HomeMy WebLinkAboutPR 12155:BUS. PARK POWER SVS.Port Arthur Economic Development Corporation
P. O. Box 1089 · Port Arthur, Texas 77641~1089
409/983-8195 · 409/983-8222 fax
Email: portarthuredc~eonet.net · http:#www, portarthur, com/edc
Memo
To: Mayor, City Council and City Manager
From: Ike Mills, Executive Director/t~
v
Date: Apdl 24, 2003
Re: P.R. No. 12155; Council Meeting Apd129, 2003
Attached is P.R. No. 12155 approving agreement for power services for Port
Arthur Business Park in the amount of $351,000.00 with Entergy as approved by the
Section 4A Port Arthur Economic Development Corporation.
cc: Mark Sokolow, City Attomey
Jim Wimberley, EDC Attomey
P. R. No. 12155
04/14/03 bjm
RESOLUTION NO.
A RESOLUTION APPROVING THE AGREEMENT FOR
POWER SERVICES WITH ENTERGY IN THE AMOUNT OF
$351,000 FOR THE PORT ARTHUR BUSINESS PARK AS
APPROVED BY THE SECTION 4A PORT ARTHUR
ECONOMIC DEVELOPMENT CORPORATION
WHEREAS, on March 13, 2003 the Board of Directors of Port
Arthur Section 4A Economic Development Corporation approved a
proposal for power services with Entergy for the Port Arthur
Business Park; and
WHEREAS, the actions of the Section 4A Economic Development
Corporation require the approval by the City Council; and
WHEREAS, Bill Diamond of Diamond Consulting has recommended
this agreement with Entergy per Exhibit ~A# and
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF T~E 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 cost
proposal for installation of power lines by Entergy into the
Business Park by the Section 4A Economic Development
Corporation as delineated in Exhibit "B".
Section 3. That the Executive Director of the Port Arthur
Economic Development Corporation is herein authorized to sign
an agreement incorporating the Entergy 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:
OSCAR ORTIZ, MAYOR
ATTEST:
EVA/~GELINE GREEN, CITY SECRETARY
~_~PROVED AS T~ FORM:
IOUS "IKE" MILLS, EDC, ~CUTIVE DIRECTOR
APPROVED AS TO FORM:
MARK T. SOKOLOW, CITY ATTORNEY
APPROVED FOR~/DMINISTRATION:
STEVE FITZGIBBONS, CITY MANAGER
APPROVED AS TO AVAILABLITY OR FUNDS:
REBECCA UNDERHILL, DIRECTOR OF FIND~NCE
EXHIBIT "A"
Diamond Consulting Economic Development
Amhitecture
11 Gambrel Oak Place Planning
The Woodlands, Texas 77380
April 14, 2003
Mr./kc Mills
Executive Director
Port Arthur Economic Development Corporation
P.O. Box 1089
Port Arthur, Texas 77640-1089
Re: City Council Meeting to Award Contracts and Change Orders fi~r Business Park
Dear
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 and
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 subsequent City Council meeting agendas and
are thus still pending.
Change Order 2 to Contract VI is now eritieal. The contractor must receive the alternate valve ealted for in this
change order before he can complete construction of the retention pond and ouffall structures. This valve has a lead-
time of weeks 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 -Substit~tinn of ouffall 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 Eaglo Pro Engineering Inc.
Contact VII Landscaping and Final Grading - award of the folinwing:
Contract for construction -
Ufilily Agreements
Agreement for Power Services-
Gas Service-
$597,672.00 to Excavators and Coast:rectors Inc.
$351,000.00 with Entergy
Not to exceed $165.000-with Texas Gas
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 Contract V- Road Improvements as a result of changes ia soil moisture content (see
Monthly Report for March and April). Additional soil tests are currently underway to resolve concerns and
revise paving section and sub grade design if required.
Change Order 3 to Contract III - Underground Utilities - This change order is for revisions in the Jade
Road connection to a new off site water line being constructed by the City unde? separate contract. These
ph 281 367 7821 fax 281 292 7552 email diaconsult@wofldnet, att.net
ilce 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 Lac and reviewed by our Engineer. This change order is also time critical.
I respectfully 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. If it 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 Contract V.
If you have any questions please let me know,
William E. Diamond II
Co: Tim Alexander
Bill Hughes
EXHIBIT "B"
· ~E-26-2003 ~[D 04:18 PM $OHflUMBURG & POLK FflX NO. 14098660337 P, 02
Entergy
Entefl~ Dlatributlon
P.O, I~ox 2951
Beaumont, TX 77704
March 13, 2003
Mr, Bill Hughes, Jr., P.E,
Schaumburg & Polk, Inc.
8865 College Street
Beaumont, TX 77707
,RE: Service to the West Pod Arthur RoO.d Industrial Park.l~roiect
Dear Mr. Hughes:
The purpose of this letter is to provide an update on the work Entergy has
provided so far at the West Port Arthur Road Industrial Park Project (Project),
what work Entergy wilt provide in the future, and any costs associated with the
proposed future work.
Entergy has completed construction on the first phase of the overhead
distribution line along the south property line. This work was completed without
any required contribution from the Project. Entergy will be extending the
ovorhead distribution line along the west property line to the wR.~tPtn ~nd nf the
proposed 'underground distribution backbone". This proposed overhead
extension would not require any contribution from the Project.
The Project has agreed to install the required underground distribution conduit
infrastructure without any contribution from Entergy. Entergy will install a single-
phase, underground pdmary cable, puff boxes, and two pad.mounted
traneformer~ along W. Port Arthur Road to serve the power mq, limm~nt.~ nf the
two Park entrances using the conduit infrastructure supplied by the Project.
While the contribution amount has been significantly reduced due to the conduit
infrastruc[ure, the reqLlired contribution from the Projeot for this phase is $16,500.
Serviee locations will be at each transformer from an underground meter stand to
be provided and installed by the Project.
Using conduit infrastructure installed by the Project, Entergy will install a three-
phase underground pdmary cable =distribution backbone~ and thirteen (13) pull
boxes along the "backbone". This "underground distribution backbone" will tie
with the newly constructed overhead line near the west property line. Again,
whil~ the an'~ount has been significantly ~dueed due to ~e conduit infrostruoturo,
tho toquirad contribution from the Projed for this phase of the work is $28fl,013t)
Included in this cost is the ~'utu~'e purchase and installation of three (3) switching
cabinets valued at $31,500 each. These cabinets will be installed as required
over the next three years at no additional charge to the ProjeCt, other than for
secondary and/or service components in excess of the revenue credit.
Once the initial three switching cabinets have been installed, the Project will be
billed at the then estimated cost for each additional switching cabinet. The
'HAB-26-2003 WED 04:t9 PM SOH~U~BUR6 & POLK FA× NO, 14098660337 P, 03
Project will also be billed for the secondary and/or service requirements for eaoh
customer, less any revenue credit.
If, after three years [or extended by mui.uul ~u~m~,,[}, a,',Y ~f ihs t~l'ee (3) initial
cabinets that have not been installed will be credited at $31,500 per cabinet. This
~,~.li[, along with say revenue o~udit, wilt be applied t~ an updntnd estimate for
installing the cabinet and serving the new custor~ers.
Using conduit infrastructure installed by the Project, Entergy will install 15-32',
steel, direct embedded poles and 19-250 waft, cobra-head, high pressure sodium
(HPS) lights. The lights will be located at street intersections, approximately
every 500 feet_ These are standard lights and have already been approved for
use in street lighting by the City of Port Arthur. The required contribution from the
Project for the installation of this phase of lights is $35,000. This contribution
includes the installation of four double4~eaded structures, two at each entrance.
Entergy will relocate the 11 single-phase poles, currently located on the west
side of W. Port Arthur Road. We propo~) to relocate 'a'~ese poles to the east side
of the highway to an area between the railroad and the highway. The Texas
Department of Tran,,pu~ tal. lo~'~ and the railroad hove not yet given permission to
relocate this line. Therefore, the cost of this relocation will be subject to revision
until all parties involved have agreed to the proposal. The contributiof~ to the
Project for this relocation is currently $19,500.
The total proposed contribution to Entergy from the Project is $351,000.00.
In order to comply with Texas tax laws, please provide Entergy with a current
copy of the Project's Tax Certificate showing the exemption from State taxes.
As has been previously discussed, we are limited in the amount of load (2 MW)
currently available to serve this site. If the load grows to exceed the 2MW limit, it
will take 18-24 months, minimum, to construct a substation on the Project site to
provide additional load.
Once Entergy receives a letter of commitment from the Economic Development
Council or the Port Arthur City Council agreeing to the above listed charges, we
can meet to discuss the proposed schedule of construction.
If you have further questions, please contact me.
M. Brian Cross
Senior Engineer- Design East
(409) 785-22223