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Home My WebLink About12450 ORD - 01/29/1975rvp:08 /75:lst r ► ' r AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDED AGREEMENT WITH THE LOWER NUECES RIVER WATER SUPPLY DISTRICT, AMENDING THAT AGREEMENT AUTHORIZED BY ORDI- NANCE NO. 11797, PASSED AND APPROVED BY THE CITY COUNCIL ON NOVEMBER 21, 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, TEXAS: SECTION 1. That the City Manager is hereby authorized to execute an Amended Agreement with the Lower Nueces River Water Supply District, amend- ing that Agreement authorized by Ordinance No. 11797, passed and approved by the City Council on the 21st day of November, 1973, so as to provide for supplemental or early payment by the City to the District under certain con- ditions, all 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 oC / day of January, 1975. ATTEST: ` Ci Secretary �- MAY to•iefA CITY OF CORPUS CHR I, TEXAS APPROVED: t9DA JANUARY, 1975: �C i Att cv, ney 12450 ` } � ±. ��, �S icy p «�k � f ii ' •. ` a. i ♦a 4"� ! i - k" . t, ,' Er .y # AGREEMENT 4 e ' R THE STATE OF TEXAS „ ~ e - COUNTY OF NUECES G • ` 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 10, 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 jIIERgaS, the water sales for 197+ -75 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 nanner 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, 4 � t. 4 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: 1. City agrees to pay to District Twenty -Five Thousand Dollars ($25,000.00) per month for the months ^of August, 1974, through July, 1975, or a total of Three Hundred Thousand Dollars ($300,000.00) during the 1974 -75 i Fiscal Year as a payment for the purposes of meeting the interest and princi-• pal of the District on District's tax - supported debt and other construction obligations. This payment will in no way affect the 1955 Contract. The payments under this section are in addition to those required by the 1955 Contract. 2. 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 month payment through July, 1975, will be Seventy -Five Thousand Dollars ($75,000.00) except for the final settlement of the 1974 -75 contract' year which will occur in July, 1975• fi 3• District agrees that no property tax will be levied for the 1974 tax year on property that is in the District as of January 1, 1974. 4. 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 30 of any such year will be below $1,225,000.00. 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 3 above to not levy a tax. s 5. 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 abovementioned contract in fixture years making possible retirement of 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, 1975, and in succeeding years. -2- IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized representatives, this the day of 1975. ATTEST: CITY OF CORPUS CHRISTI By City Secretary R. Marvin Townsend, City Manager APPROVED: DAY OF 1975: City Attorney Director of Finance ATTEST: LOWER NUECES RIVER WATER SUPPLY DISTRICT. $y. .. Secretary t ld ,. Corpus Christi; Texas day of ✓ , 19 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, MAYOfV [0 _ CITY OF CORPUS CHR , TEXAS The Charter rule was suspended by the ,�following vote: Jason Lubyo James T. Acuff Rev. Harold T. Branch e Thomas V. Gonzales } Ricardo Gonzalez Gabe Lozano, Sr. ' J. Howard Stark The above ordinance was passed by the following vote: Jason Lc,hy ° e James T. Acuff Rev. Harold T. Branch ,q Thomas V. Gonzales +rn Ricardo Gonzalez Gabe Lozano, Sr, J. Howard Stark ' V