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.