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HomeMy WebLinkAboutResolution - 2001-R0284 - Steam Transportation Agreement With Texas Tech University - 07/12/2001Resolution No. 2001-RO284 July 12, 2001 Item No. 32 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Steam Transportation Agreement for steam transportation to the Lubbock Coliseum by and between the City of Lubbock, Texas, and Texas Tech University, attached hereto, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 12th day of July 2001. /up, mrv�oWn, 1eww".1--om ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: i Vicki Key, Civic C n r anager APPROVED AS TO FORM: 'MatthVW�WcWade, Assistant City Attorney mw/ccdocs/SteamTrans.res July 3, 2001 Resolution No. 2001-R 0284 July 12, 2001 Item No. 32 THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LUBBOCK § STEAM TRANSPORTATION AGREEMENT This Agreement is made and entered into this the 12th day of July , 2001 by and between Texas Tech University, an institution of higher education of the State of Texas (University) and the City of Lubbock, a home rule municipal corporation (City), collectively (Parties), to provide for the transportation of steam by University to the Lubbock Municipal Auditorium -Coliseum (Coliseum), a city owned and operated facility. WHEREAS, the University owns and operates Central Heating and Cooling Plant 1 (CHACPI) located on the University campus, which provides steam and chill water for the University's heating and cooling purposes, and; WHEREAS, Lubbock Power and Light (LP&L), a city owned and operated utility company, produces electricity and steam at the Brandon Station co -generation plant located on the University campus, and; WHEREAS, the Parties have previously entered into the following energy related agreements: A. On February 25, 1988 the Parties entered into an integrated Energy Agreement consisting of (i) a Construction Agreement to provide for the construction of the Brandon Station co -generation plant; (ii) a Lease Agreement providing for the location of the co -generation plant on the University campus, and; (iii) a Utility and Steam Purchase City -Tech Coliseum Steam Agreement 2001 Pagel of 8 Agreement providing for the production of electricity and steam by LP&L and the purchase of electricity and steam by the University. B. On March 9, 1994, the Parties entered into an Interlocal Agreement providing for the City's construction of a tunnel from the Coliseum to the University's underground utility 1 - tunnel system to connect the University's chill water system to the IColiseum. C. On February 23, 1997, the Parties entered into an Addendum to the Energy Agreement amending various sections of the Construction Agreement, Lease Agreement and Utility and Steam Purchase Agreement. D. On September 28, 2000, in anticipation of this Agreement, the Parties entered into a Memorandum of Understanding whereby the University granted City permission to commence construction of the infrastructure to receive and monitor the transportation of steam from CHACP 1 to the Coliseum, and; WHEREAS, this Steam Transportation Agreement shall set forth the terms and conditions providing for the construction of the infrastructure by City and transportation of steam by University from CHACPI to the Coliseum. _ WITNESSETH: That for and in consideration of the mutual benefit to the Parties hereto and the consideration expressed herein it is agreed as follows: City -Tech Coliseum Steam Agreement 2001 Page 2 of 8 I . Steam Transportation: The University agrees to transport steam produced by the LP&L Brandon Station co -generation plant, located on the University campus, to the Coliseum for the benefit and use by the City at the Coliseum. 2. Consideration: City shall pay University One Thousand Dollars ($1,000.00) for the term of this Agreement for the benefit and use of said steam transportation. The first payment will be due on the first day the University delivers and the City accepts steam at the Coliseum transported by the University under this Agreement. Thereafter, the City shall pay the steam transportation fee on or before September 1 of each year for the term of this Agreement, beginning on the first succeeding year following the initial delivery of steam by the University to the Coliseum. The transportation of this steam will be escalated by a factor of 1.05 each year following the initial year of the term of this Agreement to compensate for increased costs incurred by the University. 3. Tenn: The initial term of this Agreement shall be for a period of twenty (20) years, provided the City continues to own and operate the Coliseum for the duration of the agreement and the University continues to purchase steam from the co -generation plant. The Parties may renew, extend or modify this Agreement on or before the expiration of the initial term hereof. For purposes of this Agreement, the Contract Year shall be from September 1 to August 31. City -Tech Coliseum Steam Agreement 2001 Page 3 of 8 No Text 4. Measuring and Metering University and City agree they will coordinate the method and measuring for all steam transported by the University to the Coliseum and the City will construct the infrastructure, at the City's sole expense, necessary to properly receive and meter the steam transported by the University. It is specifically agreed that University will not be charged for the steam transported to the Coliseum. 5. ExistingAgreement and Increased Steam Production: This Agreement, where necessary, shall amend the existing Energy Agreement between the Parties. However, the parties specifically agree that the volume of steam presently produced for the University shall not decrease due to this Agreement and, if necessary, the City shall increase the production of steam in order to continue to meet the obligations of the City under their Energy Agreement with the University and meet the steam requirements necessary to heat the Coliseum. 6. Construction Information: The University will provide City the information in its possession requested by the City necessary to construct the appropriate infrastructure to properly receive, meter and utilize the steam transported by the University. 7. Construction Cost: All costs associated with the construction necessary to this Agreement shall be borne solely by City and City shall be solely responsible for all construction and the actions of its officers, employees and agents associated therewith. City -Tech Coliseum Steam Agreement 2001 Page 4 of 8 8. Review and Approval of Plan: University shall have the opportunity to review and approve the construction plans and drawing prior to the commencement of construction. The City will coordinate the work to be performed with the University's representative to insure minimal disruption of the Campus activities during the construction necessary to prepare to transport steam under this Agreement. The City will insure that all construction, including the type and location of all metering devices, meets the University's standards and is approved in advance by the University. 9. Steam Production: The production of steam transported by the University shall be the sole responsibility of City and City shall hold University harmless for any interruption of steam transportation service to the Coliseum. The University will use all reasonable means to ensure that the supply of steam is not interrupted to the Coliseum without prior notice to and agreement by the City. Should the Coliseum require steam during times that the City is not able to provide said steam, the University will use its best efforts to provide steam as available from its sources. Any steam provided by the University to the Coliseum at times that LP&L is unable to provide said steam will be paid for at a price that is equal to the University's total cost to produce such steam at that point in time. Such steam may be paid for in kind by product from Brandon Station. If this in kind method is elected, the steam charge from Brandon Station will be reduced by th.Ldollar cost equal to the University's total cost to produce the steam delivered to the Coliseum. City -Tech Coliseum Steam Agreement 2001 Page 5 of 8 10. Repair and Maintenance: The Parties agree that the City shall have the right to effectuate repairs as needed to the portion of the steam transportation system to the Coliseum that is owned by the City. The University will in good faith maintain its portion of the transportation system. Neither party will effectuate repairs to that portion of the steam transportation system that is owned by the other party without prior approval of the owner. 11. Approvals: The City shall be responsible for obtaining all permits, approvals and licenses, if any, from all state and federal agencies or commissions having jurisdiction over this project. 12. Assignments: This Agreement may not be assigned without the prior written consent of the Parties. 13. No Partnership or Pledge of Credit: It is agreed and understood this Agreement shall not create any species of partnership, joint venture or other entity between them. The rights of the Parties are to be governed strictly by this Agreement. Nothing herein shall be construed as a loan or pledge of credit. 14. Liability: It is agreed and understood that University shall not be liable or responsible for and shall be saved and held harmless by the City, to the extent permitted by law, from and against any and all claims and damages of whatever kind or nature arising out of or attributed directly or indirectly to the construction, operation or performance of the City under this Agreement. City -Tech Coliseum Steam Agreement 2001 Page 6 of 8 It is further agreed and understood that the City shall not be liable or responsible for and shall be saved and held harmless by University, to the extent permitted by law, from and against any and all claims and damages of whatever kind or nature arising out of or attributed directly or indirectly to the construction, operation or performance of University under this Agreement. 15. Independent Evaluation: The City expressly represents they have made their independent evaluation concerning all matters covered by this Agreement and the City's decision to enter into this Agreement is based upon their independent evaluation and not upon reliance of any information provided by University. 16. Entire Agreement: The provisions contained in this writing shall constitute the entire agreement between the Parties. 17. Applicable Law: The laws of the State of Texas shall govern the performance and enforcement of this Agreement and the venue for any legal proceeding shall be in Lubbock County, Texas. This Agreement shall be binding on the Parties and their successors. 18. Execution of Agreement: Each of the undersigned hereby represents and warrants that it is authorized to execute this Agreement on behalf of their respective Parties. City -Tech Coliseum Steam Agreement 2001 Page 7 of 8 Made and entered into the date first written above. City of Lubbock 6114�1 BY: Windy Sitton, 44ayor ATTEST: Rebecca Garza City Secretary APPROVED AS TO CONTENT: Vicki Key Civic Center Mana APPROVED AS TO FORM: Matthew L. Wade Assistant City Attorney Texas Tech University David Schj*idly, President APPROVED AS TO CONTENT: -Z&p/ Gelie West Vice President for Operations APPROVED AS TO FORM: Q-1 Pat Campbell Vice Chancelloie and General Counsel City -Tech Coliseum Steam Agreement 2001 Page 8 of 8