HomeMy WebLinkAboutC2012-027 - 1/31/2012 - ApprovedREIMBURSEMENT AGREEMENT
State of Texas §
County of Nueces §
This agreement is entered into this day of 2J by and between the
City of Corpus Christi, Texas, a municipal corporation, herelnaer called CITY and Equistar
Chemicals, LP, a Delaware Limited Partnership hereinafter called Equistar; both acting through
their duly authorized representatives.
WHEREAS, CITY desires to dedicate the McKenzie Road right-of-way to the Texas Department
of Transportation (TxDOT) as shown on Exhibit A; and
WHEREAS, Equistar is the owner of three petroleum products pipelines that are in conflict with
the Texas Administrative Code requirements for utilities in state right -of -way; and
WHEREAS, the easement encompassing Equistar's pipelines predates the dedication of the City
of Corpus Christi McKenzie Road Right of Way; the City will pay an amount not to exceed
$ _29,873 for Equistar to relocate the required (as per TxDOT) pipeline amenities.
NOW THEREFORE; CITY and Equistar agree as follows:
1. Equistar shall, at its own cost, adjust or relocate its three pipeline amenities to clear
CITY's right -of -way. The relocated pipeline amenities shall be near or outside the right -
of -way line as shown in Exhibit A. Equistar will:
a. Install a concrete cap on two pipelines
b. Relocate test lead, pipeline markers, and any other pipeline amenities to the right -
of -way line on all three pipelines
2. Equistar shall be responsible for surface restoration to its original condition all areas
disturbed by their operations (i.e, lawns, trees, driveways, tree removal and replacement,
other utility relocations and adjustment etc.)..
3. Equistar shall submit to the CITY, for review, plans for the pipeline relocation and a
schedule for completion.
4. CITY shall reimburse Equistar for the costs of relocating the pipeline an amount not to
exceed $ _29,873_ . Reimbursement shall be made upon submission of invoices detailing
the costs incurred in the relocation.
5. Equistar shall obtain the insurance requirements as described in Exhibit B, which is
attached hereto and made a part of this Agreement.
6. Equistar shall relocate its pipeline within 60 days of approval of this agreement by CITY
Council.
2012 -027
M2012 -024
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Equistar Chemicals, LP
INDEXED
7. CITY shall have no liability for any damages incurred due to Equistar's operation.
8. Contractor agrees to indemnify, save harmless and defend the City, its agents,
servants, and employees, and each of them against and hold it and them
harmless from any and all lawsuits, claims, demands, liabilities, losses and
expenses, including court costs and attorneys' fees, for or on account of any
injury to any person, or any death at any time resulting from such injury, or
any damage to any property, which may arise or which may be alleged to have
arisen out of or in connection with the work covered by this Contract. The
foregoing indemnity shall apply except if such injury, death or damage is
caused directly by the negligence or other fault of the City, its agents, servants,
or employees or any person indemnified hereunder.
Executed in duplicate this
��S day of , 201
CITY OF CORPUS CHRISTI,TX EQUISTAR
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Ron Olson Date
City Manager Print 1} r�V1J�"
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Pete' Anaya:V.E. Date
Director, Engineering Services
ATTEST
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Armando Chapa, a Date
City Secretary
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City Attorney Date
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Pipeline Adjustments Page 2 of 2
Equistar
LOCATION MAP CITY OF CORPUS CHRISTI, TEXAS
FOR DEPARTMENT OF ENGINEERING SERVICES
REIMBURSEMENT AGREEMENT PAGE: 1 of 9
DATE: 912112011 M
EXHIBIT B
INSURANCE REQUIREMENTS
CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this agreement until all insurance required herein has
been obtained and such insurance has been approved by the City. The Contractor must not allow
any subcontractor to commence work until all similar insurance required of the subcontractor has
been so obtained.
B. Contractor must furnish to the City's Risk Manager, copies of Certificates of Insurance, with applicable
policy endorsements showing the following minimum coverage by insurance company(s) acceptable
to the City's Risk Manager. The City must be named as an additional insured for the General liability
policy. A blanket waiver of subrogation is required on all applicable policies.
TYPE OF INSURANCE
MINIMUM INSURANCE COVERAGE
30 -Day Notice of Cancellation required on all
Bodily Injury and Property Damage
certificates or by applicable policy endorsements
Per occurrence - aggregate
Commercial General Liability including:
$1,000,000 COMBINED SINGLE LIMIT
1. Commercial Broad Form
2. Premises – Operations
3. Explosion and Collapse Hazard
4. Underground Hazard
5. Products/ Completed Operations Hazard
6. Contractual Liability
7. Independent Contractors
AUTOMOBILE LIABILITY—
$1,000,000 COMBINED SINGLE LIMIT
1. Owned
2. Hired & Non -owned
WHICH COMPLIES WITH THE TEXAS
WORKERS' COMPENSATION
WORKERS' COMPENSATION ACT AND
PARAGRAPH II OF THIS EXHIBIT
EMPLOYERS' LIABILITY
$500,0001$500,00015000,000
PROFESSIONAL POLLUTION LIABILITY/
$1,000,000 COMBINED SINGLE LIMIT
ENVIRONMENTAL IMPAIRMENT COVERAGE
Not limited to sudden & accidental discharge; to include
long -term environmental impact for the disposal of
contaminants
C. In the event of accidents of any kind, the Contractor must furnish the Risk Manager with copies of all
reports of any accidents within ten (10) days of any accident.
ADDITIONAL REQUIREMENTS
A. Contractor must obtain workers' compensation coverage through a licensed insurance
company in accordance with Texas law. The contract for coverage must be written on a
policy with endorsements approved by the Texas Department of Insurance. The coverage
provided must be in amounts sufficient to assure that all workers' compensation obligations
incurred will be promptly met.
B. Contractor's financial integrity is of interest to the City; therefore, subject to Contractors right
to maintain reasonable deductibles in such amounts as are approved by the City, Contractor
shall obtain and maintain in full force and effect for the duration of this Contract, and any
extension hereof, at Contractors sole expense, insurance coverage written on an
occurrence basis, by companies authorized and admitted to do business in the State of
Texas and with an A.M. Best's rating of no less than A- VII.
C. The City shall be entitled, upon request and without expense, to receive copies of the
policies, declarations page and all endorsements thereto as they apply to the limits required
by the City, and may require the deletion, revision, or modification of particular policy terms,
conditions, limitations or exclusions (except where policy provisions are established by law
or regulation binding upon either of the parties hereto or the underwriter of any such
policies). Contractor shall be required to comply with any such requests and shall submit a
copy of the replacement certificate of insurance to City at the address provided below within
10 days of the requested change. Contractor shall pay any costs incurred resulting from said
changes. All notices under this Article shall be given to City at the following address:
City of Corpus Christi
Attn: Risk Management
P.O. Box 9277
Corpus Christi, TX 78469 -9277
(361) 826 -4555- Fax #
D. Contractor agrees that with respect to the above required insurance, all insurance
policies are to contain or be endorsed to contain the following required provisions:
« Name the City and its officers, officials, employees, volunteers, and elected representatives
as additional insured by endorsement, as respects operations and activities of, or on behalf
of, the named insured performed under contract with the City, with the exception of the
workers' compensation policy;
• Provide for an endorsement that the "other insurance" clause shall not apply to the City of
Corpus Christi where the City is an additional insured shown on the policy;
• Workers' compensation and employers' liability policies will provide a waiver of subrogation
in favor of the City; and
• Provide thirty (30) calendar days advance written notice directly to City of any suspension,
cancellation, non - renewal or material change in coverage, and not less than ten (10)
calendar days advance written notice for nonpayment of premium.
E. Within five (5) calendar days of a suspension, cancellation, or non - renewal of coverage,
Contractor shall provide a replacement Certificate of Insurance and applicable
endorsements to City. City shall have the option to suspend Contractor's performance
should there be a lapse in coverage at any time during this contract. Failure to provide and
to maintain the required insurance shall constitute a material breach of this agreement.
F. In addition to any other remedies the City may have upon Contractor's failure to provide and
maintain any insurance or policy endorsements to the extent and within the time herein
required, the City shall have the right to order Contractor to stop work hereunder, and/or
withhold any payment(s) which become due to Contractor hereunder until Contractor
demonstrates compliance with the requirements hereof.
G. Nothing herein contained shall be construed as limiting in any way the extent to which
Contractor may be held responsible for payments of damages to persons or property
resulting from Contractor's or its subcontractor's performance of the work covered underthis
agreement.
H. It is agreed that Contractor's insurance shall be deemed primary and non - contributory with
respect to any insurance or self insurance carried by the City of Corpus Christi for liability
arising out of operations under this agreement.
It is understood and agreed that the insurance required is in addition to and separate from
any other obligation contained in this agreement.