HomeMy WebLinkAbout10144 ORD - 03/10/1971VMP:2/214/71
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT
TO THE ALICE WATER CONTRACT HERETOFORE ENTERED INTO
BETWEEN THE CITY OF CORPUS CHRISTI AND THE CITY OF
ALICE ON MAY 44, 1962, SAID AMENDMENT BEING FOR THE
PURPOSE OF ASSURING A FUTURE WATER SUPPLY FOR THE CITY
OF ALICE AND A MINIMUM MONTHLY PAYMENT TO THE CITY OF
CORPUS CHRISTI, ALL AS MORE FULLY SET FORTH IN THE
AMENDMENT TO CONTRACT, A COPY OF WHICH IS ATTACHED
HERETO, MARKED EXHIBIT "A ", AND MADE A PART HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
` SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY, AUTHORIZED
AND DIRECTED TO EXECUTE, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, AN
AMENDMENT TO THE ALICE WATER CONTRACT, HERETOFORE ENTERED INTO BETWEEN THE
CITY OF CORPUS CHRISTI AND THE CITY OF ALICE ON MAY 4, 1962, SAID AMENDMENT
BEING FOR THE PURPOSE OF ASSURING A FUTURE WATER SUPPLY FOR THE CITY OF ALICE
AND A MINIMUM MONTHLY PAYMENT TO THE CITY OF CORPUS CHRISTI, ALL'AS MORE
FULLY SET FORTH IN THE AMENDMENT TO CONTRACT, A COPY OF WHICH IS ATTACHED
HERETO, MARKED EXHIBIT "A ", AND MADE A PART HEREOF.
0
x()144 s.
THE STATE OF TEXAS Q
COUNTY OF NUECES ¢
WEREAS, THE CITY OF CORPUS CHRISTI (HEREINAFTER CALLED CORPUS
CHRISTI) AND THE CITY OF ALICE (HEREINAFTER CALLED ALICE) Old MAY 4, 1962, EXE-
CUTED A 30 —YEAR CONTRACT (HEREINAFTER CALLED THE CONTRACT) FOR THE SALE OF
WATER OF CORPUS CHRISTI TO ALICE; AND
WHEREAS, THE CHARTER OF CORPUS CHRISTI %IAS, BY ELECTION, A14ENDED
ON JULY 13, 1968, TO AUTHORIZE CORPUS CHRISTI TO ENTER INTO WATER SALES
CONTRACTS WITH OTHER GOVERNMENTAL BODIES BY AMENDING ARTICLE VIII, TO ADD
A SECTION 17, WHICH READS:
"SEC. 17. WATER SUPPLY CONTRACTS FOR SALE OF UNTREATED WATER.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHARTER, THE CITY BY
ORDINANCE,, WITH THE APPROVAL OF THE TEXAS WATER RIGHTS COMMISSION, AND WITHOUT
VOTER APPROVAL, MAY CONTRACT WITH OTHER GOVERNMENTAL BODIES, FORA SUPPLY OF
UNTREATED WATER FOR THEIR USE FOR A DEFINITE PERIOD OF TIME OR IN PERPETUITY.
EVERY SUCH CONTRACT SHALL CONTAIN EITHER A PROVISION THAT THE RATE TO BE
PAID FOR THE WATER FURNISHED UNDER SUCH CONTRACT SHALL BE THE PUBLISHED RATE
AT THE TIME OF TAKING OR A PROVISION THAT THE RATE SHALL BE THE AVERAGE COST
OF WATER FOR EACH RESPECTIVE YEAR OF THE'CONTRACT. AVERAGE COST SHALL BE
DETERMINED BY TAKING INTO ACCOUNT ALL BOND SERVICE REQUIREMENTS, MAINTENANCE,
DEPRECIATION AND OPERATION EXPENSE, PRORATED AS TO THAT PORTION OF THE CITY
WATER SUPPLY SYSTEM USED IN MAKING SUCH SUPPLY AVAILABLE, AND EVERY SUCH
CONTRACT SHALL CONTAIN A PROVISION TO THE EFFECT THAT THE CONTRACT SHALL BE
CONSTRUED TO ENTITLE THE PURCHASER TO ONLY THAT PORTION OF THE CITY SUPPLY
EQUAL TO THE RATIO WHICH THE POPULATION OF THE AREA PURCHASING WATER BEARS
TO THE TOTAL POPULATION OF THE AREA SUPPLIED THROUGH THE CITY WATER SYSTEM.
SUCH PROVISIONS, WHETHER INCLUDED IN WRITING IN ANY CONTRACT MADE BY THE CITY
OR NOT, SHALL BE DEEMED A PART OF EVERY CONTRACT. THIS PROVISION SHALL BE
CUMULATIVE OF ANY OTHER AUTHORITY OF THE CITY TO EXECUTE CONTRACTS."
AND
WHEREAS, CORPUS CHRISTI AND ALICE DESIRE TO AMEND THE CONTRACT TO
CHANGE ITS TERM TO PERPETUITY AND TO REVISE CERTAIN OTHER PROVISIONS:
NOW, THEREFORE, THIS AMENDMENT TO THE CONTRACT THIS -DAY MADE AND
ENTERED INTO BY AND BETWEEN CORPUS CHRISTI, ACTING HEREIN BY AND THROUGH ITS
DULY AUTHORIZED OFFICERS AND ALICE, ACTING THROUGH ITS DULY AUTHORIZED OFFICERS,
HEREINAFTER CALLED ALICE:
WITNESSETH, IN CONSIDERATION OF THE PREMISES, AND THE SUM OF TEN
DOLLARS ($10.00) CASH IN HAND PAID TO CORPUS CHRISTI BY ALICE, THE BENEFITS
ARISING TO BOTH CORPUS CHRISTI AND ALICE THROUGH THIS AMENDMENT TO THE CON-
TRACT FOR SALE OF UNTREATED WATER, AND THE MUTUAL COVENANTS AND AGREEMENTS OF
THE PARTIES HEREIN CONTAINED, IT IS HEREBY AGREED AS FOLLOWS:
EXHIBIT "A"
I . THAT SECTION 13 OF SAID CONTRACT BE AMENDED TO HEREAFTER READ
AS FOLLOWS:
"SEC. 13. FIXED MINIMUM OBLIGATION.
ALICE IS NOT OBLIGATED TO PURCHASE A MINIMUM AMOUNT OF WATER IN ANY
BILLING MONTH DURING THE PERIOD OF THIS CONTRACT BUT ALICE SHALL PAY TO CORPUS
CHRISTI, BEGINNING AT THE CLOSE OF THE FIRST BILLING CYCLE FOLLOWING THE
EFFECTIVE DATE OF THIS AMENDMENT, AN ANNUAL MINIMUM SUM PAYABLE MONTHLY AT
THE RATE OF ONE-TWELFTH OF SAID ANNUAL SUM AND CALCULATED BY TAKING THE AVERAGE
OF THE HIGHEST PREVIOUS 3 CALENDAR YEARS OR THE PREVIOUS CALENDAR YEAR'S CON-
SUMPTION, WHICHEVER IS HIGHER, TIMES 110% TIMES $1,182,266 (THE 1970 -86 AVERAGE
ANNUAL DEBT SERVICE FOR LAKE CORPUS CHRISTI) DIVIDED BY 116 I.IGD (2010 YIELD
CONDITION OF THE RESERVOIR) TIMES 365 DAYS. THROUGH JUNE 1972, THIS MINIMUM IS
3,336,76o x 110% x$1,182,266
_ $34,163.00 ANNUAL MINIMUM
110,000,0170 GALLONS PER DAY x 305
THE ABOVE MINIMUM OR THE MINIMUM IN THE PUBLISHED RATE, WHICHEVER IS LOWER,
SHALL APPLY.
THIS MINIMUM WILL BE PAID MONTHLY WITH AN ANNUAL FINAL ADJUSTMENT DETERMINED
AT THE CLOSE OF EACH CONTRACT ANNIVERSARY. THE CALCULATION OF THE ANNUAL
MINIMUM SHALL BE MADE SIMULTANEOUSLY WITH THE COMPOSITE COST CALCULATION AS
PROVIDED IN SECTION 11 HEREOF."
2. THAT SECTIONS 21 AND 22 OF SAID CONTRACT BE AMENDED TO HEREAFTER
READ AS FOLLOWS:
"SEC. 21 -22. TERM OF CONTRACT.
SUBJECT TO THE OTHER TERMS HEREOF, THIS CONTRACT SHALL BE PERPETUAL."
3. THIS AMENDMENT SHALL BECOME EFFECTIVE UPON EXECUTION BY DULY
AUTHORIZED REPRESENTATIVES OF ALICE AND CORPUS CHRISTI AND WRITTEN APPROVAL
BY THE LOWER NUECES RIVER WATER SUPPLY DISTRICT AND THE TEXAS WATER RIGHTS
COMMIS SIONI.�
4. ALL PROVISIONS, EXCEPT AS HEREIN EXPRESSLY AMENDED, OF THE MAY 4,
1962 WATER CONTRACT BETWEEN ALICE WATER AUTHORITY AND THE CITY OF CORPUS
CHRISTI SHALL REMAIN IN FULL FORCE AND EFFECT.
IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS INSTRUMENT
TO BE EXECUTED IN SEVERAL COUNTERPARTS, EACH COPY OF WHICH SO EXECUTED SHALL
BE CONSIOERED'AS AN ORIGINAL, BY THEIR RESPECTIVE DULY AUTHORIZED REPRESENTA-
TIVES, THIS THE DAY OF , 1971.
ATTEST: CITY OF CORPUS CHRISTI
BY
CITY SECRETARY OF CORPUS CHRISTI R. 1ARVIN TOWNSEND
CITY MANAGER
-2-
APPROVED AS T LEGAL FORM THIS
DAY OF�' 1971:
C Y TORNEY '
AT OF tPUS CHRISTI
APPROVED:
DIRECTOR OF FINANCE
OF CORPUS CHRISTI
ATTEST:
SECRETARY, ALICE WATER AUTHORITY
ALICE WATER AUTHORITY
BY
PRESIDENT
APPROVED:
LOWER NUECES RIVER WATER SUPPLY DISTRICT
BY
PRESIDENT
ATTEST:
SECRETARY, LOWER- NUECES RIVER
WATER SUPPLY DISTRICT
Jack R. Blackmon
Gabe Lozano, Sr.
V. A. "Dick" Bradley, Jr.
Eduardo E. de Ases
Ken McDaniel
W. J. "Wrangler" Roberts
Ronnie Sizemore
That the foroing eg ordinance was
finally on this the /OV day of U //)LA/Ld
vote:
Jack R. Blackmon
Gabe Lozano, Sr.
V. A. "Dick" Bradley, Jr.
Eduardo E. de Ases
Ken McDaniel
W. J. "Wrangler" Roberts
Ronnie Sizemore yy �
PASSED AND APPROVED, this the A0Vkday of 4')L LAA) , 19
ATTEST•
&& tAA 1. v-A�4 Secret ry MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
ER D S GAL FORM THIS
DAY OF , 19_
Cit Attorney
the third time and passed
19`%/ • , by the following
I
That the foregoing ordinance was read for the first time and
passed to its second reading on this the _fi4day
197/ by the following vote:
Jack R. Blackmon
Gabe Lozano, Sr.
"Dick"
V. A. Bradley, Jr.
Eduardo E. de Asesf
Ken McDaniel
"Wrangler"
ACC
W. J. Roberts
-A��
Ronnie Sizemore
That the foregoing ordinance was read fog the second time and passed
to its third reading on this the y of ✓ai! .f tiRl ) 19 %/ ,
by the following vote:
Jack R. Blackmon
Gabe Lozano, Sr.
V. A. "Dick" Bradley, Jr.
Eduardo E. de Ases
Ken McDaniel
W. J. "Wrangler" Roberts
Ronnie Sizemore
That the foroing eg ordinance was
finally on this the /OV day of U //)LA/Ld
vote:
Jack R. Blackmon
Gabe Lozano, Sr.
V. A. "Dick" Bradley, Jr.
Eduardo E. de Ases
Ken McDaniel
W. J. "Wrangler" Roberts
Ronnie Sizemore yy �
PASSED AND APPROVED, this the A0Vkday of 4')L LAA) , 19
ATTEST•
&& tAA 1. v-A�4 Secret ry MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
ER D S GAL FORM THIS
DAY OF , 19_
Cit Attorney
the third time and passed
19`%/ • , by the following