Railroad Track Design-Build Agreement

EX-10.13 23 c13581exv10w13.htm RAILROAD TRACK DESIGN-BUILD AGREEMENT exv10w13
 

Exhibit 10.13
         
 
      “Nationwide Service”
800 ###-###-####
262 ###-###-####
Fax ###-###-####
VOLKMANN
       
            RAILROAD
  Engineering — Construction – Maintenance    
                          BUILDERS
  14625 West Kaul Avenue — Menomonee Falls, WI 53051    
 
Railroad Track Design-Build Agreement
Owner Cassco Amaizing Energy LLC, 1201 E. 7s’ Street, Atlantic, IA 50022
Design-Build Contractor: Volkmann Railroad Builders, Inc (VRB)          Date: September 29, 2006
Whereas, Owner desires to have VRB design and build a complete and functional railroad track system to serve Owner’s proposed facility known as Cassco Energy ethanol plant located in Atlantic, lowa, Owner and VRB agree as follows:
Phase One “Conceptual Drawings”: Owner will provide site map and topo phic survey of proposed site at no cost to VRB. Based upon information provided by Owner as to required railcar capacity, types of railcars, and service needs, VRB will furnish a Conceptual Plan indicating a possible track layout This plan is for discussion purposes and does not guarantee railroad approval and is subject to final field survey, drainage considerations, utility conflicts, construction drawings, local permits, and railroad approvals. A track construction cost estimate will be provided. for Owner’s budgeting purposes.
Phase Two “Construction Drawings”: After preliminaty approval of the Conceptual Plan, VRB will provide detailed track construction drawings for final approval. VRB will coordinate with the operating railroad, the facility designer and builder, and the site civil engineer to establish final layout and elevations. Final plans will include both plan and profile views of the complete track facility. Note: Environmental and geotechnical investigation/evaluation is not part of VRB’s scope of work,
Phase Three “Construction”: Owner and VRB agree that a track construction agreement will be based upon the final construction drawings to determine quantities of track, derails, turnouts, road crossings, etc. to be built, and that the prices will be based upon VRB cost schedule, plus 10% for overhead and profit (see attached Track Construction Exhibit A for sample cost calculation). VRB will endeavor to obtain the best possible value when purchasing materials for the project. Railroad requirements, local market conditions, and rail material industry conditions can cause costs to vary significantly in different locations and at different times. VRB will coordinate with the owner and plant builder’s schedule to assure that tracks are completed when needed. Owner will pay VRB on a monthly basis for progress including material purchased for the project. VRB will obtain approval of track construction from operating railroad to assure the Owner that service will be provided to the facility. VRB guarantees all material and workmanship for one year after completion of project and will correct any defects (excluding damage by others) at no cost to the Owner.
         
Costs are as follows:
  Phase One Conceptual Drawings   $1,650 per site (2 sites included)
 
  Phase Two Construction Drawings:   $14,600
 
  Phase Three Track Construction:   Cost plus 10%
 
  Rail yard grading plan:   $6,200
This agreement and attachment(s) Track Construction Exhibit A are agreed to by Owner and VRB. If Owner decided to terminate the project after Phase One is comple(ted, it shall not be responsible for any costs beyond Phase One and likewise for Phase Two. If Phase Two is completed and Phase Three is approved by Owner, it is hereby agreed that Track Construction Agreement will be entered by both parties, its successor, or assigns.
         
Owner: CassCo Amaizing Energy
  Volkmann Railroad Builders, Inc.
         
By:
  /s/ Jack Ryan   Rick Volkmann
Name: Jack Ryan     Title: Project Coordinator
  Rick Volkmnn, President

 


 

                                             
 
  Track Construction — Exhibit A                        
XYZ Ethanol
                    Date:     09/26/06          
Project:
  new ethanol plant                     Track Ft.=     19125          
                                             
                                             
Quantity
      Wt   Description   Cost   Total   Per Unit
728.28
  tons rail     112     39   ft lengths   $ 780.00     $ 568,058.40          
11769
  7’ Industrial Grade           19.5   “ tie spacing   $ 43.00     $ 506,076.92          
23538
  tie plates           11”   DS   $ 6.60     $ 155,353.85          
980.8
  pair joint bars           4   hole   $ 45.00     $ 44,134.62          
3923
  bolts w/washers               each   $ 2.00     $ 7,846.15          
15300
  tons of ballast           8   “ under ties   $ 16.00     $ 244,800.00          
10908
  tons of sub-ballast           6   “ x 22’ x 2800#   $ 0.00     $ 0.00          
294.2
  kegs 5/8 spikes           3   per plate   $ 88.00     $ 25,892.31          
11769
  anchors           12   per rail   $ 1.50     $ 17,653.85          
 
              Sales tax       $ 0.04     $ 62,792.64          
 
              Sub-total Material           $ 1,632,608.74     $ 85.37  
 
 
  Labor, Equipment, Fuel, Per Diem   per foot of track     29     $ 554,625.00          
 
  Travel Expenses               per foot of track     3     $ 57,375.00          
 
                  VRB Cost per Track Foot           $ 2,187,233.74          
 
                  Overhead + Profit     10 %   $ 443,184.25          
 
                              $ 2,630,417.98          
 
                  Track Cost per Foot           $ 137.54  
                                             
                                             
Switch Items
                                       
1
  AREMA switch package     11   number   $ 19,500.00     $ 19,500.00          
1
  switch ties-new               sets   $ 5,544.00     $ 5,544.00          
9.2
  tons rail     112     39   lengths   $ 780.00     $ 7,187.98          
160
  tie plates           DS   size   $ 6.60     $ 1,056.00          
12
  pair joint bars           4   hole   $ 45.00     $ 540.00          
48
  bolts               each   $ 2.00     $ 96.00          
120
  Tons ballast               ton   $ 16.00     $ 1,920.00          
4
  kegs               per switch   $ 86.00     $ 344.00          
600
  anchors               per switch   $ 1.50     $ 900.00          
1
  Ergonomic switchstand             $ 1,100.00     $ 1,100.00          
 
              Sales tax         0.04     $ 1,483.52          
 
              Sub-total Material           $ 39,671.50          
 
 
  Labor, Equipment, Fuel, Per Diem               $ 7,000.00          
 
  Travel Expenses                           $ 600.00          
 
                  VRB Cost           $ 47,271.50          
 
                  Overhead + Profit     10 %   $ 4,727.15          
 
                                      $ 51,998.65  
 
                  Switch Cost Each     $ 51,998.65          
 
  Track Construction — Exhibit A                        
Track Construction Exhibit A