HomeMy WebLinkAbout03417 ORD - 02/03/1953AN ORDINANCE y //'
AUTHORIZING AND DIRECTING THE CITY
MANAGER OF THE CITY OF CORPUS CHRISTI
FOR AND ON BEHALF OF THE CITY TO
EXECUTE A CONTRACT WITH COLUMBIA - SOUTHERN
CHEMICAL CORPORATION RELATIVE TO THE
PURCHASE OF WATER TO BE FURNISHED BY
THE CITY FOR A PERIOD OF FIVE(5) YEARS
BEGINNING JANUARY31, 1953, UNDER TERMS
AND CONDITIONS OF THAT CERTAIN CONTRACT,
A COPY OF WHICH IS ATTACHED HERETO AND
MADE A PART 1HEREOF:
BE IT ORDAINED BY HIL CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SE ION 1: THAT THE CITY MANAGER BE AND HE IS HEREBY
AUTHORIZED AND DIRECTED,)fO EXECUTE FOR AND ON BEHALF OF THE CITY
OF CORPUS CHRISTI A CONTRACT WITH COLUMBIA — SOUTHERN CHEMICAL CORPO-
RATION, RELATIVE TO THE PURCHASE OF WATER TO BE FURNISHED BY THE
CITY FOR A PERIOD OF FIVE (5) YEARS BEGINNING JANUARY31, 1953,
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 P: THAT THE FOREGOING ORDINANCE WAS READ FOR
THE FIRST TIME AND PASSED TO ITS SECOND READING ON THIS THE 1/7 jcik
t7jcik
DAY OF , 1953, BY THE FOLLOWING VOTE:
ESLIE WASSERMAN, MAYOR
FRANK E. WILLI AMSON
JACK DEFORREST
GEORGE L. LOWMAN
MIKE A. NEEDHAM, JR.
341-7
THAT THE FOREGOING ORDINANCE
WAS READ FOR THE SECOND
TIME AND PASSED TO ITS THIRD READING
ON THIS THE .7-7-& DAY
OF , A. D. 1953, BY
THE FOLLOWING VOTE:
LESLIE WASSERMAN, MAYOR
FRANK E. WILLIAMSON
JACK DEFORREST
GEORGE L. LOWMAN
MIKE A. NEEDHAM, JR.
THAT THE FOREGOING ORDINANCE
WAS READ FOR THE THIRD TIME
AND PASSED FINALLY ON THIS THE. �^
DAY OF
A. D. 1953, BY THE FOLLOWING VOTE:
LESLIE WASSERMAN, MAYOR
FRANK E. WILLIAMSON
JACK DEFORREST
GEORGE L. LOWMAN
MIKE A. NEEDHAM, JR.
PASSED AND APPROVED, THIS THE j-":L DAY OF
A. D. 1953•
TTEST:
CITY'SECAETARY
APPROVED AS TO LEGAL FORM:
CITY ATTORNEY
LIJAAAAA.
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
3'i I -�
THE STATE OF TEXAS
C04JNTY OF NUECES
WHEREAS, THE CITY OF CORPUS CHRISTI, TEXAS, A MUNICIPAL
CORPORATION, IS NOW 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 IMPOUNDS
WATER USED FOR SUCH INDUSTRIAL AND DOMESTIC PURPOSES IN A RESERVOIR
LOCATED AT OR NEAR CALALLmp TEXAS, FROM WHICH SUCH WATER IS AND WILL
BE CONDUCTED IN MAIN$ AND DISTRIBUTED TO ITS USERS; AND
WHEREAS, THE SAID CITY OF CORPUS CHRISTI, TEXAS, IS DESIROUS
OF FURNISHING TO COLIJMBiA- SOUTHERN CHEMICAL CORPORATION, A DELAWARE
CORPORATION WITH A PERMIT TO DO BUSINESS IN TEXAS, WATER TO BE USED
BY IT, ITS SUCCESSORS AND ASSIGNS, OR TO ANY CORPORATION WHICH IS
SUBSIDIARY TO OR AFFILIATED WITH COLUMBIA- SOUTHERN CHEMICAL CORPORA -
Ti ON, IN THE OPERATION OF ITS PLANT OR PLANTS LOCATED NEAR SAID CITY
OF CORPUS CHRISTI:
NOW, THEREFORE, THIS CONTRACT AND AGREEIEAIT, THIS DAY MADE
AND ENTERED INTO BY AND BETWEEN THE CITY OF CORPUS CHRISTI, TEXA3,
ACTING BY AND THROUGH ITS DULY AUTHORIZED OFFICERS, HEREINAFTER CALLED
"CITY !', AND SAID COLUMBIA- SOUTHERN CHEMICAL CORPORATION, ACTING SY
AND THROUGH ITS DULY AUTHORIZED OFFICERSA HEREINAFTER CALLED "COLUMBIA-
SOUTHERN .,
W I T N E S S E T H:
IN CONSIDERATION OF THE PREMISES AND THE SUM OF TEN
DOLLA03 ($IO:OD) CASH IN HAND PAID TO CITY BY COLUMBIA-SOUTHERN, THE
RECEIPT OF WHICH IS HERESY ACKNOWLEDGED, AND THE MANY BENEFITS WHICH
HAVE ACCRUED TO SAID CITY BY THE CONSTRUCTION OF SAID COLUMBIA- SOUTNERNIS
PLANT OR PLANTS NEAR THE CITY OF CORPUS CHRISTI, AND THE FURTHER CON-
SIDERATION OF THE INCREASED INCOME TO SAID CITY BY REASON OF THE SALE
OF TREATED WATER TO SAID COLUMBIA- SOUTHERN, ITS SUCCESSORS AND ASSIGNS,
OR AFFILIATED OR SUBSIDIARY COMPANIES, (ALL OF WHICH ARE COLLECTIVELY
INCLUDED IN THE REFERENCES TO COLUMBIA- SOUTHERN HEREIN MADE),
IT IS AGREED AS FOLLOWS:
TREATED WATER AND PRICE: CITY AGREES TO SELL, SUB-
JECT TO THE CONDITIONS HEREIMAFTER SET FORTH, SUCH TREATED WATER
AS SHALL BE DEMANDED BY COLUMBIA - SOUTHERN IN THE OPERATION OF
ITS PLANT OR PLANTS NEAR SUCH CITY AT THE FOLLOWING RATES:
(A) IF COLUMBIA - SOUTHERN CONSUMES LESS THAN FIVE
MILLION GALLONS OF TREATED WATER IN ANY CALENDAR MONTH DURING
THE PERIOD COVERED BY THIS CONTRACT, COLUMBIA - SOUTHERN SHALL
PAY TO THE CITY FOR ALL TREATED WATER CONSUMED DURING SUCH CALENDAR
MONTH THE CITY'S REGULAR INDUSTRIAL RATES FOR TREATED WATER AS SET
BY THE CITY COUNCIL OF CORPUS CHRISTI TEXAS, OR
(e) IF COLUMBIA- SOUTHERN CONSUMES MORE THAN FIVE
MILLION GALLONS OF TREATED WATER IN ANY CALENDAR MONTH DURING
THE PERIOD COVERED BY THIS CONTRACT, COLUMBIA - SOUTHERN 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,
FOR ALL SUCH WATER Sfl CO- NSUMED BY IT DURING SUCH CALENDAR MONTH.
HOWEVER, DURING ANY SUCH MONTH THE MINIMUM BILL THEREFOR SHALL NOT
BE LESS THAN THE AMOUNT FOR FIVE MILLION GALLONS CONSUMED IF CAL-
CULATED IN ACCORDANCE WITH SUB- PARAGRAPH (A) ABOVE.
TERMS OF CONTRACT: THE OBLIGATIONS OF THE PARTIES HERETO
SHALL BE BINDING AND SHALL EXTEND FROM THE DATE HEREOF UP TO AND
INCLUDING JANUARY 31, 1958.
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PL-CE OF DELIVERY OF TRUTED WATER: CITY NOW OPERATES AND
MAINTAINS THREE MAIN PIPE LINES FOR THE TRANSPORTATION OF WATER FROM
CALALLEN, TEXAS, TO THE CITY OF CORPUS CHRISTI FOR DISTRIBUTION
OF THE SAME TO DOMESTIC AND INDUSTRIAL CONSUMERS IN AND NEAR THE
CITY OF CORPUS CHRISTI, TEXAS. CITY AGREES TO DELIVER TO COLUMBIA-
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SOUTHERN TREATED WATER FROM SUCH MAINS OF THE SANE TYPE AND QUALITY'
AS IS FURNISHED BY IT TO SUCH DOMESTIC AND INDUSTRIAL CONSUMERS, AND
COLUMBIA- SOUTHERN AGREES TO TAME THE SAME FROM THE MAINS OF THE CITY
AT A POINT TO BE AGREED ON UY THE PARTIES HERETO AS REAR AS REASONABLY
PRACTICABLE TO THE MAIN PLANT OF COLUMBIA - SOUTHERN, ALL IN .ACCORDANCE
WITH THE TERMS AND CONDITIONS OF THIS CONTRACT. IT 15 UNDERSTOOD
THAT CITY SHALL FURNISH TAPS FOR CONNECTION By COLUMBIA- SOUTHERN TO
SAID MAINS.
IV
MUSUREWNT OF WATER: THE TREATED WATER DELIVERABLE HERE-
UNDER SHALL BE MEASURED rY A SUITABLE WATER METER OR METERS OF STAN-
DARD MAKE, SAME TO BE FURNISHED, INSTALLED, AND KEPT IN REPAIR BY THE
CITY ON THE PROPERTY OF COLUMBIA- SOUTHERN AT OR NEAR THE PLACE OF DE-
LIVERY. CHECKS AS TO THE ACCURACY OF THE METER OR METERS SHALL BE
MADE SEMI - ANNUALLY. CITY SHALL NOTIFY COLUMBIA- SOUTHERN IN WRITING
TEN (10) DAYS IN AOVANCE OE ALL SEMI- ANNUAL CHECKS AND TESTS IN ORDER
THAT COLUMBIA- SOUTHERN MAY HAVE A REPRESENTATIVE PRESENT AS A WITNESS.
SEMI- ANNUAL TESTS AS TO THE ACCURACY OF THE METER OR METERS INSTALLED
$Y THE CITY SHALL BE AT THE CITY'S EXPENSE, IF EITHER CITY OR COLUMBIA -
SOUTHERN AT ANY TIME SHALL NOTIFY THE OTHER THAT IT DESIRES A SPECIAL
TEST OF ANY METER, THE PARTIES SHALL COOPERATE TO SECURE AN IMMEDIATE
VERIFICATION OF 719E ACCURACY THEREOF AND JOINT OBSERVATIONS OF ANY AD-
JUSTMENTS. IF UPON ANY SUCH SPECIAL TEST OF ANY METER THE SAME IS
FOUND TO BE LESS THAN TWO PER CENT 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 NOTICE OF THE TIME OF ANY SUCH TEST
REASONABLY IN ADVANCE OF THE H0;..7IMG OF THE TEST SO THAT THE OTHER
PARTY MAY HAVE A REPRESENTATIVE PRESENT. IF UPON ANY TEST, SUCH METER
IS FOUND TO BE NOT MORE THAN TWO PER CENT HIGH OR LOW, PREVIOUS
READINGS OF THE SAME SHALL BE CONSIDERED CORRECT IN COMPUTING THE
VOLUME OF WATER DELIVERED BY THE CITY TO COLUMBIA- SOUTHERN,, BUT SUCH
METER SHALL BE AT ONCE PROPERLY ADJUSTED TO RECORD ACCURATELY. IF ON
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ANY TEST, CITY'S METER SHALL BE FOUND TO BE INACCURATE BY AN
AMOUNT EXCEEDING TWO PER CENT, THEN ANY PREVIOUS READING OF SUCH
METERS SHALL BE CORRECTED FOR ANY PERIOD 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. !F FOR AMY REASON CITY'S METER IS OUT OF
SERVICE SO THAT THE VOLUME OF WATER DELIVERAOLE HEREUNDER CANNOT
BE ASCERTAINED OR COMPUTED FROM METER READINGS THEREOF, THE
WATER DELIVERED DURING THE PERIOD SUCH METER IS OR WAS OUT OF
SERVICE SHALL BE ESTIMATED AND AGREED UPON BY THE PARTIES HERE-
TO UPON THE BASIS OF THE BEST DATA AVAILABLE.
Y
PRESSME: A..T THE POINT OF DELIVERY OF SUCH WATER CITY
SHALL AT ALI. TIMES MAINTAIN A PRESSURE OF NOT LESS THAN FORTY
POUNDS PER SQUARE IM:H AND SHALL UNDERTAKE TO MAINTAIN AN AVERAGE
PRESSURE OF FIFTY POUNDS PER SQUARE INCH.
Vk
PAYMENTS- PAYMENTS FOR ANY AMU ALL WATER SOLO BY CITY TO
COLUMBIA- SOUTHERM SHALL BE MADE MONTHLY AT THE OFFICE OF THE CITY
WATER DEPARTMENT AT THE CITY HALL OF CORPUS CHRISTI, TEXAS, AND ALL
BILLS THEREFOR SHALL BE PAID ON OR BEFORE THE ZOTH DAY OF EACH MONTH
FOR ALI. WATER SOLD AND DELIVERED HEREUNDER DURING THE PRECEEDIMG
CALENDAR MONTH. STATEMENTS SMALL BE MAILED BY CITY TO COLUMBIA -
SOUTHERN AT CORPUS. CHRIST), TEXAS, ON OR BEFORE THE 70TH DAY OF EACH
MONTH/ SHOWING THE VOLUME OF WATER DELIVERED AND THE SUM OF MONEY DUE
CITY THEREFOR DURING EACH PRECEDING CALENDAR MONTH.
W11
MORIT1ES: THIS CONTRACT IS EMTEREO INTO AND THE SALE
Or WATER HEREUNDER 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, AND TO THE SUPPLY OF WATER IN THE
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HUEC£S RIVER. IN THE EVENT AT ANY TIME THE SUPPLY OF WATER IN
THE NUECES RIVER SMALL BE 30 DIMINISHED AS TO JEOPARDIZE: THE
THEN SUPPLY OF WATER TO SUCK CONSUMERS, THIS CONTRACT SHALL BE-
COME 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
FORESEEABLE NEEDS OF DOMESTIC AND INDUSTRIAL CONSUMERS WITHIN
THE CITY LIMITS Of THE CITY OF CORPUS CHRISTIS THIS CONTRACT SHALL
IMMEDIATELY BECOME AGAIN EFFECTIVE TO THE EXTENT OF THE EXCESS
OF SUCH SUFFICIENCY.
Vill
RESTRICTIONS ON RESALE: IT IS DISTINCTLY UNDERSTOOD
AND AGREED THAT SAID COLUMBIA - SOUTHERN SMALL NOT DELIVER OP. SELL
WATER OBTAINED UNDER THIS CONTRACT TO ANY OTHER PERSON, FIRM OR
CORPORATION, EXCEPT SUCK PERSONS, FIRMS, AND CORPORATIONS WHICH
ARE AFFILIATED WITH OR SUBSIDIARY TO THI5 COMPANY AND EXCEPT FUR-
THER TO SHIPS, STEAMERS, AND FREIGHTERS OR ANY OTHER CRAFT DE-
LIVERING OR RECEIVING TONNAGE FROM SAID COLUMBIA- SOUTHERN OR ITS
SUBSIDIARY OR AFFILIATED COMPANIES.
Ix
FIXED MINIMUM 013L1G.-M ON: THIS CONTRACT IMPOSES NO OBLI-
GATION UPON COLUMBIA - SOUTHERN TO PURCHASE ANY MINIMUM AMOUNT OF
WATER IN ANY CALENDAR MONTH THROUGHOUT THE PERIOD Of THIS CONTRACT,
BUT COLUMBIA - SOUTHERN SHALL PAY DURING THE LIFE OF THIS CONTRACT
THE MINIMUM SUM OF TWENTY -FIVE DOLLARS ($25.00) PER MONTH, REGARD-
LESS Of WHETHER ANY MATER IS USED OR NOT, THE SAME TO BE PAYABLE ON
OR BEFORE THE `LOTH DAY OF EACH MONTH FOR THE PRECEDING CALENDAR MONTH;
PROVIDED, HOWEVER, IF THE VOLUME OF WATER CONSUMED BY COLUMBIA -
SOUTHERN AT THE APPLICABLE RATE HEREINASOVE SET FORTH DURING ANY
CALENDAR MONTH AMOUNTS TO MORE THAN TWENTY -FIVE DOLLARS (,bj-00) I
THEN SUCH FIXED MONTHLY SUM Of TWENTY -FIVE DOLLARS ($25.00) SMALL BE
CREDITED UPON THE AMOUNT DUE. HOWEVER, IF THE VOLUME OF WATER CONSUMED
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BY COLUMBIA - SOUTHERN AT THE APPLICABLE RATE HEREINABOVE SET FORTH
DURING ANY CALENDAR MONTH AMOUNTS TO LESS THAN THE FIXED SUN OF
TWENTY -FIVE DOLLARS ($25.00), THEN IN ADDITION TO THE PAYMENT FOR
SUCH WATER ACTUALLY CONSUMED COLUMBIA- SOUTHERN SMALL PAY THE
DIFFERENCC BETWEEN THE AMOUNT DUE THE CITY FOR WATER ACTUALLY
SO CONSUMED AND THE SUM OF TWENTY -FIVE DOLLARS ($25.00). SAID
SUMS SHALL BE PAYASLa AT THE TIME AND PLACE HEREINA00VE PROVIDED
FOR.
X
RIGHT OF COLUMBIl',- SOUTHERN TO TERMIN:TE CONTRACT: IF FOR
ANY REASON THE PLANT OR PLANTS OF COLUMBIA - SOUTHERN SHOULD SHUT DOWN
OR BECOME INOPERATIVE FOR A PERIOD OF AT LEAST TWELVE (I2) CONSEEU-
TIVE MONTHS, THEN COLUMBIA- SOUTHERN MAY CANCEL AND TERMINATE THIS
CONTRACT IN ITS ENTIRETY BY GIVING THIRTY (30) DAYS WRITTEN NOTICE
TO CITY BY REGISTERED MAIL ADDRESSED TO IT AT CORPUS CHRISTI, TEXAS.
IF COLUMBIA- SOUTHERN GIVES CITY SAID WRITTC14 NOTICE, THEN AFTER THE
EXPIRATION OF THIRTY (30) DAYS FROM THE DATE SAID NOTICE IS MAILED
TO CITY, AS ABOVE PROVIDED, THIS CONTRACT SHALL BECOME NULL AND VOID.
Xi
FORCE MAJEURE: IF CITY SHOULD BE PREVENTED, WHOLLY OR IN
PART FROM FULFILLING ITS OBLIGATIONS UNDER THIS CONTRACT BY REASON
OF ANY ACT OF GOD, UNAVOIDABLE ACCIDENT, ACTS OF ENEMY, STRIKES, FIRES,
FLOODS, GOVERNMENTAL RESTRAINT OR REGULATION, OR OTHER CAUSES OF
FORCE MAJEURE, THEN THE OBLIGATIONS OF CITY TO DELIVER WATER TO
COLUMBIA- SOUTHERN, AS MEREINABOVE PROVIDED, SHALL BE TEMPORARILY
SUSPENDED DURING CONTINUATION Of SUCH FORCE MAJEURE. NO DAMAGE SHALL
BE RECOVERABLE BY COLUMBIA - SOUTHERN FROM CITY BY REASON OF THE TEMPO-
RARY SUSPENSION OF DELIVERIES OF WATER DUE TO ANY OF THE CAUSES ABOVE
MENTIONED. IF THE CITY'S OBLIGATION SHOULD HE AFFECTED BY ANY SUCH
CAUSES, CITY SHALL PROMPTLY NOTIFY COLUMBIA - SOUTHERN IN WRITING,
GIVING FULL PARTICULARS OF SUCH FORCE MAJEURE AS SOON AS POSSIBLE
AFTER THE OCCURRENCE OF THE CAUSE OR CAUSES RELIED UPON.
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ASSIGNABILITY: THIS CONTRACT MAY BE ASSIGNED ONLY WITH
THE WRITTEN CONSENT OF THE GOVERNING BODY OF THE CITY, BUT IF
ASSIGNED, THIS CONTRACT VNALL SE BINDING UPON THE PARTIES HERETO AS
WELL AS THEIR SUCCESSORS AND ASSIGNS.
xIII
+ DJUSTMENT OF PRICES: NOTWITHSTANDING ANY OF THE PRO-
VISIONS OF THIS CONTRACT, IT IS AGREED THAT THE PRICES PROVIDED HERE-
IN ARE SUBJECT TO ADJUSTMENT UPWARD TO THE EXTENT THAT IN NO EVENT
SHALL THE CITY Or 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 QUANTITIES.
XIV
TERMINATION OF PRIOR AGREEMENT: UPON THE EXECUTION OF THIS
AGREEMENT BY ALL OF THE PARTIES THERETO THE CONTRACT DATED SEPTEMBER
20, 1933 BETWEEN THE CITY OF CORPUS CHRISTI AND SOUTHERN ILKALI COR-
PDRATION WILL AUTOMATICALLY BE TERMINATED.
IN WITNESS WHEREOF, THE PARTIES HAVE HERETO CAUSED THESE
PRESENTS TO BE DILLY EXECUTED THIS DAY OF y
1953.
ATTEST: CITY OF CORPUS CHRISTI, TExr:S
BY
CITY MANAGER
CITY SECRETARY
;,PPROVED AS TO LEGAL FORM:
CITY ,ATTORMrY
COLUMBIA - SOUTHERN CHEMICAL CORPORATION
ATTEST:
BY
PRESIDENT
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