HomeMy WebLinkAbout13143 ORD - 04/21/1976I'
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AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT
BETWEEN THE BUREAU OF RECLAMATION, NUECES RIVER
AUTHORITY, AND THE CITY OF CORPUS CHRISTI CONCERNING
CONSTRUCTION, OPERATION AND MAINTENANCE OF THE NUECES
RIVER PROJECT, TEXAS (CHOKE CANYON RESERVOIR PROJECT),
A SUBSTANTIAL COPY OF SAID PROPOSED CONTRACT BEING
ATTACHED HERETO, MARKED EXHIBIT "A ", AND MADE A PART
HEREOF FOR ALL INTENTS AND PURPOSES AS IF COPIED
VERBATIM HEREIN.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
SECTION 1. That the City Manager be and he is hereby authorized
to execute a contract between the Bureau of Reclamation, Nueces River
Authority, and the City of Corpus Christi, concerning construction, opera-
tion and maintenance of the Nueces River Project, Texas (Choke Canyon
Reservoir Project), a substantial copy of said proposed contract being
attached hereto, marked Exhibit "A ", and made a part hereof for all intents
and purposes ae if copied verbatim herein.
13143
0
(RO- 4 -7 -76)
PRELIM, ARY
C O N T R A C T
Among the
UNITED STATES OF AMERICA
CITY OF CORPUS CHRISTI, TEXAS
and the
NUECES RIVER AUTHORITY
NUECES RIVER RECLAMATION PROJECT, TEXAS
Contract No,
•
CONTENTS
ARTICLE NO. TITLE
Preamble—
Explanatory Recitals —
1 General Definitions -
2 Project Plan -
3 Lost of Project Works —
4 Contractors to Advance Funds
—
5 Division of Responsibility ---- ---- -- --
6 Construction Coat Obligations---------- ------
7 Allocation of Project Construction Costs
—
8 Construction Completion Notice — ---
9 Repayment- -
10 Disposition of Miscellaneous net Revenues - --
11 Additional Investigations, Surveys, Construction
Work, and Inspections by United States-
12 Computation of Coats--------------- - -----
13 Operation and Maintenance of Transferred Works- -
Payment of Miscellaneous Costs------- -
14 Operation and Maintenance of Recreation and Fish
and Wildlife Facilities-- - --- - --
15 Review and Inspection of Project Works for Deter-
mining Adequacy of Maintenance - - - - -- - --
16 Additional Costs to be Paid by the Contractors-- -
17 Reserve Fund----- __— _-- __— _________
18 Benefits Conditioned Upon Payment-------- --- --
19 Penalty for Delinquent Payments - - - - -- --
20 Water Rights - Water Supply General- -
21 Quality of Water--- -
22 Water and Air Pollution Control ---- —
23 Books, Records, and Reports -
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•
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UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
CONTRACT
Among the
UNITED STATES OF AMERICA
CITY OF CORPUS CHRISTI, TEXAS
and the
NUECES RIVER AUTHORITY
NUECES RIVER RECLAMATION PROJECT, TEXAS
CONTENTS
ARTICLE NO. TITLE
Preamble—
Explanatory Recitals —
1 General Definitions -
2 Project Plan -
3 Lost of Project Works —
4 Contractors to Advance Funds
—
5 Division of Responsibility ---- ---- -- --
6 Construction Coat Obligations---------- ------
7 Allocation of Project Construction Costs
—
8 Construction Completion Notice — ---
9 Repayment- -
10 Disposition of Miscellaneous net Revenues - --
11 Additional Investigations, Surveys, Construction
Work, and Inspections by United States-
12 Computation of Coats--------------- - -----
13 Operation and Maintenance of Transferred Works- -
Payment of Miscellaneous Costs------- -
14 Operation and Maintenance of Recreation and Fish
and Wildlife Facilities-- - --- - --
15 Review and Inspection of Project Works for Deter-
mining Adequacy of Maintenance - - - - -- - --
16 Additional Costs to be Paid by the Contractors-- -
17 Reserve Fund----- __— _-- __— _________
18 Benefits Conditioned Upon Payment-------- --- --
19 Penalty for Delinquent Payments - - - - -- --
20 Water Rights - Water Supply General- -
21 Quality of Water--- -
22 Water and Air Pollution Control ---- —
23 Books, Records, and Reports -
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PAGE NO.
1 -2
2 -3
3 -5
5 -6
6
6 -8
8
9 -12
12
12 -13
14 -24
24 -25
25
25 -26
26 -28
28 -29
29 -30
30 -31
31 -32
32 -33
33
34 -35
35 -36
36
36
•
CONTENTS (Continued)
ARTICLE NO. TITLE
24 Rules, Regulations, and Determinations- --- --
25 Confirmation of Contract----------- -- - - --
26 Conditional Obligation ---- - - - - --
27 Notices----- -
28 Releases and Indemnity-- - ----- - -- -
29 Uncontrollable Forces-- _- __�__ - -� —__
30 Equal Opportunity--------- - - ---- _ —_ —_ --
31 Title VI, Civil Rights Act of 1964 -- -----
32 Additional Provisions Required in Concessioner
Contracts--- --- - -- -- - -- --
33 Contractors Facilities------- - - - - --
34 Amendment or Repeal of Federal Reclamation Laws- -
35 Contingent on Appropriation or Allotment of Funds -
36 Assignment Limited - Successors and Assigns
. Obligated- —
37 Officials Not to Benefit--------
Signatures - --
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PAGE NO.
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37 -38
38 -39
39
39 -40
40 -41
41 -43
44 -45
45 -49
49 -51
51
51 -52
52
52
53
(RO- 1- 16 -76)
Contract No.
1 NUECES RIVER RECLAMATION PROJECT, TEXAS
2 C O N T R A C T
3 Among the
4 UNITED STATES OF AMERICA
5 CITY OF CORPUS CHRISTI, TEXAS
6 and the
7 NUECES RIVER AUTHORITY
8 for
9 Construction, Operation, and Maintenance
10 of the
11 Nueces River Federal Reclamation Project, T
12 THIS CONTRACT is made this day of
13 197_, among the UNITED STATES OF AMERICA, hereinafter referred to
14 as the "United States," acting through the Secretary of the Interior-
IS or his duly authorized representative for the Bureau of Reclamation
16 hereinafter referred to as the "Contracting Officer," and pursuant
17 to the Federal Reclamation Laws, as amended and supplemented, the
18 city of Corpus Christi, Texas, hereinafter referred to as the "City,"
19 organized and existing pursuant to the laws of the State of Texas,
20 with its principal office at Corpus Christi; and the Nueces River
21 Authority, hereinafter referred to as the "Authority," organized and
Preamble
(RO- 1- 16 -76)
1 existing pursuant to the laws of the State of Texas, as set forth
2 in Article 8280 -115, Vernon's Texas Civil Statutes, as amended,
-3 with its principal office at Uvalde, Texas (the City and the
4 Authority, sometimes referred to in this agreement collectively
5 as the "Contractors." The Contractors will act by and through the
6 City.).
7 WITNESSETH THAT:
8 EXPLANATORY RECITALS
9 WHEREAS, the Reclamation Development Act of 1974 (Public
10 Law 93 -493, sections 1001 -1005, 88 Stat. 1486, 1496 -1497 (1974)),
11 authorized construction, operation, and maintenance of Nueces
12 River Project, Texas, hereinafter referred to as the "Project,"
13 and
14 WHEREAS, the Contractors and the United States propose
15 to jointly finance construction of the project as hereinafter
16 defined; and
17 WHEREAS, Contractors are empowered to contract with the
18 United States for advancing a part of the reimbursable costs of
19 construction of the Federal project works and to annually advance
20 funds to the United States up to a maximum total sum of $18,2509000
21 during the construction period, all in accordance with a contract
22 between the City and the United States dated December 30, 1975;
23 and
2
Preamble
Explanatory Recitals
0
0
(RO-1- 16-76)
1 WHEREAS, the Contractors are empowered to contract
2 with the United States for operation and maintenance (O&M) of
3 project works, and are authorized to contract for payments of
4 their reimbursable costs under this contract; and
5 WHEREAS, the parties hereto are all empowered to contract
6 for purposes of this contract;
7 NOW, THEREFORE, in consideration of the mutual and depend -
8 eut covenant's herein contained, it is agreed between the parties
9 hereto as follows:
10 GENERAL DEFINITIONS
11 1. Where used in this contract:
12 a. United States - means the United States of
13 America, including the Secretary of the United States Department
14 of the Interior or his duly authorized representative.
15 b. City - means the city of Corpus Christi, Texas,
16 -or its designated representative, commission, or agency which
17 succeeds it as to any rights, powers, or duties necessary to
18 perform commitments set forth in this contract.
19 c. Authority - means the Nueces River Authority
20 as created under Texas law, or its designated representative or
21 any successor entity which succeeds it as to any rights, powers,
22 or duties required to meet its commitments under this contract,
23 acting through a duly appointed board of directors.
Explanatory Recitals
Art. 1
3
•
(RO- 4 -7 -76)
1 d. Contractors - means the City and the Authority,
2 acting by and through their authorized representatives. The
3 obligations assumed herein by the Contractors shall be joint and
4 several obligations of the City and the Authority.
5 e. Project - means all features comprising the
6 Nueces River Reclamation Project, Texas, authorized by the Act of
7 Congress approved October 27, 1974 (Public law 93 -493), and
8 constructed or provided under terms of this contract.
9 f. Federal Reclamation Laws - means the Act of
10 June 17, 1902 (32 Stat. 388), and all acts amendatory thereof or
11 supplementary thereto, including particularly the Act of Congress
12 approved October 27, 1974 (Public Law 93 -493; 88 Stat. 1496).
13 g. Works - means all works or facilities of the
14 project together with land and rights -of -way for such works.
15 h. Project Water - means water available for use
16 through the project works.
17 1. Operation and Maintenance (O&M) - mean and
18 include normal and reasonable care, control, operation, main -
19 tenance, and replacement of the project works and shall include
20 0&M of recreation and fish and wildlife facilities, payment of
21 miscellaneous costs, accumulation of reserve funds, and payment
22 of all additional 0&M costs as herein provided.
Art. 1
4
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d
(RO- 1- l6 -76)
1 j. 'Year- means the period January 1 through
2 the next following December 31.
3 k. Dam and Reservoir - mean Choke Canyon Dam and
4 Reservoir on'the Frio River and related facilities, together
5 with land and rights -of -way for such works.
6 1. Construction Costs - mean actual costs incurred
7 in construction of the project and related facilities.
8 'm. Contracting Officer - means the Secretary of
9 the Interior or his duly authorized representative.
10 PROJECT PLAN
11 2. a. The project to which this contract relates is
12 construction of Choke Canyon Dam and Reservoir and related facili-
13 . ties on the Frio River near Three Rivers, Texas, for purposes
14 of storing, regulating, and furnishing water for municipal and
15 industrial (M &I) use, conserving and developing fish and wildlife
16 resources, enhancing outdoor recreational opportunities. No
17 treatment of project water available through project works for
18 municipal or other use is included in the project plan.
19 b. The Contractors will obtain a permit from the
20 Texas Water Rights Commission for the project and for the appro-
21 priation of water for beneficial project purposes, and construe-
22 tion of the project shall be in accordance with said permit.
23 c. Title to the project works shall be and remain
24 in the United States until otherwise provided by Congress,
Art. 1
Art. 2
5
•
(RO- 4 -7 -76)
1
notwithstanding transfer of 0&M of said works to the city and
2
the Contractors. Title to movable property which is necessary
3
for O&M of said works shall be transferred to the Contractors
4
or their assignees at the time O&M is assumed.
5
COST OF PROJECT WORKS
6
3. Subject to the terms and conditions of this contract
7
and within the limitation of funds made available by Congress, the
8
Contractors and the United States will spend on construction of the
9
project and acquisition of land, exclusive of interest costa, not
10
to exceed $82,021,000, plus or minus such amounts as may be
11
justified by reason of ordinary fluctuations in construction costs
12
as indicated by engineering cost indices applicable to the type of
13
construction involved herein, or so much thereof as in the opininn
-
14
of the United States is necessary. The actual cost of constructing
15
the dam and reservoir shall be allocated in the same ratio as the
16
estimated costs are allocated in article 7.
17
CONTRACTORS TO ADVANCE FUNDS
18
4. Upon final execution and validation of this con -
19
tract, the advancement of funds contract No. 6- 07- O1- XO5329 between
20
the United States and the City dated December 30, 19750 is termi-
21
nated and is no longer in force and effect. The Contractors will
Art. 2
Art. 3
Art. 4
6
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(RO- 4 -7 -76)
1 advance to the United States, quarterly, a sum of money which,
2 together with any funds which may be appropriated by Congress, is
3 required to accomplish the work scheduled by the United States for
4 constructing the project. The Contractors will advance to the
5 United States the sum of not less than $18,927,000 and receive
6 full credit on their repayment obligation. The estimated schedule
7 for advances is as follows:
8 January 1, 1976, to March 31, 1976 $ 200,000
9 April 1, 1976, to June 30, 1976 $ 575,000
10 July 1, 1976, to September 30, 1976 $1,796,000
11 October 1, 1976, to December 31, 1976 $2,190,000
12 January 1, 1977, to March 31, 1977 $2,109,000
13. April 1, 1977, to June 30, 1977 $1,417,000
14 July 19 1977, to September 30, 1977 $1,592,000
15 October 1, 1977, to September 30, 1978 $5,013,000
16 October 1, 1978, to September 30, 1979 $2,374,000
17 October 1, 1979, to September 30, 1980 $1,661,000
18 $18,927,000
19 At any time following the first advance of funds by the Contrac-
20 tors and prior to commitment of Federal funds to the project, the
21 Contractors shall have the right to require the Contracting Officer
22 to halt activities in progress on the project and assign to the
Art. 4
7
9
l
(RO- 4 -7 -76)
1 _Contractors all contract and property rights, data, drawings,
2 or other items of value acquired with the advanced funds. The
3 request must be in writing. Upon receipt of said request and
4 return to the Contractors of said unexpended advance funds and
5 property acquired with advance funds, all obligations of the
6 parties thereto,'under this contract shall terminate.
7 DIVISION OF RESPONSIBILITY
8 5. -a. The Contractors shall be obligated for repay -
9 ment of reimbursable project costs and 0&M of the project facili-
10 ties, following completion of construction. Under a contract
11 between the Authority and the City, the Authority will issue
12 revenue bonds to make the advance funding payment to the United
13 States through the City toward project construction, and the City
14 agrees to pay the remaining reimbursable project construction costs
15 and the interest on the Authority's bonds and to provide funds for
16 bond redemption. The obligation of the Contractors to pay.the-
17 United States is a joint and several obligation of the City and
18 the Authority.
19 b. The Contractors agree to assume 0&M of the
20 project including recreation and fish and wildlife as provided in
21 articles 13 and 14.
8
Art. 4
Art. 5
u
(RO- 4 -7 -76)
1 CONSTRUCTION COST OBLIGATIONS
2 6. a. In consideration of the Contractors' rights
3 upon completion of construction to utilize or transfer their
4 rights in the project acquired by this contract, the Contractors'
5 obligations, less funds advanced is the amount of $18,927,000,
6 are as follows:
7 (1) Costs incurred by the United States in
8 constructing the project, which are allocated to an M&I water
9 supply, are estimated at $45,260,000 plus interest during con -
10 struction and interest on the unpaid obligation at a rate deter -
11 mined in accordance with subarticle 6(a)(4) of this contract.
12 (2) Costs incurred by the United States in
13 constructing the project, which are allocated to recreation on
14 a reimbursable- basis, are estimated at $7,766,000 plus interest
15 during construction and interest on the unpaid obligation at a
16 rate determined as provided in subarticle 6(a)(4).
17 (3) Costs incurred by the United States in
18 constructing the project, which are allocated to fish and wild -
19 life on a reimbursable basis, are estimated at $106,000 plus
20 interest during construction and interest on the unpaid obligation
21 at a rate determined in subarticle 6(a)(4).
Art. 6
9
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(RO- 4 -7 -76)
1 (4) The applicable interest rate shall be
2 determined by the Secretary of the Treasury, as of the beginning
3 of the fiscal year in which construction is commenced, on the
4 basis of the computed average interest rate payable by the
5 Treasury upon its outstanding marketable public obligations which
6 are neither due nor callable for redemption for 15 years from
7 date of issue. Interest during construction shall be interest
8 charged on one -half of each year's expenditures allocated to the
9 - M&I water supply in excess of funds advanced by the Contractors
10 and to that portion of recreation and fish and wildlife costs which
11 are reimbursable together with interest at the same rate annually
12 on the full amount of such expenditures during previous years. The
13 total amount of all interest thus accumulated through the construc
14 tion period prior to the date of actual completion of the project,
15 as established by announcement of the Contracting Officer, shall
16 _ be added to the construction cost of the project not advanced by the
17 Contractors and shall be allocated to the M &I water supply and to the
18 reimbursable recreation and fish and wildlife costs. Interest on the
19 unpaid balance of those costs not advanced by the Contractors and
20 allocated to M&I Water supply, with exception of that portion of
21 the interest waived under authority of the Water Supply Act of
22 1958 and detailed in article 9c; and recreation and fish and
10
Art. 6
s
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(RO- 4 -7 -76)
1 wildlife, shall be computed annually at the same rate described
2 above.
3 b. The Contractors' obligation shall not exceed
4 the estimated obligation. in 6(a)(1), 6(a)(2), or 6(a)(3) above
5 by more than 15 percent for possible contingencies resulting
6 from fluctuations in construction costs, as indicated by engineer-
7 ing cost indices, less funds advanced by Contractors.
8 c. Should the final construction cost of the project
9' vary from estimates in this contract as determined and announced
10 by the Contracting Officer, then allocations to an M&I water
11 supply, to conserving and developing fish and wildlife resources,
12 and to enhancing outdoor recreational opportunities shall be pro -
13 portionately adjusted; and the resulting allocations, plus interest,
14 shall be used for determining the Contractors' construction obliga-
15 tion.
16 If the Contracting Officer finds at any time that the project
17 cannot be completed within the Contractors' maximum obligation,
18 article 6b; or if bids received on the first major advertised
19 contract be such as to make it unlikely that project works can
20 be completed within the construction cost estimate, the Con-
21 tracting Officer shall consult with the Contractors as to their
22 willingness to increase their repayment obligations. If the
23 Contractors are unable to agree to terms of an amendatory contract
Art. 6
11
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(RO- 4 -7 -76)
1 for repayment of additional cost, the project shall be deemed
.2 complete, and the Contracting Officer may issue the requisite
3 notice for commencing repayment as provided in article 8.
4 ALLOCATION OF PROJECT CONSTRUCTION COSTS
5 7. The estimated cost of constructing the project,
6 based on January 1976 prices, is $81,364,000 (excludes $657,000
7 for archeology). This sum is comprised of multipurpose dam and
8 reservoir costs and separable recreation and fish and wildlife
9 facility costs which are allocated as follows:
10 Reimbursable Nonreimbur-
11 Costs sable Costs Total
12 ($1,000) ($1,000) ($1,000)
13 Dam and Reservoir
14 Municipal 6 Industrial
15 Water Supply Allocation $45,260 0 $45,260
16 . (69.195 percent)
17 Recreation Allocation 0 $18,022 $18,022
18 (27.553 Percent)
19 Fish and Wildlife
20 Allocations 0 $ 2,127 $ 2,127
21 (3.252 percent)
22 Recreation (specific costs) $ 7,766 $ 7,766 $15,532
23 Fish and Wildlife (specific costs) $ 106 $ 317 $ 423
24 Total $53,132- $28,232 $81,364
25 CONSTRUCTION COMPLETION NOTICE
26 8. a. When expenditures on project construction have
27 been made to the limit provided in article 3, plus any additional
Art. 6
Art. 7
Art. 8
12
(RO- 1- 16 -76)
1 amounts which may have been agreed upon under provisions of
2 article 6 or so much thereof as the Contracting Officer considers
3 necessary and useful for construction of the project works, the
4 Contracting Officer may issue the construction completion notice
5 required for establishing the balance of reimbursable costs not
6 previously advanced by the Contractors and for scheduling payments
7 of these costs by the Contractors.
8 b. If construction of project works shall have been
9 commenced but is terminated prior to completion by reason of lack
10 of fund;, failure to secure a valid amendatory contract, or for
11_ any other reason:
12 either
13 (1) The Contractors shall then repay to the
14 United States the total amount of the balance of the construction
15 charge obligation theretofore expended or obligated but not
16 advanced by the contractors at such time and in such manner as
17 the Contracting Officer may then prescribe. Thereafter, the
18 Contractors may proceed at their election and at their own cost
19 with completion of the project; or
20 (2) At the request of the Contractors, the
21 United States will continue construction thereof to the extent
22 that funds are advanced for the purpose by the Contractors.
Art. 8
13
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(RO- 4- 16 -76)
1 REPAYMENT
2 9. a. The project construction costs allocated to an
3 M&I water supply are estimated currently to be $45,260,000,
4 and costs allocated to recreation and fish and wildlife on a reim-
5 bursable basis are estimated to be $7,766,000 and $106,000,
6 respectively. The Contractors shall advance $18,927,000 which will
7 be credited to the M&I water supply allocation. Any reimbursable
8 allocated costs not advanced by the Contractors for construction
9 of the project shall be repaid with interest, as specified under
10 article 6, and shall be the Contractors' remaining repayment obliga-
11 tion. The remaining repayment obligation for an M&I water supply
12 shall be paid to the United States in 40 annual installments, the
13 first of which shall become due on August 1 of the year after the
14 year in which the project works are, as announced by the Contracting
15 Officer under the provisions of article 8 hereof, sufficiently
16 complete to permit the use of project facilities and water is
17 available, if such notice is given prior to August 1, otherwise
18 to commence in the second year after such notice is given. Sub -
19 sequeut annual installments shall become due on August 1 of each
20 succeeding year.
21 b. The applicable interest on the remaining reimbur-
22 sable construction obligation is 5.116 percent per annum if con-
23 struction is started in United States fiscal year 1976. Interest
24 during construction, as described in article 6, shall be computed
25 at the same rate of interest.
Art. 9
14
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(R0-
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1
c. Project storage is designed to yield 1399000
2
acre -feet of water annually for M &I use. That portion of the
3
firm annual yield provided for anticipated future water demand
4
is 64,000 acre -feet. Costs allocated to anticipated future water
5-
demand shall.be either (a) 30 percent of the total estimated cost
6
of the project or (b) the product of the ratio of deferred yield to
7
total yield times construction costs, including interest during
8
construction, allocated to M&I water supply storage, whichever is
9
the lesser. No interest payment is required to be made on such
10
allocation for anticipated future water demand during a 10 -year
11
period of the repayment term unless all or a portion of said
12
annual yield reserved for anticipated future water demand is used
13
in any year in said 10 -year period. In the event of such use of
14
a portion of the storage allocated to anticipated future water
15
demand. all payments required to be made in subsequent years shall
16
be adjusted to reflect interest payments on the repayment obliga-
17
tion associated with that portion of the reserve storage then
18
placed in use. Such adjustments will be.determined by multiplying
19
the percentage of the yield allocated to future water demand which
20
is withdrawn in such year for M &I use by the portion of the repay-
21
meat obligation allocated to future water demand.
22
d. The Contractors' repayment obligation for an
23
M &I water supply shall be paid in annual installments, as shown in
24
the following table, until the actual reimbursable construction
25
cost has been determined at which time a corrected table shall
Art. 9
15
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(x0- 4 -7 -76)
1 be prepared by the Contracting Officer, and the remaining annual
2 installments payable by the Contractors shall be adjusted to
3 provide repayment of the actual reimbursable construction coat
4 plus interest as previously specified. In the event that annual
5 reservoir withdrawals for M&I use exceed 75,000 acre -feet in any
6 one of the first 10 years of the repayment period, all remaining
7 annual installments shall be adjusted as provided in section c
8 of this article. An interest rate of 5.116 percent has been used
9 in preparing the following table. The table is based upon an
10 allocation of estimated construction costs to an M &I water supply
11 of $45,260,000, less $18,927,000 advanced by the Contractors,
12 plus $4,622,000 interest during construction. The table does
13 not include interest on deferred costs of $22,946,000 as pro -
14 vided in section c of this article.
Art. 9
16
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TABLE OF
PAYMENTS - MUNICIPAL AND INDUSTRIAL WATER SUPPLY
Payment
Amount of
Amount of
Total
Number
Interest
Principal
Payment
1
$ 409,700
$ - 375,600
$ 34,100
2
429,000
- 283,900
145,100
3
443,500
- 171,600
271,900
4
452,300
- 69,500
382,800
5
455,800
53,800
509,600
6
453,100
183,300
636,400
7
443,700
319,500
763,200
8
427,300
446,900
874,200
9
404,500
596,500
1,001,000
10
374,000
737,900
1,111,900
11
1,510,100
- 255,500
1,254,600
12
1,523,200
- 126,000
1,397,200
13
1,529,600
- 5,600
1,524,000
14
1,529,900
136,800
1,666,700
15
1,522,900
302,300
1,825,200
16
1,507,500
460,300
1,967,800
17
1,483,900
642,400
2,126,300
18
1,451,100
675,200
2,126,300
19
1,416,500
709,800
2,126,300
20
1,380,200
746,100
2,126,300
21
1,342,000
784,300
2,126,300
22
1,301,900
824,400
2,126,300
23
1,259,700
866,600
2,126,300
24
1,215,400
910,900
2,126,300
25
1,168,800
957,500
2,126,300
26
1,1192800
1,006,500
2,126,300
27
1,068,300
1,058,000
2,126,300
28
1,014,200
1,112,100
2,126,300
29
957,300
1,169,000
2,126,300
30
897,500
1,228,800
2,126,300
31
834,600
1,291,700
2,126,300
32
768,500
1,357,800
2,126,300
33
699,100
1,427,200
2,126,300
34
626,100
1,500,200
2,126,300
35
549,300
1,577,000
2,126,300
36
468,600
1,657,700
2,126,300
37
383,800
1,742,500
2,126,300
38
294,700
1,831,600
2,126,300
39
201,000
1,925,300
2,126,300
40
102,500
2,002,800
2,105,300
Total
$35,420,900
$30,955,000*
$66,375,900
* Allocated construction cost plus interest during construction, less
$18,927,000 advance by Contractors.
Art. 9
17
•
•
i
(RO- 4- 16 -76)
1 e. The Contractors' annual recreation payments
2 are required to be made in accordance with the following repay-
3 ment schedule on August 1 of each year commencing with the 'first
4 year after the year in which project works are, as announced by
5 the,Coutracting Officer under provisions of article 8 hereof,
6 sufficiently complete to permit use of project facilities, and
7 water is available, if such notice is given prior to August 1.
8 otherwise to commence in the second year after such notice is
9 given. The schedule of payments is based on an allocation to
10 recreation of an estimated reimbursable construction cost of
11 $7,766,000 plus interest during construction. Payments
12 will be discontinued upon complete repayment of the allocation
13 to recreation. In the event the actual separable costs of
14 recreation installations shall vary from $15,532,000, then 50 per-
15 cent of such actual separable costs shall be reimbursable and shall
16 be advanced or repaid with interest. The applicable interest rate
17 shall be the rate determined under articles 6 and 9 of this contract.
18 Repayment of any reimbursable recreation may be derived entirely
19 from gross revenues received from entrance and user fees or
20 charges collected for use of recreation and fish and wildlife
21 enhancement facilities of the project. If the Contractors elect
22 to repay the recreation repayment obligation from entrance and
23 user fees, the percentage of fees allocated to repayment is sub -
24 , ject to review at intervals of not more than 5 years and
25 revision as necessary to. accomplish repayment within 50 years.
Art. 9
18
•
(RO- 1- 16 -76)
1 As an alternative to making payments from entrance and user fees,
2 the Contractors may apply water revenues or any other funds avail -
3 able to meet the scheduled payments.
Art. 9
19
i
(RO- 4 -7 -76) •
TABLE OF P• •
S - ONE -HALF SEPARABLE COSTS RECREATION
Payment
Amount of
Amount of
Total
Number
Interest
Principal
Payment
1
$ 284,340
$ 38,680
$ 323,020
2
282,360
51,060
333,420
3
279,690
64,230
343,920
4
276,420
78,000
354,420
5
272,450
92,370
364,820
6
267,780
107,540
375,320
7
262,220
123,500
385,720
8
2559950
140,270
396,220
9
248,690
158,030
406,720
10
240,630
178,190
418,820
11
370,970
59,950
430,920
12
367,910
63,010
430,920
13
364,660
66,260
430,920
14
361,310
69,610
430,920
15
357,760
73,160
430,920
16
354,010
76,910
430,920
17
350,070
80,850
430,920
18
345,930
84,990
430,920
19
341,590-
899330
430,920
20
336,950
939970
430,920
21
332,220
98,700
430,920
22
327,090
103,830
430,920
23
3219870
109,050
430,920
24
316,250
114,670
430,920
25
310,430
120,490
430,920
26
304,220
126,700
430,920
27
297,710
133,210
430,920
28
290,910
140,010
430,920
29
283,810
147,110
430,920
30
276,220
1549700
430,920
31
268,330
162,590
4309920
32
260,050
170,870
430,920
33
251,270
179,650
430,920
34
242,100
188,820
430,920
35
232,440
198,480
430,920
36
222,280
208,640
430,920
37
211,530
219,390
430,920
38
200,390
230,530
430,920
39
1889560
242,360
430,920
40
176,140
254,780
430,920
41
163,120
267,800
4309920
42
149,420
281,500
430,920
43
135,020
295,900
430,920
44
119,940
310,980
430,920
45
103,960
326,960
430,920
46
87,300
343,620
430,920
47
69,650
361,270
430,920
48
51,210
379,710
430,920
49
31,790
399,130
430,920
50
11,380
221,740
233,120
Total
$12,458,300
$8,283,100*
$20,741,400
* Separable
construction costs
plus interest during
construction
20
Art. 9 k
(RO -4- 16-76)
1 f. The Contractors' annual fish and wildlife pay -
2 ments are required to be in accordance with the following repayment
3 schedule made on August 1 of each year commencing with the first
4 year after the year in which project works are, as announced by the
5 Contracting Officer under provisions of article 8 hereof, sufficiently
6 complete to permit use of project facilities and water is available,
7 if such notice is given prior to August 1, otherwise to commence
8 in the second year after such notice is given. The schedule of
9 payments is based on the allocation to fish and wildlife of an
10 estimated reimbursable construction cost of $106,000, plus
11 interest during construction. Payments will be discontinued upon
12 complete repayment of the allocation to fish and wildlife. In
13 the event actual separable costs of fish and wildlife installa-
14 tions shall vary from $423,000, then 25 percent of such actual
15 separable costs shall be reimbursable and shall be advanced or repaid
16 with interest. The applicable interest rate shall be the rate deter -
17 mined under articles 6 and 9 of this contract. Repayment of any reim-
18 bursable fish and wildlife allocation may be derived entirely from gross
19 revenues received from entrance and user fees or charges collected for
20 use of recreation and fish and wildlife enhancement facilities of
21 the project. If the Contractors elect to repay the fish and wild -
22 life repayment obligation from entrance and user fees, the percent -
23 age of fees allocated to repayment is subject to review at intervals
24 of not more than 5 years and revision as necessary to accomplish
Art. 9
21
0
(fi0- 1- 16 -76)
1 repayment within 50 years. As an alternative to making payments
2 from entrance and user fees. the Contractors may apply water
3 revenues or any other funds available to meet the scheduled
4 payments.
22
Art. 9
•(RO- 4 -7 -76) • • •
TABLE OF PAYMENTS - ONE - FOURTH SEPARABLE COST OF FISH AND WILDLIFE
Payment
Amount of
Amount of
Total
Number
Interest
Principal
Payment
1
$ 5,660
$ 520
$ 6,180
2
5,640
540
6,180
3
5,610
570
6,180
4
5,580
600
6,180
5
5,550
630
6,180
6
5,520
660
6,180
7
5,480
700
6,180
8
.5,450
730
6,180
9
5,410
770
6,180
10
5,370
810
6,180
11
5,330
850
6,180
12
5,290
890
6,180
13
5,240
940
6,180
14
5,190
990
6,180
15
5,140
1,040
6,180
16
5,090
1,090
6,180
17
5,030
1,150
6,180
18
4,970
1,210
6,180
19
4,910
1,270
6,180
20.
4,850
1,330
6,180
21
4,780
1,400
69180
22
4,710
1,470
6,180
23
49630
1,550
6,180
24
4,550
1,630
6,180
25
4,470
1,710
6,180
26
4,380
1,800
6,180
27
4,290
1,890
6,180
28
4,190
1,990
6,180
29
4,090
2,090
6,180
30
3,980
2,200
69180
31
3,870
2,310
6,180
32
3,750
2,430
6,180
33
3,630
2,550
6,180
34
3,500
2,680
6,180
35
3,360
2,820
6,180
36
3,220
2,960
6,180
37
3,070
3,110
6,180
38
2,910
3,270
6,180
39
2,740
3,440
6,180
40
2,560
3,620
6,180
41
2,380
3,800
69180
42
2,180
49000
6,180
43
1,980
4,200
6,180
44
1,760
4,420
6,180
45
1,540
4,640
6,180
46
1,300
_ 49880
6,180
47
1,050
5,130
6,180
48
790
5,390
69180
49
510
5,670
6,180
50
220
4,360
4,580
Total
$196,700
$110,700*
$307,400
* Separable
construction
costs plus interest during
construction.
Art. 9
23
• •
16-76)
••(Ro-1-
1.
g. The Contractors may make advance payments on
2
remaining repayment obligations at any time whereupon appropriate
3
adjustments in future payments will be made.
4
DISPOSITION OF MISCELLANEOUS NET REVENUES
5
10. A1], miscellaneous net revenues or nonoperating income
6
received during project construction for the use of property or
7
improvements acquired for the project, including but not by way
8
of limitation net revenue from the sale of sand, gravel, minerals,
9
timber, or other products from project lands and the sale or
10
rental of water during construction, shall be allocated among
11
reimbursable functions of the project in direct proportion to the
12
allocation of costs for those purposes as set forth in article 7.
13
Upon completion of construction, the miscellaneous net revenues
14
allocable to reimbursable functions shall be applied as a credit
15
on remaining reimbursable obligations of the Contractors. Follow
i6
ing construction of the project, miscellaneous net revenues received
17
and allocable to reimbursable purposes payable by the Contractors
18
shall be applied as a credit on the Contractors' annual construc-
19
tion charge installments. When reimbursable construction charges
20
payable by the Contractors' have been fully repaid, then that portion
21
of the miscellaneous net revenues allocated to reimbursable pur-
22
poses shall be applied to other Contractors' obligations payable to
23
the United States. If no obligations exist, such revenues shall be
24
paid to the Contractors. Miscellaneous net revenues do not include
25
any revenues or operating income resulting directly from (1) Invea-
26
tigation and construction activities, (2) salvage or rental of
Art. 9
Art. 10
24
x
-
(RO-1- 16-76)
1 equipment, materials, or supplies, (3) water use after construc-
.2 tion, or (4) entrance and user fees charged or collected for use
3 of recreation and fish and wildlife enhancement facilities.
4 ADDITIONAL INVESTIGATIONS SURVEYS, CONSTRUCTION
5 WORK, AND INSPECTIONS BY UNITED STATES_
6 11. In addition to investigations, surveys, coustruc-
7 tion, and inspection services provided for in connection with
8 completion of the project, the United States will also perform
9 services as requested by the Contractors involving project opera -
10 tions similar to those provided for by Reclamation law for other
11 similar projects. Services requested shall be set forth in writ -
12 ing and shall be contingent upon the advance of sufficient funds
13 for accomplishment thereof as determined by the Contracting officer.
14 COMPUTATION OF COSTS
15 12. The costs which shall be the basis of determining
16 construction charge obligations and all of the other various
17 charge obligations to be advanced or payable by the Contractors
18 to the United States under this contract shall include expendi-
19 tures of whatever kind in connection with work on the project
20 including, but not limited to, the costs of labor, material,
21 equipment, engineering, and legal work; superintendence, adminis-
22 tration, and overhead costs; and general rights -of -way, inspec-
23 tion, special services, property, and damage costs of all kinds.
Art. 10
Art. 11
Art. 12
25
I
•
(RO- 4- 16 -76)
1 The determination of what costs are properly chargeable hereunder
2 and the amount thereof shall be determined-by the Contracting
3 Officer.
4 OPERATION AND MAINTENANCE OF TRANSFERRED
5 WORDS -- PAYMENT OF MISCELLANEOUS COSTS
6 13. a. Upon substantial completion of project works
7 or as otherwise determined by the Contracting Officer and follow -
8 ing written notification, the care, operation, maintenance, and
9 replacement of any or all of the project works shall be transferred
10 to the Contractors.
11 b. The Contractors will use all powers and resources
12 lawfully available (except as provided in article 33), excluding
13 taxes, to meet the obligations assumed in this article to make in
14 full all required payments on or before the date they are due and
15 to meet all other obligations under this contract.
16 c. The Contractors, without expense to the United
17 States, shall care for, operate, and maintain such transferred
18 works in full compliance with the terms of this contract and in
19 such manner that said transferred works will remain in good and
20 efficient condition.
21 d. The Contractors shall promptly make all repairs
22 to project works operated by it which are necessary for proper
23 care, operation, and maintenance. In case of failure of the
24 Contractors to make such repairs within 60 days following written
Art. 12
Art. 13
26
(RO- 1- 16 -76)
1 notification, the Contracting Officer may cause the repairs to
2 be made, and the cost thereof shall be paid by the Contractors
3 as prescribed by the Contracting Officer.
4 e. No substantial change shall be made by the
5 Contractors in any of the major transferred works without first
6 obtaining written consent of the Contracting Officer.
7 f. The Contractors shall hold the United States,
8 its officers, agents, and employees harmless as to any and all
9 damages which may in any manner grow out of the care, operation,
10 and maintenance of any of the project works transferred to the
11 Contractors.
12 g. In the event the Contractors' operations of
13 transferred works are in violation of this contract, the United
14 States at its option may take over from the Contractors the care,
15 operation, and maintenance of such transferred works by giving
16 written notice to the Contractors of such election and of the
17 effective date thereof. Thereafter, during the period of opera -
18 tion by the United States, the Contractors shall pay to the United
19 States annually in advance the cost of 0&M of such works as pre -
20 scribed in notices from the Contracting Officer to the Contractors.
21 Such works may be retransferred to the Contractors in the manner
22 originally transferred.
23 h. In addition to all other payments to be made
24 by the Contractors under this contract, they shall, during the
25 period of time any or all of the project works are being operated
Art. 13
27
(Ro-1- 16 -76)
1 by it, pay to the'United States, following the receipt of a
.2 detailed statement, the reasonable costs incurred by the United
3 States for work involved in administration and supervision of
4 this contract.
5 1. While the Contractors are operating and main -
6 taining project works, the United States will credit the Contractors
7 annually with that portion of the year's joint 0&M costs which, if
8 the United States had continued to operate the project, would have
9 been allocated to fish and wildlife and recreation purposes.
10 OPERATION AND MAINTENANCE OF RECREATION AND FISH
11 AND WILDLIFE FACILITIES
12 14. a. Project works to be operated and maintained by
13 the Contractors (without cost or expense to the United States except
14 as provided in article 13) include facilities for conservation and
15 development of fish and wildlife resources and for enhancing out -
16 door recreation. Conservation and development shall be in accord -
17 ance with the Federal Water Project Recreation Act as amended,
18 (16 U.S.C.A. sections 460 line 5, 460 line 12, through 460 line 21,
19 662 (1974)). Operation and maintenance shall include management
20 of land areas of the project and water surface of Choke Canyon
21 Reservoir to the extent that said land areas and the water surface
22 are designated by the United States for public use for conserving
23 and developing fish and wildlife resources and enhancing outdoor
24 recreation opportunities.
Art. 13
Art. 14
28
0 0' - ' '' ' 0 0
(RO- 4 -7 -76)
1 b., Following completion and filling of Choke Canyon
2 Reservoir, scheduled releases will be made from Lake Corpus Christi
3 to the bays and estuaries for the benefit of marine biota as long
4 as the full yield of the reservoir is not being used for municipal,
5 industrial, and mining purposes; and provided that scheduled releases
6 to the bays and estuaries do not cause the sum of such releases plus
7 consumptive use of project water upstream from Wesley Seale Dam plus
8 diversions from Nueces River downstream from Wesley Seale Dam to
9 exceed 252,000 acre -feet per year. Any such releases shall be made
10 only in.accordance with sound operational procedures and in
11 accordance with applicable State and Federal regulations.
12 c. Construction costs and interest charges allo-
13 cated to enhancing outdoor recreation and fish and wildlife which
14 are reimbursable by the Contractors may be repaid from entrance
15 and user fees or charges collected on the project. Income from
16 user fees or charges in excess of the amount needed for reimburse-
17 ment are available to the Contractors for 06M of recreation and
18 fish and wildlife facilities.
19 REVIEW AND INSPECTION OF PROJECT WORKS FOR DETERMINING
20 ADEQUACY OF MAINTENANCE_
21 15. a. The Contracting Officer with representatives
22 of the Contractors may, from time to time, make reviews of main-
23 tenance of project works being operated by the Contractors with
24 a view to assisting the Contractors in determining condition of
25 facilities and adequacy of the maintenance program. This review
Art. 14
Art. 15
29
I
(Ra1- 16 -76)
1 may include any or all of project works constructed by the United
2 States and transferred to the Contractors or project works con -
3 structed by the Contractors with funds advanced by the United
4 States. A report of the review including recommendations, if
5 any, will be prepared, and copies will be furnished to the
6 Contractors. Except for such participation by the Contractors
7 as they may desire, the review will be without cost to the Con -
8 tractors.
9 b. If deemed necessary by the United States or
10 the Contractors, special inspections of any project works being
11 operated by the Contractors and of the Contractors' books and
12 records may be made by the United States to ascertain the extent
13 of any O&M deficiencies to determine remedial measures required
14 for correction and to assist the Contractors in solving specific
15 problems. Any such special inspection or audit shall, except in
16 a case of emergency, be made after written notice to the Contrac-
17 tors, and the actual cost thereof shall be paid by the Contractors
18 to the United States.
19 ADDITIONAL COSTS TO BE PAID BY THE CONTRACTORS
20 16. In addition to all other payments, the Contractors
21 shall pay, as appropriate, to the United States on or before
22 August 1 of the year following that in which they have been
23 incurred the following costs:
Art. 15
Art. 16
30
I
(RO- 4 -7 -76)
1 a. The reasonable costs of inspection and repairs
2 to project works and audit of books and records incurred by the
3 United States pursuant to this contract.
4 b. Such items for administration, supervision,
5 and general expenses as are properly and equitable chargeable
6 to the Contractors.
7 RESERVE FM
8 17. Commencing with the sixth calendar year after the
9 completion notice is issued, as provided by article 8, and con -
10 tinuing'until such time as all sums of money becoming due here -
11 under for construction of the project shall have been advanced
12 or paid to the United States, the Contractors shall accumulate
13 and maintain a reserve fund which will be available for use in the
14 manner, for the purposes, and in the circumstances hereinafter
15 set forth. Such reserve fund shall consist of annual deposits by
16 the Contractors of not less than $6,500 to a special account
17 created by the Contractors for the purpose. Such annual deposits
18 shall continue until the amount in the reserve fund is not less
19 , than $65,000. Expenditures shall be made from such reserve
20 fund only for meeting major unforeseen extraordinary costs of
21 06M, repair, betterment and replacement of project works, and for
22 0&M during periods of special stress such as may be caused by
23 drought, hurricane storms, or other like emergencies. Whenever
Art. 16
Art. 17
31
(RO- 4- 16 -76)
1 said reserve fund is reduced below $65,000 by expenditures
2 therefrom, it shall be restored by accumulation of annual deposits
3 of $6,500 commencing with the next year following that in
4 which the fund is reduced below said amount. During any period
5 in which any of the project works are operated and maintained by
6 the United States, such fund shall be available for like use by
7 the United States. At option of the Contractors, the reserve
8 fund may be invested to the extent permitted by law, provided that
9 such reserve fund may be made available within a reasonable time
10 to meet expenses for the purpose for which it was accumulated:
11 Provided, That, upon mutual agreement, said fund and annual
12 installments may be adjusted to reflect additions, deletions, or
13 changes in project facilities and OEM costs not contemplated when
14 this contract was executed.
a
15 BENEFITS CONDITIONED UPON PAYMENT
16 18. a. The payments due under provisions of this con -
17 tract shall be secured by a pledge of:
18 (1) The revenues of the City's waterworks sys-
19 tem remaining after paying all expenses of OEM of said system; includ-
20 ing payments made to authority by City under terms of agreement
21 between Contractors executed February 18, 1976, as amended, all debt
22 service, reserve, and other requirements in connection with City's
23 waterworks system's revenue bonds now or hereafter outstanding;
24 however, the City shall not be required to raise funds through taxa-
25 tion to meet its obligations under this contract; and
Art. 17
Art. 18
32
t
(Ro- 4 -7 -76)
1 (2) The net revenues, if any, from the sales
2 of project water by the parties hereto outside the City's water -
3 works system.
4 b. The payment of all charges becoming due here -
5 under to the United States is a condition precedent to receiving
6 benefits under this contract. No water will be made available
7 through project facilities during any period in which arrearages
S exist in the advance payment of any 0&M charges due the United
9 States or payments are in arrears for more than 12 months on any
10 construction charges due the United States. Water shall not be
11 made available pursuant to this contract for lands or parties
12 which are in arrears in the advance payment of O&M or toll charges
13 or in arrears more than 12 months in the payment of construction
14 charges.
15 PENALTY FOR DELINQUENT PAYMENTS
16_ 19. The Contractors shall pay a penalty on install -
17 meats or charges which become delinquent computed at the rate of
18 1 percent per month of the amount of such delinquent installments
19 or charges for each day from such delinquency until paid; Provided,
20 however, That no penalty shall be charged to the Contractors unless
21 such delinquency continues for more than 30 days in which event the
22 penalty shall accrue from initial date of delinquency.
Art. 18
Art. 19
33
11
(RO- 1- 16 -76)
1 WATER RIGHTS - WATER SUPPLY GENERAL
2 20. a. Assurance of Water Rights - The United States
3 shall not be obligated to commence construction or perform any
4 other act in•pursuauce of this contract or having commenced, to
5 continue such construction or performance, nor shall any water be
6 delivered until and unless water rights for project purposes
7 satisfactory to the Contracting Officer have been acquired or
8 assured.
9 b. The City and the Authority shall jointly
10 apply to the Texas Water Rights Commission for a permit for the
11 Nueces River Project. The permit application for the project shall
12 seek a conservation storage capacity of approximately 700,000
13 . acre -feet in the project's reservoir; the diversion and use of the
14 reservoir's dependable yield determined to be 139,000 acre -feet
15 per year from joint operation under year 2010 conditions and, if
16 authorized by the Texas Water Rights Commission, the coordinated
17 operation of Choke Canyon Reservoir and Lake Corpus Christi.
18 c. Protection of Project Water Supply - If a
19 dispute arises as a result of a claim asserted by other than the
20 parties to this contract as to the character, extent, priority,
21 or validity of the right of the United States or the Contractors
22 to use or permit use of the water supply claimed by the Contractors,
23 the Contractors shall promptly bring and diligently prosecute or
Art. 20
34
n
(RO- 4 -7 -76)
1 defend administrative and judicial proceedings for determination
2 of such dispute and shall take all measures necessary toward
3 defense and protection of the water supply.
4 d. Water Shortages - On account of drought and
5 other causes, there may occur at times during any year a shortage
6 in the quantity of water available from the reservoir pursuant
7 to this contract. In no event shall any liability accrue against
8 the United States or any of its officers or employees for any
9 damage, direct or indirect, arising out of any such shortage.
10 e. Contractors' Facility Rights - When all
11 obligations assumed herein have been met and so long as operation
12 and maintenance costs are paid, Contractors or their designee or
13 designees shall have a permanent right to use that portion of
14- project reservoir capacity which is or may be allocated to water
15 supply purposes by the Contracting Officer so long as the space
16 designated for those purposes may be physically available, subject
17 to necessary equitable reallocation of reservoir storage capacities
18 among purposes served by the project due to sedimentation.
19 f. Water Sales - The Contractors or their assigns
20 shall be responsible for disposal and sale of the estimated annual
21 yield of water from the project.
22 QUALITY OF WATER
23 21. The 06M project works shall be performed in such
24 a manner as is practicable to maintain the quality of raw water
Art. 20
Art. 21
35
(RO- 1- 16 -76)
1 made available through such works at the highest level reason-
2 ably attainable as determined by the Contracting Officer. The
3 United States does not warrant the quality of water and is under
4 no obligation to construct or furnish water treatment facilities
5 to maintain or better the quality of water.
6 WATER AND AIR POLLUTION CONTROL
7 22. The Contractors shall comply with all applicable
8 water and air pollution laws and regulations of the United States
9 and the State of Texas; and Contractors will obtain all required
10 permits'or licenses from the appropriate Federal, State, or local
11 authorities.
12 BOORS, RECORDS, AND REPORTS
13 23. The Contractors shall establish and maintain
14 all records of their financial transactions, land use, supply
15 of water, water use, changes of project works, and of any other
16 matter the Contracting Officer may require. The reports shall be
17 furnished to the Contracting Officer in the form and on the date
18 or dates as he may require. Subject to applicable Federal laws
19 and regulations, each party shall have the right during office
20 hours to examine and make copies of each other's books and records
21 relating to matters covered by this contract.
Art. 21
Art. 22
Art. 23
36
4
•
0-
r
(RO- 4 -7 -76)
1 RULES REGULATIONS, AND DETERMINATIONS
2 24. a. The Contracting Officer shall have the right
3 to make, after an opportunity has been offered to the Contractors
4 for consultation, rules and regulations consistent with pro -
5 visions of this contract and with Federal and State laws as may be
6 needed to administer and ensure compliance with this contract.
7 b. Where the terms of this contract provide for
8 action to be based upon opinion or determination of any party to
9 this contract, whether or not stated to be conclusive, said terms
10 shall not be construed as permitting such action to be predicated
11 upon arbitrary, capricious, or unreasonable opinions or determina-
12 tions. In the event that the Contractors question any factual
13 determination made by the Contracting Officer, findings as to
14 the facts shall be made by the Secretary after consultation with
15 the Contractors and shall be conclusive.
16 CONFIRMATION OF CONTRACT
17 25. a. The City and the Authority, upon execution of
18 this contract, shall promptly secure a final decree of the proper
19 court of the State of Texas approving and confirming the contract
20 and decreeing and adjudging it and apportionment of the benefits
21 made thereunder to be lawful, valid, and binding on the City and
22 the Authority. The United States shall be furnished a certified
23 copy of such decree and of all pertinent supporting records.
Art. 24
Art. 25
37
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(RO- 4 -7 -76)
1 b. The City and the Authority each certify,
2 severally and not jointly, that as to it, the execution of this
3 Contract is duly authorized by law; that all acts, conditions,
4 and things required to exist precedent to this Contract, to render
5 the same lawful and valid, have been properly done and happened
6 and have been performed in regular and due time as required by
7 the Constitution and laws of the State of Texas, and that this
8 Contract does not exceed any constitutional or statutory limita-
9 tions. Should any court of law declare that the City or the
10 Authority in executing this Contract violated any constitution
11 or statutory limitation and is therefore void as to such party,
12 then the remaining Contractor whose execution of this Contract
13 is valid shall be entitled to all benfits of this Contract and
14 shall remain fully liable to the United States.
15 CONDITIONAL OBLIGATION
16 26. a. No party hereto shall be obligated by this
17 contract until occurrence of the following events:
18 (1) The Texas Water Rights Commission shall
19 grant permits to the City and the Authority.
Art. 25
Art. 26
38
i
(RO- 4 -7 -76)
1 (2) Attorneys for the City and the Authority
2 shall have approved this Contract as to legality.
3 NOTICES
4 27: Any notice, demand, or request authorized or
5 required by this contract shall be deemed to have been given
6 when mailed, postage prepaid, or delivered to the Regional Dir-
7 ector, Southwest Region, Bureau of Reclamation, Amarillo, Texas,
8 on behalf of the United States; to the Mayor and City Manager of
9 Corpus Christi, Texas, on behalf of the City or the Contractors,
10 and the President and Executive Director of the Nueces River
11 Authority, Uvalde, Texas, on behalf of the Authority. Designation
12 of addressee or the address may be changed by notice given in the
13. same manner as provided in this article for other notices.
14 RELEASES AND INDEMITY
15 28. The Contractors hereby expressly release and agree
16 that they will hold harmless the United States, its officers,
17 agents, employees, and successors or assigns from every claim
18 for damages to persons or property, direct or indirect, and of
19 whatever nature arising out of or in any way connected with any
Art. 26
Art. 27
Art. 28
39
I
(RO- 1- 16 -76)
1 activities of the Contractors in construction or operation of the
2 project; and the Contractors hereby covenant and agree that the
3 United States, its officers, agents, employees, successors, or
4 assigns shall not be liable for damages when suspensions or reduc-
5 tions in delivery of water occur for any reason whatsoever includ-
6 ing but not limited to an insufficient supply of water as deter -
7 mined by the Contracting Officer or by hostile diversion, drought,
8 or interruption of service occasioned by necessary repairs to any
9 of the works by means of which water is stored or for damages
10 caused by floods, unlawful acts, or unavoidable accidents. The
11 Contractors also hereby expressly relieve and release the United
12 States, its officers, agents, and employees from any liability or
13 responsibility whatsoever for any loss of water delivered hereunder
14 which may occur between the point or points of delivery and the place
15 or places of use.
16 UNCONTROLLABLE FORCES
17 29. No party shall be considered to be in default in
18 respect to any obligation hereunder if prevented from fulfilling
19 such obligation by reason of uncontrollable forces (the term
20 "uncontrollable forces" being deemed for the purposes of this
21 contract to mean any cause beyond the control of the party
22 affected), including but not limited to inadequacy of water,
23 failure of facilitiep, flood, earthquake, storm, lightning, fire,
Art. 28
Art. 29
40
n
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(RO- 1- 16 -76)
1 epidemic, war, riot, civil disturbance, labor disturbance,
2 sabotage, and restraint by court or public authority, which by
3 exercise of due diligence and foresight, such party could not
4 reasonably have been expected to avoid. Any party rendered
5 unable to fulfill any obligation by reason of uncontrollable
6 forces shall exercise due diligence to remove such inability
7 with all reasonable dispatch.
8 EQUAL OPPORTUNITY
9 30. During the performance of this contract, the Con-
10 tractors agree as follows:
11 a. The Contractors will not discriminate
12 against any employee or applicant for employment because of race,
13 color, religion, sea, or national origin. The Contractors will
14 take affirmative action to assure that applicants are employed
15 and that employees are treated during employment without regard
16 to their race, color, religion, sea, or national origin. Such
17 action shall include, but not be limited to, the following:
18 Employment, upgrading, demotion, or transfer; recruitment or
19 recruitment advertising; layoff or termination; rates of pay
20 or other forms of compensation; and selection for training,
21 including apprenticeship. The Contractors agree to post in
22 conspicuous places, available to employees and applicants for
23 employment, notices to be provided by the Contracting Officer
24 setting forth the provisions of this Equal Opportunity clause.
Art. 29
Art. 30
41
i
(R0- 1- 16 -76)
1 b. The Contractors, will, in all solicitations
2 or advertisements for employees placed by or on behalf of the
3 Contractors state that all qualified applicants will receive
4 consideration for employment without regard to race, color,
5 religion, sex, or national origin.
6 c. The Contractors will send to each labor
7 union or representative of workers, with which it has a col-
8 lective bargaining agreement or other contract or understanding
9 a notice, to be provided by the Contracting Officer, advising the
10 labor union or workers' representative of the Contractors` com-
e
11 mitments under this Equal Opportunity clause, and shall post
12 copies of the notice in conspicuous places available to employees
13 and applicants for employment.
14 d. The Contractors will comply with all pro -
15 visions of Executive Order No. 11246 of September 24, 1965, as
16 amended, and of the rules, regulations, and relevant orders of
17 the Secretary of Labor.
18 e. The Contractors will furnish all information
19 and reports required by said amended Executive Order and by the
20 rules, regulations, and orders of the Secretary of Labor, or
21 pursuant thereto, and will permit access to its books, records,
22 and accounts by the Contracting Officer and the Secretary of
23 Labor for purposes o£ investigation to ascertain compliance with
Art. 30
42
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(RO- 1- 16 -76)
1 such rules, regulations, and orders.
2 f. In the event of the Contractors' noncompliance
3 with the Equal Opportunity clause of this contract or with any
4 of the said rules, regulations, or orders, this contract may be
5 canceled, terminated, or suspended, in whole or in part, and the
6 Contractors may be declared ineligible for further Government
7 contracts in accordance with procedures authorized in said amended
8 Executive Order, and such other sanctions may be imposed and
9 remedies invoked as provided in said Executive Order, or by rule,
10 regulation, or order of the Secretary of Labor, or as otherwise
11 provided by law.
12 g. The Contractors will include the provision of
13 paragraphs (a) through (g) in every subcontract or purchase order
14 unless exempted by rules, regulations, or orders of the Secretary
15 of Labor issued pursuant to Section 204 of said amended Executive
16 Order, so that such provisions will be binding upon each subcon-
17 tractor or vendor. The Contractors will take such action with
18 respect to any subcontract or purchase order as the Contracting
19 Officer may direct as a means of enforcing such provisions, includ-
20 ing sanctions for noncompliance: Provided, however, That in the
21 event the Contractors become involved in, or are threatened with,
22 litigation with a subcontractor or vendor as a result of such
23 direction by the Contracting Officer, the Contractors may request
24 the United States to enter into such litigation to protect the
25 interests of the United States.
Art. 30
43
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(RO- 1- 16 -76)
1 TITLE VI, CIVIL RIGHTS ACT OF 1964
2 31. a. The Contractors agree that they will comply
3 with Title VI of the Civil Rights Act of July 2, 1964 (78 Stat.
4 241), and all requirements imposed by or pursuant to the Depart-
5 ment of the Interior Regulation (43 CFR 17) issued pursuant to
6 that title, to the end that, in accordance with Title VI of that
7 Act and the Regulations, no person in the United States shall, on
8 the ground of race, color, or national origin be excluded from
9 participation in, be denied the benefits of, or be otherwise
10 subjected to discrimination under any program or activity for
11 which the Contractors receive financial assistance from the
12 United States and hereby gives assurance that it will immediately
13 take any measures to effectuate this agreement.
14 b. If any real property or structure thereon is
15 provided or improved with the aid of Federal financial assistance
16 extended to the Contractors by the United States, this assurance
17 obligates the Contractors or, in the case of any transfer of such
18 property, any transferee for the period during which the real
19 property or structure is used for a purpose involving the pro -
20 vision of similar services or benefits. If any personal property
21 is so provided, this assurance obligates the Contractors for the
22 period during which they retain ownership or possession of the
23 property. In all other cases, this assurance obligates the Con -
24 tractors for the period during which the Federal financial assist -
25 ance is extended by the United States.
Art. 31
44
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(RO- 1- 16 -76)
1 c. This assurance is given in consideration of
2 and for the purpose of obtaining any and all Federal grants,
3 loans, contracts, property, discounts, or other Federal financial
4 assistance extended after the date hereof to the Contractors by
5 the United States, including installment payments after such date
6 on account of arrangements for Federal financial assistance which
7 were approved before such date. The Contractors recognize and
8 agree that such Federal financial assistance will be extended in
9 reliance on representations and agreements made in this assurance
10 and that the United States shall reserve the right to seek
11 judicial enforcement of this assurance. This assurance is binding
12 on the Contractors, their successors, transferees, and assignees.
13 ADDITIONAL PROVISIONS REQUIRED IN CONCESSIONER CONTRACTS
14 32. All contracts executed with concessioners shall
15 include, in addition to requirements of Section 202 of Executive
16 Order No. 11246 dated September 24, 1965, as amended, relating
17 to Nondiscrimination in Employment, the following:
18 a. Definitions: As used in subsections b, c, and
19 d. herein:
20 (1) The term "Concessioner" shall mean the
21 Concessioner and his employees, agents, lessees, sublessees,
22 and Contractors and the successors in interest of the Concessioner.
Art. 31
Art. 32
45
(RO- 1- 16 -76)
1 (2) The term "Facility" shall mean any and all
2 services, facilities, privileges, accommodations, and activities
3 available to the general public and permitted by this agreement.
4 b. The Concessioner shall not:
5 (1) Publicize any facility operated hereunder
6 in any manner that would directly or inferentially reflect upon
7 or question acceptability of any person because of race, color,
8 religion, sex, or national origin.
9 (2) Discriminate by segregation or other means
10 against.any person because of race, color, religion, sex, or
11 national origin in furnishing or refusing to furnish such person
12 the use of any such facility.
13 c. The Concessioner shall post the following
14 notice in such a manner where any facility is available so as to
15 assure that its contents will be conspicuous to any person
.16 seeking employment or use of any facility. Such notice will be
17 furnished the Concessioner by the Secretary.
18 NOTICE
19 THIS IS A FACILITY OPERATED IN AN AREA UNDER THE
20 JURISDICTION OF THE UNITED STATES DEPARTMENT OF
21 THE INTERIOR. NO DISCRIMINATION BY SEGREGATION
22 OR OTHER MEANS IN THE FURNISHING OF ACCOMODATIONS,
23 FACILITIES, SERVICES, OR PRIVILEGES ON THE BASIS OF
24 RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN IS
Art. 32
46
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(RO- 1- 16 -76)
1 PERMITTED IN THE USE OF THIS FACILITY. VIOLATIONS
2 OF THIS PROHIBITION ARE PUNISHABLE BY FINE, IMPRISON -
3 MENT,,OR BOTH. COMPLAINTS OF VIOLATIONS OF THIS
4 PROHIBITION SHOULD BE ADDRESSED TO THE SECRETARY
5 OF THE DEPARTMENT OF THE INTERIOR, WASHINGTON, D.C.
6 20240.
7 d. The Concessioner shall require in all of its
8 contracts of other forma of agreement for the operation of a
9 facility pursuant to this agreement inclusion and compliance
10 with provisions identical with those stated in subsections a,
11 . b, c, and d herein.
12 e. The Contractors may issue and administer
13 subleases, licenses, and permits for periods not to
14 exceed the term of this agreement for the purpose of regulating
15 privileges to be exercised and concession contracts under which
16 commodities and services are made available to the public in
17 the reservoir area; provided, that the Contractors shall not
18 grant rights -of -way or issue permits or licenses for houseboats,
19 home or cabin sites, or removal of minerals. All such subleases,
20 licenses, permits, and concession contracts shall be submitted to
21 and approved by the United States prior to issuance by the Con -
22 tractors. If any concessiouer shall cease to be authorized to
23 conduct operations provided for in his concession contract and
Art. 32
47
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I/
(RO-1- 16-76)
1 if the Contractors, with the concurrence of the United States,
2 determine that such operations are to be conducted by a successor,
3 then:
4 (1) The Concessioner shall be afforded a
5 reasonable time to sell his interest in any structure, facility,
6 and other improvement on leased premises to a successor, approved
7 by the Contractors and the United States; and
8 (2) Such successor will be required, as a
9 condition to granting of a permit of contract to conduct such
10 operations, to purchase such interests from the Concessioner and
1] to pay the Concessioner an amount equal to his interest in the
12 sound value of such structure, facility, or improvement determined
13 upon the basis of replacement costs less depreciation as evidenced
14 by its condition and prospective serviceability in comparison with
15 a new unit of like kind but not to exceed fair market value. If
16 the Concessioner and prospective purchaser cannot agree upon the
17 amount payable for any item or items, such amount will be deter -
18 mined by the majority vote of a board of three appraisers selected
19 as follows: The Concessioner and the prospective purchaser shall
20 each name one member of such appraisal board, and the two members
21 so named shall select the third member. All compensation and
22 expenses of the appraisal board shall be shared and paid equally
23 by the Concessioner and the prospective purchaser. Before
48
Art. 32
s
0 0 . 1 0 i
(RO- 1- 16-76)
1 reaching its decision, the board shall give each of the parties
2 a fair and full opportunity to be heard on any matters in dispute.
3 If, during the term of this lease, any concessioner shall cease
4 to be authorized to conduct operations provided for in his con -
5 cession contract for any reason other than termination of his
6 contract -by direct action of the Contractors and the Contractors
7 determine with the concurrence of the United States that such
8 operations are to be conducted by a successor, then rights, if any,
9 of the Concessioner to sell to or obtain.compensation from his
10 successor shall be controlled by provisions of his concession
11 contract with respect to which the United States shall have no
12 financial or other obligations whatsoever, except where the United
13 States is such successor.
14 CONTRACTORS FACILITIES
15 33. a. In addition to the project features described
16 in article 2 hereof, the Contractors may require other facilities
17 to make water available to prospective consumers. The Contractors
18 must pay for the same and finance the acquisition of such facilities
19 pursuant to laws of the State of Texas. Nothing in this contract
20 shall be deemed to operate in any manner to prevent the Contractors
21 from providing other facilities at their expense and the right and
22 power of the Contractors to do so is recognized and affirmed.
Art. 32
49
Art. 33
0
(RO- 1- 16 776)
1 b. Nothing in this contract shall be construed
2 to deny:
3 (1) The right of the Contractors to construct,
4 lease, purchase, or otherwise acquire additional necessary facili-
5 ties or the right of the Contractors to issue bonds or other
6 evidence of indebtedness to finance the acquisition of such
7 facilities.
8 (2) The right of the Contractors to operate
9 and maintain such additional facilities which are not directly
10 integrated with project works free of all supervision or control
11 by the United States.
12 (3) The right of the Contractors to impose
13 separate charges or to levy separate assessments for water
14 treated or distributed or both, by means of its facilities, in
15 addition to those charges and assessments required to meet
16 obligations of the Contractors to the United States under this
17 contract. The proceeds from such separate charges and assessments
18 shall not be subject to any claim of the United States.
19 (4) The right of the Contractors to include,
20 in the O&M charges to water users, the cost and expense of treating
21 water to be delivered to said users or to include in said charges
22 the annual amount required to be paid by the Contractors for acqui-
23 sition and 0&M of any facilities described in this article.
Art. 33
50
i
51
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(RO- 1- 16 -76)
1
c. In the event the Contractors shall include,
2
in the price charged for the sale of project water to participat-
3
ing organizations, the costs and expenses described in paragraph
4
b of this article then, for all purposes of this contract, such
5
portion of the revenues of the Contractors from the sale of project
6
water shall be deemed "separate charges" made and imposed by the
7
Contractors for the purposes set forth in paragraphs a and b of
S
this article 33, and the same shall be controlled by provisions of
9
said paragraph b of this article.
10
AMENDMENT OR REPEAL OF FEDERAL RECLAMATION LAWS
11
34. In the event that the Congress of the United States
12
may repeal or amend any provisions of the Federal Reclamation laws,
13
the United States agrees at the option of the Contractors to
14
negotiate amendments of appropriate articles of this contract,
15
consistent with provisions of the laws affecting any such repeal
16
or amendment.
17
CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS
18
35. The expenditure or advance of any money or the
19
performance of any work by the United States hereunder which may
20
require appropriation of money by the Congress or the allotment
21
of funds shall be contingent upon such appropriation or allotment
22
being made. Failure of the Congress to appropriate funds or
Art. 33
_
Art. 34
51
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(RO- 1- 16 -76)
1 absence of any allotment of funds shall not relieve the Con-
.2 tractors from any obligations under this contract. No liability
3 shall accrue to the United States in case such funds are not
4 appropriated'or allotted.
5 ASSIGNMENT LIMITED - SUCCESSORS AND ASSIGNS OBLIGATED
6 36. Provisions of this contract shall apply to and
7 bind the successors and assigns of the parties hereto, but no
8 assignment or transfer of this contract or any part or interest
9 therein shall be valid until approved by the Contracting Officer.
10 OFFICIALS NOT TO BENEFIT
11 37. a. No Member of or Delegate to Congress or
12 Resident Commissioner shall be admitted to any share or part of
13. this contract or to any benefit that may arise herefrom. This
14 restriction shall' not be construed to extend to this contract if
15 made with a corporation or company for its general benefit.
16 b. No official of the Contractors shall receive
17 any benefit that may arise by reason of this contract other
18 than as a landowner within the project and in the same manner
19 as other landowners within the project.
52
Art. 35
Art. 36
Art. 37
t
4 By
5 (SEAL)
6 ATTEST: NUECES RIVER AUTHORITY
7 By
8 (SEAL)
9 APPROVED AS TO LEGALITY:
10
11 Attorney for City of
12 Corpus Christi, Texas
13 UNITED STATES OF AMERICA
14 Attorney for Nueces
15 River Authority By.
16 Regional Director, SW Region
17 Bureau of Reclamation
53
Signatures
i
(RO-1- 16-76)
1
EXECUTED as
of the day and year first hereinabove
2 set forth
in several
counterparts, each which is an original.
3 ATTEST:
CITY OF CORPUS CHRISTI, TEXAS
4 By
5 (SEAL)
6 ATTEST: NUECES RIVER AUTHORITY
7 By
8 (SEAL)
9 APPROVED AS TO LEGALITY:
10
11 Attorney for City of
12 Corpus Christi, Texas
13 UNITED STATES OF AMERICA
14 Attorney for Nueces
15 River Authority By.
16 Regional Director, SW Region
17 Bureau of Reclamation
53
Signatures
i
THAT THE FOREGOING ORDINANCE WAS READ FO THC FIR9T TIME AND PASSED
TO ITS SECOND READING ON THIS THE DAY OF 19, BY TXE
FOLLOWING VOTE:
JASON Luer
7P. BILL TIPTON
EDUARDO DE ASEB
RUTH GILL
BOB GULLEY
GAGE LOZANO, SR.
EDWARD L. SAMPLE
THAT THE FOREGOING ORDINAN WAS READ FO XE,9 OND TIME AND PASSED
TO ITS THIRD READING ON THIS TXEDAY OF
FOLLOWING VOTE: a i9xv BY THE
JASON LUST
DR. BILL TIPTON
EDUARDO DE A9E8
RUTH GILL
BOB GULLEY
GAGE LOZANO, SR.
EDWARD L. SAMPLE
T
AT THE FOREGOING ORDIN
FINALLY ON THIS THE l 4r DAY OF
JASON LUBY
DR. BILL TIPTON
EDUARDO DE ASEe
RUTH GILL
BOB GULLEY
GAGE LOZANO, SR.
EDWARD L. SAMPLE
PASSED AND APPROVED, THIS
ATTEST:
NE THIRD TIME AND PASSED
19�, BY THE FOLLOWING VOTE:
1971, 1
allli l CITY SECRETARY MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
AP WED: 6
DAY OF 19�;
ATI r