HomeMy WebLinkAbout18-079 - Olympic Pipe Line Co. / BP - Strander Boulevard Design Reimbursement Agreement18-079
Council Approval 5/21/18
REIMBURSEMENT AGREEMENT
MILEPOST: 114 approximate
PROJECT: Strander Blvd. Extension Project, Relocation of OPL 14 -inch R -P pipeline and OPL
12 -inch SeaTac lateral pipeline
LOCATION: A portion of NW Quarter of Section 25, Township 23 North, Range 04 East
OPL FILE REFERENCE: 3679 -KI -239 and 3678A -L -KI -5
THIS AGREEMENT, made and entered into this day of 3(4-
2018 ("Effective Date"), by and between OLYMPIC PIPE LINE COMPANY LLC, a Delaware
limited liability company, whose address is 600 SW 39th Street, Suite 275, Renton, WA 98057
(hereinafter referred to as "OPL") and the CITY OF TUKWILA, a State of Washington municipal
corporation, whose address is 6200 Southcenter Boulevard, Tukwila, WA 98188 (hereinafter
referred to as "CITY").
WITNESSETH:
WHEREAS, CITY desires to proceed with a construction project on property at the
location identified above (the "Strander Boulevard Extension Project"), which will require the
eventual relocation of a portion of OPL'S fourteen -inch pipeline and twelve -inch pipeline, and
WHEREAS, it is in the mutual interest of OPL and CITY for OPL to perform and provide
necessary preliminary pipeline relocation activities and services, as specified herein, with OPL'S
regular personnel, or by a contractor or subcontractor paid under a contract let by OPL, and
WHEREAS, OPL requires payment for the estimated expense, loss, or damage either
caused or made necessary by the performance of such activities and the provision of such
services provided by OPL, as specified herein, whether it is incurred directly by OPL or others
on behalf of OPL at the request of OPL prior to beginning any such work, as well as payment for
any actual increased or additional costs above the estimated amount, as more fully described in
Section II of this Agreement.
NOW THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL COVENANTS
HEREIN RECITED, OPL AND CITY DO HEREIN AGREE AS FOLLOWS:
/ 9-611 ? aL(6/4v s
Section I
OPL with its regular personnel at its standard schedule of wages and working hours, or
by a contractor or subcontractor, will perform the necessary activities as outlined in the scope of
work document being Exhibit "A" (the "Work") attached hereto and made a part hereof. The
preliminary estimated cost of the Work is Six Hundred Thirty Thousand Dollars ($630,000.00) as
set forth in attached Exhibit "B" ("Estimated Cost").
Section II
a) CITY shall pay any and all actual costs and expenses incurred by or on behalf of OPL in
connection with performance of the Work (the "Actual Cost"). Monthly, OPL will submit a
reimbursement request to the City that describes the work performed and the cost. The City will
pay OPL within 30 days of receipt of the request.
Section III
OPL shall perform the Work as defined and outlined in Exhibit "A".
Section IV
OPL 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 OPL, and the Estimated Cost
has been paid. Prior to starting the Work, CITY shall cooperate with OPL in obtaining or
causing to be obtained, in a form acceptable to OPL, any right, permit, permission, easement
and access rights, at the sole cost and expense of CITY, required for OPL to perform the
WORK and CITY shall, if requested by OPL, survey and stake all easements and access rights
that pertain to the Work.
Section V
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OPL, 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 or her 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 THE OPL, ITS
AFFILIATED COMPANIES (INCLUDING BUT NOT LIMITED TO ITS OPERATOR, BP
PIPELINES (NORTH AMERICA), INC.), 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), ARISING OUT OF ANY DUTY,
OBLIGATION OR SERVICE OF THE CITY PURSUANT TO THIS AGREEMENT OR ANY
ACTION OR CONDUCT PERFORMED BY THE CITY IN CONNECTION WITH THE
STRANDER BOULEVARD EXTENSION PROJECT; EXCEPT, HOWEVER, THIS INDEMNITY
SHALL NOT APPLY TO THE EXTENT OF THE GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT OF OPL, 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.
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Section VII
The term of this Agreement shall commence on the Effective Date and continue for a
period of twenty-four (24) months. The term of this Agreement shall not be extended unless an
authorized representative of OPL and CITY agree in writing to extend the term. If the Work is
not completed within the twenty-four (24) month term, or any agreed upon extension of the term,
OPL shall have the option to not perform or complete the Work and shall reimburse CITY the
amount that CITY has paid OPL less all actual costs incurred by OPL through the date of
termination of this Agreement. The provisions of Section VI of this Agreement shall survive any
termination and shall continue to remain in full force and effect upon termination of this
Agreement.
Section VIII
Without limitation or waiver of any of OPL'S rights elsewhere set forth in this Agreement,
OPL reserves the right, with or without cause, to stop the Work at any time and in addition
thereto to immediately terminate this Agreement without liability, and in such event OPL shall
reimburse CITY the amount that CITY has paid OPL less all actual costs incurred by OPL
through the date of termination of this Agreement.
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 OPL and CITY.
Section X
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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.
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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.
OLYMPIC PIPE LINE COMPANY LLC,
a Delaware limited liability company
By: la 146 -
Typed:
Typed: M ar
Title: 12f'e-S ter.'
FEIN: ; e(" (? WI ?-21
CITY OF TUKWILA, a State of Washington
municipal corporation
By:
Typed:
Title: CYlct
FEIN:
e-4-,,
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Exhibit A
SCOPE OF WORK
Description of Work
OPL will develop a design and plan to relocate its 14 -inch and 12 -inch petroleum pipelines in
interference with the Strander Boulevard Expansion Project in Tukwila, WA. This relocation
will accommodate the CITY's expansion of Strander Boulevard. As a result OPL's 12 -inch
and 14 -inch pipelines are impacted and will need to be relocated.
Under this Agreement, OPL will perform the following preliminary engineering design work
associated with the modification or relocation of its facilities.
Project Management
• Organize and develop work plan and advance design development.
• Provide guidance on private property coordination and legal review of any easement,
and coordinate with CITY on replacement easements and/or reciprocal conveyances.
• Procurement of engineering, surveying, and construction contractors.
• Track right of way document development.
• Coordinate with the CITY on the design and construction methods of the proposed
relocation so the CITY can proceed with the permitting.
Potholing/Soil Borings
• Pothole elevation of 12" and 14" pipelines upstream/upland tie-in location.
• Probe/confirm elevation of 20" pipeline downstream tie-in location.
• If sufficient subsurface soil and groundwater information is not available, complete
soil borings as necessary.
Survey Contractor
• Update topographic gaps from CITY -provided CADD and mapping information.
• Modify data for design development.
• Survey location of items during design phase engineering.
Modeling
• From updated field investigation, model proposed alignment for design development.
Design
• Design pipe relocation, bends, and length of pipe.
• Prepare right of way plan sheets.
• Identify laydown area and ingress and egress areas.
• Coordinate with mechanical contractor on constructability issues.
• Prepare plan view and profile of pipe relocation.
• Prepare contract specifications.
Geotechnical
• Review, evaluate, analyze, and plan for site geotechnical conditions that may impact
construction of the petroleum pipeline relocations.
Permitting
• Washington State Department of Ecology (WSDOE) — NPDES Construction
Stormwater General Permit and approval of possible SEPA amendment
determination by City of Tukwila.
• City of Tukwila - permits required by City code and after consultation with City staff,
which may include permits for right-of-way use and grading. Additionally, depending
on the scope of work, determine with City staff whether a SEPA amendment and/or
additional Critical Areas Review is required to complete Olympic's work.
Deliverable
• Plans, Specifications & Estimates (PS&E) for the petroleum pipeline relocation, which
will be utilized by OPL to procure the relocation's construction.
Schedule (Tentative)
• Survey, site reconnaissance, and potholing (if necessary) — 2nd & 3rd Quarters 2018.
• Engineering design - 6 to 8 months; 2"d 3rd & 4'" Quarters 2018.
• Permit package development & submittal — submittal date TBD.
Exhibit A Page 2 of 2
Strander Boulevard Expansion Project
Preliminary Engineering Agreement
Exhibit B Engineering Cost Estimate
Phase 3: Strander Boulevard Expansion
Labor $189,400
Travel & Expense $5,000
Engineering 86 Survey $278,600
Permitting $25, 000
15% UAP $74,700
Overhead
sub total $572,700
1o.00% $57,270
TOTAL* $630,000
NOTE:
UAP based on actual expense and not generated
from imbedded worksheet calculations
* Rounded to nearest $100