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
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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
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