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HomeMy WebLinkAboutResolution - 2010-R0437 - Settlement Agreement For Relocation Costs With Centurion Pipeline, L.P. - 09/16/2010Resolution No. 2010-RO437 September 16, 2010 Item No. 5.21 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, a Settlement Agreement for the costs of relocating an 8" petroleum pipeline to accommodate 2010 expansion of runway 08126 of the Lubbock Preston Smith International Airport, by and between the City of Lubbock and Centurion Pipeline, L.P., Texas, and related documents. Said Settlement Agreement is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on September 16, 2010 TOM MARTIN, MAYOR ATTEST: Retie ca Garza. City Secretary(3 APPROVED AS TO CONTENT: Jarpes Loomis, Director of Aviation APPROVED AS TO FORM: Chad Weaver, Assistant City Attorney vw: ccdocs/RES. Settlement Agreement -Centurion August 26, 2010 Resolution No. 2010—RO437 SETTLEMENT AGREEMENT CONCERNING COSTS OF RELOCATING CENTURION PIPELINE, L.P.'S 8 -INCH PETROLEUM PIPELINE TO ACCOMMODATE 2010 EXPANSION OF RUNWAY 08/26 OF THE LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK The City of Lubbock (the "City") and Centurion Pipeline, L.P. ("Centurion") by this written agreement (the "Agreement") do hereby settle their dispute concerning which of them is responsible for paying the costs, expenses and damages associated with or related to relocating, in the summer of 2010, Centurion's Post to Monroe 8" petroleum pipeline (the "Pipeline") to accommodate the City's expansion of Runway 08/26 of the Lubbock Preston Smith International Airport, including such costs, expenses and damages incurred prior to summer of 2010 ("Summer 2010 Relocation Costs"). The City and Centurion make the following representations and covenants and agree to the following terms as part of this Agreement: 1. Centurion maintains that at the time the City requested that Centurion relocate the Pipeline to accommodate the runway expansion, Centurion possessed a protected easement across property upon which the runway was to be expanded, and further that the easement entitles Centurion to eminent domain compensation for the Summer 2010 Relocation Costs.. The City maintains that Centurion did not possess a protected easement across the property at issue and that Centurion is responsible for paying the Summer 2010 Relocation Costs. 2. Neither the City nor Centurion admits liability for the relocation costs, but the City and Centurion have nevertheless agreed to settle their dispute to avoid the costs of litigation. The City has, in exchange for a full release of all Centurion's claims for the Summer 2010 Relocation Costs, agreed to pay Centurion Two Hundred Fifty One Thousand Five Hundred Fifty Nine Dollars and Fifty Cents ($251,559.50) (the "Compensation"). The Compensation is 50 percent of the currently estimated total cost of relocating the Pipeline, $503,119, the majority of which has already been incurred by Centurion. In exchange for the Compensation, Centurion agrees to assume responsibility for 50 percent of the currently estimated Summer 2010 Relocation Costs as well as any variance between the currently estimated relocation costs and the actual relocation costs. Centurion agrees that the Compensation is all that the City will ever pay to Centurion for the Summer 2010 Relocation Costs whether same are currently asserted or could have been asserted by Centurion, including but not limited to costs, expenses or damages arising from any claim for inverse condemnation, a taking, or other like cause of action. 4. The City and Centurion acknowledge that this Agreement applies only to Centurion's claims for the Summer 2010 Relocation Costs, subject to Paragraph 3, above. 5. The duties and responsibilities arising from any future relocation of the Pipeline, including responsibility for future relocation costs, will be governed by Texas law, the written Pipeline Right -Of -Way Agreement agreed to by the City and Centurion in May 2010, and any formal modification of the Pipeline Right -Of -Way Agreement that is agreed to in writing by the City and Centurion. The City and Centurion agree that this Agreement does not modify or in any way affect the Pipeline Right -Of -Way Agreement. 6. Centurion agrees that the City has until November 1, 2010 to pay the Compensation to Centurion. 7. The City and Centurion further agree that: a. before executing this Agreement, the City and Centurion were fully informed of the terms, contents, conditions, and effect of this Agreement; 85719727.1 1 /3 b. no promise or representation of any kind related to the costs of relocating the Pipeline in the summer of 2010 has been made by the City or Centurion, or by anyone acting for them, except as is expressly stated in this Agreement; c. the City and Centurion have relied solely on their own judgment and the advice of their counsel in executing this Agreement; and d. the City and Centurion understand that this Agreement is a full, complete, and final release of all claims related to the Summer 2010 Relocation Costs. 8. This Agreement was drafted mutually and is the product of negotiation and compromise in which each side was represented by counsel. The City agrees that there should be no presumption against the drafter. 9. This Agreement may be executed in several counterparts, including facsimile copies of this Agreement, each of which shall be deemed an original and all of which shall be deemed an original, and all of which together shall constitute one and the same instrument. 10. City and Centurion acknowledge that each has the authority to bind their respective party to the Agreement. EXECUTED as of and to be effective on September 16 , 2010. CITY OF LUBBOCK By:f*./'� TOM MARTIN, MAYOR ATTEST: Rebecch Garza, City Secretary OVED AS TO CONTENT: Jarr� s Loomis, Director of Aviation APP V AS ORM: Chad Weaver, Assistant City Attorney CENTURION PIPELINE L.P. By: CENT RION PIPELINE GP, INC., G neral Partner By: Name: William C. Boyer Title: President 85719727.1 2 a ACKNOWLEDGMENTS THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, a Notary Public in and for said County, Texas, on this day personally appeared TOM MARTIN, known to me to be the person whose name is subscribed to the foregoing instrument and who acknowledged to me that he executed the same in the capacity therein stated and for the purpose and consideration therein expressed. JSEAQ— y ELISA SANCHEZ Notary Public, Stets of TOM My Commism E) pyres 11.07.2011 THE STATE OF TEXAS COUNTY OFA Vla-r'ri S I pll�� �� - Notary Public in and for the State exas This instrument was acknowledged before me on A_ E,* 3C, 2010, by William C. Boyer, President of CENTURION PIPELINE GP, INC., a Delawdid corporation, as General Partner of CENTURION PIPELINE, L.P., a Delaware limited partnership, on behalf of CENTURION PIPELINE LP. (SEAL) Not Pu lic, n and fck the State of Texas 85719727.1 3/3