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HomeMy WebLinkAbout03235 ORD - 04/01/1952AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER OF THE CITY OF CORPUS CHRISTI FOR AND ON BEHALF OF THE CITY TO EXECUTE A CONTRACT WITH TAYLOR REFINING COMPANY RELATIVE TO THE PURCHASE OF WATER TO BE FURNISHED BY THE CITY FOR A PERIOD OF FIVE (5) YEARS BEGINNING MARCH 1, 1952, UNDER TERMS AND CONDITIONS OF THAT CERTAIN CONTRACT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: THAT THE CITY MANAGER BE AND HE IS HEREBY AUTHORIZED AND DIRECTED TO EXECUTE FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI A CONTRACT WITH TAYLOR REFINING COMPANY, RELATIVE TO THE PURCHASE OF WATER TO BE FURNISHED BY THE CITY FOR A PERIOD OF FIVE (5) YEARS BEGINNING MARCH 1, 1952, UNDER THE TERMS AND'CONDITIONS OF THAT CERTAIN CONTRACT BETWEEN SAID PARTIES, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2: THAT THE FOREGOING ORDINANCE WAS READ FOR THE FIRST TIME AND PASSED TO ITS SECOND READING ON THIS THE DAY OF , 1952, BY THE FOLLOWING VOTE: LESLIE WASSERMAN //// .JACK DEFORREST i SYDNEY E. HERNDON GEORGE L. LOWMAN FRANK E. WILLIAMSON 32 ,35 THAT THE FOREGOING ORDINANCE WAS READ FOR THE SECOND TIME AND PASSED TO ITS THIRD READING ON THIS THE -DAY OF A. D. 1952, BY THE FOLLOWING VOTE: LESLIE WASSERMAN JACK DEFORREST SYDNEY E. HERNDON v GEORGE L. LOWMAN FRANK E. WILLIAMSON THAT THE FOREGOING ORDINANCE WAS READ FOR THE THIRD TIME AND PASSED FINALLY ON THIS THE DAY OF A. D. 1952, BY THE FOLLOWING VOTE: LESLIE WASSERMAN JACK DEFORREST /tiy SYDNEY E. HERNDON GEORGE L. LOWMAN FRANK E. WILLIAMSON PASSED AND APPROVED, THIS THE �= DAY OF A. D. 1952. TEST: CITY SECRETARY OR HE CITY OF CQj2 S CHRISTI, TEXAS APPROVED AS TO LEGAL FORM: CITY A TORN Y 3a 3s I THE STATE OF TEXAS ; COUNTY OF NUECES [ WHEREAS, THE CITY OF CORPUS CHRISTI, TEXASp A MUNICIPAL CORPORATION, IS HOW THE OWNER OF ITS WATER DISTRIBUTION SYSTEM AND 13 ENGAGED IN SUPPLYING WATER FOR INDUSTRIAL AND DOMESTIC PURPOSES; AND ` WHEREAS, IN CONDUCTING SUCH BUSINESS, SAID CITY 114PWNDS f WATER USED FOR SUCH INOUSTRt41 AND DOMESTIC PURP05EIS IN A RESERVOIR LOCATED AT OR NEAR CALALLEN, TEXAS, FROM WHICH WATER IS AND WILL BE ' CONDUCTED IN MAINS AND DISTRIBUTED TO ITS USERS; AND WHEREAS, THE SAID CITY OF CORPUS CHRISTI, TEXAS, IS DESIROUS DF FURNISHING TO TAYLOR REFINING COMPANY WATER TO BE USED BY IT, ITS SUCCESSORS AND ASSIGNS, OR TO ANY CORPORATION WHICH 13 SUBSIDIARY TO OR AFFILIATED WITH TAYLOR REFINING COMPANY, IN THE OPERATION OF ITS PLANT OR PLANTS LOCATED AT OR NEAR SAID CITY OF CORPUS CHRISTIS NOd THEREFORE, THIS CONTRACT AND AGREEMENT, TH13 DAY MADE AND ENTERED INTO BY AND BETWEEN THE CITY Of CORPUS CHRISTI, TEXAS, ACTING BY AND THROUGH ITS DULY AUTHORIZED OFFICERS, HEREINAFTER CALLED "CtTY', AND TAYLOR REFINING COMPANY, A CORPORATION ACTING THROUGH ITS DULY AUTHORIZED OFFICERS, HEREINAFTER CALLED "COMPANY ", WITNESSETH: IN CONSIDERATION OF THE PREMISES AND THE SUM OF TEN DOLLARS ($10.00) CASH IN HAND PAID TO SAID CITY BY SAID:COMPAHY, T14E RECEIPT OF WHICH IS HERESY ACKHOVLEDOED, AND THE MANY BENEFITS WHICH NAVE ACCRUED TO SAID CITY BY THE CONSTRUCTION OF SAID COMPANY'S PLANT OR PLANTS HEAR THE CITY LIMITS OF SAID CITY OF CORPUS CHRISTI, AND THE FURTHER CONSIDERATION OF THE INCREASED INCOME TO SAIO CITY BY REASON OF THE SALE OF WATER TO SAID INDUSTRIAL COMPANY, ITS SUCCESSOR AND ASSIGNS, OR AFFILIATED OR SUBSIDIARY COMPANIE3, IT 15 AGREED AS FOLLOWSS 11 TREATED WATER AND _PRICE: SAID CITY AGREES TO SELL, SUBJECT TO THE COUDITION3 HEREINAFTER SET FORTH, SUCH TREATED WATER AS SHALL BE DEMANDED BY THE COMPANY IN THE OPERATION OF ITS PLANT OR PLANTS NEAR CITY OR BY AMY AFFILIATED OR SUBSIDIARY COMPANIES AT THE FOLLOW- ING RATES. (A) IF THE COMPANY SHOULD NOT CONSUME MORE THAN THE FIVE MILLION GALLONS OF TREATED WATER IN ANY ONE CALENDAR MONTH DURING THE PERIOD COVERED OY THIS CONTRACT, THE COMPANY SHALL PAY TO THE i CITY FOR ALL TREATED WATER CONSWED DURING SUCH CALENDAR MONTH THE CITY $ REGULAR INDUSTRIAL RATES FOR TREATED WATER AS SET BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS; OR (3) IF THE COMPANY SHOULD CONSUME MORE THAN FIVE MILLION GALLONS OF TREATED WATER IN ANY ONE CALENDAR MONTH DURING THE PERIOD COVERED BY THIS CONTRACT, THE COMPANY SHALL PAY TO CITY FOR ALL TREATED WATER CONSUMED BY IT DURING SUCH CALENDAR MONTH AT THE RATE OF TWELVE CENTS ($0.12) PER ONE THOUSAND GALLONS, BUT THE BILL FOR ANY ONE MONTH SHALL BE NOT LESS THAN THE AMOUNT FOR FIVE MILLION GALLONS CONSUMED, CALCULATED AS SET FORTH IN PARAGRAPH "A". It TERM OF CONTRACT: THE OBLIGATIONS OF THE PARTIES HERETO SHALL BE BINDING AND SHALL EXTEND FROM THE DATE THEREOF UP TO AND INCLUDING MARCH 1, 1957. III PLACE OF DELIVERY OF TREATED WATER: THE CITY NOW OPERATES AND MAINTAINS THREE MAIN PIPE LINES FOR THE TRANSPORTATION OF WATER FROM CALALLEN, TEXAS, TO THE CITY OF CONRU3 CHRISTI FOR DISTRIBUTION OF ITS TREATED WATER TO DOMESTIC AND INDUSTRIAL CONSUMERS IN AND NEAR THE CITY OF CORPUS CHRISTI, TEXAS, THE CITY AGREES TO DELIVER TO COMPANY TREATED WATER FROM SUCH MAINS OF THE SAME TYPE AND QUALITY AS IS FURNISHED BY IT TO 30CH DOMESTC AND INDUSTRIAL CONSUMERS, AND THE CORPORATION TO TAKE. OFF THE MAINS OF 'THE CITY AT A MUTUALLY SATISFACTORY POINT AT THE PROPERTY LINE OF THE CORPORATION REFINERY PROPERTY, AND THE - 2 M CORPORATION AGREES TO RECEIVE AND ACCEPT DELIVERY OF SUCH TREATED WATER AT SUCH POINT, OR IN ACCORDANCE WITH THE TERMS AND CONDITIONS Of THIS CONTRACT. IT IS UNDERSTOOD THAT CITY SHALL FURNISH TAPS FOR CONNECTION BY SAID CORPORATION TO SAID MAINS. IV MEASUREWNT OF WATER; THE TREATED WATER DELIVERABLE HEREUNDER SHALL BE MEASURED BY SUITABLE WATER METER OR METERS OF STANDARD MAKE, SAME TO BE FURNISHED, INSTALLED, AND KEPT IN REPAIR BY THE CITY ON THE PROPERTY OF COMPANY AT OR NEAR THE PLACE OF DELIVERY. CHECKS AS TO THE ' ACCURACY OF THE METER OR METERS SHALL BE MADE SE141''ANNUALLY. CITY $HALL NOTIFY THE COMPANY IN WRITING TEN DAYS IN ADVANCE 8F ALL SIMI- ANNUAL CHECKS AHD TEST IN ORDER THAT COMPANY MAY HAVE A REPRESENTATIVE PRESENT AS A WITNESS, S£1It- ANNUAL TESTS AS TO THE ACCURACY OF THE METER OR METERS INSTALLED BY THE CITY SHALL BE AT THE CITY'S EXPENSE. IF EITHER CITY OR COMPANY AT ANY TIME SHALL NOTIFY THE OTHER THAT IT DESIRES A SPECIAL TEST OF ANY METER, THE PARTIES SHALL COOPERATE TO SECURE All 114MEDIATC VERIFICATION OF THE ACCURACY THEREOF AND JOINT OBSERVATIONS OF ANY ADJUSTMENTS. If UPON ANY SUCH SPECIAL TESTS OF SAID METER IS FOUND TO BE LESS THAN 2 PER CENT HIGH OR LOW, THE COST <F SUCH TESTS SHALL BE PAID BY THE PARTY REQUESTING THEM; OTHERWISE, BY THE OTHER PARTY. EACH PARTY SHALL GIVE TO THE OTHER NOTICE OF THE TIME Cr ALL &UCH TEST OFFICIALLY IN ADVANCE OF THE HOLDING OF THE TESTS SO THAT THE OTHER PARTY MAY HAVE A REPRESENTATIVE PRESENT. IF UPON ANY TEST, CITY'S METERS ARE FOUND TO BE NOT MORE THAN 2 PER CENT HIGH OR LOW, PREVIOUS READINGS OF SUCH METER SHALL BE CONSIDERED CORRECT IN COMPUTING THE VOLUME OF WATER DELIVERED BY THE CITY TO COMPANY, BUT SUCH METERS SHALL BE AT ONCE PROPCRLY ADJUSTED TO RECORD ACCURATELY. IF ON ANY TESTS, CtTY'S METERS SHALL BE FOUND TO BC INACCURATE BY AN AMOUNT EXCEEDING $ PER CENT THEN ANY PREVIOUS READING OF SUCH METERS SHALL BE CORRECTED FOR ANY PCRIOO WHICH IS DEFINITELY KNOWN OR AGREED UPON, OUT NO SUCH CORRECTIONS SHALL EXTEND BACK OVER A PERIOD BEGINNING N011E THAN FIFTEEN (15) DAYS PRIOR TO THE TIME WHEN SUCH INACCURACY WAS FIRST HADE KNOWN BY - 3 - v EITHER PARTY TO THE OTHER. IF FOR ANY REASON CITY'S METER OR METERS ARE OJT OF SERVICE 50'T'14AT THE VOLUME OF WATER DELIVERABLE HEREUNDER CANNOT BE ASCERTAINED OR COMPUTED FROM METER READINGS THEREOF, THE WATER DELIVERED DURING THE PERIOD OF SUCH METER OR METERS ARE OUT OF SERVICE SHALL BE ESTIMATED AND AGREED UPON OY THE PARTIES HERETO UPON THE BASIS OF THE BEST DATA AVAILABLE. V PRESSME: AT THE POINT OF DELIVERY OF TREATED WATER CITYtBNALL AT ALL TIME$ MAINTAIN A PRESSURE IN SUCH AMOUNT THAT THE SAME SINAIo,L NOT BE LESS THAN FORTY POUNDS PER SQUARE INCH AT SUCH POINT AND SHALL .g3EEATAK£ TO MAINTAIN AN AVCRAGE PRESSURE OF FIFTY POUNDS PER SQUARE INCH. , VI PAYWNTSs PAYM£KTS FOR ANY AND ALL WATER SOLD BY SAVD CITY TO COMPANY SHALL VIE MADE HOMT14LY AT THE OFFICE OF THE CITY WATER bZPARimENT AT THE CITY HALL OF CORPUS CHRISTI, TEXAS, AND ALL 3# LLS THER3FOR!SHALL BE PAID ON OR BEFORE THE 20TH DAY OF THE SUCCEEDING MONTH AFTER SAME ACCRUED. STATEHEUTS SHALL O£ MAILED TO SAID COMPANY AT CORPUS CHRISTI, TEXAS, ON THE 1ST DAY OF EACH MOUTH, SHOWING THE VOLUME OF WATER AND THE SUM OF MONEY DUE CITY FOR WATER SOLD AND DELIVERED TO COMPANY DURING THE PRECEDING CALENDAR MONTH. ' _ VII ' PRIORITIES: THIS CONTRACT i8 ENTERED INTO AND THE SALE OF WATER HEREUNDER 19 MADE SUBJECT AT ALL TIMES'TO THE PRIOR RIONTS OF DOMESTIC AND iNDUSTRIAL CONSUMERS WIT14IN THE CITY LIMITS OF THE CITY OF CORPUS CHRiSTJ, TEXAS, TO THE SUPPLY OF WATER IN THE NUECE$ RIVER, AND IN THE EVENT AT ANY TIME THE SUPPLY OF WATER in THE NUECES RIVE„? SHALL BE SO DIMINISHED AS TO JEOPARDIZE THE THEN SUPPLY OF WATER TO SUCH•+CCNSUMERS, THEN IN SUCH EVENT, THIS CONTRACT SHALL BECOME SUSPENDED DURING THE PERIOD OF TIME WHEN SUCH SUPPLY OF WATER IN SAID RiY£R is SO Dii41NISHED, "OUT IMMEDIATELY i7PON THE SUPPLY OF WATER IN SAID RIVER DECODING AGAIN SIIFFI -' CIENT FOR THE'FORESEEABLE NEEDS OF DOMESTIC AND INDUSTRIAL CONSUMERS WITH- IN THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI, THIS CONTRACT SHALL. IMMEDIATELY BECOME AGAIR EFFECTIVE TO THE EXTENT OF THE EXCESS OF SUCH SUFFICIENCY, VIII RESTRICTIONS ON RESALE: IT 1S DISTINCTLY UNDERSTOOD AND AGREED THAT $AID COMPANY SHALL NOT DELIVER OR SELL WATER OBTAINED UNDER THIS CONTRACT TO ANY OTHER PERSON, FIRM OR CORPORATION, £XCtPT 4CH PC•RSDNS, FRIMS, AND CORPORATIONS WHICH ARE AFFILIATED WITH OR SUBSIDIARY TO THIS COMPANY AND EXCEPT FURTHER TO SHIPS, STEAMCRS, AND FREIGHTERS OR ANY OTHER CRAFT DELIVERING OR RECEIVING TONNAGE FROM SAID COMPANY OR ITS SUBSIDIARY OR AFFILIATED COMPANIES. Ix FIXED HINIMM OBLIGATION: THIS CONTRACT 114POSES NO OBLIGATION UPON COMPANY TO PURCHASE ANY MINIMUM AMOUNT OF WATER 10 ANY CALENDAR NORTH THROUGHOUT THE PERIOD OF THIS CONTRACT, BUT COMPANY SHALL PAY DURING THE LIFE OF THIS CONTRACT THE MINI" SUM OF TWENTY -FIVE DOLLARS ($25.00) PER MONTH, IRRESPECTIVE OF WHETHCR ANY WATER IS USED OR NOT, SAME TO BE PAYABLE ON OR BEFORE THE 20TH DAY OF EACH MONTH FOR THE PRE- CEDING CALENDAR MONTH; PROVIDED, HOWEVER, IF THE VOLUME OF WATER CONSUMED BY COMPANY AT THE APPLICABLE RATE HEREINA13OVE SET FORTH DURING ANY CALENDAR MONTH AMOUNTS TO MORE THAN TWENTY -FIVE DOLLARS ($25.00), THEN SUCH FIXED MONTH SUM OF TWENTY -FIVE DOLLARS ($25.00) SHALL DE CREDITED UPON THE AMOUNT DUE. HOWEVER, IF THE VOLUME OF WATER CONSUMED BY COMPANY AT THE APPLICABLE RATE NEREINABOVE SET FORTH DURING ANY CALENDAR MONTH AMOUNTS TO LESS THAN THE FIXED SUM OF TwFUTY -FIVE DOLLARS ($25.00), THEN, IN ADDITION TO THE PAYMEUT FOR SUCH WATER, COMPANY SHALL PAY THE DIFFERENCE BETWEEN THE AMOUNT DUE THE CITY FOR WATER ACTUALLY CONSUMED AND THE SUM OF TWENTY -FIVE DOLLARS ,$25.00). SAID SUMS SHALL BE PAYABLE AT THE TIME AND PLACE HEREtRABOVE PROVIDED FOR. x RIGHT OF COMPANY TO TER1INATE CONTRACT; IF THE PLANT OR PLANTS OF COMPANY OR ANY OR ALL OF ITS SUBSIDIARY OR AFFILIATED COMPANIES SHOULD FOR ECONOMIC REASONS OR ANY OTHER REASON OR REASONS BECOME INOPERATIVE OR SHUT DOWN FOR A PERIOD OF AT LEAST TWELVE (12) CONSECUTIVE MONTHS, THEN, IN SUCH EVENT, COMPANY MAY, SY'GIVING THIRTY (30) DAYS WRITTEN NOTICE, ADDRESSED TO IT BE REGISTERED NAIL AT CORPUS CHRISTI, TEXAS, CANCEL AND TERMINATE THIS CONTRACT IN ITS ENTIRETY. IF COMPANY SHOULD ELECT TO GIVE AND ACTUALLY GIVES CITY SAID WRITTEN NOTICE, THEN AFTER THE EXPIRATION OF THIRTY DAYS FROM THE DATE SAID NOTICE IS MAILED TO CITY, AS ABOVE PROVIDED, THIS CONTRACT SHALL, IN ALL PROV1$i'ONS, BECOME NULL AND VOID. ! XI FORCE MAJELIRE: IF CITY SHOULD BE PREVENTED, WHOLLY OR IN PART FROM FULFILLINO ITS OBLIGATIONS UNDER THIS CONTRACT BY REASON OF AN ACT OF GOO, UNAVOIDABLE ACCIDENT, ACTS OF ENEMY, STRIKES, FIRES, FLOOD$, GOVERNMENTAL RESTRAINT OR REGULATION, OR OTHER CASES OF FORCE MAJELRE, 714EN THE OBLIGATIONS OF CITY TO DELIVER WATER TO COMPANY, AS HEREINAOOVE PROVIDCD, SHALL BE TEMPO- RAR;LY SUSPENDED DURING CONTINUATION OF SUCH FORCE MAJEURE• NO DAMAGE SHALL BE RECOVERABLE BY COMPANY FROM CITY BY REASON OF THE TEMPORARY SUSPENSION OF DELIVERIES OF ^WATER DUE TO ANY OF THE CAUSES ABOVE MENTIONED. IF THE CITI•IS OBLIGATION SHOULD BE AFFECTED BY AMY OF SUCH CAUSES, CITY SHALL PROMPTLY NOTIFY COMPANY IN WRITING, GIVING FULL PARTICULAR$ OF SUCH FORCE MAJEURE AS SOON AS POSSIBLE AFTER OCCUR£NCE Of THE CAUSE OR CAUSES RELIED UPON. X11 ASSIG AMITY: THIS CONTRACT HAY DE ASSIGNED ONLY WITH THE WRITTEN CONSENT OF THE GOVERNING BODY OF THE CITY, BUT IF ASSIGNED, THIS CONTRACT SHALL BE BINDING UPON PARTIES HERETO AS WELL AS THEIR SUCCESSORS AND ASSIGNS. Xlll GDJUSTPENT OF PRICES: NDT WITHSTANDING ANY OF THE PROVISIONS OF THIS CONTRACT, IT IS AGREED THAT THE PRICES PROVIDED HEREIN ARE SUBJECT TO ADJUSTMENT i^ UPWARD TO THE EXTENT THAT IN NO EVENT 'SHALL THE CITY BE COMPELLED TO FURNISH WATER, UNDER THE PROVISIONS OF THIS CONTRACT, AT A PRICE LOWER THAN THAT CHARGED TO ANY OTHER CONSUMER OF WATER, HAVING A POINT OF DELIVERY OUTSIDE THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI, AND USING WATER IN COMPARABLE QUANTITICS. IN WITNESS WHEREOF, THEPARTIES HAVE HERETO CAUSED THESE PRESENTS TO BE DULY EXECUTED THIS DAY OF , 1952- ATTEST: CITY OF CORPUS CHRISTI, TEXAS: 0Y: CITY WANAGER APPROVED AS TO LEGAL FORM: CITY ATTORNEY ATTEST: TAYLOR REFINING COMPANY PRESIDENT - 6 -