HomeMy WebLinkAbout13627 ORD - 02/23/1977jkh:2 -9 -77; 1st
'1 _I •
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT
WITH PADRE ISLAND INVESTMENT CORPORATION PROVIDING
FOR CITY ACCEPTANCE AND OPERATION OF A 500,000 GALLON
PER DAY WASTEWATER TREATMENT PLANT, TRANSMISSION SYSTEM,
AND COLLECTION SYSTEM; PROVIDING FOR THE DISTRIBUTION OF
OPERATING COSTS; AND PROVIDING FOR THE MEANS OF FINANCING
FUTURE PLANT EXPANSIONS, ALL AS MORE FULLY SET OUT IN THE
CONTRACT, A COPY OF WHICH, IN SUBSTANTIALLY THE SAME FORM,
IS ATTACHED HERETO, MARKED EXHIBIT "A ", AND MADE A PART
HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager be and he is hereby authorized
to execute a contract with Padre Island Investment Corporation providing for
City acceptance and operation of a 500,000 gallon per day wastewater treat-
ment plant, transmission system, and collection system; providing for the
distribution of operating costs; and providing for the means of financing
future plant expansions, all as more fully set out in the contract, a copy
of which, in substantially the same form, is attached hereto, marked Exhibit
"A ", and made a part hereof.
13627
MICROFILMED
JUL p 119W3
M
SEWAGE SYSTEM AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI AND
PADRE ISLAND INVESTMENT CORPORATION
The City of Corpus Christi, Texas, a home rule municipal corporation and
body politic under the laws of the State of Texas, hereinafter called "City",
and Padre Island Investment Corporation, a Texas corporation, hereinafter
called "Padre ", for and in consideration of the covenants and undertakings
hereinafter expressed, agree as follows:
1. Padre has constructed at its sole cost and expense sewage treatment
facilities as follows:
a. A sewage treatment plant located on a portion of the
Utility Complex situated on Padre's Padre Island - Corpus Christi
Project, Padre Island, Nueces County, Texas, hereinafter called the
"Project ", which location is more specifically designated on the map
or sketch attached hereto marked Exhibit A and made a part hereof.
Such sewage treatment plant has a designed capacity of 500,000 gallons
average daily flow and is hereinafter referred to as the "Plant ".
b. A transmission system for the purpose of transporting
raw sewage from the collection system (as hereinafter defined) to
the Plant, which system is hereinafter called the "Transmission
System ". Such Transmission System shall consist of all gravity
sewage lines having a diameter of twelve inches (12 ") or more,
all force mains, all lift stations and all appurtenances thereto.
c. A collection system for the purpose of collecting raw
sewage from each residence, or other type of improvement, and
transporting such raw sewage to the Transmission System, herein-
after called the "Collection System ".
All of such sewage facilities, Plant, Transmission System and Collection
System are hereinafter called the "Sewerage System ".
2. Padre agrees to grant and convey to the City the Plant, together with
the land on which the Plant is situated. In addition, Padre agrees to convey
to City, from time to time as they are constructed, the entire sewage Trans-
mission and Collection Systems serving the Project.
3. City agrees to operate and maintain the Sewerage System as efficiently
as possible, in accordance with City's usual and customary procedures and
practices.
Z pl .� �,
4. If the costs of operating and maintaining the Plant and Transmission
System (being the City's actual direct costs, plus 20% and hereinafter called
"operation costs ") exceed the income attributable to the Sewerage System, less
15% of such income to be allocated to Collection System maintenance, Padre shall
reimburse City for such deficit (hereinafter called the "operations deficit ").
Such operations deficit shall be calculated monthly and Padre shall reimburse
City for the amount of such operations deficit within 10 days after receipt
of City's statement therefor. During each month that the income from the
Sewerage System, less 15 %, exceeds the operations costs, such excess shall be
applied as income in computing the next succeeding month's operations deficit.
At the end of each calendar year, a redetermination shall be made and if the income
from the Sewerage System, less 15 %, together with the sums paid by Padre to City
under the terms of this paragraph exceed such operations costs, the difference
shall be reimbursed to Padre.
5. Padre's obligation to pay such operations deficit, as set forth in
paragraph 4 above shall terminate, expire and be of no further force or
effect upon the expiration of 10 years from the date of this Agreement. Should
portions but not the entirety of the Padre Isles Project be annexed, prior to the
expiration date of the agreement, Padre shall pay the City a percentage of the
operating deficit equal to the percentage of flow entering the plant from unannexed
areas to total flow entering the plant. Total flow from unannexed areas shall be
calculated from billings for sewer service from the area for the month preceeding
annexation. This percentage shall be recalculated at City expense upon additional
annexations and on January 1 of each year. If additional calculations are made at
Padre's request, they will be made at Padre's expense.
6. Padre will construct the first expansion to the Plant to bring the
capacity of the Plant to 2,000,000 gallons average daily flow, at such time as
average daily plant hydraulic flow or biological loading meaches 80% of design
capacity for two consecutive months and upon completion of such expansion, City
shall advance to Padre the Padre Island Construction Fund, as provided for in
section 7 below, to be utilized in making the final portion of the payment due
the contractor constructing such first expansion to the Plant. Amounts advanced
from the Padre Island Construction Fund to Padre shall be reimbursed to the City
at 6% annual interest at such time as the next expansion occurs or the expiration
of 10 years from the date of this agreement, whichever first occurs.
-2-
7. The 2.00 MCD Plant and Transmission System will be constructed at a cost
to Padre of $3,800,000 (using 1976 prices) for the use and benefit of Padre and the
persons who have acquired (or who shall acquire) by purchase from Padre (or from
persons whose chain of title contains Padre as a grantor) land situated in Project.
Therefore, if City uses the Plant or Transmission System to furnish sewage services
to any other person or entity with respect to property which was not conveyed at
one time out of Padre (hereinafter referred to as "Third Party Users ") the City
will credit the proper account with the following sums, and deposit same, in
cash, to the proper account, to -wit:
a. A monthly operational charge with respect to each Third
Party User equal or equivalent to the same charge made by the
City for service to customers who acquired their property by
purchase from Padre. Such charges shall be treated as income to
the City for the purposes of determining the amount of the operations
deficit, if any, as set forth in paragraph 4 above.
b. A capital increment fee to defray the cost of construction
of (i) the Plant together with the estimated cost of the first expansion
of the Plant (as set forth in paragraph 6 above) and (ii) the Transmission
System based upon a projected or estimated utilization of the capacity
of the Plant and the Transmission System by each Third Party User.
The projected utilization of the Plant and Transmission System by each
Third Party User and corresponding fee shall be calculated as set forth
in Exhibit B, attached hereto and made a part hereof. Such fee shall
be deposited in cash in a specially designated construction escrow fund.
(hereinafter called "Padre Island Construction Fund ") to be held by the
City, which shall be kept invested, and the interest credited to such Fund.
If the charge calculated according to this paragraph is less than the
standard front foot extension charge of the City in effect at the time of
connection, the front foot charge shall be utilized and the amount of
money received distributed in such a way that an amount equal to what the
capital increment fee would have been if deposited as provided above for
such fees and the balance is retained by the City as a front foot charge.
c. For the following listed lots for which Padre has provided the
sewer collection system but has not committed service availability, 20%
of the capital increment fee applicable to these lots based on a hydraulic
loading calculation shall be deposited in the Padre Island Construction
-3-
•
•
Fund and be available for use by
Padre in constructing the first expansion
as required in paragraph 6 above.
After such sum has been restored by
Padre as provided in paragraph 6
such sum shall be credited against the
annual payment requirements of paragraph 8 below and shall reduce the
next payment due.
LOTS IN PADRE ISLES THAT HAVE NEVER BEEN OWNED BY PADRE ISLAND INVESTMENT CORPORATION.
PADRE ISLAND NO. 1 BLOCK
LOTS
13
16a, 17a, 18a, 21a,
16b, 17b
14
la, 2a, 3a, 6a, 7a, Sa, 9a, 10a,
16a, 17a, 18a, 19a, 20a,
lb, 2b, 3b, 16b, 17b, 18b, 19b, 20b
16
la, 2a, 4a, 5a, 6a, 7a, 8a, 9a, 10a,
1b, 4b, 5b, 6b, 7b, 8b, 9b, 10b
17
la, 2a, 3a, 4a,
lb, 2b
18
2a, 3a, 4a, 5a
19
3a, 16a, 17a, 18a, 19a, 20a, 21a,
22a, 23a, 24a, 25a, 26a, 27a,
lb, 15b, 16b, 17b, 18b, 19b, 20b,
21b, 22b, 23b, 24b, 25b, 26b
20
6a, 7a, Be, 9a, 10a, Ila, 12a, 13a,
14a, 20a
3b, 16b, 17b, 18b, 19b, 20b
21
la, 2a, 13a, 14a, 15a, 17a, 18a,
10b, llb, 12b, 15b, 16b, 17b
22
lb
26
la, 2a, 3a
27
20a
12b, 13b, 20b
29
la, 2a, 3a, 4a, 5a, 6a,
lb, 5b, 6b
30
la, 6a, 7a, 8a,
lb, 4b, 6b, 7b, 8b
31
la, 2a, 3a, 4a, 8a, 9a, 13a, 14a,
15a, 16a, 17a, 18a, 19a, 20a,
llb, 16b, 18b, 19b, 20b
34
All Lots (1 through 16)
PADRE ISLAND NO. 2
35 2, 4, 5, 6, 9
43 5, 6, 14, 15, 16
-4-
8. One year after the completion of such first expansion to the Plant,
as described in paragraph 6 above, Padre will deposit with the City the sum
of $150,000. Thereafter, on each succeeding anniversary date of such initial
deposit, Padre shall deposit with the City the sum of $150,000 until the contri-
butions made under the terms of this paragraph total $1,5000000. However, if
the City annexes any portion of the Project, then that amount of taxes collected
by the City from any portion of such Project as represented by the percentage of
d bt service
tax supporting the wastewater service systema the total amount of taxes collected
shall be credited to the foregoing sums required to be deposited by Padre, on an
annual basis, and Padre shall be relieved of its obligations under the terms of
this paragraph to the extent of such sums so credited.
9. After Padre has constructed the first expansion to the Plant, as
described in paragraph 6 above, and delivered same to City, and so long as
Padre is not in default in the performance of its obligations as set forth
in paragraph 8 above, City shall, at no further cost or expense to Padre, subject
to availability of appropriations, construct or cause to be constructed all
subsequent expansions or additions to the Plant as may be necessary to fully and
timely furnish sewage treatment services to all persons occupying or using any
portion of the Padre Isles Project.
10. The obligations of Padre hereunder shall terminate as follows:
a. As to its payment toward the operations deficit, as set forth
in paragraph 5 above.
b. As to its plant construction obligations, when the 2,0000000
gallon capacity has been obtained and $1,500,000 has been deposited with
the City as required in paragraph 8 above.
The City's obligation to provide 209, of the plant increment fee set forth in
paragraph 7 shall terminate 10 years after the completion and acceptance by the
City of the first expansion, i.e. the 2,000,000 gallon capacity plant and the
fund required.
—5—
EXECUTED in duplicate, each of which shall be considered an original,
this the day of , 197 .
ATTEST: CITY OF CORPUS CHRISTI
City Secretary
APPROVED:
DAY OF , 197
J. BRIICE
By YCOCK, C ATTORNEY
A�eisTne� City ttorney
Director of Finance
ATTEST:
Secretary
R. Marvin Townsend, City Manager
PADRE ISLAND INVESTMENT CORPORATION
President
EXHIBIT B
Purpose is to set forth a formula to calculate the amount each third
party user shall pay for use of-the transmission and treatment facilities.
Assumptions:
I. Each user shall pay based upon the proportionate utilization
of capacity of the facility (transmission and treatment). Cost
based on hydraulic loading will be calculated at $1.90 per
gallon per day. Cost based on biological loading will be cal-
culated at $8.00 per pound of BOD5 per day. These costs shall be
adjusted on January 1 of each year based on Engineering News Record
Construction Cost of Living Index.
2. Capacity of the transmission facilities shall be the basis of
the design capacity as calculated by the Design Engineer which
is set forth in the following table.
3. Capacity of treatment facilities will be calculated two ways:
a. Hydraulic: Hydraulic capacity is 2,000,000 gal /day average
design flow.
b. Biological: Biological capacity is 3,836 pounds SOD /day
average design flow.
4. All sewage processed through plant with a strength of 250 mg /l
BOD or less will be measured on the basis of hydraulic capacity.
5. All sewage processed through plant with a strength of more than
250 mg /1 BOD will be measured on the basis of biological and
hydraulic capacities. The calculation resulting in the higher
charge will be assessed.
6. Costs and capacities of facilities. For the purposes of com-
puting proportionate payments, the cost of transmission
facilities and their capacities are as listed as follows:
• a. 2 NGD S ,-T.)?,'3ncluding Lift Station 4 @ 2,000,000 gal /day
n. Lift Station No. 4 @ 1.43 Mgal /day $ 220,000 LS
7. Quantities of flow. For the purposes of this instrument the
following table sets forth.the gallons per day per category of
connection that will be used to calculate hydraulic flow. This
table has been compiled from data taken from "Wastewater Engineering;
Collection, Treatment and Disposal ", by Metcalf and Eddy, Inc.,
Copyright 1972. In the event that a hydraulic flow rate must
(3,836 pounds
BOD5 /day) $3,045,084.00
b.
36"
VCP @
9.25 Mgal /day
$ 80.18 /LF
c.
30"
VCP @
6.40 Mgal /day
54.54/LF
d.
27"
VCP @
5.20 Mgal /day
50.33/LF
e.
24"
VCP @
4.10 Mgal /day
40.55/LF
f.
21"
VCP @
3.15 Mgal /day
38.84/LF
g.
18"
VCP @
2.30 Mga1 /day
25.94/LF _
h.
15"
VCP @
1.60 Mgal /day
19.43/LF
1.
12"
VCP @
1.03 Mgal /day
16.46/LF
J.
10"
VCP @
0.72 Mgal /day .
14.25/LF
k.
8"
VCP @
0.46 Mgal /day
13.14LF
1.
16"
Force Main
@ 2.21 Mgal /day
22.82LF
m.
14"
Force Main
@ 1.43 Mgal /day
18.38LF
n. Lift Station No. 4 @ 1.43 Mgal /day $ 220,000 LS
7. Quantities of flow. For the purposes of this instrument the
following table sets forth.the gallons per day per category of
connection that will be used to calculate hydraulic flow. This
table has been compiled from data taken from "Wastewater Engineering;
Collection, Treatment and Disposal ", by Metcalf and Eddy, Inc.,
Copyright 1972. In the event that a hydraulic flow rate must
be computed and does not appear in the following table, data from
the aforementioned publication will be used to negotiate such hydraulic
flow.
(1) Single Family Residence*
(2)
Condominium
140
gal /living unit
(3)
Apartments
140
gal /living unit
(4)
Hotel -Motel
105
gal /unit
(5)
Restaurant
150
gal /table seat
250
gal /counter seat
(6)
Cocktail Lounge
20
gal /seat
(7)
Stores -Shops
50
gal /fixture
(8)
Self Service Laundry
500
gal /washing machine
(9)
Bath Houses
100
gal /fixture
(10)
Hospital
200
gal /bed
(11)
Warehouse
50
gal /fixture
(12)
Service Station
4,000
gal /day
(13)
Schools
20
gal /cap /day
(14)
Office Building
20
gal /150 SF
In the event that more than one category may exist within one .
proposed tap facility (example: Hotel w /100 rooms, Restaurant,
and Cocktail Lounge) each category shall be computed and the
cumulative total shall be used. In the event that a proposed
tap facility might be interpreted to be in more than one category,
that category which would compute the higher flow will be used. In
the event the proposed tap facility is existing and has a water
* All single family residences shall be charged $800 per lot.
•
consumption record that is typical of expected consumption, the
hydraulic flow may be computed as 70% of metered water consumption.
For the purpose of computing biological load, actual BOD5 measure-
ments will be taken if the flow is existing. If the flow is not
existing, an estimate will be made by the City.
In the event that the connection to a transmission facility by a
third party would so load the transmission facility and thereby,
render it unable to serve the area within the Padre project it
was originally designed to serve, such third party may be directed to
make it's tap onto the system at such further point downstream
as is necessary. Any additional cost thereby incurred, will be at
the expense of the third party.
THAT THE FOREGOING ORDINANCE WAS READ F THE FIRST TIME AND PASSED
TO ITS SECOND READING ON THIS THE 0/d DAY OF , 1971, BY THE
FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON
EDUARDO DE ASES
RUTH GILL
BOB GULLEY JT/
GABE LOZANO, SR.
EDWARD L. SAMPLE
THAT THE FOREGOING ORDINA C WAS READ F 3NE SECOND TIME AND PASSED
TO ITS THIRD READING ON THIS THE DAY OF l.G.G' 19�,'I BY THE
FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON
EDUARDO DE ASE$
RUTH GILL
BOB GULLEY
GABE LOZANO, SR.
EDWARD L. SAMPLE
THAT THE FOREGOING ORDINAN W S READ FOR THE THIRD TIME AND PASSED
FINALLY ON THIS THE ( DAY OF 199 BY THE FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON
dw-
EDUARDO DE ASE9 dall
RUTH GILL
BOB GULLEY
GABE LOZANO, SR.
EDWARD L. SAMPLE
PASSED AND APPROVED, THIS THE aJ( DAY OF
ATTEST:
CPtf SECRETARY
OVED:
DAY OF 19
CITY ATTORNEY
13627