HomeMy WebLinkAbout16555 RES - 09/23/1981mb;9/22/8i ;5th
A RESOLUTION
EXPRESSING THE CITY COUNCIL'S DESIRE TO EXERCISE
ITS OPTION TO PURCHASE A WATER TRANSPORTATION
LINE OWNED BY REYNOLDS METALS COMPANY; AND DECLAR-
ING AN EMERGENCY.
WHEREAS, by agreement dated October 5, 1951, Reynolds Metals
Company, herein referred to as "Reynolds", and the City of Corpus Christi,
herein referred to as "City", entered into a water supply contract whereby
the City is presently furnishing and selling treated water to Reynolds,
such water being transported through a 24" pipeline constructed and owned
by Reynolds Metals Company; and
WHEREAS, the terms of said water supply Contract and the obli-
gations of the parties thereunder terminate on September 30, 1981; and
WHEREAS, said contract provides in Paragraph 13, entitled Option
to Purchase, that at any time during the life of the Contract the City,
at its option, may purchase the water transportation line installed by
Reynolds extending from its connection with pipelines of the City to the
property line of Reynolds, including all valves, connections and property
used in connection with the maintenance and operation of said line between
the said properties. Said paragraph of the Contract further provides the
basis for the determination of a fair and reasonable value of the property
in the event the City elects to exercise its option; and
WHEREAS, the City finds it to be in the public interest that a
governmental entity acquire and operate said pipeline for continued water
supply service to Reynolds, San Patricio Municipal Water Supply District
and municipal customers of the service area; and
WHEREAS, it is the intent of the City to directly enter into
negotiations with the San Patricio Municipal Water District, the purpose of
which shall be to consider the transfer of said pipeline to said district
and to assure an adequate water supply and distribution system for the general
area now being served; and
WHEREAS, it is the further intent and desire of the City that a
principal consideration of such negotiations shall be the continued supply
of water to Reynolds at a fair and equitable rate consistent with water
rates charged other customers similarly situated; and
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WHEREAS, the present value of the pipeline is far in excess of
the cost to exercise said option and such value represents a substantial
asset to the citizens of the City; therefore, it is the desire of the City
Council of the City that the City exercise its rights under the option -to -
purchase provision of said contract and enter into negotiations to effect
such purchase in accordance with said contract.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
(1) That it is the opinion of the City Council and it is so
found that the exercise of the City's option and the purchase of said
water transportation line from Reynolds is in the public interest and
that the protection of its residual rights under the Contract will best
be served by the purchase of said pipeline; and
(2) That Reynolds be notified that the City hereby exercises
its option to purchase said water transportation line in accordance with
the terms of said Contract and that Reynolds be so advised by forwarding
a duly executed duplicate of this document to Mr. W. D. Pipes, Plant
Engineer, Reynolds Metals Company, on or before September 30, 1981; and
(3) That the City enter into negotiations with Reynolds repre-
sentatives to determine the consideration for the purchase of said pipeline
and to determine the rates to be charged Reynolds for the future supply of
treated water.
That upon written request of the Mayor or five Council members,
copy attached, to find and declare an emergency due to the urgent necessity
for the City to exercise its option rights under the above described Contract
for the purchase of said water transportation line, such finding of an
emergency is made and declared requiring suspension of the Charter rule as
to consideration and voting upon ordinances or resolutions at three regular
meetings so that this resolution is passed and shall t� e effect upon first
reading as an emergency measure this 23 day of � >. , 1981.
ATTEST:
ecretary
MAYl4
4"—
THE CITY OF CORPUS CHRISTI, TEXAS
Corpus Christi, as
23 day of
1981
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance or resolution,
an emergency exists requiring suspension of the Charter rule as to consideration and voting
upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you
suspend said Charter rule and pass this ordinance or resolution finally on the date it is
introduced, or at the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
Xl,a4
MAYOR/ (/
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following vote:
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
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