HomeMy WebLinkAbout03055 ORD - 05/29/1951t
.+++.. -,.✓ �If,rG'i -n+w. ..x.✓ n..+r y+ -r .a ..�,.tw...�ria+F....0 F »�w.M•• - u. ,.x- r.+,..w ..n��nn�u.+av
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER OF THE
CITY OF CORPUS CHRISTI, TEYAS, FOR AND ON BEHALF
OF THE CITY OF CORPUS CHRISTI, TO EXF,CUTE A CON-
TRACT WITH REYNOLDS METALS COMPANY, A CORPORATION,
FOR THE SUPPLYING OF WATER IN SPECIFIED QUANTITIES
AT SPECIFIED RATES, PROVIDING FOR CERTAIN FRANCHISE
RIGHTS IN THE USE OF PUBLIC LANDS AND STREETS FOR
THE LAYING OF PIPE LINES, PROVIDING FOR RENEGOTIA-
TION OF PRICES OF WATER, PROVIDING CERTAIN OPTION
IN THE CITY, PROVIDING FOR ASSIGNMENT BY THE REYNOLDS
METALS COMPANY OF RIGHTS UNDER SAID CONTRACT UNDER
CERTAIN CONDITIONS OR WITH TIE APPROVAL OF THE CITY `
COUNCIL, SAID CONTRACT AS SHOWN BY ITS TERMS TO RUN ,
FOR A PERIOD OF FIVE (5) YEARS, UNDER THE TERMS AND
CONDITIONS OF SAID CONTRACT, A COPY OF IMCH IS AT-
TACHED HERETO AND MADE A PART HEREOF; AND DECLARING
AN EMERGENCY
WHEREAS, The City of Corpus Christi is the owner of a water
treating and distributing system; and
WHEREAS, Request has been made of the City of Corpus Christi
for the execution of a contract with Reynolds Metals Company, a corpora-
tion, for an adequate supply of water essential to the operations con-
templated in a plant to be constructed in San Pa„ricio County, Texas,
the operation of which requires a reliable source of supply; and
WHEREAS, The City of Corpus Christi is desirous of furnish-
ing and selling to said Reynolds Metals Company the water needed by its
operations; and
WHEREAS, It is necessary that the assurance of a supply of
water for at least the term of five years be secured by said Reynolds
Metals Company prior to the commencing of the construction of its plant
and a line for the supply of water thereto, and it is desired that a `
contract for the construction of said line be entered into immediatelyz
NOW, TIEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEIAS:
SECTION le That the City'Manager of the City of Corpus Christi,
for and on behalf of the City, be and he is hereby authorized and direct,
ed to execute a contract with Reynolds Metals Company, a corporation,
for the supplying of water in specified quantities at specified rates,
as shown by its terms to run for a period of five (5) years, under the
terms and conditions of said contract, a copy of which is attached hereto
and made a part hereof, reading as follows, to —wit:
—1-
jo55
V
STATE OF TEIAS
COUM OF NUF.CSS
WHMZAS, the City of Corpus Christi, Texas, a municipal corporation, is
now the caner of a water distribution system originating out of and from the
Wastes River and is engaged in supplying water for industrial and domestic purposes,
said City of Corpus Christi having constructod 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 C,1,11 n, Texast and
WRXIAS, 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 assignst
NOW, THBRUORE, this contract and agreement this day made and entered
Into by and between the City of Corpus Christi, acting by and through its duly an-
thoriaed officers, hereinafter called "City ", and Reynolds Metals Company, acting
by and through its duly authorised officers, hereinafter called "Reynolds ",
WITNESSETRt
In consideration of the premiers, the sum 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, it suc-
cessors and assigns, and the actual covenante and agreements of the parties herein
contained, it is agreed as follosst
1.
TYPE OF WATER AND PRICHa 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 data hersof, at either of the following points of service, and upon the
conditions hereinafter set fortht
(a) If the point of service is at or near the Calallen filtration
plant, the quantity of water shall be not to exceed a maximum amount of 12,000,0
gallons per day, as shall be demanded by Reynolds{ the rates shall be 9t per 130
gallons for the first 60,000,000 gallons used per month and 70 per 1,000 gallons
for all water ever and above 60, 000,000 gallons used per month and delivered by
City to Reynolds under and during 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 bee
main Minimum Pressure Maximum Pressure Nominal Operating Pressus
30e 659 per sq. in. 959 per sq. in. 709 to 809 per sq. in.
36e 40# per sq. in. 959 per sq. in. 209 to 809 per sq. in.
Provided, hummer, that the rate specified above of 70 per 1,00D 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 untreate
water is made at the price of 20 per 1,000 gallons. In the event that the cost
untreated water in the said cxisting City contract is redetermined and the price
of said water increased, then it is agreed that the 7e per 12000 gallons priced
Reynolds for water used in excess of 60,000,000 gallons per month shall be in.
creased accordingly and in the acme amount, but in no event shall the price char
to Reynolds be in "case of 90 per 1,000 gallons.
(b) If the point of service is at or near Market 3treg North Reach,
the quantity of water aha11 be not to exceed 2,500,00D gallons per day, as shall
demanded by Reynolds, the rates sha11 be 10j# per 1,000 gallons for the first
60,000,000 gallons used per month and 8JO per 1,000 gallon s for all water over a
above 60,000,000 gallons used per month and delivered by City to Reynolds under
during the period covered by this contract, and the City shall deliver such vote
at its distribution system pressure at the point of service.
Provided, however, that the rates specified above of * per 1,000 PAl
lone for all water over and above 60, 000,000 gallons used per month shall apply
only to long as the City has existing contracts under which the sale of untreste
water is made at the price of 20 per 1,000 gallons. In the event that the cost
untreated water in the said existing City contract is redetermined and the price
of said water increased, then it is agreed that the 8}O 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 10J# per 1,000 gallons.
2.
RMSTaERMIRiTIOR OF PRICES City and Reynolds agree that at the and of
each five (5) year period of this contract, except as hereinafter provided, the
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 mediate future. It is agreed
and understood that said redetermined price shall be without profit to City and
without subsidy 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 which Reynolds will pay City for the
before- mentioned treated water will at that time be redetermined on the basic of
the cost of the water to City, and without profit to City or subsicbr of Reynolds.
3.
TFJM OF CONTRACT: The obligations of the parties hereto shall be bind-
ing for a period of five (5) yarn from the date of its execution by City.
4.
SERVICE COMECTIOiss City agrees to supply the connection or connections
at the sole cost and expense of City, and Reynolds ogrscs to supply all other pipes,
valves and fittings of whatever nature rsquirod to complete tho connection.
5.
LYING OF LIS AND INSTALLATION OF EGDIPNfi'NTs Reynolds contemplates the
laying of a pipe line from the point of delivery to its plant near Gregory, Texas
for the purpose of transporting the inter sold hereunder, and the City hereby
grants and conveys to Reynolds an easement extending for the term of this contract
upon, over, through and across avy lands owned by City which adjoins the point of
_3_
delivery, for the purpose of ]vying, constructing, operating and maintapAng soy
pips lino or pipe liana desired to be laid by Reynolds for the purpose of trans-
porting water sold heroundery provided, however, that the location of such line
across lands owned by City must first be approved by City. The location of said
pipe line along or across the 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 ,hall be borne by Reynolds, at its sole cost and
expense.
b.
TITLE: Title to and possession of the water deliverable hereunder by
City sha11 be deemed to pass and shall pass to Rsynolds at the point of delivery,
as set out heroinabove.
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, do-
mend or cause of action which nay arise while the water is in its possession.
T.
MWU &-IMT CH WAURe fleasuremant of the treated water deliverable
hereunder ahall 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)
dgys in advance of all savi- annual checks and teats in order that Reynolds may have
a reprswstative present as a witness. Semi.- annual tests as to the accuracy of
the meter or meters shall be at therexpenss of City. If either City or Rgnolds
at anytime, aha11 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, and shall make joint observations of any adjustments. If upon such
special teats aqy such meter is found to be leas than 2% high or low, the cost of
au& 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 arc and all such
�i�
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 ary test
the motor tested is found to be not more than 2% high or low, previous readings
shall be considered correct in computing the volume of aster delivered by the
City to Reynolds, but such motor shall be at once adjusted to record as accurately
86 possible. If on any test the motor tested shall be found to be inaccurate by
an amount exceeding 2% then any previous readings of such motor shall be corrected
for aqv period of inaccurate measurement thereby which is definitely imam or agreed
upon; but no such correction shall extend back over a period beginning more than
fifteen (15) days prior to the time when ouch inaccuracy was first made known by
either party to the other. If for any reason the meter or motors are out of ser-
vice so that the volume of water delivered hereunder cannot be ascertained or com-
puted from motor readings thereof, the water delivered during the period such motor
or meters are out of service shall beToatimated and agreed upon by the parties
hereto upon the basis of the beet data available.
a.
PaY1C5 Mt 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,
Texans and all bills therefor shall be paid on or before the 20th day of the suc-
ceeding mouth after acme accrued. Statements shall be mailed to Reynolds at
P, 0, Buz log, Corpus Christi, Texas on or before the 10th day of each mouth
sharing 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 filing of such notice, than City shall be
authorized to discontinue further water, irvics until all bills due or past due
have been paid in full..
INGRMS AHD FARESiSt The right of ingress and ogress is hereby granted
by City to Reynolds, or its agents, employees or representatives, across awl
premises or lands owned by City at ary points from which water is delivered under
1 -5-
this contract for the purpose of laying its mains and pipe lines and for the
installation of such other equipment as may be necessary for Reynolds to obtain
delivery of water from City hereunder.
10.
_
FIXED MINIMUM 08I.I0M09i This contract Imposes no obligation upon
Reynolds to purchase soy minim= meant of water in wry 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 ($550.00) Dollars per month, regardless
of whether arty 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 ark calendar month mounts to more than
Fifty ($50.00) Dollars then such fixed monthly sun of Fifty 050.00) Dollars shall
be credited upon the amount due. However, if the volume of water consumed by
Reynolds during ary calendar month amounts to less than the fixed sun of Fifty
(,$50.00) Dollars, then, in addition to the payment for such water, Reynolds shall
pay the difference between the mount duo City for the water actually consumed '
and the sum of Fifty ($50.00) Dollars. Such seas shall be payable at the time
and place horsiabefore provided, the first payment to be nade for the Moth of Cctober,
1951.
11.
FMCB U&J''&Mt If City should be prevented, wholly or in part, from
fulfilling its obligations under this contract by reason of an act of God, on.
avoidable accident, acts of enemy, strikes, fires, floods, governmental restraint
or regulation, or oay other case of force majeure then the obligations of City
to deliver water to Raynolds, as hereinafter provided, shall be temporarily suspend.
ad during the continuance of such force majeure. No davege shall be recoverable
by R"Ids from City by reason of the tonporary suspension of delivery of water
due to any of the causes above mentioned. If the City's obligation shall be af.
fected by arty of such causes City shall prcmptly notify Reynolds in writing,
XbUs full particulars of such force majeure as soon as possible after occurrence
of the cause or causes relied upon.
12.
PRIORUVASa This contract is entered into and the sals 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, Tuns, to the
supply of cater in the Uneces River, and in the event at any time the supply of
cater in the Unease River shall be so diminished as to jeopardise the then supply
of water to such consumers, then and in such event, this contract shall become
suspended 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 mefloiency.
13.
OPTION TO PURCHUSt At any time during the life of this contract City,
at its option, may purchase the water transportation line contemplated being in.
stalled 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 betffven 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 amount
equal to depreciation (not including the coat 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 residual value
or option price of 25% of the original investment.
In the event Reynolds assigns its rights under this contract to anyone
other than an operator of its Sea Patricio plant, or to a subsidiary of Reynolds,
as provided in Paragraph 15 beroof, City's option under this paragraph shall be-
come null and void. The governing boar of City may release or waive its option
and this paragraph, in whole or in part, at any time during the tam 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 Calallea or North Beach, as the case may be, plus the City's actual cost of
-7-
transporting each eater through the pipe line acquired by the exercise of such
option or a substitute pipe line, including all operatioaal, anintonancs, replaco.
mint 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 no-
tify City of such offer. Unless within sixty (60 doys after the giving of such
notice City exercises its option under thin pararraph, Reynolds may within an
additional period of ninety (90) days accept such offer and sell said water trans-
portation line tree of said option to purchase of City.
lit.
- ALT'ERATICNS AND Roams. in expressly recognised by Reynolds that
City may be compelled to make necessary alterations, repairs, or installations
of new or additional puape, motors, valves, or equipment from time to time during
the life of this contract, and any suspension of dolivery to Reynolds due to ouch
operations oball not be muse for claim for damage on the part of Reynolds,
provided all reasonable effort in by City used to provide Reynolds plant with
water.
15.
ASSIGMILITYc Except for aanignmente to a=V person operating Reynolds'
San Patricio 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 MMY be assigned only with the written consent and approval of the
governing body of City, but this contractdsll be binding upon the parties hereto
as well an their su000soore and assigns.
16.
CANCFLLATIM: This contract may be cancelled at any time with the
mutual consent of Reynolds and the governing body of City.
17.
In the event that the parties hereafter execute a contract for a longer
term covering 5nb3tantiAl1V- the subject matter of this contract, this contract
-8-
shell be deemed to be iuMsoded thereby.
IR WIMSS liiM70F, the parties have berate caused theme presents to
be day executed this dap of . 1951.
ATTZSTr
CITY CF Calm CMMTI
C:itv anager
Secretary
APPACQSD AS TO LEGAL FOR X:
ATTrZT a
City rwy
]iMOLM UVrAtS CWAnY
Dy
Vice-Presidant
Secretary
mm
,i
SECTION 2. That the necessity of entering into the afore,
said contract immediately, such contract being of the utmost public
importance in furtherance of the growth and development of the City
of Corpus Christi, Texas, creates a public emergency and an imperative
public necessity requiring the suspension of the Charter rule that
no ordinance or resolution shall be passed finally on the data of its
introduction and that such ordinance or resolution shall be read at
three several meetings of the city council, and the Mayor, having re-
quested, declaring such emergency and necessity to exist, the suspen-
sion 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
end effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED,
PASSED AND APPROVED THIS ThrenA'/ ^day of May, 1951.
T:
MAYOR
44M.
THE CITY OF CORPUS CHRISTI, TEXAS
APPROVED AS TO LEGAL FOINs
r
orney
Corpus Christi, Texas
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
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 amid 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,
MAYO
'
City of Corpus Christi, Texas
The Charter rule was suspended by the following votes
Leslie Wasserman
Jack DeForrest
Barney Cott
Sydney E. Herndon
�%�,.f"'
/
( �(;y,L�"
"`-
4 George L. Lowman
The above ordinance was passed by the follatving votes
Leslie Naseerman
Jack LeForrest
' Barney Cott
Sydney E. Herndon
U
George L. Lowman