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HomeMy WebLinkAboutResolution - 101460K - Contract - Canadian River Municipal Water Authority - 10_14_1960 v F _ J-WF wg /ems CITY OF LUBBOCK, TEXAS I ;' EXTRACT FROM THE MINUTES OF THE CITY COMMISSION ` At a called_ meeting of the City Commission of the City of Lubbock, Texas, at which the following members were present: Thompson, Maner, Chap ell, O'Mara and Mayor Case e on e t y oOctober, , on motion of Commissioner arm seconded byCommissioner Thoz the following resolution was adopted: RESOLUTION WHEREAS, there has been carefuEy 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 provisions are satisfactory; and, WHEREAS, this Commission has reviewed the_provisions and purposes of a proposed repayment contract between the United States of America and the Canadi River Municipal Water Authority and endorses and recommends the consummation of said contract: NOW, THEREFORE, .� BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: Cr v -7 r_ THAT the City Commission of the City of Lubbock, Texas, does hereby appro ✓ the attached contract and does approve submission of said contract for considera- tion at an election to be held for the purpose; and that immediately upon approval ,of the contract by a majority vote, the Mayor and City Secretiry are hereby autho- f`e,• rized 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 River Municipal Water Authority be advised that this City Commission endorses the form of repayment contract proposed with the United States of America and reco- mends 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 14th day of October, 1960, by the following vote: Commissioners voting "AYE": Thompson, Maner, Chappell, O'Mara and Mayor Casey Commissioners voting "NAY": NONE 142WId C', bA�T1 S , GAsZY, M ATTEST: Forth Approved Lavenia owe,Cty See ty-Treasurer ry noroey A sy The undersigneds..City Secretary of the City Commission of the City of Lubbock, Texas, hereby certifies that the above and foregoing is a true and correct copy of the resolution approving and directing the execution of the contract attached, I and the endorsement of the proposed repayment contract referred to therein. Dated this 14th day of October, 1960. (SEAL) ity Secretar 1 ?r r• AFS100360C CONTRACT between the CANADIAN RIVER MUNICIPAL WATER AUTHORITY and the CITY OF LUBBOCK, TEXAS for providing a MUNICIPAL WATER SUPPLY f'`. ' � r CONTRACT BETWEEN THE CANADIAN RIVER MUNICIPAL WATER AUTHORITY AND THE CITY OF LUBBOCK, TEAS TABLE OF CONBOT'S ARTICLE SUBJECT PAGE Preamble------------------------------------------------ 1 Whereas Articles---------------------------------------- 1 1 General Defintions-------------------------------------- 1 2 Plan--------------------------------------------- - ---- 2 3 Construction repayment obligation----------------------- 3 4 Operation and Maintenance Charges----------------------- 4 5 Water SuPPlY-------------------------------------------- 5 6 Water Shortages----------------------------------------- 6 7 Control of Water---------------------------------------- 6 8 Point of Delivery--------------------------------------- 6 9 Allocation of Aqufduct Capacity------------------------- 6 10 Obligation to Complete Project-------------------------- 7 11 Pledge of Contract-------------------------------------- 7 12 Project Alterations and Repairs------------------------- 7 13 Limitation on Financial Liability of City--------------- 8 14 Water Measurement--------------------------------------- 8 15 Contract Contingent Upon Construction of Project-------- 8 16 Easements----------------------------------------------- 9 17 Certification------------------------------------------- 9 18 Benefits Conditioned Upon Payment----------------------- 9 19 Term of Contract---------------------------------------- 9 20 Rates and Charges by the City--------------------------- 10 21 City Obligation not Separable--------------------------- 10 22 Access to Books and Records--------------------------r- 31 23 Determinations------------------------------------------ 11 24 Penalty for Delinquent Payments------------------------- 11 25 Default------------------------------------------------- 11 26 Notices------------------------------------------------- 12 27 Subject to United States and Authority Contract--------- 12 28 Assignments by City------------------------------------- 12 29 Nondiscrimination in Employment------------------------- 12 CONTRACT between the CANADIAN RIVER MUNICIPAL WATER AUTHORITY and the CITY OF LUBBOCK, TEXAS for providing a MUNICIPAL WATER SUPPLY THIS CONTRACT, made this—day of , 1960, between the CANADIAN RIVER MUNICIPAL WATER AUTHORITY, an authority duly created and existing under the laws of the State of'Texas, and the CITY OF LUBBOCK, a municipal corporation in the State of Texas acting by virtue of authority of general law. WITNESSETH THAT: WHEREAS, the Authority has contracted or is negotiating with the United States for payment of the reimbursable costs of construction, operation, and maintenance of the project works of the Canadian River Project, Texas, which project is designed to provide a municipal water , supply for member cities of the Authority, and WHEREAS, the City desires to secure a municipal water supply from the Authority, and WHEREAS, construction of the project depends upon the negotiation of a sufficient number of contracts for a municipal water supply from the project, and a number of water users within the boundaries of the Authority, and possibly others outside the Authority, must execute contracts to receive a share of the project water supply; NOW, THEREFORE, in consideration of the mutual and dependent covenants herein contained, it is mutually agreed between the parties hereto as follows: GENERAL DEFINITIONS 1. Where used in this contract, a. United States - Shall mean the United States of America, acting through the Secretary of the Interior, or his duly authorized representative. 1 Lubbock, Texas b. Authority - Shall mean the Canadian River Municipal Water Authority, an at}thority duly created and existing under the laws of the State of Texas, acting through its Board of Directors. c. City - Shall mean the City of Lubbock, Texas. d. Member City - Shall mean a city, town, or municipality which is a member of the Authority and is contracting for project water. e. Dam and Reservoir - Shall refer to the Sanford Dam and Reservoir on the Canadian River used for storing and regulating project water, including all lands and rights of way. f. Project - Shall mean the Canadian River Project, Texas, as authorized by the Act of Congress dated December 29, 1950 (64 Stet. 1124). g. Project Water - Shall mean water available for use through the project works for municipal and industrial purposes. h. Protect Water User - Shall refer to all member cities and other contractors, their successors and assigns, which have contracted with the Authority to receive a portion of the project water supply. i. Aqueduct - Shall mean the project system for transport- ing 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. J. Repayment Contract - Shall mean the contract, or contracts, between the Canadian River Municipal Water Authority and the United States of America for construction of the project. k. Normal Water Supply - Shall mean the amount of water which studies indicate will normally be available from the project for delivery each calendar year. Allocations of water are based upon an estimate of 103,000 acre-feet (33,563 million gallons) to normally be available for release from the reservoir each year. 1. Year - Shall mean the period January 1 through the next following December 31. PLAN 2. This contract between the City, which owns and operates its water distribution system, and the Authority is for requiring the Authority to make available for delivery to and use by the City, all or part of the municipal water supply to be used in or for the distribution system of such City. This contract provides for payment solely out of the water system revenues of such City and all moneys herein required to be paid by the City shall constitute an operating expense of the City's water system, and the 2 Lubbock, Texas City shall fix and maintain rates and charges for services rendered by such water system as will be sufficient to pay the expenses thereof, including those contemplated by Articles 1109e, 1109g and 3-113, Vernon's Texas Civil Statutes. CONSTRUCTION REPAYMENT OBLIGATION 3. In consideration of the allocation to it of 37.058 percent of the normal water supply from the project, or a like percentage of any lesser available supply, the City shall pay to the Authority 15.752 per- cent of the actual reimbursable cost of constructing the dam and reser- voir, and 50.975 percent of the actual cost of constructing the aqueduct all as determined by the United States. Such construction charge obli- gation shall be paid in fifty (50) successive annual installments as follows, based upon a total construction obligation allocation to the City of $37,548,000, plus interest during construction and interest on the unamortized balance thereof at the rate of 2.632 percent. FULL CALENDAR:ANNUAL :FULL CALENDAR:ANNUAL :FULL CALENDAR: ANNUAL YEAR AFTER :CONSTRUC-:YEAR AFTER :CONSTRUC-:YEAR AFTER :CONSTRUC- COMMENCEMENT :TION :COMMENCEMENT :TION :COMMENCEMENT :TION OF SERVICE :SERVICE :OF SERVICE :SERVICE :OF SERVICE :SERVICE :CHARGE :CHARGE :CHARGE 1 952,400 18 1,587,100 35 1,634,600 2 990,100 19 1,619,loo 36 1,634,600 3 1,028,5oo 20 i,634,600 37 1,635,200 4 1,o66,800 21 38 5 1,104,500 22 39 6 1,142,800 23 40 7 1,181,100 24 41 8 1,219,100 25 42 9 1,257,200 26 43 1,635,200 10 1,295,000 27 44 1,635,500 11 1,333,300 28 45 12 1,371,100 29 46 13 1,409,400 30 47 1,635,500 14 1,447,700 31 48 1,635,6o0 15 1,485,400 32 49 ,y A1,523,800 33 50 1,635,600 17 1,555,700 34 Should construction costs payable by the Authority to the United States vary from $92,960,000, the amount upon which annual installments are established for repayment by the Authority, the amounts designated in the preceding table shall be adjusted, but not increased unless the City has executed an amendatory contract or contracts by which it agrees to pay an increased amount. The City may make additional payments on the construction repayment obligation at any time, whereupon appropriate adjustments in the schedule of future payments will be made. Under the 3 All terms of the contract between the Authority and the United States, each annual installment due the United States shall become due and payable on or before October 1 of each year commencing with the year immediately following that in which a notice is given by the United States stating that the project is sufficiently complete to permit the initiation of water deliveries and water is available to serve member cities, if such notice is given prior to October 1, otherwise to commence in the second calendar year after such notice is given. The first annual construction repayment obligation payment by the City to the Authority shall become due and payable on or before September 1 of the same year in which the first installment is due and payable by the Authority to the United States. Subsequent installments shall become due consecutively on September 1 of each succeeding year. Payments shall be made on the basis of the above table until all project costs are finally determined by the United States and reported to the Authority at which time a revised schedule of payment shall be prepared based upon the sauce ratio of annual repayment as was used in preparing 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 the necessary amendatory contracts, then the City shall pay to the Authority its percentage share of the total amount theretofore incurred or obligated by the Authority at such time and in such manner as will permit the Authority to meet its obligation to the United States. OPERATION AND MAIN ITANCE CHARGES 4. a. At an appropriate meeting in each calendar year, in no event, however, to be later than November 1, the Board of Directors of the Authority shall determine the total charges estimated to be required during the next year for operation and maintenance of the project includ- ing accumulating the necessary reserve funds. A detailed budget shall be made available to the City at least two weeks prior to the Board meeting for review and comment. b. The City shall pay its share of the total operation and maintenance charges required to deliver water to the City, on the basis of the advance estimates prepared by the Authority. At the end of each year an adjustment will be made in the operation and maintenance charges to reconcile the charges with actual costs, reserve fund require- ments, and water uses. c. Payment of all operation and maintenance charges due from the City shall be made by the City to the Authority on such dates and in such amounts as are designated by the Authority to provide it with funds when needed, as determined by the Authority, provided that no installment shall be due and payable before the day upon which the project is sufficiently complete to permit diversion by the City of the supply of water allocated to it in this contract, or when the 4 Lubbock, Texas project works shall be deemed to have been completed within the meaning of the contract between the United States and the Authority for con- structing and financing the project, all as set forth in a prior written notice by the Authority to the City. Whenever collections from all sources are insufficient to defray Authority operation and maintenance expenses and payments, proportionate additional payments may be required through supplemental notice to the City at least sixty (60) days in advance of the effective date. Such notice shall Set forth the justi- fication for the increase in full detail. WATER SUPPLY 5. a. Quantity - For and in consideration of the payments required to be made under this contract, the Authority agrees to make 12,438 million gallons of untreated project water available to the City for municipal and industrial use during each year of normal supply, which is the City's pro rata share of the project normal water supply. b. Allocations - Nothing in this contract shall be construed as restricting the right of the Authority to enter into firm contracts for delivery of the entire estimated normal water supply of the project, provided, however, that all such contracts shall recognize the right and responsibility of project water users to share in the normal water supply in the ratio of their contract rights. During periods of scarcity when rationing is in the opinion of the Authority required, the allocation of a lesser volume than listed in Article 5a shall not affect the continuing obligation of the City to make the payments provided in this contract. c. Quality of water - Water delivered to the 'City under this contract shall be as received from storage in the Sanford Reservoir. d. Unit of Measurement - The unit of measurements for water delivered hereunder shall be 1,000 gallons of water, U. S. Standard liquid measure. e. Allocated Water not Used - If the City does not use the total amount of water to which it is entitled in any particular year, it shall not retain any carryover rights into succeeding years. f. Other Uses - It is understood that the Project is authorized for the purpose of irrigating land, delivering water for industrial and municipal use, controlling floods, providing recreation and fish and wildlife benefits, and controlling and catching silt. The supply to be available for City use and the price it pays for water may 5 Lubbock, Texas reflect apportionment among these purposes or regulation of releases to coordinate all listed benefits. g. Surplus Water - All project water available for use in excess of the normal water supply, as determined by the Authority, is hereby defined as surplus water. Surplus water may be disposed of by the Authority for municipal and industrial purposes on such terms or at such rates as are established by it. WATER SHORTAGES 6. On account of drought or other causes beyond the reasonable control of the Authority, there may occur at times during any year a shortage in the quantity of water available for transmission to the City by the Authority pursuant to this contract. In no event shall any liability accrue against the Authority, the United States, or any of their officers or employees for any damage, direct or indirect, arising out of any such shortages. CONTROL OF WATER 7. Right and responsibility for the control of all waters of the project to the point or points of delivery shall remain in the Authority or the United States. Upon passing through the Authority's r. meter installed at the point or points of delivery, right and respon- sibility for the control of water shall pass to the City. POINT OF DELIVERY 8. Deliveries of water to the City shall be made at one point on the aqueduct system, which point shall be designated by the City in advance of construction. A location map or plat showing the proposed location of the aqueduct will be available for use by the City in selecting its point of delivery. Thereafter, the City may request that all or any part of its share of the project water supply be delivered at the dam and reservoir, or may request deliveries at additional points on the aqueduct where the City has reserved aqueduct capacity. Upon approval of such request for a change in the point of delivery or for additional points of delivery, the cost of new connections as determined by the Authority shall be advanced by the City as provided in Article 14. ALLOCATION OF AQUEDUCT CAPACITY 9. In the event the combined demand of all water users at a given time for the delivery of water shall exceed the carrying capacity of the aqueduct to the proposed point of diversion, deliveries to project water users will be made equitably on the basis that the maximum rate of delivery to each project water user will be in pro- portion to its share of the designed capacity of the aqueduct. When the carrying capacity of the aqueduct is taxed to its limit, the rate of delivery available for serving the City shall be at least 41.69 million gallons daily (64.50 cubic feet per second). The rate of 6 All delivery will be increased when possible without infringing upon the rights of others, giving consideration to the demands made by all project water users and the relative rights of each which remain unused for the year. The determination of availability of water from time to time, and quantity, shall be made by the Authority, whose determination shall be final. OBLIGATION TO COMPLETE PROJECT 10. The obligation of the Authority to contract for payment of the reimbursable costs of construction, operation, and maintenance of the project shall be conditioned upon the execution of contracts with sufficient water users to produce revenues which, in the judgment of the Authority and the United States, will repay the costs of constructing and operating the project water supply and distribution system. If con- tracts are not secured whereby such estimated costs of the Authority can be met, the Authority shall notify the City, whereupon this contract will be voided. PLEDGE OF CONTRACT 11. This contract, or the repayment obligations assumed by the City under it, may be pledged or assigned by the Authority to the United States as security for repayment of the Authority obligation for construction, operation, and maintenance of the project, but only together with other like contracts with all project water users covering the disposition of the major portion of the project normal water supply. PROJECT ALTERATIONS AND REPAIRS 12. It is expressly recognized by the City that the Authority may be compelled to make necessary alterations, repairs, and installa- tions of new or additional equipment from time to time during the life of this contract, and any suspension of delivery to the City due to such work shall not be cause for claim of damage on the part of the City. However, every reasonable effort shall be made by the Authority to pro- vide the City with water in accordance with this contract. In cases of necessary suspension, the Authority shall give the City as much advance notice as is practicable, in no event to be less than fifteen (15) days, and set forth the estimated duration thereof. In the event any project facility instrumental in the delivery of water to the City is destroyed or damaged as the result of any cause, whether by force majeure or otherwise, so as to make deliveries of water requirements as herein specified impossible, the Authority shall, to the extent of available resources, immediately proceed to restore said project facilities. Each City assumes the responsibility for maintenance of its distribu- tion system from the point of connection with the aqueduct and agrees that its system shall be constructed and maintained to result in a minimum of waste. Should the Authority determine that any part of the City system is causing unreasonable waste, it shall notify the City, and upon failure of the City to remedy the situation, at its option the Authority may discontinue or limit deliveries until the condition complained of has been corrected. 7 A11 LIMITATION ON FINANCIAL LIABILITY OF CITY 13. The City is obligated under this contract to pay its share of the costs of construction, operation, and maintenance of the project. Nothing herein shall be construed as prohibiting the Authority from making reasonable rate increases to cover expenses authorized by this contract. WATER MMUREMENT 14. a. Water shall be metered at the point or points of delivery. The Authority shall furnish, install, operate and maintain at its own expense at said delivery point a master meter of standard type for measuring properly the quantity of water delivered under this contract. Meters for more than one point of delivery requested by the City shall be furnished, installed, operated, and maintained by the Authority, with the cost of the meter and its installation to be paid by the City. The City may, at its option and expense, install, operate and maintain at said delivery points, a check meter or meters of standard type. The City shall have access to all such metering equipment at all reasonable times, but the reading, calibration, and adjustment of the Authority's master meter shall be done only by employees or agents of the Authority. The Authority shall keep a true record of all meter readings as transcribed from the reports of the Authority's employees or agents with respect thereto. Upon written request of the City, the Authority will give it such infor- mation as it may request from the Authority's ,journals or record books or permit the City to have access to the same in the office of the Authority during business hours. b. The Authority shall calibrate its metering equipment as often as it considers necessary and at such times as the City may show reasonable evidence of error. If upon any test, the percentage of any inaccuracy thereof is found to be in excess of 2 percent, registration thereof shall be corrected for a period extending back to the time when such inaccuracy began if such time is ascertainable, and if not, then for a period extending back one-half of the time elapsed since the last date of calibration, but in no event further back than a period of six months. In the event the City has provided no check meter with reference thereto and if for any reason any master meter is out of service or out of repair so that the amount of water delivered cannot be ascertained or computed from the reading thereof, the water delivered during the period such meter is out of service or out of repair shall be agreed upon by the parties thereto, by correcting the error if the percentage of the error is ascertainable by calibration tests or mathematical calculations, or by estimating the quantity of delivery by the deliveries made during preceding periods under similar conditions when the meter was registering accurately. CONTRACT CONTINGENT UPON CONSTRUCTION OF PROJECT 15. This contract shall not be valid and binding unless the repayment contract between the Authority and the United States is confirmed. The Authority agrees to proceed promptly and to the best . 8 'Y L'.+ ks. 10/20/60 !� of its ability for securing construction of the facilities necessary for the performance of its obligations hereunder and to negotiate all contracts necessary to finance the construction of such facilities. It is understood that at this time the Authority is not in a position to guarantee the undertaking of the construction of the facilities or the date upon which it will be able to make the first delivery of water to the City. The 'Authority shall not be liable to the City for any damages occasioned by any delay in the commencement of such service to the City. EASEMENTS 16.. The Authority is hereby granted the right to use any easements, right-of-way, or property held by the City for the purpose of making connections to the point or points of delivery and the ' placing of necessary equipment to carry out the Authority's obligation to deliver water to the City, including related operation and maintenance. CERTIFICATION 17. The City certifies and recites that the execution of this contract is duly authorized by law and by a majority of the resident qualified electors owning taxable property in said City and who have duly rendered the same for taxation, voting at an election held for that purpose within said City; that all acts, conditions, and things required to exist precedent to this contract, to render the same lawful and valid, have been properly done, and happened, and have been performed in regular and due time, form and manner as required by the consitution and laws of the State of Texas, and that this contract does not exceed any constitutional or statutory limitations, and that provision will be made for all payments due hereunder by irrevocably pledging to the pay- ment hereof sufficient revenues of the waterworks system of the City. The City warrants and guarantees that it has not obligated itself, and is not now bound by the issuance of prior bonds or otherwise in such a manner that prohibits or makes inoperative any of the terms, conditions, or obligations herein provided. BENEFITS CONDITIONED UPON PAYMENT 18. Should any charges or payments required by the terms of this contract and levied against any water user be judicially determined to be irregular or void, or the City or its officers be enjoined or restrained from making or collecting any, charges as provided for herein, such user shall have no right to any of the benefits of this contract and no water shall be made available from the project for such user. If it is judicially determined that the City is not authorized to accomplish collections necessary for the sale or distribution of water to meet its obligations under the contract, the Authority is hereby authorized to sell water direct to those using the City supply and apply net revenues therefrom to the credit of the City's account. TERM OF CONTRACT 19. This contract shall be effective on execution and shall continue until 'the'construction repayment obligation is paid in full 9 r All its ability for securing construction of the facilities necessary f the performance of its obligations hereunder and to negotiate con racts necessary to finance the construction of such facilities. It is erstood that at this time the Authority is not in a position o guar an a the undertaking of the construction of the facilities o the date up which it will be able to make the first delivery of wa er to the City. The Authority shall not be liable to the City for damages occasioned y any delay in the commencement of such service t the City. F.SEMENTS 16. Authority is hereby granted the right o use any easements, right o way, or property held by the City fo the purpose of making connects to the point or points of delive and the placing of necessary quipment to carry out the Author ty's obligation to deliver water to th City, including related oiler ion and maintenance. CERTIFICATION 17. The City cer Pies and recites t t the execution of this contract is duly authors ed by law and b a majority of the resident qualified electors owning taxa a property said city and who have duly rendered the same for taxat on, vot at an election held for that purpose within said City; that a acts, onditions, and things required to exist precedent to this contrac to ender the same lawful and valid, have been properly done, and happen , d have been performed in regular and due time, form and manner s required by the constitution and laws of the State of Texas, and this contract does not exceed any constitutional or statutory 1 fats , and that provision will be made for all payments due hereun er by it ocably pledging to the pay- ment hereof the revenues of th water works system of the City. The City warrants and guarantees t it has not obligated itself, and is not now bound by the issuan of prior bonds otherwise in such a manner that prohibits or es inoperative any f the terms, conditions, or obligations herein pr ided. ITS CONDITIONEID UPON P 18. Sho any charges or payments require by the terms of this contract and evied against any water user be Judi ially determined to be irregular r void, or the City or its officers be joined or restrained fr making or collecting any charges as provi for herein, such user s have no right to any of the benefits of thi contract and no water shall be made available from the project for sukh user. i If it is j icially determined that the City is not authorize to accomplis collections necessary for the sale or distribution water I o meet is obligations under the contract, the Authority is her by author ed to sell water direct to those using the City supply an apply net revenues therefrom to the credit of the City's account. / TERM OF CONTRACT 19. This contract shall be effective on execution and shall continue until the construction repayment obligation is paid in full. 9 Ali Upon the expiration of said term the City shall have a vested right to renew said contract indefinitely at appropriate annual service charges so long as a water supply may be available and the City is current on its payments for water service. After the construction repayment obligation is paid, succeeding payments shall be the estimated amounts which will be required to meet the City's proper share of the Authority's obligations. RATES AUD CHARGES BY THE CITY 20. a. City shall fix and collect such rates and charges for water and services to be supplied by its waterworks system as will make possible the prompt payment of all expenses of operating and maintaining its waterworks system, the making of all payments contracted hereunder, and the prompt payment of the principal and interest on all of its obligations payable from the revenues of its waterworks system. The City may in its discretion, as permitted under laws at the time effective, appropriate money from any sources for the purpose of relieving the necessity of increasing the said rates and, charges for water service. b. The Authority shall never have the right to demand payment by the City of any obligation assumed or imposed on it under and by virtue of this contract from funds raised or to be raised by taxation. The City's obligations under this contract shall never be construed to be a debt of the City of such kind as to require it under the Constitution and laws of the State of Texas to levy and collect a tax to discharge such obligation, it being expressly understood by the parties hereto that all payments due by the City hereunder are to be made from water revenues received by the City. c. The City represents and covenants that all payments to be made hereunder by it shall constitute Operating Expenses of its waterworks system as defined in Article 1113, Vernon's Texas Civil Statutes. d. Should the City fail to collect charges due from any water user, or should the City be prevented from collecting such charges by any judicial proceeding, or otherwise fail to collect them, no such water user shall receive water available under this contract. The Authority reserves the right without liability to refuse delivery of water to the City in the event the City fails to pay charges at the time and in the manner and amounts provided for in this contract. CITY OBLIGATION NOT SEPARABLE 21. The City as a whole is obligated to pay to the Authority the charges becoming due as provided in this contract, notwithstanding the default in the payment to the City by individual water users of 1 charges fixed by the City. 10 r All ACCESS TO BOOKS AND RECORDS 22. Each party shall have the right, during office hours, to inspect and to make copies of the other party's books and official records relating to matters covered by this contract. ERKMATIONS 23. 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 conclusive, said terms shall not be construed as permitting such action to be predicated upon arbitrary, capricious, or unreasonable opinions or determinations. PENALTY FOR DELINQUENT PAYMENTS 24. Every installment or charge required to be paid to the Authority under this contract which remains unpaid after it has become due and payable, shall be subject to a penalty of one-half of one percent per month from the date of delinquency. DEFAULT �\ 25. In the event the City shall fail to pay all or any part of its obligations incurred under this contract, and such delinquency shall have continued for a period of not less than two years, the Authority may, at its option, in addition to all other rights provided in this contract, exercise all or any of the following rights and remedies. a. The Authority may stipulate water rates to be charged by the City and the City shall conform its rates accordingly. b. The Authority may withhold all or any part of the normal water supply allocated to the City by this contract and may sell or dispose of such part without obligation, responsibility, or liability for damages to the City and shall apply the net revenue from said sales as a credit upon the obligation of the City to the Authority. c. The Authority may terminate this contract whereupon all rights thereunder accruing to the City shall cease and determine. Such termination, however, shall not relieve the City from its obliga- tion to pay all costs, charges, or installments due and payable under this contract prior to the effective date of such termination. 11 r Lubbock, Texas All rights of action for breach of this contract are reserved to the Authority or the United States. Nothing contained in this con- tract shall be construed as abridging, limiting, or depriving the United 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 pro- visions of this contract shall not be deemed to be a waiver of any pro- visions hereof, or of any other or subsequent breach of any provision hereof. NOTICES 26. Any notice authorized or required by this contract shall be deemed properly given, except where otherwise herein specifically provided, if mailed postage prepaid to the office of the General Manager, Canadian River Municipal Water Authority, on behalf of the Authority, and to the Mayor of the City of Lubbock, at Lubbock, Texas, on behalf of the City. The designation of the person to be notified., or the address of such person, may be changed at any time by similar notice. SUBJECT TO UNITED STATES AND AUTHORITY CONTRACT 27. This contract shall be subject to the terms, conditions, and provisions of the repayment contract between the Authority and the United States for constructing and financing the project, as amended or modified. This contract cannot be amended or supplemented without the advance written approval of a duly authorized representative of the United States. The Authority may assign all or any part of its rights or authority under this contract to the United States. ASSIGNMENTS BY CITY 28. The City may sell or assign this contract or any portion of its allocation of the right to receive project water only with the approval of the Authority and the United States. Under any assignment, it must be established to the Authority's satisfaction that the water right may be transferred under Texas law and the laws of the Vnited States for diversion as proposed. The alternate user must enter a con- tract or contracts satisfactory to the Authority and the United States. NONDISCRIME9ATION IN EMPLOYMENT 29. a. In connection with the performance of work under this contract, the City 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, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprentice- ship. The City agrees to post hereafter in conspicuous places, avail- able for employees and applicants for employment, notices to be provided by the United States setting forth the provisions of the nondiscrimination clause. 12 Lubbock, Texas b. The City further agrees to insert the foregoing pro- vision in all subcontracts hereunder, except subcontracts for standard commercial supplies or raw materials. IN WITNESS WHEREOF, the parties hereto acting under authority of their respective governing bodies have caused this contract to be duly executed in several counterparts, each of which shall constitute an original, all as of the day and year first above written. CANADIAN RIVER MUNICIPAL WATER AUTHORITY By President CITY OF LUBBOCK, TEXAS BY Title ATTEST: Secretary (SEAL) ATTEST: City Clerk Approved as to Form: City Attorney 13 MINUTES PERTAINING TO PASSAGE AND ADOPTION OF RESOLUTION AND ORDER FOR WATER CONTRACT ELECTION TEE STATE OF TEAS 4 COUNTY OF LUBBOCK Q CITY OF LUBBOCK ON TEIS, the 13th day of Dctober.r 1960, the City on of the City of Lubbock , Texas, convened in Regular session, at the regular meeting place thereof in the City Eall, there being present and in attendance the following members, to-wit: and the following absent: None , constituting a quorum; at which time the following among other business was transacted, to-wit: It vas moved by Maner and seconded by Thnmpaon that there be submitted to the qualified electors of the City vho own taxable property therein and who have duly rendered the same for taxation, the question of vhether the Mayor on behalf of the City shall be authorized to enter into a eater supply contract with the Canadian River Municipal Water Authority. Thereupon Maner introduced a resolution and order calling an election for the purpose of submitting the proposition to a vote of the qualified electors of the City aforementioned, and moved the passage and adoption of such resolution and order. The motion was seconded by Thompson The motion carrying with it the passage and adoption of the resolu- tion and order for election, prevailed by the following vote: AYES: Thompson, Maner, Chappell, O'Mara and Mayor Casey VOES: NONE The Mayor then announced that the resolution and order had been finally passed and adopted. MINUPPES APPROVED, this the _ day of 1960. �7. Mayor, City of ATTEST: hl&oa; Z2 City cretary, CityLof Texas (City Seal) NOTICE OF WATER CONTRACT ELECTION THE STATE OF TEXAS CITY OF LUBBOCK COMM OF LUBBOCK TO ALL QUALIFIED ELECTORS OF THE CITY OF Lubbock , TEXAS, WHO OWN TAXABLE PROPERTY IN SAID CITY, AND WHO HAVE DULY RENDERED THE SAME FOR TAXATION: TAKE NOTICE that an election will be held in the City of Lubbock , TEXAS, on the 22nd day of November , 1960 In obedience to a resolution and order duly entered by the City Commis- sion of the City of Lubbock on the 13th day of October , 1960, which is as follows: "RESOLUTION AND ORDER calling an election on the 22nd day of November , 1960, in the City of Lubbock , Texas, for the purpose of submitting to the qualified electors of the City who own taxable property therein and who have duly rendered the same for taxation the question of whether the Mayor , on behalf of the City shall be authorized to enter into a water supply contract with the Canadian River Municipal Water Authority; and enacting other provisions relating to the subject and purpose of this resolution and order." WHEREAS, the City of Lubbock. Texas is in need of a water supply which may be obtained by contract with the Canadian River Municipal Water Authority; and City of Lubbock, Texas WHEREAS, theCity Commission of the/ s received from the Board of Directors of the Canadian River Municipal Water Authority notice to call a water supply contract election in accordance with the provisions of Article 8280-154 R.C.S. of Texas, 1925, as emended, such election to be held under the provisions of Article 1109e, R.C.S. of Texas and other applicable laws; and WHEREAS, the City Commission deems it advisable and to the best interest of the City and its inhabitants to call and conduct an election as hereinafter provided for on the proposition hereinafter stated; therefore BE IT RESOLVED AND ORDERED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK, TEXAS SECTION 1: That an election be held within and throughout the limits of eta City of Lubbock Texas on the 22nd day of November , 1960, at which time there shall be submitted to the qualified electors of the City who own taxable property therein, and who have duly rendered the same for taxation, the following proposition: "SHALL the Mayor of the City of Lubbock, Texas be authorized to contract with the Canadian River Municipal Water Authority for a water supply for said City as authorized by Article 1109e, R.C.S. of Texas, 1925, and other applicable laws?" SECTI0N 2: That said election shall be held under the provisions of and in accordance with the laws of this State applicable thereto, particularly the provisions of Article 1109e, R.C.S. of Texas, 1925, and only qualified electors of said City who own taxable property therein and who have duly rendered the same for taxation shall be permitted to vote. SECTION 3: That the polling places and officers of said election are as follows: POLLING FIACE PRESIDING JUDGE 1 Fire Station Number One Smylie C. Wilson 2 Carroll Tompson Jr. High School H. D. Woods 3 J. T. Hutchinson Jr. High School Mrs. Weldon Gibbs 4. O. L. Slaton Jr. High School V. R. Plummer 5 Chris Harwell School Mrs. S. E. West 6 Dunbar High School George Wood 7 Zenith Ave. Fire Station J. Clayton Mallett 8 Sam Arnett School A. C. Bowden 9 College Ave. Fire Station Ray Downing 10 George Rush School G. A. Barnett 11 Lou Stubbs School Paul Judah 12 Atkins Jr. High School Robert B. Carow SECTION 4: That the ballots for said election shall be � prepared in sufficient number and in conformity with Chapter 6, V.A.T.C.S., Election Code, adopted by the 52nd Legislature in 1951, as amended, and that printed on such ballots shall appear the following: 7OR THE WATER CONTRACT" "AGAINST THE WATER CONTRACT" AS TO THE FOREGOING, each voter may mark out with pen or pencil one of such expressions, thus leaving the other as indicating his vote on the proposition. SECTION 5: In the event the results of the aforesaid election are favorable to the proposition for the water contract, the City Commission shall pass an ordinance prescribing the form and substance of the contract and directing its execution. A form of said proposed contract is on file in the Office of the City Secretary . and is there available for public inspection. The contract thus to be authorized will be substantially in such form. SECTION 6: A substantial copy of this resolution and order, signed by the Mayor and attested by the City Secretary, shall serve as proper notice of said election. Notice of said election shall be given by posting and publication of a copy of this resolution and order, at the top of which shall appear the words "NOTICE OF WATER CONTRACT ELECTION". Said notice shall be posted at the City Hall and at two other public places in the City, not less than fourteen (14) full days prior to the date on which said election is to be held and be published on the same day in each of two successive weeks in the Lubbock Avalanche Journal which is a newspaper of general circulation, published in the City of Lubbock, Texas . the first of said publications to be made not less than fourteen 1 ) full days prior to the date set for said election. The City Secretary shall cause said notice to be prepared, posted and published as aforesaid, and make due returns thereof to the City Commission SECTION 7: Immediately after said election, the officers shall make due returns of the results thereof to the City Secretary for canvassing by the City Commission SECTION 8: All resolutions or orders heretofore passed and adapted in conflict herewith are hereby repealed and rescinded. PASSED, APPROVED AND ADOPTED, this the 13th day of October , 1960. i Mayor, City of Lubbock , Texas ATTEST: r JOA0,11 A city Secretary, C y of bbock Texas (City Seal) GitY Aftorrrey C i THIS NOTICE of election is issued and given by the under- signed, pursuant to authority conferred by virtue of the above and foregoing resolution and order of the City Commission of the city of Lubbock , Texas, and under authority of law. WITNESS MY HAND AND THE SEAL OF THE CITY OF LUBBOCK , Texas, this the 13th day of October , 1960. Mayor, City of Lubbock Texas ATTEST: AQ6;z7 Cify Secretary, trity of Lubbock, T 1-. a s Texas (City Seal)