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HomeMy WebLinkAbout06817 RES - 02/20/1963EE 2-12 -63 A RESOLUTION MAKING FINDINGS REGARDING THE COST OF TREATED WATER FOR THE PERIOD OCTOBER,1, 1961, TO OCTOBER 1, 1966, AS PROVIDED IN THE CONTRACT BETWEEN REYNOLDS METALS COMPANY AND THE CITY OF CORPUS CHRISTI DATED OCTOBER 5, 1951; AND DECLARING AN EMERGENCY. WHEREAS, THE COUNCIL HAS HEARD AND TAKEN INTO ACCOUNT ALL OF THE REPORTS, OPINIONS, STATEMENTS AND DATA SUBMITTED TO THE COUNCIL CONCERNING THE RE- DETERMINATION OF THE COST OF TREATED WATER FOR THE PERIOD OCTOBER 1, 1961, TO OCTOBER 1, 1966, BY THE CITY OF CORPUS CHRISTI AND REYNOLDS METALS COMPANY AS PROVIDED IN THE CONTRACT BETWEEN REYNOLDS METALS COMPANY AND THE CITY OF CORPUS CHRISTI DATED OCTOBER 5, 1951; AND WHEREAS, REYNOLDS METALS COMPANY, BY LETTER TO THE CITY DATED FEBRUARY 12, 1963, HAS AGREED THAT THE COST OF TREATED WATER, AS RE- DETERMINED UNDER SUCH CONTRACT, IS 10.3 CENTS PER 1,000 GALLONS FOR THE PERIOD OCTOBER 1, 1961, TO OCTOBER 1, 1966, A COPY OF WHICH AGREEMENT OF • REYNOLDS METALS COMPANY IS ATTACHED HERETO AND MADE A PART HEREOF: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THE MATTER OF THE RE- DETERMINATION OF THE COST OF TREATED WATER BY THE CITY OF CORPUS CHRISTI AND REYNOLDS METALS COMPANY HAVING BEEN CONSIDERED BY THE COUNCIL, IT IS FOUND THAT THE COST OF WATER TO BE FURNISHED BY CITY TO REYNOLDS METALS COMPANY AT CALALLEN, TEXAS, UNDER THE CONTRACT BETWEEN REYNOLDS METAL COMPANY AND THE CITY OF CORPUS CHRISTI, COMPUTED BY USING AN INCREMENTAL COST BASIS AND LIMITING THE COMPUTATION TO THE COST OF RAW WATER AND THE TREATMENT THEREOF, IS 10.3 CENTS PER 1,000 GALLONS FOR THE PERIOD COMMENCING OCTOBER 1, 1961, AND ENDING OCTOBER 1, 1966. SECTION 2. THE NECESSITY FOR IMMEDIATE DETERMINATION OF THE COST OF WATER UNDER THE REYNOLDS METALS COMPANY CONTRACT TO CLARIFY THE BILLINGS OF THE WATER DIVISION OF THE CITY OF CORPUS CHRISTI UTILITIES DEPARTMENT CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY • REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESO- LUTION 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 COUNCILp AND THE MAYOR, HAVING DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST, HAVING REQUESTED THE SUSPENSION OF SUCH CHARTER RULE AND THAT THIS RESOLUTION BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH RESOLUTION TAKE EFFECT AND BE IN FULL FORCE AND EFFECT AND AFTER ITS A S GE IT IS ACCORDINGLY SO RESOLVED, THIS THE DAY OF `- 1963 -- -_..... MAYOR ATTEST: THE CITY OF CORPUS CHRISTI, T S I CITY S CRETARY APP VED AS TO LE FO�M TH THE DAY OF :1963= CITY ATTORNEY 9�ed I�a� REYNOLDS METALS COMPANY REYNOLDS METALS BUILDING RICHMOND IB, VIRGINIA AIR MAIL Mayor and Council of the City of Corpus Christi Corpus Christi, Texas Gentlemen: February 12, 1963 our letter to the Mayor and Council dated June 1, 1959, and Resolution No. 5375 adopted by the Council on June 3, 1959, acknowledged and confirmed our studies that the cost of water delivered to us at Calallen, Texas, under the Reynolds - City Contract dated October 5, 1956, should be 10.25 cents per 1,000 gallons for the five year period beginning October 1, 1956 and ending October 1, 1961. At the request of the City Manager, members of your administrative staff and of our accounting department have been studying the cost of water for the five -year period October 1, 1961, to October 1, 1966. Following the formulas used in the 1959 study for the cost of raw water and the treatment thereof and updating such formulas to the current period it is our con- clusion that the cost is 10.30 cents per 1,000 gallons. This letter is to evidence our agreement to the re- determined cost of 10.30 cents per 1,000 gallons for the period October 1, 1961, to October 1, 1966. We have heard reports that during the current period there may be adjustment between the Lower Nueces River Water Supply District and the City of Corpus Christi in the price to be paid by the City to the District for water from the Wesley Seale Reservoir. Therefore we further agree that should such adjustment occur during the period October 1, 1961, to October 1, 1966, the cost of 10.30 cents per 1,000 gallons heretofore agreed to shall be increased by an amount per 1,000 gallons equal to the adjustment in the City - District rates per 1,000 gallons. Mayor and Council of the City of Corpus Christi Page 2 February 12, 1963 We are exploring with San Patricio Municipal Water District the economic feasibility of the construction by the District of a raw water line from which the District would furnish us raw water to substitute for treated water we now purchase from the City. We recognize that through lower volumes city cost of treated water might be adversely affected by such substitution. Therefore, we agree that should our use of treated water be curtailed through the substitution of raw water before October 1, 1966, the City cost as stated above shall be redetermined by use of the same formulas referred to above with appropriate adjustments to volumes. Such redetermined cost would be effective for billing to us as of the first of the month following the substitution of raw water for treated water and would continue in effect until October 1, 1966. `lours very truly, REYNOLDS METALS COMPANY W/H W. Monroe Wells, o Vice President CC: Mr. H. M. Fugate, Jr. Mr. Dwight Keller Mr. Joel Denton I i • CORPUS CHRIST TEXAS p DAY OF � , 19,.� d TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING ORDINANCEg A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, . AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, MAYOR THE CITY OF CORPUS CHRISTI, S THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: BEN F. MCDONA LD TOM R. SW4NTNER DR. JAMES L. BARNARD JOSE R. DELEON M. P. MALDONADO W. J. ROBERTS JAMES H. 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