HomeMy WebLinkAboutResolution - 090860G - Contract - Election For Conadian River Project - 09_08_1960 CF
CITY OF LUBBOCK,, TEXAS
EXTRACT FROM THE MINUTES OF THE CITY COMMISSION
At a regular meeting of the City Commission of the City of Lubbock, Texas, at
which the following members were present: Mayor David C. Casey, and Com-
missioners Vernon E. Thompson, Otis Maner, Frank H. Chappell Jr. and W. C.
� J
held on the 8th day of September, 1960p on motion of Thompson seconded by
Maner , the following resolution was adopted:
RESOLUTION
WHEREAS, there has been carefully,considered a proposed contract, a copy of
which is attached hereto, between the Canadian River Municipal Water Authority
and the City of Lubbock, Texas,, providing for development of the Canadian River
Project, Texas... and for transporting municipal water, including reimbursement by
the City of its share of the costs of constructing,, operating, and maintaining said
project, and it is the opinion of this commission that said contract and its provisio
are satisfactory; and
WHEREAS, this commission has reviewed the provisions and purposes of a pro-
posed repayment contract between the United States of America and the Canadian
River Municipal Water Authority and endorses and recommends the consummation
of said contract:
NOW, THEREFORE, BE IT RESOLVED, that the City Commission of the City
-- of Lubbock, Texas,, does hereby approve the attabhed contract and does approve
submission of said contract for consideration at an election to be held for the pur-
pose; and that immediately upon approval of the contract by a majority vote, the
Mayor and Secretary-Treasurer are hereby authorized and directed to execute on
behalf of the City a contract in substantially the form attached; and
BE IT FURTHER RESOLVED., that the Board of Directors of the Canadian Rive
unicipal Water Authority be advised that this City, Commission endorses the form
of repayment contract proposed with the United States of America and recommends
its approval and its execution when authorized by an election held in the manner
provided by the laws of the State of Texas.
Dated passed, and unanimously adopted this gth day eptember,, 1960
Mayor ;r - Commission r
Commissioner > ommission r
Commissioner Commission r
The undersigned Secretary-Treasurer of the City Commission of the City'of
Lubbock,, Texas, hereby certifies that the above and foregdng is a true and correct
copy of the resolution approving and directing the execution of the contract attached
and the endorsement of the proposed repayment contract referred to therein,
.-� Dated this 8tti day of September, 1960. i
:(SEAL) Jc retary-Tre surer
F prov
City Atfornay
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►• Contract No. 14-06-500-485
0QN= T =J= JETT= STATMAn
THE CAHADIAN RIVE MENICIPA.L WATER AUTHORITY, TEW
TA X OF 00YrMM
ARTICLE SUBJECT PAGE
Presmble---------------------------------------------- 1
Whereas Articles-------------------------------------- 1
1 General Definitions----------------------------------- 1
2 Project Plan------------------------------------------ 2
3 Allocation of Costs----------------------------------- 3
4 Construction Charge Obligetion------------------------ 4
5 Operation and Maintenance by the Authority------------- 6
6 Operation and Maintenance by the United States-------- 7
7 Construction, Operation and Maintenance of
Recreational and Fish and Wildlife Facilities-------- 7
8 Additional Costs to be paid by the Authority---------- 7
9 Reserve Fund-------------------- --------------------- 8
10 Title to Project Works-------------------------------- 9
11 Rights of Way----------------------------------------- 9
12 Authority Revsnue------------------------------------- 10
13 Interest on Delinquent Installments------------------- 10
14 Defaults---------------------------------------------- 10
15 Water Rights------------------------------------------ 11
16 Water Shortages--------------------------------------- 11
17 Use, Allotment and Protection of Project Water-------- 12
18 Authority Facilities - Issuance of Bonds-------------- 12
19 rater Sales Contracts Necessary Prerequisites
to Construction-------------------------------------- 13
2D Computation of Costs------------------------------------------------------ 13
21 Authority Records and Reports------------------------- 14
22 Access to Books and Records--------------------------- 14
23 Rules and Regulations--------------------------------- 14
24 Contingent upon Appropriation or Allotment of Funds--- 14
25 Determinations---------------------------------------- 15
26 Assurances Relating to Validity of Contract----------- 15
27 Changes in Authority Organization--------------------- 15
28 Notices------------------------------------------------ 15
29 Assignment Limited - Successory and Assigns
Obligated-------------------------------------------- 15
30 Nondiscrimination in Employment------------------------ 16
31 Officials not to Eenefit------------------------------ 16
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APW9260 Contract No. 14-06-5w-485
CONTRACT
Betveen
UNITED STATES
DEPARTI M OF THE Iff=OR
BM AU OF RECLAMATION
and the
CANADIAN RIVER MUNICIPAL WATER AUTHORITY, TEM
THIS COETRACT, made this day of , 19 ,
between the UNITED STATES OF AM&RICA, hereinafter ended t��Q fid
States, acting through the Secrettry of the Interior, and pv m=t to
the Federal Reclamation Laws, and the CARADIAlt RIVER MUSICIPAL WATER
AUTHORITY, organised and exelting pursuant to the laws of the State
of Te=s, with its principal place of business and office at Plainview,
Texas.
WITMZBSATB MMT:
WMMMS, the Act of Congress effective December 298 1950,
(64 Stat. W4) authorised the construction, operation, and maintenance
of the Canadian River Project, Teww, and.
WHMKW, the Authority desire& to contract with the United
States for paymnt of the reimbursable costs of the construction,
operation, and waintenance of the project in accordance with Reclamtion
Law, and
, the Authority is empowered to contract with the United
States of payment of the reimbursable costs of construction, operation,
and maintenance of project worms, and is vested with all necessary pagers
for accopplishmeat of the purposes of this contracts
WOW, THE07=0 in consideration .)f the wtual and dependent
covenants herein contained, it is agreed between the parties hereto as
tolioxs:
SAL DEF ITIOiSa
1. Where used in this contract,
` a. "Contracting Officer" shall mean the Secretary of the
United States Department of the Interior or his duly authorized repre-
sentative.
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b. "Federal Reclamation Laws" shall mean the Act of
June 17, 1902 (32 Stat. 388) and all acts emendatory thereof or supple-
mentary thereto. -
C. "Year" shall mean the period January 1 through the
next following December 31.
d. "Project" shall mean the Canadian River Project as
authorized by the Act of Congress, dated December 29, 1950 (64 Stat. 1124) .
e. "Project Works" shall mean all works or facilities
constructed including the dam, reservoir, and aqueduct, together with
land and rights of way for such works.
f. "Project Water" shall mean water available for use
through the project works.
g. "Directors" shall mean the Board of Directors of the
Authority, represented by quorum as required in its authorizing
legislation.
h. "Project Cost" shell mean sums expended by the United
States on construction of the project, within the limits of funds made
available by the Congress.
i. "Construction Charge Obligation" shall moan that portion
of the project cost payable by the Authority as finally allocated to
municipal and other water supply purposes, as provided for in the Act
of December 29, 1950 (64 stat. 1124).
�. "Aqueduct" shell mean the project system for trans-
porting stored water to the points of delivery established for the
project, and includes all pipelines, conduits, pumping facilities, and
related works, and the land and rights of way for such works and
facilities.
k. "Member Cities" shall mean all cities, towns, and
municipalities which are members of the Authority and are contracting
for project water under authority of applicable Federal and State laws.
1. "Authority" shall mean the Canadian River Municipal
Water Authority, as represented by its governing Board of Directors.
m. "Sanford Dam and Reservoir" shall refer to the dawn
and reservoir on the Canadian Rives used for storing and regulating
project water, including all lands and rights of Way.
PROTECT PLAN
2. The proposed plan of construction for the project is to
construct Sanford Dam and Reservoir and an aqueduct for transporting
untreated water to the member cities.
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ALWCATION OF COSTS
3. The construction cost of the project has been estimated
as of July, 1960 prices to total $96,090,000 distributed as follows:
Sanford Dam and Reservoir $31,060,000
Aqueduct $65,030,000
Total $96,090,000
Allocation of estimated construction cost is as follows:
Sanford Dam and Reservoir
a. . Reimbursable by Authority $n,930,000
b. Aonreimbursable - Flood Control $ 3,130,000
Aqueduct - Reimbursable by Authority $65,030,000
Total *96,090,000
Subject to the terms and conditions of this contract, the United States
will spend on the construction of the project not to exceed 06,090,000
plus such amounts, if any, as may be justified by reason of ordinary
fluctuations in construction costs, or so much thereof as in the
opinion of the Contracting Officer is necessary, within the limit of
funds made available by the Congress. The Authority's maximtizm con-
struction charge obligation under this article of the contract is
$92,960,000, plus interest during construction and annual interest on
the unanortized balance of the cost allocated to municipal water bene-
fits. Interest during construction shall not accrue during any extended
period in which construction is deferred or postponed by the United States
as the result of a National emergency. Interest during construction shall
be calculated as follows: Simple interest during construction shall be
charged on one-half of each fiscal year's expenditures allocated to munici-
pal water at 2.632 percent annually together with interest at the same
rate annually on the full amount of such expenditures during previous
fiscal years. The total amount of all interest thus accuailated through
the construction period prior to the date of actual completion of the
project, as established by announcement of the Contracting Officer, shall
be added to the contraction cost of the project allocated to the municipal
water supply component of the project. The Authority shall also pay
interest at 2.632 percent each year of the repayment period on the
unamortited balance of the project cost. Should the final cost of con-
structing the project works be less than is estimated in this contract,
as determined and announced by the Contracting Officer, the reimbursable
cost payable by the Authority shall be reduced by the amount of the
difference between actual cost of the project and the estimated coat, and
such lesser amount shall become the Authority's reimbursable
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obligation. If the Contracting Officer finds at any time that the
�» works required to carry out the objectives of this contract cannot be
completed within the estimate above, he shall consult vith the Authority
Board of Directors, and appropriations therefor then being available and
authorized, may make continuation of construction contingent upon the
execution and confirmation of a valid contract by the Authority increas-
ing its maxinam repayment obligation to cover the increased reimbursable
costs. If the parties hereto are unable to agree upon the terms of such
an amendatory contract for repayment of the additional cost, the Con-
tracting Officer may issue the requisite notice for commencing repayment
in the manner contemplated in Article 4.
COMSTR'JCTION CHARGE OBLIGATION
4. a. The Authority shall pay to the United States on account
of construction of the vorks and facilities contemplated herein all
reimbursable project costs as itemized in Article 3, vhich is herein
referred to as the construction charge obligation, as determined and
announced by the Contracting Officer, but not to exceed amounts calcu-
lated as set forth in said Article 3. Such construction charge
obligation shall be paid in 50 successive annual installments as
follows, based upon a reimbursable cost of $92,96o,o00:
Annual Installment Annual Installment
Number Payment Number Payrraent
�,— 1 $ 2,379,000 26 4,083,000
2 2,473,E 27 4,083,000
3 2,569,000 28 4,083,000
4 2,664,000 29 4,083,000
5 2,759,000 30 4,083,000
6 2,854,000 31 4,083,000
7 2,950,000 32 4,083,000
8 3,045,E 33 4,083,000
9 3,140,000 34 4,083,000
10 3,235,000 35 4,083,000
11 3,330,000 36 4,083,000
12 3,425,000 37 4,084,000
13 3,520,000 38 4,o84,000
14 3,616,000 39 4,084,000
15 3,710,000 40 4,084,000
16 3,8o6,000 41 4,o84,000
17 3,886,000 42 4,o84,000
18 3,964,000 43 4,o84,000
19 4,o44,000 44 4,085,000
20 4,o83,000 45 4,085,000
21 4,083,000 46 4,085,000
22 4,083,000 47 4,085,000
23 4,083,000 48 4,o86,000
24 4,083,000 49 4,0%'(=
25 4,o83,000 50 4,086,000
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Each annual installment shall become due and payable on or before
October 1 of each year commencing with the year innediately following
that in which a construction completion notice is given reporting
that the project is sufficiently complete for permitting the initiation
of water deliveries if such notice is given prior to October 1, other-
wise to commence in the second calendar year after such notice is given.
Payments shall be made on the basis of the above table until all costs
are, in the opeinion of the Contracting Officer, finally determined, at
which time a revised schedule of payment shall be prepared based upon
substantially the same ratio of annual repayment as the above table,
payments thereafter shall conform with that table. If construction
of the project works shall have been commenced but is terminated prior
to completion by reason of lack of funds or failure to secure a valid
amendatory contract, then the Authority shall pay to the United-States
its proportionate share of the total amount theretofore incurred or
obligated at such time and in such manner as the Contracting Officer
may then prescribe. Nothing herein shall preclude the Authority from
completing construction of the project works at its expense if
construction by the United States is discontinued prior to completion
under the provisions of this article.
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b. The costs of constructing a plan approved by the
President of the United States for the preservation and propagation of
fish and wildlife, including any allocation in that plan of dam and
reservoir costs, shall be noareimbursable.
OPERATION AND SCE BY TEE AUTHORITY
5. a. The Authority shall care for, operate and maintain the
project works upon sufficient completion of the project to permit the
delivery of water, as announced by the Contracting Officer, without cost
or expense to the United States and in Hill compliance with applicable
Federal laws, the terms of this contract, and in such a manner that the
project works shall remain in good and efficient operating condition.
Fro substantial change shall be made by the Authority in any of the project
works without first obtaining the written consent of the Contracting
Officer.
b. The Authority shall make promptly any and all repairs
to the project works which the Contracting Officer may determine are
reasonably necessary. If the Contracting Officer determines that any
part of the project works is for any cause unfit for service, or being
operated contrary to the terms of this contract, he may order the water
shut off until in his opinion such part of the project works is put in
proper condition for service and properly operated. In case of neglect
or failure of the Authority to make such repairs, the Contracting Officer
may cause the repairs to be made and the cost thereof, as determined by
the Contracting Officer, shall be paid by the Authority to the United
States as provided in Article 8. Failure to pay and/or failure to shut
off water when ordered shall constitute a breach of contract.
c. During all periods of project operation by the Authority,
the reasonable annual cost of operation and maintenance of Sanford Dam
and Reservoir allocated to flood control and fish and wildlife as deter-
mined by the Contracting Officer, shall be credited against payments due
the 'United States.
d. The Contracting Officer may from time to time cause an
appropriate inspection of the project works to be made to ascertain
whether the requirements of this contract are being satisfactorily per-
formed by the Authority. Such inspections may include physical inspection
of all properties of the Authority. Any such inspection shall, except
in a case of emergency, be made after written notice to the Authority and
the actual expense thereof shall be paid by the Authority to the United
States in the manner provided in Article 8 hereof.
e. The Authority shall hold the United States, its officers,
agents and employees, harmless as to may and all damages which may in
any manner grow out of the care, operation and maintenance of any of the
project works by the Authority.
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OPERATION APW MAINMANCS BY TEEK UNIM STATES
6. In the event the Authority is at any time in default on any
of its obligations to the United States under this contract, or is found
by the Contracting Officer to be operating the project works or any part
thereof in violation of this contract and the Authority refuses after due
notice to correct such violation, then at the election of the Contracting
Officer, the United States may take over frog the Authority the care,
operation and maintenance of the project works by giving Written notice
to the Authority of such election, the effective date thereof, and the
funds required to be advanced by the Authority to the United States.
Thereafter, during the period of Government operation, the Authority
shall pay to the United States annually in advance of the use of such
project works the reasonable cost of operation and maintenance of such
works, as fixed in notices from the Contracting Officer to the Authority.
Such works may be retransferred to the Authority upon proper notice.
The Authority shall surrender possession and accept the retransfer on
being given the notice provided for herein. Nothing herein contained
shall be construed as denying to the Authority the right to resume
operation of the project works at such time as the Authority corrects
any default in payment by paying all amounts owing to date, or corrects
the violation of contract which caused the United States to take over
operation, and the United States agreas to return operation of said
facilities to the Authority upon the correction of such default or
violation.
CON&STRUCZ ON OPRRATIOH AND MADMENANCE OF RECREATIORAL AND
FISH AND WILDLM FACILITIES
7. The Authority way construct, operate and maintain without
cost to the United States, such recreational facilities as are desired
by it. Construction of facilities affecting project works shall be
subject to advance approval of the plan by the Contracting Officer. No
recreational use shall be permitted which is inconsistent with the laws
of the State of Texas and the United States. The Authority shall also
operate and maintain such facilities as are constructed by the United
States for the protection of fish and game. The United States may con-
tract with proper agencies of the State of Texas for the construction,
operation and maintenance of all or any part of these facilities approved
by the Contracting Officer upon his determination that performance of
work or transfer of responsibility to the State of Texas is in the best
public interest.
AMITIONAL COSTS TO BE PAID BY THE AUTHORITY
8. In addition to all other payments the Authority shall pay
to the United States on or before October 1 of the year following that
in which they have been incurred, the following costs:
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a. die cost of inspection and repairs to project works
incurred by the United States.
b. Such items for administration, supervision, and general
espenses as are properly and equitably chargeable to the Authority.
RESERVE FUND
9. a. Commencing with a deposit on August 1st of the fifth
calendar year after the first installment is payable on the construction
charge obligation, and continuing until the sums of money becoming due
under this contract shall have been paid to the United States, the
Authority shall accumulate and maintain a reserve fund to be available
for the purposes and in the circumstances herein mentioned.
b. Such reserve shall be accumulated by the Authority
through the deposit of annual amounts of not less than $30,000 until
the aggregate reserve fund accumulated shall total $300,000. Said sum
shall be maintained at all times thereafter, and when depleted by
expenditures as contemplated herein, it shall be restored to the
original total by annual deposits on each August 1st in amounts of
not less 'than $30,000, or such lesser amount as shall be necessary to
re-establish a total of $300,000.
c. Me reserve fund shall be available to meet the
extraordianry and unforeseen costs of operation and maintenance, repair
and betterment of the project works, and may be used for capital or
major improvement or replacement with the approval of the Contracting
Officer.
d. The reserve fund shall be deposited and maintained
apart from other funds of the Authority in a depository satisfactory
to the Contracting officer.
e. During such times as the project works constructed
hereunder shall be operated and maintained by the United States in
accordance with the provisions of Article 6 hereof, the reserve fund
shall be available for use by the United States for the purposes
specified in this article.
f. At the option of the Authority, the reserve fund
may be invested in short term securities of or guaranteed by the
United States and maturing in not to exceed five years from the
date of purchase.
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TITLE TO PROTECT WORKS
10. Title to the dam and reservoir shall remain in the United
States until otherwise provided by the Congress, notwithstanding transfer
of the operation and maintenance of said works to the Authority. Title
to the aqueduct shall pass to the Authority or its designee or designees
upon payment to the ihited States of all the Authority's obligations
arising under this contract.
RIGHTS OF WAY
11. a. The Authority shall, if and when requested by the
Contracting Officer, and to the extent of its authority, acquire by
condemnation or otherwise, and convey to the thited States all lands
or interests in lands required for the construction, operation and
maintenance of the project works.
b. Title to all lands of interests in lends and improve-
ments acquired through negotiation by the Authority shall be taken in
the name of the United States at prices not exceeding the appraised
value as supported by the appraisal reports approved by the Contracting
Officer. In acquiring said title, the Authority shall use such forms
of contracts, deeds, and other necessary papers as may be required by
the thited States. After title has been found satisfactory to the
United States, payment for rights acquired through such negotiation
shall be made directly by the thited States to the seller. Payments
or more than the appraised value will be made only upon the approval
of the Contracting Officer.
c. Knere the Authority acquires lands by condemnation,
upon approval by the Contracting Officer of the title to be acquired
and of the amount of the condemnation award., the United States will
pay into the appropriate state court for and on behalf of the Authority
the amount of such condemnation award plus all proper court costs and the
Authority simultaneously therewith will deliver to the United States
a properly executed warranty deed conveying to the United States the
title or interests in lands being acquired in such condemmation pro-
ceedings. 3he Authority will defend against any landwaer's appeal
from a condemnation award or judgment and, at the request of the Con-
tracting Officer, will prosecute to the fullest extent of its remedies
an, appeal from any unfavorable award or judgment. 2he United States
vill pay into the appropriate court for and on behalf of the Authority
the amount required to satisfy the auvrd as finally determined plus
appropriate court costs. Should the amount of the award be reduced,
the Authority vill make appropriate refunds to the thited States.
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d. To the extent approved by the Contracting Officer,
expenses (other than normal overhead, general, and continuing expenses)
incurred by the Authority in connection with the acquisitions above
provided for shall be paid to the Authority. Statements of such
expenses shall be submitted by the Authority to the United States at
the close of any calendar month, and to the extent that such expenses
are paid by the invited States, they shall be treated as construction
costs.
AUTHORITY REiTZM
12. The Authority shall cause to be collected all monies
to meet the obligation of the Authority to make in full all payments
to be made pursuant to this contract on or before the date such pay-
ments became due and to meet its other obligations under this contract.
Payments due under this contract shall be a first obligation upon all
revenues of the Authority.
ITT ON MMMUIMT IIffiTAti]MM
13. Every installment or charge required to be paid to the
United States under this contract which shall remain unpaid after its
due date shall bear interest at the rate of 6 percent per ■nTum from
the date of delinquency. Provided, that no penalty shall be charged to
or be paid by the Authority unless such delinquency continues for more
than thirty (30) days.
DF'AULTS
14. a. No water shall be available to or delivered to the
Authority or to the member cities or other water contractors or by
the Authority through project works for the use of said member cities
or contractors during any period in which the Authority spay be:
(1) Uwe than 12 months in arrears in the payment to
the United States of any construction charges accrued under this
contract.
(2) In arrears in the advance payment to the invited
States of the operation and maintenance charges fixed under Article 6
of this contract.
b. So water shall be delivered by the Authority through
project works to any member city or water contractor when such user is
in arrears in the payment to the Authority of any charges by the Authority
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for the purpose of raising revenues to meet the payment by the Authority
to the United States of any of the Authority's obligations under this
contract.
c. All rights of action for breach of this contract
are reserved to the United States as provided in Section 3737 of the
Revised Statutes of the Mited States, as A-ended (41 U.S.C. 15).
Nothing contained in this contract shell be construed as abridging,
limiting, or depriving the LmIW States or the Authority of any means
of enforcing any remedy either at law or in equity for the breach of
any provisions hereof Which either party would otherwise have. The
waiver of a breach of any of the provisions of this contract shall not
be deemed to be a waiver of any provisions hereof, or of any other or
subsequent breach of any provision hereof.
HATER RIB
15. a. In no event shall the United States be obligated to
coemence any of the work contemplated by this contract or perform any
other act in pursuance of this contract until and unless water rights
satisfactory to the Contracting Officer are obtained and made avail-
able for project purposes. lie Authority shall have a Iitst, right to
the project's available water supply for use by its amber cities and
approved contract water users during the repayaent period, and a
permanent right to such she or quantity of water thereafter, all
subject to payment on a current basis of such charges as are provided
for in this contract.
b. The parties hereto do not abandon nor relinquish
any of the seepage or return flow water attributable to the use of
the project water supply.
WATER GBORTAGEB
16. a. On account of drought or other causes, there W
occur at times during any year a shortage in the quantity of water
available to the Authority pursuant to this contract. In na event
shall any liability accrue against the United States or any of its
officers or employees for any damage, direct or indirect, arising out
of any such shortage.
b. The United States assumes no responsibility for
the quality of water made available under this contract.
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ME, ALLOTK RT AND PROVMOB OF PROJECT WATM
IT. a. Use of rater Durleg Construction - During construction
of the project works, any project water c MT come available sad
usable any be distributed by the United States at such rental rates as
the Contracting Officer may determine and establish. Payment for water
so used shall be made in advance and the places of measurement and
deliverer shall be®tablisbed by the Contracting Officer after consul-
tation with the Authority directors.
b. Auathorit7 to Control Releases - After completion
of construction, the Authority shall have absolute control over the
release and use of all project water so long as it shall remain
current in the payment of such amounts as are due the United States
under this contract; Provided, hovever, that such control shall not
affect the right of the United States to exercise dominion thereover
for flood control and fish and wildlife purposes, consistent with
the authorised project and the nonceizbursable allocation of funds
therefor.
c. stater Contracts - The Authority shall males
allotments and contracts for the disposal of project water for mamielpal
and industrial uses in accordance with the applicable Federal and state
laws. All such water allotments and disposal contracts shall be upon
terms satisfactory to the Contracting Officer and the Authority, and
shall be' approved in advance, and shall not be amended without mutual
written consent.
d. Use of Project Water - Beneficial use shall be the
basis, the measure andthethe limit of the right to the use of project
water. Such water shall be used by the Authority, its member cities
and muse*"& ous users who contract with the Authority.
e. Protection of Project Water Su - In case a
dispute arises as to the chexacter,, extent, priority or validity of
water rights claimed for the project, the Authority shall promptly
bring and diligently prosecute or defend judicial proceedings for the
determination of such dispute and shall take all other measures
necessary toward the defense and protection of the water supply.
AVMORM rACMTTIM - ISSUANCE CF BOMB
18. a. In addition to the project works specified in Article
2 hereof, the Authority or member cities may require filtration plants,
regulatory reservoirs, distribution systems, and other facilities to
mike water available to the consumers, which facilities are referred to
herein as Authority or member city facilities. The Authority or member
cities may find it necessary to finamoe the acquisition of sneh
facilities by the issuance of bonds and other securities pursuant to the
laws of the State of Texas.
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b. Nothing in this contract shall be construed to deny:
(1) The right of the Authority or its member
cities to construct, lease, purchase or otherwise acquire additional
facilities, or the right of the Authority or its member cities to issue
bonds or other evidence of in abtedaess to finance the acquisition of
such facilities;
(2) The right of the Authority or its member cities
to operate and maintain such additional facilities which are not directly
integrated with project works free of all supervision or control by the
United States;
(3) The right of the Authority or its member cities
to impose separate charges or to levy separate assessments for water
treatment or distribution, or both, by means of their facilities, in
addition to those charges and assessments required to meet the obligations
of the Authority to the United States under this contract. The proceeds
of such additioml charges or assessments may be used by the Authority
for the payment of principal or the interest on the aforesoentioned bonds
or other securities, free of any clain thereto by the United States.
(4) The United Stated has a prior claim to that part
of the Authority's income from its contracts with member cities designated
for the purchase and safe of the project water supply, as easy be necessary
in each year to assure the prompt payment of the amount due the Tented
States hereunder in such year, and such prior slain is hereby expressly
recognized by the Authority.
WATER S,AIES CONTRACTS NECESSARY PRER]RUISITES TO CONS ICE
19. The United States shall be under no obligation to commence,
or having conwnced, to continue construction of the project works until
the Authority shall have negotiated and confirmed contracts acceptable
to the Contracting Officer with the member cities or others, requiring
said contractors to purchase a portion of the project water supply at
rates adequate to repay that portion of the construction charge obligation
allocated for repayment by the Authority. Such contracts shall ]provide
for assignment to the United States upon the request of the Contracting
Officer and shall provide for approval in advance of the effective date
by the Contracting Officer. They shall not be amended without his written
consent. The obligation of each member city shall constitute an operating
expense of its water system.
COWMATION OF COSTS
20. The costs which shall be the basis of determining the
Authority's construction charge obligation as well as the various cha�ros
to be paid by the Authority to the United States under this contract shall
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embrace expenditures of VbAtsoe"r kind in cannection vith, growing out
of, or pursuing from the work or operation described, including but
vithout limitatial by moans of this emnoration, the cost of labor,
11hterial, equipment, engineering and legal work, superintendence, admin-
istration and averbead, general expeases, rights of ray, inspections,
special services, property As—ges of all kinds. The determination of
what costs are properly chargeable hereunder and the sn=nt thereof shall
be determined by the Contracting Officer on the basis of costs actually
incurred in construction and completion of the project.
AVMCitM RROOM AM .RMKWS
21. The Authority #hall establish and maintain a modern set
of books of account end records, and furnish reports as the Contracting
Officer shall request pertaining to:
a. Accounts and financial transactions of the Authority.
b. Water supply and the disposition thereof.
AOCIMS TO BOOM AND FMMM
22. Duly authorised representativvs of each party shall. base
the right, during office hours, to inspect aA to make copies of the
other party's books and official records relating to matters covered by
this contract.
RKM AID REGMAMUM
23. a. There is reserved to the Contracting Officer the
right, so far as the purport thereof malr be consistent with the provisions
of this contract, to make reasonable rules and regulations and to add
to end modify thea as may be deemed proper and necessary to carry out
this contract, and to s4pply necessary* details of its administration, and
the Authority agrees to observe such rules mad regulations.
b. A portion of the cost of constructing the project
bas been allocated on a nonreturnable basis to controlling f2aad ' and
may be allocated to the preservation &vd propagation of fish wA fe.
To insure securing the benefits for Mich participation by the united
States has been included in the cost of constructing the project, operation
of project narks shall be in accordance with rules and regulations pre-
scribed by Us Secretary of the Interior and the Secretary of Defense.
C� UPON APPRUPRIATION OR ALID"MT OF FUMB
94. The expenditure of any money or the performance of any
work by the Vaited States herein provided for, shich my require
appropriations of money by Congress or the allotment of funds, shall
be eontiopmt upon such appropriation or its being made. The
lk
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failure of Congress to appropriate funds or the failure of any allotment
of funds shall not, however, relieve the Authority frog any obligations
theretofore accrued under this contract, nor give the Authority the
right to terminate this contract as to any of its executory features.
No liability shall accrue against the United States in case of such
funds not being appropriated or allotted.
A—ONS
25. Where the terms of this contract provide for action
to be based upon the opinion or determination of either party to this
contract, whether or not stated to be coaclusive, said term shall not
be construed as permitting such action to be predicated upon arbitrary,
capricious, or unreasonable opinions or determinations.
AWURA110E8 FMATIM TO VALIDITY OF CONMUM
26. This contract shall not be binding upon the United
States until the proceedings on the part of the Authority for the
authorisation of the execution of this contract shall have been con-
firmed by decree of a court of competent jurisdiction or pending
appellate action if ground for appeal be laid. Upon the execution of
this contract, the Authority diligently shall process to final con-
clusion such confirmation proceedings. The Authority at its cost
shall furnish to the United States two certified copies of the decree
of confirmation and all pertinent supporting records.
CHANGES IN AUTRORITY OPOANIZaTIOg
27. While this contract is in effect, no change shall be
=ads in the Authority by proceedings to dissolve, consolidate, merge,
or otherwise except upon the Contracting Officer's written consent
tbereto.
NOTICES
28. Any notice authorised or required to be given to the
United States shall be delivered or mailed, postage prepaid, to the
Regional Director, Bureau of Reclean ions Amarillo, Texas. Any
notice authorised or required to be given to the Authority shall be
delivered or mailed, postage prepaid, to the Canadian River ltuaieipal
Water Authority, Pl.atuview, Texas. The designation of the add asees
or the addresses given above may be changed by notice given in the
same manner as provided in this article for other noti.,cs.
ASS7Ai11EET LIKET90 - SUCCESSORS AND ASSnM AKMll'!RD -
29. The provisions of this contract shall apply to and
n bind the successors and assigns of the parties hereto, but no
assignment or transfer of this contract or any part or interest
therein shall be valid until approved by the Contracting Officer.
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ArSO9260
NONDISCRINIZATION Ili ENPIAYMCRT
30. a. In connection with the performance of work under this
contract, the Authority agrees not to discriminate against any employee
or applicant for employment because of race, religion, color or national
origin. The aforesaid provision shall include, but not be limited to,
the following; Employment, upgrading, damotion, or transfer; recruitment
or recruitment advertising, layoff or termination; rates of par or other
forms of compensation; and selection for training, including apprentice-
ship. The Authority agrees to post hereafter in conspicuous places.,
available for employees and applicants for employment, notices to be
provided by the contracting officer setting forth the provisions of the
nondiscrimination clause.
b. She Authority further agrees to insert the fore-
going provision in all subcontracts hereunder, except subcontracts
for standard commiercial supplies or rav materials.
OFFICIALS NOT TO B8IRM
31. 8o Number of or Delegate to Congress or Resident Comedssioner
shall be admitted to any share or part of this contract or to any benefit
that may arise herefrom, but this restriction shall not be construed to
extend to this contract if made with a corporation or company for its
general benefit.
IN WITMS WECBOF, the parties hereto have signed their
namea the day and year first above written.
TO UNITRD STAIRS OF AMMICA
By
Title
CARADIAH RIM MUNICIPAL, WATER
AUTHORM
(Seal) By
Ate: Title
Secretary
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