HomeMy WebLinkAbout03331 ORD - 10/14/1952AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER FOR
AND ON BEHALF OF THE CITY OF CORPUS CHRISTI TO
EXECUTE AN AGREEMENT TO CONTRACT BY AND BETWEEN
THE CITY OF CORPUS CHRISTI AND LOWER NUECES RIVER
WATER SUPPLY DISTRICT WHICH CONTRACT SHALL BE SUB-
MITTED TO AN ELECTION OF THE QUALIFIED VOTERS OF THE
CITY OF CORPUS CHRISTI ON THE PROPOSITION OF THE
AUTHORIZATION THEREOF, IN ORDER TO MAKE AVAILABLE A
GREATER SUPPLY OF WATER FOR THE CITY OF CORPUS CHRISTI,
TEXAS, A COPY OF WHICH AGREEMENT TO CONTRACT AND WATER
CONTRACT IS ATTACHED HERETO AND MADE A PART HEREOF; AND
DECLARING AN EMERGENCY
WHEREAS, IT IS DESIRED TO OBTAIN WATER FOR THE WATER SUPPLY OF THE CITY
OF CORPUS CHRISTI, TEXAS; AND
WHEREAS, IT IS NECESSARY UNDER AUTHORITY OF CHAPTER 342, ACTS OF THE 51ST
LEGISLATURE OF TEXAS, 1949, BEING ARTICLE 1109E, VERNON'S ANNOTATED CIVIL STATUTES
OF TEXAS, 1925, AS AMENDED, BEFORE ENTERING THE CONTRACT FOR SUCH PURPOSE OF OB-
TAINING 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,
TEXAS ON THE PROPOSITION OF THE AUTHORIZATION THEREOF;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS: _.
SECTION 1. THAT THE CITY MANAGER'OF THE CITY OF CORPUS CHRISTI BE AND HE
IS HEREBY AUTHORIZED AND DIRECTED FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI
TO EXECUTE AN AGREEMENT TO CONTRACT WITH TH� LOWER NUECES RIVER WATER SUPPLY
DISTRICT TO OBTAIN AND MAKE AVAILABLE A GREATER SUPPLY OF 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.
SECTION 2. THAT THE WATER SUPPLY OF THE CITY OF CORPUS CHRISTI AND THE OB-
TAINING OF ADEQUATE RESERVOIR FACILITIES TO INCREASE THE AVAILABILITY OF SUCH
SUPPLY IS OF THE GREATESTIMPORTANCE TO THE PUBLIC HEALTH, SAFETY AND GENERAL
WELFARE OF THE CITY OF CORPUS CHRISTI, AND THE NECESSITY OF ENTERING INTO THE
AFORESAID AGREEMENT TO CONTRACT IMMEDIATELY TO FACILITATE--THE PROCEEDINGS TO-
WARD SUCH END, CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY
a REQUIRING,THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION
SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE
5331
OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL
AND THE MAYOR, HAVING DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST, HAVING
REQUESTED THE SUSPENSION OF SAID 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 PASSED
AND APPROVED THIS THE AY OF OCTOBERS A.D 1952•
MA R
THE CITY OF CORPUS CHRISTI, TEXAS
()TES TsY SECRETARY
APP VED AS T LEGAL FORM:
CITY ATTOIRAEY
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Corpus Christi, Texas
A44 1"K 1Qa �
TO THE MEMBERS OF THE CITVtOHtCIL
Corpus Christi, Texas °I 1
Gentlemen:
For the reasons set forth in the emergency clause of the foregoing
ordinance, a public emergency and imperative necessity exist for the suspen-
sion 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,
MAYOR
-�
City of Corpus
Christi, Texas j
The Charter rule was suspended by
the following vote:;.•
I
Leslie Wasserman2�
Jack DeForrest
Sydney E. Herndon
George L. Lowman
-�- -�
Frank E. Williamson
The above ordinance was passed by
the following vote:
Leslie Wasserman
Jack DeForrest
Sydney E. Herndon
George L. Lowman
j
Frank E. Williamson
'AGREEMENT TO CONTRACT
TIM STATE CF TEXAS
COUNTY OF NIECES
THIS AGpMMENT 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 fol-
lowing proposed contract under authority of Chapter 342 Acts of the 51st
Legislature of Texas, at its Regular Session in 1949 (being Article 1109e,
V.A.T,C.S. 1925 as amended); and
WHEREAS, said parties have determined to enter into such contract
provided all those conditions precedent hereinafter referred to, including
the approval of such contract by a majority vote of the qualified el"torp
of the City, as required by the statute aforesaid, shall have been fully ac-
complished before such contract shall be fully effective, and
WHEREAS, the parties hereto hereby find and determine that the
form and contents of the "Water Contract" hereinafter appearing will accom-
plish the mutually desired purposes for the mutual - benefit of the parties and
shall become a final contract between them if duly authorized, and should
therefore be submitted to an election to determine such authority under and
subject to the provisions hereinafter appearing, and that upon thus becoming
a final contract, same shall-supersede the contract of the same pasties pre-
viously authorized at an election held within the City of Corpus Christi for
such purpose and formally entered into on the 16th day of November, 1950,
thereby effecting a rescission of said previous contract.
NOW, THEREFORE, in consideration of the muti;al benefits to accrue
to the parties upon the, adoption of the following contract, and in considera-
tion of the obligations to be discharged by the City and the District under the
provisions of the proposed contract, the parties hereto agree as follows:
I.
That the following "Water Contract" be and same is hereby approved
Jas the contract to be finally,•made and entered into between the parties here-
under:
WATER CONTRACT
Between
LOWER NUECES RIVER WATER SUPPLY DISTRICT
and
CITY OF CORPUS CHRISTI
THE STATE OF TEXAS
COUNTY OF . NUECES
THIS AGFQM4ENT, made and entered into by and between the LOM
NUECES RAVER 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 (hereinafter referred to as the "District "),
acting by and through its President and Secretary, hereunto duly authorized
by the Board of Directors of said District, and the CITY OF CORPUS CHRISTI,
Nueces County, Texas, a municipal corporation, organized and existing under
the laws of the State of Texas (hereinafter refe ;red to as the "City"), act-
ing by and through its City Manager, hereunto duly authorized by the City
Council of said City,
W I T N E S E T H:
WHEREAS, The District, by the aforementioned Acts of its creation,
is vested with all the rights, powers, privileges and duties conferred and
Imposed by the general lave of this State now in force or hereafter enacted
applicable to Water Control and Improvement Districts grunted under author-
ity of Section 59, Article 16 of the Constitution, including the right to
issue bonds for any and all purposes permitted to Water Control and Improve-
ment Districts and including, but without limitation of purposes not speci-
fied, the acquisition by construction or otherwise of plants and improvements
for storing, treating, purifying, protecting, transporting, transmitting,
delivery and disposition of, through sale or otherwise, of flood, storm flow
or underground water for uses permitted by law; and further, 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 service
rendered with the time and manner of payment to be determined by contract;
and further, to enter into contract or contracts with any town, city or public
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agency situated wholly or partially within the boundaries of the District
to operate all oT any part of the District's properties, plants and fftcil,
ities upon terms and conditions to be specified in such contract or con-r
tracts; and
WEERFiAS, Under plans formulated, prepared and approved by the Dis-
trict and its engineers for the construction 9f new impounding facilities
by means of a new dam on thg Nueces River just below the present Mathis
Dam, there is to be created a reservoir of much greater capAcity, pffering
to the City a much needed and more abundant source of water supply than
t#at afforded by the present facilities at Lake Corpus Christi now owned
by the District; and
WBBREAS, By virtue of an election held in the District for such
purpose s in accgrdance with the requirements of law thereunto appertaining,
the District's Board of Directors has been duly authorized and empoye .Ted to
issue bottds of the District in an amount sufficient to permit it to perform
its agreements pith respect to the construction and completion of the new
reservoir project aforesaid; pnd
WHEREAS, The parties hereto cons #der that it will be to their
mutual benefit and advantage to enter into the covenants and agreements
hereinafter set out in order that the District may construct the reservoir
project and thus afford the City a much needed increase of water supply
and a much more abunAant source of water than would otherwise be available;
and
WHEREAS, The District's engineers have determined that the amount
of water which will be available upon completion of the aforesaid dam and
reservoir will be entirely adequate for all present and reasonably fore-
seeable requirements to furnish the City with a direly needed additional
water supply to insure it the ability to meet its present requirements and
for its future growth and development; and.
WHEREAS, The City is now the owner and holder of Water permit
No. 933 and its amendments, issued by the Board of Water Engineer of the
State of Te?Caas, wherein the said City is authorized to appropriate and use
not to exceed 500,000 acre feet of water per annum from the unappropriated
waters of the Nueces Fiver for domestic and municipal, manufacturing,
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r'
recreation, mining and irrigation purposes, and to impound for such pur-
poses 500,000 acre feet of said waters, the full benefit of which Permit (/
can not be realized by the present impounding facilities; and /
WHEREAS, The parties hereto have mutually agreed upon the prop- /
osition that it is feasible and economically advisable to provide that
the City shall hereafter operate and maintain the dam and impounding facil-
ities, as well as such wells, well sites, pumping equipment and gathering
system now owned by the District; and
WHEREAS, Pursuant to the authority of and in full compliance with
the provisions of Article 1109e, the Distri,ot and City have heretofore duly
entered into a certain contract for supplementing the City's water supply,
and which said contract is now in force; and
WHERMS, The said interim supplementary water supply offered the
City by the District under the,aforesaid agreement is to be superseded
upon execution of this agreement, the said previous agreement or contract
to be hereby rescinded in favor of this agreement which shall thereupon
take the place of and stand in lieu of said previous agreement; and
WHIpREAS, The parties hereto are given the power to make and en-
ter into this contract pursuant to the provisions of Chapter 342, Acts of
the 51st Legislature of Texas at its Regular Session in 1949 (being Ar-
ticle 1109e as amended), the said authority of the City to so contract now
having been confirmed by an election duly held for that purpose in said
City in accordance with and as required by said Statute.
NOW, THEREFORE;
In consideration of the sums to be paid by the City and the obli-
gatiou4 to be discharged by the District under the terms and provisions
hereof hereinafter specified and of the other mutual covenants and agree-
ments herein contained, the parties hereto do hereby agree and bind them-
selves unto each other as follows:
SECTION 1. Upon the execution of this contract the District
shall proceed as expeditiously as may be reasonably possible to construct
and complete the reservoir project in accordance with the plans and speci-
fications therefor heretofore finally approved by the District and its en-
gineers, and which are acceptable to the City. The District covenants,
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however, that the City shall be protected in its use of the present reser-
voir and well and pumping facilities to the end that the City shall con-
tinue to have a supply of water uninterfered with by and during construc-
tion operations.
SECTION 2. It is understood that the City shall not be nor become
liable to the District or to any other person or persons for any part of
the cost or expense of acquiring or constructing said dam and impounding
facilities, or for any part of any cost or expense arising out of any claim
of any }.ind or character for damages or compensation for taking possession
of or the flooding or submergence of any lands or for the construction of
said dam or any other installation comprising the District's reservoir
project, it being especially understood and agreed by the parties that the
acquisition and ownership of said dam and reservoir shall be solely the
responsibility and liability of the District, and the City, except as here-
in provided, shall not and will not claim or assert any ownership rights of
any kind in said land or reservoir project. It is also understood and
agreed that the District shall herein indemnify and save the City harm-
less from qnd against any and all claims of every kind and character aris-
ing out of or incident to the purchase, acquisition and construction of
said reservoir project and the use and flooding of any and all reservoir
lands. Also the City shall not be liable for and the District shall save
it harmless from any claims of any kind or character which may result from
defective engineering or defective construction of the impounding facili-
ties to be constructed by the District, and the District shall at its sole .
expense replace and repair W of such facilities as may be proven to be
defective or shall fail on account of faulty engineering or original con-
struction. To this end, the District shall require appropriate construc-
tion bonds to guarantee the construction of the facilities in accordance
with the plans and specifications as prepared by the engineer and approved"
by the District.
SECTION 3. The City agrees and covenants that when the dam and
impounding facilities have been completed and have been approved by the
District's engineers and accepted by the District from the contractor or
contractors to be engaged by the District for such construction, and ac-
k
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cepted by the City, such City will from and after such acceptance, and con-
tinuing during the term hereof, assume all liability and responsibility
for the up -keep, operation, maintenance and repair of said dam and all
other facilities necessary to said reservoir project an4 agrees at its
sole cost and expense to at all times keep And maintain said dam and other
facilities in a safe and acceptable operating condition and repair. Should
any part of said dam or other facilities comprising a part of said reser-
voir project be damaged or destroyed by reason of any act or negligence of
the City, the City shall without delay cause said damages or destroyed prop-
erty to be repaired, and restored to its original safe and acceptable operat-
ing condit #on. The District agrees to provide alld maintain policies of in-
surance offering coverage and protection deemed adequate by the District
and the City against damage or loss of the reservoir facilities during con-
struction and for a mi.nimnm period of three years after construction is
completed, and further, after acceptance by the,City, to contribute all
monies received from losses under such insurance to the cost of repairing
the damage and to the restoration of the facilities. The City agrees after
said acceptance it will pay the cost and expense of repair and restoration
of damage caused by any act or negligence of the City over and above the
• amounts which may be derived from insurance as aforesaid.
SECTION 4. It is expressly provided that should the District's
engineers consider that any part of said dam or any other facilities com-
prising the said project be dangerous and subject to damage and destruction
because of neglect on the part of the City, and should the City's engineers
gonsider tot the same is not in such dangerous condition, the matter in
dispute pull be referred to a recognized civil engineer acceptable to the
City and the District, whose decision shall be final and binding upon the
parties hereto. In the event such engineer shall find said dam or any
other facilities comprising a part of the said reservoir project to be
dangerous and subject to damage or destruction because of neglect on the
part of said City, the City shall immediately proceed to repair such con-
ditions. It is understood and agreed that, should any such destruction
or damage occur or such threatened destruction or damage be established,
the City will proceed within thirty days thereafter to begin the restora-
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t
tion of said reservoir project, continuing, however, at all times the pay-
ment of all sums due the District ]hereunder. Should the City fail to begin
the said restoration and repair of such dam and reservoir project within
said thirty days, or should restoration or repair work once begun by the
City be discontinued for any period of thirty consecutive days or more, the
District may at its own option and election make such restoration and re-
pairs and in such event the City shall be fully obligated to reimburse the
District therefor to the extent of the actual cost thereof, which reimburse-
meat shall be over and above and in addition to all other charges herein-
after prescribed to be paid by the City.
SECTION 5. The City further agrees that upon the execution hereof
and during the term of this contract, it will take over and be responsible
for the up -keep, operation, maintenance and repair of all wells, well sites,
pumping equipment and the gathering system pertaining thereto now owned by
the District. At such times as the City shall determine that such wells,
well sites, pumping equipment and gathering system are no longer required
to supply water for the City's use, the up -keep, operation, maintenance and
repair shall revert to the District.
SECTION 6. The construction, maintenance and operation of recrea-
tion or other facilities or improvements on lands of the District appurte-
nant to the reservoir project and all lease agreements with respect thereto
or with respect to any other lawful use to which the properties may be put
shall be accomplished only by mutual agreement between the District and
the City, and all revenues derived therefrom shall be the property of the
City.
SECTION 7. It is agreed and understood by the parties hereto that
the'City shall indemnify and save the District harmless from and against
any and all claims of every kind and character arising out of or incident
to the operation and maintenance of the impounding facilities, well field
facilities, and recreational or other facilities located on lands of the
District, and from any claims arising from the granting or operation of
concessions thereon, or the execution of leases thereof.
SECTION 8. It is understood and agreed that the City shall use
reasonable di,ligen,ce to prevent the pollution or contamination of any of
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the water supply referred to herein from any cause, including that which
might result from the exploration for and development of oil, gas or
other p1nerals. It is further agreed and understood that the City shall
abide by and enforce all reasonable rules and regulations as may be es-
tsblishe4• and promulgated by the District for the prevention of pollution
and contamination.
SECTION 9. The District shall grant and does hereby grant unto
the City all necessary easements and rights -of -way together with the right
df ingress and egress of, along, and across all lands owned by the Dis-
trict or hereafter acquired by it in said reservoir project. Such ease-
ments and rights -of -way shall be granted to the City for the operation and
maintenance of said project.
SECTION 10. It is mutually agreed and understood that the City
shall. have complete and exclusive rights to all water impounded by the
reservoir project during the time this contract shall remain in force.
The City binds and obligates itself, however, that it will offer to and
provide all inhabitants of the District with water service upon a basis
of equality and uniformity without discrimination in accordance with the
City's rate schedules and requirements applicable to the various classifi-
cations of service, including such requirements as the City may prescribe
for subdivisions and new consumers.
SECTION 11. For and in consideration of the District's under-
taking the construction of the new reservoir project, its permitting the
City to take and receive water from the present reservoir facilities and
wells owned by the District in accordance with the provisions hereof, the
City covenants and agrees that upon the execution hereof and during the
period required in the construction and completion of the reservoir proj-
ect, and in addition to performing all other obligations imposed upon it
by the terms of this agreement, such City will well and truly pay to the
District the sum of $25,000.00 on or before the 15th day of each month
next succeeding the date of the execution of this contract (construction
period), such monthly payments to continue until the reservoir project
has been completed and accepted by the District. Upon the completion and
acceptance of said reservoir project by the District, the City shall well
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and truly pay to the District the sum of $40,000.00 on or before the 15th
day of each month next succeeding the date of completion and acceptance
of the reservoir project (post construction period), such monthly pay-
ments to continue as the minimum amounts to be due the District so long
as this contract shall remain in force. In consideration of the afore-
said minimum monthly payments of $40,000.00 after completion and accept-
ance of the reservoir project (post construction period), the City shall
be entitled to take and receive from the reservoir facilities a maximum
of fourteen billion (14,000,000,000) gallons of water per year. The City
further agrees that it shall be obligated to pay for all amounts of water
taken and received by it in excess of fourteen billion (14,000,000,000)
gallons in accordance with the following schedule:
(A) 14,000,000,001 gallpne to 25,000,000,000 gallons
at the rate of 3 1/4¢ per 1,009 gallons;
(B) 25,000,000,001 gallons to 30,000,000,000 gallons
at the rate of 3¢ per 1,000 gallons;
(C) 30,000,000,001 gallons to 35,000,000,000 gallons
at the rate of 2¢ per 1,000 gallons;
(D) All over 35,000,0001000 gallons at the rate of
1 120 per 1,000 gallons.
The City shall well and truly pay to the District all such additional pay -
meats as may become due under the foregoing schedule, on or before the
15th day of the month next succeeding the end of each twelve months post
construction period. After the completion of the new reservoir facilities
and the City's acceptance thereof, the District agrees that should any
event or condition arise not attributable to any acts or negligence of
the City resulting in the reservoir supply being inadequate to permit the
City to take deliveries of water in the amount of at least one billion
(1,000,000,000) gallons per mouth, the City shall be obligated to pay only
the sum of three and one -half cents 0 1/2¢) per 1,000 gallons of water
received by it from said facilities in each such month. All amounts to be
received by the District, as above provided, shall be paid by the City out
of and from the gross operating income and revenues derived from its water
system, such amounts to constitute normal and necessary operating expense
of such system, and the District shall have no right to demand payment out
of any funds derived from taxation.
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SECTION 12. For the purpose of measuring the quantities of water .
taken and received by the City during the post construction period for
computation of the payments to be made by the City to the District during
such period, as hereinabeve provided, the City agrees at its own expense
to install in suitable places agreeable to the District such master meters, -
check hkers and recording devices as are mutually satisfactory to the
parties in order to measure all water which shall be received from the
reservoir project by the City or any person, firm, corporation or munici-
pality, who shall have contracts with the City to take water from said
reservoir project, and such as will permit, the determination of quanti-
ties in unite of 1,000 gallons, or in such units as may be readily con-
verted into 1,000 gallon quantities. The City shall cause the water meters
and recording devices to be read on the let, day of each month by its repre-
sentative and one'xrepresentative of the District shall be present at such
readiW unless the District shall on any such occasion waive its right to
be represented. The duly authorized representatives of both parties shall
have free access to said meters and recording devices at all reasonable
times. On any reading date, master meters and check meters shall be read
simultaneously; and, if the total amount of water recorded is substantial-
ly the same, the difference in reading being within the tolerance for er-
xors permitted for each meter, then the average readings shall be accepted
as correct. If, however, the differences can not be accounted for within
permissible tolerances, actual tests shall be made at the City's expense
of any meter which appears to be inaccurate, and the one shown to be ac>
curate 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 dgtermined by joint agreement between
representatives of the District and the City. Said meters shall be in-
spected and tested every six months by and at the expense of the City, of
which test the City* shall. give the District reasonable notice and the Dis-
trict shall have the right to have a representative present. In addition,
either party may aV its own expense and upon five days notice to the other,
inspect and test said meters? The City shall not later than the 5th day
of each month furnish the District a copy of the results of each monthly
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reading for the District's records. All billings from the District to
the City for monthly payments to be made by the City under the provisions
of Section 11 hereof shall be based upon and computed by the monthly read-
ings taken as aforesaid.
SECTION 13. It is agreed and understood that the District will
prepare and furnish the City bills or statements for all amounts due to
be paid the District for water taken and received by the City on or before
the 10th day of each month and that the City will remit such amounts to
the District on or before the 15th day of the same month. Should the City
for any reason fail to make such payments as thus prescribed, it shall be
liable for, and in addition to the amounts billed, agrees to pay the Dis-
trict $25.00 for each day it is delinquent in the payment of any monthly
statement.
SECTION 14. It is further agreed and understood that the City
shall retain ownership of the Water Permits heretofore issued to it by the
Board of Water Engineers of the State of Texas, as mentioned in the pre-
amble hereof, and that such Water Permits need not be assigned or trans-
ferred,tQ the District. The City hereby agrees, however, that the Dis-
trict shall have full and complete right to possess and impound for the
City all waters which the City is authorized to appropriate under the afore-
said Permits, and that the District shall act as the City's agent in exer-
cising water rights under such Permits.
SESCTION 15• The District agrees that so long as this contract
shall be in force, it will not enter into any other contract to supply
water out of the reservoir project herein contemplated. The City agrees
that surplus water will be made available by it under appropriate con-
tracts with municipalities and other consumers located outside the Dis-
trict and with agricultural users for irrigation purposes either within
or without the District. It is provided, however, that prior to enter-
ing into such contracts the City shall first have the approval of the
District. With regard to surplps water sold to municipalities and other
consumers outside the District, it is agreed that the City shall compen-
sate the District therefor under the provisions of Section 11 hereof, but
that as regards any surplus water sold for irrigation purposes, it is
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agreed that the compensation received therefrom by the City shall be divi-
ded between the City and the District under arrangements arrived at when
the contract therefor is presented to the District for its approval, and
that any and all amounts to be received by the District under such arrange -
meats for irrigation purposes shall be in addition to those amounts to which
it shall be entitled, and the water so taken shall not be construed as water
received by the City, under the provisions of Section 11 hereof. As used
in this Section, the term "surplus water" shall be construed to mean water
not necessary to meet the requirements of consumers within the District,
other than irrigation users$' or to fulfill the City's contracts in exist-
ence at the time of the execution of this agreement, and contracts subse-
quently executed under the provisions hereof.
SECTION 16. This agreement'shall be in Rill force and effect from
and after the date of its execution and sbal� continue in effect for a term
of thirty years' thereafter, provided however, that in the event all bonds
and other indebtedness of the District relating to this reservoir project
as shown by the records of the District have been fully paid, discharged,
redeemed and retired prior to the expiration of said thirty -year term,
then this contract shall be considered to have expired and be terminated
at such earlier date and shall not continue in effect or be binding upon
either of the parties hereto upon such earlier termination. Should this
Contract be terminated upon the expiration of the thirty -year period afore-
said but prior to the retirement of all the District's bonds and other in-
debtedness relating to this project, the parties agree to enter into a new
contract with the provisions thereof to be based on circumstances prevail-
ing at that time but providing among other things that the City shall pay
for water received by it from the District's reservoir facilities only such
rates as may provide the District with the amounts required to pay and dis-
charge its then outstanding bonds and other indebtedness relating to this
project, when due, and to provide the District with such amounts as may be
required to meet its reasonable administrative and operational expenses.
Should this contract be terminated prior to the expiration of the thirty -year
period aforesaid through the previous retirement of all the District's bonds
and other indebtedness relating to such project or, upon the termination of
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any new contract entered into upon expiration of the original thirty year
period as above provided for, then the City shall have the option of
taking title to the reservoir properties from the District under such
procedure and for such minimum payments as may be required by law at that
time, and under agreements giving full recognition to the rights of the
District's inhabitants to continue to receive water from the reservoir
facilities under such rate schedule as the City may be furnishing water
to other consumers similarly situated. It is further provided that the
City may at any time tender the District the amount of money required to
pay off and discharge all the District's boucle and Qther indebtedness re-
lating to said project outstanding at such time, and in that event the
District shall be obligated to devote such money to the discharge and re-
tirement of such bonds and other indebtedness relating to said project in
accordance with law and in compliance with the redemption provisions per-
taining to such bonds and other indebtedness relating tq said project, and
when same have been retired and cancelled, this contract shall terminate
as above provided.
SECTION 17. It is further understood and agreed by each of the
parties hereto that where, due to Acts of pod, public calamity, inability
to procure labor and material, or other cause reasonably beyond the Dis-
trict's control, it is unable to construct, or is delayed in the construc-
tion of the reservoir project, it shall not be held in default of the pro-
visions hereof and not be liable to the City in any manner or sum whateo-
ever. In the event, however, that for reasons beyond its control, the
-District shall be interrupted in the construction of the reservoir project,
once begun, and it should appear the District will never be able to com-
plete same without financial assistance, the City may, at its option, give
such financial assistance as it may legally give in order to complete the
project. In such event the parties shall be empowered to renegotiate and
reform the terms of this agreement to accord with the circumstances then
existing.
SECTION 18, In order to make this contract fully binding, each
of the parties has been duly authorized hereunto and in the execution here-
of by proper opdinance or resolution of its respective governing body,
ULPM
certified copies of,which are attached hereto.
SECTION 19. All of the terms, conditions and obligations of this
agreement shall be binding upon and inure to the benefit of the parties
hereto, their successors and assigns, but neither party shall assign this
contract or any part thereof without the prior written consent of the
other.
SECTION 20. Upon the execution of this contract in conformity
with and purquant to the authority of Article 1109e, Vernon's Annotated
Texas Civil Statutes, 1925, as amended, the contract of the same parties
entered into on the 16th day of November, A. D. 1950, shall be wholly super-
seded hereby and upon this contract being in full force and effect said
previous contract shall be rescinded, otherwise to remain binding and fully
operative.
IN WITNESS YjSBREOF, The parties beretp have caused this instru-
ment to be executed by their duly authorized representatives, this the
day of , A. D. 195_.
LOWER NUECES RIVER WATER SUPPLY DISTRICT
ATTEST: By
President
Secretary
APPROVED AS TO TTIEGAr. FORM:
Attorney for Lower Nueces River
Water Supply District
CITY OF CORPUS CHRISTI, TEXAS
ATTEST: By, a
City Manager
City Secretary
APPROVED AS TO LEGAL FORM:
City Attorney
- 13 -
7.7.
Upon execution of this Agreement to Contract, the governing au-
thority of the City of Corpus Christi shall, eubpiit the foregoing contract
to an election of its qualified voters, who own taxable property within the
City and who have duly rendered the same for taxation, on the proposition of
the City's authority to execute same in conformity with the terms of Article
1109e V.A.T.¢.S. 1925, as amended. The said election shall be held as soon
as conveniently and legally possible after the District has notified the
City that it has received permission from the State Board of Water Engineers
to construct the reservoir facilities; provided, however, that in addition
to the authority of said election and as conditions precedent to the final
execution thereof by the parties thereto, it is further agreed that each and
all of the following gvents shall have first trgaspiked:
(a) That the dam and water storage facilities at Lake
Corpus Christi have been properly rgleaged from the encum-
brance of the Deed of Trust and Supplement to Deed of Trust,
both dated June 1. 1948, given by the City to Mercantile
National Bank at Dallas, Trustee, to secure payment of City
of Corpus Christi Waterworks Revenue Bonds, Series 1948 and
1948 -A, dated June 1, 1948.
(b) That the proposition for the right and authority
of the City of Corpus Christi to sell and Convey said dam
and reservoir properties to the Lower Nueces River Water
Supply District, shall have been authorized by a majority
vote of the qualified voters of the City at an election
held for that purpose within such City in compliance with
law, including Article 1112 V.A.T.C.S. 1925, as amended.
(c) That all properties comprising the dam and water
storage facilities so released from the Deeds of Trust,
aforesaid, have been duly sold and conveyed to the District.
(d) That the proposition for the authority of the
Board of Directors of the District to issue bonds with
which to finance the reservoir project referred to in the
aforesaid contract shall have carried at an election held
for the purpose in said District, as required by law.
I
III• ,
In the event the aforesaid contract be authorized by the quali-
fied voters of the City in compliance with the aforesaid Article 1109e,
and each and all of the other conditions precedent above mentioned have
been fulfilled, the said contract shall be duly executed by the authorized
officers of the District pursuant to resolution of its Board of Directors,
and shall be duly executed by the authorized officers of the City pursuant
to ordinance of its City Council.
F
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 day of , 1952•
r
LOWER WEBS RIVER WATER SUPPLY DISTRICT'
ATTEST: By
President
Secretary
APPROVED AS TO LEGAL FORM:
Attorneey, Lower Nueces River' Water
Supply District
CITY OF CORPUS CHRISTI, TEXAS
ATTEST: By
City ManagOr
Secretary
APPROVED AS TO LEGAL FORM:
City Attorney, City of Corpus
Christi, Texas