HomeMy WebLinkAboutResolution - 3283 - Agreement - CDTL Inc, & GBP - Reimbursment, Lubbock CDT Plant Demolition Costs - 01/11/1990Resol.0 tion # 3283
January 11, 1990
Item #17
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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 an Agreement by
and between the City of Lubbock and Carbon Dioxide Technology Liquidation,
Inc., and the George R. Brown Partnership in connection with the demolition
of the Lubbock Carbon Dioxide Technology Plant, which Agreement is attached
herewith and 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 11th day of
notte Boyd, City SeErbtary
APPROVED AS TO CONTENT:
Carroll McDonald, Assistant City
Manager for Utilities
ED AS TO FORM:
Donald G. Vandiver, First Assistant
City Attorney
January 1990.
B. C. McMINN, MAYOR
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NON -WAIVER AGREEMENT
Resolution # 3283
January 11,1990
This Non Waiver Agreement is entered into by and between
the City of Lubbock ("the City"), CDT Liquidation, Inc.
("CDT") formerly known as Carbon Dioxide Technology Corpora-
tion and the George R. Brown Partnership in connection with
CDT's payment of $96,900.00 to the City to cover the costs
incurred by the City in removing certain equipment and
fixtures from the carbon dioxide plant which ceased operation
January 11, 1984, pursuant to an August 13, 1981 lease
agreement between the City and CDT.
WHEREAS, pursuant to the August 13, 1981 lease agreement,
CDT was required to remove from City property within one year
after cessation of operations the components of a carbon diox-
ide plant constructed on the leased premises; and
WHEREAS, the City of Lubbock granted CDT a one-year time
extension for demolition on January 10, 1985, at the request
of CDT and an additional eighteen (18) month time extension
for demolition on January 26, 1986, also at the request of
CDT; and
WHEREAS, certain equipment and fixtures located at the
carbon dioxide plant were sold to Monarch Pipeline Company by
CDT on February 11, 1986, an agreement to which the City was
nota party, under the condition that said equipment and
fixtures would be removed from the leased premises by a
certain date; and
WHEREAS, Monarch Pipeline Company has failed and refused
to remove the equipment within the time period required by its
agreement with CDT and the George R. Brown Partnership; and
WHEREAS, the City has made demand upon CDT for payment of
the costs incurred in removing the equipment which CDT was
required to remove from the premises pursuant to that certain
August 13, 1981 lease agreement between the City and CDT and
the George R. Brown Partnership; and
WHEREAS, CDT and the George R. Brown Partnership have
made demand upon Monarch Pipeline Company for payment of the
costs incurred in removing the equipment which Monarch was
required to remove from the premises pursuant to that certain
February 11, 1986 contract between Monarch Pipeline Company,
CDT and the George R. Brown Partnership; and
WHEREAS, Monarch Pipeline Company has alleged that the
City prevented it from performing its obligations under the
February 11, 1986 contract and has further alleged that it is
therefore not liable for any damages resulting from its fail-
ure to remove the equipment and fixtures as required by the
contract; and
WHEREAS, the City contends that it was the responsibility
of CDT and the George R. Brown Partnership to have restored
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the property to its original condition pursuant to the August
31, 1981, lease agreement; and
WHEREAS, the City suffered additional losses and damages
to other City property in the amount of approximately
$47,155.00 during the partial demolition attempt by Monarch
Pipeline Company, which amount is specifically not subject to
this agreement and any right thereto is not waived by the City
hereby; and
WHEREAS, the City, CDT and George R. Brown Partnership
wish to avoid litigation on the issue of removal of the
remaining fixtures and equipment by the City if possible, and
CDT is willing to make payment to the City for the cost of
removing the equipment and fixtures so long as they waive no
present or future defenses or rights, if any, to obtain
reimbursement of said payment; and
WHEREAS, the City agrees that said payment shall be full
payment for the cost of final demolition of said carbon diox-
ide plant, but the City expressly does not hereby waive its
right to seek reimbursement through litigation if necessary to
recover the aforementioned damages and losses incurred during
the initial demolition attempt by Monarch Pipeline Company.
IT IS THEREFORE AGREED that the payment by CDT of
$96,900.00 to the City to reimburse the City for payment of
the costs of removing the equipment and fixtures pursuant to
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the August 13, 1981 lease agreement with the City if accepted
by the City does not and shall not constitute any waiver by
the City, except as to the cost of final demolition only, or
by CDT or the George R. Brown Partnership of any present or
future defenses or rights, if any, to seek and obtain
reimbursement of said funds from the City, CDT or the George
R. Brown Partnership.
IT IS FURTHER AGREED that both parties have reserved all
rights to litigate this matter or any other matters arising
from said dispute.
Each party to this agreement expressly represents and
warrants that it has read this agreement and that it under-
stands and agrees to each provision herein. This document may
be executed in multiple duplicate originals.
This agreement shall be construed under the laws of the
State of Texas and venue over any dispute arising under this
agreement shall be in Lubbock County, Texas.
Payment by CDT and the George R. Brown Partnership of
$96,900.00 shall be made to the City within sixty (60) days
after the date of execution of this Agreement. Failure to
make such payment shall render this Agreement null and void.
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This Agreement executed this 11th day of January ,
19h.
CITY OF LUBBOCK
BY: f
. C. MCMI141f, MAYOR
,_.AT T:
Rane to Boyd, City !Te6llltary
AP 0VED AS TO CONTENT:
t- !�-- lae��
Carroll McDonb.1d, A istant
City Manager for Utilities
APPROVED AS TO FORM:
D ald G. Vandiver, Firs
Assistant City Attorney
CDT UI TION, IN .
BY: )& --t
PR19SMENT
ATTES .
Secretary
GEORGE R. BROWN PARTNERSHIP
BY:�Q
PARTNER
ATTEST:
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� T Ma%4%1)Ctr
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