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HomeMy WebLinkAbout06709 ORD - 11/28/1962IMS:JKH:11 -28 -62 AN ORDINANCE, AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE AN AMENDMENT TO A CONTRACT FOR THE SALE AND PURCHASE OF NATURAL GAS FOR THE SUPPLY OF THE NATURAL GAS DISTRIBUTION SYSTEM OF THE CITY BY CHANGING THE DELIVERY POINT FROM A POINT ON GOLLIHAR ROAD AT WEBER ROAD TO HOUSTON NATURAL GAS CORPORATION'S OLD BROWNSVILLE ROAD CHECK STATION NEAR LEXINGTON BOULEVARD, AND ELIMINAT- ING THE DELIVERY POINT NEAR THE OSO SANITARY SEWER PLANT, AND FURTHER AMENDING SAID CONTRACT SO AS TO ELIMINATE THE OPTION TO CANCEL SAID SUPPLY CONTRACT PRIOR TO MARCH 1, 1966, AT 8:00 A.M., A COPY OF WHICH MODIFICATION AGREEMENT IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. WHEREAS, HOUSTON NATURAL GAS CORPORATION AND THE CITY OF CORPUS CHRISTI ARE ENTERING INTO A CONTRACT OF SALE FOR THE SALE TO THE CITY OF THE GAS DISTRIBUTION SYSTEM AND CERTAIN TRANSMISSION LINES OF HOUSTONNATURAL GAS CORPORATION AND AS A PART OF SAID AGREE- MENT, A MODIFICATION OF THE CONTRACT FOR THE SALE AND PURCHASE OF NATURAL GAS BY THE CITY, EFFECTIVE MARCH 1, 1961, IS HEREBY AGREED TO BE MODIFIED: NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF CORPUS CHRISTI, TEXAS: L SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED AND DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXECUTE AN AGREEMENT FOR THE MODIFICATION OF THE CONTRACT FOR THE SALE AND PURCHASE OF NATURAL GAS FOR THE SUPPLY OF THE NATURAL GAS DISTRIBUTION SYSTEM OF THE CITY BY CHANGING THE DELIVERY POINT FROM A POINT ON GOLLIHAR ROAD AT WEBER ROAD TO HOUSTON NATURAL GAS CORPORA- TION'S OLD BROWNSVILLE ROAD CHECK STATION NEAR LEXINGTON BOULEVARD, AND ELIMINATING THE DELIVERY POINT NEAR THE OSO SANITARY SEWER PLANT, AND FURTHER AMENDING SAID CONTRACT SO AS TO ELIMINATE THE OPTION TO CANCEL SAID SUPPLY CONTRACT PRIOR TO MARCH 1, 1966, AT 8:00 A. M., A COPY OF WHICH MODIFICATION AGREEMENT IS ATTACHED HERETO AND MADE A PART HEREOF. w 6709 SECTION 2. THE NECESSITY FOR IMMEDIATELY EXECUTING THE MODIFICATION AGREEMENT HEREINABOVE MENTIONED PROMPTLY AS A PART OF THE TRANSACTION OF THE PURCHASE OF THE GAS DISTRIBUTION SYSTEM AND CERTAIN TRANSMISSION LINES BY THE CITY FROM HOUSTON NATURAL GAS CORPORATION 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 AN EMERGENCY 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 PASSAGE, IT IS ACCORDINGLY SO ORDAINED THIS THE 28TH DAY OF NOVEMBER, 1962. MAYOR ATTES THE CITY OF CORPUS CHRISTI, TEXAS CITY SECR TARY APPROVED AS TO LEGAL FORM T(((H ///IS THE 28TH DAY OF NOVEMBER, 1962: CITY ATTORNEY Y THE STATE OF TEXAS COUNTY OF NUECES THIS AGREEMENT, made and entered into 11962, by and between HOUSTON NATURAL GAS CORPORATION ( "Houston Natural 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 ( "City "), Nueces County, Texas, a municipal corporation, W I T N E S S E T H: WHEREAS, Houston Natural and City have heretofore entered into a contract for the sale and purchase of the natural gas re- quirements to the City gas distribution system for the period of five years effective March 1, 1961; WHEREAS, said contract described in the immediately pre- ceding paragraph was amended February 1, 1962, said contract as amended being hereinafter called "the 1961 Contract "; WHEREAS, on even date hereof the parties hereto and Corpus Christi Municipal Gas Corporation ( "Municipal Gas ") have entered into a Contract of Sale which requires a change in the points of delivery by Seller to Buyer under the 1961 Contract; and WHEREAS, Houston Natural and City desire certain other amendments and agreements with respect to the 1961 Contract; NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, and other valuable consideration, the parties hereto agree as follows: 1. During the term of the 1961 Contract while Houston Natural is making deliveries of gas to the Buyer for the require- ments of the System as set forth in the Contract of Sale: A. Gollihar Road at Weber Road will not be a point of delivery under Article II of the 1961 Contract and there will be substituted therefor as a point of delivery the site of Seller's old Brownsville Road check station (located ad- jacent to and near the northeasterly boundary line of Lexing- ton Boulevard and Southwest of Cliff Maus Field). This last named delivery point will be a common delivery point under the 1961 Contract and under the 1962 Contract described in the aforesaid Contract of Sale. B. The site near the Oso Sanitary Sewer Plant on Ennis Joslin Road will be eliminated as a delivery point under Article II of the 1961 Contract. 2. The distribution system of Buyer referred to in the 1961 Contract does not, and is not to be construed as, including the System referred to in the Contract of Sale. 3. Buyer waives all of its rights under that portion of Article VII of the 1961 Contract which provides: "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 exer- cise 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 13 1966, at 8:00 A.M." 4. If the 1961 Contract or this ratification thereof is held invalid prior to March 1, 1966 for any reason by a court of last resort, or by a lower court with no appeal being taken, the Buyer, if it asks for competitive bids for a contract for the supply of gas, will ask for competitive bids for a contract of supply for only)n�thhaat portion of the distribution system it owns other than they Sys en described in the Contract of Sale and n will ask for competitive bids only for the unexpired term of the (2) 1961 Contract and for no longer period. If the Seller should be the successful bidder for such unexpired term it agrees that in no event will the prices charged by it be more than the prices that would have been applicable under this 1961 Contract. 5. Except as here amended, the 1961 Contract is hereby ratified and confirmed and is in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in multiple originals this day of November, 1962. HOUSTON NATURAL GAS CORPORATION By ATTEST CITY OF CORPUS CHRISTI, TEXAS By ATTEST: APPROVED as to legal form this day of , 1962. (3)