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R-2014-1933 - 11/25/2014 RESOLUTION NO. R-2014-1933 WHEREAS, the City of Round Rock wishes to enter into a Reimbursement Agreement ("Agreement") with Atmos Energy Corporation ("Atmos") for the relocation of gas pipelines owned by Atmos in connection with the Cypress Boulevard Project,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 said Reimbursement Agreement with Atmos Energy Corporation, a copy of same being attached hereto as Exhibit"A" and incorporated herein for all purposes. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. RESOLVED this 25th day of November, 2014. a) ALAN MCGRAW, Mayor City of Round Rock, Texas ATTEST: 0/141/L . eh If Ir SARA L. WHITE, City Clerk 0112.1404;00313365 1 EXHIBIT „A» / REIMBURSEMENT AGREEMENT This Reimbursement Agreement ("Agreement") made this day of , 2014 by and between ATMOS ENERGY CORPORATION, a Texas and Virginia corporation, having a business address at 5420 LBJ Freeway, Suite 1800, Dallas, Texas 75240 ("Atmos") and the CITY OF ROUND ROCK, a Texas home-rule municipal corporation, having a business address at 221 East Main Street, Round Rock, Texas ("CORR"),' WITNESSETH: WHEREAS, CORR is in the process of relocating Cypress Blvd at the location depicted in Exhibit "A", attached hereto (the "Project"): and WHEREAS, Atmos has gas facilities that are in conflict with the project: and WHEREAS. CORR has requested that Atmos relocate or cause to be relocated their gas facilities to accommodate the Project; and WHEREAS, Atmos has agreed to the relocation of its facilities as shown on the plans attached hereto as Exhibit "B" and made a part hereof("Relocation Services") and has prepared a good faith cost estimate set forth on Exhibit "C" attached hereto and made a part hereof ("Estimate"); and WHEREAS, CORR agrees to reimburse Atmos for the actual expenses incurred by Atmos related to the Relocation Services requested by CORR. NOW THEREFORE, in consideration of mutual promises contained herein, the parties agree as follows: 1. Atmos agrees to provide the Relocation Services to relocate approximately 2,200 linear feet of 6" (inch) pipe and related materials as shown on Exhibit C. The starting date will be fixed by mutual agreement of the parties hereto and Atmos shall use commercially reasonable efforts to complete the Relocation Services in accordance with the Schedule, subject however, to delays caused by persons or events outside the reasonable control of Atmos. 2. The actual cost of the relocation is estimated to be $270,935.00. CORR agrees to reimburse Atmos the actual costs of the Relocation Services. Atmos shall submit to CORR a detailed written report itemizing the total costs incurred, including all supporting information documenting all amounts incurred for which reimbursement claimed and verifying that the Relocation Services are in accordance with the requirements of this Agreement and that any change orders increasing the cost for the Relocation Services above the threshold described below were submitted and approved by CORR prior to incurring such additional costs. Upon completion of the Relocation Services, Atmos shall present CORR with a detailed invoice of the actual Relocation Services performed and CORR agrees to make, within thirty (30) days from the date of the properly detailed invoice, a onetime reimbursement payment of the actual costs, In the event, after actual solicitation of bids, the estimated costs of the Relocation Services exceed the Cost Estimate by 10% or more, then, prior to incurring such additional expense, Atmos shall submit the additional costs to CORR for approval, which approval shall not be unreasonably withheld, delayed, or conditioned. Any request for approval made by Atmos in writing and not specifically approved or disapproved within 10 business days shall automatically be deemed approved by CORR. Neither enhancement nor betterment costs shall be reimbursed by CORR, 3. The obligation of CORR to make a cost reimbursement payment under this Agreement does not constitute a general obligation or indebtedness of CORR for which CORR is obligated to levy, pledge or collect any form of taxation. 4, the parties agree to exercise all due caution while causing any work to be done near the gas line in order to prevent damages to the gas line. 5. Notwithstanding any other provisions of this Agreement, in no event shall either party be liable to the other for any indirect, consequential or incidental damages, including but without limitation, loss of revenue, loss of customers or loss of profits arising from the Agreement and the performance or non-performance of obligations hereunder. 6. Atmos agrees to indemnify and hold harmless CORR, its agents and employees, against and from any and all liability, loss and expense and shall defend all claims, resulting from the loss of life or damage or injury to persons or property directly or indirectly resulting from the work performed by Atmos to the extent such loss, damage or injury, is caused by the negligence or willful misconduct of Atmos or its agents or arises out of or in connection with the Relocation Services. As a necessary condition for such indemnity to be enforceable against Atmos: (i) Atmos shall be notified in writing promptly of any and all claims, liability, loss and expense for which CORR seeks indemnification from Atmos, and (ii) Atmos shall have sole control of the defense of any and all claims, liability, loss and expense and all negotiations for their settlement of compromise 7. This Agreement shall be enforceable in Round Rock, Williamson County, Texas, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for the same shall lie in Williamson County, Texas. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 2 8. No party may assign its rights and obligations under this Agreement without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the foregoing, it is understood that Atmos intends to contract the Relocation Services work to a general contract, which will in turn may subcontract all or part of the Relocation Services. 9. This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective heirs, executors, administrators, personal representatives, legal representatives, successors and assigns, subject to the provisions of Section 8. 10. In case any one or more of the provisions contained in this Agreement shall be held to be invalid, illegal, or unenforceable in any respect, such validity, illegality, or unenforceability shall not affect any other provisions of the Agreement, and this Agreement shall be constructed as if such invalid, illegal, or unenforceable provision had never been contained in the Agreement. Effective date of agreement as of date of approved by the City Council: CITY OF ROUND ROCK ATMOS ENERGY CORPORATION By: By: Bob Carroll Mayor Right of Way Manager ATTEST: By: Deputy Clerk APPROVED AS TO FORM: By: City Attorney 3 S.! 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W 7 -J n N O =a 1I C 1 IV • • I _ I 1 tX o nw n' l7 a 1 1 c.V W� _�- !n1 t�. m m n o CO m P51s, EZ- I?i II I Ili 1 r n r n n $ n W2 ATMOS ENERGY PROJECT COST ESTIMATE EXHIBIT Ilc11 Cypress Boulevard-Round Rock(6"Poly) Williamson County,TX Project No.080.42647/64116747 Completed by:Aaron Dickerson(UPI) Date:11/17/14 Direct Costs Materials-with Stores Overheads(Atmos PO's and McJunkin materials) Atmos Qty Description Price Ea. Costs 2,200 PIPE POLY 6 PE 2406 SDR11 500FT 6.45 $ 14,181 240 PIPE ERW 8 X.188W CS BARE BEV DRL X42(CASING PIPE) 21.41 $ 5,139 2,500 WIRE#12 CU YLW SOLID THHN 500FT 0.12 $ 302 9 ELL BF 6 90 DEG PE 2406 23.36 $ 210 5 ELL BF 6 45 DEG PE 2406 23.42 $ 117 2 TEE BF 6 PE 2406 30.57 $ 61 1 CAP BF 6 PE 2406 16.85 $ 17 2 TAPE CAUTION 3 X 1000FT YLW W/BLK LTR"GAS LINE BELOW' 8.62 $ 17 6 MARKER TRIVIEW 66 HP ATMOS SD-7003K 13.22 $ 79 6 MARKER BALL 4 YLW 3M 1405-XR 7.93 $ 48 4 BOX CURB 2 X 15 TEST STA LID MRKD"GAS DIST" 13.29 $ 53 Atmos Materials Subtotal $ 20,027 Sales Tax(8-1/4%) $ 1,652 Freight(2.5%) $ 501 Materials Total $ 22,180 NOTE#1 Materials-w/o Stores Overheads(Items purchased by Contractors) Atmos Qty Description Price Ea. Costs O $ - Contractor Materials Subtotal $ - Sales Tax(8-1/4%) $ - Materials Total $ - Land Costs(Fee Property) Atmos Qty Description Price/Ea Costs O Station Site $ - Total Land Costs $ - Land Rights(Capitalized) Atmos Qty Description Price/Ea Costs O Easements(Site&Road) $ - O Temporary Easements&Workspace $ - O Land Owner Damages $ - Total Land Rights Costs $ - Other Expenditures Atmos Qty Description Price/Ea Costs Total Other Costs $ - Total Direct Capital Labor(Company Labor) Atmos Qty Description Price/Hr Costs 100 Engineering $ 95 $ 9,500 13 Field Ops(Misc.) $ 70 $ 910 40 Construction Management $ 70 $ 2,800 24 Environmental $ 70 $ 1,680 50 ROW Agent $ 70 $ 3,500 150 FCC $ 70 $ 10,500 Company Labor Total $ 28,890 Contractor Labor Price/Hr Atmos Qty Description Price/Day Or/Each Price/Ft Costs Contract Engineering 4 Senior Project Engineer $ 121 $ 484 24 Project Manager $ 118 $ 2,832 54 Engineer $ 99 $ 5,346 4 Project Controls Specialist $ 99 $ 396 89 Senior CAD Designer $ 96 $ 8,544 4 Clerical $ 58 $ 232 179 Miscellaneous $ 7.50 $ 1,343 O Mileage $ 0.56 $ - 1 Survey Crew $ 3,500 $ 3,500 1 Installation(2153'Open-Cut)(210'Bore)(199'Removal) $ 101,710 $ 101,710 NOTE#2 Contract Labor Total $ 124,387 Cost Estimate-Cypress Blvd_111714.xls Other Expenditures w/o Overheads(RHUTTS) 0 Gas Loss(37,000 LF) $ - Project Reserves for Construction and Scheduling(15%) Other Expenditures Total $ - zBenefits Overheads(51.89%of Company Labor) $ 14,991 zStore Overheads(1%of Atmos Purchased Materials)) $ 222 Total Direct Costs $ 190,670 Indirect Costs(as of 1-22-2014) Description Costs Labor Overheads(52.53%of Company Labor) $ 15,176 Corp A&G(11.13%of Direct Costs less Materials Overhead) $ 21,222 BU A&G(16.24%of Direct Costs less Materials Overhead) $ 30,965 Total Indirect Costs $ 67,363 DIRECT&INDIRECT TOTALS $ 258,033 ESTIMATED TOTAL PROJECT COST(CAPITALIZED) $ 258,033 TAX GROSS-UP COSTS(18.15%,NON-CAPITALIZED) $ - FRANCHISE FEE(5%) $ 12,902 TOTAL COSTS ASSOCIATED WITH PROJECT(CAPITALIZED&NON-CAPITALIZED) $ 270,935 Notes: 1)Source of material costs is McJunkin Redman. 2)Construction Estimate based contractor bid submitted by H&T Utilities 11/14/14. 3)One general contractor from inception to completion and prices contingent on availability of contractor at time of award. 4)Corporate Overhead Rate varies at time of item cost. 5)Construction Management provided by Atmos Energy. 6)Assumed construction period:5 weeks,6 clays per week. Cost Estimate-Cypress Blvd_111714.xls