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Home My WebLink About06069 ORD - 01/31/1961IMS:JKH :1 -31 -61 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON .BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE AN AMENDMENT TO THE CONTRACT FOR SALE AND PURCHASE OF NATURAL GAS REQUIREMENTS OF THE CITY OF CORPUS CHRISTI GAS DISTRIBUTION SYSTEM, WHICH CONTRACT IS BETWEEN THE HOUSTON NATURAL GAS RP COORATION AS SELLER AND THE CITY OF CORPUS CHRISTI AS BUYER, HERETOFORE AUTHORIZED BY ORDINANCE OF JANUARYI8, 1961, BY AMENDING PARAGRAPH 2 OF ARTICLE VII OF SAID CONTRACT SO AS TO PROVIDE THAT PAYMENT FOR GAS PURCHASED BY THE CITY UNDER SAID WHEREAS, ALL OF THE CITY OF CORPUS CHRISTIIS GAS REQUIREMENTS HAVE, FOR THE PAST MANY YEARS, BEEN PAID SOLELY FROM REVENUES DERIVED FROM THE SALE OF GAS BY THE CITY THROUGH ITS GAS DISTRIBUTION SYSTEM TO ITS CONSUMERS AND NONE OF THE PAYMENTS FOR GAS HAVE BEEN MADE FROM FUNDS RAISED BY TAXES; AND WHEREAS, IT IS TO THE ADVANTAGE OF THE CITY TO LIMIT THE SELLER TO THE RIGHT TO LOOK FOR PAYMENT FOR GAS SOLD UNDER THE GAS SUPPLY CONTRACT WITH THE CITY, SOLELY TO REVENUE OF THE CITY GAS DISTRIBUTION SYSTEM; AND WHEREAS, THE HOUSTON NATURAL GAS CORPORATION, UNDER THE TERMS OF THE CONTRACT OF JANUARY 18, 1961, IS AGREEABLE TO SUCH A STIPULATION: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS :CHRISTI. TEXAS: SECTION 1. THAT THE CITY MANAGER BE AND IS HEREBY AUTHORIZED AND DIRECTED TO EXECUTE, FOR AND ON BEHALF,OF THE CITY OF CORPUS CHRISTI. AN AMENDMENT TO SAID CONTRACT OF JANUARY 18, 1961. A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THAT THE NECESSITY FOR IMMEDIATE AUTHORIZATION OF AMENDMENT TO THE ABOVE MENTIONED GAS SUPPLY CONTRACT TO EVIDENCE THE UNDERSTANDING OF THE SELLER'WITH THE CITY THAT PAYMENTS FOR GAS SUPPLIED TO THE CITY UNDER SAID CONTRACT WILL BE SOLELY FROM REVENUES OF THE GAS SYSTEM OF THE CITY CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE (CITY COUNCIL, AND THE MAYOR, HAVING DECLARED SUCH EMER- GENCY AND NECESSITY TO EXIST, HAVING REQUESTED THE SUSPENSION OF SAID CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT THIS ORDINANCE TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS P MkAGE. IT IS ACCORDINGLY PASSED AND APPROVED THIS / DAY of Ail 1961. ATTE CITY SECRET Y APPROVED AS TO GAL FORM THIS `i / DAY OF . 1961: CITY A *TOAIVEY MAYOR THE CITY OF D US CHRIS . TEXAS Is • THE STATE OF TEXAS COUNTY OF NUECES This agreement, made and entered into by and between Houston Natural Gas Corporation, a corporation organized and existing under and by virtue of the laws of the State of Texas, with its principal office in Houston, Harris County, Texas, and City of Corpus Christi, Nueces County, Texas, a municipal corpo- ration, W I T N E S S E T H: WHEREAS Houston Natural Gas Corporation and the City of Corpus Christi have heretofore entered into a contract for the sale and purchase of the natural gas requirements of the City of Corpus Christi's gas distribution system for the period of five years effective March 1, 1961, and an ordinance approving said contract having been passed on third reading and approved on January 18, 1961, and thereafter same was executed on behalf of the City of Corpus Christi by its City Manager, and WHEREAS, such contract effective March 1, 1961 replaces an earlier contract terminating February 28, 1961, by which Houston Natural Gas Corporation has been supplying the City of Corpus Christi with its gas distribution system requirements for the past twelve years, and WHEREAS, all of the City of Corpus Christi's gas re- quirements have always been paid solely from revenues derived from sale of gas by the city through its distribution system to consumers and none of the payments for gas have ever been made from funds raised by taxes, and WHEREAS, Houston Natural Gas Corporation recognizes that revenues from the City of Corpus Christi's gas distribution system will be sufficient to pay for all gas supplied by Houston Natural Gas Corporation under said contract, and said company is willing to look for payments under said contract to 0 0 be made solely from revenues of the gas system of the City of Corpus Christi, and for the said contract to be supplemented to so provide, NOW, THEREFORE, in consideration of the premises and the mutual covenants in said contract contained, the parties hereto have agreed as.follows: That Paragraph (2) of Article VII of said contract is amended to read as follows: y 11(2) For all gas delivered during the preceding calendar month or billing period during the term hereof (measured at a pressure base of 14.65 p.s.i.a.), and adjusted for BTU content as herein otherwise provided, Buyer shall pay Seller, solely out of revenues derived by Buyer from the operation of Buyer's gas distribution system, on or before the twenty -fifth (25th) of each calendar month by its check and at the office of the Seller in Corpus Christi, Nueces County, Texas, based upon the following schedule of gas prices: Unit Price per MCF During First Contract Year (3/1/61 through 2/28/62) 20¢ During Second Contract Year(3 /1/62 through 2/28/63) 20¢ During Third Contract Year (3/1/63 through 2/29/64) 20¢ During Fourth Contract Year(3 /1/64 through 2/28/65) 23¢ During Fifth Contract Year (3/1/65 through 2/28/66) 24.5¢ "The unit prices stated in the foregoing price schedule are exclusive of and do not include any ad- justment required by reason of changes in taxes under the provisions of Article VIII of this contract. "It is agreed that Buyer shall have the option to terminate this contract at the end of the fourth contract year by delivery to Seller of written notice of its exercise of such option at least one (1) year prior to the end of such fourth contract year. This option to cancel and terminate this contract shall apply only to Buyer, and if Buyer fails to exercise such option, this contract shall continue in full force and effect until March 1, 1966 at 8 A.M. "It is further agreed by and between the parties hereto that Seller shall never have the right to de- mand payment for gas supplied under this contract out of any funds raised or to be raised by taxation." IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in duplicate originals this day of January, 1961. ATT 'ST '� `cldx/r►' HOUSTON NATURAL GAS CORPORATION r By - o n Wimberly, President CITY OF CORPUS CHRISTI, TEXAS By —7F Cy anager ATTEST: City Secretary APPROVED as to legal form this day of January, 1961: C y A orney --Dfrec or o nance THE STATE OF TEXAS COUNTY OF HARRIS • BEFORE OHNtH. undersigned Presidentauthority, of Houston Natural per- sonally app Gas Corporation, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of said corporation. GIVEN under my hand and seal of office this day of January, 1961. Notary Public in�,�hd for Harris County, `texas THE STATE OF TEXAS I COUNTY OF NUECES BEFORE ME, the undersigned authority, on this day per- sonally appeared HERBERT W. WHITNEY, City Manager of the City of Corpus Christi, Texas, a municipal corporation, known to me to be the person and official whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein set forth, and as the act and deed of said City. GIVEN under my hand and seal of office this the day of , 1961. o ary c n an or Nueces County, Texas -3- 1 -� • .t CORPUS CRRISTI, TEXAS r TO 4 MEM6ERS OF fiiE CITY COUNCIL CORPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EMERGE NC Y CLAUSE OF THE FO E•� GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLU- TION SMALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED AND TNA,T SYGM ORDINANCE OR RESOLUTION SMALL BE tAD AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIRE- MENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCEDp OR AT THE ;PRESENT MEETING OF THE CITY COUNCIL. RE$PFCTFULLY, mAymw THE CITY PUS 06 TI; TEXAS THE CHARTER RULE WAS SUSPENDED By THE FOLLOWING VOTE: ELFROY DING JAMES L. BARNARD O - MRS. RAY AIRNEART % r jr JOSEPH 8. DY11N ,v PATRICK J. DUNNE R. - -A. HUMBLE USE LOZANO, -'"SR. 4A - - � - THE ABOVF ORDINANCE WAS PASSED BY T /HE /FOLLOWING VOTE: ELLROT KING o -- - JAMES L. BARNARD MRS. RAY AIRNEART ✓ JOSEPH B. DUNN PATR 1 CK ,J. DUNNE R.-A. HUMBLE - GABE LOEANO, SR. 's �s � j