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