Loading...
HomeMy WebLinkAbout08752 ORD - 02/07/1968• JKH:2 -7 -65 • AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, TO ENTER INTO AN AGREEMENT WITH PADRE ISLAND INVESTMENT CORPORATION FOR THE PURPOSE OF SUPPLYING WATER TO PADRE ISLAND - CORPUS CHRISTI SECTIONS A AND B, ALL AS MORE FULLY SET FORTH IN THE AGREEMENT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. 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 ENTER INTO AN AGREEMENT WITH PADRE ISLAND INVESTMENT CORPORATION FOR THE PURPOSE OF SUPPLYING WATER TO PADRE ISLAND - CORPUS CHRISTI SECTIONS A AND B, ALL AS MORE FULLY SET FORTH IN THE AGREEMENT, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THE NECESSITY TO ENTER INTO THE AFORESAID AGREEMENT AT THE EARLIEST POSSIBLE DATE CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRO- DUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING REQUESTED THE SUSPENSION OF SAID CHARTER RULE, AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED, THIS THE f- DAY OF FEBRUARY, 1968. ATTEST: CITY SECRE TA Y O APPROVED AS T EGAL FORM THI THE CITY OF CARPUS CHRISTI, TEXAS ' DAY OF FEBRUARY, 19 CITY ATTORNEY 87J� w • February 2, 1968 The City of Corpus Christi City Sell 302 S. Shoreline Corpus Christi, Texas Gentlemen: It is understood that in order to soaure a stater supply for the property covered by our subdivision plats of Padre Island- Corpus Christi Sections A (prior Section 5, as shown on engineer's plat prepared by Rader & Associates, dated DECEMSER 12 , 196 L) and H (as shpwn on engineer's plat prepared by Rader & Associates, dated bFCEMEIEa 28 , 196_1) Padre Island Investment Corporation ( "Padre") must-make satisfactory arrangements for the provision of water for such sections. In consideration for your coopeiation in assisting us to arrange for an ade- quate water supply for such Sections A and B, and enabling un to obtain approval and release of such plats by the Planning Commission and the Department of Public Works, Padre agrees to make evailable,;financing, to the extent of $350,000.00, in connection with eausing a vehicle to be formed, or, at the election of the City of Corpus Christi ( "City "), join with the City in forming such vehicle, for the purpose of laying a twelve inch main water line from the Padre Island toll gate to a suffi- cient distance within the property owned by Padre (as may be mutually agreed to by the City and Padre) in order to supply the water needs for the above mentioned sub- division units, together with additional sections which my be subdivided by Padre, to the capacity of Ouch line. A number of.different vehicles for achieving such water supply and also meeting the other requirements of Padre and the City have been studied and considered by Padre. Presently, it is agreed that a non - profit corpora - tion similar to that outlined on E'rhibit A, attached hereto, is more likely to meet the requirements of the various parties, and will be used unless some other vehicle is agreed to by the City. However, it is understood and agreed that if, after in- vactigation of all facts end legal Implications of the non - profit corporation, it should prove unacceptable to the City or Padre, Padre will work with the City to the end that Padre Brill cause the above described water facilities, within the monetary limits set forth on the attached Exhibit A, to be constructed to serve Padre's sub - diviolon units under the requirenents'of the City. 'r This agreement does not supersede the agreement between Padre and the City dated January 3, 1968, with respect to the water transmission to Padre Island - Corpus Christi, Sections 2 and 3. If thin agreement meets the requirements of the City, please execute the en- closed copy and return it to Padre at''P. 0. Box 1168, Corpus Christi, Texas, 78403. ATTEST: Yours very truly, venar TgTAWn 17MM- TMrNT CORPORATTON V SECRETARY - - BY Ben D. Marks, President ACCEPTM AND A_GREM To on February �', 1968. ATTEST: CITY or COPPUS CHRISTI CITY SECRETARY.- APPROVED.AS TO LEGAL FORM 2 -8 -68: BY CITY ATTORNEY R. MARV_IN TGWNSEND,. CITY MANAGER MIT A In order to achieve an adequate supply of fresh water to the purchasers of lots from Padre Island Investment Corporation, (hereinafter called "Padre ") assuming a population of 5,000 persons on Padre Island by 19900 Padre submits the following proposal, to -Vitt A. Proposed Vehicles 1, It is proposed that the vehicle be a am- profit corporation (hereinafter called "Corporatim ") similar to the corporation presently furnishing gas to the city of Corpus Christi .(hereinafter called "City "). P. The Corporation would be run by a Hoard of Directors appointed by the Corpus Christi City Council. B. Purpose of the Corporation: 1. The primary purpose of the Corporation would be to construct a twelve inch water transmission main from the City'a Flour Bluff water tank, across the Laguna Madre, to an agreed point on Padre Island, and ground Storage facilities and pumping plant, as may be required, for the transmission, storage end distribution of water to conquers who have acquired their property from Padre. Secondary purposes of the Corporation may include, to the aIxtenq legally and financially possible, the construe - tioa of gas transmission stains and sewage mains for the handling of gas and sewage, and the tranemisai -_n and furnishing of water to consumers who have not acquired their property from Padre. Consumers who have not'ecquired their property from Padre shell have a secondary priority end the water which may be transmitted and distributed to such persons shell be limited to the sjmount of water which may be transmitted through such twelve inch line In excess of *requirements of Padre, its successors and assigns. 2. The Corporation may construct additional facilities in the future as such facilities are required within the limits of the Corporation's ability to finance eame. 3. The Corporation's distribution system would not inelude.the systems required by the City to be constructed within a platted subdivision and dedicated to the City which would, notwithstanding this agreement, from time to time as portions of land are subdivided, be provided as required by the City Platting Ordinence and conveyed to the City by dedication. C. Financing the Corporation: 1. In order to obtain funds for the construction of the facilities mentioned in paragraph B -1 shove, the Corporati�,n mould issue its revenue bonds secured by the Corporati Wo assets, such bonds to boor interest at the rate of 5% per annum. The maturity schedule of the bonds would be designed so that maturity would be deferred until conservative projections of the !receipts of the Corporation indicate that pay ments can be made. The bonds would contain provisions for continuation of interest payments and deferment of principal payments if the Corporation should lack sufficient funds to retire the debt or pay the interest according to schedule. P. Padre would purchase, or cause to be purchased, such initial Issue of revenue bonds, not to exceed the total principal amount of $350,000. Every effort would be made to structure the Corporo'tin in order to obtain favorable ruling from the Internal Revenue Service that such bonds are tax- exempt, as bonds issued by municipalities. 3. Financing of subsequent facilities constructed by' the Corporation would be a natter of agreement between the Corporetir,n and the persons requiring the additional facilities. D. Operations of the Corporation: 1. The Corporation would contract with the City for the maintenance and opera- tion of such system. The Corporation would lease the existing water fecilittea of the City situated on Padre Island, beginning at the Flour Sluff Water Tank. 2. The Corporation would assume the City's responsibility to transmit water to the National Seashore and other pro entlyr existing water customers of the City located on Padre Island to the extent that suds water may transmitted through existing water facilities and the excess capacity of the proposed twelve inch water main, described in paragraph B -1 above, over and above the water requirements of Padre and its successors in interest, up to the capacity of such twelve inch main and the initial ground storage. 3. The Corporation, subject to the approval of the City, would set the rate schedule of charges for transmitting apd /or furnishing water to the consumers served. The City and /or Corporation may differentiate between consumers who own property which was previously situated within the Nueces County Water Control and Improvement District Number 2 (hereinafter called "former Water District ") end consumers who own property which was not previously, situated within such former Water District with the result that the final cost of water to such classes of consumers may be different. 4. In establishing the rate schedule for such water, the Corporation and the City would take into conaiderstion the following: the cost of such water to the Corporation; the monthly operation and`,maalntenence charge made by the City; interest and retirement of the outstanding revenue bonds; and any other charges which may be or made against the Corpation. 5.. Before any land which is noVinow served with water by the City or which ie not included in the Preliminary Plat of the development of Padre Island, previously filed with the City by Padre, can be served by such Corporation, the owner or developer of such property must comply with the following- a. He must plat such property according to the City Platting Ordinances; and b'. He mast construct all utility systems within such platted area to be served by the Corporation and convey such systems to the City by dedication; and o. He must make a cash payment to the Corporation; computed according to the formula or schedule developed by the Corporation by joint agreement with the City for the purpose of insuring that as the capacity of such twelve inch'mmin is utilized and committed that funds are available to the Corporation for the construction of additional transmissizn lines, as they are required, as determined by the Corporation. Such payments shell be placed in a trust fund of the Corporation specifically designated for the use herein pre- scribed. I CORPUS CHRISTI, TE7XXAAS. / p DAY OF - -� U X9(00 TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION 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; 1, THEREFORE, REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, YOR THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JACK R. BLACKMON 14- RONNIE SIZEMORE V. A. "DICK" BRADLEY, JR. P. JIMENEZ, JR., M.D. CASE LOZANO, SR. KEN MCDANIEL W. J. "WRANGLER" ROBERTS� THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: JACK R. BLACKMON all RONNIE SIZEMORE V. A. "DICK" BRADLEY, JR. P. JIMENEZ, JR., M.D. l GABE LOZANO, SR. KEN MCDANIEL W. J. 'WRANGLER" ROBERTS