HomeMy WebLinkAboutOrd 221 - setlement with Houstion natural gas
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ORDINANCE NO. 221
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AN ORDINANCE AUTHORIZING AND DIRECTING
THE MAYOR OF THE Crry OF WEST UNIVERSI TY
PLACE OR THE MAYOR PRO TEM TO ENTER INTO
AND EXECUTE AND DELIVER A CONrRACT OF
SETTLE1-'IENT BETWEEN THE C rI'Y ,OF WEST
UNIVERSITY PIACE AND THE HOUSTON NAWURAL
GAS CORPORATION SETTLING THE CONTRO VERSY
THAT EXISTS BETWEEN HOUSTON NATURAL GAS
CORPORATION AND ITS PREDECESSOR, HOUSTON
NATURAL GAS COMPANY, WITH THE CITY, FOR
THE SUM OF $10,210.00, AND RELEASING ALL
CLAIMS, EXCEPT AD VALOREM TAXES AND
$IO.OO ANNUAL FRANCHISE FEE, AND AGREEING
TO PASS ANOTHER ORDINA1';J"CE FIXING A TWO PER
CENT GROSS RE'CEIPI'S CHARGE FOR A TEN "YEAR
PERIOD, AND DECLARING AN EMERGENCY.
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WHEREAS, the Houston Natural Gas Com:r:any and its
successor, Houston Natural Gas Corporatbon, have been engaged
in a controversy with the City of West niversity Plaoe con-
cerning Ordinance No. 129, enacted Janury 4, 1938, providing
for a rental' charge to be paid by gas companies and other
public utilities to said City, based upon gross receipts, and,
WHEREAS, said Houston Natural Gas Company filed suit to
restrain the City from the enforoement of said Ordinance
No. 129 about June IO, 1938, said suit being No. 248, .516 now
pending in the District Court of Harris County, Texas, styled:
Houston Natural Gas Comp3.ny VS. The City of West University
Place, and,
WHEREAS, said City and said Houston Natural Gas Company
and its suocessor, Houston Natural Gas Corporation, wish to
settle and compromise said litigation:
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NOW, 'lliEREFORE, BE IT ORDAINED BY THE CITY CO:MMISSION
OF THE CITY OF WEST UNIWERSITY PLACE, TEXAS:
Section 1. That t he Mayor of said Oi ty or its Mayor Pro
Tam, joined with the Secretary or the Assistant Secretary of the
Ci ty, be and they are hereby authorized and directed to settle
and compromise said controversy and litigation bywritten agree-
ment provid~~ for the payment of Ten Thousand, Two Hundred and
Ten Dollars (110,210.00) to the Oity, the repea~ of said
Ordinance No. 129+ and release of all claims against said com-
panie s by the City, except ad valorem taxes and the annual fran-
ehise fee of Ten Dollars ($IO.OO), and the release of all claims
asserted by said companies against the City; said suit to be dis-
missed at the Gas Company's expense, the City acknowledging that
all rentals due the City Under Ordinance No. 129, or otherwise,
have been r-aid up to and including July 31, 1941. Said contract
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and agreement shall likewise oontain such other prov~s~ons and _-----,~I
terms as said officers deem necessary or advisable, and not
'contrary to the foregoing.
Section 2. Coincident with the exeoution of said
agreement and the p:l.ssage of this ordinance, an ordinance re-
pealing Ordinance No. 129 shall be enacted, and likewise an
ordinance passed which shall be referred to in said agreement
providing for rental of two (210) per cent of the gross receipts
received by any person, association, organization or corporation
from the sale of gas to all consumers {except thos e using gas for
industrial purposes} within the corporate limits of theCity;
said rental to take effect on Augus~ 1, 1941, and to continue
thereafter for a term of ten (IO) years from August 1,1941, and
said ordinance shall likewise ~ovide for reports ~nd contain
such other texws and provisions not inconsistent with the fore-
going as are deemed necessary and proper.
Section 3.' The fact that litigation and controversy
has been carried on for more than two years with reference to
Ordinance No. 129, and that the parties wish to settle same
without further delay, creates an emergen.cy, and this ordinance
shall take effect immediately, and be in. full force and effect
from ahd after its passage, and it is so enacted.
PASSED, APPROVED, AND ENACTED, this
July, 1941.
28th day of
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ayor
ATTEST:
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Acti g ity secretary
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