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Home My WebLink AboutOrdinance - 1869-1956 - Water Contract Between City Lubbock And Canadian River Municipal Water Authority - 03/30/1956Best Possible Scan · -···"' C 03-30 -\95lo ORDINANCE NO. 1869 "AN ORDINANCE by the City Commis•ion of the ~ity of Lubboek1 Texas, prescribing the form and substance of a water contract between the City of Lubbock and the Canadian River Municipal Wate?'.. Authority, authorized at an election held for the purpose within the city on t.he 13th day of March, 1956; authorizing the Mq-or and City Secretary to exect1te said contract on behalf of the City Commission; and enacting provisions incident and relating to the subject and purpose of this ordinance.a WHEREAS, under and by virtue of a resolution and order dul7 passed and adopted by the City Commission of the City of Lubbock, Texas, on the 9th day of Februaey 1 1956, 811. election vaa held in ea.id Cit,-on the 13th d&7 of March, 1956, to detemine whether or not the City Ccmmiasion of said City should be authorized to contract with the Canadian River Municipal Water Authority for a water supply for said City as a.u.thorlzed by Article 1109e., Revised Civil Statutes of Te:ms 1925., and other applicable laws; and WHEREAS I by resolution am order ad.opted on the 22nd day ot March, 195611 the returns er said election vere duly canvassed by the City COllldssion and declared to be in favor of the water contract and that therefore the City Commission is authorized to pasa an ordinance prescribing the .form and sa.bstanee or said contract and directing the execution thereof; therefore ' BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBOOCK: SECTION l: Th&t the water sapply contract authorised at. the aforesaid election be and sam is hereby formally approved and adopt.ad by the City Commission as to tom and substance as the water supply contract which should now be entered into between the City of Lubbock and the Canadian River Municipal Water Authority. SECTION 2: That a true and correct copy of said contract so approved. and adopted is attached hereto marked Exhibit "A"., and made a prt hereof by this reference as fully as if hereinset forth at length. SECTION J: That the Kqor and Secretary of the City be and they are hereby authorized and directed to execute said water supply eoatract on behalf o! the City ot Lubbock, and as the act and deed of aaid City and its Cit;r Conmission. SECTION 4: That the City Secretary be, and she is hereby authorized to deliver certified copies of this ordinance and minutes pertaining to its ad.option to the Secretary of the Canadian River Municipal. Wa.tfr Authority for such Authority18 records and proceedings. ; SECTION .5: That six copies of the afaranent.ioned contract executed by the city officials aforementioned be tranmni tted t.o the Secretar,y of said. Authorit.7 with a re9.ueet that upon execution by the proper officials or the Authority., two copies thereat" be returned to the City for its records. PASSED 00 APPROVED AND EN~~D, this the 30t=~ ~TRI ,CITY -t:Jr w~ . ~ ~ ary., City of Lubh> ck, Texas ./ 0 ----t~-..ci,o~_._.._.._,_...,,, ..... Mlll'-=lt-•:ne: ___ ,_a,111:•n---- a. Board of .D1f"O, .. it;ore •t (;ANADL\M Rtnft QNIC:X.PA.L '-'tATfill Atn'Jll)Qff ~cmveM:d Jn -1on en ~n.-:~ c-, o.t A.r,rll, 1·,!, . ...-., .. , ~ N~ar -~i.R,& plit,C• ~ .. or ., , .. 11lton lot•l, i r, ts• Ci~ et .tl.&.inrln, ir.xaa. •' lfhi~ ... ,1n.i IMn .. ,... PNMr.t -.rad i r., a.,te,ad&n:ro t-hlt t'<>llowi n4 r,.tre;r ,on• J. RA! DICU'f ftOID1" ,. JIU.IT .was ·)I nlYU taMU t!I. fDflD li.l U.D 3&• BlCIIUDJOI ti • .I.Jlr-'" BOF'JIIWI YUi.iX llX&iT ID'IJll&J Z...N, fe ... lA'fe .t;L&,Dd • ft .tU i:,r~l.l, ?fru• , &nd t.be tellearinc aoe.-.t.1 patteraon and &dwarda • _ .. _ __,,_,,. ....... ·-·~------..~---------·-· -·-·-· ...... ,_.,. --- 'n-f:rea14o.r.:$ p.rvNftt.4 -~ ~-B(ll.rd lot' 1ta ~:an- a1dtt~10ft ,_ toll..-lne NttOl~t!~t .l HUU~l.OTIOII tty Ulie ~.'Cl ot DJ l1'e,jt.QN et t.l'w ~t.a;: J11n, J1.m1 .. ~.1JJ,&l 9'ater •~1an,7, •--~ria1.q eu-1?,,i10A •f WAN~ 1-Han\raQ\a w1,11 ~ e1t1N or e.,,.,.,., aroc.&11e1.J. r 11m1•, l.eftll.&nd,. wt.rto61i', 1 · DQnnell,. .i.l.&ion •IWI~. hu.a. flleN~. 111-. __ , .. _{;)j.9-.~tL ---~---mowd \he ~-f.• ., A.Ld r9Mla~.toc1, Nbich .,,~(J."' WU et .. 11 ••c~-\IKt ::;~ ~- ____ P..1..J1.1. __ ... _._. Tbe aa.td NM.L44~1on -· tbcm r•d .1 •• f :.J!l ) l•l t..~ !le~r.• .. ary a rad a.tt.Ar t~,ll dia«e1..,aeJ.er. and -~ ... N delH,..n- t.1~ri# ·t-. q~•e-•llo..-i .. called tor, -.i.u,on. M.14 reao1 .. .-e,.lon n• i,:..;, ,~ & vot.~ of ~ ~ ot DJ.rec-..on* 4nd .a i-aa«-ti., ~~•<1 ~ld •~'la.ete.i ~1 t.h« tol1•1lld -,o~. (JMJ.l 41"'4'.Si ~r-a. D1o~, lla.u7, IM-v1a, f1r46er, Jleivaa r # ,..1 llhtl,rd .. ~ • Wl'IIJ1, Clay-son • Botnit..~~, l:1 t t--• .... C t : - .Olia ·---~-__ .N_o_q~---··--······-··• ______ ---·-··-• /11/ ltobert ,. ,,~• ~--· ,-r-::·r-·•i;r:--;,···-~---..-.-.1 .~i:t• # .1,1'llilf •~.x-. ·:\\-Orta ,Q 0 0 - • Dl.QutfliJH »•· •11e DMl-4 ~ D1rec t•n or thff ean.~1&11 1'1ve, ~fl.1¢1,Pal '\li&te1· Au\Ur1t/, aa.,~l"iai• ••o~t.100 of •tff cHNatnct.a Wltll lb• ,tiS .. of Bo~P• ~1•14, WIMk, tewiw..s, .Lliib~o,1r, .J I t>o11n11ll, .11.aa.on 6n4 T ... t.eu, ftut llilDAlW,. t.hi• ao&.nl .._ N(01Ve4 t~ O&Oh ~ UW Cit!•• ot ac»r,:e,, ~1•14, LUleM, i.Mvollar:J, t.u~~k, e.J\lnt•l"'PA.rt• d!.tly •ao~ut.84 'DJ ~ preper otf.l~W• or u.)i\ ~1,1 ,.. ... ~~ t 'Nq; a"-'1 ~KIDAI., •U •t.~r ~PPl1 ~,ontrac\a to M~•1v•d, WlfN &itie....,rJ.~ ~ • ~rt iti&d COIJl ot an oNU.nanue U:ile ,...,.rn.1.n& bott, <>f Mt:h GI a.ht ..... ~tin ,u1t1•• 4Y1Mft~1n. ~ awlbor"it.1 .r ~ PJ'GINJ" eftiot.l• t4 euo~t• 8<J4:h ~ra.;:'- WDMAS, \M •• ,.-.a,. t.t••-~t1onff u... lft tu toMt Aad i..;~n U'A proviAliW Mft\.ot•N &ppro-,ed b1 uua 3-""4 Wld or lllb.S@ "°''~• _. di:re-..t•• w •a,.:b ot Mid e1,s.ea fUJ'SJ.&Y,t. t;) t.hlt --.Nt • ...... 1-w,10., .,. DaaWNI" a, 1:,~~" and lill!MAI, the ••~~'-1• ..r Mld. reape"tl'f'e cGntrAct.a !:-;; t2W P~I' etn.:.1.&1• llt e&#Jli ., tJw &t01'191M10llOd -'.l1t1•• naaed -..-.1n .. -,pro.,.. at eleot1-. h•ld in a&14 N.,.0\1•• ctt1•• 011 Jluodl 13. l-1:: in ~-.1.s.&n4e with the ,rovui-. ol A~ 1.lle 110,. R.c.s. flt 'l"exa., u,4 o•nar appltatlle lawaJ and wuuu, ,Ut .a,pe•r1r"I ~-t all thJnp & ... L'\ ..,..,. w1Wi Nli,ard t..o u.e a11,bori&&t.1on .r.t e.uouctor, ~t uw M1d qi.«,r ,;.0.:11.Jl"ila.te b.y ~b or tilta ".,,.~,1" ~i,.1 .. ~ t.lWN1n. th• P.04:'d ~ UWl'Slt-4 t.t .... ahwld h •• u.-,utet1 by tn. ;>-N1Wr ot"tir.1-1Ala rA ... li.\U.ri,¥ •• U go~ ...., uiaxUng &,,d •~tA- •Ut..inG eon\Nli1t-8 IJOt ... n. t.M Auth,.;>rt~, ;u1d kld r88J,e¢tlff .. :t t1••• U..1,.tore N ff U.OLftD • 91 aMD a, OIIWIOIII a, 1111 CIUDIU U,U .. JCJPAL UIU AU'ftlOIIff 1 ~~ tbai • lllrba1f ., U. ~1t1 ,.,,. 1M a..rcs .t Plftc~oi,e ar..11 u Illa u, .._. .._. ~ -..141 Autaul~J and. MU ....,.., \lie '"9l.._1 Pld lieoNkl.'7 taeNOf eall M and ~ aerebp &N .... ~ •• tna~•'" •• ••u~w •ci. et the es.a c•-.,.aterpal'la ., 1M .,.,...,i.ei• w.t• ._1, o•t~'- ·"~•1."4 , .... ...,.. ol' -. c:1,i .. •t .... ,., .. , • .11.u. 1.1m ... i..Teli.nd• :.u-..k, O'~U. SlaiOrl ... tr.a .... ftau. lfffl2!-1!. "-' .,_ .to••••'-'• •'•• !et\'J"&Q~ fNII ead d -.u, .. .,..,1,. 01\ie. bit, and ... lleNt.iJ &N t...-111...,..... •• t-o r .. &ad-. ...... -."-.. ... •1• ..._W -N n-.. .... 1.nM bel...,. _,_. •11111,t,~ AM tM ne- .,..u .. cl.\!" DlM'I ...._,a. ,_ t...11' UNillM .--.,...,... ot a1Al ,..,__,,," oeall'MU, '°• -u.,, •1• a oenUJ.ed • .., of ,a.1.e Neel\lllor. M tbl c1,,. ,e,.l'M&IT fll MM iil1tt ,,_ msoa tNd oen111Q,a wN reoet•ed. MUD# ABOftD AD WIACID, UU. \M 91a _,. ol Apat11, l"6. (.tu.l) /~ober\ I. Maxez..__ fiiii34iil; ·..-.. ii' ..... --~lrii-1o-r1- I• Ula ..u,44,:-ai (;MIS, ;le.aNt.&r¥ ot the ..... ~ Ell t'9(! '4ra or ,ne CA>{&.DU:11 Uftft XONICIPlL Vl'l'U Atl'l'llalll:ff. Or) PIDI' CU'l'UT 1tM1., Ii.be •'-ow• •"'1 r~n,P.tncl 11 a t.,.'"'• and •w1-.ot -S,l' ot ~ Naelu.t1on .-.i\.:-»Jt11in«, c.u"u.,1• or llea2>•r .Jt'I' •t•r ~-~rMt• (~ ~11-'at .. ,...n&lni.~ t4t tla ad,op\1on) ,-a•--4 r.,, tA411 ll\lt~1ty Ori ·\tw 9 ~ ~ fd' April. l~~u* &1l4 ttbir:h rfNt.)1.iti-,n 1a ot N c(u•Cl if~ '"'-·---~ _ ! ______ or \n• lt11S'-lt.e• 4>t Mid -~~1•1• lW wR'IU:U wa.emar • 1 n.w heN~:;,o aicntc1 a, t_... otf!'-'14117 ~ Jtille4 U.• 9ffj ot aa1d A~,hor1t.J. tat• t~• [ -~-, , Q 0 .. '< '"O C !~ ri' [J ! . ~ ~ I ! I I i 8 I ~ F f . ~ I r a I l ii 1.1 'I .. ---1 I ; ! ! f I ~ j I i : I J f 1 i I ' [ f I I "',11111 i ( i . ~ ~ ~ • t t I : I i E I~ "" = i ~ !' i , i t t i 1 I ~ • I I .. I a i f 1 ; ! i I ; 1:1111; ! ~ t i I • l i i f f i : i I~ i l j I G ! I I 1 : r : I ; ~ j I I 9 I i f I ! 1 5 l f I e e fa!ciraJf~;:EI .--~1111·, • • C ~ :a .. I • ~ [ f ~ g 8 ~ ---~ l l,,,· Jt 1 I i ! 1 i I t i I . ~ l I r ~ ' r 1 ij ~ r i J l ! ! I J f i l I I t I ... i I f ~ I I f I ~ t f i f .. f I J~ D ' .. _) f.anadian River Municipal Water Authority OFFICE OF THE SECRETARY Cit7 Hall Borger, Tena April 11, 1966 Mro. Lavenia Lo•• City Secretary Lubbock, T exa • Dear Mrs. Lowes There is being forwarded to you herewith two executed eopi•• o! the Water PurchaBe Contract with thi• Authority, which contract was dul7 executed and acknowledged on the part ot 1our M.a:,or and the Secretar7 under date ot March 30, 1966, and executed on behalf of the Authority b7 its President and Secretar7 on the date of April 91 1956. You will find attached to the1e contracta the acknowledgment of thoae who executed \hie contract on behalf of your city a • well as the Authorit7. With kindest regards, I•• A.Allsipc CCI Mr. Bobert E. Maxey Mr.!. B. Huguenin Kr. George Finger 5 ec retary-T r ea surer -- r .· 0 .. ,. TIii ftATI f/1 T DU CCIJl'i'l a, t17BBOCI I I ftD NPVa I .... ..a .. tend i~ \Ma tbe 30 aa7 ot --.!911:l*!!!...·;...._, 19 II , NW.a \be c .. aHan li•er lllnateipal W.Mr All\llorlQ, • 'OouerYa\toa Dt•triet. •114 poltUa•l aubU•1•1oe ot \be lute flt .,. •• , tub ....... , •n.Unc •114 1at1111 b7 Ylr\ue ol ...... I' a3, Aou of tale ,,... lapelature ot Tuai :I.ft 1"3, hentaett.er call.et \M "Autllorit,•, ... .._ 01'7 ti/I L11bbook1 Ten• , • aaalolpal oorpcwa,s.oa OJf t.1111 Oeua\7 ot i!bb ou , '!nae, aottna -, -Yirwe ~ autborit7 ot ••ral in, Mntnatwr ceU.ed tM •ot17". vz,11111,1 ,,...,, -, tbe Ac, OJf l\• eneltoa \lie Aut.hol'tt7 t.~ ,...,Mil to ...... , aoauol, ,_..,.", JN'"'' 4111Vlbute .... 11\iUN .... non •D4 flood•--• •adl w.,...o,r1ate« tlow ot U. Canadua IS.Mr • lu t.ributer ie1, •M turt.ller to •a•er lato -vac,a wlUI ott1•• to, ,aae . purpo• ot •PP~i .. \Ma wt.el' tor •n1ot,-1, 40llltlt.1e, 11114u•vla1 Nd otaa•r UNtu l ,-,ONI' ... VDaW~ Cf.t.7 •• • oou"weat or ._.r Cit.7 ot \be Alatborlt.1 11 ens.u .. to Ula MDWlt ot ,.__. llen1Dlltter NIIIUNW tor on• 'bl•1• of priori~ onr all INat o-.r eoutttunt. or Jlaet?I' C1t1•• (nbJect. to tbe Autborit.J'• rtlbt to eoatnct vtt.11 otller• •• Mff1a Nt fort.a.)J •D4 . WMUI, JutllorStJ aow coateaplau• '-ctOG•tructloa ~ • • •• •• reMl"'f01r on tbe CeMdlan 11Yer __. ...,..,., Tau•, '° t,.IJUIIIS ', \...._,., tbe •tora alld flood vat.n aad aappropriaW flow ot N1d ri"r vtlllla tbe 11111.t• ot 1,, PNNDtatlOD ftW ·vub tlN Bute loarcl of Vat.er laliDMr•, •nd thoN preNr1Md tor Te:u• lt1 the C•Mdian Riftr ooasieet, Hid reNr\'Oir to be•• • capecU,J ot approxiMtelJ ,00,000 MN fNt ·or con••rvation •teirea• develop! ... • dep.,ndabl• ylelcl -0f upproxl•tely 0 VBIRIAS, A1.1tborit1 ba• been autllorh.ed to h•• Nffmae •upporW lH,11118 ta tbe total and principal•• ot •1k,8o0,ooo, tor tbe purpo9e ot conatructinc tbe atonea14 du, n••rvotr, and euoll water purification plallte, aq\lilduct •1•teu, ancl ot.Mr propertt.e• including intake ant P\IIIP• ta1 taaS.litie• u are neceHary to 4-Uftr treated, ,ota'ble vat.er to lt• Mlllber Citi•• and to eucb. other per•ona, tlnae, corporat1ona and political •u.b41 •111ou a,, 'b7 • appropriate contract, •1 becaae ent1 tled to ncel 'H .... J &Dd VllftlAI, Autbortt.1, in it1 naae, po•HH•• a pn••ntation tiled vtt.11 ta.. State loard ot vat.er ln,tneer• in accordaoo~ vlt.ll law liYilll it • prior ript to undertake tbe 4evelo)IMnt of tbe ~on•al4 ._ aal n••r• • votr proJeat. to illpcMm4 th• water ator-nttonect at tltie pot.8' 1Dllcate4 on ,.._ CaDld.1&11 atwr and vb1ab. pneentatloD l&n4er tbe law •1' 'be 0011wne6 into• ript to appropriate &DDually auch ~•nttt:r ot wa\er \&POD, t.be P"&nt.1111 ot • permit 'b:r tu It.ate loar4 ot Water ln,iDHr• prior t.o tbe o 1no-11t ot conetruot101l; aD4 WBDIAI, .Av.tbority b&• reoeind. an4 appro••4 a report of Par•ou, lrtnckerhott, Rall• MacDonald, ..._inNr•, dated Septuber, 1954, a• revi..«, oopl•• ot vbich have been delivered to tbe City and vberein UIOl1C otMr thine• it 1• 1tated that the Autborit7'1 contaplated vater •tor.ge ant 41•tr1but1oe conatnaction progz-.. a, Ht tortb in •aid lleport (tbe "ProJect•) •1 'be coapletecl vithin three year• troa the·t1Jle it ba1 arrived at a final u- claioa to proceed vith the con1truction ot 1uch Project; and WBERIAS, by Y1rtue ot tbe autbor1ty ot an election bel4 tor tbe purpose 1n the Cit:, on the lit.II day ot __ ..,.Ml...__rc_h,.__ __ ., 19.5 6 , 1a caa• pltance vith the prov1•1ona ot Article ll.09e Vel'DOD'• A~ 'few C1Y11 Statute•, 1925, •• ... Dded., tbe Ci't7 c-1••1oa 1• eapovere4 to direct t.b.e execution ot tbia acreeaent by it.• Mayor .... City Secretary on beb&lt ot the City; and WHBRBAS, it 1• recognised by both parties bereto tut tbe execution bereot vill in no way i •pe.ir tbe City'• risbt to continue to own and operate 1tl vater distribution ayateaa, and, tot.he extent that au.:h •1 -2 - t not coatl1ct vitb tbi• •are-nt to take wter tr011 tbe Autbor1t1 ltere- unc!er, it• preMnt veter IIUPPl.1 t •cS.Uti••i •Dd IIIIRUI, Nld part!•• benb)-l"•oopi .. -.1111 b7 tbe e•outloa bereot OODtira tbelr 11Dder1taadi-that la tbe tlt;_ooe •D4 Nle ot • I tbl atONH14 .revenu•'wpported _'boD4• •n4 in the prooeecltag1 vital n- latioa thereto Aaatbor1t1 will pledge tbe prooMCS• of thi1 oontr•at, end •iailar contr•ot1 v1th •uab othe~ Jlllll>er Citie• •• •1 exente · .... , tor pa,-nt ot tbe expeDNa ot operetilll •n4 •S.ntaiDiac it• t •cilltie•, for tbe pa,-nt ot tbl principal 1Dc1 inten•t. requiNMnt• pertainiac to H10 revenue 'bond• aD4 tor tbl •inteDanae ot ·•n, l"•Hrve or otber tuDct• •Del tor aoa»U•no• vitb •121 co•nant• nioh M1 be retu1"4 bJ •111 l'elOlutlOlll 01' 1n4•atlll'e• •ntencl 1nto bJ the AuthorU11 *' •uob plNp 1• oec•••l'7 to obtain and will 'be tbe baa11 tor tbe orl41t DMCled l>J tbe Autborit7 in or4•r tbat euab 'boinll• •1 'ff •al4 •114 tbe pro- c•e4• tbet-•ot rNliaed tor tl\e purpoN of coutruo~ng tbe Authortt111 nter eupply and cli•t.ribution -q•ta; and VBPIAS, Cit7 •II'••· and und•r•taDII• tut the IUCC•H at Author• it.711 ProJect 4epend• upon th• e,:noutlOD ot 111111.ar oontr•ct• viUl it• Nellber Citi•• or vith other, tor the Nl• ~ water 1n auttici•nt aaouut to iD.IUI'• iDCOM a4•quat• to support the tinaactna ot tu ProJect; Jar 'l'BIRlrCIW, in oon•14ent.1on ot tbe 1111tu1l 00,enant.1, •11'"- •nt• •n4 u.nd.ertu1nc• bereiD Mt tortb, tbe p1rti•1 beNto bere'bJ' 1p-e• end oaotract •• tollowtl: BICTIQI la plf'l'I'l'Y a, VATIR -WABR CHARGE • MillfllJM PUNll'II. (a) UPoD tbe execution ot th11 coatnot aDd 111bJect to t.M pro- vilion• lMreot, 1nclu41og tboae Nl&tiac to the 0'bl1ptioo1 at the Autbortt7 to 4eUYer veter to the City onlJ up00 tinal completion ot th• ProJect, tbe Authority coftnant• that it vill tender and •u IIIY•ilable to tbe City at tbe p0tnt or p0int1 ot delivery bereinatter 1pe_c1t1ed treated v•ter tor tbe per1o4• and in tbe •~ aaounta • Uoved tor lliniam ,.,_.i,. Al cone14erets.oD tor the agre..,nt ot the Aaitbority to tender itucb v•ter, t.lM city agree• to JM11 - 3 - ' '-' in accordance vitb tbe tollovtq. On or prior to June 30, 1959, the A'1tbortt7 1ball COllp\lte tbe aftrap total annual water pro4uot1on of tbe Clt1 •• vell aa ot all o\Mr Nllllber Citi•• 4ur1na tbe calelldar ,..,., 1957 an4 1958 troa ta.eir taa.n a«arce ot •unl.J• U•inc •• a Mei• tbe Cit711 proponton ot •uoll aftnp total anmaal production tor tboe• two year• tbe AutboritJ •ball ccapute tbe Ctt1'• proportionate pert ot tbe total anmaal UIOWlt of water to 'be •upp~te4 b7 tbe AutboritJ to all Nmiber Citiee tor the total •1n1alll annal pe1•ft1t• wlaiab tbe AutboritJ mat rece1•• tr011 all Naber Citie• 4vlaa tbe tir•t au t\all calendar JUr• after c0111Nnc-ot ot vater ••nice, aa4 'bue4 on the .... proporation, tbe City'• proporttoaaw part ot tbe total •lmaua umual payaent• vllich tbe Authority auat receiYe 4urlng ••14 ttr•t •t.x t\all calen4ar rear• atter cOlallnc .... t of water Hrvice. Por tbt purpoee, benot vatar ••rYice •ball be couidered •• ••t.ng ccmNnce4 iu the tlret calendar year after ccaaenc ... nt ot 1ervice to tbe t1r1t Member City to reoeift 1e"ice. Iu making the atoreeaid ccapute.tion• ot tbe aaount ot vater vhi~b tbe CitJ •ball be entitled to receive and tbe aaowit ot the total •iniarua annual payaente to be •4• theretor b7 the Citie• to the Authority, tbe total amount ot water to be 1uppl1M all Mellber C1t1•• tor tbe total •lniJaa annual pay•ente to be received troa all Naber Citi•• 4urinc aid tir•t 1ix tull calendar year, after coaen6 .. nt of vat•r eervice are •bovn. 1D the tollov1na echedule: TOTAL A>«>IJIT Of VABR '!O Bl SUPPLIBD ALL &ID48IP !O'fAL rou, CALDDA.R UAR CITIIB .POii '1"0TAL NIIINJN MllDIJN AJTD CONMDCDBlft' ADUA.L PAYNDT (NILLICIIB A1IIIUAL 01 SIBVICI 01 GAL1D11B l Pl.lMll'1'8 r1r•t 9,64o $2,~,eoo Second 10,16o 2,235,200 Third 10,520 2,3111 ,ltoc> Jovth 10,900 2,398,000 11tth ll,310 2,a.88,200 Sixth ll,745 2,583,900 In connection vitb tbe toregoing •ncl in recognition ot tbe po11ibillt7 \1-.t •oae ot tile AutboritJ'• Member Cities my not contract vitb it tor vater, - 4 - J but that the Authority may find support from contracts with other ueers vhicb vben c011b1ned vitb that received trom the coAtracting Member Cities vill prove -./ adequate to 1upport the Project vith appropriate modification, it ia agreed and underatood tbat tbi• contract 1• not nece••arily dependent upon contr•cte vitb all other Member Cities and that the Authority, in it& discretion, uy proceed with the tinancing and pledge the proceeds ot this contract in eupport thereof. It 1• provided, however, that the standby charges aet forth in Section 2 ot this contract &hall be pledged to secure the *2,000,000 ot the Authority'• bond• vhich my tir1t be iaeued es recited in Section 2 bereot, but only it the standby charge• provided tor in oaid Section 2 together with euch atandby cbargea ••maybe contracted for by other Member C1t1ea and other contractor• tor the ••me purpoae and any other funds the Authority may 4eriYI from any other eource are determined by the Authority to be tully eutticient tor that purpose, but unleu such support ia first determined to bP. f',illy •uft1c1ent tor auch purpoae, none ot aa1d $2,000,000 ot bonds will be sold. _) rurthennore , tb1a contract will not be pledged to aecure any ad~1tional bond• ot the Autbority nor shall auch additional bonds be iesued or sold unlee1 cgntracts with all contracting Member Cities end with others who may contract with the Authority ere determined by the Authority to afford it a aufticient income to operate and maintain its tacil1t1ea and to pay principal end intereet requirements pertaining to said revenue bonds and to maintain any reserve or other funds required by the covenants of any resolution or indenture entered into by the Authority in connection with such bonds. During the tirat six tull calendar yeara after commencement of service the City shall not be re- quired to take more than the quantity of water to be arrived at under tbe methods hereinebove outlined nor to pay therefor a price in excess ot 22~ per 1000 gallons. The City shell become obligated to pay more thAn 22¢ per 1000 gallons ~or veter in the 7th end subsequent years of service only in the event that for some reason beyond the Authority's control eome contractor or contractors may fail to meet its contract payments, or to pay for such addi- tional annual maintenance and operation coats as may be required in sat1a~ec- t1on ot Article ll09e Vernon's Annotated Texas Civil Statutes, 1925, as amend- ed. Should this occur the uniform price of water to the City as well as other -5 - I contracting Member Cities will be luaited to that vhich will •ttard u.e Autllor- 1t7 it• required incoee etter taking into account all income trom all available «>urcea. Any J10ne11 later received by the Authority troa any 4efaultinc con• tractor iii aey year thall be retlected to the tuU.eet extent po11ible in • lovering~ th• price ot vater to be delivered to the Nlaber C1tie1 in the 79ar next auccffding 1ucb payaent. It 11 further agrHd •nd und•r•tood tbat the a110Unt1 •hown in tbe foregoing table• aa total m1n1111W1l annual payment• applicable to the re•pective 7ear• indicated are be1ed on preaentl.y eat1•ted operating expenM•, debt eer- vice requirement•, and such other co•te •• •bell con1titute the Authority•• over-all annual expeneee in thoee years an4 that 11Uch a-,unt• are tbo•e vhicb can be realized at• price ot 224 per 1000 gallons at vater tor tbe correapond- ing aaount• ot water 1hovn in said table and vhicb ere to be available tor apportionment -.ong the Member Citi•• tor tbe1r m.nillUII emnaal pa191nt1 under tbie aubparegraph (a). In the event the emounta to be realized trca th• Jlnlber Citie1 •• atorement1oned, in combination vitb any incoae the Authority M7 de- rive under firm contract• ~1th others, vill produce tund.1 over and above all the Authority's debt eervice and other requirement•, above referred to, the amount ot sucb excess eball be applied in reducing the initial price ot veter to the Naaber Cities. Aleo should the Authority realise construction or opera- ting co•t• less than tnose nov eetimted, enabltnc it to reduce ita requirement• the amount ot aueb reduction ahall be reflected in a reduction ot tbe initial price ot water to the Member C1t1ee to the tull extant poaa1ble under tbe cir- cwutancee prevailing at the time. The method• set tortb tor redetermiaation of water retea •• are provided in Section l(e) bereot are not to be con•idered •• attected by or in conflict vith the foregoing, but ahall be considered•• cW1Ulative thereof. The City hereby agrees that •hould the Authority be required to con- tract vith veter users other than Member Citiee in order to tinance the.Project aucn contracts lllAY be of such duration, ror eucb quantities, aDd at aucb ratee ae are required 1n the Judgment of the Authority, provided that the aggregate quantity of ~ater contracted to others for periods longer than 30 years tr0& the date water is first delivered by the Authority to any user, does not exceed 16,~50 million gallons per year and in no event more than 35~ of the - 6 - ' } wpplJ ·••UA1bl• in tM HNrVOlr, •• tb•t water IOld to otb•r IIIHlicipeli- tt•• tor •DY per1o4 aba 11 not be IIO l.d •t l •H tban the baH price ,o Nellber \ •.• ..,,J ·c1t1••• In tbeN •sr• ... nta tb• City recognise• th•t it conr•ot• with u1ere 0 J other tban llnlber Ctti•• •r• required to finance tb• ProJect azq tuture claia ot the CitJ to priority 1D tbe Autbority' • veter 1ball be U.aited to it• pro- p,rttoaet• •bar• of tut Vbtcb r .. 1n1 ••ail.able to the contraottnc .._.r Citi•• after not to ·•xcnd the aount abo•• •ntione4 u • been oontraote4 to ~ber•, •DII tut in •o cto:lna the c1t1 baa recoanilect, d•tel'llibed •D4 •x•rc1M4 it• 11,cbtl to priority ot v•t•r allocation under Article 82Sc-154, •••i•ecl 01Vi1 Stat11tea ot Tua•, 1925, •• ... Ddecl. De.Uv•ry ot w•t •r to •111 llnlber C1t1 1ball not cOIIMDo• until the Authorit7 ba1 pron4e4 the taciU.ti•• vbicb •re neo••Hl'1 and adequate to d•• liftr at lu•t the aaount of vater to·be alloc•t •4 to it tor th• ainiaaa paJ• 11111:1t1 an1Ye4 at 11 atoreH14. lotvitbetandina tbe UMNnt• ot vat.er vbich •1 be elloc•te4 to the Cit7 tor tbe lliniaua annual char• to be •!-"rived •t. •• aforeHi4, th• Mxiaua rate ot de U 'H't1 M1 not excffd __ 28_.1,_000....,.1wO(j()...,_ __ •1111111 gallon• per 4•1 during tbe atoreNid ds-ywar period. (b) It tbe Cit7 1ball take aore tban tbe quantity of water ell.ove4 it for tbe lliaiawl pa,-at in •111 calendar year I vhicb •1 be poe•i'ble vitb• in the MXUIIUII dail)' UOUDt pene1tte4 •• ator•Hid, it 1ball be obligated to pa7 the Authoritf at tbe rete ot l~ per 1000 1•llon11 ot vater tor euch add.1·. tional veter durina tbe t1r•t au full calendar 1••r• after coaaenc••nt ot •ervice. 'l'he .C1t7 -•ll recei•• no credit for vat.er available for it •n4 to vhicb it 1• en~itled in •111 calendar ,ear, 'but vbicb it. doe• not tau in •ucla (c) ,.JMDt of tbe •1n1111111 annual Nrvice cbllrge• Uate4 1n au'b- paragraph (a) bereot ahall be •d• by tbe City to tb• Authority in tvel•• eq,ual montbl)' 1n•tallalnt•, tbe fir•t to be.due •nd. payable on or 'before tb• tenth day ot th• t1r•t tull a:,nth tollovina the ~nc•-nt ot NrYi~• •D4 aucb payaent• eba 11 continue to be •4• in •1111 lar •nner in Heb aonth thereafter. hyant tor v•ter delivered 1n •IQ' of tbe atoreNid calendar year• vhicb exceed• tbe •->unt all.owed tor tbe lliniaaa annual .. 7 - 0 peyaent in that JHr wu M •• "1 the ott1 to \be Autborttr on or before the tenth c1•1 at, ..... ,,. tol.lowiq the nd ot aaah r••r~ Ia the effllt tb•t tor •a, l'NIOM NrdN to \be ot,, fl"OII \be fro.S-cst 1111 not aoutruatlOII ltoal•1 (•• nternd '9 i • lea•toa 8 ,..,,ot), Ml SJllGiDI Vitb UNI ttr•t 417 ot t.M ~9tll __..., UM Ott,...,_, to •lie aotltblf J•Jllftt• to tbe Autbori t7 •• lboft stllW in •D ..-t Npn•n,hl tbl •01t1'1 ,rqJOrttoa• ot tbe •te1,t .. rrioe •114 oper1\ioaal NqUiNa1nt1 at tbe Aaat.lloru,-, woll ,.,_at• '° oont.imae until Nr.tff to tbe Ott7 l1 o. 1 naoe4. tM Jbr•N •••t nrvice lad opera\ioMl ~ralat.• ot tM Autbort'1• atonNH •-11 wa oee-tvelt\ll ot •11 --.,uat1 p•,altle Ill tut ,. ... ,,, tbe -.tbori tJ iD n-,.ot ot IUGb ao\ul o,wetioDal ........ •• i • ft4lll11'114. at tbe tm •• ia "••' of ,rtaaa1,-1 1ad taten1t .Oil 1tl NU "" ....... ; tor tbe •S.•MDIIDN ot • ., nNl'ft • ou.r fla114 •114 tor tbe t\alttU.-nt ot otbar ooYftan\• which •1 'be requtrecl ltJ' •a, ia4entun• eater~ into 'bJ tM Aaa.a.ort tJ. 'Iba eqnalion •ct.tr 11 ,ro- port1on• uHcS •• ator•Nid •ball tor NO ac,at.11 be¥e tbe ... m.1111 bft• 1111ped •• toll.ow• (vben aaat ..:,wst.a will DOt 'be lmon "oefon tbe eat ot • year tba A&atbor1ty 1baU ••· aon'.blJ ••ttate• tba~ with tlml Htt 1 ... nt1 to be •4• •• 900II •• praotic•b le tbenatt.r) 1 ( l.) In the event DODe of tba W>er OUS.01 •n receirl'DC Hr .. vice• by tbe tir•t ae7 ot tbe 4~ aont.b •tofflllnl,iolled, it •btlll ••n • tbat proportion ot tbe 4eb1i MrYice •Dll opent10Dlll Nfll&inant• ot tM Author1tJ wbicb tbe total ldcillla am111•l peJMDt• nq11ire4 ot tbe Cit, ia respect ot the ttr•t tull oalepd•r :,Mr after cu nnewat of Nrrioe be•r• to tbe total aiDiala •11111181 pe1111at1 nqatnd of all Jllll'ber 01\i•• tor oucb 1ff.'t, all ooaputed •• prod.Nd in leoUoo l(e) ail after •llov. tag tor peyaent• nceiYect tro11 otMr uHr1. (2) In the event 1oa1 Nellber ctt1•• •r• noelri.111 HrTice bJ the tirat 4•Y ot the 49th -,ntJI ator ..... tloaed, wt \bl City 111110111 other• vbo •r• not, lt •ball .... tJI• Cit,'• proportion ot tbe '9bt 1ervic• •a4 operational requireaeat• ot tbe Alatborit.J vldab r-1D• •tter J,< ' J ' .'-...,- ~ducting the veter pe1119nt1 attr\~~\ to euch month troa •11 the Meaber C1\bt receivS.na aervic• or recei••~ r~011 other u1er1, '1'bi • pr~port.ion ••H ~ c•l~\k\.•t•'1 •• that s-t\ or \lt ,~re•atl:CIM~ 'bllfte'e ·or the tebt aervic• and operational r•tuireMnt• ot ibe Au\~oYlitJ 'ftll'eta "'9 _.,.\ payaent •••iped th• City tor the aforeMnttoned tirat full c11end1r ,-1r 'bear• to tb• tot1l ld.nimua •nnu•l pa~ntl ••lianed 111 Cttiet not re- ceiv1nc veter tor 1ucb month, ~3) ln the ••~nt th• Oity llon• i • not reoeiYiDI ••rvic• bf th• ti rat d•1 ot th• 49tb IIODtb •tor••ntioned I it iba 11 ••n tbe bl lane• ot the debt Hrvice and operational requir-nt, ot the Autboritj vbioh r ... in after 4eduot1nc the uaouat• r4tquired ot 111 ...,_r Ci\ta• reeeiriq (4) ~ aervice1 P'rtol'Mt. b1 tbe Autborit1 Pl"iot' to tbe' tir•t full calendar ,ear tolloViac coaaanoeMGt t1f Hrvio• 1ball be paid tor bJ ainiaaa aoathll pa,-nt• tor web tral'tlonal portion ot the then oalend1r . . ,ear in vbl.ch ·••zvtoe• flJ'e rend•red •t tlle aoatbl.¥ rate pr•1cri'bed tor the t1r1t full c•l•D4•r ,e•r •• atoreu14. (e) It prior to the •D4 ot th• tir•t •ix full oalend1r YNr• att•r ~na••ot ot veter 1ervic•• to •111 Meaber Citr •ll aovenanta contained 1a the 1n4entur•• 1ecur1na the Autbority11 bond• relating to the e1tabli1baent anc! accuaulatioa ot the required intere1t and 11nlr1D1 tund1 to tb.lt tiM •D4 • 11 Bond ReHrYe Pun41 and Oontinpnc)' 1'und1 to 'be fiu Uy •ccuaa lated, ba v• been tu lti lled, end it l\lcb covenant• c•n be tult1lled b1 • lover veter charge, the Autborit;r'• annual deterainat.10111 bereinatter aet torth may co-nee 10 •• to appl)t to the tir1t full calendar 19ar next,, 4eeding the tultill.Mnt ot •ll 1ucb covenant• and in 1ucb event, the •nnu•l deterain1tion1 are to be cerried out•• berein•ttv -19citied with re1pect to tho•e year• vbich tollov the fir1t •ix tull calendar years atter comnencement ot veter eervicee. Un.lea, earlier 'bepn as aforeaaid, on or before Januqy let ot each ye•r tollovina the t1r1t six full c•lendar year• after coanencement ot veter aervicea, the Board ot Director• ot the Authority •h•ll analyze the ettective veter rate• then ln -9 - f l!f6 * .. ~ .. - force, tbe need tor additional rac111ties, tr any, the etrtta.ted Vll't~~ ✓-requir-nt• ot all Mllll>er Oitie• then receiving veter tr011 the AutborflTr aa4 ot other• vbo •7 have contracted with tbe Autbortty, tbe ••tiMted incaae vbieb •7 M expected froa thoH •ourc•• in that calendar Y••r• •Ill! the Autborit1•• ts.nancial con1U.tion ahll requireant• inclUdiac tho•• r•- 1at1na to operation and •1ntenanoe, principal and interHt pe,-nt• on the Autborit711 out•tandinc bon4• an4 all tuncl1 to be e1tabl11bed and maintained and coveoilnt1 to be carried ou\ vith re1peot to th• Autborit7•1 out1tandia& r•••oue aupported 'bond• under the prort11on1 ot the re1ol~tioa• aut~orizing tbe 1Huance ot 1ucb bon41 and tM in4ent.ur•• under vbich they uy be i •eued. Con1ider1ac tboH 1Dd other r•lennt t1ctor1, the Board 1ball make a 4eterainat1on ot the mxt.am 4•11.y rate ot deliver)' and tbe maximum quantity al veter vh1eb 11 to be allocated to tbe City during tbat calendar J•ar and tbe mim.aaa annual aberp vhicll au1t 'N •4• therefor in order tbat the ~thorit1 •7 recein tr011 tbe Ctt1 it• proper portion ot the ~und1 required to enable tbe Autb.or1ty to f\1111 M1nta1n •n4 operate it1 tecil1t1H 1od provide all •uu neo••••rt tor tbe payaent at prinoipal •n4 1Dtere1t requ1r••nt1 and the Mintenance al •121 re1erv• or other tund1 •Dd to carry out all covenant• in re1pec\ ot it• out1t1n41D1 revenue 1upport~ • bond• H atoreN14, and tbe City •1r••• to pa7 •ucb llinillua annual charge •o detenun•d. In ukina 1 t• 4•term1nation ot tbe lliniawa anowa l cparge re- quired ot th• City and the maxiaua ~uantity o~ vater to be allowed therefor the Board or Director• ot th• Authority abllll 'beae 1t• conclu1ion1 oa the ' proportion which the total amount ot water u1ed or cotunmad by tbe City trom whatever 10urce in tbe precedina calendar year •ball bear to the total amount ot water uaed or conaUMd troa vbatever 1ource by all Neaber C1t1•• in that yur, provided however, that in 1uch deterllinat1on 4ue cooa14•r•tioa shall be given to tb• aaount ot veter contraotecl to be tun11bed to uNr1 other than Member Cities. Tb• cSechion of the Board ot J)ireotor• at tbe Authont.7 shall in all. c•ae• be final and 'bindiaa upon a ll Nalber 01t1••, and it the Board t'a1la to Mk• 1ucb a re4atena1netion tbe rate• an4 cbarp • tor tbe preceding year aball continue. Vbeo the proviaioaa bereot tor the annual -lO - I 0 -~-~·-. '. . -~· -l'·•"· :' determinationa mentioned have been Nti•fied and •ucb annual deteraiaation• are to be c011111enced. euch annual deterainationa •bell •PPl.7 and be.Md• et- tective •• to all Member Citle• •t tbe aaae time reprdl••• ot whether or not the Autbority •Y have been able to coamence delivery ot veter to all Member Cities et tbe ••• time. (r) It 11 turtber under•tood tbat etter tbe t1r•t •ix tull calendar year• atter comenceaent ot •erv1ce and dependin, only upon tbe availability thereof tor delivery to 1t1 the City agree• to take froa tbe Autbor1ty not less than tho•e proportion• ot its annual water requirement• vhicb are 1bovn •• tollov•: Years after Commence- ment ot Service '7th 8th 9th II 11 II 10th " II f1 llth " ti II 12th " " " 13th " II " 14th .. " II 15th " " fl 16th " " " l'7tb " " " 18th " " ti 19th " " II 20th .. " 11 21st, et. aeq, " It fl (g) For the quantity ot v•ter actually delivered to the City by the Authority in any calendar year which exceeds the 11&x1mum amount the Board hae allocated to the City tor the minimum annual take or pay charge established tor that calender year pursuant to the preceding aubpe.ragraph (e), aa1d City shall be obligated to pay the Authority an additional awa et such rate per 1000 gallon• ot veter received aa may be tixed trom year to year by the Board ot Directors. The payment of all s\UIU3 due the Authority hereunder for the seventh and eucceeding calendar year• shall be Mde 1n the same manner and subject to the same teru •• are aet forth in Section l(c) hereof relating to the payment• to be ude 1n the first 1ix tull calendar years after commencement ot service. (h) The Authority shall notify the City with reference to the annual revision of water ratea arrived at,•• aforesaid, prior to January 20th ot each attected calendar year and shall include therein auch other -11 - i f J 0 iaton111,1on •• it ablll COlllidier neceH8rf ot lppropriate to ·MYiN \be . , Ctt1 •• to the qu•nttt1 ot vatei to be •1loc•W to o\bet .....,_t Ol\1••• •n4 other u1er1, the •d.llua rate ot Sail, 4eliHrt ~ be prod.cted tot Hah •~ the llini .. pe,-at• to be recei~ed troa etob. I I (1) lbould tbe City t •tt' to •Ir• 1111 f1l the llobibl.1 or •--1 peyaent• vitbin the ttae berein •~citied ibtere1t ob web a110UDt 1tu111 accrue •t the rite ot ten (10) pereentl per •MUii traa the 41te wah. pa7Mttt 'bec0119il due until ptii4 ib tull witb intere1il •• herein 1pecltied, In tlM event •uob peyaeat ..:., not •4• vithin 1ixtt (60) 4aJ• fro• tbe c11·t,e 1uch pa;y111111t beccae• du•> the .Autborit1 •1, •t it• optioo, cttH011Uaue. 4•UHr7 ot veter to the City until tbe aac,unt 4u• tbe Au\bol'ltt i • S-14 la tult ~itb intereat •• bereia 1,eoltied. Buob 4:1.eoontinuaoc• •hall bOt. NU.••• tbe City of it• obl.icetiou \o •k• tbe' paJaD\ nqulnd ~ tbi• leat:t.on 1 and by Section 2. BICTICII I 1 8'IAIDIJ CJIARQII. Upon tho N 1• and te U Ylrj l>7 tbe • I . Author1t7 ot tbe tir1, 'fVO llilU9a (ta,000,000) Dol~r• principal amaiat of itl propo•ect •14,800,000 le'fnU• Iona• MN1Dllboff reterrecl to •Dd •• • part ot tbe aou114erat1oD tor the Autbor1tT 11 •pte-Dt to conatl"\lot tu ' ProJ•ct, an4 vith t'bllt •cco.pl11bed, to Nll nter to tbe C1tie1 in tbe quant1tle1 •ad at the r1t.e• berein •pecitled, tbe Oit7 •ball becOM obligated. to pay tbe Autborit7 • teodby cbarp, paya'ble at the r•t• ot • 11,850.56 per 110ntb tor 11.Jtty (60~ 110ntba, tbe first aontbl.1 obarp to 'beeoae due ancl . payable on the tenth (tbtb) 4•7· ot the aoath naxt •u.ooee41ng tbe e•le of ' ••1d $2,000,000 ot bond• b7 the Autbor1t7. purpoeee: I The proceed• ·ot 1ucb bond• •l"e to be uplo;yed tor the tollov1D& a. Conduct tie 14 aurTe)'• •Dd independent aeoloc1c• l inveat1getione, 1oclu4ing neceeaal"7 toua4•t10D explor- ation and boring•, to tine 111 detend.ae tbe 4etaU.a of conetruation ot ·the 4-1 'b. Detend.ne the oeaeaaary relocation~ road• •n4 other tacilities; \ ' -l2 _H_..., _ __... 0 c. BeeUN optiou on land., ... _nte u4 rltll\-ot-n,ej 4. Dedgn an4 dnY oom.raoi plan. abll e,eelflcatlvu tor tbe duJ •· Delip ancl 4rav contraa\ pl.an• and. 1pectticattom tor trau•iH ion •ret•J t. I>elisn and drav contract plans and epeotftcatt.ou tor puaptns •tationa, an4 treat.en, plant. S• Such other co•t• •• •1 be required to a11Yanoe the Pro-,.Ot , to tbe po1ut ot lettina conatruction contract•• ; *::+UP • .tlk4" 'l'be 110ney derived. tram tbe •tan4b1 obar-• aa4e cl\U'in& aucb pe1"1oel •ball, to the extent required 'by •01 reaolutiona or indenture• ot tbe Authority-under vhiab. it• revenue ,upported 'bond• •:r 'be 1Hue4, be Jl.ed.pcl and uaed·excluaive~ tor the pa;yment ot principal ot and 1nten•t OIi aaicl $2,000,000 ot bond• t1rat 1e•ue4 and •old. It i• t\lrtber proY14e4, hovenr, that an1 payments due a• atandby charge• uader thia Section 1ball c•H at such time•• the City •ball begin -.king the pa;yment• preecribed UDder tbe proviaiona ot Section lot thi• contract. ' SECTIOll' 3: POIJIT OF DELIVXRY. Tbe point or point1 ot 4el1Yery ot ' vater to tbe City trom the Authority•• •7s'\.e• 1ball be tho•e to be 1Ntuall7 I agreeable to the Cit)' and the A.uthorit;y. The City-agree• to co111truct, •in- tain and operate at it• ovn co1t and expen•e at eucb deliver1 point or point• all equipment and racilitiee neceeaary to receive and take euch vater tr011 the Authority's lines. SECTION 4: WATER MEASUREMEJfT. (a) Water aball be aetere4 at the point or points ot delivery. The Authority aball tu.rniab, iruit&ll, operate and •1ntain at it• owu expenae at •aid delivery point a ••t•r meter ot standard type tor meaeurill8 proporl.J tbe_quantitJ ot water 4el1Ye"4 under tbis agreement. The City -.y, at it• option and ex.pen.a•, inatall, operate and JDa.1nta1o at ea1d delivery points, a cbeck Mter or •t•r• !'t sta.ndard type. Tbe City aball have ace••• to all eucti aeterinc equipaeut at all reasonable ti.me•, but the reading calibration and a4Juataent ot tbe Authcrtty's master meter or meter• aball be dona only by ea.ploy••• or agents ot the Authority. The Authority 1ball keep a true record ot all -13 - -· •t•r_ n141n,• •• tr•n•crlW tl'GII \be report• ot tM Au\boi'tt1'1 nployeel or •Ifft• vttb n•pect thereto, Upon t .be vrittea requ••t ot th• Cit7 the Autborlt7 vtll Ii" it aucla lntota11Uon •• lt •1 ""1••t trca lt• Journal• or reoort book• OJ' pendt tbe Cit, to bll•• lcff•• to tbe HM in tbe ottieo or ta Authority 4urin, ~•i••• bout•• (b) !be Authority •ball o•Ubreta it• •tertns eq_uipaeot 11 often•• it con11cter1 nec••NrJ encl •t web tiae• •• tbe Cit)' MY •hov reeaonable evidence ·ot error. It upon 1111 te•t, the percent•p of •nr ~oaccur1e1 theffOt 11 toun4 to be in exceH ot ~, re1btr1tion tbereot •b•ll be corrected tor• period extencl1n« beck to the tiM vben •ucb tneccu• r1c7 bepn, it •uob tiM ii 11certaina'ble, and it not, then tor• period c1libr1tton, but in no ••ent turtber back tblln • peri~ ot •ix aonth1. In th• •••nt tbe Cit7 baa provided no cb•ck •ter vi~b reference thereto 0 •ad it tor •DY reaaon any ••t•r •ter 11 out at •erYice or out at repair ao that the eaount ot water 4el1vere4 cannot be 11certained or ccaputed from the readinc thereof, tb• vatar deliYered durins the period web ac,ter 11 out ot .. rv1ce or out ot repeir •ball bo agreed upon 'by tho partie• tb•r•to, by correcting the error 1t the percentas• or the error 1• aecert.1nable by aelibration te•t• or •thealt1c•l calculation,, or by I eet1Mt1ag the quantity of 4•li•ery by tbe 4el1yer1ea Mde during preceding . period• under •1.ailar condition• vllea the •ter ve• r•11•t•ring accur•~7• 9CTION 51 UJfI'T a, MEASllUIND'?. 'fb• unit ot •••urement tor water delivered hereunder •h•ll 'be l,000 pllon• ot vater, u. B. atandard liquid meaaure. SIC?IOI 6t QUALITY <:I WATER. 'l'be Autbority 1• obliaate4 to treat tbe veter to 'be delivered by tbe .Authority to th• Clty UQder tbi1 egreeaent ao a1 to Met the pul'ity •taDd•rd• ot the State Health Depart- •nt ot the State ot Tena. 8~1011 7: LIABIUTr lat ~ cos-r. It 1• under•tood that the City aball never be nor 'becc:ae directly liable tor any part ot tbe coat and expen•e ot coutru.ctiaa tbe ProJect nor tor the operation, repair -1i. - 0 or •iatenance tbereot: it being tbe intention ol bot.h partle1 ·llerU o~ 1lillat all •ucb coeta or expenH •ball be tbe 101• obl1pt1on of tile Au~,-. At t.be .... tiM, llow-,,r, tbb u'Dllerat&Dllin, 1111.ll not. N ollDI\Nilll t.o ltalt 1D •111 -.naer tbe All\llorit711 \Ute ot t.ba proaffd• of ,1111 oo9'1'M\ inclwUna tbelt \11e in pafinc obU.ptiom inc\&J"NCI b1 it tort.be oou~NO• tion. and •int.nano• ot tbe ProJect vhetber 1vict1n.oecl 'b)' boD4• or othervi••• IICTlOI 81 AU'l'll(llffl '1'0 IUIDITI. '!'lie Autbori t7 •en•• to pro• oeect prcapti, an4 to tbe beat of it• abilit7 vitll tbe ·eoutl'\&OtiOll of "• taciU111•• neceaMry tor tbe pertonanoe ot tta ·oblipttou beN\Ullder aad to obtain all contract• oeceHary to timnoe tbe conatnaot.1011 of •uoll tac111tiH. It la understood tb&t a, thi1 t.iM tbe Autbor1t1 i • DO\ ia a ·poaition to paraotff tb• undertaking ot tbe con•tructicm ot ~-taoiUtl•• or tbe date upon vbloh it vill be able to 1111U tbe fit1t 4el1"17 ot vaMr to tba Cit:,. 'tbe A.utborit7, boveHr., 1a llllking 41lip11t ettort tovanl attaining approval ot tbe contract• neo•••l'1 tor financing tbe Pro.jfft aa4 to ban it• tac111ti•• coapleted. ,o •• to tumt1h vater to tbe Oit7 at tbe berein 4eeignated point or point• ot tbe 4eUYery approxiatelT "8 aont.b.l after t;be Nle ot •ucb uount ot tbe •12,eoo,000 balance ot tbe Autbortt111 autborbed bonu ••-, be neceeaa17 tor coutruotiOll ot U.• water •UiPPl.J &DIS ~letri~ution taoilitie1, (herein called -coutructton Joe4a-), (.7~,8oo,OOO Yoted aut.borilation le•• .2,000,000 tint teaue above •a1.ioee4.) 'I'M Autbor1t1 all not be liable to tbe Cit1 tor •DY' daal&e• ocoae1om4 b7 any clelay-tu tbe c 1 •,nc ... nt ot •uch ••"toe to tbe City. After vater 11 tint teDAeNCl tor ~•liver)' to tbe Ctt7 at tbe pol.at or point• ot 4eliftl'J, aad. 1ubJect to tbe otber term •ad aOD41t1ou ot tbil •&rMMnt, tnol.1141111 Seotione ll aad l~ tbenot, tbe Autllor1t7 •ball continualq hold it.HU rnd.J, villinc and al>la t,o •uppl.J vater to tbe Cit7 t,o tbe extent o~ tbe ' aui•UII UIOWlt and tor tba tiae berein contracted. -15 - ~-· ., \) SICTIOI 9J TI'l'LI TO VATlll. title to alt v•ter •upi,Ue4 llllll•r tbi1 -.rNMnt •hill r .. ia in th• Autbor1t7 to the point or point., ot d•U•er1, and upoa pe••il'II thrOUgh tba Author1t1•• .. ter in•t.1194 •t the point or potnt• ot ct• U HrJ, t.1 t le to the vat.I' 1ba 11 paH to the 01 t.7. Bach ncb pert1 hereto •&l"ff• to NYe and bol4 tbe otbar party baral.e11 tro11' •ll cl•iM, ct ... n.i, 1tld a•u••• ot action vhiah •1 be •••erted 'bf an,c,ne on account ot tbe tran-,or~tion> 4eU.ver1 •n4 41apc,Hl ot Hid water white title re111in1 in •uoh pert7. IIOTIOI 101 WINIIII. '!be Authorit)' •ball 111,. •n HNMDt over en, HH111ent1, riabt..of-wa7 or J'l'Opel'tJ held bJ the ott1 tor th• parpoN ct •Irina connection• to tile point or point• ot •• u ...... , and tbe placinc ot • nec•••rJ equip111nt to 0arr1 out tbe Autbortt1•• obliaation tor the •l• and ctt•tributioa at vater to tbe OitJ. ProJect ahall not be reprdecJ ·•• coapleted until the Autborit11• in• po•ition to tender all Citi•• (vhicb are --•r• at tbe Autbol'ity at the ti• tbe tir•t t2,000,000 revenue .uppo•W 'bond• referred to in Section 2 • bereot are ie•ued) the aaount• ot veter'° wblch tbeJ are entitled tor th• • • llioiawl peyaent• end until •uch tille tbe Autbori ty •1 'but aba l l not be obligated to 4•li•er water to •111 v tiwl.ar aeaber city •• indic•ted in Section l heNOt. At •U ti•• attl the Alltbority b•• coaaenc~ •ervice to any Nnlber CitJ it •hall con•cientio. t, endeavor to •tntain • po•itioa vbtcb will pend.t it to -cootilNOll•ly •usi.1.1 ,ater •• hereto contracted but it• obU .. pttoa to 4~ 110 Iba ll be 11111 ted to t.l uount Vbiob cen be Mde ·••11.ab le to tbe c1t1 bf the condition ot 1\• w, 1r auwll' •net 41•trtbution tacilitle1 at tbe tiM. Should it becoae neceeH , at •111 tiM tbat the Authority deliver le•• veter tbau tbat contract, tor bJ the 01,1 tor •nt re•aon, includina thoH aet tortb in Section l , bereot, •Dd tor an, period ot tiM, tbe CitJ •ball be entitled to receive aucb •aounta •• can be •de •••il•ble to it clurtac •ucb period. In the event tbe Autborit1•• inability 1• clue to an 1n•uttic1ent veter auppl.y in it• reNrYoir, the City •b•ll be entitled -16 - . ~;},~; -.ii ____ _ . ' . -~,~ ~. £X$•~-"\ ,,.t3 ~... ~ . - to receive tbe prorata. •bare ot the water available durina the period ct 1carcity •• deterllined by the proportion vbich the total voluae or ·qu1ntity of water UNd by it troa tb• Autborit1 durinc the l••t calemlar Jeer in . vbicb rationing v11 not necee•ary bear, to tbe total Yoluae or the quantity ~ water u1ed b~ 111 Mutber Citi•• froa t~ Authority during aucb calendar 7e1r, Should tbe City in any year, and due to no fault ot it• ovn, fail to receive at lea•t the tull UIOUnt ot veter allocated to it for the aini11111 pa~nt• •• pre•cribed bf the Authority tor that year bec•u•e ot 1c1rcit1 or other cau1e1 and tb• re1ulting inability of the Authorit1 to 4el1ver •uch •-,uuta, the City 1b1ll b• entitled to• credit of twice th• ditt•~•nce be. twwn· the aaount ot veter contracted tor under the ainimua pa1119nt ind tbe aaount received, •uch credit to be applicable to the tirat 1ucceedit1119ar in vhicb rationing 11 not nec••••ry and to continue tbereattar until u1ed. Tbi• prov111on tor water credit •h•ll not affect the continuinc obliption ot the City to Mke the pr••cribed ainimm annual payaent1 required under the pro- vieion• ot Section l hereof and in order tor the CitJ to receive 1uch vater not previoualy delivered and tor vb1ch it shall be credited•• above •t•te4, it must take •uae •a additional water over and above that allowed it for the m1n1aaia pe)'llltnt pre•cribed tor the ;year in vbicb the credited veter 1• re- ceived by it. In auch event, no charge vill be •debt the Authority tor •ucb additional water until the City h•• exhau•ted 1ta credited 11110unt. The Authority will not be required to prorate •uch deliveries ot water•• aaybe •de before the Project 11 completed. (b} It 11 turtber agreed and underetood that any obligation on tho part ot the Authority to complete end operate the Project shall be con- ditioned further upon the following: (1) Tbe iesuance ot • perllit by the State Board of Water .Bngineere, giving the Authority the right to appropriate tbe quantity ot veter which •Y be •tored in the Authority•• dam end reservoir on the Canadian River; -17 - y ,. (2) The executtoa ot oon\raot1 Vitia otlMtr IIIMNt Citte1, or oth•rviN, vldob 111~1 procluo• re ... ue, w.tob, t• tM t1ud ... nt ot tu Autt1or.ur, wtu ,.m, \u tlnaeoi• ot tbe aou\ruo\lou •114 opentiton ot ''-ADUlort\r'• ww wppi, and H,1iributioa •1tMIIJ (3) 'lb• Hl• at UM Autborlt:, '• bon41 in an UOIUlt to 8H\ll'9 t~nel OODltntotiOD fil tbe Authorit711 wtet wp.;. Pl.¥ and diatrt'but1on q•MIIJ (') !be Autbor1 t7 • • •bi U t7 to obtain Ill waeo••--1 Mteri•l, labor and equts-at neoe••l'1 ttn 0011plnlon ot the Autbort ,1 • • veter eupplt and dt1tribu\i011 -,,tea. a...-ne11 12, Mmu <:I .crrr •a OILtaA!lOIIJJ IOI' N?AILI n TAUTIOI. (a) !be pa,-int• required to·" •4• l,J tbe Ctt1 unller the tenu ot Section l and a hereof •ball be cSue and ,a:,ablt •• tberein apec1tie4 111 •111 ao4 all •••a.ti and rep:rdle•• ot wbet.ber tllere lball 'oe, tor any r•••on, • 4ele:, in the coaplet1on ot ill or any part ot tM Jrojeat •n4 reprclleH of vbetber tbe Projeot 1ball ba•• bee'I vbolly or partiall)-1Se1tro1ed or d ... 894, and nprdleH of vbetber tbe Autborit1 aball ban t.n4ered •111 water to tbe Cit.JJ •Dd the a1t1 •bal.l •• tbe p11yaeat1 90 required to be •de under tbe tenu f1ll leotioo• l and 2 reprdleH ot •111 failure of the Autborit7 to pe~ol"II •111 of it,• obU .. tioa• under thi• contract. !be agr .... nta ot tbe Cit7 to MU tbe p11119nt• req\lired un4er tba teru ot S.ctiou: l •I.Ml 2 bereot are Hperate end independent covenaat• •nd the Cit7 •ball baYe DO rip~ ot • •tott, r•cOUJlMnt. or cowateralata. Tb• toreaoiac pro•1•1ou ot tbi1 paragHph aba ll not •PP11 ( l) to •D1 payaent• under lection l in N• •pect ot •01 perio4 clurtac vb1ch the City •ball oot be tendered •DJ. veter 'by tbe vroac:f'\ll attiraatt~• act ot tlut ·Autllortt1 (other tbft-.,.,.. ant• parauaat to the tbir4 Hn\eoce ot Section l (a); (2) t.o an, paJ- • ante l&Dder tba tbir4 aentence of 8ect1oo l (c) 111 reepect ot •DJ periocl dur1na vbiob the Al.ltborlt7 •ball retu .. to 00Dtl11\le oa11plet.ioa ot the -18 .. V 0 ProJect throuah 1t• wrongful •tt1r•tiv• •ct, or (3) to •UJ payaent, un4er Section 2 in r••pect ot any pel"iod d\tl'iag vbich the Authority throueb itl vroncful attirat1•• act •ball not either be oarryinc· out it• obUptiOD• under the HOOD4 paHFIPh ot Hid Bection 2 or tbllll aot bllH ooaplete4 web obl1pt1on• (except that •uch peymnt• wi4er Section 2 •ball be oon- t1aued in any •••nt •boul4 tbe Autbority deterlline not to 10 fonard witb tbll ProJect). ('b) Tbe Authority, •• bol4•r hereat, 1ball never have tbe ript to 4 .. nd pa,-nt ot thia obligation 0Ut ot an, fund• rei1ed or to be ra1Nd by taxation. Any obligation •e•Wlled or iapo•ed on tbe City by virtue ot thi1 contract 1ball never be conatrued to be a debt ot the City ot any kind a, to require it under the Conatitution and lava ot thi• State to lev1 and collect tax•• to d1acharge •ucb obligation, it beina •xpr•••lY under•tood by tbe parties hereto that the tund1 required tor all peyaent• due by t.bw City bereunder are to be collected troa the 1ouree• reterred to in tbe next •ucceediag Section 13 bereot. SF.c'l'IOH l.3: PRICIUTY r, AUTHailTl'S CBARGl8 -cm TO FIX AD.EQUATE RATIS. (a) The Cit)' repreeent1 and covenant. that all payment• to be •de by it hereunder •ball con•titute "operatins expen•e1" ot it• watervork• 1yetea •• authorized by Article 1109 (e) and•• defined by Article 1113 ot the Rev1eed Civil Statute• of Texaa, 1925 •• •-nded, and that such payaent• vill con1titute operating expenee• •• regar411 •01' and all revenue bood• ot the City vbich are aupported in whole or in part by a pledge ot the revenue• ot the City'• Vatervorka Sy•t•, with the e.ttect that the City'• obligation to •ke payment• troa it• water revenue• under th11 contract will have priority over ita obligation to •ke payment at the principal ot and interest on any eucb bond• vhich are or vill be •upported in vhole or in part by a pledge ot the City'• Watervork• Syatea revenue•• (b) The City further •sree• that it v111 e•tabl11h vitb it• ott1c1al depository bank a special trust fund account to be deaignated "CANADIAB RIVER Al.1l'B<JUTY COlf'l'RACT J'URl>" and that •• recei Yed the revenue a and income derived trom the operation ot ita vater •1•t•• v1ll be deposited in aaid special trust fund to tbe extent hereinafter 1tated -19 - \ _ _) r) nece•11ry to aeet vhen due pe,-ent• to be due the Al!tbority under 8ection1 land :2 b6reot. The amount to 'be Minteined at any time in aaid •~cial tru•t tund need not exceed 2/l2tba ot the miniam payment• due the Authority in the then current year, and by tbe end ot a117 current year 1uch •d41tional amount••• ere re~uired to pay tor 1urplu1 veter received under the provision• ot Section l (b) and l (g) bereot. Said Special Trust Fund 1bell be kept Bel)Arate and apart troa all other tudde or account, ot the City and aha11 be pladged, appropriated and u1ed exclu•ively tor the purpose ot making the 1f0reantioned payment• to the Authority. All a\llla ot 110ney depoaited in the Special Tru•t fund •h•ll be held ia tru•t tor the Authority•~ the beneficial intere1t t~erein 1hall be re1arded •• belongins to tbe Authority. 'the Citt further agree• to fix and collect •ucb retea •nd cbarae• tor water and 1ervice1 to be 1upplied by it1 V1tenork1 By1tea a1 vill, in contemplation ot any other tun4• legally available and r•a1oaably aeeured tor the purpooc, mke po1aibl• the proapt pe)'llllnt ot •11 expen1e1 ot: operatitl8 a'Od •intaining it• vatervork1 1y1tem including all peyment• oo~tracted hereuncJer and tbe prompt peyaent of the principal ot and interest on it• obligation• payable tr011 the revenues ot it• vetervork1 111tem. BICTIOI 14: FORCE MAJIURB. It for any re•son ot "Force MIJeure" either ot the pertie1 hereto 1bell be rendered unable vholly or in part to carry out its obligation• under thi• agreement, other than tbe obligation ot the City to make the payments required under the terae ot Section• land 2 bereot, then it such party •hall gi,e notice and rult particulara or euch reason in vriting to the ottler party within a re1•0nable tiae atter the oc• currence ot the event or cauae relied on, tbe obligation ot: the party giving euch notice, so tar •• it ie atf'ected by such '1Force MaJeure", ehall be aue- panded during the continuance ot the inability then claimed, but for no longer period, •nd any aucb party ehall endeavor to remove or overcome auch inability vith all reaeonable diapetch. The term "7orce NaJeure" •• eapl07ed herein, shall JDeane Acta ot God, atrikee, lockouts, or otber iodu•trial di1- turbance1, acts ot public enemy, orders or action• ot any kind ot the gov•rn- ment ot tbe United States or ot tbe S~ate c4 Tex.ea, or tny civil or llilitart authority, insurrection•, riots, ep14ea1ca, l1nd111dee, lightning, ••rtbquake, -20 - fir•~• burricane1, •toru, flood•, w••bout•, 4roucht•, arreet1, reetraint• ~ of gofttwut •DCS people, civil di1turbance1, explo•ione, breakage or 1cci- aent t.o 4au, •cb1nerJ, pipe line• or canal.a or other •tructur•• 01' 1111ebtnery partial or entire failure ot water 1upply •nd in•bilitJ on thlt part Qf •-- Autbority to deliver water hereunder, or of tbe Oit1 to receive vtefJ ,~ account of any other cauae not reaeonebly vitbia the control of, th• •J'r cla1111ng eucb inabi 11 ty. It 1• und•rl!~ood •nd agreed that th• Httl-.p\ f1Jf 1trik•• and -lockout• aball be entirely within the diecretion ot th• party hllrtng the d1ft1culty, and that the above requir ... nt that aay rorc• N•Jeur• 1b1ll be r ... dted vitb all re••oneble diapetch ,~ll 110t require th• eettl•• •nt of •trike• and lockout• by acceding to the d ... nd, at the oppo•1DC part7 or parti11 when 1ucb ••ttlement 11 untavorable to it in the Judpent ot the party bav1ag the d1f't1culty. Jfo a ... ,. •hall be recoverable froa tbe Autliority by ree1on ot the euapeu•ion of deliver1 of veter du• to•~ ot the (=:) cauee• above •ntioned and oo failure of th• Authority to .. t aay ol»l11•tion by r•••on ot Force MaJeure •ball relieve the City troa it• oblig1tio01 to •k• the payment• required under the terma ot Section• land 2 hereof. SIC'l'Iotf 15: AI4'DATIOMB AND BBPAIJIS.. It ii exprenl.y recognir.ed by the City that the Authority may be coapelled to •ke nece11ary alteration•, repair• and installations ot nev or additional puap1, ac>tor1,' valve,, pipe• or equipment trom time to time during the lite ot th11 contract, and any •uapenaion ot delivery to the Cit~ due to •ucb operation• •hall not be cau•e tor cleia of damage on the part ot the CitJ. It ie further provided, bovever, th•t 111 reasonable effort 1• to be Mde by the Authority to provide tbe Cit7 vith vater in accordance vitb thia contract. In eucb caae1 the .Autborit7 aball give the c1t1 ae much advance notice•• may be practicable ot the eus~ ) penaion ot delivery e.nd of the eatillllted duration thereof'. In tbe event tbe Authority•• dam, pumps or tranelll1sa1oo ayetem, or •DY ot tbea, or any other facility inetruaentel in the delivery of vater to the City be de1troyed o~ damaged ea the reeult of any cause whether by Force NaJeure or othervi•e, ao as to mke del1verie• ot veter requirement••• herein specU'ied 1.apoaaible, the Authority aball 1.-ediately and at it• ovn expen•e proceed to restore ••id iaprove•nt• and tacilitiee. -21 - \...) 81!'.CTICll 16: IJIBUJWICI. The AuthoritJ &ll'ff• to carry in•t.arance tor the PW"J>O••• and in the aaountc vbicb VCMll4 ordinarilt be carried bt a pr1vate1r ovned utility coapa~ under contraot to pertora ••nice, 1illilar 1>C> tboee under• taken by the Authority 1n thi1 contrac\, tnol\ldin, buaiMH interruption 1oauranoe 011 tbe dam •tncture to tba extent reeeonabl.7 and econaaioall.1 obtatn11'bl.e. ltacb prov1a10n1 vtll be 10 de•isned •• vill attord protection to tbe Autboritt and to tbe bolder, of the Autborttr'• bond• b1 •••ving and tacllitating to the extent teaaible and. practicabl•J tu reatorati011 ot 4-ged or 4e,troyed propertie1 and to m1nia1&e the interruption ot 1ervice to the Cit7 and other, who •1 contract vith the Authority tor water. Jotvithat&ndiq any provia1on• ot Seationa l2 and 1~ hereof to the contra17, aey aaounta derived tl'<lll the proceeds ot ineuranoe not re• quired tor rHtorinc dallaged. tacilit1•• eb&ll be applied pro rat& in red.w:ing the . payment• to be due troa tbe Meaber Cit1ee and. otber• vho •1 contract witb tt. SECTIOII 17: C<ll'l'RA.CT 1'.IIUI. 'l'bb contract •ball oontitaue in force and ' ' ettect tor the period tbat any ot tbe Autborit1'• bond• vbioh are supported by it• revenue• are outetancU.ng and uapeid. '1'be Cit7, bo"8ver 1 1ball have tbe right to an extene1on ot the term ot tbi• contract be,ond aucb initial tena under 1uch arranse- ~enta •• then •Y be autually agreed U,i)Oll between tbe Autbority and the City. SECTIOff l8: K>DUICATIOX. 'l'hil contract •1 be cbanged or IIOditied only vitb the conaent ot tbe governing bodiea ot ~otb tbe Authority and tbe City. Such mod1t1cation •Y be reque1ted by either party, in vbicb event• Joint aeet1ng .., ot the governing bodie• or their duly authoriud and appointed repre•entative1 aball be held not leH than ninety da:y• atter the giving of aucb. notice. At auch Joint meettna tbe requeeted cbangee or 110d.1t1cat1cm• •hall be con1idered, diac1.1.1eed and aettled. Bo 1ucb change or aod1ticat1ou •Y be a.de vbich vill attect adver1ely the prompt pa)'INnt vben due ot all aone711 required to be peid by tbe City under tbe term of this contract and no eucb.cbange shall be ettectin vhiab vill attect advereely or cau•e a violation ot any ot t~e provi1ion• ot tbe reaoluttoo autbor1•• ins the 1uuance or t.be Authority'•· bonds or tbe indenture eecuring aucb bond•, and turther no such cbange aball be ettect1ve vbiob v1U atteot adver•ely tbe right• ot otbers vbo may contract vitb the Autbor1ty including particularly the cit.lea vhich are ae•bera ot tbe Autbortty. SEC'l'Iat 12,: R!JlUU.TORY COIIDITIOE. Thie contract shall be eub,Jeoct to all valid rules, regulattona and lav• applicable thereto, pa1aed or 0 0 \~ prcaalptecl \,J the United State• of Aaeric•, t.be lute ol t.n•1 or •a, IM•nMnta1 ~1 or •pne1 baadng 1~1 Jurl•cH.ctioe or •at euthortled repnNOte\i" or •aencr ot •rw ot thllll. IIC'l'XGI 201 MLl8 CII UU !ADI• ln \be ••~n, •111 n1•• or \IN ' ~••• or tan, of • ei11U.al' nature, •r• bel'Nft•t S..,ONd upon \be p\berilll, . I tlllibl, Nl•t UN or aonauaptlon ot ttw w1\er reoet,ect 'b7 tbe ct,, \IDller tbi• •sr--nt, tbe DOUfl\ ot IUab tan• •ball be borne bJ tbe Oit,, la a4dit1oa \o •ll otber obarp•, abc1 vbene••r \be Aaatlloritr •bell be r-.ulNd to JNl1, aolleot 01' rnd.t •ar IUOb t••· OD flt.I' reoeUed bf tbe Cit,, tar.ea tbe Cit, au 1 l prClllft 11 r•uaburN the .b~l 11 tllenfor • IIC'IIQI a1a I0'1'JOI!• Alt' notlo•• f1f OC111U11ieattoe1 proritect blrelat •ball be ·411.L,ered to the proper ,-n, lleft\o ot tt •iW, 111111 N •at by rel11tered •il, po•tap pnJ1114; ld4r•Hed to th• proper ,-rt7 •• it• -repl.•r plea• of bu•iHH• SIC!IOI 221 UV&UBil.lff. '!he ~rti•• bef•to agrff t.bet it all)' ot tbe provtaton• ot tbi• contract contra••n• ml be be14 innlt4 \lnd•r the lav• ot tbi• at.ate, •ucb •ball not. innUd•te tm vbo1• •P'H•rat but it •ball be conat:rued •• tboush not c~ntetninc that particular pron•ion •1114 I the ri1ht1 •DC! obU.ption• ot tbe parti•• 1ball be oon1true4 an4 e11f'orce4 accordinal.J• I · • S.ICTIOll 23t Plm>OI. It ia recogniaect that tb11 contract •1 be pledpd b7 the Autbority un4er an indenture purMlllnt to vhich tbe rev•-. ' 111,pported boDC11 prevtou•ly reterred to •1 be 111U•41 •nd the C1t7 bare'b1 I con~ntl to web pl.edge, boftffl', 1a tbh conaeett~on it i• \lnder1tooc1 that 1Uch indenture eball. cooteia no pronlion under which tbe AutborltJ •1 be diYelted ot title to tbe pb71ic•l propert1•• of the Pro.ject •1111 1uob pbJeloal propert1•• •ball not be encuabered b7 ·any 110rtp19 or r1&11t ot_ tor•~loaure. 'l'be City turtber agree•, vbicb acreunt •bill be tor the ben•tit of the bo ld•r• ot •111 •ucb 'boDd• and entorce•b le by tbe 'l'l'\l•tM under any muob indenture, tb•t •117 payaente 41.1e tbe Autborit7 under tb1• contnct •ball upon reque1t tree aucb 'l"l'u1tee be pa1cl wbeo due bereun4er to •uch Tru•t.M, an4 paYJD9nt in 1ccordance vitb thi• contract to ouch Tru•te• •bmll be a -23 - 0 full 41•cblrge ot the City tr011 •ll ot it• obliseticna under tb11 contract v1tb reapect to aucb peyaent. II VITKISS ~, tbe pertie1 hereto acting under authority ot tbeir re1pective governins bodiee blle cau1e4 thi• contract to be duly ex- ecuted 1n aever•l counterpart•, each o~ vbich •hall conatitute an original, all•• ot the day and ;year tir1t above vritten. CITY C, __ ;;:;;,LtJ_B_B_OC~I=-------' TUAI, (Ci\y SNl) -24 - • 0 n ' ' , l < I.,;;. [J D D D D 0 D D IJ !_J r r l-J : l CANADIAN RIVER MUNICIPAL WATER AUTHORITY FOR THE YEAR ENDED SEPTEMBER 30 • 1986 IJ D D D D IJ • D Auditors' Report CANADIAN RIVER MUNICIPAL WATER AUTHORITY GENERAL PURPOSE FINANCIAL STATEMENTS For the Year Ended September 30, 1986 TABLE OF CONTENTS Combined Balance Sheet -All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances -All Governmental Fund Types •.••• Statement of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual -General Fund . • , • • • , • • • • • • • • Notes to Financial Statements. Page 1 2 3 4 5 -, n LAWRENCE G. PICKENS, CPA HENRY E. DAVIS, CPA JOHN B. WELCH, CPA MICHAEL W. YOUNG, CPA ROBERT P: MCPHERSON. CPA RHONDA L. RUSSELL, CPA Board of Directors Da•HIER, PICKEN• & FRANCIS, P.C. CERTIFIED PUBLIC ACCOUNTANTS 901 S. Fillmore P.O. Box 9539 Amarillo, Texas 79105-9539 (806) 373-3011 December 1, 1986 Canadian River Municipal Water Authority Sanford, Texas ZED DOSHIER, CPA (Relimd) WILLIAM M. FRANCIS, CPA (Retired) DA\110 L. HARDGROVE, CPA LARRY C. CASEY, CPA TERAELLD.THRASHER,CPA We have examined the general purpose financial statements of the Canadian River Municipal Water Authority, as of and for the year ended September 30, 1986, as listed in the table of contents, Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the general purpose financial statements referred to above present fairly the financial position of the Canadian River Municipal Water Authority, at September 30, 1986, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, D D 0 D D lJ D D D L l [ COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS CANADIAN RIVER MUNICIPAL WATER AUTHORITY COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1986 GOVERNMENTAL FUND Demand deposits Temporary investments Receivables: Member cities Accrued interest Other Inventories Permanent plant ASSETS Amount available in Debt Service Fund Total Assets LIABILITIES AND FUND EQUITY Liabilities: Accounts payable: Trade creditors Member cities Fixed costs received in advance from member cities Accrued interest payable Other accrued expense Long-term debt -Note 3 Total Liabilities Fund Equity: Investment in general fixed assets Fund balances: Reserved for inventories Minor equipment replacement reserve Pumping and chemical reserve -Note 5 General reserve -Note 8 Dam and reservoir income reserve -Note 6 Unreserved: Designated for debt service Undesignated Total Fund Equity Total Liabilities and Fund Equity GENERAL $ 215,708 3,087,000 320,968 251,730 46,401 73,868 $ 3,995,675 $ 283,741 260,995 38,623 28,792 612,151 73,868 186,643 1,187,473 1,923,141 12,399 3,383,524 $ 3,995,675 DEBT SERVICE $ 14,391 3,270,487 72,839,497 $ 76,124.375 $ 1,952,211 1,952,211 74,172,164 74,172,164 $ 76,124,375 .1 l I . IJ IJ D IJ L TYPES ACCOUNT GROUPS TOTALS GENERAL (MEMORANDUM ONLY) CAPITAL GENERAL LONG-TERM PROJECTS FIXED ASSETS DEBT 1986 1985 $ 807 $ $ $ 230,906 $ 123,679 60,000 6,417,487 6,119,165 73,160,465 74,588,993 251,730 321,873 2,914 49,315 25,379 0 73,868 62,609 84,484,951 84,484,951 84;454,692 74,172,164 74,172,164 75,406,627 D $ 63. 721 $ 84,484.951 $ 74,172.164 $238,840.886 $241.103.017 D IJ $ $ $ $ 283,741 $ 414,178 260,995 153,613 D 38,623 47,268 1,952,211 1,984,702 28,792 52,855 74,172,164 74,172,164 75,406,627 • 74,172,164 76,736,526 78,059,243 D 84,484,951 84,484,951 84,454,692 D 73,868 62,609 186,643 153,031 1,187,473 1,029,359 1,923,141 1,859,379 63,721 63,721 65,477 74, l 72,164 75,406,627 12,399 12,600 63,721 84,484,951 162,104,360 163,043,774 $ 63,221 $ §4,484.9~1 $ 74,172.164 $238,840.886 $241,lOJ,017 The accompanying notes are an integral part of these financial statements. -2- CANADIAN RIVER MUNICIPAL WATER AUTHORITY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED SEPTEMBER 30, 1986 REVENUES Assessments to member cities Fixed costs Pumping and chemical costs -Note 5 Debt service interest assessment U.S.B.R. share of dam and reservoir costs -Note 7 Special work orders and miscellaneous collections Reimbursed non-operating expenses Interest on invested funds Land use fees -Note 6 Total Revenues EXPENDITURES Current Operating expenses Personnel costs Professional fees Purchased and contracted services Consumable supplies and materials Recurring operating expenses Pumping power and line chemicals -Note 5 Reimbursable non-operating expenses Debt service Principal retirement Interest expense Capital outlay Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers Pumping equipment repairs.paid from reserves -Note 5 Total Other Financing Sources (Uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCE -OCTOBER 1, 1985 INCREASE IN RESERVE FOR INVENTORY FUND BALANCE -SEPTEMBER 30, 1986 GOVERNMENTAL GENERAL $ 1.164,253 3,051.815 22,880 31,414 6,156 317,656 4,594,174 950,046 21,767 50,216 75,660 182,249 2,992,911 6,156 64,552 4,343,557 250,617 4,670 4,670 255,287 3,116,978 11,259 $ 3,383.524 I ! • J u [ l 17 I IJ • D I] I l l. j l] FUND TYPES TOTALS DEBT CAPITAL (MEMORANDUM ONLY) SERVICE PROJECTS 1986 1985 $ $ $ 1,164,253 $ 1,040,518 3,051,815 3,445,880 1,952,211 1,952,211 1,984,702 22,880 19,567 31,414 9,237 6,156 7,053 [ ~ 317,656 393,271 2,914 2,914 3 I 156 1,952,211 2,914 6,549,299 6,903,384 l L 950,046 871,911 21.767 11,688 50,216 25,223 ll 75,660 78,095 182,249 122,539 2,992,911 3,378,849 6,156 7,053 D 1,234,463 1,234,463 1,137,693 1,952,211 1,952,211 1,984,702 ~ 64,552 107,762 3,186,674 7,530,231 7,725,515 (1,234,463) 2,914 (980,932) (822,131) D {4,670) D (769) (4,670) (769) (1,234,463) (1,756) (980,932) (822,900) 75,406,627 65,477 78,589,082 79,407,468 11,259 4,514 $ 74I1721164 $ 63 1 721 $ 771619,409 $ 78.589,082 The accompanying notes are an integral part of these financial statements, -3- J D [ CANADIAN RIVER MUNICIPAL WATER AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 1986 GENERAL FUND REVENUES Assessments to member cities Fixed costs Pumping and chemical costs U.S.B.R. share of dam and reservoir costs Special work orders and miscellaneous collections Reimbursed non-operating expenses Interest on invested funds Total Revenues EXPENDITURES Current Operating expenses Personnel costs Professional fees Purchased and contracted services Consumable supplies and materials Recurring operating expenses Pumping power and line chemicals Reimbursable non-operating expenses Capital outlay -Note 9 Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES Transfers EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES FUND BALANCE -OCTOBER 1, 1985 INCREASE IN RESERVE FOR INVENTORIES FUND BALANCE -SEPTEMBER 30, 1986 BUDGET ACTUAL $ 1,221,150 3,877,632 17,275 s. 116,057 942,179 22,200 53,649 86,250 151,665 3,801,600 181,600 5,239,143 (123,086) (123,086) 3,116,978 $ 2.993,892 $ 1,164.253 3,051,815 22,880 31,414 6,156 317,656 4,594,174 950,046 21,767 50,216 75,660 1s2·,249 2,992,911 6,156 64,552 4,343,557 250,617 4,670 255,287 3,116,978 11,259 $ 3,383,524 The accompanying notes are an integral part of these financial statements. -4- [I 17 ~l f_ IJ I_ CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Canadian River Municipal Water Authority was created on May 27. 1953 by Article 8280-154 of the Texas legislature. Its purpose is to supply water to member cities. The accounting policies of the Canadian River Municipal Water Authority conform. to generally accepted accounting principles as applicable to governments. The following is a summary of these significant policies: A. FUND ACCOUNTING The accounts of the Authority are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The opera-tions of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, as appropriate. Resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The various governmental funds are grouped, in the financial statements in this report, into three generic fund types and one broad fund category as follows: GOVERNMENTAL FUNDS General Fund The General Fund is the general operating fund of the Authority. It is used to account for all financial resources except those required to be accounted for in another fund. Debt Service Fund The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Capital Projects Fund The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. The accompanying notes are an integral part of these financial statements. -5- f I D D l~. D l 1 l. i--0 CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued B. FIXED ASSETS AND LONG-TERM LIABILITIES The accounting and reporting treatment applied to the fixed assets and long-term liabilities associated with a fund are determined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow11 measure-ment focus. This means that only current assets and current li2.bilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources". Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. Long-term liabilities expected to be financed from governmental funds are accounted for in the General Long-Term Debt Account Group, not in the govern-mental funds. The two account groups are not 11funds11• They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. Non-current portions of long-term receivables are reported on their balance sheets, in spite of their spending measurement focus. Special reporting treat-ments are used to indicate, however, that they should not be considered "avail-able spendable resources", since they do not represent net current assets. Recognition of governmental fund type revenues represented by non-current receivables a.re deferred until they become current receivables. Non-current portions of long-term loans receivable are offset by fund balance reserve accounts. Special reporting treatments are also applied to governmental fund inventories to indicate that they do not represent "available spendable resources"• even though they are a component of net current assets. Such amounts are generally offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for govern-mental fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long-Term Debt Account Group. The accompanying notes are an integral part of these financial statements. -6- n ll D u [ u CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued C. BASIS OF ACCOUNTING D. E. F. Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditures are recognized when they are incurred. INVESTMENTS Investments are stated at cost or amortized cost, which approximates market. INVENTORY Inventory is valued at the lower of cost (first-in, first-out) or market. Inventory consists of expendable supplies held for later use. The cost is recorded as an expenditure at the time individual inventory items are purchased. Reported inventories are equally offset by a fund balance reserve which indi-cates that they do not constitute "available spendable resources" even though they are a component of net current assets. VACATION AND SICK LEAVE Employees are entitled to annual leave with pay of up to four weeks per year. Annual leave which is unused at the end of the year may be carried over, but the cumulative total carryover shall not exceed the employee's annual rate of leave accrual as of the current December 31. Upon separation in good standing, the employee shall be paid the amount of unused annual leave accrued to his credit as of the date of termination, not to exceed one month's salary. Sick leave accrues at approximately one day per month, up to a maximum of 90 days. On or about December 1, of each year, each current employee with one year or more of continuous service shall be paid for the amount of his unused sick leave, up to a maximum of forty ( 40) hours pay, reduced by sick leave taken during the preceding 12 months. An accrual for compensated absences has not been determined or recorded by the Authority. In no case could thl!re be any liability that would exceed a normal year's accumulation. The accompanying notes are an integral part of these financial statements. -7- LJ D C 0 D !] L l CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE l -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -Continued G. SCOPE OF THE REPORTING ENTITY H. The financial statements of Canadian River Municipal Water Authority would include those of separately administered organizations that are controlled by or dependent on the Authority. Control or dependence is determined on the basis of budget adoption, funding, designation of management and appointment of the respective governing authority. At present• there are no separately admini-stered organizations included in the accompanying financial statements, nor are there any oversight relationships existing. Transactions with other governmental entities consist of sales to member cities. TOTAL COLUMNS -OVERVIEW Total columns on the combined statements are captioned Memorandum only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. The accompanying notes are an integral part of these financial statements. -8- r ,_I 0 D D f l CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 2 -CHANGES IN GENERAL FIXED ASSETS A summary of changes in general fixed assets follows: Permanent plant at beginning of year Assets Added: Office equipment IBM Personal computer Star printer Computer modems Test equipment Wave analyzer Gauge tester Autos and light trucks 1986 Ford pickup 1986 Ford pickup 1986 4-wheel drive utility vehicle 1986 Ford pickup 1986 Ford Taurus station wagon Telephone system and equipment Econ-o-key phone system Other assets Wind turbine Assets Retired: Furniture Chairs Autos and light trucks 1979 Chevrolet C-10 1983 Chevrolet S-10 1981 Datsun pickup 1983 Chevrolet S-10 1984 Ford LTD station wagon Permanent plant at end of year $ 2,640 739 965 6,200 1,538 8,437 8,437 12,307 9,133 10,919 1,835 12,711 320 9,562 8,721 9,850 7,425 9,724 $ 84,454,692 75,861 (45,602) $ 84,484,951 The accompanying notes are an integral part of these financial statements. -9- 7 ___j D D D D [I D • CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 3 -CHANGES IN LONG-TERM DEBT The following is a summary of the Authority's long-term debt: Construction repayment obligation due to U. s. Bureau of Reclamation. Due in annual installments on October 1st, each year with interest at BALANCE AT BEGINNING OF YEAR 2.632% $ 75,406,627 CURRENT YEAR PAYMENTS PRINCIPAL INTEREST $ 1,234,463 $ 1. 984 I 702 BALANCE AT END OF YEAR $ 74,172,164 The above obligation is payable from the proceeds of the members' payments of their individual construction service obligations dated January 9, 1961, Payments of the obligations are due in annual installments on September 1, each year with interest at 2.632%. The principal balances of the members' obligations as of September 30, 1986 were as follows: City of Amarillo $ 21.627 ,293 City of Borger 3,978,689 City of Brownfield 2,744,488 City of Lamesa 2,911,055 City of Levelland 3,408,301 City of Lubbock 28,967,914 City of O'Donnell 321,041 City of Pampa 4,711,513 City of Plainview 2,182,853 City of Slaton 1,525,771 City of Tahoka 460.579 Receivable from member cities -Debt Service Fund $ 72.839.497 As of September 30, 1986 all members had remitted principal and interest payments aggregating $1,332,667 and $1,952,211, respectively, for the 1986 debt service requirement. The accompanying notes are an integral part of these financial statements. -10- CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS t SEPTEMBER 30, 1986 NOTE 3 -CHANGES IN LONG-TERM DEBT (CONT'D) The annual requirements to amortize the Authority's long-term debt, including interest as of September 30, 1986 is as follows: -, DUE OCTOBER 1, PRINCIPAL INTEREST TOTAL ' 1986 $ 1,332,667 $ 1,952,211 $ 3,284,878 1987 1,433,285 1,917,136 3,350,421 I . 1988 1,518,694 1,879,412 3,398,106 1989 1,558,666 1,839,440 3,398,106 1990 1,599,690 1,798,416 3,398,106 l~ 1991 1,641,794 1,756,312 3,398,106 1992 1,685,006 1,713,100 3,398,106 1993 1,729,356 1,668,750 3,398,106 n 1994 1,774,872 1,623,234 3,398,106 1995 1,821,587 1,576,519 3,398,106 1996 1,869,531 1,528,575 3,398,106 r 1997 1,918,737 1,479,369 3,398,106 1998 1,969,238 1,428,868 3,398,106 1999 2,021,069 1,377,037 3,398,106 2000 2,074,263 1,323,843 3,398,106 D 2001 2,128,858 1,269,248 3,398,106 2002 2,184,889 1,213,217 3,398,106 2003 2,242,395 1,155,711 3,398,106 D 2004 2,301,415 1,096,691 3,398,106 2005 2,361,988 1,036,118 3,398,106 2006 2,424,156 973,950 3,398,106 2007 2,487,960 910,146 3,398,106 IJ 2008 2,553,443 844,663 3,398,106 2009 2,620,650 777,456 3,398.106 2010 2,689,625 708,481 3,398,106 fl 2011 2,760,416 637,690 3,398,106 2012 2,833,070 565,036 3,398,106 2013 2,907,637 490,469 3,398,106 ! 2014 2,984,166 413,940 3,398,106 2015 3,062,709 335,397 3,398,106 2016 3,143,319 254, 787 3,398,106 2017 3,226,052 172,054 3,398,106 [ 2018 3,310,961 87,144 3.398,105 Totals i 24:11721164 $ 37,804,420 !_1111276 I 584 The accompanying notes are an integral part of these financial statements. -11- I ! !. n [ D IJ D CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 4 -ASSESSMENTS TO MEMBER CITIES Member cities of the Authority are assessed each month for costs except pumping power and line chemicals on the basis of estimated costs to each of them, as budgeted for that fiscal year. The Authority maintains a cost system by which it allocates its actual costs to each member city. After the end of each fiscal year it issues additional assessments or credits to each city for the difference between actual costs it has allocated to each city and the estimated costs previously assessed, These year end adjustments are reflected in the attached statements. NOTE 5 -PUMPING AND CHEMICAL COSTS Costs of pumping power and line chemicals are assessed to the member cities each month on a direct cost basis, These costs are, therefore, segregated from other expenses of the Authority. In accordance with the Authority manual adopted by the Board of Directors at its meeting on October 12. 1977, pumping and chemical charges are increased by 2% from actual costs, This additional charge is placed into a reserve to be used for repairs and replacements to pumping equipment. NOTE 6 -DAM AND RESERVOIR INCOME RESERVE The Board of the Authority has directed that income received from leases. easements, grazing fees and such sources not related to operation of the water system be segre-gated to a 0Dam and Reservoir Income Fund11• This fund is to be used for capital projects. NOTE 7 -U.S.B.R. DAM AND RESERVOIR COSTS The U. S. Bureau of Reclamation allocated 16.4248% of the cost of the dam and reser-voir to flood control and to fish and wildlife purposes. The Bureau pays this proportion of expenses of maintaining the dam and reservoir each year. NOTE 8 -GENERAL RESERVE The general reserve includes $300,000 mandatory in connection with the debt obligation to them. the Panhandle Bank and Trust in Borger. Texas in as in satisfaction of this requirement, reserve which the U.S.B.R. requires A time certificate of deposit from the amount of $300,000 is identified The accompanying notes are an integral part of these financial statements. -12- L l D D D D D D D f 1 I ,_. u CANADIAN RIVER MUNICIPAL WATER AUTHORITY NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1986 NOTE 9 -CAPITAL OUTLAY BUDGET The amount expended for capital outlay does not include $71,000 budgeted for the Minor Equipment Replacement Reserve included in Fund Equity. NOTE 10 -RETIREMENT PLAN The Authority has established a money purchase annuity pension plan for its employees, which is administered by Great-West Life Assurance Company. The Authority contributes five percent of eligible employee earnings. Eligible employees must contribute a minimum of 3% and may contribute up to 10% of their earnings. The total cost to the Authority for the years ended September 30, 1986 and 1985 was $41,137 and $34,287, respectively. The accompanying notes are an integral part of these financial statements. -13- DOSHIER, PICKENS & FRANCIS, P.C. LAWREHCE G. PICKENS, CPA HENA'I' E. DAVIS, CPA JOHN B. WELCH, CPA MICHAEL W. 'l'OUNG, CPA ROBERTP.MCPHERSON,CPA AHONDA L A\JSSEU., CPA Board of Directors Canadian River Municipal Water Authority Box 99 Sanford, Texas CERTIFIED PUBLIC ACCOUNTANTS 901 S. Fillmore P.O. Box 9539 Amarillo, Texas 79105-9539 (806)373-3011 December 2, 1986 ZED DOSHIER. CPA (Re11red) WILLIAM M. FRANCIS, CPA (Re1ifed) DAVID L HARDGROVE, CPA LARRY C. CASE'l',CPA TERREU. 0. THRASHER, CPA KENDAU. H. HELFENBEIN, CPA This letter presents our comments regarding internal accounting control based on the work we performed while auditing the financial statements of Canadian River Municipal Water Authority for the year ended September 30. 1986. We performed a minimum study and evaluation of internal accounting control solely to assist us in planning and performing our audit. Accordingly we do not express an opinion on the system of intern.el accounting control taken as a whole. Our study and evaluation disclosed no conditions that we believe to be material weak-nesses. We have no recommendations for changes or improvements in the records and accounts of the system. Also, we noted no instances of non-compliance with applicable legislation or statutes governing the Authority. This report is intended solely for the use of management and should not be used for any other purpose. DOSHIER, PICKENS & FRANCIS, P.C. .. DaBHIEA. P1cKENB &. FRANCIS, P.C. LAWRENCE G. PICKENS, CPA HENRY E. DAVIS, CPA JOHN 8. WELCH, CPA MICHAEL W, YOUNG. CPA ROBERT P. MCPHERSON, CPA RHONDA L. RUSSELL. CPA Board of Directors CERTIFIED PUBLIC ACCOUNTANTS 901 S. Fillmore P.O. Box 9539 Amarillo, Texas 79105-9539 (806)373--3011 December 1, 1986 Canadian River Municipal Water Authority Box 99· Sanford, Texas 79078 ZED DOSHIER, CPA (flet1red) WILLIAM M. FRANCIS, CPA (Ret11ed) DAVID L. HARDGROVE. CPA LARRY C. CASEY.CPA TERRELL D. THRASHER, CPA KENDALL H HELFENBEIN, CPA -AUDITORS' REPORT ON SUPPLEMENTAL FINANCIAL INFORMATION -Our report dated December l, 1986 on our examination of the general purpose finan-cial statements of Canadian River Municipal 'Water Authority for the year ended September 30, 1986 appears under separate cover. That examination was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental financial information is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the examin-ation of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole • CANADIAN RIVER MUNICIPAL WATER AUTHORITY CHANGES IN ALLOCATED RESERVES Year Ended September 30, 1986 ALLOCATION FOR MINOR EQUIPMENT REPLACEMENTS: Balance at beginning of year Allocated for replacements during the year Replacements during the year Balance at end of year PUMPING AND CHEMICAL RESERVE Balance at beginning of year Interest earned during the year Assessment of two percent of net pumping cost Late charges Balance at end of year GENERAL RESERVE Balance at beginning of year Interest earned during the year Late charges Amounts applied to G. O. M. expense Balance at end of year DAM AND RESERVOIR INCOME RESERVE Balance at beginning of year Land use fees credited by U.S.B.R. Wind turbine at pumping plant 9 Balance at end of year -1-$ 153,030.86 71,000.00 224,030.86 37,387.68 $ 186,§4,J.18 $1.029,358.46 98,260.30 59,839.51 15.17 $1,187.473,44 $1,859,378.84 219,377.48 3.17 2,078,759.49 155,618.00 $1. 923.141.49 $ 65,476.97 2,914.37 68,391.34 (4,669.87) $ 63. 721.47 CANADIAN RIVER MUNICIPAL WATER AUTHORITY TEMPORARY INVESTMENTS As of September 301 19~6 ACCRUED INTEREST TIME CERTIFICATES CERT. INTERES'.I MATURITY GENERAL DEBT CAPITAL AT OF DEPOSIT ~ RATE DATE OPERATING SERVICE PROJECTS 9/30/86 Panhandle Bank & Irust, Borger, TX 38711 8.13% 11/01/87 $ 100,000 s 100,000 s s $ 7,439 Panhandle Bank & Trust, Borger, TX 38713 B.13\ 11/01/87 537 ,ooo 537,000 39,950 Panhandle Bank & Trust, Borger, TX 38714 8.13% 11/01/87 300,000 300,000 22,319 Panhandle Bank & Trust, Borger, TX 38715 8.13\ 11/01/87 4.00,000 4-00,000 29,758 Panhandle Bank & Trust, Borger, TX 38716 8.13% 11/01/87 500,000 soo,ooo 37,198 Panhandle Bank & Trust, Borger, TX 38717 8.13\ 11/01/87 soo,ooo soo,ooo 37,198 Panhandle Bank & Trust, Borger, IX 38718 8.13% 11/01/87 500,000 500,000 37,198 Panhandle Bank & Trust, Borger, TX 38719 8.13% 11/01/87 200,000 200,000 14.,879 Panhandle Bank & Trust, Borger, TX 38720 8.13% 11/01/87 110,000 so,ooo 60,000 8,183 Amarillo National Bank, Amarillo, TX 73472 6.15% 10/30/86 100,000 100,000 556 Citizens Bank of Lubbock Co., Slaton, TX 6323 5.90\ 10/30/86 100,000 100,000 533 Citizens Bank of Lubbock Co., Slaton, TX 6324. 5.90\ 10/30/86 400,000 4-00,000 2,134 First National Bank, Lubbock, TX 71954 5.40\ 10/30/86 12,348 12,348 60 First National Bank, Lubbock, TX 71988 S.40\ 10/30/86 2,225,592 2,225,592 10,536 First National Bank, Lubbock, TX 72020 5.40% 10/30/86 432,547 432.547 11792 Total $6.4171487 ~3.087.000 $312701487 $ 601000 $249.733 -2- CANADIAN RIVER MUNICIPAL WATER AUTHORITY SUMMARY OF ACCOUNTS WITH MEMBER CITIES As of September 30, 1986 DUE FROM MEMBERS SEPTEMBER OTHER FINAL ADJUSTMENT PUMPING & PUMPING & PUMPING & CHEMICAL CHEMICAL CHEMICAL OTHER MEMBER COSTS COSTS COSTS COSTS TOTAL Amarillo $ 104,370.21 $ $ $ $ 104,370.21 Borger 5,536.70 5,536.70 Brownfield 7,657.43 7,657.43 Lamesa 5,885.52 603.24 6,488.76 Levelland 12,971.22 4,536.61 5,387.33 22,895.16 Lubbock 139,583.04 139,583.04 O'Donnell 496.93 496.93 Pampa 8,248.20 11,373.93 19,622.13 Plainview 9,408.83 9,408.83 Slaton 3,482.24 3,482.24 Tahoka 1,426.57 1,426.57 $ 222,066.82 i 1~1910.~4 i i s ,920.!P $ 320.268.00 DUE TO MEMBERS OTHER FINAL ADJUSTMENT PUMPING & PUMPING & CHEMICAL CHEMICAL OTHER MEMBER COSTS COSTS COSTS TOTAL Amarillo $ 1.323.24 $ 60,198.39 $ 3,341.76 $ 64,863.39 Borger 48.12 4,563.21 12,738.29 17,349.62 Brownfield 1,062.12 4,363.61 3,732.50 9,158.23 Lamesa 91.79 4,354.10 4,445.89 Levelland 9,430.03 9,430.03 Lubbock 1,773.72 93,747.33 31,281.67 126,802.72 O'Donnell 7.79 300.03 963.50 1,271.32 Pampa 30.71 7,023.18 2,443.66 9,497.55 Plainview 134.32 5,958.96 711.52 6,804.80 Slaton 47.83 2,526.36 5,642.85 8,217.04 Tahoka 16. 97 1,104.91 2,033.00 3,154.88 $ 4.536.61 $ 12J.~ZQ.ll $ 62.888.75 $ 260,925,47 -3-