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HomeMy WebLinkAboutPR 17162: DONATION AGREEMENT FOR WEST SIDE COMMUNITY CLINIC interoffice MEMORANDUM To: Mayor, City Council, and City Manager From: Valecia R. Tizeno, City Attorney /41_4 / Date: July 6, 2012 Subject: P. R. No. 17162; Council Meeting July 10, 2012 Attached is P. R. No. 11762 authorizing the City Manager to enter into a Construction Authorization and Donation Agreement with Port Arthur for Positive Action ( "PAPA ") for a West Side Community Clinic. VRT:gt Attachment s.pr17162_memo P. R. NO. 17162 07/06/2012 gt RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION AUTHORIZATION AND DONATION AGREEMENT WITH PORT ARTHUR FOR POSITIVE ACTION ( "PAPA ") FOR A WEST SIDE COMMUNITY CLINIC WHEREAS, it is in the best interests of the citizens of Port Arthur to enter into a Construction Authorization and Donation Agreement with Port Arthur for Positive Action ( "PAPA "); and WHEREAS, a contract for construction and donation of the West Side Community Clinic is attached hereto as Exhibit "A "; and WHEREAS, the City intends to have the Gulf Coast Health Center operate the Facility as a community health clinic and all parties believe that the location is in an area that will greatly serve the citizens of Port Arthur. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. The facts and opinions in the preamble are true and correct. Section 2. That the City Manager is herein authorized to enter into a Construction Authorization and Donation Agreement with Port Arthur for Positive Action ( "PAPA ") for the construction and donation of the West Side Community Clinic, in substantially the same for as attached hereto as Exhibit "A ". s.pr17162 Section 3. That a copy of the caption of this Resolution shall be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED, this day of 2012 AD, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: Councilmembers: NOES: Deloris "Bobbie" Prince, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: fil/d , -4/P Valecia R. T City Attorney APPROVED FOR ADMINISTRATION: John A. Comeaux, P.E., Acting City Manager s.pr17162 EXHIBIT "A" 1 , s.pr17162 CONSTRUCTION AUTHORIZATION AND DONATION AGREEMENT This Agreement is made by and between the City of Port Arthur, Texas ( "CITY "), a home rule municipality, and The Premcor Refining Group Inc., doing business as the Valero Port Arthur Refinery ( "VALERO "). RECITALS WHEREAS, the CITY is the owner of real property located at the intersection of Reverend Ransom Howard Street and Reverend Raymond Scott Avenue in Port Arthur, Texas, legally described in attached Exhibit "A" (hereinafter referred to as the "Property "); and WHEREAS, VALERO will build one of the structures to be located on the Property along with certain site improvements (hereinafter referred to as the "Facility ") on the Property, and VALERO has committed funds for the design and construction of said Facility as noted in the plans and specifications attached hereto as Exhibit "B "; and WHEREAS, the CITY intends to have the Gulf Coast Health Center operate the Facility as a community health clinic and all parties believe that the location is in an area that will greatly serve the citizens of Port Arthur; and WHEREAS, VALERO has developed a budget for the construction of the Facility and will be responsible for the completion of the Facility in accordance with said budget and the design plans and specifications noted in Exhibit `B "; and WHEREAS, VALERO intends to negotiate the final construction agreement with a reputable contractor chosen by VALERO to construct the Facility; and WHEREAS, upon completion of the Facility as contemplated in this Agreement, VALERO intends to donate to the CITY the completed Facility, as set forth more fully below (the "Donation "); and WHEREAS, the CITY desires to accept such Donation from VALERO, and VALERO agrees that all applicable permits and inspections will have been secured and/or requested from the CITY to ensure that the Facility substantially complies with the CITY'S applicable building codes, as delineated in the Code of Ordinances of the City of Port Arthur ; and WHEREAS, in order to facilitate the expeditious development of the Facility, the CITY will assist VALERO and/or its contractor(s) in securing the necessary permits and inspections in a timely manner; and WHEREAS, the parties recognize that future agreements formalizing the terms set out in this Agreement will be determined by VALERO and the City Council of the City of Port Arthur. 1 NOW THEREFORE, the parties desire to set forth the terms and conditions of the construction and donation of the Facility in this Agreement as hereby follows: ARTICLE I DUTIES AND RESPONSIBILITIES 1.01. The City hereby authorizes VALERO to take all actions necessary to cause the Facilities to be constructed on Property owned by the CITY. The construction of the Facility, as shown in attached Exhibit "B", will be performed in substantial compliance with the applicable City of Port Arthur building code requirements. The CITY hereby expressly authorizes and grants to VALERO it contractors, subcontractors, employees, representatives, agents and assigns the full right of access and use of the Property as VALERO may deem necessary and useful for the construction of the Facility. The CITY will not interfere with or delay VALERO or its contractors in the construction of the Facility. 1.02. The parties understand that no public funds will be utilized for the construction of the Facility and that VALERO will maintain all financial responsibility for payment of construction costs pursuant to the final contract between VALERO and the construction contractor chosen by VALERO. 1.03. During the construction phase, VALERO will provide reasonable information requested by the City with regards to the project scope, design, procurement process, and the progress of the project. The CITY will cooperate with VALERO, in promptly providing input and approvals when requested by VALERO. 1.04. The Facility, when completed by VALERO, will be donated to the CITY IN AN "AS IS, WHERE IS, AND WITH ALL FAULTS" CONDITION, WITH NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING NO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED. THE CITY OF PORT ARTHUR IS FAMILIAR WITH THE CONDITION OF THE PROPERTY AND FACILITY, AND HAS BEEN REPRESENTED BY COUNSEL AND OTHER REPRESENTATIVES EXPERIENCED IN CONSTRUCTION AND WITH REGARDS TO THE CONDITION, TYPE AND NATURE OF THE PROPERTY AND FACILITY, AND HAS NOT RELIED ON ANY REPRESENTATIONS OR WARRANTIES FROM VALERO OF ANY KIND IN ITS EVALUATION OF OR DECISION TO ACCEPT THE PROPOSED DONATION. ARTICLE II INSURANCE REQUIREMENTS 2.01. With respect to any construction contract agreement entered into between VALERO and the selected contractor, VALERO will include the appropriate requirements for the maintenance of workers compensation insurance coverage for the benefit of the employees of the contractor and commercial general liability insurance on behalf of VALERO, with the City of Port Arthur named as an additional insured, with limits of no less than $500,000.00 combined single limit per occurrence and $1,000,000.00 aggregate for personal injury, bodily injury, and property damage, together with 2 any other form of insurance normally associated with a construction contract for the type of facilities envisioned by this Agreement 2.02. Proof of said insurance coverages will be provided by the selected contractor to VALERO and the CITY prior to the commencement of any construction of the Facility by submitting appropriate insurance certificate reflecting the foregoing coverages and identification of insured parties. ARTICLE III INDEMNIFICATION 3.01. VALERO does not directly provide any form of guaranty, warranty or indemnification for the benefit of the CITY related to the supply or construction of the Facility. VALERO will seek from the selected contractor, for the benefit of VALERO and the CITY, such indemnity provisions as it usually seeks from contractors providing similar services for VALERO. In addition, VALERO will require the contractor chosen by VALERO to provide insurance coverages as identified in Article II above. THE CITY AGREES TO LOOK TO THE INDEMNITIES AND INSURANCE PROVIDED BY THE SELECTED CONTRACTOR AS ITS SOLE AND EXCLUSIVE REMEDIES WITH RESPECT TO ANY CLAIMS RELATING TO THE SUPPLY OR CONSTRUCTION OF THE FACILITIES, AND THE CITY HEREBY WAIVES, RELEASES AND COVENANTS NOT TO SUE VALERO WITH RESPECT TO ANY SUCH CLAIMS. 3.02. VALERO shall not discriminate against any employee, applicant for employment, or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, disability, or other circumstance prohibited by federal, state or local ordinance. 3.03. VALERO assumes no responsibility of any kind with respect to the title or condition of the Property owned by the City of Port Arthur upon which the Facility will be constructed, including with respect to the discovery or existence of any hazardous or regulated substance on said Property. The construction of any improvements on the properties by VALERO or its contractors shall be free and clear of any obligations by VALERO related to the existence of hazardous or regulated substances. The duty of inspection as to the existence of said substances shall be solely attributable to the CITY. THE CITY SHALL FULLY INDEMNIFY, DEFEND AND HOLD VALERO HARMLESS FROM ANY CLAIMS WITH RESPECT TO THE EXISTENCE OF HAZARDOUS OR REGULATED SUBSTANCES ON THE PROPERTIES OWNED BY THE CITY. THIS INDEMNIFICATION SHALL INCLUDE, BUT NOT BE LIMITED TO, REASONABLE ATTORNEY'S FEES AND COSTS OF COURT INCURRED IN THE DEFENSE OF ANY CLAIM ALLEGED AGAINST VALERO WITH RESPECT TO THE EXISTENCE OF HAZARDOUS OR REGULATED SUBSTANCES ON THE PROPERTY OWNED BY THE CITY, AND THE COSTS OF ANY REMEDIATION, VOLUNTARY OR OTHERWISE, OF ANY DISCOVERED HAZARDOUS OR REGULATED SUBSTANCES. The term "hazardous or regulated substances" shall be as defined in any local, state or federal law, rule or regulation applicable to such substances in general and/or the existence of such substances on the properties owned by the CITY. 3 ARTICLE IV DONATION 4.01. The parties to this Agreement agree that the CITY shall have the authority to conduct its own inspection to verify that the Facility has been constructed in accordance with the terms of this Agreement. The CITY acknowledges that it has had the opportunity to review and does hereby approve the designs, plans and specifications attached hereto as Exhibit `B ". VALERO shall have full responsibility for, and control over, the construction of the Facility. No material changes in said designs, plans or specifications, as reviewed by the CITY, having a cumulative change cost of greater than Five Thousand ($5,000.00) Dollars, shall be made without the review and approval of VALERO , in consultation with a designated representative of the CITY. 4.02. Upon completion of the construction of the Facility, including payment of all costs associated therewith that have been properly authorized by VALERO, and confirmation of substantial compliance with all applicable requirements of the Code of Ordinances by the City of Port Arthur, VALERO will execute and deliver to the CITY an appropriate donation document. 4.03. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, and all of which together will constitute one and the same instrument. 4.04. This Agreement is governed by and shall be construed according to the laws of the State of Texas. Venue for any dispute arising hereunder shall be Jefferson County, Texas. 4.05. This Agreement is binding on the CITY, VALERO, and their respective successors, assigns and legal representatives. 4.06. This Agreement may not be assigned without the express written consent of the parties, which consent shall not be unreasonably withheld. 4.07. This Agreement sets forth the final and entire agreement between the parties hereto and neither they nor their agents shall be bound by any terms, conditions, statements, warranties or representations, oral or written, not herein contained. No amendment or modification of this Agreement will be effective unless in writing and signed by the CITY and VALERO. EXECUTED AND EFFECTIVE this day of , 2012. CITY OF PORT ARTHUR, TEXAS By: John A. Comeaux, P.E., Acting City Manager 4 THE PREMCOR REFINING GROUP INC. 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I.I.I.I.I.iiI.I.I.I..1.I.1.1.1 nll • I t I 1 • 3 ii V ii 11 arg 2. a N I ?° l g ! J � y 3 0 GULF COAST < :g!roq °/ BERT LAMSON DESIGN � , m c c < -- 1 HEALTH CENTER ■, R °' a @'l • "M 'y $ , - at ti x- vim' 0/88014g 3800 HIGHWAY 365, SUITE 150 C c g m m o Q = u 6018 REV. DR. RANSOM HOWARD ST. I $I; PORT ARTHUR, TEXAS 77642 1%) N D PORT ARTHUR, TEXAS m TR6 1;X :11 (409) 724 - 1724