annual - gas consumption. In the event that the alternative gas comsumption does not result in a larger refund than the refund for connection provided above, Applicant shall be entitled to receive the refund for connection in lieu of the refund based on gas comsumption. (4) For each bona fide gas consumer connected directly to the Main Extension within the period commencing two (2) years after the date hereof and terminating four(4) years after the date hereof, Company will refund FOUR HUNDRED SIXTY EIGHT AND NO/ 100th Dollars (5 468.00 ) or alternatively in lieu of the above refund for connection, in the case of each commercial gas consumer having a yearly net gas bill of more than One Hundred Dollars ($100.00) connected to the Main Extension covered hereunder during the second two (2) years, Company will refund One Hundred Thirty -Five Dollars ($135.00) for each full One Hundred Dollars (5100.00) net gas revenue received from such consumer for the first twelve (12) months only for which gas bills are incurred. If a gas consumer has not been connected to Company's system during the second two (2) years for sufficient time to have incurred twelve (12) monthly bills, the yearly net gas bill for the purpose of computation of the additional refund provided in the preceding sentence of this paragraph, shall be estimated by Company on the basis of information furnished by the consumer covering consumer's operations, rate applicable and estimated annual gas consumption. In the event that the alternative gas consumption computation does not result in a larger refund than the refund for connection provided above, Applicant shall be entitled to receive the refund for connection in lieu of the refund based on gas consumption. (5) It is expressly agreed and understood that the aggregate of all refunds hereunder shall never exceed the original amount of the contract. It is understood that no refund or repayment will be made for any consumer not connected directly to the Main Extension covered by this contract, and after the expiration of four (4) years from the date hereof no further refunds or repayments as provided for in paragraphs (3) and (4) shall be made by Company to Applicant. (6) The Company's obligation to construct the gas Main Extension provided for herein will be carried out with all reasonable expedition, subject to applicable laws, rules and regulations of governmental authorities and to any delay occasion- ed by force majeure or events or conditions of whatsoever nature reasonable beyond Company's control. (7) Company shall not be obligated to commence the construction herein specified, or to continue such construc- tion after it has commenced, unless and until: (a) Applicant has caused the right-of-way for the Main Extension to be clearly staked on the ground by a registered engineer and (b) such rightof -way has been reduced to final grade and cleared of all obstructions of any kind; (c) all necessary right-of-way has been furnished Company free of charge on Company's standard form of easement if over private property or through a dedicated utilities easement. (8) In the event any pavement, sidewalks or other obstructions are constructed along or across the route of the mains provided for herein, subsequent to the date of the survey on which the prices to be paid hereunder are based and prior to sixty (60) days after the date of this contract, and which construction will result in an increase in cost to Company in the construction of the mains provided for herein, Company may, at its option, cancel this contract and neither party shall there- after have any obligation hereunder. (9) Applicant understands that Company shall not be obligated or required to construct the Main Extension con. templated by this agreement in advance of and prior to the construction of main extensions covered by contracts and authori- zations which were entered into by Company prior to the date of this agreement, or main extensions required to be con- structed by the provisions of Company's franchise or construction required to maintain existing service. (10) Title to said Main Extension, including its pipes and appurtenances, connections thereto and extensions thereof, and including the right to use, operate and maintain same, shall forever be and remain exclusively and uncondition- ally vested in Company, its successors and assigns. (11) A bona fide gas consumer, as used herein, means a consumer whose total estimated annual gas consumption is at least 100 Mcf per year. DATED AND EXCUTED at Texas, this 13th day of December 19 85 APPLICANT CITY OF ROUND ROCK PARKS & RECEATION DEPT. LONE STAR GAS COMPANY B • • _" _ By Title Title REGIONAL GtrOYERINTENDENT • OWO. FORM A 200 -P EXHIBIT "A" . E✓ P a r&O /Wm / 6:0 D4V Y7E P /P.F c95-0e- 75 6 LONE STAR GAS COMPANY 6 ENGINEERING DEPT. DALLAS,TEXAS eoavzJ .e 2& TE K1S DRAWN , se DATE//•2i.85 MAP SHEET NO CHK SCALE /" ' /5-2 ER- AO 7 - 8,F69 4