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Home My WebLink About10144 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