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HomeMy WebLinkAbout024535 RES - 07/24/2001RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ON BEHALF OF THE CITY OF CORPUS CHRISTI THE INTERRUPTIBLE WATER SUPPLY CONTRACT BETWEEN LAYACA-NAVIDAD RIVER AUTHORITY AND CITY OF CORPUS CHRISTI, TEXAS, AT THE TERMS AND CONDITIONS SET FORTH IN THE CONTRACT AS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT A; AND PROVIDING FOR SEVERANCE WHEREAS, in 1993 the City of Corpus Christi and the Lavaca-Navidad River Authority ("LNRA") entered into a Water Delivery and Conveyance Contract, and pursuant to that contract the City built the Mary Rhodes Pipeline, completed in 1998, which presently conveys to the City 41,840 acre-feet of water annually for municipal and industrial purposes; and WHEREAS, LNRA presently has available 4,500 acre-feet of intermptible water, and may, subject to permitting, have available up to an additional 7,500 acre-feet of interruptible water with a high degree of dependability and at a very economical price; and WHEREAS, said intermptible water would be very beneficial to the City, its citizens, and the customers it serves in the long term, and would be especially beneficial in the short term under the present drought conditions which have persisted in the Nueces River watershed for approximately eight years; and WHEREAS, because of the Mary Rhodes Pipeline the City can utilize the interruptible water at an extremely advantageous price. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager is hereby authorized to execute on behalf of the City of Corpus Christi the Interruptible Water Supply Contract Between Lavaca-Navidad River Authority and City of Corpus Christi, Texas, attached hereto as Exhibit A and incorporated herein for all purposes. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this resolution shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this resolution for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. 1JRB4504.002 2 ATTEST: Armando Chapa City Secretary APPROVED THIS THE I t/ DAY OF Jmes R. Bray, Jr., City Attorney Smuel £ ~&~, Jr. -'~-/ Mayor, The City of Corpu~lJ~risti ,~ ~, ~ ,2001: 1JRB4504.002 INTERRUPTIBLE WATER SUPPLY CONTRACT BETWEEN LAVACA-NAVIDAD RIVER AUTHORITY and CITY OF CORPUS CHRISTI, TEXAS ,2001 EXHIBIT A TABLE OF CONTENTS PAGE RECITALS .................................................................................................. 1 ARTICLE I .................................................................................................. 2 Section 1.01. Definitions ........................................................................ 2 Section 1.02. Interpretation ..................................................................... 3 ARTICLE II ................................................................................................. 3 Section 2.01. Sources of Water for the City ................................................. 3 ARTICLE III ................................................................................................ 3 Section 3.01. Delivery and Acceptance Requirements; Title ............................. 3 Section 3.02. Measurement of Water ......................................................... 5 Section 3.03. Payments by the City ........................................................... 5 Section 3.04. Billing ............................................................................. 5 Section 3.05. Quality of Water ................................................................. 6 Section 3.06. Texas Natural Resource Conservation Commission Jurisdiction ....................................................................... 6 ARTICLE IV ................................................................................................ 6 Section4.01. Reporting Requirements ....................................................... 6 ARTICLE V ................................................................................................. 6 Section 5.01. Regulatory Approvals .......................................................... 6 ARTICLE VI ................................................................................................ 6 Section 6.01. Removal of Liens ............................................................... 6 ARTICLE VII ............................................................................................... 7 Section 7.01. Term ............................................................................... 7 Section 7.02. Termination by LNRA ......................................................... 7 Section 7.03. Termination by the City ........................................................ 7 PAGE Section 7.04. Notice of Termination .......................................................... 8 Section 7.05. Option to Renew ................................................................ 8 Section 7.06. Default ............................................................................ 8 Section 7.07. Force Majeure ................................................................... 8 Section 7.08. Assignment ....................................................................... 9 Section 7.09. City Audit ........................................................................ 9 Section 7.10. Notices ............................................................................ 9 Section 7.11 No Third-Party Beneficiary ................................................... 9 Section 7.12. Governing Law, Entire Agreement, etc .................................... 10 ii INTERRUPTIBLE WATER SUPPLY CONTRACT This Interruptible Water Supply Contract, dated as of , 2001 (this "Contract") is between the LAVACA-NAVIDAD RIVER AUTHORITY, a conservation and reclamation district, a body politic and corporate and a governmental agency of the State of Texas (herein, together with any successor to its duties and functions, called "LNRA"), organized and existing under the provisions of a series of acts formally compiled as Article 8280-131, Tex. Civ. Stat. Ann., as amended (the "Act"), and the CITY OF CORPUS CHRISTI, TEXAS (herein, together with any permitted successor or assign, called the "City"). RECITALS The LNRA and the City constructed facilities under a December 14, 1993 Water Delivery and Conveyance Contract which are used to supply the City water from the LNRA in the amount of 31,440 acre-feet per year on a permanent basis and 10,400 acre-feet per year on a temporary basis. The City has concluded that additional supplies of water are needed to satisfy projected demands for water for municipal and industrial purposes within its boundaries, and existing and potential service areas. Because of the bay and estuary release provision in the December 16, 1994 Amendment to Certificate of Adjudication No. 16-2095, Lake Texana's firm yield of 79,000 acre-feet per year is reduced by up to 4,500 acre-feet to a firm yield of 74,500 acre-feet per year. LNRA has existing contracts, including the December 14, 1993 Water Delivery and Conveyance Contract with the City, to sell the entire 74,500 acre-feet per year. The remaining up to 4,500 acre-feet per annum authorized under Certificate of Adjudication No. 16-2095 is available as an interruptibIe water supply. In order to maximize the beneficial use of available water supplies, the City desires to purchase and receive available interruptible water from the LNRA, and the LNRA desires to sell and convey available interruptible water to the City. Water rights in Lake Texana are jointly owned by LNRA and the Texas Water Development Board (TWDB) and LNRA is acting as TWDB's agent in selling interruptible water and dedicating revenues for the purposes described below. LNRA desires to dedicate revenue generated from the sale of available interruptible water to environmental enhancement, recreational projects within the Palmetto Bend Project and the Lavaca-Navidad River basin and water conservation. Dedication of revenues for these purposes is in the public interest and will repay the citizens of Jackson County for their prior support of the project through ad valorem taxes. IN CONSIDERATION of the foregoing and the mutual benefits, covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the LNRA and the City agree as follows: ARTICLE I Section 1.01. Definitions. In addition to the terms defined above, the following terms shall have the meaning assigned to them below wherever they are used in this Contract, unless the context clearly requires otherwise: "Authorized Representative" means either of the two persons at the time designated as such in a written certificate which in the case of the City's representative is signed on behalf of the City by the City Manager and which is furnished to LNRA, and, in the case of LNRA's representative, is signed on behalf of LNRA by the General Manager, and is furnished to the City. "Available" or "Actually available," with respect to the interruptible water supply, means water in excess of the 74,500 af/yr delivery obligation and bay and estuary release obligations that is available for delivery and may be delivered from Lake Texana to City. "December 14, 1993 Water Delivery and Conveyance Contract" means the contract between LNRA and the City dated December 14, 1993 that provides, among other things, that the LNRA will construct facilities for and deliver water to the City and the City will construct a pipeline and booster pumps sufficient to take water in the amount of 31,440 acre-feet per year on a permanent basis and 10,400 acre-feet per year on a temporary basis. "Delivery Point" means the mutually agreeable point or points at which water is delivered to the City by LNRA under the December 14, 1993 Water Delivery and Conveyance Contract. "Force Majeure" is defined in Section 7.07 of this Contract. "General Manager" means the General Manager of LNRA and any successor, assistant or designee who, pursuant to law and proper proceedings, is empowered to carry out the duties of the General Manager. "Interruptible Water" means up to 4,500 acre-feet of water that is the difference between Lake Texana's original firm yield of 79,000 acre-feet and the current firm yield 74,500 acre-feet of water LNRA has contracted to sell, as more specifically described in the December 16, 1994 Amendment to Certificate of Adjudication No. 16-2095 and up to an additional 7,500 acre-feet or more of water agreed to be sold and purchased pursuant to Section 3.01(c). Interruptible Water, absent written agreement of the Parties, will be determined to be available only when the level of Lake Texana is 43 feet above mean sea level or greater. "LNRA" is defined in the introduction of this Contract. "LNRA Project Operating and Maintenance Expenses" means the reasonable and necessary expenses defined in the December t4, 1993 Water Delivery and Conveyance Contract. "Lal~e Texana" means the lake and related facilities located in Jackson County, Texas, which are presently owned by LNRA and TWDB. 2 "Lake Texana West Delivery System" means the facilities that as of the date of this Contract are owned by LNRA to supply water to the City. "Person" includes any individual, corporation, govern_mental entity, partnership, joint venture, business association, or other organization or entity. "State" means the State of Texas. "TNRCC" means the Texas Natural Resource Conservation Commission or any successor agency for the State performing substantially the same functions. Section 1.02. Interpretation. The caption headings of this Contract are for reference purposes only and shall not affect its interpretation in any respect. Unless the context otherwise requires, words of the masculine gender shall be construed to include correlative words of the feminine and neuter genders and vice versa. This Contract and all the terms and provisions, including exhibits, hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of this Contract. ARTICLE II Section 2.01. Sources of Water for the City_. The City avails itself of the benefits of TEX. GOV'T CODE, Section 791.026 (Vernon Pamph. 2000) (Texas Interlocal Cooperation Act) and all other applicable laws, to obtain part of its water supply from LNRA as provided in this Contract. ARTICLE III Section 3.01. Delivery_ and Acceptance Requirements: Title. (a) Subject to the terms and conditions of this Contract, LNRA agrees to sell, convey and deliver to the City at the Delivery Point interruptible water from Lake Texana in amounts up to 4,500 acre-feet per annum, when available, for municipal or municipal and industrial use, and the City agrees to purchase and take at the Delivery Point up to 4,500 acre-feet per annum of interruptible water, if available, for industrial or municipal use, and to make payment for available interruptible supply water, whether or not taken. LNRA agrees to commence delivery of interruptible water and the City agrees to begin taking intermptible water from the Delivery Point in the amounts provided herein, or to pay for such water, pursuant to Section 3.03(a), whether or not taken, no later than August 1, 2001. The City shall also pay expenses directly attributable to delivering the interruptible water through payments calculated pursuant to Section 3.03(b) of this Contract, on the date the City begins taking water pursuant to this Contract. (b) The LNRA's obligation to provide the water under this Contract is interruptible to assure the supply of water for bay and estuary releases as required by Certificate of Adjudication No. 16-2095B. LNRA will notify City by telefax, email or telephone (confirmed in writing) of the availability or anticipated availability of interruptible water. At the request of City, as soon as practicable following receipt of notice, LNRA will deliver interruptible water in the amounts requested to the Delivery Point in addition to stored water supplied to the City under the December 14, 1993 Water Delivery and Conveyance Contract. However, in no event will the 3 LNRA be obligated to provide any interruptible water if such delivery will cause the LNRA to not meet its bay and estuary obligation. (c) LNRA has deteimined that additional water (currently estimated to be 7,500 af/yr) may be available on an interruptible basis in Lake Texana and intends to obtain authorization from TNRCC to appropriate and deliver such additional water. The City agrees to reimburse LNRA for all reasonable expenses incurred in obtaining TNRCC authorization to appropriate and deliver such additional water and, in return, LNRA agrees to give the City the option to purchase such additional water at the rate established in this Contract. The City agrees to reimburse [,NRA such expenses within 45 days following billing and LNRA agrees to provide appropriate documentation of expenses if requested by the City. Provided, City may give LNRA written notice to terminate its participation in the proceeding to obtain authorization from TNRCC, and the City shall not be required to reimburse LNRA for expenses incurred after such notification. After receiving notice from LNRA that such additional water is available for sale, the City shall have ninety (90) days in which to notify LNRA that the City agrees to purchase such additional water. If the City notifies LNRA that it agrees to purchase such additional water, the amount of water authorized by the TNRCC shall be added to the amount of water agreed to be sold and purchased in subsection (a) of this section. If requested by the City, LNRA will seek authorization to provide such additional interruptible water to the City on an emergency basis, and the City agrees to reimburse LNRA for all expenses incurred in seeking and obtaining such authorization. (d) Title to the water sold pursuant to this Contract shall pass to the City as and when it passes through the metering equipment located at the Delivery Point. Title to such water remains in LNRA until it passes through said metering equipment. (e) Unless modified by subsequent written agreement, the Parties agree to use the following principles in scheduling and making deliveries of interraptible water: (i) The first water taken after a request by the City under subsection (b) shall be credited as interruptible to the extent of the amount requested. It is recognized that the taking of interruptible water may result in the need to defer the taking of firm water which would ordinarily occur during a particular time period. (ii) The Parties agree to cooperate to maximize the later capture of deferred firm water, whether deferred to accommodate interruptible water or for other reasons such as maintenance or repairs to either the City's or LNRA's water delivery or treatment systems. It is the goal of the parties generally to cooperate to maximize the amount of water the City actually takes under the December 14, 1993 Water Delivery and Conveyance Contract and this Intermptible Water Supply Contract. (iii) It is recognized that in some circumstances the City may not be able to take available interruptible water. If, prior to the end of a calendar year the City has paid for but not taken delivery of the amount of interruptible water subject to subsection (a) of this section, and additional interruptible water is determined to be available, such additional interruptible water up to a total 4 annual authorized delivery may be taken by the City without additional charge. Section 3.02. Measurement of Water. Water supplied to the City under this Contract shall be measured in accordance with Section 4.02 of the December 14, 1993 Water Delivery and Conveyance Contract between LNRA and the City. Section 3.03. Payments by the City_. (a) Whether actually supplied or not, pursuant to Section 4.01(a), the City shall pay for available interruptible supply water at a rate per acre foot equal to 50% of the rate being charged for wmer supplied pursuant to the December 14, 1993 Water Delivery and Conveyance Contract between LNRA and the City. LNRA will bill City monthly for the amount of interruptible supply water determined to be available during the preceding month. (b) The LNRA Project Operating and Maintenance Expenses will incrementally change as the interruptible wmer is supplied. Delivery expenses for interruptible water will be included with LNRA Project Operating and Maintenance Expenses under the December 14, 1993 Water Delivery and Conveyance Contract. (c) All documented om-of-pocket costs incurred by LNRA in developing and entering into this Contract (including legal and consulting fees associated with this Contract, or other costs incurred in connection with this Contract) shall be reimbursed by the City. The City further agrees, if the City decides to purchase the additional water that may become available as provided in Section 3.01(c) above, to reimburse LNRA for all costs, including legal and consulting fees, incurred by LNRA in developing and making available such additional water. (d) All revenue generated by the sale of the available interruptible water above the delivery costs, as described in (b) and (c) of this section, shall be dedicmed by LNRA in the public interest for the development and implementmion of environmental enhancement, recreational projects within the Palmetto Bend Project and the Lavaca-Navidad River basin and water conservation. (e) No tax revenues or other monies in the General Fund of the City shall be pledged to the payment of any amounts to be paid by the City to LNRA under this Contract, nor shall the LNRA have the right to demand payment of any amounts to be paid by the City under this Contract from funds raised or to be raised from taxation by the City. The funds for payment by the City to LNRA under this Contract shall be operating expenses of the City's Combined Utility System, and the revenues of the City's Combined Utility System will be the sole source of monies available to secure the payment by the City of its obligations under this Contract. Section 3.04. Billing. Billing shall be consistent provisions of the December 14, 1993 Water Delivery and Conveyance Comract, Section 4.06. Section 3.05. Quality_ of Water. LNRA makes no representations, and shall have no duty or responsibility, with respect to the quality of the water in Lake Texana furnished by LNRA or the suitability of the water provided by LNRA for the City's purposes. The City agrees that any variation in the quality or characteristics of the water furnished or available hereunder shall not reduce or abate the City's obligations to pay for such water. Section 3.06. Texas Natural Resource Conservation Commission Jurisdiction. If the City believes the rates for service hereunder from time to time are unreasonable, the City will be entitled to request the TNRCC to fix reasonable rates pursuant to the provisions of Section 11.036-11.041 and 12.013 of the Texas Water Code or if the City determines that TNRCC has no jurisdiction, the City may enforce its contractual rights in court. ARTICLE IV Section 4.01. Reporting Requirements. LNRA agrees to submit annual written reports to the TNRCC in accordance with the rules of the TNRCC. ARTICLE V Section 5.01. Regulatory_ Approvals. This Contract shall be effective upon filing with the Texas Natural Resource Conservation Commission, or successor agency, as required by TNRCC rules, and upon approval by TWDB of the sufficiency and allocation of the rates and charges, and other provisions directly related thereto for the sale of water contained herein. This Contract is subject to the rules and regulations of TNRCC. Other governmental approvals required to furnish and take water, more fully identified in Section 7.02 and 7.03 below, are not preconditions to this Contract's effectiveness, but the failure to obtain said approvals may provide a basis for termination. Each party will cooperate with the other in obtaining all necessary regulatory approvals and permits. All expenses incurred in obtaining the foregoing regulatory approvals and permits shall be paid either directly by the City, or, if paid by the LNRA, shall be reimbursed to LNRA by the City. ARTICLE VI Section 6.01. Removal of Liens. If any lien, encumbrance or charge of any kind based on any claim of any kind (including, without limitation, any claim for income, franchise or other taxes whether federal, state or otherwise), shall be asserted or filed against any amount paid or payable by the City under or pursuant to this Contract or any order (whether or not valid) of any court shall be entered with respect to any such amount by virtue of any claim of any kind, in either case so as to interfere with the payment of such amount to LNRA then the City will promptly take such action to the extent permitted by law (including, but not limited to, the payment of money) as may be necessary to prevent, or to nullify the cause or result of, such interference. ARTICLE VII Section 7.01. Term. The term of this Contract shall be contemporaneous with the term of the December 14, 1993 Water Delivery and Conveyance Contract, Section 10.01. 6 Section 7.02. Termination by LNRA. This Contract may be terminated by LNRA if it becomes illegal or impossible for LNRA to perform its obligations under this Contract as a result of the occurrence of any one or more of the following: (a) the cancellation, amendment or other limitation by any local, state or federal agency of any of the permits, amendments, licenses or authorizations required for water delivery or the appropriation of water from Lake Texana for municipal or industrial use, or for the sale to the City of the water to be furnished hereunder, or for the operation of the Lake Texana West Delivery System or the operation of Lake Texana, or (b) the promulgation or issuance of any order, rule, regulation or determination by a court or governmental agency. Section 7.03. Termination by the City_. This Contract or the portion of the Contract affected thereby may be terminated by the City iff (a) it becomes illegal or impossible for the City to take the water as a result of the occurrence of any one or more of the following: (i) the failure of any local, state or federal agency to issue or approve any of the permits, amendments, licenses or authorizations required for the City's pipeline or pumping stations; (ii) the revocation or modification of any such permit, amendment, license or authorization; or (iii) the promulgation or issuance of any order, rule or regulation or determination by a court or governmental agency. (b) it becomes illegal or impossible for the City to utilize the water furnished or to be furnished hereunder as a result of the occurrence of any one or more of the following: (i) the cancellation, amendment or other limitation by any local, state or federal agency of any of the permits, amendments, licenses or authorizations required for the appropriation of water from Lake Texana for industrial or municipal use, or for the purchase and use by the City of the water to be furnished hereunder, or for the construction or operation of the City's pipeline and pumping stations or the operation of Lake Texana; or (ii) the promulgation or issuance of any order, rule, regulation or determination by a court or governmental agency. Section 7.04. Notice of Termination. If a party desires to terminate this Contract by reason of any of the events described in Section 7.02 or Section 7.03 above, it shall, within three 7 (3) months after it acquires knowledge of such event, deliver to the other party a written notice stating such desire, describing the event and specifying the date on which this Contract is to terminate, which date shall be at least six (6) months from the date of such notice. Section 7.05. Option to Renew. If, at the expiration of the term of this Contract as above provided, City is not in default and this Contract is then in full force and effect, the City shall have an absolute right to renew and extend this Contract jointly with the December 14, 1993 Water Delivery and Conveyance Contract on the terms and conditions providing for the supply at a rate which is reasonable, just and non-discriminatory, provided that City delivers written notice to the LNRA by registered or certified, prepaid and properly addressed first class United States mail of its intention to do so not less than ninety (90) days prior to the expiration of the original term herein provided. Section 7.06. Default. If either party defaults in the observation or performance of any of the provisions, agreements or conditions to be observed or performed on its part under this Contract, the other party may give written notice to the party in default of its intention to terminate this Contract, specifying the failure or default relied upon. Upon the expiration of forty-five (45) days after the giving of such notice, this Contract shall terminate, unless, within such forty-five (45) day period, or such longer period as may be specified in such notice or any amendment of or supplement to such notice, the default specified in such notice shall have been fully cured. Section 7.07. Force Majeure. If by reason of force majeure, either party shall be rendered unable, wholly or in part, to carry out its obligations under this Contract, and if such party gives notice and full particulars of such force majeure in writing, to the other party within a reasonable time after occurrence of the event or cause relied on, the obligations of the party giving such notice (other than obligations for the payment of money), so far as they are affected by such force majeure, shall be suspended during the continuance of the inability then claimed, including a reasonable time for removal of the effect thereof. The term "force majeure" shall mean acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, orders of any kind of the Government of the United States, or any state, or any agency or political subdivision of the United States or any state, or any other civil or military authority, insurrections, riots, epidemics, landslides, lightening, earthquakes, fire, hurricanes, tornadoes, storms, floods, washouts, droughts, arrests, civil disturbances, explosions, breakage or accidents to machinery, transmission pipes or canals, shortages of labor, materials, supplies or transportation, or any other cause not reasonably within the control of the party claiming such inability. The requirement that any force majeure shall be reasonably beyond the control of the party shall be deemed to be fulfilled even though the existing or impending strike, lockout or other industrial disturbance may not be settled but could have been settled by acceding to the demand of the opposing person or persons. The parties shall use their best efforts to remove the cause of any force majeure; provided further, to the extent the inability does not continue the City shall retain its right to receive the volume of water that would have otherwise been delivered, and LNRA shall make delivery of such water as soon as is reasonably possible following resumption of deliveries, or upon such other terms as the parties may agree. Section 7.08. Assignment. The City may not transfer or assign this Contract, or transfer its rights or delegate its duties hereunder, without the consent of LNRA, which consent shall not 8 be unreasonably withheld. Upon any permitted assignment of this Contract, effective as of the date of such permitted assignment, the City shall be released from all of its obligations under this Contract except any pending and unsatisfied obligations as of the date of the permitted assignment. LNRA shall not assign this Contract without the written consent of the City, except to a successor of the duties and functions of LNRA. Section 7.09. City_ Audit. Upon reasonable notice, during normal business hours, the City shall be entitled to inspect and review LNRA records of any costs assessed or incurred under this Contract. Section 7.10. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given when sent by first- class mail, post prepaid addressed if to LNRA: Lavaca-Navidad River Authority P.O. Box 429 Edna, Texas 77957 Attention: General Manager and if to the City: City of Corpus Christi, Texas P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention: City Manager or, in each case, at such other address as may hereafter have been designated most recently in writing by the addressee to the addressor. Section 7.11. No Third-Party_ Beneficiary_. The parties hereto are entering in this Contract solely for the benefit of themselves and agree that nothing herein shall be construed to confer any right, privilege, or benefit on any person or entity other than the parties hereto. Section 7.12. Governing Law, Entire Agreement, etc. This Contract (a) may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same instrument; (b) constitutes the entire agreement between LNRA and the City with respect to the subject matter hereof and is separate and distinct from the December 14, 1993 Water Delivery and Conveyance Contract; (c) shall be governed in all respects, including validity, interpretation and effect, by and shall be enforceable in accordance with the laws of the State of Texas; (d) may be modified only by an instrument signed by the duly Authorized Representative of each of the parties, and (e) shall not be construed as a contract 9 for the benefit of a third party other than a permitted successor or assign of a party. In the event that any clause or provisions of this Contract shall be held to be invalid by any court of competent jurisdiction, the invalidity of such clause or provision shall not affect any of the remaining provisions hereof. Each party may specifically, but only in writing, waive any breach of this Contract by the other party, but no such waiver shall be deemed to constitute a waiver of similar or other breaches by such other party. 1N WITNESS WHEREOF, LNRA and the City have caused this Contract to be executed in their behalf by their duly authorized representatives, as of the date first set forth above. (SEAL) ATTEST: By: Title: LAVACA-NAVIDAD RIVER AUTHORITY By: President and Director (SEAL) ATTEST: By: Title: CITY OF CORPUS CHRISTI, TEXAS By: City Manager APPROVED AS TO FORM: By: Title: 10