HomeMy WebLinkAboutC2019-666 - 11/12/2019 - Approved SECOND ADDENDUM TO WATER CONTRACT
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF NUECES §
WHEREAS, pursuant to one water sales contract between the City of Corpus Christi and.
the Beeville Water Supply District, hereinafter referred to as Corpus Christi (or City) and BWSD,
respectively, said contract dated March 4, 1982 (the "Water Supply Agreement") Corpus Christi
agreed to sell water for municipal purposes to BWSD according to the alternate price structures
stipulated therein; and
WHEREAS, Corpus Christi and BWSD agreed to amend certain section of the Water
Supply Agreement pursuant to an agreement captioned "Addendum to Water Contract" approved
by the Corpus Christi city council on May 17, 1988; and
WHEREAS, due to changes in conditions and circumstances of the parties and to clarify
the intentions of the parties, it is the desire of the parties to amend the Water Supply Agreement,
as amended by the Addendum to Water Contract.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is acknowledged by the parties, BWSD and Corpus Christi hereby agree to amend said
Water Supply Agreement, as amended by the Addendum to Water Contract, as follows:
I.
That Section 6., entitled Price, page 4 of the Water Supply Agreement, shall be deleted in
its entirety and a new Section 6 shall be substituted therefor to hereafter read as follows:
6. Price:
(A) The price to be charged for untreated water sold by City to BWSD will be whichever
of the two is the lower:
1. The most recent published untreated or raw water cost adjustment calculated as set forth
by Ordinance adopted by the governing body of Corpus Christi.
2. The "composite cost of untreated water" as defined in Section 7 hereof, or similar
calculation that recognizes all cost elements for providing a water supply applicable to all
water customers, and approved by the appropriate state agency.
(B) When City intends to increase the price for untreated water sold by City to BWSD, the
City will provide the BWSD notice of the proposed change and all information necessary for
BWSD to evaluate the proposed price at least sixty days before the change is to take effect. BWSD
shall give good faith consideration to the proposed new price and shall attempt to provide the City
with its comments on the proposed change not later than thirty (30) days before the proposed
change is to take effect. The City shall provide BWSD with any additional information relating to
SCANI'IED
the change in price requested by BWSD within ten business days after receipt of the request and
shall give good faith consideration to BWSD's comments. City may institute the new price
provided City gave BWSD notice of the price increase as provided in this subsection. BWSD's
failure to submit comments or the submittal of comments relating to the price increase does not
waive any right that BWSD may have to challenge the price increase. BWSD shall be charged
and timely pay for the water at the new price; however, such payment does not waive any right
that BWSD may have to file legal challenge of the price increase with court or agency of
appropriate jurisdiction.
(C) The price charged for untreated water sold by City to BWSD shall include a five cents per
thousand gallon charge for creating or maintaining a future water resources reserve fund from
which to pay water supply development costs that develop additional water supplies or lower the
cost of raw water. Said charge is subject to potential increase not exceeding the cumulative
increase in the consumer price index.
II.
That Section 7., entitled Composite Cost of Untreated Water, as restated by the
Addendum to Water Contract pages 1-2, shall be deleted in its entirety and a new Section 7 shall
be substituted therefor to hereafter read as follows:
7. Composite Cost of Untreated Water: The rate for the composite cost of untreated water
shall be calculated on the first day of January of each year and shall be calculated on the basis of
City's previous fiscal year and the total water withdrawn during the City's previous fiscal year.
The components of the cost of untreated water are as follows:
(A) Wesley Seale Costs: all actual costs (city fiscal year), emergency costs, debt service
and capital expenditures;
(B) Choke Canyon Costs: all actual costs (city fiscal year), emergency expenditures, debt
service and capital expenditures;
(C) Water Supply Development or Protection: consultants' studies,reports,investigations,
legal fees and court costs and any other costs resulting from the development or protection
of the water supply;
(D) Other existing and future regional supply facilities:
1. Other existing regional water supply facilities: all actual costs(city fiscal
year), emergency costs, debt service and capital expenditures of the following
existing regional water supply facilities: Lake Texana Pipeline, LNRA Pump
Station, and Mary Rhodes II Pipeline.
2. Future regional water supply facilities, the tax subsidy, if any: the cost
element defined and set forth in Section 18 of the Water Supply Agreement,if any,
and subject to all of the provisions of Section 18.
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(E) Administrative costs: 25 percent of the costs of operational expenses of the offices of
the Director of Water Utilities and Water Superintendent and general city administration
costs allocated to the Water Division(fiscal year annual expenditures);
(F) The total of all of the above costs shall be credited with any income from rental or
lease operations of the supply facilities and the net shall be divided by the total supply
system withdrawals (fiscal year).
(G) Revenues received to establish and maintain a future water resources reserve fund that
are attributable to the composite cost component described above as the Water Supply
Development or Protection component are to develop additional water supplies or lower
the cost of raw water. If a water supply development or protection project involves use of
such revenues from this fund, then the costs for the project paid with such revenues shall
not be included in the calculation of the composite cost rate as described in this Section 7,
or in the published rate as described in Section 6.
III.
That Section 10., entitled"Maintenance and Operation of Facilities",page 6 of the Water
Supply Agreement, shall be amended by the addition of the underlined text:
10. Maintenance and Operation of Facilities: The water intake facility and related improvements
constructed by BWSD shall be maintained, operated, and repaired by BWSD subject to provisions
herein contained. City shall have the right to require BWSD to maintain the facilities on City
property or easements in a manner comparable to the level of maintenance at similar City facilities.
City staff may provide non-engineering technical assistance as determined to be reasonable by the
City Manager to assist BWSD in review of BWSD's development of the BWSD requests for
proposals for any water intake improvements.
IV.
That Section 20., entitled Rationing of Water, page 3 of the Addendum to Water Contract
shall be amended by replacing Section 20 in its entirety as follows.
consumption by BWSD as the City Manager of City declares the various water shortage
A. Condition I drought possibility BWSD shall reduce its average raw water consumption by
10%.
B. Condition II dreught watch BWSD shall reduce its average raw water consumption by
30%.
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"20. Water Conservation and Drought Management Plan Measures.
a. BWSD agrees that during the term of this contract, it shall have in effect a water
conservation and drought management plan consistent with the City's water conservation and
drought management plan.
b. To the extent that any State regulatory agency requires rationing of water in a manner
stricter that that imposed by the City,BWSD will comply with such stricter method of rationing
water.
c. BWSD shall furnish a copy of any ordinances,orders,or rules adopted by it or its customers
that is adopted to implement the required restrictions, surcharges, or rationing measures.
d. The failure of BWSD to comply with this Section of the contract is a default for which the
Contract may be terminated by the City upon thirty days' notice of default."
Agreed to by the parties by signatures below:
ATTEST: BEEVILLE WATER SUPPLY DISTRICT
•
Gabriela Hernandez William Stockton
Secretary to the Beeville Water Supply District President of the Beeville Water Supply District
Date:
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ATTEST: CITY OF CORPUS CHRISTI
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Reb cca Huerta Peter Zanoni
City Secretary City Manager
Date: 1'2-b t J' • 19
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Assistant C v Attorney fT (INC&
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