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HomeMy WebLinkAboutResolution - 2435 - Management Agreement - Standefer & Gray Inc - Seweage Effluent, 470 Acres - 09/25/1986JCR: da RESOLUTION Resolution #2435 September 25, 1986 Agenda Item #29 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 Management Agreement by and between the City of Lubbock and Standefer & Gray, Inc., 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 25th day of September r 1986. B.C. McMINN, MAYOR ATTEST: Rane`Ue Boyd, City S4/croary APPROVED AS TO CONTENT: Sam Wahl, Director ok Water Utilities APPROVED AS TO FORM: C- �2= - - - �4 hn C. Ross, Jr.4Ctvy-A-tttorney Resolution #2435 MANAGEMENT AGREEMENT This Management Agreement (the "Agreement") is made and entered into this 25th day of September 19 S6 , ef- fective as of Se14-te iet .gyp , 19 26 , by and between the City of Lubbock, Texas, hereinafter referred to as City and Standefer & Gray, Inc., a Texas Corporation, hereinafter re- ferred to as Operator. WITNESSETH: WHEREAS, the City of Lubbock, Texas, a Home Rule City lo- cated in Lubbock, Texas, owns approximately 470 acres of land in Lubbock County, Texas, and is in the process (under con- tract of sale) of purchasing approximately 2929 acres together with irrigation systems and appurtenances and devices and per- sonal property in connection therewith (under contract of sale) being J. Frank Gray and wife, Imogene Gray, and Jack Driskill as Independent Executor of the Estate of Lily W. Gray, deceased, and Standefer and Gray, Inc., herein collec- tively called "Sellers"; and, WHEREAS, as sewage effluent is disposed upon said 470 acres and said 2929 acres of land as well as lands of others in connection with the operations; and, WHEREAS, City is desirous of securing the service of an Operator for said properties who is experienced in the opera- tion of a farming operation where the primary purpose of such farming operation is the lawful disposal of sewerage effluent from the City's Sewer System in the interest of public health, safety, and welfare of the citizens of the City of Lubbock in the exercise of the governmental function of City in the sani- tary sewer services for the citizens of the City; and, WHEREAS, the City has determined that Operator has the necessary experience and expertise necessary to operate the farming operation contemplated by the parties hereto; NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements herein set forth the parties hereto agree as follows: 1. Primary Goal. The primary goal of this agreement is to secure for the City the experience, expertise and services necessary to operate approximately 3399 acres of land, located in Lubbock County, Texas, and more fully described in Exhibit "A", attached hereto and made a part hereof for farming and agricultural purposes and to incorporate into such operation the lawful disposal of sewerage effluent (waste water) from the City all in the interest of the public health and welfare of the citizens of the City of Lubbock, Texas. 2. I.R.S. Operating Guidelines. It is agreed between the parties hereto that this contract is and shall be consis- tent with the requirements of Internal Revenue Service Revenue Procedure No. 82-14, applicable to facilities managed by a non exempt management company in connection with the purchase of approximately 2929 acres of land which will be operated in ac- cordance with the terms of this agreement. Furthermore, if -2- a -14 7 a from the City's Sewer System in the interest of public health, safety, and welfare of the citizens of the City of Lubbock in the exercise of the governmental function of City in the sani- tary sewer services for the citizens of the City; and, WHEREAS, the City has determined that Operator has the necessary experience and expertise necessary to operate the farming operation contemplated by the parties hereto; NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements herein set forth the parties hereto agree as follows: 1. Primary Goal. The primary goal of this agreement is to secure for the City the experience, expertise and services necessary to operate approximately 3399 acres of land, located in Lubbock County, Texas, and more fully described in Exhibit "A", attached hereto and made a part hereof for farming and agricultural purposes and to incorporate into such operation the lawful disposal of sewerage effluent (waste water) from the City all in the interest of the public health and welfare of the citizens of the City of Lubbock, Texas. 2. I.R.S. Operating Guidelines. It is agreed between the parties hereto that this contract is and shall be consis- tent with the requirements of Internal Revenue Service Revenue Procedure No. 82-14, applicable to facilities managed by a non exempt management company in connection with the purchase of approximately 2929 acres of land which will be operated in ac- cordance with the terms of this agreement. Furthermore, if -2- any new contract is negotiated, the new contract will be sub- ject to the same terms as those described above. 3. Retention of Services. City does hereby retain Op- erator to supervise, operate and manage the farming operation which is the subject of this contract and which shall here- inafter be referred to as farming operation, and Operator hereby accepts such retention and agrees to furnish and render such services as are hereinafter set forth. 4. Scope of Services. Operator agrees to perform and provide the following services to City: (a) Operator shall undertake the operation and man- agement of approximately 3399 acres of land, more fully described herein, for the purpose of placing said acreage in agriculture and farming use in such a manner as to incorporate into such use the lawful disposal of sewage effluent (waste water) pumped to said property from the City's water treatment plant. (b) Operator shall furnish all farming equipment set forth and described in Exhibit "B", at- tached hereto and made a part hereof, together with any and all substitutions and replacements thereof. However, any "Titled Vehicle" de- scribed in said exhibit, when said vehicles be- come unservable or inoperable, shall be re- -3- 4 { t T r x any new contract is negotiated, the new contract will be sub- ject to the same terms as those described above. 3. Retention of Services. City does hereby retain Op- erator to supervise, operate and manage the farming operation which is the subject of this contract and which shall here- inafter be referred to as farming operation, and Operator hereby accepts such retention and agrees to furnish and render such services as are hereinafter set forth. 4. Scope of Services. Operator agrees to perform and provide the following services to City: (a) Operator shall undertake the operation and man- agement of approximately 3399 acres of land, more fully described herein, for the purpose of placing said acreage in agriculture and farming use in such a manner as to incorporate into such use the lawful disposal of sewage effluent (waste water) pumped to said property from the City's water treatment plant. (b) Operator shall furnish all farming equipment set forth and described in Exhibit "B", at- tached hereto and made a part hereof, together with any and all substitutions and replacements thereof. However, any "Titled Vehicle" de- scribed in said exhibit, when said vehicles be- come unservable or inoperable, shall be re- -3- Y * � Y placed as set forth in paragraph 6, subsection 10 of this agreement. (c) Operator shall prepare a yearly plan for the farming operation which plan shall provide for the following: (1) a provision for waste water utilization and disposal for the year in question; (2) a program for the planting of crops stressing crops with the highest need for water use; (3) a proposed operation budget for the farm- ing operation for the year in question; (4) a projection of the estimated revenues to be obtained by the farming operation for the year in question; (5) a list of all improvements which operator feels may be necessary. Operator shall provide the plan for the farming operation to the City on or before September 1, 1986 and thereafter said plan shall be delivered to City by April 1, 1987 and April 1st of each year thereafter during the existence of this contract. The farming Operational Plan shall form the basis of the City budgeting process for this operation. The yearly farming operation plan shall not be placed into effect until approved by City and Operator agrees and un- -4- derstands that the City reserves the right to make changes or alterations to said plan consistent with its yearly budget. (d) Operator shall at all times during the exis- tence of this agreement operate the farm land in question in such a manner as to assure the lawful and proper disposal of sewage effluent (waste water) proposal to said lands from City's water treatment plant. In this respect Operator shall comply with the provisions of any and all permits granted to City by the Texas Water Commission authorizing disposal of the sewage effluent (waste water) upon the land described in Exhibit "A" of this contract and further Operator shall comply with any other law, rules or regulation of the State of Texas or the United States Government applicable to the operation. (e) Operator shall furnish all labor necessary to perform the farming operation contemplated by this agreement. Said personnel shall be the employees of operator and it shall comply with all regulations of the Federal Fair Labor Stan- dards Act with respect to minimum wages, over- time pay, and hours of work. Operator shall further comply with all regulations of the Fed- eral Social Security Act regarding the with- -5- holding of social security taxes and all regu- lations of the Internal Revenue Services re- garding Income Tax Withholding Regulations. (f) Operator shall furnish all seeds, fertilizers, herbicides, insecticides, plant material, and all other like or similar items necessary to carry out the farming operation herein contem- plated. (g) Operator shall limit the use of playa lakes and man made reservoirs existing upon the land de- scribed in Exhibit "A" as used in conjunction with said land, so that such facilities will be used for emergency storage of waste water or to capture surface run off water. Operator shall use his best efforts to dispose of all waste water pumped to the land in question on a daily basis so that the playa lakes and man made reservoirs shall be used as hereinabove set forth. (h) Operator shall control all weeds and noxious grasses along fence rows, turn rows, and other areas within the boundaries of the property de- scribed in Exhibit "A" being used for farming or agriculture purposes. (i) Operator shall maintain and keep in a good state of repair all fences located in, upon or -6- around the property described in Exhibit "A" attached hereto. (j) In relation to the flow lines, gate pipes, hy- drants, fitting irrigation motors, pumps and all sprinkler systems owned by City, and which form a part of the City's sewage disposal sys- tem Operator shall: (1) assist City in locating and mapping all of the above items; (2) take care in the farming operation con- ducted by Operator so as not to damage or injure such equipment above mentioned; (3) notify City as soon as possible of any re- pairs or maintenance needed to keep the above item in operational order; (4) in emergency situations only, when due to the circumstance City cannot make immedi- ate repairs to the above property, effec- tuate such temporary repairs or mainte- nance of the above item until City may make permanent repairs or undertake the maintenance required; (5) routine maintenance of the above item such as lubrication and the like shall be per- formed by Operator. -7- (k) Operator shall conduct its farming operation in such a manner so as not to injure or disturb dikes and berms located upon the property de- scribed in Exhibit "A" attached hereto and shall undertake any repairs or maintenance as may be required to said dikes or berms so as to present the escape of sewage effluent water onto unpermitted lands. (1) Operator shall maintain full and complete books of account covering all income and expenses in- curred as a result of the farming operation here undertaken by Operator. Operator shall make such books of account available to City at any time for review or audit by City or City External Auditors. In addition Operator shall keep such other records as may be requested by City and such other record shall likewise be available to City as above mentioned. (m) Operator shall during the farming operation here undertaken by Operator consult with and keep City fully advised of all farming opera- tions performed by Operator so that City will have a complete understanding of the current progress being made by Operator in fulfilling the requirement of any approved farming opera- tional plan. It is further understood that Op- -8- erator will consult with City on any changes or amendments to said plan. (n) Operator shall act as agent for the City in disposing of all harvested crops grown upon the land described in Exhibit "A", attached hereto and made a part hereof. In this respect Opera- tor shall follow the guidelines herein below set forth: (1) operator may offer such harvested crops for sale at the current market value for like crops offered for sale in Lubbock County, Texas; (2) operator shall attempt to secure offers on such harvested crops from more than one source where possible; (3) operator shall inform City of any offers secured for the sale of harvested crops prior to acceptance of such offers; (4) all sales shall be for cash or its equiva- lent and shall be payable to City; (5) city reserves the right to refuse all of- fers for the purchase of harvested crops; (6) operator shall faithfully account to the City for all monies secured by or coming into his hands as a result of the sale of harvested crops. W= r (o) Operator shall act as agent for the City to al- low the grazing of cattle upon the property de- scribed in Exhibit "A" attached hereto and made a part hereof and in this respect shall follow the following guidelines: (1) operator may authorize the grazing of cat- tle upon the property described above pro- vided the City secures the current market price for such grazing as exists in Lubbock County, Texas; (2) operator shall inform City of all such transaction prior to authorizing the graz- ing of cattle; (3) all compensation for such grazing of cat- tle shall be for cash or its equivalent and shall be payable to the City; (4) city reserves the right to disapprove any or all grazing of cattle upon the land above described; (5) operator shall faithfully account to the City for all monies secured by or coming into his hands as a result of grazing of cattle upon the land above described. (p) Operator shall conduct all farming operations upon the property described in Exhibit "A" at- tached hereto in a farmlike and workmanlike MM manner and shall devote its full attention to such farming operations and use its best ef- forts to operate the farm in a successful fi- nancial manner. (q) Operator shall comply with all rules or regula- tions of the U.S. Department of Agriculture or Federal law applicable to such agency that may be applied to the farming operation undertaken by Operator for City and Operator shall like- wise comply with all applicable law, rules or regulations of the Texas Department of Agricul- ture that may be applicable to the farming op- eration. 5. Term. The term of this agreement shall be for five years beginning on the ado-A! day of 1986, and ending on the -iA day of � 199'/ , un- less sooner terminated in accordance with the provisions for termination hereinafter set forth in this agreement. 6. Manaaement Fee and Expenses. In consideration of the covenants and agreements of Operator included herein and of the performance of Operator hereunder, City shall pay Oper- ator a management fee as follows: (a) During the first year that this agreement is in effect City shall pay a management fee of One Hundred Thirty Five Thousand Dollars -11- ($135,000.00), said fee to be paid to Operator in equal monthly installments. (b) During the second year that this agreement is in effect City shall pay a management fee of One Hundred Thirty Five Thousand Dollars ($135,000.00) to Operator, said fee to be paid in equal monthly installments. (c) During the third year that this agreement is in effect City shall pay a management fee of One Hundred Thirty Five Thousand Dollars ($135,000.00) to Operator, said fee to be paid in equal monthly installments. (d) During the fourth year that this Agreement is in effect City shall pay a management fee of One Hundred Thirty Five Thousand Dollars ($135,000.00) to Operator, said fee to be paid in equal monthly installments. (e) During the fifth year that this Agreement is in effect City shall pay a management fee of One Hundred Thirty Five Thousand Dollars ($135,000.00) to Operator, said fee to be paid in equal monthly installments. The management fee to be paid to Operator as hereinabove set forth shall be the sole compensation to be paid to Opera- tor for its services rendered under this agreement. In addi- tion to the management fee, City shall within ten (10) days of -12- receipt of invoice from Operator reimburse Operator for all reasonable and necessary expenses incurred by Operator in the farming operation when such expenses have been incurred in ac- cordance with the provisions of paragraph 4(c) of this agree- ment. Buy way of illustration and not by exclusion the fol- lowing are examples of such expenses: (1) Wages and fringe benefits of all employees whether temporary, part time or full time. (2) The cost of all fuels used in connection with the farming operation. (3) The cost of all utilities used in connection with the farming operation. (4) The cost of all herbicides, pesticides, fertil- izers and other chemicals used in connection with the farming operation. (5) The cost of all seeds or plant material used in the farming operation. (6) The cost of all insurance or bonds required by Operator under this agreement. (7) Routine maintenance expenses incurred in con- nection with the farming equipment or machinery used in the farming operation. (8) Major expenditures for maintenance of farming equipment or machinery, which for the purposes of this agreement shall mean repairs which will exceed Five Hundred Dollars ($500.00) in cost, -13- shall not be reimbursed to Operator unless Op- erator has first obtained approval for such re- pairs from City in advance. (9) No expenses of the manager, assigned to oversee the performance of this agreement by Operator shall be included in the reimbursable expenses hereinabove set forth save and except the cost of fuel, insurance, routine maintenance or ap- proved major maintenance incurred by said man- ager in connection with the vehicles used by said manager in the farming operation. (10) Rental or lease cost of securing any additional farm machinery deemed necessary for proper op- eration of the farm. Additional farm machinery shall be understood to be machinery not owned or in the possession of Operator on the date of execution of this agreement. (11) Any additional expenses necessary to comply with orders or rules of any State or Federal Regulatory Agency or Commission having juris- diction over the farming operation or other ac- tivities contemplated by this agreement. (12) All expenses incurred in maintaining fences or other permanent improvements. -14- (13) Only with specific approval first obtained from City expenses connected with any subcontractor deemed necessary by Operator. (14) Reasonable expenses connected with bookkeeping or accounting services incurred by Operator. (15) Other reasonable expenses incurred by Operator in discharging its obligation under this Agree- ment. 7. Termination. This agreement shall terminate and be of no further force or effect between the parties upon the happening of any one of the following events: (a) At the end of the second and fourth year of this agreement City has the right, without penalty, to cancel and terminate this agreement by notifying Operator of its intent to termi- nate thirty days prior to the end of the second or fourth year of this agreement. (b) If at any time during the term of this agree- ment there shall be filed by or against Opera- tor in any court a petition in bankruptcy, in- solvency, or for reorganization or for the ap- pointment of a receiver or trustee of all or a portion of the property of Operator and such petition is not discharged within thirty (30) days after the filing thereof then in such event this agreement shall terminate as above CMC said. However, in the event a petition is filed against Operator for involuntary bankruptcy and Operator advises City, in writ- ing, that he has good faith defenses to such action, then in such event this agreement shall not be deemed terminated until such time as an Order is entered adjudging Operator as a bankrupt. (c) If at any time during the term of this agree- ment Operator makes an assignment for the bene- fit of creditors or permits Operators equipment used in connection with this agreement to be taken under any writ of execution or attach- ment. (d) In the event City fails to pay to Operator the consideration herein set forth or perform any covenant agreed to be performed by City and such failure continues for a period of thirty (30) days after notice from Operator pointing out such failures. (e) In the event Operator fails to render any of the services herein agreed to be performed by Operator or fails to perform any covenant herein agreed to be performed by Operator and such failures continues for a period of thirty -16- (30) days after such failure has been pointed out to Operator by City. Upon termination of this agreement neither of the parties hereto shall have any further duty or obligation to the other hereunder except for the payment of any amounts due hereunder prior to termination and not yet paid, however, Operator shall have the duty upon termination to deliver to City all items of property purchased by Operator and reimbursed by City which are in Operator's possession but have not yet been incorpo- rated into the farming operation and to render a final ac- counting to City of Operator activities to date of termina- tion. 8. Assignment. Operator shall not assign this agree- ment to any other person, firm, corporation or association without the prior written consent of City. 9. Appointment of Manager. Operator shall during the term of this agreement appoint a manager of the farming opera- tion contemplated by this agreement and such appointment must be concurred in by City. City shall further have the right to request the removal of a manager appointed by Operator during the term of this agreement and such request shall be immedi- ately honored by Operator who shall upon such event appoint another manager in accordance with the above procedure. 10. Insurance. During the term of this agreement Opera- tor shall carry the following insurance coverages: -17- (a) General liability coverage with broad farm en- dorsement in the amount of five hundred thou- sand dollars per occurrence and five hundred thousand dollars aggregate. (b) Vehicle liability insurance covering all vehi- cles operated by Operator whether owned, non - owned or borrowed in the amount of five hundred thousand dollars combined single limit. The above policies of insurance shall be maintained dur- ing the term of this agreement, purchased from a company au- thorized to do business in Texas and shall name City as an ad- ditional insured. The policies shall further provide that they may not be canceled by the insurance company without first giving City ten (10) days notice of such fact. In addi- tion, Operator shall file with the City Secretary of the City Certificate of Insurance evidencing the above coverage. 11. Workers Compensation Insurance. Operator agrees during the term of this agreement to purchase and keep in force a policy of workers compensation insurance which policy provides insurance coverage in accordance with State law. 12. Governing Law. This agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas. 13. Benefit. This agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors or assigns. -18- 14. Notices. Any notice or communication by either party to the other shall be in writing and deemed to have been duly given if either delivered personally or mailed, postage prepaid, registered or certified mail, addressed as follows: Operator: Standefer & Gray, Inc. P.O. Box 711 Lubbock, Texas 79408 Attn: J. Frank Gray and McWhorter, Cobb & Johnson P.O. Box 2547 Lubbock, Texas 79408 Attn: Jack Driskill City: City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 Attn: Director of Water Utilities or to such other address, and to the attention of such other person or officer as either party may designate in writing by notice duly given. Any notice given under this section shall be effective if hand delivered, when delivered, and if mailed 24 hours after mailing. 15. Waiver/Breach. The waiver or breach of any term or condition of this agreement shall not be deemed to constitute the waiver or breach of the same or any other term or condi- tion. 16. Severability. In the event any provision of this agreement is held to be unenforceable for any reason, the un- enforceability thereof shall not affect the remainder of this -19- agreement which shall be in full force and effect and enforce- able in accordance with its terms. 17. Entire Agreement. This instrument constitutes the entire agreement between the parties with respect to the sub- ject matter hereof, and supersedes any and all other agree- ments, understandings, negotiations or representations oral or written, between them and no provision hereof shall be altered or amended unless in writing and executed by the parties hereto. 18. Heading. The headings contained herein are for con- venience of reference only and are not intended to define, limit or describe the scope or intents of any provision of this agreement. 19. Counterparts. This agreement may be executed in any number of counterparts, each of which shall be an original, and each of such counterparts shall together constitute but one and the same agreement. 20. Prevention of Performance. Operator shall not be liable for any loss or damage to City and shall not be in de- fault (including, without limitation, direct, indirect, inci- dental and consequential damages) due to any failure in its performance hereunder for any of the following: (a) Because of compliance with any order, request or control of any governmental authority or person purporting to act therefor, whether or -20- not said order, request or control ultimately proves to have been invalid. (b) When its performance is interrupted or pre- vented, or rendered impossible or unpractical because of wars, hostilities, public disorders, act of enemies, sabotage, strikes, lockouts, labor or employment difficulties, fires, weather, acts of God or any cause beyond its control whether or not similar to the fore- going. 21. Security of Farm Operation. Operator shall in addi- tion to all of the services to be rendered by Operator assign not less than three employees to reside in houses owned by City and located upon the property described in Exhibit "All for the purposes of providing security for the farming opera- tion and the facilities of City located upon such property. These employees shall use their best efforts to see that no one is allowed to hunt or fish upon the property described in Exhibit "A" and that no one, other than employees of Operator or employees of City is allowed upon such property without prior authorization by City, however, business visitor may be allowed upon the property when accompanied by an employee of Operator. 22. Bond. Operator being an independent contractor un- der this agreement shall furnish to the City a fidelity bond executed by the said Operator as principal and a bonding com- -21- pany authorized to do business in the State of Texas as secu- rity in the penal sum of $50,000.00 conditioned that the said operator, its servants and employees will well and truly ac- count for all money and property coming into their hands which are due to City under this agreement and timely turn over such money and property unto the City in a prompt and expeditious manner, and that all claims made against City for reimburse- ment for expenses, as authorized in this agreement, by said Operator shall be for expenses solely related to the transac- tion related to the carrying out the provisions of this agree- ment during the term hereof. 23. Contract of Sale. While it is necessary to refer to Sellers in this contract, they are not parties or signataries to this agreement, but the parties to this agreement are City and Operator; however, the making and execution of this Man- agement Agreement is a condition precedent in the contract of sale between City and Seller as set forth in paragraph VII subsection (j) of said Contract of Sale which was executed by City and Seller on the 9th day of June, 1986. 24. Understanding of Parties. It is hereby agreed as follows with respect to the farming operations under consider- ation herein: (a) City is to pay all expenses, losses, and is to reap all the profits of the above operation as herein set forth. -22- (b) The periodic fixed flat fee to be paid Operator by City does bear a reasonable relationship to the services to be performed by Operator. (c) That the Operator is an independent contractor under the terms of this agreement, and that the workmen, employees, and servants used by Opera- tor in performing services under this agreement are employees of the Operator and are to be paid by it. (d) That the farming operation to be undertaken by City, through this agreement, is a proprietary function of the City and is separate and apart from the operation of City sewage disposal sys- tem which is a governmental function of the City. (e) City shall control and be responsible for the major repairs for all flow lines, gated pipe, hydrants, fittings, irrigation motors, pumps and all sprinkler systems owned by City and lo- cated upon the property described in Exhibit "A", attached hereto, which property forms a part of its sewage disposal system and except as herein provided or agreed to in the plan for farming operations, Operator shall not control or maintain such property. -23- (f) Notwithstanding anything in this agreement to the contrary it is agreed and understood by the parties hereto that City may terminate this agreement at any time upon giving thirty (30) days written notice to Operator and such termi- nation shall be without penalty. (g) Notwithstanding anything in this agreement to the contrary it is agreed and understood by the parties hereto that City retains the continuing right to terminate this agreement at the expi- ration of each budget year that this agreement is in effect by giving notice of such fact to Operator and such termination shall be without penalty to City. (h) The City agrees to designate an officer or em- ployee of the City to be its representative for communications between Operator and City with said designation to be set forth in the plan for the farming operation as required by this agreement. Operator's manager shall be the representative for all communication to be re- ceived by or directed from Operator. (i) Operator may engage subcontractor to assist op- erator in the farming operation, but only when prior approval is obtained from City in advance of any such subcontractor being engaged. -24- (j) In the event that this Agreement is terminated in accordance with the provisions of subsection (f) or subsection (g) as set forth above in this section or in accord with the provisions of paragraph 7 of this Agreement, then in such event, the City shall have the option, which shall be exercised within fourteen (14) days of the date of termination, to buy all those items of farm equipment or machinery listed and set forth in Exhibit B, attached hereto and made a part hereof, which items have been designated to have a residual value at the expiration of this Agreement according to to its terms. The consideration to be paid to Operator from City for said farm equipment or machinery shall be in accordance with the depreciation schedule as set forth in Exhibit B above referred to and shall be paid in cash within ninety (90) days of termination. If at the time of such sale a particular item of equipment or machinery has been fully depreciated or, with the consent of the City, said item of equipment or machinery has been otherwise disposed of then in such event such item shall be deleted from the Con- tract of Sale. It is agreed to by the parties to this Agreement that the items of farm equip- -25- ment or machinery listed on Exhibit B are nec- essary to meet the fuctional requirements of the City of Lubbock in the farming operation, which is the subject matter of this Contract, which farming operation incorporates the dis- posal of City's sewage effluent waters upon said farm lands all for the preservation of the public health of the citizens of the City of Lubbock. It is further agreed by Operator, in the event City exercises its option to purchase as herein set forth, that it shall transfer to City clear title to all such farm equipment or machinery purchased by City in accordance with this subsection upon payment of the considera- tion as above set forth. (k) Operator agrees and understands that the City of Lubbock is a home rule municipal corporation operating under Article 11, Sec. 5, V.A.T.C. and that operator understands the laws of the State of Texas applicable to such home rule mu- nicipal corporation and the limitations placed upon such municipal corporation thereby. 25. Prior Crops. In the Contract of Sale between City and Sellers executed June 9, 1986, Sellers did state that they may plant a crop on the land owned by Sellers prior to closing of the abovementioned Contract of Sale. At the writing of -26- this agreement Sellers have not yet undertaken such activity and the parties hereto agree that if Seller does plant such crop prior to closing of the above Contract of Sale that City and Sellers will negotiate in good faith as to compensate Op- erator for cost and materials expended in connection with said crop. This Agreement is executed in duplicate originals on this the 25th day of September , 1986 and the effectual date shall be as herein set forth. CITY OF LUBBOCK BY: ZC4, &9..C. McMINN, MAYOR ATTEST: Ranet" Boyd City Secretary APPROVED AS'TO CONTENT: s ahl, D rector of Water Utilities APPROVED AS TO FORM: 14 G --/,) .+ a hn C. Ross, J3J. ity Attorney :xm STANDEFER & GRAY, INC. BY PRESIDENT — ATTEST: Secretary n� CRIPTION OF SEVENTEEiN TRACTS OF LAND NUMBERED TRACTS 1-17 6ii CLUSIVE) LOCATED IN LUBBOCK COUNTY, TEXAS AND DESCRIBED AS FOLLOWS: !' Tract No. 1 114.34 acres out of the west one-half of Survey 9, Block S, and 85.66 acres out of the East Half of Survey 10, Block S, Lubbock County, Texas, the 114.34 acres being the North part of a 200 acre tract out of the west one-half of Survey 9, Block S, fully described in a deed to v. V. Clark recorded in Vol. 234, page 171 of the Deed Records of Lubbock County, Texas, and the 85.66 acres being the N.E. part of a 572 acre tract out of Survey 10, Block S, fully described in the deed to V. V. Clark, said 200 acres partly in Survey 10, and partly in Survey 9, Block S is particularly described as follows: BEGINNING. at a point, the N.E. corner of Survey 10, Block S Which 'is also the N.W. corner of Survey 9, Block S. THENCE S. 89" 24' E. in the right-of-way of an East-West paved County Road, 670.00 varas to a point in the right -of- way, the N.E. corner of the 200 acre tract of land described in the deed to V. V. -Clark, and the N.E. corner of this tract. THENCE S. 0" 40' E., along the East line of said 200 acre tract, and along the fence line on this line, 39 feet south of the center line strip in the pavement is a 1/2 inch iron pipe at a fence corner, in all a distance of 963.41 varas to a 3/4 inch iron pipe in the fence line, and in the East line of said 200 acre tract, the S.E. corner of this tract. THENCE 27. 89° 24' W. 670.00 varas to a 3/4 inch iron pipe in the East line of Survey 10, which is also the west line of Survey 9,.Block S. THENCE N. 990 11' W. 511.2 varas to a 3/4 inch iron pipe, the S.W. corner of this tract. 'THENCE N. 0° 40' W. 906.41 varas to a point in the middle of the East-West paved road right-of-way, the N.W. corner of this tract, which is in the north line of Survey 10, Block S, and there is a 3/4 inch iron pipe in the west line of this tract at a fence corner 44.00 feet south of the center line stripe of the paved road. THENCE S. 89' 18' E., along the north line of Survey 10, Block S, 156.2 varas to a point, the Ell corner of Survey 10, Block S, and the Ell corner of this tract. THENCE N. 0° 40' W. 57 varas to a point, a corner of Survey 10, Block S, and a corner of this tract. THENCE S. 89" 18' E., along the most north line of Survey 10, Block S, a distance of 355.0 varas to the PLACE OF BEGINNING, and containing 200 acres of land, more or less. t� :Tact No. 2 153.93 acres out of Sections 9 and 10, Block S, G.C.6S.F. R. R. Co., Cert. 3/504, described as follows: BEGINNING at a 3/4" galvanized iron pipe in N -S fence, the SE corner of a 200 acre tract previously conveyed by deed from Dr. V. V. Clark and in the East line of Tract No. 1 as recorded in Volume 234, Page 171, of. tKe Lubbock County Deed Records, and being the NE corner of this survey; THENCE S 0 deg. 40 min. E 728 varas to a fence corner post, the SE corner of said Tract No. 1, and the SE corner of this survey; THENCE 11 89 deg. 24 min. W 670 varas to a point in the West line of Sec. 9, Block S, said point being 213 varas N 0 deg. 40 min. W of the SW corner of Sec. 9, the common corner of Sections 9 and 10 of Block S; THENCE 89 deg. 11 min. W 355 varas to a point, the Ell corner of Tract No. 3 as described by deed recorded on Page 171 of volume 234 of the Lubbock County Deed Records, an Ell corner of*this survey; THENCE S 0 deg. 40 min. E 57 varas to a point the Southerly Ell corner of said Tract No. 3, and being an Ell corner of this survey; THENCE N 89 deg. 11 min. W 156.2 varas to a 3/4" iron pipe set in E -W fence, in the South line of Tract No. 3 herein- above described, the SW corner of this survey; THENCE 11 0 deg. 40 min. W 784:9 varas to a 3/4" iron pipe,' ,the SW corner of above said 200 acre tract and the NW corner of this survey; THENCE S 89 deg. 11 min. E 511.2 varas to a 3/4" iron pipe in the West line of Section 9, Block S, a corner of this survey; THENCE S 89 deg. 24 min, E 670 varas to the PLACE OF BEGINNING. Both of the above Tracts 1-2 are SUBJECT TO that certain mineral interest reserved by the Grantor -in a Deed from Ceneral American Life Ins. Co- to Roy Hise, et ux, dated September 29, 1937, recorded in Vol. 217, Page 182, Deed Records, Lubbock County, Texas, and further SAVE AND EXCEPT that certain mineral interest reserved by the Grantors in a Deed from V. V. Clark, .et al to J. Frank Gray, et al, dated January 31, 1951, recorded in Vol. 432, Page 365, Deed Records of Lubbock County, Texas, and FURTHER SUBJECT TO that certain royalty interest reserved by Jimmie L. Standefer in a Deed from Jimmie L. Standefer and Dorothy Sue Clendenin to Wylie Hudman and Dewey Hukill dated July, 1966, and recorded in Vol. 1126, page 164, Deed Records of Lubbock County, Texas. -act No. 3 That certain tract or parcel of land BEGINNING in the center of East-West Park Road being Southeast corner of West one half Section 5, Block S, situated in Lubbock County, Texas; THENCE North 557 varas to stone set under fence the Northeast corner of Newman Boles Tract described in Vol. 338, page 95, Deed Records of said County; THENCE West 640 varas to point in North line of Newman Boles tract; THENCE South 152 varas along water line of lake to point; THENCE East 32 varas to point South of wet lake; THENCE South 398.4 varas to point in center line of Public Road; THENCE South 89' 23' East 612 varas to PLACE OF BEGINNING, being 60.78 acres, and being same land described in Vol. 583, page 586, Deed Records, said County, reference to which is made, and subject to reservations set out therein; Boles reserved one-half (1/2) of the oil, gas, and other minerals but expressly does not include caliche or ground water SUBJECT TO an undivided 1/32 royalty reserved by Jimmie L. Standefer as described in Deed recorded in Vola 583, page 586, Deed Records of Lubbock County, Texas. By warranty Deed in October, 1968, J. Frank Gray and Wylie Hudman acquired the remaining undivided one-half (1/2) interest in the minerals from Lura Barton Soles.. This one-half (1/2) interest is not subject to the 1/32 royalty of Standefer. 4 _ct orparcel of land out of the Southeast corner of Section 1, Block B, Lubbock County, Texas, BEGINNING at a point 3774 feet South of Northeast corner of said Section 1; THENCE West 1176 feet to point; THENCE South 1427 feet to point; THENCE East 1176 feet to point; THENCE North 1427 feet to point, containing 38.525 acres and being the same land described in Deed recorded in Vol. 448, page 488, Deed Records said County, being a conveyance from City of Lubbock to J. Frank Gray, et al, and subject to mineral reservations set out therein. SUBJECT TO an undivided one-half (1/2) interest in oil, gas, and other minerals reserved by the City of Lubbock in Warranty Deed recorded in Vol. 448, page 488, Deed Records of Lubbock County, Texas, and an undivided 1/32 royalty reserved by Jimmie L. Standefer as described in Deed recorded in Vol. 583, page 586; Deed Records of Lubbock County, Texas. Tract No. 5 All of Section 11, Block B, Lubbock County, Texas, SAVE AND EXCEPT (1) 38.525 acre tract conveyed to City of Lubbock described by metes and bounds in Deed recorded in Vol. 453, Page 228, Deed Records of said County; (2) 10.827 acre tract owned by Clyde H. Clark and described in Partition Deed recorded in Vol. 1122, Page 259, Deed Records of said County; and (3) 15.12 acre tract now owned by J. Frank Gray et ux, as shown by Warranty Deed recorded in Vol. 598, Page 661, Deed Records of Lubbock County, Texas. SUBJECT TO an undivided one-half (1/2) interest in the oil, gas, and other minerals reserved by J. L. Birdwell and wife, Cordie Birdwell, described in Warranty Deed recorded in Vol. 360, Page 247, Deed Records of Lubbock County, Texas, and SUBJECT TO an undivided 1/32 royalty reserved by Jimmie L. Standefer as described in Deed recorded in Vol. 583, Page 536, Deed Records of Lubbock County, Texas. . Tract No. 6 The South 150 acres of land out of the 299.1 acre tract of land located in Section 10, Block S, Lubbock County, Texas, which is described by metes and bounds as follows: BEGINNING at a point which bears North 89' 18' East a dis- tance of 1118.2 feet frthe Northwest corner of Section 10, Block S; THENCE South 00 45' 42" East along the West line of the Frank Gray tract, a distance of 4749.5 feet to the South- west corner of the Frank Gray tract; THENCE South 89" 18' West a distance of 2747 feet to a point, the Southwest corner of this tract; THENCE North 4749.5 feet to the PLACE OF BEGINNING. The tract herein described is the South 150 acres of 299 acre tract conveyed to Doyce M. Clark by instrument recorded in Vol. 846, page 335, Deed Records of said County. SUBJECT TO a 1/16 royalty reserved by Great American Life Insurance Company in Deed recorded in Vol. 217, page 181, Deed Records of Lubbock County, Texas. s a` Tract No. 7 A one acre tract or parcel of land lying and situated in Lubbock County, Texas, and being more particularly described as follows: BEGINNING at a point 1090.2 feet East and 20.0 feet South of the Northwest corner of Section 10, Block S for the beginning corner of this tract; • THENCE South 89 deg: 18 min. West 272.25 feet to the Northwest corner of this tract, a point marked with a 1/4" iron rod; THENCE South 0 deg. 40 min. East 160 feet to the Southwest corner of this tract, a point marked with a 1/4" iron rod; THENCE North 89 deg. 18 min. East 272.25 feet to the South- east corner of this tract, a point marked with a 1/4" iron rod; THENCE North 0 deg. 40 min. West 160 feet to the Northeast corner of this tract, a point marked with a 1/4" iron rod and being the PLACE OF BEGINNING. And also including all interest owned by the Estate of V. V. Clark to the said land to the North and East of the projection of the West line of the above described land to 50th Street•(F.M. Highway 835) and to the West of the projection of the East line of the above described land to 50th Street (F.M. Highway 835). SUBJECT TO any mineral conveyances or reservations of record, and any right of way deeds of record across said land. The tract herein described is the tract conveyed to Gray and Hudman by instrument recorded in Vol. 1172, page 514, Deed Records, Lubbock County, Texas. Tract No. 8 The Northwest quarter (NW/4) of Section Fourteen (14), Block I, Certificate 360, T. T. Ry. Co., Lubbock County, Texas. SUBJECT TO a 1/16 non-participating royalty interest reserved by American National Bank of Austin, Texas, Trustee, by instrument recorded in vol. 377, page 328, Deed Records of said County. Tract No. 9 55.634 acres of land, being 24.54 acres out of Sec. 5-1/2, Block S, Lubbock County, Texas, and 31.094 acres out of Sec. 5, Block S, Lubbock County, Texas. BEGINNING at a point 642.29 feet North of Southwest corner of Sec. 5-1/2, Block S, Lubbock County, Texas; THENCE North 875.77 feet to a point; THENCE East at 968.6 feet past the West line of Sec. 5, Block S, continuing for total distance of 1821.62 feet to a point; THENCE South 422.22 feet to a point; THENCE East 88.89 feet to a point; THENCE.South 0° 10' 44" East 1086.60 feet to a point; THENCE West 933.26 feet to a point being the Southwest corner of Sec. 5, Block S; THENCE North -00 51' West 361.85 feet to a point; THENCE South 890 26' West 719.6 feet to a point; THENCE North 280.44 feet to a point; THENCE South 890 26' West 261.1 feet to the PLACE OF BEGINNING. Containing 55.634 acres of land, more or less. LESS AND EXCEPT that certain tract conveyed to Raymond H. Furr by J. Frank Gray, et al, dated July, 1974, of record in the Deed Records of Lubbock County, Texas. Said tract measuring approximately 158 feet by 261.1 feet. Tract No. 10 The North 149.1 acres, more or less, of the following des- cribed land situated, lying and being in Lubbock County, Texas, to -wit: A 299.10 acre tract of land located in Section 10, Block S, Lubbock County, Texas, being described by metes and bounds as follows: BEGINNING at a point which bears North 89°18' East a dis- tance of 1,118.20 Feet from the Northwest corner of Section 10, Block S; THENCE North 89°18' East a distance of 2,739.00 Feet to the West line of a tract of land previously conveyed by V. V. Clark to Frank Gray; VW THENCE South 0045142" East along the West line of the Frank Gray Tract a distance of 4749.50 Feet to the Southwest corner of the Frank Gray Tract; THENCE South 89°18' West, a distance of 2747.00 Feet; THENCE North 0040' West, a distance of 4749.50 Feet to the PLACE OF BEGINNING. Tract No. 11 All that certain tract of land in Lubbock County, Texas, being described by metes and bounds as follows: 15.12 acres of land out of the South part of Section 11,, Block B, Indianola R.R. Co., Certificate 16/274, BEGINNING at a I" iron pipe set for the SE corner of this tract in North line of Farm Road No. 835, from which the SE corner of Section 11, Block B bears South 59 feet and East 2763.6 feet, THENCE N. 89057' W. 729 feet to a 1" iron pipe set in North line of Farm Road No. 835; THENCE N. 84012' W. 100.5 feet to a 1" iron pipe set in North line of Farm Road No. 835; THENCE N. 89°37' W. 938 feet to a 1" iron pipe set in North line of Farm Road No. 835; THENCE N. 0003' E. 364.8 feet to a 1" iron pipe set for the ` NW corner of this tract; THENCE S. 89057' E. 1767 feet to a 1" iron pipe set for the NE corner of this tract; _- THENCE S. 0003' W. 380 feet to the PLACE OF BEGINNING. r � Tract No. 12 All that certain tract and parcel of land situated in Lubbock County, Texas, described as follows, to -wit: The East One -Half (E/2) of Survey 14, Block I, Abstract 742, as shown by Plat prepared by Sylvan Sanders, Licensed Land Surveyor, Lubbock County, Texas, said property being more fully described in two deeds from American National Bank of Austin, Trustee, to A. L. Cone, both of said deeds being dated February 21, 1949, and one of said deeds recorded in Vol. 382, page 89, and one recorded in Vol, 382, page 92 of the Deed Records of Lubbock County, Texas. SUBJECT TO a reservation of the 1/16 non -participating royalty interest set out in two deeds dated February 21, 1949, recorded in Vol. 382, page 89, and Vol. 382, page 92, respectively, Deed Records of Lubbock County; and RESERVATION of an undivided 1/2 interest in all oil, gas and other minerals, with rights of ingress and egress for exploration thereof set out in deed from A. L. Cone and wife to James Lynn Jones dated February 19, 1970, such reservation being charged with 1/2 of such royalty reser- vation. c ..E f- F 4 Ct 1 _ A 633.683 acre tract of land out of Sections 9 and i 18, Block S. G. C. 6 S. F. R. R. Co. Survey, Lubbock County,. Texas, and being more particularly described as follows: BEGINNING at an iron rod setinthe South R.O.W. line of Farm Road 835 and the West line of Section 18 and the East line of Section 9, for the beginning corner of this tract. whence the Northeast corner of Section 9 and the Northwest _ corner of Section 18, Block S, bears North 0°40' West 40.6 feet; THENCE South 0° 40' East along the East line of Section 9 and the West line of Section 18, 200.2 feet to a 1" iron pipe.- THENCE ipe.THENCE North 89°19' East 408.7 feet to a 1" iron pipe,- THENCE ipe;THENCE North 00 40' West 201.27 feet to an iron rod set in the South R.O.W. line of Farm Road 835; THENCE North 890 10' East along the South R.O.W. line of Farm Road 835, 3745.77 feet to an iron rod set for the P.C. of a curve to the right; THENCE Southeasterly along a curve to the Right and the South R.O.W. line of Farm Road 835, whose Radius is 1106.28 feet a distance of 1743.85 feet to an iron rod set for the P.T. of said Curve; THENCE South 0° 31' East along the West R.O.W. line of Farm Road 835, 2681.88 feet to an iron rod set for the Southeast corner of this tract; THENCE North 81" 10' West 1671.0 feet to an iron rod; THENCE North 0° 40' West 1337.0 feet to an iron rod tHENCE North 870 39' West 1808.57 feet to an iron rod; THENCE South 82' 24' West 1816.07 feet to an iron rod set in the West line of Section 18 and the East line of Section 9; THENCE South 0° 40' East along the East line of Section 9 and the West -line of Section 18, at 1626.73 feet pass a found old Stone, continuing for a total distance of 1826.73 feet to a 1" iron pipe set at a fence corner; THENCE South 89' 25' 40" West along a meandering fence line 3410.2 feet to a 1" iron pipe set at a fence corner, for the Southwest corner of this tract; THENCE North 0° 45' West along a fence line 4160.8 feet to a found 1/2" iron pipe in the South R.O.W. line of Farm Road 835, for the Northwest corner of this tract: THENCE North 89° 53' East along the South R.O.W. line of Farm Road 835,.263.0 feet to a point; THENCE South 84' 24' 30" East along the Squth }t,O.W..line of Farm Road 835, 100.5 feet to a point; THENCE North 89° 53' East along the South R.O.W. line of Farm Road 835, 900.0 feet to a point; THENCE North 840 10' 30" along the South R.O.W. line of Farm Road 835, 100.5 feet to a'point; THENCE North 89° 53' East along the South R.O.W. line of Farm Road 835, 700.26 feet to a point; THENCE South 89° 25' East along the South R.O.W, line of Farm Road 835, 1353.3 feet to the place of BEGINNING; Containing 633.683 acres of land. ;API MACT 14 _ A tract of land out of Sections 1, 4, 9, 100 11;& 14, Block S, G. C. & S. F. R. R. Co. Survey, Lubbock County, Texas, and being more particularly described as follows: BEGINN, ING at a 1h" iron pipe set in the West line of Section 10 and the East line of Section 1 for the beginning corner of this tract, whence a found �" iron pipe and stone at the Southwest corner of Section 10 and the Southeast corner of Section 1 bears South 0° 40' East 433.33 feet; THENCE North 890 18' East 4291.66 feet to a 1" iron pipe set for a corner of this tract; THENCE North 0° 40' West 158.33 feet to a 1" iron pipe set for a corner of this tract; THENCE North 89° 18' East 986.11 feet to a.I" iron pipe set in the East line of Section 10 and in the West line of Section 9 for a corner of this tract; THENCE South 89° 24' East 1867.11 feet to a 1" iron pipe set for the Northeast corner of this tract; THENCE South 0° 45' East at 591.66 feet pass the South line of Section 9 and the North line of Section 14, contin- uing fora total distance of 1,002.76 feet to a 1" iron pipe set for the Southeast corner of this tract; THENCE North 89° 24' West 1868.56 feet to a 1" iron pipe set in the West line of Section 14 and the East line of Section 11, whence the Northwest corner of Section 14 and the Northeast corner of.Section 11 bears North 0° 40' West 411.1 feet; THENCE South 89° 18' West at 52.77.78 feet pass a 1" iron pipe set in the West line of Section 11 and the East line of Section 4, from this point the Northwest corner of Section 11 and the Northeast corner of Section 4 bears North 0° 40' West 411.1 feet; continuing for a total distance of 7479.28 feet to a 1" iron pipe set in the Northeast R.O.W.. line of the p. & S. F. R. R. Co. for the Southwest cdrner of this tract; THENCE North 39° 53' 30" Wcst along the p. & S. F. R. R. Co. R.O.W. 530.43 feet to a 1" iron pipe set for a corner of this tract; THENCE North 89° 18' East along the North line of Section 1 4 and the South line of Section 1, 450.8 feet to a 1" iron pipe set for a corner of this tract.. THENCE North 00 40' West 433.33 feet to a 1" iron pipe set for a corner of this tract THENCE North 89° 18' East 2,086.11 feet to the place of BEGINNING containing 191.989 acres of land. t r � TRAC T 15 A tract of land out of Section 9, Block S, G. C. b S.F.R_R. Co, Survey, Lubbock County, Texas, and being more parti- cularly described as follows: BEGINNING at a 1" iron pipe set in the East line of Section 9 for the Northeast and beginning corner of this tract, whence the Northeast corner of Section 9 bears North 00 40' West 4157.6 feet; THENCE South 00 40' East 311.1 feet to a 1" iron pipe set for the Southeast corner of this tract; THENCE South 880 17' 30" West 1218.15 feet to a 1" iron pipe set for a corner of this,tract; THENCE South 530 14' 30" West 1223.1 feet to a 1" iron pipe set for a corner of this tract; II THENCE North 890 47' West 1202.5 feet to a 1" iron pipe set 1 for the Southwest corner of this tract; THENCE.North 00 45' West 1040.82 feet to a 1" iron pipe set for the Northwest corner of this tract; THENCE North 890 25' 40' East 3410.2 feet to the place of BEGINNING; Containing 53.811 acres of land. _ l 1, r > TRACT 16 A tract of land out of Section 18, Block S. G. C. & S. F. R. R. Co. Survey, Lubbock County, Texas, and being more particularly described as follows: BEGINNING at a 1" iron pipe set in the West line of Section 18 for the Southwest and beginning corner of this tract, whence the Northwest corner of Section 18 bears North 0° 40' West 4468,7 feet; THENCE North 00 40' West at 311.1 feet pass a 1" iron pipe at the Northeast corner of a 53.811 acre tract, continuing for a total distance of 2137.83 feet to an iron rod set for the Northwest corner of this tract; THENCE North 820 24' East 1816.07 feet to an iron rod set I for a corner of this tract; THENCE South 87' 39' East 1808.57 feet to an iron rod set for a corner of this tract; THENCE South 0° 40' East 1337,0 feet to in iron rod set for a corner of this tract; THENCE South 810 10' East 1671.0 feet to an iron rod set in the West R.O.W. line of F. M. Highway 835 for a corner, of this tract; THENCE South 0° 31' East along the West R.O.W. line of F. M. Highway 835, 747.02 feet to a 1" iron pipe set for the South- east corner of this tract; THENCE North 67` 38' West 920.5 feet to a 1" iron pipe set for a corner of*this tract; THENCE South 89° 28' 45" West 653.8 feet to a 1" iron pipe set for a corner of this tract; THENCE North 790 32' West 1754.0 feet to a 1" iron pipe set for a corner of this tract; THENCE South 790 30' West 725.4 feet to a 1" iron pipe set for a corner of this tract THENCE North 76° 36' 45" West' 1025.8 feet to a 1" iron pipe set for a corner of this tract; THENCE South 23° 17' West 796.4.fee BEGINNING; t to the place of Containing 170.517 acres of land.. i TRACT 17 Beingall of Section 1 Block , B, Lubbock County, Texas, except the areas used for highway purposes and except ' that par : of*said Section 1 owned by J. Frank Gray and Wy._iie Hudi:l3n; > and the Southwest One-fourth (stl 1/4) of Section 2, Block B, Lubbock County, Texas, except that po=tion thereof containing about fifty-three (53) acres lying North of.the Fort Worth & Denver RailwayCon an right of �y; and all of that part of Section Eleven ( ��(11), Block B, owned by CITY and descr.,bed as follows, to -wit: BEGINNING at a point in the Northwest corner of said Section 11; THENCE South along its West line 1427 feet to a point; THENCE East 1176 feet; THENCE clo=th 427 feet; THENCE West along the North line of said Section 1176 feet to the Place of�Le inning. Containing approximately 470 acres. 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N P -' W N 1 O O %.n O Co %.n O In V1 k -n O to 1 O O O O O O O O O O O 64 ; WA tD J 1 %O0 %.M ON 00 O Na N W ON W 1 lJl -• W � t0 OD J N t0 W 0% 604 I 1 -• 1 00 1 W O► �OD %D OD tt n N J OO%_ni On tD P W -+ -+ J J J Cn � W DD D• N 64 I .p � 000 1 to W 0 %-4 -P On 00 %.0 t3t OND tO 00 tO 1 00 J — t0 N --` to M 6H i Y I Y Y Y 14 m I iT N %.M N 0 ko A to -P - W 64 1 J i - N Y I Y Y 00 1 W m N W � J -+ 00 N J t0 W — O O A .P. to I A J t0 A W O 00 N OD tO tO J :X m - -Yx =- c �- -ID ♦♦ s� (D < -� m 0 m m O �'o CD N -t N 01 ♦c ♦ O n O 0) (D N Pr < (D (D (D 3 — � ♦ N n O m O n n O N a �- O O '7 O) � ♦ Cr 6O O < O O 0) n (D — '0 (D a 01 O � � a O m 01 � ♦ C O '1 'v 3 N (D 01 ♦ —O Cr (D 0 M 0- 11 0 O ♦ I (D 0) ♦O O 0- 0 O ♦ -T O N -4, (D N ♦ 0) CL ()) �G N W O -4. ♦O (D s O ♦ 7 N 61 C1LA1_YY1_11 . �e, ANNUAL FARMING OPERATION PLAN This Farming Operation Plan is submitted for concurrence by the City of Lubbock In accordance with the management agreement between the City of Lubbock and Standefer and Gray, Inc. The proposed plan of operation for the Waste Water Disposal Farm is to change the operation from a row crop and hay operation to a hay and grass operation with custom grazing. Since none of the tillable land is In permanent grass, it will be necessary to make this change over a several -year period of operation. The basic plan for the crop -year 1986-87 is as follows: Row Crops 660 Acres Alfalfa 750 Acres Wheat 940 Acres Grass 450 Acres Acreage of each crop may vary as influenced by weather conditions. The labor force to dispose of the waste water and perform the necessary farm work will consist of eight full-time employees and two part-time employees. Additional employees may be necessary for short periods. ESTIMATED COSTS OF OPERATION Permanent Employees $140,000 Seasonal Labor $ 20,000 Equipment Leases $ 10,000 Custom Services $ 15,000 Seed $ 50,000 Herbicide $ 15,000 Pesticide $ 10,000 Fuel $ 45,000 Utilities $100,000 Irrigation System Repair $ 45,000 Equipment Repair $ 45,000 Equipment Leases $ 10,000 Improvements Repair $ 10,000 Insurance $ 30,000 Supplemental Feed $ 10,000 Management Services and Equipment $135,000 TOTAL COST $690,000 The cost of land rental Is not included in this figure since additional land has not been rented. Adjustments to the expenses will be made If additional land is rented. -2- ESTIMATED GROSS REVENUE FROM THE OPERATION Row Crop $105,000 Alfalfa $225,000 Grazing $245,000 Miscellaneous Income $ 35,000 TOTAL $610,000 We propose an even exchange for the labor and equipment furnished In land preparation and seeding of wheat and grass prior to October 1st in exchange for the labor and equipment necessary to harvest the crops that are presently growing. The City will pay for the seed and herbicides for the crops planted before October 1st. No major improvements that would be constructed by Standefer and Gray, inc. are planned for the 1986-87 crop year. Adjustments will_ be made to this plan as are necessary for the satisfactory disposal of the waste water and as may be necessary as the result of weather conditions. CiTY OF UBBOCK STANDEFER & GRAY, INC. BY: BY a uel W. Wahl J.F. Gray, Presiden Director of Water Utilities -3-