HomeMy WebLinkAboutResolution - 743 - Lease Agreement - John W. Addink Et Al - Water Rights, Bailey County - 03_12_1981:` DGV/pg
RESOLUTION
RESOLUTION #743 - 3/12/81
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 a Water Rights
Lease Agreement between the City of Lubbock and Dr. John W. Addink, Dr. Charl
L. Barton, Dr. John H. Fritsch, and Dr. F. Edward Stivers, attached herewith
which shall be spread upon the minutes of the Council and as spread upon the
minutes of this Council shall constitute and be a part of this Resolution as
if fully copied herein in detail.
Passed by the City Council this 12th day of _ March ,1981.
BILL Mc IS ER, MAYOR
ATTEST:.
velyn G ffga, City e r ry-Treasurer
APPROVED AS TO CO ff NT:
Sam Wahl, Director of Water Utilities
APPROVED AS TO FORM:
ver, Asst. City Attorney
RESOLUTION #743 - 3/12/81
WATER RIGHTS LEASE AGREEMENT
STATE OF TEXAS
COUNTY OF LUBBOCK §
This Agreement entered into by and between John W. Addink, John H. Fritsch,
Charles L. Barton, and F. Edward Stivers, hereinafter called Owners, and the
City of Lubbock, a Home Rule municipal corporation of Lubbock County, Texas,
hereinafter called Lessee:
WITNESSETH
WHEREAS, John W. Addink, John H. Fritsch, Charles L. Barton and F. Edward
Stivers are owners of certain real property in Bailey County, Texas, which
property is more particularly described in Exhibit "A" attached hereto and
made a part hereof -for all purposes; and
WHEREAS, the said Owners are desirous of leasing the rights to the underground
water located under the land described in Exhibit "A!', except for such rights
to said underground water as may be herein retained by said Owners; and
WHEREAS, the said Lessee is desirous of purchasing the rights to the
underground water located under the land described in Exhibit "A", except for
such rights to said underground water as may be herein retained by said Owners;
and
WHEREAS,.the said Lessee finds it to be in the best interest of the
citizens of the City of Lubbock to acquire the rights hereinafter granted to
Lessee; and
WHEREAS, the said Owners find it to be in their best interest to grant
the rights hereinafter set out to Lessee:
NOW THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS:
1. DESCRIPTION: Owners do by these presents lease and grant to Lessee
the rights to all underground water located under the following described real
property situated in the County of Bailey, State of Texas:
All that property described in Exhibit "A" attached hereto and made a
part hereof for all purposes,
Except that Owners may take up to a combined total of 150 acre feet of water
per year for irrigation purposes from the nine existing wells on the above
described property. In addition, Owners may take up to an additional 150
acre feet of water from any additional wells established on the property. A
map showing the location of said nine wells is attached hereto as Exhibit'"B".
This lease and grant is made by Owners for the consideration of rents and
covenants hereinafter provided.
2. PURPOSE: The purpose of this lease is to provide Lessee with a
source of potable underground water during the term of this Agreement and to
provide Lessor with a market for such potable underground water during the
term of this agreement.
3. TERM: This lease shall take effect upon the date of execution
hereof by all parties and shall terminate ten years after the date upon which
water is first made available by Owners to Lessee at the location indicated
upon a map attached hereto as Exhibit "B" and made a part hereof for all
purposes. Such date shall be agreed upon by Owners and Lessee and shall be
reduced to writing and placed on file at the office of the City Secretary of
the City of Lubbock. If Owners have not delivered to Lessee at least 13,500
acre feet of water.by the normal termination date, this agreement shall remain
in effect until such amount of water has been delivered to Lessee.
4. IMPROVEMENTS: As part of the consideration flowing to Lessee and as
an inducement for Lessee to execute this document, Owners agree to undertake
the following:
(a) To construct a pipeline gathering system for purposes of transporting
said underground water to the location indicated upon the map attached
hereto as Exhibit "B".
(b) To modify existing well construction to meet the presently existing
State Health Department regulations. The modifications so required have
been reduced to writing and are attached hereto as Exhibit "C", and made
a part hereof by this reference.
(c) To construct said pipeline in such a manner as to allow it to be
coupled into the pipeline to be constructed by Lessee to the point indi-
cated upon the map attached hereto as Exhibit "B".
(d) To convert all pumps on existing wells to "water lubed" pumps instead
of "oil lubed" pumps.
(e) To install "water lubed" pumps on any new wells that may be installed
during the term of this agreement. All equipment, pumps, pipeline and
accessories are the property of the Owners.
5. DUTIES OF OWNERS: Owners agree to undertake the following duties
and obligations as part of the consideration flowing to Lessee pursuant to
this Agreement:
(a) To provide 1,350 acre feet of water per year at 104 feet of head at
the point of delivery during the term of this lease following the date of
water availability to Lessee set out in Paragraph 3 above, subject to the
provisions of Paragraph 7 below.
(b) To be responsible for installation, maintenance and repair of all
pipelines and pumps on Owner's property necessary to meet the requirements
of this Agreement.
(c) To provide the labor and power costs necessary to provide a flow
rate equivalent to 70 percent of maximum well capacities during May to
September during the term of this Agreement following the date of first
delivery of water to Lessee.
(d) To provide Lessee a written statement of maximum average summer well
capacity during the month of January of each year of this Agreement
following the date of first delivery of water to Lessee. The maximum well
capacity is not to exceed the design pump capacity.
6. DUTIES OF LESSEE: Lessee hereby agrees to undertake the following
duties and obligations as part of the consideration flowing to Lessee pursuant
to this Agreement:
(a) To take a minimum of 1,350 acre feet of water per year during the
term of this Agreement following the date of first delivery of water as
described in Paragraph 3 above, subject to the provisions of Paragraph 7
below.
(b) To pay Owners one hundred dollars ($100.00) per acre foot of water
delivered to Lessees pipeline within 45 days of delivery. This price
is to be adjusted each six months after January 1, 1981, to reflect 30
percent of change in Consumer Price Index (CPI) and 50 percent of change
in electrical costs with fuel adjustment of Bailey County Electric Co-op.
This shall be computed as set out in Exhibit "D" attached hereto and
made a part hereof.
(c) To pay owners one hundred fifty thousand dollars ($150,000.00) after
execution of this document by all parties hereto and receipt of a performance
bond from Owners as is hereinafter set out.
(d) To pay Owners an amount equal to the cost of the performance bond
required under this agreement.
(e) To pay all cost and expenses incurred for the installation of the
intruder resistance fence and/or the installation of any locked, ventilated
well housing if the same are or become required or necessary under this
agreement. Such equipment shall be property of the City of Lubbock:
(f) To provide owners a written statement of estimated monthly water
purchases desired during February of each year of this agreement.
7. JOINT AGREEMENTS: All parties to this Agreement as part of the
consideration flowing to each agree to the following:
(a) Notwithstanding anything to the contrary set forth in this agreement,
if Owners are unable to deliver as.much as 1,350 acre feet of water per
year because of lack of existing well capacity, -there shall be no liability
nor penalties on the part of Owners and no requirement that Lessee must
pay for more than the amount of water delivered. Owners shall not be required
to drill or establish any wells in addition to the nine presently existing
in order to meet their obligations hereunder.
(b) Wells located on the east 240 acres of the property described in
Exhibit "A" attached hereto shall not be required to produce more water
than would be required to irrigate a crop of wheat, corn or alfalfa on
said 240 acres. This requirement shall be deemed to have been met with
an annual water production of not more than 240 acre feet of water per
year. If owners are unable to deliver said amounts of water, Owners shall
have no further liability and Lessee shall pay only for the water
actually delivered.
(c) Lessee, by and through its employees, agents and representative,
have personally inspected the well field site and have conducted such
tests as are necessary to satisfy Lessee as to the availability, quality
and quantity of water available, it being understood and agreed that Owners
do not guarantee water availability, potability, quality or quantity and
Lessee is not relying upon any representations of warranties of Owners with
regard thereto. Lessee is familiar with applicable state and local laws,
rules and regulations and is satisfied that the obligations of the parties
hereunder are consistent therewith and Lessee's obligations hereunder
shall in no way be nullified by reason of any such law, rule or regulation.
The expense of any treatments or tests necessary to obtain or maintain
potability will be born by Lessee. Owners promise only to deliver the
existing water to the best of their ability.
S. PERFORMANCE BOND: The Owners shall be required to furnish a perform-
ance bond in the amount of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000.00),
which bond shall be submitted upon forms provided by Lessee and executed by an
approved Surety Company authorized to do business in the State of Texas. It
is further agreed that this contract shall not be effective nor shall Owners
be paid the amount specified in Paragraph 6(c) above until such time as the
aforementioned performance bond has been duly executed and filed with the City
Secretary of the City of Lubbock.
9. ENVIRONMENTAL AND HEALTH COMPLIANCE: Owners hereby agree to disinfect
wells as provided in the specifications.for water supply wells. Owners agree
to disinfect wells in the future as requested by Lessee at Lessee's expense.
10. OTHER PARTIES OF INTEREST: The following corporations, partnerships
and/or persons have an interest in all or a portion of the land subject to
this lease agreement:
Travelers Insurance Company
Citizens State Bank, Lincoln, Nebraska
If for any reason other than lack of water available upon the land, Owners are
unable to meet the requirements of this lease agreement, then the persons
hereinabove named who are signatory to this agreement, hereby agree to be
bound by the terms of this agreement and to honor this agreement in accord
with said terms.
11. AGREEMENT RUNNING WITH THE LAND: This agreement between all parties
signatory hereto shall be a condition and covenant running with the land
described in Exhibit "A" attached hereto and shall further constitute an
equitable servitude thereon and shall bind Owners and Owners' heirs and successors
in title to such land. Any further conveyance of the land described in Exhibit
"A" hereto shall contain this covenant and equitable servitude. It is further
agreed by all parties thereto that this condition, covenant and equitable
servitude shall terminate upon the expiration of this lease agreement according
to its terms.
12. RIGHT TO ENTER AND OPERATE WELL FIELD: If for any reason Owners or
their successors in interest fail to continue operation of the wells situated
upon the property specified in Exhibit "A" hereto during the term of this
agreement, Lessee shall have the right to enter upon said property and to
operate said wells without being deemed guilty of trespass and without prejudice
to any other remedy that Lessee might be entitled to under this agreement.
Further if Lessee operates the well field in default, Lessee shall be entitled
to reduce the payments made to Owners or their successors in interest by the
amount of the actual expenses of such operation.
EXECUTED THIS 12thDAY OF March , 1981.
OWNERS:
Dr. John W. Addink
Dr. Charles L. Barton
Dr. John H. Fritsch
Dr. F. Edward Stivers
ATTEST:
OTHER PARTIES OF INTEREST:
Travelers Insurance Company
ATTEST:
Citizens State Bank, Lincoln,
Nebraska
ATTEST:
THE CITY OF LUBBOCK:
BILL MCALIS ER, MAYOR
ATTEST:
Evelyn G fg , Cit etary-Treasurer
APPROVED AS TO FORM:
Donald G. Vandiver, Asst. City Attorney
APPLVED AS_TO MONTENT:
/Sam Wahl, Director of Water Utilities
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF LUBBOCK §
BEFORE ME, the undersigned authority, a Notary Public, in and for Lubbock
County, Texas, on this day personally appeared Bill McAlister, known to me to
be the person whose name is subscribed to the foregoing instrument and he
acknowledged to me that he executed the same as his own act and deed for the
purposes and consideration therein expressed and in the capacity therein
stated.
GIVEN unde my hand and seal of office, this the
�)l , 1981.
STATE OF §
COUNTY OF §
day of
& - Q'4;�
Notary Public in and for
Lubbock ounty, Texas
AA,, "-.) -Crpz',L� I gGIv 1
BEFORE Me, the undersigned authority, a Notary Public, in and for
County, , on this day per-
sonally appeared John W. Addink, known to me to be the person whose name is
subscribed to the foregoing instrument and he acknowledged to me that he
executed the same as his own act and deed for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN under my hand and seal of office, this the day of
, 1981.
Notary Public in and for
County,
STATE OF §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public, in and for
County, , on this day
personally appeared John H. Fritsch, known to me to be the person whose name is
subscribed to the foregoing instrument and he acknowledged to me that he
executed the same as his own act and deed for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN under my hand and seal of office, this the day of
, 1981.
Notary Public in and for
County,
STATE OF §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public, in and for
County, , on this day per-
sonally appeared Charles L. Barton, known to me to be the person whose name is
subscribed to the foregoing instrument and he acknowledged to me that he ex-
ecuted the same as his own act and deed for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN under my hand and seal of office, this the day of
, 1981.
Notary Public in and for
County,
STATE OF §
COUNTY OF §
BEFORE Me, the undersigned authority, a Notary Public, in and for
County, , on this day per-
sonally appeared F. Edward Stivers, known to me to be the person whose name is
subscribed to the foregoing instrument and he acknowledged to me that he
executed the same as his own act and deed for the purposes and consideration
therein expressed and in the capacity therein stated.
GIVEN under my hand and seal of office, this the day of
, 1981.
Notary Public in and for
County, _
STATE OF §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public, in and for
County, , on this day personally
appeared , known by me to be the
of Travelers Insurance Company, a corporation, and he acknowledged to me that
he executed the same as the act and deed of the Travelers Insurance Company for
the purposes and consideration therein expressed and as the act of said cor-
poration.
GIVEN under my hand and seal of office, this the day of
, 1981.
Notary Public in and for
County,
STATE OF §
COUNTY OF §
BEFORE ME, the undersigned authority, a Notary Public, in and for
County, , on this day personally
appeared , known by me to be the
of Citizens State Bank, a corporation, and he acknowledged to me
that he executed the same as the act and deed of the Citizens State Bank,
Lincoln, Nebraska, for the purposes and consideration therein expressed and as
the act of said corporation.
GIVEN under my hand and seal of office, this the day of
, 1981.
Notary Public in and for
County,
"EXHIBIT A"
2. Legal description:
All of Section 18 and Section .35 and a p::rt of tho T•lest part of Section
38 described as tollowst
EEGINNING at the Northwest corner of Section 38,
111ENCE south along the West line of Section 38 a eListance of 5,280 feet
to an IP set for the Southwest corner of said Section;
T'raNCE East along the South line of Section 3,3 a distance of 1, 32u feet
to an IP set for. corner;
THENCE North and parallel with the West line of Section 33 a distance of
33u feet to an IP set for corner;
Trl-ENCE East and parallel with the South line of section 38 a distance
of 1,301.4 feet to an IP set in the West right -of -hazy line of state
Highway 214 ;
I :.-NCE North" along the Flest right-of-wa1 line of State Fiic;}r�rag� 214
a distance of 2,970 feet to an IP set for corner;
ThENCE Vlest and parallel with the North line of Section 38 a distance
of 1,320 feet to an IP set for corner;
Z•r:ZNCE North and parallel with the West right-of-way line of State
HigNiay 214 a distance of 1,980 feet to an IP set in the Ilorth line,
Section 38;
THENCE West along the North line of Section 38 a distance of 1,.s45.82
feet to the place of beginning and containing 250.6 acres of land, more
or less, all of the above described land being out of Block Y, 11. D. ,
and F. W. Johnson Subdivision, Bailey County, Texas, and comprises an
aggregate of 1,531.34 acres of land, more or less.
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EXHIBIT "B"
® nine existing wells
_ _�1 .,,te-line to Lessee's pipeline
Specifications for Water Supply Wells:
1. Remove pmps and change.fran oil lubricated to water lubricated.
2. Excavate 8 ft. below surface around each well casing and pour concrete around
casing.
3. Pour concrete block continuous with concrete around casing. Block shall
be 1'6" above ground surface and shall be 3' on each side.
4. Pour concrete floor around block. Floor shall be 6" thick and 6' on
each side. A footing 12" deep and 8" wide shall be poured around the
perimeter of each floor.
5. A fence sufficiently strong enough to keep cattle away from the well
shall be erected and maintained 50' from -the center of each well.
6. When the pumps are installed in each well, the well shall be disinfected
under the direction of a representative of the City. The wells shall be
pumped to clear the disinfectant and sanpled on 3 separate consecutive
days.
7. Each pump base shall be sealed to the concrete block and each hole in
the pump base that is an opening into the pump or well casing shall be.
securely plugged except for a breather opening into the annular space
between the pump column and the well casing. The breather shall be
fitted with a 1" pipe nipple capped with a 180' ell, and the open end
of the ell shall be screened with 16 mesh corrosion resistant material.
8. Those requirements stated in the attached excerpt from the "Rules and
Regulations for Public Water Systems" which are marked with a red
asterisk. are obligations of the Owners. These requirements are (3) (C)
and (3) (E) page 10 and (3) (M) page 11.
T
.003. (dater Sources.
(a) Water quality. The quality of water to be supplied must
meet the approval of the Texas Department of Health, and
such approval will be based upon the quality criteria
prescribed by the Texas Board of Health.
(b) Water quantity. Sources of supply, both ground and surface,
shall have a safe yield capability of supplying the maximum
daily demands of the distribution system during extended
periods of peak usages and critical hydrologic conditions.
The pipe lines and pumping capacities to treatment plants or
distribution systems shall be adequate for such water
delivery. Minimum capacities required are specified in Rule
.007.
(c) Groundwater sources and development.
(1) Ground water sources shall be so located that there
will be no danger of pollution from flooding or from
insanitary surroundings, such as cesspools, privies,
sewage, livestock and animal pens, solid waste disposal
sites, or abandoned and improperly sealed wells.
(A) No well site which is within 50 feet of a tile or
concrete sanitary sewer, septic tank, or storm
sewer, or which is within 150 feet of a cesspool
or septic tank open -jointed drainfield will be
acceptable for the development of a public drink-
ing water supply well. Sanitary or storm sewers
constructed of materials as specified in .005(c)(1)(A)
may be located at distances of less than 50 feet
from a proposed well site provided that written
approval from this Department is obtained prior to
construction of the well.
(B) No well site shall be selected which is within 500
feet of a sewage treatment plant or within 300
feet of a sewage wet well, sewage pumping station,
or a drainage ditch which contains industrial
waste discharges or the wastes from sewage treat-
ment systems.
(C) No water wells shall be located within 500 feet of
animal feed lots, solid waste disposal sites or
lands irrigated by sewage plant effluent.
(D) Livestock in pastures shall not be allowed within
50 feet of water supply wells.
- 8 -
.003. Water Sources. (Cont.)
M Abandoned water wells in the area of a proposed
source shall be plugged and sealed properly to
prevent possible contamination of fresh water
strata. The procedures and methods to be followed
in plugging and sealing wells shall be obtained
from the Texas Department of Water Resources,
Austin, Texas.
(F) A sanitary control easement covering that portion
of the lands within 150 feet of the well location
shall be secured from all such property owners,
and recorded in the deed records at the county
courthouse. The easement shall provide that none
of the pollution hazards covered above or any
facilities that might create a danger of pollution
to the water to be produced from the well will be
located thereon. Copies of the recorded easements
shall be submitted with plans and specifications
submitted for review.
(2) The premises, materials, tools and drilling equipment
shall be maintained so as to minimize contamination of
the underground water during the drilling operation.
(A) Water used in any drilling operation shall be of
safe sanitary quality.
(B) The slush pit shall be constructed and maintained
so as to minimize contamination of the drilling
mud.
(C) Approved type privy or toilet facilities shall be
provided for use of personnel during drilling
operations, and these facilities must be located
at least 150 feet from the well being drilled.
After construction of the well has been completed,
these facilities, if temporary, will be abandoned
or removed in a satisfactory manner. No temporary
sanitary facilities shall be maintained within 150
feet of the well being constructed unless they are
of a sealed, leakproof type.
(3) Drilling records and material setting data shall be
maintained accurately and copies made available to the
owner, as well as State agencies requesting this information.
(A) The Texas Department of Health shall be furnished
a copy of well material setting data, geological
log, sealing information (pressure cementing and
surface protection), disinfection information,
bacteriological sample results and a chemical
analysis report of a representative sample of
water from the well.
- 9 -
.003. Water Sources. (Cont.)
(B) The casing material used in the construction of
wells for public use shall conform to AWWA Stan-
dards. Refer to rule .001. Glossary of Terms.
The casing shall extend to a point 18 inches above
the elevation of the finished floor of the pump
room or natural ground surface and a minimum of 1
inch above the sealing block of pump motor foundation
block, when provided. The casing shall extend at
least to the depth of the shallowest water formation
to be developed and deeper, if necessary, in order
to cut off all undesirable water -bearing strata.
X1 (C) The space between the casing and drill hole shall
be sealed by using sufficient cement under pressure
to provide for completely filling and sealing of
the annular space between the casing and the drill
hole. The well casing shall be cemented in this
manner from the top of the shallowest formation to
be developed to the earth's surface. Where the
top of the water -bearing formation is less than 50
feet, special treatment facilities, in addition to
chlorination ahead of storage, with a minimum
detention time of two hours, may be required,
depending on local conditions.
(D) When a gravel pack well is constructed, all gravel
shall be of selected and graded quality and shall
be thoroughly treated with a 50 mg/l chlorine
solution to insure disinfection as it is added to
the well cavity.
(E) In all cases, a concrete sealing block extending
at least 3 feet from the well casing in all directions,
with a minimum thickness of 6 inches, and sloped
to drain away at not less than 0.25 inches per
foot shall be provided around the well head.
(F) Well heads and pump bases shall be sealed by the
use of gaskets, sealing compounds, and properly
vented to prevent the possibility of contamination
of the well water. A well casing vent shall be
provided with the opening screened with 16-mesh or
finer corrosion resistant screen, and faced downward
and located and elevated so as to minimize the
drawing of contaminants into the well.
(G) Safeguards shall be taken to prevent possible
contamination of the water or damage by trespassers
following the completion of the well and prior to
installation of permanent pumping equipment.
- 10 -
cOYaaace
f be disin irfec 1On ac gef er to
ball 1 ais
otces' (COnt•) ot>> the welyds JOT wel letell be Collectea
Gates SO.n cOm �le t A5 y of Terms' ch Orine it r shall allsis Iyntil
(S) Wit e c 001 n Gl°s t contairi5 �41e ict -o Sica �1 be ft i� osec
.vice
.ul ter the O'D the w a JOT ba ubwitted st'the Well hall
(1) ushea fa submitt sam4les . to 4lacing the 'ofwater . ec Tr
tht if otga isms' ies°for cto �ba a ai i f a tern3. e
cOl _ate face e a sat after te4¢aea Will Cst-CV1 aTta a hale I t
(11) b4e 4.0 vide a Cablis a inert t Gat 'Well i ati°r al aalyses' F
snot be water teol°gica of costa etiologic
eaten a basis ° b g soil [ative bact s of the ate
e
On 2 u.es, isof quantl l analys aaaefter 36 a o� If t meet
on the as cal ana C.
Sh L11 befit araw Well f ai exa O bOata
lete 4,'ysi ew well design om the the T d odor
(I) A a 4c d s 4um410 Chat tt e a ase 4r se
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coati sis rev a iCy cri tU= 1al 1 e bYatoge als vh4,ch ap4ro4riat
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Of Ilea
t1 nS other cO �s unsui a tittl d f Or aOm on the discharge
li oxiae OT suable ° ..viae ..viaed rd
wa Batmen a s�'all VTM
be 4 cock shall be 4 all slo4e tio� s b-
tr i.table sa W4e i 4um4, idea, it be sub�ect
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00,
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(x) a term flo ll be 4 atlon to vel°4
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es Cal be soCCAI�ul e an All11, ate excuste ed e still
Flow 'a as 4KOve ices sha Systems 1 s sh i g devices
(L) ya C as Gaily teac aee�t Uo l flov measut inttUaer
ease of °f 50 a, g ed by Wit'i
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tY a °tea aed' 1 jmits sea o f b'w tilati d Ito Cue f acilitie
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ex tres4as
by
11 -
.003. Water Sources. (Cont.)
(N) Subground level pump rooms and pump pits will not be allowed
in connection with water supply installations. The pump
room floor shall be at least 2 feet above the highest known
watermark and/or protected adequately by levees from possible
damage by flood waters.
(0) The well site shall be fine graded so.that the site is free
from depressions, reverse grades or areas too rough for
proper ground maintenance so as to assure that surface water
will drain away from the well. In all cases, arrangements
shall be made to carry off the drainage from the well pump,
leakage from packing glands, and floor drainage. Suitable
drain pipes located at the outer edge of the concrete floor
shall be provided to carry off this water and prevent its
ponding or collecting around the well head. This waste
water shall be disposed of in such a manner so that it will
not cause any nuisance from mosquito breeding or stagnation.
Drains shall not be directly connected to storm or sanitary
sewers.
(P) An all weather access road shall be provided to each well
site.
(d) Surface water sources and development.
(1) An evaluation shall be made of the proposed surface water impoundment
or flowing supply in the area of diversion and its tributary
streams to determine the degree of pollution from all sources
within the watershed.
(A) Where surface water sources which are subject to continuous
contamination by municipal and industrial wastes and/or
treated effluent are contemplated for development for public
water systems, the adverse effects of said contamination on
the quality of raw water reaching the purification plant
shall be determined by sanitary surveys and laboratory
procedures and findings submitted with planning material.
These findings will then be used to determine whether or not
the proposed raw water intake is adequately separated from
all contamination sources.
(B) The disposal of liquid or solid wastes from any source on
the watershed must be is in conformity with applicable
regulations and State Statutes.
(C) Shore installations, marinas, boats and all habitations on
the watershed shall provide satisfactory sewage disposal
facilities. Septic tanks and soil absorption fields, tile
or concrete sanitary sewers, sewer manholes or other approved
toilet facilities shall not be located in the area within 75
feet horizontally from the lake water surface at the uncontrolled
spillway elevation of the lake or 75 feet horizontally from
the 50 year flood elevation, whichever elevation is lower.
- 12 -
EXHIBIT D
For calculation of base water rate adjustment.
1. Assume on July 1, 1981 C.P.I. increases 4%
2. Assume on July 1, 1981 Bailey County Electric Co -Op has
3% increase
0.30 x 0.04 x $100.00 = 1.20/Ac.- Ft. increase
0.50 x 0.03 x $100.00 = 1.50/Ac.-Ft. increase
Total adjustment to base rate 2.70/Ac.-Ft. increase
M ZJi /.F+ Sal
FILE NO. 5039
COLLATERAL ASSIGNMENT OF LEASE
THIS COLLATERAL ASSIGNMENT OF LEASE, made this W day of
May, 1981, by JOHN W. ADDINK, JOHN H. FRITSCH, CHARLES L. BARTON and
F. EDWARD STIVERS (hereinafter called "Assignor"), to THE TRAVELERS
INSURANCE COMPANY, a Connecticut corporation, whose address is Two
NorthPark East, Dallas, Texas 75231 (hereinafter called "Assignee"),
W I T N E S S E T H:
Assignor, in consideration of the sum of Ten Dollars ($10.00)
cash in hand paid and other good and valuable consideration paid by
Assignee, the receipt and sufficiency of which are hereby acknowl-
edged, does hereby GRANT, CONVEY, ASSIGN, TRANSFER and SET OVER unto
Assignee, its successors and assigns, the following:
A. All rights, interests and estates of Assignor in,
to and under the Water Rights Lease Agreement
between Assignor, as Owners, and The City of Lubbock, as
Lessee, dated March 12, 1981, a true copy of which is
attached hereto as Exhibit I, together with all renewals
and extensions of such Water Rights Lease Agreement (such
Water Rights Lease Agreement and renewals and extensions
being herein called the "Lease"); and
B. All rents, rentals and other sums of money that
may now and at any time hereafter become due and payable
to Assignor under the terms of the Lease.
This Collateral Assignment of Lease is made by Assignor as addi-
tional security for the payment of (a) the promissory note dated
July 3, 1979 in the.original principal amount of $493,000.00, made
by Assignor and payable to the order of Assignee, with interest at
the rate therein provided, both principal and interest being payable
as therein provided, and containing a provision for the payment of
a reasonable additional amount as attorneys' fees, and all other
notes given in substitution therefor or in renewal or extension
.thereof, in whole or in part, such note and all other notes given
in substitution, renewal or extension thereof, in whole or in part,
being hereinafter called the "Note"; and (b) all indebtedness in-
curred or arising pursuant to the provisions of the First Deed of
Trust dated July 3, 1979, recorded in Volume 62, Page 633, Deed
Records of Bailey County, Texas (hereinafter called the "Mortgage")
made by Assignor to secure the payment of the Note; SUBJECT, HOWEVER,
to the terms, provisions and conditions herein set forth.
1. Assignor agrees that, so long as the indebtedness evidenced
by the Note or any part thereof shall remain unpaid, Assignor will
make no other assignment, pledge or disposition of the Lease or the
sums of money that become due and payable thereunder, nor will
Assignor cancel the Lease, accept a surrender thereof, reduce the
sums of money payable thereunder, modify, alter or amend the Lease
in any material way, consent to an assignment or sublease of the
interest and estate of the Lessee thereunder without first having
obtained the written consent of Assignee; and any such acts, if
done or permitted to be done without the prior written consent of
Assignee, shall be null and void.
2. Assignor covenants with Assignee to observe and perform all
the obligations imposed upon the Owners under the Lease and not to
do or permit to be done anything to impair the security thereof, and
to execute and deliver at the request of Assignee all such further
assurances and assignments in the premises covered by the Lease as
Assignee shall from time to time require.
3. Until default in the payment of any of the installments of
interest and principal provided for in the Note, or until default
under the Mortgage, or until breach by Assignor of any of the cove-
nants, warranties or representations made by Assignor in this.
Collateral Assignment of Lease, Assignor shall be entitled to collect
all sums of money that become due and payable under the Lease; but,
in the event of any such default or breach, Assignee shall have the
right, power and privilege (but shall be under no duty) to take pos-
session of the premises described in the Lease and have, hold, manage,
lease and operate the same on such terms and for such period of time
as Assignee may deem proper; and either with or without taking pos-
session of said premises, Assignee shall have the right, power and
privilege (but shall be under no duty) immediately to collect and sue
for, in its own name or in the name of Assignor, such sums of money
as they become due and apply the same, less the cost and expense
of collection thereof, toward the payment of the Note and any other
indebtedness secured by the Mortgage, principal, interest and attor-
neys' fees, in such order as Assignee in its discretion may elect.
A written demand by Assignee on the Lessee for the payment of rentals
and other sums of money that become due under the Lease, after the
occurrence of any default or breach of Assignor claimed by Assignee,
shall be sufficient to warrant the Lessee to make all further payments
of such rentals and other sums of money directly to Assignee without
the necessity for further consent by Assignor. Such Lessee shall be
entitled to rely upon a written demand by Assignee for such payment
and shall be fully protected from any claims by Assignor for all
payments made to Assignee after receipt of such written demand.
4. Assignee shall not be obligated to perform or discharge
any obligation, duty or liability under the Lease or under or by
reason of this instrument, and Assignor shall and does hereby agree
to indemnify Assignee for, and to hold Assignee harmless from, any
and all liability, loss or damage which may or might be incurred un-
der the Lease or under or by reason of this instrument and from any
and all claims and demands whatsoever which may be asserted against
Assignee by reason of any alleged obligations or undertakings on its
part to perform or discharge any of the terms, covenants or agree-
ments contained in the Lease. Should Assignee incur any such
liability under the Lease or under or by reason of this instrument
or in defense of any such claims or demands, the amount thereof, in-
cluding costs, expenses and reasonable attorneys' fees, shall be
secured hereby; and Assignor shall reimburse.Assignee therefor
immediately upon demand, failing which Assignee may, at its option,
declare -all indebtedness secured hereby and by the Mortgage to be
immediately due and payable. This Collateral Assignment of Lease
shall riot operate to place responsibility for the control, care,
management or repair of said premises upon Assignee, nor for the
carrying out,of any of the terms and conditions of the Lease.
5. Nothing contained herein and no act done or omitted by
Assignee pursuant to the powers and rights granted it hereunder
shall be'deemed to be a waiver by Assignee of its rights and remedies
under the Note and the Mortgage, and this Collateral Assignment of
Lease is made,and accepted without prejudice to any of the rights
and remedies possessed by Assignee under the terms of the Note and
the Mortgage. The right of Assignee to collect said principal sum,
interest and indebtedness and to enforce any other security there-
for held by it may be exercised by Assignee either prior to,
simultaneously with, or subsequent to any action taken by it here-
under.
7. The terms, provisions, representations and warranties here-
in contained shall be binding upon Assignor and the heirs, devisees,
representatives and assigns of Assignor and shall inure to the bene-
fit of Assignee, its successors and assigns.
IN WITNESS WHEREOF, Assignor has caused this Collateral Assign-
ment of Lease to be executed on the day, month and year first above
written. q
W
JO W. ADDINK
- 3 -
THE STATE O
F//LI/W 5f�
COUNTY OF1q,-,02Sr✓1
BEFORE ME, the undersigned authority, on this day personally
appeared JOHN W. ADDINK, JOHN H. FRITSCH, CHARLES L. BARTON and F.
EDWARD STIVERS, known to me to be the persons whose names are sub-
scribed to the foregoing instrument, and acknowledged to me that they
executed the same for the purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this the ,5f day of
1981.
My commission expires:
NZ9`iARY PUBLIC in and for ,/qzz� a,s�Y
County, A/A" AA"
4
�L
Certified Copy' SR"' OAI2D SURI71-Y CC)AIL'Aeli'
#- ` ` NEw YORK, NEw YORK 001
No. 899I
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That SEABOARD SURETY COMPANY, a corporation of the State
of New York, has made, constituted and appointed and by these presents does make, constitute and appoint A.L. Miner or
Leo J. Beck or James F. McLaughlin or John D. Howard or Allen J. Mlclkxwell or 11.G. Volz or Lynda
L. Stewart-- -- ----
of Lincoln, Nebraska
its true and lawful Attorney -in -Fact, to make, execute and deliver on its behalf insurance policies, surety bonds, under-
takings and other instruments of similar nature as follows; Without Limitations
Such insurance policies, surety bonds, undertakings and instruments for said purposes, when duly executed by the aforesaid
Attorney -in -Fact, shall be binding upon the said Company as fully and to the same extent as if signed by the duly authorized officers
of the Company and sealed with its corporate seal; and all the acts of said Attorney-inFact, pursuant to the authority hereby
given, are hereby ratified and confirmed.
This appointment is made pursuant to the following By -Laws which were duly adopted by the Board of Directors of the said Com-
pany on December 8th, 1927, with Amendments to and including April 6, 1978 and are still in full force and effect:
ARTICLE VII, SECTION 1:
"Policies, bonds, recognizances, stipulations, consents of surety, underwriting undertakings and instruments relating thereto.
Insurance policies, bonds, recognizances, stipulations, consents of surety and underwriting undertakings of the Company, and releases, agreements and
other writings relating in any way thereto or to any claim or loss thereunder• shall be signed in the name and on behalf of the Company
(a) by the Chairman of the Board, the President, a Vice President or a Resident Vice President and by the Secretary, an Assistant Secretary,
a Resident Secretary or a Resident Assistant Secretary; or (b) by an Attorney -in -Fact for the Company appointed and authorized by the Chair-
man of the Board, the President or a Vice President to make such signature; or (c) by such other officers or representatives as the Board may
from time to time determine.
The seal of the Company shall if appropriate be affixed thereto by any such officer, Attorney -in -Fact or representative."
IN WITNESS WHEREOF, SEABOARD SURETY COMPANY has caused these presents to be signed by one pi s Vice -
Presidents, and its corporate seal to be hereunto affixed and duly attested by one of its Assistant Secretaries, this ........................
dayof.......JUly..................................... ISOD.....
Attest: SEABOARD SURETY COMPANY,
(Seal) Thcmas F. Johnston By.....W.S. We trell.................................................... ................................................:.......................
Assistant Secretary Vice -President
STATE OF NEW YORK
COUNTY OF NEW YORK •'
Onthis ....28 ?.................. day of .................................................... :MX .............................. 1980......... before me personally appeared
.................... v-190141t"11..........,.............................................................. a Vice -President of SEABOARD SURETY COMPANY,
with whom I am personally acquainted, who, being by me duly sworn, said that he resides in the State of ....... I`eW..IISX:SPY.........
:
that he is a Vice -President of SEABOARD SURETY COMPANY, the corporation described in and which executed the fore-
going instrument; that he knows the corporate seal of the said Company; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto as Vice -
President of said Company by like authority.
State of New York
No. 24-7104540 Qualified in Kings County
Certificate filed in New York County
(Seal) Cc n-dssion Expires March 30, 1982
Violet Johnson
............................................................................................
Notary Public
CERTIFICATE
I, the undersigned Assistant Secretary of SEABOARD SURETY COMPANY do hereby certify that the original Power of Attorney of which
the foregoing is a full. true and correct copy, is in full force and effect on the date of this Certificate and I do further certify that the Vice President
who executed the said Power of Attorney was one of the Officers authorized by the Board of Directors to appoint an attorney -in -fact as provided in
Article V11,Section 1, -of the By -Laws of SEABOARD SURETY COXIPANY.
This Certificate may be signed and sealed by facsimile under and by authority of the following resolution of the Board of Directors of SEA-
BOARD SURETY COMPANY at a meeting duly called and held on the 28th day of June 1978.
"RESOLVED: (2) That the use of a printed facsimile of the corporate seal of the company and of the signature of an Assistant Secretary
on any certification of the correctness of a copy of an instrument executed by the President or a Vice -President pursuant to Article VII, Section
1, of the By -Laws appointing and authorizing an attorney -in -fact to sign in the name and on behalf of the company surety bonds, underwriting
undertakings or other instruments described in said Article VII, Section 1, with like effect as if such seal and such signature had been manually
affixed and made, hereby is authorized and approved."
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of the Company to these presents this
. ............... 5th......................... day of.............................May......................................... 19... Ri.....
mom. ••''a••,,�•s�
. o
c 927 �1
W
N :•
9jF Or Ni'M�
i
41 .......
Secretar
Form 9$7 (Re,. 6.79
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions
of Article 5160 of the Revised Civil Statutes of Texas as amended by Acts of
the 56th Legislature, regular session 1959, and all liabilities on this bond
shall be determined in accordance with the provisions of said article to the
same extent as if it were copied at length herein.
IN WITNESS WHEREOF, the said Principal (s) and Surety (s) have signed
and sealed this instrument this 5th day of May , 19 81
SEABOARD SURETY COMPANY
Surety
*By 4 U O
Attor
Pr�ipal
Principal (Title)
Princi 1 (Title)
Principal (Title)
The undersigned surety company represents that it is duly qualified to do
business in Texas, and hereby designates Morgan -McAfee Agency 1603 Broadway. Suite 203
Lubbock, Texas an agent resident in Lubbock County to whom any requisite
notices may be delivered and on whom service of process may be had in matters
arising out of such suretyship.
SEABOARD SURETY COMPANY
Surety
*sy:
(Title)
m Mayfield, Attorney -in -Fact
Approved as to Form
City of Lubbock
By:
A City Attorney
*Note: If signed by an officer of the Surety Company there must be on file
certified extract from the by-laws showing that this person has authority to sign
such obligation. If signed by an Attorney in Fact, we must have copy of power of
attorney for our files.
STATUTORY PERFORMANCE BOND PURSUANT TO ARTICLE 5160
= h OF THE REVISED CIVIL STATUTES OF TEXAS AS
AMENDED BY
ACTS OF THE 56TH LEGISLATURE, REGULAR SESSION, 1959
KNOW ALL MEN BY THESE PRESENTS, that John W. Addink, John H. Fritsch,
Charles L. Barton and F. Edward Stivers
(Hereafter called the Principal (s), as Principal (s), and
Seaboard Surety Company
(hereafter called the Surety (s), as Surety (s) are held and firmly bound unto
the City of Lubbock (hereafter called the Obligee), in the amount of
One Hundred Fiftv Thousand Dollars
($ 150,000.00 ) lawful money of the United States for the payment whereof,
the said Principal and Surety bind themselves, and their heirs, administrators,
executors, successors and assigns, jointly and severally, firmly by these presents.
WHEREAS, the Principal has entered into a certain written contract with the
Obligees, dated the 12th day of March 19 81 , to
(A) To construct a pipeline gathering system for purposes of trans-
porting said underground water to the location indicated upon the
map attached hereto as Exhibit "B".
(b) To modify existing well construction to meet the presently existing
State Health Department regulations.
(d) To convert all pumps on existing wells to "water lubed" pumps instead
of "oil lubed" pumps.
Said principal under the law is required before commencing the work provided
for in said contract to execute a bond in the amount of said contract which
contract is hereby referred to and made a part hereof. The bond however shall
not be construed to cover provisions of the contract, or addenda thereto, which
require maintenance and or repair of all pipelines and pumps beyond the usual
1 year time period. Additionally, bond shall not be construed to cover sections
11 and 12 of contract.
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said
principal shall faithfully perform the work in accordance with the plans, speci-
fications and contract documents, then this obligation shall be void; otherwise
to remain in full force and effect.