HomeMy WebLinkAbout13813 ORD - 06/29/1977i. O :jF :6 -29 -7' ; Ist —
AN .ORDIf1ANCE
AUTHORIZING THE CITY MANAGER TO APPROVE A CONTRACT
BETWEEN THE CITY OF TAFT AND RINCON WATER SUPPLY
CORPORATION TO ALLOW THE CITY OF TAFT TO SELL
TREATED WATER TO THE CORPORATION, ALL AS-MORE FULLY
SET FORTH IN THE CONTRACT, A COPY OF WHICH IS ATTACHED
HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A "; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of Corpus Christi and the San Patricio Municipal
Water Supply District entered into a contract on May 27, 1963, wherein the
City of Corpus Christi sells treated water to the District which in turn
resells water to customers within the District; and
WHEREAS, the Rincon Water Supply Corporation, a nonprofit water
supply corporation, has submitted a plan prepared by Urban Engineering
dated April of 1976, to provide an amount of treated water not to exceed
1,500,000 gallons per month through a water distribution system consisting
of 6 ", 4" and 3" mains to rural customers north and east of the City of
Taft, San Patricio County, Texas; and
WHEREAS, the City of Taft and the Rincon Water Supply Corporation
have entered into a forty -year water purchase contract, all as more fully
set forth in the contract dated March 8, 1977, a substantial copy of which
is attached hereto and made a part hereof, marked Exhibit "A "; and
WHEREAS, the San Patricio Municipal Water Supply District and
City of Taft have requested approval of the City of Corpus Christi for the
City of Taft - Rincon Water Supply Corporation contract; and
WHEREAS, Rincon Water Supply Corporatirn has agreed to all terms
of the City of Corpus Christi -Lower Nueces River Water Supply District
contract and the City of Corpus Christi -San Patricio Municipal Water Supply
District contract; and
WHEREAS, the City of Corpus Christi has reviewed the contract
between the City of Taft and Rincon Water Supply Corporation; and
WHEREAS, the City of Corpus Christi must approve all water
purchase contracts entered into by the City of Taft and the San Patricio
Municipal Water Supply District: MICROFILMED
JUL 071980
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That, as provided in Sectionl5 of the City of Corpus
Christi -San Patricio Municipal Water Supply District contract, approval of
the forty -year water purchase contract entered into by the City of Taft and
the Rincon Water Supply Corporation is hereby granted.
SECTION 2. The necessity to immediately approve the aforesaid
contract in order that there be an adequate water supply assured for the
rural customers of Taft, Texas, as more fully set forth hereinabove, creates
a public emergency and an imperative public necessity requiring the suspen-
sion 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 from
and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the 29th day
of June, 1977.
ATTEST:
�tyiecrtary MAY
APP OVED: E CITY OF CORPUS CHRISTI, TEXAS
DAY OF JUNE, 1977:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant Cit .orney
WATER PURCHASE CONTRACT
This contract for the sale and purchase of water is
entered into as of the day of , 1977 between
the City of Taft, San Patricio County, Texas, hereinafter
referred to as the "Seller" and the Rincon water Supply
Corporation, Rt. 2, Taft, San Patricio County, Texas, here-
inafter referred to as the "Purchaser" serving an area des-
cribed in Exhibit "A" attached hereto and made a part hereof,
wITNESSETH:
Whereas, the Purchaser is organized and established
under the provisions of the laws of the State of Texas, for
the purpose of constructing and operating a water supply
distribution system serving water users within the area
described in plans now on file in the office of the Purchaser
and to accomplish this purpose, the Purchaser will require
a supply of treated water, and
whereas, the Seller owns and operates a water supply
distribution system with a capacity currently capable of
serving the present customers of the Seller's system and the
estimated number of water users to be served by the said
Purchaser as the plans of the system now on file in the
office of the Purchaser, and
Whereas, by Ordinance No. enacted on the day
of , 1977, by the Seller, the sale of water to
the Purchaser in accordance with the provisions of said ord-
inance was approved, and the execution of this contract carrying
out the said sale of water by the City of Taft, and attested by
the Secretary, was duly authorized, and
Whereas, by resolution of the Board of Directors of
the Purchaser, enacted on the 10th.day of March, 1977, the
purchase of water from the Seller in accordance with the
terms set forth in the said resolution was approved, and the
execution of this contract by the President, and attested by
the Secretary was duly authorized;
Now, therefore, in consideration of the foregoing and
mutual agreements hereinafter set forth,
A. The Seller Agrees:
1. (Quality and Quantity) To furnish the Purchaser at
the point of delivery hereinafter specified, during the terms
of this contract or any renewal or extension thereof, potable
treated water meeting applicable purity standards of the State
Board of Health in such quantity as may be required by the Pur-
chaser not to exceed 1,500,000 gallons per month.
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2. (point of Delivery and Pressure) That water will be
furnished at a reasonably'constant pressure calculated at a
minimum of 50 psi from an existing six (6) inch main supply at
a point located near the base of'water tower in the City of
Taft, Texas.. If a greater pressure than that normally avail-
able at the point of delivery is required by the Purchaser, the
cost of providing such greater pressure shall be borne by the
Purchaser, Emergency failures of pressure or supply due to main
supply line breaks, power failure, flood, fire and use of water
to fight fire, earthquake or other catastrophe shall excuse the
Seller from this provision for such reasonable period of time as
may be necessary, to restore service,
3. (Metering Equipment) To furnish, install, operate, and
maintain at its own expense at point of delivery, the necessary
metering equipment, including a meter house or pit, and required
devices of standard type for properly measuring the quantity of
water delivered to the Purchaser and to calibrate such metering
equipment whenever requested by-the Purchaser but not more fre-
quently than once every twelve (12) months. A meter registering
not more than two percent (2%) above -or below the test result shall
be deemed to be accurate. The previous readings of any meter dis-
closed by test to be inaccurate shall be corrected for any period
of inaccurate measurement thereby which is definately known or
agreed upon. But no such correction shall extend back over a
period beginning more than 15 days prior to the time when such
inaccuracy was first made known by either party to the other. If
any meter fails to register for any period, the amount of water fur-
nished during such period shall be deemed to be the amount of water
delivered in the corresponding period immediately prior to the failure
unless Seller and Purchaser shall agree upon a different amount. The
metering equipment shall be read on or about the 1st day or each
month.and shall determine from these readings the amount of water
delivered tothe corporation,' An appropriate official of the Pur-
chaser at all reasonable times shall have access to the meter for the
purpose of verifying its readings.
4. ()Billing Procedure)
above address not later than the
itemized statement of the amount
during the preceding month'.
B. The Purchaser Agrees;
To furnish the Purchaser at the
10th day of each month, with an
of water furnished the purchaser
1. (Rates and Payment Date) To pay Seller, not later than
the 15th day of each month, for water delivered in accordance with
the following schedule of rates;
ONE DOLLAR AND N01100 per 1,000 gallons of water.
2, (Connection Fee) To pay as an agreed cost, a connection
fee to connect the Seller's system with the system of the purchaser,
the sum of $600.00 dollars which shall cover any and all costs of the
Seller for installation of the metering equipment and the pumping and
storage capacity presently owned by the seller. The maintenance
of the metering equipment "will be billed by Seller to Purchaser
monthly in the amount of actual costs incurred by Seller in main-
taining said metering equipment.
3. If Purchaser fails 'to pay any bill due to' the City on
or before its due date, the City of Taft may give notice of such
delinquency to the Purchaser in writing and if'al.l bills due and
unpaid are not paid within fifteen (15) days after the receipt of
such notice properly stamped and addressed to the Purchaser, in
the United States mails, then the City of Taft shall be authorized
to discontinue further water service until all bills due have been
paid in full.
C. I•t is further mutually agreed between the Seller and the
Purchaser as follows:
1. (Term of Contract) That this contract shall extend
for a term of 40 years from the-,date of the initial delivery of
any water as shown by the first bill submitted by the Seller to
the Purchaser and, thereafter may be renewed or extended for such
term, or terms, as may be agreed upon by the Seller and Purchaser.
2. (Delivery of Water) That 7 days prior to the estimated
date of completion of construction at the Purchaser's water supply
distribution system, the Purchaser will notify the Seller in writing
the date for the initial delivery of water.
3. (Water for Testing) When requested by the Purchaser the
Seller will make available to the contractor at the point of delivery,
or other point reasonably close thereto, water sufficient for testing,
flushing, and trench filling the system of the Purchaser during con-
struction, irrespective of whether the metering equipment has been in-
stalled at that time, at a charge of $1.00 per thousand gallons
shich shall be paid by the contractor or, on his failure to pay, by
the Purchaser.
4. (Failure to Deliver) That the Seller, will at a•11 times,
operate and maintain its system in an efficient manner and will take
such action as may be necessary to furnish the Purchaser with quan-
tities of water required by the Purchaser. Temporary or partial
failures to deliver water shall be remedies with all possible dispatch.
In the event of.an extended shortage of water, or the supply of water
available to the Seller is otherwise diminished over an extended
period of time, the supply of water to the Purchaser's consumers shall
be reduced or dimished in the same ratio or proportion as the supply
to Seller's consumers is reduced or diminished.
S. That the provisions of this contract pertaining to the
schedule of rates to be paid by the Purchaser for water delivered
are subject to modification at the end of every one (1) year period
with the exception of any demonstrable direct costs increase by San
Patricio Municipal Water District or Central Power F, Light to the
City of Taft which may be passed through immediately. Any increase
may include increased capitalization of the Seller's system on a
Fr
pro rata basis. Other provisions of this contract may be modified
or altered by mutual agreement.
6. (Regulatory Agencies) That this contract is subject
to such rules, regulations, or laws as may be applicable to similar
agreements in this State and the Seller and Purchaser will collabor-
at7e in obtaining such permits, certificates, or the like, as may be
required to comply herewith. This contract is further subject to
the approval of the San Patricio Municipal Water District and the
City of Corpus Christi.
7. (Miscellaneous) That the construction of the water
supply distribution system by the Purchaser is being financed by
a loan made or insured by, and /or a grant from, the United States
of America, acting through the Farmers Home Administration of the
United States Department of Agriculture, and the provisions hereof
pertaining to the undertakings of the Purchaser are conditioned
upon the approval, in writing, of the State Director of the
Farmers Home Administration.
.8. (Successor to the Purchaser) That in the event of any
occurence rendering the Purchaser incapable of performing under
this contract, any successor of the Purchaser, whether the result
of legal process, assignment, or otherwise, shall succeed to the
rights of the Purchaser hereunder.
9. In the event the Purchaser desires to resell treated
water to customers in any subdivision such subdivision plat must
be approved prior to the resale of said water by the City of Taft,
San Patricio Municipal Water District, the City of Corpus Christi, and
the Developer of the subdivision must have installed subdivision '
improvements to the'standards set forth in the San Patricio County
Subdivision Ordinance and the requirements of the San Patricio
Municipal Water District prior to said resale of water. No purchaser
of water from the Rincon Water Supply Corporation may re -sell said
water.
10. That the Purchaser shall comply with the terms and
provisions of the Water Purchase Contract between the City of
Corpus Christi and the San Patricio Municipal Water District
dated May 27, 1963.
a •,
In witness whereof, the parties hereto, acting under authority of
their respective governing bodies, have caused this contract to be
duly executed in counterparts, each of which shall con-
stitute an original.
Seller:
BY:
Attest: Title Ma or'
Secretary
Purchaser:
BY:
Title
This contract is approved on behalf of the Farmers Home Admini-
stration this day of 1977,
BY:
Title
a
Corpu Christi, exas
day of 197
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 suspension of the
Charter rule or requirement that no ordinance or resolution shall be passed
finally on the date it is introduced, and that such ordinance or resolution
shall be read at three meetings of the City Council; I, therefore, request
that you suspend said Charter rule or requirement and pass this ordinance
finally on the date it is introduced, or at the present meeting of the City
Council.
Respectfully,
MAYO
THE CITY OF CORPUS CHRISTI, TEXAS
The Charter rule was suspended by the ollowing vote:
Jason Luby
Eduardo de Ases
David Diaz
Ruth Gill
Bob Gulley
Gabe Lozano, Sr.
Edward L. Sample
The above ordinance was pasted by the following vote:
Jason .Luby
Eduardo de Ases
David Diaz
Ruth Gill
Bob Gulley
Gabe Lozano, Sr. —
Edward L. Sample _ —Wt _
1-3813,