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HomeMy WebLinkAbout18576 ORD - 11/29/1984AN ORDINANCE AUTHORIZING THE EXECUTION OF A WATER SALES CONTRACT WITH THE CITY OF THREE RIVERS; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS. SECTION 1 That the City Manager 1s hereby authorized to execute water sales c with the City of Three Rs, iverall a e fully set forth in the contractra contract copy of which is attached hereto and made a part hereof, marked Exhibit "A" SECTION 2. That upon written request of the Mayor or five Council members, copy attached, to find and declare an mergency due to the need of executing the abovementloned water sales contract at the earliest practicable date, such finding of an emergency is made and declared requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency measure this the 29th day of November, 1984. ATTEST • Litt' Secretary � \ MAYOR / THE CITY CORPUS CHRISTI, TEXAS APPROVED 2Ml,OAY OF NOVEMBER, 1984 J. BRUCE COCK, CITY ATTORNEY S'Assi 18576 City1.1 DEED AND WATER CONTRACT BETWEEN THE CITY OF THREE RIVERS, TEXAS AND THE CITY OF CORPUS CHRISTI, TEXAS wREREAS, the City of Corpus Christi, Texas, (hereinafter called Corpus Christi), and the City of Three Rivers, Texas, (hereinafter called Three RiveTs), desire to provide for adequate water supplies for' their citizens and obtain the most sudieious conservation and management of the water resources in the Nueces River Basin for the mutual benefit of both cities, and, WHEREAS, the City of Three Rivers possesses Certificate of Adjudication No. 21-3215, which authorizes, in part, Three Rivers to opetate and maintain an existing 220 acre foot reservoir on the FrIO River, to enlatge that reservoir to 300 acre feet, and to construct a 1,900 acre foot reservoir, also located on the Frio River and, WHEREAS, the CIty of Corpus Christy, Tetaas, has constructed the Choke Canyon Reservoir on the Frio River and has determined that sufficient water ea available In the Trio River which will be Impounded by the Choke Canyon Reservoir to serve the existing customers of Corpus Chrtsti, and provide to Three Rivers the volumes of water hereinafter set forth without the necessity of Three Rivers constructing such 1900 acre foot reservoir, and, WHEREAS, Thcee Rivers desires to purchase two percent (29) of the designed storage and two percent (22) of the firm yield of Cho,e Canyon Reservoir, said yield being purchased being that yield produced by the coordinated operations of Lake Corpus Christi and Choke Canyon Reservoir, such firm yield being not less than 139,000 acre feet of water, said purchase to be based on the terms and conditions hereinafter set forth, and, WHEREAS, Corpus Christi, for constderations hereinafter set forth, desires to sell such two percent (22) portion of the designed storage and firm yield of Choke Canyon Reservoir, such yield 5.0.0 5500 yield produced by the coordinated operations of Lake Corpus Christi and Choke Canyon, to the City of Three Rivers, such sale to Thtee Rivets being upon the terms of con- ditions hereinafter set forth; and, WHEREAS, Three Rivers and Corpus Christi also desire to enter into a contract which shall provide for the purchase of water by Three Rivers from Corpus Christi above and beyond the volume of water permanently purchaeed by this agrhement; NOW THEREFORE, this deed :and contract (hereinafter called the contract), this day made and entered into by and between Corpus Chrrstr, Texas acting herern by and through its duly authorized officers, and Three Rivers, Texas acting by and through its duly authorized officers: wITNESSETH. EtioW ALL MEN BY THESE PRESENTS, that the City of Corpus, Texas, for and in consideration One Million Seven Hundred Fifty Thousand and No/100 Dollars (51,750,000.00) and other good and valuable considerations to it paid in hand by the C1ty of Three RIvets, Texas, the receipt and sufficiency of which is hereby acknowledged, has bargained, sold and conveyed and by these does bargain, sell and convey unto the City of Three Rivers, Texas, whose address is P. 0. Box 398, Three Rivers, Tex., two percent (28) of the designed storage and two (28) of the firm yield of Choke Canyon Reservoir, such yield hereby conveyed being the yield produced by the coordinated operations of Lake Corpus Christi and Choke Canyon Reservoir, such firm yield be.ng not less than 139,000 acre feet of water. TO HAVE AND TO HOLD the above described two percent (29) of the 0,50 0000058 and two percent (29) of the firm yield of Choke Canyon Reservoir as above described, together with all and singular the Lights, privileges and appurtenances thereto and In anywase belong.ng to the City of Three nlvers, Texas, its suc- cessors and assigns, forever, subsect to the terms and provisions hereinafter set forth. And the City of Corpus Christi does hereby bind itself, its successors and assigns, 00050050t and forever defend all the singular the said two percent (2%) of the designed storage and two percent (2%) of the firm yield of Choke Canyon Reservoir as above described unto the said City of Three Rivers, Texas, its successors and assigns, against every person, corporation, entity, including governmental entitles and utilities, whomsoever lawfuly claiming or to claim the same or any part thereof sub- ject however to all the covenants, conditions and terms hereinafter set forth. For 01 purposes of this contract and conveyance, two percent (25) of the design storage and two per- cent (29) of the firm yield of Choke Canyon Reservoir as above described shall conclusively be deemed to be 3,000,000 gallons of water a day. This conveyance and agreement is made subject to the following terms and conditions: Section 1. By entering into this agreement, the City of Three Rivers agrees not to construct the 1,900 acre foot dam authorized by Certificate of Adpidication No. 21-3215. Upon the consul.), , mation of the Contract, Three Rivers will notify the Texas Water Commission that such 1,900 acre foot reservoir is being aban- doned. Three Rivers further agrees to permanently transfer and, by this Instrument does permanently transfer to Corpus Christi all management, control and coordination responsibilities over Certificate of Adjudication No. 21-3215, except to the extent that such Certificate of Ad3udication No. 21-3215 pertains to the current Channel Dam located on the Frio River over which dam Three Rivers shall retain full rights, including management, control and rmintenance responsibilities. The City of Three Rivets will also retain all other water storage rights authorized by Certificate of Adjudication No. 21-3215 which relates to the current channel dam located on the Frio River which dam is USed to impound water for the purposes of allowing the City of Three Rivers to withdraw water from the Frio River. This permanent transfer of management, control and coordination responsibilities over Certificate of Adjudication No. 21-3215 by Three Rivers to Corpus Christi may be used by the City of Corpus Christi in the operations of Choke Canyon Reservoir and in fulfilling its com- mitments to supply water out of the Frio and Atascosa watersheds. In this regard, and subject to the other terms and provisions of this agreement, Corpus Christi shall have the sole dIscretion on the amounts of discharges to be made from Choke Canyon Reservoir and also the sole discretion on the amount of reserves, If any, to be retained in Choke Canyon Resetvoir. Corpus christi shall also have the sole discrrtion in obtaining amendments, if any, to Corpus Christi's existing and future water rights, ncludIng any amendments with respect to any discharges from Choke Canyon Reservoir. Section 2. It is agteed between the parties to this contract that Thtee Rivers, for the consideration herein expressed, shall forever have the right, without the payment hereafter of any additional compensation, to withdraw water from the Frio Rivet at the rate of three mIllton (3,000,000) gallons per day to be used for munictpal, commercial and Industrial purposes. This withdrawal shall be made at Three Rivers existing diversion faci- lities or at such new diversion facilities that may be herinafter constructed by Three RIvers, 01101 which diversion facillties shall be located below the Choke Canyon Reservoir Dam. Unless Corpus Chet,. has glven prior written consent, Three Rivers shall not have the right to make withdrawals of water directly from the Choke Canyon Reservoir Lake. Any withdrawals of water by the City of Three RiVer6 In an amount greater than three million (3,000,000) gallons a day, based upon an average of dally withdrawals over an annual one (1) year period (the annual one (1) year period as used herein being from January 1 to December 31 of each year), shall be paid for by the City of Three Rivers to the City of Corpus Christi at a price sate per thousand gallons as set forth In Section 7 below. Notwithstanding the 0100005005 and provistons of this agreement, it is agreed, however that Three Rivers shall not have, wIthout the prior writ- ten consent of Corpus Christi, the right to withdraw more than 5,000,000 gallons 0155000 on any single day. The right to any volumes of water authorized by the agreement to be withdrawn by Thtee Rivers but not withdrawn by Three Rivers 00 100 facilities as the water flows by such facilities shall pass to and vest .n Colpus Christi. Section 3. If, due to drought conditions, there is insufficient water in the Frio River at the location of Thiee Rivers diversion facilities to satisfy the requirements of the City of Three Rivers, either because of the absence of sufficient natural flow water from the Atascosa River and the Frio River, the absence of water in Choke Canyon Reseivolr capable of being released, or a combination of the two above conditions, then Cowls Christi agrees to furnish water to Three Rivers from wells operated by Corpus Christi located on or near the Frio and/or Atascosa Rivers situated above the City of Three Rivers, the water to be furnished from such water wells when so requested by Three Rivers. Such water well supply will be provided at the quality and ditesian flow rates available from such several wells at the time of request by Three Rivers. However, Corpus Christi makes no assurances as to either quality or quantity of said water well supply. If, due to drought con- ditions, Choke Canyon Reservoir is drained as a result of Corpus Christi making normal dischargesras hereinafter defined; from Choke Canyon Reservoir, including delivery of water to Three Rivers as herein provided and, after such drainage, there is an absence of water in Choke Canyon Reservoir capable of being released In order to satisfy the water needs of Three Rivers and the,. is not sufficient water available from the Frio River or the Atascosa River to satisfy the water needs of Three Rivers, then Corpus Christi, at the request of Three Rivers, as above set forth, will furnish water from the artesian 3100 03 the water wells above described and, upon the arrival of such water from such wells at the Three Rivers withdrawal facilities in the Frio River near Three Rivers, Texas, Three Rivers will commence paying Corpus Christi for such water actually withdrawn at such withdrawal facilities at the price rate per thousand gallons of water withdrawn as provided for in Section 7 of this agreement and will continue to pay for such water from such water wells so withdrawn from the withdrawal facilities on the Frio River until the date Three Rivers requests such wells be turned off. 50 the artesian flow ~ the water wells above described ^ not suf— ficient .sat^~the~~needs^Three Rivers and Three Rivers request Corpus Christi ° turn ~ the pump ~pumps located ~ such wells .. order ° Increase the volume °water produced from such water wells, then, ^ addition ~paying for such water actually =hdraw.by Three Rivers = the Three Rivers .`,~~= facilities atthe price rate per thousand gallons withdi~~provided for in Section ,of this agreement, Three Rivers will also pay the power cost incurred ^. running such pump ~` pumps plus the actual personnel cost and personnel transportation cost Incurred ° Corpus Christi ^ sending personnel ~the well ~~.~.^~ the purposes ofturning ~ such pumps, operating and thereafter turning off such pumps. `^~~^-~"~~` structure provided for ~the preceding sentence for power cost plus ~`son~.and transportation costs only applies when the water wells above described are being used ~ satisfy only the water needs of Three Rivers. If however, atthe time ~becomes necessary, ~provided above ~ this paragraph, for Three Rivers ~ request that pu~'.`~such water wells above described ° turned on `. order ~."., the water needs ° Three Rivers, Corpus Christi ^. then pumping, .. thereafter commences pumping such =~`~`° with the pump'.`located ~ the wells aho~ described !or the purposes ~ trying ° satisfy, ^ part, the water need6^not only Three Rivers but also Corpus Christi and other Corpus Christi water customers (Corpus Christi using the numP(S) located on such wells In order to increase the flow of such wells ° satisfy such ~ed.^then, under such conditions, ~iee Rivers shall pay for such water withdrawn . provided fox ~ Section ,~ this agreement and, inaddition thereto, Three Rivers will pay the proportionate cost ~ the electrical ~other power used ~ operate ~ run the pump'.`~such wells plus the ^...^`~.~~.~`~.`~^~^~`~~....~~^~°~~ de.~^^^.~^ch power cost and personnel and travel cost shall The power cost and personnel and personnel travel cost incurred in the then current year in which Three Rivers withdraws well water as provided in the preceding sentence and in which the pumps on the wells are run, shall be taken in consideration in determining the price of water for the next ering year as provided for in Section 8 of this agreement and, after it has been determined what propor- tionate part of the total price for water for the next ensuing year as determined in Section 8 such power and personnel and transportation cost beats to the total price for water for the next ensuing year as determined in Section 8 (on a cost per one thousand gallon basis), then Corpus Chirstl shall inform Three Rivers, In writing, of such proportionate cost and Three Rivers shall pay, at such time, such cost as such cost bear to the gallons of water from the water wells withdrawn by Three Rivels at its withdrawal facilities under. such conditions. It is agreed that if Corpus Christi shall, for any reason, drain Choke Canyon Reservoir at a rate of discharge greater than the normal discharge rate from Choke Canyon Reservoir, as hereinafter defined in this paragraph and, after such drainage of Choke Canyon Reservoir there is an absence of water in Choke Canyon Reservoir capable of being released in orded to satisfy the water needs of Three Rivers and there is not sufficient water from either the Frio River or the Atascosa River to satisfy the water neede of the Crty of Three Rivers, then Corpus Christi will, at the request of Three Rivers, furnish water from the above described water wells, by artesian flow or, if necessary, by pumping, for the purposes of satisfying the water needs of Three Rivers and under these circumstances and, to the extent that withdrawals do not exceed 3,000,000 gallons of water a day, there shall be no charge to the City of Three Rivers for the water from such wellswhich Three Rivers withdraws from the Frio River at its wrthdrawal facilities located near Three Rivers. To the extent withdrawals of water under such circumstances exceeds 3,000,000 gallons of water a day, Three Rivers shall pay for such wothdrawals over 3,000,000 gallons a day at the price rate per thousand provided for in Sektion 7 of this agreement. Notwithstanding the Provisions Uet forth in Section 10, the payments for this water so purchased under this section shall be made by Three Rivers to Corpus' Christi monthly. Normal discharge rate is defined in this agreement to be as follows: 1. A minimum outflow from Choke Canyon Reservoir of 2,000 acre feet per month is assumed to occur. This would cover any leakage that might occur at the gets and requirements upstream from Lake Corpus Christi. Also, it would provide a perennial flow for recreatoon and fishing purposes. 2. Whenever Lake Corpus Christi water surface is above eleva- tion BB, only the minimum release of 2,000 acre-fest per month is made from Choke Canyon Reservoir. This reduces spills from Lake Corpus Christi from runoff below Choke Canyon Dam site. ' 3. Whenever Lake Corpus Christi water surface is at or below elevation 88, and the ratio of Choka Canyon 000000010 content to Lake Corpus Christi content' (bokh, at,the end'ofAthe preceding month) exceeds the corresponding ratio with 8-fpot drawdown at both reservoirs, the Choke Canyon Ro((servoir release ,tor the current month Is made equal to the Lake Corpus Christi release during the preceding month. Otherwise, only the dvinimun) release of, 2,000 acre-feet per month is made from Chole CanyonReservoir. This equalizes drawdown at the two resedvoirs for recreation purposes and promotes a more constant quality of water by mixing Choke Canyon Reservoir releases with Lake Corpus Christi content. Section 4. measurement: Untreated water delivered under this contract shall be measured by a suitable water meter or meters to be furnished and installed by Three Rivers and kept in good repair by Corpus Christi at or near the place of delivery of untreated water. Corpus Christi shall have the -right to specify the type of meter or meters 00 30 used. Checks as to accuracy of the 00051 00 meters shall be made semiannually ~~~~".~.~~Corpus Christi shall notify Three Rivers ~ writing ten `10`days ^ advance ofany semiannual checks and tests inorder that Three Rivers may have ^ representative present ~ witness such tests. Semiannual tests ~tothe accuracy ~^ meter ~ meters shall be ..°~~"~`.,.~~~. ,If ~th~Corpus Christi ~Three ~~~.. anytime, shall ~=, the other that . desires ^ spe- cial ^~`^^~mete^°~othe.par~°~"~ope~te^ arranging for ^ special test ~be made ~ Corpus Christi. The expense ^ the special test of the meter ~ meters shall ^made bythe party requesting such tests. If, ~ any test, the meter test shall ° found .beinaccurate ° amount exceeding two Per- cent '`.^"~.^ny~~~...~^°.".'~ch meters shall be corrected for any period ofinaccuracy thereby which ^. defini- tely known~-ree^up~.^~~~ch~~cti~sha"~~nd back ~~^ period beginning more than thirty days `=' prior ° the time when such inaccuracy was first made known by Cotner ~~,.the other. ^' for any reason the meter ~ meters are out ^ service ~ that the volume ° water delivered hereunder cannot beascertained ~ computed from meter readings thereof, the water delivered during the period such meter ~ meters are out ofservice shall beestimated and agreed upon wthe parties hereto upon the basis ofthe best data available. Best data avai- lable ~^"~°ene^~~°~amo~ ° water delivered during the period .. estimated '``~~.~..``., the error "the per- centage ~error ° ascertainable bycalibration tests ~ mathe- matical ~`..`^",..~=°...^ma.^."th.qu^.~.,.' delivery by deliveries during the preceding periods under similar conditions ^~the meter was registering correctly. Corpus "~^.. shall read the meter ~ meters ~~ about the last day .^ each month and shall determine from such readings the amount ~ water Three Rivers withdrew -from the"°.`.~. ~~~ Christi °~"~.~~ the recording and integrating instruments ~the meter . meters and shall retain the charts and integrator of all such charts and integratot readings shall be delivered to the City of Three Rivers, by mail, within five days after such readings or made and/or charts removed from the meters. Any duplicate recorders providing charts for. Three Rivers shall be purchased, installed, maintained, and serviced by and at the expense of Three Rivers. Section 5. Maintenance. Diversion facilities constructed by Three Rivers shall be maintained and operated by and on behalf of Three Rivers, subject to the provisions herein contained. Section 6. Indemnity, Three Rivers will indemnify Corpus Christi for any liability which might accrue because of facili- ties constiucted by Three Rivers at its diversion facility, including the existing channel dam or its replacement, or on land or right-of-way owned by Corpus Christi, and Three Rivers assume all responsibility fox adequately maintaining and safeguarding such facilities. This provision is for the protection of Corpus Christi and Three Rivers assumes all responsibility for ade- quately maintaining and safeguarding such facilities. This pro- vision is for the protection of Corpus Christiand Three Rivers and Is not for the benefit of third parties. Section 7. !rise- The price to be charged for untreated water sold by Corpus Christi to Three Rivers shall le whichever of the two fa/lowing prices is the lowest (A) The regular established untreated or raw water rates for municipal customers of Corpus Christi of similar classification, location, and demand requirements, as currently established by the City of Corpus Christi) or (B) The "composite cost of untreated water. as defined in Section 8 hereof. Section B. Composite Cost of Untreated Water. The rate for the composite cost of untreated water shall be calculated on the 1st day of January of each year and shall be calculated on the bases of the City's previous fiscal year and the total water withdrawn. The components for the alternative composite cost of untreated water are as follol: (A) Wesley Seale Cost: all budgeted costs (city fiscal year) emergency coats, debt service and capital expenditures; (B) Choke Canyon Costs: all budgeted costs (city fiscal year), emergency expenditures, debt servIce and capital expenditures; (C) Water Supply Development or Protection: consultants( studies or reports, investigations, legal fees and court costs and any other costs related to the development or protection of the water supply; (D) Future supply facilities, including taxsubsidy, if anY; (E) Administration costs: 25 percent of the costs of operational expenses of the offices of Director of Utilities and Water Superintendent and general city administration costs allocated to the Water Division (annual budgeted expenditures); (F) The total of all of the above costs shall be cre- dited with an income from rental or. lease operations of the supply facilities and the net shall be divided by the total supply system withdrawals; and (G) The total alternate composite cost of untreated water shall be the sum of all cost elements (A) through (F) above, plus an additional element of ten percent (108) of the total of all other composite cost elements, or not less than $0.01 per thousand gallons of water supply system withdrawals by all users. Such additional cost elements, if recognized by all users of water, shall be deposited by Corpus Christi, by Three Rivers and by all other users of water into an escrow fund for use In main- tenance and repair of existing facilities or , construction of *future facilities. Interest accrued on such fund shall be deposited into the escrow fund. Such escrow fund shall be designated as the Water Supply System Escrow Fund and shall be admi- nistered by Corpus Christi. Such additional cost element shall be paid by Three Rivers if paid by all other water users of the system. Sectron 9. Restrictions on Resale - It is distinctly understood and agreed that without prior written consent of Corpus Christi, Three Rivers shall not deliver or sell untreated water obtained under this contract 00001 other persons, firms or corporations except such persons, firms or corporations which are bona fide municipal, commercial or industrial customers of the water distribution system of Three Rivers 500000 do not resell such untreated water, and Three Rivers agrees to bind allOf its customers to the effect that the stipulation contained in this contract, "not to resell untreated water", shall be binding upon each of said custosmrs. This section expressly forbids the resale of untreated water by a customer of Three Rivers to any consumer without written consent to such resale by Corpus Christi. section 10. Payments. Corpus Christi, Texas, shall annually submit a statement to Three Rivers, Texas, indicating the guan- trty of water withdrawn by Three Rivers during the preceding year, such annual period to be from January 1, through December 31, of each year. Any withdrawals by the 010101 Three Rivers In an amount greater than the sum of three million (3,000,000) gallons pet day, times 365 during the preceding year, shall be paid for by the City of Three Rivers to the City of Corpus Christi at the price rate per thousand gallons as set forth in Section 7 above. Three Rivers, Texas shall render payments within thirty (30) days of receipt of such statement. Any cleri- cal error or minor question regarding said statement will not be sufficient grounds to delay payment by Three Rivers; Texas to Corpus Christi, Texas. Any such question shall be promptly settled under the terms of this contract and by the agreement of both parties hereto. Any adjustment in the amount paid as a tesult of such agreement shall be added to or deducted from the following annual bill. section 11. Priorities. Except as hereinafter provided, it is agreed and understood that the first seven hundred fifty thousand (750,000) gallons of water taken each day from the Frio River as set forth in this agreement shall not be subject to any restrictions or curtailment except those as set forth by the City of Three Rivers itself. Should there be a shortage in the basic water soPP1Y, as determined by Corpus Christi, which requires the restricting or curtailing of consumers of water within Corpus Christi, Texas, upon receipt of written notice from Corpus, Christi, the City of Three Rivers, Texas, hereby contracts that, coincident with such restrictions or limitations within Corpus Christi, Texas, the City of Three Rivers, Texas, will limit and restrict all its customers to the same extent, such restrictions and limitations to continue in existence as long as Corpus christi maintains such restrictions and limitations in force and effect for the water customers within the City of Corpus Christi, provided, however, that this agreement with the respect to such restrictions and limitations shall apply only to all volumes of water above and beyond the first seven hundred fifty thousand (750,000) gallons withdrawn by Three Rivers, Texas, each day, the first seven hundred fifty thousand (750,000) gallons of water so withdrawn by the City of Three 500e05000 being subject to the restrictions and limitations of Corpus Christi as set forth in this paragraph. Provided however, it is agreed that if Three Rivers is obtaining water for its use which water comes from the water wells above described in Section 3 of this contract, and the necessity for the obtaining of such water from such water wells was necessitated due to drought conditions as a result of Choke Canyon Reservoir beingIdrained as a result of Corpus Christi making normal discharges from Choke Canyon Reservoir and after such normal discharges there was not, because of the water level In the reservoir, sufficient water capable of being dtscharged from Choke Canyon Reservoir to satisfy the water needs of Three Rivers and also there was not sufficient water available from the Frio River or the Atascosa River to satisfy the water needs of Three Rivers, then the above provision in this paragraph that the first Seven Hundred Fifty Thousand (750,000) gallons of water wtthdrawn by the City of Three Rivers from the FriO River shall not be subject to Inc restrictions and limitations set forth by the City of Corpus Christi shall not apply and all such waters so withdrawn by the Ctty of Three Rivers, under such cir- cumstances, shall be subject to the same restrictions and' cur- tailments the City of Corpus Christi, Texas, has placed on the consumers of water within the City of Corpus Christi. Notwithstanding any of Inc other provisions heretofore set forth In this paragraph, if the City of Corpus Christi, because of a shortage in the basic water supply as determined of Corpus Christi, imposes restrictions and curtailments on the watering of lawns and shrubs for the consumers of water within the City of corpus Christi, Texas, then upon receipt of written notice from from corpus Chrmsti, Inc City of Three Rivers shall, coincident with such restrictIons and curtailMents, impose on the water con- sumers of the City of Three Rivers the same restrictions and cur- tailments with respect to the watering of lawns and shrubs, the 750,000 gallons exception not applying to the circumstances set forth in this sentence. section 12. In conjunction with the City of Three Rivers purchasing two percent (2%) of the designed storage from Choke Canyon Reservoir and also two percent (2%) of the yield of such reservoir as above defined, the City of Three Rivers hereby agrees to pay two percent (2%) Of the maintenance and operating cost of the Choke Canyon Reservoir Dam and the dam's related facilities. Not Included within any such cost are the cost of operations and maintenance of any parks, recreational or any other type of facilities in conjunction with Choke Canyon Reservoir, the City of Three Rivers obligation for two percent 12%) of the operating and maintenance cost being only in congunction with the operation and maintenance of the Choke canyon Reservoir Dam and the dam's related facilities for water supply purposes. The payment of such two percent (2%) cost of the operation and maintenance of the Choke Canyon Reservoir Dam and the dam's related facilities shall be made annually by the City of Three Rivera to the City of Corpus Christi, and, in this congunction, the City of Corpus Christi willnotify the City of ' Three Rivers at least six (6) monbhs Prior to,the date such payment is due by the City of Three Rivers to the City of Corpus Christi of the amount which the City of Corpus Christi estimates such two percent (2%) of the cost of operation and maintenance will be so that the City of Three Rivers can take such steps as are necessary to properly budget for such cost and payment to the City of Corpus Christi. It is agreed and understood that if the amounts of money so paid by the City of Three Rivers to the City of Corpus Christy, as part of the two percent (2%) of the operation and maintenance cost shall be more than was actually needed during such fiscal year for the operation of the Choke Canyon Reservoir Dam and the dam's related facilities, any amounts of such money so paid to the City of Three Rivers above and beyond the actual cost estimated by the City of Corpus Christi shall be credited to the next preceding year's amount which the City of Three Rivers will be obligated to pay for the operation and vaintenance of the Choke Canyon Reservoir Dam and the dam's related facilities. However, should the amount paid by the City of Three Rivers to the City of Corpus Christi be insufficient to cover the actrl two percent (2%) most of the operation and maintenance of the Choke Canyon Reservoir Dam and the dam's related facilities, then Corpue Christi shall give written notice of such deficit to the City 0000000 Rivers and the City of Three Rivers, within one hundred twenty (120) days, shall pay such deficit to the City of Corpus Christi. Provided however, if the deficit amount of such operating and maintenance cost shall be more than triple the amount originally estimated by the City of Corpus Christi for such fiscal year or, 200000t0200 be a need far major repairs to the Choke Canyon Reservoir Dam and the dam's related facilities which caused the two percent (2%) amount of such maintenance and operating cost to exceed triple Inc amount estimated for such fiscal year, arrangements shall be made between the City of Three Rivers and Corpus Christi so as to allow Three Rivers sufficient time to obtain the funds necessary in order to pay Inc two percent (2%) of such operating and maintenance cost which the City of Three Rivers is obligated to pay the City of Corpus Christi pursuant to this paragraph. Section 13. Water Rights Perrdt. As set forth in Section 1, Three Rivers, Texas, agrees that it will not construct the 1,900 acre foot reservoir set forth in Certificate of Adjudication No. 21-3215, but retains all rights to such Certificate of Adjudication except to the extent such rights are transferred to Corkms Christi pursuant to this Contract. It is expressly understood and agreed that this contract shall be submitted to the Texas Water Commission as required by the provisions of Rules of such commission. In this regard, it is understood that Corpus Christi shall bear transpiration and evapo-transpiration losses in transferring water from choke Canyon Reservoir to Three Riverspoint of diversion as presently described in Certificate of Adjudication No. 21-3215. It is further specifically stipu- lated and agreed that the effectiveness of this conveyance and contract Is subject to the approval of the Texas 00000001 00 Water Resources, to the extensuch approval is required. To the extent necessary, corpus Christi agrees to apply for and obtain from the Texas Water Commission an amendment to Permit Number 3358A specifically authorizing a diversion point and diversion rate of water to the extent necessary to carry out the terms, intents and purposes of this contract. If Three Rivers changes its point of diversion after Corpus Christi has amended the Choke canyon permit to establish a point of diversion for Three Rivers, then Corpus Christi shall amend the permit and certificate to authorise the new point of diversion and shall bill to Three Rivers, and Three Rivers shall pay to Corpus Christi, the cost of obtaining the new amendments. Section 14. Default - It Is covenanted and agreed that if either party to this contract shall fail toPerlorm 000 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, seek specific performance of this contract by pro- ceeding as follows: the party not in default shall cause a written notice to be served on the party in default stating specifically the default of this contract and declaring it to be the intention of the party giving the notice to seek specific performance of the centrndt by the defaulting party, thereupon the party in default shall have a reasonable time but in no event more than thirty (30) days after the service of the aforesaid notice in which to remedy or remove the cause or causes stated in the written notice and, if within said period of time the 00000 10 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 000100 01011 be withdrawn. 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 00 5000, then, the party giving Inc ' notice may institute suit against the defaulting party for specific performance of this contract. Any suit for specific performance of this contract pursuant to thelprovisions of thisSection shall be without prejudice to Inc right of either party hereto to collect any amounts then due it from the other party and without °slyer of any remedy to which the party not in default may be entitled for 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 a like or of a different character. Section 15. Force-Majeure- If Corpus Christi should be pre- vented, wholly or in part, from fulfilling its obligations under this contract by season of any act of God, unavoidable'accident, .01, 0! enemy, strikes, fires, needs, conservation of water for those with superior and legal rights to such water, state or federal governmental restraint or regulatione,'or other causes of force ma3eure, or by reason of circumstances reasonably beyond Its control, then the obligations if Corpus Christi to deliver water to Three Rivers, as hereinabove provided, shall be tem- porarily suspended during continuation of such force maseurs. No damage shall be recoverable by Three Rivers from Corpus christi by reason of the temporary suspension of deliveries of water due to any of the causes above mentioned. If Corpus Christi's obli- gation should be affected by any such causes, Corpus christi shall promptly notify Three Rivers in writing, giving full particulars of such force majeure as soon as possible after Inc occurrence of the cause or causes relied 0000, cod Corpus Christi with all resSon8ble speed and dispatch shall act in good faith to remove all such causes of force mageure so that Corpus Christi can resume 051,0501 0! water to Three Rivers as provided by this contract. Section 16. Assignability - This contract may be assigned by Three Rivers only with the prior written consent of the governing body of Corpus Christy, but if assigned, this contract shall be binding upon parties hereto as well as their successors and assigns. Three Rivers hereby agrees that should District be in any way consolldated wath orlbsorbed by Corpus Christi, that Corpus Christi will be substituted in this contract in lieu of DiStr10t whatever such word appears. Sectton 17. Authortty to Execute - In order to make this contract fully bindIng, each of Inc 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 10 Ole other party for attachment hereto. It is agreed and understood that a copy of this deed and contract shall be recorded in the Deed Recotds of Live Oak County, Texas, and in the Deed Records of Nueces COUnty, Tex., for the purposes of carrying into effect the provisions set forth in this agreement. Also this ContZsot and, Deed shall be subrdtted to the NUeCeS Riyer Authority for its approzal. Section 18. All Agreements Contained 10 this Written' Instru- ment - 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. section 19. The terms and conditions of this deed and contract shall be in perpetuity. IN WITNESS WHEREOF, the parties hereto have cause this instru- ment to be executed in several counterparts, each copy of which so executed shall he considered as an original, by their respective duly authorized representatives, this the day of 1984. CITY OF CORPUS CHRISTI, TEXAS 'Yrbity manager ATTEST City Secretary of Corpus Christi APPROVED AS TO LEGAL FORM THIS THE DAY OF 1984 City Attorney APPROVED CN THE DATE OF EXECUTION: Director of Finance CITY OF THREE RIVERS By: Mayor City Secretary The Nueces River Authority, being a part owner of the Choke Canyon Reservoir, hereby consents and approves the above Deed and Water Contract between the City of Three Rivers, Texas, and the City of Corpus Christi, Texas. t ATTEST: NUECES RIVER AU The Three Rivers Water D1Strlct hereby consents and approves the above Deed and Water Contract between the City of Three Rivers, Texas, and the City o£ Corpus Christi, Texas. _THREE RIVERS WATER DISTRICT By: ATTEST: E STATE OF TEXAS g COUNTY OF S , This instrument was acknowledged before me on this the day 1984, by the %gcityaofrtherein City o Corpus Christi, Texas, in the stated• Notary Public, State of Texas My commission expires: Notary's printed name THE STATE F TEXAS g COUNTY OF This instrument was acknowledged before me on this the day of 1984, byMayor of tehCity of Three Rivers, Texas, in the capacity therein STATETHE OF TEXASg COUNTY OF 4 Notary Public, State of Texas My commission expires: Notary's printed name This instrument Was acknowledged before me on this the day of 1984, by Nuecea River Authority, in the capacity therein stated. Notary Public, State of Tex My commission expires: Diary printed name THE STATE F TEXAS g COUNTY OF This instrument was acknowledged before me on this the _ day of 1984 by of the Three Rivers Water District, in the capacity therein stated. Notary Public, State of Texas My commission expires: Notary's printed name Corpus Christi, •s� � _Zy ay of 6 1981 TO THE MEMBERS OF THE CITY COUrICIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance or resolution, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances or resolutions at three regular meetings; I/we, therefore, request that you suspend said Charter rule and pass this ordinance or resolution finally on the date It is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Council Members 1000 THE CIT F CORPUS CHRISTI, TEXAS The above ordinance was passed by the following vote Luther Jones Betty N Turner David Berlanga, Sr Helder Brown Leo Guerrero Dr. Charles W. Kennedy Joe IlcComb Frank Mendez Mary Pat Slavik 18576