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Home My WebLink About025392 RES - 07/22/2003RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ON BEHALF OF THE CITY OF CORPUS CHRISTI THE INTERRUPTIBLE WATER SUPPLY CONTRACT BETWEEN LAVACA-NAVlDAD RIVER AUTHORITY AND CITY OF CORPUS CHRISTI, TEXAS; 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 under 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, in 2001, the City and LNRA entered into an Interruptible Water Supply Contract that made 4,500 acre-feet of interruptible water available to the City, and, subject to permitting, gave the City an option of purchasing an additional 7,500 acre-feet of interruptible water; and WHEREAS, LNRA obtained authority from the Texas Commission on Environmental Quality to make the additional 7,500 acre-feet of interruptible water available to the City; and WHEREAS, this additional 7,500 acre-feet of interruptible water is available with a high degree of dependability and at a very economical price; and WHEREAS, the interruptible water would be very beneficial to the City, its citizens, and the customers it serves in the long term, and would be especially beneficial during recurring drought conditions in the Nueces River watershed; 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 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 Chdsti, Texas, which is attached to this ordinance as Exhibit A and incorporated into this ordinance for all purposes. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word, or provision of this resolution is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it does 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 of this ordinance be given full force and effect for its intended purpose. R33718A1,doc 02539 City Secretary APPROVED: 9th day of July, 2003, THE CITY OF CORPUS CHRISTI Mayor R33718A1.doc 3 Corpus Christi, Texas day of ) Ix ,2003 The above resolution was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Melody Cooper Henry Garrett Rex A. Kinnison Bill Kelly Jessie Noyola Mark Scott R33718A1.doc 02,539' CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Finance of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officer that the money required for the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. City Council Action Date: July 15, 2003 Agenda Item: (Caption as it should appear on the agenda) Resolution authorizing the City Manager 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; and providing for severance. Amount Required: $ 359,175 Fund Name Fund No. Org. No. Account Project No. Amount No. Water 4010 30260 520190 359,175 Total Certification Not Required Direct I Services Date: FIRST AMENDMENT TO INTERRUFIIBLE WATER SUPPLY CONTRACT BETWEEN LAVACA~NAVIDAD RIVER AUTHORITY AND CITY OF CORPUS CHRISTI, TEXAS This First Amendment to the July 24, 2001 Intermptible Water Supply Contract between the Lavaca-Navidad River Authority and the City of.(2Ol:pUS Christi, Texas (this "First Amendment") is made and er,terad into as of this ~4~ day of 1 2003, the "Effective Date" by and between the Lavaca-Navidad River Authority (the "LNRA") and the City of Corpus Christi, Texas (the "City"). WHEREAS, on July 2% 2001, the LNRA and the City entered into an interruptible water supply contract ("the Contract") wherein LNRA agreed to sell to the City 4500 acre- feet of water per annum on an interruptible basis; and WHEREAS, the City agreed to purchase the 4500 acre-feet of water and to pay the LNRA for all such water, whether or not the City actually took delivery of any or all of the 4500 acre-feet of water in any ~ear; and WHEREAS, LNRA delermined that an additional supply of up to 7500 acre-feet of water per annum might be available on an interruptible basis; and WHEREAS, the LNRA and the City agreed in the Contract that should the LNRA receive all the necessary authorizations to enable the LNRA to sell and deliver the additional supply of 7500 acre-feet of wa~r per annum to the City, the LNRA would notify the City of the availability of said supply !and the City would notify the LNRA if the City desired to purchase the additional 7500 acre-feet of water; and WHEREAS, the City a~reed in the Contract, that should the City agree to purchase the additional 7500 acre-feet ot water that it would do so on the same terms and conditions under the Contract for the Cit34's purchase of the initial 4500 acta-feet of water per annum; and WHEREAS, since the lime that the parties entered into the Contract, the LNRA has received all the necessary authorizations and through this precess has determined that the reliability of the availability of the 7500 acrc-feet of interruptible water is less than the reliability of the availability of the imtial 4500 acm-feet ofintermptible water; and WHEREAS, due to these changed cimumstances, the parties have detrnnined that it would be appropriate to agree U~n new terms and conditions for the purchase and sale oftbe addihonal 7500 acrc-feet of intCrruptible water. NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual benefits and provisions hereinafter contained in this First Amendment, the LNRA and the City agree that the Contract betWeen the LNRA and the City is amended as follows: 2003-313 07/22/03 rverladm~nlP~ORDICONTRAC~lnt~'~tible Water Sup First Amendment 7500 aeft Final O62003.doc Res. 025392 Lavaca-Navidad River Authority ] I~ [~[~:XE D Section 3.01(c) is stricken and this New Section 3.01(c) is substituted to read as follows: (c) LNRA has determiged that 7500 acre-feet of additional water may be available annually on asa interruptible basis in Lake Texana and has obtained authorization from the T{exas Commission on Environmental Quality (TCEQ) to appropriate and deliver Such additional water to the City. The City agrees to reimburse LNRA for all reasonable expenses incurred in obtaining TCEQ authorization to appropriate and deliver such additional water. The City agrees to reimburse LNRA such expenses within 45 days following billing and LNRA agrees to provide appropriate documentation of expenses if requested by the City. (i) If LNRA determines that the 7500 acre-feet of water or a portion thereof is available, LNRA agrees to notify the City. After receiving notice from LNRA that suchi additional water is available, the City shall have forty- five (45) days ini which to notify LNRA that it agrees to accept delivery of such additional water. If the City decides not to accept delivery of the additional available water, the City agrees to pay LNRA for such water at the rote per a~re-foot of water the "Option Price" of 30% of the rate being charged for the water supplied pursuant to the December 14, 1993 Water Delivery and Conveyance Contract between LNRA and the City. (ii) If the City accepts delivery of the additional available water, the City agrees to pay LNRA for such water at the rote per acre-foot of water "Interruptible Water Rate" of 50 % of the rate being charged for the water supplied Imrsuant to the December 14, 1993 Water Delivery and Conveyance Contract between LNRA and the City. - 1N WITNESS WHEREOF, this First Amendment to the lntermptible Water Supply Contract dated July 24, 2001 between the Lavaca-Navidad River Authority and the City of Corpus Christi, Texas, is executed as of the date first written above on behalf of the LNRA and the City by their respective authorized officers, in multiple counterparts, each of which shall constitute an original. LAVACA-NAVIDAD RIVER AUTHORITY Sharla Vee Strauss Board President CITY OF CORPUS CHRISTI, TEXAS By: Name: Title: 2