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HomeMy WebLinkAbout02534 ORD - 06/07/1949AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR, CITY CONTROLLER AND CITY MANAGER, IN THE NAME OF THE CITY, TO ENTER INTO A CONTRACT WITH THE REPUBLIC NATURAL GAS COMPANY, IN SUPPLEMENT OF THE PRESENT CONTRACT WITH SAID COMPANY, DESCRIBING THE TERMS OF SAID CONTRACT AND DECLARING AN EMERGENCY. HE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Mayor, City Controller and City Manager of the City of Corpus Christi, Texas, are hereby auth- orized and directed to execute in the name of the City and to deliver to the Republic fiatural Gas Company a supplemental con- tract between the City and said Company, in supplement of the enntract existing between said parties heretofore executed be- tween the predecessor of the Republic Natural Gas Company and the City, heretofore executed and approved by Ordinance, duly and legally passed by the City Council, the supplemental contract hereby authorized to be executed being substantially as follows: THE STATE OF TEXAS COUNTY OF I ?UECES YMORANDUM OF SUPPLEMENTAL CONTRACT AND AGREEMENT, this day made and entered into by and between the REPUBLIC NATURAL GAS COMPANY, a corporation organized under the laws of the State of Delaware, with a permit to do basiness in the State of Texas, hav- ing its principal office in Dallas, Dallas County, Texas, acting by and through William H. Wildes, its President, and the CITY OF CORPUS CHRISTI, a municipal corporation, acting by and. through its duly constituted officers; and WHEREAS, heretofore on the 4th day of August, 1922, W. L. Pearson & Company, a corporation of Houston, Texas, entered into a certain contract in writing with the City of Corpus Christi for the development of a gas well on the south side of hueces Bay and to sell and deliver to the City of Corpus Christi a gas line con- necting such well with the city limits, as fully appears from the Minutes of the City Council of that date; and WHEREAS, said contract between W. L. Pearson & Company and the City cf Corpus Christi was amended and supplemented by agree- ment as evidenced by the resolution of the City Council of the City of Corpus Christi, passed and approved on April 10, 1925; and WHEREAS, said contract was further supplemented by ordin- ance. duly Passed of date October 4, 1930; and WHEREAS, said contract was further amended by ordinance duly passed of date July 15, 1942; and WHEREAS, under said amendment of April 10, 1925, it was provided that all gas used by the City should be metered on the 20th day of each month and paid for on or before the 15th day of the next succeeding month; and WHEREAS, said contract was further supplemented by'con- tract of date January 4, 1945, authorizing the City to change the measuring station for the gas at a metering station located on the John Dunn Lease in Nueces County, Texas; and WHEREAS, said contract, together with its supplements, are now owned and held and all rights and liabilities thereunder are now due and owned by the Republic Natural Gas Company; and WHEREAS, the City of Corpus Christi is now engaged in and contemplates continuing to engage in the furnishing of gas to domestic and industrial consumers located both within and without the city limits; and WHEREAS, the City of Corpus Christi has determined that it is to the best interests of the City of Carpus Christi to pur- chase its supply of gas beyond and above 4,000,o00 cubic feet per day minimum, which it is required to take from Republic Natural Gas Company until August 4, 1952, from other sources: and WHEREAS, under the terms of the supplemental agreement entered into between the City of Corpus Christi and the predecessor to the Republic Natural Gas Company of date October 4, 1930, Parti- cularly under the terms of Paragraph 11 thereof, and the exercise of the option by the Republic Natural Gas Company, provided in Para- graph 11, that there presently exists a contract between the Republic Natural Gas Company and the City of Corpus Christi wherein under the terms of said contract, the City of Corpus Christi is required to take a minimum of 4,000,00o cubic feet per day from the Republic Natural Gas Company and pay therefor at the rate of 7R per thousand cubic feet for the first 2,Oo0,000 cubic feet of gas and K per thousand cubic feet for the second 2,000,000 cubic feet of gas; and -2- WHEREAS, it suits the convenience of the parties for said gas to be delivered by the Republic Natural Gas Company to the City at the metering station or stations of the Houston Natural Gas Corporation provided for in Article III of that certain contract between Houston Natural Gas Corporation and the City of Corpus Christi of date March 1, 1949, or at the Dunn Lease metering station; and WHEREAS, it further suits the convenience of the parties that the provisions concerning the payment for the gas delivered hereunder shall be as follows: On or before the tenth (10th) day of each calendar month Republic Natural Gas Company shall render a statement to the City of Corpus Christi showing the quantity of gas delivered to the City during the preceding calen- dar month or billing period, and the amount payable therefor by the City for all gas delivered during the preceding calendar month or billing period under the terms hereof, the City shall pay Republic Natural Gas Company on or before the twenty -fifth (25th) day of each calendar month: NOW, THEREFCRE, for and in consideration of the mutual benefits.arising to the City of Corpus Christi and to the Republic Natural Gas Company, it is agreed as follows: 1. Except as hereinafter otherwise provided, the existing contract as supplemented and amended shall be in full force and effect, as determined by said contract and the exercise of the option by Republic Natural Gas Company, as provided by Paragraph 11 of supplement dated October 4, 1930• -3- 2. It is agreed that the City of Corpus Christi shall pur- chase a minimum of 4,000,000 cubic feet per day of its supply from the Republic Natural Gas Company are, pay for the same at the price provided for in said contract at 7i¢ per thousand cubic feet for the first 2,000,000 cubic feet and 5¢ per thous- and cubic feet for the second 2,000,000 cubic feet; and that the Republic Natural Gas Company shall, on or before the tenth (10th) day of each calendar month, render a statement to the City of Corpus Christi showing the quantity of gas delivered to the City and henceforth etch calendar north shall constitute a s:etexdn� reriod, during the preceding calendar month or billing period/ and the amount payable therefor by the City for all gas delivered during the preceding calendar month or billing period under the terms hereof, the City shall pay Republic Natural Gas Company on or before . the twenty -fifth (25th) day of each calendar month; and that said gas may be delivered to the City by Republic Natural Gas Company either through the delivery points designated in Article III of the contract between Houston Natural Gas Corpora- tion and the City of Corpus Christi of date March 1, 1949, or through the metering station on the Dunn Lease. 3• It is further agreed and understood that this contract shall be binding upon both the parties hereto and their success- ors and assigns until the 4th day of August, 1952; and that ex- cept as herein modified, the existing contract shall remain in full force and effect. IN WITNESS WMEREOF, the Republic Natural Gas Company has executed this instrument in duplicate originals by its President, -4- William H. Wildes, thereunto duly authorized, and the City of Corpus Christi, acting by and through its City Council, has caused the same to be so executed by its Mayor, Honorable Leslie Wasserman, and its City Manager, M. W. Cochran, countersigned by its City Controller, and attested by its City Secretary, and a copy thereof entered in the Minutes of its City Council, this the day of June, 1949. COUNTERSIGNED: ATTEST: City Controller City Secretary APPROVED AS TO LEGAL FORM: ity Attcrney REPUBLIC NATURAL GAS COMPANY By William H. Wildes, its President. CITY OF CORPUS CHRISTI By Leslie Wasserman, its Mayor By M. W. Cochran, its City Manager -5- SECTION 2. Nothing in this Ordinance nor in said contract shall be construed as varying or changing the provisions of said heretofore existing contracts, amendments and supplements unless In said supplement expressly provided, and this Ordinance shall not be construed as repealing the other Ordinances hereinbefore referred to, but said existing contracts, amendments and supple- ments shall be in full force and effect except as modified or amplified in the Supplemental Contract contained in Section 1 hereof. SECTION 3. The fact that it is deemed necessary to make changes in the Contract of the City with the Republic Natural Gas Company creates a public emergency and a public imperative neces- sity requiring the suspension of the charter rule, provided 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 meetings of the City Council, and the Mayor having declared that such public emergency and imperative necessity exist, and recuests that said charter rule be suspended, and that this Ordinance take effect and be in full force and effect from and after Its passage, IT IS SO ORDAINED. PASSED AMD APPROVED this `'� � day of June, 1949. Leslie Wasserman, Mayor of the City of Corpus Christi, Texas. ATTEST: �` 4f City Secretary APPa9VED: F ul ity Attgjney Corpus Christi, Texas June 'I�" 199 TO THE ME1,1BERS OF THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI: Corpus Christi, Texas Gentlemen: For the reasons set forth in the emergency clause of the foregoing Ordinance, a public emergency and imperative neces- sity 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. I therefore hereby request that you suspend said Charter rule or requirement and pass this Ordinance finally on the dp_te it is introduced, or at the present meeting of the City Council. Respectfully, Ttycr, City of Corpus Christi, Texas. Tjae Charter rule was suspended by the following vote: Leslie Wasserman t.f_ Barney Cott Jack DeForrest Sydney E. Herndon .: -_4 George L. Lowman 'g 4 The above Ordinance was passed by the following vote: Leslie Wasserman Barney Cott Jack DeForrest Sydney E. Herndon George L. Lowman -7-