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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 16555 SEP .471984 evaiILMEDi 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 1_6555