HomeMy WebLinkAboutPR 16813: EXECUTION OF AMENDMENT NO. 1 TO A PIPELINE CROSSING CONTRACT WITH KANSAS CITY SOUTHERN RAILWAY COMPANY MEMORANDUM
CITY OF PORT ARTHUR
UTILITY OPERATIONS DEPARTMENT
TO: Stephen Fitzgibbons, City Manager
FROM: Kelly Eldridge, Director of Utility Operations
74(
� DATE: December 5, 2011
SUBJECT: Proposed Resolution No. 16813
COMMENTS
RECOMMENDATION
I recommend that the City Council approve Proposed Resolution No. 16813 authorizing the
execution of Amendment No. 1 to a Pipeline Crossing Contract with Kansas City Southern Railway
Company, a Missouri Corporation, for a sanitary sewer force main crossing their railroad right -of-
way between 46 Street and 57 Street for the Adams Elementary Lift Station Force Main.
BACKGROUND
In 2010, the PAISD contracted for the construction of a lift station and force main to provide public
sanitary sewer service to Adams Elementary School. The force main runs across a lot of undeveloped
property and discharges into the City's existing 24" force main running parallel to the KCS tracks on
the Twin City Hwy. side of the tracks. Their engineer designed the crossing and negotiated the
required Pipeline Crossing Contract with Kansas City Southern Railway Company for the PAISD to
pay a one -time fee ($9,375.00) for the crossing permit. However, that language was incorrectly stated
in the original contract supplied to the City. Their engineer has obtained this contract amendment to
correct the language as originally negotiated.
BUDGET/FISCAL EFFECT
None. The PAISD has paid the fees for this Pipeline Crossing Contract.
STAFF/EMPLOYEE EFFECT
None.
SUMMARY
I recommend that the City Council approve Proposed Resolution No. 16813 authorizing the
execution of Amendment No. 1 to a Pipeline Crossing Contract with Kansas City Southern Railway
Company, a Missouri Corporation, for a sanitary sewer force main crossing their railroad ROW.
P.R. No. 16813
12/05/11
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE EXECUTION OF
AMENDMENT NO.1 TO A PIPELINE CROSSING CONTRACT
BETWEEN THE CITY OF PORT ARTHUR AND KANSAS CITY
SOUTHERN RAILWAY COMPANY.
WHEREAS, the PAISD constructed a public sanitary sewer lift station and force main to
serve Staff Sgt. Lucian Adams Elementary, located at 9 Avenue & 57 Street; and,
WHEREAS, by Resolution No. 10 -204, the City entered into a contract with Kansas City
Southern Railway for permission to install and operate a force main across their tracks to serve this
new school and adjacent properties; and,
WHEREAS, the negotiated agreement was incorrectly stated in the original Pipeline
Crossing Contract, and Amendment No. 1 to the Pipeline Crossing Contract has been agreed to by
both parties; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT the City Council of the City of Port Arthur hereby authorizes the City Manager of the
City of Port Arthur to execute on behalf of the City of Port Arthur Amendment No. 1 to a Pipeline
Crossing Contract between the City of Port Arthur and Kansas City Southern Railway Company a
Missouri corporation, copy attached hereto as Exhibit "A "; and,
THAT a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED AM) APPROVED THIS day of , 2011
at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
1
P.R. No. 16813
12/05/11
Page 2 of 2
AYES: Mayor
Councilmembers:
NOES:
Deloris Prince
Mayor
ATTEST: APPROVED AS TO FORM:
Sherri Bellard Valecia Tizeno /
City Secretary City Attorney
APPROVED FOR ADMINISTRATION:
I hAr
Stephen Fitzgibbons Ross Blac etter, P.E.
City Manager Director of Public Works
7 -egte 14:4_ d
Kelly Eldridge?
Director of Utility Operations
EXHIBIT A
Contract #000006850
AMENDMENT NO. 1 TO PIPELINE CROSSING CONTRACT
This AMENDMENT No. 1 ( "AMENDMENT ") amends that certain pipeline crossing contract, dated
May 20, 2010, ( "BASIC AGREEMENT "), by and between THE KANSAS CITY SOUTHERN RAILWAY
COMPANY, ( "Railway Company ") and PORT ARTHUR INDEPENDENT SCHOOL DISTRICT /CITY OF
PORT ARTHUR, TEXAS, to be addressed at 733 5 Street, Port Arthur, TX 77640, ( "Licensee "). The effective
date of this AMENDMENT is the 26 day of August, 2011.
RECITALS:
The parties hereto entered into the BASIC AGREEMENT for the installation of a 6.02" x 102' sanitary
sewer pipeline, under Railway Company's tracks and right -of -way at Mile Post 779.80 (Beaumont Subdivision) at
or near Port Arthur (Jefferson County), Texas.
AGREEMENT:
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
SECTION 2
Section 8 of the BASIC AGREEMENT is hereby deleted in its entirety and replaced with the following:
8. Licensee agrees to pay to Licensor for the use of Licensor's right -of -way and the privilege hereby
granted, such use and privilege being expressly limited to the facilities described in Section 1 above, the one time
sum of NINE THOUSAND THREE HUNDRED SEVENTY FIVE AND NO /100 DOLLARS ($9,375.00), due
upon execution of this Agreement. One time sum has been paid by check no. 15515 dated 6/10/10 in the amount of
$18,750.00 for two (2) sanitary sewer pipelines, of which only one (1) pipeline was installed and $9,375 refunded
back to Licensee.
Except as modified herein, all terms and conditions of the BASIC AGREEMENT shall remain in full
force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT Agreement in
triplicate as of the day and year first above written.
THE KANSAS CITY SOUTHERN RAILWAY COMPANY
By:
Title:
Date:
PORT ARTHUR INDEPENDENT SCHOOL DISTRICT /CITY
OF PORT ARTHUR, TEXAS
By:
Title:
Date:
- Page 1 of 1 -