R-96-04-25-10E - 4/25/1996Mayor
Charles Culpepper
Mayor Pro -tem
Earl Palmer
Council Members
Robert Stluka
Rod .Morgan
Rick Steuart
.Martha Chavez
Jimmy .Joseph
City Manager
Robert L Bennett. Jr
City Attorney
Stephan L Sheets
May 6, 1996
Richard Bone, Jr.
Business Development Manager
Lone Star Gas
P.O. Box 1267
Round Rock, TX 78680
Dear Mr. Bone:
Resolution No. R- 96- 04- 25 -10E was approved by the Round Rock
City Council on April 25, 1996.
Enclosed is a copy of the resolution and contract for your files. If
you have any questions, please do not hesitate to call.
Sincerely,
Joanne Land
Assistant City Manager/
City Secretary
Enclosure(s)
THE CITY OF ROUND ROCK
221 East Main Street
Round Rock, Texas 78664
512 -218 -5400
Fax 512- 218 -7097 1- 800 - 735.2989 (TDD) 1.800- 735.2988 (Voice)
RESOLUTION NO. R- 96- 04- 25 -10E
WHEREAS, the City is constructing a new swimming pool, and
WHEREAS, it is necessary to construct an extension of a gas
line to the new swimming pool, and
WHEREAS, Lone Star Gas has agreed to extend the gas line in
accordance with the terms of a proposed Gas Main Extension Contract
( "Contract "), and
WHEREAS, the Council wishes to approve said Contract, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City a Contract with Lone Star Gas for the extension
of a gas line to the new swimming pool, a copy of said Contract
being attached hereto and incorporated herein for all purposes.
RESOLVED this 25th day of April, 1996.
ATTEST:
E LAND, City Secretary
8 \RBSOLOTI \RS€G42S8 WP➢ /elS
j
CHARLES CU ER, Mayor
City of Round Rock, Texas
Form 1819 9/94
GAS MAIN EXTENSION CONTRACT
COMMERCIAL FORM
(CASH DEPOSIT)
LONE STAR GAS COMPANY, ( "COMPANY ") and _ City of Round Rock ( "APPLICANT") whose
address is _ 221 E Main, Round Rock, Texas 78664_, Williamson County, Texas, in consideration of good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, do agree as follows:
(1) Company agrees to extend its gas piping for a total distance of approximately 500 feet
( "PROJECT ") along or in Dedicated Utility Easement . The route of the Project is shown on Exhibit "A" attached
hereto and made a part hereof.
(2) It is agreed that the "Total Cost" of the Project is $ 6300.00 and that the "Contract
Amount" for the Project is $ 6300.00 . The term of this Contract ( "Contract Term ") shall begin on the
effective date and shall continue for Three ( 3_) years from _ June 15, 1996
("Commencement Date ").
(3) At the end of the Contract Term, Applicant agrees to pay Company the Total Cost less any and all
deductions as described in Paragraph 5.
(4) Upon execution of this Contract, the payment of the Total Cost to Company by Applicant shall be secured
by cash deposit. At the end of the Contract Term, in lieu of payment by Applicant, Company may draw against the cash
deposit for the Total Cost less the deductions provided for in Paragraph 5 below. If during the Contract Term, Applicant
files a petition in bankruptcy or for reorganization, is the subject of a filing for involuntary bankruptcy or reorganization,
which is not dismissed within 60 days, is declared insolvent, files for total or partial liquidation, dissolution, reorganization
or other winding - up, is placed in receivership for more than 60 days, assigns all or any substantial part of its assets for the
benefit of Its creditors, or sells all or substantially all of its assets, then Company may without notice declare the payment
obligation under Paragraph 3 immediately due, may proceed against the cash deposit, and may pursue any other legal remedy.
(5) Company shall deduct from the Total Cost the sum of $ 6.90 for each Mcf
of gas consumed by all customers directly connected to the Project during a single twelve (12) month period during the
Contract Tenn (Deduction Period). The Deduction Period shall consist of the twelve (12) month period immediately
preceding a date selected by Company or immediately preceding the end of the Contract Term, whichever occurs first. If
a particular gas customer has not been connected to the Project for a sufficient time during the Deduction Period to have
mcurred twelve (12) monthly bills, the twelve (12) month gas bill for the purpose of computation of the deduction shall be
estimated by Company on the basis of information furnished by the consumer covering consumer's operations and estimated
gas consumption. Unless the Applicant has paid the Total Cost in some other manner, Company shall, on or before 30 days
following the end of the Contract Term, refund to Applicant from the cash deposit an amount equal to the total deductions
described in this Paragraph 5 and shall retain the remainder of the cash deposit in lieu of payment.
(6) It is expressly agreed that the aggregate of all deductions described in Paragraph 5 shall never exceed the
Contract Amount. It is agreed that no deduction will be given for any customer not connected directly to the Project during
the Contract Term, and that, after the expiration of the Contract Term, no further deductions shall be given by Company to
Applicant
(7) The Company's obligation to construct the Project is subject to applicable laws, rules and regulations of
governmental authorities and to any delay occasioned by force majeure or events or conditions of whatever nature which are
reasonably beyond Company's control.
(8) Company shall not be obligated to commence the Project, or to continue the Project after it has
conunenced, unless and until: (a) Applicant has caused the right -of -way for the project to be clearly staked on the ground
and attested to by a registered engineer; (b) such nght -of -way has been reduced to final grade and cleared of all obstructions
of any kind and; (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 utility- easement.
(9) In the event any pavement, sidewalks or other obstructions are constructed along or across the route of
the Project, subsequent to the date of the survey on which expenses incurred hereunder were based, and such construction
will result in an increase in cost to Company in the construction of the Project, Company may, at its option, cancel this
Contract, and return Applicant's cash deposit without interest. Thereafter, neither party shall have any obligation hereunder.
(10) Applicant understands that Company shall not be obligated or required to construct the Project prior to
the construction of piping covered by contracts and authorizations which were entered into by Company prior to the date
of this Contract, the construction of piping required to be constructed by the provisions of Company's franchise, or the
construction or repair of piping required to maintain existing service.
(11) Title to the Project, including appurtenances, connections thereto and extensions thereof, and including
the right to use, operate and maintain same, shall forever be and remain exclusively and unconditionally vested in Company,
its successors and assigns.
(12) If this Contract is not executed by Applicant and received by Company along with the required
consideration in the amount stipulated in Paragraphs 2 and 4 within Thirty Days (_30_j days of its
transmittal to Applicant, Company may cancel this Contract by written notice to Applicant.
APPLIC • T
(13) This Contract shall be construed in accordance with the laws of the State of Texas.
This Contract is effective C day of / tPIG /
By n Q
y)2
Printed Name: m
Title: / , yOR..„
CRY:GAH:090694:FORMIa 19.3
CULPEPPER-
2
LONE STAR GAS COMPANY
Printed Name: Richard Bone Jr.
Title:_ Business Development Manger
199(0.
DATE: April 23, 1996
SUBJECT: CITY COUNCIL MEETING, APRIL 25 ,1996
ITEM: 10.E. Consider a resolution authorizing the Mayor to enter into an
agreement with Lone Star Gas for construction of a gas line
to the new swimming pool.
STAFF RESOURCE PERSON: Sharon Prete
STAFF RECOMMENDATION: APPROVAL
ECONOMIC IMPACT:
By contracting with Lone Star Gas to bring service to the new pool,
rather than an independent contractor; the City will be eligible to
recoup the gas line construction costs through reduced
consumption rates over a three year period.
Financing for this project has been funded in the new swimming
pool budget. The rebate program brings the City's construction
cost to $ 00.00