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06-E ATMOS Reciprocol Agrmt DRAFT RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, APPROVING AND AUTHORIZING THE EXECUTION OF A RECIPROCAL AGREEMENT ON DAMAGE TO DISTRIBUTION FACILITIES BETWEEN THE CITY OF PARIS AND ATMOS ENERGY CORPORATION, MID. TEX DIVISION; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. F:A TTORNEY\RESWORK\CURRENTI A TMOS Reciprocal Agrmt Res February 7, 2006 WHEREAS, the City Council has been made aware of the need for a mutual understanding between the City of Paris and A TMOS Energy Corporation, Mid- T ex Division, on the most efficient and effective way to handle damages to facilities during excavation activity; and, WHEREAS, in order to establish such mutual understanding it is deemed to be in the best interests of the City of Paris and A TMOS Energy Corporation, Mid. Tex Division to enter into a Reciprocal Agreement on Damage to Distribution Facilities; and, WHEREAS, the form of agreement for such mutual understanding attached hereto as Exhibit A should in all things be approved, and City Manager should be authorized to execute the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble of this resolution are hereby in all things approved. Section 2. That the Reciprocal Agreement on Damage to Distribution Facilities between the City of Paris and ATMOS Energy Corporation, Mid-Tex Division be, and the same is hereby approved in accordance with the terms and conditions of said agreement attached hereto as Exhibit A. Section 3. That the City Manager of the City of Paris be, and he is hereby authorized and directed to execute on behalf of the City of Paris said Reciprocal Agreement on Damage to Distribution Facilities. Section 4. That this resolution shall be effective from and after the date of passage. PASSED AND APPROVED this 13th day of February, 2006. Curtis Fendley, Mayor -r ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: John D. Lestock, Assistant City Attorney "-- -r" ATMOS energy The City of Paris, Texas P.O_ Box 9037 Paris, Texas 75461-9037 January 16, 2006 Re: Reciprocal Agreement on Damage to Distribution Facilities The City of Paris, Texas (Cityrrown) and Atmos Energy Corporation, Mid-Tex Division (Mid-Tex) both operate facilities within the public rights-of-way of Cityrrown. On occasion, our respective employees damage those facilities during excavation activity. In order to avoid future misunderstandings concerning the responsibility for the cost of repairing facilities damaged during excavation activities, Cityrrown and Mid- Tex are entering into this reciprocal agreement concerning property damage claims. If Mid-Tex employees damage the facilities owned by Cityrrown within the public rights-of-way of Cityrrown, Cityrrown agrees to repair the damage to its facilities at no cost to Mid-Tex. Mid-Tex agrees to notify the appropriate official of Cityrrown as soon as reasonably possible after the occurrence of such damage. If Cityrrown employees damage the distribution facilities owned by Mid-Tex within the public rights- of-way of Cityrrown, Mid-Tex agrees to repair the damage to its facilities at no cost to CitylTown. CitylTown agrees to notify the appropriate personnel of Mid- Tex as soon as reasonably possible after the occurrence of such damage. This reciprocal agreement will remain in full force and effect until one party gives written notice to the other party of termination at least 30 days prior to the proposed termination date. Any such termination will not affect either party's obligation to pay for any damage that occurs prior to the termination date. If this reciprocal agreement is acceptable to CitylTown, please have both copies of this letter executed by the appropriate CitylTown official and return one fully executed copy to me. AGREED TO AND ACCEPTED THIS 13th DAY OF February ,2006 The City of Paris, Texas By: Title: City Manager Printed Name: Tony N. Williams EXHIBIT A AI.OS energy The City of Paris, Texas P.O. Box 9037 Paris, Texas 75461-9037 January 16, 2006 Re: Agreement on Damage to Distribution Facilities Attached, please find two versions of letters of agreement regarding damages to facilities. As stated in the attached agreements, The City of Paris, Texas (CitylTown) and Atmos Energy Corporation, Mid-Tex Division (Mid-Tex) both operate facilities within the public rights-of-way of CitylTown. On occasion, our respective employees damage those facilities during excavation activity. In order to avoid future misunderstandings concerning the responsibility for the cost of repairing facilities damaged during excavation activities, Mid- Tex desires to execute an agreement with Cityrrown concerning property damage claims. Mid-Tex values the relationship that we have developed with CitylTown and desires to continue to foster a positive working relationship. Therefore, it is the preference of Mid- Tex to execute a reciprocal agreement whereby each entity would, at its own expense, repair damages caused by the other. However, an alternative agreement is also enclosed under which each entity would repair damages caused by the other and invoice the other for the cost of those repairs. Whichever agreement is executed, that agreement will remain in full force and effect until one party gives written notice to the other party of termination at least 30 days prior to the proposed termination date. Any such termination will not affect either party's obligation to pay for any damage that occurs prior to the termination date. Please review both of the enclosed documents and determine which is acceptable to CitylTown. Then have the selected agreement executed by the appropriate CitylTown official and return one fully-executed copy to me. Please contact me with any comments or questions about this matter. Atmos Energy Corporation Mid-Tex Division 7909 Traders Circle Greenville, Texas 75402