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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 -2- 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 - 1 - 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, - 2 - 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, - 3 - 44 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 -4- 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- -5- 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 - 6 - 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 -7- 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. -8 - 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 - 9 - 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 - 10 - 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 - 11 - 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