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HomeMy WebLinkAbout04406 ORD - 12/07/1955MEM:11 /14/55 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI TO EXECUTE A CONTRACT WITH SINCLAIR OIL & GAS COMPANY WHEREBY THE CITY AGREES TO SELL TREATED WATER TO SINCLAIR OIL & -GAS COMPANY, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SAID CONTRACT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER BE, AND HE 15 HEREBY AUTHORIZED AND DIRECTED FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI TO EXECUTE A CONTRACT WITH SINCLAIR OIL & GAS COMPANY WHEREBY THE CITY AGREES TO SELL TREATED WATER TO SINCLAIR OIL & GAS COMPANY, IN ACCORD- ANCE WITH THE TERMS AND CONDITIONS OF SAID CONTRACT, A COPY OF WHICH 15 ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THE NECESSITY FOR FURNISHING TREATED WATER TO SINCLAIR OIL & GAS COMPANY FOR INDUSTRIAL PURPOSES CREATES APUBLIC 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 RE- SOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST, AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED, AND THAT THIS OR- DINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE IT IS ACCORD- INGLY SO ORDAINED. PASSED AND APPROVED THIS / DAY OF NOVEMSE , 1955. MAYOR THE CITY OF CORPUS CHRISTI, TEXAS AT 7RET V APPROVED AS T LEGAL FORM: NOVEMBER , 1955 I. M. SINGER, CITY TORNEY q4Cce t 4, THE STATE OF TEXAS COUNTY OF NUECES � WHEREAS, the City of Corpus Christi, Texas, a municipal dorpora tion, is now the owner of.itp water distribution system and is enga.j�ed in supplying water for industrial and domestic purposes; and WHEREAS; in conducting such business, said City impqunda Water'. used for such industrial and domestic purposes in a reservoir located at or near CAlalle.n, Texas, from which such water is and will be ponducted in mains and distributed to its users; and WHEREAS, the said City of Corpus Christi, Texas, is desirous of furnishing water to Sinclair Oil &.Gas Company, a Maine Corporation, subject to the terms and conditions hereinafter set out. NOW, THEREFORE, THIS CONTRACT AND AGREEMENT, this day made ano entered into by and between the City of Corpus Christi, Texas, acting by and through its'duly authorized officers, hereinafter called "City ", and said Sinclair Oil, & Gas Company, acting by and through its duly author- ,zed officers, hereinafter called "Sinclair ". W I.T N E S S E T H: In consideration of the premises and the sum of Ten Dollars ($10.00) cash in hand paid to City by Sinclair, the receipt of which is hereby acknowledged, and the many benefits which have accrued to said City by the construction of said Gas Products Plant #20 near the City of Corpus Christi, and the further consideration of the increased in- come to said City by reason of the sale of treated water to said Sin- clair, it iz agreed as follows: I TREATED WATER AND PRICE: City agrees to sell, subject to the conditions hereinafter set forth, such treated water as shall be demanded by Sinclair in the operation of its plant near such City, and for waph other purposes as may be permitted by this agreement, at Cityfs regular industrial rates (inside city limits) for treated water as set by the City Council of Corpus Christi, Texas, from time to time. Such monthly -1- rates presently are: 0 to 500,000 Gals .... 90.00 That part from... 500,000 to 1,000,000 Gals.... 1S per thousand gals. That pant from... 1,000,000 to 1,500,000 Gals.... .16 per thousand gala That part from... 1,500,000 to 2,000,000 Gals.... .15 per thousand gals. That part from... 2,000,000 to 2,500,000 Gals.... .14 per thousand gals. That part from... 2,500,000 to 3,000,000 Gals.... .13 per thousand gals. All over - 3,000,000 Gals.... .12 per thousand gals. It being understood the minimum payment (0- 500,000 gallons) is $90.00 per month. lI. TERMS OF CONTRACT: The obligations of the parties hereto shall be binding and shall extend from the date hereof up to and including November 1, 1960. III. PLACE OF DELIVERY OF TREATED 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 ce the same to domestic and industrial consumers in and near the City of Corpus Christi, Texas. City agrees to deliver to Sinclair treated water From such mains of same type and quality as is furnished by it to such domes- tic and industrial consumers, and Sinclair agrees to take the same from the Mains of the City at a point to be agreed on by the parties hereto as near as reasonably practicable to the main plant of Sinclair, all In accordance with the terms and conditions of this contract. it is under- stood that City shall furnish taps for connection by Sinclair to said mains: provided however, that equipment furnished and installed by Sin- clair for receiving water hereunder shall be of standard design approved by City, but such approval shall not be unreasonably withheld. IV. MEASUREMENT OF WATER: The treated water deliverable here- under shall be measured by a suitable water meter or meters of standard make, same to be furnished, installed, and kept in repair by the City on the property of Sinclair at or near the place of delivery, Sinclair to be billed for the actual cost of tap and meter. Checks as to the accuracy -2- of the meter or ineters -hall be mad- semi- annually. City shall notify Sinclair in writin• tan (10) days in :1i vancr: of all sami- annual checks and tests in order that Sinclair ma; have a representative present as a witness. If either City or Sinclair at any time shall notify the other that it desires a special test of any meter, the parties shall cooperate to secure an iinedi.ate verification of the accuracy thereof and joint observations of any adjustments. All tests shall be made at City's expense, except that Sinclair shall bear the expense of tests made at its request if the inaccuracy found is two per cent (2%) or less. Each party shall give to the other notice of the time of any such test reasonably in advance of the holding 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, pre- vious readings of the samme shall be considered correct in computing the volume of water delivered by the City to Sinclair, but such meter shall be at once properly adjusted to record accurately. If on any test, City's mater shall be-found to 1:1z� inaccurate by an amount exceeding two per cent, then any previous readings of such meters shall be corrected for any period which is definitely known or agreed upon, or if not so known or agreed upon no such correction shall extend back over a period beginning more than fifteen (15) days prior to the time when such inaccu- racy was first made known by either party to the other. If for any rea- son City's meter is out of service so that the volume of water deliver- able hereunder cannot be ascertained or computed from meter readings thereof, the water delivered durino, the period such meter is or was out of service shall be estimated and agreed upon by the parties hereto upon the basis of the beat data available. V. PRESSURE: At the point of delivery of such water City shall at all times maintain a pressure of not less than thirty -five (35) pounds per square inch. -3- VI. PAXM 1TS: Payments for any and all water sold by City to Sinclair shall be made monthly at the office of the City Water Depart- ment at the City Hall of Corpus Christi, Texas, and all bills therefor shall be paid on or before the 30th day of each month for all water sold and delivered hereunder during the preceding calendar month. Statements shall be mailed by City to Sinclair at P. 0. Box 645, Taft, Texas, on or before the 10th day of each month, showing the volume of water de- livered and the sum of money due City therefor during each preceding calendar month. This contract shall be construed as being performable in Nueces County, Texas. VII. PRIORITIES: This contract is entered into and the sale of 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 Nueces River. In the event at any time the supply of water in the Nueces River shall be so diminished as to jeopardize the then supply of water to such consumers, this contract shall become 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 con- sumers within the City Limits of the City of Corpus Christi, this Con- tract, unless cancelled as set out below in this Article VII, immediate- ly become again effective to the extent of the excess of such sufficien- cy. If at any time City fails to deliver water, Sinclair shall have the right to cancel this contract at any time during such failure by written notice to City. VIII RESTRICTIONS ON RESALE: It is distinctly understood and a- greed that said Sinclair shall not deliver or sell water obtained under this contract to any other person, firm or corporation, except such per- sons, firms, and corporations which are affiliated with or subsidiary.to M Sinclair, or a parent corporation of Sinclair, or a subsidiary of a parent corporation of Sinclair-, u.nd except any other person, Firm or corporation engaged in the drilling, development or operation of any oil, gas and mineral lease or mineral fee estate, but no water shall be sold or delivered to any such other person, firm, or corpora- tion south of the platted line shown on the plat attached hereto and made a part hereof, which platted line has its origin in the middle of the channel of Nueces River at a point where Nueces River enters Nueces Bay; continuing in an easterly direction to a point on the Corpus Christi Causeway, which point is one quarter of a mile north of the south abutment of said causeway. IX. FIXED MINIMUM OBLIGATION: This contract imposes no obliga- tion upon Sinclair to purchase any minimum amount of water in any calen- dar month during the period of this contract; provided, however, that Sinclair shall, during the life of this contract, pay at least the mini, mum amount prescribed by the City Council of'Coxpus Christi, Texas, from time to time as the City's minimum amount, at regular industrial rates (inside city limits) for treated water. Such minimum sum is presently as set out in Article I, above. The fixed minimum payment shall be sus- pended for such periods of time that water is not made available to Sinclair. X. RIGHT OF SINCLAIR TO TERMINATE CONTRACT: If for any reason the plant of Sinclair should shut down or become inoperative, then Sin- clair 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 Sinclair gives City said written notice 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 -5- any Act of God, unavoidable accident, acts of enemy, strikes, fires, floods, governmental restraint or regulation, or other pauses of force majeure, then the obligations of City to deliver water to Sinclair, as hereinabove provided, shall be temporarily suspended during continua- tion of such force majeure. No damage shall be recoverable by Sinclair from City by reason of the temporary suspension of deliveries of water due to any of the causes above mentioned. If the City's obligation should be affected by any such causes, City shall promptly notify Sin- clair in writing, giving full particulars of such Force Majeure as soon as possible after the occurence of the cause or causes relied upon. XII. ASSIGNABILITY: This contract may be assigned only with the written consent of the other party, but if assigned, this contract shall be binding upon the parties hereto as well as their successors and as- signs. XIII. ADJUSTMENT OF PRICES: Notwithstanding any of the provisions of this contract, it is agreed that the prices provided herein are sub- ject to adjustment 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 tither consumer of water having a point of delivery inside the City Limits of the City of Corpus Christi and using water in comparable quantities, and in no event lower than aver- age net cost to the City. XIV. TERMINATION OF PRIOR AGREEMENT: Upon the execution of this agreement by all of the partie,. hereto the contract dated Jan- uary, 1955, between the City of Corpus Christi, Suntide Refining_Compa- ny, and Sinclair 011 & Gas Company will be superceded by this contract insofar as City and Sinclair are concerned as soon as the necessary fa- cilities of City and Sinclair are installed and in operation. -6- Q WKINI"A Nn"MOT, t�s p)rnis. mye hewoUo caused theee presents to be dull waWnd thin day a,' A 195_ A'T'TEST: 'ITY (1? CFUZISTI, '=MS 'Ey City secretarj APPROVED AS TO LWAL WRY: City Mornay ATTEST: SINCLAIR OIL & GAS COMPANY By Secretary Vice-President -7- THE STATE OF TEXAS COUNTY OF NUECES BEFORE ME, the undersigned authority, a Notary Public, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instru- ment as of the City of Corpus Christi, ; Texas, and a�ledged o me that he executed the same for the pur- poses and consideration therein expressed, as the act and deed of said City of Corpus Christi, Texas, a municipal corporation, and in the caRa- city therein stated. GIVEN under my hand and seal of office this the day of , A. D., 1955. , Notary Public in and for Nueces County, Texas STATE OF OKLAHOMA COUNTY OF TULSA BEFORE ME, the undersigned authority , a Notary Public, on this•day personally appeared , Vice- Prealdent of Sinclair Oil & Gas Company, a a ne -corporation,known to me to be the person and officer whose name is subscribed to the foregoing in- strument, and acknowledged to me that he executed the same for the puro poses and consideration therein expressed, as the act and deed of said! corporation, and in the capacity therein stated. GIVEN under my hand and seal of office, this the day of , A. D., 1955• My commission expires: , Notary Public in and for 111ulsa County, Oklahomh } X-11 CORPUS CHRISTI .1 Ir 0 Corpus QPT isti, Texas - 1955 TO THE UMBERS OF THE CITY COUNCIL Corpus Christi,. Texas Gentlemen: For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergemcy and imperative necessity exist for the suspen- sion 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, _ r k1A THE CITY OF CORPUS CBRISH , TEXAS The Charter Rule was suspended by the following vote: Farrell D. Smith Minor Culli W. J. Roberts B. E. Bigler Manuel P. Maldonado The above ordinance was passea by the following vote: Farrell D. Smith Minor Culli W. J. Roberts B, E. Bigler Manuel P. Maldonado 7 i