Contract - Atmos Energy - 11/25/2014REIMBURSEMENT AGREEMENT
This Reimbursement Agreement ("Agreement") made this Zto_ 4 day of
j�iOVr✓►�lN', 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:
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
,?,201-t / �433
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:
IJAA'-Q�f-
Mayor
ATTEST:
By: wu� - U ktff
Gi+
Depuly Clerk
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Exhibit C
ATMOS ENERGY PROJECT COST ESTIMATE
Cypress Boulevard - Round Rock (6" Poly)
Williamson County, TX
Project No. 080.42647 / 64116747
Completed by: Aaron Dickerson (UPI)
Date: 11117114
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 50OFT
6.45 $
14,181
240 PIPE ERW 8 X.1 88W CS BARE BEV DRL X42 (CASING PIPE)
21.41 $
5,139
2,500 WIRE #12 CU YLW SOLID THHN 50OFT
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 1000FTYLW 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
0
$
Contractor Materials Subtotal $
Sales Tax (8-1/4%) $
Materials Total $
Land Costs (Fee Property)
Atmos
Qty Description
Price I Ea
Costs
0 Station Site
$
Total Land Costs $
Land Rights (Capitalized)
Atmos
Qty Description
Price / Ea
Costs
0 Easements (Site & Road)
$
0 Temporary Easements & Workspace
$
0 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 I 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
0 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.x1s
Exhibit C
Other Expenditures w/o Overheads (RHUTTS)
0 Gas Loss (37,000 LF)
Project Reserves for Construction and Scheduling (15%)
zBenefits Overheads (51.89% of Company Labor)
zStore Overheads (11% of Atmos Purchased Materials))
Indirect Costs (as of 1-22-2014)
Description
Labor Overheads (52.53% of Company Labor)
Corp A&G (11.13% of Direct Costs less Materials Overhead)
BU A&G (16.24% of Direct Costs less Materials Overhead)
Other Expenditures Total $
$ 14,991
$ 222
Total Direct Costs $ 190,670
Total Indirect Costs
DIRECT & INDIRECT TOTALS
ESTIMATED TOTAL PROJECT COST (CAPITALIZED)
TAX GROSS -UP COSTS (18.15%, NON -CAPITALIZED)
FRANCHISE FEE (5%)
TOTAL COSTS ASSOCIATED WITH PROJECT (CAPITALIZED & NON -CAPITALIZED)
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 days per week.
Cost Estimate - Cypress Blvd_111714.xls
Costs
$ 15,176
$ 21,222
S 30.965
$ 258,033
$ 258,033
$ 12,902
$ 270,935