Consider approval of Resolution 08-093 authorizing the Mayor to execute a contract with BP Amoco Chemical Company through which BP pays for the engineering and construction of sewer system extensions which will be donated to City.  Authorization is also requested for the Mayor to execute a contract with HDR Claunch & Miller to perform the engineering for such sewer extensions.  Said engineering will be part of the BP payment for total engineering and construction.

BP wishes to connect sanitary sewage flows from its Texas City chemical facility to the City's sanitary sewer system.
In accordance with City Ordinances, customers requesting connection to the City sewer system which requires construction of new sewage conveyance piping and associated equipment must fund all engineering and construction involved in such construction of new sewage conveyance assets.

As required by City Ordinance, upon completion of such construction of new conveyance all sewer system components not on customer's property are donated to City. City assumes ownership of such sewer system components and operates and maintains such assets.

This project involves approximately 9,400 linear feet of 4" diameter sewer force main (which will be engineered and constructed at the expense of BP) which will be constructed and donated to City.

The estimated cost of engineering for this project is $140,000.00. The engineering will be performed by HDR Claunch & Miller Engineers in accordance with City and industry standards. The engineering will be performed under a contract between the City and HDR Claunch & Miller. BP preferred this arrangement to assure that the system will be constructed to City construction standards and operating requirements since the system will become the property of the City. BP will reimburse the City for the expense of this engineerin contract--$140,000.00.

The estimated construction cost of the portion of the system to be donated to City is $352,500.00 and will also be paid by BP.   The total estimated cost to be paid by BP for the sewer system portion to be donated to the City is $492,200.00 (engineering and construction).

These estimated costs are shown in the attached Exhibit A. The remaining $97,850.00 estimate in Exhibit A is for construction of sewage conveyance system components on BP property which will remain the property of BP and will be operated and maintained by BP. BP is also to pay for this construction.