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HomeMy WebLinkAboutResolution - 2008-R0304 - Agreement To Provision Of Water - Roosevelt ISD - 08_19_2008Resolutiou No. 2008-R0304 August 19, 2008 Item No. 2.7 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock, an Agreement and Release Related to Provision of Water by and between the City of Lubbock and Roosevelt Independent School District, and all related documents. Said Agreement and Release Related to Provision of Water is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 19th day of August 2008. <-�4w ovl�rlow� TCFM MARTIN, MAYOR ATTEST: APPROVED AS TO CONTENT: Deputy City Manager APPROVED AS TO FORM: .� G^r-�E� Richard K. Casner First Assistant City Attorney Roosevelt ISD.res Resolution No. 2008-RO304 AGREEMENT AND RELEASE RELATED TO PROVISION OF WATER This Agreement and Release Related to Provision of Water (the "Agreement") is entered into effective this 19th day of August , 2008, by and between the City of Lubbock, Texas, a Texas home rule municipal corporation (the "City") and Roosevelt Independent School District, an independent school district of the State of Texas ("RISD"). WITNESSETH WHEREAS, RISD operates a school in eastern Lubbock County, Texas wherein groundwater is utilized for its public water supply; WHEREAS, RISD has experienced issues regarding the quality of the groundwater; WHEREAS, the City owns and operates an effluent land application site, located in Lubbock County, Texas; WHEREAS, RISD has alleged that Lubbock's effluent application practices have impaired, to some extent, RISD's water supply; WHEREAS, bonafide disputes and controversies exist between the City and RISD, both as to liability and the amount thereof, if any, and for reason of such disputes and controversies, the parties hereto desire to compromise and settle all claims and causes of action (if any) of any kind whatsoever which RISD has or may have arising from or related to the alleged impairment of RISD's water supply as a result of the City's effluent land application operations and desire and intend that the full terms and conditions of the agreement be set forth in this document. NOW, THEREFORE, the City and RISD, for and in consideration of the mutual promises, covenants, obligations, and benefits described in this Agreement, said consideration including inducement for the City to execute an amendment of water supply contract with the Town of Ransom Canyon ("Ransom Canyon"), the receipt and sufficiency of such consideration being acknowledged and stipulated, City and RISD agree as follows: Section 1.01. Provision of Water. The City hereby agrees to offer to Ransom Canyon to amend (the "Ransom Canyon Amendment") that certain Contract, dated on or about December 15, 1988, Resolution No. 2987 (the "Ransom Canyon Contract"), whereby Ransom Canyon shall contract with the City for deliveries of additional potable water for ultimate delivery by Ransom Canyon to RISD. The Ransom Canyon Amendment shall provide that Ransom Canyon is bound to deliver water to RISD, in the event so requested by RISD, and provide a dedication to RISD of a portion of the water provided to Ransom Canyon by the City, as follows: the amount of 100,000 gallons during any 24-hour period of time; and the amount of 36,500,000 gallons during any 365 day period of time and 36,600,000 gallons during any 366 day period of time. A true and correct copy of the proposed Ransom Canyon Amendment is attached hereto as Exhibit "A". If Ransom Canyon refuses the offer to amend that certain Ransom Canyon Contract, then the City of Lubbock agrees to negotiate with RISD for the sale of water for the same amounts of water and related time frames outlined above. This agreement (either partially or wholly) is not effective, and may not be enforced, unless and until the Ransom Canyon Amendment is executed by all necessary parties and becomes effective. This Agreement shall be null and void and without effect whatsoever if the City and Ransom Canyon shall not have entered into the Ransom Canyon Amendment on or before 90 days after the effective date hereof. Section 1.02. Charges for Water. The Ransom Canyon Amendment shall provide that Ransom Canyon shall charge to, and collect from RISD for the retail water service provided by Ransom Canyon to RISD a maximum of sixty percent (60%) over and above the actual cost of RISD — Agreement Related to Provision of Water Page 2 of 15 the water sold by the City to Ransom Canyon, as evidenced by the billing from the City, said increase related to costs for administration and system delivery expenses of Ransom Canyon. Section 1.03. RISD Agreement with Ransom Canyon. On or before the effective date of this Agreement, RISD shall enter into a contract or service agreement with Ransom Canyon for the purchase by RISD of up to 100,000 gallons of water during any 24 hour period of time, 36,500,000 gallons during any 365 day period of time, and 36,600,000 gallons during any 366 day period of time, at a point of delivery mutually acceptable to RISD and Ransom Canyon. RISD shall not be permitted to bank or carry over any unused water for use in the next year or to any future years during the term of this Agreement. The delivery of the potable water to Ransom Canyon, as provided in the Ransom Canyon Amendment, shall satisfy, in all events and circumstances, and for all purposes, the City's obligations to RISD hereunder. RISD acknowledges and stipulates that the responsibility for service to it is solely by and between RISD and Ransom Canyon, except as provided below. Section 1.04. Use of Water. RISD expressly stipulates that the water provided to it via the Ransom Canyon Amendment, shall be utilized by RISD solely on the grounds of the RISD campus, described in Exhibit "B", attached hereto, for non -irrigation purposes. Notwithstanding the prohibition on irrigation use of such water, RISD may incidentally utilize the water for minor irrigation activities due to the configuration of existing RISD infrastructure, as depicted on Exhibit "C", attached hereto. Section 1.05. Quality of Water. RISD expressly stipulates that the City shall have no responsibility of any kind or nature concerning the quality of the water delivered to RISD by Ransom Canyon and that all issues of water quality shall be addressed in the contract or service agreement by and between RISD and Ransom Canyon. RISD further expressly stipulates that all RISD — Agreement Related to Provision of Water Page 3 of 15 responsibility and liability for the quality of water delivered by the City to Ransom Canyon ceases at the point of delivery, as defined in the Ransom Canyon Contract. THE CITY MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESSED, STATUTORY, OR IMPLIED, INCLUDING, WITHOUT LIMITATION, AS TO THE DESCRIPTION, TITLE, VALUE, QUALITY, PHYSICAL CONDITION, MERCHANTABILITY, OR FITNESS FOR PURPOSE OF THE WATER, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT. City warrants that the water it provides to Ransom Canyon as anticipated by this Agreement will be of similar quality as supplied to citizens and residents of the City of Lubbock, treated by disinfectants and such other treatment as may in the future be directed by the City Council of the City of Lubbock and meeting the applicable required drinking water quality standards of the Texas Commission on Environmental Quality and other local, State and Federal governmental agencies at the point of delivery, as defined in the Ransom Canyon Contract, as same may be amended from time to time, as applicable during the term of this Agreement. RISD further acknowledges that, in entering into this Agreement, it has relied solely upon its independent examination of Ransom Canyon's potable water system and water and the independent estimates, computations, evaluations and studies based thereon. The City makes no warranty or representation as to the accuracy, completeness or usefulness of any information furnished to RISD or Ransom Canyon, if any. Reliance on any material so furnished shall not give rise to any cause, claim or action against the City, its officers, employees, elected officials and/or agents, and any such reliance shall be at RISD's sole risk. RISD shall be responsible at all times for the sanitary and safe condition of the water provided to it by Ransom Canyon, and shall comply with all statutes, laws, rules, RISD — Agreement Related to Provision of Water Page 4 of 15 regulations and orders of the Texas Commission on Environmental Quality and any other agency or entity having jurisdiction over such matters, regarding maintenance of water quality. Section 1.06. Construction Activities. It will be necessary to design and construct water delivery infrastructure (the "Subject Infrastructure") to accomplish the delivery of water from Ransom Canyon to RISD, as described herein. RISD and the City agree that RISD shall, subject to the below described provisions, be responsible for all activities and costs related to the design and construction of the Subject Infrastructure. (i) Design - RISD shall retain a Registered Professional Engineer licensed by the State of Texas to prepare the engineering design of the Subject Infrastructure. The City shall have the right to review and approve the design of the Subject Infrastructure, such approval to not be unreasonably withheld. In the event the City and RISD cannot agree on the design of the Subject Infrastructure, the decision of the City shall be final and binding for all purposes. (ii) Construction — RISD shall comply with all applicable laws regarding the procurement and solicitation of any work regarding the construction of the Subject Infrastructure. All processes related to such procurement shall be documented by RISD and provided to the City, if so requested by the City. No construction of the Subject Infrastructure shall be commenced unless and until the plans and design of the Subject Infrastructure have received the prior written approval of the City. The design and construction of the Subject Infrastructure shall be in conformity with the Design Standards and Specifications for Water and Sewer, said standards being provided to RISD prior to the execution hereof by RISD. RISD shall submit to the City true and correct copies of all invoices related to the Subject Infrastructure received by it, whether invoiced by the design engineer, party providing the RISD — Agreement Related to Provision of Water Page 5 of 15 construction activities, or any other party or matter related to the design and/or construction of the Subject Infrastructure. The City shall have the right, at all times, to observe any and all activities related to the construction or any other activity related to the Subject Infrastructure. (iii) Finance of Activities - Except as specifically provided in Section 1.07, below, RISD is responsible for all costs and expenses, of any kind, type or nature, related to the design and construction of the Subject Infrastructure. (iv) Attorney Opinion - RISD shall, as a condition precedent to any performance required of or by the City under this Agreement, submit to the City, in form and substance satisfactory to the City, an opinion to the City, prepared by an attorney licensed to practice in the State of Texas and approved by the City, opining that all obligations of RISD provided in this Agreement constitute non -usurious, irrevocable, valid and binding obligations of RISD in accordance with all of the terms of this Agreement. (vi) City Not Responsible - Notwithstanding the rights of the City to approve and/or observe certain activities as prescribed herein, the City shall not have any liability or responsibility, and RISD hereby expressly releases the City, its elected officials, officers, agents, and employees from, any liability or responsibility for such activities and/or for any defect of any kind, type or nature, in the Subject Infrastructure. Further, such rights of the City shall not relieve RISD from any or all of its obligations provided herein. RISD further expressly stipulates that the City shall have no responsibility of any kind for (i) the design and/or construction of the Subject Infrastructure; or (ii) the pressure or rate of water delivery from Ransom Canyon to RISD and that any requirements, terms, provisions, obligations or conditions on the rate of water delivery, pressure of such delivery, place of delivery, method of delivery RISD — Agreement Related to Provision of Water Page 6 Of 15 and/or any other matter of any kind related to the water delivery and/or sale by Ransom Canyon to RISD, shall solely be by and between RISD and Ransom Canyon and shall be addressed in the contract or service agreement by and between Ransom Canyon and RISD. Section 1.07. City Participation in Construction. In consideration of the release by RISD and the mutual agreements, covenants and obligations set forth herein, the City hereby agrees to provide to RISD One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) (the "City Participation Amount") to assist RISD in the design and construction of the Subject Infrastructure related to the delivery of water from Ransom Canyon to RISD. City shall pay the City Participation Amount to RISD within thirty (30) days after the execution by the City and Ransom Canyon of the Ransom Canyon Amendment, and such payment is a condition precedent to the releases of the City provided herein and the obligation of RISD to perform any of the duties it undertakes via this Agreement. Section 1.08. Release by RISD. In consideration of the payment of the City Participation Amount, the benefits that RISD may enjoy due to the City of Lubbock agreeing to deliver water to Ransom Canyon for the benefit of RISD, as provided by the Ransom Canyon Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and stipulated by all parties hereto, RISD does hereto enter into this Agreement and does hereby release, acquit and forever discharge the City, its predecessors, successors, assigns, City Council, managers, employees, directors, legal representatives, agents and attorneys (collectively, the "Releasees") of and from any and all liabilities, claims, demands, damages, attorney's fees, costs, liens, whether statutorily provided or otherwise, expenses, services, actions, causes of action, or suits in equity, for whatsoever kind or nature, whether heretofore or hereafter accruing, which RISD now has or may hereafter have, whether known or unknown, for RISD — Agreement Related to Provision of Water Page 7 of 15 or because of any matter or thing done, admitted or suffered as a direct or indirect result of or related to in any way, manner or form, the land application or storage of effluent activities of the City, including without limitation, the impairment of groundwater therefrom and/or any other activity or omission of the City that could have a detrimental affect on the quality of groundwater (the "Activities") This Agreement includes any transaction, occurrence, matter or thing whatsoever, whether known or unknown, arising from or related to the Activities, including but not limited to, all claims, demands, causes of action of any nature, whether in contract or in tort, or arising out of, under or by virtue of the United States or Texas Constitution, or any statute, rule, order or regulation, or judicial decision that is recognized by law or that may be created or recognized in the future by any manner, for past, present and future damages or loss, or remedies of any kind, including but not limited to: all actual damages, damages to real property, inverse condemnation, all exemplary and punitive damages, all penalties of any kind or statutory damages. RISD hereby declares that it fully understands the terms of this Agreement, and voluntarily accepts the above stated consideration for the purposes of making full and final settlement of any and all the injuries, damages, expenses, and inconveniences above mentioned. The release and discharge of liability of City and its officials stated herein is expressly made contingent on payment by City to RISD of the City Participation Amount as provided in this Agreement, and in no event shall RISD be bound by said release of liability if City refuses or fails to pay the City Participation Amount as provided herein. In the event that City refuses or fails to pay the City Participation Amount to RISD as provided herein, RISD expressly reserves its right to proceed against City in any court of competent jurisdiction with and for any and all liabilities, claims, demands, damages, attorney's fees, costs, liens, whether statutorily provided RISD — Agreement Related to Provision of Water Page 8 of 15 or otherwise, expenses, services, actions, causes of action, or suits in equity, for whatsoever kind or nature, whether heretofore or hereafter accruing, whether known or unknown, for or because of any matter or thing done, admitted or suffered as a direct or indirect result of or related to in any way, manner or form, the land application or storage of effluent activities of City, including, but not limited to, the impairment of groundwater therefrom and/or any other activity or omission of City that could have a detrimental affect on the quality of groundwater. Upon payment of the City Participation amount, RISD shall execute and deliver to the City on acknowledgement of (i) the receipt of such payment; and (ii) the satisfaction of all contingencies and conditions of the releases of the City by RISD as is prescribed in this Section 1.08. RISD hereby represents and warrants to City that it, and it alone, owns the rights, interests, demands, actions, or causes of actions, obligations or any other matter covered by this Agreement. It is further expressly understood, stipulated and agreed that the terms of this Agreement are contractual and not merely recitals and that the agreements herein contained and the consideration set forth herein is to compromise doubtful and disputed claims, avoid litigation, buy peace, and that no payments made nor released or other consideration provided shall be construed as an admission of liability, all liability being expressly denied by Releasees. RISD, by entering into this Agreement, acknowledges that the settlement set forth herein is a compromise of disputed claims as to the liability of the Releasees for RISD's injuries and damages, if any, and the consideration made herein is not to be construed as an admission of liability on the part of the Releasees. It is understood and stipulated by RISD that the existence of any liability or wrongdoing has been, and continues to be, expressly denied by the Releasees. RISD — Agreement Related to Provision of Water Page 9 Of 15 All signatories to this Agreement hereby warrant to the other that they have the authority to execute this Agreement and bind the respective parties. If this Agreement does not become effective for any reason, it shall be deemed negotiations for settlement purposes only and shall not under any circumstance be admissible in evidence or usable for any purposes whatsoever. This Agreement has been and shall be construed to have been drafted by all parties thereto so that any rule of construing ambiguities against the party drafting the Agreement shall have no force or effect. If any provision, word, phrase, clause, sentence or paragraph of this Agreement or the application thereof to any person or circumstance is or shall ever be held by court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of this Agreement and the application of such provision, word, phrase, clause, sentence or paragraph or other part of this Agreement to other persons or circumstances shall nevertheless survive and continue in full force and effect without being impaired or invalidated in any way. Section 1.09. Current Revenues. Any and all consideration payable hereunder shall be paid by the current revenues available to the paying party. City and RISD herein recognize that the continuation of any agreement at the close of any given fiscal year of the City of Lubbock, Texas, or of the Roosevelt Independent School District, shall be subject to budget approval by each governmental unit's governing body, conditioned on a best efforts attempt by each governmental unit's governing body to obtain and appropriate funds for payment of the amounts due under this Agreement. Section 1.10. Effective Date. The effective date of this Agreement shall be 1, 2008. Notwithstanding the effective date, the execution by each party hereto RISD — Agreement Related to Provision of Water Page 10 Of 15 creates an irrevocable obligation of each respective party according to the terms, provisions and conditions set forth herein. Section 1.11. Applicable Law and Venue. This Agreement shall be construed under the laws of the State of Texas and all obligations of the parties hereunder are performable in Lubbock County, Texas. SOLE AND EXCLUSIVE VENUE FOR ANY ACTION ARISING HEREUNDER OR RELATED HERETO SHALL LIE SOLELY WITHIN THE COURTS OF COMPETENT JURISDICTION IN LUBBOCK COUNTY, TEXAS. EXECUTED this 19th day of August , 2008. CITY OF LUBBOCK TOM MARTIN, MAYOR ATTEST: Reb cca Garza; City Secretary APPROVED AS TO CONTENT: Th mas Adams, Deputy ity Manager/Water Utilities Director APPROVED AS TO FORM: Richard K. Casner, First Assistant City Attorney RISD — Agreement Related to Provision of Water Page 11 of 15 ROOSEVELT INDEPENDENT SCHOOL DISTRICT BY: / NAME:��sv� TITLE: ,��/%��� �✓/�� ATTEST: ml/Richard/RISD-Agee related to provision of water- 032608August 9, 2007 as amended by TAdams Feb 4, 2008. RISD — Agreement Related to Provision of Water Page 12 Of 15 Resolution No. 2008-RO304 EXHIBIT "A" To AGREEMENT AND RELEASE RELATED TO PROVISION OF WATER PROPOSED RANSOM CANYON AMENDMENT RISD — Agreement Related to Provision of Water Page 13 of 15 G Resolution No. 2008-RO304 TOWN OF RANSOM CANYON 24 LEE KITCHENS DRIVE RANSOM CANYON, TEXAS 79366-2299 (806) 829-2470 • FAX (806) 829-2680 July 24, 2008 Mr. Tom Adams Deputy City Manager City of Lubbock P.O. Box 2000 Lubbock, TX 79457 Dear Tom, Attached, please find an executed copy of the contract between the Town of Ransom Canyon and the Roosevelt Independent School District for water services. Should you have any questions or require further information, please feel free to contact me at 829-2470. an ^ r� urvat M a City Secretary Town of Ransom Canyon 806-829-2470 State of Texas § County of Lubbock § This contract is made by and between the Town of Ransom Canyon (herein called "CITY', a municipal corporation located in Lubbock county, acting by and through its undersigned duly authorized mayor as authorized by specific action of its city council; and the Roosevelt Independent School District (herein called "DISTRICT'), a school district in Lubbock county, acting by and through its undersigned duly authorized superintendent, authorized by specific action of its Board of Trustees. 1. RECITALS 1-1. This contract is made to provide DISTRICT access to CITY'S existing water system and to define the terms and conditions under which the CITY will construct and maintain water system capacity adequate to provide a specific volume of water for DISTRICT's water system to make water available for property located within the Roosevelt ISD facilities located in Lubbock County Texas. 1-2. For and in consideration of the mutual agreement, covenants, obligations, and benefits of this Contract, the CITY and DISTRICT contract and agree as follows: No Text 2. DEFINITIONS All words and phrases used in this contract shall be construed interpreted in accordance with their accepted construction and usage in the operation of municipally -owned water utilities at the time this contract is signed. 3. DISTRICT APPLIES FOR WATER SERVICE DISTRICT makes application to CITY that CITY furnish water service to DISTRICT by providing access to CITY'S existing water system and by constructing and maintaining water system capacity adequate to provide water service to DISTRICT water system for the facilities described in this contract. 4. TERMS PROVISIONS AND CONSIDERATIONS CITY will furnish such services as required by the terms of this contract in consideration of the commitments made by DISTRICT to CITY and to each other under the terms of this contract. 5. CITY SHALL FURNISH CERTAIN WATER SYSTEM FACILITIES AND DISTRICT SHALL COMPLY WITH CERTAIN CONDITIONS OF SERVICE• MUTUAL CONDITIONS: TERM 6. CITY Shall Furnish Facilities The CITY shall furnish its existing water system facilities and additional water system facilities as are necessary to provide water service to DISTRICT'S water system for the DISTRICT'S facilities under such conditions as are provided as follows: 2 6-1.1 Ouality and Treatment Potable water of similar quality supplied to citizens and residents of the Town of Ransom Canyon, Texas, treated by disinfectants and such other treatment as may in the future be directed by the City Council of the Town of Ransom Canyon meeting the applicable quality standards of the Texas State Commission on Environmental Quality and other local, State and Federal governmental agencies at the point of delivery hereinafter provided during the term of this contract or of any renewal or extension thereof. CITY may furnish such supply out of surface water, ground water, or both, at its discretion. 6-1.2 Ouantity CITY shall supply quantities of water to DISTRICT not to exceed any of the following limitations: 100,000 gallons (0.261 acre-feet) during any 24-hour period of time; or 36,500,000 gallons (95.211 acre-feet) during any 365-day year period of time, and 36,600,000 gallons (95.472 acre-feet) during any 366-day year period of time, as measured at the POINT OF DELIVERY. The POINT OF DELIVERY will be at a measuring device located within 100-feet of the DISTRICT'S connection into the CITY'S existing 6-inch pipeline between the CITY'S water distribution system and the CITY'S elevated storage tank. The location of the POINT OF DELIVERY is shown on the vicinity map attached hereto as Exhibit "A" and made a part hereof for all purposes. The measuring device shall be located in an area reasonably accessible by CITY at all times. This CITY shall install a metering station at the POINT OF DELIVERY. The measuring device will perform the following functions. (1) measure the instantaneous flow of gallons per day; (2) measure peak hourly flow during the day of maximum flow in gallons per day; and (3) measure the cumulative volume of water taken. The volumes specified in this paragraph shall be subject to and limited by the CITY'S power to conserve and ration water as provided by sections 6-2.5 and 6-3.1 of this contract and shall be contingent upon the CITY's completion of facilities necessary or convenient to deliver the water from the CITY'S existing facilities to the POINT OF DELIVERY, which shall not be unreasonably delayed by the CITY. Title to the water delivered by CITY to DISTRICT shall change at the measuring device as provided by paragraph 6-1.3 of this contract. 6-1.3 Point of Delivery and Pressure Water will be delivered at a reasonable flow rate adequate to meet maximum daily demand and at an adequate pressure at the meter located at the point of delivery to transport water to the DISTRICT's water storage facility. POINT OF DELIVERY as used in this contract shall mean the point at which the water supplied under this contract passes through the meter described in section 6-1.2 of this contract and exits said meter into the facilities owned or operated by DISTRICT as shown in exhibit "A", attached hereto and made a part hereof. 6-1.4 Metering Equipment CITY shall install and maintain, at its own expense, the necessary metering equipment at the POINT OF DELIVERY and the required devices of standard N type for properly measuring the quantity of water delivered to the DISTRICT. The CITY shall perform maintenance on such equipment and required devices not less frequently than once every twelve (12) months, or more frequently than once every three (3) months. If the metering equipment installed by the CITY at the POINT OF DELIVERY has a margin of error of three percent (3%) or less when tested, then its readings shall be deemed to be accurate. If testing reveals that previous readings of the metering equipment were inaccurate then CITY shall correct these previous readings in accordance with the percentage of inaccuracy found by such tests for a period extending back one-half (112) of the time elapsed since the last calibration date of the metering equipment but, in no event, further back than a period of six (6) months. If the meter is out of service or out of repair so that the amount of water delivered to the DISTRICT cannot be ascertained or computed from the reading thereof, then the water delivered during the period such meter is out of service or out of repair shall be estimated upon the basis of the best data available as determined by the CITY and DISTRICT. The metering equipment register shall be read by the CITY at least once a month. 6-1.5 Billing Procedure A monthly statement of the amount of water determined to be consumed by DISTRICT through the meter described in section 6-1.2 of this contract during the preceding month shall be mailed to DISTRICT. All statements for water so consumed shall be due and payable in accordance with Chapter 2251 of the Texas Government Code. Any interest charged by the City for overdue payments shall be in accordance with Chapter 2251 of the Texas Government Code. If the 5 District fails to make timely payments as provided for under this Contract, the CITY may suspend its services in accordance with Chapter 2251 of the Texas Government Code. In the event of such suspension, the DISTRICT shall have thirty (30) days to pay all delinquent charges, reconnect charges, and penalties in order to reinstate water supplies prior to final action by the CITY declaring this contract forfeited and null and void. 6-2 Conditions of Service DISTRICT shall comply with continuing conditions of receiving service as follows: 6-2.1 DISTRICT'S Facilities DISTRICT agrees and understands that it will install and maintain at its sole expense all facilities necessary for DISTRICT to operate its water system from the POINT OF DELIVERY as described in this contract to the DISTRICT. CITY shall be under no obligation whatsoever to bear any of the DISTRICT'S expenses in maintaining the DISTRICT'S water system. After the CITY'S installation of the meter and system separation facilities, DISTRICT shall not alter, modify, or improve the meter and system separation facilities without the prior approval of the proposed changes by CITY. The design and construction of the facilities, and any repairs, modifications, or improvements to the facilities shall comply with all federal, state, and local regulatory requirements. 6-2.2 Rates and Payment Date Subject to the payment provisions of Ch. 2251 of the Tex. Gov't Code, pay to the CITY no later than the due date specified in the statement for water delivered pursuant to the terms of this contract those charges for wholesale water as set forth within said statement. CITY shall charge to, and collect from, DISTRICT for the retail water service provided herein a maximum of sixty percent (60%) over and above the actual cost of the water sold by the City of Lubbock to CITY, as evidenced by the billing from CITY, said increase related to costs for administration and system delivery expenses of CITY. This rate may be, from time to time, modified or amended if mutually agreed to in writing by both parties. In the event of such modification or amendment, the rate change shall be construed so as to apply to the most recent modification or amendment to the rate change, if any. In the event the rate for water delivered pursuant to this contract is modified or amended, the CITY shall furnish written notice to the DISTRICT of such rate amendment or modification at least ninety days prior to the effective date of such rate change, together with the costs and tables used in calculating the rate. The rates charged do not imply or include service by the CITY beyond the CITY'S point of delivery; it being the intent of this contract that all expenses on DISTRICT'S side of the point of delivery as defined in this contract shall be the sole expense of DISTRICT. If a court of competent jurisdiction, the Texas Commission on Environmental Quality or its successors, or any federal or state regulatory authority finds that CITY rates or policies for delivering water to 7 DISTRICT under this contract are unenforceable, the CITY and DISTRICT shall negotiate a subsequent rate. 6-2.3 Service Area DISTRICT will limit service to its own facilities owned by the DISTRICT in Lubbock County, Texas. 6-2.4 SanilM Control DISTRICT shall maintain at all times a method acceptable to CITY for maintaining sanitary control, between the DISTRICT'S pipeline that transports the water received from CITY. However, the CITY shall not be unreasonable in determining that the DISTRICT'S sanitary methods are unacceptable to CITY. DISTRICT shall provide and maintain any and all devices and methods required or suggested by federal, state, or local regulatory authorities or by the CITY that are reasonably necessary to maintain sanitary control of the DISTRICT'S water system and prevent back -flow from DISTRICT'S system to CITY'S system. DISTRICT shall not allow service by direct pressure from the CITY'S supply, except in cases of emergency. DISTRICT shall permit personnel of CITY to enter upon the property of DISTRICT for the purpose of inspecting any and all facilities to determine whether DISTRICT is maintaining the required sanitary control measures. Should CITY have reasonable grounds to believe that any condition exists which might result in contamination of CITY'S water supply, or jeopardize CITY'S certification with the Texas Commission on Environmental Quality or other federal, state or local regulatory authorities, then CITY shall notify the DISTRICT in writing of such condition and the DISTRICT shall 8 correct such condition within a reasonable time. In the event DISTRICT fails to correct such condition within a reasonable time, the CITY may, at its sole discretion either correct the condition, and include the cost of materials and labor incurred by the CITY in correcting such condition in subsequent billing statements from CITY to DISTRICT or cease delivering water under this contract until such condition is corrected to the reasonable satisfaction of the CITY. In the event the CITY determines that contamination of CITY'S water supply by DISTRICT'S water supply exists, the CITY shall have the absolute right to discontinue service to DISTRICT until such time as said contamination has been eliminated by DISTRICT. Unless it would present a public danger to do so, the CITY shall disclose to the DISTRICT all information the CITY considered in determining that the DISTRICT'S water system is contaminated. Nothing herein shall be construed to impose upon the CITY the duty and obligation to make any inspection or to regulate the quality of water beyond CITY'S metering point to DISTRICT and the DISTRICT shall be solely responsible for the operation, maintenance, regulation and employment of all facilities beyond the metering point, and the regulation of the use of all water received by it at the metering point. 6-2. S Water Conservation DISRICT shall comply with CITY'S water conservation and rationing plans and ordinances to the extent necessary to conserve and ration the water delivered by i CITY to DISTRICT under this contract and to the extent that such water conservation and rationing plans are equally required of CITY's other water consumers/clients. DISTRICT shall cooperate with and assist CITY in developing, implementing, and maintaining water conservation plans, programs, and rules incorporating loss -reduction measures and management practices, techniques, and technologies designed to insure water made available under this contract is used in an economically -sensitive manner and designed to reduce the consumption of such water, reduce the loss or waste of such water, improve the efficiency in the use of such water. DISTRICT shall furnish CITY a copy of such conservation plan from time to time, as requested by the CITY within ten (10) days of said request. DISTRICT agrees that if water supplies or services are curtailed within CITY, CITY may impose a like curtailment on deliveries of water to DISTRICT under this agreement and DISTRICT will cooperate by imposing conservation measures upon its uses of water made available under this contract. CITY'S obligations under this contract shall be subject to water conservation plans and drought contingency plans adopted by CITY or required or approved by the Texas Commission on Environmental Quality, the Texas Water Development Board, or any other additional federal, state, or local regulatory authority with power to require or approve water conservation and drought contingency plans. 6-2.6 Public Property CITY will assume the affirmative duty to acquire easements, at its cost, for use by the CITY between CITY'S water system as it exists on the date this contract is 10 signed and the location of the measuring device at the POINT OF DELIVERY as shown described in this contract and shown on Exhibit "A." DISTRICT shall acquire, at its expense, all easements, approvals, facilities required between the measuring device and DISTRICT'S water system. CITY shall grant DISTRICT use of CITY's rights -of -way or easements for the placement of DISTRICT's water line. 6-2.7 Right of Entry DISTRICT shall authorize CITY, its agents, employees and contractors, entry upon the DISTRICT'S property where DISTRICT'S potable water facilities are located for the purpose of obtaining water samples and performing tests to determine actual or potential production. The entry, sampling, and testing shall be performed at reasonable times, with advance notice to and prior approval of the DISTRICT. DISTRICT may have a representative present during any entry, sampling or testing done on the DISTRICT'S property. CITY'S entry upon the property and its sampling and testing shall be performed in compliance with DISTRICT'S rules and regulations adopted to protect persons on the property and the sanitary condition of DISTRICT'S water supply. 6-3 Mutual Conditions 6-3.1 Failure to Deliver CITY does not warrant that the services provided for in this contract will be free from interruption or stoppage caused by maintenance, repair, substitution, renewal, replacement or improvement of any of the equipment involved in the furnishing of any such services or caused by the changes of services, alternations, strikes, lockouts, labor, controversies, accidents, or acts of God, the elements, or any other cause beyond the reasonable control of CITY. In case of reason of Force Majeure that either party hereto is rendered unable, wholly or in part, to carry out its obligations under this contract, other than the obligation of the DISTRICT to make the payments required under the terms hereof, to comply with applicable federal, state, and local regulatory authorities having or asserting jurisdiction over the operation of DISTRICT'S water supply, and to meet sanitary control requirements as hereinabove ser forth, then if such party shall give notice and full particulars of each Force Majeure in writing to the other party within a reasonable time after occurrence of the event or cause relied on, the obligation of the party filing such notice, so far as it is affected by such Force Majeure, shall be suspended during the continuance of the inability then claimed, but for no longer period, and such party shall endeavor to remove of overcome such inability within all reasonable dispatch. The terms "Force Majeure" as employed herein shall mean, but without limitation, the following, if beyond the control of the party alleging the "Force Majeure", acts of God, strikes, lockouts, or other industrial disturbances, acts of public enemy, war, orders of any kind of the Government of the United States or the Senate of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply and inability on the part of the CITY to deliver water hereunder, or of the DISTRICT to receive water 12 hereunder, on account of any other causes not reasonably within the control of the party claiming such inability. The settlement of strikes and lockouts shall be entirely within the discretion of the party having the difficulty, and the above requirement that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts as according to the demands of the opposing party or parties when such course is unfavorable in the judgment of the party having the difficulty. In the event of a shortage of water, or the supply of water available to CITY is otherwise diminished, the supply of water to the DISTRICT under this contract shall be reduced or diminished in the same ratio or proportion as the supply to other customers comparable to DISTRICT is reduced or diminished. 6-3.2 Regulatory Agencies This contract is subject to such rules and regulations as may now exist and as may be adopted by the CITY to comply with the Texas Commission on Environmental Quality and other local, state and federal governmental agencies, and CITY and DISTRICT will collaborate in obtaining such permits and certificates as may be required to comply therewith. This contract is subject to all applicable federal, state, and local laws and any applicable ordinances, rules, orders, and regulations of any local, state or federal governmental authority having or asserting jurisdiction including, but not limited to, the rate -fixing power of the Texas Commission on Environmental Quality. Nothing contained in this contract shall be construed as a waiver by any party to the contract of any right to question or contest any law, order, rule or regulation which may affect the terms and 13 conditions of this contract in any forum having jurisdiction, and DISTRICT and CITY each agree to make a good faith effort to support proposed laws and regulations which would be consistent with the performance of this contract in accordance with its terms. 6-3.3 Miscellaneous Conditions All the situations, promises, undertakings and contracts herein contained by or on behalf of either CITY or DISTRICT shall bind the successors and assigns of either party, whether so expressed or not; but neither CITY nor the DISTRICT shall have the right to assign this contract, or any party thereof, except as hereinafter provided, without the written consent of the other party. Either party may waive any default on the part of the opposite party affecting any provision of the contract, but a waiver of any one default shall not be deemed a waiver of any other or subsequent default or defaults. No delay by either party in enforcing any of its rights under this contract shall be deemed a waiver of such rights. CITY and CITY'S agents have made no representation or promises with respect to the water supply or services except as herein expressly set forth, and no rights, easements, entitlements, or licenses are acquired by DISTRICT by implication or otherwise except as expressly set forth this contract. 6-3.4 Notice of Violation In the event that either the CITY or the DISTRICT should violate any of the terms of paragraph 6, hereof, the other party shall promptly notify the other respective party of the violation. Unless this contract provides otherwise, in the event said violation is not cured within sixty (60) days after the sending of such notice, the 14 party sending the notice may at its discretion notify the other party of its intention to declare this contract forfeited and null and void. Except as otherwise provided by this contract, upon receiving such notice the delinquent party shall have sixty (60) days to cure said violation. Except as otherwise provided herein, if the party in violation of the contract fails to cure the violation within sixty days from the date it receives said notice then the other party may terminate this contract.. If, however, the party's violation cannot be cured within the sixty (60) day period and the party in violation of the contract continues the curing of the violation with due diligence and continuity, then the violating party shall be granted a reasonable amount of time in which to cure the violation before the other party may declare the contract null and void. Any notice required under the terms of this contract shall be in writing and shall be delivered by certified mail, addressed to the CITY or the DISTRICT. 6-3.5 Title Title to all water supplied hereunder shall be in the CITY up to the POINT OF DELIVERY, at which point title shall pass to the DISTRICT. 6-4 Term of Contract The terms of this contract shall be concurrent to the contract between the City of Lubbock and the City of Ransom Canyon and shall automatically terminate and be without any effect whatsoever upon the termination or expiration of the contract between the City of Lubbock and the City of Ransom Canyon. DISTRICT is given an option and contract for an additional thirty year period provided that at least twenty-four (24) months prior to the expiration of the initial 15 term of this contract, CITY and DISTRICT in good faith begin to negotiate another contract pertaining to purchase of water from CITY by DISTRICT containing mutually agreeable terms, and conditions. If another contract is not consummated, CITY shall not terminate service until DISTRICT has had two (2) years in which to procure an alternate water services. This contract shall remain in force until DISTRICT procures alternative service or the expiration of two (2) years, which ever event occurs first. 7. CUMULATIVE REMEDIES Recognizing that failure in the performance of DISTRICT'S or CITY'S obligations under this contract could not be adequately compensated in money damages alone, DISTRICT or CITY agree that in the event of any default on the part of either party, that CITY or DISTRICT shall have available to them the equitable remedy of mandamus and specific performances in addition to any other legal or equitable remedies (other than termination except as provided by this contract) which may also be available to CITY. 8. WAIVER No failure on the part of the CITY at any time to require the performance by DISTRICT of any proportion of this contract shall in any way affect the CITY'S right to enforce such provision or any other provision. Nor shall any waiver by the CITY of any provision hereof be taken or held to be a waiver of any other provision hereof or any other breach hereof. No modification or amendment to this contract may be made except by written amendment executed by both parties. No officer or agent of DISTRICT or CITY is authorized to waive or modify any 16 provision of the contract. No modifications to or rescission of this contract may be made except by a written document signed by CITY' S and DISTRICT'S authorized representatives. 9. HEADINGS All headings in this contract have been inserted for convenient reference only and shall not in any manner be construed as modifying, amending, or affecting in any way the express terms and provision hereof. 10. NOTICES All notices, payments and communications ("notice") required or allowed by this contract shall be in writing and be given by depositing the notice in the United States mail post paid and registered or certified, with return receipt requested, and addressed to the party to be notified. Notice deposited in the mail in the previously described manner shall be conclusively deemed to be effective from and after the expiration of three (3) days after the notice is deposited in the mail. Notice given in any other manner shall be effective only if and when received by an officer or the designated representative of the party to be notified. For purposes of notice, the addresses of the designated representatives for receipt of notice for each of the parties shall be shown on the signature pages of this contract. Either party may change its address by giving written notice of the change to the other party at least fifteen (15) days before the change becomes effective. 11. PLACES OF PERFORMANCE 17 All amounts due under this contract, including, but limited to, payments due under this contract or damages for the breach of this contract, shall be paid in Lubbock County, Texas, said Lubbock County, Texas, being the place of performance agreed to by the parties to this contract. In the event that any legal proceeding is brought to enforce this contract or any provisions hereof, the same shall be brought in Lubbock County, Texas. 12. APPLICABLE LAW This contract shall be construed under the laws of the State of Texas and all obligations of the parties hereunder are performable in Lubbock County, Texas. 13. EFFECTIVE DATE DISTRICT hereby binds itself, its successors, assigns and representatives for the faithful and full performance of the terms and provisions of this contract. EXECUTED as of the 24'h day of July, 2008 TON CIT IM CITY SECRETARY MAILING ADDRESS for notice: Town of Ransom Canyon 24 Lee Kitchens Drive Ransom Canyon, Texas 79366 ACCEPTED AND EXECUTED as of the 24'h day of July, 2008 18 ATTEST: MAILING ADDRESS for notice: Roosevelt ISD 1406 CR 3300 Lubbock, Texas 79403 ROOSEVELT ISD BY: 4i DR BERHL ROBERTSON, SUPERINTENDENT 19 Resolution No. 2008-RO304 F------ ------ ...... ...... RANSOM CANYON ELEVATED STORAGE TANK TO RANSOM CANYON WATER DISTRIBUTION SYSTEM ..... ...... ...... ...... ...... SECURITY FENCE I D OOSEVELT 11) 'OF IERY CARTHEL ENGINEERING Eksipw by: CTC ROOSEVELT ISD SOLUTIONS Short No. lProject I I 2201 Usivemity Ave., Suite 8 I Drawn by: CTC Lubbock Texas 79410 Reviewed by: EXHIBIT A - POINT OF DELIVERY Ph SO&M-9322 No.: Fax 306-6i7-6323 EXHIBIT "B" To AGREEMENT AND RELEASE RELATED TO PROVISION OF WATER GROUNDS OF RISD CAMPUS RISD — Agreement Related to Provision of Water Page 14 of 15 o ROOSEVELT ISD CARTHEL ENGINEERING SOLUTIONS _ • A° Z "� 2201 UNIVERSITY AVE. SUITE B EXHIBIT B: LUBBOCK. TEXAS 7%10 -I ROOSEVELT ISD CAMPUS PHONE: FAX: 60"87-8323 EXHIBIT "C" To AGREEMENT AND RELEASE RELATED TO PROVISION OF WATER CONFIGURATION OF EXISTING RISD INFRASTRUCTURE Richard/RISD-Agree related to provision of water-rdln062308 RISD — Agreement Related to Provision of Water Page 15 of 15 Resolution No. 2008-RO304 SCAM NP8 ® AREAS OF INCIDENTAL UMGAIION