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Home My WebLink AboutResolution - 6118 - Contract Of Sale- Plains Cooperative Oil Mill Inc.- Electric Distribution System - 12/10/1998Resolution No. 6118 Item No. 18 December 10, 1998 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 Contract of Sale with Plains Cooperative Oil Mill, Inc., for the purchase of a 12,470 volt electric distribution system, which agreement is attached hereto and which shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this loth day of December _ '1998. WINDY OTTOW, MAYOX A ST: KaythDarnell, City Secretary APPROVED AS TO CONTENT: eA A W. rAA' 41,w, Thomp on, Director of Electric Utilities APPROVED ASCO FORM: Assistant City DGV:ccdocs/PCOMcon.res September 29, 1998 CONTRACT OF SALE THE STATE OF TEXAS § COUNTY OF LUBBOCK § Resolutiou No. 6118 Item No. 18 December 10, 1998 THIS AGREEMENT is entered into by and between Plains Cooperative Oil Mill, Inc., (hereinafter called "PCOM"), a Texas corporation, and the City of Lubbock, Texas, a Texas home rule municipality (hereinafter called "City") doing business as Lubbock Power and Light (hereinafter called "LP&L"): WITNESSETH: WHEREAS, PCOM is the owner of certain unique items of personal property, to - wit: various electric transformers and electric distribution lines situated upon certain property owned by PCOM in Lubbock County, Texas, which property is further described in Exhibits A and B attached hereto and made a part hereof for all purposes; and WHEREAS, the LP&L desires to purchase said unique items of personal property described in Exhibits A and B hereto for use as a part of its electric generation and distribution system within the City of Lubbock; and WHEREAS, the City finds it to be in the best interest of the citizens of the City of Lubbock to acquire the unique items of personal property hereinafter described for LP&L from PCOM; and WHEREAS, PCOM desires to sell said unique items of personal property to LP&L and to provide LP&L with access to such property; and WHEREAS, both parties mutually agree that this sale will be in the best interest of both parties and that the bid laws of the State of Texas have no application because this agreement conveys an interest in real property and the personal property conveyed is unique because of its location and available from only one source: NOW THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS: 1. DESCRIPTION OF PROPERTY. PCOM, in consideration of the mutual agreements and covenants contained herein does hereby sell and transfer title to LP&L of all of the unique personal property located in Lubbock County, Texas, indicated on the listing attached hereto as Exhibit A and shown on the map attached hereto as Exhibit B. Said sale and transfer shall include the entire 12,470 volt electric distribution system at PCOM's 34th Street and Avenue A plant, which is further described by the legal description attached hereto as Exhibit C. 2. PURPOSE OF SALE. Transfer of these facilities from PCOM to LP&L would allow PCOM to more fully devote its energies to its core business of producing cotton seed and related products and allow PCOM to achieve a higher level of electric service reliability. In addition, this transfer would provide LP&L with a more secure long-term business position for its core business of producing and distributing electrical energy. 3. DUTIES OF LP&L. LP&L hereby agrees to undertake the following duties and obligations as part of the consideration flowing to PCOM pursuant to this agreement. a) LP&L will assume, at no cost to PCOM, ownership, maintenance, repair and operation of the facilities listed on Exhibit A and shown on Exhibit B. b) LP&L will provide 24-hour emergency service and repair to the facilities listed on Exhibit A and shown on Exhibit B. C) LP&L will provide all necessary additions, enhancements and expansions to the system as may be required to serve new PCOM loads. d) LP&L shall inspect the equipment listed in Exhibit A and shown on Exhibit B for PCB's or other hazardous materials and shall inform PCOM if any such materials are discovered to be contained in such equipment. e) LP&L shall be responsible for removing any trash, debris or other material or objects resulting from LP&L's construction, maintenance or repair activities which clutter or detract from the usefulness of said property to PCOM. 4. DUTIES OF PCOM. PCOM hereby agrees to undertake the following duties and obligations as part of the consideration flowing to LP&L pursuant to this agreement. a) PCOM will assist LP&L in developing a long range plan to eliminate all existing non-utility standard transformers from the PCOM system. b) PCOM will make all necessary revisions at their own expense to their low voltage secondary services as necessary to accommodate standard utility pad mount transformers. C) PCOM shall be responsible for the final disposal of any hazardous materials, including PCB's, which may be contained in any of the equipment listed on Exhibit A and shown on Exhibit B and LP&L shall not be required to accept ownership of such equipment. d) PCOM shall furnish LP&L with keys to any gates or other access to any secured areas sufficient to allow LP&L to perform its duties pursuant to this agreement. 2 5. RIGHT TO ENTER AND OPERATE EQUIPMENT. It is understood by the parties hereto that LP&L shall at any time following execution of this agreement have full rights of ingress and egress in, over, and on said lands owned by PCOM and known as the 34t` Street and Avenue A plant at all times of day necessary and incidental for the purpose of repair, maintenance and operation of the equipment that is the subject of this agreement together with easements for the duration of this agreement for all such purposes. In the event that it is necessary to install additional equipment to meet PCOM's future electric needs, PCOM shall provide access and easements suitable for the location of such additional equipment at no cost to LP&L. 6. AGREEMENT RUNNING WITH THE LAND. This agreement between the parties hereto shall be a condition and covenant running with the land described in Exhibit B and known as the 34h Street and Avenue A plant of PCOM and shall further constitute an equitable servitude thereon and shall bind PCOM and PCOM's successors in title to such land. Any further conveyance of the land described in Exhibit B hereto shall contain this covenant and equitable servitude. It is further agree by all parties hereto that this condition, covenant and equitable servitude shall terminate upon the expiration of this agreement according to its terms or at such time as the land described in Exhibit B hereto shall no longer be used for industrial purposes. 7. TERM. This agreement shall take effect upon the date of execution hereof by all parties and shall terminate upon the happening of any of the following described events. a. The City disposes of LP&L or abandons the electric generation and distribution business. b. PCOM or its successor ceases to use the property at 34th Street and Avenue A for industrial purposes. C. The parties hereto mutually agree to terminate this agreement. EXECUTED this 10 day of December , 1998. AT ST: Kaythi6 Damell, City Secretary PLAINS COOPERATIVE OIL MILL: AJ Nat-� WAYNE RTIN, PRESIDENT ATTEST: Secretary 3 APPR VED AS TO CONTENT: Paul Thompson, Director of Electric Utilities APPROVED AS TO FORM: 2 M ald G. Vandiver, First Assistant City Attorney ACKNOWLEDGEMENT THE STATE OF TEXAS COUNTY OF LUBBOCK BEFORE ME, the undersigned authority, on this day appeared Wayne Martin, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the instrument for the purposes and consideration expressed in the instrument. Given under my hand and seal of office on 11M.I.�, l�I gCIS SOP CO. S? LISA BUXTONNotary Public, state of Texas Notary Public in and for Lubbock County, Texas My Commission txpirss o2.2a•2000 y commission e i S. _i^' ACKNOWLEDGEMENT THE STATE OF TEXAS § COUNTY OF LUBBOCK § BEFORE ME, the undersigned authority, on this day appeared Windy Sitton, known to be to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the instrument for the purposes and consideration expressed in the instrument. =Pub11c,S= office oESTexasires Q. jj Notary Ablic in and fbr Lubbock County, Texas My commission expires: n EXHIBIT 'W Plains Cooperative Oil Mill 34th. & Ave. A Plant 'Electrical Equipment and Facilities to be Acquired by LP&L June 1, 1998 Quantity Item Description Unit Cost Total Cost 2 3000 KVA industrial type transformer $ 24,000.00 $ 48,000.00 3 2000 KVA Industrial type transformer $ 20,000.00 $ 60,000.00 3 1500 KVA Industrial type transformer $ 15,700.00 $ 47,100.00 8 1000 KVA Industrial type transformer $ 12,700.00 $ 101,600.00 1 1000 KVA Pad mount transformer $ 12,700.00 $ 12,700.00 2 750 KVA Pad mount transformer $ 11,100.00 $ 22,200.00 6 500 KVA Pad mount transformer $ 6,950.00 $ 41,700.00 6 300 KVA Pad mount transformer $ 5,920.00 $ 35,520.00 1 150 KVA Pad mount transformer $ 4,600.00 $ 4,600.00 1 1800 WAR capacitor banks $ 18,000.00 $ 18,000.00 4 1200 WAR capacitor banks $ 12,000.00 $ 48,000.00 1 600/6001600/600 vacuum switch $ 6,000.00 $ 6,000.00 4 600/60016001200 vacuum switch $ 6,000.00 $ 24,000.00 11 600/600/200/200 vacuum switch $ 6,000.00 $ 66,000.00 8 600/600/200 vacuum switch $ 6,000.00 $ 48,000.00 26 8 ft. x 10 ft. precast manhole $ 5,000.00 $ 130,000.00 9 6 ft. x 6 ft. pulibox $ '3,000.00 $ 27,000.00 6400 3 phase feeder cables, ducts and terminations $ 75.00 $ 480,000.00 5500 3.phase branch cables, ducts and terminations $ 30.00 $ 165,000.00 Total replacement cost $ 1,385,420.00 Less depreciation -12 yrs. (Est. 30 yr. Life) $ (554,168.00) Current estimated value $ 831,252.00 Note: This estimate includes spare switches, capacitors, and parts currently in PCOM maintenance inventory EXHIBIT V Legal Description Of Plains Cooperative Oil Mill Property at 34"'. Street and Ave. A. Lubbock, Texas Lots 1-A, 2,3 and 4 of the Plains Cooperative Oil Mill Addition to the City of Lubbock, Lubbock County, Texas. COOP 15-1 25CA NO D z m D Cl 1 lOP 3-1 MH 1 I 1 1 I -LABMH 1 / 4■ 2 / 2 MH MH MH MH MH 4/0 COPPER 1 I I 1 ♦ 50 KVA 50 KVA #9 21EA ♦ 50 KVA NC P ♦ 25 KVA RF$$ ♦ 25 KVA% ♦ 25 KVA 7OO k VAO � rVh' A .. ^✓/ B�gCk vA�`a� ,,` Zo kV4 2NAA 1g0 p y0 s A DUMP kV4 I C M1�� N$E 4 H ♦ 15 KVA ♦ 15 KVA ♦ 15 KVA / 96 300 KVA �� ..� / 0 % SR DRl r A O KV A C xr2 / MH at c / 49 � � �r 30TH ST.r3 SLATDN 15-7 30AA j '416 43y NO / / a / Ig 7 0 15 KVA I..Ai+<C `B j D ClMH ■ MA /f MH 22 NO/ NO Br_C __�________ -kVq B DUMP 50 1 NO B / ■ 21 BL------- �1cc---«---------•--- #3 �RJ_ ■ \ ■ MH 2000 1200 .--"�---___"-_Aar`C---�--- A �C ----� 23 r--•------«----- �37 kVA 2-500 MCM PER 10 0 KV ♦ K0 0 j I p C +` 300 Z j T Z11 �/ KVA Q f K 31 AA LLJ H LER R M y.l 120R Al UPPL My -'�.� 1 31ST ST. No MH loo0 1 ROOM 3° i 25 KVA 1 I • MH g4 MH �� 1 I T 000 B■ C_ _«�y D*�■ 24 j 32 P4RA(`�•� y i 1 L _y__i/ t tiA 4 C I SEC 4/�� I 1 1 Ai I B1 I O CO. L .� ��.. y I R 1 � � MH I i SOLVENTAN 1 EXPANDER 31EA 52 ND1 #11 I PLANT A i■ 33 ROOM NO ■ A I I 1 J 1 a T 64 FJ_..--a 4tj � 1200 KVAR C4 B A. T 1500 KVA • • A ■ MH 500 C 34 KVA L •-�I�._ MH ■ I C A MH e �1 C ID pU#�P DUMP #6—�� DUMP #5/j B1 36 � l ■ MH a C� Btu MH T 500 YYiill IC� ■ 3v �.. M D o�F COOP 33611 AAC RAILROAD UNLOADING aFloll « ■ MH 53 RAILCAR WASH 300 KVA MH , 54 1 f COOP 15-4 I CO-OP tI ISUBSTAT I ol COOP 15-2 ♦ 100 KVA ♦ 100 KVA ♦ 100 KVA DUMP #4 � 500 KVA 1000 KVA f B A V C • D I",■ 1 L«J MH I 55 t I 1 I 50 KVA 25 KVA ♦ 1 • 1 r � I O y � 1 (CONSTRUCTION D 8 ENGINEERING( OFFICE 50o Kva LJ LJ �oopc��oec� Oo0 �00� i LUBBOCK POWER & LIGHT PLAINS COOPERATIVE OIL MILL OWNERSHIP OF FACILITIES TO ASSUMED BY LF&L DATE 5-2B-9B SCALE I"=200' EXHIBIT "Bo i LEGEND TRANSFORMER PRESENTLY OWNED BY LP8L TRANSFORMER ASSUMED BY LP8L El MANHOLE 8 PULLBOX ■ OWNERSHIP ASSUMED BY LP8L VACUUM SWITCH OWNERSHIP ASSUMED BY LP8L + PAD MOUNTED CAPACITORS ASSUMED BY LP8L 0OWNERSHIP OVERHEAD OWNED BY -P&L UNDERGROUND PRIMARY _�.. OWNERSHIP ASSUMED BY LP8L COOP 15-2