AGENDA CAPTION:
Title
Consider approval of Resolution 2014-145R approving a Reimbursement Agreement with Enterprise Texas Pipeline, L.L.C. providing for the City to reimburse the costs incurred to relocate gas pipeline facilities in the estimated amount of $785,000.00 in connection with the Willow Springs Creek Drainage Improvements Project; authorizing the City Manager to execute said agreement; and declaring an effective date.
Body
Meeting date: October 21, 2014
Department: Engineering and Capital Improvements
Funds Required: $785,000.00
Account Number: 616.562.73128, FY 2015 Project
Funds Available: $2,239,344.00, $850,000
Account Name: Victory Gardens Improv, Victory Gardens Subdivision Ph I, North Section
CITY COUNCIL GOAL:
Big Picture Infrastructure, Protect the San Marcos River
BACKGROUND:
This reimbursement agreement is with Enterprise Pipeline, LLC for the relocation of a high pressure gas line. The lowering of the gas line is required for wastewater and drainage channel improvements proposed with the City's Willow Springs Creek Improvement project. This project is associated with the overall Victory Gardens Neighborhood Project and will remove approximately 60 structures from the current 100-yr floodplain after the proposed drainage improvements are complete. This project will also replace an existing wastewater line as recommended by the Wastewater Master Plan.
A previous reimbursement agreement with Enterprise was approved by City Council in November 2013 based upon a preliminary cost estimate. After final design and construction bids were obtained, the estimated cost of the gas line relocation increased to $785,000. The revised cost from Enterprise has been validated by the City's design consultant. Bowman Engineering. The City also attempted to obtain cost participation from Enterprise, but it was unsuccessful.
Staff has evaluated whether it would be better for the City to revise the City project to allow for the gas main to remain in place or to move forward with funding the higher cost for the relocation. Based upon the benefits outlined below, staff is recommending moving forward with the relocation now.
Benefits to the City project with relocation now:
1) Allows for construction of channel improvements downstream of Guadalupe which removes 60 versus 45 homes from the floodplain.
2) Allows construction of the stream restoration segment between Guadalupe and McKie,, thereby improving water quality prior to entering the San Marcos River.
3) Lowering the gas line now allows for the replacement of an existing wastewater main as recommended in the Wastewater Master Plan. Delay of this segment creates a conflict with proposed upstream improvements.
4) The full benefit of reduced roadway flooding with the new Guadalupe bridge will be realized now
5) The City will capture all benefits from the design/bid phase investment now.
6) Only one Letter of Map Revision (LOMR) for the 100-yr floodplain map will be required (which changes the official floodplain in the area with FEMA).
Benefits to the City for not lowering the line now:
1) City does not pay full price for work that would be Enterprise's responsibility at a future date due to the age of the pipeline.
2) Reduced project scope could provide for allocation of City funds elsewhere.
The estimated construction cost for the gas relocation project is $785,000. Construction is anticipated in November 2014.
Staff recommends approval of this agreement. If approved, this agreement will supersede the previous agreement from November, 2013.