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HomeMy WebLinkAbout10335 ORD - 07/07/1971OKK: JKH:U -10 -11 AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A CONTRACT WITH PADRE ISLAND INVESTMENT CORPORATION CONCERNING CONSTRUCTION OF A SEWAGE TREATMENT PLANT AND SEWAGE COLLECTION SYSTEM, TO-BE LOCATED ON PADRE ISLAND, ALL AS MORE FULLY SET FORTH IN THE CONTRACT, A COPY OF WHICH IS ATTACHED HERETO, MARKED EXHIBIT "A ", AND MADE A PART HEREOF. WHEREAS, IT IS THE FINDING OF THE CITY COUNCIL THAT THE DEVELOP- MENT OF THE PADRE ISLAND INVESTMENT CORPORATION SUBDIVISIONS ADJACENT TO THE CITY LIMITS, IF TOTALLY DEVELOPED AS PLATTED, WILL PROBABLY SITUATE THEREIN CLOSE TO 140,000 RESIDENTS, WITH VITAL IMPACT ON THE CITY AND ITS INHABITANTS; AND WHEREAS, IT IS THE FINDING OF THE CITY COUNCIL THAT SUCH SUB- DIVISIONS ARE WITHIN THE EXTRATERRITORIAL JURISDICTION AND POLICE REGULATORY JURISDICTION OF THE CITY; AND WHEREAS, THE CITY BEING AUTHORIZED BY LAW TO ACQUIRE BY DEDI- CATION SEWER AND SEWAGE SYSTEMS, INCLUDING SEWAGE TREATMENT PLANTS, OUTSIDE THE CITY LIMITS, IT IS THE FINDING OF THE CITY COUNCIL THAT THE CONSTRUCTION OF A TERTIARY SEWAGE TREATMENT PLANT WITHIN AND FOR THE SERVICE OF SAID SUBDIVISIONS IS NECESSARY. TO PROPERLY SERVE THE HEALTH NEEDS OF SAID SUBDIVISIONS, REASONABLY ANTICIPATING FUTURE NEEDS OF THE CITY'S UTILITY SYSTEMS) AND WHEREAS, PADRE ISLAND INVESTMENT CORPORATION IS DESIROUS OF CONSTRUCTING SUCH A PLANT IN THE SUBDIVISIONS IN COOPERATION WITH THE CITY, TO BE DEDICATED TO THE CITY WITHOUT COST, WITHOUT ANY FINANCIAL COMMITMENT BY THE CITY, BUT ON JOINT APPLICATION WITH THE CITY FOR 6W PUBLIC LAW FUNDS TO ASSIST IN FINANCING SUCH CONSTRUCTIONS AND WHEREAS, IT IS THE FINDING OF THE CITY COUNCIL THAT SUCH JOINT APPLICATION, CONSTRUCTION AND DEDICATION OF SEWAGE TREATMENT PLANT ARE IN THE PUBLIC INTEREST AND TO THE BENEFIT OF THE CITY OF CORPUS CHRISTI, TOGETHER WITH THE CONTRACT BETWEEN THE CITY AND PADRE ISLAND INVESTMENT CORPORATION: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: ®335 CONTRACT THE STATE OF TEXAS G KNOW ALL MEN BY THESE PRESENTS: COUNTY OF NUECES 0 THIS CONTRACT MADE AND ENTERED INTO THIS THE DAY OF 1971, BY AND BETWEEN THE CITY OF CORPUS CHRISTI TEXAS A MUNICIPAL CORPORATION AND BODY POLITIC UNDER THE LAWS OF THE STATE OF TEXAS ACTING BY AND THROUGH ITS DULY AUTHORIZED CITY MANAGERS R. MARVIN TOWNSEND, HEREINAFTER CALLED "CITY ", AND PADRE ISLAND INVESTMENT CORPORATIONS A CORPORATION DULY ORGANIZED UNDER THE LAWS OF THE STATE OF TEXASO HEREINAFTER CALLED "PADRE "; W I T N E S S E T H: THAT FOR AND IN CONSIDERATION OF THE COVENANTS AND AGREEMENTS CONTAINED HEREIN AND SUBJECT TO THE TERMS AND CONDITIONS MORE FULLY SET FORTH HEREAFTER CITY AND PADRE AGREE TO THE CONSTRUCTION OF A SEWAGE TREATMENT PLANT AND SEWAGE COLLECTION SYSTEM, TO BE LOCATED ON PADRE ISLAND, AS FOLLOWS: I PADRE SHALL DEDICATE TO CITY UPON CITY'S REQUESTS A PARTIAL TERTIARY SEWAGE TREATMENT PLANT OF 500,000 GALLON PER DAY CAPACITY THE SITE THEREFORE AND ALL INTERCEPTOR LINES, INCLUDING ALL PERMANENT LIFT STATIONS. REQUEST FOR DEDICATION OF SITE MAY BE MADE BY CITY PRIOR TO EXECUTION OF CONTRACT UNDER THE PUBLIC LAW 660 APPLICATION HEREINAFTER REFERRED TO. IN EVENT SUCH APPLICATION IS DENIED, OR REDUCED TO A PARTICI- PATION SUM UNACCEPTABLE TO PADRES AND PRIOR TO EXECUTION BY CITY OF A PUBLIC LAW 660 CONTRACT WITH THE UNITED STATES GOVERNMENTS THE CITY SHALL, WITHIN TEN (10) DAYS AFTER RECEIPT OF PADRE'S WRITTEN REQUEST SO TO DO. RECONVEY SAID SITE TO PADRE. IT IS UNDERSTOOD AND AGREED THAT SAID PLANTS LINES AND LIFT STATIONS SHALL CONSTITUTE PUBLICLY OWNED FACILITIES TO WHICH PADRE SHALL HAVE NO TITLE OR PROPRIETARY INTEREST. SAID PLANT SHALL BE BUILT AS RECOMMENDED IN THE CITY'S APPROVED MASTER SEWER PLAN AND SHALL BE AS INDICATED BY CITY'S APPLICATION FOR � � „A PUBLIC LAW 660 ASSISTANCE THEREFOR AS AUTHORIZED BY THE CITY COUNCIL OF CORPUS CHRISTI ON JUNE 16, 1971, WHICH BY THIS REFERENCE IS INCORPORATED HEREIN AND MADE A PART HEREOF AS THOUGH FULLY SET FORTH HEREIN. AFTER SAID CONSTRUCTION AND DEDICATION, PADRE SHALL PAY TO THE CITY THE "TOTAL COST OF PLANT OPERATIONS" AS REFLECTED IN THE PADRE ISLAND TREATMENT PLANT ACTIVITY BUDGET OF THE CITY SEWER FUND. "TOTAL COST OF PLANT OPERATIONS" IS HEREBY DEFINED TO INCLUDE SUCH COST AS SHOWN BY THE CITY BUDGET EXPENDITURES AND THE AVERAGE COST PER MILE OF THE TOTAL CITY COLLECTION SYSTEM OPERATION AND MAINTENANCE MULTIPLIED BY THE TOTAL MILES OF SEWER MAIN ON THE ISLAND AND ACCEPTABLE BY THE CITY FOR MAINTENANCE, LESS THE DIRECT INCOME FROM SANITARY SEWAGE CUSTOMERS ON PADRE ISLAND, ALL AS IS DETERMINED BY THE FINANCE DEPARTMENT OF THE CITY. WHEREVER REFERENCE IS MADE HEREIN TO "THE ISLAND" OR "PADRE ISLAND" SUCH REFERENCE IS TO PADRES PLATTED SUBDIVISIONS, COLLECTIVELY. PADRE SHALL MAKE SUCH PAYMENTS TO THE CITY UNTIL SUCH TIME AS THE REVENUE FROM THE PADRE ISLAND SANITARY SEWAGE SYSTEM EXCEEDS THE TOTAL COST OF PLANT OPERATIONS, PLUS THE TOTAL COSTS TO THE CITY FOR BILLING AND COLLECTION, OR UNTIL SUCH TIME AS THE ENTIRE AREA COVERED BY SAID MASTER PLAN COMES WITHIN THE CORPORATE LIMITS OF THE CITY, WHICHEVER EVENT FIRST OCCURS. IV PADRE SHALL ADVANCE TO THE CITY BY CASH DEPOSIT OR IRREVOCABLE LETTER OF CREDIT APPROVED BY THE CITY ATTORNEY THE FULL AMOUNT OF THE CON- STRUCTION CONTRACT PRICE FOR SAID SEWAGE PLANT SYSTEM, RELATED ENGINEERING COSTS, COST OF ALL CONSTRUCTION INSPECTIONS, AND ALL OTHER RELATED COSTS, PRIOR TO AWARD OF THE SEWAGE SYSTEM CONSTRUCTION CONTRACT BY THE CITY. AFTER COMPLETION AND ACCEPTANCE OF CONSTRUCTION BY THE CONTRACT ENGINEER, AND UPON DEDICATION OF SAID SYSTEM TO CITY BY PADRE, CITY SHALL REFUND TO PADRE AN AMOUNT OF MONEY EQUAL TO THE TOTAL OF GRANT PAYMENTS MADE TC AND EXPENDED BY CITY FROM THE UNITED STATES GOVERNMENT FOR THE ACCOMPLISH- MENT OF THIS CONTRACT, PURSUANT TO SUCH GRANT REFERRED TO IN PARAGRAPH I HEREOF. INITIALLY HEREUNDER A LETTER OF CREDIT OF THE SAME TENOR AS THAT OF JUNE 28, 1971 BY PARKDALE STATE BANK FOR PADRE IN FAVOR OF THE CITY IN -2- • THE TOTAL SUM OF $175,000 SHALL BE DELIVERED TO THE CITY ON OR BEFORE JULY 12, 1971 AND SHALL REMAIN IN FORCE AND EFFECT UNTIL A) THIS CONTRACT IS CANCELLED OR RESCINDED BY ITS TERMS, OR B) THE PUBLIC LAW 660 APPLICATION IS DENIED OR THE GRANT REJECTED, WHICHEVER LAST OCCURS. V THE CITY SHALL BILL PADRE ON A MONTHLY BASIS FOR THE DIFFERENCE BETWEEN SAID COST AND REVENUE AS REFERRED TO IN PARAGRAPH II ABOVE, OR AT SUCH OTHER TIME AS MAY BE MUTUALLY AGREED UPON. VI THE CITY SHALL CONSIDER ALL USERS OF THE SAID SEWAGE SYSTEM TO BE CUSTOMERS OF THE CITY AND SUCH USERS WILL BE CHARGED ACCORDING TO THE RATES CHARGED FOR CUSTOMERS SIMILARLY SITUATED AND AS MAY BE DETERMINED BY THE CITY COUNCIL FROM TIME TO TIME. Vil THE CITY AGREES THAT IT WILL CONSULT WITH PADRE REGARDING SUCH CONSTRUCTION CONTRACT REFERRED TO IN PARAGRAPH IV ABOVE AFTER THE CITY HAS RECEIVED BIDS THEREFOR AND BEFORE THE CITY AWARDS A CONTRACT ON SUCH BIDS. VIII THE CITY AND PADRE FURTHER AGREE THAT SUCH SEWAGE TREATMENT PLANT SYSTEM WILL CONFORM TO THE STATE HEALTH DEPARTMENT STANDARDS AND THE APPLICABLE STANDARDS OF THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY AND OF THE TEXAS WATER QUALITY BOARD. IX THE CITY SHALL ADVERTISE FOR THE ACCEPTANCE OF BIDS ON SAID PLANT CONSTRUCTION AM SAID CONSTRUCTION CONTRACT WILL BE LET BY THE CITY, SUBJECT TO THE CONDITIONS OF THIS CONTRACT AND THE SAID GRANT. x THIS CONTRACT IS CONTINGENT UPON THE APPROVAL, AND SUBJECT TO THE CONDITIONS, OF THE GRANT OF FUNDS PURSUANT TO THE AFORESAID APPLICA- TION TO BE MADE BY THE CITY UNDER PUBLIC LAW 660, AT PADRES OPTION. IN THE EVENT PADRE ELECTS TO PAY ALL COSTS OF THE CONSTRUCTION OF SAID PLANT AND SYSTEM, INCLUDING SITE AND NECESSARY EASEMENTS, WITHOUT FEDERAL - AID, PADRE SHALL SO NOTIFY THE CITY IN WRITING WITHIN SIXTY (60) DAYS AFTER THE CITY HAS NOTIFIED PADRE OF ACTION TAKEN BY THE UNITED STATES GOVERNMENT ON THE AFORESAID APPLICATION. -3- IT IS UNDERSTOOD AND AGREED THAT NO FUNDS OF THE CITY OF CORPUS CHRISTI ARE COMMITTED OR OBLIGATED HEREUNDER. XI CITY SHALL BE UNDER NO OBLIGATIONS AT ANY TIMES TO ENLARGE EXPANDS OR INCREASE SAID SEWAGE TREATMENT PLANT BUT PADRE SHALL ENLARGE EXPANDS OR INCREASE SAID PLANT AS THE PROGRESSIVE DEVELOPMENT OF PADRE'S SEVERAL SUBDIVISIONS REQUIRES TO MEET THE ANTICIPATED FLOW OF SEWAGE TO SAID PLANT AS DETERMINED BY CITY. XII THE CITY SHALL NOT BE LIABLE IN DAMAGES OR PENALTY TO PADRE FOR ANY ACTS, DEFAULTS OR NEGLIGENCE OF ANY CONTRACTOR OR SUBCONTRACTOR WHICH MAY BE ENGAGED FOR WORK HEREUNDER. XIII PADRE SHALL HAVE THE FIRST RIGHT OF USE OF EFFLUENT PRODUCED BY SAID PLANT AT THE CITY'S PREVAILING RATE THEREFOR AND ACCORDING TO THE CITY'S POLICY AT SUCH TIME OF USE. XIV IT IS UNDERSTOOD AND AGREED BY PADRE AND THE CITY THAT FOR THE PURPOSE OF SECURING STATE AND FEDERAL ASSISTANCE FOR THE CONSTRUCTION CON- TEMPLATED HEREIN THERE ARE ALTERNATIVE FINANCING PLANS AVAILABLE. IT IS AGREED THAT WHICHEVER FINANCE PLAN IS SELECTED BY MUTUAL CONSENT OF PADRE AND THE CITY, PADRE SHALL PAY TO THE CITY THE FOLLOWING: IF THE FINANCING PLAN INVOLVES THE SALE OF BONDS THEN PADRE SHALL PAY ALL INTEREST CHARGES FINANCING COSTS AND ALL EXPENSES ARISING OUT OF OR INCIDENT TO SUCH SALE SERVICING AND RETIREMENT OF SUCH BONDS; IF THE FINANCING PLAN INVOLVES THE SALE OF BONDS BY ANY OTHER GOVERNMENTAL AGENCY OR BY ANY AUTHORITY CREATED UNDER THE STATUTES OF TEXAS OR BY ANY OTHER PERSON, CORPORATION PARTNERSHIP OR JOINT VENTURERS AND AS A RESULT OF SUCH SALE THE CITY IS OR BECOMES OBLIGATED TO RETIRE OR REPAY SUCH BONDS PADRE SHALL PAY TO THE CITY THE COSTS OF PRINCIPAL AND INTEREST PAYMENTS ON SUCH BONDS PLUS ANY CHARGES OF WHATEVER KIND THAT THE SELLER OF SUCH BONDS SHALL MAKE AGAINST THE CITY SUCH ASS BUT NOT LIMITED TO, EXPENSES DEBT SERVICE RESERVES AND ANY CHARGE WHICH REPRESENTS THE SELLER'S ADMINISTRATIVE OR OVERHEAD EXPENSES ATTRIBUTABLE TO THE BONDS. SUCH PAYMENT SHALL BE MADE WITHIN TEN (10) DAYS OF PRESENTATION OF BILL TO PADRE BY THE CITY. THE PROVISIONS OF THIS PARAGRAPH SHALL IN NO WAY LIMIT OR REDUCE THE OBLIGA- TIONS OF PADRE AS ELSEWHERE DESCRIBED IN THIS CONTRACT. IN WITNESS WHEREOF, THE PARTIES HAVE HEREUNTO SET THEIR HANDS IN DUPLICATE ORIGINALS, THIS THE DAY OF , 1971• ATTEST: CITY SECRETARY APPROVED: DAY OF , 1971: CITY ATTORNEY ATTEST: SECRETARY CITY OF CORPUS CHRISTI BY R. MARVIN TOWNSEND CITY MANAGER PADRE ISLAND INVESTMENT CORPORATION BY THE STATE OF TEXAS 0 COUNTY OF NUECES p BEFORE ME, THE UNDERSIGNED AUTHORITY, ON THIS DAY PERSONALLY APPEARED R. MARVINiDWNSEND , CITY MANAGER OF THE CITY OF CORPUS CHRISTI, TEXAS, A MUNICIPAL CORPORATION, KNOWN TO ME TO BE THE PERSON AND OFFICER WHOSE NAME IS SUBSCRIBED TO THE FOREGOING INSTRUMENT, AND ACKNOWLEDGED TO ME THAT HE EXECUTED THE SAME AS THE ACT AND DEED OF SAID CITY OF CORPUS CHRISTI FOR THE PURPOSES AND CONSIDERATION THEREIN EXPRESSE: AND IN THE CAPACITY THEREIN STATED. GIVEN UNDER MY HAND AND SEAL OF OFFICE, THIS THE DAY OF , 19,x. NOTARY PUBLIC IN AND FOR NUECES COUNTY, TEXAS -5- THE STATE OF TEXAS a COUNTY OF NUECES Q BEFORE ME, THE UNDERSIGNED AUTHORITY, ON THIS DAY PERSONALLY APPEARED , PRESIDENT OF THE PADRE ISLAND INVESTMENT CORPORATION, A TEXAS CORPORATION, KNOWN TO ME TO BE THE PERSON AND OFFICER WHOSE NAME IS SUBSCRIBED TO THE FOREGOING INSTRUMENT AND ACKNOWLEDGED TO ME THAT THE SAME WAS THE ACT OF THE SAID PADRE ISLAND INVESTMENT CORPORATION AND THAT HE EXECUTED THE SAME AS THE ACT OF SUCH CORPORATION FOR THE PURPOSES AND CONSIDERATION THEREIN • EXPRESSED, AND IN THE CAPACITY.THEREIN STATED. GIVEN UNDER MY HAND AND SEAL OF OFFICE, THIS THE DAY OF 1971. ,NOTARY PUBLIC IN AND FOR NUECE3 COUNTY, TEXAS THAT THE FOREGOING ORDINANCE WAS READ FO THE FIRS'j TIME AND PASSED TO ITS SECOND READING ON THIS THE �oQ /oAY OF- C- ��:Q, 19 BY THE FOLLOWING VOTE: RONNIE SIZEMORE CHARLES A. BONNIWELL ROBERTO BOSQUEZ REV. HAROLD T. BRANCH THOMAS V. GONZALES GABE LOZANO, SR. J. HOWARD STARK C THAT THE FOREGOING ORDINNA N?CE/n/ WAS READ OR THE SECOND TIME AND PASSED TO ITS THIRD READING ON THIS THE c(o/h IX.- DAY OF , 19_71_j BY THE FOLLOWING VOTE: r1 RONNIE SIZEMORE CHARLES A. BONNIWELL ,- ROBERTO BOSQUEZ I REV. HAROLD T. BRANCH THOMAS V. GONZALES GABE LOZANO, SR. J. HOWARD STARK THAT THE FOREGOING ORDINl CE WAS READ FOR THE THIRD TIME AND PASSED FINALLY ON THIS THE IVA, DAY OF , 19 `J% , BY THE FOLLOWING VOTE: ' RONNIE SIZEMORE CHARLES A. BONNIWELL ROBERTO BOSQUEZ REV. HAROLD T. BRANCH THOMAS V. GONZALES GABE LOZANO, SR. J. HOWARD STARK ����qq PASSED AND APPROVED, THIS THE 9-DAY OF 19 7/ ATTEST: n d CIT SECR TARY AYOR APPROVED: THE CITY OF CO U CHRISTI, TEXAS DAY OF CITY/ATTORNEY