HomeMy WebLinkAbout02865 ORD - 09/05/1950%9%5 50(6)
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER
TO EXECUTE AN AGREEMENT TO CONTRACT BY AND
BETWEEN THE CITY OF CORPUS CHRISTI AND THE
LOWER NUECES RIVER WATER SUPPLY DISTRICT,
WHICH CONTRACT SHALL HE SUBMITTED TO AN
ELECTION OF THE QUALIFIED VOTERS OF THE
CITY OF CORPUS CHRISTI ON THE PROPOSITION
OF THE AUTHORIZATION THEREOF, Iff ORDER TO
SUPPLY WATER FOR THE CITY OF CORPUS CHRISTI,
TEXAS, A COPY OF WHICH AGREEMENT TO CON -
TRACT -AID WATER CONTRACT IS ATTACHED HERE-
TO AND MADE A BART HEREOF; AND DECLARING AN
EMERGENCY.
WHEREAS, It is desired to obtain water for the Water Supply
of the City of Corpus Christi; and
WHEREAS, It is necessary under authority of Chapter 31+2, Acts
of the 51st Legislature of Texas, 1949, being Article llC9e, V.A.
T. C. S. 192, as Amended, before entering into a contract for such
purpose of obtaining water for the Water Supply of the City of
Corpus Christi, to submit such contract to an election of its
qualified voters of the City of Corpus Christi on the proposi-
tion of the authorization thereof;:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF CORPUS CHRISTI, TEXAS:
SECTION I. That the City Manager of the City of Corpus
Christi be and he is authorized and directed for and on behalf of
the City of Corpus Christi to execute an agreement to contract with
the Lower Nueces River Water Supply District to obtain water for
the City of Corpus Christi, Texas, such contract to be submitted
as aforesaid to the qualified voters of the City of Corpus Christi,
and which agreement to contract and water contract is attached
hereto and made a part hereof, reading as follows:
1 �
AGREEMENT TO CONTRACT
THE STATE OF TEXAS )
) ss
COUNTY OF NUECES )
THIS AGFJ=NT TO CONTRACT, made and entered into by and
between the Lower Nueces River Water Supply District and the City of
Corpus Christi, Texas,
W I T N E S S E T H:
WHEREAS, the parties hereto are given the power to make
the following proposed contract under authority of Chapter 342, Acts
of the 51st Legislature of Texas at its regular session in 1949
(being Art. 1109e, V.A.T.C.S. 192, as Amended) provided however that
such contract has received the approval of the qualified electors of
the City who own taxable property therein and who have duly rendered
the same for taxation before such contract shall be fully effective;
and
WHEREAS, the parties hereto hereby find and determine that
the form and contents of "Water Contract" hereinafter appearing will
accomplish the mutually desire purposes for the mutual benefit of the
parties, and shall become a final contract between them if authorized
by the qualified voters of the City and should therefore be submitted
to as election to determine such authorization:
NOW, THEREFORE, in consideration of the mutual benefits
to accrue to the parties upon the adoption of the following contract,
and in further consideration of the amounts to be paid by the City
and the obligations to be discharged by the District under the provi-
sions of the proposed contract, the parties hereto agree as follows:
I.
That the following "WATER CONTRACT" be and the same is
hereby approved as the contract to be finally made and entered into
between the parties hereto.
WATER CONTRACT
THE STATE OF TEXAS )
) so.
COUNTY OF NUECES )
THIS AGREEMENT, made and entered into by and between the LOWER NUECES
RIVER WATER SUPPLY DISTRICT, a municipal corporation as created by Chapter 159 of the
Acts of the 51st Legislature of the State of Texas, at its regular session in 1949
(hereinafterieferred to as the "District "), acting by and through its President and
Secretary, and hereunto duly authorized by the Board of Directors of said District,
and the CITY OF CORPUS CHRISTI, Nueces County, Texas, a municipal corporation organ-
ized and existing under the laws of the State of Texas (hereinafter referred to as
the "City "), acting by and through its City Manager, hereunto duly authorized by the
City Council of said City,
W I T N E S SE T H:
WHEREAS, under the Act of its creation the District is vested with all
the rights, powers, privileges and duties conferred and imposed by the General Laws
of Texas applicable to water control and improvement districts created under Section
59, Article 16 of the Constitution including the right to issue bonds for any and
all purposes permitted to water control and improvement districts and including also,
but without limitation of purposes not specified, the acquisition by construction or
otherwise of plants and improvements for storage, treatment, transportation, delivery
and disposition through sale or otherwise of flood, storm flow or underground water,
and to contract with any city or town for delivery of water and to fix charges upon
the basis of the quantity of water furnished or appropriate measure of the service
rendered with the time-and manner of payment to be determined by contract made by the
Board of Directors; and
WHEREAS, the City now has a lake, dam, filtration plant, and a distri-
bution system that serves approximately all of the inhabitants of said District,
and has permits for the right to appropriate, store and divert certain waters out
of the Nueces River, but the City now finds that its present source of water supply
is inadequate to meet the present and future requirements of the City, that due to
this inadequate water supply, large industries are reluctant to locate in this vici-
nity, all of which constitute an emergency and an imperative public necessity that
the City supplement its present source of water supply at the earliest possible time;
and
WHEREAS, said District is now planning for the development of an under-
ground source of water supply to be produced from subterranean geological formations
through wells, said wells to be located adjacent to the Atascosa or the Frio Rivers
that flow into the Nueces River which in turn flows into the city's present reser-
voir; and
WHEREAS, the parties hereto are given the power to make and enter into
this contract pursuant to the provisions of Chapter 342, Acts of the 51st Legislature
of Texas at its regular session in 1949 (being Art. 1109e V.A,T.C.$_ 1925 as Amended),
the said authority of the City to so contract having been confirmed by a majority vote
of the qualified voters of the city voting at an election held in said City pursuant
to the aforesaid statute on the ,day of 1950;
NOTE THEREFORE, in consideration of the sums to be paid by the City and
the obligations to be discharged by the District under the terms and provisions here-
inafter specified and of the other mutual covenants and agreements herein contained,
the parties hereto hereby agree as follows:
1.
Upon execution of this contract, the District shall authorize its engi-
neers to complete final detailed plans and specifications and shall file with the Texas
State Board of Water Engineers such application or applications as may be required to
procure water permits in the Nueces River Basin, to obtain the right to drill wells
within said Basin, to impound water, and to construct pumping facilities, gathering
Systems, and other necessary installations for obtaining water from wells and to
deposit same into rivers, canals, or conduits in said Basin, all as shall be set forth
in the plans and specifications finally approved by the District and its engineers.
2.
Upon obtaining the approval of the State Board of Water Engineers, the
District shall proceed to make such option contracts, leases, or to acquire such
other rights as are necessary to be acquired in the area designated by the engineers
as likely sources of underground water supply in order to first prove the availability
of underground water in such areas in sufficient quantities and of such quality as
shall be considered suitable by the engineers for domestic and commercial purposes.
_.
The District shall then make such tests and drill such test wells in the designated
areas as are considered necessary in order to prove the availability of underground
water as aforesaid,
FBI
3.
The financing of all expenses incident to the making of the aforesaid
tests, the proving of such underground water supply and such other necessary expenses
as are authorized by the laws of the State of Texas applicable to the District, shall
be accomplished by the issuance and sale of not to exceed $150,000.00 par value of
the aforementioned bonds of the District, to mature not to exceed ten years from
their date.
For and in consideration of the District's performing the aforesaid ex-
ploratory work including the obtaining of a detailed report by its engineers, as to
the availability of an underground source of water sufficient to meet the City's fore-
seeable future requirements (a copy of which shall be made available to the City) and
in further consideration of the City's right to obtain water from such supply, under
the terms hereinafter set forth, the City covenants and agrees to pay the District
the sum of $2,000.00 per month upon the 15th day of each month, the first payment to
be made upon the 15th day of the month next following the date of the bonds, and the
City shall continue making such payments until there are sufficient funds on deposit
with the District to retire the outstanding bonds of the District issued under the pro-
visions of this paragraph, provided however, that said monthly payments above provided
shall be discontinued at such time as the City may become obligated to pay the Dis-
tract the sums hereinafter provided to be paid for water when the source of supply has
been proven, pursuant to the provisions hereinafter appearing and in which event the
first installment of bonds aforesaid shall be serviced out of the sums thus to become
due the District.
Any funds remaining from the sale of the bonds that are not required for
the purposes for which said bonds were authorized shall be used to retire outstanding
bonds.
4.
When a source of adequate underground water supply has been proven, the
District shall proceed in the acquisition of land and water rights and to complete
the drilling and equipping of such wells as are required for the fulfillment of the
further provisions of this contract, pursuant to the plans and specifications pre-
pared by the engineers and approved by the District. It is agreed and understood
that the completion of said wells and the availability of the water to be supplied
therefrom in accordance with the terms hereof shall be accomplished as soon as practi-
3
cable and with all reasonable diligence.
5.
It is understood that the City shall never be or become liable for any
part of the cost and expense of acquiring the well sites, drilling the wells, equip-
ping the wells, or for any pumping equipment or gathering system, nod become liable
for the operation repair, or maintenance thereof; it being the intention of both
parties hereto that all such costs and expenses are and shall be the direct and sole
obligation of the District.
6.
When the source of supply contemplated herein has been developed and
such water is available at the point of delivery herein specified, the District cove-
nants and agrees to sell and deliver to the City, as requested, up to 2,125,000,000
gallons of water per calendar year, but at no time shall the District be required to
deliver in excess of 10,000,000 gallons of water in any twenty-four hour period, under
the terms of this paragraph. The City hereby covenants and agrees that in considera-
tion of the District's obligation to furnish water in the quantity above specified,
it will pay the District the sum of $7;000.00 per month so long as any portion of the
bonds issued by the District to finance the water supply herein contemplated remain
outstanding and unpaid, which amount shall be the minimum monthly charge to the City
irrespective of the amount of water which may be requested and received by it and
said monthly payments shall commence on the 15th day of the month next following the
date of the next or second installment of the $1,750,000.00 authorization. For such
monthly payments the City shall be entitled to request and receive, when available,
not to exceed 2,125,000,000 gallons of water in any calendar year provided that its
request therefor has been made in time so that said amount may be received by it if
produced at the rate of not to exceed 10,000,000 gallons of water in any twenty -four
hour period.
7.
In the event the City requires water in excess of the 2,125,000,000
gallons per calendar year, as provided above, the City shall give notice in writing
of the amount of water required, such notice to be given 90 days prior to the time
the City expects to receive such additional water, provided, however, that upon such
notice the City shall be entitled to request and receive up to 4,250,000,000 gallons
of water in any calendar year, to be delivered by the District in quantities not to
4.
exceed 20,000,000 gallons of water in any twenty -four hour period. In consideration
of the additional water (the total not to exceed 4,250,000,000 in any calendar year)
to be made available by the District, the City covenants and agrees to increase its
monthly minimum payment to $12,000.00 per month, which amount shall be the minimum
monthly charge to the City, irrespective of the amount of water which may be requested
and received by the City, said increased monthly payments shall commence on the 15th
day of the month next following the date of the next or third installment of bonds of
the $1,750,000.00 authorization.
It is further understood and agreed that the City reserves the right
and privilege of requesting further additional water from the District to the extent
of 30,000,000 gallons (the total not to exceed 50,000,000 gallons) in any twenty -four
hour period, upon notice in writing to the Directors of the District and given at
least 120 days prior to the time the City shall expect to receive such additional water.
Such water in excess of said 4,250,000,000 gallons of water in any one
calendar year (for which the City shall pay a minimum monthly charge of $12,000.00 as
above provided) requested and received by the City shall be paid for in accordance with
the following schedule:
(a) 4,250,000,001 gallons up to 7,250,000,000 gallons at the rate of
34¢ per thousand gallons;
(b) 7,250,000,001 gallons up to 10,500,000,000 gallons at the rate of
3¢ per thousand gallons;
(c) 10,500,000,001 gallons up to 14,500,000,000 gallons at the rate of
2 -3/4¢ per thousand gallons;
(d) 14,500,000,001 gallons up to 18,000,000,000 gallons at the rate of
2 per thousand gallons.
8.
The District covenants to deliver water under the terms of this contract
to the City when requested, such requests to be made in writing to the Board of
Directors of the District forty -eight hours prior to the time water is to be delivered,
such notice to specify the number of days and the quantity of water to be delivered
per day, the District shall have the right to cease delivery at the end of the period
designated in said notice unless further notice is given forty -eight hours prior to
the end of the previously noticed period. Delivery of water pursuant to notice pre-
viously given shall be discontinued upon twenty-four hour notice from the City to the
5•
District. The delivery of the water by the District as requested by the City shall be
made by - discharging said water into the Atascosa or the Frio Rivers, which in turn will
reach the City's reservoir by flowing down the Nueces River and the City agrees to ac-
cept delivery of said water at the points of discharge into the said Frio or Atascpsa
Rivers. The maximum amount of water to be delivered in any one twenty-four hour period
shall be controlled by the provisions herein elsewhere appearing pertaining thereto.
9•
This contract shall continue in effect until all the bonds issued by the
District to carry out its agreements hereunder or any refunding bonds issued in lieu of
such bonds have been paid and retired, at which time the parties hereto shall negotiate
a new contract, under which the rates to be paid by the City for water furnished by the
District shall be based on the income requirements of the District at such time.
10.
All monthly payments due the District by the City under the terms of this
contract shall become due on the 15th day of the month upon billings made by the Dis-
trict and computed as of the first day of the month. The District shall install master
meters and check meters for measuring the flow of water discharged into the river or
rivers.
11.
The District will cause the master meters to be read at monthly intervals;
and one representative of the City and one representative of the District shall be pre-
sent at such readings, unless either party waives the right to be so represented.
The duly authorized representatives of both parties shall have free access to said
meters at all reasonable times. On any meter reading date, the master meters and
check meters shall be read simultaneously; and if the total amount of water recorded
is substantially the same, the difference in reading being within the tolerance for
errors permitted for each meter, then the average reading shall be accepted as correct.
If, however, the differences cannot be accounted for within permissible tolerances,
actual tests shall be made at the District's expense of any meter which appears to
be inaccurate, and the one shown to be accurate within the tolerances permitted shall
be accepted as correct. Should none of the meters function within the permissible
tolerances, then the measurements of water shall be determined by joint agreement
between representatives of the District and the City. Said meters shall be inspected
anitested every six months by and at the expense of the District, of which test the
District shell give the City reasonable notice and the City shall have the right to
6.
have a representative present. In addition, either party may at its own expense and
upon five days notice to the other inspect and test said meters.
12.
The District obligates itself to drill and equip such wells and construct
such gathering systems as will enable it to carry out the terms of its agreement$ and
obligates itself to maintain and operate such facilities in such manner as to permit
delivery to the City continuously during the life of this agreement the amount of water
herein stipulated, if so requested by the City.
13.
It is agreed and understood by the parties hereto that at the end of each
five year period, the rate of compensation for water and services rendered by the Dior-
trict under this contract shall be subject to revision by negotiation so Ahat the net
revenues of the District obtained from this contract will at all times be sufficieAt
to enable the District to pay all necessary operation, maintenance, administrative,
and replacement requirements and also to pay all principal, interest and reserve fund
requirements of the bonds to be issued by the District as provided in its resolution
or resolutions authorizing such bonds, and no more.
14.
The District agrees that it shall never, during the period of this contract,
enter into any subsequent contract with any other user of water which shall prejudice
the CityFs prior right to the amount of water it is entitled to receive hereunder, and
said District further agrees that it shall not contract to supply any other municipal,
commercial, or industrial user of water any part of the quantity of water herein
pledged to be furnished to the City, except with the written consent of the City as to
such purchaser, the price therefor, and the use to be made of the proceeds therefrom,
15.
In the event said wells, pumps, or gathering system, or any of them be
destroyed or damaged as a result of any cause whether by force injeure or otherwise
the District shall proceed within thirty days thereafter and at its own expense to
restore said facilities, but in such event the City shall continue to pay the month-
ly charges hereinabove set out.
A.
Should the District fail to begin said restoration of facilities within
said thirty days or should restoration work once begun by the District be discontinued
7•
for ,a consecutive period of thirty days or more, then the City shall have the right
on written notice to the District, to take over said restoration of said improve-
ments and facilities aid to complete same to their original condition. In such
event, during the time the City may be restoring said improvements and facilities,
monthly charges may be withheld by City and all cost of said restoration by City
shall be deducted from such monthly charges withheld. After complete restoration
of said improvements and facilities, monthly charges shall again be paid to the
District. In the event withheld monthly charges exceed the City's cost of restora-
tion, any excess shall be remitted to the District promptly after the complete restora-
tion of said improvements and facilities by the City.
17.
In the event any dispute shall arise between the parties hereto, or
any person claiming under them, in relation to this agreement, at the desire of
either party such dispute shall be determined and settled by a majority vote of a
board of three arbitrators, one to be appointed by each of the parties hereto and
the third to be appointed by the two members so selected.by said parties. If the
two arbitrators appointed by the parties hereto shall fail or neglect to appoint
a third arbitrator within thirty days after their appointment, then the third
arbitrator shall be appointed by the County Judge of Nueces County, Texas.
18.
Each party to this agreement has been duly authorized to enter into
the same by proper ordinance or resolution of its respective governing body and
certified copies of which are attached hereto.
lg.
The conditions and obligations of this contract shall be binding
upon the successors and assigns of the District and the City, but the District
shall not assign this contract or any part hereof without the written consent of
the City.
8.
III WITNESS WHEREOF the parties hereto have caused this instrument to
be executed in five originals by their duly authorized representatives this
day of 1950 A.D.
LOWER NUECES RIVER WATER SUPPLY DISTRICT
ATTEST: By
President
Secretary
APPROVED AS TO LEGAL FORM:
Attorney, LOWER NUECES RIVER WATER SUPPLY DISTRICT
CITY OF CORPUS CHRISTI, TEXAS
ATTEST: By
City Manager
City Secretary
APPROVED AS TO LEGAL FORM:
City Attorney, CITY OF CORPUS CHRISTI, TEXAS
0Z
II,
Upon the execution of this Agreement to Contract, the gov =.rn-
ing authority of the City of Corpus Christi shall submit the aforesaid
contract to an election of its qualified voters on the proposition of the
authorization thereof in conformity with the terms of Art. 1109e V.A.T.C.S.
1925, as Amended, as soon as conveniently and legally possible.
III.
Upon execution of this Agreement to Contract, the governing
authorities of the Lower Nueces River Water Supply District shall call
an election for the purpose of submitting to its qualified voters the
question of whether or not such District shall be authorized to issue
bonds in an amount not to exceed $1,750,000.00, such bonds to mature not
to exceed thirty years from their date..
IV.
In the event the aforesaid contract be authorized by the quali-
fied voters of the City in compliance with said Article 1109e, same shall
then be fully executed by the duly authorized officers of the District,
pursuant to resolution of its Board of Directors, and shall be fully exe-
cuted by the duly authorized officers of the City, pursuant to Ordinance
of its City Council.
IN WITNESS WHEREOF the parties hereto have caused this Agree-
ment to Contract to be executed by their duly authorized officers as of
this the 5th day of September, 1950.
LOWER NUECFS RIVER WATER SUPPLY DISTRICT
ATTEST: By
President
Secretary
APPROVED AS TO LEGAL FORM:
Attorney, LOWER NIECES RIVER WATER SUPPLY DISTRICT
CITY OF CORPUS CHRISTI, TEXAS
ATTEST: By
City Manager
City Secretary
APPROVED AS TO LEGAL FORM:
City Attorney, CITY OF CORPUS CHRISTI, TEXAS
SECTION II. The Water supply of the City of Corpus
Christi and the obtaining of allocations therefor is of the
greatest importanhe to the health and general welfare of the
general public and the City of Corpus Christi and the necessity
of entering into the aforesaid agreement to contract and Water
contract creates a public emergency and an imperative public
necessity requiring the suspension of the Charter rule provid-
ing 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 several meetings of the City Council,
and the Mayor, having requested, first having declared such
emergency and necessity to exist, that such Charter rule be
suspended and that this ordinance be passedfinally on the day
it is introduced and take effect and be in full force and ef-
fect from and after its passages IT IS ACCORDINGLY SO ORDAINED.
PASSED AND APPROVED This the 5th day of September,
A.D. 1950#
SST: Ox
V\
CITY OF CORPUS CARTSTI, TEXAS
, 9 4 4.t 1 rr�
`G ity Secretary
APPROVED AS TO LEGAL FORK:
City Attorney
Corpus Christi, Texas
. 1950
TO THE 1'MBERS OF THE CITY COUNCIL
Corpus Christi, Texas
Gentlemen:
For the reasons set forth in the emergency clause of the fore-
going 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, hereby 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,
�a4lj
_
City of Corpus Christi, Texas
The Charter rule was suspended by the following vote:
Leslie Wasserman
Jack DeForrest
Barney Cott
Sydney E. Iierndon
/ t"',
George L. Lmvman
The above ordinance was
passed by the following vote:
Leslie ',iasse=aa
Jack DeForrest
Barney Cott
Sydney E. Herndon
George L. Lowman