NEW METER STATION - LAKE MOON
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Florida Gas Transmission Company
Peter E. VVeidler
Vice President
Marketing
P. O. Box 11 BB
Houston, Texas 77251-11 BB
(713) 853-7651
June 9, 1994
Mr. Charles Warrington, Jr.
Gas Managing Director and Executive Officer
City of Clearwater
401 North Myrtle
Clearwater, FL 34615
Re: Construction of a new Meter Station - Lake Moon
Dear Chuck:
The City of Clearwater ("Clearwater") has requested that
Florida Gas Transmission Company ("FGT") construct a new meter
station located near M.P. 127.7 on FGT's proposed 30-inch pipeline
to be located in Pasco County, also described as the West Leg in
FGT's Phase III Expansion certificate. The Attachment sets forth
the description of the facilities that require reimbursement
(" Facili ties") and the estimated cost of the Facilities.
Clearwater and FGT agree as follows with respect to the
construction, operation and reimbursement of the Facilities.
The parties agree that the following condition subsequent must
occur prior to FGT incurring costs and expenses under this
Agreement. Clearwater shall notify FGT in writing, on or before
six (6) months following execution of this Agreement by Clearwater,
of its desire for FGT to proceed with all steps necessary to
construct the Facilities and as authorized under this Agreement.
If Clearwater does not notify FGT within such 6-month period, then
this Agreement shall automatically terminate without the need for
either party to take further action.
1~ FGT or its agent shall construct, operate and own the
Facilities listed in the Attachment.
2) FGT shall obtain all permits, licenses, authorizations, or
certificates necessary for the construction and operation of
the Facilities. Clearwater agrees to provide any information
needed in preparation of any applications for such and agrees
to support FGT in its efforts to obtain any necessary
authorizations.
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Clearwater shall indemnify and hold FGT harmless from any and
all costs, expenses, suits, actions and claims, which shall
include attorneys' fees, arising from the construction,
installation, operation and maintenance of the Facilities,
provided, however, that Clearwater shall not be responsible or
liable for any negligence or gross negligence or willful
misconduct attributable to FGT or any of its agents,
including, but not limited to, contractors, subcontractors,
and the like. It is understood and agreed that nothing in
this Agreement shall constitute a waiver by Clearwater of its
rights under Florida Statutes, including Section 768.28
thereof.
3) Clearwater agrees to reimburse FGT for all costs and expenses
incurred directly and indirectly relating to construction of
the Facilities including but not limited to, the cost of
permits, materials, installation, surveying, inspection, x-
ray, environmental studies, regulatory filings, attorneys'
fees, and other expenses or overhead that may be required
("Actual Cost"). To the extent such reimbursement qualifies
as a contribution in aid of construction under the Tax Reform
Act of 1986, Clearwater agrees to reimburse FGT for income
taxes incurred by FGT. The estimated total cost, inclusive of
tax impact, of the Facilities is $250,000 as detailed in the
Attachment and incorporated herein ("Estimated Cost").
Notwithstanding the Estimated Cost, Clearwater agrees to pay
the Actual Cost even if such amounts exceed the Estimated
Cost.
4) Prior to the date construction is scheduled to commence, FGT
shall notify Clearwater of the construction schedule and shall
invoice Clearwater for the Estimated Cost. Upon completion of
construction, FGT shall refund Clearwater if the Actual Cost
is less than the Estimated Cost or invoice Clearwater for
addi tional amounts if the Actual Cost is greater than the
Estimated Cost. Clearwater shall pay FGT within fifteen (15)
days of receipt of any invoice.
Construction shall be deemed completed when all reports are
submitted and all work orders are closed. Adequate
documentation in the form of invoices, work orders and
receipts for all costs associated with the Facilities shall be
available to Clearwater for inspection at FGT I s office in
Houston, Texas, upon reasonable prior notice during business
hours; provided, however, that if Clearwater does not submit
a written claim for adjustment or correction within one (1)
year following the date construction of the Facilities was
completed, work orders, receipts and payments shall be deemed
final and conclusively correct.
5) Should Clearwater fail to pay part or all of the amount of any
invoice rendered by FGT, interest shall accrue from the due
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date of such invoice until the date of payment received by FGT
at the lower of the effective prime rate charged by Citibank
of New York plus two percent or the maximum allowable interest
rate permitted by applicable law, calculated on a compounded
monthly basis.
6) Clearwater agrees to grant to FGT any and all suitable rights-
of-way and easements necessary and/or incidental for the
installation, maintenance, operation and removal of the
Facilities and appurtenances deemed essential or desirable by
FGT for the delivery of gas to Clearwater.
Clearwater agrees to design and operate its facilities to
safely operate at a pressure up to 250 psig.
Clearwater will install any and all equipment, including
compression and regulators, as needed to protect its
facilities downstream of FGT's Facilities.
7) THIS AGREEMENT SHALL BE INTERPRETED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS EXCLUDING ANY CONFLICT OF LAW RULES
THAT MAY REQUIRE THE APPLICATION OF ANOTHER JURISDICTION.
If this Agreement correctly states our understanding, please
indicate your concurrence by signing in the space provided below on
both originals and returning both originals to the undersigned,
whereupon a fully-executed original will be returned to you for
your records.
rfLtZJJ if V
PETER E. WEIDLER t ~
Vice President, Marketing
Agreed To And Accepted This
10th Day of June , 1994.
CITY OF CLEARWATER
By: El~~~Ptula
Ti tle: City Manager
Attachment
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Attachment to
Construction and Reimbursement Agreement
Dated June 9, 1994
Between the City of Clearwater
and Florida Gas Transmission Company
ESTIMATED COST
City of Clearwater
Lake Moon Meter Station
proiect Details:
Construct a new meter station located near
M.P. 127.7 on the proposed Phase III 30-inch
pipe West Leg in Pasco County. Delivery
capacity is 750 MMBtu/Hr at a delivery
pressure of 250 psig.
Estimated Cost:
Meter Station
Sub-Total
$ 78,147
3,517
6,252
4,000
2,000
4,000
3,500
50,000
10,000
3,000
1,000
6,000
4,000
2,448
4,718
9.363
$202,049
58.055
$250.000
Material
Freight
Taxes - Material
Engineering
ENVR Cultural Resources
District Labor
Right of Way
Contractor
Land Acquisition Costs
CSUP - Survey
CSUP - Radiography
CSUP - Inspection
Other
FGT Overhead
As - Built Drawings
Contingency
Tax Gross-Up
Total
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RESOLUTION NO. 94-39
A RESOLUTION OF THE CITY OF CLEARWATER, FLORIDA,
ESTABLISHING ITS INTENT TO REIMBURSE FLORIDA GAS
TRANSMISSION PROJECT COSTS INCURRED WHILE BUILDING A NEW
NATURAL GAS GATE STATION IN PASCO COUNTY; AUTHORIZING
THE CITY MANAGER TO SIGN THE LETTER OF REIMBURSEMENT;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Clearwater, Florida has
determined that the need exists to construct a new natural gas gate station in
Pasco County and;
WHEREAS, Florida Gas Transmission (FGT) is willing to build the station,
at a cost to the City of Clearwater estimated at $250,000, and;
WHEREAS, the FGT requires a "Letter of Reimbursement" to be signed by the
City of Clearwater and FGT, in order to file a "Notice of Intent" to build the
new gate station with the Federal Energy Regulatory Commission, and;
WHEREAS, time is of the essence in filing this "Notice of Intent"; now,
therefore,
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CLEARWATER,
FLORIDA:
Section 1.
The City Commission authorizes the City Manager to execute
the letter of reimbursement between the City of Clearwater and FGT.
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 19th
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day of
May
, 1994.
Attest:
"III' , llljlJ
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ita Garvey
Mayor-Commissioner
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TO:
FROM:
COPIES:
SUBJECT:
DATE:
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J lJ L 0 5 1994
CITy CLERK DEPT.
CLEARWA TER GAS SYSTEM
Interoffice Correspondence Sheet
Cyndie Goudeau, City Clerk )!~ )~
J. Terry Neenan, Asst. Director CGS/Supply ~perations
File
NEW METER STATION - lAKE MOON
July 1, 1994
For your records, attached please find one (1) fully executed reimbursement
agreement between the City of Clearwater and Florida Gas Transmission Company
(FGT) relative to the construction of a new lake Moon meter station.
If you have any questions regarding the above, please contact me.
TN/sh
Attachment
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Florida Gas Transmission Company
P. O. Box 945100 Maitland, Florida 32794-5100 (407) 875-5800
June 27, 1994
CERTIFIED MAIL
Mr. Charles Warrington, Jr.
Gas Managing Director and Executive Officer
City of Clearwater
401 North Myrtle
Clearwater, FL 34615
Re: Construction of a New Meter Station - Lake Moon
Dear Chuck:
Enclosed for your files is a fully executed reimbursement
agreement between the City of Clearwater and Florida Gas
Transmission Company (FGT) relative to the construction of a new
Lake Moon meter station.
Please note in the second paragraph, the word "Shipper" has
been replaced with "Clearwater" per mutual consent.
If you have any questions, please give me a call.
Sincerely,
~.
DAN SON
Ac aunt Director
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Enclosure
An ENRON/58.AT Affiliate