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
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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
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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.
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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
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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.
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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
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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
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