HomeMy WebLinkAbout07189 ORD - 04/08/1964IMS:JKH:3 -25 -64
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR
AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO
EXECUTE AN AGREEMENT WITH THE NUECES COUNTY
WATER CONTROL AND IMPROVEMENT DISTRICT NUMBER 2,
IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE
118a -1, V.A.C.S., A COPY OF WHICH AGREEMENT IS
ATTACHED HERETO AND MADE A PART HEREOF, FOR THE
TRANSFER TO THE CITY OF CORPUS CHRISTI OF THE
ASSETS OF THE DISTRICT, WHICH ASSETS WHEN TRANS-
FERRED WILL BECOME AN EXTENSION OF AND PART OF
THE WATER DISTRIBUTION SYSTEM OF THE CITY, IN
CONSIDERATION OF THE AGREEMENT OF THE CITY TO
OPERATE SAID FACILITIES AS A PART OF THE WATER
DISTRIBUTION SYSTEM OF THE CITY; SETTING FORTH
THE PROVISIONS OF SAID AGREEMENT; APPROPRIATING
$1490,000, OF WHICH $330,000 IS OUT OF WATER SYSTEM
BOND FUND NO. 202 AND $160,000 IS FROM THE FLOUR
BLUFF WATER SYSTEM ACQUISITION CLEARING FUND, FOR
PROJECT NO. 202- 64 -24, EXTENSIONS - FLOUR BLUFF
SYSTEM.
WHEREAS, THE CITY OF CORPUS CHRISTI, HEREINAFTER CALLED
CITY, A MUNICIPAL CORPORATION, IS THE OWNER OF A WATER DISTRIBUTION
SYSTEM; AND
WHEREAS, A PORTION OF LAND AREA LYING WITHIN THE NUECES
COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 2, HEREINAFTER CALLED
DISTRICT, WAS ANNEXED BY THE CITY ON AUGUST 5, 1961; AND
WHEREAS, THE CITY DESIRES TO FURNISH AN ADEQUATE SUPPLY OF
FRESH CONSUMABLE WATER TO ALL THE CITIZENS LIVING WITHIN THE BOUNDARIES
OF THE CITY, INCLUDING THE PROPERTY OWNERS AND PEOPLE LIVING WITHIN
ALL AREAS CLAIMED TO HAVE BEEN LEGALLY ANNEXED; AND
WHEREAS, ARTICLE 1182c -1 OF VERNON'S ANNOTATED CIVIL STATUTES
SETS FORTH THE PROCEDURE TO BE FOLLOWED WHEN CITIES ANNEX TERRITORY WITHIN
WATER CONTROL AND IMPROVEMENT OR FRESH WATER SUPPLY DISTRICTS:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED
AND DIRECTED, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO EXE-
CUTE AN AGREEMENT WITH THE NUECES COUNTY WATER CONTROL AND IMPROVEMENT
DISTRICT NUMBER 2, IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 1182C -1
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7189
e•
OF VERNON'S ANNOTATED CIVIL STATUTES, A COPY OF WHICH AGREEMENT IS
ATTACHED HERETO AND MADE A PART HEREOF, FOR THE TRANSFER TO THE CITY
OF CORPUS CHRISTI OF THE ASSETS OF THE DISTRICT, WHICH ASSETS WHEN
TRANSFERRED WILL BECOME AN EXTENSION OF AND PART OF THE WATER DISTRI-
BUTION SYSTEM OF THE CITY, IN CONSIDERATION OF THE AGREEMENT OF THE
CITY TO OPERATE SAID FACILITIES AS A PART OF THE WATER DISTRIBUTION
SYSTEM OF THE CITY. 1�
SECTION 2. THERE IS HEREBY APPROPRIATED THE SUM OF $490,000,
OF WHICH $330,000 IS OUT OF WATER SYSTEM BOND FUND N0. 202 AND $160,000
IS FROM THE FLOUR BLUFF WATER SYSTEM ACQUISITION CLEARING FUND, FOR
PROJECT NO. 202- 64 -24, EXTENSIONS - FLOUR BLUFF SYSTEM.
71
March 24, 1964
THE STATE OF TEXAS X
COUNTY OF NUECES X
WHEREAS, the City.of Corpus Christi, (hereinafter called City) a munici-
pal corporation, is the owner of a water distribution system; and
WHEREAS, a portion of land area lying within the Nueces County Water Con -
trol And Improvement District.Number 2, (hereinafter called District) was annexed
by City on,August 5, 1961; and
R•
Y
WHEREAS, District was originally organized primarily for the purpose of
providing adequate fresh, consumable water to the various people living within the
boundaries of said District; and
WHEREAS, District desires to effectuate an assurance that the people with-
in the boundaries.of said District are provided with an adequate supply of fresh,
consumable water now as well as at all times in the future at the least amount of
cost, considering both charges to the consumer and taxes to the property owners with-
in said District; and
WHEREAS, City desires to furnish an adequate supply of fresh consumable
water to all the citizens living within the boundaries of City, including the prop-
a rty owners and people living within all areas claimed to have been legally
annexed; and
WHEREAS, it is the desire and intent of City and District to effectuate
a water supply system whereby the property owners and people living within the
other areas supplied by City, both within and outside of City, and the property
owners and people living within the boundaries of District shall not be discriminated
against in regard to water rates or water taxes, and'such people shall be treated
alike, according to City water rate classifications, in connection therewith at.all
times in the future; and
WHEREAS, City and-District-desire to enter into an agreement-whereby City
will acquire all the.assets. and assume all the obligations of District including,
but not limited to, bonded debt obligations of District.and will maintain and operate
all the existing facilities of District so acquired, and to be acquired within Dis-
trict's area in the future, as a part of City water system; and
WHEREAS, District desires to assure an.adequate fresh, consumable water
supply to the property owners and people living•within the boundaries of District
including all of that.area of said District not_within that portion annexed or
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claimed to be annexed to City and City desires to so effectuate such assurance in
order to acquire all the assets and assume all the obligations of District, and to
continue to operate the existing facilities so acquired and to be-acquired within
said District's area in the future; and
WHEREAS, Article 1182C -1 of Vernon's Annotated Civil .Statutes sets forth
the procedure to be followed when cities annex territory within .water control and
improvement or fresh water supply districts; and
WHEREAS, Section 2 of Article 1182C -1 authorizes the City and District
"to enter into contracts in regard to the division and
allocation,of duplicate and overlapping powers, functions,
and duties between such agencies, and in regard to the use,
management, control, purchase, conveyance, assumption, and
disposition of the properties, assets, debts, liabilities
and obligations of such district. Any such district is
expressly authorized to enter into agreements with such
city for the operation of the district's utility systems
and other properties by such city, and may provide for the
transfer, conveyance or sale of such systems and properties
of whichever kind and wherever situated (including properties
outside the city) to such city upon such terms and conditions
as may be mutually agreed upon by and between the gov0rning7.bodies of
such district and city. Such operating contracts may extend
for such period of time not exceeding thirty (30) years as
may be stipulated therein and shall be subject to amendment,
renewal or termination by mutual consent of such governing
bodies. No such contract shall contain any provision im-
pairing the obligation of any existing contract of such city
or district." and
NOW THEREFORE, witness all men by these presents that for and in considers-
tion of the premises, the mutual covenants, the conditions, and agreements herein
stated City and District agree as follows:
1. .District_ohall transfer to City on the effective date of this contract
all the assets and liabilities of District, including among other assets the cash
and investments of the Amortization and Emergency Fund and the Interest and Sinking
Fund, together with all past and current accounting records accumulating to the
effective date of this contract.and including title to all real property, vehicles,
and equipment. City and District agree that the firm ,of Morrison and Womack or
some other firm mutually agreeable to both parties will be.employed to bring the
audit.as of December 31, 1963, forward to the 'effective date of this contract, with
exhibits showing.details of all assets and liabilities. Such audit, brought forward
to the date.of execution of this contract, will be the basis for determining the
assets and liabilities of District.
2. .District has outstanding $507,000 of bonds from the original $700,000
authorized by Resolution,adopted September 28, 1950, hereinafter called "Resolution"
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which states as follows:
"authorizing the issuance of Nueces County Water Control and
Improvement District No. II Waterworks Revenue and Tax Bonds,
Series 1950, bearing interest at the rates of 3% and 3'k% per
annum; maturing serially, pledging the net revenues from the
operation of the waterworks system and levying a tax to pay the
principal and interest thereof; prescribing the duties of the
officers of the District in reference to the issuance, approval,
and delivery of the bonds; prescribing other provisions pertain-
ing thereto; and repealing all resolutions in conflict herewith."
Of the total bonds outstanding, $23,000 mature on October 1, 1964, $24,000 will mature
on October 1, 1965, and the balance.and remainder of said bonds may be called for re-
demption on October 1, 1965. City shall, on the effective date-of this contract,
deposit with the Corpus Christi State National Bank the sum of $490,000. City,shall
thereafter semi- annually transfer to said Trustee the next interest payment as set forth
below and, if necessary, any supplemental transfer for principal payments so that the
Amortization, Emergency, and Interest and Sinking,Fund will at all times contain no
less than.$409,000. Said Bank shall actmas Trustee and hold such funds so deposited_
and to be so deposited for the purpose of paying the principal.and interest.on District's
outstanding bonds unless said bonds are assumed by. City as hereinafter provided.and upon
written instructions from City will transfer to the paying agent the cash needed to pay
principal.and interest maturities on said bonds as follows:
.BOND NUMBERS
MATURITY DATE
PRINCIPAL
FTF
3
10
$
174 -196
10-1-64
000
8,755
31,,7555
4 -1 -65
8,410
8,410
197 -220
10 -1 -65
24,000
8,410
32,410
4 -1 -66
8,050
8,050
221 -445
10 -1 -66
25,000
8,050
33,050
4 -1 -67
7,613
7,613
246 -271
1
10 -1 -67
26,000
7,613
_33,613
4 -1 -68
7,158
7,158
272 -298
10 -1 -68
27,000
7,158
34,158
Callable for
redemption on
any interest
paying date
on or after
10 -1 -68
_382,000
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3. .City is hereby authorized, subject.to the provisions of paragraph.2
hereof, to instruct said Bank to invest any.and all money on deposit.with said Bank
in United States Securities.
4. City, may at its discretion call-an election to authorize the assump-
tion by City of all District's outstanding debt. If said election is approved by
majority vote,.City „shall carry out the necessary related actions to fully execute
the assumption of such debt.
5. If City has not so assumed the.debt.of District by July 31, 1965, Dis-
trict upon written request from City to any Board member shall, as promptly as practically
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possible, take all actions necessary as set forth in Section.3 of Resolution to pro -
vice for and execute the calling for redemption prior to maturity of all bonds out-
standing on October 1, 1965. If City determines that it does not wish to call the
bonds on October 1, 1965, this provision shall apply on any interest paying date
thereafter which City may elect, until October 1, 1968 on which date District shall
execute the calling of the then outstanding bonds. All costs of said call will be
borne by City.and be paid in the manner set forth below. ,City.shall, before instruct-
ing District to call said bonds, deposit.with said Trustee mentioned in Section 2,
whatever sum is necessary to be deposited so that the cumulative deposit shall total
the then outstanding principal qnd interest plus paying agent's fees in cash or
securities having a maturity value of said amount and maturing at least 5 days prior
to the maturity dates set forth in Section 2-above.
6. Any balance remaining with the Trustee after the retirement of all.said
bonds listed above and the payment of all interest.and paying agent's fees or the
assumption of said bonds by City as provided hereinabove shall be limited to and be-
come the property of City immediately upon such retirement or assumption and City
shall be entitled to withdraw said deposit immediately thereafter.
7. ,City shall, simultaneously with the execution of this agreement,,furnish
District with proper certification that all cash and /or. securities required in Section
2 hereof have been deposited in the named trustee bank.
8. City shall, on the.effective date of this contract take over all operating
facilities of District and shall provide an adequate supply of fresh, consumable.water
to all property in said District which is at the time of the execution of this contract
being furnished fresh, consumable water by District. .City shall at its sole expense
maintain and keep in proper repair the facilities.acquired from District as.well as all
facilities to be installed by City in the future as a part of the City water distribu-
tion system and subject to the control of City to the same extent as all other parts
of said system.
9. Approximatelg 64 permanent, inhabited buildings'within that portion'of
District annexed'or claimed to be "anndxed'by City'do_ndt now.have potable water avail-
able through District's'facilities. These buildings'are shown on Exhibit I: City
'shall provide water service to 50% of Such buildings.by 12 months aftdr"the execution
of this contract and to 90% of such buildings within 36 months of the date-of execution
hereof. The pro rata charge to each potential customer will be determined by utilizing
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I
the.City system's extension policy in effect at the time of the extension. Service un-
der this section will be considered adequate if it is provided by a line at-least 1 inch
in diameter.
10. City agrees that the rates which will be charged to former consumers
of District will be the published rates of the.City as established from time to time.
City shall not discriminate against the consumers of water within said District ly-
ing outside the claimed annexed area, but shall charge said customer for water fur-
nished in,said area on an "outside City limit" basis, the basis being the same basis
as applies to all "outside.City limit" water consumers within the sane classifica-
tion. City agrees that all new customers will be served according to the same rules
,and regulations that now control or in the future.will govern similar customers in
similar areas either within or outside of the City.
11. City shall do each and every act and thing required of District under
the Law, District,Charter, Resolution, and contractual obligations of District ex-
cept:
a. City shall not levy any water tax solely against any
of the land located within the boundaries of District.
This provision shall not in any way restrict•.City from
levying general ad valorem taxes against all properties
lying within the City.
b. City shall not be required to furnish such fresh Water
to the people living in the area,of said District not
within the claimed annexed area to the City of Corpus
Christi, at the same price as it is herein required to
furnish to the people living within said annexed area.
Provided, however, City shall maintain at its own cost and expense all of the existing
water lines and facilities located outside the area claimed to be annexed but within
,the District area, and shall.maintain and keep all lines and facilities installed in
the future in proper repair and operating,condition and further shall provide adequate
water and pressure in said lines, so as to provide an adequate supply of fresh, consum-
able water to all customers in that area of District lying outside the claimed annexed
area.
12. City shall perform each and every act required of City in order to
carry out the spirit and tenor of this agreement.
13. District shall limit the exercise of its authority to calling.the bonds,
if so requested by,City, and to those actions which District deems necessary to cause
compliance with the spirit and tenor of this agreement.
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14. .District,shall continue in existence until City has so assumed District's
said debt obligations or District has called and retired all outstanding bonds and in
either case at least until December 31, 1964. The Board of Directors of District shall
continue to meet.as.often as said Board deems in its own discretion to be desirable and
necessary and shall be paid at the same rate and on the same basis as said Board is now
paid for such meetings. ,District shall maintain its own legal counsel as long as the
Board of District desires and deems such necessary to the proper carrying on of the
.District's business affairs. City shall pay expenses incurred by_District, but limited
to the salary of each Board Member not to-exceed $100 per month, all costs of bond
assumption or call, all costs of District dissolution, the reasonable attorney's fees
of counsel for District, and the costs of elections, if any. Such fees are to be paid
on or before the first day of each month hereafter. .City will not be liable for the
payment of.any attorney's fees for any suit regarding.annexation. City shall provide
a room for District to hold its meetings within District at no cost-to District.
15. .District.will take all steps necessary to dissolve itself as a Water
Control and Tmproyement.District at its first regular meeting.after City has so
assumed District's,debt as herein provided or retired said debt by the-call procedure
provided herein.
16. City shall collect for and on behalf of the District, the uncollected
portion of the tax levied on assessed values.as of.January 1, 1963, hereinafter called
the 1963 tax and City is hereby authorized to collect for and on behalf of District
,any and all delinquent -water taxes.assessed_and levied by District in the past and all
bills for water services which remain unpaid. District also agrees that.City is
authorized to act for District in regard to all claims for and against,District. Dis-
trict will levy no 1964 tax or any tax thereafter. All amounts collected by City shall
be the property of City.
17. All,employees of District.shall become employees of City on the effective
date of this contractuat an annual salary not less than that received.for the most-re-
cent 12 months of employment.with District. .Such employees will receive credit with
City for years,of.service with District in all regards except Texas Municipal Retire -
ment.System. Future service of said employees will be governed by the rules and regula-
tions of the City Civil Service System.
18. District covenants that it has no special rate - customers or special
contractual obligations to furnish water service except its.agreements with Humble
011 and Refining Company and Nueces County,
. -6-
19. District'shall transfer to City as of the effective date of this contract
all of its books, records, maps, and other data and information and City agrees to pre-
serve such records for a period of at least 5 years. District shall be entitled to a
copy of any records it requests from City.
20. It is agreed by all parties hereto that all the terms hereof are specifi-
cally enforceable even though the funds herein referred to as being payable by City will
in no event require the City to procure such funds from taxation nor will 'any bonds be
issued for the purpose of obtaining funds or making the payments herein provided to be
made by City unless and until such bonds are authorized, by an election if required by
law, and in the event any such election be necessary, sufficient time for the holding
of such election shall be allowed before City shall be declared in default of the ob-
ligation to make payment at herein provided.
21. If any provision of this contract or if the application of any provi-
sion of this contract under any particular circumstances shall be held by any court
of competent jurisdiction to be illegal or unenforceable, it shall in no wise effect
or invalidate the remaining provisions hereof.
22. After the dissolution of District, this contract may be enforced by
any person owning land within the boundary of District.
Each of the parties hereto executes this agreement by its duly authorized
officers.
This agreement is executed in duplicate, each of which will be considered
an original for all purposes and shall become effective from and after the execution
thereof, this the day of , 1964.
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary City'Manager
Approved:
Director of Finance
Approved as to Legal Form:
City Attorney
ATTEST:
Secretary
sF
NUECES COUNTY WATER CONTROL AND IMPROVE-
MENT DISTRICT #2
Ey
President
THAT THE FOREGOING ORDINANCE WAS�E�OR THE F T TIME AND s
PA55`eD O ITS SECOND READING ON TH15 THE DAY OF GLiL ,
ig V BY THE FOLLOWING VOTES
JAMES L. BARNARD
JAMES H. YOUNG
JACK R. BLACKMON
JOSE R. DELEON
M. P. MALDONADO
W. J. ROBERTS
W. H. WALLACE, J
THAT THE FOREGOING ORDINAN WAS READ
TO ITS THIRD READING ON THIS THE DAY OF
BY THE FOLLOWING VOTES
JAMES L. BARNARD
JAMES H. YOUNG
JACK R. BLACKMON
JOSE R. DELEON
M. P. MALDONADO
W. J. ROBERTS
r A D
9
W. H. WALLACE, JR.
THAT THE FOREGO NG ORDINANCE S R DNFOR HE THIR TI E AND PASSED
FINALLY ON THIS THE DAY OF , tg y BY
THE FOLLOWING VOTES
JAMES Le B RNARD
JAMES H. YOUNG
JACK R. BLACKMON
JOSE R. DELEON
M. P. MALDONADO
W. J. ROBERTS -e— r�
l
W. H. WALLACE JR. CZ6
PASSED AND APPROVED, THIS THE DAY OF a 19=
AT�T /•
J \ /r
CITY SECRETA /
APPROVED AS TO LEGAL FORM THIS
DAY OF 7tt�,1 g 6/1'c
THE CITY OF CORPUS CHRISTI, TEXAS
CITY ATTORNEY
I CERTIFY TO THE CITY COUNCIL THAT THE MONEY REQUIRED FOR
THE CONTRACTS AGREEMENTS OBLIGATION2 OR EXPENDITURE CONTEMPLATED IN
THE ABOVE AND FOREGOING ORDINANCE IS IN THE TREASURY OF THE CITY OF
CORPUS CHRISTI TO THE CREDIT OF N0. ?09., t33Qf000, FOR PRO.1. POP -64 -2
EXTENSIONS, FLOUR BLUFF SYSTEM, AND
Np ,] 000 FRnA• T� r Fl nug RI IiFF WATER SYRTFm Are_ ('I FeRlua F�iNp
FUND FROM WHICH IT IS PROPOSED TO BE DRAWN, AND SUCH MONEY IS NOT
APPROPRIATED FOyR. ANY OTHER PURPOSE. yy- / -/, -r/ ,1 1
SabPcT_ lU PXPC�.47to. a t io��JN d/ /CC%a C� !D 1/ ,9
y.T� pea.Tits 7a C..,Tr2'T
El
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A,
DIRECTOR OF FIN
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