HomeMy WebLinkAbout4.A. Authorize the appropriate City Officials to Execute and Encroachment Agreement with Magellan Pipeling Company, L.P.obtA Consent Business 4. A.
SHAKOPEE
TO:
FROM:
Mayor and City Council
Mark McNeill, City Administrator
Jeff Weyandt, Assistant City Engineer
DATE: 02/05/2014
SUBJECT: Authorize the Appropriate City Officials to Execute an Encroachment Agreement with
Magellan Pipeline Company, L.P. (D) (Public Works & Engineering)
Action Sought
Authorize the appropriate City Officials to execute an Encroachment Agreement with Magellan
Pipeline Company, L.P.
Background
On September 3, 2013, City Council authorized the rebid of the East Industrial Sewer
Improvements Project No. 2013 -4. Included in these plans, is construction of sanitary sewer under
a Magellan Pipeline.
Attached is an Encroachment Agreement that Magellan requires for any pipeline crossing. This
agreement has been reviewed by our City attorney. The agreement is necessary for the City and
its contractors to construct the sanitary sewer.
Recommendation
Staff recommends approval of the agreement in order to construct the sanitary sewer
improvements under the Magellan Pipeline.
Budget Impact
This project is funded by assessments.
Relationship to Vision
This supports Goal D: Maintain improve and create strong partnerships with other public and
private sector entities.
Requested Action
Authorize the appropriate City Officials to execute an Encroachment Agreement with Magellan
Pipeline Company, L.P.
Attachments: ENCROACHMENT AGREEMENT
(Drafted by & when filed return to: Magellan Pipeline Company, L.P., P.O. Boa 22186, MD OTC -9 (S. Gutluie), Tulsa, Oklahoma 74121-
2186,9181574- 7350.)
ENCROACHMENT AGREEMENT
This Encroachment Agreement ( "Agreement ") is made and entered into by and between
Magellan Pipeline Company, L.P., a Delaware limited partnership, whose address is P.O.
Box 22186, Tulsa, Oklahoma, 74121 -2186, (hereinafter called "Magellan "), and the City of
Shakopee, MN, whose mailing address is 129 South Holmes Street, Shakopee, MN 55379, its
successors, assigns and grantees (hereinafter called "City'.
WITNESSETH:
WHEREAS, City represents and warrants that City owns the right to construct, operate and
maintain a sanitary sewer forcemain, access road and all related appurtenances on all the
certain land (hereinafter "Subject Land "), described on attached Exhibit "A" and made a
part hereof; and
WHEREAS, Magellan is the owner of certain pipelines, pipeline facilities and appurtenances
(hereinafter referred to as the "Magellan Facilities ") and easement rights therefor,
(hereinafter referred to as the "Easement ", whether or not rights were granted in one or more
documents or acquired by operation of law). For purposes of this Agreement only,
"Magellan's Easement Tract" shall be considered to be any area within Fifty (50) feet of
any Magellan Facilities, unless a different right of way tract width is specifically described
in the Easement, in which case such specified width shall define Magellan's Easement
Tract. The land referenced in the Easement includes a portion of the South Half (S /2) of
Section 2, Township 112 North, Range 22 West, Scott County, Minnesota, pursuant to those
certain instruments recorded in the records of said county and state and described as follows:
1) Right of Way Agreement dated July 16, 1954, from Morris E. Knox and Marie J.
Knox, husband and wife; John P. Knox and Dorothy S. Knox, husband and wife;
and Pat Knox and Alvina Knox, husband and wife, to Great Lakes Pipe Line
Company (Magellan's predecessor in title), and filed for record on August 14,
1954 in Book 130 of Deeds at Page 523 of the Scott County Register of Deeds;
and
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2) Gate Valve Permit dated July 16, 1954, from Morris E. Knox and Marie J. Knox,
husband and wife; John P. Knox and Dorothy S. Knox, husband and wife; and Pat
Knox and Alvina Knox, husband and wife, in favor of Great Lakes Pipe Line
Company (Magellan's predecessor in title), its successors and assigns, and filed
for record on August 14, 1954 in Book 22 of Miscellaneous at Page 49 of the
Scott County Register of Deeds; and
3) Partial Release of Right of Way dated December 4, 1961, recorded April 4,
1962 as Document No. 4268, Scott County, MN, from Great Lakes Pipe Line
Company (Magellan's predecessor in title) to Patrick H. Knox and Sons, a
partnership; Morris K. Knox and Marie J. Knox, husband and wife; Patrick H.
Knox and Alvina Knox, husband and wife; and J.P. Knox and Dorothy S. Knox,
husband and wife, releasing a portion of the rights granted in the Right of Way
Agreement and Gate Valve Permit listed above; and
4) Cretex Industrial Park 1st Addition Plat dated June 12, 1978 and recorded June
29, 1978 in the Office of Registrar of Titles, Scott County, Document No. 18152,
signed by Charles A. Gallager and Albert H. Bailey, on behalf of The Cretex
Companies, Inc., owner of The Cretex Industrial Park 1st Addition; and
5) Release of Right of Way Agreement dated December 23, 1980 and recorded in
the Office of Registrar of Titles on December 23, 1980, Scott County, Document
No. 22353 from Williams Pipe Line Company to Benjamin Investment, Inc., a
Minnesota Corporation; releasing the Right of Way Agreement and Gate Valve
Permit listed above; and
6) Agreement for Howe 15t Addition dated January 28, 1981 and recorded July 14,
1981 in the Office of Registrar of Titles, Scott County, Document No. 23039,
from William J. Benjamin, President of Benjamin Investment, Inc., on behalf of
corporation, to Bill M. Howe, President of Howe, Inc., on behalf of corporation;
and
7) Agreement dated July 12, 1984 and July 23, 1984 and filed for Record in the
Office of Registrar of Titles on October 26, 1984, Scott County, Document No.
29778 between Williams Pipe Line Company and Northwestern Transportation
Company; and
8) Right of Way Plat No. 11 dated December 1 and 22, 1994 and filed for record on
December 27, 1994 in the Office of the County Recorder, Scott County,
Document No. 74157.
WHEREAS, for the purposes of this Agreement an "Encroachment" is defined as any use
of the land within Magellan's Easement Tract by someone other than Magellan which
Encroachment Agreement EA-F Xing— 3 -28 -05 —Tenet 7314 Scott County, MN- Agent HCP -Project 13 -568
could interfere with Magellan's Easement rights or could create safety concerns related to
Magellan's Facilities as more fully described in Magellan's General Encroachment
Requirements as set forth in attached Exhibit "B" and incorporated herein by reference.
Magellan does not permit or authorize any Encroachments unless specifically approved
in a written agreement identifying all "Approved Encroachments "; and
WHEREAS, City desires to obtain Magellan's consent for one or more Encroachments on
Magellan's Easement Tract;
NOW, THEREFORE, in consideration of the covenants and agreements herein and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Magellan, subject to the following terms and provisions, hereby consents to
the Encroachments listed below as "Approved Encroachments" described and limited
pursuant to the following specified plan drawings, which were furnished by City to
Magellan ( "Plan Drawings ") and attached hereto as Exhibit "C ":
1) Construction Plans for East Shakopee Industrial Sewer Improvements -2013, by Bolton &
Menk, Inc. dated 08/05/2013, Exhibit "C ", pages 1 -5;
TERMS AND PROVISIONS
1. Approved Encroachments. The Approved Encroachments, as further identified,
described and limited in the Plan Drawings as set forth in Exhibit "C" are limited to the
following:
(a) One 3 -inch diameter sanitary sewer low pressure forcemain line crossing
under Magellan's Easement Tract in accordance with Exhibit `B" requirements,
including the following:
1) Tracer wire
2) Marking tape
3) Minimum of 2 feet of vertical separation
4) Non conductive pipe material (PVC or HDPE)
5) Estimated operating pressure = 20 -30 psi
(b) Construction, operation and maintenance of 15 foot wide access road / driveway
across the surface of Magellan's Easement Tract in accordance with Exhibit "B"
requirements, with minimal changes to existing ground surface elevations. Prior to
equipment crossing, provide weights of the equipment and number of axles as stated in
Provision No. 11 below.
(c) Periodic operation and maintenance activities over, under, and across the
Magellan Easement Tract, subject to giving prior notice to Magellan in accordance to
Provision No. 3 herein, including but not limited to the following as deemed necessary by
3
Encroachment Agreement EA -F Xing -- 3.28.05 —Tract 7314 Scott County, MN - Agent HCP - Project 13 -568
the City, approved by Magellan and in accordance to the terms set forth in this
Agreement:
1) Ingress and egress on access road / driveway, with City authorized
vehicles and equipment.
2) Maintenance and repair of access road/driveway and forcemain, including
but not limited to grading of road, plowing, temporarily stringing hose or piping
across the surface of the Magellan Easement for farcemain maintenance
activities or bypass pumping, etc.
2. No Other Encroachments. Except for the Approved Encroachments as defined in the
Agreement, City shall not create, erect, place or construct any other Encroachment on,
above or below the surface of the ground on Magellan's Easement Tract, or change the
grade or elevation of the ground surface within Magellan's Easement Tract or at any time
plant or allow any trees thereon or cause or permit any of these to be done by others, without
the express prior written permission of Magellan.
3. Magellan On -Site Representative. Exclusive of Saturday, Sunday, and legal
holidays, City shall notify Magellan a minimum of 48 hours in advance of any
Encroachment activities on Magellan's Easement Tract so that Magellan may arrange to
have a representative present. At Magellan's option and at City's sole cost and expense,
Magellan's representative may be on site during all Encroachment activities over or within
ten feet (10) of the Magellan Facilities to confirm that no damage occurs to the Magellan
Facilities. The presence of Magellan's representative or any verbal instructions given by
such representative shall not relieve City of any liability under the Easement or this
Agreement, and will not change the terms of the Easement or this Agreement, which may
only be changed by written agreement by authorized representatives of City and Magellan.
If pipeline, coating, cathodic protection and/or any other repair of Magellan Facilities is
required by Magellan or if the safety of the Magellan Facilities is jeopardized, in
Magellan's sole judgment, City shall stop all construction activities on Magellan's
Easement Tract until said repairs are completed or until any unsafe construction practices
are resolved to the satisfaction of Magellan's on -site representative. Written notification of
such construction activity shall be made to MAGELLAN PIPELINE COMPANY,
Howard White, Coordinator of Operations & Maintenance, 2728 Patton Road, Saint
Paul, MN 55113, Office:(651) 633 -9339, Cell: (612) 759 -9452, Fax: (651) 633 -5464, or
such other representative of Magellan, which Magellan may from time to time designate.
4. Protection of Magellan Facilities. City shall protect the Magellan Facilities if
excavating and backfilling become necessary within Magellan's Easement Tract. If
excavating within 2 feet of any Magellan pipeline or when otherwise deemed necessary by
Magellan's on -site representative, City shall perform any necessary digging or excavation
operations by hand digging. City shall reimburse Magellan for all costs of having a
representative of Magellan on -site during construction activities related to the Approved
Encroachments.
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Encroachment Agreement EA -F Xing - 3 -28 -05 -Tract 7314 Scott County, MN - Agent HCP - Project 13 -568
5. Breach. If either City or Magellan breaches this Agreement and the non - breaching
party commences litigation to enforce any provisions of this Agreement, the reasonable cost
of attorneys' fees and expenses will be payable to the non - breaching party by the breaching
party upon demand, for all claims upon which the non - breaching party prevails.
6. Insurance. City shall procure or cause its contractors and subcontractors to procure and
maintain in force throughout the entire term of this Agreement insurance coverage described
below with insurance companies acceptable to Magellan for work performed related to the
construction of the Approved Encroachments. All costs and deductible amounts will be the
responsibility and obligation of the City or its contractors and subcontractors. Prior to
commencing any activities related to the construction of the Approved Encroachments, the
City must deliver to Magellan certificate(s) of insurance, naming Magellan Midstream
Partners, L.P. and its Affiliates as an additional insured. The limits set forth below are
minimum limits and will not be construed to limit the City's liability:
(a) Workers' Compensation insurance complying with the laws of the State or States
having jurisdiction over each employee and Employer's Liability insurance with limits of
$1,000,000 per accident for bodily injury or disease.
(b) Commercial General Liability insurance on a claims -made form with an annual
aggregate limit of $1,500,000; and for project specific, an annual aggregate of $1,500,000.
Coverage must include premises/operations, products/completed operations, and sudden
and accidental pollution. Magellan Midstream Partners, L.P. and its Affiliates
(hereinafter defined), and its and their respective directors, officers, partners, members,
shareholders, employees, agents, and contractors shall be included as additional insureds.
The term "Affiliate(s)" as used herein means, with respect to Magellan Midstream
Partners, L.P., any individual, corporation, partnership, limited partnership, limited
liability company, limited liability partnership, firm, association, joint stock company,
trust, unincorporated organization, governmental body, or other entity (collectively, a
"Person') that directly, or indirectly, through one or more intermediaries, controls, or is
controlled by, or is under common control with Magellan Midstream Partners, L.P. The
term "control" (including the terms "controlled by" and "under common control with"), as
used in the previous sentence means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of Magellan Midstream
Partners, L.P. or such Person, as applicable, whether through ownership of voting stock,
ownership interest or securities, by contract, agreement or otherwise.
(c) The Sudden and Accidental Pollution can be a separate, stand alone policy, but must
still meet the $1,500,000 minimum limit requirement. If the coverage is written on a
claims -made policy form, the coverage must be maintained for two (2) years following
completion of the work activities related to the Approved Encroachments.
Encroachment Agreement EA -F Xing -- 3 -28 -05 —Tract 7314 Scott County, MN - Agent HCP • Project 13 -568
(d) In each of the above policies, the City or its contractors and subcontractors agrees to
waive and will require its insurers to waive any rights of subrogation or recovery either
may have against Magellan and its affiliated companies.
(e) Regardless of the insurance requirements above, the insolvency, bankruptcy, or
failure of any such insurance company providing insurance for the City or its contractors
and subcontractors, or the failure of any such insurance company to pay claims that occur,
such requirements, insolvency, bankruptcy or failure will not be held to waive any of the
provisions hereof.
(f) In the event of a loss or claim arising out of or in connection with the construction
of the Approved Encroachments, the City agrees, upon request of Magellan, to submit a
certified copy of its insurance policies for inspection by Magellan.
(g) The City shall require all of its contractors and subcontractors for work related to
the construction of the Approved Encroachments to provide adequate insurance
coverage, all to be endorsed with the Waiver of Subrogation wording referenced in
Section (d) above; any deficiency in the coverage, policy limits, or endorsements of said
contractors and subcontractors, shall be the sole responsibility of the City.
7. Indemnification. Subject to the limits of liability in Minnesota law for municipalities,
City will indemnify, save, and hold harmless Magellan, its affiliated companies, directors,
officers, partners, employees, agents and contractors from any and all environmental and
non - environmental liabilities, losses, costs, damages, expenses, fees (including reasonable
attorneys' fees), fines, penalties, claims, demands, causes of action, proceedings (including
administrative proceedings), judgments, decrees and orders resulting from City's breach of
this Agreement or caused by or as a result of the construction, use, maintenance, existence or
removal of the Approved Encroachments and Other Encroachments located on the
Magellan Easement Tract. The presence of Magellan's representative or any instructions
given by such representative will not relieve City of any liability under this Agreement,
except to the extent that such liability results from Magellan's or its representative's gross
negligence or willful misconduct.
8. Damage or Loss. City covenants that:
(a) If at any time, in the sole opinion of Magellan, it becomes necessary for
Magellan, to cross, occupy, utilize, move or remove all or portions of the Approved
Encroachments placed on Magellan's Easement Tract or constructed pursuant to this
Agreement, for any purpose, including but not limited to surveying, constructing new
facilities, maintaining, inspecting, operating, protecting, repairing, replacing, removing or
changing the size of a pipeline(s) and appurtenances on Magellan's Easement Tract and
such activities by Magellan result in damage to or destruction of the Approved
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Encroachment Agreement EA -P Xing— 3 -28 -05 —Tract 7314 Scott County, MN - Agent HCP - Project 13 -568
Encroachments, then repair, replacement or restoration of such Approved
Encroachments shall be at the sole cost and responsibility of City.
(b) If at any time, any encroachments belonging to or permitted by City which are
not authorized by this or another written agreement ( "Other Encroachments ") are found
to be on Magellan's Easement Tract, Magellan may at any time request City to remove
such Other Encroachments, and if City refuses or fails to do so within a reasonable
time, Magellan's may remove them from Magellan's Easement Tract to a location off
of Magellan's Easement Tract at City's expense, unless they are allowed to remain by a
written agreement between Magellan and City. Should such removal activities by
Magellan result in damage to or destruction of the Other Encroachments, then repair,
replacement or restoration of such Other Encroachments shall be at the sole cost and
responsibility of City, and such Other Encroachments may not be repaired, replaced or
rebuilt on Magellan's Easement Tract without a written agreement between Magellan
and City.
(c) If during the exercise of the rights granted by the Easement or by this
Agreement, the Approved Encroachments and Other Encroachments, if any, are
damaged, destroyed or suffer loss of value, City agrees to release Magellan, its affiliates,
and its and their respective directors, officers, members, partners, shareholders,
employees, agents and contractors from and against any and all liabilities, and damages
or losses which may arise as a result of the damage to or loss of use of the Approved
Encroachments and Other Encroachments, if any, caused by Magellan, its employees,
agents and contractors.
9. Magellan Rights. Magellan and City agree that the existence of the Approved
Encroachments or this Agreement does not constitute a waiver of Magellan's rights under
the Easement. Magellan hereby reserves and City hereby grants and confirms all of
Magellan's rights, title and estate as set forth in the Easement.
10. The terms and conditions of this Agreement will constitute covenants running with the
land and be binding upon and inure to the benefit of the parties hereto, their successors,
assigns and grantees. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one instrument.
This Agreement shall become effective upon its complete execution by the parties hereto.
11. Construction Equipment — Weight Limits — Cover Requirements. Prior to
beginning work within Magellan's Easement Tract, City must have written approval from
Magellan for the safe weight limits of equipment (including loads) to be used on the
Magellan Easement Tract. City shall fumish to Magellan information as to equipment
weights (loaded weights) which will be operating within Magellan's Easement Tract or
which will be working near or driving over the Magellan Facilities, so that Magellan can
perform pipeline stress calculations to determine safe weight limits for construction
Encroachment Agreement EA -P Xing— 3.28 -05 - Tract 7314 Scott County, NIN - Agent 11CP - Project 13 -568
equipment (including loads) working near or driving over the Magellan Facilities. Based on
such weight information provided by City, Magellan will, in a timely manner, calculate the
minimum compacted cover that will be required to be provided and/or maintained by City
over the Magellan Facilities during City's activities over or in the vicinity of the Magellan
Facilities in order to provide adequate protection and safe operation for the Magellan
Facilities and City agrees to comply with such weight limit requirement.
IN WITNESS WHEREOF, the parties have set their hands on the dates expressed below.
MAGELLAN PIPELINE COMPANY, L.P. CITY OF SHAKOPEE
By Its General Partner, Magellan Pipeline GP, LLC
By Its Undersigned Authorized Signatory:
By: _
Name:
Date:
2013
By:
Name: Brad Tabke
Title: Mayor
Date: . 2013
By:
Name: Mark McNeill
City Administrator
Date: .2013
Encroachment Agrocment EA -F Xing - 3 -28 -05 - Tract 7314 Scott County, MN - Agent HCP - Project 13.568
STATE OF OKLAHOMA
SS
COUNTY OF TULSA
Before me, the undersigned, a Notary Public in and for the county and state aforesaid, on this
day of , 2013 personally appeared , to me
personally known to be the Authorized Signatory for MAGELLAN PIPELINE GP, LLC, a
Delaware limited liability company, who being duly sworn did acknowledge to me that he/she
executed the foregoing instrument on behalf of said limited liability company as the free and
voluntary act and deed, for the uses, purposes and consideration therein set forth.
Witness my hand and official seal.
My commission expires:
STATE OF MINNESOTA
SS
COUNTY OF SCOTT
Notary Public
Before me, the undersigned, a Notary Public in and for the County aforesaid, on this day
of 2013, personally appeared Brad Tabke and Mark McNeill to me
known personally to be the Mavor and City Administrator of the Citv of Shakopee, who
being duly sworn did acknowledge to me that he/she executed the foregoing instrument on behalf
of said City of Shakopee as the free and voluntary act and deed of said city, for the uses,
purposes and consideration therein set forth.
Witness my hand and official seal.
Notary Public
My Commission Expires:
Encroachment Agreement EA -F Xing— 3 -28-05 —Tract 7314 Scott County, MN -Agent HCP -Project 13 -568
EXHIBIT "A"
SUBJECT LAND
South Half (S /2) of Section 2, Township 115 North, Range 22 West, Scott
County, MN, as further described and shown in the attached Exhibits.
10
Encroachment Agreement EA -F Xing —3-28-05 — Tract 7314 Scott County, MN- Agent HCP -Project 13 -568
EXHIBIT "B" TO ENCROACHMENT AGREEMENT, I of 4
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EXHIBIT °B" TO
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Page 6 of 17
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of 17
AGREEMENT. z of a
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Page 8 of 17
General Encroachment Requirements— (L.P.— 1 /1 /07)
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Page 9 of 17
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Page 10 of 17
EXHIBIT "B" TO ENCROACHMENT AGREEMENT, 3 of 4
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Page 1 I of 17
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L -- R a I .11 CIE1.11 $29, 11 L
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EXCA VATION P'6.dR MACE LL \S'
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Page 14 of 17
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k 0, u , mMvc,1x.P:rwnl vossry
ur Re
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Pace
EXHIBIT "C'
Page 1 of S
CITY OF SHAKOPEE, MN
CONSTRUCTION PLANS FOR
EAST SHAKOPEE INDUSTRIAL SEWER IMPROVEMENTS - 2013
CITY PROJECT NO 2013 -4
SHCETINDEX
SHE ET NO.
JULY, 2013 TTOE
I!11s ! SIIEFMINVn�1fiEpTUVf�'E R+ i iNIEA WOEn
+
STANDARD CONSTRUCTION DETAILS
— f I CC11&5
UTILITY PLAN ANO PROFILES
PROJECT LOC'A'TION Io.0 su(rtrRruwsn vux Araort¢
.- -1` cmoF Vluoeff gEMOVAISANDRESTORAION
` a«.ran }}J} flEMOVµ6RE?iOMl14N
(9` TRAFFIC CONTROL
S' \
ii l.LifKCONiPttrUr�
33 PoRiYR[CMCAETC WYY +.1N[NOIRF.i4lM }YfIGLL
CM OE SM OPEE, MN
IN W TH HMM(S ST
S
SHUOPEE, MN 55379
1y3}f y3199A? A,
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;�
BOLTON
+2
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1 e ♦�a
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TITLE SIYEi X35
EXHIBIT "C"
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