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Home My WebLink About028478 RES - 02/09/2010Page 1 of 4 RESOLUTION AUTHORIZING BEEVILLE WATER SUPPLY DISTRICT TO SELL WHOLESALE WATER TO BLUEBERRY HILLS WATER WORKS, LLC, SUBJECT TO CERTAIN CONDITIONS WHEREAS, the City of Corpus Christi ("City") has a water supply agreement with the Beeville Water Supply District ("District"), which was effective on March 4, 1981, and amended by an addendum that was effective on May 17, 1988; WHEREAS, the water supply agreement requires the City Council's approval of the sale of water to any private organization or person desiring to resell to others than a governmental unit or a nonprofit water supply corporation; WHEREAS, the water supply in a colonia known as the Blueberry Hills is contaminated by arsenic; WHEREAS, the City of Beeville and Bee County have obtained a grant to resolve the arsenic problem by building infrastructure to supply the colonia with water the District; and WHEREAS, the City Council recognizes the need to assist with this public health concern; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Subject to the conditions in Sections 2, 3, and 4, the District is authorized to sell wholesale water to Blueberry Hills Water Works, LLC ("Blueberry Hills"). SECTION 2. The District must agree to bind Blueberry Hills to honor all conditions of the District's agreement with the City and any future contacts or amendments to any water supply agreements with the City. SECTION 3 Water Conservation and Drought Contingency Measures. a. The District and Blueberry Hills must acknowledge the terms of the Texas Natural Resource Conservation Commission (now TCEQ) Agreed Order of April 28, 1995, which amended the operational procedures relating to Special Condition 5.B, Certificate of Adjudication No. 21-3214, and Corpus Christi's responsibilities under both the Agreed Order and the Certificate of Adjudication. The District and Blueberry Hills must recognize that the Agreed Order and Certificate of Adjudication may be amended in the future. The agreed order requires Corpus Christi to provide in any future contracts or any amendments, modifications, or changes to existing contracts the condition that all wholesale customers and any subsequent wholesale customers must develop and have in effect a water conservation and drought management plan consistent with Corpus Christi plan as required by the TCEQ rule. Therefore, the District and Blueberry Hills must agree that during the term of this contract, it shall have in effect a water Blueberry Hills Resolution 02022010 028478 INDEXED Page 2 of 4 conservation and drought management plan consistent with Corpus Christi's plan. The District and Blueberry Hills also must agree to bind future customers and its existing customers upon contract renewals to develop and have in effect a water conservation and drought management plan consistent with Corpus Christi's plan. b. The District and Blueberry Hills must acknowledge that under Section 11.039(b) of the Texas Water Code and Corpus Christi's water conservation plan, which was submitted to the TCEQ for approval, that in the event of a water shortage due drought, accident, or other cause Corpus Christi is authorized to reduce the distribution of water to its wholesale water customers on a pro rata basis. Section 11.039(b)(2) specifically authorizes Corpus Christi to reduce a customer's pro rata water share if customer does not operate its system in compliance with an approved water conservation plan. The District's or Blueberry Hill's failure to enforce the most stringent requirement of the District's or Blueberry Hill's TCEQ approved water conservation plan, Corpus Christi's TCEQ approved water conservation plan, or this Section 12 of this contract will be grounds to reduce the District's pro -rata water share. c. If Corpus Christi implements any measures under it Water Conservation and Drought Contingency Plan, adopted under Section 55-156 of the Code of Ordinances for Corpus Christi of Corpus Christi, the District and Blueberry Hills shall impose similar restrictions, surcharges, or rationing measures on its customers at the earliest opportunity to do so upon notice of the implementation of any restrictions, surcharges, or rationing by Corpus Christi. d. Any contract for the resale of water furnished by the District shall contain a similar condition similar to subsection c of this Section 4 of this resolution. e. If for whatever reason the District or Blueberry Hills is unable or unwilling to impose the required restrictions, surcharges, or rationing measures within the required time period, the District or Blueberry Hills shall reduce its consumption of water from the system as follows: (1) If the levels in the Lake Corpus Christi/Choke Canyon Reservoir system are below 40% of the combined capacity, deliveries from the system shall be reduced by 10% from the average deliveries for the same month of the year over the previous three years. (2) If the levels in the Lake Corpus Christi/Choke Canyon Reservoir system are below 30% of the combined capacity, deliveries from the system shall be reduced by 20% from the average deliveries for the same month of the year over the previous three years. (3) If the levels in the Lake Corpus Christi/Choke Canyon Reservoir system are below 20% of the combined capacity, deliveries from the system shall be reduced by 30% from the average deliveries for the same month of the year over the previous three years. Blueberry Hills Resolution 02022010 Page 3 of 4 (4) If the levels in the Lake Corpus Christi/Choke Canyon Reservoir system are below 10% of the combined capacity, deliveries from the system shall be reduced by 60% from the average deliveries for the same month of the year over the previous three years. f. If for whatever reason the District, or its customer, is unable or unwilling to impose the required restrictions, surcharges, or rationing measures within the required time period, but relies upon other sources of water for all or a portion of its water requirements, the District or Blueberry Hills must agree not to request an increase in the amount of water being diverted from the system should the District's or Blueberry Hill's other source(s) of water fail to continue to yield the amounts of water anticipated. g. To the extent that the TCEQ or other regulatory agency requires rationing of water in a manner stricter than that imposed by Corpus Christi, the District and Blueberry Hills must agree to comply with the stricter method of rationing water. h. The District and Blueberry Hills must agree to furnish a copy of any ordinances, orders, or rules adopted by it or its customers that is adopted to implement the required restrictions, surcharges, or rationing measures within the District or its customers' jurisdiction within thirty days of notice that Corpus Christi has imposed restrictions, surcharges, or rationing measures. If for whatever reason the District or Blueberry Hills is unable or unwilling to impose the required restrictions, surcharges, or rationing measures, Corpus Christi may audit the records of the District or Blueberry Hills to ensure that the District or Blueberry Hills has reduced its deliveries by the amount required by this Section 4 of this resolution. i. The District must agree that the failure of the District or Blueberry Hills to comply with this Section 4 of this resolution is a default under Section 19 of its water supply agreement with the City. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa " Joe ,dame City Secretary Mayor APPROVED: 2nd day of February, 2010. R. J Re' Ing First Assistant Ci y Attorney For City Attorney Blueberry Hills Resolution 02022010 ad,:P-fz Corpus Christi, Texas if& of J -e , 2010 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry R. Elizondo, Sr. Kevin Kieschnick Priscilla Leal A1112v 412e- AT - John E. Marez Xesipp(-- Nelda Martinez A/24 -- Mark Scott Agelits(-- Blueberry Hills Resolution 02022010 028478 Page 4 of 4