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HomeMy WebLinkAbout03071 ORD - 06/19/1951AN ORDINANCE NO. 3071 BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS CALLING AN ELECTION ON IM QUESTION OF WHETHER OR NOT A CONTRACT BE APPROVED AND THE ^.ITY COUNCIL BE AUTHORIZED TO CAUSE SAID CONTRACT TO BE EXECUTED BY AND ON EEHALF OF THE CITY BY AND BETWEEN THE CITY OF CORPUS CHRISTI AND REYNOLDS METALS COMPANY, 4 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 THE PRICE OF WATER; PROVIDING FOR CERTAIN OPTIONS IN THE CITY OF CORPUS CHRISTI; PROVIDING FOR ASSIGNMENT BI THE REYNOLDS METALS COMPANY OF THE RIGHTS UNDER SAID.CONTRACT UNDER CERTAIN CONDITIONS OR WITH THE APPROVAL OF THE CITY COUNCIL, SAID CONTRACT BEING SST OUT IN THIS ORDINANCE AND AS SHOWN BY ITS TERMS TO RUN FOR A PERIOD OF THIRTY (30) YEARS; DESIGNATING THE PLACES FOR HOLD- ING SUCH ELECTION; NAMING THE OFFICERS THEREFOR; DESCRIBING FORM OF NOTICE OF ELECTION; ENACTING PROVISICNS INCIDENT AND RELATING TO THE SUBJECT OF THIS ORDINANCE; AND DECLARING AN EMERGENCY. WHEREAS, The City of Corpus Christi is the owner of a water treating and distribution system; and WHEREAS, Request has been made of the City of Corpus Christi for the execution of a contract with Reynolds Metals Company, a corporation for an ade- quate 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 re- liable source of supply, and WHEREAS, The City of Corpus Christi is desirous of furnishing and sell - img-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 enter- ed into be submitted to the vote of the resident qualified electors of the City of Corpus Christi, Texas] NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS3 + SECTION I. That an election be held in the said City on the 14th day of July, 19519 for the purpose of determing whether or not the qualified electors of the City of Corpus Christi, Texas, approve, desire, and authorize the execu- tion of .the following contract with Reynolds Metals Company, a corporation, to -wit; # -ys- 3 0 +7/ F1 THE STATE OF TEXAS - COUNTY CF NDECES WROW, the City of Corpus Christi, Texas, a municipal corporation, is now the owner of a water distribution system originating out of =4 from the Nne- ces River and is engaged in supplying water for industrial and domestic 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 Calallen, Texasj and X14, 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 NON, THEREFORE, this contract'and agreement this daffy 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 ", WITN3SStTH: In consideration of the premises, 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, its onc- cessors and assigns, and the mutual covenants and agreements of the parties herein contained, it is agreed as follows: " 1. TIPS 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 conditions hereinafter set forth: " (a) If the point of service is at or near the Cala7len filtration plant, the quantity of water aba11 be not to exceed a maximum amount of 12,000,OOq 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 water over and above 602000,000 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 be: Main Minimum Pressure Maximum Pressure Nominal Operating Pressure 30m 65# per sq. in. 95# per sq. in. 7C,4 to 80# per sq. in. 36;- 40# per sq. in. 95N per sq. in. 7C,# to 80# per sq. in. Provided, however, that the rate specified above of 70 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 mouth shall be in- creased accordingly and in the same amount, but in no event ahall the price charged to Reynolds be in excess of 9¢ 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 10J¢ per 1,000 gallons for the first 60,000,000 gallons used per month and 8#¢ per 1,000 gallons for all water over 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 City shall deliver each water at its distribution system pressure at the point of service. Provided, however, that the rates specified above of ,8}¢ per 1,000 gal — lone 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 male of untreated water is made at the price of 2¢ per 1,000 gallons. In the event that the coat of untreated water in the said existing City contract is redetermined and the price —2— of said water increased, then it is agredd that the 8210 per 19000 gallons priced to Reynolds for water used in excess of 603000,000 gallons per month shall be increased accordingly and in the same amount, but in no event shall the price charged to Reynolds be in excess of 131,0 per 1,000 gallons, 2. EEDETENMINATION OF PRICE AND QUANTIM (a) PRICES City and Reynolds agree that at the end of each five (5) year period of this contract, except as is hereinafter provided, the prices at which City shall sell treated water to Reynolds shall, if requested by either party, 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 subsidy to Reynolds. Provided, however, that should the Oakville Dam, or any similar source capable of sup- plying 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 basis of the coat of the water to City, and without pro- fit to City or subsidy to Reynolds. (b) QUANTITY: City and Reynolds agree that at the end of each five (5) year period of this contract, the quantity of treated water reserved for Reynolds, use shall, if requested by either party, be redetermined, said re- determined quantity to be based upon the actual and projected future requirements of Reynolds, and, subject to the provisions hereinafter contained, taking into consideration other users served by the line; but in no event shall the total quantity of water per day subject to demand by Reynolds be lass than the amount of 12 million gallons, if required, as specified in Paragraph 1(a) hereof, subject, however, to the provisions of paragraph 12. Provided, however, that City shall not be obligated at any time to furnish Reynolds with more than three million gallons of water per day in excess of that which is required per day by Reynolds for use in its operations. - 3. TERM OF CONTRACTt The obligations of the parties hereto shall be binding from October 1, 1951, and ending on September 301 1981. 4. SERVICE CONNECTIONS: City agrees to a upply the connection or connections at the sole cost and expense of City and Reynolds agrees to supply all other pipes, valves and fit- tings of whatever nature required to complete the connection. 5. LAYING OF LINE AND INSTALLATION OF EQUIPMENTS Reynolds contemplates the -3- 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 team 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 Cite are subject to relocation upon order of City. The entire coat 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. Tr=3 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. 7. MMUREKENT 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) daps 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 the accuracy of the meter or meters shall be at the expense of City. If either City or Reynolds at any time aball notify the other that it desires a special teat of any meter, the parties shall cooperate to secure an immediate determination of the accuracy thereof, -4- and shall make joint observations of ary adjustments. If upon such special tests ary such meter is found to be lees than 2% high or low, the cost of such test shall be paid by the party requesting it; otherwise by the other party. Fach 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 tban 2% high or low, previous readings shall be considered correct in computing the volme 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. 8, PAYMMITSa Payments for any and all water sold by City to Reynolds shall be paid monthly at the office of the City Meter 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 log, Corpus Christi, Texas, on or before the 10th day of each month showing the volume of water delivered and the sun due City therefor by Reynolds hereunder during the preceding month. Upon failure to pay any bill due hereander before delinquency, City may m5-- 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. INGRMS AND EGFMSs 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- at-11, ion of such other equipment as may be necessary for Reynolds to obtain de- livery of water from City hereunder. FIX6 MINIM OHLIGATICNs This contract imposes no obligation upon Reynolds to purchase any minimum amount of water in ary calendar month throughout the period of this contract,`but Reynolds sball pay to City during the life of this contract the minimum amount of Fifty ($50.00) 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 stn 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 sun 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 ($50.00) Dollars. Such sums shall be payable at the time and place hereinbefore provided. l].. FORM& MAJZM2 If City should be prevented, wholly or in part, from • f _ folfilling its obligations under this contract by reason of an act of Cod, un- avoidable accident, acts of enemy, strikes, fires, floods, governmental restraint or regulation, or any other case of force majeuke then the obligations of City to deliver water to Reynolds, as hereinafter provided, shall be temporarily sus- 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 ouch 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. • PRIORITIES 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 anp- ply of water in the Nueces River, and in the event at apy 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 aball become sus- pended during the period of time when such supply of water in @aid 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 become effective immediately to the extent of the excess of such sufficiency. 13. • CPTICN TO PURCHASE, At amy 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 —7— 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 pur- chase 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 San Patricio plenty or to a subsidiary of Reynolds, as provided in paragraph 15 hereof, Cityts 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 Reynoldst 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 ac- tual 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, replace- ment and amortization costar prorated among all usersof 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, and to sell to s1ch Third Party end thereby terminate the option of the city to purchase, Reynolds shall notify the city of such offer. Unless within sixty days after the giving of such notice to the city, the city elects to exercise its option to purchase under this paragraph, and within the same sixty days so notifies Reynolds of such election to purchase, Reynolds may within an additional period of ninety daps accept such offer and sell said water Transportation line free of the option to purchase of City. 'In the event the City elects to exercise its option to purchase the City shall have six months from the date of notice of the intent to exercise its option to complete the purchase. 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 addi- tional 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 damages on the part of Reynolds, provided all reasonable ef- fort is by the City used to provide Reynolds plant with water. —8— 15. ASSIORABILIlRs Except for assignments to any 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 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 hereto as well as their successors and assigns. 16. CARCELLATIORs This contract may be cancelled at any time with the mutual consent of Reynolds and the governing body of City. IR WIMIES,S 91MMDF, the parties have hereto caused these presents to be duly executed this day of 1951. ` CITY OF CORPUS CHRISTI ATTESTs B ecre ary Manager APPROM AS TO LEGAL FORms ATTESTS City Attorney RaNOLDS MATZ COMPAW By c ee en QL at which elections above mentioned, the following proposition shall be submitted to the resident qualified electors of the City of Corpus Christi, Texass PROPOSITION aAw "Shall the City Council of the City of Corpus Christi be "authorised 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 renegotiation of the price of water, for certain option in the City, for assign- ment by the Reyno]da Metals Company of the rights under said 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. 3071, passed and approved by the City Council of the City of Corpus Christi on June 19s 1951. SECTION Il. 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 elections ELECTION PRECINCT NO. I POLLING PLACE Hiss-Gertrude Dreyer, Presiding Judge Artesian Park Recreation Building 'Mrs. Ottina Dorenfield, Assistant Judge 'Mrs. Wm. Biggins Clerk Miss Agnes Koniakooskys Clerk ELECTION PRECINCT NO. II Mrs. J. H. Vetters, Presiding Judge Crossley School Mrs. E. T. Wicker, Assistant Judge Mrs. Ed English, Clerk Mrs. M. L. Shepherds Clerk ELECTION PRECINCT NO. III Mrs. C. Y. Meyers, Presiding Judge Mrs. H. A. Tycer, Assistant Judge Vise Florence Hunter, Clerk Miss Frances Hunters Clerk ELECTION PRECINCT NO. IV Mrs. F. N. Underwood, Presiding Judge Mrs, C. E, Bucks Assistant Judge Mrs. E. G. Weldon, Clerk Mrs. F. E. Peckenpaugh, Clerk ELECTION PRECINCT NO. V Mrs. G. H. Lankford, Presiding Judge -Mrs. R. T. Ferguson, Assistant Judge Mrs. Walter Heidensohn, Clerk Miss Vivian Qualey, Cleric -10- Robert Driscoll Junior High School Central Church of Christ, 1610 Lawaview Morgan Avenue Fire Station ELECTION PRECINCT NO. VI Mrs, Minnie'OOConnell, Presiding Judge Lozano School Mrs, W. H. Diebl, Assistant Judge Mrs. Perry Melton, Clerk Mrs. Bryon Fulton, Clerk ELECTION PRECINCT NO. VII Mrs, Florence Gallagher) Presiding Judge R. B. Fischer School Raymond Gallagher, Assistant Judge Mrs. Emna Renken, Clerk Mrs. J. M. Morris, Clerk ELECTION PRECINCT NO. VIII a, 'Mrs.'Mable H. Liles, Presiding Judge Fannin School "7P.S, Biles) Assistant Judge Mrs; Austin C. Webb, Clerk Mrs, J. W. Hartsell, Clerk SECTION III. That said election shall be held in accordance with the statutes and the Constitution of the State of Texas and the Charter of the City of Corpus Christi, Texas. SECTION IV. That the polls will be open from 7000 o'clock A.M. to 7000 o'clock P.M. All voters desiring to support the proposition authorizing and approving the execution of the contract to the Reynolds Metals Company, a corporation, shall have written or printed on their ballots 'the following words, "FOR THE AUTHORIZATION AND APPROVAL OF THE CONTRACT TO REYNOLDS METALS COMPANY) A CORPORATION." and all those opposed to the proposition of authorizing and approving the execu- tion of the contract with the Reynolds Metals Company, a corporation, shall have written or printed on their ballots the following words, "AGAINST THE AUTHORIZATION AND APPROVAL OF THE CONTRACT WITH REINOMS METALS COMPANY, A CORPORATION." SECTION V. A substantial copy of this ordinance, signed by the Mayor of the City of Corpus Christi and attested by the City Secretary) shall consti- tute the notice of ordering of said election, and the Mayor is directed to cause a copy of this ordinance signed by him to be posted at the City Hall and at each of the voting places and each election precinct not less than twenty (20) days prior to said election, and to have a copy of this ordinance signed by him pub- lished in the Corpus Christi Times, the official newspaper of the City of Corpus M Christi, 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 less than twenty days prior to the date of said election. SECTION VI. That due returns of said election shall be made prompt - 1_p icy 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 VII. That the great public importance of the question involved and the great public importance of submitting the same to the resident qualified voters of the City of Corpus Christi, and the fact that certain laws of the State of Texas and of the City of Corpus Christi must be complied with immedi- ately, 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 date of its introduction and that such ordinance or reso- lution shall be read at three several meetings of the City Council, 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 j on the date of its introduction and take affect 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 1$th day of June, A.D. 1951. MAYOR TESTS THE CITY OF CORPUS OHRISTI,TE%AS y ecre arq . APPROVED AS TO GAL FORMS City Attorney -12- Corpus Christi, Texas TO THE HIMERS OF THE CITY COUNCIL 0 Corpus Christi, Texas • Gentlemens 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, YAYGR City of Corpus Christi, Texas The Charter rule was suspended by the following votes Leslie Wasserman IV Jack DeForrest ni ..,-"'�U'_' Berney Cott -'•On /. ,�'-' Sydney E. Herndon -�°•' George L. Lawman The above ordinance was passed by the following votes Leslie Wasserman Jack DeForrest Barney Cott -� Sydney E. Herndon - George L. Lowman 2,971