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HomeMy WebLinkAbout05055 ORD - 06/11/1958ap:4/9/58 AN ORDINANCE AUTHORT7.Tis', AND DIRECTING TEE CITY MANAGER OF THE CITY 07 CORPUS CHRISTI, FOR AND ON BEHALF OF THE CITY, TO EXECUTE A C`.ONTRAC:T WITH COTSiMRTA- RCH HRRN rMITCAT. QMMORATTORI RPMAT r. TO TRF PNRC HAM OF WATER TO RV.. FNRNTSTMn RV TAR! QTTV- SAID CONTRACT TO BE EFFECTIVE AS OF NOVEIM 29, 1956, AND TO TERMINATE DECEMBER 31, 1962, UNDER TERMS AND CONDITIONS OF THAT CERTAIN CONTRACT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART BEREOF. 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 Columbia- Southern Chemical Corporation relative to the purchase of water to be furnished by the City, said contract to be effective as of November 29, 1956, and to terminate December 31, 1962, under the terms and conditions of that certain contract between said parties, a copy of which is attached hereto and made a part hereof. � R t F ` _ ':. 514 _ _ - 's, � #:� -,:. , ° ,_- . .. _' ;` • - -• .• . ° TK STATE OF TEXAS _ COUNTY OF .NUECES x THIN CONTRATY AND A6REEMENT'MA0i AND'- ENTERED ONTO GV' AND.," -BETWEEN THE CITY OF'CORPUa CHRISTI$ TEXAS$ A MUNICIPAL CORPORATION, ACTING SY AND' THROUGH ITS DULY AUTHORIZED OFFICER'§#' HEREINAFTER + CALLEC' HCITYMj 'AN0- ;COLUN3IA4dUTHERN CHEMICAL CORPORATIONS, A DELiYApE CORPORATIOW WITH A PERMIT TO RO 'BUSINESi IN TEXAS, ACTJWD HT; AND THROUGH ITS DULY 'AUTHORIZED OFFOE£Rdp. HERcilm -PTER CELLED "CONSUMER "� `- = WIDTNESS`ETH's... ° T"HNAT'ION CF PRIOR' CONTRACTS- THE-Eii1STiNR stATER -PURCHASE CONTRACT BETWEEN THE PARTIES IB'HEREBY- TERMINATED AND SUPC89ED0'BY THIS CONTRACT EFFECTIVE•AS•Qk HOVENmER 29r 1956.- CONNUMER AORCES THAT ii WILL PROMPTLY PAY' TO CITY, THE ` SUN ''OF DOLLARS �� . ��, WHICH REPRESENTS THE DIFFERENCE i rTWEEN THE C,03T OF WATER DELiYEREO TQ COHSUNERYaI INC E liQxeMaER, 1956,, WHEN - COMPUTE p AT THE NE -PRidL6 P96YID6D- FOR HEREIN ANb THE,'AMo' AT WHICH" CONSUMER HAS PAID CITY' ON ACCOUNT OF`SUCH 9ELIVERIEB UNDER' THE COH -, . TRACT "HEREBY TERMINAT46. F "` , •. ,tip ,.t; ° ".p" * - g• - as., ?, '4 °Yy ,�:�� • -y .` - -- - _ ._..: .._ _b'rf _ fd z,1'n°t *ir «, - _ �r_,'e `�'.k -•• _ ���Iy�'�,° - VI. MEASUREMENT OF WATER: THE WATER DELIVERABLE HEREUNDER: 41° BE MEASURED BY A SUITABLE WATER METER OR METERS OF STANDARD MAKE, SAME TO BE FURNISHED, INSTALLED AND KEPT IN REPAYR BY THE CITY AT OR NEAR THE PLACES OF DELIVERY AS DESCROBED HEREIN. CHECKS AS TO THE ACCURACY OF THE METER OR METERS SHALL BE MADE SEMI - ANNUALLY. CITY SHALL NOTIFY CONSUMER IN WRITING TEN (10) DAYS IN ADVANCE OF ALL SEMI - ANNUAL CHECKS AND TESTS IN ORDER THAT CONSUMER MAY HAVE A REPRESENTATIVE PRESENT AS A WITNESS, SEMI- ANNUAL TESTS AS TO THE ACCURACY OF THE METER OR METERS INSTALLED BY THE CITY SHALL BE AT THE CITYQS EXPENSE. IF EITHER CITY OR CONSUMER 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 THE ACCURACY THEREOF AND JOINT OBSERVA- ?IONS OF ANY ADJUSTMENTS. 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 CITY. BE PAID BY THE PARTY REQUESTING IT, OTHERWISE, BY THE/®RHICRXRXR%XX 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 REPRESEN- TATIVE 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 CONSUMER, BUT SUCH METER SHALL BE AT ONCE PROPERLY ADJUSTED TO RECORD ACCURATELY. IF ON ANY TEST, CITYOS 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 PROOR TO THE TIME WHEN SUCH INACCURACY WAS FIRST MADE KNOWN BY EITHER PARTY TO THE OTHER. IF FOR ANY REASON CITY °S METER IS OUT OF SERVICE SO THAT THE VOLUME OF WATER DELIVERABLE HEREUNDER CANNOT BE ASCERTAINED OR COMPUTED FROM METER READINGS THEREOF, THE WATER DELIVERED DURING THE PERIOD SUCH METER IS OR WAS OUT OF - 3 - .4 I SERVICES SHALL BE ESTIMATED AND AGREED UPON BY THE PARTIES HERETO UPON THE BASIS OF THE BEST DATA AVAILABLE. VII. PRESSURE: AT THE POINT OF DELIVERY OF TREATED WATER, IF ANY, CITY SHALL AT ALL TIMES UNDERTAKE TO MAINTAIN AN AVERAGE PRESSURE OF FIFTY POUNDS PER SQUARE INCH. THE CONSUMER, IN THE TAKING OF WATER UNDER THIS CONTRACT, SHALL BE RESPONSIBLE FOR AND PROVIDE FOR SUCH EQUIPMENT AND STANDARD PRACTICE PRECAUTIONS AS WILL PREVENT CONTAMINATION OF THE CITY WATER SYSTEM BY REASON OF SUCH TAKING AND TO THIS END CONSUMER SHALL PREVENT ANY CROSS CONNECTIONS WITH ANY OTHER PIPE THROUGH WHICH ANY SUBSTANCE MIGHT BE INTRODUCED INTO THE CITY WATER SUPPLY. ON THE REQUEST OF THE CITY THE CONSUMER SHALL FURNISH, FOR EXAMINA- TION BY THE CITY, A COMPLETE SET OF PLANS SHOWING THE CONSTRUCTION AND PROPOSED CONSTRUCTION OF ALL PIPES CONNECTED TO THE CITY WATER SUPPLY. THE CITY MAY RE- QUIRE THE INSTALLATION OF SUCH MEASURES, OR PROCEDURES IN PLANT OPERATION, AS WILL PREVENT ANY BACK FLOW AND WILL AS WELL PREVENT ANY SUDDEN BACK SURGE AGAINST THE CITY MAIN PRESSURES. IN THE EVENT OF CONSUMER'S FAILURE TO INSTALL SUCH MEA75" ES OR PROCEDURES THEN CITY MAY, AS AN ADDITIONAL RIGHTS REGULATE THE PRESSURE AT WHICH WATER IS FURNISHED TO AVOID ANY BACK FLOW OR PREVENT ANY BACK SURGE. VIII. PAYMENTS: PAYMENTS FOR ANY AND ALL WATER SOLD BY CITY TO CONSUMER 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 ALL WATER SOLD AND DELIVERED HEREUNDER DURING THE PRECEDING CALENDAR MONTH. STATEMENTS SHALL BE MAILED BY CITY Tq CONSUMER AT CORPUS CHRISTI, TEXASS ON OR BEFORE THE LOTH DAY OF EACH MONTH, SHOWING THE VOLUME OF WATER DELIVERED AND THE SUM OF MONEY DUE CITY THEREFOR DURING EACH PRECEDING CALENDAR MONTH AND ANY UNPAID BALANCES. IX PRIORITIES: THIS CONTRACT IS ENTERED INTO AND THE SALE OF WATER - 4 - 714 HEREUNDER IS MADE SUBJECT AT ALL TIMES TO THE SUPERIOR AND LEGAL RIGHTS, IF ANY, OF ANY OTHER CUSTOMER OF THE CITY OF CORPUS CHRISTI, TEXAS, AND TO THE SUPPLY OF WATER IN THE CITY RESERVOIR AND THE NUECES RIVER. IN THE EVENT AT ANY TIME THE SUPPLY OF WATER IN THE RESERVOIR OR NUECES RIVER SHALL BE SO DIMINISHED AS TO JEOPARDIZE THE THEN SUPPLY OF WATER TO CUSTOMERS USING WATER FOR DOMESTIC PURPOSES AND TO THOSE CUSTOMERS WITH SUPERIOR LEGAL RIGHTS, IF ANY, 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 IM -SAID RIVER BECOMING AGAIN SUFFICIENT FOR THE FORE- SEEABLE NEEDS OF DOMESTIC CUSTOMERS AND THOSE WITH SUPERIOR AND LEGAL RIGHTS, IF ANY, THIS CONTRACT SHALL IMMEDIATELY BECOME AGAIN EFFECTIVE TO THE EXTENT OF THE EXCESS OF SUCH SUFFICIENCY; PROVIDED, HOWEVER, IN THE EVENT OF ANY SUCH DIMINISHED SUPPLY AND PRIOR TO THE SUSPENDING OF ANY WATER DELIVERY UNDER THIS CONTRACT, CITY SHALL FIRST SUSPEND WATER' DELIVERY TO ANY OTHER CONSUMER WHOSE RIGHTS ARE INFERIOR TO CONSUMER. ALL INDUSTRIAL CONSUMERS PURCHASING WATER IN COMPARABLE QUANTITIES AND UNDER COMPARABLE CONDITIONS FROM CITY JUNIOR IN TIME TO THE FIRST PURCHASE OF WATER BETWEEN CONSUMER AND CITY SHALL BE DEEMED TO BE HOLDERS OF "INFERIOR RIGHTS". THEREAFTER, IF IT IS DETERMINED THAT SUCH SUPPLY IS STILL INADEQUATE TO FURNISH DOMESTIC CONSUMERS AND THOSE WITH SUPERIOR AND LEGAL RIGHTS TO SUCH WATER, THEN THIS CONTRACT SHALL BECOME SUSPENDED DURING THE PERIOD OF TIME WHEN SUCH SUPPLY OF WATER IS INADEQUATE. X. RESTRICTIONS ON RESALE: IT IS DISTINCTLY UNDERSTOOD AND AGREED THAT SAID CONSUMER SHALL NOT DELIVER OR SELL ALL OR ANY PORTION OF THE WATER OBTAINED UNDER i THIS CONTRACT TO ANY OTHER PERSON, FIRM OR CORPORATIONP-FXCEPT SUCH PERSONS, FIRMS, AND CORPORATIONS WHICH ARE WHOLLY OWNED AND DIRECTLY SUBSIDIARY TO THIS COMPANY AND ITS PARTICULAR PLANT OPERATIONS AND EXCEPT FURTHER TO SHIPS STEAMERS, AND FREIGHTERS OR ANY OTHER CRAFT DELIVERING OR RECEIVING TONNAGE FROM SAID CONSUMER OR ITS SAID SUBSIDIARY AS STATED ABOVE, AND AS A CUSTOMER OR SUPPLIER DIRECTLY RELATED TO THE PLANT PRODUCTS. - 5 - 5A Xi. FIXED MINIMUM OBLIGATION: THIS CONTRACT IMPOSES NO OBLIGATION UPON CONSUMER TO PURCHASE ANY MINIMUM AMOUNT OF WATER IN ANY CALENDAR MONTH THROUGHOUT THE PERIOD OF THIS CONTRACT, BUT CONSUMER SHALL PAY DURING THE LIFE OF THIS CONTRACT THE MINIMUM SUM OF ONE HUNDRED ($100.00) DOLLARS PER MONTH, REGARDLESS,OF WHETHER ANY WATER IS USED OR NOT, .THE SAME TO BE PAYABLE ON OR BEFORE THE 20TH DAY OF EACH MONTH FOR THE PRECEDING MONTH. HOWEVER, THE CONSUMER EXPRESSLY AGREES AND OBLIGATES ITSELF TO THE EFFECT THAT THE ENTIRE WATER REQUIREMENTS FOR ITS PLANT OPERATIONS, SERVED PRESENTLY HEREBY AND HEREUNDER SHALL, DURING THE LIFE OF THIS CONTRACT BE PURCHASED FROM THE CITY OF CORPUS CHRISTI AND FROM NO OTHER SUPPLIER. X11. RIGHT OF CONSUMER TO TERMINATE CONTRACT: IF FOR ANY REASON THE PLANT OR PLANTS OF CONSUMER SHOULD SHUT DOWN OR BECOME INOPERATIVE AND CEASE TO.PURCHASE WATER FOR ITS INDUSTRIAL USE FOR A PERIOD OF AT LEAST SIX (6) CONSECUTIVE MONTHS, THEN CONSUMER OR CITY MAY CANCEL AND TERMINATE THIS CONTRACT IN ITS ENTIRETY BY GIVING THIRTY (30) DAYS WRITTEN NOTICE TO THE OTHER PARTY BY REGISTERED MAIL ADDRESSED TO IT AT CORPUS CHRISTI, TEXAS. IF EITHER PARTY GIVES SAID WRITTEN NOTICE, THEN AFTER THE EXPIRATION OF THIRTY (30) DAYS FROM THE DATE SAID NOTICE 15 MAILED�AS ABOVE PROVIDED, THIS CONTRACT SHALL BECOME NULL AND VOID. XIII. FORCE MAJEURE: !F CITY SHOULD BE PREVENTED, WHOLLY OR IN PART - FROM FULFILLING 1 T S. OBLIGATION5 UNDER THIS CONTRACT BY REASON OF ANY ACT OF GOD, UNAVOIDABLE ACCIDENT, ACTS OF ENEMY, STRIKES, FIRES, FLOODS, CONSERVATION OF WATER FOR THOSE WITH SUPERIOR AND LEGAL RIGHTS TO SUCH WATER, GOVERNMENTAL RESTRAINT OR REGULATION, OR OTHER CAUSES OF FORCE MAJEURE, OR BY REASON OF CIRCUMSTANCES REASONABLY BEYOND ITS CONTROL, THEN THE OBLIGATIONS OF CITY TO DELIVER WATER TO CONSUMER. AS HEREINABOVE PROVIDED, SHALL BE TEM- PORARILY SUSPENDED DURING CONTINUATION OF SUCH FORCE MAJEURE. NO DAMAGE SHALL BE RECOVERABLE BY CONSUMER FROM CITY BY REASON OF THE TEMPORARY SUSPENSION OF DELIVERIES OF WATER DUE TO ANY OF THE CAUSES ABOVE MENTIONED. IF THE CITY'S -6- j14 OBLIGATION SHOULD BE AFFECTED BY ANY SUCH CAUSES, CITY SHALL PROMPTLY NOTIFY CONSUMER IN WRITING, GIVING FULL PARTICULARS OF SUCH FORCE MAJEURE AS SOON AS POSSIBLE AFTER THE OCCURRENCE OF THE CAUSE OR CAUSES RELIED UPON. XIV. ASSIGNABILITY: THIS CONTRACT MAY .NOT BE ASSIGNED EXCEPT IN THAT CONSUMER MAY ASSIGN THIS CONTRACT WITHOUT CITY CONSENT IN ANY SALE OF ITS PLANT PROPERTY OR RE- ORGANIZATION OF ITS CORPORATE STRUCTURE IN WHICH THE WATER USE FOR THE SAME PLANT OPERATIONS ARE TO BE SUBSTANTIALLY CONTINUED, AND THEN, IF SO ASSIGNED, THIS CONTRACT SHALL BE BINDING UPON THE PARTIES HERETO AS WELL AS THEIR SUCCESSORS AND ASSIGNS. xv. NON - DISCRIMINATION CLAUSE: IF AT ANY TIME HEREAFTER AND DURING THE, TERM OF THIS CONTRACT, CITY SHOULD SELL THE SAME CLASS OR TYPE OF WATER AS IS PURCHASED HEREUNDER TO ANY CLASS OF USER WHOSE CIRCUMSTANCES ARE SUB- STANTIALLY THE SAME AS CONSUMER'S UNDER A NEW CONTRACT, OR RENEWAL CONTRACT, EXECUTED ON ANY DATE AFTER THIS CONTRACT AT A PRICE OR PRICES LOWER THAN THOSE PROVIDED HEREUNDER, THEN CONSUMER SHALL PAY SUCH LOWER PRICE OR PRICES ON WATER DELIVERED HEREUNDER AFTER THE OCCURRENCE OF SUCH LOWER- PRICED SALE. THIS ARTICLE SHALL NOT APPLY, HOWEVER, TO SALES OF WATER TO OTHERS IN SUB- STANTIALLY GREATER QUANTITIES OR UNDER SUBSTANTIALLY DIFFERENT CONDITIONS OR CONTRACTS FOR IRRIGATION WATER OR CONTRACTS FOR SUPPLYING ANY CITY OR WATER DISTRICT OR CIRCUMSTANCEV. A SUBSTANTIALLY DIFFERENT CIRCUMSTANCE SHALL BE CONSTRUED TO BE, AMONG OTHER THINGS, THE LOCATION OF THE CONSUMER PLANT IN OR OUT OF THE CITY LIMITS OF THIS CITY OR IN OR OUT OF THE LOWER NUECES RIVER WATER SUPPLY DISTRICT BOUNDARIES, OR THE EXISTENCE OF LONG TERM CONTRACTS HAVING A TERM OF YEARS LONGER THAN FIVE (5) YEARS TO RUN FROM THE EFFECTIVE DATE OF THE LAST WATER RATE ORDINANCE, AND THE REDETERMINATION OR SETTLEMENT OF RIGHTS BASED ON SUCH CONTRACTS. XVI. TERMINATION OF PRIOR AGREEMENT: UPON THE EXECUTION OF THIS AGREE- MENT BY ALL THE PARTIES THERETO ANY CONTRACT HERETOFORE IN EXISTENCE BETWEEN THE CITY OF CORPUS CHRISTI AND CONSUMER WILL AUTOMATICALLY BE TERMINATED. - 7- 514 IN WITNESS WHEREOF, THE PARTIES HAVE HERETO CAUSED THESE PRESENTS TO BE DULY EXECUTED THIS __DAY OF _, 195__ ATTEST: CITY SECRETARY APPROVED AS TO LEGAL FORM: CITY ATTORNEY CITY OF CORPUS CHRISTI, TEXAS BY BY -8- CONSUMER 514 EXHIBIT Q W A T E R R A T E S INSIDE CITY LIMITS EFFECTIVE NOVEMBER 29, 19556 MINIMUM - $1.00 FOR 3,000 GALLONS 1ST 10,000 GALLONS •33 2ND 10,000 " .30 RD 10,000 " TH 10,000 " e29 2 5TH 10,000 " 27y NEXT 50,000 " .2b NEXT 150,000 " .25 NEXT 250,000 " .22 NEXT 500,000 .20 NEXT 500,000 .1S NEXT 500,000 " .16 NEXT 1,000,000 " 1 NEXT 2,000,000 .1 NEXT 5,000,000 " .13 OVER 10,000,000 " .12 OUTSIDE CITY LIMITS EFFECTIVE NOVEMBER 29, 1956 MINIMUM - $2.25 FOR 31000 GALLONS 1ST 10,000 GALLONS $ .60 2ND 10,000 It 10,000 It :R5 5 �RD TH 10,000 it •525 5TH 10,000 " 6TH 10,000 " I ,48 7TH 10,000 .465 NEXT 30,000 .40 NEXT 150,000 " .30 NEXT 250,000 " .25 NEXT 500,000 " .23 NEXT 500,000 .21 NEXT 500,000 " .19 NEXT 3,000,000 " 17 NEXT 5,000,000 .16 OVER 10,000,000 " .15 UNTREATED WATER RATE PER THOUSAND GALLONS FIRST 101000M GALLONS PER MONTH $ ALL IN EXCESS OF 10,000M GALLONS PER MONTH .U4 ARTHUR R. JAMES ODELL INGLE PASSED AND APPROVED, THIS THE _LDAY 0 AT T: /x- CITY $ C TARY APPROVW AS TO LEGAL 0RM THIS 1 DAY OF 195$': CITY ATT RNEY U � aL, 195f r THE CITY OF CORPUS CHRISTI, TEXAS fr: THAT THE FOREGOING ORDINANCE WAS READ FOR TH FIRST TIME AND •PASSED TO ITS SECOND READING ON THIS THEDAY OF, 195 BY THE FOLLOWING VOTE: FARRELL D. SMITH W. J. ROBERTS B. E. BIGLER CL�� MANUEL P. MALDONADO, C(,y /9 CHARLIE J. AILLS ARTHUR R. JAMES ODELL INGLE V ' THAT THE FOREGOING ORDINANCE WAS READ FOR THE SECOND TIME AND PASSED TO ITS THIRD READING ON THIS THE_gLDAY O 194, BY THE FOLLOWING VOTE: FARRELL D. SMITH W. J. ROBERTS B. E. BIGLER MANUEL P. MALDONADO CHARLIE J. AILLS ARTHUR R. JAMES ODELL INGLE THAT THE FOREGOING ORDINANCE( READ FOR THE THIRD TIME AND PASSED FINALLY ON THIS /WA THEJLDAY OF\ L �r 195f BY THE FOLLOWING VOTE: ` FARRELL D. SMITH'/ W. J. ROBERTS 01-1- Q B. E. BIGLER V MANUEL P. MALDONADO CHARLIE J. AILLS CCsX ARTHUR R. JAMES ODELL INGLE PASSED AND APPROVED, THIS THE _LDAY 0 AT T: /x- CITY $ C TARY APPROVW AS TO LEGAL 0RM THIS 1 DAY OF 195$': CITY ATT RNEY U � aL, 195f r THE CITY OF CORPUS CHRISTI, TEXAS fr: