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Home My WebLink AboutR-2012-064 MGE Service to Horizons , , _ RESOWTION NO. R-2012-064 A RESOLUTION APPROVING A CONTRACT FOR THE EXTENSION OF NATURAL GAS FACILITIES WITH MISSOURI GAS ENERGY TO PROVIDE SUCH UTILITY SERVICE TO THE HORIZONS BUSINESS PARK WHEREAS, the City and Briarcliff Realty, LLC, a Missouri limited liability company, now known as NorthPoint Holdings, LLC, ("NorthPoinY') entered into a Master Development Agreement dated May 10, 2011 ("MDA") which pro�ides for, among other items, the delivery by the City of certain utilities to the B riarcliff Horizons Site (as defined in the M DA) as set forth in Section 5.11 and Exhibit R of the MDA; and WHEREAS, in connection with such de�elopment, it is necessary to provide for the extension of natural gas facilities by Missouri Gas Energy, a division of Southern Union Company ("MGE") at an estimated cost of $17,679.65 to the City of Riverside; and WHEREAS, the parties desire to establish the rights and responsibil ities of the City and MGE with respect to the installation of such natural gas facilities and the Board of Aldermen find it is in the best interest of the City to approve the Contract for the Extension of Natural Gas Facilities in substantially the same form as set forth in Exhibit "A" attached hereto; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI, AS FOLLOWS: THAT an Agreement between Missouri Gas Energy, a division of Southern Union Company and the City of Riverside in substantially the same form as set forth in Exhibit "A" attached hereto is hereby approved and authorized; and FURTHER THAT the City Administrator, Mayor and/or Finance Director are hereby authorized to execute all documents necessary or convenient to carry out the terms and conditions of such agreement and the C ity Clerk is authorized to attest thereto. PASSED AND ADOPTED by the.Board of Aldermen and APPROVED by the Mayor of the City of Riverside, Missouri, the �h'day of May, 2012. ,, 0 � �• � Mayor Kathleen L. Rose _ ' �, � . `. , _ AT�'EST . � , � � � City C erk - Approv s to Form: o son, City Attorney . State: Missouri (2) OperaHng Aree: Kansas Ci[y Tax Code: �+ Contrect No. W.O. 121110 CONTRACT FOR THE EXTENSION OF NATURAL GAS FACILITIES THIS AGREEMENT is entered into this �'�� day of , 2012 ("Effective Date") by and between CITY OF RIVERSIDE ("Applicant") and ISSOURI GAS ENERGY, A DIVISION OF SOUTHERN UNION COMPANY ("MGE"). WHEREAS, MGE is a public utility engaged in the distribution of natural gas; WHEREAS, Applicant is developing the area described in E�ibit A hereto, Horizons Business Park ("Development Area") and has requested MGE to install an extension of natural gas facilities to the Development Area ("Extension"); WHEREAS, MGE has agreed to install the Extension subject to Applicant's payment of the ' actual cost of MGE's installation of the Extension ("Installation Cost"); ' WHEREAS, Applicant has agreed to pay the actual Installation Cost to MGE in consideration for the installation of the Extension; and THEREFORE, the parties agree as follows: l. In accordance with the provisions of the General Terms and Conditions of MGE's tariff on file with the Missouri Public Service Commission ("Tariff '), MGE shall install the Extension and Applicant shall pay the Installation Cost to MGE. The Installation Cost does not include the cost to install any service lines from the Extension to any buildings in the Development Area. 2. The Installation Cost is estimated to be $17,679.65 ("Estimated Installation Cost"). Applicant shall pay $17,679.65 ("ApplicanYs Contribution") to MGE upon Applicant's , execution of this Agreement. MGE shall have no obligation to commence installation of the Extension prior to its receipt of Applicant's Contribution. Following completion of the installation of the Extension, MGE shall determine the actual Installation Cost. If the actual Installation Cost is determined to be greater than $17,679.65, Applicant shall pay any deficiency to MGE within thirty (30) days after the date of MGE's invoice therefor. If the actual Installation Cost is determined to be less than Applicant's Contribution, MGE shall refund any excess to Applicant within thiriy (30) days after the date of such determination. 3. If installation of the Extension contemplated by this Agreement is not commenced within six (6) months of the Effective Date due to the unreadiness or unwillingness of Applicant to allow such installation to commence, MGE shall reimburse to Applicant the amount of the Installation Cost previously received by MGE from Applicant. Upon MGE's tender of such reimbursement to Applicant, this Agreement shall terminate with no further liability on the part of either party arising therefrom. 4. It is expressly understood and agreed between the parties that the Extension shall be the absolute property of MGE free of any liens, claims, or equity of Applicant. 5. Nothing contained herein shall be construed as obligating MGE to refund all or any portion of Installation Cost to Applicant in the event (i) Applicant is refused service by MGE because of gas supply limitations or governmental authority or (ii) MGE is precluded from connecting Applicant to the Extension for any reason. 6. T'his Agreement is made pursuant to the Tariff. The relevant terms of the Tariff are incorporated in this Agreement by this reference. IN WITNESSETH WHEREOF, the parties have executed this Agreement as of the Effective Date. MISSOURI GAS ENERGY, A DIVISION CITY OF RIVERSIDE OF SOUTHERN UN N OMPANY By: By: � PrintedName: � ti c- ,�(�, �� Printed Name: �'��yi, �• 1�.o5C. Title: � �� dO Title: / l/l LU.VD�v Address: ZR'S0 �l�l Ll� V l✓I D� I`((G. IZ��-��r�ro FORM #999 5/14/20I2 2:32:37 PM 2 � ` � �, - -•:.��.�,o �-�� ; � �e.,.......� SEG.46ST30U4R33W I �� '�_ �'t ��'L� "�NOIE: MOE Ml IIECdID FA¢IApR: 50 IF NTME RElOG11d1 REMRFD: •� T .� L�� , \ y .. �q�J,� A+ihti:w�P filEP•'!i0E WNL PAY FOR R0.0CATION. � . � .CENOML II.E 'MLL ff iutFH OVER Bv tlTY OC R11£R�E. ii '� �`[ �. '' �' I �. —__ \ -�'l�� • I 0.SSaN ASW0�1E5 10 SMYEY ! STN(E 4 ; X '�� '•�aV-� �. � // , r Ir `\� � , ` 1 _��4 ``� `�� r�Yi�� r . � � , i-- h �.. \� � . ��' ��"�^ YR69URE TLST �0: 100� � � � �� . � : t � �� _ �� . 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J-Y-iY �sYl �� IOt � ____ �___ _ _ .- � S,�p� pIPE dc LFNGiH Pad_I S�AJE619L i A 205-4' PE W TRACER WIRE � DiRECT 'RE—IN � GROUND ROD. CL4MP LUG � B 162'-4' PE W/ TRACER NARE REQUCER-6 PE 54 TEST STATION I I 2 LUG GRWND ROD, CLAMP 3 DIRECT TIE—IN GROUND ROD, CLAMP LUG REDUCER-6"X4" PE 54' TEST STAiION 4 LUG GROUNp ROO, CLAMP 1�' ANODE �mno �^ ' �(rewwww' � 3.f +�arr--w�nnm - ui¢aire�w� wusr •ra � CITY OF RIVERSI .� MISSQURI Upstream from ordinory. 2950 NW Vivion Road Riverside, Missouri 64150 MEMO DATE: o5-ii-i2 AGENDA DATE: o5-i4-i2 TO: Mayor & Board of Aldermen FROM: Michael Duffy, Director of Community Development TITLE: A Resolution Authorizing MGE to Extend Gas Service to Riverside Horizons Development. BACKGROUND: The City entered into a Master Development Agreement (MDA) with Briarcliff Realty, now NorthPoint Development (NorthPoint). As part of the MDA, the City is responsible for the extension of certain utility infrastructure to the Riverside Horizons site east of Horizons Parkway. The City budgeted $2,500,00o for the extension of electric, gas and water service to the site. Once the service is delivered to the site, the extension of utilities is done by the master developer and is paid out of the joint escrow fund that is financed by NorthPoint (51%) and the City of Riverside (49%). This resolution authorizes the City to enter into an agreement with MGE to extend the existing gas line located on the west side of Horizons Parkway. The line will be extended under Horizons Parkway in two locations — at 39 Street and at 4i� Street. From that point the line will be extended to serve both the industrial and office components of the development. Please see the attached exhibit from the MDA identifying the scope of work for the electric service. Cost of the project is estimated at $i�,6�9.65. After the project is complete, MGE will provide a statement of construction that verifies the final actual costs. This project is not eligible for revenue justification. BUDGETARY IMPACI': The total cost for construction of this project is estimated to be $i'7,679.65. Funds for the project will come from the Horizons Infrastructure Fund. Fund Budgeted Spent Remaining 2i-5-o20-53o-ii $2,500,000 $255�5g4 � CONSEQUENT ACTION: No action is required after construction.