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CM-07-01-007ROUND ROCK, TEXAS PURPOSE. PASSION. PROSPERITY Mayor NyleMaxwell MayorPro-tem Alan McGraw Council Members RufusHoneycutt JoeClifford Carlos T. Salinas ScottRhode TedWilliamson CityManager James R. Nuse, PE. City Attorney Stephan L. Sheets January 19, 2007 Mr. Randy Hartford Manager, Public Affairs Atoms Energy Division 3110 North IH 35 Round Rock, TX 78681 JJ111tb) Oy, Iczp-- Re: Billing for Damage to Atmos Energy Corporation, Mid -Tex Division Facilities Dear Mr. Hartford, Thank you for the opportunity to enter into a reciprocal agreement with Atmos Energy Corporation regarding billing for damage to distribution facilities. Given the infrequent occurrence and the established legal precedence for dealing with such damage, the City does not see a benefit to entering into an agreement of this type. As with your company, the City of Round Rock wishes to provide your company with written notification of how the City will deal with damage to its water and wastewater facilities by Atmos Energy employees and/or contractors acting on behalf of Atmos Energy. The City will determine the cost of repairs and lost water, or cost to clean up raw sewage, related to the distribution/collection facility damage incident. The City will then issue an invoice to Atmos Energy for the cost of the damages. If you have any questions or concerns, please do not hesitate to contact me at 218-5410 or Mr. Tom Word, Chief of Public Works Operations, at 218-5555. Sincerely, J R. Nuse, P.E. Ci anager cc: David Kautz, Assistant City Manager/CFO Cindy Demers, Finance Director Thomas E. Word, Jr., P.E., Chief of Public Works Operations Stephan L. Sheets, City Attorney Danny Halden, P.E., City Engineer Thomas G. Martin, P.E., Director of Transportation Services Michael Thane, P.E., Director of Utilities th' - 01 -o1 -o 1 CITY OF ROUND ROCK ADMINISTRATIVE DEPT., 22lEastMainStreet• Round Rock,Texas78664 Phone: 512.218.5401 • Fax:512.2f 8.7o97•www.roundrocktexas.gov ArATIIIOS energy Randy Hartford Manager, Public Affairs September 13, 2006 City Official Title City Address City, TX Atmos Energy Corporation Mid -Tex Division 3110 North 135 Round Rock, Texas 78681 Tel: 512-310-3805 Fax: 512-310-3819 Randy.hartford@AtmosEnesgy.com RE: Billing for Damage to Atmos Energy Corp., Mid -Tex Division Facilities Dear : In the absence of a reciprocal agreement or a billing arrangement agreement, Atmos Energy Corp., Mid -Tex Division wishes to provide you with written notification of how it will deal with damage to its facilities by city employees or contractors. In the event that Atmos' facilities are damaged by city employees or contractors acting on behalf of the city, Atmos will determine the cost of repairs and lost gas related to the damage incident. Atmos will then issue a bill to the City for those damages. If you desire to discuss a reciprocal agreement or have any questions concerning Atmos' plans on dealing with these damage incidents, please feel free to call me. Sincerely, Randy Hartford ATMOS energy Randy Hartford Manager, Public Affairs October 3, 2006 Atmos Energy Corporation Mid -Tex Division 3110 North 135 Round Rock Texas 78681 Tet: 512-310-3805 Fax 512-310-3819 Randy.hartford@AtmosEnergy.com Re: Reciprocal Agreement on Damage to Distribution Facilities Dear: Mr. Nuse As we have discussed, the City of Round Rock and Atmos Energy Corporation, Mid - Tex Division (Mid -Tex) both operate facilities within the public rights-of-way of the City of Round Rock. On occasion, our respective employees damage those facilities during excavation activity. In order to avoid future misunderstandings concerning the responsibility for the cost of repairing facilities damaged during excavation activities, the City of Round Rock and Mid Tex are entering into this reciprocal agreement concerning property damage claims. If Mid -Tex employees damage the facilities owned by the City of Round Rock within the public rights-of-way of the City of Round Rock, the City of Round Rock agrees to repair the damage to its facilities at no cost to Mid -Tex. Mid -Tex agrees to notify the appropriate official of the City of Round Rock as soon as reasonably possible after the occurrence of such damage. If the City of Round Rock employees damage the distribution facilities owned by Mid - Tex within the public rights-of-way of the City of Round Rock, Mid -Tex agrees to repair the damage to its facilities at no cost to the City of Round Rock. The City of Round Rock agrees to notify the appropriate personnel of Mid -Tex as soon as reasonably possible after the occurrence of such damage. This reciprocal agreement will remain in full force and effect until one party gives written notice to the other party of termination at least 30 days prior to the proposed termination date. Any such termination will not affect either party's obligation to pay for any damage that occurs prior to the termination date. If this reciprocal agreement is acceptable to the City of Round Rock, please have both copies of this letter executed by the appropriate City of Round Rock official and retum one fully executed copy to me. Sincerely, Randy Hartford ATMOS energy ATMOS ENERGY CORPORATION, MID-TEX DIVISION By: Manager of Public Affairs AGREED TO AND ACCEPTED THIS DAY OF , 2005 CITYITOWN By. Printed Name: Title: �TMOS energy Randy Hartford Manager, Pubfic Affairs October 3, 2006 City of Round Rock 221 East Main Round Rock, Texas 78664 Re: Agreement on Damage to Distribution Facilities Dear: Mayor Atmos Energy Corporation Mid -Tex Division 3110 North 135 Round Rock, Texas 78681 Tel: 512-310-3805 Fax 512-310-3819 Randy.hartford©AtmosEnergy_ccrn As we have discussed, City of Round Rock and Atmos Energy Corporation, Mid -Tex Division (Mid -Tex) both operate facilities within the public rights-of-way of City of Round Rock. On occasion, our respective employees damage those facilities during excavation activity. In order to avoid future misunderstandings concerning the responsibility for the cost of repairing facilities damaged during excavation activities, City of Round Rock and Mid -Tex are entering into this agreement concerning property damage claims. If Mid -Tex employees damage the facilities owned by City of Round Rock within the public rights-of-way of City of Round Rock, City of Round Rock will invoice Mid -Tex for the cost of repairs and Mid -Tex will pay such invoice. Mid -Tex agrees to notify the appropriate official of City of Round Rock as soon as reasonably possible after the occurrence of such damage. If City of Round Rock employees damage the distribution facilities owned by Mid -Tex within the public rights-of-way of City of Round Rock, Mid -Tex will invoice City of Round Rock for the cost of repairs and City of Round Rock will pay such invoice. City of Round Rock agrees to notify the appropriate personnel of Mid -Tex as soon as reasonably possible after the occurrence of such damage. This agreement will remain in full force and effect until one party gives written notice to the other party of termination at least 30 days prior to the proposed termination date. Any such termination will not affect either party's obligation to pay for any damage that occurs prior to the termination date. If this agreement is acceptable to City of Round Rock, please have both copies of this letter executed by the appropriate City of Round Rock official and return one fully executed copy to me. Sincerely, ,ATMOS energy ATMOS ENERGY CORPORATION, MID-TEX DIVISION By: Manager of Public Affairs AGREED TO AND ACCEPTED THIS DAY OF , 2005 CITY OF ROUND ROCK By: Printed Name: Title: CITY MANAGER BLUE SHEET DATE: January 12, 2007 SUBJECT: City Manager Approval - January 19, 2007 ITEM: Action authorizing the City Manager to execute a letter in response to Atmos Energy Corporation written notification of how it will deal with damage to its facilities by City employees or contractors. Department: Public Works Staff Person: Thomas E. Word, Jr., P.E., Chief of Public Works Operations 3ustification: The letter acknowledges Atmos Energy Corporation notification and places the same responsibility on Atmos Energy for damage caused by their employees andjor contractors to City water and wastewater facilities. Fundina: Cost: NA Source of funds: NA Backaround Information: Correspondence was sent by Randy Hartford, Atmos Energy, on September 13, 2006 regarding billing for Damage to Atmos Energy Corporation, Mid -Tex Division Facilities. In the letter, the City was provided an opportunity to enter into a reciprocal or billing arrangement agreement. After discussions between Steve Sheets and Tom Word, they determined that the notification was adequate and neither agreement was needed. In addition, they determined that a similar expectation regarding billing for damage to City utilities should be placed on Atmos Energy. Updated 3-10-05