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Home My WebLink AboutPR 12154:BUS. PARK GAS SERVICESPort Arthur Economic Development Corporation P. O. Box 1089 · Port Arthur, Texas 77641-1089 409/983-8195 · 409/983 8222 fax Emaih portarthuredc¢~eonet.net · http:#www, portarthur, com/edc Memo To: Mayor, City CoUncil and City(~Manager_, From: Ike Mills, Executive Director,/~,~ Date: April 24, 2003 Re: P.R. No. 12154; Council Meeting Apd129, 2003 Attached is P.R. No. 12154 approving utility agreement for gas services in the amount of $165,000 to Texas Gas Service, a division of Oneok for Pod Arthur Business Park as approved by the Section 4A Port Arthur Economic Development Corporation. cc: Mark Sokolow, City Attorney Jim Wimbedey, EDC Attorney P. R. No. 12154 04/14/03 bjm RESOLUTION NO. A RESOLUTION APPROVING THE AGREEMENT FOR GAS SERVICES WITH TEXAS GAS SERVICE A DIVISION OF ONEOK NOT TO EXCEED $165,200 FOR THE PORT ARTHUR BUSINESS PARK AS APPROVED BY THE SECTION 4A PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION WHEREAS, on March 31, 2003 the Board of Directors of the Port Arthur Section 4A Economic Development Corporation approved a proposal for installation of a gas line with Texas Gas Services, a division of ONEOK for the Port Arthur Business Park not to exceed $165,200; and WHEREAS, the actions of the Section 4A Economic Development Corporation require the approval by the City Council; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR= Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council herein approves the installation of gas lines by Southern Union Gas into the Business Park as delineated in Exhibit "A" and as per the recommendation of Bill Diamond as delineated in Exhibit "B". Section 3. That the Economic Development Corporation an agreement incorporating the Executive Director of the Port Arthur is herein authorized to sign ONEOK proposal in a form as approved by the City Attorney and Mr. Jim Wimberley. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council READ, ADOPTED AND APPROVED on this day of , A.D., 2003, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , City Council NOES: ATTEST: OSCAR ORTIZ, MAYOR EVANGELINE GREEN, CITY SECRETARY CI~IOUS "IKE~ MILLS ~C, EXECUTIVE DIRECTOR APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MkNAGER APPROVED AS TO THE AVAILABILITY OF FUNDS REBECCA UNDERHILL, DIRECTOR OF FINANCE EXHIBIT "A" TEXAS GAS SERVICE /~ DiViSION OF OHEOK Schaumburg & Polk 8865 College Beaumont, Texas 77707 Attn: Bill }Iughes March 28, 2003 RE: New Business Park on Hwy 93 for EDC DeaN' Mr. Hughes: Below are the cost estimates on installing gas into the Business Park. At the present, we have not received a confirntation from Kinder Morgan on installing tine tap off of their high-pressure transmission line, and we made an influiry again just yesterday. However, pending approval of tine tap, we estimate the cost of the tap and the city gate station to be $95,000, but this is contingent on Kinder Morgan. Wc do not anticipate any difficulties in acquiring the actual tap, outside of a ~cheduling problem. The instalIMion of the 4" main in the park would be $70,200. As individual customers come on line in the Park, a service line would need to be installed, but that would be the responsibility of that individual customer. Per our mainline e×tension contract, for each customer that we set a meter for wiOfin the nexf S years, a refund would be paid back to the EDC. TINe refund is based on ~be cost per foot to install tiN( A', mainline times 1SO feet for each customer. Total cost for the EDC for the project is $!65,200. Only ttte cost for the installation of the 4" mainline is eligible roi' the refond wiihin the five years. All of these costs arc based on the tap location we discussed at thc TGS Port Arthur office. Sincerely, Bobby Enriqncz Direclor of Operations q02 33rd Strepl "{;al~eslc Texas 77550-1306 Fax (512 766-28g Diamond Consulting Economic Development Architecture 11 Gambrel Oak Place Planning The Woodlands, Texas 77380 April 14, 2003 Mr~ lice Mills Executive Director Port Arthur Economic Development Corporation P.O. Box 1089 Port Arthur, Texas 77640-1089 Re: City Couucil Meeting to Award Contracts and Change Orders for Business Park Dear Ike, As you know, bids for Contracts I and VII were received in January and February respectively. I delayed submitting them for award until they could be considered as one package along with Change Order 2 for Contract VI md Agreement letters from the utility companies. As you will recall The March EDC board meeting was delayed several weeks. But these have not been included on either of the two subsequens City Council meeting agendas and are thus still pending. Change Order 2 to Contract VI is now eritleal. The contractor must receive the alternate valve called for in this change order before he can complete construction of the retention pond and outfall structures. This valve has a lead- time of wecks in order to allow it to be fabricated specifically for our application. The following agreements that were approved by the EDC Board on March 31: Contract VI - Change Order 2 -Substitution of outfall valves + $15.406.00 Contract I- General Requirements - award of the following: Contact for Construction Sign - $1,957.34 to Fast Sign Contract for Temporary Project Sign - $4,125.87 to Fast Signs Contract for Modular Office - $48,893.00 to Eagle Pro Engineering Inc. Contact VII Landscaping and Final Grading - award of the following: Cun~sact for construction - Utility Agreements Agreement for Power Services- Gas Service- $597,672.00 to Excavators and Constructors Inc. $351,000.00withEntergy Notto exceed $165,000-withTexasGas In addition to these items we have since uncovered two additional items that may require action by both the EDC Board and City Council. They are: Potential changes to Coniract V - Road Improvements as a result of changes in soil moisture content (see Monthly Report for March and April). Additional soil tests are currently underway to resolve concerns and revase paving section and sub grade design if required. Change Order 3 to Contract IH - Underground Utilities - This chunge order is for revisions in the lade Road connection to a new offsite water line being ennslructed by the City under separate cunuact. These ph281 3677821 fax281 2927552 emaildiaconsult@woddnet.att, net Ike Mills April 14, 2003 Page 2 of 2 revisions are the results of changes requested by the City's Utility Director. It and will increase the length of bore under FM 365, require the removal and replacement ora portion of Jade Ave south of FM 365 and add valves and other appurtenances at the connection point. A proposal in the amount of $25,798.50 has been received from E&C ~nc and reviewed by our Engineer. This change order is also time critical. I respectfally request that a special meeting be scheduled with the City Council at the earliest practical date. It this is not possible, I request that the city include these items on its next regular council meeting. Ifit is possible I also request that a special meeting of the EDC Board be scheduled prior to the Council meeting to consider Change Order 3 to Contract III and (if matters can be resolved in time) any changes to Conlract V. If you have any questions please let me know. Warm regards, William E. Diamond 1I Cc: Tim Alexander Bill Hughes