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HomeMy WebLinkAbout05375 RES - 06/03/1959IMS:JKH:6 -3 -59 0 . It IF A RESOLUTION MAKING FINDINGS REGARDING THE COST OF TREATED WATER FOR THE PERIOD OCTOBER 1, 1956, TO OCTOBER I 1 9 1, AS PROVIDED IN THE CONTRACT BETWEEN REYNOLDS METALS COMPANY AND THE CITY OF CORPUS CHRISTI DATED OCTOBER 5, 1 ; AND DECLARING AN EMERGENCY. WHEREAS, THE COUNCIL HAS HEARD AND TAKEN INTO ACCOUNT ALL OF THE REPORTS, OPINIONS, STATEMENTS AND DATA SUBMITTED TO THE COUNCIL CONCERNING THE RE- DETERMINATION OF THE COST OF TREATED WATER FOR THE PERIOD OCTOBER 1, 1956, TO OCTOBER 1, 1961, BY THE CITY OF CORPUS CHRISTI AND REYNOLDS METALS COMPANY AS PROVIDED IN THE CONTRACT BETWEEN REYNOLDS METALS COMPANY AND THE CITY OF CORPUS CHRISTI DATED OCTOBER 5, 1951; AND WHEREAS, REYNOLDS METALS COMPANY, BY LETTER TO THE CITY DATED rV JUNE 1, 1959, HAS AGREED THAT THE COST OF TREATED WATER, AS RE- DETERMINED UNDER SUCHOONTRACT, IS 10.25 CENTS PER 1,000 GALLONS FOR THE PERIOD rOCTOBER 1, 1956, TO OCTOBER 1, 1961, A COPY OF WHICH AGREEMENT OF REYNOLDS ICJ ,XVit0?(METALS COMPANY IS ATTACHED HERETO AND MADE A PART HEREOF: vv NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THE MATTER OF THE RE- DETERMINATION OF THE COST « OF TREATED WATER BY THE CITY OF CORPUS CHRISTI AND REYNOLDS METALS W COMPANY HAVING BEEN CONSIDERED BY THE COUNCIL, IT IS FOUND THAT THE qn ^dd' COST OF WATER TO BE FURNISHED BY CITY TO REYNOLDS METALS COMPANY AT CALALLEN, TEXAS, UNDER THE CONTRACT BETWEEN REYNOLDS METAL COMPANY AND THE CITY OF CORPUS CHRISTI, COMPUTED BY USING AN INCREMENTAL COST BASIS AND LIMITING THE COMPUTATION TO THE COST OF RAW WATER AND THE TREATMENT THEREOF, IS 10.25 CENTS PER 1,000 GALLONS FOR THE PERIOD COMMENCING OCTOBER 1, 1956, AND ENDING OCTOBER 1, 1961. SECTION 2. THE NECESSITY FOR IMMEDIATE DETERMINATION OF THE COST OF WATER UNDER THE REYNOLDS METALS COMPANY CONTRACT TO CLARIFY THE BILLINGS OF THE WATER DIVISION OF THE CITY OF CORPUS CHRISTI UTILI- TIES DEPARTMENT CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE 5375 OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCILS AND THE MAYOR, HAVING DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST, HAVING REQUESTED THE SUSPENSION OF SUCH CHARTER RULE AND THAT THIS RESOLUTION BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH RESOLUTION TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY PASSED AND APPROVEDO THIS If DAY OF JUNE, 1959• ATTEST; MAYOR THE CITY 6ORPUS 41STI, TEXAS CITY SE R T APPROVED AS TO LEGAL FORM 4S THE__j DAY OF JUNE, 19559; CITY ATtORNkY r • REYNOLDS 4METALS COMPANY GENERAL OFFICES: RICHMOND. VIRGINIA June 12 1959 ADDS REPLY TO P. O. sox 109 CORPUS CHRISTI, TEXAS Mayor and Council of the City of Corpus Christi Corpus Christi, Texas Gentlemen: 1 As you know, the contract for sale of water d i�ed October 5, 1951, between the City of Corpus Chris I dynolds Metals Company provides, if requested, for a re- e e ination of the cost of water by the partiesibereto amt the end ofl� five (5) year period during the term of!th@-Fontract- Representa- tives of the City, together with "represept ti- of Reynolds have re- determined the cost of,wAter uuI��i�r the terms of the contract for the period begin�i3�f�g Octq�Ser 1, 1956, and ending October 1, 1961. This cost, ds re- determined, is 10.25 cents per 1,000 gallons. our cost study is port The exhibits are the 1, the city staff on Apr+: be revised to eliminal the reallocation of t� agreed to by usJand w: of money factdi�-'-Z iv !re ciadon a ens: beLi xhibit 4A as been llocation f Utility 1, 2, 3, 5, 7 the as they do npt`ent -jq`T,kh :a 1 through 7 attached. e as the a pi'e�iared by Mr. Townsend of 27, 195, except that Exhibit 4 has the Fr /t� hise Payment and to amend Utility ffice charges to the formula the then excepuan that the cost l bit 3 was substituted for de- booked by the City in its records. .Tided to state the basis used for re- ice costs. In reproducing Exhibits ures f;)r the year 1961 -62 were omitted s truly. In computing casts, an incremental cost basis was used and the study was limited to the cost of Raw Water and the Treatment thereof. The exhibits detail the cost items included at the various points. Costs and quantities for 1956 -7 and 1957 -3 are actual. Those for 1958 -9 through 1960 -61 are estimated on what we con- sider a reasonable basis. Costs directly related to volumes vary with volumes in the estimated years. Those not directly of the City of Corpus dh*i 4ti; Page Jun e 1; 1959 slated to volumes are" ,factored upward in" - future years generally on a- percentage basis < -We - 8'sUave. the costs .14clWed .are ippil - ".- - cable under accepted. Cost Acdoanting 'principles and we beL9eve` they are -all inclusive. -' -Costs - as,detailed are as now_ being Charged by the City in its jecords; with the- excepfiona noted above, r tieyn ©lda'Metals; Ccc��ppaany agrees" _that the: coat, ae re- deteriained for the p'ex36d_October 1 .1956; to Wtobeg l,',- 1961, is 14>.25 .cents- per_ 1,000 ggallons and - th�.s' lemeir" -is or tteri to yo'u for_ the -pux- - 4 pow of svidepcittg''this agreement., „ yoxrs' *erg' cvuly. CMANY RM _ -z _ - _ _ _ _ - _ - _ - •' _ Is1. W • monroe Weila = - �x3� r. ti• �� per 4EnGgPt- tsar � - ' - 3 CORPUS CHRISTI, TEXAS .� 9d7 TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS GENTLEMEN: FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE 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; T, 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, MAYOR THE CITY OF C US CHRI TI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE; ELLROY KING JAMES L. BARNARD MRS. RAY AIRHEART JOSEPH B. DUNN PATRICK J. DUNNE R. A. HUMBLE GABE L. L.OZANO, SR. THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE' ELLROY KING JAMES L. BARNARD MRS. RAY AIRHEART JOSEPH B. DUNN CCU PATRICK J. DUNNE R. A. HUMBLE GABE L. LOZANO, SR. } *+ Aµ .1 'M0. 'r'�: � __ � �y., ., _ � �.> r_;• 1 , REYNOLDS METALS COMPANY_ REYNOLDS METALS BUILDING - RICHMO140 16. VIRGINIA - - - June 4, 1959 Lower.Nneces River Water Supply District Corpus Christi, Texas Gentlemenz - Reynolds 14etals Company is purchasing water from -the City of Corpus Christi under the terms of a tbirty (30) year contract which pro- vides for re- determination of the cost of the City of Corpus ChristL of water sold to Reynolds Metals Company at the end of each five (5) year period during the term of the contract. A re- determination of the cost to the City of water sold to Reynolds Metals Company has' been made and agreed to by Reynolds metals Company and the City of Corpus Christi for the five (5) year period commencing October 1, 1956. Reynolds Metals Company recognizes the fact that the Lower ]sueces River water supply District is paying part of the cost of supplying , water to the City of Corpus,Christi and that the District has found It necessary -to -levy taxes on property located in the District in order to pay these costs. Reynolds Metals Company's properly 3s not located within the looser Nueces River Water Supply District and Reynolds does not pay taxes to _the - District. For this reason, Reynolds metals Company will pay to •tha Loner Vueces River Water Supply District, as a voluntary contribution. for the five (5) year period commencing October 1� 1956. and ending October 1, 1961, the am of 1.75 cents per thousand - gallons of water actuary used by Reynolds. if the property of Reynolda Metals Company should be included within the boundary of the Lower Nueces River water Supply' District, then such payments -to the District will cease. The payments made to the District will be made on the water actually__. used by Reynolds Metals Company and not on water sold by Reynolds Metals Company to other users. -very- truly yours, REYNOLDS *ETAL3 COMPANY �ANLI Vice president a•