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HomeMy WebLinkAbout15285 ORD - 12/26/1979jkh:12-26-79;lst AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A WATER SUPPLY CONTRACT WITH THE CHAPMAN RANCH WATER SUPPLY CORPORATION, ALL AS MORE PARTICULARLY SET FORTH IN THE CONTRACT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A"; 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 authorized to execute a water supply contract with the Chapman Ranch Water Supply Corporation, all as more particularly set forth in the contract, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A". SECTION 2. The necessity to authorize execution of the aforesaid water supply contract in order to provide for water needs in an area presently not served by an adequate supply creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordi- nance 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 that such emergency and necessity exist, 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 26th day of December, 1979. ATTEST: 'City -Secretary" MAYOR/ // THE CITY OF CORPUS..CHRISTI, TEXAS APPROVED: 26th DAY OF DECEMBER, 1979: J. BRUCE AYCOCK, CITY ATTORNEY 15285 MICROFILMED, .AUG 2 81980 WATER SUPPLY CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI AND CHAPMAN RANCH WATER SUPPLY CORPORATION THE STATE OF TEXAS COUNTY OF NUECES $ WHEREAS, the Chapman Ranch Water Supply Corporation (hereinafter "called "Corporation"), a corporation, had been organized and established under the provisions of Article 1434a, V.A.T.S., for the purpose of con- structing and operating, and from time to time making extensions of, a water supply distribution 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 primarily outside, but some of the area is within the five -mile extraterritorial jurisdiction of the City of Corpus Christi; and WHEREAS, it is the specific intent and primary purpose of this contract to provide a water source to supply the domestic needs of the agri- cultural community within the service area; and WHEREAS, to accomplish this purpose the Corporation will require a supply of treated water from the 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 obliga- tions of the existing contracts of City, and provide the anticipated require- ments of the Corporation; and WHEREAS, City agrees to deliver City water td the waterlines of Corporation in accordance with rules and regulations promulgated and authorized by Sections 55-111 and 55-112, as amended, of the Code of Ordinances, City of Corpus Christi: 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: X"' SECTION 1. Quality and Quantity. City agrees to sell the Corpora- tion 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 butlimited to three (3) million gallons per month. SECTION 2. Point of Delivery. Delivery shall be made at the outlet side of the City meter located at SH 286 north of Oso Creek. The Corporation will construct and convey to City an 8" main, meeting the require- ments of the City's water distribution system standards, from the City's existing distribution system located near the intersection of Chapman Ranch Road and Saratoga Road, along SH 286 to Oso Creek. Minimal pressure will be at or near 42 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 semiannually by -City, and City shall notify the Corporation in writing ten (10) days in advance of all semiannual checks and tests in order that the Corporation may have a . representative present as a witness. Semiannual 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 tested 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. 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 -2- 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 avail- able. 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 purchased, maintained, and serviced by and at the expense of the Corporation. SECTION 4. Connection Fee. City will construct the tap and install the meter or meters upon payment of the full cost of the tap and metering equipment and upon application for service by a representative of the Corporation. 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 obligated 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: -3- 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. This restriction does not limit Corporation's right to sell water to school dis- tricts which do not resell water. B. Any private organization 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 con- struction program of Corporation. 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 improve- ments to the standards set forth by said authority. If no governmental entity has such jurisdiction, approval of such plat by the City must be made prior to City granting written approval to Corporation for resale of treated water to such subdivision or lot. E. Any commercial or industrial user not in operation on January 1, 1977. F. The change of ownership of property by virtue of a probated will or descent and distribution or by deed to an owner's lawful descendants shall not create a "lot" or be a "sub- division" as those terms are used herein so as to require the approval of the City for the Corporation, if it so chooses, to sell water to the new owner or owners. Pro- vided, however, that prior to providing water service to any such new owner or owners, Corporation shall certify to the City the identity of such new owner or owners and whether such change in ownership was affected by probate proceedings, descent and distribution or by deed from a prior owner to a lawful descendant of such prior owner. 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 restriction or curtailing of any customer of water within the City limits of Corpus Christi that, coinciding with such restrictions or limitations with Corpus Christi, the Corporation will limit and restrict all of its customers to the same extent. SECTION 8. Other Uses Prohibited. From and after the effective date of this agreement, Corporation shall not permit under any circumstances, the sale, resale, or use of treated water to or by any new commercial user or customer, or any multifamily user or customer or any nonagricultural user or customer. This prohibition shall apply'to any use of treated water by any customer which is not for domestic, single-family or agricultural uses, -4- except for those commercial users in existence on the date of this agreement. Violation by Corporation or any of its customers of this provision shall be grounds for termination of water supply service to the distribution system or to individual customers as hereinafter provided. SECTION 9. Customers Within Five Mile Extraterritorial Jurisdiction of City. Corporation agrees to bind all of its customers within the five -mile 1 extraterritorial jurisdiction of the City to the standard water service contract in accordance with Section 55-111, City Code of Ordinances (non-agricultural use 1 where partly or wholly beyond the City limits) or in accordance with Section 1 55-112 (agricultural use covenant). As a prerequisite for receiving water I service at each individual customer tap, each customer or property owner within the five -mile extraterritorial jurisdiction shall properly execute and file with the Director of Utilities, City of Corpus Christi, a standard form contract for providing water to property beyond the City limits. As the five - mile extraterritorial jurisdiction is extended periodically, each additional customer or owner coming within such extended extraterritorial jurisdiction shall be bound by the Corporation to the execution of such contract as pro- vided herein as a condition for continued water service. Corporation shall designate those customers on the list to be pro- f vided under paragraph 14 who are located within the five -mile extraterritorial jurisdiction and who are to execute contracts under Section 55-111 and those who I are to execute contracts under Section 55-112, City Code of Ordinances. Corpor- ation shall also provide the names and locations of existing or future customers as they may become situated within the five -mile extraterritorial jurisdiction. SECTION 10. Billing. All water taken in any one calendar month shall be billed between the first and tenth 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 1 (10) days of the receipt of such bill. 1 SECTION 11. Water Rights. It is mutually agreed and understood 1 that this contract is subject to City obtaining any necessary permission from the Texas Water 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 Commission or other regulatory authority -5- 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 Commission or other regulatory authority for such a permit. SECTION 12. 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 service area of the Corporation. SECTION 13. 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 Corporation shall meet the requirements of the City Water Superintendent, the Texas State Department of Health, the Farmers Home Administration of the United States Department of Agriculture, and other governmental agencies having jurisdiction thereovr. 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 14. Tap Charges and Responsibility. The Corporation shall furnish City with a list of customers and the location of all taps at the time the initial construction is completed and the system put into operation. Following initial construction all taps onto the system shall be made by the - City's Water Division. The price to be charged for tap shall be the regular established charge for taps onto the City's distribution system for customers of similar location as determined by City. Upon completion of the initial phase of construction and commencement of operation of the system, Corporation shall additionally furnish the City a list of potential future customers and -6- users which may reasonably be expected to exist within the service area. At such time as the system has been completed and is prepared to receive water from City, Corporation shall certify in writing that Corporation, the distribution system and all initial customers are in complete and full com- pliance with all requirements, terms and conditions of this agreement. SECTION 15. Water Supply Source. The Corporation is obligated and hereby agrees to purchase all of its water from City. SECTION 16. Acquisition by City. It is agreed that at some time during the life of this contract the City may determine that it is necessary and desirable, for the proper management, expansion, and operation of its water supply and distribution system, to provide service in some or all of the areas served by the Corporation, and in pursuance thereof to acquire all or part of the Corporation's facilities. In such event, upon written request by the City, the Corporation agrees to enter into negotiations for the sale or transfer to the City of all or part of its system; provided, that the consideration for the sale shall be fair and reasonable, and the terms of the sale shall be approved by the State regulatory agencies having jurisdiction, and by the Farmers Home Administration of the United States of America as its indebtedness regula- tions may require, and such sale or transfer shall not impair the ability of the Corporation to serve its remaining customers, and shall provide for the continuance of service to the customers in the acquired area. SECTION 1:7.""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 18. 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 certified 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. -7- SECTION 19. Enforcement of Contract. Upon a determination by the Director of the Department of Public Utilities of the City that Corporation is in violation, or that there exists a violation by any of its customers, of the terms and restrictions relating to the resale or use of water that is set out in Sections 7 and 8 hereof, the City is hereby authorized and Corpora- tion expressly agrees that the City may terminate service to the distribution system of Corporation or to individual customers. Provided, however, that in the event Corporation is deemed to be in violation hereof, City shall serve a 10 -day written notice by certified mail, upon Corporation of City's intent to terminate said service to the distribution system. From the date of the expiration of the l0 -day notice period, Corporation shall have 10 additional days to provide City with written certification that said violation has been corrected and that Corporation is in full compliance with all terms and conditions hereof. In the event Corporation fails or refuses to comply with the terms of such notice within 20 days from receipt of such notice, City shall terminate said water supply service and declare this contract null and void. In the event of individual customer or user violations City is hereby authorized to summarily terminate service to the customer. SECTION 20. 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, conservation 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 temporarily 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 21. Assignability. This contract may be assigned by Corporation only with the written prior consent of the governing body of City, but if assigned, this contract will be binding upon parties hereto as• -8- • 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 Administration, without such prior written consent although Corporation shall promptly notify City in writing of such assignment to the United States of America. SECTION 22. 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 five-year term of this contract and that the facilities will have limited value unless operated for the purpose of 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 23. 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 24. Contract Subject to Approval of Farmers Home. Administration. 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 extension 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, of the Farmers Home Administration. Similarly, any modification of the pro- visions of this contract shall be conditioned upon the prior approval, in writing, of the State Director of Texas, of the Farmers Home Administration. -9- Through extensions of City water lines of three inch to one inch in size presently existing in portions of the water. distribution area., -1. various customers and residents are provided with a water supply through such water lines by the City. However, such lines are old, corroded and are in generally poor condition and the City disclaims any responsibility or obliga- tion to maintain and continue such water service through said existing lines. The Corporation agrees to offer service to these users when service is requested, on the same terms and conditions as it is then serving its new customers, provided the capacity of its lines reasonably permits same, a preliminary engineering report is favorable, construction funds on acceptable terms are available, and the approval of the Farmers Home Administration and others whose approval is required, is received. SECTION 25. 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 be considered as an original, by their respective duly authorized representa- tives, this the day of , 19 ATTEST: City Secretary APPRO EED: 2(0 DAY 0 1977 : CITY OF CORPUS CHRISTI By J. BRUCE AYCOCK, CITY ATTORNEY �Y JF,/ Uy"'t,e City Att.(ney Director of Finance ATTEST: R. Marvin Townsend, City Manager CHAPMAN RANCH WATER SUPPLY CORPORATION By Secretary President -10- This contract is approved on behalf of the Farmers Home Administra- tion this day of , 19 . State Director of the Farmers Home Administration, United States Department of Agriculture Corpus Christi, xas 2-4 day of o�/ 1979 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. The Charter rule Luther Jones • Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky Respectfully, A MAYOR " THE CITY OF CORPUS CHRISTI, TEXAS was suspended by the following vote: The above ordinance was passed Luther Jones Edward L. Sample Dr. Jack Best David Diaz Jack K. Dumphy Betty N. Turner Cliff Zarsky by the following vote: 15285