ST9302-CS010817 MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To: Jennifer Armstrong, Director of Finance
From: Ken Griffin, P.E., Director of Engineering/Public Works ]~
Date: August 17, 2001
RE: Sandy Lake Road ST 93-02/TXU Invoice
Enclosed with this memo is a copy of an invoice from TXU Lone Star Pipeline Company in the
amount of $38,556.64. Since January 2000, I have been in conversation with representatives of
TXU concerning the invoice for surveying and miscellaneous expenses related to the relocation of a
16" gas transmission line at the intersection of Moore Road and Sandy Lake Rd. During the
original design of Sandy Lake Road, it was anticipated that the 16" gas line would be relocated. It
was also anticipated that the relocation would be at the expense of TXU. Because this was a
transmission line, representatives of TXU stated that the cost to relocate would be a City expense.
They then provided an estimated cost of $318,700 for the relocation of the 16" gas transmission
line. In my reading of the franchise agreement with the City of Coppell, it was my opinion that the
relocation should be covered under the franchise agreement. I then provided information to our
attorney, Pete Smith, seeking a legal opinion. Pete's opinion was that TXU would be required to
relocate the gas transmission line unless it was located in a private easement, which predates the
dedication of the roadway. I then requested TXU to provide me copies of their easement, which
they had acquired to install the 16" gas transmission line.
In March 2001, TXU provided a copy of their easement dated June and July of 1915. They also
reduced the original invoice by $4,689.04. During subsequent conversations with TXU, I noted that
the July 1915 easement references S.H. 40 which is now Sandy Lake Road. While they crossed a
portion of Sandy Lake Road, their position is that the lowering would have required them to lower
approximately 720 feet of the 16" gas line. They also note that the original S.H. 40 right-of-way
was approximately 60 to 65 feet So therefore, their position is that they did have a separate
easement outside the limits of the S.H. 40 / Sandy Lake Road right-of-way. It is difficult to
determine if the drainage structure proposed for the Sandy Lake Road improvements which was in
conflict with the 16" gas line was actually within the original 60 to 65 foot right-of-way of old S.H.
40 or if it was within other right-of-way acquired as property developed adjacent to Sandy Lake
Road.
In an effort to resolve this issue, TXU reduced the original invoice and in an effort to resolve this
issue I am recommending that we pay TXU $33,867.60 as compensation for their work involved
with the proposed relocation of the 16" gas line. This is $284,832.40 less than what it would have
cost to relocate the gas line. The gas line did not need to be relocated with this project because I
offered a design of a transitional drainage structure that would go under the existing gas line
without the need to relocate. The transitional structure concept was one I had used on a previous
project. It worked very well in this situation.
If you should have any questions I will be more than happy to provide additional backup or
answer any questions.
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"