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HomeMy WebLinkAboutC2012-028 - 1/31/2012 - ApprovedREIMBURSEMENT AGREEMENT -- - -- - -- -- State of Texas § County of Nueces § This agreement is entered into this day of , 20 ity and between the City of Corpus Christi, Texas, a municipal corporation, hereinafter called CITY and Kinder Morgan Tejas Pipeline LLC, a Delaware limited liability company hereinafter called Kinder Morgan; both acting through their duly authorized representatives. WHEREAS, CITY desires to dedicate the McKinzie Road right -of -way to the Texas Department of Transportation (TxDOT) as shown on Exhibit A; and WHEREAS, Kinder Morgan is the owner of a natural gas pipeline that will be in conflict with the Texas Administrative Code requirements for utilities in state right -of -way once the right of way is dedicated to the Texas Department of Transportation and is located in the McKinzie Road right-of-way; and WHEREAS, the easement encompassing Kinder Morgan's pipeline predates the dedication of the City of Corpus Christi McKinzie Road Right of Way; the City will reimburse Kinder Morgan 100% of the actual eligible costs to relocate the required (as per TxDOT) pipeline amenities and to protect Kinder Morgan's pipeline, which costs are estimated to be $252,454.00. NOW TPIEREFORE; CITY and Kinder Morgan agree as follows: 1, Kinder Morgan shall adjust or relocate its 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. Kinder Morgan will: a. Extend the pipeline casing to the right-of-way line b. Relocate pipe vent, test lead, pipeline marker and any other pipeline amenities to the right -of -way line 2. Kinder Morgan 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, etc). 3. Finder Morgan shall submit to the CITY, for review, plans for the pipeline relocation and a schedule for completion. 4 CITY shall reimburse Kinder Morgan for 100% of the actual eligible costs of relocating the pipeline. Within sixty (60) days after the completion of the project, 2012 -028 page 1 of 3 M2012 -022 01/31/12 Kinder Morgan Tejas Pipeline LLC � " Kinder Morgan will provide a statement of the actual costs a expenses (both direct and indirect) incurred during the construction of the adjustment project. } CITY shall within thirty days of its receipt of such statement remit a �' t ) y P p yrnent to fully reimburse Kinder Morgan. 5. Kinder Morgan shall obtain the insurance requirements as described in Exhibit B, which is attached hereto and made a part of this Agreement. 6. Kinder Morgan shall relocate its pipeline within 120 days of approval of this agreement by CITY Council. 7. 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 an death at any time resulting from such injury, or any damage to any property, to the extent caused by the acts or omissions of Kinder Morgan it's employees, agents or contractors, which may arise or which may he 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. Pipellne Adjustments Page Z of Kinder Morgan I Executed in duplicate this day of �t'�'�" 201 CITY OF CORPUS CHRISTI, TX B CA Mc Ron Olson ate City Mauager RECOMMENDED By z)!&51, z Pete Anaya, P,E. Date Director, Engineering Services ATTEST By -2 -� , / , , . Armando Chapa, " Date City Secretary APPROVED AS TO FORM By -- _ 6 1 City Attorney Date 7J )l Title ANag I k) 500 Dallas St., Su to 1000 Houston, TX 77002 i� — iEGREETARY ( M, Pipeline Adjustments Page 3 of 3 Kinder Morgan HINDER MORGAN TEJAS PIPELINE LLC LOCATION MAP CITY OF CORPUS CHRISTI, TEXAS FOR DEPARTMENT OF ENGINEERING SERVICES REIMBURSEMENT AGREEMENT PAGE. 1 of 9 DATE: 912112011 . 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 such approval not to be unreasonably withheld. 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) reasonably acceptable to the City's Risk Manager. The City shall, with respect to the indemnity obligations assumed by Contractor under the agreement to which this Exhibit is attached, be named as an . additional insured for the General Liability policy required below. 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 $500,000/ $500,000/5000,000 C. In the event of accidents of any kind, the Contractor must notify the Risk Manager of any accidents related to this agreement within ten (10) days of any accident. li. 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, Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage by companies authorized 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, in the event of a suit being filed against it to receive copies of the policies, declarations page and all endorsements thereto as they apply to the limits required by the City. 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, on the required General Liability coverage as respects operations and activities of, or on behalf of, the named insured performed under contract with the City but only to the extent of Contractor's indemnity obligations under such contracts; • Provide 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, or non - renewal 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.. 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 under this agreement. H. It is agreed that to the extent of Contractor's indemnity obligations under the Agreement to which this Exhibit is attached, 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. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement.