ORDINANCE 209
nance be declared an emergency measure and thatjFY such rule be suspenDed
was duly seconded by Alderman '. O..re:"?1-<,:e-~ LI[ ili~, and the Hayor p
IT. .
motion toa vote of the members of .theC1ty Council... The.,
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motion carried by the. following
AYES: , Mayor Richard and
..;:ZeI:5, l'4a,px ,and Dunham,
rural population near this. Cityiomdthe fa.ctthat.the Department of
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. Housing and Urban..Development has indicated>that 1t 18 ready. to close
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said loan on or about Februaryl, 1970 and the faet that 1fthe closing
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of said loan is delayed ,said Department of HOu6ing.ab:dtJrban Develop-
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ment may find other more pressing demands tor said funds creates a
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public emer>gency and requires tl)atany rU1erequiririg~o;r~inanoe be
.read . at more than one meeting be suspended." The rootionthat such ordi-
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NOES: None.
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The Mayor announced' that. any suchI'ulerequ;1r>;l.hg an ordinance
to be read at more than. one lIleeting haC! beensuS'pended>aiid the.o1:'dh
nance declared an emergency measure. '.. . '.' . } ...../'?.;i. ....>
Thereupon, itWts .~OV~d b~Alderlll~n~~c.A7p'~
and seconded by Alderman~~.i'< #~~~ ...... ... that the ordinance
be finally passed and aJopted. The Mayor> put. themotion.to a vote of'
the members of the City Council>~dthe ordlnanqe:wa.s Tinally passed'
and adopted by thefollowlng vote:
AYES: l1ayor Rlchardand J\. Ide rmen KoYIn, Ka2;beri,Koch;
Air.;~, and Dunham; . . .
NOES: None.
The Mayot' declared the orcananCe fin'allypasseC! arid adopted;
and said ordinance as passed and adop'tedby the CltyCounc11 of.the
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City of Schertz is as follows:
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Ali ormINAf'lCB :f:P ~C't
AUTHORIZING THE .;t1\.YOh TO EXECUTE AND 'rIlE CITY
SECRETARY TO ATTEST A cO~~nAcT TO BE~iECUTED BY
AND BET\'iEEN T::;'": CI':'Y OF. SCHERTZ ANr. SCHAEFER. ROAD
RURAL WATER SUPPLY COP~OBATION ~O BE bATED AS OF
FEBRI1 AR)' . 1, . 197 0, . PETI7AIllING TO TIm. S!',LE . BY TEE
CITY OF SCHERTZ TO 'I'll:': SCHAEFER ROAD RURAL "TATER
SUPPLY CORPORATIO;~ AND Tl:ltl'uncHASJZ BY $CB:AEFER
ROAu RURAL WATER S~fl'LY CORPORATION OF WATEB FOR
A PERIon OF FOBTY YEARS FROM bATt OF SAID,CONTnACT
IN LIEU OF ACOWI'f:ACT !1ERETCFOR mfTt;RE:b' tN-I'O BY
THE CITY OF ;:,CIIBRTZ AND SCBA:SPEn ROAD RU1i.AL WATTI:R
SUPPLY CORPORAnmi. DA'l'tb 1'111'.: 28TH DAY OF OCTOBER,
1969, FOR A THIRTY-YEAR PERIOD.
WHEREAS, the City CouncH of ~he c:!.ty of Schertz has here;"
tofor entered into a contract wIth Schaefer Road Rural Water Supply
Corporation, dated the 28th clay of: Octoui~r, 1969, under the terms of
whic;' the City agreed to sell water f'br a thirty..year period to said
corporation and said cor;:,ol'ation agreeu tv purchase said wateI' subject
to the terms and provIsions of said contract, and
WHEREAS, the DepaI' :;ment of l:ousinr; and Urban Development is
in the process of lllald.ne; a lean tc, 3chaefE:!' ;\oad.Rural Water Supply
Corporation, the proceeus of which are to' be used to construct a dis-
tribution system for the distribution of the water to be purchased fI'om
this City; and
"'I~REA<'
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said loal! L; to b", payatle over a period of forty
years and t:1e Department of l-IOl~sing and Urban bevelopment ineists that
said contract between said ~orporation and thIs City provide foI' the
sale and purchase of water for a forty year perIod; and
WlIr:!mAS, it is to tLe advantage of: tM s City to enter into a
contract with said Schaefer TIc,ad F.ural ~:ater Supply COI'poI'atlon on terms
and conditIons Identical L t:,<: pl'evio;ls ~ontre.ct entered into by the
City of Schertz and 3chaefer Eoac tural ~ater Supply Corporation except
for. the fact that the nel1 c(Htract shall be fOr a period of fOrty (40)
years fro!:! Feoruary 1., l?7C In::;te:d of a perIod of thiI'ty years from
October 28, 1969; NO,-T 'l'l:EPF:I'Or.~ >
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BE 1'1' ORDAINEP BY THE:CITYCOUNCILOFcTHEClTYOFSCI1ERTZ:
Thatt;he Mayor oe authoriZed toexec1.lte and the City
Secretary
to, attest
, ,
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a contract between this city 81ld Schaeter> Road Rurlil1
Water
';:,
Supply Corporation,' reading inwordsandf1gures~s ,follows:
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THE STA1'E OF TEXAS 0,
COUNTY OF GUADALUPE U
THIS AGREhr,mllTT ,dateclas of Febru.arYl,. <1970 ,by and between
the SCHAEFER ROAD RURAL l'lATER' SUPPLY, CORPORATION, 3 corporation in the
County. of Bexar, State of Texas ,hereinaftercalled '."Corporation", and ,
the CITY OF SCHERTZ, a Illunicipaleorporatiol;l.in the County of Guadalupe,
State of Texas, hereinafter called "Si:Jhertz". ,,'
ilITNESSETHi
, .
l'lHEREAS,Sche:rt<; has recently expanded itswateriil'l,!pply and.
disl;l"ibution system, and such water 'supply consist:!.ng of thre6 wells
and three pumps is: under existing conditions, fO\ffid to be adequate
to se:;:>ve a eity of several times the .sizeof: Schertz: and '
, , c_ ,
. W1lEREAS, the Corporationproposest6 bilildand operate a water
distribution system in that part of Be:Kar qountY near to Schertz, and
'chere is .no good ~Iatersupplywithin' its.corporateservi ee area; and
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NHEliEAS, 3chertzo~ms and operates&. iargfl water maih near to
'che service area of the co!'porat;l,on, andoothtlie Corporation and Schertz
are desirous of making proper'arrangementto.the'end that. the Corpora-
tion vIlll be supplied with adequate .potable water. of the, qUality of
Schertz 'water ,; now, therefore, , .
O. , .
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IN CONSIDERATION OF' THE !1UTUALi COVENi\NTS,AGREEHENTSAND
UNDERTAlGNGS HEREIN SET FOR'l'H, the PClJ:'tieSllg!'ceand contractasfollOlIS:'
SECTION 1: Durlng;theterm. of this a'l;:reenlent and under the
\;e:ems and eondlTio:Yis hereof, .Schertz .af{';t'ees 'to sento the Corporation
and the Corpora.tion agrees to buy ,from Schertz potable t1atermeeting
purity standards of the St",te Depar.tmentof Health, but shall not be
legally. liable for'. failure o.fguality oi''llaterto meet such standards ,
Jt being understood that the custollJers. served by the Corporation "Jill
pece:Lve the same quaUtyofwater' a,;>c1elivered to custOmers of Schertz..
8cbortz shall use reasonable dil1genceand car.eto provide a regular
and uni terrupted supply of water to the Corporation and to. avoid any
chortage or interruption of thede1iveryth~reo1';but shall not be liable
for any failure> interruption or OhortMe of water or for loss or damage
r'esulting therefromoceas:tdnec1 inAlhcle or in' part by anY cause beyond
<i;i18 reasonable control of Sehert\,;,' .' '. . .
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SECTXON 2: tinder. the terms of <tl:l.ilraereement; water shall be
delivered by 8<:hertz to the Corporation ata 'llieter to be located at the
intersection .of River Road and Bilbbl1ngSprings l=1oad within the cor-
porate limits of the City of Schertz. .. ,
SECTION 3: For the purpose of IDeas uring the quantities of
\later deli veredoy-Schertz to theCorporatiQn; the .Corporation 8h&11
Zurnish and install at said deliverypo:i.n'tamaster IDf;t.er of standard
cype for measuring properly the. quan.titiesof water delivered uriderthis
a.greement. Both Sch€i!'tz and the Corporatlonshall have' access to such
metering equipment at all reasonable. times, and Schertz, 8,5 operator
of the facilities, Shall hayecharge (lftherellding, ,Galibrating and
the adjustment of the meter. SChertz agrees alf.lO, asoperatoJ:' of the
:system to keep a true recordaf. all meter reading::; as'.transcribed from
pel'orts of its employees or agentsw1threspect thereto:, Uponthe
lirittcl1 reques'c of the CorporaUon,S(llWrtz Will give the Corporat 1 011
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such information as it mayrequGstfrorn its journal$ or recqrdsor . ."
pernut the Corporation to have access to them in the office of Schertz
durinz; business hours. Schertz shall calibrate the metering equipment
as often as it considers cuch necessary and at ~uCh time as same shows
l"easonable evir,encc of' error. If' upon any test the percentage of. any
ina.ccura.cy thereof is found to pc in eXcesl> of t1>lOpercent (2%).> regis-
-crationthereof shall be correqted for ap<:lrioa. extendinG back to the
drne when the inaccuracy becan, .if such tilne i13 ascertainable, and if
Dot) then for a period extend;l.ng batl, one-half or the time elapsed sinoo
'che last elate of 0alibro.tionj but in no event farther back thafl a period "JI
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SECTION .~: '1he w1it of mea:.;;urement. :I:'or ~jater delivery hel"eUClCbp .~
~3b,al1 be one -tnousand ~al1onB of \.}.'),to!' ~ U ~ C. ~ 8t2nd81.rd- Liquid r"Ie,~,3ure ~
SEG'l'I01J ..5: During the. term of this. agreerlent, the Corporation ":
"hall not .connect.or p'~rmit connection of any other water supplY facil1tic's'l
to any distribution lines ~Jhich convey and transpo:r't t-mter obtained fl"OD.
Schertz.
.SECTION 6: Gnless :30on8r cancelled by mutual agreement of tho
parties, the-term-Qf Ghis contract shall be for a period of forty (~o)
.",ears fro))'l the date Hater is f'ir:.;t delivered or tendered to the Coroora-.
"tionat tll'e point of delivery provided in Section 2 of this D.[,reement:
and for the pm"pose of establishing; re.tesand charges for Hater supplied
under this c,.greeDent such term. of forty U~O) years shall be divided into
',o,lzht (8) cOnsecutive five (5) year p<:lriods.
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S=:C'.':ION 7; DU:r':CDg the initial five-yeal' period of the contract,
~L::: pl":lce i:;.obe-j)e.id co Sehert?" for water shall be thirty (30<1;) cents
per 1,000 Gallons delivered through the master meter loea.ted at the point
of dJ~li'tt3ry"
Ai; loas~ 8ix j;lOnth8 prior to the close of the in:l'Gial LLve-.
yeaz" period and at least six months prior .to the close of each. subsequent
five-year period" the City Council oi',Schertz and the Board of Directors
of \,1-,e CorporatiOn Shall meet in joint sessidnto establish a rate or
charge for vIater fortrlG succeeding five.-year period. At such meetin!!
SchGrtz shall ",elice 8.vailaDlo an engineering report showing (1) the esti-
mated cost to 3chcrtzfor the productionanddel1veryof water to the
Doint of delivery durins at least four oftheprecedinc years and (2)
the estil;J&.ted cor;t. of each 1,000 gallons of water for th<:l. ensuing fi ve.. .~
~J("2r pel"lOlL, aSGu.minc thero is no change in the quantity of l'later to be JI
suDpliec1, The cost of the report shall be paid b:iSchert2'., Based UpOE
suct ",'''port and such other information as illa.ybe deemed relevant, the
joInt session shall determine the priCe to be pa.id for each LOOO callon"
of water during; the suoceeding five-year period. The joint session shall
consider the. price at which Natol'. is. deli verodto the Corporation to be
('ado up of two cost components: a) the cost of prodUcing and delivering
water to the point of delive~y,andb) payments in lieu of sinking fund
payments to anticipate the replac.ement of produetion and delivery fa.cili...
ties. That portion of the price allocated to direct production and
delivery cost" ,si'1l'tllbe adjusted in conformity with any ch2.nge in suel)
costs ;:;hmm in the engineering report. 'j,"hat portion or. the price allocated
to p8yncnt13 in lieu of sinking fu..l1cl paymtmts. shall be . adjusted in oonfor-
.,,'ity Hith ony change in the annual construction cost index for' \'Jatenior!c2.:'
1'acilitiE.8 as publishAd by NcGraw-.Hill, Inco 3hould such j oint session
bc unable to ac;ree on tl1lS: price to be paid for Nater prior to sixty (60)
day", proceedinG the time the reV'isod rates are to 80 into effect, tbe
:)art:i8s sbo.ll submit the ql.\estion to a panel of three arbitrators, one .;,
to be appointed by each of the partieS to tho Contraot., and the arbi tra-
tors so seh'ctel\ sllall aGree upon and name a third arbitrator, The de-
cie,2,on of a Idr~5 '::1]:.,;'1t;-/ of the arbitre.tors shall-be f'lnal and bindinG; Ol~
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SECTION 8; The initial bilUne: periodl;hall 'begin with .the
date ~;ater is actually delivered to .the Corporation and end on the 20th
day of' thefollmdng mOnth ,and thereafter each biJ..1ingperiqd ,shall end
on the 20th day of eachrnonth, Payment by the Corpo:ration for water
received during the proceeding \)illing period l'ii1;L be made on or before
the lOth dayoftne month following the close of S\lch bHl1ng period
and payment vriH be made, in cUrrent funds at<the.City Hall,. Schertz,
Texas. In the event payment ienot madewithin,fHteen(lS) days after
such due date, Schertz shall be.r",Ueved pf any furtber obligat:l.on to
del1verwater', under this .contract nntiLall'amounts due to Schertz have
been paid in full, .
SECTION 9: In the eventSoherhfin,dsit necessary to
vmter or Inanymannerreztrictthe .Slllount of'wat~I'wh1chmay ,be
by the CUstomers of it., rnuniCIP~lsyst€!m,.the(}orp?rationagrees
it will irilpose the same type restrictions upon its water users,
further agreed and nnderstoodthatthe.rates and charges for the
nater supplied by the Corporation. shaJ,lnever beles$ than those
by Schertz. . . ...
SECTION .10; If for any reason of. fOl?oemajcureeither of the
purGies hereto sh8~f be rendered. unable . wholly or in part to. carry out
itsoblication under this agreement, then such party .shall give.notice
of the particulars of such reaSOn in m;:iting to.theotherparty within
a reasonabletimc after theocourrenceof thee:yentoI'caUS8 relied'
upon. The obligation of the partygivingl'luchrlOt;1cesofaras 1s
affected by sucllforce. ma,jeureshal1.be.!?\.lspended . during; . the continuation
of the ina.bUity t!1en. clairn~d but for no longerperiod,an\'lsucb party
shall endeavor to remove or overcpmesuchlnabilitywithal1 reasonable
diSpatch. 'l'he term force majeure as. employeo hereinrahall mean acts
of God, strikE18, lockouts or other industrialllisturbanoes, acts of the
public enemy, order or actionso.f any. kind of the government of the .
United States or of the Stat.eot' Texas, or. anY 01 vn or military author-.
ity, insurrections, riots, epidemics, la1'l.dsUdes,lightening, earthquakes,
fires,hurricanes,'storms; floods, washouts,arrestl>,restraint of govern-
ment and people, Givil distuI'banC~6, explosions, breakage or accident
'co the mach:1.nery> pipelines. or other structures or machi!1ery, partial or
entire failure of water supplyand:tnabllity ontihe part of ScheI'tz to
deliver \'1ater hereunder or of the GOI'poratiori to receive water, or on
account. of any other cause not reasonahlywit'hin the. control, of the
party.claiming such inability. It ls under.,toooandagreed.that the
settlement of strikes and lockouts shall.beentlrely within the. discretion
of the party having the diffiCUlty ",nd tha:ttheal;>ove requirements that
any forcemajcure shall be remedied with all reasonabled.lspatch shall
not require the settlement of strikes and lockouts by acceeding 'to the
demands of tho opposing party< 9J;' parties.,' ~hen such settlement isunfavor.-
able to it in the judgment of the parties having the..difficulty. No
damage shall be re covorab Ie from eitberpartybyreason of the suspension.
of GIlY contract rights due to any of .the causes above mentioned.. '
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IN \,IITNE83 WI1EP.EOF, the parties<hereto acting .under authority
of tIlelr respective governingbodieshave,ce,used, this ccontractto be
duly executed in several counterparts. €JacJ';l of Which I shall constitute
an oriGinal, all as of the day and year .f1rstabovewritten.
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CI'rY OF SCHERTZ
ATTEST;
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ITty Secretary
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BYJs;:l',~" ',' .C!r/w,' ClA;..J,..cft-&",'-_______
, Roy ..' ,ichard '
SCHAEFER ROAD RURAL
SUPPLY CORPORATION
i'iATEE
f~TTEST :
By. . " ' , "
fIre sitierit-;Iioardorbli~-ect cii's
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00cretary. uoard of D~rectors
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Tl1e fact ~Ghll.t thG.Departmen~G of HousingandlJrban Development,
which is' making a loan to t,11e SchaeforHoi;l.d Hural I.rater Supply Corporation,
payable OVer a Period of forty year::;, reqlliresthat said 'corporation's
contract for IrateI' Gupply HUh this CIty COVer a period .01' forty years
<,rad t110 fact that ;ouch loan may not be conswmnatedif'a. new contract
. . .
. .is not entered into betlJeen this City end said Schaefer Road Hural Hater
Supply corporation. covering a forty .yearperiod.thtisre.sulting in loss
of revenue to this City and the loss of . aVmter. supply to a oubstantial
ruralpopulatioD near this City and .the. fact that the DepartrnentOf'
Eousine: and TJrban Development has ind:Lcatec1 that it is ready to close
said loan on or about Febl.'uaryl, 1970 arid. the fact that if the closing
of said loan is delayed, sdd Department Of:H:6using and U'pbanDevelop-.
ment may find other pressingdemanclsfoI' saidfunds.and said loan may
never be made creates a: public emerGency and. an i.!!lperative public necessity
. ... '. ... .
ti1at an;,' rule requirins ord:1nances be. read.at more thari one readinG be
suspended and the same is bereby sUO);Jendedandsaid. emergency required
the posting of the notice required by the Public InfOrmation Law of the
State of Texas be done in compliance vrlth theemergen6~' provisions of.
said. IaN.
passage
This ordine.nce S118.11 take aff'l':)ctimmediately upon it~
and approvaL and it .is so enacted. .
Pas 0 00, and ""roved on thl,. tr-.!{It:; d", Of.:f~t-
1970.
. .fj~Ji~~1~~&Tex-as-~-'-- _.~
ArrITES'i1;
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c:f{:/''secret8ry' . .....-. ......
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I.' ROBERT G. BUF,(KER. City Seorehl'yin' 8.!J.dto:l" tl1eCity..
'%
.;-~l'HE '~)i:rA:T.HO,~TL"XJtS
()'OtlJi'rY OF' llUADALUPE'
C1'1'Y OF 3CHER'l'Z
" of Sehert.z, Texas, DO llEr:EBY CE?'l'IFYthlJ,t th~alioveaml toregoltig
and custod1an of. such books and reelJrds t"brEill..1d, .cny.
WITNESS MY liMll:; AND SEAL Ot" SAID CI'1'Yontbis. thE!
_$ 7f-
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peru.ln1ng to U:ladoption, passed
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on the _...iI_'::.~ day of.. .~*1-I.I4<-;?, .'
s:.t a..~,gular meeting thoreof, rlW-en
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by the . CitiC. c....un. .' oil. :Or.BaldC.! ty
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1910. a~ ._ $'!~e.C>. o'ci~tlJi: I-:: .14..
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meet1l1.gtf&$'ataJ,1.tt~t!I'6Pell
to the pubH,e. and t11at the.sameappears
· Off~H~orc} "1~L&,.~~L(f~.h;h~~, j.
that Ismthe lawful possessor
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Of the 1ll1rtuteao1." sa1d C1 tyCQuncll ,and
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>.1970.
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CITY SECRETARY"
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~(SEJlr. OF CI'ty)
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