HomeMy WebLinkAbout15749 ORD - 09/10/1980AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO ENTER INTO A WATER
SALES AGREEMENT WITH THE SOUTH TEXAS WATER AUTHORITY,
ALL AS MORE FULLY SET FORTH IN THE AGREEMENT, A
SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE
A PART HEREOF, MARKED EXHIBIT "A".
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager be authorized to enter into a
water sales agreement with the South Texas Water Authority, for the sale of
treated water all as more fully set forth in the agreement, a substantial copy
of which is attached hereto, marked Exhibit "A", and made a part hereof.
kliCiallitu
SEP 27 Z84
15749
-AGREEMENT
THE STATE OF TEXAS
COUNTY OF NIECES
This Agreement made this the day of , 1980,
by and between the City of Corpus Christi, Nueces County, Texas, a munici—
pality organized pursuant to the laws of the State of Texas, hereinafter
referred to as "City", and the South Texas Water Authority, a conservation
and reclamation district and political' subdivision of the State of Texas,
hereinafter referred to as "Authority":
W ITNESSET H:
WKEREAS, the City, by virtue of a contract executed August 10,
1955, between the Lower Nueces River Water Supply District, hereinafter
referred to as "District", is the sole purchaser of untreated water from
District and treats said water for distribution to customers of City; and,
WHEREAS, Authority has determined thatit desires to obtain
treated water from City to serve its'customers lying within the established
boundaries of Authority; and,
WHEREAS, Authority intends to construct water trunk mains and
related facilities to transport a fresh supply of potable water from City
to the existing and proposed facilities of Authority customers; and,
WHEREAS, City has determined that at this time sufficient water
is available to serve the existing customers of City, and meet the obliga—
tions of existing contracts of City; and,
WHEREAS, City has determined that at such time as the O. N. Stevens
Water Treatment plant expansion is complete sufficient water will be avail—
able to provide the anticipated requirements of Authority; and,
WHEREAS, City desires to sell water to Authority for the benefit
of City and Authority.
NOW, THEREFORE, for andin consideration of the premises and the
sum of Ten and no/100 ($10.00) Dollars in hand paid to City by Authority,
the benefits arising to both City and Authority through the sale of fresh,
potable water to Authority, and the mutual covenants and agreement of the
parties herein contained, the parties hereby agree as follows:
EXHI13rr- 4
1. Construction of Facilities: Authority shall contruct or cause to be
constructed at no expense to City, a water transmission main, pumping and storage
facilities, and related appurtenances to be arranged to permit taking water by
Authority from the 0. N. Stevens Water Treatment Plant- to serve.portions of_
Nueces and Kleberg Counties. Authority facilities shall be constructed in ac-
cordance with plans and specifications to be prepared by Authority and acceptable
to City and may, at the option of Authority, be built in stages as the needs
of Authority may require. Approval by City shall relate to those matters
which might affect the potential rate and quantity of taking, and land owned
by City. Authority shall be responsible for obtaining and maintaining any
permits necessary for the construction, operation, and maintenance of the
contemplated water main and related appurtenances of Authority.
2. Right -of -Way and Easements: Authority shall be responsible for the
acquistion of all easements, rights-of-way, and land necessary for thecon-.
struction, operation,' and maintenance of the facilities to be built by Authority.
Access to and`use of rights-of-way,;land,or easements held by or.belonging
to City Will'be provided to Authority without Cost where necessary as
deter -mined by plans and specifications of Authority facilities -as prepared
by Authority and acceptable to City.
3. Relocation: If City determines that it -is necessary to adjust or
relocate facilities constructed by Authority in order that lands or easements
belonging to City can be used for water treatment facility improvements,
Authority shall bear the full cost of such facility adjustments or relocations.
City will give due and careful consideration to the location of Authority's
facilities in planning new facilities and will, within the limits of sound
engineering and ultimate total project cost to all agencies, minimize the.
required relocation of facilities by Authority.
4. Quantity: City agrees to sell Authority during the term of this
contract or any renewal or extension thereof, subject to the conditions
hereinafter set forth, a fresh supply of potable water to Authority at the
delivery point hereinafter set forth, and Authority agrees to purchase and-
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take at said delivery point water at the then published outside City limits
(OCL) water rate, and upon terms and conditions applicable to OCL City water
sales as amended from time to time by City, not in conflict with the terms of
this agreement.
In the event that Authority begins.taking water prior to the completion
of the O. N. Stevens Water Treatment Plant expansion, City shall limit the
quantity of potable treated water sold to Authority to three (3) million
gallons per day.
After the completion of the 0. N. Stevens Water Treatment Plant expansion
City agrees to sell Authority potable treated water in such quantity as may be
required by Authority, but limited to a peak, hourly rate of ten (10) million
gallons per day, during the first twelve month period immediately following
the last day of the month in which water is first treated by the expanded
O. N. Stevens Water Treatment Plant. In subsequent years City agrees to sell:
(a) The total amount of water taken by Authority in the previous
twelve-month period plus ten percent (10%), or
(b) The average quantity of water taken by Authority in the .
previous three (3) years plus ten percent.(10%), whichever
is greater.
City also agrees to sell whatever quantity of water Authority requires
in excess of the above mentioned amounts, if, in the opinion of City, such
water is available.
5. Point of Delivery: The delivery point shall be at the outlet side
of the 0. N., Stevens Water Treatment Plant high -service pump building on the
48 -inch main, or at a location mutually agreed on between City and Authority,
such point being the location of the transmission main intake facilities to
be constructed by'Authority in accordance with plans and specifications
prepared by -Authority and acceptable to City. Minimum pressure will be at
or near 50 p.s.i. at the point of delivery. Title to the water shall pass
to Authority when it passes through the meter at or near the point of delivery
at a location mutually agreed on between City and Authority.
6. Connection Fee: City will construct tap on City main upon payment of
the full cost of the connection, consisting of the total cost of labor and
materials required to make said tap, and upon application for service by a
representative of Authority at the Public Utilities Office of City.
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South Texas Water Authority
7. Price: The price to be charged for treated water sold by City to
Authority shall be the regular established and published outside City limit
(OCL) rate at the time of taking, for outside City limits customers of
similar location and demand requirements, as determined by City, not in con-
flict with the terms of this agreement.
8. Quality: It is understood and agreed that City shall use reasonable
diligence to prevent the pollution or contamination of any of the water
supply referred to herein from any cause, and further that such water shall
be treated water of such quality as to meet the requirements of the Texas
Department of Health at the point of delivery.
9. Maintenance and Operation of Facilities: The water main and
related improvements constructed by Authority shall be maintained, operated,
and repaired by Authority subject to provisions herein contained. City shall
have the right to require Authority to maintain its facilities on. City property
or easementsin a manner comparable to the level of maintenance' at similar City
facilities.
10.. Measurement: The water delivered under this contract shall be measured
by a suitable water meter or meters to be furnished and installed by Authority
and kept in repair and maintained by City at or near the point of delivery
of said water. City shall have the right to specify the type of meter or
meters to be used.and to specify the installation design of the meter or meters.
Checks as to the accuracy of the meter or meters shall be made semi-annually
by City, and City shall notify Authority in writing ten (10) days in advance of
all semi-annual checks and tests in order that Authority may have a representative
present as a witness. Semi-annual tests as to the accuracy of the meter or
meters shall be City's expense. If either, City or Authority at any time, shall
notify the other that it desires a special test of any meter, the parties shall
cooperate in arranging for a special test to be made by City. The expense of the
special test of the meter or meters shall be paid by the party requesting such
test. If, on any test, the meter tested shall he found to be inaccurate by an
amount exceeding two percent (2%), then any previous readings of such meter
or meters shall be. corrected for a period of inaccurate measurement thereby
which is definitely known or agreed upon; but no such correction shall cxterd
South Texas Water Authority
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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, the meter or meters are out of service so that the volume of water
delivered hereunder cannot be ascertained or computed from meter readings therof,
the water delivered during the period such meter or meters are out of service
shall be estimated and agreed upon by the parties hereto upon the basis of the
best data available. City shall read the meter or meters on or about the last
day of each month and shall determine from these readings the amount of water
delivered to the Authority. City shall service the recording and integrating
instruments of the meter er meters and shall retain the charts and integrated
readings as a part of the City water records. A copy of all such charts and
.integrated readings corresponding to Authority's consumptioa,as reflected in the.
monthly statement described in Section 12 herein,shall be furnished to Authority
upon Authority's request. Any duplicate recorders providing charts for Authority
shall be purchased, maintained, and serviced by and at the expense of Authority.
11. Fixed Minimum Obligation: Authority is obligated and hereby agrees
to purchase all of its water from City, except water obtained from
existing and future wells which are to be operated in such a way as to augment
the total dependable yield of City's water supply. Authority is not obli-
gated to purchase any minimum amount of water in any billing month during the
period of this contract, but Authority shall pay City a monthly sum equal
to the minimum charge for outside City limits (OCL) customers based on
master meter size in use at the date of billing as prescribed under Section
7 hereof regardless of whether or not any water is used. This minimum pay-
ment is intended to cover the costs of meter readings, testing, billing, and
Other costs which will continue whether or not any water is withdrawn by
Authority.
12. Payments: City shall monthly submit a statement to Authority indicating
the quantity of water sold to Authority during the preceding peter reading
cycle. Authority shall render payments within fifteen (15) days of receipt
of_said statement. Any clerical error or minor question regarding said statement
will not be sufficient grounds to delay payment by Authority to City. Any
such questions shall be properly settled under the terms cf this contract cr.d
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South Texas Water Authority
by the agreement of both parties hereto. Any adjustment in the amount paid
as a result of such agreement shall be added to or deducted from the following
month's bill. Failure to pay the monthly billing within thirty (30) days -.
after such billing date shall authorize City to discontinue furnishing water
to Authority. In the event it becomes necessary to collect such charges through
any court procedure, City shall be entitled to also recover a reasonable attorney's
fee- In the event it becomes necessary for City to stop the selling of water,
due to Authority's failure to pay its water bills, City may require the payment
in advance of the monthly water bill based on the previous bill plus any' adjustments
as a condition to the resumption of furnishing water to Authority.
13- Indemnity: Authority will indemnify City from any liability which
might accrue because of facilities constructed by Authority on land or right-
of -way owned by City or Authority, and Authority assumes all.responsibility
for adequately maintaining' and safeguarding said facilities. This provision
is for the protection of City and Authority, and is not for the benefit.of
third parties.
14_ Restrictions on Sales: Authority agrees not to sell water directly
or indirectly to.any existing or future users located within City's five -mile
extraterritorial jurisdiction in existence as of the effective date of this •
contract_ Specific written approval by City Council of City will be required
before Authority'sells water which Authority has purchased from City to:
A municipality, political subdivision, nonprofit corpora-
tion, special legislative district or authority located
in Nueces County which is not legally constituted as of
the effective date of this agreement.
A municipality, political subdivision, nonprofit corpora-
tion, special legislative district or authority which is
located outside Kelberg or Nueces County.
Any private organization or person desiring to resell to
others.
Any subdivision or lot in any subdivision, whether designed
for single-family, multiple -family, mobile home, commercial,
industrial, or other uses, not included in the initial water.
line construction program of Authority in an unincorporated
area within the area over which City maintains platting
control, or to governmental unit for resale to or in such
subdivision. Written City Council approval will, in this
case, be contingent upon the prior review and approval of
the Planning Commission of City.
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South Texas Water Authority
In the event that written City approval is obtained by Authority
to serve users within City five -mile extraterritorial juris-
diction Authority agrees to bind all of its customers within
the five -mile extraterritorial jurisdiction of City to the
standard water service contract in accordance with Section
55-111, City Code of Ordinances (non-agricultrual use where
partly or wholly beyond the City limits) or in accordance
with Section 55-112 (agricultural use covenant). As a pre-
requisite for receiving water service from Authority at each
individual water tap, each customer or property owner within
the five -mile extraterritorial jurisdiction shall properly
execute and file with the Director of Public Utilities of
City a standard form contract for providing water to property
beyond the City limits. As City five -mile extraterritorial
jurisdiction is extended periodically, each individual cus-
tomer or owner coming within such extended jurisdiction shall
be bound by Authority to the execution of such contract as
provided herein as a condition for continued. water service.
Authority shall make available to City the names and tap loco- -
tions of all direct and indirect customers of Authority who
are located within City five -mile extraterritorial jurisdiction,
and who are to execute contracts under Section 55-111, and
those who are to execute contracts under Section 55-112,
City Code of Ordinances, alL.as_set:•forth herein.
(a) Any new subdivision or lot in any subdivision,' whether
designed for single-family, multiple -family, mobile home,
commercial, industrial, or other uses, not included in
the initial water line construction program of Authority,
-
or to governmental unit for resale to or in such subdivision,
unless the plat of such subdivision has been approved
by the governmental entity having platting jurisdiction and
the developer of the subdivision has installed the sub-
division improvements consistent with the standards set
forth by said governmental entity. If no governmental
entity has such jurisdiction, approval of such plat by
Planning Commission of City must be made prior to City
granting written approval to Authority for sale Of
treated water to such subdivision or lot.
(f)
Any private organization or person not included in the
initial water line construction program of Authority within
an area where no City has platting jurisdiction, or to
governmental unit for resale to such organization.
Authority shall not sell water or allow its customers to resell water in
violation of the restrictions hereinabove set forth. In the event City
determines that Authority and/or its customers are selling or reselling water
in violation of such restrictions City shall notify Authority in writing
stating specifically each violation. Thereupon Authority shall -have thirty
(30) days after service of the aforesaid notice in which to remedy or remove
the cause or causes of each violation stated in the notice to City satisfaction
as determined by the Director of Public Utilities of City. In the event
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Authority fails to remedy or remove said cause or causes of each violation
within said period of thirty days City will add a $100.00 surcharge to
Authority's next regular outside City limit monthly treated water statement
for each instance of violation. Said surcharge(s) will be payable each
month until Authority remedies or removes the cause or causes of each vio-
lation.
Authority agrees to bind all of its customers to the stipulations
contained in this contract.
15. Sales to Agricultural Users: The aforementioned water sales
restrictions notwithstanding, Authority shall be permitted to sell water to.
customers for agricultural use hereby defined as meaning cultivating the soil
harvesting crops, raising livestock, and pasture grazing, without obtaining
prior written approval of City. Said agricultural users shall not be engaged
in retail sales on the premises served by Authority except for retail sales
of non -processed products grown on said premises. Said agricultural premises
shall consist of no less than twenty (20) acres.
16. List of Customers: Authority shall furnish City with a list of all
direct customers and the location of all
construction is completed and the system
of the initial phase of construction and
taps at the time the initial water line
put into operation. Upon completion
commencement of operation of the system
Authority shall from time to time at City request make available to City, at all
reasonable office hours, the names and tap locations of all direct customers.
Authority shall also make available to City the names and tap locations of all'
customerd, direct and indirect, who are located within City's five -mile extraterritorial
jurisdiction, and who are to execute contracts under Section 55-111, and Section
55-112, City Code of Ordinances. At such time as the system has been completed
and is prepared to receive water from City, Authority shall certify in writing
that Authority, the transmission system, and all initial customers are in
compliance with all requirements, terms, and conditions of this agreement.
South Texas Water Authority
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17. City Right to Sell: City retains the right to sell water at points
and to customers not previously served by Authority that are located within
the boundaries of Authority after furnishing written notice to Authority.
City agrees not to sell water directly to any customer located within
Authority's boundaries to whom Authority is willing and able to provide
water service at regular established and published Authority water rates.
18. Storage and Pumping Requirements: Authority shall construct and maintain
or require each of its customers to construct.and maintain ground or overhead
water storage facilities, or a combination of both, in total capacity equal to
one day's supply based on the highest daily use of each customer for any one
day during the previous five years or a reasonable estimate of the highest
. daily use of Authority's customers for the upcoming year, whichever is greatest,
or install rate controllers to assure an even daily rate of take. Pump intakes
directly connected to the water lines of Authority or City's supply main are
prohibited_. Each ground storage unit shall be equipped with pumps and filling
devices and operated so. that Authority's daily rate of take from the point of
delivery will be even throughout each twenty-four hour period with peak hour
demands over the daily average being supplied from Authority's ground and
overhead water storage. The pumps' shall be sized to meet the peak hourly
demands_ Authority shall require its customers of treated water to
install the proper valves or rate controllers to insure an even rate of take
from Authority's water line. The water supply of Authority and of each customer
served by Authority shall meet the requirements of the State Department of
Health for approval of the State Department of Health, if the customer is
directly connected to Authority's.water line.
19. Water Rights: It is mutually agreed and understood that City shall
have complete and exclusive rights to all water impounded by City reservoirs
during the time this contract shall remain in force. City binds and obligates
itself, however, to take the necessary actions within its power and to make the
necessary applications to obtain whatever additional water rights as might be
necessary to adequately meet the needs of its existing contracts, this contract
with Authority, and any future contractual obligations of City. It is also
South Texas Water Authority
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mutually agreed and understood that this contract is subject to City obtaining
any necessary permission from the Texas Water Commission or other regulatory
authority over such matters to sell water to Authority and Authority agrees to
support any future City requests to the Texas Water Commission or other regulatory
authority for said permission. Should it develop that Authority requires a
permit to distribute the water sold to Authority by the City hereunder, City
agrees to support application by Authority to the Texas Water Commission or
other regulatory authority for such a permit.
20. Default: It is covenanted and agreed that if either party to this
contract shall fail to perform any of the covenants or obligations imposed upon
it under and by virtue of this Contract, then in such event the other party
hereto may at its option terminate this Contract by proceeding as follows:
The party not in default shall cause a written notice to be served on the party
in default stating specifically the cause for terminating this contract and
declaring it to be the intention of the party giving the notice to terminate .
the same; -thereupon the party_in default shall have thirty (30) days after the
service of the aforesaid notice in which to remedy or remove the cause or causes
stated in the notice for terminating the contract, and, if within said period
of thirty (30) days the party in default does so remedy or remove said cause or
causes and fully indemnify the party not in default for any and all consequences
of such breach, then such notice shall be withdrawn and this contract shall •
continue in full force and effect. In case the party in default does not so
remedy or remove the cause or causes or does not indemnify the party giving the
notice for any and all consequences of such breach within said period of thirty
(30) days, then, at the option of the party giving the notice, this contract
shall become null and void from and after the expiration of said period. Any
cancellation of this contract pursuant to the provisions of the Section shall
be without prejudice to the right of either party hereto to collect.any amounts
then due it from the other party prior to the time of cancellation and without
waiver of any remedy to which the party not in default may be entitled for
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South Texas Water Authority
violations of this contract. No waiver by either party hereto of any one or
more defaults by the other in the performance of any provisions of this contract
shall operate or be construed as a waiver of any future default or defaults,
whether of alike or of a different character.
21. Rationing of Water: Authority and City agree to the following
stipulations with regard to the rationing of water:
(a) All water sales agreements between Authority
and its customers shall stipulate that should
there be a shortage in the basic supply of
water which requires the restriction or
curtailing of any customer of water within
the city limits'of City that coincident with
such restriction or limitation within City.
Authority will limit and restrict all of its
customers, both direct and indirect through
resale, to the same extent. Such rationing
by City shall be applied uniformly to all
water customers of City.
(b) It is understood by the parties hereto that
industries outside of City and/or District
have a lower water use priority than indus-
tries inside City and/or said District. It
is agreed that any and all industrial users
both inside and outside of Authority boun-
daries which may be directly or indirectly
supplied through the lines and distribution
system of Authority shall be subject to and
bound by the same provisions regarding pri-
orities of users of water as are industrial
users outside of City and/or said District
which are now or may become users of water
directly from City and that all existing
industrial customers of City have priority
over existing and future industrial custom-
ers of Authority. This entire subsection
21(b) shall terminate and be of no further
force or effect upon the retirement of the
outstanding debt of the District in exis-
tence as of the effective date of this
agreement.
22. Right to Terminate Contract: If after four (4) years from the
date of this contract Authority has not provided facilities for the taking of
treated water under the terms hereof, City shall have the right to cancel this.
contract by giving written notice to the Authority of such intention, =City may,if it
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South Texas Water Authority
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sees fit, extend the four (4) year period for any additional period or periods,
retaining the right to terminate this contract at the end of any such extended
period until such time as Authority may complete the first stage of its facilities
and begins taking treated water.
If Authority's need for water from City should cease for a period of at
least thirty (30) days then in such event Authority may, be giving thirty (30)
days written notice to City by registered mail, cancel and terminate this contract
in its entirety. If Authority should elect to give and actually gives City
said written notice, then after the expiration of thirty (30) days from the date
said notice is mailed to City as above provided, this contract and all of its
provisions shall become null and void.
23. Force Majeure: If City should be prevented, wholly or in part, from
fulfilling its obligations under this contract by reason of any act of God,
unavoidable accident, acts of enemy, strikes, fires, floods, conservation of
water for those with superior andlegal rights to such water, governmental
restraint or regulation, or other causes of force majeure, or by reason of
circumstances reasonably beyond its control, then the obligations of City to
deliver water to Authority, as hereinabove provided, shall be temporarily
suspended during continuation of such force majeure. No damage shall be
recoverable by Authority from City by reason of the temporary suspension of
deliveries of water due to any of the causes above mentioned. If City's
obligation should be affected by any such causes, City shall promptly notify
Authority in writing, giving full particulars of such force majeure as soon
as possible after the occurrence of the cause or causes relied upon.
If Authority should be prevented, wholly or in part, from fulfilling
its obligations under this contract by reason of any act of God, unavoidable
accident, acts of enemy, strikes, fires, floods, conservation of water for
those with superior and legal rights to such water, governmental restraint or
regulation, or other causes of force majeure, or by reason of circumstances
reasonably beyond its control, then the obligations of the Authority to take
water from City, as hereinabove provided, shall be temporarily suspended
during continuation of such force majeure. No damage shall be recoverable
by City from Authority by reason of the temporary cessation of the taking of
water due to any of the causes above mentioned. If Authority's obligation
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South Texas Water Authority
should be affected by any such causes, Authority shall promptly notify City
in writing, giving full particulars of such force majeure as soon as possible
after the occurrence of the cause or causes relied upon.
24. Assignability: This contract may be assigned by Authority only with
the written prior consent of the governing body of City, but if assigned, this
contract shall be binding upon parties hereto as well as their successors and
assigns.
25. Term of Agreement: When this agreement shall have been approved by
the parties hereto, the obligations of the parties hereto shall be binding and
shall extend for a period of forty (40) years commencing with the date of
first taking of treated water, subject to the termination provisions herein
contained. Dpon request of either party an extension of the term of this
agreement will be the subject of negotiation between the parties and extended
upon such termsasare agreed upon by the parties at that time, provided
such request for negotiation is communicated in writing at least two (2)
years prior to the termination of this agreement.
26. Authority to Execute: In order to make this contract fully binding,
each of the parties has been duly authorized hereunto and in the execution
hereof by proper ordinance or resolution of the respective governing body, and
certified copies furnished by each party to the other party for attachments. -
hereto.
27. All Agreement Contained in this Written'Instrument: It is agreed
by the parties hereto that this instrument contains in writing all of the
agreements between the parties hereto and that nothing (except those things
required by law) not incorporated herein or by reference shall be binding on
the parties.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed in several counterparts, each copy of which so executed shall be
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South Texas Water Authority
considered as an original, by their respective duly authorized representatives,
this the day of , 1980.
ATTEST:
City Secretary
APP VED:
i DAY OF , 1980:
J. BRUCE AYCOCK, CITY ATTORNEY
CITY OF CORPUS CHRISTI, TEXAS
By
R. Marvin T. -.d, City Manage -
ATTEST: SOUTH TEXAS WATER AUTHORITY
By
5 1/. AUIhU.:.st
sem.----
6Y COUNCIL-- -
SECRETARY
South Texas Water Authority
a •
That the foregoing ordinance was read for first time and passed to its
second reading on this the .23 day of !! J , 19 fD , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance was read for second time AO passed to its
third reading on this the gO day of , 190 , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregoing ordinan a wareat for th third time and passed finally
on this the (0 day o , 1910 , by the following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the /Q day of
ATTEST:
Cx4y Secretary
APPROVED:
73 DAY OF
J. BRUCE AYCOCK, CITY ATTORNEY
...lit:2e
, 19S0:
By 6'_GC.� c•
Assistant City
MAY
CORPUS CI CHRISTI, TEXAS
Y OF
.11
MOTION
moved and
seconded the motion that the ordinance authorizing the City Manager to enter
into a water sales agreement with the South Texas Water Authority, read on
the first two of three readings on April 23 and April 30, 1980, respectively,
be amended prior to the third and final reading by amending the agreement
as follows:
1. Delete from paragraph numbered 1 the words "with plans and
specifications for each stage receiving individual approval by City before
the start of construction of that particular stage" at the end of the second
sentence.
2. Add to paragraph numbered 4 the words "not in conflict with the
terms of this agreement" at the end of the first sentence of the first para-
graph.
3. Add to paragraph numbered 7 the words "not in conflict with
_the terms of this agreement" at the end of the first sentence.
4. Delete from paragraph numbered 11 the words "the existing
and future wells within the boundaries of Authority" at the end of the first
sentence and substitute the following words in lieu thereof: "existing and
future wells which are to be operated in such a way as to augment the total
dependable yield of City's water supply."
5. Delete from paragraph numbered 14 the entire subsection (a)
and in lieu thereof add the following:
"(a)
A municipality, political subdivision, nonprofit corpora-
tion, special legislative district or authority located
in Nueces County which is not legally constituted as of
the effective date of this agreement."
6. Reletter subsections (b) through (e) as subsections(c) through
(f), and add a new subsection (b) to hereafter read as follows:
"(b) A municipality, political subdivision, nonprofit corporation,
special legislative district or authority which is located
outside Kleberg or Nueces County."
Delete from the relettered subsection (f) the words "governmental
entity" and substitute therefor the word "City."
Delete from the last paragraph of pahagraph numbered 14 the entire
second sentence.
7. Add to paragraph numbered 17 the words "after furnishing
written notice to Authority" at the end of the first sentence.
8. Delete the entire paragraph numbered 21 and in lieu thereof
substitute the following:
"21. Rationing of Water: Authority and City agree to the following
stipulations with regard to the rationing of water:
(a) All water sales agreements between Authority and its customers
shall stipulate that should there be a shortage in the basic
supply of water which requires the restriction or curtailing
of any customer of water within the city limits of City that
coincident with such restriction or limitation within City,
Authority will limit and restrict all of its customers, both
direct and indirect through resale, to the same extent. Such
rationing by City shall be applied uniformly to all water
customers of City.
(b) It is understood by the parties hereto that industries outside
of City and/or District have a lower water use priority than
industries inside City and/or said District. It is agreed
that any and all industrial users both inside and outside of
Authority boundaries which may be directly or indirectly
supplied through the lines and distribution system of
Authority shall be subject to and bound by the same provi-
sions regarding priorities of users of water as are industrial
users outside of City and/or said District which are now or
may become users of water directly from City and that all
existing industrial customers of City have priority over
existing and future industrial customers of Authority. This
entire subsection 21(b) shall terminate and be of no further
force or effect upon the retirement of the outstanding debt
of the District in existence as of the effective date of
this agreement."
9. Add the following as the second paragraph of paragraph numbered 23:
"If Authority should be prevented, wholly or in part, from fulfilling
its obligations under this contract by reason of any act of God, unavoidable
-2-
accident, acts of enemy, strikes, fires, floods, conservation of water for
those with superior and legal rights to such water, governmental restraint or
regulation, or other causes of force majeure, or by reason of circumstances
reasonably beyond its control, then the obligations of the Authority to take
water from City, as hereinabove provided, shall be temporarily suspended
during continuation of such force majeure. No damage shall be recoverable
by City from Authority by reason of the temporary cessation of the taking
of water due to any of the causes above mentioned. If Authority's obliga-
tion should be affected by any such causes, Authority shall promptly
notify City in writing, giving full particulars of such force majeure as
soon as possible after the occurrence of the cause or causes relied upon."
10. Delete the entire paragraph numbered 25 and in lieu thereof
adopt the following provisions:
"25. Term of Agreement: When this agreement shall have been
approved by the parties hereto, the obligations of the parties hereto shall
be binding and shall extend for a period of forty (40) years commencing
with the date of first taking of treated water, subject to the termination
provisions herein contained. Upon request of either party an extension of the
term of this agreement will be the subject of negotiation between the parties
and extended upon such terms as are agreed upon by the parties at that time,
provided such request for negotiation is communicated in writing at least
two (2) years prior to the termination of this agreement."
PASSED yurf„� , /6i / 9 e