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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 Z ?F3� 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. �XN '� +�_ 5 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,