HomeMy WebLinkAbout11797 ORD - 11/21/1973• JRR:vp:11/20/73:1st
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED
AGREEMENT WITH THE LOWER NUECES RIVER WATER SUPPLY
DISTRICT, AMENDING THAT AGREEMENT AUTHORIZED BY
ORDINANCE NO. 11704, PASSED AND APPROVED BY THE CITY
COUNCIL ON THE 19TH DAY OF SEPTEMBER, 1973, SO AS TO
PROVIDE FOR A SUPPLEMENTAL OR EARLY PAYMENT BY THE
CITY TO THE DISTRICT UNDER CERTAIN CONDITIONS; AND
DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
SECTION 1. That the City Manager is hereby authorized to execute
•
an Amended Agreement with the Lower Nueces River Water Supply District,
amending that Agreement authorized by Ordinance No. 11704, passed and approved
by the City Council on the 19th day of September, 1973, so as to provide for
a supplemental or early payment by the City to the District under certain
conditions, ell as is set forth in said Amended Agreement, a copy of which
is attached hereto, marked Exhibit "A ", and made a part hereof for all
pertinent purposes.
SECTION 2. The necessity to execute the aforesaid Amended 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 introduction but
that such ordinance or resolution shall be read at three several meetings
of the City Council, and the Mayor having declared such emergency and necessity
to exist, and having requested the suspension of the Charter rule and that
this ordinance be passed finally on the date of its introduction and take
effect and be in full force and effect from and after its passage, IT IS
ACCORDINGLY SO ORDAINED, this the 44gLda;y of November, 1973.
ATTEST:
c
City Secret
APPROVED
iAY F NOVEMBER, 19 3:
City ttorney
MAYO
THE CITY OF CORPUS CHRISTI, TEXAS
11797
AGREEMENT
THE STATE OF TEXAS X
COUNTY OF NUECES x
This agreement this day entered into between the City of Corpus
Christi, hereinafter called "City ", and the Lower Nueces River Water Supply
District, hereinafter called "District ",
WITNESSETH:
WHEREAS, the contract between City and District, executed on August
109 1955, and hereinafter called "1955 Contract ", provides in Section 16
thereof that the City becomes the owner of the reservoir facilities when the
debt incurred for these facilities is paid off; and
WHEREAS, the City finds that unless the hereinafter agreement is
made and unless the City makes payments to the District as herein provided
there will be levied by the District a property tax upon the City's citizens
that will work to their economic detriment and thus adversely affect the public
welfare of the City and of its citizens; and
WHEREAS, the District's principal and interest fund is in order with
a substantial surplus over and above the required reserve; and
WHEREAS, the water sales for 1973 °74 will provide adequate payments
for debt retirement, if properly scheduled; and
WHEREAS, the City finds that the supplemental payments by the City
hereinafter provided will defray the operating and financial costs of the
District in such manner as to obviate the District's levy of the tax aforesaid
and thereby protect the public welfare of the City and its citizens; and
WHEREAS, the City finds that such payments are necessary to further
assure the unencumbered, future conveyance to the City of the Wesley Seale
Dam and Reservoir facilities:
NOW, THEREFORE, in consideration of the mutual benefits to accrue to
the parties upon the adoption of the following contract, and in consideration
of the obligations to be discharged by the City and the District under the
provisions of the proposed contract, independently of and apart from any and
all undertakings heretofore entered into between the City and the District,
but'not in derogation of any rights and privileges accruing to either the
District or the City by such prior undertakings, the parties hereto agree
as follows;
F_)(tf l�3 fT"A"
I. City agrees to pay in advance certain amounts of the payment
required after the close of the 1955 contract year so that the August payment
and each monthly payment through July 1974, will be Seventy -Five Thousand
Dollars ($75,000) except for the final settlement of the 1973 -74 contract year
which will occur in July 1974.
2. District agrees that no property tax will be levied for the
1973 tax year on property that is in the District as of January 1, 1973.
3. City agrees that it will make a mutually agreeable supplemental
payment or early payment if the District's cash flow forecast indicates that
the balance at the end of any calendar year or June 30th of any such year will
be below $1,225,000. Failure of the City to provide such supplemental or early
payment will terminate this agreement and relieve the District of the obligation
set forth in paragraph 2 above to not levy a tax.
4. Both parties contemplate that the City will be able, and desires
to make a similar payment additional to or according to a different timetable
than that set forth in the above - mentioned contract in future years making
possible retirement or principal and the payment of interest on the tax -
supported debt of District without the necessity of District levying a property
tax. District and City agree to negotiate a renewal of this contract prior
to August 31, 1974, and in succeeding years.
IN WITNESS WHEREOF, the parties hereto have caused this agreement
to be executed by their duly authorized representatives, this the 21st day
of November, 1973.
ATTEST: CITY OF CORPUS CHRISTI
By
City Secretary R. Marvin Townsend, City Manager
APPROVED, NOVEMB 21, 73:
ty Attorney
Director of Finance
ATTEST: LOWER NUECES RIVER WATER SUPPLY DISTRICT
By.
Secretary
r � .
Corpus Christi, Texas
day of rf /ter/ , 19-Z.2
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; I, 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,
CZ-.1
MAYOR r
THE CITY OF CORPUS CHRISTI, TEXAS
The Charter rule was suspended by the following vote:
Jason Luby
James T. Acuff
Rev. Harold T. Branch
Thomas V. Gonzales
Ricardo Gonzalez
Gabe Lozano, Sr.
J. Howard Stark lc(T
The above ordinance was passed by the following vote:
Jason Luby
James T. Acuff
Rev. Harold T. Branch
Thomas V. Gonzales
Ricardo Gonzalez
Gabe Lozano, Sr.
J. Howard Stark