HomeMy WebLinkAboutPR 17639: LICENSE AGREEMENT WITH SABINE PASS LIQUEFACTION FOR WATER LINE MEMORANDUM
CITY OF PORT ARTHUR
UTILITY OPERATIONS DEPARTMENT
TO: Floyd T. Johnson, City Manager
FROM: Kelly Eldridge, Director of Utility Operations )46-
DATE: April 2, 2013
RE: Proposed Resolution No. 17639
COMMENTS
RECOMMENDATION
I recommend that the City Council approve Proposed Resolution No. 17639, which approves a
License Agreement with Sabine Pass Liquefaction, LLC for the purpose of installing, maintaining,
operating, and replacing a private water line and appurtenances in City right -of -way along Mechanic
Street and S. 2 Avenue
BACKGROUND
Sabine Pass Liquefaction, LLC proposes to build a private water line to serve their new facility across
from the Sabine Pass area. This water line will extend from a proposed new metering station adjacent
to our Sabine Pass Standpipe at S. 2 Avenue and Mechanic Street across the channel to the LNG
facility. Also, the proposed City -owned and operated metering station will enclose the private piping
and required backflow prevention devices to make connection to our public system. Sabine Pass
Liquefaction, LLC will install, own, and operate the water line and appurtenances in our right -of -way.
BUDGET/FISCAL EFFECT
None.
STAFFING/EMPLOYEE EFFECT
City staff will inspect the construction of all of these improvements.
SUMMARY
I recommend that the City Council approve Proposed Resolution No. 17639, which approves a
License Agreement with Sabine Pass Liquefaction, LLC for the purpose of installing, maintaining,
operating, and replacing a private water line and appurtenances in City right -of -way along Mechanic
Street and S. 2 Avenue
P.R. No. 17639
04/02/13
RESOLUTION NO.
A RESOLUTION APPROVING A LICENSE
AGREEMENT WITH SABINE PASS
LIQUEFACTION, LLC FOR THE CONSTRUCTION,
INSTALLATION, LAYING, AND MAINTAINING OF
A PRIVATE WATER LINE AND APPURTENANCES
WITHIN CITY RIGHT -OF -WAY IN THE CITY OF
PORT ARTHUR.
WHEREAS, Sabine Pass Liquefaction, LLC is constructing a LNG Liquefaction facility to be
served drinking water by the City of Port Arthur; and,
WHEREAS, the new facility requires a private water line to be constructed within City right-
of-way along Mechanic Street and S. 2nd Avenue; and,
WHEREAS, the City Council deems it appropriate to approve a License Agreement to allow
for the construction, installation, laying, and maintenance of such private improvements within the
City right -of -way in the City of Port Arthur; NOW THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,
TEXAS:
THAT, the License Agreement with Sabine Pass Liquefaction, LLC, for the purpose of
installing, maintaining, operating, and replacing a private water line and appurtenances in
substantially the same form as attached Exhibit "A ", is hereby approved; and,
THAT, the License Agreement will not be valid until signed by the SABINE PASS
LIQUEFACTION, LLC and the License fee of $100.00 is paid to the City; and,
THAT, the City Manager of the City of Port Arthur is hereby authorized and directed
to execute on behalf of the City said License Agreement with SABINE PASS LIQUEFACTION,
LLC, in substantially the same form as attached in Exhibit "A ", is hereby approved and,
P.R. No. 17639
04/02/13
Page 2
THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City
Council.
READ, ADOPTED AND APPROVED THIS day of
2013, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following
vote: AYES: Mayor
Councilmembers:
NOES:
Deloris Prince
Mayor
ATTEST: APPROVED AS TO FORM:
Sherri Bellard Valecia Tizeno
City Secretary City Attorney
APPROVED FOR ADMINISTRATION:
16. Eik,
Flo d T. Johnson Kelly Eldr�id e
Y Y dge
Manager Director of Utility Operations
Ross Blackketter, P.E.
Director of Public Works
EXHIBIT "A"
LICENSE AGREEMENT
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS
COUNT OF JEFFERSON
THAT the City of Port Arthur, a municipal corporation organized and existing under
the laws of the State of Texas (hereinafter called "Licensor"), for and in consideration of the
sum of $100.00 Dollars it in hand paid by Sabine Pass Liquefaction, LLC (hereinafter called
"Licensee ") as well as other good and valuable consideration, receipt of all of which is
hereby acknowledged and confessed, hereby grants unto the said Licensee a right, privilege
and License in, under and across the following public rights -of -way situated in Jefferson
county, Texas, to -wit:
Within the existing right -of -way of Mechanic Street from S. 1 Avenue to S. 2nd
Avenue, and in S. 2 Avenue ROW from Mechanic Street to the Sabine Pass
Standpipe, being a uniform strip of land 10 feet in width, lying within the Right -of-
Way, as shown on Attachment "A "..
Said License shall be limited to a 10 -foot wide strip, a minimum of 10 feet from the
existing parallel public water and sanitary sewer lines along Mechanic Street, then
along S. 2 " Avenue to the Sabine Pass Standpipe, as shown on Exhibit "A" attached
hereto and made a part hereof.
Said License shall be for the purpose of constructing, installing, maintaining,
operating, replacing and repairing one (1) 16 -inch (16 ") diameter, 150 psig minimum
pressure class, private drinking water line. Said License is granted subject to the
following provisions:
1. Licensees shall make one (1) payment of $100.00 to Licensor upon issuance
of License.
2. Water line shall be buried a minimum of 30 inches below the surface of
natural ground and a minimum of 24 inches below the flow line of roadside
ditches.
3. Excavations made on Licensor's property shall be promptly refilled by
Licensee, the earth well tamped, the ground left in the same condition as
before installation of said water line, and locations of the line marked every
1,000 feet (minimum of one marker) and at points of turn and the markers
shall be maintained and plainly visible. All street and drainage conditions
shall be restored to as good or better condition than the original state.
4. Licensee shall have the right of ingress to and egress to this easement for the
aforesaid purposes of this License. A temporary working easement of 15 feet
in width is granted herein, being within the City right -of -way. The 15 foot wide
temporary easement is granted for a period of 30 days for construction, with
the right to use said 15 -feet in the event of repairs, replacement or removal of
said water line in the future.
5. This License is subject to all existing easements of record. No rights are
purported to be granted by Licensor within this easement, where Licensor has
only a right -of -way easement, and in which the Licensor may have joint use
agreements with other utilities.
6. In the event Licensor, at any time, decides a change in the location of, or
other changes in, said private water line is desirable or necessary, Licensee
will, at its own expense make the changes at Licensor's request.
7. No other person, business or corporation shall be allowed to tie into
Licensee's private water line installed under this License.
8. Licensee shall provide adequate warning devices to protect the public for the
duration of the work, and shall comply with all safety requirements as are
normal to the industry.
9. If said private water line is abandoned for a continuous period of one (1) year,
said License shall immediately terminate, free of any claim or right by
Licensee.
10. This License shall continue in force here forth until terminated by the giving of
90 days written notice by either party. Upon termination hereof, Licensee
shall immediately remove said facilities from the property of Licensor, and
upon failure to do so Licensor may remove said facilities at Licensee's cost,
which cost Licensee agrees to pay.
Rights herein granted to Licensee are not assignable without Licensor's written
consent, and provisions herein shall be binding upon successors and assigns of both
parties.
In consideration of the privileges herein granted, Licensee agrees to indemnify and
hold harmless Licensor from any and all claims, suits or demands for damage or Toss to
property or for personal injuries to or death of persons, including all necessary costs and
expenses to Licensor relating to such claims, suits or demands caused by, resulting from or
arising from the construction, maintenance, operation, repair or removal of said water line
except for negligent acts of Licensor. In addition, Licensee shall cause his contractor to
furnish a bond, on forms and with corporate surety satisfactory to Licensor, in an amount of
$250,000. Such Bond shall inure to the benefit of Licensor and any person who may suffer
a Toss or injury as a result of Licensee's Contractor's operations during the period until
completion of installation of the facilities is approved in writing by Licensor's Engineer.
IN WITNESS WHEREOF, parties hereto have caused this License to be executed in
duplicate this day of , 2013.
APPROVED IN FORM: CITY OF PORT ARTHUR
City Attorney Mayor
APPROVED: ATTEST:
City Manager City Secretary
Director of Public Works
LICENSEE:
Sabine Pass Liquefaction, LLC
LICENSEE ACKNOWLEGEMENT
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
BEFORE ME, the undersigned authority, on this day personally appeared
of SABINE
PASS LIQUEFACTION, LLC, known to me to be the person(s) whose name(s) is(are)
subscribed to the foregoing instrument and acknowledged to me that he /she executed the
same for the purposes and consideration therein expressed and as the act and deed on
behalf of the SABINE PASS LIQUEFACTION, LLC
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the
day of , 2013.
Notary Public for the State of Texas
RETURN TO:
CITY OF PORT ARTHUR
ATTN: Valecia Tizeno
City Attorney
P. O. Box 1089
Port Arthur, Texas 77641 -1089
MUNICIPAL CORPOROTION ACKNOWLEDGEMENT
This License Agreement was accepted by the City of Port Arthur per Resolution
No. approved by the City Council on
WITNESS MY HAND this day of 2013.
CITY OF PORT ARTHUR
By:
Floyd T. Johnson, City Manager
ACKNOWLEDGMENT
THE STATE OF TEXAS
COUNTY OF JEFFERSON
BEFORE ME, the undersigned Notary Public, on this day personally appeared
Floyd T. Johnson, City Manager of the City of Port Arthur, known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same as the act and deeds of the City of Port Arthur, for the purposes and
considerations therein expressed, and in the capacities therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
2013
Notary Public for the State of Texas
ATTACHMENT "A"
.._ .._. __...-
A W
a o N
a
•
v ;
g � -i
a o
w
z Y
as w
cE x
c U
V
2
CC J 1—
1 U) f" Q W co
Q W W I O cn
F- 2 a
o z <
LL w U) z ul o
} O jr 2 a
W U
U W J "' °
U o 0
x x
U U
Cr
Q
M O
Z
wa
Qa
a
0
z
(
w
> v°,
i
0 li
I-
D
2 m tel it VI N r m a /7 N
Z
O
T1s OIN\/H031 tO .
of
Y
Z
Q
t— 0 0
W
M O
Q
o
._ 0 0. 1t E LLo
3 Z�
ce
6 _ `° !i.
1-- `- y °o W
gi d � g w N
d 0: 0
ww
I— to
� dd� FR;
d to W ;
®
01 F.1
W J
v�v S Q Q
% e w6
i- 1-