HomeMy WebLinkAboutresolution.council.041-12 RESOLUTION # C/(
(Series of 2012)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN,
COLORADO, APPROVING A CONTRACT BETWEEN THE CITY OF ASPEN
AND SOURCE GAS FOR NATURAL GAS SERVICE EXTENSION AND
INSPECTION DURING THE 2012 BURLINGAME PHASE IIA ACCESS
INFRASTRUCTURE CONSTRUCTION PROJECT AUTHORIZING THE CITY
MANAGER TO EXECUTE SAID CONTRACT ON BEHALF OF THE CITY OF
ASPEN, COLORADO.
WHEREAS, there has been submitted to the City Council a contract for
natural gas service extension, and inspection during the 2012 Burlingame Phase
IIA access infrastructure construction project, between the City of Aspen and
Source Gas, a true and accurate copy of which is attached hereto as Exhibit "A";
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ASPEN, COLORADO,
That the City Council of the City of Aspen hereby approves that Contract
for natural gas service extension and inspection during the 2012 Burlingame Phase
IIA access infrastructure construction project, between the City of Aspen and
Source Gas, a copy of which is annexed hereto and incorporated herein, and does
hereby authorize the City Manager to execute said agreement on behalf of the City
of Aspen.
INTRODUCED, READ AND ADOPTED by the City Council of the City of
Aspen on the 23`d day of April 2012.
Michael C. Ire and, Mayor
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the
foregoing is a true and accurate copy of that resolution adopted by the City
Council of the City of Aspen, Colorado, at a meeting held, April 23, 2012.
SPY/ ,
Kathry/. Koch, City Clerk
Gas
C0120170001
CITY OF ASPEN
GAS SERVICE EXTENSION AGREEMENT
(Agreement Covering Advances in Aid of Construction)
THIS GAS SERVICE EXTENSION AGREEMENT ("Agreement"), is made and entered into
this 29th day of March, 2012 ("Effective Date") by and between City of Aspen ("Developer"), and
SourceGas Distribution LLC, a Delaware Limited Liability Company ("Company"). In consideration
of the promises and other valuable consideration herein acknowledged, the parties agree as follows:
Developer is desirous of securing for future customers of natural gas service to the
development (as defined in Paragraph 2 below). Company is desirous of furnishing
such service in accordance with the rates, terms, and conditions set forth in
Company's applicable Tariff filed with the Colorado Public Utilities Commission
("Commission"). In addition to the payment as a contribution in aid of construction to
be made by Developer to Company as provided for below, Developer must comply
with the terms and conditions of Company's applicable Tariff to receive natural gas
service.
For purposes of this Agreement, Developer is not a customer, as defined in
Company's applicable Tariff.
2. (A) In order to provide the natural gas service, it will be necessary for Company
to construct approximately 3,300 foot of 2 inch gas distribution main to the
following premises identified as: Burlingame Phase 11 ("Extension"), which will
include, among other work, the trenching and backfilling of the pipeline. The specific
boundaries of the development covered by this Agreement, and the proposed routing
of the gas main(s) or service line is North of the end of Harmony Road., and East
Mining Parkway . Developer, at Developer's cost, may elect to dig or cause to be dug
the trench and the backfilling of the trench for the natural gas pipeline to be placed
into service by Company, which trenching and backfilling work will be performed in
accordance with the specifications described on Addendum A of this Agreement and
coordinated in advance with Company. The work performed or caused to be
performed by Developer must be acceptable to Company.
For the purposes of this Agreement:
X Yes, Developer has elected to and will perform or cause to be
performed the trenching and backfilling as provided for above.
No, Developer has elected not to perform the trenching and
backfilling and such work will be performed by Company and the cost included in the
amount of the contribution in aid of construction payment to be made by Developer to
Company.
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Gas
(B) Developer shall pay to the Company, in advance of commencement of
construction, as a contribution in aid of the construction of the Extension the amount
of $25,923.00, of which $21,784.00 may be available for refund to Developer as
provided tor below. Such payment shall be paid by check payable to: SourceGas
Distribution LLC. Company does not authorize, and Developer should not remit,
payment to any other person, individual or entity.
3. (A) Company agrees that for all customers of Company, connected to the subject
Extension and served by Company within three (3) years from the Effective Date of
this Agreement ("Refund Eligibility Period"), Company will make a one time refund
to the Developer of an amount equal to $790.00 for each customer so connected.
However, the total of all such refunds shall not exceed under any circumstance and
Company shall have no obligation whatsoever to refund to the Developer any amount
in excess of $21,784.00. For the purposes of this Agreement, customer shall be
defined as any individually-metered end user connected to the extension with either
natural gas as the primary space heating and water heating, or natural gas appliances
of comparable annual load, as determined by Company.
(B) With respect to the applicable Base Rate Area (check the applicable Base
Rate Area below):
X Base Rate Area 1: In cases where a connected customer of Company will have
annual usage greater than 757 therms/year, the refund to the Developer under this
Agreement may be increased by Company by the amount of$2.40 for each therm of
annual usage by the customer greater than 757 therms/year;
Base Rate Area 2: In cases where a connected customer of Company will
have annual usage greater than 760 therms/year, the refund to the Developer under
this Agreement may be increased by Company by the amount of$2.20 for each therm
of annual usage by the customer greater than 760 therms/year; subject to the
limitations and provisions of this Agreement, the terms and conditions set forth in
Company's applicable Tariff, as amended from time to time, the rules and regulations
of the Commission and applicable law.
(C) Developer's entitlement to refund shall not apply to any customers connected
and served off of any future extensions(s), or laterals coming off of the Extension.
Developer specifically understands, acknowledges, and agrees that the Company has
the right to make further extensions(s) to or laterals off of the Extension, including
any extensions or laterals that extend beyond the physical boundaries covered by this
Agreement,without any refund obligation whatsoever to Developer.
(D) Developer will make a reasonable attempt to provide Company a list of new
connection addresses once annually, and prior to the termination date of this
Agreement.
4. Company will endeavor to construct the Extension within a reasonable time period,
subject to applicable laws, rules and regulations of governmental authorities, and
subject to any delay occasioned by lack of right-of-way, availability of materials and
supplies, force majeure or events or conditions of whatsoever nature reasonably
2
Gas
beyond the Company's control, and further conditioned upon the receipt of all
required approvals and consents in form and substance acceptable to Company.
5. Company shall not be obligated to commence the construction of the Extension or
provide service to Customer unless and until: (a) customer has caused the right-of-
way for the main extension or service line to be clearly staked on the ground; (b) such
right-of-way has been reduced to final grade and cleared of all obstructions of any
kind consistent with the requirements set forth in Addendum A attached to this
Agreement; (c)at no cost to Company, all necessary easements and rights of way have
been executed, acknowledged and delivered to Company in a form acceptable to
Company; (d) customer has satisfied all the terms and conditions for service in
accordance with Company's applicable Tariff; and (e)customer has paid to Company
the full amount of the contribution in aid of construction as set forth in this
Agreement.
6. Title to and ownership of the Extension, including the main extension or service line,
pipes and appurtenances, connections thereto and extensions thereof and laterals off
of, and including the right to use, operate and maintain same, shall forever be and
remain exclusively and unconditionally vested in the Company. Developer
understands,acknowledges and agrees that Developer shall have no title to, interest in,
or ownership of the Extension including the main extension or service line, pipes and
appurtenances, connections thereto and extensions thereof and laterals off of the
Extension.
7. The decision to make new connections and provide new natural gas service to future
customers off of the Extension shall be at the sole discretion of Company, in
accordance with its applicable Tariff and the rules and regulations of the Commission
in effect at the time of such new connection or new natural gas service.
8. Further, if, at any time after the Effective Date of this Agreement, a moratorium on or
curtailment of new or additional natural gas service or connections is imposed upon
the Company's system, whether by the Company or governmental authority, the
Company shall have no obligation or liability whatsoever to Developer for such a
moratorium, or for not making any new connections for natural gas service, or for not
providing such natural gas service to new customers within the stated Refund
Eligibility Period, or to refund to Developer any amount of the contribution in aid of
construction made by Developer to Company for the cost of the Extension. Any such
moratorium period shall not serve to extend, or be the basis for Developer to assert
any extension of, the Refund Eligibility Period. There shall be no extension of the
Refund Eligibility Period.
9. Company and Developer acknowledge that there are no agreements or understandings,
written or oral, between the parties related to the Extension, including the main or
service line, other than as set forth in this Agreement, and that this Agreement
(including the attached addenda) contains the entire agreement between the parties
hereto. This Agreement may not be amended, altered, or modified except by written
amendment signed by both of the parties.
10. This Agreement shall be governed in accordance with the laws of the State of
Colorado, including, but not limited to, all applicable tariffs. In the event of a conflict
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DocuSign Envelope ID:3CA3688F-EE36-46E8-BE4C-8874ED2E5A0B
Source Gas
between this Agreement and any applicable laws, regulations or Tariff provisions,
such laws,regulations or Tariff provisions shall control.
11. The following are by this reference made a part of this Agreement.
Addendum A-Requirements for Providing Trench and Backfill
Addendum B -Scheduling Requirements
12. This Agreement will be for a term of three (3) years, commencing as of the Effective
Date. Within ninety (90) days after the expiration of this Agreement ("Claim
Submission Period"), Developer must submit to Company any outstanding claims of
Developer under this Agreement. Upon the expiration of the Claim Submission
Period, it is expressly understood and agreed to by Developer that Company shall
have no obligation whatsoever to make any refunds to Developer not requested prior
to,or during,the Claims Submission Period.
13. The Agreement shall be binding upon the parties hereto and their respective
successors and assigns; provided, however, that Developer shall not have the right to
assign this Agreement without the express prior written consent of Company, which
consent will not be unreasonably withheld.
14. In the event Company is required to initiate litigation to enforce the terms and
conditions of this Agreement,then Company shall have the right to recover from
Developer the Company's costs and expenses of such litigation,including reasonable
attorney fees.
15. Developer expressly acknowledges that it has been afforded an opportunity to have its
lawyer review and explain the terms of this Agreement.
Executed to be effective as of the Effective Date stated above.
CITY OF ASPEN SOURCEGAS DISTRIBUTION LLC
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By: By. —Be1AEB4D04D241B...
Name: �- =s - h�eu><tl tc.Q� Name:
Title: l Ida- qe( Title:
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Gas
ADDENDUM A
MINIMUM REQUIREMENTS FOR PROVIDING TRENCH AND BACKFILL
1. Trench depth for all mainlines(gas)will be between twenty four(24) inches and thirty six(36)
inches,with thirty(30) inches being the ideal depth. Note: This depth is from finish grade;
developer to insure final grade determination.
2. Trench location will be in utility easement(at a point most distant from road), or along county
right-of-way, and will be the developer's responsibility to insure proper location. Developer is
responsible for all county permits.
3. Clearances are 5 feet horizontally from underground electric,and 3 feet horizontally from all other
underground utilities. A crossing of other utilities or buried structures requires 1-foot vertical
separation,while maintaining minimum depth. All ditch crossings will be a minimum of 3 feet
below the bottom of the ditch.No gas main will be placed under a house, shed,or other enclosed
structure.
4. Gas line shading(fill directly touching gas line)will be done with native fill, '/z minus bedding or
sand that has no rocks or stones larger than ''/z"(by Hand)to cover the pipe for a depth of between
six(6)and twelve(12) inches,at which point the warning tape may be installed over the gas line.
5. Trench filling can be done at this point. Note: Filling must be completed within 48 hours of
energizing of gas line. Developer is responsible for trench settling,etc.
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Gas
ADDENDUM B
SCHEDULING REQUIREMENTS
PURPOSE: In order to be completely fair to all contractors and enable Company to comply with an
efficient schedule and continue to provide low cost installation of gas lines,the following policies will
be in effect.
SCHEDULING: At the time of contract signing(or as soon after the signing as possible)the
representative from Company and the Developer will schedule a day for work to begin on the main
gas line.
INSTALLATION: Company crews, or their designates, will show up on the scheduled day and
commence work.
SITE NOT READY: When Company crews or their designates show up on the scheduled day and the
site is not ready for Company to commence work, a charge equal to one crew day will be assessed plus
mobilization and de-mobilization charges and the entire job will need to be rescheduled.
EARLY NOTICE: Early notice to Company of the site not being ready(3 working day advance
notice)will eliminate the assessment of the trip charge but will require the Developer to go to the
bottom of the waiting list for rescheduling.
START DATE: The start date is: - .-U u 20/2- (e2e CelCv4
l'reschedule date:
2nd reschedule date:
3`d reschedule date:
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