BP Pipeline Utility Relocation Reimbursement Agreement_Phase 1 SW Arterial Project Copyright 2014
City of Dubuque Consent Items # 25.
ITEM TITLE: BP Pipeline Utility Relocation Reimbursement Agreement
Phase I - SW Arterial Project
SUMMARY: City Manager recommending approval for the City Manager
to execute a Phase 1 Design Utility Relocation
Reimbursement Agreement with BP Pipelines (North
America) Inc. for the relocation of a petroleum distribution
pipeline impacted by the Southwest Arterial and the future
East Grading Project.
RESOLUTION Approving a Phase I Design Utility
Relocation Reimbursement Agreement with BP Pipelines
(North America) Inc. for the Relocation of a Petroleum
Distribution Pipeline Associated with the East Grading
Project and the Continued Development and Advancement
of the Southwest Arterial Project
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
BP Pipeline Utility Relocation Reimbursement City Manager Memo
Agreement-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Draft Agreement Supporting Documentation
THE CITY OF Dubuque
DUB E i"
Masterpiece on the Mississippi 2007.2012.2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Southwest Arterial Project
BP Pipeline Utility Relocation Reimbursement Agreement-Phase 1 Design
Iowa DOT Project No. HDP-2100 (667)-71-31
DATE: February 1, 2017
Assistant City Engineer Bob Schiesl recommends City Council approval for the City
Manager to execute a Phase 1 Design Utility Relocation Reimbursement Agreement
with BP Pipelines (North America) Inc. for the relocation of a petroleum distribution
pipeline impacted by the Southwest Arterial and the future East Grading Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Robert Schiesl, Assistant City Engineer
Gus Psihoyos, City Engineer
THE CITY OF Dubuque
AII11-America CiI.ty
UB E1
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
Gus Psihoyos, City Engineer
FROM: Robert Schiesl, Assistant City Engineer
DATE: February 1, 2017
RE: Southwest Arterial Project
BP Pipeline Utility Relocation Reimbursement Agreement - Phase 1 Design
Iowa DOT Project No. HDP-2100 (667)--71-31
INTRODUCTION
The purpose of this memorandum is to seek City Council approval and authorize the
City Manager to execute a Phase 1 Design Utility Relocation Reimbursement
Agreement with BP Pipelines (North America) Inc. (BP) for the relocation of a petroleum
distribution pipeline impacted by the Southwest Arterial and the future East Grading
project.
BACKGROUND
Through the continued collaborative partnership between the Iowa DOT staff and the
City, the Memorandum of Understanding (MOU), was signed on August 9, 2013, and
the Transfer of Roadway Jurisdiction (TOJ), was signed on November 7, 2016.
Following the execution of the MOU and TOJ, the City is continuing as the lead agency
for the multiple project development phases for completing the Southwest Arterial and is
responsible for completing the following improvement projects:
Project Description Status
Final Engineering Design Underway
Right-of-Way Property Acquisition Completed
BHE Gas Pipeline Utility Relocation Completed
BP Gas Pipeline Utility Relocation Summer 2017
North Cascade Road Reconstruction Completed
English Mill Road Reconstruction Underway
Military Road Reconstruction Summer 2017
As outlined in the MOU and TOJ, the City is responsible for the relocation of impacted
utilities. Prior to beginning the East Grading project, the City needs to relocate an
existing in-service 10" petroleum distribution pipeline which is owned and operated by
BP. The BP pipeline is located on its own private easements upon land acquired by the
City for the Project.
Relocation Reimbursement Agreement
Upon reviewing the Iowa Department of Transportation (Iowa DOT) Federal-aid
Participation in Utility Relocations, it has been determining the BP utility relocation is
eligible. However, due to the federal regulatory requirements, it was determined that a
more efficient way of completing the associated relocation work would be to separate
the work into two (2) phases.
The Phase I - Engineering Design will include completing both preliminary and final
engineering to establish re-alignment segments for the existing in-service 10" pipeline.
Upon completing the preliminary engineering evaluation, BP shall perform final
engineering to establish itemized quantities and prepare a detailed estimate of probable
cost for the actual construction relocation. The Phase I - Engineering Design will not be
considered eligible for federal-aid funding.
Upon completing the Phase I - Engineering Design phase, the City and BP will enter
into a Supplemental Agreement to perform and complete the Phase II - Utility
Construction Relocation. The Phase II construction relocation will be federal-aid eligible.
Phase 1 - Eligible Engineering Costs
BP will be using in-house staff resources and contracted consultant services to
complete the following work and operational services:
a. Engineering and Administration Services for the work proposed at the preliminary
and final design stages.
b. Engineering and Administration Services for soliciting competitive bid proposals
from qualified contractors to complete the relocation work.
c. Contract with the lowest responsible, responsive bidder for contract labor to
complete the relocation work.
Reimbursement Costs
BP shall initially pay all costs associated with the Phase I - Engineering Design as
covered by the agreement. Upon reasonable satisfactory progress as the work is
underway, BP shall provide an itemized monthly progress payment for all expenditures
incurred which are eligible for reimbursement. Upon receiving invoices from BP, the City
will pay BP for said eligible reimbursement costs.
BUDGETIMPACTS
The estimate of probable cost for the utility relocation Phase 1 Design is as follows:
Description Estimated Cost
Phase 1 - Engineering Design $ 134,000
BP Contingency (15%) 20,190
BP Administrative and General Overhead (15%) 23,219
Total Project Cost Estimate 178 009
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The anticipated project funding is summarized as follows:
Fund Description Fund Amount
Local Funding - City (50%) $ 89,005
Local Funding - County (50%) 89,004
Total Project Funding lin 009
Dubuque County has been a long-time partner on the Southwest Arterial project and the
City intends to meet with County representatives on February 13th to request they
consider participating (50%) in the BP Phase 1 Design Utility Relocation
Reimbursement Agreement costs.
RECOMMENDATION
I recommend that the City Council authorize the City Manager to execute a Phase 1
Design Utility Relocation Reimbursement Agreement with BP Pipelines (North America)
Inc. (BP) for the relocation of a distribution pipeline impacted by the Southwest Arterial
and the future East Grading project.
ACTION TO BE TAKEN
The City Council is requested to authorize the City Manager to execute a Phase 1
Design Utility Relocation Reimbursement Agreement with BP Pipelines (North America)
Inc. (BP) for the relocation of a distribution pipeline impacted by the Southwest Arterial
and the future East Grading project.
Prepared by Robert Schiesl, Assistant City Engineer
cc: Jenny Larson, Budget Director
Ken Yanna, Kent Ellis, Roget Walton, Iowa DOT
Chandra Ravada, ECIA
F:\Projects\Southwest Arterial\Utility Coordination - Relocation\BP Pipeline\Council and Staff Documents
3
RESOLUTION NO. 41-17
RESOLUTION APPROVING A PHASE DESIGN UTILITY RELOCATION
REIMBURSEMENT AGREEMENT WITH BP PIPELINES (NORTH AMERICA) INC. FOR
THE RELOCATION OF A PETROLEUM DISTRIBUTION PIPELINE ASSOCIATED WITH
THE EAST GRADING PROJECT AND THE CONTINUED DEVELOPMENT AND
ADVANCEMENT OF THE SOUTHWEST ARTERIAL PROJECT
Whereas, the City is proceeding with the proposed East Grading Project "(hereafter
Project) in accordance with its plans and specifications, which the City has designed as part of
the Southwest Arterial Project; and
Whereas, prior to the City commencing work on the Project, the City needs to have an
existing in-service 1 0" petroleum distribution pipeline relocated; and
Whereas, the 1 0" petroleum distribution pipeline is owned and operated by the BP
Pipelines (North America) Inc. (hereafter BP) and located on its own easements upon land
acquired by the City for the Project shall be relocated in accordance with a Phase 1 Design
Utility Relocation Reimbursement Agreement (hereafter Agreement); and
Whereas, it has been determined that the utility relocation to be completed by BP shall
be separated into a Ph·ase I -Engineering Design and a future Phase II -Utility Construction
Relocation; and
Whereas, BP shall initially pay all costs to relocate and adjust its facilities as covered by
the Agreement; and
Whereas, upon reasonable satisfactory completion the City will pay BP for said eligible
reimbursement costs as covered by the Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA, THAT:
Section 1. That said Agreement between the City of Dubuque and BP Pipelines (North
America) Inc. is hereby approved.
Section 2. That the City Manager be authorized and directed to execute three copies of
said Agreement between the City of Dubuque and BP Pipelines (North America) Inc. for the
relocation of the petroleum distribution pipeline associated with the Project and the
continued development and advancement of the Southwest Arterial Project.
Passed, approved and adopted this 6th day of February, 2017.
~[)&J
Roy·
Attest:
5~
Trish L . Gleason, Assistant City Clerk
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Exhibit A - The Work
1) This estimate is for the ~1250 foot relocation of the 10-inch Whiting-Dubuque pipeline shown on
PP05 of AECOM's drawings prepared for the City of Dubuque.
2) This estimate assumes relocation will be necessary due to proposed crossing angle and the
significant cuts/fills proposed for the SW A.
3) THIS ESTIMATE IS FOR DEFINE STAGE (FEL AND DESIGN) ONLY, with a total project cost
estimate to be developed as part of FEL.
Pipelines Estimating Workbook_Rev0 Stage Summary 2/6/2017
PRISM#35175SAP#O2-0094H
Estimate For:Select to Define Location:Dubuque, IA
CODE TOTAL %
CAPITAL REVEX $ANALYSIS
A APPRAISE
S SELECT
D DEFINE 154,790 154,790 100.0%
E EXECUTE
O OPERATE
TOTAL CAPITAL 154,790 154,790 100.0%
TOTAL REVEX
154,790 100.0%
Estimate Range based on Confidence Range Factors:154,790
Total (high-side) =195,809 23,219
Total (low-side) =160,208 178,009
Confidence Range =Total BP CostPlus+10%
Minus -10%GRAND TOTAL
TOTAL
Southwest Arterial - Knepper Ln
DESCRIPTION
178,009
3rd Party Cost
BP Overheads
Total 3rd Party
PROJECT TOTAL
bp
February 14, 2017
Robert Schiesl
City of Dubuque
City Hall, 50 W. 13th St
Dubuque, lA 52001
BP Pipelines (North America) Inc.
30 South Wacker Dr
Suite 900
Chicago, IL 60606
Re: City of Dubuque and BP Pipelines (North America) Inc. Reimbursement Agreement
Dear Mr. Schiesl,
Please find enclosed the Executed City of Dubuque and BP Pipelines (North America) Inc.
Reimbursement Agreement.
Laur. o hewer
Contract Right-of-Way Agent
AGENCY REIMBURSEMENT AGREEMENT
WORK: Southwest Arterial FEL Engineering Review (No materials or construction)
LOCATION : Sec . 03, 10, & 11 -88N-2E
Dubuque County, Iowa
Knepper Lane relocation -PP05
BP REFERENCE : 4000-766, 765 , 764, 763, & 762 TPR: 6486
THIS AGREEMENT, made and entered into this ,fL/~ dayof-K--=--eh'--· _. __ _
2017 ("Effective Date"), by and between BP Pipelines (North America) Inc., a Maine corporation,
whose address is 30 S. Wacker Dr . Suite 900, Chicago, IL 60606 (hereinafter referred to as "BP") and
City of Dubuque, whose address is 50 W. 13th Street, Dubuque, Iowa 52001 (hereinafter referred to
as "CITY").
WITNESSETH:
WHEREAS, CITY desires to construct a highway connecting Highway 20 to Highway 61, and
WHEREAS, said construction activities will require certain adjustments and alterations of
existing facilities of BP (hereinafter referred to as "BP Pipeline Facilities"), and
WHEREAS, it is to the best interests of BP and CITY for BP to make the necessary
adjustments, removals, and/or relocation of its existing facilities, and/or provide other related services,
as specified herein, with BP's regular construction and maintenance forces , or by a contractor paid
under a contract let by BP, and
WHEREAS, CITY will pay, or reimburse BP for, One Hundred Percent (100%) of all costs and
expenses ("Cost") incurred for the adjustments, removals, and/or relocation of the Pipeline Facilities,
and/or other related services, as specified herein, whether such Cost is incurred directly by BP or
others on behalf of or at the request of BP .
NOW THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL COVENANTS
HEREIN RECITED, BP AND CITY DO HEREIN AGREE AS FOLLOWS:
Section I
BP, with its regular engineering group and personnel, or using a contractor or subcontractor ,
all at their standard schedule of wages, benefits and working hours , will provide engineering and
design services for the adjustment/relocation of the pipeline facilities as indicated on said Exhibit "A"
(the "Work") attached hereto and made a part hereof. The preliminary estimated Cost of the
Work is one hundred seventy eight thousand nine dollars and 00/100 ($178,009 .00), as set forth in
the attached Exhibit "B" ("Estimated Cost").
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Section II
a) CITY shall reimburse any and all actual Costs related to the Work.
b) BP will submit a final invoice to CITY upon completion of the Work with supporting
documents as reasonably requested by CITY. CITY shall pay this amount to BP within thirty (30)
calendar days after CITY receives BP’s invoice and all requested supporting documents. BP
accounts, and the accounts and records of any contractor or sub-contractor involved in carrying out
the W ork, shall be kept in such manner that they may be readily audited and actual Costs determined,
and such accounts shall be available for audit by auditors of CITY for a period of three (3) years from
date final payment has been received by BP.
Section III
BP shall perform the Work in accordance with the plans and specifications as shown in
Exhibit “A”.
Section IV
BP shall have no obligation to start the Work until written notice has been provided by CITY
that the Work has been agreed to, approved by and authorized by CITY, a satisfactory starting date
has been mutually agreed upon by both CITY and BP, and CITY has located and identified all utilities
and other facilities in any area in which the Work is to be performed (“Utilities”) that are not covered
by the applicable One Call system. Prior to starting the Work, CITY shall cooperate with BP in
obtaining or causing to be obtained, in a form acceptable to BP any right, permit, permission,
easement and access rights required for BP to perform the Work, at the sole Cost of CITY. CITY
shall, if requested by BP, survey and stake all easements and access rights that pertain to the Work.
Once written notice has been provided, BP will use reasonable efforts to endeavour to complete the
Work in a timely manner, subject to force majeure and other delays outside of BP’s control.
Section V
BP, its contractor and sub-contractors, if any, shall not discriminate against any
employee or applicant for employment, to be employed in the performance of this contract, with
respect to his hire, tenure, terms, conditions or privileges of employment, or any matter directly or
indirectly related to employment, because of race, color, religion, sex, handicap, national origin or
ancestry.
Section VI
CITY HEREBY AGREES TO INDEMNIFY AND HOLD HARMLESS BP, ITS AFFILIATED
COMPANIES AND ITS AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS,
EMPLOYEES AND CONTRACTORS FROM AND AGAINST ANY AND ALL LIABILITIES, CLAIMS,
LOSSES, FINES, DAMAGES, COSTS AND EXPENSES (INCLUDING COSTS AND EXPENSES OF
DEFENSE), WHICH ARE CAUSED IN WHOLE OR IN PART BY OR ARISE OUT OF ANY ACT
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OR OMISSION OF CITY, ITS EMPLOYEES, AGENTS OR CONTRACTORS IN THE
PERFORMANCE OF THE WORK OR ANY DUTY, OBLIGATION OR SERVICE PURSUANT TO
THIS AGREEMENT; EXCEPT, HOWEVER, THIS INDEMNITY SHALL NOT APPLY TO THE
EXTENT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF COMPANY, ITS
EMPLOYEES, AGENTS OR CONTRACTORS. IF ANY PROVISION OF THIS INDEMNITY IS
DETERMINED BY A COURT OF COMPETENT JURISDICTION TO BE INVALID OR
UNENFORCEABLE, THE REMAINING PROVISIONS OF THIS INDEMNITY WILL REMAIN IN
EFFECT TO THE MAXIMUM EXTENT PERMITTED BY LAW.
NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY,
NEITHER PARTY HERETO SHALL BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL,
INCIDENTAL, EXEMPLARY OR PUNITIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST
PROFITS, LOSS OF PRODUCTION OR OTHER DAMAGES ATTRIBUTABLE TO BUSINESS
INTERRUPTION) ARISING IN CONNECTION WITH THIS AGREEMENT.
Section VII
The term of this Agreement shall commence on the Effective Date and continue for a period
of one year. The term of this Agreement shall not be extended unless an authorized representative of
CITY and BP agree in writing to extend the term. If the Work is not completed within the one year
term, or any agreed upon extension of the term, through no fault of BP, BP shall have the option to
not perform or complete the Work.
Section VIII
Without limitation or waiver of any of BP’s rights elsewhere set forth in this Agreement, BP
reserves the right, with cause, to stop the Work at any time and in addition thereto to immediately
terminate this Agreement without liability.
Section IX
This Agreement constitutes the entire agreement, and supersedes all other prior agreements
and understandings, both written and oral, among the parties, with respect to the subject matter of
this Agreement. This Agreement may be amended, modified, or supplemented but only in writing
signed by an authorized representative of both BP and CITY
Section X
The provisions of this Agreement are solely for the benefit of the parties to this
Agreement and no provision of this Agreement should be deemed to confer upon any other party any
remedy, claim or right.
Section XI
If any term or provision of this Agreement shall be found to be invalid , illegal or otherwise
unenforceable, the same shall not affect the other terms or provisions hereof or the whole of this
Agreement, but such term or provision shall be deemed modified to the extent necessary to render
such term or provision enforceable, and the rights and obligations of the parties shall be construed
and enforced accordingly, preserving to the fullest permissible extent the intent and agreements of the
parties as set forth herein.
Section XII
This Agreement shall be construed in accordance with the laws of the United States and the
state where the Work is to be performed, without regard to such state's conflicts of law rules.
IN WITNESS HEREOF, the parties hereto separately and severally have caused this
AGREEMENT to be executed in their respective names by and through their duly authorized
representatives, as of the day and year first above written .
WITNESS:
WITNESS:
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By:~~~~~~~r-~~~-----
Name : CeRt!!-/~1 J1l,11.e/
Please print
Title: &t~~t:/e~
CITY OF DUBUQUE
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By: ____ -.,~----------------------
Name: Michael C. Van Milligen
Please print
Title: City Manager
City of Dubuque, Iowa
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