HomeMy WebLinkAbout03054 ORD - 05/29/1951AN ORDINANCE NO. -
BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS
CALLING AN ELECTION ON THE QUESTION OF WHETHER OR NOT A CON-
TRACT BE APPROVED AND THE CITY COUNCIL BE AUTHORIZED TO CAUSE
SAID CONTRACT TO BE EXECUTED BY AND ON BEHALF OF THE CITY BY
AND BETWEEN THE CITY OF CORPUS CHRISTI AND REYNOLDS METALS
COMPANY, A CORPORATION, FOR THE SUPPLYING OF WATER IN SPECI-
FIED QUANTITIES, AT SPECIFIED RATES; PROVIDING FOR CERTAIN
FRANCHISE RIGHTS IN THE USE OF PUBLIC LANDS AND STREETS FOR
THE LAYING OF PIPE LINES; PROVIDING FCR RENEGOTIATION OF THE
PRICE OF WATER; PROVIDING FOR CERTAIN OPTIONS IN THE CITY OF
CORPUS CHRISTI; PROVIDING FOR ASSIGNMENT BY THE REYNOLDS METALS
COMPANY OF THE RIGHTS UNDER SAID CONTRACT UNDER CERTAIN CONDI-
TIONS OR WITH THE APPROVAL OF THE CITY COUNCIL, SAID CONTRACT
BEING SET OUT IN THIS ORDINANCE AND AS SHM BY ITS TERMS TO
RUN FOR A PERIOD OF THIRTY (30) YEARS; DESIGNATING THE PLACES
FOR HOLDING SUCH ELECTION; NAMING THE OFFICERS THEREFOR;
DESCRIBING FORM OF NOTICE OF ELECTION; ENACTING PROVISIONS IN-
CIDENT AND RELATING TO THE SUBJECT OF THIS ORDINANCE; AND
DECLARING AN EMERGENCY.
WHEREAS, The City of Corpus Christi is the owner of a water treat-
ing and distribution system; and
WHEREAS, Request has been made of the City of Corpus Christi for
the executiou� o£ a contract with Reynolds Metals Company, a corporation for w
an adequate supply of water essential to the operations contemplated in a
plant to be constructed in San Patricio County, Texas, the operation of which
requires a reliable source sf� of supply; and
WHEREAS, The City of Corpus Christi is desirous of furnishing and
selling to said Reynolds Metals Company the water needed by its operations;.
and
WHEREAS, The City Council of the City of Corpus Christi, Texas,
deems it necessary that the question of whether or not said contract should
be entered into be submitted to the vote of the resident qualified electors
of the City of Corpus Christi, Texass
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXASs
SECTION I. That an election be held in the said City on the 23rd
day of June, 1951, for the purpose of determining whether or not the quali-
fied electors of the City of Corpus Christi approve, desire and authorize the
execution of the following contract with Reynolds Metals Company, a corpora-
tion, to —wits
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I 26 Sy
THE STATE OF TE M
COUNTY CF NUMES
WRENF,4S, the City of Corpus Christi, Texas, a municipal corporation, is
now the owner of a water distribution system originating out of and from the Nue-
ces River and is engaged in supplying water for industrial and domgstic purposes,
said City of Corpus Christi having constructed a dam and reservoir to impound and
regulate the flow of Water in said river near Mathis, Texas and the point on said
river from which said water is so taken by said City of Corpus Christi being lo-
cated at or near Ca]allen, Texas; and
WHEREAS, the said City of Corpus Christi, Texas is desirous of furnish-
ing and selling to Reynolds Metals Company, a corporation, treated water to be
used by it, its successors and assigns
NOW, THEREFORE, this contract and agreement this day made and entered
into by and between the City of Corpus Christi, acting by and through its duly
authorized officers, hereinafter called "City ", and Reynolds Metals Company, act.
ing by and through its duly authorized officers, hereinafter called "Reynolds ",
W ITNES SETH:
In consideration of the premises, the sun of Ten ($10.00) Dollars cash
in hand paid'to City by Reynolds, the receipt of which is hereby acknowledged, the
benefits arising to said City by reason of the sale of water to Reynolds, its suc-
cessors and assign, and the mutual covenants and agreements of the parties herein
contained, it is agreed as follows:
1.
TYPE OF WATER AND PRICE: City agrees to sell treated water to Reynolds
to be delivered, at the option of Reynolds, to be exercised within sixty (60) days
from the date hereof, at either of the following points of service, and upon the
condition hereinafter set forth:
(a) If the point of service is at or near the Calallen filtration plant,
the quantity of water sball be not to exceed a maximum amount of 123000,000 gallons
per day, as shall be demanded by Reynolds, the rates shall be 9¢ per 1,000 gallons
for the first 60,000,000 gallons used per month and 7¢ per 1,000 gallons for all
eater over and above 60,000,000 gallons wed per month and delivered by City to
Reynolds under and daring the period covered by this contract and the pressures
to be maintained by City in each of the mains at the point of service shall be:
MM inin Minimum Pressure Maximun Pressure Nominal Operating Pressure
30" 65N per sq. in. 95# per sq. in. 70# to 80V per sq. in.
36" 40# per sq. in. 95R per sq. in. 70# to 8C# per sq. in.
Provided, however, that the rate specified above of 7¢ per 1,000 gal-
lons for all water over and above 60,000,000 gallons used per month shall apply
only so long as the City has existing contracts under which the sale of untreated
water is made at the price of 2¢ per 1,000 gallons. In the event that the cost of
untreated water in the said existing City contract is redetermined and the price
of said water increased, then it is agreed that the 7¢ per 1,000 gallons priced to
Reynolds for water used in excess of 60,000,000 gallons per month shall be in-
creased accordingly and in the same amount, but in no event shall the price charged
to Reynolds be in excess of 90 per 1,000 gallons.
(b) If the point of service is at or near Market Street, North Beach,
the quantity of water shall be not to exceed 2,500,000 gallons per day, as shall
be demanded by Reynolds, the rates shall be 1012¢ per 1,000 gallons for the first
60,000,000 gallons used per month and 82¢ per 1,000 gallons for all water over and
above 60,0003000 gallons used per month and delivered by City to Reynolds under and
during the period covered by this contract, and the City shall deliver such water
at its distribution system pressure at the point of service.
Provided, however, that the rates specified above of 82¢ per 1,000 gal-
lons for all water over and above 60,000,000 gallons used per month shall apply
only so long as the City has existing contracts under which the sale of untreated
water is made at the price of 2¢ per 1,000 gallons. In the event that the cost of
untreated water in the said existing City contract is redetermined and the price
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of said water increased, then it is agreed that the 81¢ per 1,000 gallons priced to
Reynolds for water used in excess of 60,000,000 gallons per month shall be in-
creased accordingly and in the same amount, but in no event shall the price charged
to Reynolds be in excess of 1* per 1,000 gallons.
2.
REDETERMINATION OF PRICE: City and Reynolds agree that at the end of
each five (5) year period of this contract, except as hereinafter provided, the
i
prices at which City shall sell treated water to Reynolds shall be redetermined,
said redetermined prices to be based upon the cost of water to the City at that
time or the projected cost of water to City in the immediate future. It is
agreed and understood that said redetermined price shall be without profit to
City and without subsietr of Reynolds.
Provided, however, that should the Oakville Dam, or any similar source
capable of 'supplying the amount of water contemplated in connection with the
Oakville Dam, be established, then the price shich Reynolds will pay City for
the before - mentioned treated water will at that time be redetermined on the basis
of the cost of the water to City, and without profit to City or subsidy of -
Reynolds.
3.
TEEM OF CONTRACT: The obligations of the parties hereto shall be bind-
ing from October 1, 1951 and ending on September 30, 1981.
4.
SERVICE CONNHCTIONSs City agrees to supply the connection or connections
at the sole cost and expense of City, and Reynolds agrees to supply all other pipes,
valves and fittings of whatever nature required to complete the connection. .
LAYING OF LINE AND INSTALLATION OF 92NIPiiMS Reynolds contemplates the
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laying of a pipe line from the point of delivery to its plant near Gregory, Texas
for the purpose of transporting the water sold hereunder, and the City hereby
grants and conveys to Reynolds an easement extending for the tern of this contract
upon, over, through and across any streets and other lands owned by Cith which ad-
joins the point of delivery, for the purpose of laying, constructing, operating and
maintaining any pipe line or pipe lines desired to be laid by Reynolds for the
purpose of transporting water sold hereunder, provided, however, that the location
of such line across streets or lands owned by City must first be approved by City.
The location of said pipe line along or across the streets and other lands of City
are subject to relocation upon order of City. The entire cost of construction,
relocation, operation and maintenance of said pipe line or pipe lines shall be
borne by Reynolds, at its sole cost and expense.
6.
TITLE: Title to and possession of the water deliverable hereunder by
City shall be deemed to pass and shall pass to Reynolds at the point of delivery,
as set out hereinabove.
In connection herewith, it is agreed by City and Reynolds that each shall
indemnify and forever hold harmless the other against each and every claim, demand
or cause of action which may arise while the water is in its possession.
T.
MMSUREMT OF WATER: Measurement of the treated water deliverable here-
under shall be measured by a suitable water meter or meters of standard make and
acceptable to City. Reynolds shall furnish said meter and install same, and City
shall keep same in repair. Checks as to the accuracy of the meter or meters shall
be made semi - annually, and City shall notify Reynolds in writing ten (10) days in
advance of all semi-annual checks and tests in order that Reynolds may have a re-
presentative present as a witness. Semi -annual tests as to tie accuracy of the
meter or meters shall be at the expense of City. If either City or Reynolds at
any time shall notify the other that it desires a special test of any meter, the
parties shall cooperate to secure an immediate determination of the accuracy thereof,
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and shall make joint observations of any adjustments. If upon much special tests
any such meter is found to be less than 2% high or low, the cost of such test shall
be paid by the party requesting it, otherwise by the other party. Each party, shall
give to the other written notice of the time of any and all such tests in advance
of the holding of same within a reasonable length of time in order that the other
party may have a representative present. If upon any test the meter tested is
found to be not more than 2% high or low, previous readings shall be considered
correct in computing the volume of water delivered by the City to Reynolds, but
such meter shall be at once adjusted to record as accurately as possible. If on
any test the meter tested shall be found to be inaccurate by an amount exceeding
2% then any previous readings of such meter shall be corrected for any period of
inaccurate measurement thereby which is definitely known or agreed upon, but no
such correction shall extend back over a period beginning more than fifteen (15)
days prior to the time when such inaccuracy was first made known by either party
to the other. If for any reason the meter or meters are out of service so that
the volume of water delivered hereunder cannot be ascertained or computed from
meter readings thereof, the water delivered during the period such meter or meters
are out of service shall be estimated and agreed upon by the parties hereto upon
the basis of the best data available.
B.
PAIKENTSo Payments for any and all water sold by City to Reynolds
shall be paid monthly at the office of the City Water Department of Corpus Christi,
Texas, and all bills therefor shall be paid on or before the 20th day of the suc-
ceeding month after same accrued. Statements shall be mailed to Reynolds at
P. 0. Box 109, Corpus Christi, Texas, on or before the 10th day of each month
showing the volume of water delivered and the sum due City therefor by Reynolds
hereunder during the preceding month.
Upon failure to pay any bill due hereunder before delinquency, City may
give notice of such delinquency, and, if all bills due and unpaid are not paid in
full within fifteen (15) days after the mailing of such notice, then City shall
be authorized to discontinue further water service until all bills due or past
due have been paid in full.
9.
INGRESS AND EGRESS. The right of ingress and egress is hereby granted
by City to Reynolds, or its agents, employees or representatives, across any
premises or lands owned by City at any points from which water is delivered under
this contract for the purpose of laying its mains and pipe lines and for the in-
stallation of such other equipment as may be necessary for Reynolds to obtain de-
livery of water from City hereunder.
10.
FI%ED XM MRS OBLIGATIONS This contract imposes no obligation upon
Reynolds to purchase any minimum amount of water in any calendar month throughout
the period of this contract, but Reynolds shall pay to City during the life of
this contract the minimum amount of Fifty ($$0.00) Dollars per month, regardless
Of whether any water is used or not, same to be payable on or before the 20th
day of each month for the preceding calendar month; provided, however, if the
volume of water consumed by Reynolds during any calendar month amounts to more
than Fifty ($50.00) Dollars then such fixed monthly sum of Fifty ($50.00) Dollars
shall be credited upon the amount due. However, if the volume of water consumed
by Reynolds during any calendar month amounts to less than the fixed sum of Fifty
($50.00) Dollars, then, in sedition to the payment for such water, Reynolds shall
pay the difference between the amount due City for the water actually consumed
and the sum of Fifty ($$0.00) Dollars. Such sums shall be payable at the time
and place hereinbefore provided.
11.
FORCE mAJEmt If City should be prevented, wholly or in part, from
�(r
fulfilling its obligations under this contract by reason of an act of God, un-
avoidable accident, acts of enemy, strikes, fires, floods, governmental restraint
or regulation, or amy, other case of force majeure then the obligations of City
to deliver crater to Reynolds, as hereinafter provided, shall be temporarily sue -
pended during the continuance of such force majeure. No damage shall be recover-
able by Reynolds from City by reason of the temporary suspension of delivery of
water due to any of the causes above mentioned. If the City's obligation shall
be affected by any of such causes City shall promptly notify . Reynolds in writing,
giving full particulars of such force majeure as soon as possible after occurrence
of the cause or causes relied upon.
12.
PRICRITIESi This contract is entered into and the sale of water here-
under is made subject at all times to the prior rights of domestic and industrial
consumers within the City Limits of the City of Corpus Christi, Texas, to the sup-
ply of water in the Nueoes River, and in the event at any time the supply of water
in the Nueces River shall be so diminished as to jeopardize the then supply of
water to such consumers, then in such event, this contract shall become sus.
pended during the period of time when such supply of water in said river is so
diminished, but immediately upon the supply of water in said river becoming again
sufficient for the use of domestic and industrial consumers within the City Limits
of the City of Corpus Christi, this contract shall again became effective immediately
to the extent of the excess of such sufficiency.
13.
OPTION TO F9RCHASEa At any time during the life of this contract
City, at its option, may purchase the water transportation line contemplated
being installed by Reynolds, extending from its connection with pipe lines of
City to the property line of Reynolds, including all of the valves, connections,
and property used in connection with the maintenance and operation of said line
between the said properties. If City elects to exercise its option aforesaid,
the fair and reasonable value of such property shall be determined by calculating
the actual investment in said pipe line and accessories above mentioned, less an
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amount equal to depreciation (not including the cost of repair and maintenance
thereon) from date of installation to the date of exercise of such option and
completion of purchase on the basis of thirty (30) year life with a minimum re-
sidual value or option price of 25% of the original investment.
In the event Reynolds assigns its rights under this contract to any-
one other than an operator of its San Patricio plant, or to a subsidiary of
Reynolds, as provided in paragraph 15 hereof, City's option under this paragraph
shall become null and void. The governing body of City may release or waive its
option under this paragraph, in whole or in part, at any time during the term of
this agreement. In the event City exercises this option, City shall be obligated
to deliver water to Reynolds at the property line of Reynolds' San Patricio plant
in the quantities and at the prices specified in paragraph 1 hereof for delivery
at Calallen or North Beach, as the case may be, plus the City's actual cost of
transporting such water through the pipe line acquired by the exercise of such
option or a substitute pipe line, including all operational, maintenance, re-
placement and amortization costs, prorated among all uses of water served by
such pipe line.
In the event that Reynolds receives a bona fide offer to purchase said
water transportation line, and wishes to accept such offer, Reynolds may notify
City of such offer. Unless sixty days after the giving of such notice City ex-
ercises its option under this paragraph, Reynolds may within an additional period
of ninety days accept suchoffer and sell said water transportation line free of
said option to purchase of City,
14.
ALTERATIONS AND REPAIRSS It is expressly recognized by Reynolds that
City may be compelled to make necessary alterations, repairs, or installations ,
of new or additional pumps, motors, valves, or equipment from time to time during
the life of this contract, and any suspension of delivery to Reynolds due to
such operations shall not be cause for claim for damage on the part of Reynolds,
provided all reasonable effort is by City used to provide Reynolds plant with
water.
15.
ASSIGNABILITY: Except for assignments to any person operating Reynoldst
San Patricia plant, or to any subsidiary of Reynolds, or to any duly constituted
district created by law for the distribution of water, the rights of Reynolds under
this contract may be assigned only with the written consent and approval of the
governing body of City, but this contract shall be binding upon the parties bereto
as well as their successors and assigns.
16.
CANCULATIONs This contract may be cancelled at any time with the mutual
consent of Reynolds and the governing boar of City.
IN WITNESS WEM=Fj the parties have hereto caused these presents to
be duly executed this day of _ 1951. ,
CITY OF CORPUS CHRISTI
ATTEST:
By
ecre ary anger
AFFROPSH AS TO LEGAL FORM:
City Attorney
KUNOLBS METALS COMPANY
ATTEST:
By
Vice— ee en
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at which election, above mentioned, the following proposition shall be sub-
mitted to the resident qualified electors of the City of Corpus Christi,
Texas:
PROPOSITION 'A'
'Shall the City Council of the City of Corpus Christi
be authorized to cause to be executed a contract, for
and on behalf of the City of Corpus Christi, with
Reynolds Metals Company, a corporation, for the supply-
ing of water in specified quantities at specified rates,
said contract containing provisions for certain fran-
chise rights in the use of public lands and streets for
the laying of pipe lines, for renegotlntion of the price
of water, for certain option in the City, for assign-
ment by the Reynolds Metals Company of the rights under
maid contract under certain conditions or with the ap-
proval of the City Council, and said contract as shown
by its terms to run for a period of thirty (30) years,
all as provided under the terms and as contained in a
proposed contract as said proposed contract is set out
in Ordinance No. 3054, passed and approved by the City
Council of the City of Corpus Christi on May 299 19517•
SECTION II. Said election shall be held in the City of Corpus
Christi at the following places, and the following named persons are hereby
appointed judges and officers of said election:
ELECTION PRECINCT NO 2 POLLING PLACE
Miss Gertrude Dreyer, Presiding Judge Artesian Park Recreation Bldg.
Mrs. Ottina Dorenfield, Assistant Judge
Mrs. Wm. Biggio, Clerk
Miss Agnes Roniakoosky, Clerk
ELECTION PREC=TNO. II
Mrs. J. H. Vetters, Presiding Judge
Crossley School
Mrs. E. T. Wicker, Assistant Judge
Mrs. Ed English, Clerk
Mrs. M. L. Shepherd, Clerk
ELECTION PRECINCT N0, III
Mrs. C. Y. Meyers, Presiding Judge
Mrs. H. A. Tycer, Assistant Judge
Robert Driscoll Junior High
School
Mies Florence Hunter,Clerk
Miss Frances Hunter, Clerk
ELECTION PRECINCT N0, IV
Mrs. F. H. Underwood, Presiding Judge
Central Church of Christi,
Mrs. C. E. Buck, Assistant Judge
1610 Lawnview
Mrs. E. G. Weldon, Clerk
Mrs. F. E. Peckenpaugh, Clerk
ELECTION PRECINCT NO V
Mrs. G. B. Lankford, Presiding Judge
Morgan Avenue Fire Station
Mrs. R. T. Ferguson, Assistant Judge
Mrs. Walter Heidensohn, Clerk
Miss Vivian Qualey, Clerk
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Of the City Of Corpus Christie being a newspaper of general circulation,
published within the City of Corpus Christi, Texas, said publication to be
made on the same day in each of two successive weeks prior to the date of
the election and the date of the first publication to be not lees then
twenty days prior to the date of said election.
SECTION 6. That due returns of said election shall be made prompt-
ly by the respective officers holding same to the City Secretary and said re-
turn shall be canvassed and the results declared by the City Council.
SECTION 7. That the great public importance of the question in-
volved and the great public importance of submitting the same to the resi-
dent qualified voters of the City of Corpus Christi, and the fact that cer-
tain laws of the State of Texas and of the City of Corpus Christi most be
complied with immediately, creates a public emergency and an imperative
public necessity requiring the suspension of the Charter rule that no ordi-
nance or resolution shall be passed finally on the date of its introduction
and that such ordinance or resolution shall be read at three several meet-
ings of the City Councils and the Mayor, having declared such emergency and
necessity to exist, having requested the suspension of said Charter rule
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 the date
Of its passage, IT IS ACCORDINGLY SO ORDAINED.
PASSED AND APPROVED, This the,,21 day of May, A.D. 1951.
T: M9YOR
THE CITY OF CORPUS CHRISTI, TEXAS
City Secretary
A= TO 'GAL FOAM:
City A torus,
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Corpus Christi, Texas
A, 195
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
Gentlement
For the reasons set forth in the emergency clause of the fore-
going 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; I, 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
City of Corpus Christi, Texas
The Charter rule was suspended by the folllolwing votes
Leslie Wasserman
Jack DeForrest
Barney Cott
Sydney E. Herndon
George L. Lowman
The above ordinance was passed
by the follllmvi-'n'g vote:
Leslie Piaaserman
Jack LeForrest
Barney Cott
Sydney E. Herndon�'�
George L. Lowman
.�%i..
365