HomeMy WebLinkAbout14111 ORD - 01/04/1978jkh:12- 21 -77; 1st •
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO ENTER INTO A WATER
SALES AGREEMENT WITH THE NUECES COUNTY WATER CONTROL
AND IMPROVEMENT DISTRICT NO. 4, ALL AS MORE FULLY
SET FORTH IN THE AGREEMENT, A SUBSTANTIAL COPY OF
WHICH 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 enter into a water sales agreement with the Nueces County Water Control
and Improvement District No. 4, all as more fully set forth in the agreement,
a substantial copy of which is attached hereto, marked Exhibit "A ", and made
a part hereof.
MICROFILMED
JUL 0 7 1990
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A G R E E M E N T
THE STATE OF TEXAS §
COUNTY OF NUECES §
This Agreement made this the day of ,
1977, by and between the City of Corpus Christi, Nueces County,
Texas, a municipality organized pursuant to the laws of the State
Df Texas, hereinafter referred to as the "City ", and the Nueces
County Water Control and Improvement District No. 4, a water
control and improvement district and political subdivision of the
-- ,
State of Texas, hereinafter referred to as the "District ";
W I T N E S S E T H:
WHEREAS, the City, by virtue of a contract executed
gust 10, 1955, between the Lower Nueces.River Water Supply
strict, is the sole purchaser of untreated water from the Lower
eces River Water Supply District and treats said water for dis-
ibution to customers of City; and,
WHEREAS, the District has determined that it desires to
tain treated water from the City to serve its customers lying
thin the established boundaries of the District; and,
WHEREAS, the District is in the process of constructing.
water trunk mains and related facilities to transport a fresh
supply of potable water from the City to the existing facilities of
the District on Mustang Island; and,
WHEREAS, the City has determined that at this time suf-
ficient water is available to serve the existing customers of City,
meet the obligations of existing contracts of City, and provide the
anticipated requirements of the District; and,
WHEREAS, City desires to sell water to the District for
the benefit of City and the District.
NOW, THEREFORE, for and in consideration of the premises
and the sum of Ten and no /100 ($10.00) Dollars in hand paid to City
by the District, the benefits arising to both City and the District
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through the sale of fresh, potable water to the District, and the
mutual covenants and agreements of the parties herein contained,
the parties hereby agree as follows:
1. Construction of Facilities: District shall construct or
cause to be constructed at no expense to City, a water main from
the existing facilities of City.on Park Road 22 North along Mustang
Island to the existing water main of the District and shall con-
struct or cause to be constructed the necessary pumping and storage
facilities for said main, all in accordance with plans and specifi-
cations prepared by the District -and acceptable to City.
2. Right -of -Way and Easements:. The District shall be
responsible for the acquisition of all easements, rights -of -way and
land necessary for the construction, operation and maintenance of
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the facilities to be built by the District.
3. P6rmits: The District shall be responsible for obtaining
and maintaining. any permits necessary for the construction, opera-
tion and maintenance of the contemplated water main and related
facilities of .the District.
4. Quantity: City agrees to sell, subject to the conditions
hereinafter set forth, a fresh supply of potable water to the
District at the delivery point hereinafter set forth, and District
agrees to purchase and take at said delivery point water at the
then published City water rate and upon terms and conditions appli-
cable to City water sales as amended from time to time by the City.,
5. Delivery Point: The delivery point shall be at the North
and of the Mustang Island State Park, Mustang Island, Nueces
County, Texas, at a point agreed on between the parties hereto,
such point being the location of the storage and pumping facilities
constructed by the District in accordance with plans and specifica -,
tions prepared by the District and acceptable to City. Title to
the water shall pass to District when it passes through the meter
at or near the point of delivery.
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6. Maintenance and Operation of Facilities: The water main
and related improvements constructed by District shall be main-
tained, operated and repaired as follows:
(a) The District shall maintain, operate and repair
that portion of the water main and related facilities constructed
by it beginning at the delivery point (Northernmost boundary of
the Mustand Island State Park) and running North along Park Road
53 to the existing water main of the District.
(b). The City shall maintain, operate and repair that
portion of the water main beginning at the delivery point (North-
ernmost boundary of the Mustang .Island State Park) and running
South along Park Road 53 to its intersection with Park Road 22.
District shall, in conjunction with its maintenance and operation
of the water main and related facilities North of the delivery
point, furnish a fresh supply of potable water to its customers
and the ownbrs of lands lying within the District North of the
delivery point. City shall, in conjunction with its maintenance
and operation of the water main South of the delivery point,
furnish a fresh supply of potable water to District using the
water main from Park Road 22 to the delivery point. With regard
to that portion of the line maintained and operated by City,
District shall transfer and convey the same to City, and further
District shall assign that portion of the permits, easements and
rights -of -way necessary for the operation and maintenance of the
line from the intersection of Park Roads 22 and 53, North along
Park Road 53, to the Northernmost boundary of the Mustang Island
State Park.
(c) City may provide a fresh supply of potable water
out of said water main at the then published City water rates, and
upon the terms and conditions applicable to City water sales, as
amended from time to time by City to those lands lying South of
the delivery point which participated with the District in the
construction of that portion of the water main South of the de-
livery point and, in particular, City may provide a fresh supply
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of potable water to the land South of the delivery point known as
the Mustang Island State Park.
Except as provided hereinabove, City shall not, for a
period of three (3) years from the date of this Agreement,' provide
water out'of said water main to lands South of the .delivery. point
without first receiving payment from the owner or owners of said
lands equal to the sum of $1,500.00 per acre escalated to cover
inflation at a rate as published by Associated General Contractors.
After said three (3) year period, City may provide water out of
said water'main to lands lying South of the delivery point upon
receipt of payment from the owner or owners of said lands equal to
the sum of Nine Hundred ($900.00) Dollars per acre escalated to
cover inflation at a rate as published by Associated General
Contractors. Said sums shall be deposited in the escrow account
established for the source charge contemplated in Paragraph 11
hereinbelow� and shall reduce the District's obligation to City
contemplated therein. City's providing of water out of the water
main to lands lying South of the delivery point shall not operate.
to reduce City's obligation to supply to the District the quantity
and quality of water contemplated under this Agreement.
District shall not provide a fresh supply of potable
water out of said water main to any lands lying South of the de-
.very point. .
(d) City and District agree that they will not provide
,ter to developers of lands on Mustang Island withour first
squiring said developers to meet water, sewer and development
andards established and agreed to by the respective parties
7. Quality: It is understood and agreed that City shall
reasonable diligence to prevent the pollution or contamination
any of the water supply referred to herein from any cause, and
ther that such water shall be treated water of such quality as
meet the 'requirements of the Texas Department of Health at the
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int of delivery.
8. Measurement: The water delivered under this contract
all be measured by a suitable water meter or meters to be fur -
shed and installed by District and _kept in repair and maintained
City at or near the point of delivery of said water. City shall
ve the right to specify the type of meter or meters to be used
d to specify the installation design or the meter or meters.
ecks as to the accuracy of the meter or meters shall be made
mi- annually by City, and City shall notify District in writing
n (10) days in advance of all semi- annual checks and tests in
der that District may have a representative present as a witpess.
mi- annual tests as to the accuracy of the meter or meters shall
at City's expense. If either, City or District, at any time,
all notify the other that it desires a special test of any meter,
e parties shall cooperate in arranging for a special test to be
de by City.. The expense of the-special test of the meter-or
ters shall be paid by the party requesting such test. If, on any
st, the meter tested shall be found to be inaccurate by an amount
ceeding two (2s) percent, then any previous readings of such
ter or meters shall be corrected for a period of inaccurate
asurement thereby which is definitely known or agreed upon; that
such correction shall extend back over a period beginning more
an fifteen (15) days prior to the time when such inaccuracy was
rst made known by either party to the other. If, for any reason,
e meter or meters are out of service so that the volume of water
livered hereunder cannot be ascertained or computed from meter
adings thereof, the water delivered during the period such meter
meters are out of service shall be estimated and.agreed upon by
e 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 District. City shall service the recording and
integrating - instruments of the meter or meters and shall retain the
charts and integrated readings as a part of the City Water Records.
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All such charts and integrated readings shall be made available tc
District's representatives at all reasonable office hours. Any
duplicate recorders providing charts for District shall be pur-
chased, maintained, and serviced by and at the expense of District
9. Payments: City shall monthly submit a statement to
District indicating the quantity of water sold to District during
the preceding meter reading cycle. District shall render payments
within fifteen (15) days of receipt of said statement. Any cleri-
cal error or minor question regarding said statement will not be
sufficient grounds to delay payment by District to City. Any such
questions shall be properly settled under the terms of this con-
tract and by the agreement of both parties hereto. Any adjustment
in the amount paid as a result of such agreement shall be added to
or deducted from the following month's bill. (Failure to pay the
monthly billing within thirty [30] days after such billing date
shall authorize City to discontinue furnishing water to District.
In the event it becomes necessary to collect such charges through
any court procedure, City shall be entitled to also recover a
reasonable attorney's fee'. In the event it becomes necessary for
City to stop the selling of water, due to District's failure to pa
its water bills, City may require the payment in advance of the
monthly water bill based on the previous bill plus any adjustments
as a condition to the resumption of furnishing water to District).
10. Indemnity: District will indemnify City from any lia-
bility which might accrue because of facilities constructed by
District and City will indemnify District from any liability which
might accrue as a result of City providing water to lands or cus-
tomers South of the delivery point. This provision is for the
protection of city-and the District and is not for the benefit of
third parties.
11. Source Charge: It is agreed and understood by the
parties that in the future an additional water line will need to be
constructed from the treatment plant of City to Mustang Island in
order to provide a fresh supply of potable water to meet the needs
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of lands and /or users on Mustang Island in the future. District
agrees to pay its prorata share of this line in a manner to be
determined by the City and District and as established on Exhibit
"A" attached hereto and incorporated herein. On lands lying South
of the delivery point, City shall establish and collect from.the
owners thereof the owners' prorata share of the cost of this line.
12. Restrictions on Resale: It is. distinctly understood and
agreed that without prior written consent of City, District shall
not deliver or sell water obtained under this contract to any other !
persons, firms or corporations except such persons, firms or corp-
orations which are bona fide customers of the water distribution
system of the District and who do not resell such water, and
District 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 restriction or curtailing of any consumer
of water within the City Limits of City that coincident with such
restriction or limitation within City, District will limit and
restrict all of its customers to the same extent. This section
expressly forbids the resale of water by a customer of District to
any consumer without the written consent to such resale by City.
13. Right to Terminate Contract: If District's need for
water from City should cease for a period of at least thirty (30)
days, then, in such event, District may, by giving thirty (30) days
written notice to City by registered mail, cancel and terminate
this contract in its entirety. I£ District should elect to give
and actually ,gives City said written notice, then after the expira-
tion of thirty (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.
14. Force Majeure: If City should be prevented, wholly or in
part, from fulfilling is obligations under this contract by reason
if any act of God, unavoidable accident, acts of enemy, strikes,
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fires, floods, conservation of water for those With superior and
legal rights to such water, governmental restraint or regulation,
Dr other causes of force majeure, or by reason of circumstances
reasonably beyond its control, then the obligations of City to
deliver water to District, as hereinabove provided, shall be tempo-
rarily suspended during contuation of such force majeure. No
damage shall be recoverable by'District from City by reason of the
temporary suspension of deliveries of water due to any of the
causes above mentioned., If City's obligation should be affected by
any such causes, City shall promptly notify District in writing,
giving full particulars of such force majeure as soon as possible
after the occurrence of the cause or causes relied upon.
15. Assignability: Except for a transfer to another govern-
mental agency, this contract may be assigned by District only with
the written prior consent of the governing body of City, but if
assigned, this contract shall be binding upon parties hereto as
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well as their successors and assigns.
16. Authority to Execute: In order to make this contract
fully binding, each of the parties has.been duly authorized here-
unto 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.
17. All Agreements Contained in This Written Instrument: It
i5 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 unless
agreed to in writing by the parties and attached hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed in several counterparts, each copy of
which so executed shall be considered as an original, by the
respective duly authorized representatives, this the day of
1977.
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CITY OF CORPUS CHRISTI
By
R. Marvin Townsend, City Manager
ATTEST:
City Secretary
APPROVED AS TO FORM:
Secretary
APPROVED AS TO FORM:
District Attorney
--a - ,
�i irector of F ante
NUECES COUNTY WATER CONTROL AND
IMPROVEMENT DISTRICT NO. 4
By --
George S. Hawn, President
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EXHIBIT "A"
WATER AGREEMENT
STATE OF TEXAS §
OF NUECES §
WHEREAS, the Nueces County Water Control and Improvement
District No. 4, a water control and improvement district and poli-
tical subdivision of the State of Texas, hereinafter referred to
as the "District ", is in the process of constructing water trunk
mains and related facilities to transport a fresh supply of potable;
water from"the City of Corpus Christi, Nueces County, Texas, a
municipality organized pursuant to the laws of the State of Texas,
hereinafter referred to as the "City ", to the existing facilities
of the District on Mustang Island; and,
WHEREAS, by instrument dated the day of ,
1977, District entered into an agreement with City, providing for
a supply of fresh water to and for the benefit of District; and,
WHEREAS, the parties to said agreement agree and contem-
plate that in the future an additional, water line will need to be
constructed from the treatment plant of City to Mustang Island in
order to provide a fresh supply of potable water to meet the needs
of lands and /or users on Mustang Island in the future; and,
WHEREAS, it is the purpose of this Agreement to arrange
for the timely installation of such additional facilities to
provide a fresh supply of potable water to meet the needs of the
lands and /or users on Mustang Island in the future.
NOW, THEREFORE, for and in consideration of the covenant
and undertakings hereinafter expressed, District and City agree as
follows:
1. In order to defray the cost to City of constructing and
installing water transmission, pumping, storage and other facili-
ties necessary to furnish an adequate supply of fresh, potable
water to meet the needs, of lands and /or users on Mustang Island in
the future, - District shall pay to City the total sum of One Million
Four Hundred Seven Thousand Five Hundred Ninety -Nine Dollars
(1)
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($1,407,599.00), partial payments against which shall be computed
and payable in increments as follows:
(a) The sum of Two Hundred Ninety -Four Thousand Dollars
($294,000.00) received by City from the Texas Parks and Wildlife
Department shall be maintained by City in a separate fund or
account specifically designated and restricted to expenditures by
the City solely for the purpose of fulfilling its obligations
under the terms of this Agreement. Said sum shall go to and
reduce the District's obligations set forth hereinabove.
'(b) With respect to all water sold by District to its
customers, District shall pay to City an amount equal to Three
Cents ($.03) per thousand (1,000) gallons of water sold. Such sum
shall be.payable over a period of time prescribed in Paragraph 2
below and shall be in addition to the published rate of the City
of Corpus Christi.
(c) At such time as City provides a fresh supply of
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potable water to the owner or owners of lands lying South of the
Northernmost boundary of the Mustang Island State Park and running
South along Park Road 53.to its intersection with Park Road 22,
City shall collect the sums required in Paragraph 11 of that
certain agreement between District and City dated the day
of , 1977, and deposit the same in the account
mentioned in subparagraph (a) above, which amount shall further
reduce the District's obligations to the City set forth herein -
above.
(d) At such time as the several sums paid by District
to City under the terms of subparagraph 1(a), subparagraph 1(b),
and subparagraph 1(c) above, total One Million Four Hundred Seven
Thousand Five Hundred Ninety -Nine Dollars ($1,407,599.00), then
District shall have no further obligation to pay City any sum
under the terms of this Paragraph 1.
2. Each of the sums to be paid by District to City under
the terms of Paragraph 1(b) above, shall be payable in monthly
installments based on the amount of water sold by the District to
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its customers, which shall be paid to City on or before thirty
(30) days after the end of each month.
3. All funds paid by District to the City under the terms
of this Agreement shall be maintained by the City in a separate
fund or account which shall be specifically designated and re-
stricted to expenditures by the City solely for the purpose of
fulfilling its obligations under the terms of this Agreement. In
the event City deposits said sums in an interest bearing account,
it is understood by the parties hereto that all sums collected by
City as interest shall not reduce the District's obligations under
Paragraph 1. ,
4. City agrees that as long as District is not in default
under the terms of this Agreement, City will deliver through water
mains installed by the District, or other lines that City may, at
its option, install, a fresh supply of potable water adequate to
serve the needs of the.District. Such water shall be sold by City
to District at the then published City water rates in accordance
with the terms and conditions applicable to City water sales as
set forth in the general ordinances of the City, as amended from
time to time.
5. This Agreement shall be binding upon the.parties hereto,
their respective successors and assigns.
6. 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 govern-
ing body, and certified copies funished by each party to the other
party for attachment hereto.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed in several counterparts, each copy of
which so executed shall be considered as an original, by the
tive duly authorized representatives, this the day of
1977.
(3)
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ATTEST:
City Secretary
APPROVED AS TO FORM:
n.
ty Attorney
1
ector of Fi ce
ATTEST:
Secretary
APPROVED AS TO FORM:
District Attorney.
:ITY OF CORPUS CHRISTI
ly
R. Marvin Townsend,, City Manager
]UECES COUNTY WATER CONTROL AND
IMPROVEMENT DISTRICT NO. 4
Sy
George S. Hawn, President,
(4)
That the foregoing ordinance was read for first time and passed to its
second reading on this the�i day of�. 19 -V by the
following vote:
Jason Luby
Eduardo de Ases
David Diaz
Ruth Gill
Bob Gulley
Gabe Lozano, Sr.
Edward L. Sample
That the foregoing ordinance was read fo the second time and passed to its
third reading on this the3&W day of�, 19 rte_, by the
following vote:
Jason Luby
Eduardo de Ases
David Diaz
Ruth Gill x�
Bob Gulley
Gabe Lozano, Sr.
Edward L. Sample
That the fore ing ordinan a was read for th third time and passed finally
on this the day of 19�, by the following vote:
Jason Lu y
Eduardo de Ases
David Diaz
Ruth Gill
Bob Gulley
Gabe Lozano, Sr.
Edward L. Sample
PASSED AND APPROVED, this thej ,,�� day of 19�-
ATTEST:
City Secretary MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
AP OF 19 This ordinance is in effect a
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force with or without the
J. BRUCE AYCOCK, CITY ATTORNEY signature of the Mayor, in
accordance with Article II
Section 6 of the City Charter
41 Aka
By
Assistant City Attorney
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City of Corpus Christi
Legal Department