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HomeMy WebLinkAbout03287 ORD - 06/24/19526/9/52 (5) w L' AN ORDINANCE oZ / AUTHORIZING AND DIRECTING THE CITY MANAGER FOR AND ON BEHALF OF THE CITY TO EXECUTE A FIVE YEAR CONTRACT WITH NUECES COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT ND.- 2 TO SELL AND SUPPLY TREATED WATER TO SAID DISTRICT AT THE RATES AND UNDER THE TERMS AND CONDITIONS SET OUT IN SAID WATER CONTRACT, WHICH CONTRACT BY ITS TERMS STIPULATES PLACE OF DELIVERY, MEASUREMENT OF WATER, WATER PRESSURE, AND MANNER OF PAYMENT; RESERVES CERTAIN RIGHTS; RESTRICTS RESALE, AND FIXES MINIMUM OBLIGATION, CONTAINS CLAUSES CONCERNING TERMINATION OF CONTRACT, FORCE MAJEURE, ASSIGNABILITY, AND ADJUSTMENT OF PRICES; A COPY OF WHICH CONTRACT IS- ATTACHED HERETO AND MADE A PART HEREOF; AND CY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER BE, HE IS HEREBY AUTHORIZED AND DIRECTED FOR AND ON BEHALF OF THE CITY F EXECUTE A FIVE YEAR CONTRACT WITH NUECES COUNTY WATER CONTROL AND IMP OV EMENT DISTRICT NO. 2 TO SELL AND SUPPLY TREATED WATER TO SAID DISTRICT AT THE RATES AND UNDER THE TERMS AND CONDITIONS SET OUT IN SAID WATER CONTRACT, A COPY OF WHICH CONTRACT IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION 2. THAT THE FOREGOING ORDINANCE WAS READ FOR THE FIRST TIME AND PASSED TO ITS SECOND READING BY THE FOLLOWING VOTE ON THE/O DAY OF JUNE, 1952: ' LESLIE WASSERMAN JACK DEFORREST _ SYDNEY E. HERNDON GEORGE L. LOWMAN (iLGSi'� FRANK E- WILLIAMSON THAT THE FOREGOING ORDINANCE WAS READ FOR THE SECOND TIME AND PASSED TO ITS THIRD READING BY THE FOLLOWING VOTE ON THE�_�DAY OF JUNE, 1952; LESLIE WASSERMAN "T , JACK DEFORREST- '�j7�T SYDNEY E. HERNDON GEORGE L. LOWMAN FRANK E. WILLIAMSON THAT THE FOREGOING ORDINANCE WAS READ FOR.THE THIRD TIME AND FINALLY PASSED ON THEpEJ(J`//:� DA Y OF JUNE, 1952A BY THE FOLLOWING VOTE: m _,. " ✓ N V q '� t 5 D: CITY SECRETARY APPRDVED AS LEGAL FORM: CITY ATTORN'Y . 3a37 ' r LESLIE WASSERMAN JACK DEFORREST SYDNEY E. HERNDON GEORGE L. LOWMAN FRANK E. WILLIAMSON PASSED AND APPROVED THIS THEO� ::!�PAY OF JUNE, A.D. 1952. MAYOR THE CITY OF CORPUS CHRISTI, TEXAS 5 D: CITY SECRETARY APPRDVED AS LEGAL FORM: CITY ATTORN'Y . 3a37 IMSIFJG£R:GP �^ 6110/52 (7) THE STATE OF TEXAS Y COUNTY OF NUECES WHEREAS, THE CITY OF CORPUS CHRISTI, TEXAS, A MUNICIPAL CORPORATION, Is NOW THE OWNER OF ITS WATER DISTRIBUTION SYSTEM AND IS ENGAGED IN SUPPLYING WATER FOR INDUSTRIAL AND DOMESTIC PURPOSES; AND WHEREAS, IN CONDUCTING SUCH BUSINESS, SAID CITY IMPOUNDS WATER USED FOR SUCH INDUSTRIAL AND DOMESTIC PURPOSES IN A RESERVOIR LOCATED AT OR NEAR CALAILLCN, TEXAS, FROM WHICH WATER IS AND WILL UE CONDUCTED IN MATHS AND DISTRIBUTED TO ITS USERS; AND WHEREAS, THE CITY OF CORPUS CHRISTI IS DESIROUS OF FURNISHING TO NUECES COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 2, WATER TO DE USED BY IT, ITS SUCCESSORS AND ASSIGNS) INCLUDING THE FURNISHING OF ITS CUSTOMERS FOR DOMESTIC, MUNICIPAL AND INDUSTRIAL USE; NON4, THEREFORE, THIS CONTMACT AND AGREEKNT, THIS DAY MADE AND ENTERED INTO BY AND BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS, ACTING HEREIN BY AND THROUGH ITS DULY AUTHORIZED OFFICERS, HEREINAFTER CALLED "CITY ", AND NUECES COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 2, ACTING THROUGH ITS DULY AUTHORIZED OFFICERS, HEREIN- AFTER CALLED "DISTRICT", W I T N E S S E T H IN CONSIDER: >TION OF THE PREMISES AND T19E SUM OF TEN DOLLARS ($10) CASH IN HAND PAID TO SAID CITY BY SAID DISTRICT, THE RECEIPT OF WHICH IS HEREBY AC- KNOWLEDGED, AND THE MANY BENEFITS WHICH HAVE ACCRUED TO SAID CITY BY THE CONSTRUC- TION OF DISTRICTS LINES AND DISTRIBUTION SYSTEM NEAR THE CITY LIMITS OF SAID CITY OF CORPUS CHRISTI, AND THE FURTHER CONSIDERATION OF THE INCREASED INCOME TO SAID CITY DY REASON OF THE SALE OF WATER TO SAID DISTRICT, ITS SUCCESSORS AND ASSIGNS, IT is AGREED eL5 FOLLOWS: 6 � TREATED WATER AND PRICE: SAID CITY AGREES TO SELL, SUBJECT TO THE CONDI- TION HEREINAFTER SET FORTH, SUCH TREATED WATCR AS SHALL BE DEMANDED BY THE DIS- TRICT IN THE OPERATION OF ITS DISTRIBUTION SYSTEM NEAR CITY OR ITS CUSTOMERS FOR DOMESTIC, MUNICIPAL OR INDUSTRIAL USES AT THE FOLLOWING RATES: (A) IF THE DISTRICT SHOULD NOT CONSUME MORE THAN FIVE MILLION (5,000,000) GALLONS OF TREATED WATER IN ANY ONE CALENDAR MONTH DURING THE PERIOD COVERED BY THIS CONTRACT, THE DISTRICT SHALL PAY TO THE CITY FOR ALL TREATED WATER CONSUMED DURING SUCH CALENDAR MONTH THE CITY'S REGULAR INDUSTRIAL RATES FOR TREATED WATER AS SET BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS; OR (B) IF THE DISTRICT SHOULD CONSUME MORE THAN FIVE MILLION GALLONS OF TREATED WATER IN ANY ONE CALENDAR MONTH DURING THE PERIOD COVERED BY THIS CONTRACT, THE DISTRICT SHALL PAY TO THE CITY FOR ALL TREATED WATER CONSUMED BY IT DURING SUCH CALENDAR MONTH AT THE RATE OF TWELVE CENTS (,$0.72) PER ONE THOUSAND (iYOW) GALLONS, BUT THE BILL FOR ANY ONE i1flNTH SHALL NOT 8E LESS THAN THE AMOUNT FOR FIVE MILLION GALLONS CONSUMED, CALCULATED AS SCT FORTH IN PARAGRAPH II TERM OF CONTRACT* THE OBLIGATIONS OF THE PARTIES HERETO SHALL BE BIND- ING AND SHALL EXTEND FROM THE DATE THEREOF UP TO AND INCLUDING _ s 7957•. itt J{� PLACE OF DELIVERY OF TREATED WATERS THE CITY NOW OPERATES AND MAINTAINS r)L' RE MAIN PIPE LINES FOR THE TRANSPORTATION OF WATER FROM CALALLEN, TEXAS TO THE r CITY OF CORPUS CHRISTI FOR DISTRIBUTION OF ITS TREATED WATER TO DOMESTIC AND IN- DUSTRIAL CONSUMERS IN AND NEAR THE CITY OF CORPUS CHRISTI? TEXAS. THE CITY AGREES TO DELIVER TO DISTRICT TREATED WATER FROM SUCH MAIMS OF THE SAME TYPE AND QUALITY AS IS FURNISHED BY IT TO SUCH DOMESTIC AND INDUSTRIAL CONSUMERS, AND THC DISTRICT TO TAKE OFF THE MAINS OF THE CITY AT A MUTUALLY SATISFACTORY POINT' SAID POINT WHERE THE DISTRICT NOW TAKES OFF THE CITY MAIN IS AGREED BY ALL PARTIES TO BE A 1UTUALLY SATISFACTORY POINT, AND THE DISTRICT AGREES TO RECEIVE AND ACCEPT DELIVERY OF SUCH TREATED WATER AT SUCH POINT' OR IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS CONTRACT. IT IS UNDERSTOOD THAT CITY SHALL FURNISH TAPS FOR CONNECTION BY SAID DISTRICT TO SAID MAINS. IV MEASUREKNT OF WATER: THE TREATED WATER DELIVERABLE HEREUNDER SHALL BE 14EASURED BY SUITABLE WATER METER OR METERS OF STANDARD MAKE, SAME TO BE FURNISHEDS INSTALLED, AND KCPT IN REPAIR BY THE CITY ON TINE PROPERTY OF DISTRICT AT OR NEAR THE PLACE OF DELIVERY. CHECKS AS TO THE ACCURACY OF THE METER OR METERS SHALL BE MADE SEA11— ANNUALLY. CITY SINALL NOTIFY THE DISTRICT IN WRITING TEN DAYS IN ADVANCE OF ALL SEMI- ANNUAL CHECKS AND TEST IN ORDER THAT DISTRICT MAY HAVE A REPRESENTATIVE r PRESENT AS .A WITNESS. SEMI— ANNUAL TESTS AS TO THE ACCURACY OF THE 14ETER OR METERS INSTALLED BY THE CITY SHALL BE AT THE 'CITY'S EXPENSE. IF EITHER CITY OR DISTRICT AT ANY TIME SHALL NOTIFY THE OTHER THAT IT DESIRES A SPECIAL TEST OF ANY METER, THE PARTIES SHALL COOPERATE TO SECURE AN IMMEDIATE VERIFICATION Of THE ACCURACY 2 THEREOF AND JOINT OBSERVATIONS OF ANY ADJUSTMENTS. IF UPON ANY SUCH SPECIAL TESTS OF SAID METER, SAID METER IS FOUND TO BE LESS THAN TWO PER CENT (2%) HIGH OR LOW, THE COST Of SUCH TESTS SHALL BE PAID BY THE PARTY REQUESTING THEM; OTHER- WISE, BY THE OTHER PARTY. En" PARTY SHALL GIVE TO THE OTHER NOTICE OF THE TIME OF ALL SUCH TEST OFFICIALLY IN ADVANCE OF THC HOLDING OF TI4E TESTS SO THAT THE OTHER PARTY MAY HAVE A REPRESENTATIVE PRESENT. IF UPON ANY TEST, CITY'S METERS , ARE FOUND TO BE NOT MORE THAN TWO PER CENT HIGH OR LOW, PREVIOUS READINGS OF SUCH 14ETER SHALL BE CONSIDERED CORRECT IN COMPUTING THE VOLUME OF WATER OELIVEREO BY THE CITY TO DISTRICT, BUT SUCH METERS SHALL BE AT ONCE' PROPERLY ADJUSTED TO RECORD ACCURATELY. IF ON ANY TESTS, CITY'S METERS SHALL BE FOUND TO BE INACCURATE BY AN AMOUNT EXCEEDING TWO P£R CENT THEN ANY PREVIOUS READING OF SUCH METERS SHALL BE CORRECTED FOR ANY PERIOD WHICH IS DEFINITELY KNOWN OR AGREED UPON, allT NO SUCH CORRECTIONS 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 CITY'S METER OR METERS ARE OUT OF SERVICE SO THAT THE VOLUME OF WATER DELIVERABLE HEREUNDER CANNOT BE ASCERTAINED OR COMPUTED FROM METER READINGS THEREOF, THE WATER DELIVERED DURING THE PERIOD OF SUCH METER OR METERS BEING OUT OF SERVICE SHALL BE ESTIMATED AND AGREED UPON BY THE PARTIES HERETO 'UPON THE OASIS OF THE BEST DATA AVAILABLE. Y PRESSURE: AT THE POINT OF DELIVERY-OF TREATED WATER CITY SHALL AT ALL TIMES MAINTAIN A PRESSURE (N SUCH AMOUNT THAT THE SAVE SHALL NOT BE LESS THAN FORTY (40) POUNDS PER SQUARE INCH AT SUCH POINT AND SHALL UNDERTAKE TO MAINTAIN AN AVERAGE PRESSURE OF FIFTY (50) POUNDS PER SQUARE INCH. VI PAYMENTS: PAYMENTS FOR ANY AND ALL WATER SOLD BY SAID CITY TO DISTRICT SHALL BE MADE,MGNTHLY AT THE OFFICE OF THE CITY WATER DEPARTMENT AT THE CITY HALL OF CORPUS CHRISTI, TEXAS, AND ALL BILLS THEREFOR SHALL BE PAID ON OR BEFORE THE 20TH DAY OF THE SUCCEEDING MONTH AFTER SAME ACCRUED. STATEMENTS SHALL BE MAILED TO SAID DISTRICT AT CORPUS CHRISTI, TEXAS, ON THE IST DAY OF EACH MONTH, SHOWING THE VOLUME OF WATER AND THE SUM OF MONEY DUE C17Y FOR -WATER SOLD AND DELIVERED TO DIS- TRICT DURING THE PRECEDING CALENDAR AIONTH. VII PRIORITIES: THIS CONTRACT IS ENTERED INTO AND THE SALE OF WATER HEREUNDER IS MADE SUBJECT AT ALL TIMES TO THE PRIOR RIGHTS OF DOMESTIC 'AND INDUSTRIAL CONSUMERS 3 WITHIN THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI, TEXAS, TO THE SUPPLY OF WATER IN THE NUECES RIVER, INCLUDING LAKES AND RESERVOIRS LOCATED THEREON, TO PREVIOUS COMMITMENTS AND CONTRACTS Or THE CITY, AND IN THE EVENT AT ANY TIME THE SUPPLY OF WATER IN THE NUECES RIVER SHALL BE SO DIMINISHED AS TO REQUIRE RATION- ING OF WATER BY THE CITY OF CORPUS CHRISTI TO ITS O.C.L. (OUTSIDE THE CITY LIMITS) CONSUMERS, THEN IN SUCH EVENT, THIS CONTRACT SHALL BECOME SUSPENDED DURING THE PERIOD OF TIME WHEN SUCH SUPPLY OF WATER IN SAID RIVER, INCLUDING LAKES AND RESER- VOIRS LOCATED THEREON,, IS SO DIMINISHEO, BUT IMMEDIATELY UPON THE SUPPLY OF WATER IN SAID RIVER, INCLUDING LAKES AND RESERVOIRS LOCATED THEREON, BECOMING AGAIN SUF- FICIENT FOR THE FORESEEABLE NEEDS„OF DOMESTIC AND INDUSTRIAL CONSUMERS WITHIN THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI, THIS CONTRACT'SHALL BECOME AGAIN EF- FECTIVE TO THE EXTENT OF THE EXCESS OF SUCH SUFFICIENCY. Vill RESTRICTIONS ON RESALE. IT IS DISTINCTLY UNDERSTOOD AND AGREED THAT SAID DISTRICT SHALL NOT DELIVER OR SELL WATER OBTAINED UNDER THIS CONTRACT TO ANY OTHER PERSONS FIRM OR CORPORATION, EXCEPT SUCH PERSONS, FIRMS AND CORPORATIONS WHICH ARE HONAFIDE. CUST014ERS OF THE DISTRICT AND, THE DISTRICT HEREBY AGREES FOR ITSELF AND AGREES TO'SIND ALL ITS CUSTOMERS TO THE EFFECT THAT THE STIPULATION CONTAINED IN THIS CONTRACT SHALL CE BINDING UPON EACH OF SAID CUSTOMERS, INCLUDING THE FURTHER STIPULATION THAT SHOULD THERE BE A SHORTAGE IN THE SUPPLY OF WATER WHICH REQUIRES THE RESTRICTION OR CURTAILING OF ANY CONSUMER OR CONSUMERS OF WATER WITHIN THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI THAT COINCIDENT WITH SUCH RESTRICTION OR LIMI- TATION WITHIN THE CITY, THE DISTRICT WILL LIMIT AND RESTRICT ALL ITS CUSTOMERS TO THE BAaI£ EXTENT. IT IS FURTHER AGREED THAT ANY AND ALL INDUSTRIAL USERS WHICH 61AY BE SUPPLIED THROUGH THE LINES AND DISTRIOUTION'SYST£M OF THE DISTRICT SHALL BE SUB- JECT TO AND BOUND BY THE SAME PROVISIONS REGARDING PRIORITY OF USERS OF WATER WITH- IN THE CITY OVER INDUSTRIAL USERS OUTSIDE THE CITY, AS ARE INDUSTRIAL USERS OUTSIDE THE CITY'WHICH ARE NOW OR MAY BECOME USERS OF WATER DIRECTLY FROM THE CITY OF CORPUS CHRIST). IR FIXED MINI14M Oftla4TIONi THIS CONTRACT IMPOSES NO OBLIGATION UPON DISTRICT- TO PURCHASE ANY MINI14UM AMOUNT OF WATER IN ANY CALENDAR MONTH THROUGHOUT THE AERIOD OF THIS CONTRACT, GUT DISTRICT SHALL PAY DURING THE LIFE OF THIS CONTRACT THE 1r1 *ll itUM SUM OF TWENTY -FIVE DOLLARS ($25) PER MONTH, IRRESPECTIVE OF WHETHER ANY WATER IS US- ED OR NOT, SAME TO BE PAYABLE ON OR BEFORE THE 20TH DAY OF EACH MONTH FOR THE PRECEDING 4 CALENDAR MONTH; PROVIDED, HOWEVER, If TI4E VOLUNC OF WATER CONSUMED BY DISTRICT AT THE APPLICABLE RATE HEREINABOVE SET FORTH DURING ANY CALENDAR MONTH AMOUNTS TO LESS THAN THE FIXED SUM OF TWENTY -FIVE DOLLARS (425), THE, IN ADDITION TO THE PAYMENT FOR SUCH WATER, DISTRICT SHALL PAY THE DIFFERENCE BETWEEN THE AMOUNT DUE THE CITY FOR WATER ACTUALLY CONSUMED AND THE SUM OF TWENTY -FIVE DOLLARS025J. IN OTHER WORDS, IN THE EVENT WATER IS USED, THEN THE DISTRICT SHALL BC ENTITLED TO CREDIT SAID $25 AGAINST THE CHARGE FOR WATER USED. SAID SUMS SHALL BE PAYABLE AT THE TIME AND PLACE HEREINABOVE PROVIDED FOR. X RIGHT OF DISTRICT TO TERMINATE CONTRACT: IF CONSUMER OR CONSUMERS OF DISTRICT SHOULD FOR ECONOMIC REASONS OR ANY OTHER REASON OR REASONS BECOME INOPERATIVE OR SHUT DOWN FOR A PERIOD OF AT LEAST TWELVE (12) CONSECUTIVE MONTHS, THEN IN SUCH EVENT, DISTRICT NAY, BY GIVING THIRTY (30) DAYS WRITTEN NOTICE, ADDRESSED TO CITY BY REGISTERED MAIL AT CORPUS CHRISTI, TEXAS, CAt1C£L AND TERMINATE THIS CONTRACT IN ITS ENTIRETY. IF DISTRICT SHOULD ELECT TO GIVE, AND ACTUALLY GIVES�CITY SAID WRIT- TEN NOTICE, TIIEN AFTER THE EXPIRATION OF THIRTY (30) DAYS FROM THE DATE SAID NOTICE IS MAILED TO CITY, AS ABOVE PROVIDED, THIS CONTRACT SHALL, IN ALL PROVISIONS, BECOME NULL AND VOID. X1 FORCE MAJEURE: IF CITY SHOULD BE PREVENTED, WHOLLY OR IN PART FROI4 FULFILLING ITS OBLIGATIONS UNDER THIS CONTRACT BY REASON OF AN ACT OF GOD, UNAVOtOADLE ACCIDENT, ACTS OF ENEMY, STRIKES, FIRES, FLOODS, STATE OR FEDERAL GOVERNMENTAL RESTRAINT OR REGULATION, OR OTHER CASES OF FORCE MAJEURE, THEN THE OBLIGATION OF THE CITY TO DS- LIVER WATER TO DISTRICT, AS HEREINABOVE PROVIDED, SHALL BE TEMPORARILY SUSPENDED DURING CONTINUATION OF SUCH FORCE MAJEURE. NO DAMAGE SHALL BE RECOVERABLE BY DiS- TRtCT FROM CITY BY REASON OF THE TERPORARY SUSPENSION Of DELIVERIES OF WATER DUE TO ANY OF THE CAUSES ABOVE MENTIONED. IF THt CITY'S OBLIGATION WtOULD BE AFFECTED BY ANY OF SUCH CAUSES, CITY SHALL PROMPTLY NOTtFY DISTRICT IN WRITING, GIVING FULL PARTICU- LAOS OF SUCH FORCE MAJEURE AS SOON AS POSSIDLE AFTER OCCURENCE OF THE CAUSE OR CAUSES RELIED UPON- %1 f ASSIGNABILITY: THIS CONTRACT MAY BE ASSIGNED ONLY WITH THE WRITTEN CONSENT OF THE GOVERNING BODY OF THE CITY, BUT IF ASSIGNED, THIS CONTRACT SHALL DE BINDING UPON PARTIES HERETO AS WELL AS THEIR SUCCESSORS AND ASSIGNS. 5 n Xill ADJUSTMENT OF PRICES: NOT WITHSTANDING ANY OF THE PROVISIONS OF THIS CON- TRACT, IT IS AGREED THAT THE PRICES PROVIDED HEREIN ARE SUBJECT TO ADJUSTMENT UP- WARD TO THE EXTENT THAT IN NO EVENT SHALL THE CITY BE COMPELLED TO FURNISH WATER, UNDER THE PROVISIONS OF THIS CONTRACT, AT A PRICE LOWER THAN THAT CHARGED TO OTHER INDUSTRIAL CONSUMERS OF WATER, HAVING A POINT OF DELIVERY OUTSIDE THE CITY LIMITS OF T14E CITY OF CORPUS CHRISTI, TEXAS, AND USING WATER IN COMPARABLE QUANTITIES. IN WITNESS WHEREOF, THE PARTIES HAVE HERETO CAUSED THESE PRESENTS TO OE,DULY EXECUTED THIS THE DAY OF , A.D. 1952. THE CITY OF CORPUS CHRISTI, TEXAS BY ATTEST: I CITY MANAGER CITY SECRETARY APPROVED AS TO LEGAL FORA,: CITY ATTORNEY NUECES COUNTY WATER CONTROL AND IMPROVEMENT ATTEST: DISTRICT NO, 2 BY m