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ORDINANCE NO. \,J
AN ORDINANCE PERMITTING AND REGULATING 'THE CONSTRUC-
TION, MAIN'T'ENANCE AND USE OF A PETROLEUM PRODUCTS
PIPELINE BY KOCH REFINING COMPANY ACROSS, OVEF~ AND
UNDER CERTAIN STREETS, HIGHWAYS AND PUBLIC RIGHTS-OF-
WAY OF THE CITY OF FORT WORTH; MAKING THIS ORDINANCE
CUMULATIVE OF ALL PROVISIONS OF ORDINANCES AND THE CODE
OF THE CITY OF FORT WORTH (1 986) , AS AMENDED, AND
REPEALING ALL PRIOR ORDINANCES IN DIRECT CONFLICT HERE-
WITH; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING
FOR ENGROSSMENT AND ENROLLMENT ; PROVIDING FOR PUBLICA-
TION; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Koch Refining Company, a Delaware corporation, here-
inafter referred to as "Koch", desires the use of certain public
streets and rights-of-way within the City of Fort Worth, for the
purposes set forth below, pursuant to the provisions of the laws
of the State of Texas; and
WHEREAS, it is the position of the City of Fort Worth that
Koch must obtain a license in order to use the public rights-of-
way; and
WHEREAS, the Fort Worth City Council has determined that it
is appropriate to grant said license to Koch;
NOW, THEREFORE,
BE IT ORDAINED BY 'THE CITY COUNCIL OF THE CITY OF FOR'P
WORTH, TEXAS:
SECTION 1 .
PURPOSE
THAT the City of Fort Worth (hereinafter referred to as the
"City°') hereby grants to Koch and its successors and assigns, for
the full term of forty (40) years from the date of passage of
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this ordinance, a license to acquire, erect, construct, lay,
replace, reconstruct, change the size of, maintain, use and
operate in, over, under, along and across certain streets and
other public rights-of-way of the City (hereinafter the "public
rights-of-way"), a pipeline for the transportation of petroleum
products and all structures and appurtenances necessary for the
efficient and safe operation of the said pipeline, including but
not limited to cathodic protection equipment (hereinafter the
"system"), subject to the provisions of this ordinance. The
public right-of-way which Koch shall use pursuant to this ordi-
nance shall be the following, as same are encountered on the
route shown specifically on Exhibit "A" attached hereto and incor-
porated herein by reference for ail purposes incident hereto:
EAST CHASE PARKWAY
MEADOWBROOK DRIVE
ARLINGTON BEDFORD ROAD
MOSIER VALLEY ROAD
F.M. HIGHWAY NO. 157
TRINITY BOULEVARD
SOUTH MAIN STREET
TARRANT MAIN STREET
AMERICAN AIRLINES BOULEVARD
It is estimated and anticipated that the system will cross or run
along approximately 11,125 linear feet of City right-of-way.
SECT ION 2 .
REGULAT ION OF CONSTRUCT ION
The work done by Koch in erecting, constructing, laying,
replacing, reconstructing, changing the size of, maintaining or
repairing the system shall be subject to and governed by all
laws, rules and regulations of the City and State of Texas that
are applicable to insuring the work done does not inconvenience
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the public in the use of the public right-of-way, including but
not limited to the followings
A. Prior to construction of any significant changes to the
system which will require any digging, cutting or any other such
disruption of the City right-of-way or City property after the
effective date of this ordinance, Koch shall submit engineering
plans to the City for review and approval, pursuant to the
standards generally applicable to requests for the privilege to
use the public right-of-way, including the City's utility loca-
tion and coordination policy. Approval of such plans will not be
unreasonably delayed, unreasonably withheld or unreasonably
denied by the City.
B. All excavations and other construction in the streets
shall be carried out so as to interfere as little as practicable
with the surface use of the streets and sidewalks and with the
surface use of private property, in accordance with any lawful
and reasonable direction given by or under the authority of the
governing body of the City or under the police and regulatory
powers of the City necessary to provide for public convenience.
Koch shall as promptly as is practicable and reasonable in the
circumstances restore all public right-of-way excavated by Koch
to substantially the same condition as before such excavation and
to the reasonable satisfaction of the City. Koch shall comply
with all other construction requirements of the City and its
Transportation/Public Works Director with respect to hours of
construction operations in busy peak traffic hours, barricading
requirements, and/or any other reasonable constructionz rules
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which may be lawfully promulgated. In this connection, Koch shall
comply with the requirements set out specifically in the letter.
dated May 16, 1989, from G. Dallas Williams, Deputy Director of
the City's Department of Transportation and Public Works, to
David B. Ladner, and the attached addendum to that letter which
is an Inter-Office Correspondence dated May 15, 1989, from
Karl F. Dr ye of the City's Water Department to John Firing of the
City's Department of Transportation/Public Works, said letter and
addendum being attached hereto, marked Exhibit "B" and expressly
incorporated herein for all purposes.
C. Except in an emergency, Koch shall not excavate any
pavement in any public right-of-way or significant amounts of any
unpaved public right-of-way without first securing the permission
of the City, but such permission shall not be unreasonably
delayed, unreasonably withheld or unreasonably denied if the pro-
posed excavation is in accordance with the terms of this ordi-
nance. The City shall be notified as soon as practicable reg ard-
ing work performed under emergency conditions.
D. The City shall have the power at any time to order and
require Koch to remove or abate any Koch system facility that is
unreasonably dangerous to life and/or property. In the event
Koch, after notice, fails or refuses to comply, the City shall
have the power to remove or agate same at the expense of Koch,
all without compensation or liability for damages to Koch;
PROVIDED THAT the City gives twenty-four ( 24 ) hours' actual
notice to Koch of its intent to remove or abate a system
facility, so that the pipeline may be shut off.
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SECTION 3.
WORK BY OTHERS
The City reserves the right, on its behalf and on behalf of
all other governmental entities, subject to further conditions
described in this paragraph, to lay and permit to be laid sewer,
gas, water and other pipelines or cables and conduits, and to do
and permit to be done any underground and overhead installation
or improvement that may 'oe deemed necessary or proper by the
governing body of the City of Fort Worth in, across, along, over
or under any public right-of-way occupied by Koch and to change
any curb or sidewalk or the grade of any st reet.
In permitting such work to be done, the City and/or other
governmental entities shall not be liable to Koch for any damage
so caused, nor shall the City and/or other governmental entities
be liable to Koch for any damages arising out of the performance
of said work by the City, its licensees, invitees, contractors or_
subcontractors and by other governmental entities and their licen-
sees, invitees, contractors or subcontractors; provided, however,
nothing herein shall relieve any other person or corporation from
liability for damage to the system. If the City and/or other
governmental entities require Koch to remove, alter, change,
adapt or conform the system because of changes in the grade of a
street or in the location or manner of constructing a water pipe,
sewer pipe or other underground or aboveground structure o weed by
the City and/or other governmental entities, Koch shall make the
alterations or changes as soon as practicable when ordered in
writing by the City, without claim for reimbursement or damages
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against the City and/or other governmental entities. If these
requirements impose a financial hardship on Koch, Koch shall have
the right to present alternative solutions or arrangements for
the City's consideration.
Notwithstanding anything to the contrary contained herein,
if the City requires Koch to remove, alter, change, adapt or con-
form its system installed hereunder to enable any other corpora-
tion or person ("non-permitted User"), except the City, other
governmental entities, or any person or corporation or other
entity franchised by the City as of the effective date of this
ordinance, or any person, corporation or other entity, having an
existing use agreement in those portions of the City streets and
rights-of-way described and set forth in Section 1 hereof (herein-
after collectively referred to as "Permitted User"), to use, or
to use with greater convejiience, such public right-of-way, it
shall be a condition precedent to Koch's obligation set forth
above that such Non-Permitted User shall have undertaken with
solvent bond to reimburse Koch for any such loss and expense
which will be caused by or arise out of such removal, alteration,
change, adaptation or conformance of Koch°s system; provided,
however, the City and/or other governmental entities shall not be
liable for any reimbursement, loss or expense which will be
caused by or arise out of such removal, alteration, change, adap-
tation or conformance of Koch's system.
It is expressly understood that, save and except the provi-
sions contained in this Section and in Section 2 and Section 9,
Section 10 and Section 11 herein, no other provision of this
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ordinance creates an unconditional obligation on the part of Koch
to remove, alter, change, adapt or conform its system.
SECT ION 4 .
CONSTRUCTION BY ABUTTING OWNERS
In the event that the governing body of the City of Fort
Worth authorizes abutting landowners to occupy space under the
surface of any public right-of-way after the adoption of this
ordinance, such. grant to abutting landowners shall be subject to
the prior rights of Koch described in this ordinance.
SECTION 5 .
RIGHTS IN THE EVENT OF ABANDONMENT OF PUBLIC RIGHT-OF-WAY
In the event that the governing body of the City of Fort
Worth closes or abandons any public right-of-way which contains
the system of Koch installed hereunder, any conveyance of any
interest in the land contained in such closed or abandoned
street, alley, highway or public place shall be subject to the
rights of Koch described in this ordinance . In the event that
any portion of the public right-of-way that includes facilities
of the system becomes the subject of condemnation proceedings, it
is agreed that Koch°s property rights and interest in such public
right-of-way shall. be severed from the City's interest in such
proceedings and any such condemnation awards shall be specifical-
ly allocated between Koch's interest and the City's interest:
The City shall make a diligent effort to notify Koch within a
reasonable time of any condemnation action (or threatened action)
filed against the public right-of-way that affects any facility
or the system, or any proposed sale in lieu of condemnation. In
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the event any such public right-of-way is sold by the City in
lieu of condemnation, the monies paid therefor shall be appor-
tioned between the City and Koch in the same manner as an award
in condemnation proceedings.
SECT ION 6 .
INDEMN ITY
Koch covenants and agrees to indemnify and hold harmless the
City and its officers and employees from any and all claims,
demands, causes of action, judgments, liability and expenses of
every nature and kind, including attorney fees, resulting from
personal injury or death to any and all persons ( including 'out
not limited to injuries or death to employees of Koch and the
City) or damages to property, all of which are proximately caused
by the negligence of Koch, its employees, contractors, agents,
licensees, assigns and representatives, that arise out of the
construction, relocation, maintenance, operation, repair, replace-
ment and removal of said pipeline and its appurtenances, and Koch
will be required to pay any judgment, with costs, which may be
obtained against the City, arising out of such injury or damage.
SECTION 7 .
RECORDS
The governing hod y of the City and its Public Utilities
Supervisor shall have the right to be kept fully informed as to
matters pertaining in any way to Koch's exercise of its rights
under this ordinance, including the erection, construction,
laying, location, replacement, reconstruction, maintenance,
change in the size of, repair or operation of the facilities of
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the event any such public right-of-way is sold by the City in
lieu of condemnation, the monies paid therefor shall be appor-
tioned between the City and Koch in the same manner as an award
in condemnation proceedings.
SECTION 6.
T 1~T 1'1 L~ MTT TT V
Koch covenants and agrees to indemnify and hold harmless the
City and its officers and employees from any and all claims,
demands, causes of action, judgments, liability and expenses of
every nature and kind, including attorney fees, resulting from
personal injury or death to any and all persons ( including but
not limited to injuries or death to employees of Koch and the
City) or damages to property, all of which are proximately caused
by the negligence of Koch, its employees, contractors, agents,
licensees, assigns and representatives, that arise out of the
construction, relocation, maintenance, operation, repair, replace-
ment and removal of said pipeline and its appurtenances, and Koch
will be required to pay any judgment, with costs, which may be
obtained against the City, arising out of such injury or damage.
SECTION 7 .
RECORDS
The governing body of the City and its Public Utilities
Supervisor shall have the right to be kept fully informed as to
matters pertaining in any way to Koch°s exercise of its rights
under this ordinance, including the erection, construction,
laying, location, replacement, reconstruction, maintenance,
change in the size of, repair or operation of the facilities of
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the system in Fort Worth. Koch shall keep complete and accurate
maps, construction drawings and specifications describing the
location of facilities of the system in Fort Worth. Maps, con-
struction drawings and specifications kept by Koch in accordance
with this ordinance shall provide for separate and specific
identification of the facilities of the system that are located
in the public r fight-of-way. Any and all maps, construction
drawings and specifications required by this ordinance shall be
kept and maintained within the city limits of Fort Worth. The
City shall have the right, at reasonable times, for municipal
purposes, to inspect and/or copy such maps, construction drawings
and specifications, provided, however, that copies of such maps,
construction drawings and specifications taken by the City shall
be returned to Koch immediately upon completion of the City's use
of same. Koch shall fully cooperate in making available its
maps, construction drawings and specifications for inspection.
Maps, construction drawings and specifications required by this
ordinance and maintained by Koch shall not leave the possession
of Koch, subject to the above.
SECT ION 8 .
NOT ICE
Any notice or communication required in the administration
of this ordinance shall be sent as follows:
FOR THE CITY OF FORT WORTH:
City Secretary
City of Fort Worth
1000 Throckmorton Street
Fort Worth, Texas 76102
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with copy to:
Public Utilities Supervisor
City of Fort Worth
1000 Throckmorton Street
Fort Worth, Texas 76102
FOR KOC'H RF.FTNTNC: rnnnpntav.
Koch Refining Company
P.O. Box 2256
Wichita, Kansas 67201
Attention: President
or to such other address as the parties may designate from time
to time, by written notice.
SECT ION 9 .
FEE
A. Koch shall make an initial payment of $10,000 represent-
ing the fee for the first year of the forty (40) year term of the
franchise granted hereunder., payable upon Fort Worth City
Council's approval of the franchise, and Koch shall make annual
payments during each of the remaining successive thirty-nine (39)
years at the rate of not less than $1.25 per year per linear foot
of City-owned right-of-way used (a distance of approximately
11,125 feet as shown on Exhibit "A" attached to this ordinance),
as determined from the engineering plans to be provided by Koch
to the City in accordance with Section 1 of this ordinance.
Following installation of the pipeline, the figure of linear feet
used to calculate the annual payments shall be adjusted to
reflect the actual number of linear feet of pipeline installed in
the City right-of-way, based on the as-built drawings furnished
to the City by Koch, Thereafter, all annual payments shall be
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calculated by using the actual number of linear feet of installed
pipeline.
The above fees shall be adjusted on a percentage basis and
proportionally to the percentage change in the Implicit Price
Deflator for Gross National Product as determined by the Federal
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Reserve Bank of St. Louis, at one ( 1 ) year intervals during the
course of this ordinance.
The base for the adjustment shall be the Implicit Price
Deflator for Gross National Product aS determined by the Federal
Reserve Bank of St. Louis reported for the first quarter of the
calendar year in which the annual payment is due. This ordinance
is intended to grant use of the public right-of-way only in con -
nection with the uses prescribed hereunder, and any other use of
public right-of-way, including use for previously existing
facilities, is not authorized by this ordinance.
The fee payment shall be exclusive of and in addition to all
general municipal taxes of whatever nature, including but not
limited to ad valorem taxes and special taxes and assessments for
public improvements, except as hereinafter provided.
B. The initial fee of Ten Thousand Dollars {$10,000.00)
shall be paid to the City of Fort Worth upon approval by the City
Council of this ordinance, and the subsequent annual payments
shall be made upon the anniversary of the effective date of this
ordinance. The fee is payable to '°City of Fort Worth" and shall
be directed or delivered to the City Public Utilities
Supervisor/Department of Law.
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C. The fee established in Section 9A hereof shall not be
affected by any relocation of Koch facilities required by the
City pursuant to this ordinance.
SECT ION 10 .
ASSIGNMENT OF RIGHTS
The rights granted by this ordinance inure to the benefit of
Koch and any parent, subsidiary, affiliate or successor entity
now or hereafter existing. The rights shall not be assignable
without the express written consent of the governing body of the
City of Fort Worth, except Koch may assign its rights under this
ordinance to a parent, subsidiary, affiliate or successor entity
without such consent, so long as (1) such parent, subsidiary,
affiliate or successor assumes all obligations of Koch hereunder,
and (2) is bound to the same extent as Koch hereunder. Such
consent shall .not be capriciously or unreasonably withheld,
unreasonably delayed or unreasonably conditioned. Any required
consent is to be evidenced by an ordinance or resolution of the
governing body of the City that fully recites the terms and condi-
tions, if any, upon which the consent is given.
SECT ION 1 1 .
LEASING OR DEDICATION OF FACILITIES
Koch shall not lease any of the public right-of-way it uses
in connection with its system to any non -Koch company without the
prior written consent of the City, PROVIDED that Koch may do the
same without the prior written consent of the City in the
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ordinary course of its business under State and Federal law, so
long as Koch retains responsibility for servicing and repairing
its system.
SECTION 12 .
MISCELLANEOUS
The Public Utilities Supervisor, or his duly authorized
representative, is the principal City official responsible for
the administration of this ordinance, and Koch recognizes that
questions regarding the interpretation or application of this
ordinance shall be raised initially with the designated official.
SECTION 13 .
CUMULATIVE PROVISIONS
This ordinance shall be cumulative of all provisions of
ordinances and of the Code of the City of Fort Worth, Texas
(1986), as amended, except where the provisions of this ordinance
are in direct conflict with the provisions of such ordinances and
such Code, in which event, conflicting provisions of such
ordinances and such Code are hereby repealed.
SECT ION 14 .
SEVERABILITY
It is hereby declared to be the intention of the City
Council that the sections, paragraphs, sentences, clauses and
phrases of this ordinance are severable, and if any phrase,
clause, sentence, paragraph or section of this ordinance shall be
declared unconstitutional by the valid judgment of a court of
competent jurisdiction, such unconstitutionality shall not affect
any of the remaining phrases, clauses, sentences, paragraphs and
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sections of this ordinance, since the same would have been
enacted by the City Council without the incorporation in this
ordinance of an y such unconstitutional phrase, clause, sentence,
paragraph or section.
SECTION 15.
ENGROSSMENT
The City Secretary of the City of Fort Worth is hereby
directed to engross and enroll this ordinance by copying the
Caption and Sections 15 and 16 of this ordinance in the minutes
of the City Council and by filing the ordinance in the ordinance
records of the City.
SECT ION 16 .
PUBLICATION
The City Secretary of the City of Fort Worth is hereby
directed to publish this ordinance in its entirety in the
official newspaper of the City once a week for four (4) consecu-
tive weeks within a period of thirty (30) days after its passage,
as required by Section 2, Chapter XXV, of the City Charter.
SECTION 17.
EFFECTIVE DATE
This ordinance shall take effect and be in full force and
effect from and after its passage and publication as required by
Section 2, Chapter XXV, of the City Charter, and it is so
ordained .
APPROVED AS TO FORM AND LEGALITY:
City Attorney
Date:
ADOPTED: ~ 1
EFFECTIVE: - ti
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ACCEPTED AND AGREED TO by KOCH R~E~`INING COMPANY this
day of 1989.
TITLE: VLCe President, Koch
Refining Compan y
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EXHIBIT A
pag® 4
Cp'~~ ®~ ~®RY' ~P®RT~Il, TEXAS
May 16, 1989
David B. Ladner, Vice President
Everage, Smith, & Farrington & Associates, Inc.
2630 W. Freeway, Suite 100
Fort Worth, Texas 76102
Dear Sir:
TRANSPORTATION AND PUBLOC WORKS OEPARTAtENT
1000 THROCKMORTON STREET
FORM WORTH, TEXAS 76i0Z
870-7800 /AREA CODE 817
I~®CII P'IIEL PIPELINE
We have reviewed your proposed alignment for the subject pipeline In our opinion
the previously proposed alignment along Village Creek is superior to that currently
proposed. Nevertheless, we are willing to recommend the current proposed alignment
to our City Council subject to the following stipulations:
(1) The line must be clearly and frequently monumented. Where the line is placed
by open cut, warning tape must be installed at least two feet above the line.
(2) All pavement crossings must be bored. No patching will be allowed
(3) Koch must sign an agreement to relocate at their own expense for any future
street and/or storm drain projects including street lighting
(4) All pipe must be installed at least five foot deep unless it would conflict with
other utilities. Exceptions must be approved by the City Engineer
(5) Koch must pay annual rental charges reflective of the market value for the
land plus an initial installation fee sufficient to cover the City's inspection
cost.
(6) The location of all line is restricted to the median. No parkway installation
will be allowed.
(7) Installation must avoid planned Water Department projects
(8) Cathodic protection must be provided in a manner which will be least harmful
to existing and proposed utilities.
(9) Installation under creeks must allow for future widening and improvement
All such crossings will be encased.
(10) The Koch Pipeline must agree to indemnify and hold .harmless the City of Fort
Worth, its officers, agents, etc. for any damage caused by or to the pipeline
.-
EXHIBIT B, Page 1
' r
D Ladner '
5-16-89
,page 2
(11) Water Department comments are attached. Note particularly their comments
about the use of the Trinity Boulevard median area. Lee Bradly, Deputy Director,
Water Department, should be consulted as to exact requirements.
I'm sure you understand that approval of your alignment rests with the City Council.
They may require certain public notice procedures. Please advise if you wish us
to pursue the matter.
Sincerely,
~.
G. Dallas Williams, P.E
Deputy Director, Transportation & Public Works
GDWeJRA:am
cc: Gary Sanferre, Director, Transportation & Public Works
Jim Anderson, Chief, Capital Projects
Richard Sawey, Director, Water Department
File
EXHIBIT B, Page 2
IN~'ER-OFFICE-CORRESPONDENCE
Date: Mav 15, 1989
To: John Firing, P.E.
T/PW/Engineering
From HCarl F. Drye
WD/.Project Review/Engineering
Re: ROCH REFINING COMPANY°S PIPELINE PROJECT
T.he following comments are based upon the proposed liquid
pipeline route utilizing aerial photographs furnished by Koch
Refining Company which were received May S.
Sheet i/.9:
The proposed pipeline must be kept clear of sanitarv sewer
M-244"A" (39").
Sheet 2/9:
No water or sanitary sewer lines are planned for the median
of East Chase Blvd. Therefore the proposed pipeline location
in the median is acceptable
Sheet 3/9:
Meadowbrook Blvd. contains a 12" water line behind the north
curb and sanitary sewer L°6230*R (8") appears to be in the
north quarter of the street The proposed pipeline should be
placed to avoid these ~ines.
Sheet 4/9:
The Village Creek WWTP has 36" water and 96" sanitarv sewer
lines at it's entrance (in addition to two major TRA water
lines) Therefore the proposed pipeline must be located well
to the south of it's currently projected route
Sheet S/9: (No comments)
Sheet 6/9: (Missing)
Sheet 7/9:
Because a future intermediate size water line is planned for
the center of Trinity Blvd the proposed pipeline cannot
occupy the same median.
Sheet 8/9:
There is an existing 24" water line in the median of Trinity
Blvd Since the proposed pipeline route also lies in the
median, it must be relocated
Sheet 9/9;
The proposed pipeline must be kept clear of the existing 16"
water line behind the east curb of American Blvd
~~ ` page 112
~~,~ ~ ~--
u~~~
~~~ ~^"' vEXHIBIT B, Page 3lJ J2~ ~ l
'~
page 2/2
May 15, 1989
R®Cil PIPELINE PROJECT
The Fort Worth Water Department utilizes the following procedure
with respect to the placement of water and sanitary sewer lines:
1. I.n street ROWS standard locations are north and east
quarters for water lines and south and west quarters for
sanitary setaer 1 fines .
2. T/PW has decreed that no pressure lines shall be located
under future concrete paved streets. So, in divided
streets the water line is placed in the median 5.5' north
or east of the street center-line, while the sanitary
sewer line is placed in the quarter point of the south or
west traffic lanes
3 Also, to avoid cutting concrete street pavement, a svstem
of double water lines may be employed, with one water
line behind either outside curb
Please consult the marked-up aerial photographs for more details
and do not hesitate to contact the Project Review staff if
further assistance is needed
KF'D .~~~
cc Project File
EXHIBIT B, Page 4
MASTER FILE L ~/ 7/--~ °¢~
ACCOUNTING 2 ~/~~~ ®~ 1L ® ° G. 9' V' ®~L( N~ ~~~a.`v~Y
JRANSPORTATION+PUBUC W~\`K,~t~~j p®~ ~~ _ // ,~O®~~~~ ~J ~®~~~~ s~~ n ~®~
MATER AOtdINISlRAT1UN y /LL// ![~// lj~~(/V l\(t~ (l~(/ /(f(ji (](~j
Ck1EF 7U DC
POLICE AOI
MUMICIPA~
~W~l
iaROSECUtI
E i DATE REFERENCE sue~ECr ORDINANCE GRANTING FORTY-YEAR PAGE
NUMBER FRANCHISE TO KOCH REFINING COMPANY 2
,INI rR8~29%89 G-8189 FOR PLACE~'1ENT OF ITS PIPELINE IN CITY 1 °f
ao RT AUMIN.i STREETS AND RIGHTS-OF-4JAY
yo TTORNE!'.21
RECOPIP1ENDATION
It is recommended that the City Council adopt the attached ordinance granting
a forty (40) year franchise to the Koch Refining Company fora products .pipe-
line to be constructed along and across certain streets and rights-of-way
within the City of Fort Worth.
DISCUSSION
For the past several months, the City staff (Law/Public Utilities Division)
has been negotiating with the Koch Refining Company, hereinafter called
"Koch", regarding the proposed construction of a products pipeline between
the Koch Refinery in Corpus Christi and the D/FW Airport. The proposed pipe-
line route is to be installed in and along approximately 11,125 linear feet
of City right-of-way within the city limits. The purpose of this pipeline is
to provide aviation fuels and products to major airline carrier operations at
D/FW (American and Delta airlines).
The pipeline within the City will be placed in a number of public streets and
roads in the extreme northeastern part of the City near the Airport. It will
be necessary to temporarily use a strip of workspace immediately alongside
the pipeline location during the process of construction. The pipeline will
be built by contract, and the contractor is already at work between here and
the Corpus Christi terminal.
The proposed "street use" agreement between Koch and the City is expressed in
the draft ordinance form (attached), which follows the customary form uti-
lized in pipeline or other utility agreements which provide for the use of
the City's streets and public rights-of-vaay.
The ordinance differs from other similar street-use ordinances in that a
longer term of privilege is recommended (40 years). The reason for this
depart~ure~ from the normal 25-year term is to provide a term consistent with
the 40-year term agreement between Koch and the D/FW Airport Board, which was
approved i n Play 1989.
Under the terms of the proposed ordinance, Koch will make an initial payment
of $10,000 representing the fee for the first year of the forty-year term of
the fra-nchise,,,payable upon the City Council's approval of the franchise.
Thereafter, Koch will make annual payments during each of the remaining
successive t.hi rty-nine years at the rate of not less than $1.?_5 per year per
linear foot of City-owned right-of-way used (an approximate distance of
11,125 linear feet). These annual fees will be adjusted on a percentage basis
and proportionally to the percentage change in the Implicit Price Deflator
for the Gross National Product as determined by the Federal Reserve Bank of
DATE REFERENCE
NUMBER SUBJECT ORDINANCE GRANTING FORTY-YEAR PAGE
8/29/89 G-8189 FRANCHISE TO- KOCH REFINING COP1PANY 2
2
FOR PLACEMENT OF ITS PIPELINE IN CITY or
STREETS AND RIGHTS-OF-WAY
St. Louis, at one-year intervals during the course of the franchise. Without
regard to annual increases due to inflation, this ordinance will produce
additional revenues to the City over the life of the franchise of no less
than $552,343.75.
WWW i
Attachment
APPROVED BY
Cil'Y COUNCaL
~u~ ~s 's~~
~~
Cnty Secletcuy af:ths
City of For! tiioatm. Tzsacm~
SUBMITTED FOR THE
CITY MANAGER'S
OFFICE BY
David Ivor
DISPOSITION BY COUNCIL:
PROCESSED BY
y ^ APPROVED
ORIGINATING ^ OTHER (DESCRIBE)
DEPARTMENT HEAD• Wa(ie Adk~nS CITY SECRETARY
FOR ADDITIONAL INFOR
CONTACT ~j~1ATIQly
/{u
inbau
h
6798 Adopte
®Pd6B18IlC~ lade
gll
g DATE