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Home My WebLink About02447 ORD - 01/18/1949AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY IMEAGER TO EXECUTE A CONTRACT WITH HOUSTON IATURAL GAS CORPORATION WIEBEIN HOUSTON NATORAL GAS CCRPORA- TION AGREES TO SETS. TO THE CITY A PORTION OF ITS GAS DISTRIBUTION SYSTBU LOCATED IN THE CITY AND THE CITY AGREES TO SELL TO HOUSTON NATURAL GAS CORPORA- TION A PORTION OF ITS GAS DISTRIBUTION SYSTEM, PROVIDING FOR TEE PAnMiTS TO BE MADE BY TEE CITY UHDER SAID CON- TRACT; AND DECLARING All M ERGENCY. BE IT ORDA iM BY THE CITY COUNCIL OF THE CITY OF CORPUS CimISTI, TEM. SECTION 1. That the City Manager is hereby authorised and directed for and on behalf of the City to execute a contract with Houston Natural Gas Corporation, wherein the City agrees to sell to Houston Natural Gas Corpora- tion a portion of its gas distribution system and Houston Nataral Gas Cor- poration agrees to sell to the City a portion of its gas distribution systan, a copy of said contract being attached hereto and hereby made a part of this ordinance. Z`l�7 THE STATX OF TBS M j COU19TY as XUVA= )j UM A , mach alai sabred into by and between Y40UBTON NATURAL CAS CQRPURATWN, a corporation organized and existing suss and by virtce of the lava of the afata of Tarns, with tta Ptfnaipal office in Alenstwa. Harris County, Taws, heretaaftm dasigaat- ad First Party, and the CITY OF CAMPUS CHRISTI, a municipal cor- Poretion. betabudler designated Second Party. w ITNESSET13: WHEREAS. First Party to -gaged to the sale and dtatribu- tion of gas to doemstie consamars within cestata purticas of tba limlte of the City of Corpus Christi, having inatrlled such gas distribution sy- atenl Within Rub ara" prior to a- intorporattoa of the eama as a Part Of Said Gttyl and Bsaand Party is -gaged In the Sala and distribn- tion of gas to domeWe. eoramareiel and iudmabNal aware is the raunain- tae Portions of theGity of Corpse Ghrisfla and the parties recognise OM uuwe are certain areas within tiro eerporab lflolb of tiro City of Carpus Christl that can be mare advaratogeoasly and eeoaomicaHy served by First tarty than by Seeaad Party, While. on the otber Sand, there are certain area, tow being served by First Party wblch, from As operating paid of view, shouts be ineorpar- &tad is the gas distribution system of Second Party. and it L the desire of the parties to daHae and allacata the respective areas in wbich each ahall operate its gee distribution system so there w111 be no parausifng of Unme, or overlapping of syatemse and bas aGard the pages the opportmAty to better serve the tahabtisats of tha city; and WIZEArAS, in order to accomplish such purpose Second Pasty desires to nagdre from First Pang a par*= of Its gas distribution Sy- sbm now located in certain areas now being ssrved by First Party and to transfer and asaiga to Fftst Forty a portion of its gee distribaiioa syetam Pow located, oweed and betas operated by Second Party to cortM. a&. areas. wMch SOA. Purchase amt transtar the parties hereto are w itiicg to make far the eonsider"M wad "%so to the torms and moons herafnafhir setforthi TWi.RNWOSM, in aonsideranoo at the eaveaaeb beret. aoa- tataed and the nom at One (S LOO) Dolls in hand paid by each to the other. the ""44 of tahich 18 hereby acknwrl"pd, the paWea bersto have mu- tually coven tad and agreed as follows: A. First Party hereby agrees to Convey to Seca warty ice gas distRltaa#an system and its txntracts va its cestomsrs, dsseaeatly esa- ceded to ice system, in the areas designated as Dion. S. 4. S. and 6. eha in "cream" on the mmp attached harsto, to which rstaresce to bare wade. for the sunk Of One hundred 69venty-f{ve Thuusand Three Hundred and Fourteen and 89/M ($175,314.89) Dollars, same being the agraad replace- ment coat of the gas distribnHoa system located is such erase ea of lie - cember 31. 1948, Plus the cost of any additions sad eatemtons and loss the replan VeOut cast of say delatiesa er retirements in said arses from said daft to tau data of consummation of this agreement cad the couvayance of said property to Second ^arty as hereinafter Provided. IL 8"Ond a-arty hereby agrees to assign ami convey to First Tarty iiat gas distribWaa system and its coatractr wit ib aaatemm, praeeatly conaseted to its system is Arens designated as "A" in No. 1. (C91e place). "19" In No. 1. (Lamar Park Mae. 1 ad 2). ' "G" in Ito. 1. (Alameda Estates NO- 3), and "A" in No. 2, (Cuba Addf i*. as slwtm in "red" an said map attached hereto. for the son of Thirty -f— abno.aod Two 13,mdrad aad El— sod 86/1" (8341E1i.26) DuSars, being the agreed replaeemaat coat of the system basted in sash ateae Us of December 31, 1948. plus the east of nay additions and Odwastone and lose tba repla,esuat cost of coy -E- deleifoaa or ret;reaM" to said areas from Said daft m the date of can. IV. First Party shall hsve and reserve a first lion upon the a" dietribution system and property to be 6onveyed to the second party on- to the foil purchase price tb®renf has been paid. and as additional me- C'Mity for the Payment of each purchase price First 'Party shell have and to hereby granted a first 4nd pesos linen aPn the gross reveunea to be do- rived from the operation of the gam diatribaticn system to be conveyed to Second hasty. and Second Party agrees to set much revenmem aside in a Special Lund to the amount and extent necessary from which payaieat of faah asaual iaslailment VIOL iatereet 00-033. date First Party on the bad- 0=0 of the Pucchsae Price, cam and Shall be made. It being ana stood that in the event the aaan d gross revaanea ahaald not equal tba amaoat of 6w annual lastalimeat and interest due on tiro purehaee price, as hare- taabove provided. Second party shall ttuwertbeless pay Ruch fall soma, installment pins iateresti on as otter land, all gross mama1 raveavea in excess of the amount neoassery to retire the principal and fatarost of -3- Bash an®at installment shall Sot be covered by such Usu and such gacess may be used by Second warty for any purpose. The conveyance to b aae- cuted by First d arty to Second (,arty as herelaafipr provided Shell re- serve and provide for the above mentioned Bloat. Y. It to dtotitufly understood and agreed between the parties hereto that this agraataent shell not become effecttve or binding unless and until First Party has been granted a valid franchise. in accordance with its amended application dated December 39, 1949. and now pending before the City Council Of the City of Corpus Christi, to Continue to sell mar distribute gas to domestic Sad Commercial consumers in the limited area described in the proposed ordinance granting each franchise and attached to said amended application, which area is designated in "yel- low "and "red" on said map attached hereto, and unless Second party eseCUUS and the people of C07PUS Christi approve proposed contract for the purchase of the City's natural gas requirements now, pending before the City Council of the City of Corpus Christi, which contract was sub - mitted by First - arty Upon Second ?srty's request. Upon the granting to First °arty of such franchise and the executes and approval of such gas contract the parties hereto shall take immediate and appropriate steps to sonsamacate this agreement and shell promptly execute the necessary warranty convsy&WAS or bills of sale, each te the Other, vesting lathe yard" berets the respective properties to be transferred in aecoada —e with tips provisions hereof. 1N WITNESS WHEREOF, the parties hereto have assented this instrument in duplicate origimis this day of January, 1949. HOUSTUN NATURAL GAS CUHFURATWN ATTEST. By Stgnt 9juy. CITY OF C-ORPUS CEIRMT16 TEXAS ATTEST. By- Citq &tansgar. �BBUVEII: Y. SECTION 2. That the sums to be paid Houston Natural Gas Corporation being 0141,103.63, allowing for adjustmente of increases or decreases to each portion of each system sold at the time of the conveyance, shall be paid to the Houston Natural Gas Corporation out of the gross revenues derived from operation of the portion of the gas distribution system purchased from Houston Natural Gas Corporation. SECTION 3. The necessity for acquiring more gas facilities in order to adequately provide gas for the citizens of Corpus Christi and better serve than creates a public emergenoy 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 shell be read at three several moetinga of the City Council, and the Usyor having declared that such public emergency end imperative necessity exist, and having 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 end after its passage, IT IS ACCCRDMGLY SO ORDADiw. PASSED AND APPROM this /,fdgp of January, A. D. 1949• ATTESTS / r City se.%Wt q APPRO'PMgai EGAL x'CR4 C • A itoi y E City o Corpus Christi, Teams Corpus issti Taxes; Z January s 1949 TO THE IM SEU Or THE CITY COUCIL Corpus Christi, Texas Gentlemen, For the reasons set forth in the emergency clause of the foregoing ordinanoe, a public emergency and imperative necessity exist for the suspen- sion of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduoed, and that such ordi- nance or resolution shall be read at three meetings of the City Council; I, therefore, hereby request that you suspend said Charter rule or require- ment end pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respeotful ;y, City of Corpus Christi, Texas The Charter rule was suspended by the following votes Wesley E. seals George R. Clark, Jr. Job. A. Ferris R. R. Henry Joe T. Dawson The above ordinance was passed by the f owing votes Wesley E. 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