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HomeMy WebLinkAbout13643 ORD - 02/23/1977JKH:vp:2 /W2 7:1st • AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A FIVE -YEAR WATER CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI AND VIOLET WATER SUPPLY CORPORATION, AS MORE FULLY SET FORTH IN THE CONTRACT, A SUBSTANTIAL COPY OF WHICH, MARKED EXHIBIT "A ", IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. 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 enter into a five -year water contract between the City of Corpus Christi and Violet Water Supply Corporation. all as more fully set forth in the contract, a substantial copy of which is attached hereto, marked Exhibit "A ", and made a part hereof. SECTION 2. The necessity to authorize the entering into a five - year water contract creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist. and having requested the suspension of the Charter rule and that this ordinance be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED. this the � day of February. 1977. ATTEST: Ci Secretary MAYOR THE CITY OF CORPUS CHRISTI. TEXAS APPROVED: DAY OF FEBRUARY, 1977: J. BfyjCE AYCOCK. CITY EY BY: Assistant City torrey MICROFILMED JUL 071990 13643 WATER CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI AND VIOLET WATER SUPPLY CORPORATION THE STATE OF TEXAS COUNTY OF NUECES WHEREAS, the Violet Water Supply Corporation (hereinafter called "Corporation "), a corporation, has been organized and established under the provisions of Article 1434a, V.A.T.S., for the purpose of constructing and operating, and from time to time making extensions of, a water supply dis- tribution system serving water users within the area described in plans now on file in the office of the Corporation and the City of Corpus Christi, a municipal corporation and body politic existing by virtue of the laws of the State of Texas (hereinafter called "City "), which area is outside of but adjacent to the City of Corpus Christi; and WHEREAS, to accomplish this purpose, the Corporation will require a supply of treated water from City's water transmission mains; and WHEREAS, City has determined that at this time sufficient water is available so as to serve the existing customers of City, meet the obligations of the existing contracts of City, and provide the anticipated requirements of the Corporation: WITNESSETH: In consideration of the premises and the sum of Ten Dollars ($10.00) cash in hand paid to the City by the Corporation, the benefits arising to both City and the Corporation through the sale of treated water, and the mutual covenants and agreements of the parties herein contained, it is agreed as follows: SECTION 1. Quality and Quantity - City agrees to sell the Corpo- ration, at the point of delivery hereinafter specified, during the term of this contract or any renewal or extension thereof, potable treated water meeting applicable purity standards of the State Department of Health Resources in such quantity as may be required by the Corporation but limited to four (4) million gallons per month. SECTION 2. Point of Delivery - Delivery shall be made at the outlet side of the City meter located on State Farm Road No. 24, at or near the point of intersection with the present City limits line of the City. Minimum pres- sure will be at or near 45 psi at the point of delivery. SECTION 3. Measurement of Water - The Treated water delivered under the contract shall be measured by a suitable water meter or meters to be installed and maintained by City at the place of delivery. City shall have the right to specify the type of meter or meters to be used and to specify the installation design of the meter or meters. Checks as to the accuracy of the meter or meters shall be made semi - annually by City, and City shall notify the Corporation in writing ten (10) days in advance of all semi- annual checks and tests in order that the Corporation may have a representa- tive present as a witness. Semi- annual tests as to the accuracy of the meter or meters shall be at City's expense. If either City or the Corporation, at any time, shall notify the other that it desires a special test of any meter, the parties shall cooperate in arranging for a special test to be made by City. The expense of the special test of the meter or meters shall be paid by the party requesting such test. If, on any test, the meter tested shall be found to be inaccurate by an amount exceeding two percent (2%), then any previous readings of such meter shall be corrected for any period of inaccurate measurement thereby which is definitely known or agreed upon. But no such correction shall extend back over a period beginning more than fifteen (15) days prior to the time when such inaccuracy was first made known by either party to the other. If, for any reason, the meter or meters are out of service so that the volume of water delivered hereunder cannot be ascertained or computed from meter readings thereof, the water delivered during the period such meter or meters are out of service shall be estimated and agreed upon by the parties hereto upon the basis of the best data available. City shall read the meter or meters on or about the last day of each month and shall determine from these readings the amount of water delivered to the Corporation. All such integrator readings shall be made available to the Corporation's representatives at all reasonable office hours. Any duplicate meters or recorders providing information for the Corporation shall be pur- chased, maintained, and serviced by and at the expense of the Corporation. -2- SECTION 4. Connection Fee - City will replace existing 3 inch compound meter with a 4 inch turbo meter when usage reaches 2,000,000 gallons per month and bill Corporation for cost of meter. The existing 3 inch meter will become property of City to reimburse for meter installation charges. SECTION 5. Price - The price to be charged for treated water sold by City to the Corporation shall be the regular established outside City limit rate (OCL) at the time of taking, for outside City limits customers of similar location and demand requirements, as determined by City. SECTION 6. Fixed Minimum Obligation - The Corporation is.not obli- gated to purchase any minimum amount of water in any billing month during the period of this contract but the Corporation shall pay City a monthly sum equal to the minimum charge for Outside City Limits customers based on master meter size in use at the date of billing regardless of whether or not any water is used. If the payment due City from the Corporation for water withdrawn during the billing period under consideration exceeds the minimum, then payment shall be made for the amount due, at price as prescribed under Section 5 hereof. If the payment which would be due on the basis of water withdrawn is less than the minimum, then the said minimum shall nevertheless be the amount due. This minimum amount is intended to cover the costs of meter readings, testing, billing, and other costs, which will continue whether or not any water is withdrawn by the Corporation. SECTION 7. Restrictions on Resale - Specific written approval by City will be required before the Corporation resells treated water to: (A) A municipality, political subdivision, public corporation, special legislative district or authority, including, but not limited to water supply districts or authorities, which desires to resell to others. (B) Any private organization, not now being served, desiring to resell to others. (C) Any lot in any subdivision platted prior to October 19, 1962, but not included in the initial water line construction program of Corporation. -3- • • (D) Any subdivision or lot in any subdivision, whether designed for single - family, multiple - family, mobile home, commercial, industrial, or other uses platted after October 19, 1962 until the plat of such subdivision has been approved by the governmental authority having jurisdiction and the developer of the subdivision has installed the subdivision improvements to the standards set forth by said authority. (E) Any commercial or industrial user not in operation on January 1, 1977. The Corporation agrees to bind all of its customers to the effect that the stipulation contained in this contract, not to resell water, shall be binding upon each of said customers, including the further stipulation that should there be a shortage in the basic supply of water which requires the restric- tion or curtailing of any customer of water within the City limits of Corpus Christi that coincide with such restrictions or limitations within Corpus Christi, the Corporation will limit and restrict all of its customers to the same extent. SECTION 8. Billing - All water taken in any one calendar month shall be billed between the 1st and 10th of the next succeeding calendar month and payment shall be made at the Utility Office of the Department of Public Utilities of City, in the City of Corpus Christi, Texas, within ten (10) days of the receipt of such bill. SECTION 9. Water Rights - It is mutually agreed and understood that this contract is subject to City obtaining any necessary permission from the Texas Water Rights Commission or other regulatory authority over such matters to sell water to the Corporation and the Corporation agrees to support any future City requests to the Texas Water Rights Commission or other regu- latory authority for said permission. Should it develop that the Corporation requires a permit to distribute the water sold to the Corporation by City hereunder, City agrees to support application by the Corporation to the Texas Water Rights Commission or other regulatory authority for such a permit. SECTION 10. City Right to Sell - City retains the right to sell treated water at points and to customers that are located either within or outside the boundaries of the Corporation. SECTION 11. Relative Priority of Industrial Users - It is under- stood by the parties hereto that industries outside of Corpus Christi and /or -4- the Lower Nueces River Water Supply District have a lower water use priority than industries inside Corpus Christi and /or said District. It is agreed that any and all industrial users both inside and outside of the Corporation which may be directly or indirectly supplied through the lines and distribu- tion system of the Corporation shall be subject to and bound by the same provisions regarding priority of users of water as are industrial users out- side of City and /or said District which are now or may become users of water directly from City and that all existing industrial customers of City have priority over existing and future industrial customers of the Corporation. SECTION 12. Storage and Pumping Requirements - The Corporation shall construct and maintain ground or overhead water storage facilities, or a combination of both, in total capacity equal to one day's supply based on a reasonable estimate of the highest daily use of the water customers of the Corporation. Pump intakes directly connected to the water lines of the Corporation or City's supply main are prohibited. The distribution piping construction and operation downstream from the City meter serving the Corpora- tion shall meet the requirements of the City Water Superintendent, the Texas State Department of Health Resources, the Farmers Home Administration of the United States Department of Agriculture, and other governmental agencies having jurisdiction thereover. The Corporation further agrees that City shall have the right to inspect said system at any and all times, and if the system or any portion thereof does not meet the standards approved by the City for the system, for an interim rural water supply, the Corporation shall cause said system or any portion thereof to be brought up to standards required by City. SECTION 13. Fixed Minimum Obligations - The Corporation is obligated and hereby agrees to purchase all of its water from City. SECTION 14. Option to Purchase - At any time during the life of this contract City, at its option, may purchase all or part of the water distribution system of the Corporation, including pipe, valves, connections, meters, pumps, storage tanks and property used in connection with the maintenance and operation of said water distribution facilities. If City elects to exercise its options aforesaid, the purchase price shall be the outstanding indebtedness of the Corporation and all other indebtedness at the time of purchase and other requirements of the Farmers Home Administra- tion of the United States Department of Agriculture for that part of the -5- system purchased. The purchase of a part of the system by City shall not impair the ability of the Corporation to serve the remainder of the system. Corporation customers receiving service at the time of purchase shall continue to receive service from City. SECTION 15. Term of Contract - When this contract shall have been approved by Corporation, the obligations of the parties hereto shall be binding and shall extend from the date of this agreement for a period of five (5) years subject to the termination provisions herein contained. SECTION 16. Right to Terminate Contract - If Corporation's need for water from City should cease for a period of at least 30 days, then in such event, Corporation may, by giving 30 days written notice to City by registered mail, cancel and terminate this contract in its entirety. If Corporation should elect to give and actually gives City said written notice, then after the expiration of 30 days from the date said notice is mailed to City as above provided, this contract and all of its provisions shall become null and void. SECTION 17. Force Majeure - If City should be prevented, wholly or in part, from fulfilling its obligations under this contract by reason of any act of God, unavoidable accident, acts of enemy, strikes, fires, floods, con- servation of water for those with superior and legal rights to such water, governmental restraint or regulation, or other causes of force majeure, or by reason of circumstances reasonably beyond its control, the obligations of City to deliver water to Corporation, as hereinabove provided, shall be tem- porarily suspended during continuation of such force majeure. No damage shall be recoverable by Corporation or its customers from City by reason of the temporary suspension of deliveries of water due to any of the causes above mentioned. SECTION 18. Assignability - This contract may be assigned by Cor- poration only with the written prior consent of the governing body of City, but if assigned, this contract will be binding upon parties hereto as well as their successors and assigns; provided, however, this contract may be assigned to the United States of America as security for a loan or loans made to the Corporation by the United States of America through the Farmers Home Adminis= tration, without such prior written consent although Corporation shall promptly notify City in writing of such assignment to the United States of America. -6- SECTION 19. Renewal of Contract - The parties recognize the fact that most of the facilities to be installed by Corporation should have a useful life in excess of the 5 -year term of this contract and that they will have limited value unless operated for taking water from the water supply of Corpus Christi. Accordingly, upon request of either party, an extension of the term of this Agreement will be negotiated between the parties and extended upon such terms as are agreed upon by the parties at that time, and from time to time for a total term during the term of Corporation's obligation to Farmers Home Administration, provided such request for negotiation is communicated in writing at least one (1) year prior to the termination of this Agreement. SECTION 20. Authority to Execute - In order to make this contract fully binding, each of the parties has been duly authorized hereunto and in the execution hereof by proper ordinance or resolution of the respective governing body and certified copies furnished by each party to the other party for attachment hereto. SECTION 21. Contract Subject to Approval of Farmers Home Adminis- tration - It is agreed that the original construction of the water supply distribution system by the Corporation was financed by a loan from (or a loan insured by) the United States of America, acting through the Farmers Home Administration of the United States Department of Agriculture, and proposed extensions of the system may be financed similarly, and the provisions hereof pertaining to the undertakings of the Corporation are conditioned upon the approval in writing, of the State Director of Texas, or the Farmers Home Administration. Similarly, any modification of the provisions of this contract shall be conditioned upon the prior approval, in writing, of the State Director of Texas, of the Farmers Home Administration. SECTION 22. All Agreements Contained in This Written Instrument - It is agreed by the parties hereto that this instrument contains in writing all of the agreements between the parties hereto and that nothing (except those things required by law) not incorporated herein or by reference shall be binding on the parties. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed in several counterparts, each copy of which so executed shall -7- be considered as an original, by their respective duly authorized representa- tives, this the day of 1977. ATTEST: City Secretary APPROVED: CITY OF CORPUS CHRISTI By City Manager DAY OF , 1977: J. BRUCE AYCOCK, CITY ATTORNEY By: Vs st —an t T ty Vt torney ATTEST: Secretary VIOLET WATER SUPPLY CORPORATION By President This contract is approved on behalf of the Farmers Home Administration this day of , 1977. State D rector of t e Farmers Home Administration, United States Department of Agriculture • CORPUS CHRISTI TEXAS 9-11-4 AY OF � 9_zz TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT 18 INTRODUCED AND THAT SUCH ORDINANCE OR RESOLUTION SMALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCED OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY YOR THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JASON LUBY a_.tl DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: JASON LUDY DR. BILL TIPTON EDUARDO DE ASEs RUTH GILL BOB GULLET GABE LOZANO, SR. EDWARD L. SAMPLE 13643 46