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HomeMy WebLinkAbout02193 ORD - 12/09/1947AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER OF THE CITY OF CORPUS CHRISTI, TEXAS, TO EXECUTE A CONTRACT FOR AND ON BEHALF OF THE CITY WITH SINCLAIR REFINING COMPANY, A CORPORATION, FOR THE FURNISHING OF WATER TO SAID COMPANY AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY C0UNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS SECTION 1. That the City Manager of the City of Corpus Christi, Texas, is hereby authorized and directed to execute for and behalf of the City a contract with Sinclair Refining Company, a Maine Corporation, for the furnishing of water to said company, a copy of which contract is attached hereto end made a part hereof and reads as follows, to -wit: 2193 THE STATE OF TEXAS COUNTY OF NUECES WHEREAS, the City of Corpus Christi, Texas, a municipal corporation, is now the owner of its water distribution system and is engaged in supplying water for industrial and domestic purposes; and in oonductiag such business, said City impounds water used for such industrial and domestic purposes in a reservoir located at or near Calallen. Texas, from which water is and will be oonducted in mains and distributed to its users; and WHEREAS, Sinclair Refining Company is at present operating a refinery plant for the manufacture of gasoline and other petroleum products, which said plant is located in a westerly direction from the Southern Alkali Plant, and on property bounded on the south by Tribble Lane, and said Sinclair Refining Company will require large quantities of water in order to properly operate said plant; and WHEREAS, the said City of Corpus Christi, Texas, is desirous of furnishing to Sinclair Refining Company, its successors and assigns. water to be used in connection with the operation of said plant; NOW, THEREFORM, THIS CONTRACT AND AGREEMENT this day made and entered into by and between the City of Corpus Christi, Texas, acting, by and through its duly authorized officers, hereinafter called "City", and Sinclair Refining Company, a Maine corporation, acting by and through its duly authorized officer, hereinafter called Company"; WITNESSETH In consideration of the premises and the sum of Ten and No/100 ($10.00) Dollars Cash in hand paid to said City by said Company, the receipt of which is hereby acknowledged and the many benefits which shall accrue to said City by the operation of said Company's plant and the further consideration of the increased income to said City by reason of the sale of water to said Company, its successors and assigns, it is agreed as follows: I. TREATED WATER AND PRICE; Said City agrees to sell, subject to the conditions hereinafter set forth, such treated water as shall be demanded by the Company for use by Company in the operation of its said plant at the following rates A. If the Company should not consume more than five million gallons of treated water in any one islander month during the period ooversd by this contract, the Company shall pay to City for all treated water consumed during suoh calendar month at the following rates: 100,000 gallons up to 250,000 gallons of water per month - @ 24¢ per 1,000 gallons. 250,000 gallons to 500,000 gallons of water per month - a 201 per 1.000 gallons. 500,000 gallons to 1,000,000 gallons of water per month - @ 18¢ per 1,000 gallons. 1,000,000 gallons to 1,500,000 gallons of water per month @ 16¢ per 1,000 gallons. 1,500,000 gallons to 2.000,000 gallons of water per month @ 15¢ per 1,000 gallons. 2,000.000 gallons to 2,500,000 gallons of water per month @14¢ per 1.000 gallons. 2,500,000 to 5,000,000 gallons of water per month - @13¢ per 1,000 gallons. B. If the Company should comsume more than five million gallons of treated water in any one calendar month during the period covered by this contract, but not in excess of seven and one half million gallons of treated wester during such calendar month, the Company shall pay to City for all treated water consumed by it during such calen- dar month at the rate of 12 cents per one thousand gallons; or C. If the Company should consume more than seven and one half million gallons of treated water in any one calendar month during the period covered by this contract, but not in excess or ten million gallons of treated water during such calendar month, the company shall pay to City for all treated water consumed by it during such calendar month at the rate of 11 pants per one thousand gallons; or D. If the Company should consume in excess of ten million gallons of treated water in any calendar month during the period oovered -2- by this oontract, Company shall pay City for all treated water consumed during such calender month at the rate of 10 cents per one thousand gallons• Said treated water shall be delivered to said Company at the place designated in paragraph III hereof. I-A. The schedule of charges for treated water, as hereinbefore set out in Paragraph I, is subject to the provisions of this paragraph, so that under certain circumstances a reducsd rate may be obtained by the Company. Tho Company intends to build water storage tankm and reservoirs so that several million gallons of water can be stored, and whish will enable the Company to tale water between the hours of tan (10) o'clock p.0 and six (6) o'clock a.m. It is to the advantage of the City that heavy industrial loads be taken between such hours and for the Company to tab its load during the oft hours will greatly faci- litate the general operation of the City water systsa. If the Company shall take thirty million gallons or more of water in any calendar month during the period of this contrast, then the water which is taken between the hours of ten (10) o'clock p.m. and six (6) o'clock a.m. during ouch ronth shall be paid for by the Company at the roto of Wine Cents (.09) per 1,000 gallons, and the water taken at other times during the month shall be paid for at the rates established in paragraph num- bered I. If said Company dams not taloa thirty million gallons or mora of water per month then for each month that it failo to take such amounts the rates as set out in paragraph numbered I shall apply regardless of the ties during; whish said water is taken* Il. TERM OF CONTRACT' This agreement shall continue in fares and effect so long as the Company, its successors and assigns, aha11.00sttnus to. -maintain and operate the refinery herein referred to, or ether plant or plants rear the City of Corpus Christi, and the City of Corpus Christi shall continue to maintain and operate its own water distribution system and is engaged in supplying water for industrial and domestic purpose' but not for longer than a period of fin (5) years from the data hereof provided this oontreot may be renewed for an additional five (5) year period in oonforaance with the terms to be agreed upon at the time of renewal by the City Manager. III. pLARE OF plumy OF MAUD WAT1yRe The City now operates and maintain. three main pipe lines for the distribution of water from Calallen. Texas. to the City of Corpus Christi. for distribution of its treated water to domestic and industrial consumers in and neer the City of Corpus Christie Teres. Tho City agrees to deliver to the Company treated water from such gains of the mama type and quantity aa is fur- nished by it to such domestic and industrial odsisumers. and the Company to take off the mains of the City at a mutually satlsfaotory paint, along Tribble Lane. which is on the southerly side of the Company's prop- erty, and the Company agrees to receive and accept delivery of such treated water at such point, or in aoaordance with the terms and conditions of this contract. It is understood that City shall furnish taps for commotion by said Company to said mains. IV. MNASUR M&NT er wATERt The treated water deliverable hereunder Mall be measured by suitable water meter or meters of standard make, same to be furnished, installed, and kept in repair by the City an the property of Company at or near the place of delivery. Checks as to the accuracy of the mater or meters shall be made semi-annually. city shall notify Company in writing ton days in advance of all semi-annual checks and tests in order that Company may have a representative present as a witness. Semi-sxuwal tests as to the accuracy of the meter or esters installed by the City shall be at the City's expense. If either City or Company at coy time shall motity the other that it desires • speoial test of any meter, the parties shall cooperate to secure an immediate verification of the aocuraoy thereof and point obssrwtions of any adjustments. If upon any such special testo said mater is round to be less than 2 per cent high or low, the out of such tests shall be paid by the party requesting them; otherwise. by the other party. each party shall give to the other notice of the time of all mush tests offioielly in advance of the holding of the tests so that the other -4- party may have a representative present. If upon any test City's sister or meters are found to be not more than 2 per Dent high or low. previous readings of such meter shall be considered oorrsot in computing the velure of water delivered by City to Company. but such meters shall be at oris properly adjusted to record soourately. If on any tests City's motor or meters shall be found to be inaoourats by an amount exceeding 2 per omit, then amy previous readings of such meters shall be corrected for any period which is definitely known or agreed upon, but no suoh correction shall extend back over a period beginning more than fifteen days prior to the time when such inaccuracy won first made known by either party to the other. If for any reason City's meter or meters are out of service so that the volume of eater deliverable hereunder cannot be ascertained or computed from meter readings thereof, the water delivered during; the period such meter or meters are out of ser- vice shall be estimated and agreed upon by the parties hereto upon the basis of the best data available. v. PRSSSURSt At the point of delivery of treated water. City shall et all time' do everything that it Dan reasonably do to maintain a pressure in such amount that the sane shall not be less than forty pounds per square Lnoh at suoh point and shall undertake to maintain an average pressure of fifty pounds per square inch] provided that failure to maintain the pressure as herein set out shall not be considered as a breach of this contract. VI. 4UALITY OF TREATED 4ATERs Inasmuch u Company is desirous of obtaining water of uniform quality and low hardnsaa. it is understood that the City shall at all tines do everything that it can reasonably do to maintain the quality of treated water needed by said Company, and will exert rwssonabla effort to treat the water so that the oaloium carbonate hardness will not be greater than the solubility of oaloium carbonate at the temperature at which the water was treated] provided that failure to so maintain the quality of treated water will not subject the City to damages. nor be considered a breach of this contract. VII. UNTR ATPD AATN& AND PRICE; For the ooaiiderations herein stated. City awes to sell, subject to the conditions hereinafter set forth, suoh untreated water as shall be demanded by Company at the following rate( 3-1/2 bents per one thousand gallons for all water delivered by City to Coppany during the period oovered by this *antraet. Said untreated water shall be delivered to Company at the plaoe designated in Paragraph VIII hereof. VIII. RAGE OF Dail* / CP UNT&&A1 D The plans of delivery of said uutrosted water to said Company is fixed at the present site of the reservoir of City at or near Calallan. Texas. the sans being the present delivery point of water into the mains which transport treated eater to the city limits of Corpus Christi, Texas. Said Company shall, at its solo oost and expense. should it desire untreated water. ley its pipe lines from its point of use of said untreated water to said delivery point where said water shall bo measured and metered by City by the same devices, in the same manner, and subjeot to the same terms and conditions as set forth in imragraph IV hereof applioabie to treated water. All eaters necessary for measuring untreated water. only, shall be furnished by Company. but the oast of installation, maintenance, and repair of sena shall be borne by City. All Dost and/ expense in pumping or transporting said untreated water from Calallen • to Company's plant site, including the construction and maintenance of pimping stations and pips linos, sh&i1 be borne solely by Company. City will furnish to Company a treat or paroel of land adequate and suitable for establishing and maintaining a pumping station at Calallen at the point of delivery of said untreated eater by City to Company, as, it. end when palled for by said Company. Should City change the location of its reservoir from whioh water is drawn for the use of its inhabitants within said City*a boundaries from its present location at or near Cal.. alien, Sexes, then, in such event. said Company shall have the right to lay its mains or pips lines to receive such untreated water, it any, to -6- snob different point or points of delivery, and said City shall furnish Said water to said Company' upon the saw terms and conditions and for the same pries as specified herein for the delivery of untreated water at the reservoir at or near Calallen, Texas. Ix. PAYAISMT5g Payments for any and all water sold by said City to Company shall be sada monthiy at the office of the City alter Depart.. mint at the City ball of Corpus Christi, Texas, and all bills therefor shall be paid on or 'before the 2Uth day of the sucoeeding month after same accrued. atatom•nts shall be Trailed to said Company at Corpus Christi, Texas, on or before the 10th day of 'soh month, showing the volume of water and the sus of money due City for water sold and delivered to Company during the prwoedin6 calendar month. X. P810AUTItSi This *entreat is entered into and the vele of this rater is node Subjeot at all times to the prior rights of domestic and industrial consumers within the oity limits of Corpus Christi, Texan, to the supply of water, and in the event at any time the supply of water shall be so diminished as to injure the then present supply of water to said City's domestic or industrial consumers, then, in such event, this contract shall b•oome suspended& provided, however. upon the aoqui- aition by the City of other and further supplies of water, so that said City would have at its disposal a surplus amount of water over and above the total ourrent needs of its domestic and industrial consumers, then this contract shall, at the option of the Company, again beoame immediately effective and said City will be oblii;ated to sell Company such water as it can furnish and is demanded by said Company in the operation of its plant. rrovided that should the available fresh water supply be insufficient at any time to supply the demands of all persons entitled thereto, the City shall, after taking care of the current needs of its domestic and industrial consumers within the City of Corpus Christi, furnish the Company herein fresh or treated water from the City's supply in the same proportion as is received by other refineries and/or industrial -^7- plants outside said city limits of the City of Corpus Christi, said ratio to be determined by the average daily total water requirements of the Company during its first thirty days of full operation as it shall bear to the average daily total water requirements of other refineries and/or industrial planta outside the city limits of said City which are being supplied fresh or treated water, when they are operating full capacity, provided further. however, the City will not be required to comply herewith should to do so require that tho uity breach any contract heretofore entered into by said City. RI. INGRESS AND MESS; The right of ingress and egress is hereby granted by City to Company or its agents, employees. or represen- tatives serves the lands or premises of Clgy at its reservoir near Calallen, Texas, or wherever such reservoir is otherwise located, for the purpose of laying its mains, pipe lines, and For the construction of pumping stations. and for the installation of suoh other equipment as may be necessary in order for Company to obtain delivery of said water trot Cityj provided the looatioa of such mains, lines. pumping stations. aa,d other equipment shall be designated by the City. nI. AIy&D ICTIONS OK RESALE, It is distinctly understood and agreed that said ocmparpr shall not deliver or sell water obtained under this oontraot to any person, fila or corporation without first obtaining oonasnt from the City Manager for such sale or delivery of water, exoept said O_pany is to have the right to sell and deliver water to ships, steamers, freighters or any other oraft delivering to or receiving tonnage from said Company. FRED MINIMUM OBLI(AXIQl i This contract imposes no obligation upon Company to purohaee any minimum amount of water in any calendar month throu;hout the period of this contrsot, but Cowpony shall pay to City during the life of this oontrtet tho minimum sun of twenty-five -8- 025.00) Dollars per month, irrespective of whether any water is used or not, OROS to bs payable on or before the 20th day of each month for the preoedia, calendar month, provided, however, if the volume of water consumed by Company at the applicable rate hereinabove set forth during any calendar month amounts to more than Twenty-five (425.00) Dollars, than such fixed monthly sum of Twenty-five (+25.00) Dollars shall be credited upon the amount due. However, if the volume of water conadiaed by Company at the applicable rate hereinabove met forth durin,; any calendar 7aunth amounts to loss than the fixed sura of Twenty-five 025.00) Dollars, then, in addition to the payment for such water, Company shall pay the difference between the amount due City for water actually oon- sumod Rad the sum of Twenty-five 025.00) Dollars. aid spa shall be payable at the time and plswe hereinabove provided for. XIP. RIGHT OF CO4PAY?Y TO TRVINATE CONTRACTS If the pleat or plants of Company should for economic or any other reason or reasons bosoms inoperative or ■hut down for a period of at least twelve consecutive months, then, in such event, Cawpi y may, by giving City thirty days' written notioe, addressed to it by registered nail at Corpus Christi, Texas, cancel and terminate this contract In its entirety. If Company should elect to give and actually gives City said written notioe, then, after the expiration of thirty days from the date said notice is mailed to City, as above provided, this contract shall, in all its provisions, become null and void. rv. ILECENCYe It is further understood and agreed by and between the parties hereto that City shall have the right and privilmgs, in oase of calamity, public emergency, or public necessity. to male a temporary connection to spy and 411 water mains or water pipe lines which may be laid by Company under and by virtue of the terms and provisions of parr graph VIII hereof= provided, however, that in the event such temporary oo mo tion is node. City shall reimburse Company for the amount of water used by City at the rats of 3$ Dents per one thousand gallons for all water so coed by City. -9- IVI. FO$CE MAJEURJi If City should be prevented, wholly or in part, from fulfilling its obligations under this oontract by reason of an Act of God, unavoidable accident, acts of enemy, strikes. fires, floods, governmental restraint or regulation, or any other oases of Force Majeure, than the obligations of City to deliver water to Caapael. as hereinabove provided, shall be temporarily suspended during the continuation of such Force Majeure. No damage shall be reooverable by Company from City by reason of the temporary suspension of deliveries of water due to any of the causes above mentioned. If the City's obligation should be affeoted by any of such causes, City shall promptly notify company in writing, giving full particulars of such force Ln;jeure as soon as possible after occurrenee of the cause or pauses relied upon. XVII. AZSIG'NM ILITYu This contract shall be binding upon the parties hereto, their sucoecsors and assigns. IN WITNESS WHEREOF, the parties hereto have oaused theme pre- sents to be duly executed this day of , A.A. 1947. CITY OF CORPUS CHRISTI, TEXAS Mayor ATTEST: C0JTERRIOIED, City rseretary d{ontroller APPROVE) AS TO LEGAL FORM: City Attorney ATTESTS Assistant Secretary -10.. SINCLAIR REFINING COMPANY BY Vice President STATE OF TEXAS Is. COUNTY OF NUICFS BEREE iiE, the undersigned authority, on this day personally appeared :esley E• Seale, Mayer of the City of Corpus Christi, Texas, Laces to me to be the peracn and offior whose new is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, and as the Lot and deed of the said City of Corpus Christi, Texas, a municipal corporation, and in the capacity therein stated. OIVn4':: UNDER T '.HAND AND SEAL OF OFFICE, this day of P. 1947. My oommtssion expire.: Notary Public in and for Nueoes County, Texan. STATE OF tflo YORK 9a. COUNTY OF MO YORK AFORE HE, the undersigned authority, on this day personally at;poared , Vice 'resident of 31no1air Refining Company, known to ma to be the person and officer whose name ie sub- ecribed to the furogoinii instrument, and acknowledged to no that he executed the same for the purposes and considerations therein expressed, and as the apt send deed of said Sinclair Refining Company, a oorporation, and in the oapaoity therein stated. GIVEN UNDER VY HAND AIA) SEAL OF OFFICE., this day of A. j. 1917. MY oommisaion expirest Notary Public in and or New cork County. New York JLCTIOid 2. The fact that it is necessary to have an adequate contract governing the supple. of water to ',Sinclair Refining Compe.ry and the fact that a water supply is necessary for said company's oper- ations creates a public emergenc;;• and public imperative necessity requiring the suspension of the Charter rule 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 several mectings of the City Council, a. ,d the ;..ager Navin: declared that such public erierbenoy and imperative necessity exist, and havinL requested that such Charter rule be suspended, and that this ordinance be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT Id z1CCOrDINdLy 20 ORL i1S' D. P S$;3D iUD _^PPROV±D this A. D. 1947. day of , City of Cornus Christi, Texas City Secretary APPROVED AE TO 7 'G.'iI, PO^r`: Corpus Christi, Texas , 064-c-' eUti. - y 194_2 TO T1IE TELB3RS OF THE CITY COLT'.CIL Corpus 'Christi, Tcxe.s Gentlemen: For the reasons set forth in the emergency- clause of the foregoing ordinance, 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 meetir_z of the City Council. Respectfully, J,YOR City of Corpus Christi, Texas The Charter rule was suspended by the following vote: Wesley Seale George R. Clark, Jr. 0 John . Ferris! ,:YR. R. henry Joe T. Dawson The above ordinance was ps sed by the followinL vote: ;resley :;. aeale Georbe R. Clark, Jr. John A. Ferris 3. +. henry Joe T. Dawson 03