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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. [it 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- -2- 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 -3- 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 -14- 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 -5- 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. -6- xii 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 -7-